Radio+Television Business Report

On August 6, 2020, the FCC voted in favor of an order that eliminates the radio duplication rule for AM stations … and FM stations. This marked a change from just three weeks earlier, when the Commission signaled it would uphold the rule for FM stations.

The move was pushed by the NAB. The FCC’s Republican majority said eliminating the radio duplication rule “will help struggling stations stay on the air; afford broadcast radio licensees greater flexibility to address issues of local concern in a timely fashion, particularly in times of crisis; assist with format changes; facilitate a potential voluntary digital transition in the AM service; and ultimately allow stations to improve service to their communities.”

That failed to satisfy REC Networks, the musicFIRST Coalition and the Future of Music Coalition.

On November 30, 2020, the groups teamed to file a Petition for Reconsideration of the Report and Order. Their big beef? The sudden re-inclusion of FM stations in the R&O.

For REC, musicFIRST and the FMC, eliminating the rule for FM stations will lead to a reduction in programming diversity and “encourage corporate radio owners to hoard spectrum.”

NAB General Counsel and EVP/Legal and Regulatory Affairs Rick Kaplan disagrees with that assertion. He laments that their arguments “exhibit a complete misrepresentation of the business fundamentals of the radio industry and the intense competition radio faces, and a total lack of understanding of the market value of AM/FM radio spectrum.”

There’s more: the NAB sees musicFIRST and FMC file in Commission proceedings concerning radio “not because the companies and organizations those groups represent care about the proceedings at issue, but rather to retaliate against broadcasters for those groups failing to convince Congress to enact a tax on radio stations when they play (promote) record labels’ music on terrestrial radio stations.”

This set up the basis for the NAB’s request that the FCC deny the groups’ petition as it “does not raise issues not already considered and rejected by the Commission.” Further, Kaplan states, the three groups “also fail to mention – let alone grapple with – the incredible growth in audio diversity since the radio duplication rule was created.”

How so? “Since 1992, more than 15,000 additional full-power and low power radio stations have launched service, the growth of online streaming music services has shattered expectations, and satellite radio has reached more than 34 million subscribers,” Kaplan says. “All of these outlets provide a broad range of programming options.”

While the Republican-led FCC passed the R&O, it didn’t come without the concerns of Democratic Commissioner Geoffrey Starks. In fact, his concerns could have given rise to the Petition for Reconsideration.

“I have concerns that today’s decision will undoubtedly make it easier and more cost-effective for large station groups to hoard local stations without any obligation to provide significant programming that meets local community needs,” Starks said in August. “Moreover, I fear it will reward ownership consolidation and thus will likely exacerbate an already huge disparity in the number of media outlets owned and controlled by people of color and women, which often translates to a lack of locally relevant and diverse programming that addresses local needs and interests.”

The Mentoring & Inspiring Women in Radio (MIW) Group has opened the application window for the 2021 Mildred Carter Mentoring Program.

Established in 2002, the MIW’s heritage annual mentoring initiative connects mentees with accomplished women recognized as leaders, mentors, and game-changers within all aspects of radio broadcasting; vCreative is sponsoring the program for the second consecutive year.

Four candidates from the radio broadcasting industry – within the sales, marketing, programming, and digital disciplines – will be selected for the 2021 program.

The deadline to apply is January 29, 2021.

For mentee criteria, and instructions on how to apply, please visit https://miw.secondstreetapp.com/Mildred-Carter-Mentee-App-2021/ .

To view a sampling of past Mentees visit: https://www.radiomiw.com/mentees

Entercom Vice President of National Partnerships Lindsay Adams, chair of the mentoring program and a 2009 Mentee, calls the mentoring program “instrumental in providing guidance, leadership, and bridging connections within the industry. From personal experience, I can attest it’s an invaluable experience that helps shape and curate career paths and potential.”

The MIW Group Mentoring Program is named in the memory of Mildred Carter, who, along with her husband, Andrew “Skip” Carter, founded the first African American owned radio station in the U.S. in 1950, when they turned on KPRS Kansas City, Missouri. Mrs. Carter ran the Carter Broadcast Group for many years after the death of Skip Carter, before turning over control of the company to her grandson, Michael Carter in 1987.

EUREKA, CALIF. — In May 2006, Cox Communications completed its sale of cable television systems serving customers in West Texas, a portion of North Carolina, various communities across the middle of the U.S., and the California markets of Bakersfield and Eureka-Arcata.

The buyer? Cebridge Connections, with majority investors Oaktree Capital Management and Goldman Sachs. Once the deal closed, Cebridge changed its name to Suddenlink.

Nearly 15 years later, ex-Cox customers in one of those DMAs could, ironically, soon lose access to broadcast TV stations owned by Cox Media Group.

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According to Atlanta-based CMG, today majority-owned by Apollo Global Management, SuddenLink may soon make what it calls “an anti-consumer decision” by dropping channels serving viewers in Tulsa, Memphis, Spokane, and the smaller markets of Greenville-Greenwood, Miss.; Alexandria, La.; and Eureka-Arcata, Calif.; in the absence of a new retransmission consent agreement.

Specifically, the stations potentially impacted by a retrans impasse between Suddenlink and CMG are FOX affiliates KAYU-28 in Spokane, WHBQ-13 in Memphis and KOKI-23 in Tulsa; ABC affiliate KLAX-31 in Alexandria; and the ABC, FOX, NBC and CBS stations serving Greenwood and Greenville, Miss.

However, it is the Humboldt County, Calif., stations that present an ironic twist for Cox. Fifteen years ago, it owned the MVPD. The stations it owns today, dominant NBC affiliate KIEM-3 in Eureka and CBS sibling KVIQ-LP 14, came to CMG in late 2019 after Brian Brady’s Northwest Broadcasting was sold to Apollo, ahead of its Cox deal. In 2005, KVIQ was a Clear Channel-owned property using Channel 6, picked up in 2002 from Ackerley Group. KIEM was owned by Pollack/Belz Broadcasting.

Is a “blackout” imminent, with the tiny Greenville-Greenwood, Miss., DMA imperiled yet again from receiving nearly every local network affiliate?

Perhaps. Alternatively, CMG is opting to strike first with a consumer warning, a move that could point fingers at Suddenlink before it can place blame on Cox for possibly short-changing customers of the MVPD, which is owned by Altice USA.

Paul Curran, CMG’s EVP of Television, said, “Our country continues to navigate through the COVID-19 pandemic and, during these uncertain times, it is more important than ever that our viewers know their trusted local stations are there for them, providing the news and information they need to make decisions for their families. CMG stations take pride in being trusted and vital resources for our communities, and we will fight to continue to fulfill this responsibility.”

As of mid-afternoon Wednesday (1/6), Suddenlink had not offered a public comment regarding the possible impasse with Cox Media Group.

— Reporting by Ethan Hunt. Additional reporting by Adam Jacobson, in Boca Raton, Fla.

In the 49th State, it is known as GCI. That’s the Liberty Broadband-owned MVPD that, as of Jan. 1, discontinued carriage of “FOX Alaska,” “ABC Alaska,” and “The CW Alaska” on a newly launched “skinny bundle” offering designed to discourage subscribers from fleeing to such services as Hulu and YouTube TV.

It is pointing fingers at the broadcast TV station owner providing the three signals. Naturally, the broadcaster feels otherwise.

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Not long ago, dissident TEGNA investor Soohyung Kim was thwarted in his attempt to gain a seat on the company’s board, place his own members on the board, and essentially assume control of a company he had little faith in.

Now, as 2021 unfolds, TEGNA’s C-Suite is taking stock of its COVID-era accomplishments. And, it’s CEO is pretty darn proud of them.

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Set your calendar reminder now for 9am on Monday, March 1, TEGNA investors and Wall Street observers. That’s when TEGNA will formally unveil its Q4 and full-year 2020 results.

What can shareholders expect from the broadcast media company? TEGNA shared its preliminary results on Wednesday (1/6) — along with a preview of what could very much be on the books for 2021.

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Davis Wright Tremaine LLP has added a satellite and telecommunications lawyer as a partner in its Washington, D.C., office, bringing new capabilities to its team serving the technology and communications industries.

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Just east of Austin is a Class A FM offering Classic Country programming.

It’s heading to a new owner, pending FCC approval.

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The Board of Directors of the Media Financial Management Association (MFM) have selected the two individuals who will chair its upcoming, and virtual, Media Finance Focus conference.

David Bochenek, SVP/Chief Accounting Officer at Sinclair Broadcast Group, will serve as 2021 Conference Chair and share responsibilities with Mike Lavey, Interim Chief Financial Officer, Chief Accounting Officer and Controller for Tribune Publishing Company.

The conference will be a virtual affair, beginning on Tuesday, May 11, and concluding on Thursday, July 29

The preliminary agenda calls for sessions on Tuesday and Thursday afternoons along with topic-specific roundtables on Wednesdays. The 11 weeks will offer sessions on subjects relevant to industry financial and credit professionals.

Mary M. Collins, President and CEO of MFM and BCCA, says this year’s theme is “Together Toward Tomorrow,” and is “a nod to both our goals for 2021 and what we expect to be an exciting year of transition for the industry.”

In May 2019, Deb McDermott gained the industry’s attention for the acquisition of television stations in Providence, R.I., and Lincoln, Neb., by the company she holds the title of CEO for, Standard Media Group. Six months later, Standard Media added nine properties from Waypoint Media in a deal valued at $59.2 million.

The deals cemented Standard Media’s role as a acquisitor, with McDermott, who is perhaps best-known in the media world for her association with ABC affiliate WKRN-2 in Nashville, partnering with Soo Kim on the company’s build-out.

Now, as 2021 begins, McDermott is shedding her ownership interest in the two stations acquired in May ’19.

A 27-page document uploaded to the FCC’s LMS proposes the transfer of control of 100% of the membership interests of Standard Media Group LLC from McDermott Communications to Paducah Television Operations LLC.

Translation: McDermott’s equity interest is being transferred to Soo.

To illustrate the change, an organizational chart was submitted to the Commission. Pre-transfer, McDermott controls Standard Media Group, and under that WLNE-6 in Providence, R.I., and KLKN-8 in Lincoln, Neb.

The McDermott-led group purchased the stations from Citadel Communications LLC for $83 million.

Post-transfer, Standard Media would be a unit of Paducah Television Operations, housed under Soo-controlled CNM Television Holdings, a division of his Community News Media LLC.

Soo Kim has generated much attention over the last year. As a dissident shareholder of TEGNA, he attempted (and ultimately failed) to win a seat on the board and gain control of the broadcast TV company. He’s also in partnership with Emmis Communications founder and CEO Jeff Smulyan, as Managing Member of the entity holding attributable interest in Mediaco — now the licensee of WBLS-FM & WQHT-FM in New York.

Is there a financial obligation tied to this transfer request, which awaits FCC approval?
Yes. Sort of.

A $55,803,225.17 Amended and Restated Floating Rate Subordinated Convertible Note, dated Dec. 10, 2020, appears to be integral to the transaction. The note holder is Soo’s Paducah, and it is exercising a conversion option.

What does this mean? It’s complex but it appears McDermott is acquiescing her ownership interest in the stations in return for the multi-million dollar loan, which has a maturity date of March 5, 2023.

Why? A plausible explanation is that Soo is assisting McDermott on closing the Citadel transaction consummated nearly 1 1/2 years ago, as some $27,196,774.83 may have been paid thus far in a deal struck before anyone knew the COVID-19 pandemic would strip local TV of ad dollars across much of 2020.

And, with Nebraska and Rhode Island far from political hot spots, the election-year windfall could have been peanuts compared to what was seen in Florida, Georgia or Arizona.

Serving as legal counsel on this transaction is Scott Flick of Pillsbury Winthrop Shaw Pittman. He was not immediately available for comment when reached by RBR+TVBR.

A broadcasting veteran of more than 50 years is calling it quits, and heading into retirement. But, who in the midst of a pandemic would want to invest in an AM/FM combo serving a rural area of Virginia between Richmond and Lynchburg?

Look no further than the No. 2 licensee by number of radio stations in the U.S.

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What pandemic slowdown?

After dipping to nearly $56 per share on March 18, as concerns surrounding the domestic spread of the COVID-19 virus reached fevered heights, Nexstar Media Group stock started its slow climb back to where it was in early Q1 2020.

While NXST is beginning 2021 roughly $20 per share below where it was on February 12, 2020, investors should hardly be upset. Tuesday afternoon trading saw shares trading in the mid-$108 range.

Now, with news that noted journalist Ashleigh Banfield is joining WGN America to helm a 10pm ET hour-long news and newsmakers show, following News Night, investors should have plenty to cheer about come Tuesday, Feb. 23.

That’s when Nexstar will release its Q4 and full-year 2020 results. The numbers will be distributed prior to the Opening Bell on Wall Street, and a 9am conference call will see C-Suite executives discuss the results.

With a new NBC affiliation agreement just inked and ownership of stations such as WSAV-3 in Savannah, Ga., where political dollars for two U.S. Senate runoff races to be decided today were high, Nexstar seemingly has nothing but positives to share.

That’s what Zacks Equity Research thinks. “Investors might want to bet on Nexstar, as earnings estimates for this company have been showing solid improvement lately,” it said in early December. “The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.”

For Q4, the company is expected to earn $6.44 per share, which is a change of +172.88% from the year-ago reported number.

For the full year of 2020, the company is expected to earn $16.14 per share, representing a year-over-year change of +236.25%.

What’s Zacks’ bottom line? “Nexstar shares have added 28% over the past four weeks,” it said one month ago, when shares were $110.80. “[This suggests] that investors are betting on its impressive estimate revisions.”

In the San Francisco Bay Area, South Asians seeking programming devoted to Indian, Pakistani and Sri Lankan culture, news and music have had access to Ravi Kapur‘s Diya TV on the DT2 signal of KTSF-26, the multicultural broadcast station led by Jack Schwartz and owned by Lincoln Howell that just inked a fresh measurement deal with Nielsen.

Soon, local viewers will now have another way — and, perhaps, easier way — to view Diya TV.

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Mediacom cable TV service subscribers in 12 DMAs across the U.S. presently lack access to at least one of their home market’s Big Four affiliates.

Why? Of course it’s another retransmission consent impasse, which has led Mediacom — by law — to drop such stations as WWL-4 in New Orleans, KARE-11 in Minneapolis and KPNX-12 in Phoenix from its respective market lineups.

The MVPD puts the blame on TEGNA, the stations’ owner. TEGNA feels otherwise.

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“You may have noticed that certain TV channels are currently unavailable to you. Please know these channels have been blocked by their owner, TEGNA Inc.”

That’s how Mediacom is explaining the loss of all TEGNA-owned stations from its channel lineups in DMAs as disparate as Norfolk, Tucson, St. Louis and Des Moines.

In its own interpretation of events, Mediacom assured its customers that the decision to “blackout” the channels “was not made by Mediacom.”

It said, “Our contract with TEGNA expired on December 31, 2020, at 5pm Eastern. At that time, we were ordered by TEGNA to stop carrying their stations, despite the fact that we were offering to pay a significant increase over our previous contract. Under federal law, we can’t carry a station unless the owner grants us permission to do so.”

The last sentence is undisputed as fact. The rest of Mediacom’s statement was addressed by TEGNA in a statement appearing on the websites for its impacted stations, such as WQAD-8, the ABC affiliate serving the Quad Cities of Illinois and Indiana.

The TEGNA station explained, “WQAD is currently not available on Mediacom. That means Mediacom is taking away your access to your favorite ABC programming.”

With agreements in place with Dish, DirecTV and Comcast in the DMA that includes Bettendorf, Moline and Davenport, TEGNA said, “Unfortunately, Mediacom refused to reach a fair, market-based agreement with us, which is why our station is not currently available on Mediacom.”

Who is correct is likely of little consequence to the “hard working residents of rural Alabama, Arizona, California, Georgia, Iowa, Illinois, Kentucky, Minnesota, Mississippi, Missouri, North Carolina, and Virginia” — customers Mediacom said would need to absorb the costs of any price interest it cannot agree to in its quest to reach a retrans deal with TEGNA.

Mediacom, the nation’s fifth-largest MVPD, does not explain why the cost would need to be passed on to customers. Mediacom is privately owned by empresario Rocco Commisso, owner of Italian pro soccer team ACF Fiorentina and the MLS’s reborn New York Cosmos.

Mediacom’s 2019 operating income was $808 million.

According to the company’s annual fiscal report, Mediacom’s revenues were $2.031 billion for the year ended December 31, 2019.

Will a new deal come soon?

Maybe not.

“Mediacom is continuing to work hard to achieve a viable and affordable solution; however, the decision to pull the stations from your channel lineup rests entirely with TEGNA,” it says in an online microsite for Mediacom customers.

Will WQAD ever be back on the Mediacom system?

“We hope so,” TEGNA says. “It is really up to Mediacom to decide. We are committed to reaching a fair deal. If Mediacom is willing to make the same commitment, then we are confident that we can get an agreement that restores our station to the Mediacom lineup.”

Beasley Media Group is officially observing its 60th anniversary.

In this new RBR+TVBR InFOCUS Podcast, presented by DOT.FM, CEO Caroline Beasley shares a little about the company’s legacy — and what will eventually culminate in a special anniversary day in December.

Why did company founder George Beasley invest in an AM radio station in Benson, N.C., and why in December 1961 did he desire to own a radio station?

What is Beasley’s place in history with the growth of FM radio, and HD Radio?

Caroline Beasley shares the answers and more!

Listen to “The InFOCUS Podcast: Caroline Beasley” on Spreaker.

Since 2018 he’s been the Senior Director of Finance at Hearst Television.

Now, he will serve as Hearst’s VP of Distribution.

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Colorado Springs is known as the home of the Garden of the Gods.

Now, Christopher Gould is gaining the top leadership role for two Salem Media Group stations in the market devoted to the word of God, along with its Conservative Talk sibling.

Gould, who serves as Salem’s SVP of National Program Development/Ministry Relations, will be relocating to the Colorado market, where he will continue in his current role while adding day-to-day General Manager duties for Worship Music-focused KBIQ-FM 102.7, Christian Talk & Teaching KGFT-FM 100.7 and (KBIQ-FM), 100.7 (KGFT-FM), and conservative News/Talk KZNT-AM 1460 “The Answer,” simulcast on K266CK at 101.1 MHz.

He will also oversee the Colorado Springs division of Salem Surround.

“I am confident under Chris’ strong leadership we will see these stations grow in both influence and financial performance and that our service and support of our National Ministry partnerships will continue to thrive,” says Salem Broadcast Media President Dave Santrella.

Gould has been with Salem for nearly two decades, initially running Salem’s cluster of stations in Tampa before being promoted to VP of National Program Development in 2011. In 2018 Gould was promoted to SVP.

At Eastern Michigan University (EMU) in Ypsilanti, Mich., the Department of Athletics is relentlessly committed to providing great experiences for both fans and student-athletes while building champions in the classroom, in the community, and in competition.

When the university upgraded its football venue with a massive new scoreboard in 2019, it purchased four Z‑HD5000 HDTV cameras from Hitachi Kokusai Electric America, Ltd. (Hitachi Kokusai) to enhance fan engagement while meeting the challenge of shooting high-quality video on the stadium’s distinctive playing surface.

The centerpiece of the technology refresh at the 30,200-seat Rynearson Stadium is a new 53-foot high by 29-foot wide Daktronics LED video display screen. The second-largest video board in the NCAA Division I Mid-American Conference (MAC), the new scoreboard is more than three times larger than the venue’s previous, resolution-limited screen. The display overhaul was accompanied by control room and camera upgrades as EMU Athletics began producing in-venue football programming for the first time.

“With the old video board, we just took an analog signal from the broadcast feed, and cut in occasional footage from older cameras,” said Greg Steiner, Associate Athletic Director, Media Relations at EMU. “We needed to enhance the in-venue experience, as when fans come into the stadium and watch our video board, their expectations have been set by what they see on television. We strive to provide unique on-site opportunities that fans can’t get at home, while also delivering what they already expect to see from TV.”

Supplied by systems integrator AVI-SPL, three of the Hitachi cameras are deployed in fixed positions on tripods. The fourth Z-HD5000 is equipped with a Teradek wireless transmitter, enabling the camera operator to go into the stands and roam the venue.

Steiner notes that the Hitachi cameras do an exceptional job capturing games in EMU’s unusual football environment. “We’re one of only three FBS (Football Bowl Subdivision) schools that don’t play on a green field, and the only grey field at the Division I level,” he explained. “Getting a good picture against it can be tough with other cameras. Grey can get washed out really fast if you don’t have high-quality cameras and the ability to dial in directly to the true colors. The Z-HD5000s handle it very well.”

The newly-acquired cameras are EMU’s second Z-HD5000 purchase, joining four units acquired in 2013 – and still going strong – that are dedicated to the university’s 8,000-seat Convocation Center. In addition to driving in-venue video board shows for the EMU Eagles’ basketball, volleyball, and gymnastics events in that arena, the earlier cameras have been used on more than 185 live broadcast productions for the ESPN+ streaming service as well as university events such as graduations.

Together, the new and earlier Hitachi cameras also provide valuable, hands-on video production experience for students in the school’s Communication, Media & Theater Arts (CMTA) department, as well as students enrolled in other programs but interested in sports production. “We have higher-end equipment in Athletics than they may use in their own courses,” said Steiner. “Working on our productions lets them earn internship credit while getting experience on broadcast-class equipment that they may eventually use professionally, and they get to put on their resume that they worked on productions for ESPN+. That helps them get work for the major networks once they graduate.”

EMU has been very satisfied with the visual quality provided by the Z-HD5000 cameras, as well as their durability in students’ hands. “You know what you’re going to get every time you turn them on – great clarity, accurate color reproduction, and the ability to dial them in from the control room exactly as you need,” praised Steiner. “To know that they are forgiving enough with students is also a big selling point. Some of our college counterparts use more prosumer-level equipment and it breaks down much faster, so their turnover of gear is much faster than ours.”

Beyond the technical benefits of the cameras, Steiner lauds the possibilities they have enabled for the school and its students. “I cannot say enough great things about the opportunity that working with Hitachi cameras has presented us as a university and as an athletic department,” he said. “Putting these cameras in students’ hands lets us deliver an opportunity for their personal development while creating a program that lets us showcase our student-athletes to our fans. Hitachi Kokusai has been a great partner throughout the process to deliver exactly what we needed in terms of video.”

— Brian Galante

A powerful advocate who “is deeply committed to resolving issues that disproportionately impact” African-American and multicultural communities across the U.S. — including access to broadband, AI and civil rights, and media diversity — has been selected to serve as VP of Policy at the Multicultural Media, Telecom and Internet Council (MMTC).

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Enhancements to Telestream‘s CaptionMaker authoring software and the Vantage Media Processing Platform have been brought to market.

They provide “all the production tools” required by major broadcast networks and content distributors who have standardized on the Interoperable Master Format file-based delivery format.

In particular, CaptionMaker and Vantage Timed Text Flip now support IMSC 1.1, the latest
version of the SMPTE standard for subtitling and captioning.

IMSC is of particular importance in the preparation of IMF packages, and Telestream says no other technology vendor offers workflow automation combined with the caption and subtitle processing capabilities offered in Vantage and CaptionMaker.

“Using CaptionMaker, users can author, edit, encode and repurpose video captions and subtitles,” it says.

Then, using Vantage, they can include these media files in automated workflows for file transformation as needed when creating primary and supplemental IMF packages.

“With CaptionMaker, users create video captions and subtitles for television, web and mobile delivery,” Telestream notes. “CaptionMaker simplifies the process of complying with government regulations, enabling greater access to broadcast content for television, online and mobile viewers. The latest release supports IMSC 1.1 and contains several other enhancements including improved caption and subtitle rendering that makes them crisper and easier to read.”

Also, Vantage Timed Text Flip provides full support for IMSC, including version 1.1. IMSC is
required for IMF packages. Users that need to deliver video content to TV or Internet can
use Vantage and Timed Text Flip to transcode captions and subtitles with their media within
a single, automated workflow. This type of automation can help a variety of organizations
meet government mandates in a file-based workflow.

In addition, Vantage IMF Producer automates the creation of IMF packages from Adobe
Premiere Pro. Using a Vantage panel within Adobe Premiere Pro provides direct access
and significant workflow efficiencies for editors. IMF Producer automates the creation of all
files required in an IMF package from a single output render of an Adobe Premiere Pro
timeline. As well as generating the primary package, editors can create additional
sequences, which become supplemental IMF packages that contain different versions of
audio, subtitles, edit points, Dolby Vision HDR metadata and more.

“As a file-based delivery format, IMF is gaining widespread support from the media industry, so the decision to focus our efforts on developing IMF production tools was straightforward,” says Scott Matics, Senior Director of Product Management at Telestream. “However, these are not just any old IMF productions tools – they reflect Telestream’s outstanding expertise in this area and a great depth of customer feedback.”