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A New Radio Performance Royalty 'Tax' Battle Looming? 
Is there a new attempt to impose performance royalties for airing recorded music on broadcast radio? A North Carolina Democrat Congressman says he thinks there should be. Rep. Mel Watt says he will introduce legislation that would establish -- as it has in the past -- what the NAB calls a "performance tax" that "would negatively impact local radio stations across America." Although the legislation has yet to be introduced, or gain any major support, NAB EVP of Communications Dennis Wharton has quickly issued a statement on behalf of the broadcasters association. "NAB strongly opposes a new performance tax that would kill jobs at America's hometown radio stations while diverting millions of dollars to offshore record labels. We continue to support private, company-by-company negotiations that are driven by the free market, as is reflected by recent deals between broadcast radio stations and independent music labels. We appreciate the support of 154 members of Congress who know that local radio remains the premiere platform for exposing new music and generating sales for record labels." So far at least, there seems to be more congressional support for the non-binding resolution known as the "Local Radio Freedom Act" which opposes any performance royalties for over-the-air radio stations. Reps. Michael Conaway (R-TX) and Gene Green (D-TX) introduced the LRFA in the House of Representatives on February 15, along with 71 additional co-sponsors. An identical resolution was introduced in the Senate on March 6 by Sens. John Barrasso (R-WY) and Heidi Heitkamp (D-ND). The Local Radio Freedom Act says, "Congress should not impose any new performance fee, tax, royalty, or other charge relating to the public performance of sound recordings on a local radio station for broadcasting sound recordings over-the-air, or on any business for such public performance of sound recordings." SiriusXM Reports Record Q2 Revenue of $940M, Up 12% from 2012 
SiriusXM reports record second quarter 2013 revenue of $940 million, up 12% from Q2 2012 revenue of $838 million. Net income for the second quarter 2013 and 2012 was $126 million and $3.1 billion, respectively. Net income in the second quarter of 2012 benefitted from a $3 billion reversal of deferred income tax valuation allowances. Income before income taxes rose 47% to $202 million in the second quarter compared to $138 million in the second quarter of 2012. Adjusted EBITDA for the second quarter of 2013 reached a record $283 million, up 19% from $237 million in the year ago period. "SiriusXM's second quarter results reflect record performance on almost every vital metric: the 25 million subscriber milestone, record revenue, adjusted EBITDA and adjusted EBITDA margin. We grew our revenue at double digit rates for the sixth consecutive quarter while being very mindful of our costs as we invest in advanced IP and telematics platforms designed to provide more services to our subscribers and automakers," says SiriusXM CEO Jim Meyer. "Our increase in adjusted EBITDA guidance speaks to our excellent first half performance as well as our outlook for further growth later this year. SiriusXM has now purchased 391 million shares of its common stock so far this year for nearly $1.3 billion, and we plan to continue using our growing free cash flow and strong balance sheet in a very disciplined way to reward our investors," adds Meyer. Adjusted EBITDA climbed 19% from last year's second quarter to a record quarterly figure of $283 million, and a record adjusted EBITDA margin of 30%.
Clear Channel Signs Revenue Sharing Deal with Innovative Leisure 
Clear Channel Media and Entertainment and indie music label Innovative Leisure announce an agreement that will enable Innovative Leisure's artists to share in broadcast and digital revenue. The label's artists - including Hanni el Khatib, Rhye, Classixx, Nosaj Thing and others - will receive a share of revenue for airplay on Clear Channel radio stations as well as the iHeartRadio digital radio platform. Los Angeles-based Innovative Leisure launched less than three years ago. "Jamie Strong, Hanni and I started this label to help cultivate artists that we feel passionately about, without confining ourselves to any specific genre," says Nate Nelson, co-founder of Innovative Leisure. "Clear Channel's reach and connection to music listeners will help bring our artists' music to millions of potential new fans."
Radio One: Katz Terminating Their National Sales Deal 
Radio One says Katz is terminating its representation of them for national advertising sales. In a form 8-K filed with the SEC, Radio One says, "On July 22, 2013, Radio One, Inc., together with certain of its operating subsidiaries received notice from Katz Communications and various of its divisions and affiliates that Katz was terminating its national sales representation of the Company effective 14 months from the date of the notice, as provided under the terms of various representation agreements and a master representation agreement." The filing adds, "While the termination notice would provide for a termination of the relationship between Radio One and Katz effective September 23, 2014, the parties are in continued negotiation with respect to a new sales representation agreement. While the Company cannot guarantee that an agreement will be reached with respect to continued sales representation by Katz, Radio One anticipates completing a new sales representation agreement with Katz or another sales representative prior to the Effective Termination Date and does not anticipate any interruption with respect to national sales representation." FCC Commissioner Ajit Pai Continues Support of Radio 
FCC Commissioner Ajit Pai continues to demonstrate that he's a friend of radio. And that he remains concerned about the future of the AM band. Wednesday, Pai visited historic KDKA-AM, Pittsburgh, using the occasion to address his interest and concerns. Pai spoke of the historical importance of KDKA-AM, which dates back to 1920, as well as the history of Pittsburgh's radio stations. "The AM band is facing significant challenges. Every day it gets harder to pick up a clear AM signal. The percentage of listening done on the AM dial has sharply declined, especially among the young. That's why I have called for the FCC to launch an AM Radio Revitalization Initiative," said Pai. "We need to comprehensively review our AM radio rules and explore proposals for improving the band. Over the course of the last ten months, I've heard great ideas from broadcasters across the country, and now is the time to take action. In recent weeks, I have had very productive discussions with FCC Chairwoman Mignon Clyburn about AM radio. She is a friend to broadcasters, and I am hopeful that we will see progress in the coming months." Pai noted, "In every field, it's important for the FCC to make sure that our regulations keep up with the times. But especially when it comes to radio, we're overdue for an overhaul." He gave an example of the FCC's "Contest Rule," which requires broadcasters to "give notice of all the nuts and bolts of any contest they run in periodic over-the-air-announcements. These announcements, needless to say, aren't the most compelling content in the world, and they can lead listeners to turn the dial. Maybe this once made sense. But not in today's point-and-click world, where listeners would rather go to a webpage to read the contest rules if they want to read them at all. That's exactly what broadcasters proposed as a replacement last year, and no one opposed this common-sense proposal. It's time for the FCC to take action on this issue and others like it."
Univision (Finally) Officially Announces Exit of Eddie 'Piolin' Sotelo 
After several days of silence, Univision Radio today officially announced that Eddie "Piolin" Sotelo -- the longtime host of Univision's morning show "Piolin por la Manana" -- has exited the company. "After a ten-year run, Sotelo and Univision have agreed to part company," says Univision Radio in a news release. As previously reported, Sotelo broadcast his final show on Monday. Sotelo's program had grown to over 50 affiliates. "It's been a great run with Univision," said Sotelo, who was recently elected to the National Radio Hall of Fame. "We thank Eddie for the contributions that he has made while at Univision Radio," says Univision Radio President Jose Valle. There's still no explanation of the abrupt exit of "Piolin" which came so quickly and suddenly that Univision Radio had no replacement to offer and has been filling the morning show time slot with unhosted music. Rumors, though, are rampant that Sotelo will soon announce plans to offer a self-syndicated show, and is currently having studios prepared. Some reports say Univision found out about that planned move and decided to abruptly pull the show Monday afternoon. At least two credible sources are suggesting Sotelo could be ready to start broadcasting on his own network of stations within two weeks. Meanwhile, Univision still is silent on its plans to replace "Piolin por la Manana," although the company has told its own stations that aired the show they can't reclaim the time slot for local programming. Affiliates not owned by Univision may bail according to some reports out of Los Angeles. Clear Channel Names Kevin Mackall SVP of Visual Branding 
Clear Channel Media and Entertainment tells us that longtime MTV exec Kevin Mackall is joining CCME as SVP of Visual Branding, reporting to Tom Poleman, President of National Programming Platforms. The appointment is effective immediately. In his new position, Mackall will oversee the Visual Branding Department, a new segment of the National Programming Platforms division which will focus on visual branding for CCME, local radio stations and iHeartRadio. Mackall will manage the company's visual branding production including station logos, television commercials, outdoor campaigns and brand packages for Clear Channel events such as the iHeartRadio Music Festival, iHeartRadio Album Release Parties and the iHeartRadio Ultimate Pool Party. We're told that Mackall will also work closely with John Sykes, President of Entertainment Enterprises for Clear Channel, on creative support for all Clear Channel television programming and properties as well as original video content. "Kevin has been our secret weapon behind the visual packages for our marquee events like the iHeartRadio Music Festival as well as groundbreaking projects like our national country and top 40 television spots," says Poleman. "By having him on the team full-time, I'm excited that we'll now be able to spread his creative expertise more deeply through Clear Channel Media and Entertainment, including station branding, iHeartRadio Theater productions and logo projects." Says Mackall, "From my first experience in 2011 at the launch of the iHeartRadio Music Festival and the new iHeartRadio app, I've been gripped by the palpable energy and movement happening at Clear Channel Media and Entertainment. What's most attractive to me is that this is a brand with passion for music at its core which is embodied by every employee and reflected in everything we do, being carried out at a frenetic pace by a team of passionate, motivated, creative individuals. I join with boundless enthusiasm to be a part of leading what's to come next for the brand." Bob and Sheri Renew at WLNK-FM/Charlotte in Multi-Year Deal 
Greater Media announces that longtime morning personalities Bob and Sheri have signed "a multi-year deal" with their flagship station Hot AC "107.9 The Link" WLNK-FM, Charlotte, from which the show is also syndicated. We're not told the exact length of that "multi-year deal." Bob Lacey and Sheri Lynch joined the station in February 1992, and are now syndicated on 42 stations across the country, as well as on the American Forces Network. "Bob and Sheri are truly one of the best morning shows in the country," says Greater Media Charlotte VP and Market Manager Rick Feinblatt. "We look forward to having them entertain our valued Charlotte listeners for years to come." Their show airs on "The Link" 6-9am. CRN Digital Talk Radio Signs with iHeartRadio Talk 
CRN Digital Talk Radio signs with Clear Channel to distribute CRN's original programming through iHeartRadio. CRN's programming is part of the iHeartRadio Talk launch that gives users on-demand, fully customizable access to talk radio programming that includes news, sports, lifestyle, entertainment, finance and comedy. It enables listeners to stay connected with their favorite talk personalities while mobile or at home. "We're very excited to join with iHeartRadio to make our content available to iHeartRadio users on iHeartRadio Talk," says CRN Digital Talk Radio President and CEO Michael Horn. "iHeartRadio and Clear Channel are hallmarks for outstanding media content and presentation. CRN is dedicated to unique, diverse, and quality programming, so this pairing really works well for everyone -- especially listeners." A dozen of CRN's original shows are accessible on iHeartRadio. The PM Show series with hosts including Fred Dryer, Larry Manetti, and Robert Conrad as well as the popular What's Cookin' franchise headline CRN's offerings. Other shows joining CRN's lineup on iHeartRadio Talk include Barry Farber, Talkback with Chuck Wilder, In the Garage and the Wise Guys Sit-down Show.
Behind the Microphone: The Ins and Outs of Radio Birmingham News Talk WAPI-FM will end its simulcast with WAPI-AM, with the FM flipping to Sports Talk "ESPN Radio 100.5" and competing with co-owned WJOX-FM. Both are Cumulus stations. WJOX-FM will soon be airing the ESPN-distributed Paul Finebaum, but otherwise carries no ESPN programs, while WJOX-AM is airing the CBS Sports Radio network. Making WAPI-FM an ESPN Radio affiliate is reportedly part of a deal for the rights to Finebaum on WJOX-FM, his former station ... Dallas-based Dial Global Mainstream Country air personality Scott Gaines is named Operations Manager for the four-station Townsquare Tyler-Longview Texas cluster -- Country KNUE-FM, Rock KKTX-FM, Hot AC KTYL-FM, Urban KISX-FM -- as well as the East Texas Sports Network. He succeeds Jeff Evans who recently exited for another position. Gaines starts Monday (July 29). He previously was OM for Cumulus Killeen Texas ... Kim Reis joins Entercom as Director of Audience Digital Engagement for its 23 matkets. Previously Reis was Digital Media and Marketing Director at WJAR-TV, Providence, from 2007-2012. Prior to that, she was morning show co-host at Rhythmic CHR "Hot 106" WWKX-FM/Providence and was a morning producer at crosstown CHR-Top40 WPRO-FM ... Classic Rock "Eagle 969" KSEG-FM, Sacramento, California, morning host Walt Gray is one of several staffers who exit the Entercom cluster ... Mark Mason and Dave Anderson of the "Mark and Dave" evening show exit Talk "NewsRadio 1190 and 102.3" KEX-AM (and FM translator K272EL), Portland, Oregon, to "pursue other opportunities" ... Kevin Quinn is named Assistant PD and afternoon host for CHR-Top40 KRBE-FM, Houston, effective August 8. He's spent the last year and a half as APD and morning host at AC "96.9 More FM" WINK-FM, Fort Myers. Before that, he spent 11 years at CHR-Top40 WYKS-FM, Gainesville, where he ultimately rose to Program Director ... "Jack FM" returns to Columbus, Ohio, as WMNI-FM flips to the Adult Variety Hits format after ending its "NewsRadio" simulcast with WMNI-AM (which, as previously reported, returns to an Adult Standards format).
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From Mark Harris Broadcast Consulting
Thursday, July 25, 2013
Thursday's Radio & Media News - July 25, 2013
Clear Channel CEO Bob Pittman tells us, "Innovative Leisure has shown they can think outside the box to move both their company and the industry forward. We are excited to share the music of Hanni el Khatib, Classixx, Nosaj Thing, Rhye, Allah-Las and the label's other emerging talent with our listeners regardless of which platforms and devices they want to use to find them." According to a news release, "This agreement, along with Clear Channel's similar partnerships with other record labels, is helping to develop a sustainable Internet radio business model for all stakeholders – artists, labels, music fans and radio." Clear Channel's partnership with Innovative Leisure follows the company's revenue-sharing agreement with Fleetwood Mac - the first direct performing rights partnership between a radio company and an artist. Clear Channel has also made similar agreements with Big Machine Label Group, Glassnote Entertainment Group, eOne, Dualtone, DashGo, rpm Entertainment, Robbins Entertainment, Naxos, Wind-up Records, Fearless Records and Zojak World Wide. 
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