With New Tech, Opportunities Alongside Challenges.

Weekly News Recap April 9-13, 2018

With New Tech, Opportunities Alongside Challenges.

A wave of nonstop change continues to roll through the radio industry, as new technologies bring new opportunities and big decisions. With a bevy of shiny objects and vendors vying for their attention, industry leaders have to place their bets on what will be

tomorrow’s game changer – or just a flash in the pan. A group of radio execs offered their vision for radio’s future – what thrills them and what frightens them –at the NAB Show in Las Vegas. Moderator Fred Jacobs got the ball rolling by asking the panel what excites them among all the new tech. All pointed to voice-activated smart speakers, which are now in 20% of WiFi-enabled homes. Big data was next, as one of the convention’s big buzz phrases. Since launching its Alexa strategy two months ago, Beasley Media Group CEO Caroline Beasley told session attendees that her company has seen increased listening, “not just moving from one platform to

the other but incremental listening.” NAB executive VP, Strategic Planning Steve Newberry added that the devices have become “a new replacement for radio in the home.” Entercom senior VP, Corporate Business Development Tim Murphy took a broader view, noting that smart speakers and other new technologies are leading to an explosion in overall audio listening. “If you’re a company that creates audio, technology is enabling a gold rush,” Murphy said. Voice recognition and big data were also on Cox Media Group executive VP Bill Hendrich’s top tech list. But tapping the smart speaker opportunity requires some heavy lifting, he observed. “We have to educate listeners on how to get our stations,” Hendrich said. “That’s the biggest game changer in years.” At the same time, big data will help radio create better programming and grow ad sales, the panel agreed. “It’s a new world, we just have to take advantage of it,” Beasley said. All of this dizzying change is, in fact, prompting broadcasters to reimagine what business they’re in, Murphy said. “We have to broaden how we view the marketplace and who we’re competing with. That requires deciding what is

radio’s “unfair advantage,” the thing it does in a “uniquely differentiated way” that it wants to “build a moat around” to protect. For Entercom, that’s scaling “great local programming,” Murphy explained, something none of the big platform companies like Google, Amazon and Facebook have done. “We have to make sure our programming continues to connect with people and we have to control the distribution. We can’t hand it over to others.” For Newberry, who also owns small market radio company Commonwealth Broadcasting, radio’s “unfair advantage” is its ability to connect with local communities. Hendrich said that Cox radio research consistently shows that what listeners value most about radio is its ability to connect them with the artists and personalities they love. While the industry is rife with new opportunities, the panel didn’t shy away from discussing some of the challenges they face as industry leaders tasked with making important decisions that can have long-term impact on their business, its employees and the future of the industry itself.

“The decisions we’re making today will impact what we’re doing 5-10 years from now,” Beasley said. In his new post at the NAB, Newberry said his biggest challenge is helping the industry find collaborative solutions as opposed to an “everyman for himself” competitive approach. He asked, “How do we all come together to think universally about what is good for the industry?”

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Digital Experts Share Smart Device Strategies. Smart devices, voice-activated speakers and mobile apps are unlocking newfound potential to connect with radio audiences. The challenge now for broadcasters is trying to keep up with these rapidly evolving platforms. Steve Meyers, Executive VP of Digital for Beasley, explained that his company has made the leap to a new mobile app platform for each of the company’s 63 stations, with a focus on next-generation features. Recognizing that more than 70% of its audience interacts with Beasley stations via mobile devices—and then finding that 25% of its audience sessions were focused on live streaming, with the other 75% on other digital content—the company refocused on creating targeted and more personalized content. That includes 93 new pieces of digital content each day. “With FM, we were pushing one stream of content. Digital opens this whole new ability for us to provide different opportunities and different methods of engagement for our brands,” Meyers said at the NAB Show. Hubbard’s walk on the wild side comprises 25 responsive web players that scale to any screen, desktop, tablet and/or mobile device, 28 Alexa skills, three Flash Briefings skills and 24 IOS/24 Android mobile apps. “You cannot behave like a radio company anymore. You have to act like a digital company,” said Jeremy Sinon, VP Digital Strategy for Hubbard. NAB Show Explores Intersection Of Big Data & Radio Measurement. Radio put Nielsen on the hot seat as a NAB Show panel of research execs grilled the ratings giant about what it’s doing to improve audience measurement in a world where big data is increasingly essential. iHeartMedia executive VP Michele Madansky chastised Nielsen for using a PPM device that “looks like a 1970s pager,” while the industry anxiously awaits the rollout of new wearable meters in 2020. And in the 200+ diary markets, Madansky questioned why Nielsen wouldn’t deploy “an app, a website, anything to just make it easy for people” to enter what they’re listening to. Nielsen VP of Product Leadership Rob Kass said representative PPM panels and ratings diaries will remain “core” to its methodology as a “source of truth” to offset the bias inherent in big data. “We’re cautiously looking at ways we can bring in new sources of data,” he said. Nielsen may be sitting on a treasure trove of big data, following its acquisition of Gracenote, according to Cumulus Media VP Dr. Ed Cohen. “That may be the settop box for big data in radio,” said Cohen, a former Arbitron executive.

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 ending the newspaper-broadcast cross-ownership ban and scrapping the “main studio” rule. “When you look at all of our media decisions together, the larger picture becomes clear: We are simply allowing any and every broadcaster the ability to compete in a free market, unshackled by regulations that no longer make sense,” he said. Walden Has Praise and Tough Love for Broadcasters. In a “Fireside Chat” with NAB president Gordon Smith Rep. Greg Walden (R-OR) acknowledged the crucial public safety role broadcasters play – while also offering some tough love for the industry. “You can reach people when there’s no other way to reach them” with essential information that “saves lives, the chairman of the powerful House Energy and Commerce Committee said. Walden sees evolving connected car technology as both a challenge and an opportunity for broadcasters. “At some point, in completely autonomous vehicles, the front seat will become the back seat and you’re going to have to figure out as an industry, and with new technologies, how you remain in the dashboard and maybe in every seat in that vehicle because things are changing,” Walden said. He also urged broadcasters to do more to educate lawmakers about their industry. “It’s really important for you to not presume that members of Congress making decisions about your future understand your business,” he said. As his committee tackles important issues that affect radio, Walden freely admits that growing and he urged Apple to join other handset manufacturers and activate the FM chip in cell phones. “This is a no brainer. They ought to be doing this,” he said. comScore: Smart Speakers Now In 18.7 Million U.S. Homes. The latest data from comScore shows smart speaker penetration has reached 20% of U.S. Wi-Fi enabled homes. This is an increase of 50% in just three months bringing the total to 18.7 million U.S. homes that are using a smart speaker. Lower price points and a larger variety of smart speakers served as fuel for the increase.

Smith: Investing In Innovation Crucial To Long-Term Growth. NAB president Gordon Smith got the NAB Show in Las Vegas underway on an upbeat note with a salute to broadcasting’s past and a peek into its future. To succeed in the uncharted territory of tomorrow requires “investing in the innovation that is crucial to our long-term growth,” he said, while also recognizing – and adapting to – changing media consumption habits. On the drawing board for radio are initiatives that would not only enhance radio’s relevance in the car but could also give broadcasters new uses for their broadcast spectrum. The trade group is working with radio’s largest groups “to improve the presence, appearance and overall positioning of radio on the car dashboard,” Smith said. NAB Offers Peek at Radio’s Place In Next Gen Dashboard. NAB VP of Advanced Engineering David Layer presented an overview of what’s on the horizon for radio in the digital dashboard as the trade group and other industry stakeholders collaborate with automakers on new technologies. NAB engineers have so far participated in four hackathons with app developers at Ford and GM with an eye toward developing apps that include the broadcast signal rather than just relying on the station stream. The two industries are collaborating to bring audio guides into the dashboard, along with the ability to view “now playing” info – even before selecting a station. “We’re trying to show carmakers that radio apps can be interesting,” Layer said, while also ensuring that automakers develop apps that support the concept of hybrid radio, which is gaining steam as a global effort. Smart Speakers: You’ve Got Your Alexa Skill In Place. Now What? The rapid penetration of smart speakers in the home is among the most riveting developments for traditional broadcasters. Developing proprietary skills is just the beginning: Discerning how listeners want to engage with your brand is the crucial second step, covered during the NAB Show session “Radio Comes Home.” Amazon Echo’s overall “persona” is regarded as a media consumption tool, which includes one of its most 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.”


In times of crisis, people turn to their local broadcasters for information. We have the ability to help save lives, and to bring a feeling of normalcy in the face of chaos.”

Sales Pros Adapt To Evolution – Shrewdly, Fearlessly. Ask radio leaders and top-performing station salespeople how they deal about persistent change in the advertising industry, and it sounds like this: “Get comfortable being uncomfortable.” During the NAB Show session “Radio: From The Streets and The C-Suite,” Meaghan Clark, an Account Executive with Univision Radio San Diego shared that eye-opening takeaway, where panelists agreed that the disruption surrounding digital, social and new platforms, in fact, offers new opportunities for broadcasters. Bill Hendrich, Executive VP of Cox Media Group, added that the art of selling is now the science of selling. “Adapt your business style to what’s happening today. I used to say it’s not rocket science. Now it is rocket science.” ‘Radio Engage’ Encourages Digital, Effective Messaging. For any broadcaster who may not yet believe digital is an essential component for over-the-air advertisers, take it from Michael Reath, president of Off Road Media Group, in the NAB Show session “Radio Engage”: “We would be in the negative in the last five years if not for digital.” A case in point: Stalwart advertiser Porter Auto Group’s contract shrank, from $24,000 to $8,000 a year, “because the sales rep wasn’t ready to sell digital.” Fast forward from 2016 to 2017: With the engagement of digital into the mix, the client dedicated $105,000 to the station. “By selling digital with traditional advertising and entering the universe of mobile it was obvious—if we weren’t putting our advertisers on this device, someone else would,” Reath says. “Radio plus mobile is peanut butter and jelly.” SiriusXM Launches ‘Coachella Radio’ For the fourth year, SiriusXM will be the exclusive radio broadcaster for the Coachella Valley Music and Arts Festival. “Coachella Radio” will feature artists who will be performing at Coachella 2018 leading up to the festival, and then air live performances, artist interviews, news and information from the two-weekend event. In addition to “Coachella Radio,” select performances will also air on other SiriusXM channels, including “Alt Nation,” “The Spectrum,” “SiriusXMU,” “Hip Hop Nation” and “The Heat.”

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.

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SALES – STATIONS Tri-Cities & Yakima, WA – Stephens Media Group strikes a $10.725million deal to buy a dozen fullpower stations and two FM translators from the Ingstad family in the Tri-Cities, WA (market No. 179) and Yakima, WA (market No. 198) markets. In the TriCities, WA market it buys AC “95.7 More FM” KKSR, country “94.9 The Wolf” KIOK, CHR “Power 99.1” KUJ-FM, 80s hits “Big 106.1” KALE, classic rock “Eagle 106.5” KEGX, sports “1340 ESPN Radio” KJOX. The cluster also includes the Richland, WA-licensed K291BS at 106.1 FM which simulcasts KALE. In the Yakima, WA market it buys “New Country 104.1” KXDD, rhythmic CHR “Hot 99.7” KHHK, classic hits KARY-FM (100.9), classic rock “105.7 The Hawk” KRSE, sports “1390 The Fan” KBBO, and Spanish-language sports “ESPN Deportes 980” KTCR. The cluster also includes the Wapato, WA-licensed K283BX at 104.5 FM which simulcasts KBBO. Stephens Media Group will operate the stations under a local marketing agreement until closing. Broker: MVP Capital Iowa – The University of Northwestern-St. Paul files a $1.25 million deal to buy AC/classic rock KSDN-FM (107.1) and country/farm KSDN (1530) from Michael Dudding’s Mikadety Radio. The University of Northwestern-St. Paul already owns 42 licenses of which 18 are full-power stations in the Midwest and Connecticut. Broker: KaliWith Cola Wars Hit Full Force

Pepsi, Coke Vying On Radio.

Illinois & Indiana – Tim Milner files a deal to create a new ownership group that will own five stations south of Chicago. The newly-created Milner Media Partners includes former Triad Broadcasting CEO David Benjamin (33% stake), former KGO San Francisco general manager Mickey Luckoff (32% stake), Robby Markose’s R2 Investments (33% stake)—with Milner retaining a 2% interest in the group. The stations include CHR WFAV (95.1) and oldies “92.7 The Valley” WVLI in Kankakee, IL; and the “River Country” simulcast of WIVR, Kentland, IN (101.7) and WYUR, Gilman, IL (103.7). Also included in the deal is the Bourbonnais, IL-licensed translator W241BS at 96.1 FM that relays WVLI. According to the filing the purchase price will be an amount equal to 5.374-times the adjusted net operating income generated during a measurement period that runs April 1, 2017 through March 31, 2018. The exact purchase price will be adjusted in the weeks to come, but a clue indicating how much it’ll total comes in the form of how much Milner Media Partners has put up as a deposit: $345,000. Brokers: Bob Heymann and George Reed, Media Services Group Minnesota – Real Presence Radio files a $450,000 deal to buy classic country KQAQ, Austin, MN (970) from Greg Jenson’s Hometown Broadcasting. Real Presence Radio has other stations in the region but KQAQ will become its first in southern Minnesota. It plans to flip the station to a noncommercial religious format. Once the sale closes Hometown Broadcasting will still own classic rock “Power 96” KQPR, Alert Lea, MN. Pennsylvania – Kristin Cantrell’s Seven Mountains Media files a $335,000 deal to buy AC “Yes FM” WVYS, Ridgebury, PA (96.9) from Geos Communications. The deal also includes the Ulster, PA-licensed translator W297BG at 107.3 FM. The filing shows $50,000 of the purchase price is attributed to a five-year non-compete clause. Seven Mounts Media currently owns 23 other stations in central Pennsylvania but WVYS serves an area along the New York border that none of its other stations covers.

Weekly News Recap March 12-16, 2018

Michigan – John Yob’s Mitten News files a $275,000 deal to buy talk WWMN, Thompsonville, MI (106.3) from Todd Mohr’s Mitten Media. Mitten News already owns talk WJNL (1210) and the Petoskey, MI-licensed translator W266CS at 101.1 FM in the Traverse City-Petoskey-Cadillac, MI market. Mitten News will operate WWMN under a local marketing agreement until closing. The station has begun to simulcat WJNL. Lexington-Fayette, KY – Somersot Educational Broadcasting Foundation files a $270,000 deal to buy contemporary Christian “The Wind” WPTJ (90.7) from Lay Outreach Witness. The contract says $25,000 of the purchase price is attributed to the sale of the tower site. Tennessee – Peter Bowman files a $55,000 deal to buy “Cat Country” WHMT, Tullahoma, TN (740) from Russell Leonard’s GRA Communications. The deal also includes two translators: the Tullahoma, TN-translator W286BG at 105.1 FM and the Manchester, TN-licensed W236DG at 95.1 FM. Bowman Broadcasting already owns AC “93.9 The Duck” WDUC and hot AC “Rooster Radio 101.5” WFTZ in the region. Once the sale closes GRA Communications will still own the “Cat Country” daytime-only simulcast WSLV (1110) in the area. STATION CLOSINGS: Georgia – Radio Training Network expands its presence in Georgia as it closes a $600,000 deal to buy contemporary Christian “The Reach 88.9” WMSL Athens from Prince Educational Media. Radio Training Network owns more than 30 stations, most of which air its “Joy FM” contemporary Christian format. Noncommercial WSML was Prince Educational Media’s only radio station. Hawaii – Larry Fuss-led Kauai Broadcast Partners closes an $180,000 deal to buy KZZV, Hanapepe, HI (94.3) from Maurice Vargas’ Virtues Communications Network. The station is currently off the air. Virtues Communications Network still owns the currently-silent KJVV (101.9) in the Victor Valley, CA market. Oregon – Roger Morgan and Jim Deatherage’s Coos Radio closes a $100,000 deal to buy oldies “The Legend 105.9” KLJN, Coos Bay, OR from Lighthouse Radio Group. The deal includes a $65,000 promissory note. Lighthouse Radio Group still owns contemporary Christian “98.7 K-Light” KYTTFM in Coos Bay. Riverside-San Bernardino, CA – James Su’s EDI Media closes a deal to buy ethnic brokered KWRM (1370) from Richard Vosper’s Major Market Stations for one dollar plus expenses including any taxes owed by the station. The filing shows Su currently holds a 2% stake in Major Market Stations. KWRM is EDI Media’s first station in the market although it owns two stations in the northern California city of Alturas: country KCNO (94.5) and variety KCFJ (570). Major Market Stations has a pending deal to sell its final station, the currently-silent KWRN (1550) in the Victor Valley, CA market, to Lazer Broadcasting. Tennessee – Bible Believers Network closes on its donation of the gospel/religious “New Life” trimulcast of WCLC-FM (105.1) and WCLC (1260) in Jamestown, TN and WGSN, Newport, TN (90.7) to New Life Studios. Other station and Translator sales HERE.

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