Nielsen Completes Arbitron Acquisition Arbitron Will Be Rebranded Nielsen Audio Nielsen Holdings today announces it has successfully completed its acquisition of Arbitron. "This is a great day for Nielsen and a natural step in our evolution," says Nielsen CEO David Calhoun. "Arbitron will allow us to analyze and understand an additional two hours of the U.S. consumer's day while bringing us another opportunity to provide advertisers with metrics on the effectiveness of the mediums that they advertise on." Arbitron is being rebranded Nielsen Audio and will be integrated into Nielsen's U.S. Watch business segment, which provides information and insights primarily to the media and advertising industries across television, online, mobile and radio. "With Arbitron, Nielsen now measures eight hours a day per person of dynamic media consumption," says today's official announcement. “Our combined capabilities offer opportunities to measure unmeasured areas that are important to the industries and clients we serve, like streaming audio, out-of-home measurements for television consumption and deeper measurement of multicultural audiences in the U.S.," says Calhoun. "Globally, this is an opportunity to expand our measurement of consumer behavior and introduce audio measurement capabilities in new markets." As previously reported, Nielsen entered into an agreement on December 17, 2012 to acquire all of the outstanding common stock of Arbitron for $48 per share or a total of $1.3 billion purchase price, funded by cash on hand and recent debt financing. Nielsen expects $0.26 of accretion to adjusted net income per share during the first full year of operations, and $0.32 of accretion to adjusted net income per share during the second year, reflecting an incremental $0.06 in year two. Nielsen says it will update its full year guidance to include the impact of the Arbitron acquisition during its Q3 2013 earnings conference call, which will be held October 23. FTC Still Seeking Comments on Nielsen-Arbitron Consent Agreement Terms Although the FTC approved Nielsen's acquisition of Arbitron -- and today Nielsen closed on it -- the FTC is not yet done with the deal. "While the FTC has green-lighted the deal, it is insisting that the parties enter into a consent agreement. And now the FTC has requested public comments about the terms of that proposed consent agreement," reports Bradford Ham at CommLawBlog. He writes, " Anyone interested in offering the FTC their views on the proposed consent agreement may file comments with the FTC through October 21, 2013." In a September 27 post, Ham noted that the "FTC’s concern arises from the proposed acquisition’s potential for the complete elimination of competition in the cross-platform media measurement service market. (A cross-platform media measurement service can measure the audience of a “television” program regardless of whether or not it was watched on a traditional television set, or through online or mobile devices.) In order to offer cross-platform audience measurements on a national scale, a firm must have access to television audience data along with individual demographic data. Establishing the infrastructure to recruit and maintain a representative sample of the population and developing technology capable of collecting the underlying data would be extremely expensive." Ham adds, "The FTC has concluded that the acquisition is likely to cause significant competitive harms in the market for national cross-platform audience measurement services. In the consent decree, the FTC imposes several requirements on Nielsen designed to remedy those anticompetitive effects. The FTC is now seeking comments on those proposed remedies." We previously reported that as part of the agreement for FTC approval of its acquisition of Arbitron, Nielsen will divest a key component of its PPM technology that's been part of the "Project Blueprint" cross-platform audience measurement system being developed by Arbitron and comScore for ESPN. Ham noted that "since the FTC has technically approved the transaction (albeit subject to the terms of the consent agreement)," the deal was able to close. "However, any comments submitted to the FTC will be taken into consideration in determining the final nature and extent of the remedies the FTC will impose on the parties and how vigorously the FTC will enforce those remedies. Anyone interested in offering the FTC their views on the proposed consent agreement may file comments with the FTC through October 21, 2013." Read the FTC's conditions on the deal in a September 20 notice from the Federal Trade Commission here. Congressman Mel Watt Introduces 'Free Market Royalty Act' U.S. Representative Mel Watt of North Carolina, as expected, has introduced his Free Market Royalty Act, which creates a "performance right" that would obligate radio stations to compensate artists for the airing of their recorded music. In a statement, Watt says, "Airtime on AM/FM radio is no different from exposure on other mediums. Cable, satellite and Internet radio also promote artists to new audiences, yet all these services pay performance royalties because clearly the value in these relationships runs both ways. AM/FM stations profit from advertising revenue. Why do advertisers pay? Because people listen. Why do people listen? To hear the songs. For many stations, take away the music and you take away the audience." According to a summary of the bill issued by Watt, "Broadcasters like Clear Channel have said they want the marketplace and not the government to be the forum where the issue of performance rights is resolved. This legislation takes them at their word and allows all parties [broadcasters/webcasters and copyright owners] to negotiate in the marketplace. But it also provides equal rights and bargaining power to both sides, by allowing recording artists to refuse to license their music should they decide -- something they currently cannot do." According to Watt's summary, the bill continues to allow for certain exemptions for noncommercial and public radio, levels the royalty playing field for terrestrial, satellite and Internet radio, and ensures that performers and musicians will continue to share in 50 percent of the royalties generated by licensing agreements as they previously did under the compulsory license process.
NAB Responds to Introduction of 'Free Market Royalty Act'
In response to Rep. Mel Watt (D-NC) introducing legislation today "that would negatively impact local radio stations across America," NAB Executive Vice President of Communications Dennis Wharton issued the following statement: "NAB respectfully opposes the legislation, and appreciates the support of 183 members of Congress who stand with America's hometown radio stations against the offshore record labels. NAB believes market-based negotiations like the recent Warner Music-Clear Channel accord demonstrate that this issue is already being addressed in the free market. This legislation would impose new costs on broadcasters that jeopardize the future of our free over-the-air service."
musicFIRST Coalition Praises 'Free Market Royalty Act' The musicFIRST Coalition released a statement praising the introduction of Rep. Mel Watt's Free Market Royalty Act Says musicFIRST Coalition Executive Director Ted Kalo, "The Free Market Royalty Act signals accelerating momentum for an AM/FM performance right and fair pay for music creators on all platforms. Like the 2009 Performance Rights Act, which passed both the House and Senate Judiciary Committees with broad, bipartisan majorities, this bill would end the decades old government taking of music creators’ performance property rights. It would, once and for all, establish a performance right for sound recordings broadcast over-the-air. The musicFIRST Coalition has been flexible in supporting a variety of approaches establishing a terrestrial right, including the 2009 bill, the 2012 Interim First Act, and this legislation. After saying no to each and every approach to date, the broadcasters have run out of excuses." Kalo adds, "We believe the current statutory license system is a benefit to music creators and services, and we support the current system. But those services who benefit most from it are its greatest critics, and those broadcasters who use the ‘market’ as a dodge to thwart a performance right have done the most to undermine a true, free market. Thank you again, Congressman Mel Watt, for your continuing leadership on behalf of artists and music creators." Nationwide 'Local Media Consortium' Plans Digital Growth Local Media Outlets Partnership to Roll Out Expanded Networks for Advertising
A strategic partnership of leading local media companies -- representing more than 700 daily newspapers, dozens of major market television and radio stations, cable outlets and all of their affiliated digital properties -- is expanding again to leverage new opportunities for revenue and audience growth. The Local Media Consortium, founded in 2006 as The Newspaper Consortium, has begun re-signing members to new agreements aimed at increasing their potential share of new revenue and audience-building programs and pursuing new relationships with a variety of technology companies and service providers.
"We see this as the next step in the evolution, growth and perfection of our ability to digitally serve our audiences so we're delighted to be part of the national Local Media Consortium," says John Paton, CEO of Digital First Media, which operates more than 800 media products in 18 states. "Much work and thinking has gone into the next wave of the Consortium by some of the best minds in our industry, and discussions are now under way with some of the top digital companies in the world."
Nickelodeon's 'Nick Radio' Launching on iHeartRadio Nickelodeon and Clear Channel Media and Entertainment are launching Nick Radio on iHeartRadio. Nick Radio promises listeners will get "All the Hits, All the Slime," featuring today's hit music, guest DJ stints by Nickelodeon stars and Nick-branded entertainment and celebrity interviews. The new channel kicks off with "Sam and Cat" star Ariana Grande, Big Time Rush and Austin Mahone. The family-targeted station will be programmed by Sharon Dastur, Program Director for New York's "Z100" and will stream on Nick.com, iHeartRadio.com and the iHeartRadio digital app. "Nick Radio is the perfect place for Nickelodeon to serve kids with the music they love and entertain them with our great characters and funny content ," says Pam Kaufman, Chief Marketing Officer and President of Consumer Products, Nickelodeon Group. "Our partnership with Clear Channel's iHeartRadio will allow us to further deepen our relationship with kids across this great platform." CCME President of National Programming Platforms Tom Poleman tells us, "It is such a great opportunity to work with Nickelodeon and create the first ever Nick Radio. The combination of Clear Channel's reach and programming expertise with the fun and dedicated audience of Nickelodeon is unique in the digital and on-air space. Introducing a family focused station like Nick Radio to the iHeartRadio platform and supporting it with an industry expert from Z100, one of the nation's top radio stations, is destined to be a homerun with both our listeners and Nick's viewers." Nick Radio, we're told, will also feature guest deejay stints by Nick Cannon, Cody Simpson and Jennette McCurdy, as well as other popular radio personalities including Z100's Mo' Bounce, Maxwell of Q102/Philadelphia, and Wendy Wild of 103.5 KTU, The Beat of New York, who will host the station's three dayparts, with Z100's Erica America on weekends. Nickelodeon plans to roll out additional programming showcasing the network's talent and content as well. Jeff Brown Named Cumulus Atlanta Market Manager Jeff Brown is appointed VP and Market Manager for Cumulus Media's six-station Atlanta cluster. He joins Cumulus after more than 15 years at Entercom Communications, most recently as VP and General Manager for Entercom's Boston stations. He was previously VP/Market Manager at Entercom Portland. "Jeff brings high energy and an unequaled desire to win to our already successful Atlanta cluster," says Cumulus EVP/COO Jon Pinch. "We are confident Jeff will contribute significantly to Atlanta’s continued growth." Says Brown, "I am honored to have been selected as Vice President and Market Manager for Cumulus Atlanta. The team in Atlanta is driving growth on these power brands as we speak. I look forward to connecting with them and adding value to their already successful effort. Cumulus Media is making significant moves that are realigning the industry and I am in lockstep with their vision to widen the audio space. To say I'm fired up to be joining this growing content company would be an understatement." Clear Channel Philadelphia Names Samuel Tatum 'Power 99' LSM Clear Channel Media and Entertainment Philadelphia names Samuel Tatum Local Sales Manager for "Power 99" WUSL-FM, effective immediately. Tatum brings more than 14 years experience and was most recently Marketing Specialist at Radio One for both the Baltimore and DC markets. He was with Radio One in DC for 10 years. He previously was Digital Sales Manager, NTR Manager, and Local and General Sales Manager. "I am very impressed by the dedication and vision Tatum has to offer the company," says CCME Philadelphia VP of Sales Anthony Fuscaldo. "He will definitely have a positive impact on Power 99 FM sales performance." Market President Richard Lewis tells us, "Tatum has tremendous leadership skills and I know he will produce extraordinary results in the coming years. He is well prepared to take Power 99 FM to the next level." Says Tatum, "I am excited to join this great group of professionals and further build our exceptional brands and properties in the Philadelphia market. Clear Channel Media and Entertainment is a leading force in our industry, and I am proud to be a new team member of this organization. Our clients, customers and community are all top priorities for me, and I look forward to taking the City of Brotherly love by storm." Judge Tosses Challenge to Liberty's SiriusXM Takeover A lawsuit by SiriusXM shareholders against Liberty Media will not go forward. Delaware Chancery Court Judge Leo Strine has ruled the suit can't proceed in court, rejecting allegations against Liberty's takeover of SiriusXM, on the grounds that the investors waited too long to challenge the decision by the satcaster's Board to enter a loan agreement with Liberty. The agreement was reached in 2009, eventually leading to Liberty taking control of SiriusXM. Plaintiffs included the City of Miami Police Relief and Pension Fund. The 2009 agreement between Liberty and Sirius allowed Liberty to buy the satellite radio company outright in exchange for a $530 million loan at a time when the satcaster was in serious trouble and faced bankruptcy and a hostile takeover in 2009. Liberty eventually bought enough additional shares to effectively take control.
Cumulus CEO Lew Dickey: Rdio Partnership 'Makes Sense' Cumulus Media CEO Lewis Dickey and Rdio CEO Drew Larner discussed their recently announced partnership, speaking with Jon Erlichman on Bloomberg Television's "Bloomberg West." Dickey said the deal "makes sense." He again noted that the deal allows the two companies to focus on what he sees as the important aspects of digital audio -- music on demand. As for the national channels, Dickey said, “SiriusXM does that today and that’s what we’re going to create in partnership with Rdio. We’re going to take all the great content from the Westwood-Dial acquisition as well as the Cumulus brands like KFOG here in San Francisco and NASH, our big country brand, and create national channels that will be on there as well.” Larner said that unlike Pandora, his company’s deal with Cumulus allows it to bypass creating a national ad sales network. “We want to have an ad-supported product and think it’s important to be competitive in the marketplace and this allows us to jump right into it by accessing this amazing company that Lew has built in Cumulus Media and they will provide the ad sales function. But in addition, the other big element to this deal is the awareness element, meaning that, Lew has millions and millions of listeners every day on all of his channels and they'll be hearing a lot about Rdio and we think that’s a great opportunity to get the word out to people who would love the service."
Behind the Microphone: The Ins and Outs of Radio Knoxville's Active Rock "94.3 The X" WNFZ-FM is "on the move" to 95.7 FM, set for October 14. Previously it was reported that South Central Media's LMA with owner John Pirkle for WNFZ-FM "could be coming to an end in October" -- and now we learn it is indeed ending ... We previously reported that Classic Country WSM-AM, Nashville, GM Tom English had submitted his resignation from the station effective September 27. Now we learn that English has been named VP of Business Development for Warner Chappell Production Music ... "ESPN LA 710" KSPN-FM, Los Angeles, talk host Beto Duran is hired to be part of the Spanish-language broadcast team for the L.A. Lakers broadcast on the Time Warner Cable Deportes channel. The team says he'll contribute to live game day coverage.
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Monday, September 30, 2013
Monday's Radio & Media News
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