The Real Numbers Behind The NextRadio App

3-20-14

If you live in the Internet World you may be fogged by the false belief that every company that launches is an instant success, goes public, and everyone involved becomes filthy rich overnight. In the real world, new businesses need time. They need time to grow. They need time to market. They need time to be agile and adjust to the fast-moving consumer who wants this thing today and that gadget tomorrow. Pandora, while wildly successful today, launched back in 1999. It would be many years - and a name change - before Pandora would become the audio juggernaut it is today. Will NextRadio be the app that puts Radio on every smartphone in America? Time will tell. For now, the service has the backing of Sprint, and most of radio's biggest broadcast companies. Consumers appear to like the app once they know its available. Will saving data become the driving factor that helps catapult the app to the masses? Hard to know. For sure, if radio stations do what they do best - offer great content - the app will continue to grow. To get you up to speed heading into the NAB show in Las Vegas, here's an interview with Emmis' Chief Technology Officer Paul Brenner.

(3/22/2014 1:35:30 AM)
The problem here is that the radio industry focuses on new technology over spending money on promotion and content. It is all about content. If you have superior content and the ability to promote it the audience will consume it wherever it is.

The radio industry with its lack of superior content and 10 minute long stop sets has the fate of the Titanic. Everyone continues to rearange the deck chairs while no one wants to change course so the ship doesn't hit the iceburg. It will hit the iceburg

(3/22/2014 1:31:44 AM)
Sorry, but you're wrong. Yes, Pandora started in 1999- but there were no smart phones then. Now smart phones have penetrated 65% of the market and this app is nowhere. That's not my opinion, it's reality.

Maybe it will get traction and I hope it does, but broadcasters need to know that this will just be one slice of the pie, not the whole pie.

(3/22/2014 1:24:11 AM)
The problem with this app growing is that most of the programming on radio is crap. Nobody wants to hear it unless they have no other alternative. Nobody wants the 10 minute long stop sets and 1970s Star Wars Imaging.
I am currently on a trip to Vail in Colorado.
On the bus trip from Denver the driver is playing Pandora
At the ski lifts they are blasting Serious XM or Pandora.
Took a ride on a snow cat and the driver was listening to something called InetRadio on his smart phone. No radio
(3/21/2014 4:33:55 PM)
Here are some actual numbers for you: http://www.markramseymedia.com/2014/03/is-nextradio-growing-or-sinking/
(3/21/2014 1:20:40 PM)
Sorry, just saw the link to the interview. :)

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Smith Urges Broadcasters to Get Behind the Chip

9-18-13

NAB CEO Gordon Smith told Radio Show attendees Wednesday that investing in innovation is crucial to the long-term growth of the industry -- and one of those innovations is the FM chip for cell phones. Just watching people walk the hallways or sit in sessions, it's clear the cell phone has become an extension of the human body. Most agree that if radio had a perrmanent position on the face of every cell phone, that would be very beneficial to the industry as a whole.

Of course, Smith mentioned the importance of local radio being on and available to communities in times of tragedy and disaster, which unfortunately, we hear about every year in this country. An FM chip delivers radio without the need of a stream, so your local station will always be there, over the air, when listeners need it most. Smith said the FM chip technology, now also being referred to as "hybrid FM radio," benefits consumers and provides many opportunities for broadcasters and manufacturers. NAB Labs has been instrumental in helping produce the product that Sprint would eventually buy into and put in its phones.

Smith also gave credit to Emmis CEO Jeff Smulyan, who, he said, pioneered the FM chip effort; he added, "and, like many unsung pioneer heroes, he has taken his share of arrows in the back to bring this initiative to the forefront of the radio business." Smulyan, according to Smith, had additional help on the FM chip initiative from Hubbard Radio's Bruce Reese and Ginny Morris and Cromwell CEO Bud Walters. Smith believes that getting the chips in all phones is yet another way to increase the influence of the radio industry.

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A Look Behind the Pandora Local Effort

8-14-13

In a lengthy interview in the Minneapolis St. Paul Business Journal Pandora Regional VP Gabe Tartaglia spoke to writer John Vomhof about the company's local sales presence, where he says Pandora is the number two radio station in that city. Pandora now has seven people in its Minneapolis office, four sales reps and three client-services reps. Tartaglia says Pandora has over 700,000 monthly listeners in the Minneapolis DMA. "If you take a demographic like adults between 25 and 54, we have about 400,000 listeners. That kind of scale allows us to compete as if we were the No. 2 radio station in the market or even up against some of the television stations."

Automotive is Pandora's biggest category in Minneapolis according to Tartaglia. "Currently, we have about 10 different local dealers. Some of the bigger ones are Maplewood Toyota and Morrie's Minnetonka Kia. In health care, we do a lot of business with Park Nicollet. In education, which has been really fantastic, we do continuing ed business with the University of Minnesota and also Globe University."

Tartaglia told Vomhof the key differentiator between Pandora and radio is that if you're listening to Pandora, you register by telling us your age, gender and zip code. "That allows us to do very finite targeting for a media campaign. So, if a local advertiser wants a very custom geography or wants to reach an exact age or gender, we can provide that exact demographic with 100 percent guaranteed delivery and zero waste. That's different from broadcast television or radio, where you're sending it out to the entire market, and depending on the format, they may know generally who'd listening, but they can't tell exactly the way we can with our listener registrations."

Pandora has local offices in about 29 cities today.
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The Story Behind Brian "Big Bear" Davis

8-9-2013

As a tall and handsome man with a voice that sounds like a warm summer night, Brian ?Big Bear? Davis puts Barry White to shame. As the man entrusted with seven stations, overseeing 23, Brian can implement almost any format with intelligence, confidence, clarity, creativity, and competence. His stations compete at the highest level, and Brian will not rest until each station is a finely tuned machine. He is truly a man of a thousand talents. Whether as a programmer or on-air talent, Brian?s abilities go well beyond what is expected in our industry. He can dominate the room with his presence but is the sweetest, warmest, kindest person. For those of us in the radio industry, we are fortunate to have Brian Davis? influence and leadership.

Now, in his own words, here is how Executive VP, Chief of Programming Operations Point Broadcasting LLC Brian "Big Bear" Davis got into radio?

I have always had a love for music and was intrigued by radio at an early age, but I never thought that it would be my career. The way I actually ?got into radio? was a complete accident.

While in college, I was majoring in agricultural business (yes, I wanted to be a farmer and live off the land, kind of), a friend of mine who was a communications/drama major, asked me if I could ??fill in for his show?? because he had something to do that night that was really important. Being a good friend, I said yes before I even knew what his job was. I didn?t know if this guy was a stage actor, street performer, or what. I had NO IDEA what ?fill In for his show" meant. So, I called back for clarification, and it turns out it was a radio show. Specifically, R&B Slow Jams, Tuesday night from 10 p.m. to midnight on our college radio station.

That was the beginning. The show was in five days, and I grabbed every CD I had, borrowed a few pieces of vinyl from my Dad?s collection, and proceeded to tell everyone on campus and anyone I could get on the phone to make sure to tune in Tuesday at 10 p.m.

As I continued my street promotion campaign, I realized that I had to narrow down my playlist. I had amassed a ton of music, however it hit me that it was only a two-hour show. That?s when I figured out that I needed to consult a pro. At the time, I was taking one communications course, and my professor, Jim Wilson, was a great guy. He let me pick his brain, calmed me down, told me where I was waaaaaay off base, and basically helped me assemble the foundation for what is now my career. From there I comprised the most incredible playlist for two hours of radio ever assembled. It consisted of everything from Faith Evans and Jodeci to the Isley Brothers and Mtume. (Look them up, classic love triangle ballad of all time ?You, Me and He?)?

After all of that, the time had come: Tuesday night 10 p.m., I was on. It was INCREDIBLE!!!!!! After the 10 minutes of phone calls from family and friends, I realized something: People were calling me because they loved the music (that I loved), and were enjoying listening to it. It was great!

And then ?IT? happened. I remember it like it was yesterday. I had just given out the number to the studio line, and talked into the Isley Brother?s ?Between the Sheets.? The break was perfect -- a 23-second intro, flowed perfectly, got out right in time, hit the post? perfect. I just sat there for a minute grooving to the song; the speaker was directly in front me. I was basking in the moment. In my head I?m thinking, ?I AM THE MAN RIGHT NOW? I AM KILLING IT!? After a minute of getting over my own ego, I heard a little voice inside say ?Hey man, isn?t the small speaker in front of you for cuing music, and what plays on the air comes through over the big speakers up on the walls?? 

Sure enough, my perfect delivery and perfect track were not what was airing on the station. Pure terror ran through me. You know those moments when you get nervous, and your underarms feel like they?re on fire for a split second? I had all those types of feelings. All I could do was open the mic, and start it over.
After my fumble recovery, I proceeded to take calls, let people make dedications and requests, share stories etc. I had a ball, and then the two hours was over. The phone kept ringing with people commenting on the music and the show, so I stayed there talking to people for another hour as we switched to bluegrass music (gotta love college radio).

After I left the studio that night, and walked back to my dorm, that was it, I was hooked. I had just had one of the greatest moments of my life (up to that point), and one my greatest blunders (up to that point). All at the same time. Radio is GREAT!

My friend asked that I continue his Tuesday night show, which later evolved into a longer form Sunday afternoon show, which further evolved into me becoming music director of our college station, creating other opportunities to expose different types of music, interning at our local commercial station, and continuing through a typical radio career path of multiple jobs, multiple cities, multiple call letters. To this day I still approach radio with the same passion, eagerness, and uncertainty of my first day taking over that show.

Lisa Miller is the President of Miller Broadcast Management in Chicago. She's also one of Radio Ink's Most Influential Women in Radio. Miller can be reached at Lisa@millerbroadcast.com or 312-454-1111.
So, how did you get into radio? We'd love to hear the story about why you're passionate about radio.

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Who's Behind Woof Boom Radio?

5-8-13

A 17-year radio executive with Emmis and most recently Maverick Media of Rockford, Illinois, Chapman grew up in the broadcasting industry.  His father led Indianapolis WFBM Radio & TV for three decades, and J got an early start in the media business when assigned by his father to mow the grass at the TV station?s north side Indianapolis transmitter site. Emmis CEO Jeff Smulyan said, "J Chapman will be a breath of fresh air for employees, advertisers, and listeners at the stations that will soon be part of the Woof Boom family. While J?s leadership of our Fantasy Football team -- the Smulyan Bay Buccaneers -- left much to be desired, he is an astute and compassionate leader who is committed to local radio that makes a difference.  I am delighted that J is coming back to Indiana."
A group of local investors, headed by Chapman, have formed Woof Boom Radio, a nod to WFBM in Indiana broadcasting from the beginnings of radio in the 1920?s until the mid-1970?s. The Woof Boom Radio ownership team is led by Chapman and includes three other local businessmen: Ray Kennedy, Conormara Investments;  Jason Farmer, Managing Director of WestBridge Investments; and Aaron Reitz.

The Indiana stations being purchased by Woof Boom Radio from backyard Broadcasting include: in Muncie: WLBC-FM, WERK-FM, and WXFN, in Anderson WHBU-AM, in Hartford City WMXQ-FM and in Alexandria WMQX-FM. They LMA the stations beginning June 1st. The deal is expected to close later this summer, pending Federal Communications Commission approval. Woof Boom Radio is looking to make other strategic acquisitions in radio.

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(LEADERSHIP) Hit From Behind

2-15-2013

A few years ago I witnessed a general manager lose his job. I was watching this from a distance. The GM did not report to me, but another VP in a different region. I had always thought the guy was pretty good. His numbers weren?t award-winning, but they weren?t bad. I was curious as to why he didn?t make it.

A few months later, the company did another shuffling of market assignments and his market was assigned to me. As I made market visits and got to know the people there, I was amazed at the quality of the team he left behind. They were bright, hard-working, and starving for leadership. It was a dream team to me. So, where did he go wrong? What happened?

After some time, I began to see the answer. I saw the assassin that took him out and I realized that this was an enemy that could get any of us if we weren?t aware of its cunning presence. This GM was ?HIT FROM BEHIND?; hit from behind by his own people. When people are starving to grow, improve and learn more, as their leader you had better be teacher enough and coach enough to take them to the mountaintop they want to reach. If not, they could just figure out how to get there without you and, in time, your own people can run over you and you?ll be hit from behind.

There is little in management and leadership more important than growing your team and the only way to grow your team is to grow yourself! I?ve spent decades, an entire career, reading and studying business and leadership. After 41 years in this business, I find I?m as hungry today to learn and improve as I?ve ever been. I remember there were several years I had managers in my region read a book I assigned every quarter. Then, we?d have conference calls to discuss what we?d learned and how we were going to apply it. Having an atmosphere of continual growth is critical for any successful organization. But if the leader isn?t growing, then they can?t grow the team. Sometimes, if the team is hungry enough for improvement, they?ll figure out a way to get the job done without the leader and then the leader can suddenly be ?HIT FROM BEHIND.?

As a leader of people, you had better be growing yourself all the time. You should be a voracious reader. You should conduct regular training on subjects that make your people better; not just better sellers, but better business people. Nothing is more sad than to see a manager hit from behind. Be certain this downfall doesn?t happen to you.

Rob Adair is the President of Pinnacle Solving. His company provides revenue growth solutions, branding and differentiation strategies to radio and other industries. Adair is a former radio industry COO and Sr. VP overseeing 25+ stations and multiple major markets. He can be reached at 405-641-0458 or by e-mail rob@pinnaclesolving.com

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Group Heads Line Up Behind Smulyan

2-5-2013

Radio Ink spoke to several Radio Group Heads Monday to get their feedback on whether or not $15 million per year was too much to pay Sprint to have FM chips installed and turned on in 30 million smart phones that will include Smulyan's NextRadio app. Hubbard Radio President and CEO Ginny Morris said she supports their plan and the industry owe's Smulyan a great deal of thanks. "Jeff Smulyan has worked tirelessly and with little help on getting us to this juncture." Here's more on what Morris, Galaxy CEO Ed Levine and Cromwell President and CEO Bud Walters think of the Sprint/NextRadio plan.

Morris says Radio has to recognize that people no longer wake up to an alarm clock. "Having a 'stereo' in your room is no longer 'the it thing' for most high school students and my guess is that most dorm rooms have docking stations instead of stereos. Couple those changing behaviors with the new competition in the dashboard and you have among other things -- far less visibility to local radio than we used to have --  I see this as 30 million more radios in the marketplace--that's a terrific start."

"We have so much more to offer than our ability to assist in an emergency.  If we all do our jobs right on the local level people will appreciate the simple ability to access us over directly on their phones and not through a data plan. We are local, we are relevant in the lives of our listeners, we entertain and inform. Yes, we are also a lifeline to people who are dealing with the aftermath of a crisis but those are not the only times we matter in the lives of the American consumer."

"I have reached out to several people about giving a verbal commitment to participate in the program by dedicating inventory and without exception everyone has stepped up to do 'at least' what was asked of them.  Big companies, small companies, big markets and small markets--the response has been overwhelmingly positive."

Galaxy Communications CEO Ed Levine also likes this deal. "The revenue split is innovative and the access to the phones in the Sprint customer base is huge. I would gladly sign up for the same deal along the same terms with AT&T and Verizon. This is about portability and distribution of our content. It's 2013, time to stop debating these critical issues of long term survival and simply get it done!

Cromwell broadcasting President and CEO Bud Walters says, "Over the last several weeks I have been in contact with small market licensees of more than 450 radio stations. All except two have pledged $10,000 per year per station for three years for this project.  There has been general excitement about the idea and the need. There are  certainly a lot more licensees who will be supportive."

The app is being developed by Emmis and should be ready in April or May according to Smulyan. He says the response so far "has been spectacular." And, to allow radio stations to start competing on the dashboard immediately, all stations will get a few free features, including their logo and a liner.

Every radio station in the country will be available on the NextRadio app. Local listeners will have access to local stations through these Sprint phones with the NextRadio app. It will be the interactive upgrades stations decide to add to the app that determine just how competitive stations are with the cutting edge technology companies of today. Upgrades such as album art, graphics, selling targeted ads (watch out Pandora) and ways to purchase songs as they play.

Emmis is holding a free informational webinar on the app. February 27th

(2/5/2013 7:04:00 AM)
So, Jeff ran his company into the ground for something that consumers don't care about - what a deal! Thirty million is a drop in the bucket, too. That safety issue was a was always a ruse. Of course, being an investor in iBiquity, Jeff's goal is ultimately to get that flawed HD Radio chip into cell phones, and have the iBiquity royalties passed onto consumers.

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Behind The Scenes At Clear Channel

Bob Pittman is the most powerful man in Radio and now he is firmly in charge at Clear Channel and its 750 radio stations. We will feature Mr. Pittman on the cover of our December 5th issue. Changes are being made at radio's largest company, they are in the headlines nearly every day. New ideas are being instituted , new people are being hired and promoted and others are being let go. We've heard a lot about the "reduction-in-forces," and now it's time to hear the vision behind the changes. As Pittman enters his first full year in the drivers seat we'll ask him how expects to lead the radio charge out of a stagnant economic environment and into the digital future. Our December 6th interview will only be available in our print and digital editions.

(11/5/2011 11:39:38 AM)
As much as I resemble the "50+" category, Bob's points are well taken.

The management and ownership of C.C. and so many other corporate Radio business typhoons have completely disregarded the main mandates of Radio: To attract and hold the largest potential audiences while creating and delivering the most effective advertising possible on behalf of its clients.

If not so unnecessarily and obviously tragic - watching these people swapping out the cloth on the deck chairs, watering down the varnish on the frames and using all but the most essential of the remaining furniture as fuel for the fires that keep the boilers just barely making steam... would be funny.

"Funny" - not as in "LMFAO", but "funny" - as in "Call the cops!"

(11/4/2011 2:34:13 PM)
Clear Channel is 20 billion dollars in debt with a horrendous 9 to 1 debt-to-income ratio... much worse, they are run by "old men" (50+) like Pittman and MBA types, with old-school hardwire habits ... such as micro-managing salespeople and demanding they be "at the stations" every morning and afternoon-- why?! - to "make sure they're working?... Gee, THAT'S trusting your people, right??! ..And I guess they've never heard of CELL PHONES!! ... Dinosaurs. And we know what happened to them!

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Behind The Scenes At Clear Channel

Bob Pittman is the most powerful man in Radio and now he is firmly in charge at Clear Channel and its 750 radio stations. We will feature Mr. Pittman on the cover of our December 5th issue. Changes are being made at radio's largest company, they are in the headlines nearly every day. New ideas are being instituted , new people are being hired and promoted and others are being let go. We've heard a lot about the "reduction-in-forces," and now it's time to hear the vision behind the changes. As Pittman enters his first full year in the drivers seat we'll ask him how expects to lead the radio charge out of a stagnant economic environment and into the digital future. Our December 6th interview will only be available in our print and digital editions.

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Premiere Behind New "Nick and Artie Show."

The Nick and Artie show has been up and running now for about a week on DIRECTV and it's been announced that Premiere will be the shows syndicator for radio. The sports talk program airs weekdays from 10PM to 1AM and features Artie Lange, best known for his work on MADtv and Howard Stern and comedian Nick DiPaolo. It's also streamed live on the show?s website, http://www.nickandartie.com/.  Next year, DIRECTV plans to simulcast the radio program on its Audience Network, joining The Dan Patrick Show

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Oaktree Capital, The Money Behind Townsquare, Files for IPO.

June 20, 2011

Oaktree Capital has filed for a $100 million initial public offering. "Public ownership is the most widely accepted way to go beyond an entrepreneur-led or family-owned company to be able to live on indefinitely," the SEC filing stated. Oaktree was founded by Howard Marks and Bruce Karsh back in 1995. In the filing, Oaktree said "Since March 31, 2006, we have raised more than $60 billion in assets, including over $10 billion in each of the last four calendar years, despite a difficult fundraising environment. In the 12 months ended March 31, 2011, we raised over $11 billion for 15 strategies from more than 300 different clients" 

Townsquare Media's largest shareholder is a fund managed by Oaktree Capital. Born in 2009, Townsquare has accumulated over 160 stations in more than 30 markets. A lot of those pickups were distressed radio companies, a specialty of Oaktree. CEO Steven Price (pictured) has his eye on growing the company when opportunities come up. Townsquare focuses on small to medium size markets.

Oaktree will use part of the proceeds from the offering to acquire Oaktree Operating Group units from its affiliate Oaktree Capital Group Holdings L.P. (OCGH). Goldman Sachs and Morgan Stanley are underwriting the offering.

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