Radio+Television Business Report

Beasley Broadcast Group shares finished Thursday’s trading at $1.97, rising 4.8% as the media company in eSports and radio programming disclosed an early look at its Q4 2020 results that are decidedly positive.

With the COVID-19 pandemic hammering revenue, any single-digit year-over-year dip can be viewed as a good thing. And, that’s where Beasley stands: the company generated net revenue of approximately $67.4 million to $67.9 million for the three months ended December 31, 2020. That compares to reported net revenue of $72.1 million for Q4 2019, representing a year-over-year decrease of between 5.8% and 6.5%.

For Q4, Beasley’s estimates a year-over-year decrease in commercial advertising revenue due to the ongoing impact of the COVID-19 pandemic, partially offset by growth in digital, esports and political revenue.

Meanwhile, Beasley says its Q4 “Station Operating Income,” a preferred non-GAAP financial measure, increased by approximately 23.1% to 28.8% year-over-year to approximately $19.2 million to $20.1 million. This compares to reported Q4 2019 SOI of $15.6 million.

Furthermore, Q4 2020 EBITDA increased by approximately 25.0% to 33.8% year-over-year to approximately $17.0 million to $18.2 million, compared to $13.6 million in Q4 2019.

How did Beasley do it? A reduction in operating expenses and corporate overhead,  realigning a company-wide cost structure, political advertising, and “an expected gain on a land sale” in Q4 2020 were noted.

What is that land sale? Look no further than Charlotte, where real estate developer Beauxwright purchased a 5.397 acre site utilized by expanded-band WBCN-AM 1660 and an adjacent 0.1 acre property for approximately $5 million.

Townhouses will pop up where the station’s single tower now sits, just north of Five Points Park in northern Charlotte.

WBCN-AM is dark. However, its “Fox Sports Charlotte” programming lives on via an FM translator fed from a HD multicast signal.

Network advertising sales executive Deidra Hoye has been named SVP/Ad Sales as part of a department-wide expansion at Sun & Fun Media’s radio syndication company Key Networks.

Hoye is based in Los Angeles and was previously VP/Network Sales for iHeartMedia-owned Premiere Networks. She had been with Premiere since 2001. Now, Hoye will oversee Key Networks’ newly expanded sales team.

Among the recent hires are VP/Eastern Sales Maggie Nugent Sisco, Vice President/Midwestern Sales Brian Pollina, and Supervisor of Sales Support & Operations Michelle McLynn.

Sisco joins Key Networks from Podcast One, where she was Vice President/Director of Sales, Eastern Region.

Pollina was previously with United Stations Radio Networks, where he was VP of Digital Assets and Midwest Sales for the last eight years of his 12-year career there.

McLynn joins Key Networks from Westwood One, where she was Affiliate Services Manager.

The Colorado cities of Aspen, Steamboat Springs and Vail are famous for their ski resorts.

In each of these locales, low-power TV stations have been licensed to serve local viewers.

Now, they are being snapped up by Ravi Kapur.

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In May 2015, the Rev. Denny Hazen passed away, leaving behind his wife, Marge.

Both were widely known across Northeast Ohio for their long-running broadcast ministry, which saw the launch of a TV program and ownership of radio stations.

Now, one of those FMs is being spun.

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“The proliferation and rising popularity of a myriad of digital channels over the past decade has made the measurement of media effectiveness increasingly complex,” says Mike Campbell, the head of international effectiveness at London-based Ebiquity.

In his view, the 2020s will be defined as a time when “a real shift to an effectiveness-led media planning strategy, incorporating both online and offline channels,” begins.

Campbell says, “As we likely head into a recession at the start of the decade, we’ll see a greater demand for, and investment in, analytics – something that traditionally happens during times of uncertainty.”

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She joined Hearst Television in 2017 to lead the central digital teams that curate and produce a broader palate of content for distribution through the station-branded sites, apps and social expressions.

Now, she’s being promoted to Senior Director and Managing Editor for Hearst Television’s central digital content teams.

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WEST PALM BEACH — As expected, the merger of ION Media with The E.W. Scripps Co. has led Scripps to initiate a migration plan that will bring its five Katz Networks multicast networks to newly acquired ION properties.

The moves begin on March 1.

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With the start of the 117th U.S. Congress, the House Energy and Commerce Republican Leader became Cathy McMorris Rodgers, who succeeds the now-retired Greg Walden.

On Thursday (1/14), Rodgers revealed that eight fellow GOP members will be seated with her on the powerful committee that maintains oversight of the FCC.

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Digital media measurement, data and analytics software platform DoubleVerify has received Media Rating Council accreditation for display and video rendered ad impression measurement and sophisticated invalid traffic (SIVT) filtration, including app fraud, in the Connected TV media environment.

“As marketers increasingly adopt Connected TV/OTT platforms for their ad investments, it becomes ever more critical for those investments to have the protection of MRC-accredited measurements,” said George W. Ivie, Executive Director and CEO of the MRC. “DV’s accreditation for its SIVT-filtered rendered ad impression measurement of both video and display ad creatives in these environments is an important step toward that goal.”

DoubleVerify is one of a select few companies in the industry accredited for both video and display impression measurement and SIVT in Connected TV.

Connected TV now reaches over 80% of U.S. households. This number is expected to grow to 86% by 2024; cord-cutter and cord-never households are expected to increase to 44% of the population during this same period, according to Leichtman Research Group. Although Connected TV ad spend increased 27% from 2019 to 2020, eMarketer data shows, ad spend does not yet fully reflect consumer demand for Connected TV.

“As more audiences flock to Connected TV and OTT, advertiser demand for greater transparency in these channels continues to accelerate,” Mark Zagorski, CEO of DoubleVerify, said. “Our mission is to give our clients the clarity they need to be confident in their media investments so they can take advantage of the opportunity CTV presents.”

DoubleVerify first received MRC accreditation in February 2013 for its tag-based measurement for its impression quality suite of services and desktop display viewability. In 2015, the MRC accredited DoubleVerify for desktop video ad viewability and invalid traffic for both desktop and mobile web, and in 2017, DoubleVerify received additional accreditation for the detection of invalid traffic within mobile apps.

More recently, the company became the first measurement provider to receive MRC accreditation for third-party integrated measurement on Facebook.

Note: RBR+TVBR does not use the term “CTV” for Connected TV, in order to eliminate confusion with Canadian broadcast TV network CTV.

The virtual CES 2021 conference and expo is in full swing, and Jacobs Media on Wednesday offered a three-hour midday tour of what’s hot for radio broadcasters.

Among those participating in the event was Joe D’Angelo, the senior vice president of broadcast at the parent of both DTS and HD Radio, Xperi.

What are Joe’s key takeaways from what he’s seen at CES 2021? Are there some exciting new and/or improved tech products of use not only for radio, but also TV, in the year ahead?

Joe shares all in this latest RBR+TVBR InFOCUS Podcast, presented by DOT.FM.

Listen to “The InFOCUS Podcast: Joe D’Angelo, Xperi” on Spreaker.

WASHINGTON, D.C. — A coalition of news organizations today sent a letter to federal law enforcement agencies calling for greater transparency and timely, vital information about the January 6, 2021 insurgency by supporters of President Trump on the U.S. Capitol Building and the possibility of further violence — including at the upcoming inauguration of President-elect Joe Biden and Vice President-elect Kamala Harris.

“The agencies must share information about possible civil unrest in the days leading up to Inauguration Day, January 20, through frequent and regular in-person press briefings so the public and news outlets can be properly informed about viable threats and can take appropriate action to protect themselves,” the groups state in the letter.

The letter was addressed to Acting Attorney General Jeffrey Rosen, Federal Bureau of Investigation Director Christopher Wray, Department of Homeland Security Acting Secretary Pete Gayno, U.S. Capitol Police Acting Chief Yogananda Pittman, U.S. House of Representatives Acting Sergeant at Arms Timothy P. Blodgett and U.S. Senate Acting Sergeant at Arms Jennifer Hemingway.

Signing the letter are the NAB, Asian American Journalists Association, National Association of Black-Owned Broadcasters, National Association of Hispanic Journalists, National Newspaper Association, Native American Journalists Association, News Media Alliance, News Media for Open Government, News Leaders Association, Online News Association, Radio Television Digital News Association, Reporters Committee for Freedom of the Press and Society of Professional Journalists.

The owner of three FMs and an AM serving North Central Washington state has decided to put the AM and two of the FMs it owns on the market.

And, it has retained Greg Guy of Patrick Communications to find the right buyer — preferably a local one.

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For some 30 years, the 1540 kHz signal has been associated with Spanish-language programming targeting Salvadorans and other consumers of Hispanic heritage across the National Capital Region.

It has been associated with Alejandro Carrasco since 1997, and has been owned by Carrasco for two decades.

Now, Carrasco is selling the facility while retaining its simulcast partner — ensuring, for now, that “Radio América” continues serving the Washington, D.C. market.

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In December 2019, it debuted.

Now, this live TV streaming platform has given its subscribers access to Nexstar Media Group‘s WGN America cable channel — the home of NewsNation and Ashleigh Banfield.

As such, starting Friday (1/15) the cable network will be carried by Vidgo.

It’s just the latest deal to involve WGN America reached in the last two months, expanding its reach by 8.5 million subscribers as Nexstar has invested heavily in its news operations and forthcoming news magazine hosted by Banfield, which will take the 10pm Eastern time slot.

Financial terms of the distribution agreement were not disclosed.

“Today’s announcement continues the steady strategic expansion of WGN America,” said Sean Compton, President of the Networks Division. “We are excited to be adding Vidgo’s customers the network’s reach, and to be bringing NewsNation and Banfield to more viewers who can watch us whenever and wherever they desire.”

Vidgo markets itself as an option comparable to Dish’s Sling TV, and to Philo.

Sinclair Broadcast Group hired an individual some 17 years ago who has risen through the sales and operations ranks at its flagship TV station in Baltimore.

Now, he’s been selected to lead FOX affiliate WBFF-45 — and the two other stations Sinclair runs, but doesn’t own, in Charm City.

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For three hours on Wednesday, Fred Jacobs of Jacobs Media Strategies conducted a virtual tour of the all-online Consumer Electronics Show — CES 2021.

With presentations from Amazon Alexa Auto and Xperi ahead of those scheduled from LG, Ford, Triton Digital and Mercedes Benz, Jacobs recalled how, normally, some 180,000 people congregate in Las Vegas for one of the biggest events in the world.

In recent years, the radio industry’s leadership has been there. This year, they — and Jacobs — are among those connecting from home and “table hop.”

The three-hour tour saw some 350 industry members registered for participation, and more than 200 watching live as Jacobs began the event at 1pm Eastern.

Among those in attendance: Bud Walters of Cromwell Group, Nielsen Audio leader Brad Kelly, Brian Beasley of Beasley Media Group, programming veteran Dave Beasing, and Salem Media Group‘s Dave Santrella, among others.

The cool tech shared by Jacobs began with a Vuzix wearable smart/augmented eyeglass/earpiece hybrid.

This preceded a conversation with Shawn DuBravac — a global futurist and trendsetter — who noted that we are at an “interesting inflection point” in a year where digital was forced upon us, giving us an opportunity to decide what to keep when the pandemic ends, and what will fade.

This includes at-home gym and workout platforms. Will consumers go back to gyms in-person or continue to prefer a mirror-like device, or Peloton, or video-delivered instruction?

He says, “It is important to think not just how does this change radio, but also how does this effect the things that isn’t radio. Ultimately, radio is getting disrupted by these second-order effects of these new technologies and new services.”

Today, broadcasting from home is a “new normal.” This could very well continue past the end of the pandemic, given the technology put in place and the services that can continue to be deployed by radio broadcasting companies.

That said, DuBravac says, audio is overshadowed by video.

“The screen real estate continues to explode,” he believes.

That’s no understatement: Televisions including HDMI 2.1 and 8K technology are looking to capitalize on interest in the new generation of video game consoles that will support those technologies. Shipments of consoles exploded at the end of 2020, with imports of consoles increasing 123.2% year over year in the three months to Nov. 30, 2020.

Fred Jacobs quickly interjected that voice has become bigger than ever. DuBravac agrees, with AI technology fueling it to such things as a connected faucet. “We are getting into a much deeper integrated to where artificial intelligence in many ways is defining the product,” he says.

This is a key feature of the Mercedes Benz dashboard, in which they will deploy prediction-based suggestions based on consumer use, likes and dislikes, and other voice-recognized personalization, DuBravac adds.

AMAZON’S AUTO 

Arianne Walker, the “Chief Evangelist” for Alexa Automotive, offered a presentation on how the voice activation platform largely known for its in-home use, can be additive to one’s car, too.

Integration of Alexa into OEM in-dash systems is focused on entertainment, voice communication to phone or online virtual meeting platforms, gasoline monitoring and filling station searches, and basic automotive functions including defrost and heating/cooling.

XPERI IN THE SPOTLIGHT

Joe D’Angelo, SVP/Broadcast at HD Radio parent Xperi, offered a review of what’s new for consumers that may have an HD-equipped in-car audio entertainment system.

It shared statistics on advertiser recall, and it’s current availability by automaker and trim.

The DTS Auto Stage, another Xperi offering, was also featured in a pre-recorded video.

Even as social media companies struggle to combat misleading information on their platforms, a new Pew Research Center survey finds that 53% of adult American respondents receive their news on social media sites “often,” or “sometimes.” 

And, of the 11 social media sites asked about as regular sources of news in the study, Facebook sits on top.

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The National Association of Television Program Executives (NATPE), which is staging a virtual NATPE Miami conference in 2021 due to the COVID-19 pandemic, is presenting the President of Hearst Television with one of four Iris Awards.

The 2021 Iris Awards ceremony will take place as part of NATPE Virtual Miami on January 21 at 1pm Eastern.

Among the honorees is Hearst head Jordan Wertlieb. He will be receiving the Lew Klein Award for Leadership.

NATPE’s Iris Awards were created to recognize best-in-class executives, program producers, creators, talent and content that makes a significant impact on the industry and our culture.

The Award for Excellence in Performance will be presented to Kelly Clarkson, while long-running syndicated entertainment news magazine  Entertainment Tonight will be honored with the Award for Excellence in Programming as host Kevin Frazier is given the Award for Career Achievement.

Once again, retransmission consent negotiations gone bad generated many news headlines over the last six weeks. Yet, ACA Connects President/CEO Matthew M. Polka notes, those talks have mostly concluded.

Not surprisingly, he says, the results “were consistent with what was expected as broadcasters continued to impose unconscionable rate hikes on consumers for what they call ‘free TV.’”

Oh, boy … What else does Polka have to say about retransmission consent — still a sore subject for Suddenlink and Cox Media Group, and for Frontier Communications and Gray Television?

“In addition to big rate hikes, we’ve also seen more than a few TV station-initiated blackouts without much warning and a lot of miffed customers,” Polka opines in commentary distributed Wednesday (1/13) by the pro-small MVPD lobbying group.

The only bright side, Polka says: “It could have been even worse for many smaller cable operators had the door not been opened for buying groups to enter the picture.”

How so? Polka explains, “The FCC just released a report showing, in 2019, that cable operators paid more than $5.5 billion dollars in retransmission consent fees — once again, for the right to deliver ‘free’ over-the-air television stations. This represented a 19.2% increase over fees paid the previous year at a time when the general rate of inflation, as measured by the Consumer Price Index, was 2.5%.”

The report, Polka adds, showed that smaller cable operators were “disproportionately harmed” financially by retransmission consent. Small cable operators paid on average $178.13 per subscriber, per year in retransmission consent payments, while large cable operators paid on average $124.67 per subscriber, per year, he says. “In other words, small cable operators paid on average at least 43% more than larger operators,” Polka says. “And, according to the FCC, the disparity between small and large cable systems is getting only bigger.”

Polka also shares that in 2019 there were 219 instances of “blackouts,” a number likely tied to an individual channel’s prevention, by law, from reaching MVPD subscribers without a retrans consent pact in place.

What about 2020? “[All] the anecdotal evidence we have seen suggests that the magnitude of rate increases has gotten only worse in last year’s negotiations,” Polka believes.

Among the ACA Connects members that refuse to accept new agreements as suggested by broadcast TV stations, many of whom have increased value for their properties thanks to investment in local news operations across a pandemic, are BOYCOM Vision, NNTV, Mediacom, TDS, GCI, Shentel, WOW! and Cable One/Sparklight.

As Polka sees it, the MVPDs have done nothing wrong in their negotiation process, putting all of the blame on a two-sided arrangements on broadcasters and their “unreasonable demands for higher fees.”

While the blame game will likely continue for months, if not into 2022, Polka is pleased that 2020 saw the implementation of the first set of retransmission consent negotiations conducted after passage of the Television Viewer Protection Act of 2019 — a law that ACA Connects and its members “fought hard to pass.”

The TVPA requires large TV station ownership groups to negotiate retrans in good faith with buying groups like the National Cable Television Cooperative (NCTC).

Polka’s not entirely pleased with the TVPA’s results, but he’s more than satisfied.

“Make no mistake, the broadcasters still have an incredible amount of leverage and the terms and conditions of these deals were not great for the small cable operators opting into them,” Polka says. “But those deals involved lower transaction costs than individual negotiations would have had.  And, hopefully, they resulted in lower rates than individual negotiations would have produced.”

The bottom line for Polka: “Most of what’s awful about retransmission consent stayed the same, and it’s getting worse for consumers,” he says. “The old and outdated federal retrans rules from the 1990’s need to be reformed or, better yet, thrown out.  Change through laws like the TVPA is a terrific start, and ACA Connects will continue to fight for reform — just as it successfully did with the TVPA.”

It was a cavalcade of achievements that went on for hours. This included a review of the Media Bureau and Incentive Auction teams’ accomplishments since late January 2017.

All of the presentations, however, couldn’t overshadow the biggest takeaway from the Zoom-delivered highlight reel of The FCC’s Past Four Years: Ajit Pai, Chairman of the agency overseeing media regulatory policy in the U.S., has presided over his final Open Meeting before departing next week.

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