Bulletin YOUR DAILY ENTERTAINMENT NEWS UPDATE AUGUST 26, 2020 Page 1 of 23 INSIDE Radio’s Crushing Quarter Is About • Meditation’s New to Trickle Down to Publishers Gurus: Why Acts Like Harry Styles, John and Songwriters Legend Are Signing With Wellness Apps BY GLENN PEOPLES • Here’s the State of the Hot 100’s April through June was an unforgettable quarter for compared to the same period last year. Top 10 at Mid-Year the U.S. radio business. As the economy slowed and 2) Royalties paid by radio stations pay performance 2020, Per Hit Songs unemployment skyrocketed, stations’ advertising rights organizations (PROs) will fall sharply because Deconstructed revenues were often half of 2019 levels. radio ad sales plummeted in April (and are still in • TikTok Reveals By May 7, when iHeartMedia released its earn- negative territory through July). User Numbers for ings for the first quarter of 2020, the second quarter 3) Some radio licensees are attempting to pay PROs First Time in Trump was already a historic period in radio — and not in late or not pay at all. Lawsuit a good way. After acknowledging that advertisers The quarterly earnings releases of eight publicly • Morgan Wallen’s ‘7 had reduced or eliminated their spending, the radio traded radio companies show that revenues fell Summers’ Debut Is a giant’s CEO, Bob Pittman, laid out a persuasive case anywhere from roughly a third to 50% from the same Sign Not Just of His for optimism: combined with cost cuts and improved quarter a year earlier. Revenues of iHeartMedia, Own Stardom, But of liquidity, iHeartMedia would rebound “under conser- Cumulus and Entercom, the three largest U.S. radio Country’s Streaming vative recovery scenarios,” he said. As the recession companies, were down 46.6%, 47.8% and 53.8%, Rise continues, “advertisers will reevaluate things and take respectively. Two smaller competitors had similar • New York Is more chances” on new formats such as podcasts, he declines of 53.7% at Beasley Media Group and 47.6% Relaxing Mandatory explained. But by early April, after revenue cratered at Saga Communications. Urban One and Townsquare Quarantine Rules for in April, any radio executive knew they would face the Media performed well relatively speaking — they were VMAs Talent, But There Are Protocols most challenging months in their histories — the last- just down 37.5% and 34.5% (35% excluding politi- in Place ing effects of which haven’t yet been felt. cal advertising), respectively. Salem Radio Network Key Takeaways: dropped a mere 17.3%. • BILLBOARD 200 1) The largest U.S. radio companies suffered rev- The music industry should be ready for its own CLICK HERE enue drops as much as 53% in the second quarter (continued) PROMOTION SPECIAL ISSUE ON SALE SEP 19 2020 Billboard will publish its annual GRAMMY® ON SALE 9/19 Contenders special issue, showcasing the ISSUE CLOSE 9/9 music and artists that made an impact MATERIALS DUE 9/10 during the eligibility period for the 63rd GRAMMY Awards®. BONUS DISTRIBUTION: This special issue will highlight the artists, Voting Members of the Recording Academy producers and other creative professionals whose work is in contention this year, including for Record Of The Year, Album Of The Year, CONTACT: Song Of The Year, and Best New Artist. Joe Maimone | 201.301.5933 | [email protected] Lee Ann Photoglo | 615.376.7931 | [email protected] Marcia Olival | 786.586.4901 | [email protected] Take this opportunity to remind the industry Debra Fink | 213.448.5157 | [email protected] of the accomplished work that was released between September 1, 2019 – August 31, *Special rates available for independent artists and companies. 2020, as the members of the Recording Academy® prepare to cast their ballots for Music’s Biggest Night®. SUNDAY, JANUARY 31, 2021 bbHA_GrammyContenders_070820.indd 1 8/3/20 7:29 PM Page 3 of 23 IN BRIEF revenue declines, as radio’s woes will flow Global Music Rights will pay in late October. CEO Mary Berner during the Aug. 10 earn- downstream to songwriters and publishers. To help mitigate the loss, some PROs ings call. Other companies have narrowed Because stations pay performance royalties have tried to soften the blow to songwriters their deficits to 20% to 30% in the third based on revenues, not fixed amounts, they who are not touring by collecting royalties quarter. have paid PROs royalties commensurate “trapped in the system” to help songwrit- Faced with radio companies moved with first-quarter declines. And if PROs ers, says Anthem Entertainment Group quickly to save cash through furloughs and collect less money, they will pay fewer royal- CEO Hellen Murphy. “We’ve seen a lot of layoffs, and selling assets. iHeartMedia says ties. the societies... shoring up whatever shortfall it has reduced 2020 expenses by $250 mil- The group of eight publicly-traded radio by clearing whatever monies might have lion. Cumulus will reduce fixed costs by $85 companies will pay PROs roughly $37 mil- been in the pipeline for a while.” million this year and is raising $210 million lion less than the second quarter of 2019, ac- Through the end of the year, the eight by selling 250 radio towers locations (about cording to Billboard’s estimate. “Radio rev- publicly traded radio companies could dis- $140 million comes from a sale-leaseback in enue is subject to economic disruption,” says tribute as much as $70 to $75 million fewer which Cumulus will sell the property and attorney David Oxenford, who specializes royalties than the prior year, Billboard esti- lease it from the buyer). in broadcast radio law. “There certainly was mates. To make matters worse, other royalty Liquidity isn’t a problem — yet. At iHeart- a significant downturn in 2008 and 2009 sources, from bars to television, will also Media had about $868 million available with the great recession, and significant falter in 2020 and 2021. Indeed, ASCAP liquidity on June 30 and no “material” debt downturns in previous recessions, though president Paul Williams said in an April 3 covenants that would normally put a com- probably not to the extent of this year’s.” As letter to members the pandemic “will have pany in default. Cumulus improved its cash a whole, U.S. radio stations will take in $12.8 a material and negative impact financially balance to $197 million, allowing for opera- billion this year, down from $14.1 billion in on almost every category of licensing” and tions “even through a protracted downturn,” 2019, according to a BIA Advisory Services warned of declines in revenues and distribu- said Berner during the Aug. 10 earnings call. forecast on June 25. tions. Entercom improved its cash to $208 million The timing of royalties from the troubled The good news — for all stakehold- and loosened some loan terms through 2021 second quarter varies by PRO: ers — is revenues are on the upswing after to avoid defaulting. Townsquare believes it ASCAP pays royalties in the quarter they bottoming in April. In May, June and July, has enough liquidity for three years “even are collected; its large licensees typically iHeartMedia grew revenues 49%, 41% and if business remains at the same levels” pay 30-45 after a quarter closes, meaning 27%, respectively, and third quarter results experienced today, said CFO and executive ASCAP might not have collected second- will be “materially better” than the second vp Stuart Rosenstein during the Aug. 10 quarter royalties from some radio compa- quarter, said president, CFO and COO Rich earnings call. nies. BMI will distribute second quarter Bressler, during the earnings call. At Cumu- Counterintuitively, iHeartMedia and royalties on Jan. 15, 2021. SESAC will pay lus, July revenue was down only 32% year Cumulus, the two largest radio companies terrestrial radio royalties for April on July over year, although entertainment “is still in the US, are inadvertently engineered to 31, May on Aug. 31 and June on Sept. 30. significantly depressed,” said president and withstand the pandemic. Had the coronavi- BB_HA_ADV_LATIN FEST_2020.pdf 1 8/3/20 2:59 PM Billboard’s Latin Music Week, celebrating its 30th anniversary, is the Latin Music world’s largest gathering of dealmakers, power-players and artists. These influential figures come together for a series of curated discussions, networking, performances, and panels. The highlight of the week is Billboard’s Latin Music Awards, broadcast live on the Telemundo Network in October. Advertise in Billboard’s October 17 Latin BILLBOARD’S 10/17 ISSUE WILL Music Week Issue to congratulate this year’s honorees & finalists, Billboard’s SPOTLIGHT THE FOLLOWING: Latin Power Players, and to position your company to the key decision makers in the Latin market. • Preview Billboard’s Latin Music Week, presented as an all-digital conference featuring the top artists and executives in Latin music and Latin entertainment. ON SALE October 17 • Preview the Billboard Latin Music Awards with AD CLOSE October 7 a focus on the performers and finalists for the most prestigious awards in Latin music. MATERIALS DUE October 8 • Profile Billboard’s Spirit of Hope, Lifetime Achievement and Hall of TO ADVERTISE, CONTACT: Fame Awards recipients. MARCIA OLIVAL | 7 86.586.4901 [email protected] • Billboard’s Latin Power Players list profiling the most influential people in Latin music, from record label executives, music publishers and GENE SMITH | 9 73.452.3528 management companies to radio/television [email protected] stations and live entertainment. • The hottest and most relevant trends in JOE MAIMONE | 201.301.5933 the Latin market. [email protected] Page 5 of 23 IN BRIEF rus risen in, say, 2016, iHeartMedia would Meditation’s New data released in January.