Monday's Radio & Media News - June 3, 2013

Townsquare Media Group to Acquire Certain AOL Music Assets Townsquare Media Group announced today that it has entered into an agreement to acquire AOL Music assets The Boot, The BoomBox and NoiseCreep as well as ComicsAlliance from AOL Inc. The new digital properties will join Townsquare Media Group’s national digital business, "a portfolio of premium music and entertainment websites which reach over 52 million U.S. monthly unique visitors and include Taste of Country, PopCrush, ScreenCrush and Okayplayer." According to a news release, "AOL Music is considered a pioneer in digital music, creating The Boot, The BoomBox and NoiseCreep to expand its scope into Country Music, Hip Hop and R&B and heavy metal, respectively. ComicsAlliance is one of the most important and established online voices in the comic book industry. The site, a three-time and 2013 nominee for the industry's esteemed Eisner Award, has hosted its own panel at ComicCon and has been featured on The Daily Show and in New York Magazine." “The acquisition of these assets from AOL represents the continued rapid growth of Townsquare Media’s portfolio of owned and operated music and entertainment websites,” says Townsquare Media Group Chairman and CEO Steven Price. “Adding these premium brands to Townsquare Media’s comprehensive offering propels our scale beyond today’s 52 million US monthly unique visitors, allowing advertisers and agencies even greater access to this highly engaged and demographically desirable audience.” As part of the transaction, members of the AOL Music and ComicsAlliance teams will be working with Townsquare Media’s team going forward. Terms of the agreement were not disclosed. Clear Channel Signs Revenue Sharing Deal with Fearless Records Clear Channel Media and Entertainment announces its latest revenue sharing deal -- this one with Rock label Fearless Records. "The agreement will allow Fearless Records’ artists to receive revenue from play on Clear Channel’s digital and broadcast radio stations," says the announcement. Fearless Records, founded in 1994, first gained recognition for helping to launch the careers of popular rock bands such as Plain White T's, At The Drive-In and The Aquabats!, and has since represented a diverse array of rock groups including Breathe Carolina, Mayday Parade, Eve 6, Piece The Veil, and The Summer Set. The label, based in Huntington Beach, CA, is also known for its annual series of compilation albums titled Punk Goes…, which feature bands such as The All-American Rejects, Rise Against, and Yellowcard playing covers of songs outside their usual genres of music. "Fearless has helped numerous musicians build their careers, helping them become prominent names in rock music. But without radio play, none of it would have been possible," says Fearless Records President Bob Becker. "Radio is where we introduced these successful artists to their fans and where fans go to discover new music from the bands they love, and we look forward to breaking more rock artists with the help of Clear Channel, on both broadcast radio and digitally, in the future." Clear Channel CEO Bob Pittman tells us, "These market-based partnerships with record labels are part of Clear Channel's efforts to help build a sustainable business model for Internet radio. We want to make sure that our fans can listen to the music they want whenever and wherever they want it. Fearless has helped launch the careers of a number of successful artists and we are excited to partner with them to continue to help listeners discover new music through the power of radio, whether on-air or online." Clear Channel’s agreement with Fearless follows several recent similar agreements, including Big Machine Label Group, Glassnote Entertainment Group, DashGo, rpm Entertainment, Robbins Entertainment, Naxos and Wind-up Records. Marty Bender Named Chicago 'Rewind 100.3' Program Director Hubbard Adult Hits "Rewind 100.3" WILV-FM, Chicago, names veteran programmer Marty Bender as Program Director -- replacing Barry James, who retired from radio last month after 20 years with the Chicago stations. Says Hubbard SVP of Programming Greg Solk, "We believe with Marty, we have found a Programmer with the perfect balance of programming savvy, branding vision and mad scientist. We are looking forward to welcoming Marty into our Hubbard fraternity." Bender's resume includes over two decades in Indianapolis with Clear Channel's Rock "Q95" WFBQ-FM and the "Bob and Tom" syndicated morning show. Other stops include WWWM/Cleveland, WSKS/Cincinnati, WRIF/Detroit and VP of Operations for Premiere Radio Networks. Says Bender, "Sincere thanks to Greg Solk, Jerry Schnacke and the entire staff at Hubbard Chicago for the opportunity and for the warm welcome to their great station, company and city. To me, Chicago is still the greatest radio market in the country, and it’s my desire is to help them craft Rewind 100.3 into America’s best sounding Adult Contemporary/Adult hits station." New Haven's 'KC 101' Names Adam Rivers APD/Afternoon Host Clear Channel CHR-Top40 "KC 101" WKCI-FM, New Haven, Connecticut, names Adam Rivers as Assistant PD and afternoon host, starting June 10. Rivers joins "KC 101" from "98.3 Kiss FM" WKSI-FM, Winchester, Virginia, where he was Program Director and afternoon host. He also served as the Digital Content Director for four CCME Winchester radio stations and as a Color Commentator on WMRE Sports Radio. Rivers previously worked at Hall Communications' WILI/Willimantic, Connecticut, as APD/MD and night host. Rivers also spent time at Citadel Broadcasting WMAS/Springfield, Massachusetts, and Pamal Broadcasting's WZRT/Rutland, Vermont. "Growing up I idolized KC 101. I'm excited to return to the region and work with the talented programming, promotional, digital and sales teams at WKCI," says Rivers. "Thanks to the Clear Channel New Haven team for this tremendous opportunity and the Clear Channel Winchester team and David Miller for a great year of learning and fun." Says CCME New Haven Program Director JB Wilde, "While searching for a great programmer and talent to add to the iconic KC 101 brand, Adam’s passion and drive really stood out. I’m thrilled to have Adam join our team and bring his unique talents and perspectives to New Haven." Donnie Simpson Considering Return to Radio Exploring opportunities to return to radio, Urban Radio veteran Donnie Simpson signs with Ed Pearson, owner of talent and program development company Esome Media Group and President of Doug Banks Media, to explore opportunities. Says Simpson, "I consulted with my management team, looked at the landscape and after careful deliberation, decided Ed was the right person to partner with. He knows radio and he's a friend. I'm confident that Ed will deliver something really kool." Pearson tells us, "Donnie brings tremendous value to the radio and entertainment industries because he's a proven ratings winner with a timeless brand. I look forward to planning his return to radio and finding the right partners to do that with." Simpson started his radio career at WJLB in Detroit when he was 15 years old. After eight years on Detroit airwaves, he moved to Washington DC to host the morning show and serve as Program Director at WKYS-FM. In 1993, he accepted an on-air position at WPGC-FM. At the same time Simpson's television career took off in the early 1980s when he was the backup sports anchor for George Michael on NBC's WRC-TV in DC. This led to 14 years at BET, where he started as one of the nation's first video jockeys hosting "Video Soul." With Simpson's announcement of signing with Pearson, there's speculation that the Urban Radio personality might be in line for a show via Doug Banks Media. Apple Reportedly Signs 'iRadio' Agreement with WMG Apple has reportedly cleared another hurdle in the long delayed launch of its "iRadio" streaming music service by reaching an agreement with Warner Music Group (WMG). Reports say Apple has also signed a deal with Warner Chappell publishing. One report circulating today says, "Some insiders believe the service could be ready for its debut at this year’s Worldwide Developers Conference." Citing people familiar with the ongoing talks, Apple is reported to have inked a deal with Warner over the weekend for both recorded music and music publishing rights, adding to an existing arrangement with Universal Music Group for recorded music, reports The New York Times. The first rumors about Apple’s "Internet Radio" service surfaced last fall, but as we've reported, the actual launch of "iRadio" has hit many snags since. Foremost, the music companies were reported to have attempted to get more than Apple was offering, demanding higher royalty rates and minimum payments from Apple than they have from other companies. Most recently, reports have claimed that Apple has been offering a hybrid payment arrangement to the record companies, which would offer both royalties per track streamed, and a share of iRadio’s advertising revenue to the publishers. According to the latest reports, the "iRadio" service will be mainly ad supported, much like established services Pandora and Spotify. No word on if Apple will offer a “premium” subscription that would remove ads for users. A possible iTunes connection would allow users to easily purchase tracks they would hear on iRadio. Clear Channel Communications Closes on Debt Restructuring Clear Channel Communications has closed on its previously announced private offer to exchange up to $2 billion aggregate principal amount of term loans under its cash flow credit facilities for a like principal amount of newly issued CCU 9.0% priority guarantee notes due 2019. Because in excess of $8.6 billion in aggregate principal amount of term loans was submitted for exchange in the exchange offer, the amount of each lender's term loans that was accepted for exchange was reduced by a proration factor of 23.0590%. As a result of the application of the proration factor and rounding, CCU issued an aggregate principal amount of $1,999,815,000 of the Notes. The exchange offer, which was only available to eligible lenders under CCU's cash flow credit facilities, was made pursuant to an Offering Circular dated October 12, 2012, as supplemented on October 18, 2012, and was exempt from registration under the Securities Act of 1933, as amended. Concurrently with the closing of the exchange offer, CCU entered into an amendment to the agreement governing its cash flow credit facilities. The Amendment, among other things: permits exchange offers of term loans for new debt securities in an aggregate principal amount of up to $5.0 billion; provides CCU with greater flexibility to prepay tranche A term loans; following the repayment or extension of all tranche A term loans, permits below par non-pro rata purchases of term loans pursuant to customary Dutch auction procedures whereby all lenders of the class of term loans offered to be purchased will be offered an opportunity to participate; following the repayment or extension of all tranche A term loans, permits the repurchase of junior debt maturing before January 2016 with cash on hand in an amount not to exceed $200 million; combines the term loan B, the delayed draw term loan 1 and the delayed draw term loan 2 under the cash flow credit facilities; preserves revolving credit facility capacity in the event CCU repays all amounts outstanding under the revolving credit facility; and eliminates certain restrictions on the ability of Clear Channel Outdoor Holdings, Inc. and its subsidiaries to incur debt. Upon the consummation of the exchange offer, approximately $9.3 billion in aggregate principal amount of term loans was outstanding under the cash flow credit facilities. Says Clear Channel Communications, "The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior basis by CCU's parent, Clear Channel Capital I, LLC, and all of CCU's existing and future domestic wholly-owned restricted subsidiaries. The Notes and the related guarantees are secured by (1) a lien on (a) the capital stock of CCU and (b) certain property and related assets that do not constitute "principal property" (as defined in the indenture governing certain existing senior notes of CCU), in each case equal in priority to the liens securing the obligations under CCU's cash flow credit facilities and existing priority guarantee notes and (2) a lien on the accounts receivable and related assets securing CCU's receivables based credit facility junior in priority to the lien securing CCU's obligations thereunder. In addition to the collateral granted to secure the Notes, the collateral agent and the trustee for the Notes entered into an agreement with the administrative agent for the lenders under the cash flow credit facilities to share in a certain percentage of any proceeds realized on collateral consisting of principal properties. The indenture governing the Notes contains a "most favored nation" provision that provides that if the Company issues debt securities in future debt exchange offers that contain certain specified terms that are more favorable to holders of those debt securities than the corresponding provisions applicable to holders of the Notes, the Company will be required to offer to exchange all of the Notes for the same debt securities." "We are pleased with the success of this debt transaction and gratified that it was so significantly oversubscribed," says EVP and Chief Financial Officer Tom Casey. "We appreciate the support from our sponsors and our lenders for the amendments to our credit facilities that made this transformational transaction possible. As the latest step in our continuing refinancing strategy, it will also provide us greater flexibility to manage our debt maturities in the future. We believe that this transaction reflects investor confidence in the Company's business strategy and performance." The company's announcement tells us, "The Notes and related guarantees were offered only in reliance on exemptions from registration under the Securities Act. The Notes and the related guarantees have not been registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from the Securities Act and applicable state securities or blue sky laws and foreign securities laws." Saul Levine Purchases Another Monterey Station Following his recent purchase of "ESPN 97.9" KYZZ-FM from Buckley Radio, Saul Levine announces a second acquistion in the Monterey-Salinas-Santa Cruz, California, market -- his Mount Wilson Broadcasters' purchase of Religious KNRY-AM from Immaculate Heart Radio. We recently reported the $1.15 million deal for KYZZ-FM, minus the ESPN affiliation, and told you it was expected the station would be used to expand Mount Wilson's Classical "K-Mozart" network of stations. They already include KMZT-AM and KMZT FM. Levine's Mount Wilson also operates "Go Country" KKGO FM, Los Angeles. Levine says he also plans to acquire another (unspecified) FM in California -- apparently also in the Monterey-Salinas-Santa Cruz market area. Levine won’t say what he’ll put on KNRY-AM, except that it will be "innovative programming to serve the needs of the market.” That deal was brokered by Doug Sherman. Says Levine, "KNRY has a historic reputation operating out of the Cannery Row location surrounded by fine hotels, restaurants, the Monterey Sea Life Museum, and remnants of the gigantic fishing industry that once thrived on Cannery Row. KNRY has a huge service area due to the fact the 209-foot tower is situated literally in Monterey Bay and the ocean." Although IHR will lose the AM signal for its Catholic programming, they tell us that it will still air on their KYAA-AM, which was donated and began simulcasting KNRY-AM in April. SAG-AFTRA Overwhelmingly Approves New Commercials Contracts A new contract for radio and television commercials has been overwhelmingly approved by SAG-AFTRA members. The union says 96% of members okayed the three-year contracts with the advertising industry. The deal, we're told, will result in $238 million in wage increases and other payments for all categories of performers. The contracts are retroactive to April 1, 2013. The 2013 SAG-AFTRA Commercials Contract and the 2013 SAG-AFTRA Radio Recorded Commercials Contract are the first major contracts negotiated by SAG-AFTRA as one union since last year's merger. Says SAG-AFTRA National Co-President and Commercials Negotiating Committee National Chair Roberta Reardon, "The significance of this ratification is two-fold. Not only are these the first major contracts negotiated as SAG-AFTRA, but the contracts’ provisions provide for great improvements in the lives of our members and their families. I am grateful to the SAG-AFTRA members and staff who served alongside me on the negotiating team for all of their hard work." FCC Commissioner Ajit Pai to AM Radio: 'You've Got A Friend' FCC Commissioner Ajit Pai tells AM broadcasters "You've got a friend in me." Speaking at the Missouri Broadcasters Association Convention, Pai discussed the importance of AM radio, as a source for dispensing vital news and information during emergency situations. According to a transcript of his remarks, provided by the FCC, Pai told the broadcasters: "I’d like to thank the Missouri Broadcasters Association for inviting me to introduce today’s panel on AM radio revitalization. Eleven days ago, I was reminded of the critical role that broadcasters play when disaster strikes. As severe weather threatened Central Oklahoma, local radio and television stations warned residents to take cover. Those warnings saved more than a few lives when an EF-5 tornado barreled through the town of Moore thirty-six minutes later. For many of you, the tragedy in Oklahoma probably brought back memories of the catastrophic tornado that struck Joplin just a little over two years ago. In the wake of the Joplin tornado, when mobile phone service and the Internet were all but wiped out, broadcasters led by KZRG-AM 1310 provided around-the-clock, uninterrupted coverage for nine consecutive days. KZRG told residents how to get disaster relief and connected people in need with people who could help. The residents of Moore, Oklahoma have a long road ahead of them, but if they need inspiration for how to rally and recover, they can look to Joplin as a model. The story of KZRG demonstrates the importance of AM radio in times of crisis. But AM radio plays an important role in towns throughout the United States every single day. AM stations cover local politics and host debates about local issues. They cover community events, such as high school sports. And they reach out to all parts of society, with programming targeted at minorities, people who speak foreign languages, and the elderly. We all know that AM broadcasters today face a lot of challenges. Statistics tell the story. "In 1978, half of all radio listening was on the AM dial; in 2010, that number was only 17%. For listeners under the age of 35, that percentage drops to single digits. And since 1990, the number of AM stations has decreased while the number of FM stations has almost doubled. Why is this? Based on my own experience, AM signal quality seems to be a major factor. Due to widespread interference, it seems to get tougher each day to receive a clear AM signal. To address these challenges, I proposed last year that the FCC launch an AM Radio Revitalization Initiative. The last time the FCC comprehensively reviewed its AM radio rules was over two decades ago. I think it’s time we do so again. Since I made this proposal, I’ve been amazed by the outpouring of support from broadcasters across the country. They’ve shared many ideas with me for improving the AM band, and I know that you'll be discussing some of them today. Such as: How can the FCC make it easier for AM broadcasters to obtain an FM translator? Should we eliminate the AM ratchet rule? Should we replace the current minimum efficiency standard with a minimum radiation standard? Should we modify community of coverage standards? And what about the long-term future of the band? Should our goal be to transition stations to all-digital? Or are there other options we need to think about? These are just a few of the questions that I hope you’ll address during today’s panel. And in the time to come, I’d like you to continue to “show me” your proposals on AM radio, as a good Missourian might say. I'm sorry that I couldn’t be with you, but I do wish you all the best for a successful convention. And to quote Randy Newman, I want all broadcasters to know that when it comes to the AM band, 'You’ve got a friend in me'." New York City's 'Hot 97' Receives Service to America Award Emmis Communications' "Hot 97" WQHT-FM, New York, has been honored with the 2013 Service to America Radio Award from the NAB Education Foundation (NABEF) for its response to Superstorm Sandy. The award honors broadcasters for individual campaigns, projects or programs that serve the public good or otherwise provide exemplary service to their local communities. "Hot 97" created its "Hip Hop Has Heart Foundation" to "use the power of media to respond quickly when tragedy strikes its listeners." Says NABEF President Marcellus Alexander, "The important role that broadcasters play in the lives of people in their communities every day is undeniable. Whether providing lifesaving information as first informers in an emergency or meeting basic needs through food and clothing drives, the winners this year exemplify the true meaning of community service." In the wake of Superstorm Sandy, the "Hot 97 Hip Hop Has Heart Foundation" was prepared to respond to the overwhelming needs of the community, notes NABEF. During the storm, "Hot 97" stayed on the air through widespread regional power outages, providing for many the only connection to news and information during and immediately after the storm. In the days following, "Hot 97" ran continuous announcements providing critical information about disaster-relief locations and assistance. In addition, the station's on-air personalities and street team, as well as influential artists and public figures, provided relief to the community through fundraising and by traveling the tri-state area handing out coffee, soup, blankets, clothing and other much needed items. Behind the Microphone: The Ins and Outs of Radio Veteran radio personality Frosty Stillwell will now host 12noon-3pm on "Talk 910" KKSF-AM, San Francisco. Stillwell will continue co-hosting the "Sandy and Frosty" morning show on "Star 101.3" KIOI-FM with Sandy Stec until a replacement is in place ... Entercom hires singer/songwriter (and "The Voice" semi-finalist) Lindsey Pavao to join the staff of Alternative "Radio 94.7" KKDO-FM, Sacramento. In addition to "taking a leading role in new music discovery," she will manage the station's social media presence. Pavao will also be introducing new music and artists on the air and at station events and concerts ... Former Hot AC "Alice 105.9" KALC-FM, Denver, morning co-host Erica Cobb joins crosstown Country "92.5 The Wolf" KWOF-FM as morning co-host, pairing with Program Director Jonathan Wilde -- replacing Mudflap who previously moved on ... Joe Thomas is ending the "The Afternoon Constitutional" after two-and-a-half years on the air in Richmond, Roanoke and Charlottesville, Virginia. Thomas continues as Program Director and morning host for News Talk WCHV-AM, Charlottesville ... Asterisk Communications Gainesville, Florida, Operations Manager Shane Finch exits after JVC Broadcasting assumes control of the cluster. He's joining A-Ware Software as Sales Director representing Musicmaster ... Former "News Radio" KFBK-AM, Sacramento, news anchor/reporter Megan Goldsby is in at CBS Radio's All News KNX-AM, Los Angeles, joining as a fulltime news reporter. Goldsby exited KBFK-AM just over a month ago after a little over a year there.