Sports Betting Set to Disrupt Local Revenue

  • The one really positive thing in radio revenue for major markets is the nascent category of sports betting.
  • Some groups like Audacy are hitting it out of the park and others like Cumulus find themselves in the unenviable position of breaking up with their big sports betting sponsor shortly after the wedding.
  • The category’s strength is standing up to time although there are certain areas of concern that are being watched closely.
  • Among them: which sports betting markets are the most desirable and the ones likely to keep pumping money into local radio.
  • And there is a cryptocurrency angle (don’t worry if crypto puzzles you, my NYU students are grappling to understand the new currency) but one radio group is betting their future on becoming a cryptocurrency player in sports betting.
  • The leaders in sports betting revenue are Audacy, iHeart and Beasley – what they’re doing is worth watching closely.

Read the full article here

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Newstips

Why Public Radio Is Kicking Ratings Ass

Have you been noticing how public and NPR stations are beating commercial competitors and even winning top rank in Nielsen’s lately?

It’s no accident – a convergence of stupid radio tricks, public radio’s good fortune and some very shrewd programming in the digital age.

I’ve isolated 8 contributing factors that – like it or not – commercial competitors are going to have to deal with from now on.

I know, public stations have no commercials but they also tend to have no debt and believe it or not that’s NOT the main reason for public radio’s ratings success.

And they are generally too poor to beat commercial competitors with more local programming, so why is this trend building?

One clue is that there is a “new local” and public stations are getting good at playing it.

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Newstips

Bill O’Shaughnessy: An Appreciation

Over the weekend, the quintessential local broadcaster William O’Shaughnessy passed away at 84.

I have known Bill O’Shaughnessy since I first founded Inside Radio.

He was a great and active supporter who has always subscribed and he has always been a great fan.

He’d call and shout “Hey Del Colliano” or “Professor” and engage me in one of three intellectual pursuits – local radio, the First Amendment and Bill O’Shaughnessy.  I wish you could have heard those calls over the decades.

When Cheryl and I got married 24 years ago, Bill attended our wedding in Philadelphia but he was also responsible for recommending the 12-piece society orchestra with three vocalists from New York who knocked them dead at the celebration.

But I paid the exorbitant fee – twice!  Once for my wedding and again when my daughter married, she begged daddy for the same orchestra Bill recommended which I then hired to fly in to Phoenix and bingo, the same magic.

We argued about politics but it never got nasty – oh, maybe I accused a smart guy of being beholden to dumb politicians, but how could I mean that – he knew.

And as hard as he tried, he could never make me like the NAB – I like and liked a lot of the dedicated people who work there, just not their misguided mission to suck up to the greedy bastards who ruined the radio business.

I can see Bill in heaven right now, saying “but wait, professor” – he never gave up trying to talk “sense” into me.

The first time I received a package from his two small local Westchester stations I was impressed with his money until I opened it to read a self-published “ratings” booklet with the names of local, national and prominent politicians waxing eloquent about his stations – pure genius.  No numbers.

I read on and saw my name in there with a quote from me – I made his self-published ratings book.

Actually, Bill was ahead of his time here as well because he was an ‘influencer’ before social media made it popular.

On the First Amendment, he was rock solid – if he was wrong, he erred on the side of everyone who disagreed which made him right in my book.

On local radio, he never put syndicated political talk on his station the way most owners do, he never admitted that AM was declining, he was a “towny” and proud of it in the elite surroundings of Westchester, NY. 

And he didn’t sell the stations.

Bill, you (I know you’re listening) were right about local radio – you made it work, lived it, breathed it, celebrated it while your competitors were selling out to the highest bidder.

I could go on, but there’s one thing I saved for last.

Bill – the master publicist – would snail mail the appreciations he wrote or delivered at the funerals of prominent people.

It doesn’t take a writer or a professor to appreciate his masterful use of words including descriptive adjectives, colorful words and action verbs.

He made the dead come alive again in all their glory if only for a few short minutes.

I know no equal to Bill’s ability to celebrate a life in words so it would be heresy to even try absent his many skills. 

So, I suggest everyone cancel all plans to leave the earth, brother Bill has left us for another local market higher up and there will be no one to stage a fitting farewell.

Instead stay here and fight for First Amendment rights and the viability of local radio both causes in which he devoted his life, passion and God-given gifts to keep his ‘tribe’ focused on what’s really important.

Jerry Del Colliano is a professor at NYU Steinhardt Department of Music and Performing Arts Professions Music Business Program.  His background includes Clinical Professor of Music Industry at the University of Southern California, TV, radio, program management, publishing and digital media.

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Radio Groups Prepping for Recession Firings

iHeart used the nascent pandemic in early 2020 to fire an estimated 1,000 employees and that was following a pre-pandemic cutback of about the same number.

Audacy was the most aggressive firer of all radio groups in 2021 due to its inability to hit its revenue numbers or equal pre-covid statistics.

Cumulus shrunk Westwood One, pared down its local stations through the use of voice tracking and syndication.

We’re one quarter away from an official recession which is defined as two consecutive down quarters in the real gross domestic product (GDP), an inflation-adjusted value of the goods and services produced in the United States.

The first quarter of this year was down 1.4%.

The second quarter which should become evident in July could be two in a row.

Some groups will jump almost immediately and others will take a short wait-and-see but there is a sense of what order the radio industry will see a return to layoffs.

Read the full article here

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Newstips

The Knives Are Out for TSQ’s Bill Wilson

Townsquare CEO Bill Wilson is an outlier who is mercilessly sticking it to big group radio executives who can’t match his production and they don’t include him in their club nor do they feel inclined to imitate his success.

Truth to be told, he really pisses off his competitors.

His Townsquare is positioned as “digital first” and then he does the only major radio station acquisition of the year – which is it, then, “digital first” or “radio first”?

Some of his competitors have given him the cold shoulder because he is winning along with iHeart and Salem.

And they haven’t even seen what he’s about to do next.

Read the full article here

Radio’s Answer to SiriusXM’s $150 Million Conan Deal

It looks like the penny-pinching SiriusXM is throwing John Malone’s money around in the unproven area of podcasting.

SiriusXM dropped $150 million on Conan O’Brien’s podcasting ventures – and threw in a dedicated Team Conan channel in a five-year agreement that looks a lot like the successful arrangement they had with Howard Stern who arguably put them on the map.

Crazy money considering what they could have done with the $150 million if they spent it on their many programming channels instead of cheap talent and computer driven formats.

Is SiriusXM starting to hedge its radio bet? 

They’ve already outspent their radio competitors except for iHeart which begs the real question why is everyone willing to spend on podcasts while investing in better radio programming seems like so 1990’s.

Debt-ridden radio companies can’t spend Sirius kind of money on podcasting without tanking their stock and meeting resistance from investors.

But radio they have an answer – the question is, is it the right answer?

Read the full article now

Newstips

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iHeart To Sell More of the Company

If you’re tempted to see iHeartMedia as a recovering, mega-platform of audio options for future advertisers, you may want to reconsider.

iHeart is a fabulous radio platform in spite of their CEOs pivot to audio – in fact, they grew their radio revenue from Q1 2019 to Q1 2022 ($765 million to $843 million).  It’s a solid performance and clearly superior to peers. 

But iHeart is in play in a different way than some of their competitors.

They would be flying high if it were not for their unacceptable $6 billion in debt so like it or not, iHeart is a takeover candidate.

John Malone’s Liberty tried to steal the company and now UK-based Global Media is publicly courting iHeart with the iHeart lenders still clearly in control.

Global’s investment plans are as important as iHeart’s plan to handle any takeover on their terms – whether they succeed or not, time will tell but now we at least know what those terms are.

Read the full article now

Newstips

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Where’s Warshaw Now?

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  • Where is Jeff Warshaw weeks after his failed takeover attempt of Cumulus – player or tire kicker?
  • What I think is going to happen next.
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            ‘Zonecasting’ – The Next Radio Debacle

            Susan Larkin’s Eventual Audacy Replacement

            Competitors Call BS on iHeart’s Financials

            Wells Fargo Repudiates Audacy Management

            Audio First Bombs

            The Fallout of Streaming

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‘Zonecasting’— The Next Radio Debacle

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  • The digital streaming model that turns “broadcasting dollars into digital dimes.”
  • Technology over local programming – the consequences.
  • Seamless repeaters putting limited amounts of programming and/or commercials targeting different geographies inside the larger Metro.
  • How public stations are climbing above their commercial competitors’ rating rankers thanks to Nielsen – will the same be true for ‘zonecasting’?
  • Geography is only one factor – and maybe the least important – for advertisers who enjoy cheap, highly-targetable advertising in digital stream.

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Susan Larkin’s Eventual Audacy Replacement

  • What’s up with COO Susan Larkin?
  • The person Audacy employees are talking about as her eventual replacement.
  • The one radio exec who could turn Audacy around in 12 months.
  • Will it come soon enough with bankruptcy, cost cutting and debt issues looming?

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Competitors Call BS on iHeart’s Financials

Wells Fargo Repudiates Audacy Management

Audio First Bombs

The Fallout of Streaming

iHeart Rushing into NFTs

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Competitors Call BS on iHeart’s Financials

  • Our panel of former and current radio CEOs who know how to break out financials and nail Bob Pittman’s 1st quarter misinformation.
  • How iHeart incorrectly keeps claiming revenue growth.
  • The CEOs correct Pittman on profit, digital and podcasting.
  • Their shocking discovery about iHeart cash flow.

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Wells Fargo Repudiates Audacy Management

Audio First Bombs

The Fallout of Streaming

iHeart Rushing into NFTs

Music Discovery Shocker

Audio First Bombs

New evidence shows the big three missed the one name that could reboot radio

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iHeart Rushing into NFTs

  • You may know NFTs as digital artwork that makes headlines when it sells for crazy sums of money – why iHeart’s Bob Pittman is going balls on in for NFTs even as The Wall Street Journal says sales are flattening.
  • Wait, wait – don’t tell Pittman that Coke, Pepsi and Budweiser are getting in big time and he wants to create audio platform products to further drain money from competitor’s radio buys – his plan.
  • Here’s an easy way to understand the definition of NFTs and that dirty word blockchain.
  • There’s money in it for radio but it’s local not national – here’s a link to a list of opportunities.

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Music Discovery Shocker

  • You may want to sit down for this but in a recent NYU student research project, Tinder beat radio for new music discovery – yes, Tinder, the dating app and here’s why.
  • Older folks who were radio’s sweet spot appear to be moving away from radio to streaming – apps like Spotify – why these radio holdouts are increasingly preferring streaming services of all things.
  • Younger demos are preferring YouTube – there’s a major reason for this now.
  • All is not lost for radio but some innovation is overdue – here’s one way to quickly get back into the music discovery arena even with big commercial loads.

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The Cumulus Takeover

  • We contacted top radio execs who have experience acquiring stations, they say the Cumulus board should have taken Warshaw’s money and run – here’s why they didn’t.
  • Those same execs broke down the real Cumulus numbers for you to read and have concluded the company Warshaw was willing to pay $15-17 a share for is actually worth $7 a share or even less – read their notes and numbers.
  • Just in case Warshaw comes back and offers more money for a company that was worth far less than his financial group was willing to pay, here’s why the deal still doesn’t work.
  • Why shareholders may be contacting their lawyers even as we write this.

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The Cumulus Bill of Goods

Cumulus stock went through the roof yesterday even as the Dow lost over 1,000 points. 

  • What’s driving so much interest in Cumulus?
  • How Mary Berner made over $200 million in debt disappear without paying it down.
  • Why the recently rejected Warshaw takeover attempt is a time bomb waiting to go off.
  • The misery Jeff Warshaw can still make for Mary Berner, the person who holds the CEO job he’s always wanted.

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Warshaw’s Next Move

INSIDE …

  • The likelihood of a second Warshaw offer.
  • The part of Cumulus’ $50 million stock buyback announcement they are keeping to themselves (until you read it).
  • My deadly honest POV: What does Warshaw want with a company that has over $1 billion in debt, that still cannot match its pre-covid revenue in an industry struggling with declining revenues?  The answer.

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