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

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

AM Broadcasters Still Seek Translators, Digital Authorization

When the FCC announced the creation of an “AM Revitalization Initiative” in 2013, the proposal included a grab-bag of industry desires, such as the right for AM stations to utilize FM translators and for AM stations to move from hybrid analog/digital broadcasting to the all-digital AM-HD protocol. But to the consternation of industry lobbyists and HD-backers there’s been no movement on this initiative — so now they’re beginning to whine about it.

Case in point is a commentary published in late June by Frank Montero, an attorney at D.C. communications law powerhouse Fletcher, Heald & Hildreth, which laments that AM broadcasters are being held hostage without access to FM translators and accuses the FCC of playing political football with the future of AM itself. It’s full of questionable assertions and revisionist history. Read More

Broadcasters: Music and Sports Payola is Okay

Several broadcasters have teamed up in a petition with the FCC seeking to change the agency’s sponsorship identification rules. Presently, if an entity pays a radio station to put a program on the air, the station must clearly disclose this relationship on the air at the time the sponsored programming is played. This rule is an old one, first instituted to crack down on the practices of payola and plugola — or the back-channel compensation of radio stations by record labels and promoters to spin their tunes.

The “Radio Broadcasters Coalition” reads like a who’s who of corporate radio: Beasley Broadcast Group, Cox Radio, Cromwell, Emmis, Entercom, First Natchez, Greater Media, Henson Media, and Clear Channel iHeartMedia. Their 20-page proposal seeks to flip the script on payola/plugola disclosures, allowing stations to air music and sports programming that the station is paid directly for without any on-air disclosure at the time of broadcast. Instead, the Coalition suggests that stations engage in a “robust listner education program” about sponsored programming, run “daily announcements” about sponsored programming, and post “enhanced disclosures” online. Read More

Broadcasters to SEC: Digital A Variable Priority

In its latest quarterly filing to the Securities and Exchange Commission, Emmis Communications, the Indianapolis-based broadcast conglomerate who developed the NextRadio/TagStation suite and is a major player in HD Radio, had some interesting things to say about both technologies.

Back in 2013, Emmis inked a deal with Sprint in which broadcasters would pay $15 million a year to Sprint through 2016, in quarterly installments, in exchange for Sprint adding FM receiver chips to some 30 million devices on its network. Emmis has been working with other broadcasters to help shoulder the burden of this deal, but it would seem that industry enthusiasm for the project is coming up a bit short. Specifically (p. 30): Read More