Friday's Radio & Media News - July 26, 2013

'SoundExchange Praises Congressman Watt's Plan to Introduce a Performance Rights Bill' (Watt Says This One Is Different) "SoundExchange Praises Congressman Watt's Plan to Introduce a Performance Rights Bill" is the headline on a news release from SoundExchange. It says, "Congressman Mel Watt (D-NC), Ranking Democrat on the House Committee on the Judiciary's Subcommittee on Courts, Intellectual Property and the Internet, announced his intent to introduce a bill that would require AM/FM radio broadcasters to pay recording artists and labels for the use of their songs played over-the-air." That sets the stage for this: "SoundExchange praises Congressman Watt for his leadership on behalf of music creators – particularly his continued effort to address the glaring lack of a sound recording performance right for AM/FM radio," says SoundExchange President and CEO Michael Huppe. "Congressman Watt has been a long-time champion for musicians' rights, and a true believer in the value music brings to our daily lives. Corporate radio – which earns $15 billion in annual revenue – doesn't pay a cent to the recording artists and labels who create the art that 'draws the crowd' to their airwaves. We are thankful for the Congressman's actions to remedy this injustice," he said. Of course, SoundExchange is "the nonprofit performance rights organization representing the entire recorded music industry. The organization collects statutory royalties on behalf of recording artists and master rights owners for the use of their content from satellite radio, Internet radio, cable TV music channels and other services that stream sound recordings." Rep. Melvin Watt Says This Bill Is Different Meanwhile, Watt says the new version of the bill differs from the 2009 version that would have made a performance royalty mandatory for terrestrial radio. Watt says the new legislation will merely establish that musicians have public performance rights for their songs. "Once the performance right is recognized for musicians, the radio station will be incentivized to avoid legal action against themselves by entering into an agreement. We think this brings the parties to the negotiating table in a way that has not happened before," Watt told The Hill. "It would recognize a performance right so [broadcasters] would have to sit down with artists and either work out a regime on their own or be subject to litigation about the value of what they're playing." The measure is expected to be introduced before Congress takes its annual recess in August. An aide told The Hill that the bill could be introduced as soon as next week. Beasley Reports Second Quarter Net Revenue Up 8.3% Beasley Broadcast Group reports second quarter net revenue was up by 8.3 percent, from $24.8 million to $26.9 million year-to-year. For the first half of 2013, net revenue grew by 7.4 percent to $51.7 million. Station operating income fell by 0.7 percent to $10.1 million, while operating income was down 3.6 percent to $7.4 million and net income dropped 38.9 percent to $2.4 million. The declines, however, says Beasley, are in comparison to Q2 2012, when a pre-tax $0.8 million music license fee settlement with BMI had the effect of reducing station operating expenses in that quarter. Same station net revenue rose 4.2% in the quarter. Beasley says that increase "reflects strength in the company's Philadelphia, Fayetteville and Las Vegas market clusters, including the acquisition of KOAS-FM in Las Vegas during the 2012 third quarter." Chairman and CEO George Beasley tells us, "Beasley Broadcast Group generated its fourth consecutive period of top line growth as second quarter net revenue rose 8.3 percent and same station net revenue increased 4.2 percent. The increase in second quarter revenue reflects strong national and digital revenue growth which contributed to strength in several market clusters including Philadelphia, Las Vegas, Ft. Myers and Augusta. Overall, for our five markets that report to Miller Kaplan -- which represent approximately 75 percent of our total second quarter revenue - Beasley station clusters grew revenue by 8.4 percent while the total revenue for all reporting radio stations in these markets declined by 2.4 percent for the quarter. We attribute our out-performance to our organization-wide focus on strong core programming and targeted localism, both of which are contributing to the Company's ratings strength in its markets." He adds, "Notwithstanding the solid revenue growth, comparisons of our other financial metrics with the year-ago period are clouded due to the operating expense credit in last year's second quarter, and certain charges in the 2013 second quarter including a loss on the early extinguishment of debt and a prepayment fee incurred in connection with the refinancing of our second lien debt. In addition, recent initiatives in the areas of sales, programming and the further expansion of our digital offerings are expected to drive long-term revenue growth, but are resulting in higher operating expenses on a short-term basis." Fisher Communications Q2 Revenues and Income Down Fisher Communications reports second quarter revenues were flat at $42.1 million, with radio revenue off 2% to $5.4 million, blamed on "market softness." Radio cash flow was off $150,000 to $1.7 million. Net income fell from $4.3 million to $400,000 (including $3.9 million of pre-tax strategic transaction-related expenses. Without those expenses, net income would have been $2.8 million (31 cents per share), reports Fisher. President and CEO Colleen Brown, however, put a positive spin on Q2. "The second quarter marked a continuation of our positive momentum, with Fisher delivering another solid quarter financially and operationally. Once again our performance highlights the strength of our broadcast stations in their respective markets, which continued to climb in ratings rank and received a number of coveted awards during the quarter. KOMO 4 News, Fisher's flagship station in Seattle, recently won 15 Regional Emmys, including the most prestigious Station Excellence Award. And for the second consecutive year, KOMO 4 won Best Evening Newscast, and for the third consecutive year, Best Morning Newscast." Brown adds, "We are also pleased to announce that in the second quarter we closed our acquisition of assets of KMTR(TV) in Eugene, Oregon. We look forward to working with the KMTR team to leverage our strengths, reach and resources to better serve the Eugene community." Fisher, of course, is being acquired by Sinclair Broadcasting. CBS Radio Launches 'La Grande 107.5' in Dallas CBS Radio Dallas-Fort Worth introduces "La Grande 107.5" KMVK-FM, featuring Regional Mexican "hits by today's most popular artists." The station flips from Spanish CHR "Mega 107.5" to the Regional Mexican format. Program Director Jimmy Gonzalez tells us, "La Grande 107.5 FM brings together some of Spanish radio's most talented on-air personalities with the very best in Regional Mexican music." Gonzalez is also VP of Spanish Programming, for CBS Radio. He says Marconi Radio Award-winning personality Edgar "ShoBoy" Sotelo will continue to host mornings 5:30-10am, while afternoons 3-7pm will feature Pelos Parados, who joins the station. Additional on-air staff, we're told, will be announced at a later date. The new "La Grande 107.5" is online here. As "Mega 107.5" with Spanish CHR, KMVK-FM has trailed Univision's Regional Mexican "La Que Buena 94.1" KLNO-FM, with which the CBS Radio station will now directly compete. SBS Names Cesar Daniel Ruiz Chicago 'La Ley' Program Director Spanish Broadcasting System appoints Cesar Daniel Ruiz as Program Director of Regional Mexican "La Ley 107.9" WLEY-FM, Chicago, effective immediately. The station has been without a PD since last October, when Jose Luis Marquez, aka "El Pitufo" was shown the door as SBS said his position "was eliminated." Ruiz, we're told, will have overall oversight and responsibility for on-air and digital aspects of the station. Most recently he was at "La Raza 102.3" and "La Mega 96.5" in Atlanta from 2009 to 2013. In 2007, as its first PD, Ruiz helped launch "La Raza 106.3" WRAZ-FM, Miami. "We are proud and thrilled to welcome Cesar back to the SBS family. We are sure that he will do great things here and contribute greatly to bringing La Ley higher ratings," says SBS Chicago VP of Sales Gerardo Reyes. "Cesar's broad knowledge and extensive experience in radio programming make him a tremendous addition to our team," adds SBS COO Albert Rodriguez. "His expertise as the executive-in-charge of many successful programs and understanding of our audience will be a strong asset as we build on the success of our programming in Chicago." Ruiz started in radio business as a board operator in Los Angeles in 1996. Jonas Brothers to Headline Kidd Kraddick's 'Kidd's Kids' Concert Nationally syndicated radio host Kidd Kraddick announces that his first benefit concert for his "Kidd's Kids" charity will be headlined by the Jonas Brothers. The event is set for August 15 at the Dallas House of Blues. "Kidd Kraddick in the Morning" is based in Dallas, syndicated by his own YEA Networks. In addition to the Jonas Brothers, Kraddick tells us that Jason Derulo, Andy Grammer, Cimorelli and Tim Halperin are also on the bill for the charity concert. "The Jonas Brothers have supported Kidd's Kids since 2007, when they came to our send-off party at the height of their fame; so we knew all we had to do was ask and they would be in," says Kraddick. "This is turning into a really cool, diverse group of artists, and I'm so grateful to all of them for giving their time to Kidd’s Kids when they could be making big money elsewhere." Kidd's Kids is a program of the Kraddick Foundation, established in 1991 with the goal of making a difference in the lives of terminally and chronically ill children. Each year, Kidd's Kids offers five days of "suspended reality" to children whose lives have been ravaged by disease, with an all-expenses paid dream vacation to Disney World for the kids and their immediate families. Study: People Exaggerate New Music Interest Although many studies continue telling Hit Music Radio that listeners want to "discover new music" rather than just hearing the same hits over and over, a new study from Washington University finds that while consumers claim they want to hear new music, they end up choosing songs they already know. The new study notes that familiarity is especially appealing when people are busy or performing cognitively difficult tasks. "Does 'familiarity breed contempt' or is 'to know you is to love you?'," begins the report. "In this research, we explore the role of familiarity in music choice. We show that although consumers say they would prefer to listen to unfamiliar music, in actuality familiarity with music positively predicts preference for songs, play lists, and radio stations. Familiarity with music is at least as good, if not a better, predictor of choice as are liking, satiation (which actually positively predicts choice), and regret. We suggest that the need for familiarity is driven by consumers' low need for stimulation in the music domain, and show that when the need for stimulation decreases, the power of familiarity significantly increases. In addition to their theoretical contribution, these results are informative for music managers determining playlists, for the promotion of music events and products, and for advertisers selecting the most potentially lucrative music venues." Read the full report on the study (pdf). House Communications Subcommittee Passes Two FCC Reform Bills The House Communications Subcommittee Thursday passed two FCC reform bills -- the FCC Process Reform Act and the FCC Consolidated Reporting Act. Both now go to the full committee. Similar bills were approved in 2012 by the subcommittee and ultimately the full House but they never passed in the Senate. As we've previously reported, the FCC Process Reform Act would require the Commission to place a time limit on its decision making process, setting a minimum time for public comments and giving the Chairman less power over the FCC's agenda. The FCC Consolidated Reporting Act would eliminate outdated studies, while consolidating other studies into a biennial release, and would initiate a state-of-the-industry report. CBS Corporation Expands Share Repurchase Program CBS Corporation's Board of Directors has expanded its share repurchase program to a total availability of $6 billion, an increase of $5.1 billion. Since the share repurchase program was initiated in January, 2011, through the end of the second quarter of 2013, CBS has returned $3.75 billion of value to its shareholders. In addition, the board has approved a quarterly dividend on the company's stock of 12 cents per share. The dividend is payable on October 1 to shareholders of record on September 10. Mark Panetta Launches Clear Riffles Marketing and Research Former DMR Interactive SVP of Marketing Strategy Mark Panetta announces the launch of Clear Riffles -- a new marketing and research agency. Panetta, who spent 17 years with the Cincinnati-based strategic marketing consultancy, says his new venture is being created because "companies who specialize in direct marketing for radio have been more focused on the vehicle and the destination than on the content they deliver. That is, they spend all their time on WHERE and HOW to advertise and little on WHAT TO SAY. Yet, in the most successful advertising campaigns of the recent decade – Apple vs. PC, The Geico Gecko, Target Stores rebranding, etc. – it's the perfectly executed message that mattered most. Success is the result of a solid strategy based on understanding consumer perceptions and needs. When you get that right, powerful creative can follow. Where and how you advertise is then a matter of mechanics." Panetta says Clear Riffles was founded to fill the creative void by designing radio marketing campaigns that truly connect radio stations with today’s listeners. He says this is accomplished with more emphasis on the creative process starting with proprietary research that illuminates current consumer views and attitudes. And he adds, "It's the hard work others in our field are not set up or qualified to do." Panetta can be contacted at Mark@ClearRiffles.com. Behind the Microphone: The Ins and Outs of Radio Chicago Public Media, the parent of WBEZ-FM, loses its leader, as CEO Torey Malatia resigns after 20 years, during which he worked on increasingly changing WBEZ-FM from music to News Talk and Information programming. No successor is immediately named ... Scott Corchin (also known as Scotty Kay and Special K) exits Clear Channel's CHR-Top40 "103.5 Kiss FM" WKSC-FM, Chicago, where he was evening host and Music Director, reportedly a budget-cutting move because, according to Chicagoland Radio and Media, Corchin's "ratings were beating those of rival WBBM-FM 'B96' in the all ages numbers, the 25-54 demographic, and the stations' target demo of 18-34 year olds." Weekend host Eric Z is now doing the evening show ... Bill White is named Program Director at News Talk "104.1 The Truth" KQTH-FM and Sports Talk "ESPN Tucson" KFFN-AM-FM, Tucson, Arizona, replacing Ryan McCredden who exited to join CBS Radio Houston ... Tony Tecate moves from afternoons to mornings at Rhythmic CHR "Wild 101" KWYD-FM, Boise, taking over from former morning host Rick Moorten who exits for mornings at "Jammin' Z90" XHTZ-FM, San Diego. Tecate continues as Assistant PD and Music Director at "Wild 101" ... Comedian, actor and radio personality D.L. Hughley will replace Skip Murphy as Reach Media's syndicated afternoon host. Murphy replaced Michael Baisden when he exited earlier this year. Hughley was the former morning host on "98.7 Kiss FM" WRKS-FM, New York ... Clear Channel's "Wild 95.5" WLDI-FM, West Palm Beach, adds Premiere-syndicated Elvis Duran for mornings -- as the longtime "KVJ Show" (Kevin Rolston, Virginia Sinicki and Jason Pennington) exits for its move to Cox Media Group's Hot AC "The Coast" WFLC-FM, Miami ... T.J. Raphael joins "The Takeaway" as Digital Content Editor, from Folio magazine where she was Senior Editor. "The Takeaway" is produced by WNYC-FM, New York, and Public Radio International, in collaboration with New York Times Radio and WGBH-FM, Boston, currently airing on 200 affiliate stations.