FM vs. iPhone: A Battle of Shaded Truths

Successive rounds of hurricanes battering the U.S. mainland and Puerto Rico are the latest fodder in a radio industry campaign designed to pressure smartphone manufacturers to include radio reception capability in their devices.

Many Android-compatible smarphones are capable of receiving FM signals. The radio industry, led by Emmis Communications, has designed an app called NextRadio that functions as an onboard tuner.

Prior elements of this campaign involved running public service announcements letting people know this functionality existed, and low-key advocacy for a possible mandate for FM in smartphones both at the FCC and Congress. Following Hurricane Irma’s destruction, particularly in Florida, broadcasters amped it up.

They took their cue from FCC Chairman Ajit Pai, who explicitly called out Apple on September 28th to enable FM reception in their phones “to promote public safety.” The next day, the National Association of Broadcasters issued a statement that claimed Apple’s iPhone hardware does indeed contain a chip capable of FM reception, but the company has chosen to disable it; “we encourage Apple to activate this feature on their future handsets so Americans can have access to lifesaving information during emergency situations, something that many local radio stations provide.” Read More

More Radio Industry Market-Maneuvering Afoot

Although iHeartMedia’s dance with bankruptcy is widely seen as a key indicator of the health of the radio industry more broadly, that company is not alone in reconfiguring its approach to finance capital. Two other conglomerates are also making moves — one trying to leave the stock-trade behind while another wants to jump back into those waters.

First up is Emmis Communications: the Indianapolis-based company has been hammered in the stock market over the last few years, threatened with delisting by NASDAQ after its stock dropped below $1 per share in 2015. After conducting a reverse-stock split earlier this year (reducing the number of shares in circulation, thereby inflating the price of remaining shares) which brought the company back into compliance, company founder and CEO Jeff Smulyan has announced a $46 million bid to take the company private. Read More

Radio Stocks on the Dollar Menu

Many industry-watchers have been fixated on the travails of Cumulus Media, which ousted its founding family earlier this year and replaced them with new management backed by the private-capital firms that now control the company. It hasn’t yet resulted in a massive turnaround for Cumulus stock, which is up about ten cents or so from its lowest low earlier this fall. Still, that values the country’s second largest radio conglomerate at a paltry $82 million and change — you can now pick up a few shares of Cumulus for a dollar and still have change left over for a gumball.

But Cumulus is not the only company now trading under a buck. There’s also Emmis Communications — the primary driver behind the NextRadio application and a major innovator in the HD Radio space — whose shares are now trading at just 62 cents, triggering a delisting warning from NASDAQ. Just three months ago, Emmis stock was worth $1.42 per share; a decade ago, the stock was worth 100 times more than it is today. Read More