Weekly News Recap April 9-13, 2018 With New Tech, Opportunities Alongside radio’s “unfair advantage,” the thing it does in a “uniquely differentiated way” Challenges. that it wants to “build a moat around” A wave of nonstop change continues to the other but incremental listening.” to protect. For Entercom, that’s scaling roll through the radio industry, as new NAB executive VP, Strategic Planning “great local programming,” Murphy technologies bring new opportunities Steve Newberry added that the devices explained, something none of the and big decisions. With a bevy of have become “a new replacement for big platform companies like Google, shiny objects and vendors vying for radio in the home.” Amazon and Facebook have done. “We their attention, industry leaders have have to make sure our programming to place their bets on what will be Entercom senior VP, Corporate Business continues to connect with people and Development we have to control the distribution. We Tim Murphy took can’t hand it over to others.” a broader view, noting that smart For Newberry, who also owns small speakers and other market radio company Commonwealth new technologies Broadcasting, radio’s “unfair are leading to an advantage” is its ability to connect explosion in overall with local communities. Hendrich said audio listening. “If that Cox radio research consistently you’re a company shows that what listeners value most that creates audio, about radio is its ability to connect them technology is with the artists and personalities they enabling a gold rush,” love. While the industry is rife with new Murphy said. opportunities, the panel didn’t shy away from discussing some of the challenges Voice recognition they face as industry leaders tasked and big data were with making important decisions that also on Cox Media can have long-term impact on their Group executive VP business, its employees and the future Bill Hendrich’s top of the industry itself. tomorrow’s game changer – or just a tech list. But tapping the smart speaker flash in the pan. A group of radio execs opportunity requires some heavy lifting, offered their vision for radio’s future – he observed. “We have to educate what thrills them and what frightens listeners on how to get our stations,” them –at the NAB Show in Las Vegas. Hendrich said. “That’s the biggest game changer in years.” Moderator Fred Jacobs got the ball rolling by asking the panel what At the same time, big data will help radio excites them among all the new tech. create better programming and grow “The decisions we’re making today will All pointed to voice-activated smart ad sales, the panel agreed. “It’s a new impact what we’re doing 5-10 years speakers, which are now in 20% of Wi- world, we just have to take advantage from now,” Beasley said. In his new post Fi-enabled homes. Big data was next, of it,” Beasley said. at the NAB, Newberry said his biggest as one of the convention’s big buzz challenge is helping the industry find phrases. Since launching its Alexa All of this dizzying change is, in fact, collaborative solutions as opposed to strategy two months ago, Beasley prompting broadcasters to reimagine an “everyman for himself” competitive Media Group CEO Caroline Beasley what business they’re in, Murphy said. approach. He asked, “How do we all told session attendees that her “We have to broaden how we view the come together to think universally about company has seen increased listening, marketplace and who we’re competing what is good for the industry?” “not just moving from one platform to with. That requires deciding what is

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Ajit Pai Proposes Changes to Translator Interference Rules. FCC chairman Ajit Pai made some news at the NAB Show, announcing that he’s circulated a proposal among his fellow commissioners to update the agency’s rules on translator interference. The proposed rulemaking would allow FM translators to resolve interference issues by moving to any available frequency,and require a minimum number of complaints to support any interference claim. “The goal is to simplify and expedite the complaint process,” Pai said. The chairman was greeted with frequent applause during a speech that was peppered with jokes and with stories about his recent visits to radio and TV stations. “It’s always great to be with broadcasters,” Pai said. “Or perhaps I should say, it’s great to always be with broadcasters.” Pai walked the audience through FCC rule changes enacted under his purview, like Digital Experts Share Smart Device Strategies. ending the newspaper-broadcast cross-ownership ban and Smart devices, voice-activated speakers and mobile apps scrapping the “main studio” rule. “When you look at all of our are unlocking newfound potential to connect with radio media decisions together, the larger picture becomes clear: audiences. The challenge now for broadcasters is trying to We are simply allowing any and every broadcaster the ability keep up with these rapidly evolving platforms. Steve Meyers, to compete in a free market, unshackled by regulations that Executive VP of Digital for Beasley, explained that his no longer make sense,” he said. company has made the leap to a new mobile app platform for each of the company’s 63 stations, with a focus on Walden Has Praise and Tough Love for Broadcasters. next-generation features. Recognizing that more than 70% In a “Fireside Chat” with NAB president Gordon Smith Rep. of its audience interacts with Beasley stations via mobile Greg Walden (R-OR) acknowledged the crucial public safety devices—and then finding that 25% of its audience sessions role broadcasters play – while also offering some tough were focused on live streaming, with the other 75% on other love for the industry. “You can reach people when there’s digital content—the company refocused on creating targeted no other way to reach them” with essential information that and more personalized content. That includes 93 new pieces “saves lives, the chairman of the powerful House Energy of digital content each day. “With FM, we were pushing one and Commerce Committee said. Walden sees evolving stream of content. Digital opens this whole new ability for us connected car technology to provide different opportunities and different methods of as both a challenge engagement for our brands,” Meyers said at the NAB Show. and an opportunity for Hubbard’s walk on the wild side comprises 25 responsive web broadcasters. “At some players that scale to any screen, desktop, tablet and/or mobile point, in completely device, 28 Alexa skills, three Flash Briefings skills and 24 autonomous vehicles, IOS/24 Android mobile apps. “You cannot behave like a radio the front seat will become company anymore. You have to act like a digital company,” the back seat and you’re said Jeremy Sinon, VP Digital Strategy for Hubbard. going to have to figure out as an industry, and NAB Show Explores Intersection Of Big Data & Radio with new technologies, Measurement. how you remain in the Radio put Nielsen on the hot seat as a NAB Show panel dashboard and maybe in every seat in that vehicle because of research execs grilled the ratings giant about what it’s things are changing,” Walden said. He also urged broadcasters doing to improve audience measurement in a world where to do more to educate lawmakers about their industry. “It’s really big data is increasingly essential. iHeartMedia executive VP important for you to not presume that members of Congress Michele Madansky chastised Nielsen for using a PPM device making decisions about your future understand your business,” that “looks like a 1970s pager,” while the industry anxiously he said. As his committee tackles important issues that affect awaits the rollout of new wearable meters in 2020. And in radio, Walden freely admits that growing and he urged Apple the 200+ diary markets, Madansky questioned why Nielsen to join other handset manufacturers and activate the FM chip wouldn’t deploy “an app, a website, anything to just make it in cell phones. “This is a no brainer. They ought to be doing easy for people” to enter what they’re listening to. Nielsen this,” he said. VP of Product Leadership Rob Kass said representative PPM panels and ratings diaries will remain “core” to its methodology comScore: Smart Speakers Now In 18.7 Million U.S. as a “source of truth” to offset the bias inherent in big data. Homes. “We’re cautiously looking at ways we can bring in new sources The latest data from comScore shows smart speaker of data,” he said. Nielsen may be sitting on a treasure trove penetration has reached 20% of U.S. Wi-Fi enabled homes. of big data, following its acquisition of Gracenote, according This is an increase of 50% in just three months bringing the to Cumulus Media VP Dr. Ed Cohen. “That may be the set- total to 18.7 million U.S. homes that are using a smart speaker. top box for big data in radio,” said Cohen, a former Arbitron Lower price points and a larger variety of smart speakers executive. served as fuel for the increase. Smith: Investing In Innovation Crucial To Long-Term Weekly News Recap Growth. April 9-13, 2018 NAB president Gordon Smith got the NAB Show in Las Vegas underway on an upbeat note with a salute to broadcasting’s In times of crisis, people turn to their local broadcasters for past and a peek into its future. To succeed in the uncharted information. We have the ability to help save lives, and to bring territory of tomorrow requires “investing in the innovation a feeling of normalcy in the face of chaos.” that is crucial to our long-term growth,” he said, while also recognizing – and adapting to – changing media consumption Sales Pros Adapt To Evolution – Shrewdly, Fearlessly. habits. On the drawing board for radio are initiatives that would Ask radio leaders and top-performing station salespeople how not only enhance radio’s relevance in the car but could also they deal about persistent change in the advertising industry, give broadcasters new uses for their broadcast spectrum. The and it sounds like this: “Get comfortable being uncomfortable.” trade group is working with radio’s largest groups “to improve During the NAB Show session “Radio: From The Streets and the presence, appearance and overall positioning of radio on The C-Suite,” Meaghan Clark, an Account Executive with the car dashboard,” Smith said. Univision Radio San Diego shared that eye-opening takeaway, where panelists agreed that the disruption surrounding digital, NAB Offers Peek at Radio’s Place In Next Gen social and new platforms, in fact, offers new opportunities for Dashboard. broadcasters. Bill Hendrich, Executive VP of Cox Media Group, NAB VP of Advanced Engineering David Layer presented added that the art of selling is now the science of selling. “Adapt an overview of what’s on the horizon for radio in the digital your business style to what’s happening today. I used to say dashboard as the trade group and other industry stakeholders it’s not rocket science. Now it is rocket science.” collaborate with automakers on new technologies. NAB engineers have so far participated in four hackathons with app ‘Radio Engage’ Encourages Digital, Effective Messaging. developers at Ford and GM with an eye toward developing For any broadcaster who may not yet believe digital is an essential apps that include the broadcast signal rather than just relying component for over-the-air advertisers, take it from Michael Reath, on the station stream. The two industries are collaborating to president of Off Road Media Group, in the NAB Show session bring audio guides into the dashboard, along with the ability to “Radio Engage”: “We would be in the negative in the last five years view “now playing” info – even before selecting a station. “We’re if not for digital.” A case in point: Stalwart advertiser Porter Auto trying to show carmakers that radio apps can be interesting,” Group’s contract shrank, from $24,000 to $8,000 a year, “because Layer said, while also ensuring that automakers develop apps the sales rep wasn’t ready to sell digital.” Fast forward from 2016 that support the concept of hybrid radio, which is gaining steam to 2017: With the engagement of digital into the mix, the client as a global effort. dedicated $105,000 to the station. “By selling digital with traditional advertising and entering the universe of mobile it was obvious—if Smart Speakers: You’ve Got Your Alexa Skill In Place. we weren’t putting our advertisers on this device, someone else Now What? would,” Reath says. “Radio plus mobile is peanut butter and jelly.” The rapid penetration of smart speakers in the home is among the most riveting developments for traditional broadcasters. SiriusXM Launches ‘Coachella Radio’ Developing proprietary skills is just the beginning: Discerning For the fourth year, SiriusXM will be the exclusive radio broad- how listeners want to engage with caster for the Coachella Valley Music and Arts Festival. “Coachella your brand is the crucial second Radio” will feature artists who will be performing at Coachella 2018 step, covered during the NAB Show leading up to the festival, and then air live performances, artist session “Radio Comes Home.” interviews, news and information from the two-weekend event. In Amazon Echo’s overall “persona” is addition to “Coachella Radio,” select performances will also air on regarded as a media consumption other SiriusXM channels, including “Alt Nation,” “The Spectrum,” tool, which includes one of its most “SiriusXMU,” “Hip Hop Nation” and “The Heat.” popular skills, playing music and in particular, AM/FM radio. For broadcasters, this is nothing but a positive. An audio stream is a given; now stations should consider a local “Flash Briefing” with news in their markets and snippet replays of beloved morning shows. The key, said Bob Kernen, COO of jācapps, who led the NAB session: “Identify what makes your on-air brand unique as you develop your Alexa skills.”

Las Vegas Mass Shooting Showcased Media’s Innate Importance. When a gunman opened fire on Oct. 1 at the Route 91 Harvest music festival in Las Vegas, the media was there to provide essential information—for the community and the world. As broadcasters provided wall-to-wall coverage and provided insight and answers to viewers and listeners, the entire nation witnessed the spirit of radio and television. During the NAB Show session, “Crisis on the Strip: Reporting in an Unfolding Emergency,” FCC Commissioner Brendan Carr told attendees, “The Las Vegas shootings gave us a chance to highlight the essential ways that broadcasters serve their communities.

Page 3 SALES – STATIONS Weekly News Recap March 12-16, 2018 Tri-Cities & Yakima, WA – Stephens Media Group strikes a $10.725million deal to buy a dozen full- Michigan – John Yob’s Mitten News files a $275,000 deal to power stations and two FM translators buy talk WWMN, Thompsonville, MI (106.3) from Todd Mohr’s from the Ingstad family in the Tri-Cities, Mitten Media. Mitten News already owns talk WJNL (1210) WA (market No. 179) and Yakima, WA and the Petoskey, MI-licensed translator W266CS at 101.1 (market No. 198) markets. In the Tri- FM in the Traverse City-Petoskey-Cadillac, MI market. Mitten Cities, WA market it buys AC “95.7 More News will operate WWMN under a local marketing agreement FM” KKSR, country “94.9 The Wolf” until closing. The station has begun to simulcat WJNL. KIOK, CHR “Power 99.1” KUJ-FM, 80s hits “Big 106.1” KALE, classic rock “Eagle 106.5” KEGX, sports “1340 ESPN Radio” Lexington-Fayette, KY – Somersot Educational Broadcasting KJOX. The cluster also includes the Richland, WA-licensed Foundation files a $270,000 deal to buy contemporary K291BS at 106.1 FM which simulcasts KALE. In the Yakima, Christian “The Wind” WPTJ (90.7) from Lay Outreach WA market it buys “New Country 104.1” KXDD, rhythmic CHR Witness. The contract says $25,000 of the purchase price is “Hot 99.7” KHHK, classic hits KARY-FM (100.9), classic rock attributed to the sale of the tower site. “105.7 The Hawk” KRSE, sports “1390 The Fan” KBBO, and Spanish-language sports “ESPN Deportes 980” KTCR. The Tennessee – Peter Bowman files a $55,000 deal to buy “Cat cluster also includes the Wapato, WA-licensed K283BX at Country” WHMT, Tullahoma, TN (740) from Russell Leonard’s 104.5 FM which simulcasts KBBO. Stephens Media Group GRA Communications. The deal also includes two translators: will operate the stations under a local marketing agreement the Tullahoma, TN-translator W286BG at 105.1 FM and the until closing. Broker: MVP Capital Manchester, TN-licensed W236DG at 95.1 FM. Bowman Broadcasting already owns AC “93.9 The Duck” WDUC and Iowa – The University of Northwestern-St. Paul files a $1.25 hot AC “Rooster Radio 101.5” WFTZ in the region. Once million deal to buy AC/classic rock KSDN-FM (107.1) and the sale closes GRA Communications will still own the “Cat country/farm KSDN (1530) from Michael Dudding’s Mikadety Country” daytime-only simulcast WSLV (1110) in the area. Radio. The University of Northwestern-St. Paul already owns 42 licenses of which 18 are full-power stations in the Midwest STATION CLOSINGS: and Connecticut. Broker: Kali Cola Wars Hit Full Force With Georgia – Radio Training Network expands its presence in Pepsi, Coke Vying On Radio. Georgia as it closes a $600,000 deal to buy contemporary Illinois & Indiana – Tim Milner files a deal to create a new Christian “The Reach 88.9” WMSL Athens from Prince ownership group that will own five stations south of Chicago. Educational Media. Radio Training Network owns more than The newly-created Milner Media Partners includes former 30 stations, most of which air its “Joy FM” contemporary Triad Broadcasting CEO David Benjamin (33% stake), former Christian format. Noncommercial WSML was Prince KGO San Francisco general manager Mickey Luckoff (32% Educational Media’s only radio station. stake), Robby Markose’s R2 Investments (33% stake)—with Milner retaining a 2% interest in the group. The stations Hawaii – Larry Fuss-led Kauai Broadcast Partners closes an include CHR WFAV (95.1) and oldies “92.7 The Valley” $180,000 deal to buy KZZV, Hanapepe, HI (94.3) from Maurice WVLI in Kankakee, IL; and the “River Country” simulcast of Vargas’ Virtues Communications Network. The station is WIVR, Kentland, IN (101.7) and WYUR, Gilman, IL (103.7). currently off the air. Virtues Communications Network still Also included in the deal is the Bourbonnais, IL-licensed owns the currently-silent KJVV (101.9) in the Victor Valley, translator W241BS at 96.1 FM that relays WVLI. According CA market. to the filing the purchase price will be an amount equal to 5.374-times the adjusted net operating income generated Oregon – Roger Morgan and Jim Deatherage’s Coos Radio during a measurement period that runs April 1, 2017 through closes a $100,000 deal to buy oldies “The Legend 105.9” March 31, 2018. The exact purchase price will be adjusted in KLJN, Coos Bay, OR from Lighthouse Radio Group. The the weeks to come, but a clue indicating how much it’ll total deal includes a $65,000 promissory note. Lighthouse Radio comes in the form of how much Milner Media Partners has Group still owns contemporary Christian “98.7 K-Light” KYTT- put up as a deposit: $345,000. Brokers: Bob Heymann and FM in Coos Bay. George Reed, Media Services Group Riverside-San Bernardino, CA – James Su’s EDI Media Minnesota – Real Presence Radio files a $450,000 deal closes a deal to buy ethnic brokered KWRM (1370) from to buy classic country KQAQ, Austin, MN (970) from Greg Richard Vosper’s Major Market Stations for one dollar plus Jenson’s Hometown Broadcasting. Real Presence Radio expenses including any taxes owed by the station. The has other stations in the region but KQAQ will become its filing shows Su currently holds a 2% stake in Major Market first in southern Minnesota. It plans to flip the station to a Stations. KWRM is EDI Media’s first station in the market noncommercial religious format. Once the sale closes although it owns two stations in the northern California city of Hometown Broadcasting will still own classic rock “Power 96” Alturas: country KCNO (94.5) and variety KCFJ (570). Major KQPR, Alert Lea, MN. Market Stations has a pending deal to sell its final station, the currently-silent KWRN (1550) in the Victor Valley, CA market, Pennsylvania – Kristin Cantrell’s Seven Mountains Media to Lazer Broadcasting. files a $335,000 deal to buy AC “Yes FM” WVYS, Ridgebury, PA (96.9) from Geos Communications. The deal also includes Tennessee – Bible Believers Network closes on its donation the Ulster, PA-licensed translator W297BG at 107.3 FM. of the gospel/religious “New Life” trimulcast of WCLC-FM The filing shows $50,000 of the purchase price is attributed (105.1) and WCLC (1260) in Jamestown, TN and WGSN, to a five-year non-compete clause. Seven Mounts Media Newport, TN (90.7) to New Life Studios. currently owns 23 other stations in central Pennsylvania but WVYS serves an area along the New York border that none Other station and Translator sales HERE. of its other stations covers.

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