Tuesday's Radio & Media News - August 27, 2013

SoundExchange Sues SiriusXM for Digital Royalty Underpayment SoundExchange is suing SiriusXM for underpaying digital royalties for music artists on recordings, including ones from before 1972. The lawsuit, filed in the U.S. District Court for the District of Columbia, says that from 2007 through 2012, Sirius XM "systematically" underpaid SoundExchange for the statutory license that allows the service to air recordings to its millions of paying subscribers. SoundExchange claims the satellite radio service reduced by 10 to 15 percent the gross revenues it reports to calculate the royalties because that corresponded with performances of pre-1972 recordings. The royalty rate that would be charged against those gross revenues ranged from 6 percent in 2007 to 8 percent in 2012, according to SoundExchange. "We cannot sit by and watch this multi-billion dollar company reap record profits from the creative contributions of artists and labels without paying them everything they deserve," says SoundExchange CEO Michael Huppe in a statement. In the suit, filed Monday, SoundExchange says SiriusXM took the position that the statutory license established under federal law does not cover pre-1972 recordings. Sound recordings were not given federal copyright protection until 1972 and instead relied on state law for protection. The lawsuit also accuses SiriusXM of excluding from its revenue calculations money it earned from customers subscribing to its SiriusXM Premier package and of failing to make timely royalty payments. The lawsuit seeks $50 million to $100 million or more, along with appropriate late fees and interest. The case is SoundExchange Inc v. Sirius XM Radio Inc, U.S. District Court, District of Columbia, No. 13-01290. Good Signs for 2013 Radio Advertising Revenues? Is radio advertising revenue doing better this year than we thought? New York Market Radio (NYMRAD) reports radio advertising revenues increased 7.6% for the first five months of 2013 compared to the same period in 2012. Meanwhile the Southern California Broadcasters Association (SCBA) reports a 3.8% gain in July advertising revenues. Both reports cite revenue reports from Miller Kaplan Arase. But those are the top two markets. The RAB recently reported that radio ad revenues for the first half of 2013 were "flat" compared to the same prior year period, and many analysts have said to expect an overall 2013 increase of only one to two percent. Nevertheless, we in the radio industry continue to seek out good news, or hopes of same, concerning revenue, and both New York and Southern California (including Los Angeles) give us some encouragement. "It’s quite a story to see New York Radio Market Revenues up by over 7% year to date through May 2013," says NYMRAD Executive Director Deborah Beagan. "That’s the fastest growth among the Top 10 markets in what is -- outside of New York -- a flat growth scenario nationwide. The key to New York Market Radio’s success is live and local content that engages the audience. For the 92% of New Yorkers who listen to Radio, this is their hometown and their favorite stations. In addition, New York Market Radio stations have significantly invested in the digital arena to provide multiplatform options to advertisers. The future of effective advertising lies in the smart integration of traditional and digital media. I am extremely enthusiastic about the second half of 2013." Says SCBA President Thom Callahan, "Our reported revenue for July 2013 made it another banner month for Southern California radio. According to Miller Kaplan, Los Angeles advertising revenue was up 3.8 percent over July 2012 with eight of the top 10 advertiser categories growing over the same period." On a year to date basis, "Education was up 41.5 percent, transportation was up 32.6 percent, department stores/shopping centers up 40.7 percent, and appliances/electronics up 82.8 percent." Callahan adds, “Beyond the impressive 3.8 percent overall growth, the real story to July's successful report is new business. On a YTD basis, Southern California radio attracted an astounding 485 new clients who invested a record $30,550,000 through July 2013." Triton Digital: July Online Audio Listening Was Down Online streaming audio listening was down for July, according to Triton Digital's monthly Internet audio rankings, continuing the expected summer slump. The newly released July online audio Top 20 Ranker -- "a listing of the top-performing Internet audio stations and networks" based on Average Active Sessions -- shows Pandora again in the top Domestic Rankings position (AAS Monday-Friday 6am-8pm), but with a decline from 1.7 million AAS in June to 1.656 million in July. Session starts rose to 888.2 million from 814.9 million. Clear Channel was again ranked second, but with its AAS also down -- from 335,571 in June to 316,605 in July. The remainder of the top ten remained mostly unchanged for rankings. Slacker was third, followed by Cumulus, CBS Radio, NPR Member Stations, EMF Corporate, Cox Radio, and ESPN. Univision moved into the top ten. On Triton Digital's July All Streams Ranker (M-F, 6am-8pm), Clear Channel was again number one, but its AAS was down from 337,804 in June to 319,096. Prisa Radio remained in the second position, with the top ten rounded out by Slacker, Cumulus, CBS Radio, NPR, EMF Corporate, Karnaval.com, Cox and ESPN Audio. Salem Names Skip Stow Colorado Springs General Manager Salem Communications announces that Skip Stow has been named as General Manager of the company's Colorado Springs cluster of radio stations. "Skip brings over 30 years of media experience to Salem from his current position as General Manager for Townsquare Media in Amarillo, Texas," says the announcement. "He has also served in a variety of management roles for Tyler Media in Oklahoma City and Gannett in Kansas City and Dallas." Salem Radio Division President David Santrella tells us, "Skip brings a great deal of know-how and leadership to Salem. Colorado Springs is such an important market and we are delighted to have someone of Skip's experience to lead our team." Stow will begin with Salem on September 3. Times-Shamrock Selling Off Some of Its Newspapers, Will Use Proceeds to Further Invest in Radio Properties Times-Shamrock Communications is selling off a number of its newspapers, with plans to use the proceeds to further invest in its radio properties. Up for sale are Times-Shamrock's five alternative weekly papers in Dallas, San Antonio, Cleveland, Orlando and Baltimore, as well as four daily newspapers in Pennsylvania, Virginia and the Virgin Islands. Times-Shamrock, based in Scranton, is the parent company of radio broadcaster Shamrock Communications, which owns stations in Scranton, Baltimore, Tulsa, Milwaukee and Reno. The sale process will be handled by Cribb, Greene and Associates, a Bozeman, Montana-based merger-and-acquisition firm. Managing Director John Cribb says the company is willing to sell the papers off individually or as a group, though the preference would be to sell them as a group. Cribb defined the process as being at “the initial stage” and a six-month schedule is typical for this sort of sale. Cribb says the company will be visiting newspaper sites involved in the potential sale and then will begin the process of marketing the properties and seeking potential buyers. A list will be created of potential buyers and presented to Times-Shamrock and negotiations will move along from there. 'Tim and Willy' Returning to Arizona Country Radio on Six Stations "Tim and Willy" -- Tim Hattrick and Willy D Loon -- along with Andrea Hiland, will return to the air with a morning show in Arizona on six signals across the state in a partnership with Skyview Networks. A little more than a year ago, "Tim and Willy" exited CBS Radio’s Country KMLE-FM, Phoenix, and haven't been heard on-air since, but that changes on September 16. Their new three-hour weekday morning show will be heard on Country stations "94.1 The Ride" KRDE-FM, San Carlos; KDAP-FM, Douglas; KZUZ-FM, Show Low; "Route 66 Radio" KINO-FM, Winslow; "Z92"KZUA-FM, Holbrook; and "K Triple J" KJJJ-FM, from Laughlin, Nevada. The show will also play 24/7 on an audio and video stream on TimAndWilly.com -- where they currently are announcing, "We are back!" They tell us that Skyview Networks -- "syndication specialist for talent seeking satellite distribution, national sales representation and state-of-the-art production" -- will provide the studio, radio satellite distribution, and production of the show's live web stream. "With Tim and Willy as talent and producers this time, the show aims to bring a friendly local feel to its listeners, with more personality, country music and an entertaining cast of characters," says Skyview. Hattrick tells us, "We’ve worked with some excellent people in our career. None better than Skyview! They told us: Dream the dream. We did, and together we’ve created the Tim and Willy Show we’ve always wanted." DJ Lynnwood and Sun Broadcast Group Partner for EDM Shows Sun Broadcast Group enters into a national sales representation agreement with DJ Lynnwood for Electronic Dance Music (EDM) shows for national distribution on broadcast radio station. The content, we're told, is designed and custom tailored for CHR/Top 40, Rhythmic CHR, Hot AC and Dance formats. Stations will be able to choose from "The Mix Show" weekend two-hour Mainstream Mix of today's dance music hits and remixes, or the "Earthquake Mix" two-hour weekend show for EDM loyalists. "Electronic Dance Music has exploded onto the American music scene and festivals are held year round, pulling in millions of dollars for both disc jockeys and concert promoters," says Sun Broadcast Group EVP Steve Gallagher. "We are thrilled to be working with DJ Lynnwood, a pioneer of EDM and world renowned in Dance Music. He has been associated with some of the top performers in the industry, including Beyonce, Enrique Iglasias, Alanis Morisette, Paul Oakenfold and others." DJ Lynnwood tells us, "In this highly competitive PPM world where content is king, I am excited to be working with Sun Broadcast Group and their group of experts. I live EDM, it's what I do every day and at least three nights a week. This billion-dollar 'underground' genre is exploding into mainstream pop culture. I am thrilled that Steve Gallagher and his team are ready to champion our progressive products to my friends at radio." Beasley ASU Media Complex Officially Opens Beasley Broadcast Group tells us that the George G. Beasley Media complex has officially opened on the Appalachian State University (ASU) campus in Boone, North Carolina. The state-of-the-art broadcasting complex is named for Beasley Broadcast’s Founder, Chairman and Chief Executive Officer George Beasley, an ASU alumnus. He received an undergraduate degree in 1958 and completed his Master of Arts in educational administration in 1960 at the school. He tells us, “I not only envision Appalachian being one of the top schools in communications in North Carolina, I think that over the next few years it will become the premier school of broadcast communications in the Southeast and maybe one of the top 5 in America…This building isn’t about George Beasley and his family, it’s about the many hundreds of students we expect to come through this building.” The complex is an 18,000 square-foot media facility that houses the Department of Communication’s radio and television studios, classrooms, labs and faculty offices. The department’s 24-hour, student-managed radio station is WASU-FM (90.5). . NAB Deputy General Counsel Valerie Schulte Retires After more than three decades of service, NAB Deputy General Counsel Valerie Schulte is retiring from the organization, Friday (Aug. 30). Since joining the NAB in 1980, Schulte has worked on many of the most important issues before the FCC for free and local broadcasters -- including children's television regulations, the digital TV transition, digital radio issues and legal issues related to satellite radio. Says NAB EVP of Communications Dennis Wharton, "The NAB family wishes Valerie nothing but the best in her retirement." And from us in the radio industry, thanks for 33 great years of service, Valerie! Behind the Microphone: The Ins and Outs of Radio Ron Ahern returns to the CBS Radio Pittsburgh cluster as Creative Services Director for Adult Top 40 "100.7 Star" WBZZ-FM and Country "Y108" WDSY-FM. Ahern previously worked as creative assistant and producer at the cluster. In his new role, he replaces Drake Donovan, who left earlier this summer to focus on his voiceover company, through which he continues as the station voice for "Y108" ... After eight years, morning show host Helen Glover is out at Clear Channel Talk WHJJ-AM, Providence. Glover says her replacement will be Ron St. Pierre, who was laid off by crosstown rival WPRO-AM in February ... Cox Media Group's Hot Talk "102.5 The Bone" WHPT-FM, Tampa, ousts two longtime personalities -- Matt "Spice" Loyd, host of night staple "The Spice Show" and overnight (3-5am) host Chris Fisher ... CHR/Top 40 WPST-FM, Trenton, NJ, APD/MD and afternoon host Matt Sneed exits after 12 years with the station ... Assistant PD/Music Director and on-air host Darren Rose exits Alternative KYSR-FM, Los Angeles, after six years with the station ... Clear Channel Panama City Operations Manager Gary Nolan exits ...Rhythmic KKUU-FM, Palm Springs, Program Director Clarence Barnes exits ... Hot AC "Star 94.1" WSTR-FM, Atlanta, brings in Mike Marino from CHR/Top 40 WHTI-FM, Richmond, Virginia, to host afternoons starting in September. Marino replaces Sari Rose, who remains with the station. Marino most recently was WHTI-FM's Program Director and afternoon host ... Classic Rock "Rock 107" WEZX-FM, Wilkes Barre-Scranton, morning host Dave Direnzo exits. Former morning host Eric Logan returns to mornings - now as "The Prospector" ... Rhythmic CHR "Power 98.3" KKFR-FM, Phoenix adds Dee Garcia to mornings with MC Magic. Garcia previously was at Hot AC clustermate "My103.9" KEXX-FM.