TV's REPACK COULD CAUSE SERIOUS DISRUPTION for Fms
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Inside Radio Recap March 26-30, 2018 TV’s REPACK COULD CAUSE SERIOUS DISRUPTION FOR holds an estimated 60% share of the FMs. FM antenna market, has already built The FCC’s 10-phase repack schedule nearly 50 backup facilities. picks up in earnest in the coming months, with the current timeline Every station and transmitter site has calling for TV stations in Phase 1 to specific engineering variables, and begin constructing their new facilities some determine how much it will cost in April. A testing period is then slated to create a backup site. “If you are to start in September, with those building auxiliary facilities where you stations making the leap to their new want to operate four or six stations dial positions in late November. Each at their full of the phases will follow with the last licensed set of TV stations scheduled to move power it can by July 3, 2020. be a six-digit number—but How long the repack work actually it can also It’s the eve of the television repack, takes will depend on several variables, be as little and the radio industry is racing to including whether the TV station as $20,000,” prepare for what could be a serious just needs a new antenna or if more Harland said. disruptor for hundreds of FMs to extensive work is necessary. “Best remain on the air. The repack process guess is to plan for a couple of weeks, Weller suggests that the first step will result in 957 television stations as long as the weather holds up,” for radio is to talk to their television changing dial positions—with nearly American Tower senior manager of neighbors. “Not all the stations have 700 FMs co-located with TV antennas broadcast operations Jim Leifer said. all their schedules lined up to the day likely impacted by the process. That’s There’s also the issue of whether there or month, but get some idea if a TV between 10% and 20% of all FMs on are enough training tower climbers to station is going to require major tower the radio dial, including at least one cover all TV jobs on the repack docket. work that’s going to go on for weeks,” station in each of the top 25 markets. he said. Just how many stations already have The prospect of going dark during backup facilities isn’t clear. Based More: TV Repack’s Impact On Radio. drive time for days, weeks or a month on information culled from the FCC’s has some group owners racing to database, the NAB estimates that half secure auxiliary sites. And that may of the impacted FMs may already be only part of the conundrum that have an auxiliary in place. But broadcasters—and the equipment NAB VP of spectrum policy Bob companies they work with—face as Weller said because some of the repack rolls forward. those may be at the same site as the main antenna, the backups Even though the FM dial isn’t changing, might be of no use when a crew as crews do work on towers replacing needs to climb up an adjacent a TV station’s antenna, the FM needs tower. to power down in order to protect those workers from RF radiation Electronics Research, Inc. (ERI) exposure. Further complicating things VP of marketing Bill Harland said is the fact that, unlike a routine repair that some broadcasters have been like changing a tower light, the TV getting ready for the past several repack construction process takes years. He said ERI, which days or weeks—if not longer. Page 1 Inside Radio Recap March 26-30, 2018 Network Up, Radio Group Down At Cumulus In Q4. Four months into a Chapter 11 bankruptcy proceeding, Cumulus Media quietly issued its fourth quarter and full year 2017 financial results Wednesday. The company reported a 1.9% revenue decline to $293.9 million in Q4, from $299.5 million one year earlier. Cumulus had a net loss of $206.1 million, compared to a loss of $543.7 million in fourth quarter 2016. Adjusted earnings before interest, tax, depreciation and amortization (EBITDA, a measure of cash flow) came in at $49.9 million, down 12.3% from $56.8 million one year earlier. While overall revenue was down in Q4, Westwood One grew revenues 2.5% to $91.3 million from $89.1 million on year earlier. However the company’s radio station group, which accounts for more than two-thirds of it billings, dropped 3.7% to $201.9 million from $209.7 million. FULL STORY Three Ad Categories Doubled Radio $$ in February. National radio ad buys placed by agencies were up 15% Katz Radio Group Promotes Christine Travaglini To year-over-year in February, totaling $128.7 million. What President. drove the gain? Three key ad categories doubled their Katz Media Group has promoted Christal Radio president spend on radio last month, compared to the same period Christine Travaglini to president of Katz Radio Group, one year earlier, according to Standard Media Index. tasked with overseeing the radio rep firm’s nationwide Casual dining restaurants, consumer electronics and sales operations. She reports to Mark Gray, who had been entertainment each doubled their year-over-year national running the radio rep firm until March 2017, when he was radio allocation in February promoted to CEO of Katz Media Group. A longtime Katz 2018, according to SMI. But veteran, Travaglini has been president of Katz division they weren’t alone in allocating Christal Radio since 2008. She more dollars to the medium last will now drive overall business month. Telecom upped its radio outlay by 27%, making development and strategy of Katz it radio’s biggest spending category in February. That’s Radio Group’s 14 regional offices more than five times the growth rate for telecom across that serve as the national sales all media platforms. Specialty retail was radio’s second rep firm for more than 3,300 radio largest national advertiser in February, despite a 27% stations and their digital audio decrease. Quick serve restaurants were third, up 43%; platforms. Travaglini was the first followed by insurance, which spent 35% more on national person to rise from an assistant to president within the Katz radio buys. Auto, a key category for radio and all media, organization. In 2013, she was named president of Katz was fifth with a 33% decline. SMI’s figures don’t include Partnerships, the business development team focused direct sales—and thus represent an incomplete picture of on deepening relationships with agencies and developing radio ad spend. FULL STORY innovative campaigns for today’s big brands, in addition to her role at Christal. Travaglini will continue to lead Katz Cumulus Downplays Two New Objections To Its Partnerships and Christal Radio. FULL STORY Restructuring Plan. Two creditor groups have filed strongly-worded objections 28% Of Website Traffic Shows ‘Non-Human Signals.’ to Cumulus Media’s proposed Chapter 11 reorganization A new study gives radio more ammo to help convince plan. But the company seems unworried by the latest marketers to shift some of their ad dollars back to radio hurdles, calling them “anticipated” and “normal parts of from digital media. The Adobe study shows 28% of website the restructuring process” that won’t impact its financial traffic exhibits strong “non-human signals,” suggesting that reorganization timeline. The first objection comes from the traffic came from bots or click farms, according to The a group well known to anyone following the long and Wall Street Journal. While Adobe’s new research isn’t the winding case—the Official Committee of Unsecured first study to document online fraud, it is part of a growing Creditors. Their objection was filed under seal so details volume of evidence that has raised serious concerns of the group’s objections aren’t publicly known at this time. about digital media advertising. Issues like fraudulent Also objecting is the Ad Hoc Cross-Holder Committee, traffic, ads that aren’t viewable or those that are displayed which includes some of the holders of $2.025 billion in in unsafe environments continue to plague the industry, term loans and 7.75% senior notes due in May 2019. The even as marketers keep pouring buckets of money into cross-holders claim the plan can’t be confirmed until it first the dilemma. That has some advertisers, including the resolves what they call “two fatal flaws” – Cumulus “grossly world’s largest, Procter & Gamble, rethinking their digital underestimated” its value so it can hand a controlling advertising strategy. FULL STORY equity share to “their preferred new owners;” and the plan would give a 16.5%, equity stake in the company to the JOBS: unsecured creditors in a way that “fundamentally violates” Sponsorship Director the bankruptcy Code’s distribution scheme. 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