Thursday's Radio & Media News - March 7, 2013

Pandora CEO Joe Kennedy Is Stepping Down Pandora Media CEO Joe Kennedy is stepping down, although he will stay on until a successor is found. Kennedy says, "As I near the start of my tenth year at the helm of Pandora, I am incredibly proud of the team and what we have accomplished in redefining radio. As part of our Board discussions of the road that lies ahead, I reached the conclusion and advised the board that the time is right to begin a process to identify my successor. There is a tremendous market opportunity ahead and I look forward to continuing to work with all the great people at Pandora to keep driving the business forward." Robert Kavner, Pandora's lead independent director, says, "On behalf of the Board, I would like to thank Joe for his leadership, dedication and innumerable contributions to Pandora. During his tenure, Joe and his management team created a terrific business from the ground up, and, through his stewardship during the formative stages of Internet radio, Pandora now leads with 70% market share. We appreciate his continued strong leadership and dedication to the Company through this process." And Pandora founder and current Chief Strategy Officer Tim Westergren tells us, "Over the last nine years I have enjoyed an extraordinary partnership with Joe, working with him to grow the Company and build an exceptional team. I look forward to continuing to work with Joe to achieve our goals for 2013 and to help assure a smooth leadership transition." The news that Kennedy will exit as Pandora's CEO came after the streaming music service reported a smaller-than-expected loss for the fourth quarter. But reported losses still more than doubled over the past year. The news that Kennedy will be replaced as CEO comes on the heels of the latest listenership metrics, again up significantly, and Pandora's Q4 and 2012 revenue report. In addition to record increases in audience, "Pandora Internet Radio" also reported record revenue, along with the growing losses. The company's loss widened to 4 cents a share from 3 cents loss a share last year, attributed to growing content acquisition costs, while revenue increased 54 percent to $125 million from $81 million a year ago. Pandora said the number of active listeners rose 37 percent to 67.7 million at the end of February 2013 from a year earlier, and listening hours jumped 42 percent to 1.38 billion. Pandora says it expects a loss of 10 to 13 cents a share for the full first quarter of this year, and for revenue to come in between$120 million and $125 million. Analysts currently expect a loss of 10 cents a share on revenue of $120 million. Putting a positive spin on the latest financials, Kennedy says of the Q4 and 2012 results, "We continue to monetize mobile at record levels and exceeded our expectations for the quarter. We closed the year with a record 8% share of total U.S. radio listening and record mobile monetization that cemented our leadership in mobile advertising. We have completed our technology integration with radio ad buying platforms and are rolling it out to the market. Pandora has been hiring top talent in local radio markets to further increase our share of the $15 billion radio ad market. We are now effectively the largest radio station in almost every major market and begin fiscal year 2014 with extraordinary momentum." CBS Radio Launches 'Amplify' Artist Exposure Program 'Justin Timberlake, Blake Shelton And Avicii Get Amplified' 'New Music Initiative Provides Extraordinary Exposure for Artists Across Radio, Television, Online and On-Site Events' CBS Radio makes the official announcement of its new program for how they present and promote artists on-air, online, and through live experiences with listeners. Says the announcement, "Utilizing its massive reach across the country and deep array of traditional and new media platforms, CBS Radio is taking a commanding step forward in the way they present and promote artists on-air, online, and through live experiences with listeners. Under the Amplify program, CBS Radio has created a series of exclusive national content initiatives that will grow the popularity of proven artists, as well as those on the rise across its Pop, Country, Rock, Adult Contemporary and Urban stations." RCA recording artist Justin Timberlake and Warner Music Nashville's Blake Shelton will be the first to participate in Amplify. Timberlake is preparing to debut his third solo album, "The 20/20 Experience" on March 19. Shelton's "Based on a True Story" drops on March 26. Also, we're told, Swedish DJ Avicii will get "the star treatment" from CBS Radio stations as they present their audiences with this relatively new, but already accomplished, musician from April 1-5. "Consumers have historically turned to radio to discover new music-a fact that remains true today," says CBS Radio President and CEO Dan Mason. "And with Amplify, our stations are creating additional opportunities to showcase the incredible talents of the artists whose songs are destined to be among our favorites of all time, and providing fans with a deeper appreciation of what they hear on the radio." SVP of Programming Greg Strassell adds, "Our programmers take their role in helping create the next breakthrough artist seriously. We are pleased to put forward a platform that will cultivate new music fans and drive more interest in the industry." Elements of Amplify include: IMPACT: When one of today's biggest names in music is ready to unveil their latest project, CBS Radio listeners will be sure to know about it through its IMPACT program. Extensive on-air promotion on format specific stations across the country will begin in the days leading up to the song or album debut, and a dedicated section on station websites will highlight the artist and provide an array of editorial features. LAUNCH: Chosen exclusively by CBS Radio's reputable programming team, LAUNCH artists are those rising stars of the music industry you absolutely need to be listening to. On-air programming will highlight clips from their latest release, and an extensive online companion will be available complete with artist specific pages, multi-media content and links to purchase music. ARTIST HOOK-UPS: Not your ordinary radio station event - these are once in a lifetime, money can't buy experiences. Listeners can expect front row access, intimate settings, and unusual destinations as they join their favorite artists on a thrilling musical journey. SONG INTROS: Continuing on a path CBS Radio set down several years ago intended to familiarize the audience with song titles and artists, stations will incorporate into their programming personalized intros voiced by the musicians themselves, offering candid insight into the stories and meaning behind their hit song or album. RADIO.COM: The online and mobile destination for the best in music, sports, talk and news programming, Radio.com will take an active role in engaging fans with original audio and video content including streaming, exclusive editorial features, live and on-demand concerts and events, and rich storytelling. Select CBS Television Stations will also have the ability to showcase a sampling of this programming during their local newscasts, an opportunity exclusive to CBS Radio. Read more from CBS Radio. Apple Still Seeking to Launch Streaming MusicService Reportedly Hitting Snags Over Royalty Payments Apple is still planning to launch its own streaming music service -- that some have dubbed "Apple Internet Radio" -- but has yet to reach necessary deals with the recorded music labels. It's being widely reported that Apple has been receiving resistance from the labels which see Apple's initial offer for royalties as too low. A number of reports, most citing one from the New York Post, say Apple is offering approximately six cents-per-100 streamed songs, which is almost half of what Pandora pays. Previous reports of a forthcoming "Apple Internet Radio" or "Apple iRadio" have said it would be a Pandora competitor, able to operate with lower royalties as Apple tied it in with its iTunes service to offer the labels increased download sales The latest reports note that while the labels are eager for a new revenue stream via Apple, they don't want to accept a lower offer as Pandora leads a fight in Washington to lower its own royalty rates. The Post's sources say those opposing the necessary licensing deal feel Apple should pay at least 21 cents-per-100 songs, the rate set by the Copyright Royalty Board for companies that don't own broadcast services. Services such as Clear Channel's iHeartRadio pay out about 22 cents-per-100 streamed songs. The Post says that Spotify pays the highest rate, at 35 cents-per-100 songs. According to the Post, "Music label insiders suggest Apple -- which is sitting on a cash hoard of roughly $137 billion -- ought to pay at least the rate set by the Copyright Royalty Board." Also, writes the NY Post, "Apple wants to get into the streaming radio business, in part, because it is seeing 50 percent of its iTunes revenue flow from mobile." Clear Channel Launches SXSW '103.1 iHeartAustin Radio' Clear Channel Media and Entertainment launches "pop-up" radio station "103.1 iHeartAustin Radio" -- covering the latest music and news direct from SXSW 2013. The station will broadcast through March 17 on 103.1 FM in Austin and will also be available nationally on iHeartRadio. "Every year thousands of brands, bands, artists and other industry elite gather in Austin to get a glimpse of the latest trends in music, technology and other creative arts at SXSW," says Clear Channel. "This year, 103.1 iHeartAustin Radio will bring listeners intimate performances, exclusive interviews and regular news coverage straight from its mobile studios at Empire on 7th and Red River. The broadcasts will feature coverage from SXSW's Interactive Festival which will include interviews with major brands that are announcing hot new consumers products and apps – plus, activities and events happening throughout the SXSW conferences and festivals." The live broadcast station, we're told, will take a close look at the bands of SXSW 2013 and an in-depth look back at the bands and artists that broke into the music industry throughout recent years. "103.1 iHeartAustin Radio" will also highlight the artists and DJs from Evolution, the new Electronic Dance Music (EDM) station on iHeartRadio. "Every year people from all over the globe travel to Austin to discover what’s next in music and technology," says CCME National Programming Platforms President Tom Poleman. "103.1 iHeartAustin Radio will bring the spirit of SXSW to listeners both in Austin and throughout the country via iHeartRadio – the leading platform for music discovery that provides listeners with everyday access to emerging artists." iHeartRadio will host an all-star SXSW Showcase featuring live performances by Macklemore & Ryan Lewis, Tegan and Sara, Atlas Genius and Josh Baze at The Main, located in the heart of downtown Austin on Tuesday, March 12, beginning at 9 p.m. Clear Channel will also host an official SXSW panel, "Navigating the Waters of Radio to Your Benefit," which will discuss the social relevance of radio and its importance to music discovery. The panel will be moderated by Poleman, and will feature RedOne, one of the most successful and sought-after record producers and songwriters in popular music today; David Field, President and CEO of Entercom Communications; Daniel Glass, President/CEO of Glassnote Entertainment Group; and Peter Gray, SVP of Promotions at Warner Music Group. Journal Reports Q4 Revenue Up 31% - Radio Revenue Up 14.6% Journal Communications reports fourth quarter revenue grew 31% to $124.5 million from $95 million in the year-ago period. Broadcasting revenue increased 52.9% to $77.9 million from $50.9 million, "mainly due to broadcast political revenue of $20.6 million." Within that segment, Q4 radio revenue was up 14.6% to $22.1 million. Radio political revenue is reported at $0.7 million compared to $0.1 million. On a same-station basis excluding political, total revenue gained 1.5%, local revenue grew 4.4% and national revenue decreased 8.4%. Overall for Journal, operating earnings gained 91.9% to $27.2 million. The company posted net earnings of $15 million (30 cents per diluted share) as compared to $82 million (14 cents) in the year-ago period. "Journal Communications posted excellent results in the fourth quarter with consolidated revenue of $124.5 million, up 31%, led by record political spending in the Broadcast group," says Journal Chairman/CEO Steven Smith. "In addition to the record political advertising revenue in 2012, we saw core advertising growth in television and radio and moderating revenue declines in Publishing." Looking ahead, "In the first quarter of 2013, on a same station basis excluding political, we expect total Broadcast revenue to be up in the mid-single digits over the first quarter 2012." Read more from Journal Communications. Ryan McCredden Named Houston KILT-AM/KIKK-AM Program Director Ryan McCredden is appointed Program Director of CBS Radio "Sportsradio 610 KILT-AM and "CBS Sports Radio 650" KIKK-AM, Houston, starting March 25. McCredden replaces Gavin Spittle, who returned to the company's Dallas cluster. Most recently, McCredden was PD at Journal's News Talk "104.1 The Truth" KQTH-FM and Sports Talk "The Fan" KFFN-AM, Tucson. Previously, he was Assistant PD at CBS Radio's News Talk KRLD-AM and Sports Talk "105.3 The Fan" KRLD-FM, Dallas, and the Texas Rangers Radio Network. Says SVP and Market Manager Sarah Frazier, of McCredden, "Ryan has that special ability to successfully coach on-air talent, create custom events, and raise the ratings everywhere he has worked. He is a true professional with a passion for the product and will be a steady leader for the Sportsradio 610 team." McCredden adds, "I'm thrilled to be returning to CBS Radio. Sportsradio 610 has a fantastic lineup of shows, and I couldn't be more excited to work with hosts that are as passionate about radio as I am. Add in the fact that I get the amazing opportunity to team with the AFC South champion Houston Texans, and we have all the elements needed for producing great radio." BFA Announces 2013 Quaal Leadership Awards Winners The Broadcasters Foundation of America announces the recipients of the 2013 Ward L. Quaal Leadership Awards, to be presented at the Foundation's annual breakfast April 10 at the Wynn Hotel during the NAB Show in Las Vegas. The six to be honored are: Skip Finley, Radio Executive, Managing Partner, Noepe Communications; Alan Frank, President/CEO, Post-Newsweek Stations, Retired; David Kennedy, Former President/CEO, Susquehanna Media; Mike McKinnon, President/CEO McKinnon Broadcasting; Charles Osgood, TV News Anchor, Radio & TV Personality; and, Bob Schmidt, President/CEO Eagle Communications, Retired. The Leadership Awards are given annually in recognition of career contributions to the broadcast industry and the community at large, and are named in honor of iconic broadcaster Ward L. Quaal. The breakfast is complimentary to all. The Broadcasters Foundation has provided millions of dollars in aid to colleagues who lost their livelihood through a catastrophic event, debilitating disease, or unforeseen family tragedy. Individual membership is only $150 a year. Donations also can be made to the Guardian Fund and corporate contributions are accepted through the Angel Initiative. 'Local Radio Freedom Act' Reintroduced in Senate The "Local Radio Freedom Act" is reintroduced in the Senate, following similar action in the House last month. The "Senate Concurrent Resolution 6" puts the non-binding "anti-performance tax" resolution again before both houses of the Congress. In February, Reps. Gene Greene (D-TX) and K. Michael Conaway (R-TX) reintroduced the Local Radio Freedom Act into the House. The Senate version is now reintroduced by Senators John Barrasso (R-WY) and Heidi Heitkamp (D-ND). Both versions of the "Local Radio Freedom Act" say that any new fees imposed on radio would hurt the industry, as well as businesses and the U.S. consumer in the end. "Whereas local radio stations provide free publicity and promotion to the recording industry and performers of music in the form of radio air play, interviews with performers, introduction of new performers, concert promotions, and publicity that promotes the sale of music, concert tickets, ring tones, music videos, and associated merchandise." CBS Radio First to Use Triton Digital’s 'a2x' Exchange CBS Radio is the first to join the new a2x digital audio advertising exchange from Triton Digital that enables advertisers to programmatically buy targeted online and mobile audio inventory in real time. The a2x solution provides a system for managing, buying and selling third party advertising campaigns. Says CBS Local Digital Media President Ezra Kucharz, "Joining Triton’s a2x exchange will create additional demand for our inventory, providing a great compliment to our strong traditional sales channels. Being able to offer agency trading desk access to our inventory in this manner allows us to participate in a new revenue stream targeting mobile and digital budgets." Says Triton Digital COO Mike Agovino, "Triton is pleased to welcome CBS Radio's premium inventory to the a2x platform. There is no higher quality radio brand name than CBS Radio and we are extremely proud to welcome them as a ground floor tenant in the a2x marketplace. The beta phase of a2x is nearly complete with significant success achieved for early adopter advertisers. Additional demand side participants continue to come in every week and going live with CBS Radio will help drive demand moving forward." Katz's Mary Beth Garber to Teach SCBA Sales Classes Katz Radio Group EVP of Radio Analysis and Insights Mary Beth Garber will teach classes this spring for the Southern California Broadcasters Association's Radio Sales Course program, presented on behalf of the SCBA's General Sales Managers Council, beginning March 12. For the past 15 years, the SCBA has provided these 11-week courses to radio sellers for further training on the basics of selling, prospecting, developing data-based sales and other fundamental topics, which culminate in a presentation to a panel of general sales managers. Class instructors include managers from Southern California radio stations and other broadcasting affiliates. As the former President of the Southern California Broadcasters Association, a position she held for 13 years, Garber originally created the program and helped design the coursework. She continues to facilitate and oversee the program's content and execution. "I look forward to the classes we have lined up for this spring's session, as I believe this program is an excellent tool to help the next generation of radio sellers build a solid foundation for sales," says Garber. "Leading these classes and discussions is a great way to share best practices and ideas, and to also provide encouragement to those who are just beginning in our business. Most of all, we're trying to truly cultivate the talent and skills today's radio sellers need to succeed in our evolving media environment." Garber's classes will include: "Understanding Your Product," "What's In It For Them? The Basics of Selling," and "The Big Idea & Building Sales Strategies From Prospecting to Closing the Deal." Garber will also lead sales managers in the critiques of the participants' final presentations. PRN Fans Will Be Able to Continue to TuneIn TuneIn and the Performance Racing Network (PRN) will continue their alliance that extends the reach of PRN's programming, according to a joint announcement of an extension of their partnership. TuneIn now carries every NASCAR race. Fans hear live coverage of all 36 races of the Sprint Cup Series, including the Coca-Cola 600, the Brickyard 400, and the Bank of America 500, all for free, via TuneIn's streaming service. In addition to broadcasting 13 NASCAR Sprint Cup Series races and 12 NASCAR Nationwide Series races, PRN offers racing fans programs such as "Fast Talk" - "Pit Reporters" and "Garage Pass." In conjunction with the new alliance with Motor Racing Network, TuneIn can now offer fans around the world access to the complete roster of NASCAR programming. "The Performance Racing Network is committed to bringing exciting racing action to fans wherever they may be," says PRN President/General Manager Doug Rice. "With the help of TuneIn, we are able to continue this mission and offer fans unprecedented access to NASCAR news and events. We were so pleased with the TuneIn partnership last year. It made all the sense in the world to continue into 2013." TuneIn VP of Programming Kevin Straley adds, "TuneIn is proud to be aligned with a company committed to producing action-packed, live racing coverage. We are excited to offer PRN's loyal listeners and racing fans worldwide access to their favorite programming, whether they're home, at work or on the go."