HD RadioTM Technology Monetizing your HD Radio Channels Jeff Detweiler Executive Director, Broadcast Business Development Agenda Copyright 2017 XPERI Agenda ▪ Benefits For Stations ▪ Monetizing HD Radio Channels ▪ Specific Format Examples ▪ Summary Copyright 2017 XPERI Benefits For Stations ▪ Allows multicasting on several channels at once using the same frequency 1 Frequency = ▪ Multicasting is radio’s first “killer app” since the Analog Radio 1 Program advent of FM broadcasting 1 Frequency = ▪ Provides additional content to help bolster Multi-Program listenership and Time Spent Listening Washington Sports Radio ▪ Helps stations bracket target demo to become more Demo: Men 18-54 attractive to advertisers CBS National Sports Radio ▪ On-air platform to try new formats and fine-tune Demo: Men 18-54 programming ideas New York Sports Radio ▪ A way to extend a station’s brand and increase reach Demo: Men 18-54 and market presence Baltimore Sports Radio Demo: Men 18-54 Copyright 2017 XPERI Benefits For Stations ▪ Tune-out can become tune-over to your other HD Radio channels ▪ The creation of up to 3 more broadcast channels for you to market ▪ The chance to keep your existing listeners for longer periods ▪ The prospect of generating new listenership from a new audience ▪ The ability to convert occasional listeners to brand-loyal listeners ▪ The creation of cost-effective discrete demographic targeting ▪ “Training Wheels” to help fine-tune new formats on-air ▪ THE OPPORTUNITY TO MAKE MORE MONEY! Copyright 2017 XPERI Monetizing HD Radio Channels ▪ A wide range of hyper-targeted new formats are already on the air Copyright 2017 XPERI Monetizing HD Radio Channels ▪ Local stations are creating unique, market-specific formats Copyright 2017 XPERI Monetizing HD Radio Channels ▪ Create a salable digital radio sales package by creative use of new & existing programming ▪ Produce a format complementary to your main channel target demographic ▪ Simulcast your existing AM to balance audience delivery and create broad appeal WWFS-FM / New York Digital simulcast Adult Contemporary of analog signal Demo: Women 25-54 Targeted smooth Smooth Jazz jazz format Demo: Adults 35-64 Simulcast of All News co-owned AM station Demo: Men 25-64 Copyright 2017 XPERI Monetizing HD Radio Channels ▪ Forward-looking sports teams are migrating to HD Radio stations Copyright 2017 XPERI Agenda ▪ Benefits For Stations ▪ Monetizing HD Radio Channels ▪ Specific Format Examples ▪ Summary Copyright 2017 XPERI Comedy Format: KYGO-HD2 / Denver, CO ▪ Main marketing premises: ▪ Provide Denver a home for around-the-clock comedy ▪ Attract advertising from comedy tours appearing in local area, clubs and restaurants ▪ Generate long listening blocks as opposed to music formats ▪ Key selling propositions: ▪ Unique programming not available on any other local radio station ▪ Dedicated website for fan web promotion - Disney World is a website sponsor ▪ Viral videos used on the website to drive impressions and convert listeners ▪ Unique sales opportunity: ▪ Offer advertisers unique commercial environment Copyright 2017 XPERI Sports Format: WXDX-HD2 / Pittsburgh, PA ▪ Main marketing premises: ▪ Enthusiastic Pittsburgh Penguins hockey team support regionally across broad demographics ▪ Strong local advertiser support as part of 37 station regional network ▪ Heavy team local media coverage and viral web presence ▪ Key selling propositions: ▪ Leverage strength of team “brand” for continued product growth & to help negotiate rights ▪ Winning station bundled dedicated 24/7 HD2 for “All Penguins Hockey, All The Time” ▪ “HD is the new FM” positioning to listeners to add to the cool factor ▪ Unique sales opportunity: ▪ 4-hour music blocks featuring content of a different player’s iPod every evening Copyright 2017 XPERI Religious Format: WAWZ-HD2/HD3 / Zarepath, NJ ▪ Main marketing premises: ▪ No longer have to decide between Christian music, sermons or educational material ▪ Each channel can serve a totally different segment of the community ▪ The different demographics reached by the combination make for an attractive advertiser package ▪ Key selling propositions: ▪ Main channel targets Adults 25-54 with family-friendly music & personalities ▪ HD2 channel is geared to Adults 35+ carrying Christian talk and teaching programs ▪ HD3 channel reaches Adults 18-34 with Christian rock, pop, hip hop and R&B ▪ Unique sales opportunity: ▪ The ability to call on virtually any advertiser and deliver their customers Copyright 2017 XPERI Religious Format: WAWZ-HD2/HD3 / Zarepath, NJ ▪ Main marketing premises: ▪ No longer have to decide between Christian music, sermons or educational material ▪ Each channel can serve a totally different segment of the community ▪ The different demographics reached by the combination make for an attractive advertiser package ▪ Key selling propositions: ▪ Main channel targets Adults 25-54 with family-friendly music & personalities ▪ HD2 channel is geared to Adults 35+ carrying Christian talk and teaching programs ▪ HD3 channel reaches Adults 18-34 with Christian rock, pop, hip hop and R&B ▪ Unique sales opportunity: ▪ The ability to call on virtually any advertiser and deliver their customers Copyright 2017 XPERI New Music Format: WSTW-HD2 / Wilmington, DE Copyright 2017 XPERI 3rd Party Leases: DaNu Radio ▪ Main marketing premises: ▪ Programmer wanted high-profile 24/7 service to cover New York, Philadelphia and Miami ▪ Huge, well-educated & affluent Russian-speaking population in key metropolitan areas ▪ Opportunity to market their well-heeled audience outside strictly Russian advertisers ▪ Key selling propositions: ▪ Approached local HD2 stations with straight cash lease deal ▪ Programming a mix of talk, music & news appealing to advertisers ▪ Geared to appeal to both First and Second-generation Russian consumers ▪ Unique sales opportunity: ▪ Were able to negotiate iHeartRadio web channel as part of their lease Copyright 2017 XPERI Niche Format: KNDE-HD2/HD3 / College Station, TX Copyright 2017 XPERI Heavy Metal: KISW-HD2 / Seattle, WA ▪ Main marketing premises: ▪ Program a hard-rocking radio station that filled a specific programming gap in the market ▪ Station was initially launched 100% interruption-free to quickly build audience ▪ Create channel that supplements their main channel target demographic ▪ Key selling propositions: ▪ Recorded drops from metal bands used on-air to build “hip” image for advertisers ▪ Live broadcasts from local clubs created exclusive sales opportunities ▪ Social media promotion/engagement delivered value-added element to spots ▪ Unique sales opportunity: ▪ Branded promotional items tied advertiser & station logos together Copyright 2017 XPERI Agenda ▪ Benefits For Stations ▪ Monetizing HD Radio Channels ▪ Specific Format Examples ▪ Summary Copyright 2017 XPERI Summary ▪ What do all these stations have in common? ▪ All viewed the technology as creating new sales opportunities ▪ All treated their HD2 / HD3 channels as additional radio stations to program and promote ▪ All targeted their programming to fill niche in market currently unserved or under-served ▪ All were willing to “seed” the marketplace with receivers for key potential advertisers ▪ All created additional sales incentives for their salespeople selling HD2 / HD3 sales packages ▪ All emphasized that sales and programming needed to support these additional channels and . ▪ None just “threw in” these HD2 / HD3 commercials at no charge with main channel buys Copyright 2017 XPERI Summary ▪ WhatTo do all these Your stations have in common? Customer, Your ▪ All viewed the technology as creating new sales opportunities ▪ All treated their HD2 / HD3 channels as additional radio stations to program and promote Product’s▪ All targeted their programming to fill Valueniche in market currently unservedIs orDirectly under-served ▪ All were willing to “seed” the marketplace with receivers for key potential advertisers ▪ All created additional sales incentives for their salespeople selling HD2 / HD3 sales packages Proportional▪ All emphasized that sales and programming needed Toto support theseWhat additional channels You and . ▪ None just “threw in”Charge these HD2 / HD3 commercials atFor no charge with It! main channel buys Summary ▪ HD Radio Technology . ▪ . Provides enhanced audio quality for both AM and FM ▪ . Provides additional new business opportunities ▪ . Provides new marketplace growth possibilities ▪ . Provides potential current and future new revenue sources ▪ . Provides unlimited ways to target and deliver new audiences ▪ . Provides natural line extensions for your station’s brand ▪ . Provides growth path for smaller advertisers Copyright 2017 XPERI Copyright 2017 XPERI.