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WEDNESDAY, JUNE 3, 2015

Forecast: Online radio ad dollars to grow 8.6%. Modest growth are the watchwords for broadcast radio as it enters an era of unprecedented choice for consumers and advertisers. Over-the-air ad dollars are forecast to grow at a compound annual growth rate of 0.5% from 2014 through 2019, according to a new report from PwC. Online ad dollars for radio broadcasters will grow at a much faster 8.6% annual clip during the same period. Bundling broadcast and satellite radio together, PwC reports total U.S. radio revenue grew 3.4% between 2013 and 2014, the fastest growth since the market dips of 2009 and 2010. What PwC calls “the reawakening of advertiser confidence” brought a 2.6% increase in radio ad revenue in 2014 while the smaller satellite and online radio sectors enjoyed higher growth rates of 9.4% and 12.4%, respectively. Radio growth has been slowing steadily due to competition from online audio alternatives like Pandora, and YouTube, the report says, and that continued disruption will see the rate of growth continue to slow every year until 2019. With a projected 1.8% compound annual growth rate, total radio revenue (including satellite radio) will reach $22.63 billion by 2019, with satellite accounting for 20% of the total, up from 17% in 2014. “ continues to eat away at radio advertising dollars and the radio audience,” says Greg Boyer, PwC’s principle U.S. lead for entertainment. “Whenever there are more choices for consumers, the result will be a disruption in the traditional business models.” To grow, radio needs to innovate, Boyer says. Radio needs to ask, “How can we innovate around the customer experience and fortify the experience they have today,” he says.

How PwC sees radio’s online conundrum. Aiming to be everywhere the consumer is, many broadcasters have made growing online listening a top priority. But a new PwC report hints at “an inherent tension” in broadcast radio’s online migration strategies. Here’s how PwC describes radio’s conundrum: The better it gets at moving more of its consumption online, the more those audiences become exposed to digital alternatives that offer less (or no) advertising, along with greater user flexibility and control. There’s also a different ad load expectation among some online listeners. According to Edison Research, 80% of weekly broadcast radio listeners describe advertising as “a fair price to pay for free programming”, but the rate falls to 75% of online listeners. Online audio consumers are accustomed to a “bewildering degree of choice” and substantially lower spotloads, the report states. But Greg Boyer, PwC’s principle U.S. lead for entertainment, says it’s not too late for broadcasters to seize the interactive opportunity awaiting online. “One thing radio can do is move much more aggressively to the internet space and convert the experience to digital,” he tells Inside Radio. “Radio should build a moat around their listener base and serve them well. Create a stickiness and loyalty among listeners and transition to a more digital experience.” To retain relevance in the digital era, traditional broadcasters will need to lean more on their unique

[email protected] | 800.275.2840 PG 1 NEWS insideradio.com WEDNESDAY, JUNE 3, 2015 assets, like live personalities and spoken-word programming, PwC says. “But streaming music services also recognize the importance of investing in spoken-word content of their own to broaden out their proposition,” the report says.

Report: Half of all new vehicles sold this year to be internet-enabled. With 44% of all radio listening taking place behind the wheel, the car remains ground zero for radio listening. But the medium’s monopoly on in-car listening may be coming to an end. The GSMA, a trade group that represents mobile operators, expects 50% of all new vehicles sold this year to be internet-enabled with the number hitting 100% by 2025. That and growing satellite radio penetration will continue to put pressure on radio’s dominant position behind the wheel. “Automotive listening is still huge for radio, but internet radio and Wi-Fi accessibility will cause disruption,” PwC’s Greg Boyer tells Inside Radio. “But the radio industry has been very resilient, always finding a way to survive. Radio is very good at one-on-one interaction, which can’t be copied by pureplays.” Satellite radio, too, will face what PwC calls “intensifying pressure from online alternatives,” even as it grows its share of in-car listening. “As goes the health of the automotive market, so goes the health of satellite radio,” PwC says in its Entertainment & Media Outlook 2015-2019 report. Still, broadcast radio remains the dominant audio medium on the road. In April 2014, 86% of American car owners listened to broadcast radio in the car at least monthly, compared with 17% for satellite radio and 14% for online. “Radio has a more stable consistent experience, because of the in-car listening patterns,” Boyer says.

Just-launched DGital Media snaps up WYD Media Ad Sales. A new spoken word audio player is snapping up an ad sales firm to help monetize its multi-platform push into talk programming. Startup DGital Media has acquired New York-based WYD Media Ad Sales, which specializes in spoken word ad sales. DGital Media launched last week, led by David Landau and Spencer Brown, the former co-CEOs of Dial Global/Westwood One, in a partnership with venture capitalist Michael Rolnick. Under a deal announced Tuesday, WYD Media founder Ron Hartenbaum will become DGital Media managing director and WYD’s John Murphy will join as president. Brown says the WYD acquisition will give his fledgling company the ability to build and monetize audio content on broadcast, satellite and online platforms. Hartenbaum says the sale of WYD will allow it to broaden its client roster and ad sales menu. WYD’s current offerings include Fox News Radio, Thom Hartmann, Michael Smerconish, Ed Schultz and Stephanie Miller, among others. “While some believe radio and audio are in their sunset phase, we continue to believe in the power of spoken word programming, in podcasts, streaming and radio,” Landau tells Inside Radio. “The audio pie is growing, not shrinking.” In addition to a New York-based ad sales team, the acquisition brings sales offices in Detroit and Los Angeles, along with distribution, research, analytics and accounting capabilities. DGital Media’s first venture, announced last week, will be the Re/code Radio network which will feature a portfolio of programs starting with Re/code Decode, to be hosted by noted technology journalist Kara Swisher and slated to go live this month.

Entravision chases ‘a new style of paparazzi radio’ into nine new markets. Entravision is chasing what it calls “a new style of paparazzi radio.” “LM Show.com,” the Hispanic broadcaster’s afternoon celebrity and entertainment news program, has added nine new markets: Denver; El Centro, CA–Yuma, AZ; Modesto, Palm Springs and Sacramento, CA; El Paso and McAllen, TX; Phoenix; and Las Vegas. Eight of the nine new affiliates are Entravision-owned Spanish adult hits “Jose FM” outlets. The ninth is Las Vegas Spanish CHR “Super Estrella 92.7” KRRN. The company is so bullish on the nine month- old show that it has added it to just launched “Super Estrella” stations in Denver and Modesto. Formerly known as “LA’s Mananitas,” the show debuted in September 2014 on L.A. Spanish CHR “Super Estrella 107.1” KSSE. Hosted by Francisco “Paco” Galvez, “Naranjito” Jorge Velasquez, Hyacinth Itzel and Juan Manuel Navarro, Entravision says the afternoon show delivers celebrity gossip and breaking entertainment news for Latinos. “Entravision is proud to have pioneered a new style of paparazzi radio with ‘LM Show.com’ that has proven successful with Latino listeners,” COO Jeff Liberman said in a statement. Liberman calls the show’s expansion to nine new markets across five states “a testament to our dedication to unique and innovative programing and our position as a trusted source of news and entertainment for Latinos.”

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RTDNA Survey: Radio news profitability declines. Last year marked another strong year for the TV news business, according to the latest RTDNA/Hofstra University Annual Survey. More than 60% of TV newsrooms reported that they made a profit on local news in 2014. But the percentage wasn’t as rosy at radio newsrooms. Just 13% of radio news directors and general managers taking the Radio Television Digital News Association’s annual newsroom survey report their station made a profit on news last year. That’s down from nearly 25% in 2000. There were no consistent patterns this year on which radio stations made a profit on news, according to Bob Papper, the Hofstra University emeritus professor of journalism who conducted the survey. “The only thing I can report this year is that stations in the West were way less likely to report making a profit on news,” he says. Papper concedes that results vary from year to year depending on how many news and news/talk stations return the survey. For a second year in a row, the survey found the average radio station revenue from news was 9.7% with a median percentage of just 5%. The average was down from last year’s 21%, but the median was up from last year’s 2%. Radio website profitability dropped by half this year from last – down from 15.4% to 8.1%. The drop was particularly pronounced in large and major markets. Radio news budgets for 2014 looked a lot like they have for the past two years. “Budget increases were most likely for the biggest newsrooms and in the biggest markets,” Papper says.

Report: Personalities part of new Apple service. Apple is swiping a page or two from the radio programming handbook for its new streaming service. While the thrust of the tech titan’s new digital music offering is expected to be a $10-a-month on-demand service that competes with Spotify, Apple also plans to offer a free, ad-supported streaming radio service. The Wall Street Journal reports Apple will offer a raft of channels programmed like broadcast stations, complete with high-profile personalities. But the radio service is expected to be targeted mainly to listeners outside the U.S., who don’t have access to Pandora, which is available only in the U.S., Australia and New Zealand. Apple has lured several well-known DJs and producers from BBC Radio 1, including influential personality Zane Lowe, according to the Journal, and is having conversations with rappers Drake, Q-Tip, and Dr. Dre to host shows. The company already has some U.S. radio programming experts in the house. Julie Pilat, the former program director of iHeartMedia modern rocker “Alt 98.7” KYSR, Los Angeles and music director of CHR sister KIIS- FM (102.7), serves as head of music, curation and artist development at Apple-owned Beats Music, which is expected to eventually be folded into the new streaming service. Apple is also likely to offer Pandora-like custom stations in addition to the new programmed channels.

FCC finalizes approval of station sale to Pandora. Early last month the FCC cleared the way for Pandora to buy hot AC “Hits 102.7” KXMZ, Rapid City, SD but placed some conditions on the controversial deal. Pandora’s foreign ownership must be kept under 50% and no individual foreign investor will be allowed to hold more than a 5% stake in the company. The webcaster will need to certify it’s meeting those guidelines every two years, and those conditions will also have to be written into its corporate bylaws. The Commission required Pandora to submit a compliance plan within 90 days. Yesterday Media Bureau Audio Division chief Peter Doyle formally granted the license transfer from Connoisseur Media to Pandora, after signing off on Pandora’s compliance plan. But he reinforced the May 4 approval stipulation that Pandora shareholder approval of the deal conditions must not only be sought but obtained. Pandora is required to present the matter for a shareholder vote at its 2016 annual shareholder meeting, and, if approval is not obtained, to try again at the 2017 meeting. “If approval is not obtained for a second time, the Station will be subject to divestiture,” Doyle writes. ASCAP had argued the FCC should reject Pandora’s purchase of the station on the grounds that it doesn’t have a sincere desire to become a broadcaster and just wants to reap the benefits of potentially lower royalties. But Doyle notes that the Communications Act doesn’t require the Commission to examine the motivations of an applicant for a broadcast license.

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Report: Stage set for a three-way country battle in Indy. Emmis and Cumulus are in for some new country competition in Indianapolis. As part of a $1.95 million, two-station deal with Disney, iHeartMedia is buying former Radio Disney affiliate WRDZ-FM. It’s expected to flip to country as “Big 98.3” under new calls WUBG, according to the Indianapolis Business Journal. IHeart uses “Big” branding on its recently launched country station in Chicago. Licensed to Plainfield, WRDZ-FM is a 30,000-watt Class A. It will go up against Emmis’ “Hank-FM” WLHK (97.1), which topped the market in Nielsen’s April survey with a 7.5 share of listeners aged 6+. Cumulus also has a strong country station in the market, WFMS (95.5), which ranked eighth with a 5.5. Together the two stations capture a 13 share. The sale is expected to close in early August, although the new format could launch sooner via a local marketing agreement. The other station iHeart is acquiring from Disney is in Salt Lake City.

WideOrbit integrates with NextRadio. Inserting interactive advertising and programming elements just got easier for stations running WideOrbit Automation for Radio. The latest release of the ad management software is fully integrated with TagStation, the Emmis- owned company that provides the backend for NextRadio broadcasts. WideOrbit says it’s the first media management platform to integrate with NextRadio. The two companies say the integration provides “a seamless technical experience” for enhancing ad campaigns, providing interactive programming and generating listener metrics and analytics. It also eliminates the need to implement middleware that can add setup and management costs for broadcasters.

Pot-branded station lights up Denver. First there was “K-High,” now get ready for “Smokin 94.1.” But Colorado’s latest weed-branded radio station is less pot talk and more of a musical lifestyle soundtrack. Promising “one hit after another,” the classic rocker launched this week on translator K231BQ, licensed to Golden, CO and fed by KBUD (1550). A former sports talker under different call letters, KBUD was recently acquired by Marco Broadcasting Corporation. There’s no need to be subtle in Colorado, where recreational use of marijuana is legal. “Smokin 94.1” invites listeners to “wake and bake” with Bubba The Love Sponge in morning drive, followed by a lineup that includes Ed Blaze, Gary Ganja and Stoney Reynolds. In as press release, station owner Marc Paskin says Bubba is a natural fit for the station’s new format. “He loves weed, fast cars, hot girls, and rock music,” Paskin says. Bubba says a number of his fans have moved to Colorado and his show has long advocated for the legalization of marijuana. “Rock music and smoking pot have historically gone together like peanut butter and jelly,” the host says in a statement. “I can’t wait to fire it up in Denver.”

Country fragments in Macon. Radio listeners in Macon are in store for a lot more “Bull.” IHeartMedia has rebranded country WPCH as “96.5 The Bull” and launched “97.3FM The Bull Icons,” a gold-based sister country station via an AM-fed FM translator. Similar to the “Icons” brand launched last year by , “The Bull Icons” revolves around an earlier era of country music from big names like Alan Jackson, George Strait, Garth Brooks, Reba McEntire, Alabama, Brooks and Dunn and Hank Williams, Jr. It replaces Spanish adult hits “La Preciosa 1280” WIBB and simulcasts at 97.3 via translator W247BW. Although it drops the “New Country 96.5” moniker, WPCH continues to air mainstream country while picking up the Premiere-syndicated “Bobby Bones Show” in morning drive.

Atlanta Track Club inks deal with ‘The Fan.’ The AJC Peachtree Road Race attracts 60,000 runners and walkers of all ages and Dickey Broadcasting’s “The Fan” WCNN (680,93.7) has signed a multiyear agreement that will make the station the official radio partner for the event. The deal also includes several other races put on throughout the year by the Atlanta Track Club. The agreement includes live broadcasts, event marketing, sales and co-creation of content. WCNN will also help the Atlanta Track Club develop two new races each year. “Atlanta Track Club does a terrific job of executing incredible races, as well as helping to educate and promote the importance of running and healthy living,” WCNN owner David Dickey says in the announcement. “We look forward to partnering with the Club to create new, exciting races, as well as bringing even greater levels of media value and exposure to the existing races and the race-sponsorships.”

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LOCAL SALES REPS - CHICAGO LEASE MANAGEMENT Direct Media Power, Inc. (DMP) partners with every major National OPPORTUNITY Radio Network and 1000s of local radio stations nationwide to liquidate WITK Wilkes Barre/Scranton, PA millions of dollars of their unsold radio commercial air-time. We are 1550 AM 10,000 watts day/night currently looking for Local Account Executives to work a proven sales 500 watts. system from our Chicago area based office. Contact Bob Wilkins, 336-946-0197 or email: So what’s in it for you? Potential to earn a high [email protected] income, no territory boundaries, no caps on commissions, opportunity to work for a growing and entrepreneurial company where every voice GENERAL MANAGER is heard. SOUTHEAST Creative, Energetic If you have sold media in some type of capacity, Radio or TV, then we Revenue Hawk need to speak to you! For immediate consideration, please email your cover letter and resume to: [email protected], or • Build a career with the nation’s just give her a call 630-256-8600 ext 7031. I promise, she won’t bite! 6th largest media company! • Lead a key market which has qualTALK SHOW MANAGER - BONNEVILLE INTERNATIONAL our most successful formats! Only a few radio stations still offer all local celebrity talk hosts, major league daily news coverage, and intensive community Salem Media Group’s integrated involvement. Do you work at one of them? media platforms uniquely serve audiences seeking Christian and Let’s talk about what that might look like. conservative content.

KSL NewsRadio is hiring a new manager to oversee two daily talk If you want to control your shows with the support of assistant producers. The Executive financial destiny and you have Producer of Talk will provide the vision and tactics for topic proven ability to find, hire and selection, story arc, production values, and ratings success for the empower great sellers, let’s talk. Doug Wright Show and The Browsers. You’ll help develop strategy, coach talent on execution and engagement, and take a key place at Salt Lake’s longtime #1 radio station.

We are already maniacs about breaking news and wall-to-wall coverage of breaking stories during our talk programming. We want your expertise and discipline to develop the showmanship, Email: engagement, and creativity of our hosts. [email protected] and reference GM/SE. To be considered, complete a KSL application HERE. Then send Salem is an equal opportunity a resume and snapshot of your talk philosophy to: employer.

Kevin LaRue Program Director KSL NewsRadio 55 North 300 West Salt Lake City, UT 84101

By no means do we have all of the answers, so we welcome a critique of opportunities by listening to both talk shows. Seriously, have at it. Women and minorities are encouraged to apply.

KSL is an Equal Opportunity Employer M/F/D/V and one of the last great radio stations to work at in America.

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