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Tuesday, August 21, 2012
THE MOST TRUSTED NEWS IN RADIO
Storm clouds gather as music industry attempts to link streaming royalties to an on-air fee. After two previous
attempts in the past six years to win a performance royalty on radio stations proved unsuccessful, the music industry is
laying the groundwork for a new strategy. It looks to tie on-air to streaming royalties as well as an effort by some lawmakers
to address growing complaints that different digital platforms are paying vastly different fees. The first concrete evidence
of the new strategy comes in a draft bill that Rep. Jerrold Nadler (D-NY) released yesterday. Using language that appears
strikingly similar to what the musicFirst Coalition has used in the past, Nadler’s bill would direct the Copyright Royalty Board
to take into account that broadcast stations don’t pay an on-air performance royalty when it sets a fee for radio’s online
simulcasts. The strategy goes like this: if the record labels can’t get it from an on-air performance fee, the bill would allow
them to make up the gap with steeper online royalties for radio than its pureplay digital rivals pay. Nadler says the fact that
radio doesn’t pay anything for on-air is “a significant inequity and grossly unfair.” The National Association of Broadcasters
says his bill fails to recognize the promotional value that local radio airplay gives musicians. “We continue to support private,
company-by-company negotiations that are driven by the free market,” spokesman Dennis Wharton says, pointing to the
recent unprecedented deal between Clear Channel and Big Machine Label Group.
Proposed royalty bill positions the issue for Congress to take up in January. To the music industry, tying webcast
royalties to on-air fees is a pivot, but certainly not a retreat. “This is an issue of fundamental economic justice that will not
go away,” musicFirst executive director Ted Kalo says, reacting to draft legislation proposed by Rep. Jerrold Nadler (D-NY).
“The only real solution is for Congress to create a legal performance right, but raising terrestrial radio’s digital royalties is an
important interim step towards that goal.” At the urging of Pandora, Nadler’s bill would also create a “technology neutral” rate
so Sirius XM Radio and cable providers like Music Choice would pay the same as internet-only services. With Congress in
recess until next month and few working days left on the legislative calendar, Nadler’s bill is clearly positioning for the session
beginning in January. Republicans are expected to hold the House and while Nadler’s bill isn’t likely to get far, some GOP
lawmakers such as Rep. Jason Chaffetz (R-UT) have said they’re open to looking at creating parity among the variety of
digital platforms. Regardless of whether that effort gets far, Nadler’s draft also suggests that
news INSIDE >>
even if Congress takes no action, the radio industry will face a contentious negotiation with
SoundExchange when the current streaming royalty deal expires at the end of 2015.
>>Arbitron
making
Cumulus tees up new division to improve spot creative. Cumulus Media is building a
web ratings progress
reservoir of radio campaigns that reaped results for clients in the past with a goal of improving
spot creative in the future. During its second quarter earnings call earlier this month, CEO
Lew Dickey told investors the company is investing in production and imaging to make stations sound better. Now it’s formed
Cumulus Sound Solutions to serve as a commercial creative resource center, headed up by veteran producer-writer-voice
talent Robin Marshall as production manager. Like Clear Channel has done with its Creative Services Group, Cumulus will
capture, catalogue and make available on a company intranet what EVP/co-COO Jon Pinch calls “the best of the best” in ad
creative across 60 different ad categories. “What works for a chiropractor in Oxnard may also work in Tallahassee,” he tells
Inside Radio. The initiative is intended to help Cumulus sellers, producers and advertisers and to attract new clients. Rather
than starting from scratch, account execs and production directors can access and search an online library of catalogued
creative deemed successful in other markets and adapt it to a local client’s needs. “We’re taking advantage of our scale
with hundreds of production people and sellers that have come up with creative ideas and had success with them,” Pinch
says. Step two of the effort will be to use the Dallas-based resource center to cut spec spots and actual campaigns to
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NEWS
Tuesday, August 21, 2012
attract large national advertisers to Cumulus stations and its radio network. “If Pizza Hut is not currently a radio advertiser,
that’s a challenge we give to our Sound Solutions people and task them with developing a campaign that can bring pizza to
life using radio,” Pinch says. “Improving radio’s creative can only be good for the industry.”
Arbitron’s making “significant progress” on reaching a webcast ratings consensus. It turns out building the back end
of a webcast ratings system was the easy part. Arbitron has largely completed all the needed steps to launch a service that
would measure streaming listeners. The hard part’s been forging an industry consensus, but that too is showing forward
movement. EVP/COO Sean Creamer says the process has required “a significant but evolving set of conversations” with
broadcasters. “I think there’s some significant progress being made in reaching a level of consensus in what that service
might look and feel like,” he told an investor conference last week in Boston. Based on discussion the ratings company’s had
with broadcasters, advertisers and ad agencies, the thinking is what’s needed is a single number that combines both people
meter or diary-based over-the-air ratings with streaming server data collected from log files. “We’ve built an infrastructure
already that would process them and ultimately integrate them into the over-the-air numbers,” Creamer says. To block the
ratings from debuting, some companies have so far declined to share that data with Arbitron — which has so far not publicly
identified the holdouts. Katz360 president Brian Benedik thinks the lack of a single measurement remains a hindrance in the
effort to sell advertisers in-stream audio spots. “Until a universal offline/online audio metric is introduced that can capture this
combined audience, it might be a challenge to present to advertisers,” he says. But some companies remain worried about
how the data will be used in local and national ratings reports. Arbitron is pulling broadcasters along with the incentive that
the radio industry isn’t currently getting full credit for its multiplatform audience. Creamer says that’s even more critical as
pureplays like Pandora continue to gain share. “There’s competition in that space and I think [broadcasters] need to stake
a claim to that space,” he said.
National EAS test results are in — just don’t expect to find out how radio did. The FCC
Homeland Security Bureau and the Federal Emergency Management Agency have submitted
the result of last November’s first-ever national EAS test to the Government Accountability Office.
The GAO is now reviewing the results to “address any weaknesses in the EAS identified by
the test.” But it’s going to be difficult for broadcasters to assess their performance. The FCC
and FEMA are treating the EAS test as a matter of national security, declining to make the
results public and releasing the data only to the White House, the GAO and the National Weather Service, as well as to state
government emergency management agencies. The FCC Homeland Security Bureau received about 16,000 filings related
to the test — which wasn’t without its glitches. FEMA has characterized the problems with that activation as a “technical
malfunction” and not a “systemic failure.” As Inside Radio first reported in June, no new national EAS test is planned for
2012. The FCC and FEMA have concluded it’s better to review all of the findings and make adjustments first. “We want to
do it in the future but at this time we would rather see some mitigation — some fixes go into the national EAS at all levels —
before planning a test,” FEMA IPAWS program manager Manny Centeno said.
Continuing to press for FM-enabled handsets, NAB positions radio as “first informers” during emergencies. The
June 29th “derecho” storm sent 4.2 million homes across 11 states and the District of Columbia into darkness, leaving some
without electricity or cell phone service for more than a week. As the FCC’s Public Safety and Homeland Security Bureau
investigates how the wireless industry responded, the National Association of Broadcasters says it demonstrates the need
for FM in cell phones calls radio stations “first informers” during disasters and emergencies. NAB says it’s not looking for a
federal mandate that forces wireless operators to incorporate and activate radios chips in mobile devices. But it says given
the FCC’s interest in promoting competition and public safety, it should “consider ways to encourage the wireless industry
to provide improved online and retail information so as to allow consumers to identify mobile devices that include free, over-
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Tuesday, August 21, 2012
the-air radio.” NAB says the wireless industry has put FM into a few of their least popular handsets. And it notes Verizon
and AT&T allow shoppers to scan their website for a variety of features, but neither lets customers narrow their search
results based on having FM capability. The Telecommunications Industry Association and CTIA-The Wireless Association
say the derecho was an “extraordinary” event and neither directly addresses broadcaster efforts to get FM chips into cell
phones. But they tell the FCC no new regulations are needed, instead urging a “flexible” approach. “It would be unwise for
the Commission to impose any ‘one-size-fits-all’ procedures on wireless carriers,” CTIA tells the FCC. Syracuse University
professor of communications law and policy Patricia Longstaff offers the cell industry some cover. “Many small communities
have lost their broadcast radio service in the last few years, and even if they have a station it will almost certainly not have
a local news capability,” she tells the FCC. But the NAB points out that from Hurricane Katrina, to the 2011 Joplin tornados
to the derecho storm, broadcasters have time and again shown they have generators and other backup systems, as well
as the staff, to keep the public informed. For more than a day after the storm, NAB points out that one-third of T-Mobile
subscribers in the Washington, DC area still lacked service, and for three days after the storm, 750,000 people still lacked
power. “Compare this to the area’s radio stations, which coordinated the delivery of local all-news programming and provided
‘wall-to-wall’ coverage as events unfolded, foregoing commercial breaks to provide uninterrupted news and information to
local residents,” it tells the FCC.
A time buy and a handful of morning show appearances are part of Obama’s radio strategy. With
the Republican Convention set for next week in Tampa, the 2012 presidential campaign is heating up
on radio. The Obama campaign has announced it will use radio’s ability to tailor copy from market to
market with a new series of radio spots that will hit GOP presumptive nominee Mitt Romney on a variety
of issue that will vary across seven battle group states. For instance radio spots in Iowa will target energy
policy while in Nevada the ads will talk about housing. Word is the ads will sound like a traffic report.
No word on a budget for the Obama radio blitz. The price is clear on the Obama camp’s other radio
maneuver. Former White House Press Secretary Robert Gibbs told Fox News Sunday that appearing
on drive time radio shows for casual chats about sports, music and just a hint of politics is part of its media strategy. Gibbs
said so far in August the President has done 11 local radio shows. The Romney campaign hasn’t spent as much on radio
so far — but its super PAC announced in late-July it was placing $1 million in radio spot buys in seven must-win states. Wells
Fargo Securities analyst Marci Ryvicker calculates radio will get $256 million in political spending in 2012, down from the
$272 million it received during the 2010 campaign.
Inside Radio News Ticker…VW expands Sirius XM deal…Drivers who pull off a Volkswagen dealer lot with a used car will
have three months of free Sirius XM Radio. VW says the new offer applies to cars equipped with factory-installed satellite
radios, regardless of manufacturer. Volkswagen GM Scott Weitzman says the subscription is a “core pillar” of a new preowned vehicle program that will launch in October. Not all dealers are participating but Sirius XM SVP Joe Verbrugge says
the list continues to grow…Geico stays on top…The three biggest-volume national radio advertisers remained the same
last week, according to Media Monitors, which puts Geico on top of the weekly top 10, followed by Safelite AutoGlass and
Wal-Mart. O’Reilly Auto Parts (#5) and AutoZone (#8) also continue to use radio to battle over the auto parts retail market…
Predators sink teeth into Cromwell…The Nashville Predators will remain on Cromwell Radio Group’s sports “102.5 The
Game” WPRT-FM for another five years under a new contract that extends to the 2016-2017 season. Former Preds enforcer
Stu Grimson rejoins the broadcast team as color analyst, joining play-by-play announcer Tom Callahan. This will be Grimson’s
first full-time season as a member of the Preds broadcast team. Willy Daunic remains the host of the pre- and post-game
shows. WPRT-FM has been the home of Predators hockey since 2010...People Moves...New programmers in Atlanta and
Orlando. Read People Moves HERE.
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Tuesday, August 21, 2012
After nearly two years of podcasting, Heidi & Frank return to radio on L.A.’s KLOS.
With one member of the Mark & Brian Show leaving for a life of leisure and the other
splitting for a new podcast venture, Cumulus Media classic rocker KLOS, Los Angeles
(95.5) is turning to a podcast duo with Southern California radio experience to fill its
morning drive opening. Moving quickly after Friday’s surprise on-air announcement
by Brian Phelps that he had ended negotiations with Cumulus, KLOS has hired the
Heidi and Frank show. Frank Kramer has been around the L.A. radio dial in various
combinations, including “the Jamie, Frosty & Frank Show” on former modern AC “Star
98.7” KYSR and “Frosty, Heidi & Frank” on defunct talker KSLX. The latter show also
appeared on “Talk Radio 790” KABC, Los Angeles for one year. Since 2010, Hollywoodbased Kramer and Heidi Hamilton have produced a live, 10a-noon subscription-based
webcast as “the Heidi & Frank show.” Ironically the web is where Phelps ultimately decided to head after his on-air partner
Mark Thompson revealed plans to leave what was the longest-running morning show in the L.A. market. Phelps said on-air
Friday he was attracted to the “freedom” the on-demand format would give in terms of content and scheduling. He’ll launch
a podcast with actress Jill Whelan, who previously hosted a show on “Talk Radio 1210” WPHT, Philadelphia. No launch date
has been set. Phelps had previously said he was hoping he could do a show on KLOS with Whelan but that prospect faded
as negotiations dragged on. “After a long and thoughtful search which overwhelmed us with great, established talent and new
talent waiting to be discovered both in and out of radio, I couldn’t be more pleased with the selection of the Heidi and Frank
show to continue on the tradition that Mark and Brian set in place with 25 years of Hall of Fame radio,” Cumulus Media EVP/
co-COO John Dickey says. Kramer says “only a station as large and iconic as KLOS could lure us back to radio.”
Fantasy describes Dan Patrick’s latest brand extension. Fantasy sports is a growing market and DirecTV sports radio
personality Dan Patrick is looking to get a piece of it. He’s created his own online sports game, Cover5. Patrick says unlike
most other fantasy sports leagues, his game won’t require the huge time commitment players often feel they need to do in
the required research. “Sports fans deserve a game that actually feels like a game, not a never-ending chore,” Patrick says.
How complicated is it? The press release describing the trouble with fantasy sports took about 200 words to just state the
problem. The multisport fantasy game has been in beta-testing for several months. Patrick and his partners have so far
reportedly raised about $500,000 to launch the site, which will make money from selling special features to users as well as
encouraging companies to sponsor teams similar to how bars and restaurants sponsor real-world softball leagues. About
30 million Americans played fantasy football during the 2011 NFL season — and it is estimated the fantasy sports industry
produces an estimated $800 million in profits a year.
Inside Radio’s Deal Digest —
Houston — Gow Communications will begin operating sports “97.5 The Ticket” KFNC, Houston under a local marketing
agreement starting September 1 as the deal with Larry Patrick-run Oxford Radio has been finalized. David Gow will pay
$5.05 million for the station. He plans to continue its mix of local and ESPN Radio programming. Brokers: Larry Patrick and
Greg Guy of Patrick Communications
Arkansas — Steven and Alice Kiefer file to buy gospel KCGS, Marshall (960) from Southland Broadcasting for $150,000.
The Kiefer’s do not own any other stations.
Correction: A follow-up to a story in Monday’s Inside Radio: If or when Tribune does sell “Radio 720” WGN, Chicago as
part of its restructuring, it’s not likely to do a separate land deal for its sizable transmitter site. That’s because the 50-acre
parcel is designed to house both the main and auxiliary towers. What extra land there is there is protected wetland — not
something that’s likely to attract real estate developers.
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MEDIABASE
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Tuesday, August 21, 2012
PAGE 5
CLASSIFIEDS
MEMPHIS GSM OPPORTUNITY
Grow your career and earnings at REBEL 95.3, the top country station
in North Mississippi now boasting a strong new signal throughout
the Memphis Metro. Our second station, a Memphis market AM/FM
combo, will launch soon. To be considered, you must have a successful
record of radio sales and sales management in midsize markets and
be able to thrive working independently without the bureaucracy and
creative limitations of a large group owner. You also
must lead by example and enjoy personal selling in
tandem with being an effective motivator, trainer
and professional manager. Required personal
attributes include integrity, honesty, strong work
ethic and positive mental attitude. Must have
demonstrated a thorough understanding of how
to sell without ratings information, how to create
and sell NTR events and how to plan and execute
successful promotions. Although not required, the ideal candidate
would have a college degree, business and/or personal ties to the
Memphis/North Mississippi area, and have previous successful sales/
sales management experience in new media. Attractive compensation
package includes base salary, industry leading commissions on
personal sales, and quarterly bonuses based on group station sales.
Full benefits package including medical and 401k, plus opportunity to
grow with the company in the future.
Immediate opening. Station sales are growing dramatically so
professional sales management expertise is required now. E.O.E.
Please send detailed resume including earnings history and references
in confidence to CEO at Mighty Media Group LP, 3710 Rawlins St.
Suite 150 Dallas, TX. 75219 or email: [email protected].
RELAX....YOU’RE AT THE BEACH
Apex Broadcasting seeks an Account Executive who enjoys working
hard 9-5, but at the end of the day wants to play on the sandy beaches
of Destin/Ft Walton Florida. This AE will represent our Destin/Ft.
Walton Florida stations. Our stations include ‘WAVE 1021’ (Adult Hits),
‘The Blaze’ (Active Rock), ‘Q92’ (CHR) and ‘Highway 98’ (Country).
If you’re an experienced and successful Account Manager with a good
track record and references, this could be the job for you. Life on the
beach is great, and so is your income potential at our four station
cluster. This is not a starter list. A seller with good habits will
make excellent money from the beginning. Bonus: our offices
are right on the beach!
Unhappy with your income and corporate radio? Please send your
cover letter/resume to: [email protected].
Equal Opportunity Employer.
LOOKING FOR THE BEST RADIO JOBS?
FIND MORE JOBS ONLINE >>
Tuesday, August 21, 2012
PROGRAM DIRECTOR
SPIRIT 105.3 SEATTLE
KCMS SPIRIT 105.3 Seattle
is renowned for its programming
excellence in Contemporary
Christian
Music.
We
are
launching a search for the next
great Program Director to lead
KCMS SPIRIT 105.3. Are you a
top 50 market radio programming
professional whose performance
consistently outperforms your
peers? Are you a leader of
integrity and humility who leads
by example and inspires others?
Would you like to work at a major
market radio station where your
Christian faith and vocation come
together? If this fits you, we are
interested in hearing from you.
To learn more or apply, check us
out at: www.crista.org. EOE
ARE Y0U 98 ROCK’S
NEXT PM DRIVE HOST?
WOW!
This doesn’t happen often.
WIYY/98Rock Baltimore is
looking for its next afternoon
drive host. The 35 year old
rock radio station is owned by
Hearst and is seeking someone
that has good new rock
background and is WAY into
social media. It would also help
if you are a Ravens fan (or don’t
mind becoming one). We are
the home of the Ravens after
all. Get your stuff to us ASAP.
No calls, please. And Hearst is
and EEO so bring it on!
Dave Hill
Program Director
[email protected]
INSIDE RADIO, Copyright 2012. www.InsideRadio.com. All rights reserved. No part of this publication may be copied, reproduced, refaxed, or retransmitted
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