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Pandora Acquiring South Dakota Radio Station 
Pandora announces an agreement to purchase Hot AC "Hits 102.7" KXMZ-FM, in Rapid City, South Dakota (licensed to Box Elder, SD), from Jeff Warshaw's Connoisseur Media. Terms are not disclosed, but as always we'll get the information when the deal reaches the FCC. Pandora says the acquisition is being made in part to allow the company to qualify for certain Radio Music Licensing Committee settlement agreements concerning royalties and public performance of musical works in the ASCAP and BMI repertories. "The Company believes that qualifying for these royalty rates could provide the Company with modest savings (less than 1% of revenue) in content acquisition cost compared with the rates it is currently paying." In a statement, Pandora tells us, "We have been approached a number of times about opportunities in terrestrial radio though have never moved on those opportunities in the past. The catalyst for doing so now is a coordinated effort on behalf of publishers and the PROs against Pandora that seeks to discriminate against Pandora and significantly higher rates than those paid by our competitors. That said, we believe there are significant synergies between running Pandora and operating a local FM station, particularly in the areas of programming, marketing and advertising sales and we look forward to exploring these. Pandora has outlined in a motion filed today in federal district court in the Southern District of New York a coordinated effort by ASCAP and its member publishers that demonstrate discriminatory tactics against certain internet radio services, including Pandora, and other behaviors in violation of its 1941 ASCAP/BMI Antitrust Consent Decree." Meanwhile, Pandora General Counsel Christopher Harrison writes in a blog post, "We look forward to broadcasting our personalized experience to the community in Rapid City, an area where over 42,000 residents already use Pandora. And we will apply Pandora’s insights about listening habits to program music that accurately reflects local listeners’ evolving tastes." Infinite Dial: Classic Rock/Classic Hits P1s Not Big Online Listeners 
Classic Rock/Classic Hits P1 listeners report a "below-average" use of online radio, according to the latest data released by Arbitron and Edison Research from their "Infinite Dial 2013" study. After releasing addition data on AC, Urban, CHR, Religious, Country and Public Radio listeners, their latest update focuses on Classic Rock/Classic Hits P1s. According to the Infinite Dial 2013, a below-average 29 percent of Classic Rock/Hits P1s tune in to online radio on a weekly basis, and 21 percent listened to Pandora in the past week. Classic Rock/Hits P1s are essentially on par with the overall Persons 12+ when it comes to Pandora and iHeartRadio awareness, but just 16 percent are aware of Spotify. Also, 46 percent of Classic Rock/Hits P1s are familiar with podcasting, in line with the overall Persons 12+ average, while just 10 percent listened to one in the last month. However, 65 percent of Classic Rock/Hits P1 listeners have Wi-Fi in their homes, but with just 19 percent living in homes with at least five Wi-Fi connected devices. Only 31 percent of Classic Rock/Hits P1s watch YouTube on a weekly basis, while 48 percent are likely to keep their cellphone 'within arm's length." Only 16 percent use their cellphonees to wake them up in the morning, and just under half own a smartphone, while 23 percent of them own tablets.
Borrell Associates: Local Mobile Advertising to Double In 2013 
According to a new Borrell Associates client memo, local mobile advertising will double this year. In some markets that number may translate into tens of thousands of dollars; in the largest, it’s $100 million or more. Last year mobile ads accounted for 8% of the $18.5 billion spent on local online advertising. This year's growth will put its share at 13% of $24.3 billion. Last year local advertisers spent $1.5 billion on mobile media; this year Borrell is forecasting it will be $3.2 billion. So while total mobile advertising is likely to increase about 34%, Borrell is expecting local to increase 105% which is equates to the rush to buy banners and local search advertising in 2004 when Internet access had hit critical mass, or 50% of all households. Online advertising doubled that year. BA CEO Gordon Borrell says that what's happening with advertising at the local level is "nothing short of phenomenal" and is a repeat of a major 2004 shift in local ad spending. Borrell cautions against the possibility of what happened in 2004 when Internet access had hit 50% of all households, but there was also skepticism with which traditional media companies viewed the news at the time. Few reacted as if it was real, while national pureplay web companies swooped in to take the lion's share of that new spending, because even though their reach is global, their use is local. "Local businesses are buying mobile marketing at a faster rate than the huge uptick we saw for local online advertising in 2004, when household Internet access hit critical mass. Even in the smallest of markets, there's some experimentation. It’s a little scary, particularly for traditional media managers who might easily be whipsawed."
The client memo notes that local is becoming more important to the mobile advertising industry as a whole. The first adopters to any new medium tend to be national marketers, according to the report, but their local counterparts are quickly coming on board, accounting for 13% of all mobile spending in 2012 and 20% this year. "The forecast is supported by our ongoing surveys of SMBs, as well as updated data that we filter into our local market Compass reports, to which many of you subscribe." The memo adds, "A key data point we saw earlier this year showed that 37% of small and medium businesses (SMBs) who had not yet tried mobile advertising said they were likely to do so within the coming year. Moreover, a stunning 83% of those who had actually engaged in some sort of mobile campaign said they were likely to do so again. Last year local advertisers spent $1.5 billion on mobile media; this year we’re forecasting it will be $3.2 billion. So while total mobile advertising is likely to increase about 34%, we’re expecting local to increase 105%. That's similar to the rush to buy banners and local search advertising that we saw in 2004." The client memo provides a list of Borrell’s 513 DMRs (Digital Marketing Regions) and notes that not all growth rates are the same. "Of the 513 markets, 108 are seeing mobile advertising expenditures double. Only six markets will see less than 50% growth. Every market has its own nuances and unique makeup. Underlying factors include population, the prevalence of mobile device ownership and use in that market, the makeup of business types in the market and the amount of people coming into and out of the market for tourism, business travel, etc." Triton Digital's Webcast Metrics Receives Continued MRC Accreditation 
Triton Digital announces that the Media Rating Council (MRC) has granted the company’s Webcast Metrics product and Monthly Ranker All Streams Reports continued accreditation. The digital audio measurement platform measures thousands of online digital streams in real-time through a comprehensive performance analytics dashboard. "We congratulate Triton Digital for earning continued accreditation of Webcast Metrics and its Monthly Ranker All Streams Reports," says MRC Executive Director/CEO George Ivie. 'This latest audit and review process once again demonstrated Triton’s dedication to delivering quality measurement data for streaming audio." Triton Digital Chief Compliance Officer/GM Measurement and Analytics Rob Favre tells us, "Triton Digital strives to provide the best data possible to our clients. MRC's continued accreditation speaks to our dedication to innovation and commitment to ensuring buyers and sellers have complete confidence in the online audio data they use every day. This data is a critical aspect in demonstrating the value of online audio as a source of advertising income. With our commitment to the MRC accreditation process, we continue to take our leadership role in the streaming audio measurement space seriously." According to Triton Digital, "Webcast Metrics is the industry leader for online audio audience measurement, providing broadcasters and advertisers with credible third-party metrics. Unlike other options available to the industry, Webcast Metrics does not rely on memory, opinion or input from consumers, instead counting actual streaming consumption. Webcast Metrics is licensed by hundreds of broadcasters and pure play online services." Former Cox Birmingham Market Manager Sues for Unpaid Bonus 
Former Cox Media Group Birmingham VP/Market Manager David DuBose is suing CMG for $310,686.97 -- claiming the company promised him the money as bonus pay for staying with the cluster while it was in the process of being sold to his present employer SummitMedia. DuBose, a 15 year veteran of Cox in Birmingham -- now EVP/COO of SummitMedia -- alleges that Cox's then-President David Franklin promised him the bonus, increasing the total when the sale did not close by the end of 2012. DuBose says that he was told after the closing of the sale that the company would not pay the bonus. According to the suit, Cox relied on DuBose's "expertise and personal relationships with broadcasting executives and industry contacts to aid Cox in upgrading the signal strength of several Cox radio stations" in Birmingham and other markets for which Cox paid him $100,000 in 2002, and told him he would be paid more for additional work since then, but did not. DuBose also alleges that Cox adopted "unrealistic and wholly unreachable" revenue and expense goals for 2012 to inflate the value of the Birmingham cluster and other stations. The suit was filed in the U.S. District Court for the Northern District of Alabama, Southern Division. Todd Schnitt: A Boy Named Sue? 
Some are asking if Todd Schnitt might be the "boy named Sue" of the old Johnny Cash song -- or at least the radio host named sue. He's suing again -- this time his former attorney in the "Bubba" suit, which Schnitt (and his former Tampa radio alter ego "MJ Kelly") lost. Schnitt says his lawyer in the case -- which turned into a series of side story headlines -- is guilty of legal malpractice. Schnitt, who retired DJ "MJ" in favor of his real-name Compass Media Networks syndicated talk show, and his wife Michelle, were represented in court again Monday, this time for a hearing over an additional million dollars in legal fees the couple has refused to pay to the firm that represented them in their failed civil defamation trial against rival host Bubba The Love Sponge Clem (now the rival host's legal name). The Schnitts are suing Shumaker, Loop and Kendrick, for which their lead attorney, C. Philip Campbell, works. Campbell was arrested on a DUI charge during the January trial. In court Monday, the Schnitts asked for a ruling that their latest suit go to a court trial rather than to an arbitrator, as the law firm says is required by a clause that the Schnitts claim they never saw. A final decision is scheduled for September, with Circuit Judge Charles Bergmann presiding.
Bob Pittman: iTunesRadio Not A Threat to iHeartRadio 
Clear Channel CEO Bob Pittman says he doesn't see Apple's new "iTunesRadio" as a threat to terrestrial radio or Clear Channel's iHeartRadio. Pittman tells the Wall Street Journal that custom radio -- such as Apple's new "radio" product and Pandora -- "doesn't appear to be a viable freestanding business." He says that while listeners tune in to FM radio to "join the world," they listen to custom radio services to have "a very private experience," and now that so many electronics makers and subscription streaming companies are offering personalized radio, it's no longer the main event. "I think that Apple has a little bit of a problem with iTunes because of people using new subscription services like Spotify instead of buying downloads. This is a way to make iTunes a little sexier and zippier," said Pittman. As for the threat to iHeartRadio, which consists of 1,500-plus live stations but also offers custom radio functionality, Pittman says his service sends listeners to iTunes to buy music they like. "If we thought they were competitive we wouldn't be doing that," he said. Pittman is just one of several leaders of potential "iTunes Radio" targets that weigh in with WSJ. Read the full Wall Street Journal report here. Lance Venta Misses the Boat (Or At Least the 'Radio') 
RadioInsight's Lance Venta was right that Apple wouldn't call its new, forthcoming streaming music service "iRadio" as most of us had dubbed it before Monday's announcement. And as most of us expected when it was announced. But Venta was wrong when he predicted the word "Radio" wouldn't be used for what has now been revealed to be "iTunes Radio" (or more correctly "iTunesRadio"). In "an exclusive" post, before the Monday announcement at Apple's Worldwide Developers Conference (WWDC) in San Francisco, Venta wrote that none of Apple's competitors -- Pandora, Spotify, Slacker and Google's new PlayMusic All Access -- use the word "Radio." He wrote, "Only the streaming services owned by terrestrial radio companies feel obliged to include the name radio in their brands."
The Rare Randy Michaels Chicago Connection: Hockey Vs Baseball 
In Chicago, Randy Michaels' former station is cooperating with his current crosstown station? That's the question that came to mind as we spotted Chicagoland Radio and Media's report, "WGN-AM To Air All Blackhawks Finals Games; Cubs Temporarily Shift To WLUP-FM." Clearly there's no format conflict between the Talk station and the crosstown Classic Rocker. But WGN-AM, of course, is Tribune's one radio station. Randy Michaels is the former Tribune CEO who was ousted, and then started the struggling Merlin Media, which currently owns and operates "The Loop" WLUP-FM. CRM reports that the NHL 2013 Stanley Cup Finals including the Chicago Blackhawks, for which WGN Radio is the flagship, offer some conflicts with Cubs, for which the Tribune station is also the flagship.
Yahoo! Sports Radio Podcasts Available On PodcastOne 
PodcastOne and Gow Broadcasting, operator of Yahoo! Sports Radio in partnership with Yahoo! Sports, sign a multi-year agreement to make Yahoo! Sports Radio podcasts available to listeners without cost on PodcastOne.com and via the PodcastOne mobile app. The YSR podcasts will be represented for advertising sales by Launchpad Digital Media. "As 'radio' continues to be redefined as 'audio,' the Sports Talk format has never been more popular," says PodcastOne and Launchpad Digital Media CFO Dan Yukelson. "Yahoo! Sports Radio is a leader in on-demand sports content and we are looking forward to ushering sports talk into the digital age together. Along with our current PodcastOne line-up of Sports/Talk programming such as category leaders Steve Austin and Ross Tucker, the addition of Yahoo! Sports Radio will further strengthen our platform and reach." And says Gow Broadcasting CEO David Gow, "PodcastOne and Launchpad are leading the way in on-demand audio and we are excited to be part of this growing platform." Yahoo! Sports Radio podcasts now available on PodcastOne include Bryan Benway, Terry Ford, Dylan Gwinn, Rick Horrow, Travis Rogers, Pat Forde, Dan Wetzel, Geoff Kethcum, Doug Farrar, Steve Czaban, Calling All Sports with Marty Tirrell and Bib Ryan, The War Room with John Harris and the Mouthpiece Boxing Podcast. AdLarge Promotes Don Wachsmith to CRO/Radio Sales 
AdLarge Media promotes Don Wachsmith to Chief Revenue Officer/Radio Sales from EVP/Radio Sales. Wachsmith joined AdLarge in 2011 from Dial Global where he was EVP/Sales. During his tenure at Dial Global (originally Global Media), he opened their western division sales office and oversaw sales operations in the Los Angeles, Chicago, Dallas and Detroit offices. Earlier in his career, Wachsmith handled local sales at WHOK-FM, Columbus. "Don has done an incredible job of exceeding revenue goals, two years in a row," says AdLarge Co-Founder/CEO Gary Schonfeld.
Behind the Microphone: The Ins and Outs of Radio Cadillac Jack (not that one, nor that one -- but one of the other ones) has been the morning host on Country "101.5 Kicks FM" WKHX-FM, Atlanta, for 20 years -- and says he isn't done yet. He's just signed another contract renewal ... The Mainstream Rock simulcast of "The Drive" KHDR-FM/KHRQ-FM, Barstow, California, flips to Active Rock, and names morning show host Jeremy James as the new Program Director. James tells us he will also handle Music Director duties himself ... Kwame Dankwa, who recently left CHR-Top40 "Radio Now" KWNW-FM, Memphis, to return to New England to be closer to a sick relative, rejoins CHR-Top40 "Z 97.1" WZRT-FM, Rutland, Vermont, as Program Director ... Country "101.5 The Eagle" KEGA-FM, Salt Lake City, names market veteran Amanda Jones as its new morning co-host with Brand Manager Jon Watkins for "Jon And Amanda." She replaces Keith Stubbs and will also assist with promotions. Previously, Jones was with crosstown KUTV-FM ... "940 ESPN" KFIG-AM, Fresno, personalities Nick Papagni and Matt Johnson have exited the station for what the Fresno Bee says was "irresponsible reporting" on their high school sports show. The hosts denied the allegation.
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From Mark Harris Broadcast Consulting
Tuesday, June 11, 2013
Tuesday's Radio & Media News - June 11, 2013
When it comes to social media, 61 percent of Classic Rock/Hits P1s have a social network profile, and 22 percent of them report that they use social networking "several times per day." Classic Rock/Hits P1s have an below-average number of Facebook friends. Classic Rock/Hits listeners have below-average usage of all major social media sites, with the exception of Linkedin. Classic Rock/Hits P1s are above-average when it comes to AM/FM listening, as 94 percent tune in to terrestrial radio in the car, followed by 66 percent who listen to their CD players in the car. Only 22 percent use an iPod/MP3 Player, while 16 percent use satellite radio in their car and 10 percent listen to online radio as well. Just one percent are tuning in to HD Radio. Nearly half of Classic Rock/Hits P1s say it is "very or somewhat important" to keep up with new music, while 85 percent would be disappointed if their favorite station went off the air. Only seven percent said they "like" their favorite station on Facebook, and seven percent are also signed up for their favorite station's email list. Also, 49 percent of Classic Rock/Hits P1s are likely to be listening to the radio just before going to shop, in line with the Persons 12+ overall average.
We read that, and screamed loud enough to be heard at RadioInsight headquarters, "Pandora has been bugging terrestrial radio with its use of 'Pandora Internet Radio' since it launched." But, apparently Venta couldn't hear us. His assertion was that only Clear Channel's iHeartRadio, CBS Radio's Radio.com and Townsquare Media’s RadioPup use the five-letter "R-word" -- and Apple wants to compete with other Internet music streamers. But all along, we (and others) reported Apple's main target would be Pandora -- which, whether we traditional broadcasters like it or not, continues to insist it is "Pandora Internet Radio." And we do see the prominent use of "Radio" in the actual name chosen by Apple, "iTunes Radio." (In fact we also see the "i" in that name.) For the record, we still do not consider Pandora to be "radio" -- nor will we consider "iTunesRadio" to be "real radio." Regular readers know we normally refuse to call Pandora "radio" -- and instead use the term "streaming music service." But to deny their existence (or competition for over-the-air radio) would be just plain foolish.
"According to the Cubs agreement with Tribune Broadcasting, their games always take precedence. That means, at times of schedule overlaps, the Blackhawks broadcasts are moved to a secondary station (most often this year, that has been WIND-AM or WLUP-FM)," reports CRM. As it turns out, two baseball games (and possibly a third) will be heard on "The Loop" -- Monday, June 17 - Cubs at Cardinals 6pm, and Wednesday, June 19 - Cubs at Cardinals 7:15pm. "Should the Stanley Cup Finals go to a decisive Game 7, then the Wednesday, June 26 game (Cubs at Brewers, 7:10pm) will also be heard on WLUP-FM. If no Game 7, then the Cubs game will air on WGN-AM, as normal." CRM also tells us that "Even though two, or potentially three games will air on WLUP-FM, the same WGN Radio broadcasting team will be heard. Pat Hughes and Keith Moreland will remain the announcers. The only difference will be the radio frequency in which the game is heard."
"His client relationships and ability to develop targeted national radio advertising packages have dramatically increased sales results for AdLarge." AdLarge President/Co-Founder Cathy Csukas adds, "With Don's leadership, Adlarge has already surpassed 2012 results and achieved exceptional growth in 2013. This is a well-deserved promotion for Don and recognition for his contribution to our success." Wachsmith tells us, "The past two years at AdLarge have been a wonderfully rewarding experience. As AdLarge continues to expand partnerships with content providers, I look forward to delivering targeted branding experiences for our national advertising clients."
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