Wednesday's Radio & Media News - June 5, 2013

2013 Radio Mercury Awards Winners Announced The most creative radio commercials in the U.S.A. were announced Wednesday night in New York City, at the 2013 Radio Mercury Awards reception at the Highline Ballroom. The $50,000 prize 2013 Best of Show Award was given to Barton F. Graf 9000 LLC for their radio campaign, “A Long Day of Childhood” for Ragu / Unilever. “The work from Barton F. Graf 9000 was the standout radio creative, especially the Ragu campaign, and the Integrated Little Caesars campaign” said Bill Cimino, chief creative officer, Y&R Midwest, and chief judge for this year’s Radio Mercury Awards. “Each of these campaigns told a true and believable story. These were inspired creative executions that deserve every bit of praise they receive.” Says RAB President and CEO Erica Farber, “All of tonight’s winners epitomize the level and standard of excellence that we always hope to award at the Radio Mercury Awards. These winning spots and campaigns are true testaments to radio’s ability to engage consumers, build brands and inspire the next generation of creative minds.” All of the 2013 winners with audio clips are available at www.radiomercuryawards.com [Updated Link]. Keith Hastings Named New KISS-FM/San Antonio Program Director Keith Hastings is named the new Program Director of Cox Media Group's Classic Rock KISS-FM, San Antonio, replacing L.A. Lloyd who exited last year. Earlier today we reported in our BTM section that "Classic Rock WCSX-FM, Detroit, Program Director Keith Hastings announces on his Facebook page that he's exiting the station for a new position to be announced soon." And soon it was that his new job in San Antonio was indeed announced by CMG. Hastings officially became PD at WCSX-FM this past February, replacing Brent Alberts who left WCSX-FM in November 2012. "KISS-FM is one of the legendary rock brands in the nation and I'm excited to have one of the best rock programmers in Keith Hastings take the station to the next level," says CMG San Antonio VP and Market Manager Dan Lawrie. "Keith brings strong leadership, creativity and the ability to develop great talent; assets that will help grow the Billy Madison Morning Show and the station as a whole.” Says Cox Media Group VP of Programming Steve Smith, "After talking to a number of rock PD's in the past few months, I was most impressed with Keith. He knows the Rock format and knows what it takes to be competitive today. It's great to have Keith join our programming team in San Antonio, and I'm confident he will add to our already solid momentum we have in that market." Prior to programming WCSX-FM, Hastings served as an independent, on-site consultant, launching Connoiseeur Media's Rock WWSK-FM, Long Island last September, and had been on-site overseeing the programming efforts of Greater Media's WCSX-FM since November 2012. Hasting's career includes 18 years with Saga, holding PD positions at WAQY-FM, Springfield, Massachusetts, and WLZR-FM and WHQG-FM, Milwaukee. He also programmed Entercom's WAAF-FM in Boston from 2002-2005. In his Wednesday morning Facebook post, Hastings said, "I bid a very fond farewell to my friends and co-workers at Greater Media Detroit yesterday. I will miss many facets of the outstanding organization they are and am thankful for my time spent there. My next venture will become public later today." Clear Channel and Dualtone Announce Revenue Sharing Agreement Clear Channel Media and Entertainment and Dualtone Music Group today announce an agreement that enables Dualtone and its artists to share revenue from Clear Channel’s broadcast and digital radio. Dualtone Music Group is a Nashville-based independent label specializing in roots rock, indie rock and critically acclaimed singer/songwriters. "Founded in 2001 by Scott Robinson, the label’s CEO, Dualtone is known for its thoughtful approach to artist development, providing dedicated attention to a small roster and focusing on gradual, long-term success," says a news release. "This style has attracted artists like The Lumineers, whose quadruple-platinum single 'Ho Hey' has garnered more than 65 million YouTube views, is consistently in the top ten on the Billboard Hot 100, and whose self-titled debut album went platinum as the band was nominated for two Grammy Awards." Dualtone’s current artist roster includes The Lumineers, Shovels & Rope, Ivan & Alyosha, Little Comets and legendary songsmith Guy Clark. Overall, Dualtone’s artists have been nominated for 17 Grammy Awards, including three wins. “Dualtone is dedicated to the long-term career development of each artist on our roster, and radio plays an essential role in their success,” says Robinson. “We will do whatever we can to help ensure a vibrant future for Internet radio as well as recognizing the continuing importance of broadcast radio. This is how our artists can reach as many of their fans as possible – wherever they are, on whatever device they’re using – and is an invaluable factor in their success.” Says Clear Channel CEO Bob Pittman, “Dualtone has achieved enormous success over the past few years, in large part due to their nurturing approach to emerging artists. Their business philosophy is similarly focused on the long term, so they understand that Clear Channel is trying to move the digital radio industry towards a more sustainable model for the future and ensure fans get the music they want when and where they want it. We’re excited to partner with Dualtone.” Clear Channel’s market-based agreement with Dualtone follows several recent, similar agreements, including Big Machine Label Group, Glassnote Entertainment Group, DashGo, rpm Entertainment, Robbins Entertainment, Naxos, eOne, Wind-up -- and, earlier this week, Fearless Records. Moody's Revises Cumulus' 'Speculative Grade Liquidity Rating' Acknowledges Four Underperforming Stations 'Successfully Turned Around' Moody's Investors Service has upgraded Cumulus Media's Speculative Grade Liquidity (SGL) Rating "to SGL -- 2 from SGL -- 3 reflecting improved access to the senior secured revolver due to the recent amendment of the 1st lien credit agreement," says the Moody's announcement. The short-form, plain language explanation of the announcement is that Moody's has given Cumulus a slight upgrade. And, apart from the credit ratings world's jargon-filled interests, the investors service acknowledges what Cumulus CEO Lew Dickey has been waiting for. "Debt ratings are pressured by challenges related to turning around 10 underperforming stations in eight of its larger markets which are expected to breakeven in the second half of 2013. Management indicates that four of these 10 stations have successfully been turned around." Moody's also indicates it looks favorably at the amount of debt paid off and cash flow margins. Quarterly financial reports from Cumulus Media continue to emphasize how much of the broadcast company's debt has been reduced, and steps taken to further that goal. Remember, Cumulus shelled out a lot to acquire Citadel Broadcasting. Cumulus just paid down $35.6 million of term loan debt this April. "Moody's expects Cumulus to generate roughly $175 million of annual free cash flow versus our prior estimate of $200 million to reflect management's comments that it expects to invest roughly $25 million annually in CBS Sports Radio, Nash FM and related country format branding, its Traffic network, as well as SweetJack," says the full statement from Moody's Investors Service. Moody's starts with the "recent amendment of the 1st lien credit agreement" as it offers its full explanation of the upgrade. "The amendment reduces the revolver commitment to $150 million from $300 million, but replaces the total net leverage test with a 1st lien net leverage requirement enabling full access to the revolver. All other ratings including the B2 Corporate Family Rating (CFR) are unchanged, as is the stable outlook." Moody's explains the rationale behind its revision this way: "The company's B2 corporate family rating reflects high debt-to-EBITDA of 7.3x (including Moody's standard adjustments, and treating preferred shares as 75% debt) for LTM March 31, 2013. Leverage remains elevated due to revenue and EBITDA falling below expected levels for the six months ended March 31, 2013 which prompted the downgrade in the corporate family rating earlier this year. Management indicated that pro forma revenues decreased $5.6 million or 2.5% in 1Q2013 compared to 1Q2012 reflecting lower political revenue, the winding down of unfavorable legacy Citadel barter transactions, and challenges related to its syndicated talk segment. Despite earlier positive pacing reports for 2Q2013, debt ratings are pressured by challenges related to turning around 10 underperforming stations in eight of its larger markets which are expected to breakeven in the second half of 2013. Management indicates that four of these 10 stations have successfully been turned around. The company's national scale, geographic and market size diversity as well as expected run rate EBITDA margins exceeding 37% (including Moody's standard adjustments) support ratings. Cumulus is focused on debt reduction and paid down $35.6 million of term loan debt in April 2013 as required by excess cash flow provisions. We expect voluntary prepayments in the second half of this year which will help to reduce leverage in the absence of EBITDA growth. Ratings incorporate the cyclical nature of radio advertising demand evidenced by the revenue declines suffered by radio broadcasters during the past recession and by the sluggish growth witnessed following the downturn. Looking forward, revenue growth is expected to be flat in 2013 due in part to the absence of significant political advertising. Moody's expects Cumulus to generate roughly $175 million of annual free cash flow versus our prior estimate of $200 million to reflect management's comments that it expects to invest roughly $25 million annually in CBS Sports Radio, Nash FM and related country format branding, its Traffic network, as well as SweetJack. "The revised SGL-2 liquidity rating reflects good liquidity due to the amendment of the 1st lien credit agreement. Previously Cumulus had limited access to the revolver commitment given reported total net leverage ratios in excess of the 6.50x test for March 31, 2013. The amendment replaces the restrictive total net leverage ratio covenant with a 1st lien net leverage test of 4.50x for June 30, 2013 which step downs by 0.25x increments to 3.75x by the end of 2014. Moody's believes Cumulus will have full access to the revolver facility given estimated 1st lien leverage of roughly 3.2x based on reported results for LTM March 31, 2013. We expect the company to maintain a minimum EBITDA cushion of 25% over the next 12-18 months. We note this financial maintenance covenant will continue to be measured only if there are advances under the revolver commitment. Liquidity is also supported by more than $5 million of balance sheet cash plus positive annual free cash flow." Moody's says the principal methodology used in this rating was the Global Broadcast and Advertising Related Industries Methodology published in May 2012. First, 'Pandora Radio' - Now 'Pandora TV'? It's not exactly "television" in the traditional sense -- any more than Pandora's streaming music service is "radio" in the traditional sense. Actually they don't even call it "Pandora TV" per se. "Introducing tv.pandora.com," says the announcement. "One of the admirable things about traditional radio is that it is truly ubiquitous – from kitchens and bedside tables to automobiles and coffee shops, wherever you go, radio is there. As Pandora works to fulfill its mission to completely reinvent radio, we too must seamlessly deliver Pandora to every possible listening environment," says Pandora. "One particularly important venue is the living room. As consumers embraced flat screen TV’s and home theater speakers, the center of gravity for music in the home shifted from the family stereo to the television. Pandora connected with this trend early and to date more than 10 million listeners have enjoyed Pandora on their internet-connected television." And now, here comes tv.pandora.com! "Today we’re excited to announce the next generation of Pandora for the living room: tv.pandora.com. This is an entirely new experience designed from the ground up for your television and remote control. This new initiative is standards-based and embraces next generation TV, game console, and set top box architectures that support open web standards. Today tv.pandora.com runs perfectly from the browser in your existing XBox 360 or Playstation 3 and the system will spread to other environments as more vendors bring standards-compliant TV’s and set top boxes to market in the coming months. It’s also a completely new approach which will allow us to evolve the '10 foot' experience of Pandora with greater flexibility and speed than ever before." Pandora's Tom Conrad writes, "We’re still in the early stages of a transition to a world where all of the devices we interact with throughout the day – our TV’s, our stereos, our refrigerators, our cars, our watches, our eyeglasses — are all connected to the internet. This then begs the questions: how will developers create applications for this incredibly diverse set of devices? We think the answer can be web standards. The world doesn’t need more proprietary platforms fragmenting the innovative efforts of developers everywhere. The PC world was transformed by the emergence of the standards-based web twenty years ago, and we think the same solution will serve to unify the coming 'Internet of things.' tv.pandora.com, and the new platform from which it was built, is our first step to lead the industry down this path." Pandora CFO Downplays Apple 'iRadio' Reports and Related Pandora Stock Price Decline Pandora CFO Mike Herring says he's not concerned yet about Apple's reportedly impending announcement of a new streaming music competitor to Pandora -- and Herring downplays that reports of a soon "iRadio" launch caused Pandora's stocks to take a hit this week. "Pandora's stock sunk further Tuesday after anticipation grew that Apple Inc. is getting closer to launching a rival music streaming service and has deals with two major labels in place," reports the Los Angeles Times. "On Tuesday, Herring played down the speculation, noting no announcements have been made and nothing has been officially launched." The LA Times quotes Herring as telling investors at the Bank of America Merrill Lynch Global Technology Conference in San Francisco, "We're waiting, like the rest of you, to find out what they're going to do. We'll compete against any real or imaginary competitor just the way we always have." Shares of Pandora fell 5.5% on Tuesday. The company's stock has fallen more than 15% since Friday to $14.38. Herring noted that rumors earlier this year that Google would launch a music streaming service had a similar effect on the stock. However, he said, fears subsided when Google actually launched the service and it was easier to point out the differences between Google Play Music All Access and Pandora. "It hasn't dented the perception of where our business can go," he said. Herring was named Pandora CFO in early February of this year. Joseph Ianniello Named CBS Corporation COO Joseph Ianniello has been named Chief Operating Officer of CBS Corporation, it was announced today by President and CEO Leslie Moonves. In this new role, Ianniello will continue to oversee all financial operations and work closely with Moonves and senior management to maximize the monetization of the Company content, including oversight of negotiations for digital streaming, retransmission consent fees and reverse compensation from affiliates. In this five-year agreement, he will continue to report to Moonves and be based in both New York and Los Angeles. "Joe's role in CBS's success these past several years has been extraordinary," says Moonves. "He's been a game-changing CFO, but he's also so much more than that. He is a tough negotiator, a great manager, and someone who brings energy, passion and a great sense of teamwork to anything he does. He is also someone who has developed incredible trust and admiration on Wall Street, with our shareholders, our board of directors and my superb senior management team, of which he is an integral part. I am proud to promote Joe to this new position, which not only recognizes the many contributions he has already made, but sets him up for all the great work yet to be done." Ianniello was named Chief Financial Officer of CBS Corporation in 2009. Before that, he served as Deputy Chief Financial Officer, where he was responsible for the Company's financial strategy across its operations, in addition to worldwide treasury, tax, information systems and technology, corporate development – including mergers and acquisitions – and risk management. Prior to that, Ianniello served as SVP, Chief Development Officer and Treasurer. Before the separation of CBS and Viacom, Ianniello held several key roles at Viacom. Pam Ciaburri Joins 'Chaz and AJ' on New Haven's WPLR-FM As morning hosts "Chaz and AJ" at New Haven's Rock WPLR-FM -- also airing on Norwalk's WFOX-FM -- say goodbye to traffic and news reporter Megan Doll, June 20, Pam Ciaburri, who has been working with the show for the past several months will officially replace Doll, who has been with the show on and off since its inception, and has worked at WPLR-FM for 20 years. Operations Manager Keith Dakin tells us Ciaburri has proved to be the perfect candidate to replace Doll. "Pam is one of the funniest people I've ever encountered," says Dakin. "Her quick wit and her ridiculous lifestyle will lead to some great on air banter with the guys." One of the "guys" -- Chaz -- says, "It goes without saying we are sad to see Megan leave. Apparently she has her priorities screwed up and is putting family first. She is like a sister you actually like to spend time with. She's very funny and talented and will be extremely missed. Pam is a hot mess that is going to add comedy to the show every time she opens her mouth. Can't wait for the ride to start." WPLR-FM -- "Connecticut's #1 Rock Station" -- based out of New Haven, airs a Mainstream Rock format. The "Chaz and AJ" morning show also airs on Classic Rock "95.9 The Fox" WFOX-FM, Norwalk, Connecticut, and serving the Bridgeport area. Both stations are currently operated by Connoisseur Media after acquiring them from former owner Cox. [So you don't confuse them with Doll and Ciaburri, Chaz and AJ are seen above left. Ciaburri appears on the right. Doll ducked the photographer. The space between Chaz and AJ is reserved for Ciaburri, previously known as "Pamela" in sales and marketing.] Change Is In the Air at Alternative WEQX-FM Lineup changes are announced at "102.7 - The Real Alternative" WEQX-FM, Manchester Vermont-Albany NY. Starting Monday (June 10) the Alternative Rock station will debut its new lineup -- including Albany-area radio veteran Jason Keller, who joins fulltime for afternoons 3-7pm. Keller, who will also serve as WEQX-FM's Production Director, is best known for his time at WHRL, WQBK and 810 WGY. He's been part of the WEQX-FM family since 2011 when he started doing fill-in work. Keller has since started work on a Master's degree, and was most recently working as a Marketing and Media Relations Associate at a law firm. Also at WEQX-FM, swing/fill-in host Kim Neaton is promoted to midday host and Music Coordinator. David "Duncan" Virr moves to nights, and continues as programmer and host of the new music specialty show "Going Underground." As we previously reported, WEQX-FM Program Director Amber Miller (Bouchard) is exiting the station, and moving to Detroit, where she's looking for her next opportunity. Today is her last day on the air at WEQX-FM. Although based in Manchester, Vermont, the station covers -- and is included in the market area of -- Albany-Schenectady-Troy, New York. Premiere Networks Syndicating 'Evolution with Pete Tong' Premiere Networks is now syndicating EDM "Evolution with Pete Tong" for CHR and Rhythmic stations. The Electronic Dance Music program expands Clear Channel's "Evolution" brand, which includes the digital station "Evolution" on iHeartRadio, and terrestrial stations "Evolution 101.7" in Boston and "Evolution 93.5" in Miami. The syndicated show is already heard on nearly 80 stations, including KIIS-FM/Los Angeles, WKSC-FM/Chicago, KYLD-FM/San Francisco and KHKS-FM/Dallas. The one-hour, weekly program features the British DJ behind BBC Radio 1's "Pete Tong Show" and the "Essential Mix" radio show, and host of "All Gone Pete Tong," which can be heard daily on Evolution 101.7 and 93.5, as well as iHeartRadio's Evolution channel. Tong showcases music from DJs and dance music producers, such as Swedish House Mafia, deadmau5, Luciano, Richie Hawtin, Calvin Harris, and others. Tong also counts down a weekly chart of the USA's favorite dance tracks. "It's been amazing to see how America has embraced Evolution on iHeart, and on FM in Miami and Boston," says Tong. "By partnering with Premiere to develop Evolution with Pete Tong, we will be giving more terrestrial stations a great entry point for broadcasting EDM content on-air, and a platform to break and showcase more Electronic Music across America." Premiere Networks EVP of Music Programming Jennifer Leimgruber adds, "The impact of EDM can be felt worldwide, and this new show represents our commitment to delivering a variety of programming that resonates with listeners and their passions. We're excited to welcome a music innovator like Pete Tong to Premiere's national lineup as we help listeners connect with and discover EDM artists and their music." Lisa Kitchener Exits Triton to Return to Clear Channel Clear Channel announces that radio veteran Lisa Kitchener has returned to the company to as the new Orlando, Florida, General Sales Manager for WFLA-AM-FM, WLOQ-FM, and the Florida News Network. For the past four years Kitchener has been VP of Affiliate Sales for Triton Media. Says Kitchener, "I missed being a part of this creative, dynamic business. I wanted to bring my energy and enthusiasm back to the front line." Previously, Kitchener was an Independent Marketing Advisor with My Marketing Director, as well as holding various management positions at Clear Channel in Ft. Myers/Port Charlotte and Punta Gorda. Clear Channel Orlando DOS Barbara Latham tells us, "It’s great to have Lisa back at Clear Channel. She brings a wealth of experience, creativity and energy to our group of stations." Katz's Mary Beth Garber to Present at UCLA Seminar Katz Radio Group EVP of Radio Analysis and Insights Mary Beth Garber will present a session Friday (June 7) for the "Innovation in Radio Programming in the Digital Age" seminar, hosted by the UCLA Extension, Entertainment Studies and Performing Arts Program in Los Angeles. Garber will share, "The Future of Radio as a Revenue Generating Advertising Medium" which will explore how radio can continue to drive revenue through expansions to new platforms, while ensuring quality content and listener satisfaction. UCLA Extension created the seven-day seminar to provide Radio Beijing representatives the opportunity to talk with their American counterparts and discuss best practices, current challenges, and future trends in radio. "I'm honored to join the UCLA Extension seminar and look forward to exchanging ideas with members from Radio Beijing," says Garber. "Radio is truly a global source of entertainment and information, and I'm excited to share the latest findings about radio in the U.S., and also gain insight on how the medium is used in other parts of the world."