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MONDAY, JUNE 8, 2015

The Inside Story on Emmis’s move into subscription-based content. “Hot 97” WQHT, New York has traditionally streamed its annual Summer Jam festival on its own platforms and monetized it with sponsorship sales. But yesterday’s concert from New Jersey’s MetLife Stadium streamed exclusively on the Jay-Z-led Tidal music service. It’s part of a bold new strategy by Emmis to monetize exclusive content via paid subscriptions. In place of sponsorship revenue, Emmis sold exclusive rights to a nine-hour live stream of what is arguably the biggest hip-hop concert on the planet to Tidal, which charges $10 or $20 a month and is making exclusive content its unique value proposition. For Emmis, the partnership is a risky experiment into a new way of monetizing exclusive content. Last year more than 1.3 million viewers tuned in to the Summer Jam stream across multiple distribution partners, including several hundred thousand who watched it on HD TVs. Even with fans having to buy a Tidal subscription to access the stream, Emmis-New York GM Deon Levingston says he expects the stream to generate a significant online audience. “This is the first step in a new partnership between Emmis and Tidal that both are very excited about,” he says. Levingston believes a paid subscription model will ultimately allow him to better monetize the concert stream. But there’s no benchmark for knowing how many fans will pay to stream the show, which he said was “very close” to a 53,000-person sellout before the gates opened yesterday afternoon. “It’s a very risky venture but I think it’s worth the risk,” Levingston says.

Emmis goes commercial-free in new streaming hip-hop app. The second subscription-based offering from Emmis is Where Hip Hop Lives, a new streaming app that charges users $3.99 a month to access exclusive content and commercial-free streams from two of the broadcaster’s biggest stations. Emmis used yesterday’s massive Sumer Jam event to market the new app, available for iOs devices from Apple’s iTunes app store. The goal is to leverage unique content from the company’s East Coast and West Coast hip-hop bellwethers – “Hot 97” WQHT, New York and “Power 106” KPWR, Los Angeles – into a new revenue stream. Both streams are available in commercial-free versions, with additional content replacing commercial breaks as part of a paid, premium version of the app. The app offers other channels, such as New at 2, a 24/7 stream based on Power 106’s best-performing feature, which offers “the freshest artists, raw & uncensored tracks and exclusive new mixes from hip-hop’s biggest names.” A free version of the app offers both station streams with commercials intact, along with video and blog feeds. According to Emmis-New York GM Deon Levingston, Hot 97 is the most listened-to broadcast radio stream in the country and one of the most streamed stations in the world. “This is a way to package all the compelling exclusive content we generate and give it to our listeners and other listeners in a way that is unique,” Levingston says. “People are starting to get used to paying for exclusive content.”

Updated forecast calls for 2.5% growth in total U.S. ad spend in 2015. Pivotal Research has updated its U.S. advertising outlook, keeping intact its forecast of 2.5% growth in total ad spending this year. The forecast of 3.1% average growth through 2019 also remains unchanged, although the firm has slightly raised its expectations beyond 2016 due to upward revisions in key U.S. economic variables. Total ad spend during the first

Thursday’s importance goes beyond just gaming the ratings.

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quarter of 2015 grew about 2.1%, slightly below Pivotal’s previous forecast of 2.5%. National TV ad dollars increased 2%. Local media fell by 2.8%, confirming the rocky start to the year referenced by many radio CEOs during their company’s first quarter results calls. Local TV slipped 3% and radio was off 5% in the quarter, per Pivotal. But first quarter digital advertising, where radio is increasingly focusing its efforts, grew by around 14% year-over-year. Direct media jumped 6.2%. Pivotal analyst Brian Wieser says in a report the factors that held back ad spending in 2014 appear to still be at play this year, with marketers – especially larger ones – aggressively pursuing cost savings. Relaying an account from one of the industry’s most senior ad buyers, Wieser says marketers once encouraged their agencies to be aggressive with negotiations to save money that could be plowed back into additional media. But that’s not the case today. “Unfortunately for media owners, in the current environment marketers actually want the savings back,” Wieser writes. Indicators show few signs of this abating, he adds, pointing to the massive volume of brands reviewing their current media agency deals with “cost savings in both fees paid to agencies and spending with media owners ultimately top of mind for most.”

iHeartRadio hits 70 million registered users as growth accelerates. Since relaunching in 2011, iHeartRadio has been adding registered users at a pace of about 10 million every six to seven months. But that pace has accelerated this year. On Friday the company announced it surpassed 70 million registered users, up from 60 million in late January. That’s a gain of 10 million in just over four months, a faster pace than the company has previously experienced. The streaming radio service doesn’t require users to register to listen to live radio streams so its total reach is larger than the number who have registered. In other metrics released Friday, iHeartRadio said it has nearly 80 million social media followers across its entire digital network. It also pointed to strong social engagement, claiming iHeartRadio garnered 68% of total Facebook and Twitter engagements in April among streaming music services. Spotify came in second (17%), followed by Jay-Z’s Tidal (12%), Pandora (2%) and Rdio (1%). Continuing the mobile shift that is affecting all streaming services, 60% of iHeart users are listening on mobile devices , with desktops accounting for 40%. iHeart says its users have created more than 580 million custom stations and that its app has been downloaded more than 600 million times. The streaming service is now integrated into more than 60 devices.

Thursday’s importance goes beyond just gaming the ratings. Broadcast programmers have traditionally made Thursday the day to give that big contest prize away, launch a promotion or use some other tactic designed to drive tune-in. Promotions like “thousand-dollar Thursday” stem from the decades-old tradition of weekly ratings diaries starting on Thursdays, which continues under electronic audience measurement. PPM “weeks” also begin on Thursday. Turns out that, on average, the most popular time for listeners to tune into iHeartRadio is noon on Thursdays across all time zones. So what are people listening to the most? The streaming service says Taylor Swift was the artist listeners used the most to launch a custom station on the day it hit 70 million registered users. Wiz Khalifa’s “See You Again” (feat. Charlie Puth) was the most popular song. Compare that to the digital music service Amazon provides for members of its Prime online shopping service. Amazon’s current most-listened to song is “Shut Up and Dance” by Walk the Moon. The most-listened to album during its first week in Prime Music was Mumford & Sons “Wilder Mind.” Pop and rock reign supreme as the top genres in Prime Music. Amazon says Prime members listen to nearly 50% more country, 600% more jazz and 1500% more classical than the national average for streaming services. The new stats come as Amazon Music Prime marks its one-year anniversary. The company, which offers ad-free listening to subscribers of its Prime service, was short on specific audience metrics, saying it has “several million” Prime members listening each month. The music service has doubled its cume since September 2014 while total monthly playback hours have more than tripled in the same period.

Suit claims iHeartMedia texts violate Telephone Consumer Protection Act. Stations routinely use texting to conduct contests and take requests, often replying with an automatically generated text that includes a client mention. A suit brought against iHeartMedia contends such practices violate the Telephone Consumer Protection Act. Filed in U.S District Court

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in New York, the complaint alleges the company made and continues to make “unauthorized telemarketing text message calls” to people’s cell phones without their consent, using an automated system. The complaint seeks an injunction requiring iHeartMedia to stop “all unauthorized text messaging activities” and award statutory damages along with attorney fees. The company declined to comment on the suit. Plaintiff Beth Shvarts claims that when she texted “55100” to CHR “Z100” WHTZ, New York, the station texted her a reply containing an ad from a third party. How the matter is resolved may hinge on whether Shvarts implicitly gave the station permission to text her back when she initiated a text to the station. The suit, which seeks class action status, provides examples from several iHeart stations, such as “Reply ‘MORE’ if you would like 2 receive info from Sky Zone on bday party packages!” It claims the activities caused harm in the form of data and device storage usage, payments to wireless carriers for text message plans and aggravation and nuisance. It also alleges that iHeart doesn’t disclose in its invitations to text song requests and contest entries that doing so will result in receiving a reply containing an ad.

Salem snatches Radio Disney signals in Boston and Dallas. Continuing to bulk up in key markets, Salem Media Group has snatched up two more stations from the Walt Disney Company. For a total of $3.5 million, Salem is acquiring a pair of Radio Disney AMs in top 10 markets. The deal, filed with the FCC on Friday, adds a fourth AM to the company’ Boston cluster and gives it a fifth station in Dallas. Salem is paying $3 million for KMKI (620), licensed to Plano in the Dallas market. The station joins a cluster that includes contemporary Christian KLTY (94.9), talk “660 AM The Answer” KSKY, Spanish contemporary Christian “Radio Luz 1440 AM” KTNO and religious teaching “The Word 100.7” KWRD-FM. In the second part of the deal, Salem is paying $500,000 for WMKI, Boston (1260). It joins a trio of Salem-owned AMs in Beantown, including a pair of religious teaching AMs: “590 The Word” WEZE and “950 The Spirit of Boston” WROL. Salem’s other station in Boston is Spanish religious “Radio Luz” WWDJ (1150). Unlike Dallas, Boston currently doesn’t have an outlet for Salem’s “The Answer” talk format. Last month the company closed a $3.75 million deal to buy Radio Disney stations in Atlanta and Pittsburgh. Salem earlier bought Radio Disney outlets in San Antonio, Orlando and Little Rock after the network’s sell-off began last year.

Classic hip-hop hits Twin Cities. An HD Radio-fed FM translator has returned throwbacks from Jay-Z, 2Pac and Notorious B.I.G. to the Twin City airwaves. “Hot 102-5” launched Friday on the Fridley, MN-licensed translator K273BH, fed by the HD3 channel of adult alternative-hot AC hybrid “Cities 97” KTCZ. The new iHeartMedia station blends classic hip-hop and R&B. Gregg Swedberg, SVP of programming for iHeart’s Minneapolis-St. Paul cluster, says there is a “completely unserved audience” for the format, which has been spreading across the country since last October. Lucas Phelan, afternoon host on CHR sister KDWB (101.3), has added programming duties for the new station, which launched with “5,000 songs in a row” commercial-free. “I’m excited to introduce this new format to Minneapolis listeners,” Phelan said in a statement. “It’s what they have been asking for.”

‘Beach Radio’ bows in Panama City. A new beach-themed station that pulls music from multiple formats debuted Friday, targeting vacationers in Florida’s Panama City. But “96.3 Real Fun Beach Radio,” made possible by an AM-fed FM translator, also aims to drive listeners to the iHeartRadio stream when they return home from their vacation. The new format replaces “Fox Sports 590” on WDIZ and the Springfield-licensed translator W242BF, which iHeart bought from Way Media for $75,000. It plays music from multiple genres with a summertime, day-at-the-beach vibe from Jimmy Buffet, Bob Marley, Cream, Toby Keith and, of course, the Beach Boys. The programming emanates from what was previously a web-only “Real Fun Beach Radio” stream on the iHeartRadio portal. In addition to serving as the soundtrack for beach-goers and vacationers, market president Jackie Rinker says a big plus of the new station is that listeners “can take 96.3 Real Fun Beach Radio back to their home via iHeartRadio and enjoy the music they embraced while visiting Panama City Beach and be motivated to visit time and time again.”

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MUST READ MONDAY MONDAY, JUNE 8, 2015

— MUST READ MONDAY SPONSORS —

Great ideas and products featured in Must Read Monday come from innovative companies, sponsors and our greatest resource-our readers! If you have a successful product, an idea, or a innovative service to share, email: MRM@insideradio.com.

Radio’s strongest asset is its unmatched connection with listeners in local communities across the country.

Even the largest national advertisers are looking for consumer touch points at the local level. Our medium is so entrenched in the local lifestyle of listeners that we connect with them in a very personal way.

In today’s constantly expanding media landscape, radio has broadened its reach and extended listener engagement across platforms – on-air, online, on-site, on mobile, and on social media. All that remains is to substantially grow our business… and the opportunities for growth are ripe with new advertisers.

At Gen Media Partners, we created Gen Media Complete to go outside of traditional media sales practices and bring new advertisers and more advertising dollars to our radio clients.

Our approach is unlike any other sales and marketing firm.

We have established strategic partnerships that allow us to introduce radio to new advertisers. Our resources for building these campaigns around radio include: already existing relationships from School Sports Media, with access to high school and college events nationwide; MG Malls, with media assets in 2900 malls and shopping centers across 49 states; The Event Shop, with an array of experiential opportunities at local festivals and fairs; plus, the Local Lifestyle Network, a unique platform that allows our client radio stations to leverage their air personalities’ relationships with targeted audiences.

We are training our sales people to go beyond the avail and work directly with decision-makers to find untapped pools of revenue from sources such as promotion and marketing budgets.

For more information on Gen Media Partners and Gen Media Complete, please visit:www.genmediapartners.com Contact: Kevin Garrity, Chief Executive Officer212-400-7430 x200kevin.garrity@genmediapartners.com

32nd Annual TV and Radio Finance Summit

What is the outlook for new revenue streams for radio and TV stations? What is the revenue outlook for radio in 2015 and beyond?

Join some of radio’s top executives for the 32nd annual TV and Radio Finance Summit. A group of broadcast owners, investors, strategic advisors and professionals from across the industry will explore the sector’s issues and questions as well as risks and opportunities that are most pressing in today’s broadcast environment. Supported by SNL Kagan’s independent data and analysis, this executive summit presents the metrics, projections and commentary you need - whether you’re planning a transaction, evaluating an investment, or plotting competitive strategy.

The event is Thursday, June 25, at the Union League Club in New York City. Register HERE >>

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MONDAY, JUNE 8, 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 >>

DIRECTOR OF SALES - MIAMISalem Media Group needs a sales champion with credentials in Hispanic radio to grow and lead a high-powered sales department. You will:

• Develop new revenue in Hispanic Christian media• Lead by example with high energy and creativity• Surround yourself with and motivate top talent

Salem’s integrated media platforms provide an ability to super-serve loyal audiences in Christian and family based media. If you can rise to meet a terrific growth opportunity and lead us to the next level, we should talk. Email: Elizabeth.Meyer@salem.cc and reference this job: MDOS. Equal Opportunity Employer.

RADIO ADVERTISING SALES - PORTLAND OR

Oregon’s 2014 Radio Station of the Year, News Talk 860 KPAM, and sister station Sunny 1550, are seeking Portland’s next great radio Account Executive. If you know how to build long-term relationships with small to mid-size business owners, care about bringing results to those businesses, and can do it without ratings, then KPAM and Sunny could be your next home. The successful candidate will be motivated with high integrity and a strong desire to win and make a good living. Experience in broadcast media sales is necessary. KPAM and Sunny are two locally-owned radio stations offering excellent benefits and above average compensation plans in an employee focused environment. We are an equal opportunity employer.

Please send resume to our GSM:radiosales@kpam.com

No phone calls please. E.O.E.

SALES OPPORTUNITIES - FLORIDALive, play and work where millions PAY to visit every year -- the sunshine state of Florida. Are you a top performing sales professional looking to join a growing media company that offers career progression and is attracting some of the best talent in the business? Did you make a commitment to yourself that you wouldn’t spend another Winter shoveling snow? Or, do you desire to be in a market where the economy is thriving? Cumulus Media is currently searching for recognized performers to drive sales in our Florida markets…Melbourne, Fort Walton Beach/Destin, Tallahassee and Pensacola. As a sales person for Cumulus, we provide our teams with a great product to sell, superior training, and a “best in class” sales system that supports business development and rewards performance. Please submit resume to:

careers@cumulusfwb.com All submissions will be kept in the strictest confidence.

Equal Opportunity Employer.

AE - MARYLANDiHeartRadio seeks an

Account Executive who will be responsible for building relationships and selling

iHeartMedia assets as marketing solutions. The objective is to achieve revenue targets and

services goals while helping clients meet key business challenges. Successful candidates must be motivated, enthusiastic, self-starters who are able to work effectively both independently and in a team environment.

Experience:0-2 years prior experience in

successful sales role.Bachelor’s degree.

Superior written and verbal communication skills.

Money motivated, driven, hungry, hunter mentality

Professional appearance and strong interpersonal skills.

Ability to design, deliver and execute marketing presentations.

Tells us why you’re the best person to take on this challenge and how you would manage your sales team and further strengthen

our position! as the dominant media company in Delaware.

Send cover letter & resume to:GSM@DBCMEDIA.COM