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FRIDAY, JUNE 19, 2015

Performance royalty debate: You say you want a resolution. It’s been a busy six months on the royalty front since the 114th Congress convened in January. But radio industry efforts to derail royalty legislation are further along than they were at this point in the last Congress. Since the NAB-backed Local Radio Freedom Act was introduced on February 25, a total of 194 members of the House and 18 Senators have signed the non-binding resolution that opposes a broadcast royalty. That’s 55 more House members and seven more Senators than at this point in 2013. “Were driving toward that magic 218 number in the House ,” NAB EVP Dennis Wharton told Inside Radio, referring to the majority needed to block a royalty bill. “I think we’ll probably get there within the next month or two,” he added. “If you’re able to present to key members of Congress a majority of House members who are on record opposing a royalty, that’s a strong sign that there’s no reason to push it further.” The irrepressible issue has come up at several Capitol Hill hearings in a year marked by unrelenting lobbying on both sides. Broadcasters would like to avoid a reprise of 2009, when performance royalty legislation nearly became law after the Senate Judiciary Committee cleared the Performance Rights Act. Many hope that private deals struck by iHeartMedia, Entercom, Cox Media Group, Beasley and others with indie labels will prove the market can sort the issue out itself. But Warner Music Group is the only Big Three label group so far to ink a royalty pact. And nearly a year has passed since a royalty deal between a label and a radio company has been announced.

Royalty proponents attempt to divide radio. The recording industry has a new tactic for winning a performance royalty: divide the radio industry. MusicFirst, the Washington, DC-based group that represents labels, artists and managers, is attempting to rally smaller radio stations to its side by pointing out how little they’d pay in royalties. Stations with annual billings of less than $1 million would pay only $500 per year for all terrestrial music airplay on their station, under the Fair Play Fair Pay Act, introduced in Congress in April with bipartisan support. Music First is trolling for stations to break rank with the NAB’s no-royalty position. In a letter sent to roughly 3,400 radio stations on June 10, executive director Ted Kalo told small station operators that radio’s largest companies “want you to believe that this proposal will put your station at risk, but that is just not true.” Trying to drive a wedge between large and small stations, Kalo wrote, “They know, and you should know too, that the fight for a performance right has never been about smaller stations.” MusicFirst claims 75% of music stations would pay $500 or less under the Act, which would end radio’s decades-long exemption from paying royalties to artists and labels

[email protected] | 800.275.2840 PG 1 NEWS insideradio.com FRIDAY, JUNE 19, 2015 when it broadcasts their sound recordings. In an email to Inside Radio, Kalo said he has talked with “a number” of those who received his letter. “Most have been positive and welcome a continuing dialogue about preserving the viability of truly small stations and strengthening diversity of formats,” he said before taking the requisite slam at the NAB: “The days of NAB hiding behind small stations while it shills for its largest members are over.”

NAB to radio: ‘Stand united.’ “Don’t let our opponents divide radio!” That was warning from the National Association of Broadcasters in response to a musicFirst letter attempting to woo small market radio stations to its side in the tempestuous radio royalty debate. In an advisory sent to member stations, the NAB urged all radio stations, regardless of size, to “stand united against this legislation and its transparent political carve-outs.” A performance royalty would, it said, “threaten the continued viability of free, local radio stations.” “We’re hoping our members don’t buy the line of reasoning that’s its only $500,” NAB EVP of communications Dennis Wharton told Inside Radio. “Once they get their hooks in, they’ll begin raising the amount.” The NAB argues that the Fair Play Fair Pay Act would provide a “disincentive” for small stations to grow their revenue, less they exceed the $1 million threshold, which would trigger higher rates set by the Copyright Royalty Board. They also note that the bill would take into account all of a station’s revenue, including revenue from station events, and would include administrative fees.

A surge in agency interest in streaming radio. Advertising agencies are bullish about the radio business this year and are getting used to programmatic buying. That’s the top takeaway from a new STRATA survey. Consistent with strong interest in all things digital, 44% of the agencies surveyed say they’re more interested in streaming or online radio than they were a year ago. That’s a higher level of enthusiasm than spot TV (19%) gets, and at least within shouting distance of the streaming video fervor (65%). While just 11% say spot radio will be the focus of their ad campaigns, it’s up all the way from 3.2% a year ago. Still, 33% of the agencies report their interest in spot radio is less than it was a year ago. The STRATA survey indicates agencies are in a pretty bullish mood, with 53% thinking their business will grow this year. J.D. Miller, STRATA’s director of marketing, says that’s the highest mark of optimism since the question was first asked during the 2008 recession. More than four in ten (44%) respondents also think they’ll be hiring this year, which is a pretty good sign of expansion; Miller says the number is nearly a record in the history of this survey. The agencies are also getting used to programmatic buying, but they are definitely of two minds: 46% like the improved targeting programmatic gives them, but that same percentage also say they’re “still undecided” about whether programmatic buying properly executes the order. Perhaps the trepidation is best exhibited by another stat—the worst thing about programmatic for 22% of the respondents is its “complexity/newness.”

For AudioHQ and Slacker, there’s no place like in-home. Radio listening in the home often includes connected devices, and digital audio rep firm AudioHQ is honing ways to deliver ads tailored to these listeners. Through a new program, AudioHQ will offer exclusive ad distribution for streaming audio accessed via devices such as connected TVs, Sonos wireless speaker systems, Roku streaming media players and game consoles. Online radio service Slacker will be the first to launch the program in Q4, and its in-home listeners will only hear ads sold by AudioHQ, which plans to offer the service to other webcasters in the future. “In-home listening presents a very compelling targeting opportunity for advertisers,” says AudioHQ CEO Matt Cutair. While cars and the workplace get the most attention for radio listening, in-home remains surprisingly strong. A recent survey by Edison Research found that among audio options—including owned music, streamed audio, podcasts, TV music channels and YouTube—more than half of all listening is done in the home, compared to 30% for in-car. Slacker listening data shows higher levels of listening via connected devices on nights and weekends, when Web and mobile listening declines. The move looks to be a win-win for Internet radio, which can target spots based on devices, as well as demographics and location. While AudioHQ has just begun to pitch advertisers for the program, Cultair says he expects broad interest among ad categories, particularly consumer packaged goods and retailers. Slacker radio offers subscription and ad-supported options.

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News organizations get OK to test eyes in the sky. Six news organizations this week got government approval to research the use of drones in reporting. ABC, NBC, The New York Times, The Washington Post, the Associated Press and Reuters will be testing eyes in the skies. Sandy MacIntyre, AP’s vice president and director of global video, said the experimenting phase “will allow us to use these new tools safely and effectively while also benefiting from the many new angles of visual newsgathering,” according to CNN. The news organizations will work in partnership with Virginia Tech. Last month, CNN and the Federal Aviation Administration began researching the use of drones in news situations in which the drone is still within sight in urban populated areas. Eventually radio would share in the drone news delivery process, possibly replacing or augmenting traffic helicopters, and using drones for their own online video news features. On Thursday, Senators Dianne Feinstein (D-Calif.) and Charles Schumer (D-N.Y.) introduced the Consumer Drone Safety Act, which would cover safety and altitude restrictions on non-commercial use of drones. Feinstein in particular has had safety and privacy concerns that she says the bill addresses. NAB spokesman Dennis Wharton said the organization “strongly supports” the bill “that strikes the right balance by imposing meaningful guidelines on recreational use of Unmanned Aerial Vehicles.” He also said the NAB maintains drones “hold great potential in improving newsgathering capabilities at local stations.” The FAA hopes to have some approvals ready within a year for a variety of drone uses. At a congressional hearing on Wednesday, an Amazon executive urged a quicker pace for approvals and said it would be ready as soon as somebody says go.

Chattanooga public radio, PBS stations talk crosstown merger. Chattanooga public station WUTC-FM (88.1) is looking into teaming up with the city’s PBS channel as a way to fix a red ink problem it’s had for years. The radio station owner, the University of Tennessee at Chattanooga, faces a budget squeeze and wants to save the $500,000 it is projected to spend on the station in 2016. The school has shored up WUTC’s revenue imbalance for several years; it runs on about $1.4 million a year, reports Current. That’s where Chattanooga’s independent public TV station, WTCI, comes in. The school and the station have been talking about a possible merger, though a deal has a first-blush downside—the TV station also runs at a deficit that Current reported as $112,503 for fiscal 2013. Still, the combined arrangement could save both stations money, says Chuck Cantrell, UTC’s assistant vice chancellor of communication and marketing. A university task force may decide whether to go forward when it reports its finding later on. Mergers between separately owned public TV and radio stations are rare, and a station survey by the University Station Alliance shows only 4% of its members like the idea of merging operations. Still, alliance executive director Craig Beeby says technological advances make such combos more economically viable than ever.

Longhorns rope multi-station rights deal. A new rights deal for Texas Athletics is the latest example of how sports franchises are looking to double down on distribution in their play-by-play deals. The partnership between IMG-College/ Longhorn Sports Marketing and the Austin Radio Network calls for University of Texas football to be simulcast on eight Austin frequencies in two languages. Starting with the 2015 season, Texas football will air on sports “The Horn 104.9 FM” KTXX-FM, country KOKE FM (99.3, 98.5) and KTAE (1490), comedy 1260 KLGO, and KTXX-HD4, which simulcasts via translator at 105.3. Collectively known as the Austin Radio Network, the stations will carry live Longhorns sports events including football, men’s and women’s basketball, baseball, softball and Longhorn Weekly coaches’ shows. “The Horn” will become the new flagship station. Through a co-venture with America Telecommunications Group, “Fiesta 97.1” and Spanish talk KXNZ (1530) will broadcast all Longhorns football games in Spanish. Texas Men’s Athletics director Steve Patterson says the games “will be heard by more fans in more places than ever before.” The alliance will also increase the number of live Longhorns athletics events and shoulder programming. It includes promotion across all of ARN’s Austin frequencies and

[email protected] | 800.275.2840 PG 3 NEWS insideradio.com FRIDAY, JUNE 19, 2015 includes the addition of softball, and new Longhorns news and talk programs. The Longhorns IMG Radio Network talent and crew fare is expected to remain intact.

Sony Playstation users click big-time on Spotify. Spotify and Sony are reporting a huge response to their two-month- old music streaming partnership. Since March 30, Sony PlayStation users have initiated more than 5 million downloads. “Spotify on PlayStation Music” allows gamers in 41 countries to stream music and access playlists during their gaming sessions. Spotify says Playstation users streamed over 785 million tracks on consoles, resulting in more than 42 million hours of listening. The service works on PS3 and PS4 consoles and will also be available on Sony’s Xperia smartphones and tablets. So far, Spotify isn’t offering a comparable service for Microsoft’s Xbox, although the company says Xbox users have expressed significant interest in online forums.

Morgan’s Blaze days are over. Betsy Morgan, who has held the CEO position at Glenn Beck’s TheBlaze TV and digital venture since 2001, is leaving the company. Re/code reports that chief revenue officer Kraig Kitchin will assume the CEO mantle on an interim basis. Morgan joined Beck’s multimedia property in 2001 after running the Huffington Post. In a memo to her staff, Morgan said that in the last six months “we found ourselves on a rough sea, but stayed true to our course.” Kitchin is best known for running Premiere Radio Networks for 20 years. Since then he formed his own talent management company, Sound Mind, which represents Delilah and other hosts.

George Beasley receives national radio award. Beasley Broadcast Group founder, chairman & CEO George Beasley will receive the National Radio Award on September 30 at the NAB- RAB Radio Show in Atlanta. Beasley’s career spans more than 50 years, from launching his first station in the Blue Ridge Mountains in 1961, to presiding over his company’s 53 radio stations in 12 markets. Beasley launched his first radio station in 1961 in Benson, N.C., while he was still assistant principal at a public high school in Ringgold, Va. The following year he accepted the principal’s position of Meadow High School in nearby Benson, in part to be closer to the radio station. During his seven years at Meadow High, Beasley worked at the station evenings and on weekends. In mid-1969, he left education to pursue broadcasting on a full-time basis. Beasley has received numerous accolades from the broadcast industry and various civic and charitable organizations throughout more than a half-century in radio, including being honored by the Library of American Broadcasting as one of the “2012 Giants of Broadcasting.” Beasley served on the Board of Directors for the North Carolina Association of Broadcasters (NCAB) for 12 years and received the association’s Distinguished Service Award in 1996. He was inducted into NCAB’s Hall of Fame in 1998 and the Nevada Broadcasters Association’s Hall of Fame in 2008, and was named Broadcaster of the Year by the Florida Association of Broadcasters in 2011.

Lawson gets mile-high bump at iHeart. Jim Lawson has been promoted to SVP of programming for iHeartMedia’s eight- station Denver cluster. The 14-year company vet and longtime Colorado programmer most recently held the position of SVP of programming for the company’s regional markets of Colorado Springs, Pueblo and Ft. Collins and was Hispanic brand manager for iHeart’s National Programming Platforms. Lawson was among the top architects and program directors of the first modern AC station, Denver’s “Alice 105.9” KALC, which spawned of wave of “Alice”-branded modern AC launches in the mid- and late-‘90s. He joined iHeartMedia in 2001 as PD of “Kiss 95.7” KFMD, Denver, and his career includes multi- format experience in programming and on-air roles at CHR, classic rock, AC, hot AC, adult hits and news/talk stations in Denver, Chicago, Milwaukee and Lansing, Mich. As SVP of programming, Lawson’s purview will now include Denver’s “wall of rock”—adult alternative KBCO, classic rock KRFX, active rock KBPI, modern rock KTCL and with four other stations; the Denver Broncos Radio Network, Colorado Rockies Radio Network and University of Colorado Sports Network; and a slate of live events.

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SALES LEADER/MANAGER — ST. AUGUSTINE SENIOR VP OF SALES, Successful cluster looking for a creative, street-smart sales leader/ ALBANY NY manager to grow our brand new station in St. Augustine, Florida. Flagler Broadcasting’s 5 stations service Daytona - Jacksonville. iHeartMedia is seeking a dynamic sales and business We want to know all about you! development leader on the Send resume and letter to: [email protected] East Coast to take media and Flagler Broadcasting, LLC is an Equal Opportunity Employer entertainment markets to the next level.

The SVP Sales is responsible for revenue growth for iHeartMedia broadcast, digital, and live entertainment products. The NATIONAL SALES MANAGER - ATLANTA ideal candidate will drive and manage the short and long Rare opportunity for a seasoned professional to work for our World term strategy, new business class company in one of the country’s most desirable markets, Atlanta, development and account GA. We’re looking for an exceptional National Sales Manager for service efforts via aggressive the CBS Radio Cluster which includes one of the nation’s top National account development strategies billing radio stations, WVEE. You must have a minimum of three and capabilities. years of national sales experience and a demonstrable track record of revenue and share growth with agency, direct and event sales The successful candidate will to attain sales goals. The position requires problem solving skills, a focus on short and long term track record of developing and enhancing relationships as well as the strategy, communicating and ability to proactively drive revenue. The ideal candidate is a strategic executing the vision, forecasting thinker who is able to clearly communicate the story of the stations trends, capitalizing on new and effectively package spots, Digital, NTR and events. Experience and future opportunities, new with News Talk and Sports format is ideal. business and revenue growth including leading and developing a strong sales and To apply, visit our career center at www.cbsradio.com sales management CBS Radio is an equal opportunity employer. team.

RADIO ADVERTISING SALES - PORTLAND OR Qualified candidates, CLICK HERE to apply. Oregon’s 2014 Radio Station of the Year, News Talk 860 KPAM, and sister station Sunny 1550, are seeking Portland’s next great radio iHeartMedia is an Equal Account Executive. If you know how to build long-term relationships Opportunity Employer. with small to mid-size business owners, care about bringing results to those businesses, and can do it without ratings, then KPAM and Sunny could be your next home. The successful candidate will be motivated with high integrity and a strong desire to win and make a good living. Experience in broadcast media sales is necessary. KPAM and Sunny are two locally-owned radio stations offering excellent benefits and above average compensation plans in an employee focused environment. We are an equal opportunity employer.

Please send resume to our GSM: [email protected] No phone calls please. E.O.E.

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