PG 1

800.275.2840

THE MOST TRUSTED NEWS IN RADIO

MORE NEWS»

insideradio.com

NEWS@INSIDERADIO.COM | 800.275.2840

FRIDAY, FEBRUARY 27, 2015

Country radio confronts fickleness of younger listeners. Despite softer Time Spent Listening, station satisfaction remains high among core country radio users. However passion for country music among younger listeners has eroded somewhat. Those are among the topline findings from a survey of 11,573 consumers in 67 markets in the U.S. and Canada, most of whom are country radio P1s. The annual Albright & O’Malley & Brenner Roadmap study was presented this week in Nashville at the Country Radio Seminar. After holding steady at around 60% for the past four years, the number of 25-54 year-olds in the sample who reported listening to local radio for more than two hours a day dropped to 54.2%. Another third (34.2%) said they listen for 1-2 hours of local radio a day. The TSL decline was more prominent among 18-24 year olds. After peaking at 60.1% in 2013, the percent of 18-24 year-olds that said they listened to local radio more than two hours a day fell from 56% in 2014 to 50% in 2015. Still, station satisfaction has been trending up during the same period: 80% of 25-54s indicated they were “very satisfied” with their station in 2015, up from 68% in 2013. “Station satisfaction remains high in the U.S. and Canada, though in the U.S. there was a continued softening of the ‘getting better’ perception of music over the past 12 months,” A&O&B partner Mike O’Malley says. “This was more pronounced in the younger demos.”

More country radio listeners are sampling alternative music sources. The annual Albright & O’Malley & Brenner Roadmap study underscores how country radio no longer just competes with other radio stations. Nearly a third of the sample (31%) said they tune into a streaming music service like Slacker or Spotify when they punch away from their favorite station, second only to the 32% that tune to another county radio station. Another 28% go to a station with a different format and 22% to an mp3 player. But Time Spent Listening to pureplay digital music services remains low among the country radio crowd. More than half (53%) reported no listening to those services and about 12% said they listen an hour or less a week. Another 12% listen 1-3 hours per week and 8% listen 3-5 hours a week. The percentages that listen 6-10 hours or more than 10 were in the low single digits. Factor in the streams of broadcast stations and the numbers grow. Seven in ten said they’ve tuned into online radio at home during the past six months, followed by at work (52%) and in the car (52%). Further evidence of the growing tech savviness of country radio listeners: Close to 70% of panelists reported continuing to increase their mobile phone usage, including 60% who are using their cell phones as alarm clocks.

Broadcast radio’s the top morning media for country listeners. Stick close to country radio fans if you want to hear radio in the morning. That’s because FM/AM is used by more listeners than any other medium according to an Edison Research study commissioned by the Country Radio Broadcasters. The study assessed the morning habits and media usage of more than 1,500 respondents, asking them to track which of 60 listed activities they performed between 5am and 10am. Radio is by far dominant. It’s used by 85% of country listeners, far in front of satellite radio (23%) and web radio (7%). The peak hour for respondents in the car is 7am to 8am. But it’s during the at-work hours that Edison president Larry Rosin

insideradio.com

PG 2 NEWS@INSIDERADIO.COM | 800.275.2840

FRIDAY, FEBRUARY 27, 2015NEWS

says stations create clocks designed to limit tune-out. He suggests stations consider pulling those strategies out of middays and into morning drive when listeners are in a place where the button-punching is easiest. The study also recommended changes to content to put morning programs on the same wavelength of the “typical” listener’s lifestyle. “One way is to stop providing information your listeners don’t care about or use radio for anymore, like traffic,” Rosin said. Edison’s research also picked up on a “hardware problem” that puts the format — and radio — in danger of losing its lead. Just 16% report they wake up to a clock radio set to FM/AM. That’s half as many who wake up to an alarm noise. Nearly half (45%) wake to a mobile device. “Radio needs to make sure it stays competitive in those first moments of the day and adjust its strategy if necessary to do so,” Rosin said.

Here’s why Entravision’s Walter Ulloa may be radio’s happiest executive right now. Sometimes everything just clicks, and that’s the situation right now at Entravision’s radio division. “We’ve never seen it perform like this,” CEO Walter Ulloa said yesterday. He said radio is outshining the company’s TV group. “We just received a $500,000 order yesterday from a fast food client and this client has never been with us before — that’s an indication of where things are headed,” Ulloa said. Entravision radio revenue is currently pacing up high-single digits in the first quarter. Several factors are at play. The company’s Entravision Solutions Spanish-language ad network continues to gain traction. Its billings increased 22% during the fourth quarter as big named clients such as Sam’s Club, Sears and Wells Fargo were among the biggest clients. Entravision is also seeing some traction with several programming changes. Ratings have soared on stations airing Eddie “Piolin” Sotelo’s new syndicated morning show. It should also help solidify the company’s Los Angeles cluster which was a noteworthy weak spot during Q4. CFO Chris Young said local clients have embraced Piolin and, as Nielsen data rolls in, national marketers are likely to follow. Entravision started the year with momentum after revenue increased 5% at its radio division during fourth quarter, largely due to $1 million in political ad sales. For all of 2014, radio billings were up 4%. One weak spot was automotive spending: it slid 4% last quarter and was down 2% for the year. But in keeping with a quarter where just about everything is going right, Ulloa said the combined radio-TV auto category has turned around and is off to a “strong start.” It’s currently tracking up 11% versus last year. “Our position for radio growth in 2015 is excellent,” he said.

Ad market to radio: it’s not you, it’s me. Newly-released figures are putting radio’s 2014 revenue into perspective. Core U.S. ad spending grew just 1.6% last year according to Magna Global. That’s the smallest growth rate in six years. Not coincidentally, the RAB reported last week the radio industry also had its first down year in revenue also since 2009. Magna’s chief forecaster Vincent Letang says 2014 was a “disappointing” year for ad spending, pointing out that even with the political and Olympic advertising bonanzas factored in, the ad market grew by a still-modest 3%. Radio spot sales slipped, but it had plenty of company according to the Magna data. Even television revenue declined. Letang calculates across-the-board traditional media spending declined 3.4% last year. At the same time, digital revenue increased 15%. He also points out ad trends didn’t match the overall economic environment, blaming what he calls an “inertia of advertising spending to economic signals.” Going forward, he thinks television will take a big hit in 2015 as marketers have taken all they can from radio or print. TV is where the big dollars are ripe for the plucking. “Traditional media budgets will come under increasing pressure because of the diversification of tactics and the opportunities created by digital formats and ‘big data’,” he predicts. For radio, Letang last August projected the industry would see a smidgen of growth (+ 0.5%) now he’s a bit less optimistic (-2%) about 2015. But Letang also thinks there’s still a possibility a strengthening economy, lower unemployment rates, and improving business confidence could mean this year will turn out better than expected.

Pattiz predicts podcasting could become a $100 million business. Call it the “Serial” effect. Podcasting, once thought of as a narrow niche for nerds only, seems to be having its breakthrough moment. Now three years old, PodcastOne is operating in the black, according to CEO Norm Pattiz. The border between broadcast radio and podcasting is porous and PodcastOne counts broadcast radio shows among its catalog of roughly 200 shows. And while he recently took on a well-funded rival when CBS Radio launched its own Play.it podcast portal, Pattiz reveals the two companies were nearly partners.

insideradio.com

PG 3 NEWS@INSIDERADIO.COM | 800.275.2840

FRIDAY, FEBRUARY 27, 2015NEWS

“That wound up falling apart,” he says. But there’s still an upside. “Having them in the game is good for us and very good for podcasting because it makes the business more credible to the advertising community,” Pattiz says. No revenue figures are available for the podcast industry at the moment, but Pattiz predicts it could hit $100 million in revenue within a few years.Read more from the Inside Radio Q&A with Norm Pattiz on Page 5. Or read the complete Q&A HERE on InsideRadio.com.

Religious broadcasters call net neutrality rules a FCC ‘power grab.’ In a vote that’s certain to be part of FCC chairman Tom Wheeler’s legacy, the agency yesterday approved a plan to recast the internet as a utility. It’s a move that’s drawing fire from the National Religious Broadcasters. “This is a power grab,” NRB president Jerry Johnson says. “Bigger government is not fertile ground for the flourishing of free speech and innovation.” NRB’s board voted earlier this week to come out against the net neutrality plans, saying it’s particularly concerned that free speech values be upheld online. NRB criticism sets it apart from the National Association of Broadcasters, which opted to remain on the sidelines in the battle that’s engulfed Washington in recent weeks. The music community is largely in favor of the new rules, approved 3 to 2 along party lines. Future of Music Coalition CEO Casey Rae calls it “an incredible moment” for artists and independent labels who want access to consumers without internet service providers favoring big players like Google’s YouTube. If the FCC’s vote is upheld by the federal courts — where a likely challenge will be filed — it would give the agency stronger powers to keep internet service providers from creating “fast lanes” that would give companies willing to pay for it a better connection to consumers. The specifics weren’t released prior to the FCC’s vote, and attorneys will now pour over the 300-page order to decipher its implications. For broadcasters, the biggest impact is likely years away as streaming grows. By blocking what’s known as “throttling,” the FCC will block a webcaster from having a better connection than another who opts not to pay an access fee.

Brandmeier goes national, Miller goes home. Westwood One syndicated talk host Dennis Miller has announced he will end his eight-year old radio show next month. The network has announced it has inked a deal to launch a new radio show featuring Chicago veteran Jonathon Brandmeier. “I’m stepping aside from radio at the moment,” Miller says. “But with so many other commitments right now, it’s hard to maintain a daily talk show. It’s time to pass the torch as I move on to explore other opportunities.” The new Brandmeier show will be based at sister Cumulus Media’s WLS, Chicago (890) and will go live next month on other Cumulus talk stations, including “Talk 790” KABC, Los Angeles and KLIF, Dallas (570). Westwood One says Brandmeier’s show won’t be the run of the mill political talk program, instead blending in news, pop culture and sports. It continues a shift underway in several Cumulus markets away from conservative talk. EVP of content and programming John Dickey says Brandmeier’s show will bring “relevant and relatable” talk to radio. “Jonathon is one of the most versatile performers in radio today, and we know audiences will enjoy his lively humor and take on each day’s topics,” Dickey says. The announcement comes after Brandmeier — who is best known for his run on Chicago’s classic rock “97.9 The Loop” WLUP — reportedly turned down an offer by CBS Radio to host mornings on classic hits “104.3 K-Hits” WJMK.

After 93 years, a Texas AM gets an FM. Heritage San Antonio’s KTSA (550) has been an AM-only operation since 1922. But the march of time and listeners to FM has led Alpha Media to give the news-talk station an FM signal. It has begun simulcasting on the Pleasanton, TX-licensed translator K297GK at 107.1 FM. “We all know taking this format to the FM opens us to an audience that has never been inclined to use AM,” program director Greg Martin says. Nielsen says KTSA had a 1.2 share in the January survey (6+). It trails iHeartMedia’s “News Radio 1200” WOAI, which had a 5.2 share. “Adding the FM frequency to our news talk station will not only help increase ratings and revenue, but will play a key role in exposing our brand to the FM audience and the socially conscious and connected community,” Alpha Media EVP of programming Scott Mahalick says.

Mel returns to NAB Show to nab an award. Mel Karmazin shouldn’t have any shortage of war stories to draw on when making his acceptance speech for the 2015 Lowry Mays Excellence in Broadcasting Award. From negotiating deals with Howard Stern (and encountering the subsequent wrath of the FCC), to consolidating radio, running CBS and Viacom and merging Sirius with XM, Karmazin’s pretty much done it all. Ironically, the award he’ll receive during the Broadcasters Foundation of America’s annual breakfast April 15 at the NAB Show in Las Vegas is named after a former competitor —Clear Channel founder Lowry Mays. Karmazin was building Infinity Broadcasting into a major market powerhouse with

insideradio.com

PG 4 NEWS@INSIDERADIO.COM | 800.275.2840

FRIDAY, FEBRUARY 27, 2015NEWS

a core group of Stern-anchored FMs while the Mays family was assembling a radio empire of unprecedented size. After Infinity merged with Westinghouse/CBS, Karmazin became chairman and CEO of CBS Radio in January 1997. He rose to president & CEO of CBS, then to president & COO of Viacom, before rejoining Stern at Sirius Satellite Radio, which he merged with XM Radio. Karmazin started in radio as a salesman for WCBS-AM, New York. The Mays award honors an individual in broadcasting whose work exemplifies innovation, community service, advocacy, and entrepreneurship and Karmazin checks all those boxes. Currently, he’s a trustee at NYU Langone Medical Center, a board member and executive committee member of Autism Speaks and vice chairman of the board of trustees of the Paley Center for Media.

Inside Radio News Ticker…Half of U.S. is online radioactive…Internet radio is having a moment. More than half of the U.S. population aged 12+ (53%) has listened to it in the past month, according to new data from Edison Research. That amounts to an estimated 143 million Americans tuning to AM/FM radio stations online and/or listening to streamed audio content available only on the internet. The figure is up from 47% in 2014…EMF breaks into Seattle market…The Seattle market will have one fewer owner as Queen Cities Broadcasting sells its standalone classic hits “Q-104.5” KMCQ to Educational Media Foundation for $7 million. While EMF already has stations in Spokane and Yakima, the deal will put the company in the Seattle metro for the first time. The deal leaves Queen Cities with two Cincinnati stations: Spanish CHR “La Mega 97.7” WOXY and hot AC “99.5 The Edge” WAOL…Fire keeps burning for ESPN Radio…The Chicago Fire Soccer Club remains a hot property for ESPN Radio’s “ESPN 1000” WMVP, Chicago. The station has signed a new two-year agreement with the team. The deal doesn’t cover play-by-play. Instead, it will keep its Saturday morning (7am) Fire-focused show on the station for 33 weeks beginning this weekend. They’ll also offer it as a podcast. Fred Huebner and Kevin Egan will return as hosts, joined by former U.S. Women’s National Team defender Danielle Slaton. “The partnership with ESPN Radio allows us to keep reaching a wider audience,” Fire COO Atul Khosla says…Form 323 update comment deadlines set...The comment deadlines have been set in the FCC’s rulemaking that looks to update the biennial ownership reports that stations are required to file. The agency says the first round of comments is due March 30 with reply comments due April 13. The FCC is proposing using a new system to allow companies to share more detailed data about the owners of a station. Depending on how quickly the agency acts, the changes could be in place by the time the next round of Form 323s are due later this year…Vipology inks alliance with Benztown…The digital products and services provider Vipology has signed a deal with Benztown Radio Networks which will syndicate the Los Angeles-based company’s products to radio stations. Benztown Dave “Chachi” Denes says he worked with Vipology a decade ago, and jumped at the chance of aligning with the company again…Duran buys $8 million New York penthouse...When you need to be to the studio by 6am to host the most-listened-to CHR morning show in the U.S., it helps to live in the neighborhood. Elvis Duran is paying $8 million to buy a 4,000 square foot penthouse in New York’s Tribeca neighborhood, a few blocks from his radio home at CHR “Z100” WHTZ. The New York Post reports the new digs are the highest priced unit in the Leonard building and include a state-of-the-art sound system, a chef’s kitchen and an “enormous private roof terrace.”

Companywide title changes at iHeartMedia. Scores of iHeartMedia managers will soon be sporting new email signatures, following a series of widespread title changes at the company, affecting sales, programming and management positions. A spokesperson says the changes “better reflect both their responsibilities and the sophistication of their roles in today’s media marketplace.” All iHeartMedia directors of sales and VPs of sales will become SVPs of sales. All operations managers and VPs of programming will be renamed SVPs of programming. All market managers in regional markets will upgrade to market presidents. And all regional market managers will become regional market presidents.

Nielsen immigrates to the U.K. So long windmills, hello Big Ben. Nielsen is changing the company’s legal incorporation from the Netherlands to the U.K. Its worldwide headquarters remain in New York. Nielsen says the move isn’t about saving money on taxes. Instead, it believes by being a British company it will attract more investors. “We are a global company, and this change positions Nielsen well as we continue to attract sophisticated global investors, adhere to the highest corporate governance standards, and execute on our long-term growth strategy,” CEO Mitch Barns says in a statement. The move will mean its official name will become Nielsen Holdings plc. Its stock will still trade on the New York Stock Exchange under the “NLSN” ticker.

insideradio.com

PG 5 NEWS@INSIDERADIO.COM | 800.275.2840

TUESDAY, FEBRUARY 24, 2015Q & A

THE INSIDE RADIO Q&A: NORM PATTIZ More than three decades after creating a new model of syndication with the launch of Westwood One, Norm Pattiz has become the biggest evangelizer of podcasting. Three years ago he launched PodcastOne to serve as a portal for advertising-supporting podcasts. Today there are about 200 podcasts under its umbrella, including several with a broadcast radio heritage. Inside Radio caught up with Pattiz to discuss the state of podcasting.

Inside Radio: There’s a lot of buzz in the media about podcasting lately. Do you feel the conversation is changing?Norm Pattiz: People are becoming aware because podcasts are more popular and the increase in business from advertisers and the growth of the overall medium. And it’s all sort of coming together at an inflection point.

NP: You’ve called podcasting “a savior of radio.” Do you consider podcasting part of radio? IR: I’ve been a cheerleader for radio ever since I’ve been in it. I view podcasting as being the next incarnation of radio. I view it as “a savior” — I didn’t say I view it as “the savior” — it’s part of an overall switch from the broadcasting medium to the digital medium. Radio isn’t going away, it will always exist. But the growth of radio is going to come in different areas.

IR: Some radio shows have signed with PodcastOne. Will you add more?NP: I think more and more traditional radio shows are looking at the medium and wanting to get into it. We have great success with programs like Dan Patrick, Rich Eisen, “Loveline,” Laura Ingraham, and Clark Howard. Those shows do very well for us because they have been successful radio shows. We have about 200 podcasts and only 10 are repurposed radio shows.

IR: Are all radio shows possible podcasts?NP: For a podcast to be successful on a national basis you can’t just take a local radio show that does well in one market and assume it’s going to do well nationally. A national radio show with a national footprint can promote the podcast.

IR: Are you running into any resistance from broadcast radio?NP: Quite candidly, we had long conversations with CBS about working together and we were moving toward doing something together. That wound up falling apart when they decided to do something on their own. So they’re doing that. But there’s a whole lot more to being successful as a podcaster than having digital technology.

IR: Is there an upside to having CBS Radio’s Play.it in the market?NP: Even though they are now a competitor, having them in the game is good for us and very good for the podcasting because it makes the business more credible to the advertising community and it will help us drive demand.

IR: It seems as though ‘podcasting’ is no longer a dirty word?NP: Absolutely. The reason people said it a few years ago was because podcasting, when it first started, was very difficult to consume. But that’s all changed. Right now podcast doesn’t mean you have to put it on an iPod, it means programming on-demand. And on-demand programming, which is hugely successful in video, will be equally successful in audio.

IR: Has advertisers’ view changed as well?NP: What we’ve found is Madison Avenue was looking for a player that had the size, scope, bandwidth and critical mass so they could look at it as something they might use. They don’t want to talk with 250,000 backyard podcasters, they want to talk to a company that has the resources to supply them with the information that they need to be able to buy the medium. In our first year we had six national brand advertisers. The following year we had 36. And this year we’ll double that.

IR: Now in year three, is PodcastOne profitable?NP: It’s pretty early in, but we are in the black. And there are a number of areas in podcasting that we haven’t mined yet because we have been so focused on building an opportunity for advertisers. With the size of our audience, we’re going to build out the platform so we’re able to get into ecommerce, and we’re able to provide subscription opportunities to offer access to programming that’s not generally available with an ad model.

IR: What is the size of your audience, and how to you measure it?NP: In its raw form, we measure downloads. But advertisers don’t buy downloads, they buy impressions. So we have a solution that is widely accepted that converts downloads into impressions and we’re looking at about 100 million impressions a month. That’s a very big audience.

IR: As podcasting grows, do you have any sense of how big it could become?NP: In terms of overall listening, it’s already pretty big. There is research that says 30% of Americans have listened to a podcast. And there’s no question that it’s growing significantly. But the number that it delivers right now is sufficient to be able to go out and build a business and an industry. We’re an eight-figure business right now. We’re in the early stages, and I think this could be very quickly a $100 million industry.

This interview has been condensed and edited for space. Read the complete Q&A HERE

insideradio.com

PG 6 NEWS@INSIDERADIO.COM | 800.275.2840

FRIDAY, FEBRUARY 27, 2015CLASSIFIEDS

INSIDE RADIO, Copyright 2015. www.insideradio.com. All rights reserved. No part of this publication may be copied, reproduced, or retransmitted in any form. This publication cannot be distributed beyond the physical address of the named subscriber. Address: P.O. Box 567925, Atlanta, GA 31156. Subscribe to INSIDE RADIO monthly subscription $39.95 recurring payment. For information, visit www.insideradio.com. To advertise, call 1-800-248-4242 x711. Email: ads@insideradio.com.

MORE OPPORTUNITIES @ INSIDERADIO.COM >>

qual GENERAL MANAGER - MINNESOTARare GM opening for Hubbard radio in northern Minnesota!

Hubbard Broadcasting, Inc. is looking for an energetic, motivated and creative manager to lead our five radio stations in Bemidji, MN. As GM you will oversee sales, marketing and operations of KZY 95.5, Z99, KB101, WQXJ 104.5 and KBUN. The last management team was in place for over 25 years so it’s a rare opportunity to lead our five strong brands in a robust and competitive market. Sales background is preferred but not required. The opportunity provides the best of both worlds—small market localism with major market resources.

We can’t wait to hear from you! Send letter & resume to Dan Seeman,

dseeman@hbi.comEqual Opportunity Employer

qual GENERAL MANAGER - NYGeneral Manager - Glen Falls/Queensbury/Lake George, NY

Successful private group with 3 fms and 1 am in market with a population count of about 160,000 is looking for their next leader. This is a great market you will want to stay ...for the people, the outdoors, and proximity to larger markets...This is a great area! You must be knowledgeable on all aspects of selling; a little transactional but a lot of face to face building campaigns for local clients, sports, digital and events, this is for a street smart aggressive, creative and driven individual to grow the team by selling. You will be in charge of it all. Send your cover letter and resume to cashworth@rrggf.com. We are a equal opportunity employer.

MARKET MANAGER & SALES EXECUTIVES

Nashville/Memphis/Kansas City/Ft. Wayne/Modesto/

Fresno/Lincoln/Omaha

Bott Radio Network a national leader in quality Christian Talk Radio is seeking an experienced Market Managers & Sales Executives in several markets. The ideal candidate will have at least five years’ prior experience in sales management and outside sales. Candidate must have a proven sales in achieving team goals and individual sales goals. Must have superior leadership and communication skills, and the ability to train and develop top performing sales people to grow local and regional revenue. Must be skilled at prospecting, qualifying and closing new accounts, while servicing existing accounts, including effective scheduling, copywriting, exceptional account service and computer skills. Radio experience is preferred. If your experience is a good match, send your resume and cover letter to:

Pat Rulon 10550 BarkleyOverland Park, Kansas 66212

Fax to: Pat Rulon, 913.642.1319

Email:prulon@bottradionetwork.

comE.O.E.

PLACE YOUR JOB OPENING HERE!

EMAIL: ADS@INSIDERADIO.COM

RADIO PROS FOUND HERE!

qual MANAGER OF FINANCIAL PLANNING & ANALYSISEntercom Communications Corp., a radio broadcasting company seeking to hire a creative and self-motivated individual in our Philadelphia corporate office. Duties include administrating and maintaining multiple financial planning and analysis spreadsheets and databases and compiling, consolidate, verify and distribute data and reports to executive management. This position will also assist with the revenue and expense forecasting at each of our 23 locations, convert data from various sources into actionable information and work with our revenue management team to maximize the functionality of our commercial trafficking software

Qualified applicants must have a degree and 5+ years of relevant experience. Advanced Excel and strong analytical skills are a must. Expertise with PowerPoint, ability to multi-task and handle shifting priorities, a solid understanding of financial terms and concepts and excellent verbal/written communication skills. Managerial experience is required and broadcasting industry experience is a plus.

Send your resume/cover letter to Chris Pimental, VP of Finance: cpimental@entercom.com. E.O.E.