Thursday's Radio & Media News - June 27, 2013

TRN Files Lawuit Against Courtside and Dial Global Over Michael Savage and Laura Ingraham Moves Talk Radio Network has filed a new lawsuit against Dial Global and Pattiz' Courtside LLC in U.S. District Court in Portland, alleging that the defendants "engaged in concerted efforts to disrupt the relationships" that existed between TRN and Michael Savage and Laura Ingraham, both of whom were allegedly under contract to TRN at the time. The suit alleges that Courtside sent an offer sheet to Savage in November 2010 that TRN matched -- but that Courtside continued to court Savage and allegedly "continued to spread knowingly false rumors at industry conferences that Savage would soon be under contract with Courtside." TRN also alleges Dial Global "joined in Courtside's efforts to recruit Savage," enlisting Courtside "as a surrogate" to avoid directly competing with TRN in contravention of their contract. The suit cites Savage's refusal to allow video streaming and refusal to read some live spots and alleges that Courtside and Dial Global's conduct "proximately caused Savage's conduct." In Ingraham's case, the suit notes that Courtside announced her move to its roster within a month of the end of her TRN contract and alleges that Dial Global and Courtside "were negotiating with Ingraham on the parameters of a contract even before she terminated her contract" with TRN. Talk Radio Network is seeking unspecified damages plus legal fees other and further relief to be determined by a jury. Previously, TRN had filed against a number of radio syndication and ads sales organizations alleging antitrust violations. Courtside Entertainment was a defendant but a California judge removed Courtside from that complaint, ruling it was not connected to the antitrust allegations. Pandora's Tim Westergren Enters the Royalties Rumble Says RIAA Is Deceiving Artists with Untrue Information First we heard from Pink Floyd, then Cracker's David Lowery. Then Pandora responded. Next, the musicFIRST Coalition refuted Pandora's response. Now, Pandora Co-Founder Tim Westergren enters the fray directly -- with an extensive (i.e lengthy) blog post -- "Pandora and Royalties." He starts by noting "Warning: This is long, but I'd really like to fully articulate Pandora's perspective on royalties, which is simply impossible to do in just a few sentences." Westergren's full (unedited) post follows: "Over 13 years ago when I started this company, we set out with a singular mission: to help connect artists with their audiences and help listeners find music that they love. This led to the creation of the personalized radio service known as Pandora. Today, over 70 million listeners tune in to our service every month, where they hear the music of well over 100,000 different artists. These artists span the entire musical spectrum; from the well-known to the completely obscure, representing every imaginable genre. The vast majority of our collection gets no other form of radio airplay. We are incredibly excited about the new music industry that is taking shape as this personalized form of music discovery takes hold – a future that allows tens of thousands of working musicians to finally reach the audiences they deserve. "There has been a fair amount of commentary lately on Pandora’s approach to royalties – some coming from a deliberate and orchestrated campaign funded by the RIAA, and some coming from well-intentioned artists who, because of this misinformation campaign, have been mislead about Pandora’s intentions. I bear these artists no ill will. On the contrary, they are brave to speak out and articulate their perspective openly. David Lowery, Blake Morgan, Roger Waters, David Gilmour & Nick Mason, and others are all speaking from the heart. And as a long-time working musician myself, I fully understand their emotions and concerns. "While we have generally tried to steer clear of debating this issue in the media, the volume of misinformation has reached a level where I feel it’s important to set the record straight – not only for Pandora, but also for the artists themselves as they consider what, if any role, to play in shaping the policy around royalties in the coming months and years. There is a window of opportunity here to create a healthy and sustainable music ecosystem, but that won’t happen if the discussion is dominated and controlled by entrenched incumbents. "The first falsehood being disseminated is that Pandora is seeking to reduce artist royalties by 85%. That is a lie manufactured by the RIAA and promoted by their hired guns to mislead and agitate the artist community. We have never, nor would we ever advocate such a thing. I challenge the RIAA to identify a statement from Pandora that says we seek to reduce royalties by 85%. On the contrary, all of the key principals including Cary Sherman (the head of the RIAA) and Mike Huppe (the head of SoundExchange) know that we have been advocating for solutions that would grow total payments to artists. The 85% sound bite preys upon the natural suspicions of the artist community, but it is simply untrue. And although we compete directly with AM/FM radio, which pays zero performance royalties, we have always supported fair compensation to artists. "The second confusing and contentious issue is the amount of money paid for each song spin on Pandora. There is a tremendous amount of misinformation being spread on this topic as well. First we need to clarify what a “spin” on Pandora means. Each spin on Pandora reaches a single person, compared to a “play” on FM radio that reaches potentially millions of people. In other words, a million spins on Pandora might be equivalent to a single play on a large FM station. How much would we pay in royalties for a million spins? About $1,370. (If you’re interested in the detail, an independent blogger posted today some very accurate calculations on this exact topic.) If major market FM stations paid the same rates as Pandora, based on audience, some would be paying thousands of dollars for every song they played. How much do they pay performers right now? Zero. As Richard Conlon, SVP at BMI recently said: 'One play on commercial radio is not the same thing as one play on Pandora.' He is right. "Regardless of the math, the truth remains that any way you cut it, when it comes to Internet radio 'x spins pays y dollars in performance fees' is always going to sound like a small number. The total is huge and growing (over $250 million last year alone), but the per spin number is small. Which leads me to the next, and perhaps more important point. The value of a spin on Pandora is about much more than royalties. Over 350 labels actively service Pandora with new releases. And we get thousands of unsolicited submissions from artists. Why? Because radio has, and will always be THE primary means of promotion for artists. Spins means audience, and developing an audience of patrons is THE key to long-term sustainability for artists. Furthermore, in an Internet-connected world, the ability of a service like Pandora to activate fans is extraordinary – far beyond anything broadcast radio has ever been able to offer. We have already begun developing and testing those capabilities, and the artists who have participated in these programs have been blown away by the results. "The next issue concerns the publishing side. Historically, Pandora has paid essentially the same rate as all other forms of radio, a rate established unilaterally by the performing rights organizations, ASCAP and BMI, in the late 1990s. In November of last year, following a lengthy negotiation, Pandora agreed with ASCAP to a new rate, an increase over the prior amount, and shook hands with ASCAP management. Not only was our hand-shake agreement rejected by the ASCAP board, but shortly thereafter we were subjected to a steady stream of “withdrawals” by major publishers from ASCAP and BMI seeking to negotiate separate and higher rates with Pandora, and only Pandora. This move caused us to seek the protection of the rate, also recently negotiated, enjoyed by the online radio streams of broadcast radio companies. It's important to note that these streams represent 96% of the Internet radio listening hours among the top 20 services outside of Pandora (talk about an un-level playing field). We did not enter this period looking for a lower rate – we agreed to a higher rate. But in a sad irony, the actions of a few small, but powerful publishers seeking to gain advantage for themselves has caused all songwriters’ royalties to go down. Any characterization of Pandora as being out to cut publishing rates flies in the face of the facts. "One last thing that I feel I need to address. The RIAA has attempted to create a firestorm about an email from me asking artists if they would show their support for Internet radio by signing a letter. We were overwhelmed by the response. Over 500 independent artists stepped forward and agreed to sign. The intent was simply to communicate directly with artists about the future of music, and allow their voices – the thousands upon thousands not represented by the RIAA – to be heard, and to play a part in an issue that so directly affects them. Many of these artists have a completely different perspective from the RIAA on what’s right for them. "We did not play these conversations out in the media, and out of respect for the artists, we kept the dialogue private. When the letters were leaked to the media, we became concerned about potential intimidation of these artists (many were forbidden to sign by their labels, or spoke to us about fear of reprisal should they sign). Because of these concerns, we went back to all of them and offered to take their names off the letter. Very few did. In fact, the list actually grew, and continues to. Out of respect for each artist who signs, we have promised to keep their names private and out of the media fray. But we stand by those letters, and you can read them here to decide for yourself. "As I said earlier, there is a window of opportunity for recording artists and Pandora to come together around a mutually agreeable rate that will ensure a healthy and vibrant future. We are committed to the challenge of building an ad-supported business for consumers, and to do it bearing a substantial royalty cost, but just as we must honor and value the role artists play in providing the music for the service, so the artist community must also value the years of effort, investment, and expertise that has made Pandora such a massive driver of artist exposure in the music ecosystem. Such an outcome will only be reached if the debate is based on real evidence and real impact instead of emotionally satisfying but hollow talking points that do nothing but mislead, and worse, misguide the policy prescriptions for artists. "Pandora is a company founded by artists to help artists. It is at the core of who we are and how we make decisions about our business and that will never change. We will not be intimidated. We will continue to try our best to stay above the fray and concentrate on our mission to create great Internet radio for our listeners and our artists. We are undaunted, and we are passionate about the future of music, and an ecosystem that allows those who create it to thrive." WSJ: Apple Spells Out iTunes Radio Terms iTunes Radio Royalty Terms Offered Indie Labels Are 'Good' On the heels of reports that Apple is reportedly threatening to pull iTunes Radio holdouts from its iTunes Store -- especially targeting smaller independent (indie) labels -- The Wall Street Journal has acquired a copy of the royalty terms Apple is offering to the indie labels, saying they are mostly "more generous" than what Pandora pays. "Apple intends to pay royalties to labels based on a blend of how many times listeners hear their songs and how much advertising Apple sells," says WSJ. In the first year of iTunes Radio, Apple will pay the indie labels 0.13 cents for each play of a song, as well as 15 percent of net advertising revenue, proportionate to a given label’s share of the music played on iTunes. In its second year, the rate increases to 0.14 cents per listen, plus 19 percent of ad revenue. By comparison, Pandora pays 0.12 cents per listen. WSJ says that Apple is also offering music publishers more than twice as much in royalties as Pandora. The Wall Street Journal also notes that Apple will not pay out royalties for "some performances of songs that are already in listeners’ iTunes libraries, or songs that might be on an album that a listener owns just part of. Similarly, 'Heat Seeker' tracks selected by iTunes for special promotions, are also exempted. Apple also doesn’t have to pay for songs listeners skip before 20 seconds have elapsed. The company only gets to avoid paying royalties for two songs per hour for any given user." The terms for independent labels are described as "similar but not identical to those" agreed to by the major labels. Philadelphia's Darren Daulton Diagnosed with Brain Tumors Former All-Star Philadelphia Phillies catcher -- and current Philly radio host -- Darren "Dutch" Daulton has been diagnosed with two brain tumors and will undergo surgery next week. Daulton, played 14½ of his 15 seasons for the Phillies. He currently hosts a daily evening Sports Talk show on "97.5 The Fanatic" WPEN-FM, Philadelphia -- "Talkin' Baseball with Dutch." The station says that Daulton, after not feeling well the past two weeks, saw a doctor who made the discovery. Daulton was a key part of the Phillies' National League championship team in 1993. He finished his career with the 1997 World Series champion Florida Marlins. The Phillies released the following statement from President David Montgomery Thursday afternoon: "We’re saddened by the news about Darren. Our thoughts and prayers are with him and his family at this time. We, along with our fans, are praying for a full recovery." A statement on the WPEN-FM website says, "Darren Daulton has not been feeling well over the past two weeks. He went to the doctor who discovered two brain tumors and is scheduled for surgery early next week. Our thoughts and prayers are with him and his family at this difficult time. Of course we want to respect his privacy at a time like this, but if you would like to send him get well wishes you may do so at dutch@975thefanatic.com". 'Full Metal Jackie Radio' Launches on iHeartRadio Clear Channel Media and Entertainment launches "Full Metal Jackie Radio" -- a new Hard Rock and Heavy Metal station on iHeartRadio. The station will feature music from such bands as Slayer, Metallica, Lamb of God, Slipknot, Pantera, Black Sabbath and more. "We are excited to expand the Full Metal Jackie brand from a two-hour show to a 24/7 Hard Rock and Heavy Metal destination on iHeartRadio," says CCME VP of Special Programming Projects Tim Herbster. "Jackie brings a wealth of experience to this genre and is a format expert — she is the perfect choice to help curate and host our 24/7 iHeartRadio channel featuring exclusive interviews and guest appearances by all your favorite Metal Stars." We're told that "Full Metal Jackie" Kajzer has become known nationally as a Metal personality and as the creator/host of the two hour syndicated Hard Rock and Heavy Metal show distributed by Envision Radio Networks. Full Metal Jackie Radio will feature exclusive interviews with key artists in the genre and broadcast the Envision Rock Network's Full Metal Jackie syndicated show on Mondays at 7pm EST and Thursday at 3pm EST. Full Metal Jackie's radio show will join a lineup of shows hosted by a rotation of popular artists in the genre to be announced soon. "I was very excited to create this channel," says Kajzer. "I've been hosting my two-hour show for over six years with Envision Networks and listeners have always said they wanted a longer show, or other places to listen to it during the week. This is such an important genre with a dedicated following, so it's great that iHeartRadio believes in it enough to give us a 24/7 channel!" Heavy Metal fans can listen to Full Metal Jackie Radio 24/7 on iHeartRadio at www.iheart.com/live/Full-Metal-Jackie-6225. The launch party for the new Full Metal Jackie channel on iHeartRadio will take place this Saturday at the kick-off of the Rockstar Energy Drink Mayhem Festival at San Manuel Amphitheater in San Bernardino, California. Original Investor Alta Leaves Galaxy Ownership Group CEO Ed Levine Becomes Galaxy’s Sole Equity Holder Galaxy Communications is exchanging financial partners, swapping one for another in a move that will make CEO Ed Levine the sole equity holder in the upstate New York broadcast group. The transfer from "old" Galaxy to "new" Galaxy (Galaxy II), with investor Alta leaving the ownership, will require one spin-off for the $13.2 million deal. Levine says the transaction will bring Galaxy's balance sheet into the 21st century. The winding down of the Alta Communications fund that has backed Galaxy since 2000 led to the change. "Alta held in there for a tremendously long time," says Levine, noting most equity firms look to exit an investment after three to five years. Levine will assume the roughly 80% equity stake that Alta has held in Galaxy as part of the deal, which sees Atalaya Capital becoming the company's new lender but not a major part of the ownership. When Galaxy’s terms were arranged in 1999, the typical radio multiple was in the 12 to 13 times cash flow range, while today it’s closer to 6 to 7 times. "We've had a balance sheet that literally came from another century," says Levine. "The company throws off a lot of cash and now we'll be able to pay down a lot of debt and our future doesn't depend on multiples going back up." With the FCC transfer of Galaxy station licenses in Syracuse and Utica, NY, a grandfathered eight-station cluster in the Syracuse market will have to be downsized by one FM to the current limit of seven stations. Levine says he has a deal to spin-off Classic Hits "Sunny 102" WZUN-FM, Syracuse, to Alta partner Wayne Mack for $1 million. Galaxy owns six stations in the Utica-Rome, NY, market. Sarita Negron Named GSM at JVD Media Gainesville-Ocala Sarita Negron is named General Sales Manager at JVC Media's Gainesville-Ocala cluster. She will work with fellow GSM Sam Gerace. The two will lead JVC's five-station cluster in the Florida markets. Negron comes from a senior sales executive post at Opus Broadcasting in Tallahassee. She has also worked at WTKS/Orlando, WRFX/Charlotte, and CBS Radio's WJHM-FM in Orlando. Says JVC/Florida VPand Market Manager Shane Reeve, "Sarita will concentrate on growing the clusters presence in Gainesville, while Sam will continue to build the heritage brands in Ocala -- and all three of us will work together to bring the group to new heights in the market. With the addition of Sarita, we continue to build our sales team, and we are focusing resources and dollars to make these radio properties special for our clients and our listeners, this is all about our commitment to bringing fun, live, local radio back to this market." Negron tells us, "I love this market and I am absolutely thrilled to be working with JVC to bring exciting, new radio formats into the area. This is live and local the way radio is suppose to be. Radio is fun and if you don’t have fun doing it, you might as well be selling newspapers." Cumulus Media Networks Releases Marketing/Creative Department The entire Marketing/Creative team for Cumulus Media Networks has been released. The seven-person team was based in Dallas. SVP of Marketing Omar Thompson and Creative Director Will Montgomery will remain during a 30-day transition period. Exiting immediately are Marketing Director Alex Kalkwarf, Marketing Manager Erin Johnson, Marketing Coordinators Britney Schuelke and Geri Ruppert, and Graphic Designer Brandon Barker. Cumulus confirms the exits saying this is part of the continued company integration with Citadel and overall restructuring of the company. That restructuring has previously seen a number of cost-cutting moves. NAB Launches 2013 Congressional PSA Campaign More than 800 public service announcements (PSAs) will be distributed to radio and television stations throughout the country Thursday through NAB's 2013 Congressional PSA Campaign. The program invites members of Congress and their families to be featured in free, professionally produced spots that focus on social and health issues pertinent to each lawmaker's district or state. An all-time record 244 members of Congress (or their spouses or family members) participated in this year's PSA campaign. "For more than 25 years this campaign has made it possible for lawmakers and their family members to directly address issues of concern to local communities," says NAB EVP of Commkunications Dennis Wharton. "Public service is the hallmark of local broadcasting, and NAB urges radio and television stations across America to air these important pro-social messages." The PSAs will be distributed to stations throughout each congressional member's district or state for broadcasting through the end of 2013, with a percentage of the spots offered in Spanish. A variety of topics were covered, including breast cancer awareness, cancer prevention, cyber bulling, distracted driving, fire prevention, mental health, support for returning veterans and volunteerism. The broadcast-quality radio and television spots can be downloaded at the NAB Congressional PSA website. SiriusXM to Launch 'Rural Radio' Channel After a dispute over the name RFD Radio, SiriusXM announces the start of Rural Radio, a 24/7 channel devoted to providing a wide variety of programming for and about rural American life, the western lifestyle, and agribusiness interests. Airing weekdays on Channel 80, Rural Radio will offer news and weather, market reports, and shows, including a wide variety of original productions focused on agriculture, equine, hunting, fishing, western sports, and living the country life in small towns and on acreages. "SiriusXM's unparalleled programming and easy-to-use technology has been embraced by rural consumers in their cars, pickups, tractors, and combines throughout North America," says Patrick Gottsch, Founder and President of Rural Media Group and Rural Radio. "Rural Radio is designed to fill the growing demand for more rural content that is being ignored by urban-based broadcasters." Gottsch originally wanted to name the new satellite radio channel "RFD Radio" after the success of RFD-TV (Rural Free Delivery Television) which he launched in December 2000, on Dish Network. "Distribution of this one-of-a-kind station expanded to DirecTV in March 2002 with all major cable agreements quickly to follow including Mediacom, Charter, Optimum, Suddenlink, Comcast, Verizon, Time Warner Cable, Bright House, and Cox. Today, RFD-TV is available in more than 41 million homes nationwide. Rural Media Group has since expanded to include RFD-TV The Magazine (2003), RFD-TV The Theatre (2007), RFD HD (2008) and the most recent addition, Rural TV (2009), which is the sister network to RFD-TV serving the international market." SiriusXM President and Chief Content Officer Scott Greenstein tells us, "Rural Media Group has a proven track record of offering great programming for rural Americans and those drawn to the western lifestyle. In growing SiriusXM's diverse programming lineup, we are excited to join with Rural Media Group to super-serve the rural audience." Back in May, we reported that plans to launch "RFD Radio" were challenged with a lawsuit by the Illinois Agricultural Association, alleging that the use of the name would violate the Lanham Act, because IAA claimed they already use that name. "Rural Radio" stems from the earlier plan by Gottsch and SiriusXM, avoiding the disputed name. Charlotte's WBT Named North Carolina Station of the Year Greater Media's News Talk WBT-AM-FM, Charlotte, has been named the 2013 Large Market Station of the Year by the North Carolina Association of Broadcasters (NCAB) during their annual convention in Greensboro, North Carolina. The winners of this year's top station awards were determined by a panel of out of state media executives. The Station of the Year Award was awarded to radio stations with achievements during 2012 that highlight innovative programming, with an emphasis on audience involvement and promotion, and a commitment to their local community. "It is fitting that North Carolina's first and most legendary radio station, WBT would win the inaugural NCAB station of the year award," says Greater Media Charlotte VP and Station Manager Trip Savery. "We are very proud to receive this honor from NCAB." Tampa’s '98.7 The Fan' Announces Staff Moves "98.7 The Fan" WHFS-FM, Tampa, Program Director John O'Connell announces staff changes at the CBS Radio Tampa Bay Sports Talk station. Veteran sports announcer Jim Lighthall joins Justin Pawlowski on "Fan Interference with Justin Pawlowski and Jim Lighthall" from 9am-12noon. The show is now being produced by Jeff "Pants" Pantridge who moves from producer of the "Kirk and Dinger Morning Show." Lighthall is a 1990 graduate of the University of South Florida and has been a sports announcer for over 21 years. He is the play-by-play voice of USF men's basketball, a member of the USF Football broadcast team and has been the station's 20/20 sports update reporter since the station's launch. Replacing Pantridge producing the morning show is Ed "Special Ed" Grube who joins "98.7 The Fan" from sister Hip Hop "WiLD 94.1" WLLD-FM to be head producer for the program featuring Kirk McEwen, Chris "Dinger" Dingman and Roxanne Wilder. Says O'Connell, "We are very excited about these additions and what Ed brings to the table. His quick wit, creativity and great sense of humor will bring a new dimension to the 'Kirk and Dinger Morning Show.' Ed has the ability to help take the show to the top of the ratings, and like Jim, he's a big basketball fan who offers a unique perspective." Also, producer Bryan Drake shifts from production duties in middays to the evening "Fabulous Sports Babe Show" airing 7-10pm. 2013 Radio Show Leadership Breakfast Explores Radio Opportunities The NAB and RAB announce the panelists for a 2013 Radio Show Leadership Breakfast -- "Opportunities in a Changing Economy" -- presented by Pillsbury Winthrop Shaw Pittman LLP. The event will be held Thursday, September 19, 7:15-9:00 a.m. at the Rosen Shingle Creek Orlando. The Leadership Breakfast will feature a panel discussion about expanding opportunities in Radio for acquisitions and revenue in a growing economy. Panelists include Lew Dickey, CEO of Cumulus Media; Mary Quass, CEO of NRG Media; Jeff Warshaw, CEO of Connoisseur Media and Larry Wilson, CEO of Alpha Broadcasting and L&L Broadcasting. The panel will be moderated by Lew Paper (pictured), a partner with Pillsbury, and will be preceded by opening remarks from Marci Ryvicker. Ryvicker monitors developments in broadcasting and other media industries as managing director, Senior Equity analyst, for Wells Fargo Securities, LLC. Paper, a partner with Pillsbury's communications law practice in Washington DC, previously served as Associate General Counsel at the FCC and Legislative Counsel to U.S. Senator Gaylord Nelson. Behind the Microphone: The Ins and Outs of Radio Saga's Columbus Radio Group names Jimmy Steele Brand Manager (Program Director) for AC "Sunny 95" WSNY-FM, Hot AC "Mix 107.9" WCMX-FM, and "Rewind 103.5/104.3" WNND-FM/WODB-FM, Columbus, Ohio. Steele most recently was Top 40 Brand Manager and Operations Manager for Clear Channel San Diego ... ... Clear Channel Salisbury-Ocean City Maryland appoints Susan Groves as Operations Manager for the six-station cluster. She starts July 15. It's a return for her to both Clear Channel and her home state of Maryland ... Radio veteran -- and current morning co-host at AC "Magic 96.5" WMJJ-FM, Birmingham -- Jeannine Jersey, will be exiting the radio industry next Friday (July 5). Jersey's new venture will start on July 8 where she'll be doing corporate communications for a local Brimingham company ... Brian DiMario joins Classic Hits WFGM-FM, Morgantown, West Virginia, for morning-drive host. He most recently was with "Great Country 107.7" WGTY-FM, York, PA. Previously, he worked on-air at several Nassau Broadcasting Classic Rock and Classic Hits stations in New Jersey, Delaware and Pennsylvania ... James Steele is named Assistant PD and Music Director at CHR-Top40 "Now 105" WNOH-FM and Rhythmic AC "Movin' 107.7" WMOV-FM, Norfolk-Hampton Roads, Virginia ... John Govia is in as Music Director and night host at CHR-Top40 "Star 102.1" WWST-FM, Knoxville ... Rob Archer joins Clear Channel Talk KFI-AM, Los Angeles. as midday news anchor replacing Chris Lane. Archer moves up from parttime/fill-in anchor duties. He previously served as Assistant PD and Music Director at co-owned AC KBIG-FM until 2006 before joining Dial Global as a format PD ... Radio One Atlanta announces the addition of Kelly Mayfield as Digital Sales Manager for its Atlanta cluster -- "Hot 107.9" WHTA-FM, Gospel "Praise 102.5/102.9" WPZE-FM and Urban AC "Majic 107.5/97.5" WAMJ-FM.