Thursday's Radio & Media News - June 13, 2013

BMI Files Rate Court Action Against Pandora Broadcast Music Inc. (BMI) today filed an action against Pandora, asking the Federal Rate Court in New York City to set "agreeable publishing rates" for the music streaming service on behalf of its 600,000 songwriters, composers and music publishers. Earlier, BMI had indicated that Pandora's acquisition of KXMZ-FM in Rapid City, South Dakota, to receive better streaming rates from ASCAP, resulted in a realization that continuing to negotiate with Pandora would be "futile" as the online music service aims for lower rates. As we reported earlier today, BMI indicated it would file a lawsuit in rate court. The filing asks the court "to set reasonable, market-driven fees for PANDORA after negotiations did not result in an agreement." BMI tells us, "This is the first time the organization has resorted to litigation on fees in the digital arena in the 18 years since it signed the first music industry copyright license for the performance of music on the internet." According to the rate court filing, Pandora paid 4.1% of its $125 million in revenue to publishers last year, but has continued to seek a lower rate. BMI represents the public performance copyright interest of its affiliates when their works are played across all venues including the Internet, cable, broadcast television and radio, satellite and in nightclubs, bars and other commercial establishments. BMI negotiated the first music industry blanket copyright license agreement for the performance of music online in 1995. Today, there are approximately 10,000 digital properties covered by BMI licenses. ASCAP Responds to Pandora's FM Radio Station Acquisition ASCAP and the National Music Publishers' Association have responded harshly to Pandora's purchase of a small-market radio station in an attempt to lower its ASCAP royalties. As we reported Tuesday, Pandora announced it is purchasing KXMZ-FM, Rapid City, South Dakota, saying it believes it should receive the more favorable ASCAP licensing terms available to companies that own both terrestrial radio and Internet radio operations. "Pandora is trying every trick in the book to brazenly and unconscionably underpay and take advantage of the creative labor that produces the core offering of their business -- music written by individual songwriters and composers," says ASCAP President Paul Williams. "ASCAP has an ethical obligation to serve and protect the hundreds of thousands of small and independent songwriters, composers and music publishers we represent to ensure that they receive fair compensation when their songs are performed on any technology platforms." Also, according to Billboard, the NMPA expressed a similar sentiment. "This is another sad step in Pandora's escalating war against songwriters," said David Israelite, President and CEO of the NMPA. "While other digital partners are making voluntary deals, Pandora chooses to sue the very creators who make its business possible." Billboard notes that the acquisition of KXMZ-FM "is a continuation of an ongoing tussle between Pandora and ASCAP over licensing terms." In November, Pandora filed a lawsuit in a federal district court seeking a license with terms available to Internet radio services under the 2012 settlement between the Radio Music Licensing Committee (RMLC) and ASCAP. That settlement covers both broadcast and Internet performance royalties and sets a blanket license fee of 1.7% of a licensee's gross revenue less a deduction for commissions. The RMLC represents the majority of radio stations in the U.S. Pandora's November petition notes that Clear Channel is able to pay the RMLC rates for iHeartRadio, Pandora biggest Internet radio competitor, and claims "there is no basis for discriminating" among similar types of music services or the way they distribute music to listeners. But, says Billboard, ASCAP disagrees. "Internet and traditional AM/FM radio services are very different businesses with different formats, using music in very different ways," says Williams. Cumulus Consolidates Music Decisions for Pop Music Formats Cumulus Media says it is consolidating music decisions for CHR-Top40, Rhythmic CHR, Hot AC and AC -- moving all music recommendations for those formats to go through VP of Label Relations John Kilgo. Effectively, Cumulus is expanding a practice that's been used for Country releases and music recommendations. After going through Kilgo, recommendations will then be approved by co-COO John Dickey's office at the company's Atlanta headquarters. Previously, those releases had gone through the offices of SVP of Corporate Programming Jan Jefferies. Cumulus says Jefferies will still be involved with the process, along with format captains, before John Dickey's office makes the final decisions. Dickey tells us that Jeffries is not being demoted and it was time to unify the other music formats with the same procedures. "This is a practice we put into place with Country and its worked out very well and it was time to move these other music formats in that same direction. We're very excited about this. And, I want to say that Jan is not being demoted. His job is very much intact and he is very much a valued part of the company," says Dickey. Infinite Dial: News/Talk/Sports P1s Prefer AM/FM to Online Radio About 31 percent of News/Talk/Sports P1s tune in to online radio on a weekly basis, but unsurprisingly, a below-average 14 percent listened to Pandora in the past week, according to the latest data release from Arbitron and Edison Research from their "Infinite Dial 2013" study. And those P1s are above-average listeners to AM/FM radio. News/Talk/Sports P1s have slightly above-average awareness of Pandora, iHeartRadio and Spotify. Also given their fandom of spoken word formats, it shouldn't be a surprise that 59 percent of News/Talk/Sports P1s are familiar with podcasting, and that a slightly above-average 15 percent listened to one in the past month. After previously releasing additional data on AC, Urban, CHR, Religious, Country, Public Radio and Classic Rock/Classic Hits P1s, the latest release examines News/Talk/Sports radio fans. According to "Infinite Dial 2013," 70 percent of News/Talk/Sports P1 listeners have Wi-Fi in their homes, with 27 percent living in homes with at least five Wi-Fi connected devices. We also learn that 43 percent of News/Talk/Sports P1s watch YouTube on a weekly basis, while 49 percent are likely to keep their cell phone 'within arm's length." Only 18 percent use their cell phone to wake them up in the morning and half own a smartphone, while an above-average 34 percent of them own tablets. When it comes to social media, 58 percent of News/Talk/Sports P1s have a social network profile, but only 20 percent of them report that they use social networking "several times per day." News/Talk/Sports P1s also have an below-average number of Facebook friends. News/Talk/Sports listeners reported an above-average usage of Linkedin, but were either essentially at or below the average Persons 12+ usage of all other major social media sites. News/Talk/Sports P1s are above-average when it comes to AM/FM listening, as 92 percent tune in to terrestrial radio in the car, followed by 62 percent who listen to their CD players in the car. And just 24 percent use an iPod/MP3 Player, but an above-average 19 percent tune in to satellite radio in their car and nine percent listen to online radio as well. Five percent are tuning in to HD Radio, which is above the Persons 12+ average of three percent. No surprise here, that only 25 percent of News/Talk/Sports listeners said it is "very or somewhat important" to keep up with new music, but 83 percent would be disappointed if their favorite station (likely a spoken word station) went off the air. Only two percent said they "like" their favorite station on Facebook, and six percent are also signed up for their favorite station's email list. Also, 54 percent of News/Talk/Sports P1s are likely to be listening to the radio just before going to shop. Website Targeting Kansas City PPM Draws Arbitron Legal Threats The website ListenLonger.com -- targeting Kansas City PPM ratings participants -- receives an angry response from Arbitron -- as the "ListenLonger" site itself reports. "Received a 'cease & desist' letter from Arbitron. Read it!" says ListenLonger, providing this link. The website offers an explanation of "Why we're here" which details Arbitron's PPM ratings system, and concerns for an unnamed Kansas City radio station. "We are a site dedicated to saving our favorite KC radio station through education about the rating system. We won’t be naming that station anywhere on this site, and ask that you don’t reference it with regard to this site either. ListenLonger.com is in no way affiliated with the station, and this will keep them out of harms way. Here you’ll learn how ratings are calculated and what you can (or can’t) do to help our station stay on the air," says the website. "Long story short, listening longer isn’t enough. A radio signal travels in only one direction — away from the studios broadcasting towers — and has no way to report back to the station how many people are picking up that signal. No one knows that you have your radio dialed into a specific station unless you tell them." They go on to ask users to report if they are PPM participants, and explain how PPM ratings are determined. Arbitron's "cease and desist" letter was sent to the website's registered owner Chris Love. Arbitron Chief Intellectual Property Officer James Derry tells Love: "We are writing to you regarding two separate issues because you are identified as the administrator for the Internet domain name, www.listenlonger.com. This domain name leads to a website that lists 'ratings and rankings for major KC area radio stations.' Regarding the first issue, Arbitron respectfully requests that you immediately cease and desist from asking individuals to identify people that are carrying PPM devices, and from trying to contact you with this information. Your actions tortiously interferes with Arbitron’s relationships with these panelists. Similarly, your actions tortiously interferes with Arbitron’s relationships with our subscribers. Any action that tries and/or influences a PPM panelist’s listening behavior or reveals the identity of a PPM panelist is strictly prohibited." The letter concludes, "Arbitron will take the necessary actions to protect our brand and our rights, and will not hesitate to do so. Please respond immediately, or provide information about the counsel retained that Arbitron should interact with." Update: MHBC has now learned that the unnamed Kansas City station is Entercom Alternative "96.5 The Buzz" KRBZ-FM. The station has been promoting that their listeners need to stay more attached to KRBZ-FM and "listen longer" to prevent a format flip. Paul Love, we've learned, is one of their listeners, and he launched the website that's drawn Arbitron's ire (as previously reported). Arbitron, so far, is not blaming the station or its Program Director, who started the station's "Save The Buzz" promotion that inspired Love. Meanwhile, KRBZ-FM has seen a recent ratings increase, and some competitors in the market are asking Arbitron to discard the ratings report that includes the "Buzz" boost, get a new PPM panel, and re-do the entire book. Media Companies' Digital Revenues to Overtake Traditional Revenues Media and Entertainment Companies See 57% of Revenue Coming from Digital by 2015 The average revenue of media and entertainment (M&E) companies will shortly cross the 50% mark from majority traditional to majority digital, according to a new report -- "Digital agility now! Creating a high-velocity media and entertainment organization in the age of transformative technology" -- released by Ernst & Young that surveyed more than 550 senior executives from global M&E companies. Today, revenue from digital is 47% and survey respondents say that by 2015 it will account for 57% of revenue – thus making digital the new norm and the primary source of revenue for M&E companies. The study goes on to identify characteristics of M&E "digital leaders" – companies that are using new technology not only to deliver digital products and services, but to build more agile organizations capable of sensing and responding far faster to shifting customer expectations and marketplace opportunities and risks. The digital leaders are pioneering the path to a higher level of organizational agility as the M&E industry transitions to digital as its new norm. "Mobile-social-cloud and big data analytics technologies are game-changers for M&E firms," says Pat Hyek, Global Technology Industry Leader, Ernst & Young. "These technologies can help M&E digital leaders who broke ahead of the pack in the early stages of digital to extend their advantages, as well as offer opportunities for those who fell behind to adapt quickly and catch up." According to the report, a major differentiator between these digital leaders and other survey respondents is a greater emphasis on mobile-social-cloud and big data analytics technologies for internal collaboration. For example, digital leaders are 60% more likely than all other respondents to emphasize the importance of social media for internal communication among employees: 67% said it was "very" or "extremely" important, versus 42% of all others. The study points to the kind of rapid collaboration that is enabled by social networks and characteristic of an agile organization, where silos are broken down by the ready flow of information. The study shows that digital leaders' advanced social listening programs, leading-edge analytics and cloud-based infrastructure enable rapid deployment of new products and resources, and give companies the ability to quickly learn from and fix mistakes. This organizational agility is necessary to meet the demands of rapidly evolving digital consumer behavior. "Media & Entertainment companies no longer live in a world where everything lives in 'their' world. It's a connected eco-system with consumer technology leading the way," says John Nendick, Global Media & Entertainment Leader, Ernst & Young. Other results from the survey include: * Technology alliances: Digital leaders emphasize alliances that let them act faster than "going it alone"; 51% rank alliances with technology and other M&E partners among their top three strategic priorities for digital transformation, vs. 30% for others. * Second-generation deployments: Digital leaders were generally more than twice as likely to incorporate lessons learned from initial technology deployments to achieve more advanced functionality. For example, 49% of digital leaders use second-generation mobile technologies to develop products/services vs. 16% of all others. * Smart mobility: Similarly, 32% of digital leaders use second-generation or later techniques in mobility to enhance employee engagement and communication, vs. 13% of all others. * Cloud: Digital leaders emphasize the importance of cloud computing to enhance internal and customer-facing flexibility. For example, 74% of digital leaders say it's important to host business tools in the cloud, vs. 49% of all others; and 43% of digital leaders use second-generation cloud solutions to speed product/service development vs. 12% of all others. * Big data analytics: Digital leaders are three times more likely than other respondents to use second-generation big data analytics techniques to improve customer engagement (26% vs. 9%). Among all respondents, 66% rely on in-house resources to get insight into customers yet 41% say they gain no insight from their data, suggesting they don't have the right big data analytics tools or skills in place and may be better off partnering to access external resources. The report concludes with an agility index that ranks the relative organizational agility of different M&E segments as well as enabling technology and digital leaders. The average score of all respondents is indexed to 100. A score of 110 denotes performance 10% above average; 90 is 10% below average. "Digital agility now! Creating a high-velocity media and entertainment organization in the age of transformative technology" is one of five reports to be released in the Digital Leadership Study Series from Ernst & Young's Global Technology Center and Global Media & Entertainment Center. Conducted in conjunction with Oxford Economics, the study is based on responses from more than 550 M&E executives across industry segments including advertising, broadcast and cable, filmed entertainment, interactive gaming, publishing and information services, music and social media, as well as from the technology industry. The other reports will address managing digital growth, product development and business models, the changing relationships with customers and the "disconnects" that separate M&E companies and technology companies. Paul Driscoll Named RadioBDC Director/Operations Development Former Alternative WFNX-FM, Boston, Program Director Paul Driscoll is promoted to Director of Operations and Program Development for RadioBDC -- the 24-hour, streaming station on Boston.com. We're told that Driscoll's appointment is part of "a series of new initiatives" being launched as the online station approaches its first anniversary. "In this role, Paul can build on our early success in establishing a foothold in the Boston music scene. His vision, and deep experience in the industry, will take RadioBDC to a new level, enabling us to expand our community of listeners," says Jane Bowman, VP of Marketing and Sales Development at The Boston Globe and Boston.com. Driscoll, most recently RadioBDC PD, was Program Director for the former WFNX-FM for 10 years prior to establishing RadioBDC in August 2012. Before his tenure at WFNX-FM, he was an artist development representative with Universal Music Group. "We're creating our own history here at RadioBDC," says Driscoll. "We're becoming what I've always thought radio should be -- about the artists, and about the community of listeners. I'm excited about this expanded role, and the opportunity to create innovative programs that will continue to engage our audience." The streaming station was born when the former Boston Alternative WFNX-FM's license was sold by the Boston Phoenix to Clear Channel. WFNX, owned by the Phoenix Media/Communications Group, was long promoted as the broadcast cousin of the Boston Phoenix, the Boston area's former alternative media newspaper. WFNX tried operating online-only from late 2012 until this March when the Boston Phoenix itself shut down. Bridge Ratings Asks Who Will Switch to iTunesRadio After Apple made the official announcement of its long-expected, long-delayed streaming music service, dubbed iTunesRadio, Bridge Ratings conducted a quick poll gaging interest in the new service. According to Bridge President and CEO Dave Van Dyke, the company surveyed 2,200 “high-consumption Internet Radio Consumers” on Monday and Tuesday to find out "whether these Internet Radio listeners would be interested in switching from their current favorite Internet Radio platform to the new iTunesRadio product announced on Monday." Overall, 38 percent of those surveyed were willing to give iTunes Radio a try. Breaking it down by users of competing services, the survey found that Rhapsody subscribers are most likely to try iTunesRadio (53 percent), followed by 51 percent of Slacker users and 49 percent of iHeartRadio listeners. Meanwhile, 44 percent of Spotify users surveyed and 42 percent of Pandora users said they would be willing to try iTunes Radio. Says Van Dyke, "The significance of this is that without much more than initial Day One information, a significant number of Internet Radio consumers have low loyalty to these services. Even a significant number of Pandora users – especially those who have used the service for more than two years – are inclined to move to the Apple service. The top reason given in most cases is the Apple brand and what it stands for followed closely by the fact that over 85 percent of the sample have iTunes accounts and see iTunesRadio as a formidable alternative." Atlanta's '92.9 The Game' Becomes Atlanta Hawks Flagship CBS Radio's "92.9 The Game" WZGC-FM, Atlanta, will be the new flagship station for the NBA Atlanta Hawks, under a new multi-year agreement. WZGC-FM will air all regular season and postseason games plus pre-game and post-game shows. The station will also delevop Hawks programming with their on-air basketball talent including Rick Kamla, Sam Mitchell and Dennis Scott. Steve Holman will remain as the play-by-play voice for the team, which previously aired on crosstown "680 The Fan" WCNN-AM. The new deal is effective for the upcoming NBA season. Says Hawks and Philips Arena President Bob Williams, "Entering into a partnership with 92.9 The Game will create exciting opportunities for both the Atlanta Hawks and our new flagship. CBS Radio's sports talk investment in the greater Atlanta market, the NBA and the Hawks, boasting one of the most powerful signal strengths in the Southeast, means more Hawks fans than ever will be able to follow and support our team." CBS Radio Atlanta SVP and Market Manager Rick Caffey tells us, "We are very excited to partner with the Atlanta Hawks organization. Danny Ferry, Coach Bud [Mike Budenholzer] and the team are launching a new era of Hawks basketball and 92.9 The Game is very proud to play a part in bringing the vivacity of the NBA to fans across the entire metro of Atlanta." 2013 Radio Show Focuses on Sales and Programming The National Association of Broadcasters and Radio Advertising Bureau will offer two new conference tracks, the Programming Masters Series and Sales Consultants' Corner, both on Friday, September 20 at the 2013 Radio Show in Orlando. The power tracks, which will run concurrently on Friday morning, are designed to provide radio programming and sales professionals a comprehensive training opportunity in a consolidated format. Attendees will learn strategies and best practices that can be immediately employed to increase station revenue and enhance programming content. The fast-paced Programming Masters Series will address how today's multi-platform media environment impacts Radio programmers as they juggle the demands of programming multiple stations and cultivating talent. Sessions include: "The Art of Story Telling;" "The Next Gen Programmer," featuring tips from college radio on how mainstream radio can connect with diverse audiences; and "What's Working at Work," featuring unique research on media consumption. Panelists include Evan Harrison, executive vice president, Content and Entertainment, Univision Radio; Laurie Cantillo, program director, WTOP; Buzz Knight, vice president, Program Development, Greater Media; and Steve Reynolds, The Reynolds Group. During the four-hour Sales Consultants' Corner, Radio's top sales trainers and consultants will discuss effective strategies for training salespeople, prospecting new leads and growing revenue. Sessions include "The Seven Steps for Selling Success," "Getting the Appointment" and "Addressing Objections and Closing." Additionally, RAB will provide resources and tools stations can use to support the sales process. Panelists include Paul Weyland, president, Paul Weyland Communication Strategies; Marijane Milton, international director of revenue innovation and training, MultiBrand Media International; Michael Guld, president, The Guld Resource Group and author of "The Million Dollar Media Rep;" and Susan Novicki, president, Morrison and Abraham. The 2013 Radio Show, produced by the RAB and the NAB, will be held September 18-20 in Orlando. This year's show brings radio broadcasters and industry colleagues together to share knowledge, discover the latest innovations, network with industry leaders and explore creative business strategies for the digital age. To learn more about the 2013 Radio Show, visit www.radioshowweb.com. Univision Radio Signs Two-Year Renewal with Triton Digital Triton Digital tells us that Univision Radio has extended and expanded its contract with the company. The two-year extension will provide access to Triton Digital solutions including a2x, Advertising Platform, Streaming, Webcast Metrics and royalty reporting. Says Triton Digital President of Publisher Development Dominick Milano, “Univision is a forward-thinking publisher that realizes the importance of digital within the radio market. Triton is dedicated to innovation and will continue to provide Univision and our other publisher clients with ever-evolving technology that enables them to fully monetize their content.” Univision Radio EVP of Sales Lee Davis tells us, “We are excited to expand our relationship with Triton Digital. This partnership will allow us to continue providing advertisers with innovative streaming solutions, as well as a great experience for our growing digital audience.” Playboy Radio Podcasts Join PodcastOne PlayboyRadio.com podcasts are joining the lineup at Launchpad Digital Media's PodcastOne. PlayboyRadio and PodcastOne announce that the Playboy Radio podcast lineup will now be available to listeners for free on PodcastOne.com, via the PodcastOne mobile app, as well as PlayboyRadio.com and iTunes. Playboy Radio will be represented for advertising sales by Launchpad Digital Media. "Few brands are celebrated by so many, in so many places," says Norm Pattiz, Chairman and Founder of PodcastOne/Launchpad Digital Media. "In fact, the Playboy Advisor was one of the first radio programs in the original Westwood One syndicated radio lineup. It's good to be back with old friends in the new age of cutting edge on-demand digital entertainment." Says Playboy Radio General Manager/Program Director Josh Cooperman, "Playboy Radio is celebrating 10 years producing fun, sexy and sophisticated radio," "We are excited to make our shows available through podcast and equally excited to be working with Podcast One on this project." Clear Channel Announces Emcees for iHeartRadio Pool Party in Miami Clear Channel announces that LL Cool J, Jason Derulo and Miley Cyrus will co-host this year’s iHeartRadio Ultimate Pool Party presented by VISITFLORIDA.com. The two-day musical weekend, which takes place June 28-29, is part of the Fontainebleau’s BleauLive concert series and will feature main stage performances by Pitbull, Ke$ha, Afrojack, Icona Pop, Krewella and Jason Derulo as well as live poolside sets by DJ Prostyle, DJ Skee and DJ Obscene. The evening performances will stream live at 9pm ET, Saturday June 29 on Yahoo! (iheart.yahoo.com), and more than 120 Clear Channel Mainstream and Rhythmic CHR and EDM stations nationwide will also air the evening performances live and report updates every hour throughout the day. The exclusive television broadcast of the two-day event will air nationally on The CW Network on Monday, July 15, 8-10pm ET/PT. Behind the Microphone: The Ins and Outs of Radio Criswell College and First Baptist Church KCBI-FM, Dallas, Program Director Joel Burke is appointed Corporate Programming Consultant for the 47 Three Eagles Communications midwestern stations. He will also continue as PD of Christian KCBI-FM. Burke is the former PD for Austin Country stations KASE-FM and KVET-FM ... Active Rock "100.3 The X" KQXR-FM, Boise, part time host Adam is upped to fulltime night host, replacing Britt Reid, who segues to Traffic duties for all stations in Journal Broadcast Group's Boise cluster ... Longtime morning host Vikki Locke is exiting AC "B98.5" WSB-FM, Atlanta, to pursue her own media coaching company, and to spend more time with family. The "Vikki and Kelly Show" will end as co-host Kelly Stevens is also exiting. The duo had been paired since March 2011. Prior to that she hosted wakeups with Steve McCoy at "B98.5" -- and, before that, at crosstown "Star 94" WSTR-FM, for 17 years. Locke's final show will be on Friday, June 21, with Stevens leaving the following week on June 28 ... Hot AC "107.9 The Mix" WNTR-FM, Indianapolis, taps Chase Daniels as Assistant PD/Music Director and morning host, starting June 24. Daniels recently exited Hot AC "Star 94" WSTR-FM, Atlanta, where he hosted afternoons.