Tuesday's Radio & Media News - July 30, 2013

Richard Bressler Named President and CFO of CC Media Holdings and Clear Channel Communications, and CFO of Clear Channel Outdoor CC Media Holdings today announced that media and finance executive Richard Bressler will become President and Chief Financial Officer of CC Media Holdings and Clear Channel Communications, and CFO of Clear Channel Outdoor Holdings, reporting to Chairman and CEO Bob Pittman, effective immediately. "Bressler, who has served as CFO of Time Warner and Viacom and Managing Director at Thomas H. Lee Partners, possesses wide-ranging experience and expertise in the media, entertainment, digital and out-of-home businesses as well as an extensive background in public companies, private equity and venture capital investing," says the announcement. As a member of Thomas H. Lee Partners, one of the two private equity firms that completed a multi-billion-dollar acquisition of Clear Channel in 2008, Bressler has been a Director of CC Media Holdings and Clear Channel Communications since then, positions he will continue to hold, and has been intimately involved in the company as a member of the CC Media Holdings board's operating committee. As President of CC Media Holdings and Clear Channel Communications, Bressler will work closely with Pittman "on the further development of strategies and initiatives to ensure that Clear Channel capitalizes on its unique assets." In his capacity as CFO, Bressler will succeed Tom Casey, who served as EVP and CFO of CC Media Holdings, Clear Channel Communications, and Clear Channel Outdoor Holdings, from 2010. "I know Rich very well, and we have even worked together – twice – at Time Warner. He has been an invaluable strategic partner for us in his position at Thomas H. Lee Partners, and now he will play an even bigger role in helping Clear Channel fully maximize our unparalleled assets, working closely with me, John Hogan and William Eccleshare and the rest of our leadership team to continue to build the leading multi-platform media and entertainment company in the U.S. with global reach," says Pittman. "I recruited Rich for this role because there are few people who have as deep an understanding as he does of our company and the opportunities we have to lead the industry in helping marketers meet the demands of increasingly connected consumers. I'm confident that he'll add another layer of expertise and experience as we take the company to its next level of growth, and will be a tremendous leader for our financial team. His keen strategic, financial and analytical skills will be a huge asset to all of Clear Channel." "Bob Pittman is a visionary leader, and I'm incredibly excited by the opportunity to play a more direct role in the company's next stage of growth and development,” says Bressler. "I'm a great believer in the power and potential of Clear Channel and have been proud to have a seat at the table as the company has expanded its position as a leader in the broadcast radio, digital media, entertainment and out-of-home businesses. I'm looking forward to partnering with Bob, William and John to help the company fulfill its potential as a truly transformative multi-platform media company.” Says Scott Sperling, co-President of Thomas H. Lee Partners, “There is no better, more experienced executive Bob Pittman could have recruited for this important role than Rich Bressler. Bob and his team have achieved strong revenue growth driven by accelerating increases in market share, expanding the universe of Clear Channel advertisers, and building a leadership position in the transition to digital platforms. With this traction on top of the broad process reengineering work already completed, we have great confidence in the Company and are highly supportive of Rich's transition from helping lead our investment in Clear Channel to being a dedicated executive there on a full time basis." "We are very excited about the transformation of Clear Channel in the last several years into a true multi-media platform," says John Connaughton, a Managing Director at Bain Capital. "Rich will advance this mission with his exceptional track record as an executive at several premier media companies. Having worked with Rich over the last seven years, I know he will use his experience, in-depth knowledge of the company, and enduring relationships with Bob and the leadership to continue to grow the business and bring unique skills to an already-strong senior management team." Pittman adds, "I'd like to extend my most sincere thanks to Tom Casey for his significant contributions to Clear Channel over the last several years that set the stage for the company's continued evolution. Especially notable has been all his work during the completion of the recent debt refinancings, which strengthened our financial position and prepared our company for its next stage of growth. With these transactions complete, it's a natural time for this transition, which will enable Clear Channel to maximize its potential and take advantage of the company's promise and value. We wish Tom all the best for the future." Prior to joining Thomas H. Lee Partners, Bressler was the Senior EVP and CFO of Viacom, Inc. from 2001 through 2005. He also served as Chairman and Chief Executive Officer of Time Warner Digital Media, and was Executive Vice President and Chief Financial Officer of Time Warner, Inc. from 1995 to 1999. The Chairman and CEO of Clear Channel Media and Entertainment, John Hogan, and the CEO of Clear Channel Outdoor Holdings, William Eccleshare, will continue to report to Pittman. 'Piolin'-Univision Parting Reportedly Follows Sex Harassment Claims Spanish-language radio personality Eddie "Piolin" Sotelo's mysterious sudden departure from Univision reportedly came after a performer on his nationally syndicated morning show accused him of sexual harassment. The Los Angeles Times reports that's according to documents they've obtained. Alberto "Beto" Cortez, a writer, producer and performer on the popular "Piolin por la Manana" radio program, alleged that his boss Sotelo was "physically, sexually and emotionally harassing" him for a three-year period ending last January. The claim was made in an April 16 letter from Cortez attorney Robert Clayton to executives Roberto Llamas and Jose Valle of Univision Communications. The L.A. Times also reports that in addition to the claim of sexual harassment, Cortez alleged that Sotelo ordered members of his radio production team to falsify letters in support of a high-profile campaign for congressional immigration reform, an issue that Sotelo championed on his program. Sotelo's attorney, Jeffrey Spitz, said the allegations were false and motivated by money. "A disgruntled, troubled employee has made malicious and false claims about Eddie Sotelo," Spitz says in a statement. "This was done as part of a demand for money." He adds, "The employee worked with Eddie for more than a decade. The employee's allegations of harassment and falsification of immigration letters are pure fiction intended to gain a financial settlement." Neither Cortez nor Sotelo could be reached for comment, says the Times. Univision executives declined to comment. In the documents obtained by The Times, Cortez claims that Sotelo repeatedly made aggressive and unwanted sexual advances, including grabbing Cortez's buttocks and genitals when Cortez would arrive at work in the morning. Cortez alleged that Sotelo taunted him during staff meetings, calling him by a derogatory term for a homosexual, and telling him to say that he was gay. Sotelo also asked vulgar questions about Cortez's girlfriend, according to the documents. "I have also spoken to former employees of the show who witnessed much of the harassment described herein," Clayton wrote in his April 16 letter to the Univision executives. "They too have either been subjected to or heard of Sotelo's misconduct, threats, and the retaliation he has taken against employees who have spoken out against him." Clayton asked that Univision consider reaching a settlement with his client, or else he would file a lawsuit "and the matter would become public." Borrell Associates: Radio to See 15.9% Auto Ad Decline Borrell Associates is forecasting an increase in automotive advertising spending -- but not so for radio. According to Borell's "2013 Automotive Advertising Outlook" report, auto ad dollars will be moving from radio and other traditional media to online advertising. Auto advertising is predicted to be a $32.8 billion business in 2013, up two percent from 2012, but with much of that money headed to online and mobile outlets. Borrell is predicting the category will see an 18.7 percent rise in automotive ads this year. "Digital media has reshaped the long-touted car-buying funnel. It’s been compressed it into a shot glass where researching a purchase has become so easy that consumers conduct their search to just a few months -- and do nearly all of it online," says Borrell EVP Kip Cassino. Borrell predicts that within five years, annual spending on digital video advertising will rise from $2 billion to more than $9 billion, "most certainly at the expense of local radio and TV," according to Cassino. "Automotive advertising continues to be in perhaps the deepest transition of all local advertising categories," writes Cassino. "The first wave of migration involved print classified listings, which played a role at the lower end of the buying funnel now dominated by digital media; the se Borell's "2013 Automotive Advertising Outlook" shows newspapers are getting hit hardest, with auto advertising down 29.3% while broadcast TV is forecast to be down 16.7% this year. Radio is forecast to see a 15.9% decline. But in a "big surprise," direct mail will see the top increase, up 22.9%. Online and mobile advertising are forecast to be up 18.7%. Cumulus Reports Q2 Net Revenue Up 3.1% Cumulus Media reports its second quarter net revenue grew by 3.1 percent, from $281 million to $289.7 million year-to-year. The company says, “This increase was attributable to a $4.3 million increase in local advertising revenue, a $3.9 million increase in revenue related to digital initiatives and a $2.8 million increase in revenue due to the addition of stations in the Bloomington and Peoria markets we acquired from Townsquare Media in July 2012. These increases were partially offset by a decrease of $2.3 million in cyclical political revenue.” Says Cumulus Chairman and CEO Lew Dickey, “This was a solid quarter earmarked by revenue growth and strong expense management. Our targeted growth initiatives are ramping on schedule and our merger integration and problem market turnarounds are largely complete.” RTDNA/Hofstra Survey: Radio News Minority Representation Down Slightly The percentage of minority representation in radio newsrooms is down slightly from 11.7% in 2012 to 10.9% this year -- still significantly higher than 2010's 5.0% but short of 1995's peak of 14.7%, according to the latest RTDNA/Hofstra University Annual Survey. The latest release from that survey focuses on minority and female employment in the newsroom. "The percentage of radio news departments with women rose by almost 8 points in the last year, but the percentage of women radio news directors and the percentage of women in the radio news workforce grew only slightly in the last year," writes Hofstra Professor Bob Papper. "Although the incidence of women news directors was almost identical between non-commercial and commercial stations, non-commercial stations were about twice as likely to have women on staff and had a lot more of them." While the percentage of radio news departments with women rose by almost 8 points year-to-year, the percentage of women radio news directors and women in the radio news workforce grew only slightly. An overwhelming majority (89.1%) of radio news people are Caucasian, up slightly from 88.3% in 2012 and down from previous years, while only 2.3% are African-American, down from 5.2%. Hispanic representation was up from 4.6% to 5.7%; Asian-American (1.3%) and Native American (1.6%) percentages showed gains. Among radio news directors, 90.4% are Caucasian, down slightly; 1.9% are African-American, off from 3.5% last year; 3.8% are Hispanic, up from 2.3%; the percentage of Asian-American news directors dropped by half to 0.6%, and Native American representation rose from 1.7% to 3.2%. Some 20.6% of radio news directors are women, and 34.2% of the radio news work force is female. Major market stations have far more female representation (48.2%, compared with 29.6% in large markets, 27.6% in medium markets, and 20.3% in small markets). The average radio news director has been at his or her station for over 10 years (10.5), although the median was six, says the report. Read Hofstra Professor Bob Papper's analysis here. Radio One Cincy Ditches 'The Fan' - Launches 'Old School 100.3' After only seven months as Sports Talk "100.3 The Fan" Radio One's WCFN-FM, Cincinnati, returns to Urban Oldies as "Old School 100.3" featuring "back in the day jams from the 70s, 80s and 90s.” The new "Old School" will feature core artists such as Luther Vandross, Anita Baker, Stevie Wonder, Michael Jackson, Rick James, and Whitney Houston. The station had been “Mojo 100.3” with an Urban Oldies format until it began stunting last November, ahead of a January 2 flip to "The Fan" airing programming from the CBS Sports Radio network. The syndicated "Tom Joyner Morning Show" -- which the station carried as "Mojo" -- will return to 100.3 from sister Urban Talk WDBZ-AM. Radio One, we learn, decided "The Fan" was a failure and wasn't showing any growth, even after adding local morning and afternoon Sports Talk shows. The new "Old School" is online at OldSchoolCincy.com. Kidd Kraddick Had Enlarged Heart, 'Probably Died of Cardiac Arrest' A preliminary autopsy found that David "Kidd" Kraddick, a chain smoker, had an enlarged heart and three blocked coronary arteries that most likely led to an irregular heartbeat, and he probably died of cardiac arrest, according to the Jefferson Parish Deputy Coroner's office in Louisiana. Deputy Coroner Dr. Granville Morse said Kraddick, 53, became ill during his Kidd's Kids charity golf tournament Saturday outside New Orleans, then collapsed while being driven to an emergency room. Morse added that doctors at the nearby Ochsner Medical Center campus, a five-minute drive from the golf tournament, "did really just a heroic effort to resuscitate him. They really pulled out the stops. Unfortunately, they couldn't get him back." Morse says the final autopsy report will not be complete until toxicology tests come back, but Kraddick's heart was enlarged by cardiac disease, and three coronary arteries ranged from 40 to 80 percent blocked. Those conditions can lead to an irregular heartbeat and collapse. Kraddick, who would have turned 54 in August, may not have known he had cardiac disease. Dr. Jeffrey Schussler, an interventional cardiologist at Baylor Heart and Vascular Hospital at Baylor University Medical Center in Dallas and professor of medicine at Texas A & M speculates that Kraddick's heavy smoking habit could have been responsible for the radio personality's untimely death. Says Schussler, "Smoking is the number one risk factor for heart disease. Smoking puts you at a greater risk for heart disease than it does for cancer. Usually when someone that young, in his 40s or 50s, has a heart attack, it's because of smoking." Rush Limbaugh: 'Nothing Is Going to Change' Rush Limbaugh says the latest report that Cumulus may drop his show from all of their stations is only "a public business negotiation." As we reported Monday, Politico said "Cumulus has decided that it will not renew its contracts" with Limbaugh or Sean Hannity after negotiations between Cumulus and Clear Channel's Premiere Networks broke down due to disagreements over the cost of the distribution rights. Limbaugh wasted no time addressing that news on his show. "I want to get something out of the way here at the top. There was another Politico story that ran last night about this program and the radio stations that it is on, and is going to be on, in the future. And someday, someday I am looking so forward to being able to detail all of this for you, but suffice it to say nothing is gonna happen that you will notice. Nothing is going to change. You are gonna be able to get this radio program on as many, if not more, radio stations down the road than it’s on now, and what you’re being treated to is just a public business negotiation. Negotiations have been taken public by one side of this. I thought it was done. I thought it was over with. And, folks, I would love… I mean, I love inside baseball stuff, and I would love to pass this on, but I must use proper business restraint here. But I just want to assure you, everything’s cool, and, as always, what’s on the table for this program is growth." Art Bell Returns to Radio -- On Satellite Sirius XM announces it will be the exclusive home to legendary radio personality Art Bell, marking the return of the late night host to radio with a new, expanded live, nightly call-in show on which he will explore the paranormal, unexplained and more with expert guests and listeners nationwide. Art Bell's "Dark Matter" will debut in the fall on Indie, SiriusXM channel 104, airing nightly from 10pm-1am ET. Bell will host the show from his home studio in Pahrump, Nevada -- near the storied Area 51 -- "opening the phones lines and inviting listeners and expert guests to join his uncensored, unscripted nightly conversation about a wide variety of topics including: the paranormal, near-death experiences, quantum physics, extraterrestrial life and the unusual." A 2008 inductee to the National Radio Hall of Fame, Bell was one of the top five most listened-to talk hosts in America when he was syndicated weeknights from 1993-2003. "SiriusXM is the perfect fit for me and my new show Art Bell's Dark Matter," says Bell. "Though invisible, dark matter accounts for gravitational forces observed in the universe -- expect these forces to be at work in the uncensored, unrestricted creative arena of satellite radio, a medium with truly extraterrestrial reach." Bell started in radio at age thirteen when he became a licensed amateur radio operator, a license and interest that he holds to this day. He hosted radio shows while serving in the Air Force in Vietnam, became an engineer when he returned to the U.S., and returned to the air with a late night show on a Las Vegas radio station -- a show that ultimately became his nationally syndicated show "Coast to Coast AM." Bell left that show in 2002. Angelica Balderas Moves from Adelante to Entravision: Named Sacramento SVP of Integrated Marketing Solutions Entravision Communications announces the appointment of Angelica Balderas to the position of SVP of Integrated Marketing Solutions for the Sacramento market. Balderas was most recently VP/DOS for Adelante Media Group, where she oversaw all of the company's local, national, network, and digital sales efforts. At Entravision, Balderas will be responsible for overseeing sales efforts on Entravision's radio, digital and mobile properties and marketing services in the Sacramento market. With more than 24 years of experience in national and local sales, Balderas has worked with national advertisers and their agencies to execute advertising and promotional programs across the U.S. and has received a number of honors, including the 2013 Medallas de Cortez award for excellence in Spanish radio marketing. "We are pleased to welcome Angelica to our growing team of seasoned radio executives in the Sacramento market," says Entravision EVP of Integrated Marketing Solutions/Western Region Karl Meyer. "Angelica’s appointment demonstrates Entravision’s commitment to further strengthen our sales force to maximize marketing and advertising opportunities for our clients. Angelica possesses significant expertise in both local and national sales and I am confident she will be an asset to our clients and further enhance our platforms." American Public Media Sells Greenspring Media Publishing American Public Media Group is selling its print division, Greenspring Media Group, to Hour Media for an undisclosed price. American Public Media Group is the owner of Minnesota Public Radio, Southern California Public Radio, and Classical South Florida. Greenspring Media Group publishes Minnesota Monthly, Midwest Home, RealFood, Drinks and "Where Twin Cities," as well as other magazines and travel guides. It also holds several annual events in the Twin Cities. Publisher Steve Fox will retire with the sale. MPR and Greenspring say that little else will change at the division. Regional Media Advisors represented American Public Media Group in the sale of Greenspring Media Group to Hour Media Syndicator FoxRock Communications Closing Syndicator FoxRock Communications is closing its doors after almost five years, says founder Matt Smith. The Illinois-based program service was launched by the Chicago and syndication radio veteran in late 2008 after his exit from Syndication Networks, offering shows like the Rock series "Cranked Up Live" and "The Metal Shop Live" and the public affairs show "Positive Parenting Radio." Says Smith, "FoxRock Communications is shutting down simply because the traditional model for syndication is no longer viable for me. The combination of the underfunded clients, unrealistic expectations of those clients, the fact that two major ownership groups are not allowing their stations to carry outside programming on barter, demanding cash for clearance -- actually many radio stations cutting back on barter." Smith's company is not to be confused with Irish broadcaster George Hook's company FoxRock Communications Ltd. Smith indicates his next job will probably be outside of radio, and says, "The idea of not being in this industry after 15 years is a bit odd.” Behind the Microphone: The Ins and Outs of Radio Veteran programmer Kevin Gardner is appointed Program Director of Urban AC "Smooth R&B 105.7" KRNB-FM, Dallas, effective August 18 ... Journal Broadcast Group Boise names radio veteran Ron Harris cluster Operations Manager overseeing Active Rock "100.3 The X" KQXR-FM, Triple-A "94.9 The River" KRVB-FM, Classic Rock KJOT-FM, and Classic Hits "107.1 K-Hits" KTHI-FM. Harris most recently was Operations Manager at Cherry Creek Radio in the Tri-Cities, Washington, market ... Cox AC "B98.5" WSB-FM, Atlanta, names Tripp West as the new night host. West will also serve as News Talk WSB-AM's overnight operator. West has been in the market since 1997, most recently with crosstown WYAY-FM before its flip to News Talk ... Natalie Randall joins Journal's CHR-Top40 "Power 96.5" KSPW-FM, Springfield, Missouri, as Program Director, arriving from Midwest Communications' CHR-Top40 "100.7 Mix FM" WMGI-FM, Terre Haute, Indiana, where she was Brand Manager and an on-air host ... Program Director and morning host Michael "Mike Logan" Czarnecki exits CHR-Top40 "107.5 Kiss FM" KIFS-FM, Medford, Oregon.