After a year of stepped-up dialogue between radio and automakers, the two industries are getting serious about collaborating on AM/FM radio’s presence in the connected car. This more cooperative spirit between two industries comes after the Radio Board of the National Association of Broadcasters directed the trade group to become more proactive in working with automakers. Fulfilling that mission has been priority number one for NAB VP of Advanced Engineering David Layer, working with a group of consultants that includes Jacobs Media president Fred Jacobs, along with John Ellis, the former head of Ford’s Developer Program. Layer and his team have become regulars at the big auto shows and conferences

and have participated in hackathons with Ford, General Motors and Honda to develop new automotive apps that enhance the in-car radio experience. “As we talk to the automakers and explore how we can make radio even better in connected cars and more advanced car designs like autonomous vehicles, I’m confident that the position of radio in the car is going to stay right where it is,” Layer says. The NAB isn’t alone in hearing that message from automakers. Michele Laven, president, Strategic Partnerships Group, iHeartMedia, says, “I have not spoken to an [automaker] that will disagree with the power of our radio stations and how we connect with the audience. Consumers love apps

Weekly News Recap May 21-25, 2018

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and they love them in their car—but in addition to AM/FM radio, not instead of it.”

Job No. 1 for the NAB has been working to make radio “look as good as it sounds” in the car, Layer says. As Inside Radio reported in December 2017, alongside the NAB, Jacobs Media last year conducted an audit of radio’s visual appearance in the connected car in three markets – Philadelphia, Charlotte and Grand Rapids. Based on the audit results, Jacobs said radio got an “incomplete” score and suggests that the industry has more work to do. At the 2017 Radio Show, the NAB rolled out a digital dash report and best practices guide and has since been encouraging radio groups to audit their appearance on the dash and get busy implementing the report’s best practices.

Beyond ensuring that radio’s digital screen appearance in the car is consistent with its streaming and satellite radio competitors, the industry and the NAB are working to evolve and innovate the in-car radio experience. Those efforts currently are focused on what’s known as hybrid radio, which combines the efficiency and coverage of over-the-air broadcast with IP-delivered content for a richer, more interactive experience.

Layer points to the new Audi A8 as an example of how hybrid radio implementation could ultimately pan out. As the first vehicle to offer it, the high-end A8, currently only available in Europe, was showcased at the Radio DNS booth at the NAB Show last month in Las Vegas. Fully touch screen-activated, it includes a location-aware live listening guide that is supported by

hybrid mobile broadband technology. The A8 radio uses a technology known as “service following,” which means it prefers the over-the-air digital signal, but will switch to an analog FM version of the signal if digital transmission is not available. And when FM can’t be received, it switches to a streaming audio version of the station.

“Service following” is also what Experi has cooked up with its proprietary DTS Connected Radio platform, which became available for automotive integration at the beginning of this month in North America, Europe and Asia, although Experi hasn’t yet announced any auto partners.

One hurdle to making hybrid radio a reality is getting carmakers to adopt a standardized platform. To that end, the NAB is working with GENIVI Alliance, which collaborates with hardware and software companies to develop open source platforms for automakers to use in their infotainment systems. As part of its Pilot program, the NAB is working with the consortium to incorporate hybrid radio features into their platforms.

Radio Cozies Up With Automakers On Dashboard Of The Future.

At $28.3M, LA’s ‘K-Love’ Is Top Billing Hispanic Radio Station. Univision captured half of radio’s top 10 billing Hispanic ra-dio stations last year, including four of the top five. Spanish Broadcasting System placed two stations in the top 10, while Entravision, Liberman Broadcasting and iHeartMedia each had one. The new 2017 Hispanic radio revenue numbers come from new data provided to Inside Radio by BIA/Kelsey.Univision’s romantica “K-Love” KLVE Los Angeles (107.5) brought in 2017 revenues of $28.3 million, No. 2 SBS tropical “Mega 97.9” WSKQ New York booked $23.5 million, Univision regional Mexican “Buena 102.9” KLTN Houston had $22.5 million in 2017 revenues, Univision regional Mexican “Que Buena 105.1” WOJO Chicago logged $19 million, and No. 5 Univision regional Mexi-can “ZonaMX 101.9” KSCA Los Angeles reaped $16.5 million. Nine of the top 10 are in the top six radio markets—New York, L.A., Miami, Chicago and Houston—with the notable exception of No. 10, iHeart tropical “Rumba 100.3” WRUM, which is all the way down in the No. 31 radio market, Orlando. It scored $14 million in 2017 revenue. See more HERE

KLAX Drops A Full Share In Revised L.A. March Ratings. Nielsen reissued the March 2018 Los Angeles ratings Tuesday and most of the market’s top 20 stations either gained a tenth of a share in total audience or stayed flat. However, Spanish Broadcasting System regional Mexican “La Raza” KLAX-FM (97.9) lost a full share in the revised 6+ ratings, declining from a ninth place 3.4 in the original March numbers to a 15th place 2.4 in the revised ratings. The reissued March ratings are the first of seven monthly ratings reports to be redone, following the removal of four homes from Nielsen’s L.A. PPM panel. With KLAX dropping out of March’s top 10, Entercom’s “1070 NewsRadio” KNX moved from tenth place into ninth (while staying at a 3.2) and CHR sister “97.1 Amp Radio” KAMP advanced into the top 10 from 11th (2.9-3.0). The rankers of the other top 10 stations weren’t affected. But eleven stations in the top 20 added a tenth of share in the reissued ratings. On May 14, Nielsen informed clients that it was taking the unprecedented action of reissuing L.A. radio ratings going all the way back to October 2017 after an impact analysis of back data showed the four homes didn’t meet its standards. Nielsen removed the suspect households before last week’s release of the April ratings.See more HERE

With Analytics, iHeart Aims To ‘Claw Back’ Dollars From Digital.As radio looks to reclaim dollars that have shifted to Face-book and Google, the industry’s largest company will soon have a new tool in its quiver. Last week’s announcement of iHeartMedia Analytics will enable the broadcaster to deliver deep audience insights for individual ad campaigns, similar to systems such as Google Analytics and Facebook for Business.The new Analytics tool is an evolution of the company’s Smart-Audio planning and buying platform. “One of the first things we did when we realized that our digital and broadcast audiences were the same was to take the digital platform as a tool that we could use to express who the broadcast audiences were,” Brian Kaminsky, president of Revenue Operations and Insights for iHeartMedia, tells Inside Radio. The new Analytics part – which is being beta-tested now in a handful of markets – will validate that the SmartAudio audience that advertisers selected in the planning phase of the campaign was actually delivered. Most importantly, it will also measure the outcome of the campaign. “What we think makes that really take off and changes the way the entire industry is transacted is to now have a downstream validation of those audiences we told you we were planning against,” Kaminsky says, while showing increases in search results, store visitation rates, call center volume, brand lift and other key performance indicators.See more HERE

In RMLC-BMI Share Of Market Faceoff, It’s A Matter Of Size.After the radio industry was unable to strike a new licensing agreement with BMI, the Radio Music License Committee has formally requested a federal judge to set the rates that radio stations pay songwriters. The stalemate continues to revolve around how large a market share BMI has of the music busi-ness. When BMI proposed hiking the revenue rate to 2% for the new term, from the 1.7% revenue rate that stations had been paying under the industry’s previous deal, the RMLC instead went in the other direction. It proposed that stations pay a lower 1.4% rate. BMI has pushed back against the argument that its market share has shrunk in the face of competition from ASCAP, SESAC and upstart Global Music Rights. In court fil-ings, BMI has said the RMLC used “incomplete and incorrect information” to base its proposed rate reduction. But RMLC executive director Bill Velez told Inside Radio that it has been “very difficult” for his team to come up with “a parity scenario” that puts ASCAP and BMI on equal footing. He said BMI has not done as good a job as ASCAP in keeping artists from jump-ing ship. BMI executive VP Mike Steinberg said the RMLC is now trying to use a “below market rate” that it negotiated with ASCAP to convince a federal rate court to lower what stations pay to BMI. With the rate-setting decision now in the hands of Judge Louis Stanton, it is unlikely broadcasters will have a final deal with BMI until 2019, or even later. In the meantime, RMLC member stations will continue to pay an interim 1.7% rate agreed to in February 2017. See more HERE

Urban One Will Pay $4.2M To Add WTEM To Washington Cluster. Urban One has disclosed the price it’s paying to add the Washington Redskins flagship station to its radio cluster in Washington, DC. In a regulatory filing, the company said it will pay Red Zebra Broadcasting $4.2 million in cash for “The Team 980” WTEM. Urban One has also inked a deal with the Redskins to keep all of the NFL franchise’s games on WTEM.Urban One said it expects to generate around $1.7 million in pro-forma EBITDA from the station, which amounts to a buyer’s multiple of roughly 2.5x cash flow. Red Zebra Broadcasting’s primary investor is Washington Redskins majority owner Dan Snyder. See more HERE

Weekly News RecapMay 21-25, 2018

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MONEY MATTERSThe amount of money a target audience has to spend directly impacts an advertiser’s bottom line—and yours. The Dave Ramsey Show has an audience of 14 million combined weekly listeners, and those listeners are an advertis-er’s dream. They’re educated, engaged, and have cash to spend.

In fact, the average income of a Ramsey listener is 73% higher than the average American household. And 57% of those listeners are debt-free—which means they’re smart with their money.

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CONVERSION IS EVERYTHINGRadio is one of the best ways to reach a specific audience—but only if you’re spending your marketing budget in the right place. The Dave Ramsey Show delivers both quality leads and a high conversion rate, with 92% of his listeners shopping an adver-tiser mentioned on the show and 54% making a purchase. “The ROI has been phenome-nal,” said Allen Shipley, owner of Carpet Care Craftsman, Inc. “It’s not just a one-time hit. It’s repeat and referral revenue.”

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Page 3

Report: Sadusky To Succeed Falco as CEO Of Univision.Vincent Sadusky, a broadcast veteran of Media General and Telemundo, will succeed Randy Falco as chief executive of Univision Communications, according to Bloomberg. His Spanish-language media experience also includes serving on the board of U.S. broadcast and cable TV company Hemisphere Media Group. Notably, Sadusky also has experience at the deal-making table, having overseen Media General’s sale to Nexstar Media Group for $2.13 billion in 2016. Sadusky is expected to start June 1. His arrival comes as Univision faces a crossroads. The Hispanic media giant pulled its long-awaited IPO on March 6, citing “prevailing market conditions.” The company is conducting a business review that could trigger cutbacks in the $200 million range and involve extensive layoffs as the company’s private equity backers prep Univision for a potential sale. See more HERE

FCC Proposes Lowering Most Radio 2018 License Fees.The FCC is proposing to collect $322,035,000 in regulatory fees from broadcasters and other regulated industries this year. That includes $26.9 million from AM/FM operators, a 13% decrease compared to what it collected in 2017. Nearly every class of station would see a lower regulatory fee under the just-released proposal. The proposed fee schedule would lower what FMs with the biggest potential audience reach pay by 15% to $18,800. And AM stations with the largest reach would see their annual fee drop 16% to $15,050. Most classes of FMs and AMs would also see their annual fees reduced, although by a smaller percentage. Just a handful of station classes would remain the same as what broadcasters paid in 2017. See more HERE

Baseball A Grand Slam For Sports Radio In April.Sports radio had its highest April ratings share of the PPM era this year, driven by the onset of the 2018 Major League Baseball season. The earliest Opening Day ever, March 29, coincided with the start of the April PPMs, as America’s Favorite Pastime propelled sports radio to a 4.6 total audience share (6+). While not breaking records, Nielsen also showed increases in 18-34 numbers (3.5) and 25-54 where the baseball broadcasts boosted numbers to just under a five-share. Early spring numbers also show classic hits having its best April ever. The format posted a 5.7 share (6+) and also had its highest 18-34 (4.3) and 25-54 (5.2) numbers since the advent of electronic measurement in 2011. This follows the first quarter numbers the format put up to start 2018, when classic hits posted a 5.5 (6+), its best showing in the eight-year period tracked by Nielsen. See more HERE

Saga COO Warren Lada Announces Retirement. Warren Lada, a prominent player at Saga Communications for most of its 32-year existence, will retire as chief operating officer of the company at the end of June. Lada’s career has encompassed 42 years, all of it in radio. Lada was promoted to COO at Saga in March 2016 from executive VP of operations. He earlier served as senior VP of operations and GM of “Rock 102” WAQY Springfield, MA. “Warren has been an integral part of Saga for the past 27 years and we will deeply miss his contributions to Saga and its radio stations across the U.S.,” CEO Ed Christian said in a news release. A replacement has not been announced. See more HERE

Southwest Airlines Offers Free iHeartRadio On Flights.Southwest Airlines has aligned with iHeartRadio to bring the free streaming service to the onboard entertainment portal on the airline’s flights. Customers can choose from numerous music genres, pick live iHeartMedia radio stations, select specific artists and customize curated playlists. Fliers are able to access iHeartRadio through the onboard entertainment portal on their personal devices to begin the listening experience. Once activated, music will play as long as the entertainment portal is open in a tab, allowing customers to browse the rest of the portal, check the flight tracker or utilize the web if they have purchased WiFi access, according to the airline. Those that have the iHeartRadio app installed on their devices will be able to play personalized music and podcasts directly from the app while onboard Southwest flights. And those passengers who already subscribe to iHeartRadio’s All Access on-demand subscription service will have access to their entire music library and saved playlists. See more HERE

Craig Carton Files To Dismiss Securities Fraud Charge.Craig Carton has filed a motion to dismiss the securities fraud count he faces as part of the numerous charges levied against the New York-based sports radio host for running an alleged ponzi-type ticket scheme. Carton’s lawyers claim the government fails to prove their client had “intent to deceive” a hedge fund that loaned Carton and his business partner nearly $5 million. Last September, Carton and co-defendant Michael Wright were charged with securities fraud, wire fraud and conspiracy. The two are accused of running a ticket resale business and defrauding investors out of millions of dollars to allegedly cover massive gambling debts. The motion also asks for Carton and Wright to face trial separately. His attorneys argue that Wright will become “in effect, a second prosecutor” who will present evidence against Carton, the New York Daily News reported.See more HERE

Weekly News Recap May 21-25, 2018

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Cola Wars Hit Full Force With Pepsi, Coke Vying On Radio.

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SALES – STATIONS

Washington, DC – Urban One strikes a $4.2 million deal to buy sports “The Team 980” WTEM from Red Zebra Broadcasting. As part of the deal Urban One has also entered into an agreement with the Washington Redskins—which like Red Zebra is majority owned by Dan Snyder—to keep the NFL team’s play-by-play on WTEM. Urban One already owns urban “93.9 Kiss FM” WKYS, the urban AC simulcast of “Majic 102” WMMJ and WDCJ (92.7), gospel “Praise 104.1” WPRS, talk WOL (1450), and gospel “Spirit 1340” WYCB in the Washington market. It’s the second deal between the two companies. Urban One last year bought WDCJ (92.7) in Washington and sports “ESPN Richmond” WXGI (950) in the Richmond, VA market from Red Zebra for $2 million. Broker: Greg Guy, Patrick Communications

Indiana – Jack Didier’s Kensington Digital Media files a $2.4 million deal to buy country “Willie 103.5” WAWC, Syracuse, IN; classic hits WRSW-FM, Warsaw, IN (107.3); and news-talk “1480 News Now” WRSW, Warsaw, IN from the Dille family’s Talking Stick Communications. The deal also includes the Warsaw, IN-licensed translator W259BJ at 99.7 FM which simulcasts WRSW. Kensington Digital Media also owns two Nashville market stations: classic hits “Hippie Radio 94.5” WHPY-FM and adult hits WHIN (1010).

Maine – Immaculate Heart Media files a $750,000 deal to buy five Maine stations from The Presence Radio Network. They include WTBP (89.7) and WXTP (106.7) in the Portland, ME market. Plus WXBP (90.3) in the Bangor, ME market and WWTP (89.5) in the Augusta-Waterville, ME market. And WEGP (1390) in Presque Isle. Each has been airing the religious “The Presence Radio” network. The deal gives Immaculate Heart Media its first stations in Maine.

Memphis, TN – Global Ministries Foundation files a $703,823 deal to buy WUMY (830) from Ron Unkefer’s Memphis First Ventures. The also includes the Memphis-licensed translator W288BJ at 105.5 FM. The filing says $649,000 of the purchase price is attributed to the station assets with the balance related to tower leasing expenses. Once the sale closes Memphis First Ventures will still own country “95.3 The Rebel” WEBL and classic hits “Guess FM” WGUE (1180) and two FM translators in the market.

Birmingham, AL – Ken Layton’s TBTA Ministries adds a second station in the market with a $525,000 deal to buy oldies “97.7 The Peach” WHPH from Paul Reynolds’ Brantley Broadcast Associates. The deal includes a $325,000 promissory note. TBTA Ministries already owns contemporary Christian “Revocation Radio” WKRE (88.1) in the Birmingham market. It also owns WKUA (88.5) in Tuscaloosa and WJHO (89.7) in the Talladega region. Once the sale closes, Brantley Broadcast Associates will still own stations in the Montgomery and Huntsville, AL markets. Broker: Jorgenson Broadcast Brokerage

SALES –TRANSLATORS

Long Island, NY – Cantico Nuevo Ministry files a $32,256 deal to buy the Shirley, NY-licensed translator W243BF at 96.5 FM from Holding Out Hope Church. The purchase price reflects the amount of back tower rent the sellers owe to SBA Communications. As part of the deal Cantico Nuevo Ministry also agrees to make 63-hours a week available to the seller through Aug. 2018. Cantico Nuevo Ministry will use the signal to simulcast Spanish contemporary Christian “Radio Cantico Nuevo” WNYG (1440).

CLOSINGS: Ft. Wayne, IN – Swick Broadcasting closes a $300,000 deal to buy the currently-stunting WFGA (106.7) from the Dille family’s Talking Stick Communications. Steve Swick already owns five stations in the region but only AC WLKI, Angola, IN (100.3) and “Wheels Country 104.5” WLZZ, Montpelier, OH overlaps with WFGA. Alec, John and Sarah Dille’s Federated Media still owns a six-station cluster in Ft. Wayne. Broker: Jason James, Patrick Communications

Pittsburgh – Bob and Ashely Stevens’ Broadcast Communications closes a $55,000 deal to buy KQV (1410) from Calvary Inc. The former all-news station has been off the air since the end of December. Broadcast Communications already own seven other stations in the Pittsburgh region including adult hits WKHB-FM (103.9), classic rock WKVE (103.1), smooth jazz “89.9 Qute” WQTW, adult standards “Easy 88.1” WKGO, oldies/talk WKFB (770), talk/oldies WKHB (620) and variety/brokered WEDO (810). Broker: Roger Rafson, CMS Station Brokerage

Wyoming – Real Presence Radio closes a $50,000 deal to buy contemporary Christian KGLL, Gillette, WY (88.1) from American Family Association. Religious broadcaster Real Presence Radio already owns 10 stations and four FM translators in the upper Midwest and this is its first station in Wyoming.

McAllen-Brownsville, TX – Vision Hispana Incorporated Internacional closes a $37,500 deal to buy religious KVJS (88.1) from Believers International Broadcasting. Vision Hispana also owns Spanish-language religious stations KVHI (88.7) and KSOX (1240) in Raymondville, TX—about 50-miles to the north of the McAllen-Brownsville market.

More closings HERE

More station and translator sales HERE