Arbitron Knew of PPM Encoding Flaws

INSIDE …

  • Exposed – this unbelievable evidence from a respected expert in audience measurement that Arbitron went ahead with PPM even though they knew it would hurt audience estimates. This will make you mad.
  • What Nielsen has up its sleeve with their Canadian counterpart (that licenses its PPM technology) banning encoded signal enhancer Voltair.
  • How Nielsen will handle the fact that loud music stations get their encoded signals recorded more than soft music, news or talk stations.
  • Hundreds of stations have invested $15,000 in a Voltair unit that improves the strength of their encoded signal – what is likely to happen to them.
  • The legal ramifications of Arbitron/Nielsen concealing evidence that PPM was flawed and should not have been brought to market.
  • For the first time – the actual degradation of each rating point using PPM compared to diaries that may just send advertisers running to streaming music services.

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Credit Lenders Demand New Radio Cutbacks

INSIDE …

  • How the shift in influence from money investors to credit providers is starting to change the way radio is being run.
  • The things credit guys (and gals) are paying attention to in radio. Cutbacks, but where?
  • Why even a gargantuan sum of $20.5 billion in iHeart debt doesn’t scare a lender as much as this one scenario does.
  • The kind of startling moves station employees can expect next.
  • The new normal – what credit lenders will gladly settle for in lieu of healthy revenue numbers.

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Prepare For 10-20% Across the Board CBS Layoffs

INSIDE …

  • We now know the months when the big layoffs are coming – consider this a “heads up”.
  • One of these groups will be hit the hardest – sales, programming or market managers. What CBS corporate decided.
  • Unbelievable examples of some of the positions CBS is considering non-essential.
  • Large markets or small? Who goes first.
  • How CBS intends to use “Hamburger Helper” to make the firings go further.
  • The prospects for subsequent layoffs in the works or is this a one and done.

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Which CBS Markets Will Take the Biggest Hit

INSIDE …

  • The markets most likely to be traded or sold.
  • The “safe’ markets, but keep in mind some of the so-called “safe markets” are also for sale. Here are a few notable ones.
  • Exceptions: some markets have stations that CBS Radio will trade or sell right now if the right offer comes along – markets ripe to be picked.
  • Why the employee cutbacks have to be so massive – we now know that answer.
  • Are markets where CBS also owns local TV stations still considered safe.  It’s complicated.
  • What about Hubbard buying some of the CBS all-news stations.

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Google’s New Ad-Supported Radio

INSIDE …

  • Google this week, Apple next week, Spotify already, Pandora for sure and many more streaming services bombard music radio – what to do?
  • With Google and Taylor Swift pushing Apple into freemium, why is free radio gaining an advantage.
  • The most powerful person in the music industry to keep an eye on.
  • The one thing streaming music services can never do that radio stations can but are not.
  • The six forces that have eroded radio listening (five music-based, one spoken word).
  • Why Google could buy Twitter and add a new dimension to streaming music services and create a digital record promotion machine.

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Why CBS Radio Is Slashing Costs This Late

INSIDE …

  • It’s the best group of stations in radio, why risk dumbing it down with cheaper programming and cutbacks at this point – a decade after competitors have tried it? Here’s your answer.
  • Exactly what is going to be sold and what will be kept.
  • Latest on Cumulus’ reported interest in buying CBS Radio.
  • The fate of the iconic CBS all-news stations now.
  • Their sports stations are in for a rude awakening – explained here.
  • CBS’ new position on music-centric stations.
  • Where does Scott Herman fit in – he and Mason built this city on rock and roll but the suits and bean counters are coming to take it away.
  • Career advice for current CBS employees who have managed to avoid these major cutbacks – until now.

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iHeart’s 2nd Half Game Plan Revealed

INSIDE …

  • What about selling more assets to raise cash and reduce expenses?
  • iHeart’s expected response to this new competitor Apple Radio.
  • A go-to non-radio way to bolster expected declines in radio revenue.
  • Their ingenious – if not sleazy way to not only stop burning through cash but start stockpiling it without ever having to increase revenue – this is pure Pittman.
  • iHeart’s plans ahead for digital.
  • Their position on layoffs for the last six months of the year including the dreaded annual Christmas firings.

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Massive Cuts Coming Soon To CBS Radio

INSIDE …

  • The status of these cutbacks and the time frame for them to be enacted.
  • Examples of how deep and big the cutbacks will be in a few markets where they are underway now.
  • Unthinkable iconic CBS formats will be gutted – details.
  • Startling format changes are coming to save money.  Here’s a big station that’s not long for this world. Unthinkable a year ago.
  • How CBS lawyers are paralyzing the radio group.
  • Dumbed down programming is on the way – it started already last week (some examples).

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The Brian Williams Solution

PREVIEW

  • How NBC failed to make the right choice about Brian Williams.
  • Two key things Comcast NBC did not learn about its generational future.
  • Why NBC slammed the door on ever getting younger Millennial audiences.
  • How Glenn Beck’s Blaze TV which is teetering on the brink is making the same mistake as Comcast NBC.
  • Why traditional media (radio, TV, print) can’t seem to do the one thing that is critical to winning over younger demos – here it is.

Read the full article now.

Twitter Is Done, Social Media Disruption Underway

PREVIEW

  • What the decline of Twitter portends for radio stations struggling to attract younger listeners.
  • The four rising (and surprising) social media platforms where you want your station to be.
  • Specific adjustment radio stations should make to appeal to fickle Millennials to avoid the same fate as Twitter.
  • What should Twitter do to make its business profitable?
  • It’s the same “killer app” that would make radio a hit with Millennials.

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A Little Known Extra Advantage of Voltair

Here are four startling things (below) I’ll bet you don’t know about the Voltair / Nielsen smackdown.

Yes, Voltair makes digital encoding stronger so more PPM listening is credited to stations that install their device.

Now, this – an extra benefit that will blow away competitors without one.

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  1. The “other” competitive advantage that is almost as sweet as putting out a stronger coded signal for People Meters.
  2. Will Nielsen ban the Voltair code-enhancing unit from station use – yes or no?
  3. What a Voltair unit does besides boosting station encoding for better ratings – this has already started a pissing match between stations as you’re about to see.
  4. The major radio group that has just started hedging its bet on adding Voltair to get better time spent listening.
  5. What Nielsen is doing in the middle of this controversy over its encoding technology that directly affects diary markets.

The answers start here.

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iHeart Moves to Salaried Sellers

How many radio CEOs does it take to screw up a perfectly good industry (we already know how many it takes to screw in a light bulb)?

Another disincentive for selling radio is born.

But this one is worse than it sounds.

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  1. The new compensation plan – The revised transactional, direct and digital rates commissions that will come with a salary.
  2. The first victims – Different city, but implemented by one of the top regional managers.
  3. What goes next – Four money saving plans bound to make sellers nervous enough to leave.
  4. Other scary experiments – The plans iHeart is testing in the field to cut sales expenses.
  5. Commissions and bonuses – Word from the inside on iHeart’s current thinking.

The answers start here.

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Audience Measurement Shocker Coming

It’s bad enough that Nielsen ratings are expensive, unreliable and flawed.

Now it appears that something major could be in the works soon that will add another headache and stir up more controversy.

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  1. Details – How Nielsen is already ramping up a disruptive move so big it will affect every broadcaster.
  2. Time frame – When the other shoe will drop.
  3. Their strategy – Why Nielsen feels it is so important to risk pissing off influential clients who pay them hundreds of millions.
  4. Repercussions – What Nielsen is preparing to do if compliant client stations do not play nice.
  5. The Best defense – Once they slap you, what’s the best way to hit back other than cancel, which is really not an option.

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Owners Targeting Zero Local Programming

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Next Conference

Ria Denver

I didn’t know her personally but Ria was a powerful partner.

Ria Denver was co-founder of radio and record’s most dominant publication All Access.

As a one-time trade publisher let me tell you just how significant what she and Joel did.

Today All Access looks like a natural thing.

But Joel left Radio & Records and in the mid-90’s he and Ria had the foresight to see the promise of the Internet. Back then most trade publishers were still printing and faxing. I know, I was one of them.

They turned All Access into a huge tent in which all types of entertainment business people were not only welcomed but also encouraged.

Their All Access carried everyone’s story and Joel and Ria where only too happy to help people in this business succeed. They were unabashed lovers of radio and the music industry.

Ria passed away Thursday morning in Santa Monica at 60 of an apparent heart attack.

In her obituary on All Access grieving staffers praised her for many things but emphasized that she was a friend, mentor and confidant to them:

“It was in this capacity as a one-woman support system for each member of her ALL ACCESS family that RIA found her greatest joy at the company, and it is in this capacity that everyone here at ALL ACCESS will miss her the most”.

On a personal level such loss is unimaginable. My friend Jim Carnegie lost his beautiful wife, Cathy (and Radio Business Report business partner) several years ago – suddenly, the victim of a brain aneurysm.

Radio is a mom and pop business.

A great mom and pop business founded by unique people who believed and willed it to success.

One year after All Access was started the Communications Act of 1996 was passed which carried a provision that opened the door to radio consolidation.

But most people didn’t even have email back then and when they did it was through AOL.

All Access arrived first with only the belief that an Internet-only trade publication could be successful.

Today it’s a no brainer but back then it was a strategy that Ria and Joel followed right into the present.

Most marriages would be considered successful if the two partners built a meaningful life together.

But Ria and Joel Denver also built a virtual meeting place for everyone who loved the music and radio business.

The love that they showed to the industry is surely being returned to Joel today in his time of great loss.

John Dickey Expose

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What Should Replace Radio?

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Apple’s New Live Radio Vs. Consolidated Radio

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Read This Before You Respond to a Radio Job Opening

Most of the radio groups – even some of the good ones – are trolling for future employees they have no intention of hiring.

This is one F-upped industry for sure but the latest diversion from good radio is not just laughable, it’s dangerous if you happen to be looking for employment.

You could lose your current gig if you apply to these radio groups, which would please them just fine.

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  1. A surprising list of which radio groups are the worst offenders in trolling for employees who are currently employed by competitors.
  2. Details – how the scam works.
  3. Beware of Twitter – one group is suckering competitor’s employees for non-existent jobs by asking for resumes. Here is one that should scare the hell out of any decent radio person looking to make a change.
  4. My 5 rules for safely looking for work in an industry that can’t be trusted.
  5. They wouldn’t lure you into applying and then get a case of loose lips, would they?

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My New Apple Watch

It’s been a week since my Apple Watch arrived.

I got the middle one because the screen doesn’t scratch.

The problem is – I hardly ever wear a watch. And when I do it is a thin tank watch that is light and hardly noticeable.

Still, I don’t want to study and write about generations without trying to know firsthand what I’m talking about.

The music blogger Bob Lefsetz sent out a fairly glowing email Saturday telling his many subscribers “You're gonna get one. You just don't know it yet.”

Then about eight hours later Lefsetz changed his tune once he got to know his Apple Watch. He said, “It’s a lousy watch”, “I can’t see it” and concluded, “My heart says to keep. My brain says no”.

Why the sudden change?

And why am I writing about a watch? You know radio people, if it’s not about a car radio, they’re really not worried about it.

They should be.

I thought Lefsetz was constipated he was so bitter. Don’t get me wrong – I love readying his stuff. He’s so right on when it comes to the music industry and lots of other things but he woke me up for a moment and reminded me why the Apple Watch will fail.

It’s for young people and he’s 60ish.

Young people can’t wait to get one on their wrists but a little thing called money gets in the way.

I saw a man Lefsetz’ age in the Apple store Saturday. And he wisely spent a full hour of premium One-on-One Service ($99 for the year) for a young sales clerk to teach him how to use it.

He left happy.

I am an Apple fan boy – and I still own a lot of their stock but you already know that.

Okay, here are my initial thoughts about the Apple Watch:

  1. It feels heavy on my wrist. I am aware of it. It pinches the hair on my arm sometimes and yet I love that it taps my wrist and rings softly when I get a new email or text message.
  2. And this I LOVE – text me and I can answer on my Watch. Just dictate the response and Siri spells it out for me to approve or I can send it in my best radio voice.
  3. You can’t use it to listen to music, which doesn’t interest me, but it sure interests a lot of other people. My plumber says he wants one because when he is working he can hear music on his wrist whichever sewer he happens to be working in (yes, he was working all day Thursday in a sewer).
  4. At lunch, my watch reminded me to get up and move. Sitting too long. It tells you how fast your heart is beating and lots of more serious health apps are on the way. The joke is that it will someday tell you in advance if you’re having a heart attack. For me, that heart attack would come when iHeartRadio stopped running 16 minutes of commercials an hour. That sounds like s@#t on an Apple Watch. Just sayin’.
  5. I flew from Philly to Phoenix Sunday and in flight had to disconnect from my iPhone, which is necessary to make notifications work on your watch. But it still told time and allowed me to track my 4 hour and 28 minute flight. Come on, you think the Apple Watch is a watch? A piece of jewelry? No way.  It’s a mini-iPhone on your wrist.
  6. Another great use for the watch -- I can see Mike McVay make an ass of himself on Twitter asking why female program directors never apply to work at Cumulus. Hmmmm. Let me see …
  7. I get 300 emails a day. Now I can dismiss them or mark them as unread on my wrist so I have more time to write these articles for you.
  8. Can’t get the Internet on the watch and even so it doesn’t make you less distracted when you drive. We’re all too distracted and this watch doesn’t make that any better.

My problem is not that I don’t like it – quite the opposite.

It’s that I had better figure out how to get balance in my life with a laptop, iPad, iPhone and Apple Watch. My life is all in the Cloud and I need to remember to get back to earth.

Still, rejecting connectivity is not my mindset and I am devoted to using the Apple Watch as a tool for balance and not just another distraction.

If you’re done with any more technology, I’m down with it.

It’s your life.

My media friends should give it a try – after all, you’re not a dinosaur.   Okay, some of you are, but not all.

If you plan on living in a world more and more influenced by 95 million Millennials, you have to be careful you’re not left to your own devices when theirs are so much cooler.

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iHeart – The Next 3 Months

iHeart’s Rich Bressler’s nose grew like Pinocchio when he talked about the future of the company.

The most believable of the outrageous things he told a Morgan Stanley meeting is that he and Bob Pittman are committed to keeping expenses flat.

We now know how they plan to do it.

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  1. Specifically how Bressler and Pittman plan to keep their promise to investors to flatten expenses.
  2. Why the next three months are the most critical of the year to management.
  3. You’ll find that the much touted programmatic buying that iHeart champions will have virtually no effect on cutting expenses over the short haul. Here’s what will.
  4. The reason behind all those “Help Wanted” ads you are about to see for iHeart positions – and what to be cautious of if you’re thinking about applying.
  5. Two jobs iHeart is rethinking as they flatten expenses further.

The answers start here.

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My next media conference is April 6, 2016 in Philadelphia.

Talk Now Relegated To Translators

SUMMARY

  • What will be the expiration date for the talk radio format
  • The extent to which podcasting is starting to eat in to talk station ratings
  • The one fix that would make talk more popular with younger demos

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Radio Owners Who Won’t Make It

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Caitlyn Jenner

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Apple’s New Music Service

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