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Digitally-savvy Millennials want classic car radio knobs. A growing body of research is showing Americans aren’t as keen on mucking with the car radio as automakers are. While that may conjure images of struggling Baby Boomers, a new report from IHS Automotive shows no generation is more nostalgic for knobs and buttons than Millennials. More than a third (34%) of 18 to 37 year-olds prefer basic controls for audio. That compares to 18% of Gen X drivers and 20% of Boomers who said the same thing. “There does seem to be something going on where Millennials seem to be having a visceral reaction to built-in displays,” senior analyst Colin Bird tells Inside Radio. “They’re digital natives and they’ve used the best and newest designs, but they don’t think manufacturers are delivering that and would like to circumvent it if they’re not going to do a good job at it.” To put the findings into perspective, the only demo that pines more for the days of old car radios is those 75+. The IHS data also shows another counterintuitive finding: traditional audio buttons are most sought-after by drivers who are most likely to listen to streaming or mp3 players. The report echoes data released this spring by Ipsos that found 91% of drivers prefer old fashioned AM/FM buttons to control radio in their car. IHS reports less than a quarter of drivers (22%) want a digital display audio system in their next car. But Bird says it’s unlikely automakers will hit reverse, pointing out display units are becoming standard on even lower-end models like the Dodge Dart and Chevy Spark. “It’s definitely the future,” he says. “If you’re going to have it on the Chevy Spark, you are going to have it on pretty much any vehicle.”

Generational shifts for in-car audio. Broadcast radio remains the biggest source of music for drivers — it has with a 30 point lead on satellite radio, according to IHS Automotive. IHS says FM/AM remains the No. 1 way people listen to music with 74% of people indicating that they listen to broadcast radio while driving, versus 64% for CDs and 44% for satellite radio. A deeper dive into the data confirms FM/AM does best among older demos, with 83% of drivers aged 45-plus saying it’s one of their top in-car entertainment choices. Younger groups are where new dashboard listening options may be changing habits. Among 25 to 34 year olds, two-thirds selected FM/AM as one of their top music sources in the car. And among 18 to 24 year olds it fell to half. Digital radio is big factor as IHS says 42% of drivers aged 18 to 44 say they listen to streaming radio when they’re driving. In a nod toward a generational shift, that figure is half as big among 45 to 54 year olds. “Millennials are much more likely to own a smartphone and that influences their audio listening habits and what their desires are,” IHS Automotive senior analyst Colin Bird says. IHS data shows among people who don’t own a smartphone, 87% pick FM/AM as a top in-car music source. Among those that do have one, it falls to 71%. “Right now we’re in a transitions phase so it’s hard to completely foresee what the future holds,” Bird says. “The smartphone is converging as our central entertainment device; we’re plugging it into different aspects of our lives.”

What about apps? Radio’s in-car future may ultimately rest with whether drivers embrace app-based alternatives to FM/AM radio. About 132 billion mobile apps were downloaded worldwide last year and the IHS report finds that nearly one-in-four drivers would like to use apps on their smartphone through their next car’s control system. The top five categories that consumers identified as a favorite for use in their vehicles are, in order: navigation (53%), weather (40%), and music (38%). Podcasts, however, were among the least likely to be mentioned, with less than 15% use rates among respondents. “Millennials are much more likely to want to utilize their smartphones in the car,” IHS Automotive senior analyst Colin Bird says. “They’re sort of circumventing traditional radio in the vehicle and that’s one area I would look out for.”

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Clip apps integrate with FM chip on four more phones. The ability to listen to FM radio via station apps developed by Clip Interactive has expanded to four more Android phones. Consumers who own the HTC One M9, HTC Desire 610, Sharp Aquos Crystal and LG G3 that have downloaded a Clip station app now have the choice of listening to the station via FM or live stream. The phones join the HTC One M8, which Clip integrated with one month ago. The new feature makes use of the smartphone’s embedded FM chip. All five phones are also NextRadio compatible. But while the NextRadio app, which is available on about 40 phones, allows listeners to tune in any local station, Clip enables FM listening within the context of an individual station app and only to that specific station. The capability, which sidesteps NextRadio, means stations using Clip-built apps can encourage listeners to tune to the broadcast signal to preserve their mobile data. Clip Interactive chief technology officer Peter Shoebridge says the app developer will announce integrations with more devices in the coming weeks. About 130 stations use Clip-developed apps, including ones owned by Salem Media Group, Alpha Media, Beasley Media Group and Digity. The apps enable listeners to interact with and respond to station programming, advertising, contests, polls and other content. In addition to stand-alone apps for individual stations, Clip also makes a single app that aggregates all Clip Interactive stations.

Emmis triples marketing in L.A. urban battle. IHeartMedia has pledged to spend $1 million to promote its new Los Angeles urban station “Real 92.3” KRRL along with the usual 10,000-song commercial free introduction, which has now segued into a two breaks-per-hour clock. While it may’ve lost its morning man, Kurt “Big Boy” Alexander, to the new rival, Emmis says it’s not waving the white flag. “Power 106” KPWR has not only been the top-billing station but also the most profitable station in the company’s portfolio. It tells its lenders that during the first quarter it increased KPWR’s marketing and promotional spending from $300,000 to $950,000, which has so far included ticket giveaways and Facebook advertising. Emmis has also locked program director Jimmy Steal into a new four-year contract. But with a new challenger spending seven-digits on promotions, not to mention a “weak” ad market, Emmis is after a bit of breathing room from its lenders. It’s seeking additional debt covenant relief through February 2017. The move will give the company what it calls a “sufficient cushion” to ensure it has the ability to respond to the challenges.

After losing ‘Big Boy, Emmis moves to secure air talent. The fight to keep longtime “Power 106” KPWR, Los Angeles morning man Kurt “Big Boy” Alexander from crossing the street to a new rival is having a ripple effect in New York for Emmis. That’s where the company says it’s been forced to pay several personalities bigger salaries after details of what Emmis put on the table for Big Boy were made public in the lawsuit seeking to block his exit. Emmis had unsuccessfully tried to keep Big Boy by matching iHeartMedia’s $3.5 million a year offer, along with a bid of $200,000 a year to develop video and TV projects, plus access to a private jet twice a year. Those numbers didn’t go unnoticed. Emmis says in a regulatory filing that it has “locked up new or extended contracts” with “Hot 97” WQHT, New York morning host Ebro Darden and air personalities Funkmaster Flex, DJ Enuff, DJ Camillo, and urban AC WBLS (107.5) personalities Earthquake, Shaila and Déja vu. “Locking up these talents was more expensive in light of the public disclosures in L.A.,” the company says. Meanwhile, Emmis says it is working on a companywide non-compete agreement for all sales reps.

Study shows interest in customized broadcast streams. With listening to the online simulcasts of many broadcast radio stations showing little to no growth, a new study suggests the combination of curation and customization may hold the key to boosting streaming usage. Updating data first released in January, Bridge Ratings’ survey implies that broadcast radio could benefit from offering

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online radio streams that allow listeners to adjust various programming elements and music mixes to their own preference. Bridge Ratings created customizable web-only versions of six CHR, country and urban stations, each in different markets, complete with branding but with no personalities and just 90 seconds of ads per hour. It then watched how a panel of 1,500 participants responded over a three-month period. Given a choice between the broadcast simulcast of the brand and the personalized version, daily use of the customizable stations remained higher than for the simulcast approach, the study found. The number of daily occasions increased from January to April for all format users. However time-spent-per occasion of listening slipped for CHR and urban custom station users while country listeners exhibited an average increase of two minutes per occasion across the sample. The company says its ongoing study proves that customizable internet radio stations branded with their broadcast equivalent attract tune-in and usage. “We are finding through this study that curation is one of broadcast radio’s strongest attributes and both primary and occasional listeners to broadcast radio depend on radio to manage the presentation of popular music on their favorite stations,” the report concludes. “But the biggest challenge is inertia, broadcast radio moving off a sedentary internet strategy.”

LPFM proponents push FCC to clear path 250 watts. One of low-power FM’s biggest proponents in the engineering world is proposing the FCC clear the way for allowing stations to upgrade to 250 watts. “The ability for LPFM stations to upgrade is the next logical step in the growth of this service,” REC Networks founder Michelle Bradley writes in a petition. She says many low-power stations have a difficult time penetrating structures in part because their antennas often sit on top of low-rise buildings — not large towers. By boosting their output, she tells the FCC, would make LPFMs “more economically viable through increased underwriting opportunities to offset the costs of running the station.” LPFMs are today capped at 100 watts and the idea of allowing LPFMs to more than double their power isn’t a new idea, but the FCC has so far declined to approve it. That’s in part because it was working to process thousands of applications for new LPFMs and translators. Bradley argues the time has come to green-light the proposal. “This can be done while still preventing interference to incumbent full-power and FM translator services,” she insists. In fact, her analysis of 2,541 LPFMs found only 10.3% would have no path to 250 watts. The National Association of Broadcasters has opposed the suggestion in the past, arguing Congress only authorized a 100-watt service. But supporters say lawmakers were never so specific to limit wattage in the bill that created LPFM. The NAB has also challenged the hyper-local nature of a 250-watt LPFM, saying it would be the equivalent Class A station. But Bradley says even at twice the power, LPFMs would still be secondary to full-power FMs.

‘Protection parity’ sought between FM translators and LPFMs. If approved, REC Networks’ proposal that LPFMs be allowed to upgrade to 250 watts would mean there is no difference between it and FM translators from a technical standpoint. So REC founder Michelle Bradley says the time has come for the FCC to do something about a “lack of parity” between the two services when it comes to required protection. Translators are only required to protect LPFM stations on co-channel and first-adjacent channels while LPFM stations are required to protect FM translators on co-channel, first-adjacent and second-adjacent channels. “Equal treatment works both ways,” Bradley writes. “We need to eliminate the loophole that allows FM translators to easily come in on a LPFM’s second adjacent channel but a LPFM station must get a waiver to come in on the second adjacent channel of a translator.” Interference is likely to be a major issue if the FCC decides to give the 250-watts plan a fresh look. Now that LPFMs are allowed on second-adjacent channels, Bradley believes any station looking to upgrade to 250-watts in a situation that would trigger short spacing concerns should face higher technical hurdles and go through an FCC waiver process. If there is interference to a translator, then the LPFM upgrade wouldn’t be available. Yet Bradley also proposes that in order for LPFMs to expand their service, the FCC shrink the “buffer zone” around what she views as “overprotected” full-power FMs.

Xbox adds iHeartRadio to its latest model. Microsoft’s Xbox 360 has offered users access to broadcast radio streams via iHeartRadio since 2011. Now, with sales of the new Xbox One growing, it will include the music streaming service as well. “Bringing iHeartRadio to Xbox One gives gamers another great way to enjoy their favorite music,” Xbox VP of marketing Mike Nichols says in the announcement. Once users download the app, the iHeartRadio integration will allow gamers to utilize voice commands to navigate and control the listening experience without a controller by speaking to and specifying

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an action. Its gesture recognition technology will also allow users to control iHeartRadio through simple hand movements, including pushing motions to make selections or pulling motions to scroll through items. Plus, iHeartRadio will integrate seamlessly into Xbox One’s Snap view. This will allow users to “Snap” iHeartRadio to one side of the screen, allowing them to continue listening and controlling the app, even while another app or game is running in the center of the screen. “This beautifully designed app takes us one step further in our mission to be everywhere our listeners are,” iHeartRadio president Darren Davis says in a statement. On a short list of integrations, Pandora is the only other streaming music service on Xbox One. For iHeartRadio, the device is the in-home integration option, joining Android TV, Roku, Sonos, and Amazon Echo.

Earth Day 2015: Virginia gets first solar-powered college radio station. Teach by example may be the lesson plan for a Virginia college that has embraced solar power to keep the student-run station on the air. Emory & Henry College’s adult alternative WECH, Emory, VA (90.7) will be powered by 96 solar panels producing about 40 thousand kilowatts hours of electricity a year. The school says that will be enough to cover 75% of the power needed to run the transmitter. Emory, VA gets an average of 200 sunny days per year, which is slightly below the U.S. average of 205 days. The panels face busy Interstate 81. “This makes a big statement,” mass communications professor Teresa Keller says. She thinks their placement “will be conveying to a very large audience the benefits and accessibility of renewable energy.” It’s believed to be the first solar-powered FM in the Southeast, and only the second solar-powered station on the East Coast. Buying and installing the solar panel system cost about $80,000, with half of the cost being picked up the College and the other half coming from a grant from the Jesse Paul DuPont Foundation. WECH is now playing up its solar status on-air, telling listeners the station is “powered by the sun.”

Univision Consolidates on WideOrbit. Univision is going all in on WideOrbit. The Hispanic media giant has inked a deal with the advertising software provider to manage broadcast and digital advertising across its 17 radio and 21 television markets, two broadcast networks and nine cable networks. It’s one of the largest commitments ever by a national network to a single technology provider for inventory management, billing and invoicing and unit placement. For radio, it means Univision’s 68 stations will use the WO Streaming platform, formerly known as Abacast, to manage and monetize its digital audio, including the Uforia streaming service. Univision has been using WideOrbit software since 2013 for some of its business functions, cobbled together with those of other vendors. Now it will port everything over to four WideOrbit platforms: WO Network to manage sales and inventory at its national broadcast and cable networks; WO Traffic for traffic and billing at its radio and television station groups; Digital Orders to manage digital advertising transactions at its radio stations; and WO Streaming for digital audio streams. The four systems are set up to allow automated workflow from one to another. By consolidating its technology backbone, Univision says it can manage ad operations across all of its local stations and national networks from a single platform and do company-wide roll-up reporting. Univision SVP of commercial excellence and operations Sam Abiad says the technology “is crucial for helping us manage a complex media business that spans multiple platforms.”

Bustos Media reclaims Milwaukee FM from Adelante. Bustos Media has struck a deal to return into the Milwaukee market. It’s buying regional Mexican “La Gran D 104.7” WDDW from Adelante Media. Staff learned of the sale yesterday. No price was immediately available. “We are thrilled to have made one more acquisition of our former station group,” co-owner John Bustos says. Bustos Media previously owned the station from 2006 to 2010 when a restructuring put WDDW into Adelante’s hands. Bustos will begin operating the station under a local marketing agreement until closing. After several months of deal-marking, the sale will leave Adelante with just three Salt Lake stations

No bonuses at Cumulus. If you work at Cumulus Media and didn’t get a bonus for 2014, you’ve got company in the executive suite. The Cumulus management team wasn’t paid any cash or stock bonuses for last year, a just-filed SEC document shows. It’s a highly unusual move in radio and all of corporate America. The board’s compensation committee explains the decision was in part because certain financial targets weren’t met. It also says the “size and timing” of equity grants awarded in 2013 convinced the board to skip any stock awards for 2014.

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Cumulus-Colorado Springs is searching for an exceptional Market Manager to guide our 6 well positioned and impactful stations. The successful candidate will have a history of leading high performance sales teams, coaching good to great, and attracting sales all-stars. Here’s your opportunity to join our growing company and become an integral part of our stellar team in Colorado Springs by contributing to their continued success. Not many better places to live and work than in the beautiful landscape of Colorado.

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