Radio+Television Business Report

LOS ANGELES — She’s been EVP/General Manager of Horizon Media’s Century City-based operation since 2012 and joined the ad buying giant in October 2009 after two years as SVP/Communications and Planning Director at Universal McCann.

In her time at Horizon, she was responsible for a diverse portfolio of client business including Corona Beer, Jack in the Box, STX and ABC.

Today, the media and advertising worlds are mourning the loss of Serena Duff.

 

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He spent more than 20 years in key positions with WarnerMedia and predecessor Turner Broadcasting, where he created and led dozens of nationally recognized products including the Watch TCM steaming service and TCM.com.

Now, this esteemed industry veteran is joining The E.W. Scripps Co. to lead its newly expanded national television business’ digital efforts.

Selected by Cincinnati-based Scripps for the role is Richard Steiner. 

He’ll be responsible for developing, directing and managing the digital strategy for Scripps’ new national networks, including oversight for OTT, AVOD, SVOD, TVOD, web and mobile
applications.

Steiner reports to Scripps networks COO and entertainment head Jonathan Katz; Scripps’ national assets are comprised of the former Katz Networks and ION Media properties.

At WarnerMedia and Turner, Steiner rose to SVP/Digital, developing and launching Turner’s Turner’s first entertainment-focused direct-to-consumer subscription streaming service, FilmStruck. Steiner also developed TVEverywhere (TVE) and multi-platform strategies for digital activation and new media for TCM, TNT and TBS; created and supported e-commerce initiatives, and developed web and mobile products. Earlier, Steiner was Turner’s VP/Digital Activation.

Before joining Turner, Steiner evaluated programming titles for acquisitions for the Starz Encore Group.

“Richard is a visionary,” Jonathan Katz said. “As a proven innovator in developing world-class streaming products, he’s the perfect leader to help the Scripps Networks leverage the popularity of our content and brands to serve diverse audiences across OTT and connected devices.”

As recently as December 21, 2020, public relations firm NRPR Group was busily pitching opportunities to chat with Charlie Nooney, CEO of MobiTV, on how cable television companies “can maintain its relevance” in the coming years as subscription video-on-demand (SVOD) continues to gain market share.

Now, NRPR and Nooney are fielding calls of a whole other nature: the pioneering Emeryville, Calif.-based company is voluntarily reorganizing by seeking federal bankruptcy protection.

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It’s Tuesday morning in Guam, a U.S. territory much closer to Tokyo and Manila than Tenleytown, in Northwest Washington D.C., or McLean, Va.

Yet, veteran communications law expert and Jacksonville, Fla.-based attorney John Wells King is well versed on the Hagatña radio scene. That’s because he’s the legal counsel for a licensee that’s parting ways with an AM on the Pacific island taken silent last year.

The incoming licensee? A broadcast ministry seeking donations for a new transmitter for its station serving Saipan, in the nearby U.S. commonwealth of the Northern Mariana Islands.

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Matrix Solutions’ Monarch Media Ad Sales Platform is now in place at one of the nation’s biggest owners of both radio and television stations.

As such, the company will now have what Matrix calls “complete visibility into their aggregated data while also providing extensive CRM capabilities and media intelligence designed to increase revenue opportunities and extend operational efficiencies.”

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When financial historians look back at the final three months of 2020 and take a microscope to the broadcast media sector, they’ll likely notice one very clear delineation point between those companies focused on audio content and their brethren with a lens on visual fare.

Radio station owners, even with political bumps that bolstered earnings, still suffered from steep double-digit revenue and profit dips in Q4.

Television station owners, thanks largely to retransmission consent fees and political ad dollars, took to their collective surfboards and collectively rode the high surf caused by COVID-19 across October, November and December 2020.

Add TEGNA to the list of companies that navigated the waves smoothly.

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LOS ANGELES — Facility management software maker Xytech has agreed to purchase Net Insight subsidiary ScheduALL.

The company says the acquisition provides Xytech “the ability to afford customers, and the marketplace as a whole, an end-to-end resource management system with scalability and configurability in a cloud-enabled platform.”

Xytech will continue to support the ScheduALL application and all ScheduALL clients.

Xytech also offers the MediaPulse facility management software and the MediaPulse Managed Cloud.

“With this transaction, we reach an important milestone in our journey towards a more focused and stronger Net Insight where we accelerate growth in our core Media Network’s business,” said Net Insight CEO Crister Fritzson. “ScheduALL has been a valuable part of the Net Insight portfolio, and I would like to thank all ScheduALL employees for their contribution over the years. We believe Xytech is the best future owner of the business and look forward to partnering with them to continue to serve shared customers across the media industry.”

— Katie Kailus

Nexstar Media Group President of Broadcasting Tim Busch, a potential nominee for RBR+TVBR’s Broadcast Television’s Best Leaders of 2021, will retire on June 1, the company has announced.

It will conclude a 36-year career in the broadcast industry, with the last 20 years spent within Nexstar.

Busch joined Nexstar in 2000 as GM for the CBS affiliate serving Rochester, N.Y., WROC-8. Before that, Busch served as General Sales Manager and held various other sales positions
at NBC affiliate WGRZ-2 in Buffalo, his professional home from 1989 to 2000.

Earlier in his career, Busch worked in radio broadcasting, holding various sales and management positions at WGR-AM & FM (today WGRF) in Buffalo under Taft Broadcasting ownership.

During his tenure at Nexstar, Busch worked closely with company founder, chairman and CEO Perry Sook as Nexstar expanded its local television station group, digital offerings and
national market presence.

Sook commented, “Tim and I have worked collaboratively for over 20 years and I’m grateful for his leadership, expertise and friendship. Tim has been instrumental in building the foundation for what Nexstar has become and the values that we have established in terms of our commitment to our team members and the local communities where we operate. On behalf of Tom Carter, Elizabeth Ryder, our Board, shareholders and the entire Nexstar team, we thank him for his many contributions to our long-term success.’

He added that Busch leaves Nexstar “well positioned” to continue Nexstar’s growth as, Sook said, “we have a deep bench of experienced broadcast and digital executives and we are immediately commencing a search for Tim’s successor. We will miss Tim and wish him all the best as he enters the next phase of his life.”

Busch added, “Throughout my years at Nexstar, I have been fortunate to work directly with Perry Sook and Nexstar’s talented team which has re-shaped the industry, delivered great service to the viewers and users of our content and delivered compelling marketing solutions for companies of all sizes. I have had the honor of working with the executive leadership team that consistently drives strong growth and operating results reflecting the talents of our General Managers and team members across the Nexstar Nation. In addition
to building America’s largest local media company, I am proud of our countless accomplishments over the past two decades.

“With a dynamic executive team in place, I am highly confident that the next generation of leaders at Nexstar will extend the Company’s exemplary long-term record of success and the continued creation of shareholder value. I wish everyone in the Nexstar Nation the very
best as they execute on their plans for continued growth.”

Thursday evening’s big headline across business media was AT&T‘s revelation that it will sell a 30% stake in its satellite and terrestrial video services provider business, inclusive of DirecTV. The entity grabbing the stake: TPG Capital.

For Moody’s Investors Service, this is a credit positive move for AT&T.

The deal includes AT&T’s DirecTV, U-Verse, and all of AT&T’s virtual MVPD business, AT&T TV.

The transaction values DirecTV at about $16 billion, which is down considerably from the $67 billion that AT&T paid (including debt assumption) to acquire DirecTV in 2015.

TPG will pay $1.8 billion for its stake, which will include TPG receiving senior preferred equity yielding 10%. AT&T will have junior preferred equity in DirecTV that will PIK.

The new company will incur about $6 billion of new debt, with the proceeds expected to be distributed to AT&T at the close of the transaction.

As the DirecTV valuation is low, the transaction, Moody’s says, “is moderately credit positive for AT&T only because we expect that it will provide AT&T with about $7.8 billion of proceeds, which we expect will be used to help offset the company’s C-band auction cost obligation, which as a result, should quicken AT&T’s leverage reduction.”

The deal also includes AT&T funding about $2.5 billion of net losses from the NFL Sunday Ticket contract for the 2021 and 2022 seasons.

“The significant decline in DirecTV’s valuation is largely driven by the secular pressure hitting the linear pay-tv industry as consumers switch to over-the-top (OTT) MVPDs, subscription video on-demand (SVOD) and advertising video on-demand platforms, such as Netflix, Inc., Disney+, Amazon Prime, CBS All Access, HBOMAX and others,” Moody’s notes. “These secular headwinds as well as competition for resources within AT&T and failure to manage competitively have caused the company’s DirecTV business to be one of the hardest hit in the industry, as the company has lost over 7 million video connections over the past two years.”

Moody’s believes that DirecTV has been “a drag” on the company’s overall equity valuation.

Thus, it says, “it is logical that management would sell a part of this declining business and structure the sale such that it is deconsolidated from AT&T.”

Due to the pandemic, the company has shifted its strategic priorities and is now focusing on four things:

• investing in fiber/5G
• investing in streaming
• restoring the balance sheet to historical strength levels
• supporting the dividend

As a result, AT&T has divested multiple non-core assets over the past year.

In December 2020, the company announced the sale of its anime streaming service, Crunchyroll, to Sony Pictures Entertainment Inc., a wholly owned subsidiary of Sony Corporation, for $1.175 billion.

In October 2020, the company also closed on about $3 billion in proceeds from the sales of Central European Media and real estate, and the sale of its Puerto Rico and US Virgin Islands wireless business.

 

On the evening of Thursday, Feb. 18, Ed Stolz was placed in jail. U.S. Marshals arrested him, as he was a fugitive, unwilling to surrender control of his three FM radio stations to a court-appointed receiver in lieu of unpaid music royalty payments.

Stolz was released from jail one day later. Since then, U.S. District Court of the Central District of California’s Eastern Division, which is presided by Judge Jesus Bernal, continues to hear from the receiver, Larry Patrick, about Stolz’s interference.

Stolz, meanwhile, has filed an appeal of Bernal’s ruling in yet another attempt to thwart the loss of his FMs.

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United States recorded music revenues grew 9.2% in 2020 to $12.2 billion at estimated retail value.

It marks the fifth consecutive year of growth for the industry, as paid subscription services continued to be the primary driver of revenue increases, and reached a record number of subscriptions.

Streaming music’s share of total revenues grew to 83%.

Covid-19 affected the industry significantly through tour cancellations, retail store closures, and other disruptions.

Revenues from recorded music measured at wholesale value grew 8.9% to $8.0 billion.

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Of the major publicly traded audio media companies operating in the U.S., Entercom Communications, iHeartMedia and Beasley Media Group have each reported their fourth quarter earnings. Saga Communications will offer its results on March 12.

Where is Townsquare Media? The results, which are expected to be positive, are still forthcoming and due the week of March 15.

While the company’s top executives will be participating in upcoming investor conferences, a top Wall Street blog believes the company’s shares are nearly half of their intrinsic value estimates.

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Entercom Communications has unveiled a new programming leadership structure for its central programming team.   “This enhanced leadership team will supplement our premium content offering throughout our portfolio and ensure we have the premier collection of personalities engaging deeply with our audiences nationwide,” said Entercom Communications Chief Programming Officer Pat Paxton. “It will also allow us to best integrate the innovation of new products and content so we are continuously growing the impact and reach of our offering and super serving our 170 million listeners each month.”   Paxton will continue to lead Entercom’s programming department and will focus day-to-day on the management of its portfolio of market-leading brands. He will also continue to oversee Entercom’s brand research and marketing efforts.   Jeff Sottolano, Entercom’s EVP of Programming, will continue to manage Entercom’s industry leading collection of sports, all-news and news/talk brands. He will also be charged with growing Entercom’s content insights and analytics capabilities and overseeing its network and syndicated content development.   The big news: Dave Richards joins Entercom’s central programming leadership team as SVP of Programming, segueing from the role of SVP of Programming of Rocker KISW-FM in Seattle. Richards has been there for last 19 years and has developed programs like “The Men’s Room” and concepts like KISW’s annual “Live Day.”   In his new role, Richards will be responsible for original content ideation, talent development and coaching. He will spearhead Entercom’s efforts to support its expanding business portfolio, which includes Radio.com, Cadence13 and Pineapple Street Studios, through the generation of cross-platform content.   Michael Martin will continue to serve as SVP of Programming and Music Initiatives and oversee Entercom’s relationships with artists, management and record labels and lead its efforts to collaborate with the artist community on event, digital and social opportunities.   Entercom has also created an executive committee, with members who will collaborate to develop and oversee programming strategy across the company: Pat Paxton; Jeff Sottolano; Michael Martin; Dave Richards; Pam Russo, Senior Vice President and General Manager, RADIO.COM; Bill Smee, Vice President of News; Matt Volk, Vice President of Sports; Nikki Nite, Vice President of Programming and Brand Manager, Entercom Austin; and Reggie Rouse, Urban Format Captain, Entercom, and Brand Manager, Entercom Atlanta.

 

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It is exiting the digital audio business, as it is spinning Triton to iHeartMedia following the divestment of its radio properties, “with fantastic returns.”

It boasts “a powerful new national network business” thanks to its blockbuster merger with Ion Media.

This is the new path The E.W. Scripps Co. is speedily traveling forward on, and Scripps President/CEO Adam Symson says the transformation of the company makes it “exceptionally positioned for the growth of television.”

With that, Scripps released its Q4 and year-end 2020 results. How did Scripps do?

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Aside from former FCC Commissioner Ajit Pai, there may be few people outside of Kansas familiar with the town of Ulysses. It’s to the northwest of Liberal, southwest of Garden City, and a 300-mile drive from construction-cluttered Denver International Airport.

Here, a group of eight radio stations are heading to a new licensee.

Why? The current operator defaulted on payments owed to the entity getting the octet.

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Gray Television‘s Board of Directors has unanimously voted to expand the board by one seat.

To fill that extra chair, the board has elected the SVP/General Counsel and Corporate Secretary and Chief Compliance Officer for Georgia Power as an independent director.

That would be Sterling A. Spainhour Jr.

Like all Directors, Spainhour’s term will run through the next Gray Annual Meeting.

Spainhour’s resume includes roles at Southern Company, and was a partner at Jones Day for more than 20 years.

He’s also served as senior counsel for CNN.

 

The numbers don’t lie.

The final three months of 2020 were punishing for iHeartMedia, which enters March 2021 with the need for a new EVP of Programming for its highly important Los Angeles radio cluster and a long-term plan to replace The Rush Limbaugh Show.

How exactly was Q4 for the company led by Bob Pittman and Rich Bressler? 

Net income was down 95% year-over-year as adjusted EBITDA declined by 13%.

Despite the rather dour Q4 results, Pittman struck a positive tone on the company’s quarterly earnings call held following the Closing Bell on Wall Street Thursday.

With the Q4 and 2020 financial results for iHeartMedia released following the Closing Bell on Thursday, the company says it is implementing a new operational structure that will now have its financials reported in two separate segments – digital audio and multiplatform, which includes all radio stations. CLICK HERE FOR THE FULL STORY.

 

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With the Q4 and 2020 financial results for iHeartMedia released following the Closing Bell on Thursday, the company says it is implementing a new operational structure that will now have its financials reported in two separate segments – digital audio and multiplatform, which includes all radio stations.

The final three months of 2020 were punishing for iHeartMedia. How exactly was Q4 for the company led by Bob Pittman and Rich Bressler? Net income was down 95% year-over-year as adjusted EBITDA declined by 13%. Despite the rather dour Q4 results, Pittman struck a positive tone on the company’s quarterly earnings call held following the Closing Bell on Wall Street Thursday. FOR THE FULL STORY CLICK HERE!

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Gray Television isn’t the only broadcast TV company to greatly benefit from boffo political advertising revenue in the final three months of 2020.

The owner of such stations as NBC affiliate WDIV-4 in Detroit and CBS affiliate WKMG-6 in Orlando enjoyed a big revenue increase in Q4 for its television broadcasting division.

The reason: A big political revenue gain.

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Until his June 2020 departure from HC2 Holdings Inc., Phillip Falcone was widely known across the broadcast media industry as a flashy big spender on low-power broadcast TV stations.

Then came accusations that Falcone defaulted on loans. His assets were frozen for failure to compensate his legal representatives. This followed by a 2019 court order that saw HC2 withhold some of Falcone’s salary in lieu of some $2.69 million in unpaid taxes to the City of New York.

All of that negative activity is firmly now in the past, as Falcone has reemerged as the head of a new entity that’s agreed to purchase two low-power TV stations in Los Angeles.

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