MHBC Radio and Media News: Thursday's Radio & Media News

PwC: Global Media and Entertainment Spending to Rise Steadily,
Digital Access Drives Entertainment and Media Industry Growth

Worldwide spending for entertainment is expected to steadily rise over the next five years as consumers increasingly use smartphones and tablets and as Brazil, China and India further develop into vibrant media markets. Consulting firm PricewaterhouseCoopers predicts that global spending for media and entertainment will reach $2.2 trillion in 2017, compared with $1.6 trillion in 2012. The U.S. is expected to remain the largest media market, with spending increasing 4.8% annually to reach $632 billion in 2017, up from the nearly $500 billion spent last year. Digital media -- fueled by the expansion in ownership of smart devices -- is expected to account for 43% of all media spending in the U.S. by 2017. That's up from 31% of the total in 2012. Consumer access to entertainment and media content and experiences is being democratized by ever increasing access to the Internet and explosive growth in the ownership of smart devices. According to PwC’s annual "Global Entertainment and Media Outlook 2013-2017" -- an in-depth five-year outlook for global consumer spending and advertising revenues directly related to entertainment and media content -- even though traditional, non-digital media will continue to dominate E&M spending during the forecast period, growth will be concentrated in digital media platforms and consumption. Therefore, E&M companies are raising the bar in terms of customer insight and engagement, as well as business model and operating agility, as digital innovation continues to redefine the industry landscape.

"The E&M industry is undergoing a significant shift as digital disruption across every segment is accelerating and as digital media remains the clear driving force behind E&M revenues over the next five years," says PwC U.S. Entertainment, Media and Communications Practice Leader Ken Sharkey. "To drive growth and compete effectively in the future, E&M companies must invest in constant innovation that encompasses its products and services, operating and business models and, most importantly, focus on customer experience, understanding and engagement." Outlook findings showcase how current industry trends are impacting consumers, advertisers, content creators and digital distributors. Understanding the new consumer is key. Over the next five years and beyond, E&M businesses will increasingly engage with a new and more diverse global customer base, with different needs and expectations, especially with a rising middle class across emerging markets. Going forward, the E&M companies most likely to seize a profitable position will be those with the speed, flexibility and insight to engage and monetize the diverse global base of connected consumers by delivering personalized, relevant and ultimately indispensable content experiences.

Consumers are increasingly in control but also increasingly confused. Over the past five years, consumers have seen an explosion in their media choices. This year’s Outlook highlights that this blizzard of consumption choices is creating confusion in the minds of the consumer and this extends to the legitimacy of the content they access. In response, PwC believes companies across the E&M industry must revisit their business and operating models. By innovating in agile ways and harnessing technologies to gain deep insight into consumers’ tastes and behaviors, E&M companies are starting to define a profitable, consumer-centric, multiplatform future.

From 'mass media' to 'my media': As media consumption fragments across devices, consumers increasingly demand personalized experiences: their content on their chosen devices, when they want it. This move to ‘my media’ can be seen in ‘cord-cutting’, where consumers abandon their pay TV subscriptions and instead access the content they want via cheaper, Internet and mobile broadband-based content services. Operators, who have already been successful in launching triple-play products that bundle TV, broadband and telephony, along with entering the Over-the-Top (OTT) world themselves with 'TV Everywhere,' must adapt their services to changing consumer expectations for more on-demand content. A further manifestation of 'my media' is consumers' growing use of the 'second screen' - smartphones and tablets - to comment on and share the experience of TV and other companion content with friends, often via social media.

Overall, U.S. advertising is expected to increase at a 4.1% CAGR from $167 billion in 2012 to $204 billion in 2017. Internet advertising is expected to average 13.7% CAGR followed by video games, one of the smallest segments, at 11.6% CAGR. Television advertising, the largest segment, is expected to grow at 5.1% CAGR. Out-of-home advertising and filmed entertainment advertising are expected to grow by 5.0% and 3.2% CAGR, respectively. Radio advertising is expected to have slower growth at 1.4% CAGR. Consumer magazine (-1.5%), business-to-business (-3.3%) and newspaper advertising (-4.2%) are all expected to decline. "The growth is really going to be concentrated on digital media platforms and associated consumption," says Joe Atkinson, a principal with PricewaterhouseCoopers' entertainment and media practice. The report paints a mostly sunny picture for U.S. media companies, but digital media is proving to be an increasingly disruptive force. Traditional television and movie companies are struggling to preserve their profit margins as Internet distribution splinters the audience and threatens to unravel the industry's core business model: selling bundles of TV channels to paid subscribers. "We are really seeing a shift in control from the media companies to the consumers," says Atkinson. "The consumers have more choices, but we are seeing that they also are more confused by all of this choice."

Chicago 'Score' PD Mitch Rosen Nixes WGN-AM PD Offer

There's a search underway for a new Program Director at Tribune News Talk WGN-AM, Chicago, following the recent ouster of PD Bill White (as we reported earlier this week). When new "WGN Radio" President and General Manager Jimmy de Castro "released" White as one of his first moves, he reportedly had a replacement in mind -- current crosstown CBS Radio "The Score" WSCR-AM PD Mitch Rosen. But Rosen says he's taking a pass on the offer and will remain in his current job. Two reports from Chicago say that Rosen was offered the WGN-AM position, but has decided to continue as PD of Sports Talk WSCR-AM, a position he's held since 2005. Market media reporter Robert Feder -- who has taken his reports to Facebook since exiting Time Out Chicago -- says Rosen confirmed to him in an interview that "he's agreed to continue" as WSCR-AM Program Director. "I was flattered by the interest at WGN, and very grateful that my mentor, Jimmy deCastro, really wanted me," said Rosen. "But at the end of the day, I'm grateful for the team we have here, and I continue to grow this brand that is 21-plus years old. I love what I do. I love working at The Score. I love the team we've put together here. The success we've had as a team has been outstanding. I couldn't walk away from that right now. It was the hardest decision of my career. Not many times in our career do we have a choice. I had a choice. I chose to stay at a great radio station." Chicagoland Radio and Media -- which was first to report White's ouster, Monday -- is independently reporting, "Even though he had no pressure placed on him from anybody to decide on the job offer he was given by de Castro, with the word out on the streets about it and constant questions to him regarding the offer, Mitch Rosen knew he had to make a decision fast. He went back and forth on the pros and cons of the move for days. He woke up [Wednesday] morning at 3:00am, as he always does to get ready for his work day, and decided to turn down the offer to join historic WGN Radio." Prior to joining WSCR-AM, Rosen was PD at its crosstown competitor "ESPN 1000" WMVP-AM. A Chicago native, Rosen began his career at WGN-AM as producer for late-night radio host "Chicago Eddie" Schwartz in 1988. He followed Schwartz to WLUP-FM in 1992, before becoming PD at WMVP-AM.

Charles Warfield Elected New NAB Board Chairman

The NAB has elected YMF Media President and CEO Charles Warfield (pictured) as its new Board Chairman, taking over from Meredith Local Media Group Chief Paul Karpowicz. The NAB's Board of Directors met this week for its regularly scheduled summer board meeting. Karpowicz nominated Gordon Smith as NAB President/CEO who received unanimous support to remain in that position. Lincoln Financial Media President and CEO Don Benson was re-elected Radio Board chair by unanimous vote. Smith commended NAB staff for "hitting on all cylinders," and praised the success of the NAB Show for its prominence as the premier industry event and for keeping NAB in secure financial standing. He also reflected on NAB’s effective strategies related to advocacy and discussed the challenges related to partisan gridlock on Capitol Hill and noted that despite broadcasting's challenges, the unique 'one-to-everyone' transmission architecture of local radio and TV stations gives broadcasters a unique advantage over competitors. NAB EVP of Radio John David provided an update to the Radio Board on membership initiatives and NAB Show highlights. David also updated the Radio Board on plans for the 2013 Radio Show, and Chris Brown reported on the status of sales and sponsorships for the event. The Radio Show will take place September 18-20 in Orlando. Kelly Cole briefed the Radio Board on the performance fee issue, highlighting the growing support for the Local Radio Freedom Act. Smith pointed out that privately negotiated free market agreements occurring between radio companies and record labels demonstrate lack of need for legislation on this issue. Cole said NAB will continue to engage with House and Senate Judiciary Committees on the performance tax issue. Jane Mago commended FCC Commissioner Ajit Pai's public support for AM Radio "revitalization" and outlined possible short and long-term initiatives being considered for AM Radio. Ben Downs followed with a presentation detailing initiatives, solutions and challenges related to AM Radio.

Clear Channel Launches 'iHeartRadio Show Your Stripes' Campaign

Clear Channel announces the launch of iHeartRadio's "Show Your Stripes" -- a company-wide community service initiative to address the issue of unemployment among U.S. military veterans and encourage businesses to hire skilled veterans. Clear Channel says it will spend more than $75 million in radio, digital and out-of-home resources to highlight the skills brought back by returning servicemen and women and their value to employers in the workplace. iHeartRadio’s Show Your Stripes – with the tagline "Hire Smart - Hire Vets" - is a long-term effort to help guide veterans back into civilian life by highlighting their valuable training and experience. It will include radio, digital and out-of-home public service announcements (PSAs) from the biggest names in entertainment and pop culture. All PSAs will direct listeners to showyourstripes.org – a centralized, easy-to-use destination for veterans, businesses and supporters. iHeartRadio’s Show Your Stripes will feature PSAs from Elton John, John Legend, Kelly Clarkson, Carrie Underwood, Brad Paisley, Ryan Seacrest, Mario Lopez, Trace Adkins and LL Cool J. "It is a privilege for me to join Clear Channel in their efforts to assist the many men and women who have served in the military to find good jobs that use their expert skills and trainings when they return home," says Elton John. "iHeartRadio’s Show Your Stripes is a powerful platform for musicians, celebrities and businesses to work together to make this happen." Says Clear Channel Entertainment Enterprises President John Sykes, "The U.S. government has invested billions of dollars training the most technically skilled and qualified group of veterans in our history. These veterans are now returning home with the kind of specialized training that makes them ideal job candidates for American businesses – small and large. By leveraging Clear Channel’s enormous reach to showcase the value that these returning vets offer employers, we can generate real action – connecting highly qualified veterans to employers who need their services."

Clear Channel also announced today the iHeartRadio Show Your Stripes Alliance, a coalition of American businesses identified as being military-friendly and which have already experienced success in hiring veterans. Clear Channel will support those businesses that hire vets by recognizing them on-air, across its 850 stations and digital platforms as well across its out-of-home properties. Alliance launch partners include American Airlines, Anheuser-Busch, BNSF Railway, Capital One, Century 21 Real Estate LLC, Chesapeake Energy Corporation, Cisco, Citi, The Coca-Cola Company, Comcast and NBCUniversal, Deutsche Bank, Duane Reade, Electronic Arts, Facebook, FedEx, General Electric, General Mills, The Home Depot, jcpenney, JetBlue, Johnson & Johnson, NBA Cares, American Red Cross, Sprint, UPS, Verizon Communications Inc., Waste Management, Walgreens and Wells Fargo. The goal of the Alliance is to make military-friendly businesses more visible to veterans seeking jobs, and ultimately increase veteran applications for open positions. Clear Channel encourages businesses of all sizes to join the movement by signing up at iHeartRadio's showyourstripes.org and has set a goal of growing to 100 partners by the end of 2013.

'Infinite Dial 2013' -- Public Radio P1s Are Digital Devotees

Public Radio P1 listeners are clearly digital devotees -- with an above-average 44 percent of them saying they tune in to online radio on a weekly basis, and are also more likely than the average radio listener to stream Pandora, with 29 percent saying they had done so in the past week. Arbitron and Edison Research continue releasing in-depth data from their "Infinite Dial 2013" study. After releasing additional data on AC, Urban, CHR, Religious and Country listeners, the latest update focuses on Public Radio P1s, telling us that an impressive 80 percent of Public Radio P1 listeners have Wi-Fi in their homes, with 37 percent living in homes with at least five Wi-Fi connected devices. Public Radio P1s also have an above-average awareness of Pandora and Spotify, but are unsurprisingly below-average with their knowledge of iHeartRadio.Almost three-fourths of Public Radio P1s are familiar with podcasting, and 34 percent listened to one in the last month. Just over half of Public Radio P1s watch YouTube on a weekly basis, while 38 percent are likely to keep their cell phone 'within arm's length." Only 14 percent use their cell phone to wake them up in the morning and just over half own a smartphone, while 42 percent of them own tablets. When it comes to social media, 71 percent of Public Radio P1s have a social network profile, and a quarter of them report that they use social networking "several times per day." Public Radio P1s have an below-average number of Facebook friends. Public Radio fans have above average usage of all major social media sites, except for MySpace and Instagram.

Public Radio P1s, however, are also above-average when it comes to AM/FM listening, with 93 percent tuning in to terrestrial radio in the car, followed by 65 percent who listen to their CD players in the car. An above-average 32 percent use an iPod/MP3 Player, while 14 percent use satellite radio in their car and 14 percent listen to online radio as well. An average three percent are tuning in to HD Radio. Nearly half of Public Radio P1s say it is "very or somewhat important" to keep up with new music, while 96 percent would be disappointed if their favorite station went off the air. Only three percent said they "like" their favorite station on Facebook, but an above-average 15 percent are signed up for their favorite station's email list. Also, 45 percent of Public Radio P1s are likely to be listening to the radio just before going to shop.

Triton Digital Releases April Online Audio Rankings

Pandora remains at the top of Triton Digital's monthly Internet audio rankings, as the April 2013 audio ranker is released. Pandora's AAS (Average Active Sessions) for Monday-Friday 6a-8p) in the Domestic Rankings fell for the second straight month, from around 1.85 million in March to 1,697,993 AAS. That's likely the result of Pandora's mobile monthly streaming cap for free listening. Session Starts for Pandora did increase in April to over 912.6 million. Clear Channel was ranked second again -- with an increase in AAS to 332,756 and an increase in Session Starts to almost 159.9 million. Slacker remains in third place, followed by Cumulus and CBS Radio, NPR Member Stations, Cox Radio, EMF Corporate, Entercom and ESPN Radio. On April's All Streams Ranker (M-F 6a-8p), Clear Channel was first again with 335,039 AAS, followed by Digitally Imported and a rising Slacker in third place. Prisa Radio was fourth, followed by CBS, Cumulus, NPR, Cox, EMF Corporate and 977Music.com. On the full week Domestic Ranker (6a-mid), Pandora was still #1, but AAS was down slightly to 1,484,115. Clear Channel was ranked #2, followed by Slacker in third place. Cumulus, CBS, NPR, Cox, EMF Corporate, Entercom and ESPN round out the top ten. As for the All Streams Ranker's full week stats (6a-mid), Clear Channel was #1, followed by Digitally Imported, Slacker, Prisa Radio, CBS, Cumulus, NPR, 977Music.com, Cox and EMF Corporate. This month's offering of additional stats from Triton Digital compares April 2013 to April 2012. In April 2013, overall listening remained relatively flat, with an overall gain of one percent in AAS during the All Days/Times daypart from March to April. Taking a look back to the year prior, Triton found a 24 percent increase in AAS from April 2012 to April 2013, with mobile outpacing desktop growth year over year at a 38 percent increase. As indicated in prior insights and trends, digital audio consumption growth continues to be dominated by the mobile platform, even during the traditional in-office hours.

JVC Appoints Shane Reeve Gainesville Market Manager

JVC Media appoints Shane Reeve Market Manager for its newly-acquired five-station cluster in Gainesville-Ocala, Florida -- WTRS-FM, WMFQ-FM, WXJZ-FM, WBXY-FM and WYGC-FM. Previously, Reeve, a 25-year industry veteran, was VP and Market Manager for Cumulus Fort Walton Beach, Florida. Before that, he was GSM at former CMG Classic Rock WHTQ-FM, Orlando, and Local Sales Manager for sister AC WMMO-FM. Prior to joining Cox Radio's Orlando cluster, Reeve was GSM for three years at co-owned WXGL-FM, Tampa, until November 2006, when he moved back to Orlando to be close to his family. JVC Media is continuing to establish the leadership for its new Florida group. Says Reeve, who will head that local leadership, "I am really excited and proud to join the JVC family and help develop these amazing stations, I love this market, it's a homecoming for me and I am thrilled to be back working with old friends and partners." Reeve also tells us he got his start in radio with JVC Media President and CEO John Caracciolo. "I remember when Shane and I both started at WLIR-FM in Garden City NY," says Caracciolo. "I was the engineer and he was the best sales intern I ever saw. I am so happy that he is part of the family once again." It's been an active (if not busy) time at the Gainesville-Ocala cluster. Last week JVC Media flipped WBXY-FM from Talk to Rhyrhmic CHR as "Party 99.5" after rebranding WTRS-FM as “My Country" and flipping WYGC-FM to a simulcast of WTRS-FM. Earlier this week, Country WJVC-FM, Long Island Program Director and morning host Phathead Dadded VP of Country Programming for the company, and named WTRS-FM morning co-host Dave Tyler Program Director for the two Florida "My Country" stations.

Clear Channel Announces 'Rising Star' Winner

The Summer Set Wins Second Macy's iHeartRadio Rising Star Competition

Clear Channel Media and Entertainment tells us they "congratulate The Summer Set, a Scottsdale, Arizona-based Pop Rock band, on winning the second Macy's iHeartRadio Rising Star Campaign." The Summer Set, we're told, will now have the opportunity "to perform alongside music's biggest stars at this year's two-day iHeartRadio Music Festival in Las Vegas on September 20 and 21." The Summer Set consists of Brian Dales, John Gomez, Stephen Gomez, Josh Montgomery and Jess Bowen. Formed by brothers John and Stephen as teenagers, the band released their first full-length album "Love Like This" in 2009, and its sophomore album "Everything's Fine" in 2011. The band's third album "Legendary" -- which released April 16 on Fearless Records -- debuted at #3 on the iTunes Pop Charts and #9 on the overall iTunes Chart. The album's first single "Boomerang" surpassed 10,000 digital sales in its first week of release and is also the featured track in the Rising Star campaign. The music video for "Boomerang" premieres today on Vevo. "Boomerang" is currently listed as Hitbound by MHBC's Total Popular Music. Last year, Clear Channel radio listeners, iHeartRadio fans and Macy's shoppers cast more than two million votes for their favorite up-and-coming artists. This year, fans tripled their participation, surpassing six million votes across the country and crowning The Summer Set as the 2013 Macy's iHeartRadio Rising star. "It's such a surreal dream come true," says Brian Dales of The Summer Set. "Entering this competition was unlike anything we've done in our career and I still have a hard time believing we won. Legends (The Summer Set's fans) are the best fans in the world for coming together in support of this moment. I'm so excited to see all the doors this may open and I want to say thanks to Macy's, iHeartRadio and Fearless Records. Here's to the future" In addition to performing at the iHeartRadio Music Festival, The Summer Set will kick-off their victory celebration with special performances during this summer's Macy's Passport presents Glamorama events. Summer Set will open the shows on August 2 in Minneapolis and August 9 in Chicago, followed by two shows in late September slated for Los Angeles and San Francisco.

Bobby Rich Inducted into Arizona Broadcasters Hall Of Fame

Legendary radio personality Bobby Rich, host of the "Bobby Rich Morning Mix" on "94.9 MIXfm" KMXZ-FM, Tucson, has been inducted into the Arizona Broadcasters Association Hall of Fame. Arizona Broadcasters Association President Art Brooks tells us, "It is very rare to be inducted following the initial nomination." After success in markets including San Diego, Seattle, Los Angeles and New York, Rich came to Tucson in 1993 and took over a floundering station that needed programming leadership and an overall "shot in the arm." As a result, "94.9MIXfm" was born, consistently generating strong numbers, building a stable long-term air staff and embracing community partnership. "Bobby has done all the right things to create a permanent long-lasting bond with listeners, advertisers and co-workers," says Journal Broadcast Group Tucson Operations Manager Shaun Holly. Rich recently signed a multi-year contract extension to kick off his 20th anniversary year with the station. His induction into the Arizona Broadcasters Hall of Fame will be celebrated with the Arizona Broadcasters Association annual luncheon in Scottsdale, October 17.

Slacker Revamps Format Charts with 'Slacker EQ'

Slacker launches a new "EQ Score" chart system, which will be updated every Thursday tracking the 40 most engaging tracks across multiple genres from the previous week, available at blog.slacker.com/EQ. A number from one to 100, the Slacker EQ score measures hundreds of millions of weekly data points to show how deeply users are engaging with a particular song, based on specific positive and negative actions, according to the streaming music service. The EQ score in corporates such factors as the number of times a song was started on the service, the number of times a song was listened to in its entirety, the number of times a user "hearts" a track, requesting to hear it more frequently, the number of times a user shares a track via social media sites or email, the number of times a song is skipped before reaching completion, the number of times a user changes the station when a song plays, and the number of times a song or artist is banned from playing again. "The majority of people stream music and old charting methods capture sales or basic streams which only tell a fraction of the story," says Slacker SVP of Content Programming and Strategic Development Jack Isquith. "As access to music trumps ownership for consumers, engagement quickly becomes the most important metric for what’s hot and trending. Slacker EQ provides fans, artists and labels a real-time understanding of not only what consumers are listening to, but how they’re interacting with music, and how their actions change over time."

'Total Popular Music' Goes Viral?

Earlier this week, we briefly reported that MHBC reported "exponential recent growth for our main home base, TotalPopularMusic.com" -- and promised a forthcoming "report (with documented proof that our website is now receiving record daily traffic, both for 'unique visitors' and 'total hits')." Today we have that promised report. Six years ago when TotalPopularMusic.com was first launched we were thrilled when our average daily visitors reached the century mark after months of about four dozen or so per day. When that later doubled to 300, we thought we "had arrived." But we also knew that was still far from a successful site in the Internet world. Now, we've recently seen our daily visitor count to the site reach to an average between 800 and 1,000 -- which is still not in line with our goals, but is a big step forward. So, to everyone who has become a regular reader and follower of TotalPopularMusic.com, a very big thank you from Mark Harris Broadcast Consulting!

website stats graphic

Behind the Microphone: The Ins and Outs of Radio

Tanner joins Entercom Hot AC "Star 106.5" KBZC-FM, Sacramento, for mornings, June 17. He will arrive in Sacramento from WFTX-TV, Fort Myers, Florida. Previously, he'd hosted mornings on WMXQ-FM, Jacksonville ... Hot AC "Kelly 95.3" KLLY-FM, Bakersfield, APD/MD, Imaging Director and midday host Lance Sottile will exit at the end of June, to run Gold-based AC "Dream 97-5" WYDM-FM, Monroe, Michigan ... Jeremy Young joins Cumulus Fayetteville for afternoons on Country "US94" KAMO-FM and weekends on sister CHR-Top40 "Power 105.7" KMCK-FM, and additional duties to be announced ... The "Toad" is dead at KTDD-AM, San Bernardino, California, which after 11 years as the Classic Country "Toad" has flipped to Sports Talk as "Fox Sports Radio 1350" with the full syndicated feed from Premiere Networks ... Clear Channel Fort Myers Director of Promotions Troy Stephenson, who oversaw the promotions of the nine-station cluster, exits to relocate to the Nashville area with his wife where she was hired for a school administration position ... Rhythmic "Blu 102.9" KLBU-FM, Santa Fe, New Mexico, flips to Spanish Adult Variety Hits "Juan 102.9" -- the new Spanish cousin format of "Jack" from Sparknet.