RBR+TVBR 2017 Fall Special Report

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AM Revitalization: Talk Radio’s FM Future?

Thanks to the introduction of FM translators, AM radio stations can now reach a whole new set of potential listeners. The biggest boost from AM revitalization efforts has arguably been seen with News/Talk radio stations. Can other formats mostly found on the AM band learn from these spoken-word players?

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What Washington Has in Store for Radio

Sure, the daily antics at 1600 Pennsylvania Ave. NW have captured the world’s attention. But at the Portals, just a stone’s throw away from Dupont Plaza, the FCC has been focused on a review of its rules. Will this really lead to newfound riches for broadcast media?

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Radio’s Millennial Moment

Becoming a magnet for millennials is radio’s quiet conundrum. They may tune in, but are they answering job postings and seeking careers at AMs and FMs with a big digital presence? Yes, and we found two young women who could help attract more youth to an industry full of aging leaders.

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INFOCUS

RADIO: A FORLORN LEADER WITH BRIGHT DAYS AHEAD

By RBR+TVBR Editor-in- Chief Adam Jacobson

Some 22 years ago, the radio broadcasting industry was forever

changed by the passage of the Telecommunications Act of 1996. The Clinton-era legislation, as we all know, led to rapid owner consolidation. Then came Napster, which begat iTunes, which begat Pandora and Spotify and thousands and thousands of other audio entertainment sources.

Today, radio is far from dead. But perhaps it’s forgotten among the wrong set of influencers: millennial marketers that don’t consider radio vital to a brand campaign, or perhaps Wall Street analysts who just don’t think tracking radio industry stocks is worth the time, given the “small” market capitalization of many publicly traded entities.

Where is the radio industry heading? We believe it’s moving in the right direction, and it is in a far better place than it was in 2007. What do some of the top radio business C-suiters think? We’ve gathered four executives for a virtual roundtable discussion that touches on their key concerns, both for their companies and for AM and FM at large.

A CLEAN BILL OF HEALTH Drew Horowitz is a veteran of arguably one of the greatest radio markets, historically, in the world: Chicago. If you’re a listener of Country WUSN-FM “US99,” you have Horowitz to thank: He signed US99 on the air in 1983.

Radio + Television Business Report STREAMLINE PUBLISHING Chairman: Eric Rhoads Publisher: Deborah Parenti Editor-in-Chief: Adam R Jacobson Director of Administration: April McLynn 331 SE Mizner Blvd., Boca Raton, FL, 33432 Phone: 561-655-8778 FA L L 2 0 1 7 · R B R . C O M · 1

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Horowitz has also served as GM and, later, as VP/GM of Hot AC WTMX-FM “The Mix.” He’s still very involved with The Mix, as it is one of the key properties Horowitz oversees in his current role as President/COO of Hubbard Radio.

In the role since July 2014, Horowitz oversees a variety of stations in seven major markets. Each market has its unique traits; Hubbard lets each market’s stations best reflect the local listener.

Horowitz has seen a lot, and has seen the highs and lows of the industry over a storied career. This could explain his reaction to the first question RBR+TVBR asked him: Are we in a renaissance?

He says, “It would mean that we went through some other Dark Age to come out of, and I don’t know if the industry went through one. I’ve been in this industry for 41 years and went through the early years of FM’s acceptance. I think radio is very healthy.”

But Horowitz is quick to add that there are plenty of naysayers out there — particularly “the proponents of the shiny new technology platform, whether it is Alexa or Facebook or whatever it is.”

He says, “These disruptors have changed the way the world views things, but I am a true believer that radio is adaptable and still fits in people’s lives. There is a place for other technology platforms, but radio still has a place at the table.

Penetration and reach [for radio] is still in the low 90% range.”

Beth Neuhoff, President and CEO of Neuhoff Communications, has similar sentiments.

Drew Horowitz “I don’t see technology as a barrier for us … and that is our hangup,” she says. “We want to dictate to our consumers how they behave, and I think that ship has left the station. Radio may not at all look like radio in 10 years, but it will be functioning as a resource to its community.”

Neuhoff Communications was founded some 15 years ago, and today comprises stations in Lafayette, Ind., home to Purdue University; and the Illinois cities of Bloomington, Danville, Decatur, and Springfield.

Neuhoff leads a company with a very clear mission statement: to treat people the way they’d like to be treated. It’s part of a “Media Made Locally” action plan designed to set Neuhoff’s stations apart from national players that may operate the AMs and FMs in these Midwestern markets from afar.

POSITIVE REINVENTION What’s changed for the radio business since 2002, when Beth Neuhoff first dived in to ownership?

“Everything has changed!” she exclaims. “But the great lesson has been that you can’t make long-term assumptions about things.

You have to move quickly and not be afraid to do so. Where we have done well is where we have been willing to be aggressive, and where we have fallen behind is where we have been too timid to act.”

Something else that has evolved for Neuhoff is her outlook on streaming, and how that will help propel radio broadcasters sooner rather than later.

“There was a fundamental belief when [our] business started that AM and FM would be extraordinarily viable in the future, and I’m not sure that is still the case,” Neuhoff says. “We have some big AM radio stations, and I am very glad we are able to get them FM translators and audio streaming.”

Horowitz takes the evolution of radio listening one step further.

He says, “The question I ask about listeners is, ‘Are they using it as much as they have in the past?’ Maybe not. But is radio still a part of the fabric of their lives? I believe it is.”

Horowitz believes Alexa, that friendly female voice powering the Amazon Echo, along with similar devices, is doing the radio industry a tremendous service by making AMs and FMs readily accessible to many once again.

He’s using an Alexa-powered device as a next-gen clock radio and home stereo system. “It’s a great vehicle for me to listen to radio at any given moment,” Horowitz says.

Neuhoff views radio’s future through a similar prism. “In my head, radio is audio — engaging the ears and the minds,” she says.

“For me, it is about showing the kids you can do that, and starting at a young age.”

Neuhoff COO Mike Hulvey is doing just that. Around the time Neuhoff Communications launched, he started a broadcasting camp for kids in middle and high school. This summer saw the head of social media for the Pittsburgh Steelers NFL club visit, and get young people excited about all media, including radio.

REFRESHED OUTLOOK FROM THE SALES DESK Pushing the old and the new is what is driving Bob Proffitt, President/COO at Portland, Ore.-based Alpha Media.

“Yes, radio is relevant … and in our opinion, it’s in a resurgence,” he says. “As we talk about that, we try to teach our account executives to be multifaceted.

And we want them to talk about the ROI radio brings.”

One “old thing” Proffitt makes note of is the use of “spec spots” — and the importance of establishing great creative before it hits the airwaves. The “new” part of the discussions with AEs focuses on streaming sponsorJesus Lara ships. “We are talking about video pre-rolls, and a lot of different things there,” Proffitt says.

How radio companies can best embrace digital platforms is perhaps one key question that’s not so easy to answer. Jesus Lara, the recently named GM of Digital, Content, and Entertainment for Univision Communications’ radio stations, couldn’t be happier after six months on the job. “I’m privileged to have the opportunity to lead,” he says. “It comes with its ups and downs, but I’m extremely happy.”

That said, Lara is busily tackling ways to cope with the “challenges of the digital disruption.”

He says, “In short order we feel we will be able to change some of those trends. For Univision, it involves rebuilding on the Uforia brand, having great personalities with strong music programming, and addressing the network/national radio issues the whole industry is having.”

Lara continues, “It is no secret that national radio sales is just going through a bit of a transition right now. We just named new leadership to lead national sales efforts at Univision Radio, and a new rep firm, Eastman Radio, is taking assets out to market. This change in leadership is really starting to move the needle for us, but growth is to be determined.”

Being prepared to compete against digital goliaths including Facebook and Google on the local level is one thing. But the radio industry also has the challenge of dealing with talent poaching, and landscape shifts that can negatively impact sales for not just one cluster, but an entire company.

Univision Radio is seeing strong sales results in Dallas, and things are stable in Los Angeles. In Miami, Univision is challenged, primarily by the departure of veteran air personality and programmer Enrique Santos from its WRTO-FM “Mix 98.3.” Santos is now at iHeartMedia, leading its entire Hispanic programming initiative, and also hosts a syndicated morning show from its WZTU-FM “Tú 94.9” in Miami.

THINKING DIFFERENT, NO MATTER THE LANGUAGE Sure, Univision’s portfolio of radio stations is largely targeted to Hispanics. But with the Luis Fonsi and Daddy Yankee smash “Despacito” spending its 15th week at No. 1 in Bavaria, Germany, as of July 28, and Hot AC stations in rural Kentucky playing the track FA L L 2 0 1 7 · R B R . C O M · 3

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in high rotation, one can argue that Latin pop is the world’s Top 40 choice of the moment.

Lara would certainly love to draw listeners from Englishlanguage pop stations. But his focus is squarely on attracting the largest segment of the biggest ROI generator for marketers across the U.S. — Latinos.

What’s the state of Hispanic radio, compared to the “total market”?

“Hispanic radio continues to be healthy,” Lara says. “We are not blind to the disruptive forces that are affecting any media company around the world. But we benefit from having an incredibly loyal listening audience. Many listeners grew up in the U.S., and it shows that generation after generation, they stay with us.”

Such a scenario would be the envy of any radio broadcasting company, regardless of the language its stations use to connect with listeners.

Brand loyalty starts with consistency, and even when a major personality exits to go across the street, there remains an opportunity to remain relevant and keep the core listener base from shrinking.

In Miami, “Javier Romero is an absolute institution,” Lara says.

He’s been the host of WAMR-FM’s Desayuno Musical (The Musical Breakfast) since the early 1990s. “Cubans grew up with him, and now Colombians and Venezuelans who live in South Florida have become attached to him.”

At Mix, the loss of Santos led Univision to bring in a group of social media darlings that SBS once tried on the air, Los Pichy Boys. “They are well on pace for growth,” Lara says.

He believes a key part of these success stories is tied to Univision Radio’s mission to “authentically service the audience.”

This is a lesson for any broadcaster. “If our audience asks for a bilingual offering, then we will look at that,” he notes, adding that a bilingual sample from Nielsen Audio would allow Univision to furBob Proffitt ther take advantage of this opportunity when presented.

In San Antonio, an experiment of sorts is underway, as KMYO-FM shifted from a classic hip-hop presentation to a new take on its Latin Pop “Latinomix” format. Here, the music is 100% reggaetón and Spanish-language hits, from artists such as Nicky Jam, Romeo Santos, Enrique Iglesias, and J Balvin. The air personalities deliver every break in English. It’s the opposite formula to what Univision Radio’s heritage market-leading WKAQ-FM “KQ105” has done in Puerto Rico for generations.

The early results of the changes at KMYO, which began in midApril? The station is in the top 10 in its key demos, Lara says. “If that is any indication of what the future holds, that experiment is giving us learning lessons.”

The ability to try new things while weaving in consistency and longevity has been a large factor in Hubbard Radio’s growth.

“I started in Chicago in 1976 and have lived through the evolution of radio here,” Horowitz says. “The one consistency from a product standpoint is that it has always been a great radio market, with great personalities in the marketplace. In Chicago, radio has a seat at the table, and has always been high-profile.”

When Horowitz took over The Mix, identifying and building a morning show was a top priority. He had lunch with legendary programmer John Gehron, the brains behind Top 40 WLS during the 1970s and early 1980s. Horowitz’s goal: to create a morning show as big as that of WLS in its heyday, when Larry Lujack was sharing “animal stories” with Tommy Edwards.

Gehron thought he was crazy, Horowitz recalls. But he’s had the last laugh: Eric & Kathy emerged as a solid anchor for a radio station that consistently places at or near the top of Chicago’s ratings.

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ing show,” Horowitz says of The Mix’s current success. “Historically, it is the biggest show in the history of Chicago radio.” Eric & Kathy has been on WTMX for 22 years.

Meanwhile, Classic Rock sibling WDRV-FM “97.1 The Drive” was born with the help of consultant John Parikhal on the foundation that it would serve individuals who found no product on the air they would listen to. “They were listening to tapes and CDs,” Horowitz recalls. “Dissatisfaction was high.” With the right imaging, production, and song library, The Drive captured a large segment of men 25-54. It continues to do so some 16 years after it arrived on Chicago airwaves.

BRAND ESTABLISHMENT From Seattle to Cincinnati to Phoenix, Hubbard’s stations are uniquely tailored to the market. Moon & Staci helped Minneapolisbased KSTP-FM “KS95” surge in the ratings as a popular afternoon show. Holmberg’s Morning Sickness at KUPD, in the Valley of the Sun, has emerged as quite possibly one of the best morning shows in America. Then there is the juggernaut that is Brooke & Jubal, the syndicated air personalities who are based at KQMV-FM “Movin’ 92.5” in Seattle.

All are uniquely successful. But there’s one key commonality in play behind the scenes.

“It needs to be a brand,” Horowitz says of Hubbard’s stations across all markets and all formats. “Otherwise, they are just music machines. Then there is no connectivity to the local market.

That is why all of the stream products will always be niche products. It’s like watching a movie on HBO — you’re missing the commercials, but you’re also missing the local news, and the local connectedness. SiriusXM does a good job and has a great product, but it is not radio and will never displace radio. People get bored with that, and ultimately migrate back to legacy Beth Neuhoff radio.”

At Alpha Media, programming VP Phil Becker “has a great relationship” with Hubbard Radio CEO Ginny Morris, Proffitt notes. “We were the first to partner in syndication with Brooke & Jubal, and got them down to Portland,” he says of the hosts, who can be heard in mornings on KBFF-FM “Live 95.5” in the Rose City.

“We had them on the riverfront on bicycles, and they’ll come down here three to four times a year, and we’ll take them to see clients,” Proffitt says. “It’s not just Brooke and Jubal. It’s the people here [in Portland], it’s the promos, and it’s the testimonials that we can offer. That is perhaps the ‘Tesla’ that we have to offer to our clients, and we work hard to give them a good message.”

He continues, “It’s not just pushing Rush [Limbaugh] on and airing a couple of promos for his show. It’s about how hard you work on the local level. We still have a promotions staff, and we do things every day to give back to the community. We work hard on that.”

Meanwhile, Proffitt has given his local market managers some leeway in terms of how they may best run the stations they’ve been charged with overseeing.

“We’re trying to treat people well and act like an ‘un-corporate’ office,” he says. “Our job is to support the markets. We are a support mechanism, and we want them to have an easier way to do business.”

A COMMUNITY CONNECTOR THAT’S FOREVER LOCAL Neuhoff could easily have an office high above the Manhattan skyline, or with a sweet view of the John Hancock Tower. Instead, she’s in Jupiter, Fla., home to a classic lighthouse on an Atlantic Ocean inlet and profuse humidity for five months of the year. She works from home, visits financial offices in nearby West Palm Beach on occasion, and travels to her stations as necessary.

While not by design, being in a small town where AM and FM is

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the glue that binds municipalities has given Neuhoff perhaps a better perspective on the radio business than from a glass tower with multiple elevator banks.

“You’re right on that [radio] is a community connector, although I can tell you technology has dramatically changed the way I can connect with and improve my product,” Neuhoff says.

Like Horowitz, she’s been listening on Alexapowered Amazon devices and the TuneIn app over her Sonos for the last couple of years. “It is game-changing to me ... It is pretty remarkable,” she says.

It has also played a role in what one may consider local media, and how relevant it is to the consumer. “What local now means is that we choose what resonates with us … whatever it is, that is what has allowed us to do what we do,” Neuhoff says. “But I look at the business differently. I experience it as a consumer, and that is a very different experience. Who would we be if we didn’t have towers? Would we still be relevant? The answer, for me, would be yes. We have competitors that do a great job, but they believe the paradigm of over-the-air broadcasts is what carries us into the future, and I don’t know what carries us into the future. I think local is what carries us into the future.”

Values. Community. Clients. These are the three keywords seen on Neuhoff Communications’ website. What does that say about the company, as well as radio’s power to connect in every city across the U.S. in ways other media cannot?

“When you are beholden to a group of investors, perhaps you cannot do what a local community-focused broadcast company can,” Neuhoff says. “Otherwise, it is just another choice — I can listen to satellite or to anything else. If local businesses don’t do well, we don’t do well. It is an ecosystem, and that’s where those values are derived.”

While Horowitz would certainly disagree, Proffitt says radio is indeed having a renaissance. As a result, the industry needs to tout that it is No. 1 with reach, and promote its multi-faceted abilities to advertisers.

“When I started in Wichita, we had :30s and :60s,” says Proffitt. “Now we have a lot that we can do for both our customers and our listeners. We deserve a hell of a lot more than 7% of the pie. I believe in this business, and I know it works well.”

But Horowitz does believe in radio’s future.

“What it isn’t is a sexy growth engine, like it was 20 years ago. But I could say the same thing about legacy TV, and other legacy media. It just has to be reimagined.”

How to accomplish this comes down to one important cog in the wheel for Horowitz: talent.

He says, “Our company attracts great talent, and at the end of the day, succeeding in any business is all about the people who work and drive the business every day. Terrific leadership and terrific ownership are integral to this, and we are willing to take a risk. We don’t have to play it so conservatively because we are a privately held company. Those are the ingredients that enable you to succeed.”

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AM REVITALIZATION: TALK RADIO’S FM FUTURE? The term “AM revitalization” is, in a way, a misnomer. There have been no improvements to the kHz-based facilities seen across the U.S. since the introduction of AM revitalization, a plan designed to throw a new and important lifeline to stations with a distinct disadvantage among their many competitors: They’re not on FM radio.

Thanks to the introduction of FM translators, AM radio stations can now reach a whole new set of potential listeners. This has helped a radio station owner targeting African American listeners in Buffalo, and another owner near Salisbury, Md., that recently purchased an AM in the market while diving into Auction 99 and applying for an associated translator. This Delmarva owner is expected to target a growing segment of Hispanics with the investment.

The biggest boost from AM revitalization efforts has arguably been seen with News/ Talk radio stations, some of which are owned by the biggest radio broadcasting companies.

Interestingly, translators are only part of the story. Fully licensed stations in some markets serve as simulcast partners for the big-signal heritage AM. Either way, there’s a revitalization being seen for News/Talk, and it could preserve the format’s long-term health.

One format veteran currently seeking some revitalization for one of the nation’s more storied News/Talk outlets is Tom Langmyer, the VP/News and Talk for radio stations owned by the E.W. Scripps Co. Scripps wants an FM translator for its flagship WTMJ-AM 620 in Milwaukee. The facility has 50kw during daylight hours from four towers, and 10kw at night from six towers. The station’s signal stretches from Champaign, Ill., to Marquette, Mich., and at night can be heard across the Eastern seaboard.

In 1977 that would have been heavenly.

In 2017, it doesn’t matter as much as getting on FM — a band accessible and wholly familiar to the entire listening audience.

With the addition of an FM signal for a Talk station, there’s certainly an opportunity to welcome listeners that “never go to AM.” Does this involve a tweak in programming, or simply plopping the AM on FM and that’s that?

“Every operator will want to make sure it’s done the right way,” Langmyer says.

“With the addition of an FM signal, once you introduce yourself, do you want to make a product adjustment? Yes. The stations that have been most successful when adding an FM signal, or making the move entirely to FM, have made very noticeable strategic changes to their talk product.

While growth is fueled by an expanded

available audience, it’s also a huge demographic growth opportunity.”

For a News/Talker gaining an FM signal, the essence and feel of the station may change. That’s fine, so long as there’s no wholesale format change.

“Members of Generation X, for example, are very large users of radio, and FM in particular, but have been underserved

by News and Talk formats on radio,” Langmyer notes.

A BOOST, NOT A REPLACEMENT Talk stations are not alone with “AM revitalization.” What does it mean for AMs with other formats?

“All formats apply,” Langmyer says. “At this time, most successful AM stations are doing some form of talk, whether it’s news, news/talk, pure talk, or sports.

FM is a big lake, and the bigger the lake, the more places there are to fish.

‘Revitalization’ is a way to get AM stations on FM, and that’s a great thing. But make no mistake, revitalizing our business also comes from building a multi-media experience through digital platforms, prominence in-dash, and strong products that speak to today’s generation.”

IT’S A WAY TO GET AM STATIONS ON FM… Does this point to mounting evidence that AM radio could be entering its final stage?

Tom Langmyer

With NextRadio unable to get AM, and even older versions of the iHome clock radio without an AM radio tuner, could the next decade see the sign-off of AM radio stations across the country — stations that could have shifted to an HD Radio multicast years ago?

“AM radio remains strong in many cases,” Langmyer says. “Look at some markets and see how much cume is still on AM. Many of the nation’s top revenue producers are AM stations. Still, the amount of FM-exclusive cume is significant. So, to your point, being on all the right platforms is key.”

At the same time, audio products shouldn’t just be defined by an address

on a band, he believes. “Revitalization must come in even more ways than giving an AM daytimer a spot on the FM band.

Globally, it’s also about product evolution for today’s consumer.”

Is AM revitalization not so urgent in some markets compared to others?

Langmyer was asked this question with the knowledge that he began his career in Buffalo, where WECK-AM is being reborn as a Full Service radio station with heritage air personalities, CBS News Radio … and an FM translator.

“Great AM stations remain so because of great content,” Langmyer says. “There are still great AM markets for a number of reasons, including heritage, history, topography, commute times, ‘generational passage’ within families, and market connection. In the end, it’s about exceptional content.”

A GREATER CHANCE FOR LURING WOMEN The power of News/Talk to attract millennials with an FM signal is certainly obvious. But a station heavy on spoken word programming also has an opportunity to increase its female listener base.

That’s what has happened at iHeartMedia News/Talk WGY-AM & FM in the AlbanySchenectady-Troy market. Under PD/News Director Jeff Wolf, WGY-AM & FM topped the market 12+ in the Spring 2017 ratings with a 6.9 share.

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Going beyond Trump talk and political punditry was key in achieving that monster performance in the most recent Nielsen Audio survey.

“For me, politics are important — it will always be a part of what we do,” Wolf says. “But there is more to life, and more to talk about, than just politics. With our local shows, we discuss things that are happening in people’s lives, and that is important to attract a newer and fresher audience. Being just political gets mundane after a while.”

Much of the bump has come from a rise in women tuning to WGY, in particular during morning drive, when Chuck & Kelly airs. The duo have been together since 2011 in a time slot made famous by the late Don Weeks.

“It’s cool to be part of such a rich heriJeff Wolf tage,” Wolf says of WGY’s ability to blend its past with the present. “We have pics Hudson. And that’s perfectly fine, as far as of Amelia Earhart with a WGY microphone. iHeart’s local management is concerned.

That doesn’t hurt, but it also helps to be “We were just feeling, as some other staforward-thinking.” tions in the country were feeling, that we WGY’s FM signal is not a translator; just weren’t being exposed on the AM dial,” rather, it is a station previously known Wolf says. “Younger demos and women just as WHRL-FM 103.1. After many years as weren’t considering the AM band. We still an NAC/Smooth Jazz station, a change to have a lot of people that listen to AM, but Alternative was made in October 2009. there are others that don’t necessarily have That proved moderately successful at best, the chance to find us.” and in fall 2010 a decision was made to If the decision to add an FM simulcast simulcast WGY. hadn’t been made, where would WGY be The coverage difference is striking: today?

WGY-AM 810 is a 50kw Class A blowtorch “We wouldn’t be No. 1, and we would not that can be heard as far south as West have that broader audience,” Wolf says.

Point; east to Springfield, Mass.; north to “WGY was definitely one of the pioneers in Lake Placid; and west to Watkins Glen and that FM movement, but I know that others the central Finger Lakes. were doing it.”

Class A WGY-FM hugs the Capital District Perhaps more importantly to Rich and can be heard in Saratoga Springs and Bressler and the top executives at iHeart,

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WGY on FM has attracted some new advertisers, as some agencies may have been concerned that with only an AM signal, WGY wouldn’t be reaching all constituencies.

Is the AM signal still necessary?

“In our case, it is,” Wolf asserts. “We still have a lot of people that listen to AM 810, and the heritage factor alone … it’s still relevant for a lot of people. The move was not about AM dying one day. It was about broadening the audience.”

Another iHeart/Capital District AM is Sports WOFX-AM 980, a 5kw Class B with a directional nighttime signal from three towers. It’s the former WTRY, a Top 40 station serving upstate New York from the early 1960s through the late 1970s. “If there was an opportunity to be on a translator, we would certainly consider it,” Wolf says of WOFX, branded as FOX Sports 980.

“But Sports Radio is definitely something that is excelling on AM.”

BOOMER VIAGRA? Scripps’ Langmyer has been associated with some legendary call letters, such as KMOX in St. Louis and WGN in Chicago. He’s also worked with many other major-market AM stations, a number of which will soon be owned by Entercom. Will these stations eventually need “revitalization”?

“These AM stations are excellent,” Langmyer says. “Yet these companies and others with news, sports, and talk-based formats have seen greater success when an FM signal is added.”

That said, there is a responsibility for radio broadcasting companies that comes with adding an FM signal for an AM station: Don’t cannibalize the AM. “We have to be very careful to make sure that big and historically successful AM stations aren’t victimized by their own success,” Langmyer says. “They’ve achieved their earned leadership positions through stellar service to their communities.

However, the ‘revitalization’ process puts them at the back of the line, sometimes in favor of stations that are ‘just a signal,’ having provided little service for many years.”

With WGY set to celebrate 100 years of broadcasting in 2022, a committee has already been put together to determine how iHeart will commemorate the achievement. On-air tributes on AM and FM will likely be integral to the salute to AM 810, as “revitalization” of a century-old toprated station gets its Maraschino cherry.

“Revitalization is about keeping our brands vital and having universal access to our audiences in order to best serve them,” Langmyer concludes. “For AMs, a big part of that access means the addition of FM presence.”

WHAT WASHINGTON HAS IN STORE FOR RADIO It’s been quite a year, thus far, in the nation’s capital. Sure, the daily antics at 1600 Pennsylvania Ave. NW have captured the world’s attention. But at the Portals, just a stone’s throw away from Dupont Plaza, the Federal Communications Commission has been focused on a variety of deregulatory activities that most broadcast media companies seem pleased with. On Capitol Hill, members of Congress on both sides of the aisle have expressed their disapproval of the introduction of any new royalty fees for radio. What does this mean for D.C. attorneys focused on communications law, or for the brokerage community? RBR+TVBR reached out to three well-respected individuals for their prognostications, with one focusing his discussion on a big topic for radio getting scant press: the fiscal impact of the “repack” of TV stations following the FCC’s spectrum auction.

THE ONE-WORD FORECAST: ‘OPTIMISM’ In mid-July, Lawrence M. Miller, along with longtime partner Steven Schaffer, dissolved the law firm of Schwartz, Woods & Miller and joined one of D.C.’s biggest communications law practices, Garvey Schubert Barer. Known as “Larry” across the radio industry and inside the Beltway, Miller is considered “among the finest counselors in the radio and television industry” by lead GSB attorney John Crigler.

With 50 years of experience, Miller has seen a lot as a D.C.-based communications attorney. What’s his biggest takeaway for radio broadcasters now that FCC Chairman Ajit Pai has settled into the top leadership role at the agency?

“It’s optimism,” he says. “And it’s not

Bob Heymann

Tom Davidson

just in terms of multiple ownership, but also for proposed changes that would offer new life to the radio industry.”

For example, by the time you read this, the main studio rule could be relaxed or repealed, or very much on its way to having that occur. “That could be a tremendous kickstarter for some stations, and some groups.”

Another big factor for radio is a pending development that will largely impact stations outside the largest of markets. “The public file going online in March 2018 is very significant,” Miller says.

Meanwhile, there are new policies that are “slow to take off” but that Miller, and others, are high on. Foreign ownership is perhaps atop Miller’s list.

Then there is the end of the ban on newspaper- and radio-TV cross-ownership, which, unbeknownst to Democratic House members, was written into legislation for the reauthorization of the FCC by Republican leaders on the House Energy & Commerce Committee.

Miller hopes the 42-year-old rule finally disappears. “If it did make sense for radio, it didn’t after Docket 80-90,” he says of

Lawrence M. Miller

the introduction of legislation that reduced minimum mileage separation for FM stations, opening the door to an increase in local stations. “Then, with new competitive media — satellite and digital — it further made little sense.”

In fact, Miller believes the end of the cross-ownership ban could save some small stations that otherwise would not survive.

Meanwhile, don’t look for one company to own 10 stations in a given market. “The subcaps don’t look like they will be changing anytime soon, but they might be up for discussion,” Miller predicts.

What could be up for review are the FCC’s rules pertaining to embedded markets.

The subject has been Hot Topic No. 1 for Connoisseur Media chief Jeff Warshaw, who desperately wants changes to the embedded market rule that affects New York and Washington, D.C. The NAB is behind him, and Miller is right there in the fight, as he’s represented Pamal Broadcasting owner Jim Morrell in his participation in proceedings supporting Connoisseur.

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“There’s this presumption that makes no sense at all that stations in embedded markets may be competitive with stations outside the core,” Miller says. Markets at issue include Nassau-Suffolk, N.Y., and Middlesex-Somerset-Union, N.J., each embedded in the New York DMA.

FEELIN’ ALRIGHT … TO AN EXTENT “There is a feeling that something good is going to be happening,” Miller continues.

“Suddenly, there seems to be an effort to actually look at the facts on the ground — the business makeup of radio — to make certain what regulations are required, and which need reexamination. All of it heads toward a more robust trading market for a while, as the rules change.”

Miller won’t go so far as to say there’s a buzz of excitement about the radio industry in his circles. But, he feels, “in terms of more rational regulation, broadcasting is back. This is an industry that stayed vital for almost a century and still has a future.”

Chicago-based broker Bob Heymann of Media Services Group couldn’t agree more. Yet he’s watching several things on his radar as potentially having the greatest impact on our industry.

The future of iHeartMedia is one of the biggest things he’s watching from his perch.

“Whether or not they will dig themselves out with their debtholders” could impact all brokers, and the climate regarding transactions in the months ahead.

Likewise, the future of Cumulus is one of the biggest things on Heymann’s radar.

“For obvious reasons, the amount of debt relative to their earnings shows that Cumulus has more debt per earnings than iHeart,” he notes. “With those two things, you’re dealing with the two bell cows of our industry. As they go, the public’s perception — and the investor’s perception of our industry — will be determined.”

Another big thing on Heymann’s radar involves the expected Q4 closing and integration of the CBS Radio stations into Entercom.

“What Entercom is looking at is two things,” he explains. “One, they are looking to operate these stations in a manner completely different than the way CBS manages these stations. First, they are looking at the assets they are acquiring. Then, they are looking at the amount of revenue these CBS stations are going to give them.”

Heymann continues, “The way you need to look at this is how [President/CEO] David [Field] and [COO] Weezie [Kramer] operate their stations now, leaner and more efficiently. And [radio] won’t be an afterthought for CBS — it will be in a pure-play operation. It is probably one of the guiding things to make David make this deal.”

Then there’s the chatter out in Rumorville that’s attracting the attention of Heymann and other brokers. It involves the future of Townsquare Media — after Entercom hinted on its Q2 2017 call with investors that it’s not at all interested in Townsquare.

“To me, it is a series of question marks at this point,” Heymann says of the owner of small- and medium-market radio stations that in the last year received a big investment from Madison Square Garden Entertainment for the express purpose of growing its live events division. “What are they going to do? Their backers would obviously like to make a change in some fashion, and we will see what happens.

When you have a company with a major number of stations, it will have a major impact on our industry.”

What the FCC will do with its subcap rules is also of keen interest to Heymann, and at least one interested dealmaker.

“I have a client who is holding up doing a deal that I’m doing because he is unsure whether or not the FCC will loosen the subcap rules,” he says, lamenting that the uncertainty of the rules “is hurting the deal.”

The elimination of the main studio rule is also a big plus for brokers. Heymann says, “I have clients specifically looking at that being accomplished and finalized.

Leasing space in a separate location and staffing it — as soon as that rule goes away, it will be an immediate cost savings for stations. Personnel costs will go away immediately, and that will improve that cluster’s cash flow.”

PAST EXPERIENCE, FUTURE THOUGHT Miller notes that, among his clients, there is eager anticipation of the main studio rule change. “There’s a different feeling in the air, but there are no concrete results as of yet,” he warns.

Then there are the bigger questions Heymann has on his plate: What will happen to iHeart and/or Cumulus?

“Are the debt loads going to reverse consolidation? Are they going to spin off stations? There’s no big thought that they will be totally imploding,” Miller says. “My thought is that there will be some restructuring, and that may lead to opportunities for smaller companies to get back into ownership.”

As Heymann sees it, the future of the entire industry rests on what happens with Cumulus and iHeart. “Not only do they own big-market stations, but they own stations in a lot of smaller markets,” he says. “Their future will drive the future of the industry.

Secondary to that is regulatory relief.”

What else is on Heymann’s radar — or wish list — for upcoming radio industry developments?

“I would love to see [Emmis Communications founder and CEO] Jeff Smulyan get five minutes with [Apple CEO] Tim Cook and get the FM chip turned on in iPhones,” he says. “If that were to happen, with the technology already there, and all it takes is a software update, it would have a tremendous and positive impact on the radio industry.”

There’s just one glaring problem with that scenario.

“It’s business,” Heymann says. “With iTunes crumbling, could free music on FM

be another challenge to earnings? With the iOS app, it does give NextRadio some leverage with Apple.”

At the same time, what has changed for communications attorneys such as Miller over the years with respect to working with radio clients and with regulatory policy?

“Plenty, and yet in many ways not much,” he says. “While we still have some wonderful mom-and-pop-style clients, economy of scale is increasingly a necessity rather than an option. Industry consolidation has dictated that most all of my clients are multiple-station, multiple-cluster owners.”

For Miller, the station marketplace is a “moving target.” But, he says, “The longterm trend has obviously been to lower multiples and tighter credit, resulting in fewer small and medium-size transactions and some monster transactions.”

What hasn’t changed is that radio is still a local business requiring owners and managers to be plugged into their communities, regardless of FCC requirements, he says. Plus, these owners need to be quick to adapt to changing public tastes in a rapidly evolving media environment. “It’s still the case that a large percentage of radio managers — and obviously all of those with whom I work — are bright, imaginative, and entertaining,” Miller says.

On the regulatory side, FCC procedures are more uniform and evenly enforced than they were 40 years ago. “This is usually, but not always, good for our clients,” Miller says. “E-filing, electronic research, and email have drastically changed FCC practice. Thanks to technology, a communications lawyer’s life is much faster-paced and generally more efficient. It’s still an enjoyable practice with a high-quality bar.”

THE REPACK IMPACT ON FM STATIONS Curiously, one of the biggest potential threats to FM radio station owners in the next two to three years has received scant coverage in the trade press, or in newspapers across the nation. Listeners may be in the dark, too, and keeping FM stations from going dark for any prolonged time between now and 2020 should be on the radar of all C-suite executives.

Why? It has everything to do with TV, and the FCC, and something you may have read about called the “spectrum repack.”

In short, TV stations are changing channels as part of the relinquishing of broadcast spectrum to wireless telecommunications companies, so they can expand their data networks. Thus, there is a “repack” of stations that is about to begin.

It could give FMs headaches.

“The TV repacking could very well create potential disruptions to the operation of FM stations,” warns Tom Davidson, a partner at Akin Gump Strauss Hauer & Feld. “I’m not sure the radio station owners understand what this means for them.”

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repack process since the start of “Auction 1000,” which saw companies including Entravision Communications and Univision Communications collect hundreds of thousands of dollars for giving up TV spectrum.

On the flip side, companies such as T-Mobile are ready to seize on the additional spectrum and build out better data networks.

Mitigating disruption is something that has already seen the NAB’s involvement, as it asked the Media Bureau to take action.

Meanwhile, reimbursement funds of $1.75 billion — as authorized by Congress — are already well short of the first repayment estimates supplied by TV stations impacted by the repack, with a total of some $2.2 billion requested by TV stations alone. FMs have been shut out of any reimbursement costs for the potential impact the repack could have.

From the perspective of the Washington, D.C. communications attorney, the question of the potential availability of funds for FM station relief is paramount.

“Legal and policy community efforts are trying to accelerate the reimbursement funds, and part of this effort are funds that would assist FM stations that would have to spend money on finding alternative temporary backup facilities to accommodate the TV repack,” Davidson says.

Just what are the issues an FM station could be faced with, very soon?

A station may be required to permanently move if a TV station must relocate to a different point on the tower, potentially displacing an FM antenna. A similar situation would be seen should a heavier antenna be needed for a TV station’s transition.

An FM station could be forced to reduce power to accommodate tower work or, depending on the time frame, move to auxiliary facilities.

“This could have a significant impact on a station’s advertising and revenue efforts,” Davidson warns. As opposed to

TV, which has MVPDs and OTT, radio has limited alternative resources for reaching audiences. “Internet streaming is not available in most cars,” he says.

The sheer number of potentially impacted radio stations from the TV repack is in the hundreds. Davidson notes, “Some 668 FM stations may need to reduce power, shut down, or relocate. Some 254 have an auxiliary facility. The remaining stations would be required to look for alternative options … or go off the air.”

To make matters even more disconcerting, FM stations in the nation’s biggest markets could be facing a bigger threat to continued operations during the repack process than stations in smaller markets.

Why? Davidson explains, “A single FM station could be impacted by up to eight TV stations, and one FM station could be impacted by several phases of the repack process.”

For example, the Willis Tower in Chicago and Sutro Tower in San Francisco are each large master antenna facilities with multiple TV stations operating with radio stations on the same tower.

“Very complicated changes” would be needed to make sure there is no disruption to FM radio station broadcasts, Davidson says.

“Up to now this is not something that has been focused on by regulators.”

In many cases, the disruption may just involve a reduction of power, or going silent in non-peak hours when there is work being done on the master antenna by technicians who are climbing the tower.

But there’s no guarantee that will be seen universally.

Furthermore, Heymann warns that all of the technicians that radio stations rely on may be involved with TV station transitions. “This means radio will have an issue with engineering needs, and that could impact radio stations,” he says.

There is some good news for FMs in the nation’s biggest population centers. Many

have auxiliary facilities at the ready, and for those that don’t, Davidson says, “It is not that difficult to get an FCC authorization for an auxiliary facility, provided the coverage pattern is within that of the existing operation, so it does not create interference for co-adjacent operations.”

Any difficulty in this process would be discovering if there is an available location, and what the cost is. And that brings the conversation with Davidson back to money.

And he says, “Disruption to FM stations from the spectrum repack is not reimbursable under the current rules of law.”

This is already on the Congressional radar, thanks to Democrats such as Rep. Frank Pallone of New Jersey, who was the first to seek additional funds for TV station owners while creating a reimbursement purse for radio companies.

“We are cautiously optimistic that once Congress is aware of the problem and the FCC is more focused on it, there will be an effort to try to allocate some funds to provide and help defray the cost,” Davidson says. “In the absence of that, there really is no recourse [but] to use your own funds. If you don’t have sufficient funds, there’s not much you can do to grin and bear the impact and work with the TV broadcasters to minimize that impact.”

But radio may have a friend in television.

“One thing is clear: TV broadcasters are trying to implement a step-by-step plan in a way that would minimize disruption to their viewers,” Davidson says. Thus, he believes, “they will be receptive to working with FM stations to reduce the adverse effect it will have on them.”

For now, it is up to D.C. leadership to give radio a reimbursement boost.

“The TV repack doesn’t just impact TV — it impacts FM.”

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Radio’s Millennial Moment Misunderstood and made fun of, those pesky millennials have emerged as the center of attention for many a marketer.

Why not? After all, many CMOs are millennials. As a result, radio may be as relevant as an Atari 2600 — something really cool when The Empire Strikes Back was playing at the Sunset Drive-In. Or it could be an unsuspected career preference for talented, entertainment-focused young professionals who have found the magic their parents and grandparents once fancied.

Becoming a magnet for millennials is radio’s quiet conundrum. Many a market manager will tell you that their radio stations have attracted, and continue to attract, millennials. But in most cases this involves consumers — the people who tune in to listen to a morning show, or a few hit tunes, and then move on with their day.

What about attracting millennial talent for jobs on the air, and in the business office?

There has perhaps been no one more prolific in their experiences as a millennial in the radio industry than Georgia Beasley. Recently named Director of TopicPulse Strategic Initiatives at Futuri Media, this representative of radio’s Beasley family is charged with leading “strategic initiatives to bring its data-driven story discovery capabilities to media industry partners.” Previously, she was Director of Digital Sales at Beasley Media Group.

It makes sense — as the youngest member of the Beasley clan, taking charge of growing sales in broadcast, digital, and NTR and explaining radio to peers and others in her age group is necessary.

Hopefully, it can spark others to follow her lead — companies and millennials alike.

“Georgia is an innovator with a passion for technology, which makes her a perfect fit for the Futuri Media team,” said Futuri Media CEO Daniel Anstandig. “She has a proven track record of delivering creative solutions and results for her client partners, using technology to solve problems.”

Beasley has also been a regular contributor to Streamline Publishing co-owned publication Radio Ink. With columns headlined “My Life as a Millennial,” she’s offered suggestions as to how radio station GMs can best relate to millennials on issues like dress codes, and whether it’s true that millennials have too many “squirrel!” moments and easily lose focus.

“I can’t deny having my fair share of ‘squirrel!’ moments,” Beasley penned in a June essay. “But as I begin to explore this concept more deeply, I have to admit that I’ve already tweeted, posted a video to

Kaelin Roberts

my Snapchat with the cutest new sunglass filter, refreshed my work email, refreshed my personal email, texted my mom, and loved 12 pictures on Instagram. So wait, what was I saying? Oh, right, our slight issue with focus.”

Beasley then went on to how millennials can help encourage “short-form communication” to help bridge the gap between Gen Xers and baby boomers and their millennial brethren. Translation: Maybe 30-second and 60-second commercials are outdated and need to be tossed.

Other millennials recently profiled in Radio Ink include WPLW & WWPL/Raleigh Program Director Jud Heussler, age 27; Max Media/Norfolk Director of Digital Strategy Erin Nutter, age 27; and Neuhoff Media LSM Andrew Harby, age 27.

Millennials have also landed in key onair roles. In New York’s Hudson Valley, Melissa Unger, using the air name “Emerson” (she has a Master’s Degree in Broadcast Journalism from Emerson College in Boston), shares morning co-host duties with market veteran Mark Bolger at Townsquare Media’s Hot AC WCZX “Mix 97.7” in Poughkeepsie.

She jumped to radio from television three years ago, joining Pamal’s CHR/Pop WSPK-FM “K104.7” in Peekskill, just down the road from Poughkeepsie. Her resume includes stints at AOL, E! Online, Time Out New York, and as a social media reporter covering the annual RTDNA national conference at NAB2010 in Las Vegas.

These are just a handful of the millennials who can be found at radio stations

Georgia Beasley

across the U.S. in positions that don’t involve remotes and handouts of swag of questionable consumer value.

It’s a good reminder that not all millennials should be put in the same basket. In December 2016 RBR+TVBR engaged in a lively conversation with Paragon Media CEO Mike Henry, who openly questioned whether the radio industry “still doesn’t care” about millennials.

His argument: “The millennial doesn’t want radio to be a repetition medium.

They are looking for radio to be a filter, to find them the new music they like.” This will require experimentation, Henry says, and “people trying things.”

Several ideas were shared by Henry, including live demos of the NextRadio app at the five hippest coffee shops in your market. Are there only one or two? Fine.

Team up with a wine bar, or the place where your spin classes are full on a Sunday.

A LOVE THAT CAN’T BE MATCHED One rising star among radio’s many millennials who agreed to chat with RBR+TVBR (digitally, of course) is Kaelin Roberts, who in mid-July became Executive Producer of the Fred+Angi Morning Show on iHeartMedia’s CHR/Pop WKSC-FM “103.5 Kiss FM” in Chicago. She joined Kiss after two years as an Associate Producer of WKQI-FM in Detroit’s Mojo in the Morning, also for iHeart.

What led Roberts to a career in radio?

“Since I was little, I always loved entertaining people,” she says. “My poor mom sat through hours of one-woman shows,

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and I would force family and friends into rehearsing skits and organized dances instead of playing outside. Apparently, I was bossy, too! My aunt recently told me I talked more than any 4-year-old she’s ever met. After earning a degree in Electronic News and a certificate from Illinois Media School, my path led me to Mojo in the Morning, where I absolutely fell in love with every aspect of radio.”

Being the executive producer for a morning show on an arguably huge radio station in one of the nation’s biggest markets is, no doubt, exciting. But it could also be challenging. What does this say about the opportunities, and on-the-feet learning, available to a twenty-something in radio?

“I don’t know what it says about me, other than the classic, ‘If you work hard, good things will come,’” Roberts says. “But you’d better be prepared for the time it will take.

Radio is alive and well, with tons of room for twenty-somethings to chase their dreams.

The key, really, is that, despite almost everyone around looking at me sideways when they found how much money I made or my hours, I just always knew things would work out for me. I’m the only person who ever needed to believe that, and I was the only one who did all the way through.”

Even with access to fine dining on the Magnificent Mile, the lifestyle of a morning show executive producer is more likely to be enjoying ramen noodles from the local Jewel/OSCO while paying off student loans. “Radio people are, in fact, not rich,” Roberts says with a laugh. “Hopefully I can be somewhere in the middle, but this city is expensive as hell! What’s up, Jewel?

Love you, boo.”

Seriously, radio can be challenging. What are Roberts’ thoughts about careers in radio, and her own future in the industry?

“It’s soul-crushing, to put it lightly,” she says. “The hours alone will kill you, and I’m a night owl. Every job has good parts and bad parts, but if you love something, you will make it work. My thoughts are typically, ‘Damn — who am I and how did I do this?’ In terms of my future, as long as I continue to grow and trend upward, how can I complain?”

TEMPTATIONS EXIST, BUT RADIO’S TOPS Now that Roberts is in Chicago, does TV beckon? Is this all an elaborate scheme to eventually leave the “unglamorous” radio industry and get a TV show on WGN-9 or another local station, or perhaps something bigger and sexier?

“I would love to break into TV in addition to radio, but I’m not going anywhere,” Roberts readily admits. “I love my job, and I can wear pajamas to work!”

That said, RBR+TVBR asked Roberts if she has any friends or peers outside the radio industry who regularly consume radio. We also asked her why radio gets such a lousy level of respect from twentysomethings.

“I think millennials pride themselves on

The Fred + Angi morning show at WKSC-FM “103.5 Kiss FM” in Chicago gathers for a photo shoot.

being the first person to discover a new song or artist,” Roberts says. “A lot of times big radio stations aren’t breaking new music because they don’t need to.

They’re playing the hits people are loving at that moment. But even if you’re not into the music, a good morning show is also about the dialogue and usually has a little something for everyone.”

RBR+TVBR, through the exhaustive research and investigative process used for every INFOCUS report, looked at Roberts’ LinkedIn profile. She was a preteen model some 14 years ago.

“I need to update my LinkedIn!” Roberts said, almost embarrassed over this very public fact. “When I was younger I was trying to be an actress, and the modeling had to go along with it. I’ve never seen myself in that light. I am 1000% more comfortable in leggings in the studio, but I pretty much dress casually all the time. Thank

goodness for the ‘athleisure’ trend.”

While Roberts can take pride in her lowglamour work attire, what happens when social media and video intersect with her behind-the-mic activities?

“If I’m being honest, social media doesn’t necessarily come natural to me, contrary to what some of my friends may believe,” she says. “If I had the choice, I wouldn’t have any of those platforms or even a cell phone, but here we are. That said, there are so many positives that come with social media. Someone can become famous in a week with one YouTube video.

“Radio provides a quick and direct line to your listeners, which is key in providing the type of program they want to listen to. It also allows listeners to feel more loyal and connected with their favorite radio personalities. They know your favorite spots, what your kids look like, and your favorite angle to take a selfie. Direct messaging lets you chat with them as well. I’ll never forget the support I got while I was filling in for one of the co-hosts on Mojo in the Morning and found out I got the new job at Fred + Angi.

So many beautiful listeners reached out to tell me they were proud of me and would stick with me through my career. Many even shared that they cried right along with me on my last day.”

If she weren’t in radio, what would Roberts be doing? Another peek at her LinkedIn profile revealed her involvement with a haute couture consignment store of some sort.

“Again ... I really need to change my LinkedIn profile,” she says. “If I wasn’t in radio I think I would still be involved with the entertainment industry in some way. TV, fashion, music — I always envied my friends who always knew they wanted to be a doctor of some sort, or a lawyer, because they always knew what their next step was and exactly what they needed to do to get there. Not in my blood!”

As we concluded, RBR+TVBR asked Roberts one final question: Really, why the heck are you getting up at dark o’clock to go work at a radio station? Convince us it’s not part of a community service sentence from Cook County Corrections.

“It sounds cheesy as hell, but I love my job!” Roberts says. “Like I said, I’m not a morning person, but the night before my first day of working at Mojo in the Morning, I didn’t even sleep for one second. I got out of bed wondering if you could die from not getting any sleep because it was new to me, but the second I walked in, I forgot about all that and knew I was in the right place.

There is not a job in the world that doesn’t have hard parts, but if the hours are the only issue with me, I consider myself lucky.”

Just another day at the office for an aspiring millennial, convinced that the radio business has put her on the perfect path for career success.

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