Pandora Hires Music Industry Executive

7-22-14

Pandora has hired Lars Murray as Vice President of Industry Relations. Murray comes to Pandora with more than twenty years of experience in the music industry, most recently as VP of Digital Media at Columbia Records where he led a digital marketing operation focused on helping artists leverage digital platforms to grow their audiences. Murray will lead Pandora's collaboration with the music industry. Pandora says the company is looking at leveraging its scale and technology to create opportunity and value for artists, labels and the entire music ecosystem.

Murray said, "I'm tremendously excited to dive in and help unleash the power of Internet radio in new ways. Pandora is ushering in a new era for music, with unmatched scale and personalization that can empower the industry in a way that has never before been possible. I am thrilled to be part of what continues to be a dramatic transformation of how great music and artists find their audience."

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What Radio Can Teach The Automotive Industry

10-21-13
From zero to 60, the "connected car" has become a mainstream issue in radio in little more than a year. You can't attend a radio conference or convention without at least one panel devoted to the relationship between radio and the "center stack." And this week in Detroit -- the Motor City -- we're devoting the better part of two days to discussing the intersection of the radio and automotive industries and how we can learn from one another.

As you've no doubt heard by now, the list of participating brands is impressive, with speakers and presenters you never see at radio conferences. Toyota, GM, Ford, Panasonic, Pioneer, and other auto brands will be presenting, with many others in attendance. On the content side of the spectrum, we've got iHeart Radio, Pandora, TuneIn, and Aha by Harman set and ready to go. And we have sessions designed to show off what's next in connected car technology, as well as the innovations that are happening in radio.

But one panel that may surprise people is "Behind the Mic/Behind the Wheel," featuring some of Detroit radio's best shows and hosts. That's because radio's personality factor is what sets the medium apart, and it will be on display at DASH.

General Motors was kind enough to lend us a couple of well-equipped 2014 vehicles, a Buick Regal GS and a very cool electric Chevy Spark EV. So last week, we invited a group of Detroit celebrity DJs to sit behind the wheel and tackle the challenges of the "connected car" (something we urge all of you to do). And, of course, we captured it all on tape.

We're talking WRIF's top-rated morning show, "Dave & Chuck the Freak" (along with Lisa Way, who is pictured below), sports radio superstars Valenti & Foster from The Ticket (pictured above), and morning icon and TV personality Jay Towers from WNIC. Greater Media's Buzz Knight -- no stranger to managing big-name personalities -- will be moderating.
DASH attendees from the worlds of ad agencies, car dealerships, Tier 1s, and the OEMs will have a chance to see and hear from these local legends as they talk about -- and very likely laugh about -- their experience behind the wheel in connected cars.

Sure, it will be entertaining, but it will also serve as a reminder of what makes AM/FM radio different. And to the broadcasters in attendance at DASH, it will underscore the importance of great local talent and a sense of place amid all the technology.

Executives from the automotive world will see firsthand just how incredible local radio can be. While their center stacks may be filled with infinite streams from around the globe, custom "radio stations? from multiple services, and of course the hundreds of channels offered by SiriusXM, there is only one industry that brings consumers face-to-face with their hometown markets in a meaningful, tuned-in way: local radio.

So while our many radio-industry attendees will be on hand to learn and collaborate with these automotive gurus, there will be something else happening at DASH at the same time.

Detroit radio is going to put on a show of its own, demonstrating the power, magic, and allure of local radio and why it is different from everything else in the dashboard.

It's your guess as to who will be more impressed. But I know who I'm betting on.

There's still time to learn, collaborate, and partner at radio's most innovative conference, DASH at the Westin at the Detroit Metropolitan Airport, October 23 and 24. To learn more, www.dashconference.com.

DASH
October 23-24, 2013
Westin Detroit Metropolitan Airport
Detroit, MI
www.dashconference.com

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How The Car Industry Has Driven Audio Consumption Trends

9-17-13

A message from Radio Ink Publisher Eric Rhoads

According to the New York Times, 2015 will be the biggest new car sales year in the history of America. The average American is driving an 11-year-old car, and those will need to be replaced. Car companies are counting on this boom, which some predict could have a whopping 60 percent of Americans buying new cars that year.

Will this new-car boom affect the radio broadcasting industry? One can assume it will impact car dealer spending as they compete to be chosen as the place to purchase a new car. But how does it affect radio listening?

Enter The Connected Car
If you haven't yet heard the term "the connected car," it's all about your car being connected to the Internet and to your smartphone. Every new car today has connected-car strategies, and the level of sophisticated integration for 2015 new car releases is way beyond what you'll see in most cars today. If you read my recent missive about the Tesla, you'll get a better idea of what to expect. Your car becomes a portal to all your entertainment preferences, all the apps on your tablet or phone, and connectivity to everything you need as you drive, including much more sophisticated integration of weather, traffic, and GPS.
Audiotainment: The New Buzz
The new buzzword in Detroit is "audiotainment," the part of the dash radio currently dominates. In most cars today, the audiotainment is AM, FM, maybe SiriusXM, and your own music source, either a CD player or a link to your phone or MP3 player (unless you're driving a fairly late model). New cars are all about audiotainment, and Detroit has discovered that the audio choices in a car, and how seamlessly they can be integrated into the driver's life, can be a major factor in a consumer's decision to buy one brand over another. Automakers have hired several thousand high-tech people, because the battle for the car comes down to its tech features, many of which are dedicated to audiotainment. Every car company has a different theory about which approach will be best embraced, and they are spending deeply to make sure you pick their system. If you have not seen this promotional video for Cadillac's CUE, watch it and see if you can count how many times you see AM or FM and how many times you see iHeart or Pandora.

Audio Has A Historic Role In The Car
Audio has mattered in the car since 1932, when Blaupunkt installed the first radio in a Studebaker. Cosby made the first factory-fitted car radio in 1933. In the 1950s Ford came out with a radio called the Town and Country that had a switch for listening in town or at a distance, in the country -- it actually moved a rotor on the tuner to let it receive distant AM signals. In 1955 Chrysler was the first with an all-transistor radio (a $150 option), and in 1956 Chrysler introduced an in-car record player that played 16 2/3 rpm discs known as "Highway Hi-Fi." Later in 1959, the automaker introduced an in-car 45 rpm record player.
In the 1960s, the 4-track tape was introduced, and later the 8-track was launched, to compete with the 1964 Phillips launch of the Compact Cassette. The first car in which FM was a standard feature was the 1972 Lincoln Continental, which also had an in-dash 8-track.

Most car buyers wanting FM had to use an Audiovox FM converter, a receiver that connected and played through the AM radio -- early FM rock stations gave them away as promotional items. It was not until about 1983, however, that the car market was 100 percent saturated with FM radios (new and used car market) -- and FM listening shares surpassed AM shares for the first time in 1985. Most of the first new car models that had new XM or Sirius receivers built in are now in the used-car market.

 

Unintended Consequences
Until recently, I never really stopped to think about how the decisions made by Detroit impact the history of the radio broadcasting industry. Yet when you read about the history of radio in the car, you start to understand that the car companies have always used audio devices as a selling point or point of differentiation. Ultimately, the car companies are a major distributor of radios, and they are seeking new and exciting things to talk about. Their decisions today will affect the future of the radio broadcasting business.

What do they say about history? Yes, you need to understand it so you don't repeat it. As you know, I wrote a piece last spring after hearing auto company representatives talk about a possible world of cars without AM/FM receivers, cars that could get radio only over the Internet. Our industry jumped on the issue, and Radio Ink was able to get at least two major brands to issue statements that AM/FM receivers will remain in their cars. I was pleased to see the new Tesla will be home to AM and FM as well. Yet Detroit has a mind of its own, and automakers are going to do what they think will sell the most cars. They want to provide consumers what they want, and they hope to be ahead of their wishes to offer cool things they didn't know they want or could get in their car. As I mentioned in an earlier note, the car is the new home to AM, FM, SiriusXM, plus TuneIn, iHeart, Pandora, Spotify, and pretty much any other audiotainment app you prefer.

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The Industry Remembers A Friend

Radio Ink Publisher Eric Rhoads said, "Dave 'Kidd' Kraddick was a dear friend. We became friends in Salt Lake when I gave him his first morning show. He had been doing nights and I thought his nighttime teen sound would work well on mornings. His ratings soared. When he went to Dallas he told me his goal was to beat longtime Dallas legend Ron Chapman who had the top morning show in Dallas at the time, which he did. Dave was the most driven, most hard working, most creative air personality I ever worked with."

Entercom CEO David Field said, ?The entire Entercom family is shocked and saddened by the tragic death of our friend, Kidd Kraddick. Yesterday the world lost an amazing man and radio lost a tremendous talent. Even as he died, Kidd was doing what he loved and helping those who loved him. Kidd was a shining example to others. He brought joy and hope to thousands of chronically and terminally ill children through his dedicated work with his charitable foundation. Our thoughts and prayers go out to his family and his friends at this very difficult time. Kidd will be missed and always remembered.?

"I lived in Dallas for 12 years and knew Dave 'Kidd' Kraddock when I programmed KVIL. Not only was he an amazing talent but a wonderful person, father, husband. God bless his family and may he rest in peace." -- Tom Watson

"Kidd was like a Formula One driver.  Always moving forward at a breakneck pace for fear of having someone catch up with him.  Losing someone so vital, so seemingly unstoppable, is hard for the radio community and his legion of fans to process. 

"When I was working across the street (at KVIL), I would marvel at the things Kidd could get done in D/FW.  On the day he had volunteers at EVERY 7-11 in the Metroplex (and there are hundreds of them) collecting change to send another planeload of kids to Disney World. I listened. I cheered. Granted, not a very competitive reaction, but a worthy one given the kind of work Kidd performed. His vision and commitment were sterling. 

"Kidd taught us that the art of well-planned and well-executed audio entertainment is alive and well. 

"I am certain that after grieving over the loss of one of the best decision-makers in our industry, we will get back to questioning the value of talent. Are we paying them too much? Do they get in the way of what people really want from radio? Are they a management nightmare? The answers, as Kidd Kraddick demonstrated so well, is NO, NO, and NO, if the talent holds up his or her end of the bargain:  Be smart. Show heart. Study what your audience consumes. Plan with wild abandon. Execute with precision. Be fabulous. 

"Everyone of us who sits (or sat) behind the mike wonders if we will be remembered for our contribution to our listening community. In Kidd's case, he takes the knowledge with him that he was the best at it. Thanks for the inspiration, dear friend. Now it's our job to groom others to follow your lead." -- Smokey Rivers

(7/28/2013 5:07:27 PM)
Kidd and I arrived in Dallas the same week in the early 80s. We worked together for about 8 years.

I was the best man in his wedding and he was in my wedding.

One of my favorite memories of Kidd... He came to my home town in Thief River Falls, Minnesota for my wedding. My bachelor party was held at a cabin in the woods. First time Kidd saw the northern lights and I'm certain it was the first time he ever made a wager on wood tick races. I was visiting same cabin when I got the news.

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(MANAGEMENT) An Industry Of Penguins

5-17-2013

?I can only worry about the things I can control.?
I have been a subscriber to this school of thought for a long time. It?s been especially effective in the last several years in the radio industry, where growth has been dismal at best and competitive threats abound. The essence of this concept is that old, trusted, and possibly overused word: focus.

?I can?t change the economy. I can?t outlaw the Internet. So I?m going to focus inward, on the operation I?m running, and make sure it?s firing on all cylinders.? That?s a logical, sensible way of thinking, for sure. Focus,? in its best sense, means paying attention to the most important issues and not getting distracted by the wrong things. However, ?focus? can turn into myopia, where, in your honest attempt to ?stay focused,? you miss obvious threats and opportunities. ?Focus? can also be management?s code word for control, where you are only allowed to think about things the big bosses deem important. That?s kind of like the captain of the Titanic saying ?Hang tight, I?ll let you know when the ship is sinking.?

In times like these, everyone is looking for reasons and explanations or, as some might call them, excuses and CYAs. Over the last few years, I?ve classified those reasons or excuses into three main categories: cyclical, self-inflicted, and secular. There is some overlap, but the categories can provide opportunities to find areas where you can control a little more of your situation than you think

Cyclical
Cyclical phenomena are things like the economy in a broad sense. There is no doubt that the advertising economy was hurt worse over the last few years than the overall economy. The recession affected automobile sales, housing, and consumer spending, which, in turn, had a devastating effect on ad spending. Those of us who saw this firsthand know how helpless the situation made us feel. Clearly, there wasn?t much we could do to avoid that tidal wave.

But to the extent that we could stem the wave, what would that look like? First, there is one course of action that should not be out front, and that is dealing with the economy by cutting costs. Ask yourselves what changes you made in 2008 through today with respect to your sales staff structure, and how many sellers and managers you eliminated. Was that smart? Would we have come out of the storm in better shape if we had actually grown our sales operations? After all, money was being spent on advertising somewhere. Just look at the growth of the Internet.

Yes, hindsight is 20/20, but it can also teach us what to do the next time a situation arises. Focusing on revenue growth vs. expense savings in tough times just might be a better solution. How much worse could it have been, anyway?

Self-Inflicted
These are the mistakes we made, the opportunities we missed, and the things we failed to act on. And if that?s the case, let?s just identify them, fix them, and look like the visionary, brilliant leaders we know we are, right? Well, my experience has been that it?s not that easy. Why? Usually because the culture of an operation or company practices blame instead of constructive learning. Mistakes can?t be acknowledged because that would put your job in jeopardy; why would you ever own up? Good ideas don?t get acted on because everyone around you starts judging an idea?s success or failure before it has a chance to develop.

If you subscribe to the ?worry about what I can control? philosophy and just fix the things that you, yourself, haven?t quite pulled off, your operation will be measurably better. Unfortunately, organizations today don?t always allow that to happen.

Secular
This category deals by permanent, long-term changes that affect an industry. Examples: ?Newspapers are dead,? ?Radio is dying,? and every other prognostication about media that people have made over the last few years. Looks pretty daunting to exert control over something as big as that, right?

However, those prognostications won?t prove out until everyone surrenders to the premise. At that point, everyone has the ultimate excuse. But how about quoting John Belushi in Animal House: ?Nothing is over until we decide it is.?

While debate continues (incessantly) within our industry as to our ultimate fate, there?s no reason the next innovation in revenue and monetizing content can?t be happening simultaneously. Same thing goes for on-air content, local and otherwise, which is going to be the key to radio?s fate anyway. The problem is, radio has always been an industry of ?penguins.? One guy moves, and the others follow in lockstep.

A large segment of the industry is doing things because economic predicaments force them to ? and packaging it all as ?visionary.? Don?t fall for it. Do the right thing. The thing that makes your station or company better, and radio better along with it. We may not be singing ?Happy Days Are Here Again,? but we could still be singing, nonetheless.

Quickread
Sometimes "staying focused" can mean missing obvious threats or opportunities.

Reasons (or excuses) for not handling the important things can be cyclical, self-inflicted, or secular. Looking at it that way can help locate ways where you can control more than you think.

Radio often moves in lockstep, like a flock of penguins. But doing what others do may not be the best for your station or company. 

Marc Morgan is the former SVP and chief revenue officer for Cox Media Group; he retired in 2011. He can be reached at marc@marcmorganconsulting.com.

(5/17/2013 11:12:06 AM)
Congratulations on a significant, revealing and articulate article.
As one who has been pounding similar pavement, albeit by concentrating on the development of programming and commercial production, I am nevertheless, extremely impressed by your observations, intuitions and considered comments.
I suspect that even such well-documented arguments as yours will still be read by many clouded eyes and falling on a large number of deaf ears, the messages still need to be communicated.

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Radio Industry Says SESAC is a Monopoly

10-12-2012
The Radio Music License Committee has announced the filing of an antitrust complaint against SESAC concerning anticompetitive behavior that allows SESAC to charge the U.S. commercial radio industry monopoly prices to publicly perform musical works in the SESAC repertory. RMLC Chairman, Ed Christian said, ?resorting to litigation is never a first reflex for the RMLC. This legal process will undoubtedly prove to be taxing in terms of the amount of labor and expense involved. Yet, we feel that SESAC?s pattern of increasingly exorbitant rates imposed on our industry without resort to a fair process has left us with no other alternative. We hope that the good will demonstrated by ASCAP and BMI in working with our industry to achieve mutually agreeable licenses will inform this new challenge with SESAC.?

The RMLC complaint follows the class action antitrust lawsuit that the local television industry filed against SESAC in late 2009. That lawsuit remains pending, following the Federal District Court?s decision to deny SESAC?s motion to dismiss the lawsuit.

The RMLC is the industry group that has traditionally represented several thousand  commercial radio stations in music license matters with ASCAP and BMI. In fact, the filing of the SESAC complaint comes on the heels of the RMLC?s recent settlements of longstanding litigations with both ASCAP and BMI.

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Pittman Says Clear Channel Changing an Industry

7-10-2012

This week Clear Channel CEO Bob Pittman sent a note out to the company's employees. The theme throughout the note was change is happening and will continue to happen. "At Clear Channel, we are being proactive in taking our vision and turning it into an operating plan -- and now our goal is to execute on that plan with more urgency than anyone else." A lot has also been said, and written, about the Clear Channel debt. Pittman says Clear Channel has "a solid financial foundation we need to keep driving change. Despite the slow economic recovery, we have been able to deliver solid revenue growth across our operations while stepping up our investments in digital platforms and new organizational expertise to drive future growth."

Here is the entire note to employees:

The last year has been a time of rapid change ? both in the world, which has seen the emergence of a number of important new players in the media and technology space, and here at Clear Channel. Whether driven by emerging technologies, shifting consumer demand, or some other new business reality, change provides great opportunity to those who are quick to recognize its potential and smart enough to capitalize on it.  And as a company with change as part of our DNA and a history of taking advantage of the opportunities that change engenders, we welcome it as a constant in our culture.

As you?ve seen, big changes are taking place at every level and in every division of Clear Channel.  Working together, we are transforming our company to better meet the needs of our customers and partners in bold and innovative new ways, working hard to harness transformative technologies that will extend our industry-leading brands across even more platforms, and creating new businesses to make the company bigger, better and more profitable.

At Clear Channel, we are being proactive in taking our vision and turning it into an operating plan -- and now our goal is to execute on that plan with more urgency than anyone else. Under the leadership of John Hogan at Clear Channel Media and Entertainment and William Eccleshare at Clear Channel Outdoor Holdings, we?re geared to thinking and acting more and more like an innovative, creative, fast-moving entrepreneurial start-up in a media marketplace that?s becoming increasingly competitive every day.  If we don?t seize the opportunities, somebody else will. 

The New iHeartRadio is a perfect example of how we are enhancing and growing an existing business.  iHeartRadio offers both our broadcast brands and a ?custom stations? feature in one fully integrated product.  And in just eight months, iHeartRadio added 10 million registered users ? reaching that milestone faster than all other popular Internet entertainment and social platforms, including Facebook, Pandora, Zynga, andSpotify.  Today, terrestrial broadcast radio represents 98% of our total listening and digital radio only 2%, but that 2% represents incremental listening to Clear Channel stations -- and we will continue to grow that digital incremental listening significantly over time.

At Outdoor, new technologies are also creating more opportunities for us.  We continue to lead the industry in bringing exciting and captivating digital out of home advertising experiences to consumers and advertising partners around the world.  We have nearly 1,000 digital billboards in the U.S. and 2,200 digital displays outside of the U.S. and continue to invest in them, and we?re aggressively pursuing opportunities in transit and street furniture internationally and airports domestically.  We also are in a leadership role in developing completely new ideas for outdoor ? like our wi-fi buses in Hong Kong.

But change is not just about technology ? it also encompasses innovative ways of doing business.  Here?s a great example:  in an industry first, Clear Channel Media and Entertainment reached a breakthrough agreement in June with Big Machine Label Group, which includes Taylor Swift, Rascal Flatts and Tim McGraw among its recording artists, to align our business interests and accelerate growth and innovation in digital radio.  We think it?s critical to try to break the logjam of performance rights and develop a holistic approach to all rights that will allow radio to economically pursue aggressive digital growth and be an even more valuable partner to the music industry.

At Clear Channel, we have an unmatched ability to connect artists and hosts with their fans, and brands with their consumers, through the most culturally relevant brands and products in the world. We are actively pursuing integrated, multi-platform partnerships that leverage all of our powerful properties and talent to deliver exceptional results for our marketing partners.

It is worth keeping in mind that Clear Channel is unique as a national platform that can activate people locally. We have the largest reach of any radio or television outlet in America with 237 million monthly listeners to our broadcast radio alone; 50 million digital users; and almost 90 million downloads and upgrades of our mobile products.  Our reach for Outdoor is equally as impressive: 141 million every month for Outdoor Americas and over 374 million for Outdoor International.

Importantly, we also have the solid financial foundation we need to keep driving change.  Despite the slow economic recovery, we have been able to deliver solid revenue growth across our operations while stepping up our investments in digital platforms and new organizational expertise to drive future growth.

I want to close this note by speaking directly to the major competitive advantage that Clear Channel enjoys -- the people who work for our company.  Clear Channel has had a long history of success, and as I outlined in the preceding paragraphs, we continue to lean forward to positively impact the world around us.  Our towers and transmitters, our digital platforms, our billboards and our street furniture are not the reason we have been successful ? you are.  The people of Clear Channel have worked very hard to help us get where we are today, and while I am relatively new to this company I have seen first-hand the contributions you make and the dedication you have to this company, our customers and each other.

Speaking on behalf of the senior management team, we deeply appreciate all you do to contribute to the continued success of our company. 

Many thanks,

Bob

(7/11/2012 6:24:34 AM)
P.S. Please collect your belongings and thank you for your service.

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Driving The Industry Forward

6-20-2012

WBEB Philadelphia owner Jerry Lee says Erica Farber is going to make a great RAB President. "I see Erica methodically putting together a step-by-step plan to drive the industry forward. She has the leadership qualities to grow the industry by at least 25 percent over the next five years." That is a very bold statement from a highly respected and successful independent operator. So how does Farber see the industry transforming? She says we have to think about more than just transmitters. It's about doing a better job of branding our product.

In the latest issue of Radio Ink, RAB CEO Erica Farber is featured on the cover. In the interview we asked her how she sees the radio business transforming over the next five years. "That?s a big question. From the broadcasters? standpoint, it?s gotten bigger than just thinking about your transmitter. The transmitter is critical, but for the first time in my career, we are able to compete with other mediums for budget in a different way. Whether it?s through your computer, handheld, or whatever device, that?s where our consumers are going to be. That is what radio is focusing on. It is becoming more critical than ever."

Farber also says how we brand radio is key because of the number of ways consumers can now access audio products. "We always talk about how important product is, and how important branding is. But more important than ever is what our product is and what our branding is, because the competition is fierce. Getting our products on every device possible, and I know there are many people working to make this happen, is critical. The change that?s occurring is, when you talk to the consumer about radio, their definition of radio is changing. They might be listening to a stream on their computer, but they call it radio. They might be listening to an audio service on a handheld, but they call it radio. When we look to the future, that?s going to be a big issue ? what?s going to be the definition of radio and audio services. It?s important that broadcasters focus on their brands."

And, how important is local? "There is huge importance in local, but local has a broader definition. It?s being the very best you can in your local marketplace. Sometimes that means taking a national brand and including it in your local station. Our challenge is, how do we stay up? How do we communicate? How do we learn? How do we stay ahead of all the new technology?"

We'll have more from our cover story with Erica Farber tomorrow.
You can subscribe to our digital edition RIGHT NOW and read the rest of it immediately on your mobile device or tablet. Call 561-655-8778 to subscribe to our print edition.

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Driving The Industry Forward

6-20-2012

WBEB Philadelphia owner Jerry Lee says Erica Farber is going to make a great RAB President. "I see Erica methodically putting together a step-by-step plan to drive the industry forward. She has the leadership qualities to grow the industry by at least 25 percent over the next five years." That is a very bold statement from a highly respected and successful independent operator. So how does Farber see the industry transforming? She says we have to think about more than just transmitters. It's about doing a better job of branding our product.

In the latest issue of Radio Ink, RAB CEO Erica Farber is featured on the cover. In the interview we asked her how she sees the radio business transforming over the next five years. "That?s a big question. From the broadcasters? standpoint, it?s gotten bigger than just thinking about your transmitter. The transmitter is critical, but for the first time in my career, we are able to compete with other mediums for budget in a different way. Whether it?s through your computer, handheld, or whatever device, that?s where our consumers are going to be. That is what radio is focusing on. It is becoming more critical than ever."

Farber also says how we brand radio is key because of the number of ways consumers can now access audio products. "We always talk about how important product is, and how important branding is. But more important than ever is what our product is and what our branding is, because the competition is fierce. Getting our products on every device possible, and I know there are many people working to make this happen, is critical. The change that?s occurring is, when you talk to the consumer about radio, their definition of radio is changing. They might be listening to a stream on their computer, but they call it radio. They might be listening to an audio service on a handheld, but they call it radio. When we look to the future, that?s going to be a big issue ? what?s going to be the definition of radio and audio services. It?s important that broadcasters focus on their brands."

And, how important is local? "There is huge importance in local, but local has a broader definition. It?s being the very best you can in your local marketplace. Sometimes that means taking a national brand and including it in your local station. Our challenge is, how do we stay up? How do we communicate? How do we learn? How do we stay ahead of all the new technology?"

We'll have more from our cover story with Erica Farber tomorrow.
You can subscribe to our digital edition RIGHT NOW and read the rest of it immediately on your mobile device or tablet. Call 561-655-8778 to subscribe to our print edition.

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"Wireless Industry Behavior Puts Lives in Danger"

6-6-2012

 "The Future of Audio" hearing was the perfect outlet for Emmis CEO Jeff Smulyan to push out his message of safety and take issue with the way the wireless industry has frustrated his efforts. The wireless industry has never bought into Smulyan's safety angle but that didn't deter him yesterday. He told lawmakers a 90 character text based alert system is no comparison to local radio?s role as "a lifeline service during times of crisis" and again emphasized that broadcasters are not looking for Congress to mandate the chips into phones.
Smulyan said Americans deserve better choices and should be free to choose mobile phones with activated radio chips." He also took this hearing as an opportunity to point out that even when the chips are available cell phone salespeople and consumers really have no idea. "It is needlessly difficult for consumers to identify the few device models that do include activated radio chips. Radio is not typically featured, or even listed, as an available search option on wireless carriers? phone purchasing websites. Verizon?s website, for example, allows consumers to research phones by selecting and searching for any combination of 18 various features; however, Verizon does not include free, over-the-air radio on that long list of features. The story is the same at mobile phone retail stores, where radio is rarely indicated as an available feature on the display cards for mobile devices. In-store salespersons and telephone customer service representatives are largely unaware as to which of their own devices are radio-enabled. Indeed, while they are often surprised to learn that a particular phone is equipped to receive free, over-the-air radio, they are clearly aware of, and able to inform consumers about, streaming, data-based radio apps, like Pandora.com. Some industry experts observe that mobile phone providers would rather reap the revenue of data-intensive, fee-based streaming apps than offer consumers a free and local audio alternative."

Smulyan says the way the wireless industry is acting prevents consumers from a choice and puts them in danger. "The control of U.S. wireless carriers over the manufacture of mobile devices ultimately results in consumers being unable to access radio?s free, local news, information and entertainment programming via their mobile phones. More seriously, this lack of access could jeopardize the lives and property of Americans by restricting the availability of critical information during emergencies. Including and activating radio chips in mobile phone devices, and making them widely available to consumers, would substantially increase the accessibility of important emergency information, and keep Americans safer."

(6/7/2012 10:18:47 PM)
If radio in phones is such a great thing, why isn't this man manufacturing and selling phones with the chip? My phone does have it, and let me tell you, unless you're at the transmitter, it's useless without a headset. It needs the headset to act as an antenna.
(6/7/2012 10:13:43 AM)
I'm surprised he didn't say that all radio-people are dedicated to the premise of widespread, consistent community service. Something along the lines of: "Me an' my boys here are all onside with this."

But then he couldn't, now, could he? He would turn to look and gesture behind himself only to find he was alone.

(6/7/2012 7:51:59 AM)
Smulyan is such a joke an liar. This is all about getting HD Radio chipsets backdoored into cell phones. Big Group Radio and the NAB are investors in iBiquity's junk-technology.

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"We Continue to Disrupt The Radio Industry"

3-6-2012

Those were the words of CEO Joe Kennedy as he reported quarterly numbers to investors and analysts last night. "Pandora has only just begun to realize the potential of our $37 billion U.S. market opportunity," he added. Active users were reported to be 47 million, growing 62% year-over-year. Pandora reported it generated $240 million in ad revenue this past year (radio advertising in 2011 totaled $17.4 billion according to the RAB). Total listener hours grew 99% to approximately 2.7 billion for the fourth quarter of fiscal 2012, compared to approximately 1.3 billion for the fourth quarter of fiscal 2011.

Here are some of the numbers Pandora reported for the quarter that just ended:
-- Fiscal 2012 revenue of $274.3 million grew 99% year-over-year
-- 4Q12 revenue of $81.3 million grew 71% year-over-year
-- Fiscal 2012 total listener hours of 8.2 billion grew 109% year-over-year
-- 4Q12 total listener hours of 2.7 billion grew 99% year-over-year
-- Record 69.8% share of top 20 U.S. Internet radio services grew from 58.3% at the end of fiscal 2011
-- Record 5.55% share of total U.S. radio listening more than doubled from 2.71% at the end of fiscal 2011
-- Active users reach record 47 million growing 62% year-over-year
-- For the fiscal year 2012, total listener hours grew 109% to approximately 8.2 billion, compared to approximately 3.8 billion for the fiscal year 2011.
-- Total Revenue: For the fourth quarter of fiscal 2012, total revenue was $81.3 million, a 71% year-over-year increase.  Advertising revenue was $72.1 million, a 74% year-over-year increase.  Subscription and other revenue was $9.2 million, a 51% year-over-year increase. 
The company ended the fourth quarter of fiscal 2012 with $90.6 million in cash, cash equivalents and short-term investments, compared with $90.8 million  at the end of the prior quarter.  For the fourth quarter of fiscal 2012, Pandora generated approximately $2.4 million in cash from operating activities, compared to  $1.0 million generated in the year-ago quarter.  For the 2012 fiscal year, Pandora generated approximately $5.9 million in cash from operating activities compared to generating $3.2 million in cash from operating activities in fiscal 2011.

1Q13  Guidance:  Revenue is expected to be in the range of $72 million to $75 million.  Non-GAAP net loss per share is expected to be between ($0.18) and ($0.21).  Non-GAAP net loss per share excludes stock-based compensation expense, assumes minimal tax expense given our net operating loss position, and 164 million weighted average shares outstanding for the first quarter fiscal 2013.
Fiscal 2013 Guidance:  Revenue is expected to be in the range of $410 million to $420 million.  Non-GAAP net loss per share is expected to be between ($0.11) and ($0.16).  Non-GAAP net loss per share excludes stock-based compensation expense, assumes minimal tax expense given our net operating loss position, and 166 million weighted average shares outstanding for fiscal 2013.

(3/7/2012 6:29:34 PM)
Disrupt Struble's HD Radio scam!

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More Good News From the Auto Industry

3-1-2012

We are starting to read and hear more good news about the advertising category that fuels many radio stations around the country. Bloomberg reports light-vehicle sales for February, which will be released today, may have run at a 14.2 million seasonally adjusted annual rate. "That pace would match January's and be the first time the U.S. posted a 14 million rate in consecutive months since May 2008. The sales rate was 13.3 million in February 2011."
Automotive News Age reports Ford sales may rise 9.4 percent. "The automaker said in a Feb. 27 statement that deliveries of its Focus compact were on pace to exceed 20,000 this month, more than double from a year earlier, the best February sales for the model since 2001." And Chrysler may have the biggest monthly sales increase among major automakers. "Deliveries may rise 26 percent, the average of 10 estimates. February would be Chrysler's 23rd consecutive monthly sales gain on a year-to-year basis."

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Radio One CEO "Industry Has Hit Bottom."

2-7-2012

He's not a regular at the industry conventions. He doesn't appear on too many "group head" panels. And, you don't often see him doing interviews. However, Alfred Liggins is one of the Most Powerful people in radio and certainly in African American media, he's right at the top. Liggins is a graduate of the Wharton School of Business Executive MBA Program.

He's been CEO of Radio One since 1997 and President since 1989. Liggins joined Radio One in 1985 as a salesperson for WOL-AM. In 1987, he was promoted to GSM and in 1988 to GM overseeing Radio One?s Washington, DC operations. After becoming President, Mr. Liggins engineered Radio One?s expansion into new markets. Today, the company includes Television properties, an interactive division, 53 radio stations in 15 markets and a 53.5% stake in Reach Media, which operates the Tom Joyner Morning Show. Alfred Liggins is on the cover of the February 27th issue of Radio Ink magazine and here's a sneak preview of what he had to say.

Radio One, like all other radio companies, had a tough 2011. Liggins acknowledges that fact in our coover interview. He also discussed what Radio One has done to address those tough times and why he's very positive about 2012. "The last three or four years have been very challenging for traditional media businesses. Radio is certainly as traditional as traditional media gets. They have been very tough years. However, we think that the industry has hit bottom."

Looking ahead to 2012, Liggins says getting a better handle on inventory management was a key. "We were caught flat-footed when a number of the big groups started to be very aggressive in their pricing. It is widely known that Clear Channel moved to sort of a best rate centralized inventory management system, which essentially allows them to lower prices faster than anybody else. Given their size and scope that impacts you in some markets. By the second half of the year, we were able to figure out a strategy to combat that. We made a number of significant format changes, including changing on of our inspirational stations in Houston to all-news, which was a big foray for us and a departure from what we've done in the past. We feel very good about the need for a 24 hour all-news radio station in the Houston, TX market. Most news-talk stations these days are more talk than news. We switched around some of our clusters in the Ohio market, where we reduced our urban footprint and launched general market stations in Cincinnati and Columbus. That ultimately freed up our urban stations to have better ratings in a PPM world."

To subscribe to Radio Ink magazine in time to receive the February 27th issue, GO HERE

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Big Changes at Apple Mean Big Changes to the Streaming Industry

by David Palmer

Listeners to online and mobile streaming may have noticed some changes over the last few weeks.  Stations previously listened to on Apple systems are now either not on apps or not working on Macs or iPads.  This is due to Apple?s latest changes to its operating system.

First unveiled in June during Apple's annual Worldwide Developers Conference, iOS 5 heralds more than 200 new user features and brings 1,500 new APIs.  It is designed to provide seamless integration with Apple's free iCloud service, replacing Apple's MobileMe offering.  The iCloud automatically syncs content on Apple servers for access across iOS devices including Macs and PCs.  Each day,  iCloud backup saves information from the user's iOS devices over Wi-Fi, storing updated content including purchased music, apps and books, as well as photos, videos, device settings and app data.  Additionally, Apple's App Store and iBookstore now download purchased iOS apps and books to all authorized devices, not just the unit on which they were purchased.

This all sounds great, at first glance, but what broadcasters are discovering is that if you are streaming WMA to apps or Apple devices, your stream is no longer working on those devices.  This is yet another example of Apple?s global war on Microsoft and any other operating system that might threaten their dominance.

Many attempts have been made to prevent these types of actions by Apple.  A class-action suit filed against Apple alleges the company unfairly uses technological restrictions with its iPod line and iTunes Music Store to beat out competitors.  The suit, filed in U.S. District Court for the Northern District of California, is the latest to accuse Apple of unfair business practices.  Apple is facing similar legal actions and scrutiny elsewhere in the U.S. and Europe. 

As we are all aware, you ?can?t fight city hall.?  If cyberspace were a city, Steve Jobs would be the Mayor. So what should stations do?  AACplus is currently the most widely accepted streaming format for both PC and Mac users and is gaining popularity with app developers as a cross-platform format.  It is a format that Apple seems happy with as well.

There is another saying we are all very familiar with: ?if given enough rope one would hang himself.?  Microsoft has sat by with the attitude that this iTunes fad will fade eventually.  Apple continuously improves its operating systems and this affects all areas of electronic media.  Even someone like me who was a die-hard PC fan, now has a Mac on my desk, an iPhone in my pocket and an iPad when I travel.

David Palmer is CEO and co-founder of ChristianNetcast.com, the parent company of MainstreamNetwork and NWR Network. He can be reached via e-mail at david.palmer@christiannetcast.com

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Is Dan Mason Trying To Change An Industry?

A memo, a few PD meetings and a well-organized media push gives us the impression CBS Radio President Dan Mason has bigger things in mind than just announcing a song title and artist name a few times a day. Could Mason be trying to lead an entire industry in a new direction? Following Mason's recent meeting with a music executive, the CBS media department has been working on all cylinders marketing the "Mason Memo." The easy part was getting it in the radio trades. However, it's been circulating around the Internet via social media, blogs and was even in the New York Times. Yesterday CBS trotted out Director of Programming Greg Strassell (see next story) to discuss details about how CBS is implementing its new programming rules. The changes are pretty simple. Music stations are going to go back to announcing an artists name and the title of a song. Not all songs but certainly more than what listeners have been accustomed to hearing.

Last night Radio Ink spoke with legendary radio programmer Lee Abrams. Among many accomplishments, Abrams invented and built Album Rock, the first successful FM format. He also designed numerous other highly successful radio formats including the first Eclectic Rock format at San Francisco?s KFOG; the first FM Urban/Dance format at New York?s WKTU, the first New Adult Contemporary format among others. In addition, he created the original blueprint for the NBC Source Radio Network. We wanted to get Abrams opinion on the "Mason Memo" and his thoughts on where this is going.

RI: Do you think Dan Mason is trying to change an entire industry with this organized push?
I hope not,  because a memo isn't going to do it.  To me radio is out of sync with 21st Century America content wise.  Radio is Mitch Miller and the America wants Elvis...or Bobby Vee and the America wants The Beatles...or Poison and America wants Nirvana.  You get the idea.  Dramatic and noticeable evolution. I commend him for stepping out,  but it's such a small point,  it's not going to make any difference on the street,  just like an App,  a Facebook page or a new slogan isn't going to drive any significant movement in an era where evolution isn't a luxury it's a necessity. Something America WANTS but radio isn't delivering nearly to it's potential. We need to address and execute on  intelligent but sweeping re-thinking,  cultural change and execution,  more than worrying about announcing titles.

RI: What is your opinion on whether or not Radio should be doing more song/title announcing?
Music has become a commodity at radio and the lack of song/title mentions is symptomatic of a much greater self inflicted problem at music radio.  While the golden days where radio was relatively uncontested in the music space are over,  there are some things that are timelessly important in a competitive music scenario.  Musical credibility is earned and announcing song titles  is just one minor component in embracing the artists and songs a station plays.  Listen to a successful music station in the 60's and you'll hear the instinctive  celebration and embracing of songs they played.  Not every song as some are pretty obvious,  but the "spirit" of the musical presentation was electric and exciting.  Can't go back to that 'sound' but sure can re-interpret that spirit for 2011.  As much as the 'underground dj's' caused great format adherance pains in the early days of FM,  at least they had musical passion---something missing and replaced by rocket science.  Somewhere between that intense passion and science,  lies the zone of musical cred and a magnetic musical relationship with the public.

RI: How did the industry get away from doing it? It seems so simple. Who determined it was something the listeners did not want?
Again,  a symptom of radio's creative coma. Leaders are looking for  consolidation and  digital answers which while important, are masking the true growth inhibitor---stations that simply don't connect with listeners beyond utility. Generating fans and not users. The presentation of music is on autopilot.  An afterthought.  Just the fact that Dan's comments are gaining such attention is frightening. It has never been more important for radio to go into creative over drive and that includes the total capture of the artists they focus on.  The entire mind set of the radio industry has been in a denial driven self congratulatory state for awhile now,  and especially in terms of music presentation.  The level of clever, intelligent and hyper competitive thinking in terms of what comes out of the speakers would make a Storz or McLendon roll in their grave (if people dont know who those guys are---that's a problem in itself). Radio is in my DNA,  I love it as most of your readers do,  but if you really love it--get IN the fight  on the most basic playing field---What comes out of the speakers.  If Thar's brilliant,  everything else from digital to NTR will flow from that and issues like song announcing will be irrelevent factors in the bigger picture of CREATING brilliant radio that ins in sync with the potential of this century. And---it isn't expensive.  It's a mind not a money thing.

RI: Why not do it for every song when the jock comes back on?
Some songs need it...others don't.  Some formats are foreground,  some are environmental.  The better idea is to blow up the playbook and redesign stations for the 2011 realities.  Even successful stations should go through a "creative audit" as if they are REALLY successful,  a re-think can only make them more so as they are operating from a position of strength.  It's not just the song announce issue,  it's EVERY element of how a station presents music in the new era.

RI: Can Mason's idea lead an entire industry to change?
The whole "announce the songs" thing is microscopic in importance.  An inside the industry thing.  I seriously doubt a single listener will notice.  It's going to take a lot more than a memo from a respected group head to drive any change that is noticeable to the public.  Just as it has historically,  it's going to take a few breakthrough concepts not memos.  The radio CULTURE is  part of the issue too.  Adverse to embracing the art of radio which as in "theater of the mind" is perhaps the greatest advantage radio has...or had.  It's not arts and crafts...it's the quest to take people places as only radio can.  If a film can...why not radio?

RI: How many spots should a music station be playing every hour?
It depends,  but more important is that spot load isn't the problem.  It's the lack of MAGIC between the spots.  The whole vibe of what a station does. Its passion, character and muscle.   Spots keep the lights on...but  low spot loads are over rated unless of course you ran 8 and everyone else ran 18.  But when most stations run about the same number,  it borders on irrelevant in the big picture.

RI: Are we killing ourselves with the unentertaining chatter and long stopsets?
That doesn't help.  In fact I often wonder if DJ's aren't,  with a few exceptions,  a relic of the past.  At XM was had a "Classic Rock" channel with NO DJ's---just amazing production,  killer songs (and not the standard tested library) and a few features that magnified certain artists and genres.  The experts said you HAD to have DJ's,  but what can a DJ possibly say about a Beatles or Pink Floyd song that is even remotely interesting.  But again---it's not ONE thing that can kill anything---it's addressing every aspect of a stations' character from music to how the receptionist answers the phone.  I think evaluating the function of the DJ in 2011 is a worthwhile excerise as it hasn't been thought through in decades.  Maybe DJ's or the 'DJ style' is more annoying than compelling?  Maybe...maybe not--but THOSE are the level of questions that need to be asked and acted on.

RI: Do you think online services are playing a role in how radio is starting to think?
No.  We are at the most important crossroads in media history.  The Apple/Google era,  yet radio seems happy to live within its own 90's rooted walls.  Radio remains omnipresent and a  potential culture mover,  but just not seeing the kind of 21st century creative content swagger it's going to take to be the soundtrack of America throughout the century.  If anything,  maybe Dan's letter will stir some thinking and that's a start.  But this is serious stuff...there's a media WAR out there and it's going to take more than a memo, some slogans and a cool App to win it.  THAT is what's exciting about the future of radio.

(6/2/2011 1:55:23 PM)
Great blueprint for how to become a consultant or better yet 'guru' or 'minister of innovation'. All questions--no answers. In the same paragragh he harkens back to the glory days of 60's radio then suggests DJ's are obsolete. Even more hilarious is the notion that XM's production was/is 'amazing'. Radio has been evolving and reinventing itself for decades and will continue to do so while reaching 90+ percent of the population each week through whatever means technology provides the marketplace. The most compelling content in media today continues to be Radio even as watered down as consolidation has rendered it. Radio was doing 'reality'
way before Survivor. Here in market 261 where everyone wears 11 different hats we still take time every day to ask "how can we do this different/better/cooler". The idea that Radio pros are simply blobs sitting in the middle of the road waiting to be run over by advancing technology is a farce. We ARE the digital revolution because our reach and content are unmatched and columns such as this one are read,debated and acted on by some of the brightest minds in entertainment today.
(6/2/2011 1:38:07 PM)
Enjoyed the interview.

Because it's so much easier to point to problems than it is to identify specific solutions, I commend Dan Mason for the step he's taken. Maybe it's small in the scheme of things, but bless him for doing SOMETHING, right?

Re: spot loads, Lee said, "...spot load isn't the problem. It's the lack of MAGIC between the spots." I'd add that the spots themselves too often lack luster, let alone "magic." This, too, is something we can fix--if we choose to.

(6/2/2011 9:59:14 AM)
Lee hits the nail on the head - radio is suffering from a creative gap. The goal of most stations is to make sure the trains are running on time. Never mind that radio is supposed to be an experience. Announcing title and artist is the least of radio's issues. Radio has lost the understanding that it is about companionship. It was social but has ceded that ground. Music radio does need to re-invent itself but that would require risks. And, while risks do lead to rewards they can also fail.
(6/2/2011 6:12:03 AM)
I'm reading the arguments and one theme constantly runs through my head, "There's an App for That."

Originally radio was the App for everything, and as technologies change so does the application. Many would say radio is dying or is dead, like some failed Angry Birds knock off, in truth the original application of radio is far from dead, but in some cases very much forgotten, the ability to be local, and give that personality nothing else can.

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Eric Church Wants to 'Kick Everybody Else's Ass in the Industry' With Third Album

It's a sunny Tuesday afternoon on the west side of Nashville as Eric Church sips a beer and relaxes on the deck of a brick house. But he's not chilling at home. He's taking a break from the basement studio of producer Jay Joyce, where they're recording "Chief," his third album.

"It's the most fun I've had in the studio since we've been doing this," he says of working with Joyce, primarily known for producing such non-country acts as Audio Adrenaline, Macy Gray, John Hiatt and Patty Griffin.

Arthur Buenahora, who signed Church to a publishing deal at Sony Tree, suggested he meet Joyce. They worked together on Church's 2006 Capitol Records Nashville debut, "Sinners Like Me," and 2009's "Carolina." "Jay had never even really heard country music, much less produced it," Church says. "We were both a little wary of each other. We made a couple of tracks together and I just fell in love with them. He's a genius in the studio."

Church and Joyce's collaborations have proved successful. Fans recently voted him the Academy of Country Music's top new solo vocalist. His last single, "Smoke a Little Smoke," peaked at No. 16 on Billboard's Hot Country Songs chart and "Homeboy," the lead single from the new album, is No. 22.

"We've had enough success now that I can push the envelope," Church says. "I held back a little bit sometimes because I was afraid people would think I'd lost my mind. Then 'Smoke a Little Smoke' was a hit... I saw it work when everybody told me it wouldn't. I decided that whatever little bit of rope they gave me on that song, I just tied it to the back of the truck and took off down the road."

Church began recording "Chief" last November and the afternoon he spoke to Billboard was the last day of tracking. "I have a couple more songs that are wild cards," he says. "We're really pushing the envelope today and seeing if I can find lightning in a bottle."

Heading down to the basement to join Joyce, Church seems relaxed as they begin working on "She Got a Rock So I'm Getting Stoned." Church delivers the song with the right combination of anger, angst and resignation. Drummer Craig Wright is in the next room, but bassist Lee Hendrix and guitarists J.T. Cornfloss and Brian Sutton are in the room with Joyce and Church.

"It's very vibe-y," Church says. "Everybody is on top of each other. It's not a big nice studio. There's no catering. We're not here to baby everybody. We're here to make music. I know how I want it to sound, how I
want it to feel... it allows me to be beside the guitar player and slap him on the arm if something is right."

Church uses his road band on some tracks (Hendrix and Wright are his players) and also enlists studio musicians. "There's a couple songs on this record that I'm playing all the guitars on and that's the first time that's happened," the North Carolina native says. "I'm playing acoustic on 'Home Boy'... and I'm singing a lot of the harmonies on it too. It just feels like I'm more involved in every aspect."

The album is slated for release on July 26. Church wrote or co-wrote all but one song (Casey Beathard penned "Like Jesus Does") and he knows he'll have to cull the 15 tracks he's recorded down to 10 or 11.

"It's the hardest part, other than capturing them," says Church, who also gets his wife, Joyce and Buenahora to weigh in on the best tracks to keep. "I have to get in my truck and ride around with all 15 and see which ones feel like they're from either a different record, or [if it] feels like we've not got there yet."

Church acknowledges he's considered a bit of a renegade. "I'm seen as the bad boy, a lone wolf. I do my own thing and that's OK," he says. "I'm not doing it to make friends. I just want to make great music and honestly kick everybody else's ass in the industry. That's my goal."

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