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WEDNESDAY, MAY 13, 2015
Radio staffing returns to 2013 levels. Many media companies are operating leaner than ever. But an Inside Radio analysis of staffing levels at publicly traded pureplay radio companies shows employment ticked up 3.2% in 2014. Across a broader sample of all the public companies that own radio stations, total employment increased 7.8% last year, putting employment roughly on par with 2013. Hiring may not be as strong an indicator of the health of a company or an industry as it was prior to the Great Recession. Wall Street investors also don’t particularly like to see payrolls expand since it potentially cuts into their profits. As a result, the post-recession recovery has made job growth measured in inches, not yards, at most companies. For a second consecutive year Entravision made the biggest investment in staffing. Its radio payroll grew 46% last year, following a 19% boost to its employee ranks a year earlier. Beasley Media Group also reports a 22% increase in the number of people working for the company, but a majority of that’s tied to a multi-market swap with CBS that gave Beasley a dozen additional stations. It was CBS that trimmed the most, with its staff count falling 11% although the media conglomerate doesn’t say which divisions added and subtracted employees. The number of employees at Spanish Broadcast System and Radio One were 8% smaller. Both reported staffing increases a year earlier. The job growth continues outside broadcast radio. Pandora grew its payroll by a third last year while Sirius XM Radio’s staffing level increased 6%. The annual figures cite 2014 year-end employee totals.
Staff grows at Entravision – and so does revenue. Is there a correlation between the investment in staffing and revenue growth? Those who believe there is will find a case study in Entravision Communications. Its radio payroll grew 46% last year, following a 19% boost to its employee ranks a year earlier. As for revenue, Entravision radio revenue increased 10% during the first three months of the year, the company says, second quarter is tracking up “mid-teens,” and third quarter is pacing up more than 20%. Entravision COO Jeff Liberman is hesitant to say more employees is the sole ingredient for the revenue growth. “It’s investing in content, it’s investing more in our digital platform, and it’s investing in sales,” he says. “Our company believes that’s how we can really make a different in local sales.” Of course to achieve those goals it often takes more manpower to get the job done. One area where Entravision has invested is personalities, which have allowed it to build shows such as the “Erazno y La Chokolata” afternoon show that clears on its stations in multiple markets. “What
[email protected] | 800.275.2840 PG 1 NEWS insideradio.com WEDNESDAY, MAY 13, 2015 makes the difference between what we do on the air and what our competitors, the internet streaming companies offer, is content,” Liberman says. “Our shows are more talent-based than music-based today and that’s what makes us different and I think that’s what has caused listeners to come to our radio stations -- and when you create better ratings you bring in more revenue.”
Layoffs are a fact of life. But one CEO worries cuts are going too deep. Every industry finds efficiencies and there’s an ebb and flow in company payrolls that can be influenced by factors other than just cost-cutting. The switch from an all-news to a talk or music station will in all likelihood mean fewer jobs at a radio station. Saga CEO Ed Christian says every company is looking for their right mix, but worries some radio owners are no longer trimming the fat. “There are certain companies that are hell bent to reduce down and come perilously close to cutting into the marrow,” he says. “That’s not good for the industry.” In a conference call this month Christian said he believes a station must have strong morning and afternoon shows to succeed, and that requires people on the job. “The idea of the audience won’t know is really a fallacy,” he said. Saga’s not immune from trimming, having adjusted its payroll lower last year. Like many operators, Christian said his philosophy is to keep staffing levels in line with revenue trend lines. It’s business math that has made for some hard choices across radio during the past several years. “That’s one of the big issues that the industry faces right now,” Christian said. “We have this race to squeeze and see how much we can rely on having empty shells of radio stations -- but you can’t save yourself by cutting the bottom side without injuring the top side.”
A Rock-y Mountain ratings high. The Rocky Mountains apparently blocked the memo about rock radio’s ratings struggles from reaching Denver. Four of the Mile High City’s top five stations in Nielsen’s April survey are some flavor of rock. Only Colorado Public Radio news/talk KCFR-FM (90.1) managed to squeak in between the power chords and bass drum hits. Entercom’s “99.5 The Mountain” KQMT is perched at the top (5.7-5.9) with its adult alternative-flavored classic rock format. Close behind is iHeartMedia alternative “Channel 93.3” KTCL (6.1-5.4), followed by KCFR. Classic rock “103.5 The Fox” KRFX (4.7-5.2) and adult alternative sister KBCO (5.6-5.1) round out the top five. Both are owned by iHeartMedia. There’s one more rocker further down the ranker: iHeart active rock KBPI (3.2-3.5). The CHR, country, AC and regional Mexican formats don’t begin to show until you get into the four share range. As the birthplace of the modern day adult alternative format and a city that helped put FM rock wars on the map in the ‘70s and ‘80s, Denver’s always been a rock radio epicenter. And though it’s not a new phenom to have rock stations stack its top 5, you’d be hard pressed to find another market where rock vacuums up more than 21 shares of the audience pie. Even Detroit Rock City, with five rock stations, falls short with an 18.4.
New victor in Miami CHR melee. Sixteen months after flipping from hot AC to CHR as “Hits 97.3,” Cox Media Group’s WFLC, Miami turned in its highest 6+ share with the new format, barreling 4.0-5.0 to rank fourth in Nielsen’s April survey. That’s up dramatically from April 2014’s 3.5. It’s a milestone for programmer Jill Strada, who returned to Miami a year ago to program the station after a stint as assistant program director and digital media brand manager for Greater Media’s rhythmic AC “Hot 96.9” WBQT, Boston from 2013 to 2014. It’s also the first time “Hits 97.3” has inched ahead of Miami’s heritage CHR, iHeartMedia “Y100” WHYI, which held its own (5.1-4.8). “Hits 97.3” has increased the share mainstream CHR gets in Miami from an 8.3 one year ago to a 9.8 today. CHR battles like this tend to ebb and flow. In Tampa, the lead has gone back and forth between CMG’s “Hot 101.5” WPOI and iHeart’s heritage WFLZ-FM (93.3), with the latter currently holding a 1.5 share lead. Miami has been a sort of ground zero in the battle for 18-34 year olds with iHeartMedia flipping WMIB from adult hits to urban in October 2013 as “103.5 The Beat,” taking on CMG’s longtime urban “99 Jamz” WEDR, which remained out front in April. The market is likely to only get more competitive among younger demos, now that CBS Radio has taken over rhythmic CHR “Power 96” WPOW.
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Synergy brings Stephen King to CBS’ Play.it. Corporate synergy can be scary, at least when Stephen King is involved. The famed horror writer’s upcoming audio book “Drunken Fireworks” will be released next month by CBS’ Simon & Schuster. That’s opening a door for CBS Radio’s Play.it. On July 2 the new podcast platform will begin sharing the never- before-released short story to streaming listeners. “Great stories are often better when told out loud,” King says. “This event is a cool way for more people to discover just how fun listening to my stories can be.” CBS Radio says it will promote King’s audio release on stations around the country. Simon & Schuster president Chris Lynch calls it an “audio publishing event” that will “break new ground” for the company. Humorist Tim Sample, whose stereotypical Maine accent led to a “Postcards from Maine” feature on CBS News’ “Sunday Morning” for more than a decade, was handpicked by King to voice the audio book. “While it’s not the first Stephen King story I’ve had the privilege of narrating, it’s certainly the funniest,” Sample says. The publisher says “Drunken Fireworks” is about a “salt-of-the earth” Maine native and a friendly annual summer fireworks rivalry that spirals out of control. CBS Radio says Play.it now offers more than 400 podcasts, including several from radio personalities.
Closing offices will modernize FCC says Tom Wheeler. Interference may be a big deal to stations being stepped on, but Federal Communications Commission chair Tom Wheeler says having field offices scattered around the country to deal with it is a relic of a bygone era. He told a Senate Appropriations Subcommittee hearing yesterday that the offices spend 40% of their time dealing with interference complaints and come at a per-employee cost that is double that of headquarters. “We ought to be spending more time on the challenges of the future economy, which is a wireless economy rather than trying to figure out if the local broadcaster painted his tower,” Wheeler said. The proposed plan, despite some tough questions from Capitol Hill, has changed little since it was first unveiled in March. It would close two-thirds of the FCC’s field offices and leave eight major market hubs around the country, as well as rely on a rapid response team based in Maryland. The plan is part of the FCC’s proposed $340 million budget for fiscal 2016, which Wheeler says will cut the agency’s staffing to its lowest level in 20 years after what would be its first reduction in payroll in a decade. “We’ll have 100 to 150 people leave the agency this year and we’re not going to fill all of those positions,” he told Senators. But Republican FCC commissioner Ajit Pai thinks the FCC isn’t being “fiscally responsible” with its request, pointing out the agency had one-third of its 1996 budget, when it was flooded with 80 rulemakings after the Telecom Act was passed. He puts part of the blame on net neutrality. “There’s no question it has diverted a substantial amount of staff hours and financial resources to work on what was essentially a discretionary project,” Pai said. Asked where he thought the FCC could use that budget more wisely, Pai gave a suggestion that many in radio no doubt agree with. “There are other areas that would benefit from more sustained FCC attention,” Pai said. “Providing long-needed relief to the AM radio band -- a lot of great AM radio broadcasters around the country have been dying for relief for 22 years and the FCC could focus on that.”
Sports bidding war looms in Detroit for Tigers and Red Wings. A three-way radio bidding war for two of the city’s top sports team is looming in Detroit. The stakes are high and offer a peek into how broadcasters position their assets when shooting to score major league sports franchises. CBS Radio has carried the MLB Tigers and NHL Red Wings for years and reportedly plans to aggressively pursue renewals. But it’s expected to face fierce bidding for the 2016 season and beyond from Cumulus Media’s “News Talk 760” WJR. According to the Detroit News, WJR officials have begun formal talks with Ilitch Holdings, which owns both teams. WJR earlier carried both teams for more than three decades, its 50,000-watt clear channel signal beaming the action to 35 states and half of Canada. Putting the games back on a single blow-torch signal could be an attractive alternative to CBS, which cobbled together a 39 station Tigers network. Sources tell the Detroit News that Ilitch would like to keep the both teams with one radio company. CBS has a strong hand to play. So-called shoulder programming is a natural fit on “97.1 The Ticket” WXYT, consistently one of Motown’s top rated stations. The six-station CBS cluster has strong ratings and countless cross-promotional opportunities. But Cumulus has a competitive three- station cluster, fewer play-by-play commitments and WJR’s long history with both teams. The dark horse is Greater Media’s “Detroit’s Sports 105.1” WMGC-FM, which wrestled the Pistons away from CBS Radio last year. There’s synergy from its
[email protected] | 800.275.2840 PG 3 NEWS insideradio.com WEDNESDAY, MAY 13, 2015 male-skewed sisters: classic rock WCSX (94.7) and rock WRIF (101.1). Ratings, cash and assets won’t be the only factors. The Tigers are said to want more involvement in daily programming.
Sam Zell gets more say in how Philly’s ‘More FM’ is run. AC “More FM” WBEB, Philadelphia (101.1) owner Jerry Lee, one of radio’s highest-profile independent operators, has struck a deal with his lenders that will make a near-term sale of the station less likely and keep Lee at its helm. But the majority control will move to billionaire Sam Zell, who’ll get more control over the company. A fund controlled by Zell will get three of the five seats on the newly-expanded board of managers. Lee gets to appoint two other board members, which he and Paul Astor, a representative for late business partner David Kurtz’s family, will continue to fill. The equity stake held by Zell, better known for backing Jacor Communications and buying Tribune, and fellow debt holder Methuselah Capital Partners will not change, according to a filing with the FCC. Although a sale is now less likely in the short term, the new arrangement between Lee and Zell gives Zell the right to add one more representative to the company’s board if WBEB were to default on its debt. Zell would also have the right to bring in an investment banker, open a “data room” at the station, and begin inviting in potential bidders. How much debt remains outstanding isn’t detailed in the filing, but Lee bought out the Kurtz family’s 50.1% stake in WBEB for $85,158,226 in 2006. While a sale can never be ruled out entirely, investment banker John Chachas, a managing partner at Methuselah Advisors, told Inside Radio earlier this year that no one should expect one of radio’s last major market independent owners to disappear anytime soon.
Focus 360 and WYD Media sales form partnership. A new partnership with WYD Media Ad Sales will help extend the sales reach of rep firm and syndicator Focus 360. Under the alliance announced Tuesday, WYD will provide enhanced ad sales representation for Focus 360, which provides programming, syndication and national network ad sales to thousands of U.S. radio stations. WYD specializes in ad sales for spoken word content. Focus 360 CEO Phil Brown says the addition of WYD’s resources and media sellers will help his firm increase its presence at agencies, boost revenue and help it to better serve content partners. Focus 360 will still work directly with agencies where it has long-standing relationships. The rep firm will also continue to work with tech company Jelli to build out its cloud-based programmatic advertising platform.
Video synch company Vadio gets $7.5 million in funding. Vadio, the Portland-based tech company that enables radio stations to synchronize music videos with their audio stream, has raised $7.5 million in new funding. The company has also expanded its leadership team with a pair of well-known names from the music and entertainment field. Yair Landau, a 17- year Sony vet, joins as Vadio’s new chairman and COO. Landaus is a former vice chairman of Sony Pictures Entertainment and president of Sony Pictures Digital Entertainment. Former Vevo CEO Rio Caraeff has joined the company’s board of advisors. Vevo is the streaming music video service owned by Universal Music Group, Sony Music, Google and Abu Dhabi Media. Caraeff earlier held executive positions at Universal Music Group, Sony Pictures Entertainment, Sony Digital Media Ventures and Sony Music Entertainment. Marker LLC led the round, with participation from existing investors and names from the music, entertainment and technology industries. Vadio says the cash will be used to help scale its technology to more streaming audio services and expand product offerings. Sinclair Broadcast Group hot AC “Star 101.5” KPLZ-FM, Seattle is among U.S. stations that use Vadio.
Is radio in David Letterman’s future? David Letterman started in radio, at Ball State University’s WBST, Indianapolis (92.1). Now as the late night TV legend winds down a storied career, radio is being mentioned as a possible second act. “We’ve talked about this” -- a possible radio gig -- “among ourselves,” “Late Show” director Jerry Foley tells Newsday. “If you think about it, the show has become more about the desk more than anything else in the past couple of years. What happens at the desk puts him at the height of his powers, when he sits down and talks.” Letterman hasn’t publicly said anything about returning to the medium where he started. But he has indicated he might like to do some work for CBS’s “Sunday Morning” or something online. — Get more news, people moves and insider extras @ www.insideradio.com. —
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LOCAL SALES MANAGER - HOUSTON TX Join the #1 media company serving Hispanic America, Univision Communications. We’re seeking a dynamic leader to help direct our local sales efforts across our powerhouse portfolio of Television, Radio, and Digital offerings. Combined, we entertain and inform more viewers and listeners each day vs. any other media company in Houston.
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