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THURSDAY, AUGUST 6, 2015

Townsquare Rise Proves Value of Doing It Live. A 10.6% increase in second-quarter revenue to $117.5 million at Townsquare Media is being trumpeted by the company as further validation of a diversification strategy built on the tent poles of local radio, live events and national online portals. But it was events that paid the biggest Q2 dividends for the publicly traded company. Driven mainly by music events, especially its multi-date festivals, event revenues increased 50.4% to $29.7 million during the second quarter when compared to the same period last year, Townsquare said Wednesday. It cited, among other factors, increases in attendance and revenue per attendee. The addition of three new festivals brought $2.1 million in incremental revenue in the quarter. Without them, event revenue would have been up 39.9%. Townsquare has also invested aggressively in a number of non-talent-based events, such as a national tour of craft beer festivals that is currently rolling out. “We’re doing lots of different things,” CEO Steven Price said during the company’s results call Wednesday. Staging live events requires significant upfront investments for Townsquare and other broadcasters that have made them radio’s fastest-growing revenue sector. So while they produce a big revenue pop, Townsquare said it doesn’t expect the three new festivals to produce cash flow growth until years two and three. “We produced yet another strong quarter and believe that it underscores the success of our ‘Townsquare everywhere’ diversification strategy,” Price said.

Price Sees Local Ad Market Improving. Live event revenue was the showstopper for Townsquare Media in the second quarter. But while local ad revenues inched up only 0.6% to $78.5 million, they still accounted for nearly triple the dollars that events put on the table. The local radio advertising market has sequentially improved, CEO Steven Price said yesterday. “I wouldn’t say we feel like it’s a boom market but it’s definitely improved and we feel better about it,” he told investors yesterday. Echoing comments made by other radio CEOs, Price said local clients have been booking business later than normal for the last year and that has made pacings more difficult to gauge. Still the company expects total revenue to grow in the mid-to- high single digits in the third quarter. The majority of Townsquare’s revenue comes from local ad sales. With market conditions varying greatly from one market to another, it’s difficult to generalize ad trends. “Local factors often overwhelm the bigger economic trends,” Price said, such as a city dealing with an especially choppy economy. “Sometimes a great management team that’s aggressive can out run that and in some cases they can’t,” he said. “So much of our business is local that it’s hard to parse out a general ad environment.”

Moonves: CBS Radio ‘Making The Right Moves.’ CBS Radio recently completed its first major upper management restructuring since 2007 under new president Andre Fernandez. CBS Corp. CEO Les Moonves and COO Joe Ianniello yesterday expressed confidence that Fernandez, newly named chief operating officer Scott Herman and their team are steering the ship in the right direction. “In radio, our new management team is making the right moves to rejuvenate the business for the digital future,” Moonves told investors during the company’s second quarter earnings call. “CBS Radio has huge brands like WFAN [] and ‘The Score’ [WSCR] in that are now able to find new ways to grow by expanding on to digital platforms outside of their own markets.” Revenue at the company’s radio division decreased 5% while billings at its TV stations grew 1%. All told, local CBS broadcast revenues decreased 2% to $654 million. Auto and healthcare were both “up nicely,” Ianniello said, while entertainment and financial services were “somewhat soft.” Local advertising for radio and TV is pacing even in the third quarter. The company attributes some of the Q2 decline to lower political spending compared to last year’s mid-term elections.

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But with the 2016 presidential election ramping up, Moonves expects that to change. “Local broadcast will be much, much better,” he promised. “The coming election season will trump anything we’ve ever seen before.” The company’s TV stations are “terrifically positioned” to capitalize on election spending, Moonves said, “and it will also be a great opportunity for our radio stations to build on the momentum they achieved during last team’s mid-term elections.” CBS reported restructuring charges of $55 million for its radio and TV station operations, which it said are expected to reduce its annual cost structure by about $70 million.

Passion Players—Study Picks Top Cities Per Format. It’s hardly surprising that Nashville is the top-ranking market for country radio, but who would have picked Kansas City as tops in the nation for sports? A new study from Priceonomics explores which cities attract the largest audiences for some of the biggest formats, analyzing June 2015 Nielsen radio station ratings in the 50 largest markets. For the nation’s top format by station count—country—the biggest audiences behind Music City are also found down south: Charlotte, Jacksonville, Austin, San Antonio, Greensboro and Houston. Less obvious among the top 10 are City, Columbus and Salt Lake City. For the news format, DC leads the pack, followed in the top 5 by St. Louis, Chicago, New York and…surprise…Milwaukee-Racine. is also the No. 1 audience market for NPR (its base), followed by the heady Research Triangle Raleigh-Durham, Boston, Seattle-Tacoma and Portland. Among sports towns, KC keeps track of its team scores with the most rabid airwaves fervor, followed by equally athletic Boston, and then Detroit, and San Jose. Rounding out the sports top 10: Long Island, Pittsburgh, Seattle, Minneapolis and Baltimore. Urban radio leads in the Southeast, with top 4 towns Norfolk- Beach, New Orleans, Atlanta and Miami, and No. 5 Detroit tossed in for some Northeastern dedication. Priceonomics analyst Dan Kopf says of the study: “Traditional radio caters to local audiences. We were curious about what the success of certain radio formats could tell us about cities and regions across America [and about] geographically specific culture and interests.”

Townsquare Sells 43 Towers for $22.8M. Townsquare Media has joined a growing list of radio companies selling their broadcast towers to monetize what they see as a valuable non-core asset tucked away in their holdings. The company has cut a deal to sell 43 towers to tower giant Vertical Bridge Holdings for $22.8 million. Townsquare is holding on to 250 towers, which Vertical Bridge will market to add additional tenants in a revenue share arrangement with Townsquare. Townsquare CEO Steven Price says the sale “unlocks capital” and makes better use of assets the company hadn’t maximized to their full potential. Townsquare hasn’t aggressively sought new tenants for its tower portfolio, Price said, many of which either don’t have outside tenants or have only a small number of them. Still others have structures that currently aren’t conducive to bringing in tenants. The deal is structured to not increase Townsquare’s costs, granting what Price said is essentially a 35-year, rent-free lease for its existing station transmitters on the 43 sites. However, the sale will reduce annual revenue by about $1.5 million from lost rent from third-party tenants who lease space on the towers, the company said. “This deal makes a lot of sense for our company,” Price told investors yesterday during the company’s quarterly results call. Other operators have reached a similar conclusion. iHeartMedia recently closed on the sale of roughly 370 broadcast towers, in a deal that leases space for its stations on the divested sites. is selling valuable real estate in Los Angeles and Washington, DC that are home to towers it owns in those markets.

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Wilson Doubles His Pleasure With Digity Deal. Alpha Media founder Larry Wilson says he has been trying to buy Digity Media’s West Palm Beach stations since they were owned by famed sportscaster Curt Gowdy. On Tuesday he finally sealed the deal – not just for the market-dominant WPB cluster but for more than 100 other stations rolled up by Dean Goodman’s Digity. Wilson says the transaction will nearly double Alpha’s revenue. BIA Kelsey estimates 2014 revenue for Digity at $73 million and $155.9 million for Alpha. However Mark Fratrik, BIA Kelsey chief economist, says his estimate for Digity understates its revenue since a sizable amount of the company’s stations operate outside Nielsen Audio markets which the firm doesn’t track. Even with an admittedly undercounted combined revenue of $228.9 million, Alpha will advance from radio’s 13th largest company to ninth, just ahead of Hubbard Radio, Fratrik says. In addition to West Palm Beach, Wilson likes the way Digity’s two Bay Area class Bs – AC “K-Bay” KBAY (94.5) and hot AC “Mix 106.5” KEZR – match up with the three Far East Bay stations Alpha recently acquired. But apart from that, there’s almost no overlap between the two companies. After selling Citadel , Wilson has come a long way to build a second radio company at scale, starting with just six stations in 1999. Purchasing Digity will take the total number of stations owned by Alpha to 251 in 54 markets. “We really wanted to get critical mass, there are a lot of things we can do if we have enough coverage,” Wilson tells Inside Radio. “This will let us be a major player.” Read more about the Alpha-Digity merger in “Five Questions With Larry Wilson” in tomorrow’s Inside Radio.

Jenner Parody Billboard Takedown In Toledo—Was It Vanity Or Fair? It’s a long-standing radio tradition: Using local billboards to take a quick, comical, even controversial shot at a celeb of the moment, while also plugging your station. But as one Toledo, OH host recently discovered, Caitlyn Jenner may not be the most productive person to parody. Cumulus Media hot AC “Star 105.5” WWWM-FM Toledo host Denny Schaffer’s face was superimposed on Jenner’s body from her now-famous Vanity Fair cover recently. The billboard urged listeners to “Transition to Star 105” adding, “don’t call me Caitlyn.” Jenner, of course, is the Olympian and reality show star formerly known as Bruce Jenner, who famously transitioned to identifying as female. Local and national press picked up on the billboard immediately, with some LGBT community leaders calling it insensitive and demanding it be taken down. The station used its Facebook page and Twitter feed to spotlight the billboard with multiple posts and pictures, and solicited listeners’ opinions. Dozens of users commented on Facebook, with reactions ranging from support to demanding advertisers boycott the station. Schaffer defended the move, saying in a statement: “It’s a parody of a magazine cover. I think Caitlyn Jenner is a hero, and if you listen to my show you would know that,” according to Toledo ABC affiliate WTVG-TV. All that said, Star 105 certainly got its moment in the spotlight—on Thursday morning, the station posted a series of pictures on its Facebook page showing workers peeling off the controversial billboard, replacing it with a temporary black curtain. Reaction from one Facebook user said, in part, “How disturbing that we have lost our freedom of speech.”

Sirius Hopes Intern Offer Settles Things. Following a rash of recent lawsuits brought by former interns against media companies for unfair labor practices, SiriusXM Radio is attempting to avoid facing some of its former interns in court. The satellite broadcaster is offering a $1.3 million settlement to those unpaid interns to avoid costly litigation. The proposed settlement, outlined in court filings, would distribute payments to about 1,800 former interns, according to Reuters. Despite the offer, the company still contends that its internships were legal. A federal judge must approve the offer, but SiriusXM may be wise to try to resolve the issue out of court. Across the industry, radio stations are reevaluating how they use unpaid interns, long a fixture of daily workings. Several media companies, including National Public Radio, iHeartMedia and NBC, have faced lawsuits recently brought by unpaid interns contending their employers violated the Fair Labor Standards Act. That law says if an employer would have hired additional staff or made regular employees work longer hours to complete a job, then interns should be considered employees and paid for their work. Earlier this year, a DC Superior Court judge rejected NPR’s attempts to have an intern case dismissed and said the case could proceed to trial. In that case, a deaf student said her position wasn’t designed to learn about radio, but rather to teach staffers sign language. NBC recently forged a settlement with thousands of

[email protected] | 800.275.2840 PG 3 NEWS insideradio.com THURSDAY, AUGUST 6, 2015 former interns, agreeing to distribute $6.4 million, or about $505 to each intern, and earmarked nearly $2 million for attorney fees. For its part, iHeartMedia recently settled with ex-intern Liane Arias for an undisclosed amount over a lawsuit alleging she should have been compensated for five months work.

Salem Reports Flat Broadcast Revenue. Salem Media reported flat broadcast revenue of $49.1 million in the second quarter, compared to the same period last year. The company acquired a pair of former affiliates in Pittsburgh and Atlanta during the quarter and said its same station broadcast revenue decreased 1.2% to $48.4 million from $49.0 million. “Given that it was not an election year, we consider this a good performance and it was within our expectations,” CEO Ed Atsinger said yesterday of the company’s broadcast performance. With an unprecedented field of 17 candidates vying for the Republican party’s nomination for next year’s presidential election, Atsinger said it is “very likely” Salem will see an above-average amount of political spending in the back half of the year. In fact, Salem is already starting to see political dollars flow to some of its stations “as candidates are positioning to gain traction and support from our listeners to drive poll numbers and qualify for the upcoming debates,” Atsinger said. While radio held its ground, declines in the Christian media company’s publishing and digital divisions contributed to a 2% decrease in total Q2 revenue to $67.3 million from $68.6 million one year ago.

SoundExchange Rides Growing Digital Wave. SoundExchange announced that as of this week, it has paid out $3 billion in royalties to performers and record companies. It’s a bulls-eye statistic that well demonstrates the rapid-fire growth of digital radio. For context, consider that the independent digital performance rights organization spent nearly a full decade beginning in 2000 ringing up its first $1 billion in revenues. In early 2014, it marked $2 billion. And now, less than two years later, its third $1 billion has been logged. That slices the time between $2B and $3B by more than half. “When we started, we were a rounding error on most people’s income statements,” SoundExchange president Michael Huppe told The New York Times this week. “Now we’re one of the top accounts at most recorded music companies.” Inside Radio previously reported that SoundExchange payments were equivalent to about 16% of the American recording industry’s entire income of $4.9 billion, according to the RIAA. Pandora and SiriusXM Radio continue to be the primary digital radio vehicles responsible for the milestone payment figures, while royalties are also collected from thousands of other online music outlets, including broadcast radio stations. The Times notes that after deducting operating expenses (4.6%), SoundExchange pays half of its royalty income to owners of recordings—most often record companies—along with 45% to featured performers and 5% to a fund for backup singers and session musicians.

Search For Hot Spot In NextRadio Contest. NextRadio is turning to the next generation of broadcasters to help build awareness for the app that unlocks FM radio on smartphones. NextRadio developer Emmis Communications and College Broadcasters, Inc. (CBI) are offering students from across the country the chance to gain major exposure by producing a one-minute radio spot promoting the app. “This is a huge opportunity for students to have their radio spot played nationally among thousands of broadcast stations and heard by millions,” said NextRadio president Paul Brenner in a statement. CBI president Greg Weston remarked that contest winners will also be able to take advantage of the educational opportunities available at the National Student Electronic Media Convention (NSEMC), coming to Minneapolis Oct. 22-24. CBI serves students and advisers of college and high school electronic media outlets. Winners of the competition, which runs from August 17-September 18, will be announced on September 28. The first-place recipient will have his or her 60-second radio spot included in flight four of the NAB National Awareness Campaign, beginning October 1. Besides having their radio spot played on-air across the nation, the winner will be awarded one free NSEMC registration spot at the Oct. show, along with a two-night hotel stay at Hyatt Regency and airfare travel to NSEMC. The convention is committed to the interests of student radio stations, TV/video outlets and webcasters. To learn more about the contest, including how to submit a spot, go to: www. nextradioapp.com/collegecontest. — Get more news, people moves and insider extras @ www.insideradio.com. —

[email protected] | 800.275.2840 PG 4 DEAL DIGEST insideradio.com THURSDAY, AUGUST 6, 2015 S A L E S: Detroit – Krol Communications strikes a $3.5 million deal to buy suburban classic hits WHMI-FM (93.5) from Greg and Marcia Jablonski’s Livingston Radio Company. The retiring couple has owned WHMI since 1989 although Greg Jablonski began working at WHMI in 1969 as a contract engineer for a former owner, helping the station make a transition to FM in 1977. WHMI is situated to the northwest of the market, between Lansing and Detroit. Rodney Krol already owns classic rock “103.9 The Fox” WRSR in the Flint, MI market as well as AC “Z-92.5 The Castle” WJSZ, Ashley, MI and classic country “The Big M” WMLM, St. Louis, MI (1520). Broker: Jason James, Patrick Communications Chicago – Walter Kotaba’s Polnet Communications strikes a $3.45 million deal to buy “Radio Disney” station WRDZ (1300) from . The acquisition will give Polnet its fifth AM in the Chicago market where it also owns Polish-language “Polskie Radio 1030” WNVR, Ethnic Greek/Russian WEEF (1430), Ethnic Korean/ Russian WKTA (1330), and Spanish “La Campeona” WPJX (1500). Polnet also owns the Chicago low-power ethnic TV station WPVN-CD (channel 20). Brokers: Bill Schutz and Kozacko Media Services (for seller) – Some intra-family deal-making as Simon Fuller-led Better Broadcasting files a $1.35 million deal to buy “Classic Hits 92.1” KCHE- FM and “Unforgettable Favorites 1440” KCHE from Jeff Fuller-led J&J Broadcasting. Both stations are licensed to Cherokee, IA. The father and son are also among the owners of “Classic Hits 106.3” KVHT and “ESPN Radio 1570” KVTK in Vermillion, SD. – Dan and Kim Dockstader’s SVI Media files a $900,000 deal to buy the “Star Country USA” simulcast KRSV-FM (98.7) and KRSV (1210) from the Hansen Family Trust. Both stations are licensed to Afton, WY. The terms of the deal include a $300,000 payment at closing and a 15-year promissory note for the balance stretching to 2030. – Monte Spearman’s High Plains Radio Network is expanding its company into neighboring Arkansas with an $820,000 deal to buy “Mountain Talk 97” KJMT, Calico Rock, AR (97.1) and “Mountain Country 94.3” KCMC-FM, Viola, AR and its simulcast KYMT, Gassville, AR (92.7) from Scott Gray’s Malvern Entertainment. Gray, a consulting engineer from Little Rock, has no other radio holdings. Broker: Bill Cate, Media Services Group

Binghamton, NY – Steven Gilinsky buys out business partner Thomas Mollen’s 75% stake in GM Broadcasting, owner of AC “Magic 101.7” WLTB. For a $250,000 payment Gilinsky will increase his ownership interest from its current 25% to 100%. The deal also includes the Owego, NY-licensed translator W273AB at 102.5 FM. Tri-Cities, WA – James Ingstad Broadcast Group reaches an $80,000 deal to buy the Richland, WA-licensed translator K291BS at 106.1 FM from Tom Hodgins’ Alexandra Communications. Ingstad tells the FCC it will use the new signal to simulcast CHR “Power 99” KUJ-FM although its big signal could mean the relay of an HD2 subchannel is more likely. Alexandra just bought the translator in April for $30,000 from Butterfield Broadcasting. Brokers: MCH Enterprises (for seller) and Phoenix Media Group (for buyer) – James and Darcy Nelly file a $75,000 deal to buy the country simulcast of KORT-FM (92.7) and KORT (1230) in Grangeville, ID from

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Mike Ripley’s 4-K Radio. The sale also includes the Kamiah, ID- soft AC “Soft Rock 101.1” KHME, hot AC “KG-95.3” KAGE-FM, “KG- licensed translator K221BA at 92.1 FM and the Pierce, ID-licensed Country 1380” KAGE, and news/talk KWNO (1230). Bob Leighton translator K240AP at 95.9 FM. Nelly Broadcasting already owns already owns stations in St. Cloud and Detroit Lakes, MN as well as “Big Country 97.7” KZBG, Lapwai, ID and classic hits “98.5 K-Hits” Grand Forks, ND. Broker: Susan Patrick, Patrick Communications KZID, Culdesac, ID. Milwaukee — Bustos Media has closed a $1 million deal to buy Macon, GA – John Timms, Martha Leverette and Chris Murray regional Mexican “La Gran D 104.7” WDDW from Adelante Media. file a $55,000 deal to buy classic country WXKO (1150) and the Bustos previously owned the station from 2006 to 2010 when a Montezuma, GA-licensed translator W290BD at 105.9 FM from restructuring put WDDW into Adelante’s hands. Broker: Bill Fanning, Sun Multimedia. Timms is the managing partner of the group that Media Venture Partners will operate WXKO under a time brokerage agreement until closing. Murray’s Macon Urban Radio Alliance owns three other Macon Texas -- Martin and Patricia Jane Benevich’s Alpine Media closes stations including urban “Power 107.1” WFXM, urban AC “Kiss a $475,000 deal to buy country KALP (92.7) and classic hits KVLF 107.5” WRWR (107.5), gospel “Praise” WYPZ (1350). He’s also (1240) in Alpine, TX from Ray Hendryx’s Big Bend Broadcasters. in the process of buying gospel WBML (900) from Sun Multimedia The contract says $275,000 of the purchase price goes toward for $125,000. KVLF and $200,000 for KALP. The deal marks the end of the Hendryx family’s ownership of the stations that dates back 68 years. – Jim Vice’s Eagle’s Nest files to buy the Auburn, AL- Martin Benevich also owns Big Canyon Television, a local satellite licensed translator W234BQ at 94.7 FM from Pat Jarrell for $42,000. television retailer. Eagle’s Nest owns several sports stations in the area and it tells the FCC it plans to simulcast “Eagle Sports” WLWE, Roanoke, AL – Minn-Iowa Christian Broadcasting closes on its (1360) on the new translator. $250,000 deal to buy Minneapolis market KJGT, Waconia (88.3) from Jagerita Radio. KJGT will simulcast new sister station “Kinship Arkansas – Educational Media Foundation spins-off the Fort Smith, Christian Radio” KJLY (104.5) in the Mankato, MN area. Broker: AR-licensed translator K254AM at 98.7 FM to G2 Media Group for Kozacko Media Services $40,000. The purchase will give G2’s talk KYHN (1650) an FM outlet. EMF is willing to part with the translator that’s currently — Real Presence Radio closes a $200,000 deal to airing its contemporary Christian “K-Love” network because it has buy religious KQFR, Rapid City, SD (89.9) from Family Stations. a pending deal to buy full-power KEAF (90.7) as part of a multistate This is the first South Dakota station for the Steve Loegering-led deal with Family Stations. Real Presence Radio, which also owns station in and Minnesota. It has requested the new call letters KJRC. Alabama – Red Mountain Ventures files a $35,000 deal to buy the Fish Pond, AL-licensed translator W243AP at 96.5 FM from John Fayetteville, NC – Wes and Sandy Cookman’s Service Media Hain Jr. The signal will simulcast Huntsville, AL market religious low- closes a deal to buy gospel “The Powerhouse” WYDU (1160) in power station WQXD-LP (97.9). Broker: Fowler Media Consulting the Fayetteville, NC market from Beasley Media Group for $75,000. Service Media also owns gospel WAGR (1340) and gospel/religious Ohio – Saga Communications expands its small market Crawford WIDU (1600) in the Fayetteville market. Beasley still owns five County, OH cluster with a $30,000 deal to buy the Mansfield, OH- Fayetteville stations. licensed translator W276CM at 102.9 FM from the American Family Association. Saga tells the FCC it will simulcast classic hits “Q-92” Maryland — Calvary Christian Fellowship of Cumberland closes a WQEL, Bucyrus (92.7) on the signal, although it could also relay $75,000 deal to buy religious “He’s Alive Radio” WLIC, Frostburg, an HD2 channel. MD (97.1) from He’s Alive Inc. Calvary Christian already owned the license for low power WZZJ-LP (94.7) and returned it to the FCC C L O S I N G S: rather than divesting to another entity. Broker: Robert Branch Jr.

Harrisonburg, VA –— Saga Communications closes a $9.64 million Chicago – Wild World Media closes a $55,000 deal to buy WGEN- deal to buy CHR “Q-101” WQPO, soft AC “Fresh 96.1” WJDV, rock FM (88.9) from Life On The Way Communications. Wild World “105.1 Bob Rocks” WTGD, “News Radio 550” WSVA, and “ESPN Media is a partnership between Georgia Graber, John Krampien Sports 1360” WHBG from VerStandig Broadcasting. The deal also and John Webb. Life On The Way also has a pending deal to sell includes the Harrisonburg, VA-licensed translator W221CF at 92.1 its Los Angeles market station to Educational Media Foundation. FM which simulcasts WSVA. Saga will also add “Real Country 96.9” Broker: Mark Jorgenson WSIG in the market under a separate deal, which has yet to close, with Vox Radio Group. Saga has changed WTGD’s call letters to Monterey-Salinas-Santa Cruz — Saul Levine’s Mount Wilson FM WWRE and WJDV’s calls to WMQR. Broadcasters closes its $50,000 deal to buy the final Buckley Radio station, the currently silent KIDD (630). The purchase price includes Minnesota — Leighton Enterprises closes a $9.5 million to buy 10 $26,000 for the station assets and $24,000 for a non-compete Minnesota stations from Pat and Jerry Papenfuss. The stations in agreement. The addition gives Mount Wilson FM Broadcasters the Fergus Falls-Perham area include country “KJ Country 96.5” five stations in the Monterey market, where it already owns classic KJJK-FM, sports “AM 1020 The Game” KJJK, AC “The Lakes 99.5” hits “Q-103.9” KBOQ, “Z Country 97.9” KYZZ, classical “K-Mozart” KPRW, classic rock “Z-103.3” KZCR, and news/talk KBRF (1250). KMZT-FM (95.9), and adult standards “Unforgettable 1240” KNRY. The stations in the Winona area include “Country 99.3” KWNO-FM, Broker: Dick Foreman

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