Radio+Television Business Report

In the state of Maine, cable TV subscribers were in a rather unique situation when it came to not only the channels they wanted — but also the individual shows they desired.

It was part of an a la carte package designed by the state government as part of an effort to seemingly benefit consumers, allowing them to enjoy channels through an “unbundle” by MVPDs.

A district court tossed the law. Now, a federal appeals court has upheld that ruling.

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LAKE WALES, FLA. — One of the top providers of media workflow software products to broadcast media companies across the U.S. has signed up Alpha Media as a client.

As such, the Portland, Ore.-based owner of radio stations will extend its vCreative vPPO service while adding the vTrade service across all of its properties.

vTrade was developed by Central Florida-based vCreative to provide media companies with the ability to easily track, manage, audit and report on trade inventory, eliminating the risk of financial loss due to wasted or expired trade.

A recently released feature in vTrade helps manage the creation and sales tracking for on-air auctions, coupons and/or vouchers.

“After using vPPO for nearly three years and knowing how it has improved our workflow, I was excited to see vTrade had been added to the family,” said Stephanie Ross, Regional Business Manager at Alpha Media. “The team at vCreative also added an entirely new component to vTrade that will make managing our auctions even better than before. From entering consignments, tracking sales, and printing vouchers with unique IDs, we can now easily and efficiently manage this complex area of our business.”

Mary DelGrande, SVP of Sales at vCreative, said, “We are thrilled to be continuing and expanding upon our partnership with Alpha Media. vCreative’s main objective is to continue to innovate and evolve. The adoption of vTrade and Alpha’s  renewed commitment to vPPO is proof that we are succeeding.”

CAMARILLO, CALIF. — Salem Media Group, the media company known for its Christian-themed and conservative Talk radio stations, has selected when it will issue its fourth quarter and full-year 2020 financial results.

The announcement came amidst a sell-off of Salem shares on Wall Street.

Salem executives will host a conference call to discuss its results at 1pm Eastern/10am Pacific on Thursday, March 4 — one hour after it formally releases the numbers to the public.

It’s unusual timing, as Salem regularly selects 2pm Pacific, after the Closing Bell in New York has run, for its earnings call.

What will Salem executives have to share on the call? Analysts could be curious if the heir to Rush Limbaugh‘s legions of fans is one of Salem’s own talk hosts. Or, they could be hyperfocused on advertising trends against difficult year-over-year comparisons.

Whatever is on the minds of Salem’s investors, it isn’t clear. SALM was off sharply on Thursday (2/25), falling 14% to $2.7437 as of 2:42pm Eastern.

The dip ends a nice rally for Salem stock, which sat at $1.03 as recently as Dec. 21, 2020.

But, it must be said that Wednesday’s closing price of $3.19 marked the highest finish for SALM seen since September 2018.

How is 2021 shaping up for transactions, now that Kagan has analyzed 2020’s dealmaking? Are deals still in a COVID-19 fueled frozen state?

Those are just some of the questions Greg Guy, the managing partner for media brokerage Patrick Communications, answers in this latest InFOCUS Podcast, presented by DOT.FM.

 Listen to “The InFOCUS Podcast: Greg Guy” on Spreaker.

Heading into last night’s ViacomCBS’ Streaming Investor Day, MoffettNathanson‘s clients had two basic questions:

• What could the company say to possibly surprise us?
• How can we justify the move in Viacom’s stock price this year?

“At least now we have some clarity around the first question,” Senior Analyst Michael Nathanson and Analyst Robert Fishman noted Thursday, following a three-hour affair that offered a detailed look at the soon-to-relaunch Paramount+ OTT platform, formerly CBS AllAccess.

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One of the nation’s largest radio stations owners, one with a big stake in podcasting, has just lured a SHOWTIME Networks marketing pro to take on the newly created position of Head of Marketing for Podcasts.

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Joining Entercom Communications, owner of Cadence13 and Pineapple Street and the Radio.com streaming audio platform to promote podcasts is Brian Swarth.

He was previously SVP of Digital Media & Marketing at SHOWTIME Networks, where he directed all aspects of digital and social marketing including acquisition and CRM strategy, influencer marketing, interactive creative and production, multi-platform content development, marketing and advertising technology, digital marketing analytics and emerging platforms.

Once he settles in to his new role at Entercom, Swarth will lead and oversee all marketing and public relations for Entercom’s podcast division.

He reports directly to Chris Corcoran, Chief Content Officer at Cadence13.

Before joining SHOWTIME, Swarth was VP/Managing Director of Client Strategy, Media and Entertainment at Zemoga. Before that, he was Sr. Director of Strategy and Business Operations/Content Distribution at MTV Networks, where he steered expansion of MTVN and BETN content distribution and enabled the successful launch of the multiplatform premium movie service EPIX.

NBCUniversal‘s U.S. household addressable footprint is set to expand by nearly 40%, to 45 million households.

To accomplish this, it has agreed to a newly formed advanced advertising pact with one of the nation’s largest cable TV service providers.

Importantly, NBCUniversal says the deal makes its advanced advertising offering one of the largest offered in the market by a television publisher.

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SAVANNAH, GA. — Thanks in part to its ownership of the dominant CBS affiliate serving Georgia’s Coastal Empire, WTOC-11, and keeping a watchful eye on expenses, Gray Television enjoyed a 138% year-over-year net income rise as total revenue jumped 37% to $792 million.

Next year’s finish is poised to be even bigger, as Gray awaits approval of its $925 million acquisition of Quincy Media Inc.

While there are many positive takeaways from the earnings results, the bigger news from Gray is that for the first time in 13 years, a quarterly dividend is coming to shareholders.

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With 99 watts of power from atop the famed Sutro Tower, this FM translator emits enough of a signal to cover all of the city of San Francisco, lower Marin County and East Bay communities including Richmond and Berkeley, Calif.

Now, its use as an outlet targeting Asians has been solidified thanks to a newly consummated transaction.

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The Media Financial Management Association (MFM) has revealed the speakers for its two-day Media Tax Summit, scheduled for March 2-3.

The virtual event will be held from 11am-1pm Eastern on each of those days.

The summit was formulated specifically for media tax professionals. Its focus is the specifics of how technological advances, the evolving workplace environment, and recent and proposed legislation have converged to transform the expectations for, and responsibilities of, the media tax department. MFM has assembled expert speakers to delve into each of these topics.

The event is co-chaired by Sinclair Broadcast Group SVP/Tax Paul Nesterovsky, TEGNA Sr. Director of Tax Sean Hetzler, and Dan McGuire, a Partner for State and Local Tax with KPMG LLP.

The Summit schedule is as follows:

Tuesday, March 2, 11:00 a.m. – 1:00 p.m. ET

CFO Panel – Expectations for Successful Media Tax Department

Moderator: Dan McGuire, Partner, State & Local Tax, KPMG LLP

Panelists: Lucy Rutishauser, EVP & CFO, Sinclair Broadcast Group; Stephen P. Gibson, VP, CFO, The Washington Post; others TBA

Federal Stimulus and Relief Legislation – Media Industry Impacts

Moderator: Louis Lazar, Tax Partner, PwC

Panelists: Paul Nesterovsky, SVP Tax, Sinclair Broadcast Group, Andrew Prior, Tax Policy Services, PwC US

March 3, 11:00 a.m. – 1:00 p.m. ET

Intersection of Tax and Corporate People Strategy

Moderator: Sean Hetzler, Senior Director, Tax, TEGNA Inc.

Panelists: Jean Nechvatal, Vice President, Human Resources, Tribune Publishing; Kristin Hansen, Director, Human Resources, Hearst Television; John Montgomery, Partner, KPMG

Trends, Opportunities, and Threats in State Taxation

Moderator: Duane Dobson, Director, Ryan

Panelists: Stephanie Do, Senior Tax Council, Council On State Taxation (COST); Alexandra Sampson, State Tax Council, Hearst; Alesia Lewis, Global Head of Tax, The Washington Post

“We are excited about the experts and topics we’ve assembled for our inaugural MFM Media Tax Summit,” said Mary M. Collins, president and CEO of MFM and its BCCA subsidiary, the media industry’s credit association. “Realizing 2021 will present unique challenges; our co-chairs have been deliberate in identifying media-specific challenges along with thought leaders to address them.”

Registration is free for MFM corporate members, $200 for each of the first two attendees from a non-corporate industry member organization and complimentary for each subsequent media industry registrant. Others, including those who work for companies that offer products, goods, or services to the media industry, must pay either the member rate of $100 (if they are members) or the non-member rate of $250 (which includes a one-year trial membership) for each Summit attendee. No refunds or credits will be given after February 26, 2021.

Registered participants are eligible to receive up to four (4) CPE credits toward their certified public accounting (CPA) license. MFM is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors.

For more information, visit the MFM website.

Sinclair Broadcast Group on Wednesday was the latest owner of over-the-air television stations to release its fourth quarter and full-year 2020 results.

Sinclair’s performance was good: Earnings per share exceeded Wall Street analyst estimates, while revenue came in line with forecasts.

Why, then, were Sinclair shares down nearly 4% upon the release of the financial report card?

Sinclair Broadcast Group on Wednesday declared a $0.20 dividend payable March 24 to holders of Class A and Class B shares of record at the close of business March 10.

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WASHINGTON, D.C. — The FCC today announced the winning bidders and the final bid totals in Auction 107— also known as the “C-Band Auction.”

Auction 107 net winning bids totaled $81,114,481,921 and gross winning bids totaled $81,168,677,645.  Twenty-one bidders won all of the available 5,684 licenses.

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Here’s some obvious news from Kantar: Total TV advertising declined in 2020.

But, just how bad was the carnage at broadcast television created by the COVID-19 pandemic?

There was none.

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Is it ensuring false information that can incite and create violence and insurrection is blocked from receipt by the American public, or is it an extreme violation of Freedom of Speech?

That’s the big question emerging from Capitol Hill, where Democrats and Republications in the House of Representatives have drawn a line in the sand on how “disinformation and extremism” can be prevented from dissemination by broadcast and cable media outlets.

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An “enterprise-wide partnership” that will bring Futuri’s growth products, including TopLine, TopicPulse, Futuri Streaming, and Futuri Mobile, to all SummitMedia stations, has been forged.

“Broadcasters that want to grow their content, grow their audience, and grow their revenue are at a huge disadvantage if they don’t harness technology to compete,” said Futuri CEO Daniel Anstandig. “SummitMedia knows this and acted on it to revolutionize their go-to-market strategy with listeners and advertisers. The SummitMedia leadership team is among the best in the business, and we’re honored to partner with them.”

Randy Chase, who recently succeeded the late Bill Tanner as EVP of Programming at Birmingham-based SummitMedia, added, “SummitMedia is committed to delivering the best content to our consumers and exceptional results to advertisers, and Futuri technology like TopLine, TopicPulse, and their other solutions give us an advantage in today’s highly competitive environment. Expanding our partnership with a best-in-class technology company like Futuri helps us evolve and innovate at a time when stasis is not an option.”

With Greg Walden now retired as a Member of Congress and at the helm of brand-new K Street strategic advisory firm Alpine Advisors, the Ranking Member of the influential House Energy & Commerce Commission has become Republican Cathy McMorris Rodgers, from the state of Washington.

She’s making her mark in fast fashion. And, she’s steaming mad at her Democratic colleagues for actions she and Communications and Technology Republican Subcommittee Leader Bob Latta (R-Ohio) believe put a threat to freedom of speech, and Freedom of the Press.

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One week ago, the wife of influential talk radio pioneer Rush Limbaugh announced that he had lost his battle with Stage 4 Lung Cancer.

With iHeartMedia offering The Best of Rush for the foreseeable future, is there an opportunity for other radio broadcasting companies — including Entercom Communications — to snag some of Limbaugh’s listening audience?

It’s a question presented by a top financial analyst to CFO Rich Schmaeling and CEO David J. Field during Entercom’s Q4 earnings call on Wednesday morning.

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During its “Stream On” event, Spotify announced that it plans to launch a Hi-Fi streaming plan offering lossless streaming in CD quality later this year in selected markets.

This announcement is significant. But, is it noteworthy and of concern to radio broadcasting companies in the U.S. and Canada?

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WASHINGTON, D.C. — Until now, the Northern Virginia-based broadcast TV station owner once known as Gannett has been largely known for owned-and-operated stations including the CBS affiliate serving the Nation’s Capital and two digital multicast networks.

Now, True Crime Network and Quest are getting a sibling. And, it’s putting its focus on women — and perhaps LGBT audiences, too.

RBR+TVBR OBSERVATION: Is TEGNA too shy with who this new multicast network is really appealing to? C’mon, TEGNA — get out of the closet and say this offering is for the LGTBQ crowd. The name alone suggests it. [More below, for Members Only].

TEGNA Inc. this spring will officially launch its third multicast network.

Welcome to Twist, which TEGNA describes as “a women-oriented channel featuring lifestyle and reality programming.”

Initially, Twist will include home, food, and reality content, “much of it featuring exciting reveals – or twists – at the end of each show.”

Programming will be comprised of unscripted TV programs including Clean House, Top Chef Masters, Queer Eye for the Straight Guy, Dance Moms, Tabatha Takes Over, Tiny House Nation, and Flipping Out.

In a regular feature on the network, Twist will encourage viewers to submit their own videos of twists they’ve been thrown in life and how they persevered through them in a positive segment called “Share Your Twist.”

Brian Weiss, President/GM of TEGNA’s multicast networks, commented, “Twist will provide an exciting new viewing option for our female audience with content that has not been available through a multicast channel until now. The launch of Twist will enhance TEGNA’s leadership among non-fiction multicast networks, delivering the kinds of free content that over-the-air viewers crave.”

Carriage will be seen in 41 TEGNA markets. And, to bring it to New York, Los Angeles, Chicago and Philadelphia, a newly reconstituted Univision Communications has agreed to add it as a digital multicast offering. Seven other Univision markets have committed to Twist.

Even more, Twist will be added to 31 stations presently owned by HC2 Broadcasting.

These arrangements will bring Twist to DMAs covering 70% of U.S. television households.

And, additional distribution agreements are expected to be announced by summer, TEGNA says.

A preview reel can be seen at www.watchtwist.com.

— Editing by Adam Jacobson, in Boca Raton, Fla.

RBR+TVBR OBSERVATION: Is TEGNA too shy with who this new multicast network is really appealing to? C’mon, TEGNA — get out of the closet and say this offering is for the LGTBQ crowd. The name alone suggests it.

For a generation of LGTBQ adults, Twist was a popular nightclub in the heart of Miami’s South Beach. And, some may recall its association with the “Men on Film” skit as seen on the FOX sketch comedy program In Living Color some 30 years ago.

Yes, some may believe it is stereotypical to simply assume Twist is LGTBQ friendly because of Queer Guy. But, all of this programming isn’t singularly enjoyed by women. And, given the disposable income and show preferences of the LGTBQ community, particularly among gay men, TEGNA could see bigger riches and, believe it or not, free promotion from any group that may protest its arrival.

Strictly catering to women is limiting and not exactly a slam dunk, revenue-wise. Just talk to Meredith Corp.’s national media leadership. By bringing a LGBTQ-friendly, if not laser-targeted, digital multicast network to life, TEGNA could only further bring over-the-air TV’s longevity story in a world where cord-cutting stories have been hijacked by deep pocketed AVOD, SVOD and OTT platforms in a place no different than podcasters were in 2018.

Be bold, TEGNA. Give viewers a new twist by fully realizing Twist’s audience potential. 

One of the nation’s largest audio media companies, with investments in podcasting and a growing streaming app, is rapidly recovering from not only COVID-19 fueled detriments to its revenue, but also from challenges largely associated with the November 2017 tax-free merger it successfully completed with CBS Radio.

Entercom Communications early Wednesday released its Q4 and full-year 2020 earnings report. While its revenue was down 22.8% year-over-year, it surpassed Wall Street estimates. Entercom’s earnings per share? That’s another story.

Entercom’s adjusted net income shriveled to $23.04 million (translating to a non-GAAP earnings per share of $0.17), from $53.38 million ($0.40).

Wall Street analysts expected non-GAAP EPS to come in at $0.18.

On a GAAP basis, Entercom’s EPS was negative, at -$1.21. That was far off from Street prognostications, as profit of $0.02 per share was forecast.

Total net revenue came in at $319.5 million, compared to $414.12 million in Q4 2019.

That said, year-over-year comps are being downplayed by the radio industry, which is intent on showing sequential quarterly improvements from the worst of the COVID-19 pandemic. And, those sequential improvements paint a positive picture for the owner of key Sports Talk properties as WFAN-AM & FM in New York and podcast players Cadence13 and Pineapple Street.

Total net revenue in Q2 2019 was $175.87 million, off from $380.67 million in the second quarter of 2020.

Of course, perspective is everything: Revenue was down 22.8% year-over-year in Q4. Revenue was down a steep 53.8% in Q2.

What was Entercom’s non-GAAP Station Operating Income (SOI)? In Q4 2020 it totaled $80.69 million, slipping from $129.66 million.

Then, there are the non-adjusted numbers, which show a diminished net loss in Q4 2020 of $162.4 million, from a net loss of $487.54 million in Q4 2019.

Lastly, Free Cash Flow, a largely important figure for the radio industry, came in at $37.97 million. While that’s down from Q4 2019’s FCF of $59.52 million, it’s a big swing from negative FCF of $47.87 million seen in Q2 2020.

POLITICAL PROWESS

The Q4 2020 results, while pointing to positive growth, are propelled by something that likely won’t be repeated for some time: incredibly strong political ad dollars.

Entercom in Q4 saw political revenue of $18.89 million — a record high that dwarfs Q4 2018’s revenue of $12.3 million.

Importantly, the record-crushing political didn’t diminish Entercom’s sequential improvements in spot revenue, or its network revenue.

Then, there is Entercom’s digital story. Not only has the company returned to growth, something finally seen in Q4 2019 after months of mediocre revenue trends, but it established a new division record in Q4 2020 — finishing at a mighty $58.8 million.

It’s extremely encouraging news for Entercom, which has invested heavily in its Radio.com streaming app and platform, inherited from the CBS Radio merger and completely rebooted.

The other interesting positive for Entercom: Sponsorship and event revenue isn’t totally comatose, with sequential gains pushing it to $9.6 million in Q4 from $7.24 million in Q2 2020. Year-over-year? That’s ugly, given the loss of holiday-themed live events Entercom would normally stage during the final three months of the year.

In a Securities and Exchange Commission filing, Entercom offered revenue by “format,” splitting its music stations from its Sports and News/Talk broadcast properties. The improvement in revenue on a sequential basis is most noticeable at its music stations.

EXPENSE CONTROL

Entercom’s C-Suite, ahead of its earnings call for investors and financial analysts, also pointed to a slash in station expenses in Q4 as a key factor in achieving revenue growth.

Station expenses for the fourth quarter declined 16% to $238.8 million year-over-year and corporate expenses declined 6% to $20.2 million.

The big black mark for Entercom in Q4: Operating loss for the quarter was $204.9 million, as this includes a non-cash impairment charge of $247.4 million. Yet, this compares to an operating loss of $455.5 million in the fourth quarter of 2019.

In prepared comments ahead of Entercom’s 10am Eastern quarterly earnings call, Entercom President/CEO David Field pointed to “strong sequential operating improvement,” with podcasting and sports betting contributing to across-the-board revenue growth.

“While the pandemic continues to hobble a large number of our advertisers, particularly locally, we are optimistic about a strong recovery in our local ad sales later this year driven by vaccinations, fiscal stimulus and pent-up consumer demand in heavily impacted categories,” he said.

In particular, Radio.com enjoyed 34% year-over-year growth in monthly active users in the fourth quarter and 53% growth in smart speaker listenership.