PG 1

800.275.2840

THE MOST TRUSTED NEWS IN RADIO

MORE NEWS»

insideradio.com

NEWS@INSIDERADIO.COM | 800.275.2840

FRIDAY, MAY 29, 2015

Alarm sounded for stations to step-up cyberattack preparations. Rear Admiral (ret.) David Simpson, chief of the FCC Public Safety and Homeland Security Bureau, is issuing a clarion call for broadcasters to step up their preparations against cyberattacks. “It’s not if you are going to be attacked, it’s when you are going to be attacked,” he said. “It’s not if the adversary gets in, they’re going to get in, so you need to plan ahead of time.” He told an audience recently that the agency’s still hoping to use a “collaborative approach” rather than putting mandates on radio and TV, believing voluntary steps will allow the industry to prep more quickly than if there are new regulations. But it’s an option the FCC isn’t willing to take off the table either. “It’s critical for all businesses but especially you who are critical to public safety,” he said. As more stations rely on cloud-based systems, the FCC is worried that it will make them more vulnerable to attack. Simpson said that locked doors and fences were once the only security broadcasters needed to worry about, and now firewalls and new passwords are merely maintenance – not a long term risk management approach. The takedown of a French TV network by ISIS earlier this year and the Sony attack are high-profile evidence media companies are on hit lists. With legions of hackers at work 24 hours a day, CBS SVP of East Coast operations Robert Ross agrees broadcasters will have to play defense. “There are thousands of guys who want to get us and they work 24/7 – so they’re ahead of us and they always will be,” he says.

Some operators are already solidifying cyber defenses. Knowing what “normal” looks like is just as important as having the systems to identify, protect and respond to a cyberattack, according to experts. After seeing hackers set off fake EAS alerts and silence a few stations, some operators are already taking steps to protect themselves from hackers. One of the first steps is not comingling station systems. That way a studio’s music library could be wiped out, but billing won’t be affected. CBS SVP of East Coast operations Robert Ross points out that most radio stations probably think they have nothing hackers would want to get their hands on, but that’s not the case. “If you are a local radio station and run contests, you collect Social Security numbers from winners and the next thing you know, you have a database that can get you in trouble.” Among his suggestions is keeping a laptop that doesn’t go online stocked with programming which could be tapped in case a hacker shuts down normal systems. Ross says simple solutions like having a cheap ham radio antenna that could be put on a station’s roof to get an FM back on the air is also an easy step to take. “People think of it as an IT issue – you have to make it just as important as a backup transmitter,” he said. Cox Media Group Tampa-Orlando director of technical operations Roz Clark said it’s also important for stations not to think it’s just an issue for corporate. “At the local level we own the outcome, so we take it to the next level because as broadcasters we’re very comfortable with always staying on the air,” he said. Read the FCC’s report on cybersecurity best practices HERE.

BMI wins – Pandora must pay 2.5% royalty fee. A ruling by New York Judge Louis Stanton awards BMI a fee of 2.5% of revenue from music streaming service Pandora, which licenses content from BMI as well as other performing rights organizations and music publishers. BMI’s new fee represents a 43% increase from the 1.75% of revenue that Pandora previously paid. Pandora had sought to pay between 1.70% and 1.85% of revenue. The closely watched trial was the latest confrontation in an ongoing battle over royalty payments between Pandora and the songwriters and composers who create the music at the foundation of Pandora’s product. Milbank, Tweed, Hadley & McCloy, led by firm Chairman Scott A. Edelman represented BMI. Edelman says the decision

insideradio.com

PG 2 NEWS@INSIDERADIO.COM | 800.275.2840

FRIDAY, MAY 29, 2015NEWS

confirms recognition that the rates paid by Pandora were too low, but an appeal is expected. “We’re very satisfied with Judge Stanton’s ruling, which we believe brings royalty and licensing rates for musical content into the digital age. Digital streaming has proved itself as a means to greater exposure for artists, but has been less successful at generating a revenue stream. That was the heart of this case.” He continued: “We went into trial knowing that Judge Cote had already ruled in favor of Pandora in a related case against ASCAP, and rejected some of the key market deals negotiated between Pandora and certain major publishers that BMI was relying on. We were able to show that the arguments that Judge Cote relied on for rejecting the benchmarks were primarily generated by lawyers, divorced from Pandora’s actual business decisions. With the benefit of additional evidence not available in the earlier case, Judge Stanton reached the conclusion that the direct publisher deals were the best indicators of value and that Pandora paid higher rates because the music was critical to its business.” As for Pandora’s attempt to be recognized as a radio station owner (based on ownership of a single station in South Dakota), and thus qualifying for a lower royalty rate, Edelman commented, “We don’t think they should be able to back-door into a lower rate with that kind of a legal maneuver.” The judge’s decision requires a 2.5% royalty rate on revenue minus an advertising agency commission deduction of up to 15% of third-party costs through 2016.

Pandora paying less per person in royalties than terrestrial radio. It may not be new, but a copy of the judge’s ruling in the BMI case confirms that, when using audience numbers, radio stations pay BMI in fees per listener performance approximately twice what Pandora does. And Spotify pays BMI in fees per listener performance approximately eight times as much as Pandora. One other note of interest in the order: While Pandora considers terrestrial radio to be its principal competitor, it has struggled to monetize its product as effectively as terrestrial broadcasters do. At present, Pandora is able to sell only 60% of its advertising inventory.

GM’s new dashboard toys. Adoption will take time. General Motors announced Wednesday it will offer Google’s Android Auto and Apple’s CarPlay in more than a dozen 2016 model Chevy’s. While the competition for listening in the car is heating up. But FM/AM still dominates. Inside Radio reported in April that AM/FM radio remains the primary entertainment option in the car, where roughly half of all radio listening takes place. Connected sources like internet radio are secondary. So says data from Strategy Analytics, presented at the NAB Show last month. Eight in ten (79%) survey respondents called broadcast radio a “must have” in their car, far and away the top entertainment product of eight measured. Adoption of a new product takes time. Strategy Analytics Associate Director of Global Automotive, Roger Lanctot says, “Exciting though it may all be, dealers should anticipate a wave of consumer confusion and questions regarding smartphone compatibility.” The distraction of a new dashboard option will go away, but when…”only time will tell”, says Lanctot. “Apple and Google have not been clear on if they are going to commit any resources to train car dealers or salespeople, or provide any materials that may help consumers with the learning curve,” added Lanctot. Last month’s study did point out that while radio still rules the road, 58% of U.S. smartphone owners report using apps while driving, and there is a growing desire for connected cars that make it easier to use them on the road. That’s exactly what the new products from Android and Apply will do.

Sirius XM to face class action in copyright suit. Reuters reports that a U.S. judge in California allowed a class action lawsuit to proceed on Sirius XM over the payment of royalties for songs produced before 1972. It’s a case that is being closely watched for its implications for digital media. The ruling by U.S. District Judge Philip Gutierrez marks another win for members of the 1960s band the Turtles, known for the hit “Happy Together,” and means the company could face claims from a broader group of artists. “Sirius XM treats every single owner of a pre-1972 song the same, namely it doesn’t pay them, so it was appropriate for this court to grant class certification,” said Henry Gradstein, attorney for Flo & Eddie Inc, a company controlled by founding Turtles members Howard Kaylan and Mark Volman. Gutierrez ruled last September that, under California state law, New York-based Sirius XM was liable for copyright infringement by airing the band’s pre-1972 songs without paying royalties. Flo & Eddie also sought to certify a class action against the company to bring in other artists in a similar situation. Sirius XM

insideradio.com

PG 3 NEWS@INSIDERADIO.COM | 800.275.2840

FRIDAY, MAY 29, 2015NEWS

argued against certification because it said damages would be difficult to calculate accurately for different members of the class. Gutierrez rejected that argument this week, saying “a class action is superior to individual litigation to the fair and efficient adjudication of the present controversy.”

FCC proposal could raise costs of market research. Look for a potential Law of Unintended Consequences in a post at katyonthehill.com. Katy Bachman reports that a new FCC proposal to cut down on robocalls could increase the cost of audience measurement for radio and TV stations. FCC Chairman Tom Wheeler has circulated a proposal to the other FCC Commissioners, which will be voted on at the FCC’s Open Meeting on June 18. If adopted, his proposal “will close loopholes and strengthen consumer protections already on the books.” He touts his own proposal as “one of the most significant FCC consumer protection actions since it established the Do-Not-Call Registry with the FTC in 2003.” But market research, the intelligence that companies use to place advertising campaigns and media companies use as currency to sell to them, is likely to get more expensive if there is a crackdown on robocalls to mobile phones. The ruling would put in place a broader definition of autodialing, prohibiting variations on technologies and methods that market researchers have used in an effort to comply with provisions in the Telephone Consumer Protection Act (TCPA). “The FCC chairman’s proposed TCPA changes could be potentially devastating to the survey, opinion and marketing research profession,” said Howard Fienberg, director of government affairs of the Market Research Association (MRA.) “They are playing fast and loose with their terms, using unwanted calls, telemarketing calls, and robocalls interchangeably, and conflating illegal telemarketing scams with legitimate calls,” he said.

KASE and BONES raising money for Texas flood victims. KASE 101 in Austin TX, scene of major flooding this week is staging “The Raging Idiots Flood Relief Concert.” It’s a fundraising event featuring nationally syndicated iHeartMedia Country radio talent Bobby Bones and his Raging Idiots band to help raise money for the Central Texas Chapter of the Red Cross. The benefit concert will take place at The Parish on June 3, and proceeds from the event will help the victims of the recent Central Texas flooding. “Bobby’s heart has always been in Austin, where The Bobby Bones Show got its start. He wants to do anything and everything possible to help his friends and family here in the area rebuild their lives,” said JT Bosch, Program Director for KASE 101. Fans can also bid on auction items up such as autographed guitars from George Strait, Luke Bryan, Eli Young Band and Blake Shelton. KASE101.com.

Rite Aid prescribes radio for new campaign. Radio is in the marketing mix for Rite Aid as the pharmacy chain integrates its wellness+ rewards program with Plenti, the American Express-owned coalition loyalty program that includes such well-known brands as AT&T, ExxonMobil, Macy’s and Nationwide in addition to American Express. The campaign, which launches later this month, also encompasses national television, circular and digital advertising. Its goal is to transition Rite Aid’s nearly 25 million active loyalty program members into wellness+ with Plenti at one of the pharmacy chain’s 4,600 stores or online. Once enrolled, members will earn Plenti points on featured items they buy at participating Plenti partners, which can be used for savings at Rite Aid and certain Plenti partners. Rite Aid president & COO Ken Martindale sees it as “the next great differentiator for our business and consumers, given the premiere brands participating in the program and the multiple ways for customers to earn and save.”

Winnebago hits road with radio. Recreation vehicle manufacturer Winnebago Industries will be hitting the radio airwaves to promote its Midwest-focused summertime “No Coast Vacation Road Trip” promotion. It will also tie in Casey’s General Stores, whose 1,850 convenience stores in 14 states will offer clues to a contest that will give away a Winnebago road trip. “The joint promotion with our companies not only gives us each a chance to showcase our goods and services, but through our radio and television ads it also draws attention to all the fun and exciting places that can be enjoyed right here in the Heart of America,” Casey’s VP of marketing Michael Richardson says.

— Get more news, people moves and insider extras @ www.insideradio.com. —

insideradio.com

PG 4 NEWS@INSIDERADIO.COM | 800.275.2840

FRIDAY, MAY 29, 2015Q & A

THE INSIDE RADIO Q&A: CHRIS BROWN

Ramsey Solutions, the syndicator of The Dave Ramsey show, is launching a new Christian radio show on Monday. The group will present Chris Brown’s True Stewardship on Monday, June 1. The show will air on twenty Salem Communications stations in markets like Dallas, Houston, Philadelphia and Atlanta. We decided to find out more about Chris....

Inside Radio: How did you first get involved with the Dave Ramsey organization?Chris Brown: I’ve been a church pastor for seven years and have always been passionate about stewardship and helping people. I changed direction in 2013 and decided to start consulting executive leadership teams in churches in the U.S. I met Dave Ramsey while he was working on spreading his message to the same groups.

IR: And that spawned a radio show?CB: Well, Dave wanted an ambassador to spread his kind of ministry on Christian radio stations. The timing was right – I was not tied to a church, and he was looking for someone like me. We decided over a year ago to make it happen. Both of us thought it was a perfect fit.

IR: How will your show differ from Dave’s show?CB: Dave is direct and bold – that’s part of his success and style, and I’ll be the gentler Dave on the air. This show will be biblically based and centered. You’ll hear more scripture. The advice I give will be marinated in hope and encouragement, and it will all be based on Christian values.

IR: Have you hosted a radio show before?CB: I’ve been a guest on radio and TV, and I’ve spoken before large crowds, many times 10,000 or more for many years, but this is my first time hosting a national call in radio show. I’m prepared. Once the team and I agreed to the principles behind the show, we started formal rehearsals. I’m been doing a show, off air, for at least two hours a day for over four months now.

IR: What kind of a show can we expect?CB: It’s going to be a caller based show about money – which touches all aspects of our lives. And it will be based in biblical teachings. We’ll talk about solutions, about the complexity money problems bring to your marriage and life. I hope we can talk about how to avoid problems. I can certainly relate to money mistakes. I’ve made a few. The show will mimic Dave’s format, but I’ll offer advice through the lens of a pastor in a way that resonates with a broad Christian audience.

IR: Most listeners know Dave’s story - millionaire to bankruptcy and back. Did you ever face similar debt problems in your life? In other words, have you ever ‘been there’?CB: I was raised below the poverty level. As a child, I lived with abusive fathers, very little money and food, no furniture. In fact, many times, no home. So I’ve been there. As a young adult I was a real estate broker. I wanted more, so I borrowed a ton of money and wound up with $1M in property....and the economy crashed. I couldn’t sell or rent my property and had to cover payments without income from them for 3 years. Much like Dave, I learned some hard lessons.

IR: You told me earlier that radio was important to you in your early years.CB: It was. One of the only gadgets I did have growing up was a Walkman, so I listened to radio and I was intrigued, even at an early age, by the power of it. Radio talk shows reached my mind and my heart. I’m very proud to be starting my own show and hope I can reach others and help them learn about money.

IR: You’ve spoken in front of thousands live, how different is it speaking to a radio audience?CB:When I speak at a conference, it’s a monologue. The radio show is a dialogue. It’s like a great prayer, when you talk to God and hear him talk back. The interaction with callers, whether we’re talking about marriage, money, retirement, or other everyday problems, I want to give hope to listeners and make a difference in their lives.

IR: So what have you been doing to prepare for the launch?CB: Praying for guidance. And listening to my producer, Bob Borquez, and Dave’s producer, Blake Thompson. I’ve spent hours in Dave’s studio. Often during breaks, he takes the time to explain why he gave the advice he gave. I think I’m ready.

insideradio.com

PG 5 NEWS@INSIDERADIO.COM | 800.275.2840

FRIDAY, MAY 29, 2015

GENERAL MANAGERSOUTHEAST

Creative, Energetic Revenue Hawk

• Build a career with the nation’s 6th largest media company!

• Lead a key market which has our most successful formats!

Salem Media Group’s integrated media platforms uniquely serve audiences seeking Christian and conservative content.

If you want to control your financial destiny and you have proven ability to find, hire and empower great sellers, let’s talk.

Email:Elizabeth.Meyer@salem.cc

and reference GM/SE

Salem is an equal opportunity employer.

INSIDE RADIO, Copyright 2015. www.insideradio.com. All rights reserved. No part of this publication may be copied, reproduced, or retransmitted in any form. This publication cannot be distributed beyond the physical address of the named subscriber. Address: P.O. Box 567925, Atlanta, GA 31156. Subscribe to INSIDE RADIO monthly subscription $39.95 recurring payment. For information, visit www.insideradio.com. To advertise, call 1-800-248-4242 x711. Email: ads@insideradio.com.

MORE OPPORTUNITIES @ INSIDERADIO.COM >>

qual GENERAL SALES MANAGER - DELAWAREExtraordinary opportunity to join one of the country’s leading independent media companies. Marconi, Crystal & Murrow Award winning WDEL/WSTW/WFAI are looking for a results driven sales pro to lead our sales team in the Wilmington, DE market. While some radio companies are cutting back, we continue to invest in new stations, facilities, equipment and most importantly, great talent to deliver amazing value to our advertisers. We like to win and have the resources in place to compete with anyone. Our digital advertising solutions are extensive and successful candidates must have a proven track record of delivering revenue by selling multi-channel, integrated marketing solutions to SMB’s as well as regional and national clients. Tells us why you’re the best person to take on this challenge and how you would manage your sales team and further strengthen our position! as the dominant media company in Delaware. Also, you must be a Phillies fan or have a good reason why you’d ever root for another team even in 2015.

Send cover letter & resume to: GSM@DBCMEDIA.COM

Delmarva Broadcasting is an Equal Opportunity Employer.

Major Broadcast Group is recruiting an experienced and successful radio professional for an exciting Market Management opportunity. The successful candidate will be responsible for several radio stations in a growing radio market. A documentable, demonstrated track record of results as a positive leader and radio broadcast manager is required. Outstanding community involvement and a focus on localism is required. Please send your resume along with a short

biography outlining your successful track record in confidence to: apply@insideradio.com. Equal Opportunity Employer.

MARKET MANAGER

LOCAL RADIO SALES $100,000 PLUSAre you happy with the money and commissions you are making so far this year? If not, let me introduce to you to Direct Media Power, Inc. (DMP). DMP partners with every major national radio network and 1000s of local radio stations nationwide to liquidate millions of dollars of their unsold commercial radio airtime. And we are currently looking for aggressive, local area Account Executives who want to work a proven inside sales system from our suburban Chicago location and make $100,000 plus. We are, however, NOT looking for sales people who are content with making $60K/year. With DMP you have the potential to earn a high income within 30-60 days of employment, with no territory boundaries (you will be selling to national clients) and no caps on commissions. In addition, you will work for a growing and entrepreneurial company. This is a radio salespersons dream job! We are looking to add 4-6 salespeople to our growing team in June.

Don’t miss out on this opportunity. For immediate consideration, please email

your cover letter and resume to: shirleen@directmediapower.com,

or, just give her a call: 630-256-8600 ext 7031 EOE