Industry News

The Federal Communications Commission released its most recent report on the ownership of broadcast stations across the U.S. For the first time it also gathered data on the gender, ethnicity and race of those with an attributable interest in noncom educational stations.

The results revealed that women and minorities still hold only a small fraction of majority ownership in U.S. broadcast stations.

[Read: America’s Broadcasters Should Look Like America]

For example, the report revealed that women collectively or individually held a majority interest in 874 commercial broadcast stations, compared to their male colleagues who hold a majority interest in 8,736.

Yet the report also reveals that radio is an industry providing a higher percentage of attributable ownership opportunities for women and minority groups. According to the report, based on information submitted by licensees in response to the FCC 2017 biennial ownership report, women hold a greater percentage of majority voting interest in commercial AM radio (8.9%) when compared to full-power commercial television (5.3%).

The same trends were seen when in tracking ethnic groups across radio. Hispanic and Latino individuals held a held a discernable majority voting interest in 4.2% of all full-power commercial television stations as compared to 6.1% of commercial AM stations.

Radio World will shortly publish second item with more data about radio specifically.

The disparity was similar when comparing the race of commercial station owners. Those who identify as white were reported to hold a majority interest in 10,076 commercial broadcast stations compared with  416 commercial stations owned by those who identify as a racial minority.

Ownership based on racial group was broken down further:

• Black/African Americans owned 239 commercial broadcast stations;
• Asians owned 136 commercial broadcast stations;
• American Indian/Alaska Natives owned 31 commercial broadcast stations;
• Native Hawaiian and other Pacific Islanders owned seven commercial broadcast stations.

The numbers played out similarly when it came to noncommercial broadcast stations.

Women collectively or individually hold a voting interest in 401 noncommercial broadcast stations. While women have a 9% stake in noncommercial FM radio stations (a total of 314 across the country), not one woman was listed as holding a majority in any noncommercial Class A television stations. Compare that to the noncommercial ownership numbers for men, which collectively or individually hold a majority of the voting interests in 2,564 noncommercial broadcast stations, including 2,086 FM radio stations.

Data gathered from the 2017 biannual report gave details on ownership, such as a breakdown of owners of commercial AM radio stations.

Racial minorities holding a majority of the voting interest at noncommercial stations includes 109 noncommercial broadcast stations, including 12 AM radio stations and 91 FM radio stations.

Ethnicity was also tracked as part of the report. Those who do not identify as Hispanic or Latino hold voting interests in 9,836 commercial broadcast stations, compared to only 668 Hispanic/Latino owners. For noncommercial stations, the numbers were still stark: Non-Hispanic/Latino persons collectively or individually held a majority interest in 3,100 noncommercial broadcast stations, compared to 121 noncommercial broadcast stations.

“It is striking — but not surprising — that no minority group is better off in owning more full-power commercial broadcast stations than they did in 2015,” said FCC Commissioner Geoffrey Starks in a statement. The year 2015 was the last year that this type of ownership data was collected. Of 1,385 stations, African-Americans owned just 12 stations in 2015 — “an anemic figure to be sure,” he said — and still owned just 12 stations in 2017.

Many minority groups saw their ownership numbers worsen, he said, including American Indian or Alaska Native women. “They lost all eight stations in which they held a majority ownership interest in 2015,” Starks said, which was the last year that the report was produced.

Women lost ground overall, representing only 5.3% of full-power commercial station owners, down from 7.4% in 2015.

“I have said it before: America’s broadcasters must look like America,” said Starks, one of two Democrats currently sitting on the five-member FCC. “We have much work to do — and it starts with us fulfilling our direct order from the Third Circuit to implement a data program that would help understand the impact of our regulatory efforts on the ability of women and people of color to own stations.”

In addition to a breakdown on gender, ethnicity and race, the report includes a comparison of 2017 and 2015 data for full-power commercial television, Class A television, low-power television, commercial AM radio, and commercial FM radio stations; as well as detailed ownership information in a series of tables and spreadsheets.

Reports can be searched via licensee name, call sign, service or  FCC Registration Number here.

 

The post Report Paints Bleak Diversity Picture in U.S. Broadcast Ownership appeared first on Radio World.

D.C. NPR affiliate WAMU 88.5 announced it will sell WRAU(FM) of Ocean City, Md., to Delaware Public Media. Pending Federal Communications Commission approval, the deal will close in June, and programming changes are slated for the same month. 

The press release positions the sale as “a strategic move on the part of both parties to benefit the WRAU listening audience.” Terms were not disclosed.

Additionally, WAMU said the current WRAU listening audience represents only 2% of WAMU’s weekly broadcast audience. WRAU is licensed to the Salisbury metro area — more than two hours from D.C., where the American University licensee’s programming originates — and its signal reaches Wicomico, Worcester and Somerset counties in Maryland and Sussex county in Delaware, according to a WAMU representative.

For those unfamiliar with the geography of Maryland’s Eastern Shore, Salisbury is just a stone’s throw from the Delaware state line. According to Radio-Locator’s WRAU coverage map, the station’s local signal reaches close to Milton, Del., and its fringe signal extends well past Dover, representing more than half of the state’s geographic area.  

NEW DELAWARE OWNER, LOCAL FOCUS

In the announcement, Delaware Public Media President Jane Vincent said the purchase is in line with her organization’s mission to serve Delaware’s three counties “with independent high-quality news and programming for and about Delaware.” (Current describes WRAU as a repeater station for WAMU.) She added that continued “access to great NPR programming” for Sussex Country, Del., residents and “keeping the signal within the NPR family” are “bonuses” from the deal.

Delaware Public Media was founded in 2010 as a “digital-only outlet” and added WDDE(FM) 91.1 two years later, making it the First State’s only NPR affiliate. The organization also assists Brandywine School District’s WMPH(FM) and Red Clay Consolidated School District’s WMHS(FM).    

For WAMU’s part, it indicated financial support of WRAU was not in line with current goals. According to the announcement, WAMU will concentrate on the D.C. metropolitan area. WAMU General Manager JJ Yore described the decision as a win-win that enables both pubcasters to provide “local audiences with the best possible public service.” He emphasized that WAMU is “deeply committed to strengthening our coverage of the Washington region, not only on 88.5 but also through WAMU.org, DCist, our podcasts and social media.”

The post WAMU to Sell WRAU to Delaware Public Media appeared first on Radio World.

We all love cool, new technology, but sometimes we need to talk about technology that is not as sexy yet still extremely important.

I want to talk a little bit about uninterruptible power supplies (UPS).

It is not a conversation we like to have, but we all know how important it is to protect expensive equipment and improve uptime. I expect many smaller stations will have a similar experience to mine, so I wanted to take the time to help drive the right ways to think about this important equipment.

Production room with APC SMX UPS

Working at Holy Spirit Radio in the Philadelphia area, we operate two small non-profit stations. Although I have been involved with the stations since the foundation was formed 20 years ago, my involvement over the last three years has increased tremendously as we prepare for the next 20 years.

Equipment in radio has changed dramatically, from much larger analog equipment of yesteryear to the all-digital equipment of today. In my view, some of the older equipment could handle power fluctuations that would damage or destroy some of the newer equipment that is used today.

Right before I started to increase my involvement at the stations, the engineer replaced all our UPS equipment. The prior equipment was not nearly powerful enough to meet the needs, and the batteries did not last long in a power outage event. Like many of us, he was frustrated by the higher costs for some of the name-brand equipment, even though the technology they used was relatively unchanged. At the time, he was determined to avoid APC and a few other brands.

GENERATOR/UPS CONFLICT

The UPS units purchased back in 2016 have been doing their job effectively over the past few years, although I am certain some of the batteries are in need of replacement. I only had one frustration, and that was discovered during a long-term power outage during a hurricane. Due to the cost, our stations currently do not have an automatic backup generator, but instead we use a manual generator during the few times we require it.

Rack UPS with extra batteries

During this particular incident, the UPS units would not power on with the generator due to the ups and downs (or “dirty” energy) that they produce. In order to get the power to the equipment, we had to bypass the UPS units, which can hurt some of the equipment.

One of the key protections of any UPS equipment should be to even out the power, ultimately preventing surges. The challenge is that once you get through an issue like that, sometimes it is moved to the backburner in favor of other issues that seem to be more pressing. We should never hold off on issues that can destroy thousands of dollars in equipment!

Earlier this year, we had a few incidents that brought the issue with our UPS equipment to the forefront. Over the years, the vast majority of our electrical outages have been at night, so we did not witness how well our UPS equipment handled the outage. The equipment typically stayed working, or if the battery died, it came up as soon as the utility power returned.

NOT ENOUGH PROTECTION

Recently, there was an electrical fire right down the street from our studios. It eventually caused the electricity to go out, but my concern started at that moment the fire started. As I watched the lights dim or go bright as the electrical pattern went up and down, I noticed some of our equipment acting in a similar manner. I immediately made sure they were plugged into the UPS, and they were. Ugh!

I was now worried about the thousands of dollars we’d spent on Wheatstone equipment as the UPS was obviously not working properly. Since I could see the incident from my window, I brought down all non-essential equipment and lowered our transmitter power.   Over the next few hours, our electricity went up and down.

A few days later, we had another electrical issue due to weather and a car accident. This time, the power went fully down, and when it returned, the UPS equipment did not turn on. Even though the equipment was not three years old, I decided I had to replace each of our UPS units.

We may have saved money with the UPS purchase three years ago, but it almost became a costly mistake. Luckily, none of our equipment showed lasting impact, so I started the process to purchase new UPS units. I outlined what our needs would be, including ability to handle “dirty” energy, relatively quiet operation (especially for our studio), communication in the event of an outage, the ability to add battery power or hot swap batteries during an outage, the ability to program various levels to shut down equipment that is not needed, as well as guarantees for equipment.

MAKING THE RIGHT INVESTMENT THIS TIME

Since we do not have an automatic backup generator, batteries can help extend the time for us. If we did turn on our portable generator, I wanted equipment that would not require rewiring to get it back online. I decided to go with the SMX series by APC.

Control room with APC UPS

Even prior to ordering the equipment, I started mapping out the electrical needs in each area that would require a UPS. It is important to understand your inputs and outputs, as well as determine what must be protected, but may not be necessary in an outage situation.

I then went and placed my order. I purchased online from a variety of sources, depending on the price of the specific equipment. Between both of our stations, I knew I would have to purchase six UPS units and two additional batteries. I decided we should start with just two and make sure it was the right equipment for our needs as well as determine if changes needed to be made regarding the necessary equipment.

SHOP FOR DEALS

I found a great deal for an additional battery from NewEgg. It was a return that they were selling with original warranty. It had a huge cost savings, so I was worried. The box arrived at my home with the outer layer held together with tape covering virtually every square inch. It was obvious to me that the item’s original box was beyond repair. As I cut through the tape, I was able to find a perfect condition battery unit inside. I would not always advise making such a purchase from unknown vendors, but I have had good experience with NewEgg, so I trusted them. The battery worked flawlessly.

Some of the equipment had the best price on Amazon, so I ordered it there. This caused me to understand why someone had to return the battery to NewEgg, because it is easy to make mistakes! I did. I accidentally purchased the SMT series instead of the SMX. The SMT series is probably a smarter UPS, but they do not allow add on batteries (although you can hot swap them). When I searched the model number, Amazon showed the SMT22000 instead of the SMX2200. I was able to use it, just not in a place where I would have an extra battery.

Another mistake I made was not checking out dimensions of the equipment. I simply assumed the server rack mount would fit easily within our servers. Well, the 2,200-watt model has a much greater depth than our server rack (APC does offer a shorter, double height version). It was not a big deal, but I had to change where I would mount it and removed a door on the back of the rack.

In our main studio, I realized after the fact that a few of our rack areas do not have the same depth. This caused me to have to reposition the UPS backup. It is always a learning process!

The APC devices were fantastic but certainly far from perfect. As I maneuvered these devices, I was able to reduce the equipment required by two UPS units. It required some rewiring of the racks, but not much work. I cleaned up each rack. I then added two Tripp-Lite network grade power strips (one 15-amp and the other 20-amp) as well as utilizing the existing strip built into the rack. One power strip is used for primary or always on power, another is secondary, which would stay on for part of the time and the other was equipment that would not be needed in the event of an outage.

The amount of time I would program in would vary by rack. With some racks, it immediately shuts down non-essential items, while others allow non-essential items to run for 15 minutes or so.

BEWARE OF REQUIRED UPGRADES

I was frustrated that the APC equipment required separately-purchased network cards for some of the functionality I wanted. I was surprised this was true for the SMT, which has an app that can monitor the device through a different network connection, but if you want that functionality, you have to buy the $300 card. It is stupid that the app does not offer the broader functions. Anyway, I was able to locate a used network card on Amazon for $88, so no big deal.

We did find out in our testing process that our new UPS equipment can power even our backup transmitter (it is small). So, after testing, I reduced our number of UPSes from six to four, but purchased an additional battery to allow our equipment to feed our other station as well as operate our backup transmitter for over seven hours.

Today, we have a sophisticated backup power system, even when an automatic generator is still out of reach for our non-profit. We have programmed smart ways of using our power to help protect the equipment but also allow key equipment to be available longer in an outage.

Did we make mistakes? Sure, especially with purchasing no-name equipment in the past. We learned from it and changed gears. In the future, we will be mindful of our cost-savings effort but we will consider the ramifications of those decisions.

Frank Eliason is a consultant helping Fortune 500 brands with customer experience and digital disruption. He is an author and director of operations for Holy Spirit Radio in the Philadelphia area.

——

Read an earlier RWEE series on small generators by Buc Fitch:

Part I — The Good, the Bad and the Noisy
Part 2 — Sizing and Selection: the Big Picture of the Small End of Power Generation
Part 3 — Pragmatics 101: The Big Picture of the Small End of Power Generation

The post Be Smart When Thinking About UPS appeared first on Radio World.

Credit: Getty Images/oleg7799

Let’s normalize post-sunset power levels on the AM band.

In the 1930s, AM radio stations began popping up everywhere. Many were granted 24-hour operation as there was little need to protect from nighttime sky-waves in the beginning. As more and more stations were licensed, we added daytime-only licenses, which meant a station could operate during the day-only because the sky-wave generated at night could cause interference hundreds or even thousands of miles away to a 24-hour station. 

Some stations could operate at night at reduced power, but the lower limit on a licensed station was generally 100 Watts, eventually lifted to 250 Watts for newer stations. Sometimes a multi-tower directional night pattern could allow operation at 250 Watts, but often, the nighttime plant was too expensive to build to be profitable and remain within budget. 

Some daytime stations could not go on at night no matter what kind of directional array they contemplated because of the need for total protection to other stations. They remained at a severe disadvantage, as they would not come on air until as late as 8:15 a.m. local time in winter. After a lot of pressure, the FCC allowed pre-sunrise operation of up to 500 Watts starting at 6 a.m. and going until sunrise. But stations were still required to go off the air as soon as 4:15 p.m., a huge problem. 

After more lobbying, the FCC came up with post-sunset authority (PSSA) and crunched the calculations for all daytime stations to grant night authorizations that would not create substantial sky-wave. The lucky stations were able to get power levels between 50 and 250 Watts, but others were given levels so low that the term “flea power” was adopted for stations allowed in some cases 5 Watts or fewer. 

A classic flea power example would be WHFB(AM) of Benton Harbor, Mich.; because they operate 5 kW days they were only allowed 1.3 Watts overnight service to protect KYW in Philadelphia. 

With commercially available transmitters going no lower than 250 Watts, engineers at the flea power stations had to come up with unique ways to get this level on the air. You younger engineers missed all the fun of trying to make that happen back in the ’80s when post-sunset was new and widespread. Many AM stations had to come up with “unique” and cheap ways to make it work.

Sure, you might laugh at an AM broadcast station running 1 Watt. But if that station’s tower is located in town, the 1 Watt broadcasts could be heard in at least a few neighborhoods. 

IT’S COMPLICATED

However, to get 1 Watt on the air was no easy or cheap task. Most commercial transmitters at the time were tube units with fixed power. For instance, a 5 kW unit might be switchable to 1 kW or maybe down to .5 kW or 250 Watts but not lower. Attempts to lower output below the design limit of the transmitter would often result in very distorted audio and unstable performance. Engineers had to come up with ways to bleed off power and send the remainder to the tower.

The universal method was to make a divider that would send the more substantial portion of the RF to a dummy load, as much as 500+ Watts, and the remaining flea power would go to the tower. This required RF contactor switches, dummy loads that could take continuous operation, and interlocks to pause the high voltage when the divider is switched in. Often a more sensitive RF current meter needed to be switched in to provide a clear indication of line current. 

To complicate matters even further, most stations were allowed to ramp the power down in half-hour intervals before hitting the tiny night output. An example would be a station running 1 kW days, 200 Watts at sunset, 85 Watts in the second half-hour and as low as 1.8 Watts in the second hour past sundown and then 1.3 Watts overnight. Some elaborate custom systems were designed to step the power down by shifting the ratio from the tower to the dummy load.

(I should also note that when trying to get the FCC authorization document for PSSA, which may have been lost over the years, you will find that the FCC only publishes the final night power. The ramp down levels noted in the letters are only available if you call or write the FCC Audio Division and make a request, but I have found they are happy to help.)

Some of us came up with an array of light bulbs to absorb power instead of a dummy, switching on more lamps in as the night went on. But as you can imagine, the impedance of such a system was not always predictable or stable.

Then came along LPB Corp. with a series of low power AM type-accepted transmitters with variable outputs that ranged from the maximum output of 5 Watts to 100 Watts, and each could be dialed back to flea power as needed.

As the major transmitter manufacturers built more modern units, multiple power levels were built into the designs, with most units being able to achieve five or six discrete power levels often as low as 5 Watts. But even the modern units that could do 5 Watts could not easily be modified to do less.   

Then, after a few years, LPB went out of business, and over time the flea-power LPB units failed, mostly due to inadequate cooling, and the cost to repair them was high — assuming the parts could be found. 

MAKING DUE 

All that to say: if a station was granted night authorization of less than 5 Watts and had a newer commercially made day transmitter, they might opt to just turn it down to the 5-Watt minimum and let it ride. Illegal? Technically, yes. But in reality, an FCC inspector would not cite you for this infraction, unless he had ice-water in his veins. 

But the rules are the rules. 

I suggest that we standardize the flea power to a minimum of 5 or 10 Watts for AM nighttime. That way, stations don’t have to fudge or come up with complicated ways to drop to something like 1.3 W, which no currently available commercial type accepted transmitter (that I have found) can easily do. 

I would hazard to guess that even the Class-A lobby would not oppose my suggested change, as the night impact on sky-wave at 2 Watts is not damaged much by increasing to 5 or, maybe, even 10 Watts. 

Also, standardizing the nighttime lower limit will make life a lot easier for stations that cannot maintain some of the Rube Goldberg systems that were designed to allow adequate power waste to achieve such a small output. 

But we will have to wait and see. 

Not every AM station has an FM translator, and some do still rely on flea power for night service. Let’s make it practical, uniform, and legal for all who bear ultra low output authorizations because they do the best they can to serve their area under less than ideal circumstances determined by the laws of physics.

Langford is the owner of WGTO of Cassopolis, Mich., and W246DV of South Bend, Ind. He can be reached at LarryLangford@AOL.com.

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Graham Murray has joined Calrec in the role of business development manager, effective immediately. Murray now represents Calrec in the Middle East.

Graham Murray

In his new position, Murray’s goal is to further develop Calrec’s business in that region.

According to the company, Murray boasts more than 30 years of sales experience across the broadcast, studio and post-production industries in the U.K. and worldwide.

He previously worked for Calrec, managing sales efforts in the APAC region and subsequently worked for Studer with a focus on the Middle East and Africa.

Prior to this, he held sales and engineer roles in the post-production industry for console/DAW manufacturers AMS Neve and Fairlight. Murray also set up and ran his own business distributing and supporting brands in post-production. More recently he established himself as a business development consultant for high-end audio manufacturers.

“Graham’s wealth of technical experience starting out as an engineer at AMS in the 80s, coupled with his extensive experience in the broadcast audio industry make him the ideal fit for this job,” said said Dave Letson, Calrec VP of sales.

“The industry is ever changing, and Graham’s level of technical knowledge and experience will truly strengthen Calrec’s efforts. His knowledge of the region also makes him an incredible asset to Calrec,” he said.

The post Graham Murray Joins Calrec appeared first on Radio World.

GENEVA — Undoubtedly, the FM switch off which took place in Norway in 2017 established an industry milestone.

EBU’s Director of Technology and Innovation, Antonio Arcidiacono, gives the keynote speech at the EBU Digital Radio Summit 2020. All photos courtesy of the EBU.

This was the first time ever FM radio was (legally) kicked out of the broadcast scenario (though some local broadcasters are allowed to remain on FM until 2022). It also marks a line that clearly divides the radio broadcasting era into before and after.

TURNING POINT

From that point forward and up until a few years ago, most broadcast conferences held in Europe had reserved one or more slots for speakers detailing the Norwegian switch off process, its findings and lessons learned. These sessions also discussed results in terms of radio’s growth, audience engagement, receiver sales and what happened the “day after,” etc.

On Feb. 12, the European Broadcasting Union’s Digital Radio Summit, an established late-winter annual meeting in Geneva brought together radio industry executives and stakeholders from around the world to discuss next steps and strategies.

This time however, speakers didn’t focus on the results of the FM switch off for the radio industry and its ability to adapt. Nor did they discuss digital terrestrial coverage advancements in given countries and respective FM shut down dates. The conversation instead veered toward more practical deliberations on implementation and tactics, knitting Norway’s digital transition into the radio’s longer-term history.

“Radio is alive and growing. When you innovate, when you change the way you provide content, people follow you.”

From left to right, panelists Sarah Toporoff of Netia, Cathinka Rondan of NRK, Cheyenne Mackay of SRF and Sinatou Saka of RFI, discuss podcast production, creation and publication.

Speakers still talked about terrestrial broadcasting but in the form of “how-to” discussions.

One example was the topic of using helicopters to install masts and antennas rather than cranes because it’s cheaper. Another was about using open source software bricks to set up audio encoders, multiplexers, modulators as well as the rest of the digital broadcasting chain. It was no longer about “if and when.”

A STEP FORWARD

The takeaway from the Digital Radio Symposium 2020 is that terrestrial broadcasting, analog or digital, is still a part of the game, but it’s no longer a critical item.

DRS 2020 thus took a giant step forward by targeting radio’s future in terms of how to manage content production, distribution and delivery in order to ensure the best results in the ever-changing market scenario. How to establish fluid distribution channels and reach an audience that today is charmed by new, often glittering, listening opportunities.

Notwithstanding the constantly changing backdrop, “Radio is live and growing” said Antonio Arcidiacono, EBU’s director of technology and innovation, in his keynote speech. “Radio has got resilience, it can be an example for other media.”

He pointed out how radio is growing in new markets, like podcasts, where it is growing also in young audiences’ preferences. “When you innovate, when you change the way you provide content, people follow you,” he concluded.

The post EBU DRS 2020 Looks at Radio’s Next Steps appeared first on Radio World.

FM radio, mobile phone coverage and the internet are rarely available on the Orkney Islands in Scotland. This month’s edition features a story on the BBC Research & Development’s trial to assess if 5G can efficiently deliver the missing services to this remote community.

Also in this issue we share a few of TOPradio’s tech tricks on how to successfully managed a live remote broadcast and detail Malawi’s effort to unclutter the country’s FM Band. Read the February issue of Radio World International here!

COMMENTARY

UK Government Restates Support for Digital Radio

Digital Radio UK’s Ford Ennals outlines steps the U.K. government is taking to support radio’s future and its digital transition.

REGULATION

Malawi Reorganizes FM Band

The country’s communications regulator organizes a task force to clean up congestion, alleviate interference.

ALSO IN THIS ISSUE

• Cambridge Consultants Unveils Prototype for Low-Cost DRM Receiver
• TOPradio Hosts Live Broadcast for Black Friday
• Buyer’s Guide: Phone & Talk Show Management Systems

The post Inside the February issue of Radio World International appeared first on Radio World.

Mark Jorgenson is president/owner of Jorgenson Broadcast Brokerage and Eddie Esserman is managing director of Media Services Group. They were interviewed by Suzanne Gougherty, director of MMTC Media and Telecom Brokers at the Multicultural Media, Telecom and Internet Council. MMTC commentaries appear regularly in Radio World, which welcomes other points of view on industry issues.

Suzanne Gougherty: In today’s climate what do you see has the strongest advantage to using a media broker? For instance, we realize that during deals communications can break down and emotions can run high. This is one of many areas where brokers can help bring the two parties back to the table. What other skills to brokers have that many in the industry are not aware of?

Eddie Esserman: In any climate a media broker serves as a good insulator and facilitator between or among the parties. While in some cases brokers aren’t neutral, they are interested (and usually only compensated) when a deal gets done. Brokers know the village of deals and as the saying goes, “It takes a village.” That’s often the case in a deal. We almost always know the attorneys on both sides of a deal, frequently the engineers, consultants, and other parties in a transaction. In some cases, the parties may have been long time competitors and others friendly neighbors, both can hinder a deal’s progress.

Mark Jorgenson: Good brokers bring years of experience to each transaction. While no two deals are the same, experienced brokers have handled enough different situations that they can help the parties navigate whatever may come up in the negotiations. Buyers look at the transaction from their side of the desk and sellers see things from their side. Brokers are often the bridge that connects these two viewpoints. By getting each party to look at the transaction from a broader perspective, there’s a better chance they’ll come to terms and get the deal done. That’s a vital role a broker plays in every transaction.

[Read: How a Broadcast Multiple List Website Got Started]

Gougherty: Please tell us your 20/20 vision for the future of AM radio and how you see it changing for the best or the worst? Are there still enough new entrants to keep the AM dial alive with new innovative programming?

Jorgenson: AM radio definitely has more challenges than FM. It is an older technology and is more susceptible to interference and noise in today’s crowded electronic spectrum. It remains an effective vehicle for many spoken word formats and will likely remain so for a while. But, to be commercially successful, it will need to attract compelling and unique content that can’t be found anywhere else. That will require new talent and new ideas.  Both seem to be in short supply on AM.

Esserman: While there are a few entrants on the AM band, they are virtually all spoken word, and most not being programmed in English any longer. At best the future of AM is highly challenged. I note that Teslas, for example, do not include an AM radio. While I applaud the HD Radio experimentation on AM, I doubt that it will significantly alter the trajectory of the band’s future.

Gougherty: Have you seen an uptick in more new entrants in ethnic populations, or women buying AM or FM radio stations?

Jorgenson: Radio is a great vehicle to reach niche audiences. While many ethnic and foreign language populations in the U.S. live in concentrated areas, everyone is mobile, and radio does a great job of reaching a mobile audience.  Internet and phone apps are challenging radio’s role in reaching ethnic audiences but so long as there is local content that is important to the station’s audience, radio will continue to deliver.

Esserman: A little, but only that. I have seen some couples buying stations, which is great. Radio stations make great family businesses.

Gougherty: What should the FCC consider next for the growth and sustainability of radio in the next decade?

Jorgenson: I believe the FCC understands that radio competes in a very broad media landscape. It competes for audience and advertisers with other radio stations, TV stations, websites, streaming music services, phone apps, Google, Facebook, Instagram, etc. Many of these competitive media are not regulated like radio and therefore have significant market advantages. If the courts would allow more consolidation of radio ownership, the radio industry would be better able to face those new competitors.

Esserman: I believe the FCC is open to further deregulation on ownership caps as proposed by the NAB and any action on that front was at least sidetracked for now by the court ruling this summer.

Gougherty: Has access to capital or financing been an issue for your buyers? And if so what can the industry do to support new entrants — the incubation program?

Esserman: Most smaller deals now do include some element of owner financing. The Small Business Administration, while not an easy process to navigate is a good source. I’ve done deals that included an SBA element. There are consultants that are well worth their fees, to help get deals done.

The incubator idea is a good one. It’s mentoring with a bonus. I fear that as it’s presently in place it will prove cumbersome, hard to benefit the smaller broadcaster who could use a break, and have limited participation. I hope I’m wrong.

Jorgenson: The lack of access to capital is a major problem in radio, particularly for small deals. With the backing of the Small Business Administration, there are some banks that will do a radio deal if the buyer has sufficient collateral and is willing to personally guarantee the loan. Sellers are realizing that, to get their station sold, they may need to do a cash/terms deal and patiently wait for a few years for the total purchase price to be paid. I don’t see the current Incubator Program having a major impact on helping new entrants into ownership.

Gougherty: You both have heard of the “Krasnow Rule,” named after our MMTC vice chair, Erwin Krasnow, which is — “95% of deals get done because the buyer and seller like each other.” Please share an anecdote illustrating the rule?

Esserman: I’ve known Erwin for decades, and the Krasnow Rule was certainly true. When it’s true today it surely facilitates a deal. Over the past decade, I think that’s changed a bit. Often the buyer and seller don’t know each other today. When they do, it certainly helps if they do, or at least get to like each other during the process. When we were a less-consolidated industry owners couldn’t own many stations and had similar numbers of stations, originally no more than seven AM and seven FM? stations. That was broadened to a dozen.

So we are an industry of many individuals who had many opportunities to meet at both state and national gatherings, and friendships and mutual respects ensued. When the industry changed to allow owning hundreds of stations it just wasn’t likely that these larger owners, especially after a few iterations of leadership, would know those who held few properties.

Jorgenson: No one has seen more deals done in our business than Erwin Krasnow. And he’s absolutely correct that having a buyer and seller who trust each other makes the transaction easier for everyone. However, with over 10,000 radio stations in the U.S., most buyers and sellers do not know each other. It’s the broker’s job to help create the trust and report needed to get a deal done.

 

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At a Digital Radio Mondiale stakeholders meeting in New Delhi, India, on Feb. 12, All India Radio (AIR) briefed more than 100 attendees that it has made great progress in its rollout of DRM.

Credit: All India Radio

AIR says that today it has 35 DRM transmitters in the AM band, four of which are now working in pure DRM digital mode.

The broadcaster adds that it has extended the pure DRM hours of transmission for the remaining sites, and that DRM transmission has also allowed for the broadcast of more varied content.

With this progress, representatives of the chipset, receiver and car manufacturers say they would like to take greater advantage of what DRM has to offer.

They have asked that a framework be developed to bring DRM to the public, with clear milestones and a clear launch for DRM. AIR said that it is planning to develop a multiplatform publicity campaign to launch soon.

[Read: The Power of Digital Radio During Emergencies]

AIR also used the meeting to make additional announcements like the conversion of six more high-power medium wave transmitters to DRM. The broadcaster further highlighted the increase of pure DRM transmission times, the possibility of sharing airtime with private broadcasters and enabling the DRM emergency warning feature in conjunction with the Indian disaster national agency.

“With communication, cooperation and confidence, AIR, with the support of the various committed stakeholders in India, some of which are consortium members, can set a launch date to make available all the DRM benefits to the Indian population,” said Ruxandra Obreja, the DRM chairman.

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The author is membership program director of the National Federation of Community Broadcasters. NFCB commentaries are featured regularly at www.radioworld.com.

Is it that time of year again?

President Donald Trump has introduced his proposed 2021 budget. Once again, the White House proposes eliminating public funding for educational broadcasting, except for two years of funding for wrapping up loose ends of legacy support.

Slashing public broadcasting has been in every White House budget since Trump took office. The president’s full budget will be released in the spring. Then, Congress will then have its say.

[Read: Community Broadcaster: Coming Down on Content]

Each year, lawmakers have spurned the president. It is reasonable to assume amendments will happen again in 2020. Moreover in a presidential election year, when voter energy is especially passionate, it is likely cuts like public broadcasting won’t make it to the final budget. The bottom line is many in Congress are worried about their races. The budget is already a hot potato. Public broadcasting enjoys wide support among everyday Americans. Every incumbent’s record will be excavated by opponents. Savvy politicians are unwilling to give their rivals ammunition.

However, the left-field nature of the budget deserves attention.

Most Americans have heard of public broadcasting through public television and radio. It is doubtful many know how much federal funding goes to such programming. The interest group Protect My Public Media estimates funding represents .01% of federal spending. The grand total? This funding amounts to about $1.40 per American annually.

The White House contends federal funding is no longer necessary. In the budget, the administration zeroes in on the large public media brands in its justification for cuts. “Services such as PBS and NPR, which receive funding from CPB, could make up the shortfall by increasing revenues from corporate sponsors, foundations, and members,” the proposed budget reads. “In addition, alternatives to PBS and NPR programming have grown substantially since CPB was first established in 1967, greatly reducing the need for publicly funded programming options.”

CPB counters these assertions by noting the diversity of public broadcasting.

In a Feb. 10 statement, Patricia Harrison, president and CEO of the Corporation for Public Broadcasting, said, “Through public media initiatives such as American Graduate and Ready To Learn, stations provide high-quality educational content and community engagement that helps Americans prepare for success in school and career. As the most trusted news source in America, local public media stations offer journalism that elevates local stories to a national audience. Further, public media stations’ infrastructure provides critical communications functions during local and national emergencies to first responders and emergency management officials.”

At heart is a need for common ground. If we agree in the importance of funding education, and the value in media as an educational tool, how can we support a system that we agree on?

In addition, one can ask that there is a greater commitment to expanding our nation’s investment in educational media. CPB does so much with its resources, but it is evident that it needs to be able to support many more initiatives. Media is so ubiquitous today. For the next generation, students go to the internet as often as they hit the books. Policymakers must look into expanding educational media funding to ensure the United States stays strong and creates even more opportunities to learn.

It seems highly unlikely many of the decreases Pres. Trump wants for the 2021 fiscal year will pass. Nevertheless, it is important for every station to speak loudly about the educational purpose they serve, and the need for the country to keep educational broadcasting part of its education arsenal.

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