Wednesday's Radio & Media News - March 20, 2013

Commissioner Robert McDowell Stepping Down from FCC FCC Commissioner Robert McDowell announced at today's monthly public meeting that he will soon be stepping down from the Commission. McDowell joined the FCC in 2006 and is its longest-tenured Commissioner. His term had been set to expire in June of 2014. McDowell said at the meeting, "After nearly seven years of carrying out the incredibly high honor of serving the American people at the FCC, it is time to turn more of my energies towards an even higher calling: serving my family. After a great deal of deliberation, I have decided that I will step down as a commissioner of the Federal Communications Commission in a few weeks." He added, "Today's announcement is not a farewell. As you know, I don't do well with those, so let's avoid all of that for now and tackle that challenge another day. I will also save most of my expressions of appreciation for a later date. But I would be remiss if I didn't offer up some of the bigger thank-yous right away, such as to: God, my parents, my beautiful bride Jennifer, our three amazing children, as well as our large family-at-large, friends, all of my colleagues on the Commission -- both past and present, and the talented and dedicated public servants throughout the FCC, especially all of the wonderful and tireless professionals who have worked on my team in my office. Please keep in mind that trying to make me look good day after day as we fought for freedom must have been quite a challenge for them. I would also like to thank the individuals who literally handed me this job, twice: first and foremost, Senator Ted Stevens, President George W. Bush, Senator Mitch McConnell and President Barack Obama, as well as many Members of Congress. Thank you for placing such enormous trust in me. Again, this is not a time for farewells, I’m just announcing my plans to step down sometime soon. So what am I doing next? I will be talking to the FCC’s Chief Ethics Officer, Patrick J. Carney, to make sure that my departure is in full compliance with the letter and spirit of all of our ethics rules. Beyond that, I have no plans other than to take my family on a much-needed vacation starting this weekend." McDowell joined the Commission in 2006 to fill the unexpired term of then Chairman Michael Powell. His first term ended June 1, 2009, but he was renominated by President Obama and confirmed for a new, five-year term. There had been some talk of McDowell being named FCC Chairman if Mitt Romney had defeated President Obama in last year's election. McDowell's Chief of Staff, Angela Giancarlo, announced last month she was exiting. There are also prevailing rumors that FCC Chairman Julius Genachowski will exit later this year, although to date Genachowski has denied any plans to step down. After McDowell announced he will be exiting the Commission," NAB President and CEO Gordon Smith offered the following statement: "Robert McDowell has been a remarkably gifted public servant during his seven-year tenure at the FCC. His good humor and grace have been matched only by his ardent support for fair media ownership rules and full-throated support for a vibrant First Amendment. Commissioner McDowell will succeed in whatever path he chooses, and NAB wishes him well." Genachowski also announced that FCC Chief Counsel Sherrese Smith will be leaving the agency in the coming weeks as well. "Now it's time for a difficult goodbye," said the FCC Chairman. "Sherrese Smith, my Chief Counsel and the last remaining member of my original team of legal advisors, is leaving the FCC. Sherrese's expertise in media, cable and broadcast issues is unmatched in the industry, and her list of accomplishments over the past four years is remarkable. She brokered the agreement with mobile providers to help end bill shock -- a problem that costs millions of U.S. consumers hundreds, and sometimes thousands of dollars." Smith has served as the agency's General Counsel since January 2012. . UPDATED: Michael Baisden Exits Cumulus Media Networks Nationally syndicated radio host Michael Baisden originally said that he's leaving radio, but it turns out that he's actually leaving Cumulus Media Networks and intends to return to radio. Wednesday morning, he posted on Twitter: "At 3pm ET today, Michael and George [Willborn] will begin saying goodbye after 10 years on radio. Tell everyone to tune in and call in to show some love for the most thought provoking, funny, and socially active shows ever to come to radio!" He also posted a commentary on Facebook: "It’s Not About The Job It’s About The Journey (Yes, I'm leaving radio)." Baisden, an author and speaker, has been hosting a radio show since 2003. His afternoon show has most recently been syndicated by Cumulus Media Networks. "The Michael Baisden Show" has recently been heard on stations in 78 markets nationwide with over 8 million listeners daily. His media career began when he left his job driving trains in Chicago to self-publish "Never Satisfied" -- and began touring the country selling books out of the trunk of his car. Baisden has also hosted two national television shows, and has produced three films. Recently, however, he has lost some major market radio affiliates. Cumulus declines comment at this time, but suggests it may be a ploy during "ongoing negotiations." UPDATE: Meanwhile, in a later and more formal announcement, Baisden says he will end his current show March 29, but he will be back "sooner than you think." It appears that he's leaving Cumulus Media Networks, rather than radio, and expects to return with a different syndicator. However, even this is spurring suggestions that he's attempting to get a better deal with Cumulus than what is currently being offered. UPDATE: According to the latest update from Baisden, the "goodbyes" he promised Wednesday morning won't happen. He now posts on Facebook that Cumulus Media Networks has "locked out" the staff of his show from the Cumulus studios. (The "Lock Out" graphic seen here is from that update.) The full Facebook post follows: 'The Michael Baisden Show Staff has been "Locked Out" of Cumulus Studios...really Cumulus?' "In the words of Rodney King, 'Can't we all get along?' Just because we couldn't come to an agreement is no reason to deprive the listeners, our affiliates, and our advertisers of only 9 days to say goodbye and show our appreciation. All their action does is make me more determined than ever to come back! And next time there will be no middlemen between me, my affiliates, and my listeners. Lesson learned! Now it's time to get to work on the return of the Best Show On Radio... and I'll be kicking butt and taking names. I'll miss you family, stay tuned to Facebook and Twitter for my daily inspiration post and updates on the return of The MB Show! The journey continues!!! -- Michael Baisden P.S. You'll hear pre-recorded shows through March 29th. Shame, Shame, Shame... but it is what it is, let's move on, we have lots of work to do!" Is what we've "officially" now heard the end of this story? RadioPro65 posts at RadioDiscussions.com, "The unconfirmed word (that's yet to have been published anywhere) is that Cumulus wanted Baisden to stay, but told him he'd have to agree to less money as Cumulus continues its expense-cutting everywhere it can. They were at an impasse when Baisden decided to either actually leave or attempt a push to get a better offer by the original post that he was 'leaving radio.' Promoting they'd be saying goodbye at 3pm ET, and until 3/29, drew the response from Cumulus to block that from happening with the 'lock out.' The weird thing, though, is that there's a 'slim chance' there may still be an agreement, and Baisden will return via Cumulus Media Networks, although that may be less likely now. (But not impossible!) Cumulus still hasn't said anything on the record except that they won't publicly discuss the situation during 'ongoing negotiations'." . Pandora CFO Mike Herring: Music Costs to Shrink to 40% of Revenue Pandora expects the royalties it pays to artists and recorded music labels to decline to 40 percent of revenue from about 60 percent now. Pandora's new CFO Mike Herring, who joined the company in early February, says the streaming music service expects to reach that goal over the next several years. Herring made that assessment Tuesday at an investor conference sponsored by Roth Capital Partners in California. Despite all of its claimed success in competing with terrestrial radio, "Pandora Internet Radio" has yet to become profitable or even reach a breakeven point, as costs continue to be greater than revenue. Pandora's biggest cost is royalties for the recorded music it offers, and it has been seeking to reduce its royalty rates while increasing advertising revenue. Herring says the company -- officially Pandora Media -- hopes to increase ad revenues with targeted ads and interactive features which will enable Pandora to levy a premium over radio spots. Bloomberg reports that Herring said the company "is working to close the gap between its ad revenue, now at about 1 percent of the radio industry’s total, and its 8.5 percent listener share." The CFO, however, admits that “it’s a long road” from where they are to where they need to be. Pandora is also preparing for "a long debate" on setting royalties for 2016 and beyond, according to Herring. Bloomberg notes that a two-year arbitration process to set new rates begins in January 2014. . WDAE-AM/Tampa Host Steve Duemig Off the Air in Contract Dispute Longtime Clear Channel Sports Talk WDAE-AM, Tampa, host Steve Duemig is off the air in a contract dispute, and may be missing from his afternoon show for some amount of time. Duemig tells Tampa Bay Times Media Critic Eric Deggans, "They're benching me and paying me." The host who told fans on Facebook and Twitter that he wouldn't be on the air, after Clear Channel executives notified him. "I’m still under contract; ready, willing and able to work." Duemig says his contract allows for negotiating with other companies 60 days before the agreement ends in May, but Clear Channel executives pressured him to sign before that window opens. There are reports from the market that CBS Radio's "98.7 the Fan" WHFS-FM would like to have Duemig join them. Deggans writes that Clear Channel executives could not be reached for comment, but Duemig's name "seemed to be removed from the station website." We've now verified that his name is indeed missing from the "Tampa Bay's Sports Radio 620" WDAE-AM website. Tom Krasniqi is covering the afternoon show that Duemig normally hosts, although there is no afternoon show currently listed on the website. "I'm surprised," says Duemig. "I’m planning on exercising my right to explore other options." Duemig has been with WDAE-AM since it launched its Sports Talk format in 1996. He worked for "1350 The Fan" (Now "ESPN 1350") WFNS-AM, licensed to Blackshear, Georgia, for five years prior to WDAE-AM. It was at WFNS-AM, which serves the Tampa Bay market, that he first became known as "The Big Dog." Former L.A. Radio Host Gets 10 Years in Prison for Ponzi Scheme California investment manager and former financial advice radio show host John Farahi has been sentenced to 10 years in federal prison for running a $24 million bond Ponzi scheme, according to Courthouse News Service. Farahi's Farsi-language show aired on "Radio Iran" KIRN-AM, Los Angeles. Farahi, 56, who ran Beverly Hills-based New Point Financial Services, also was ordered to pay $24,366,617 in restitution to 59 victims. He pleaded guilty to four felonies in June 2012 -- mail fraud, loan fraud, selling unregistered securities and conspiring to obstruct justice. Farahi, said the U.S. Attorney's Office, collaborated with his corporate counsel to cover up the fraud. Farahi admitted in his plea agreement that his scam cost victims more than $7 million, but prosecutors showed that the actual losses were more than $24 million. Farahi claimed he would use his victims' money to buy corporate bonds backed by the Troubled Assets Relief Program, but used it to make Ponzi payments and for other unrelated things. His outside counsel, David Tamman, was convicted of 10 counts last year, including obstruction of justice, altering records in a federal investigation, and being an accessory after the fact to Farahi's crimes. Tamman was suspended by the California Bar and will be sentenced May 20. The SEC sued Farahi and New Point in January 2010, and eventually froze his assets and appointed a receiver for New Point. . Launchpad Digital Media to Rep Four NYPR Programs, Launchpad Will Also Add Those Shows to PodcastOne Four New York Public Radio programs will now be represented for advertising sales by Launchpad Digital Media. The NYPR shows include "Freakonomics" - "RadioLab" - "Here's the Thing with Alec Baldwin" and "On the Media." They will also be available on PodcastOne.com, Launchpad's new destination website for podcasts. Launched last month, PodcastOne is already home to podcasts including CBS News, Adam Carolla, Dennis Miller, Ron Paul, Penn Jillette, Laura Ingraham, Maria Menounos, Tom Green and Dr. Drew. Says Westwood One founder and Launchpad/PodcastOne Chairman Norm Pattiz, "New York Public Radio produces some of the most compelling, popular programming and we are proud to welcome these powerhouse audience magnets to the Launchpad/PodcastOne.com family." New York Public Radio Director of Digital Underwriting Sarah van Mosel tells us, "We're so excited that Launchpad Digital Media has recognized the value of reaching the on-demand audience. By harnessing this amazing content, Launchpad is paving the way for brands to finally connect intimately with listeners on a grand scale." Launchpad President Kit Gray adds, "These four podcasts alone are already downloaded more than 10 million times every month. We are delighted to give our clients access to this loyal, educated and affluent audience that will continue to grow." . NPR Launches 'Generation Listen' Awareness Campaign With online radio making inroads in listening habits, especially among younger demographics, NPR is looking to raise awareness among young adults with a new campaign called "Generation Listen." MediaPost's MediaDailyNews reports that the initiative, unveiled at SXSW, is intended to both build an audience that will sustain NPR through donations and generate political support for the network. The "Generation Listen" home page on NPR's website tells visitors that "we want to hang out – whether in cyberspace, over the air, or through events – and exchange ideas and smart conversation. It's time for us to get better at finding you where you are and what is most relevant to your lives." MediaPost notes that last month, NPR unveiled an ad campaign including TV, billboards, rail transit, print and digital advertising. That campaign targets adults ages 25-44 with at least some college education, and is being funded by a $750,000 grant from the Ford Foundation. According to NPR's data, the median age of the network's broadcast listeners is 49. Per Arbitron, the median age of Classical music listeners, a key NPR audience segment, steadily increased from 56 in Spring 1997 to 65 in Spring 2009. MediaPost notes, "While NPR's broadcast radio audience may be aging, it also appears to be growing. Over the last decade, Arbitron found that NPR's weekly radio audience has increased from 19.5 million in 2001 to 26 million in 2012." . Chicago's WLS-AM Hires White Sox Broadcaster Steve Stone Cumulus Media News Talk WLS-AM, Chicago, has hired White Sox broadcaster Steve Stone as a daily contributor. Starting April 1, Stone will be heard weekdays as the station’s baseball correspondent on either the Roe Conn and Richard Roeper afternoon show or the Bruce Wolf and Dan Proft morning show. “I am very happy to join the 89 WLS family,” says Stone. "I love the fact they are adding another local sports element. I am equally as happy to be the one chosen to talk baseball on both sides of town as well as the national baseball scene." Earlier this year Conn and Roeper began a full hour of Sports Talk with Lou Canellis at 5pm weekdays. . Katz CBS Radio Sales/Entercom Radio Sales Promote Brad Young Katz Radio Group's CBS Radio Sales and Entercom Radio Sales announce the promotion of Brad Young to VP of Sales in Los Angeles. "We appreciate and value Brad’s radio sales expertise and his contributions to our team in Los Angeles," says CBS Radio Sales and Entercom Radio Sales President Jana Cosgrove. "We congratulate him on this well-deserved promotion and look forward to his continued success and achievements." Young joined the sales team at Katz as an Account Executive in 2010. Previously, Young was an Account Executive for McGavren Guild Radio Sales. . TuneIn and Dial Global Expand Sports Content Distribution TuneIn and Dial Global announce an agreement for expanded distribution of select sports content via the TuneIn streaming service. "The broad sports offering tips off with full, live coverage of the 2013 NCAA College Basketball Tournament," says the announcement. Starting with 2013 NCAA Division I Men's Basketball Championship play-by-play sports broadcasts, Dial Global content will be available to TuneIn listeners "around the world on over 200 devices including smart phones and tablets, connected vehicle dashboards, Internet home entertainment systems and online at www.tunein.com." Says TuneIn VP of Programming Kevin Straley, "TuneIn is excited to align with a company known for delivering superior programming. We're thrilled by the opportunity to deliver exciting play-by-play basketball to all our listeners around the world." .