Cumulus Meltdown: Consolidation Karma

The thud heard ’round the industry: Cumulus Media, the second-largest radio station conglomerate in the country, ousted its founders in late September. CEO Lew Dickey has been demoted to a vice chairman, while brother John (an executive vice president) has already cleared out his office.

The move was orchestrated by private equity firms who hold a significant portion of Cumulus’ stock and have not been pleased by the company’s meltdown this year, which has seen its stock price tank by more than 80%, from north of $4 at the beginning of 2015 to 75 cents at the close of trading last week. As I write this, Cumulus’ market capitalization in total is $169.5 million. That’s a valuation more than $1 million less than what DTS bought the HD Radio system for. Think about that: hundreds of stations, a passel of networks, and online properties worth less than a mostly-ignored technology. Read More

O’Rielly Pimps Pirate “Policy Statement”

Republican FCC Commissioner Mike O’Rielly has made the persecution of pirate radio one of his hobby horses. He’s been blogging about it all year, lamenting the fact that his agency has no muscle with which to silence most stations and suggesting some cockamamie ideas for trying to tackle the problem. Although the agency’s Enforcement Bureau is currently going through a painful downisizing, O’Rielly’s an impatient man who wants heads on sticks.

He convened a task force of the broadcast industry earlier this summer which put forth a litany of suggestions for improving unlicensed broadcast enforcement. A month later, FCC Chairman Tom Wheeler acknowledged that while unlicensed broadcasting is very much alive and well, tackling the phenomenon will not succeed using traditional enforcement methods. Read More

FCC Revises Contest Disclosure Rules; Music and Sports Payola Next?

Last week, the FCC announced changes to its contest disclosure regulations, first crafted in 1976. The changes allow stations to disclose contest rules either on the air or online.

This is the culmination of a Petition for Rulemaking first filed by Entercom in 2012, which the FCC didn’t officially start ruminating on until last December. The proposal attracted fewer than 20 comments, most of them being broadcast companies and state broadcasters’ associations (although NPR was also in the mix) and all of whom supported the proposal. Read More

AM Broadcasters’ Last Grasp at FM Translator Marketplace

If you read the latest round of ex parte filings in the FCC’s AM revitalization proceeding, you’d think the future of the band hangs on its eventual migration to FM. Yet of the many things the agency’s considering to help AM broadcasters, opening a new applications window for AM stations to acquire FM translators has not been one of them. Now the drafting of new policy has begun that would take AM revitalization from consideration to implementation — and broadcasters are making a last-minute push to grab some FM crumbs.

In the last month, a motley crew of advocates for more FM translators have been making the rounds at FCC HQ. These include trade groups, individual broadcasters and other interested parties. Some of their arguments espouse wrongheaded notions of “salvation” for the most beleagured AM broadcasters. Read More