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A new report by Nielsen, “La Oportunidad Latinx,” reveals that radio is a powerful tool for reaching the loyal and savvy Latinx consumer.

Nielsen says it uses the term Latinx as a gender-neutral term, a more inclusive alternative to Latino.

The report found that radio is the medium that the Latinx market continues to gravitate toward. According to the Nielsen report, radio has the highest weekly reach among adult Hispanics, at 96% versus 92% for the total population. The survey also found that regardless of the media channel — be it audio, video or digital — the use of smartphone devices outreaches the use of PCs or tablets by large margins.

In understanding this market, it’s key to understand this market’s interest in music, the report found. Hispanic adults have the highest share of time spent on audio/video, at 69%. In contrast to the total U.S. population, adults report spending only 54% of their online time consuming audio/video.

[Read: Keeping Afloat in the Age of the Coronavirus]

With nearly 100% of Hispanics listening to some form of audio on a weekly basis — either on radio, smartphones or tablet — the report found that music/audio platforms should be a centerpiece of messages aiming to reach Latinx consumers.

Diving down deeper into smartphone usage, the report found that Latinx consumers are 51% more likely than the general population to have used their phone to listen to a local radio station, and 41% more likely to have used it to listen to internet radio. They are also 29% more likely to have listened to an online music service like Pandora or Spotify.

The report also found that users of voice-activated devices like Amazon Echo and Google Home are among music’s fastest-growing consumer bases. Hispanics make up 23% of those consumers that trend to early tech adoption, which is greater than their share of the total population.

The Nielsen report shares an example of how radio can be used to maximize reach within the Hispanic market. One advertiser, which had previously only advertised on TV, shifted 60% of its ad budget to radio. The move led to a 77% incremental increase in reaching Latinx listeners.

The report cites another local campaign in which another TV-only advertiser added Spanish radio to their media mix. Even without spending additional budget on their ad campaign, the move increased their reach to consumers by 57%, the report found.

The Latinx market is a powerful one, according to Nielsen. By 2023, the buying power of the United States Latinx population is expected to top $1.9 trillion. The 60 million Hispanics living in the United States constitute nearly a fifth of the total U.S. population. And Latinx consumers — the youngest minority group, with a median age of just 28 — are swiftly approaching their peak earning years, accounting for 75% of all U.S. labor force growth over the last six years, the report said.

A blog entry by Westwood One on the Nielsen survey noted that allocating 10% of an English-only buy to Spanish AM/FM radio generated a +41% reach increase among Spanish speakers.

“AM/FM radio makes your TV better,” wrote Pierre Bouvard, chief insights officer at Westwood One, part of radio station group owner Cumulus Media. “On average, allocating 20% of TV buy to AM/FM radio causes a massive +29% increase in Hispanic reach.”

He also highlighted the Nielsen survey’s finding that in a local market, the ability to reach Hispanics aged 18–49 increases dramatically when a TV-only buy is remixed with 60% of the budget moved to Spanish AM/FM radio.

The post Highlighting Radio’s Role in the Latinx Market appeared first on Radio World.

[Update: The FCC on Thursday responded to the SBE request described below with a two-week extension; read about it here.]

“Give us more time.”

That’s what the SBE is asking the FCC on behalf of engineers and broadcast stations.

A lot of radio engineers are asking a lot of questions right now about those tempting lump sum payments for migrating their C-Band earth stations, trying to figure out the right choice for their individual situation by the end of August. The Society of Broadcast Engineers has asked the Federal Communications Commission to extend the Aug. 31 deadline by a month.

The discussion applies to owners of C-Band satellite earth stations who registered antennas earlier and are eligible for cost reimbursement; in an order in July they were given the option to submit actual costs for reimbursement or apply for a lump-sum reimbursement.

SBE says the deadline of Aug. 31 to decide is insufficient for broadcasters and their engineers.

The background: The FCC’s auction in the 3.7-4.0 GHz segment is set for December. The FCC is moving earth stations in the fixed satellite service to the 200 MHz at 4.0–4.2 GHz, requiring a repack of FSS earth stations. Under the program, new 5G commercial mobile licensees will reimburse “reasonable relocation costs” of eligible, incumbent operators including earth station operators, to move out of 3.7-4.0 and into the 4.0-4.2 GHz segment.

Earth station operators are reimbursed through the Wireless Bureau based on a published cost catalog.

Here is a link to the public notice of the final cost schedule. Here is a link to the appendix with costs.

But the SBE writes: “While the Report and Order was released March 3, 2020, neither the Public Notice announcing the process, nor the Cost Catalog, was released until July 30, 2020, almost four months later.

“Because the Public Notice specified 30 days for a large number of broadcasters and broadcast engineers to evaluate, prepare and submit their election for lump sum payments, and during the COVID-19 pandemic, which has kept many from their workplaces, the SBE made the motion for the filing extension.”

It said an extension shouldn’t affect the auction timetable.

Companies that work in satellite infrastructure are getting tons of questions.

“We have been slammed to calls from cable TV companies and broadcasters, all asking for advice on filing for the lump sum,” said John Joslin of Dawnco in an email to Radio World.

“We actually talk for 20 to 40 minutes with each caller, to help them understand the implications of choosing the Lump Sum option. We are referring our customers to a firm in Washington D.C. that provides expert help in filing for the FCC Lump Sum payment. They charge $1,250 plus $75 for each dish to make the filing.”

Joslin emphasized that barring an extension, there is little time left for stations to get their lump sums of roughly $9,000 or $17,000 per dish. “They have to talk to their FCC attorney, or use the firm in Washington that Dawnco recommends. They need to do this now. If they don’t register before August 31, they miss out on the lump sum.”

Separately, LinkUp Communications posted a discussion on its blog earlier this month. It described the lump sum amounts as “quite generous,” citing for example the compensation for opting out a receive-only single-feed antenna at $8,948 per antenna.

“If you have dozens of C-band downlinks in your network, it would be so tempting to accept the lump sum payment and worry about filters or repointing of the downlinks later,” the company wrote.

“But here’s the deal: If you take the cash, you are solely responsible for the installation of filters, upgrades, repoints and the like at your downlink sites.”

The company, which offers services in this area, said users who “hire a reliable, seasoned crew of satellite technicians to assist” will probably be OK; but it warned against traveling teams of technicians – “we called them satellite cowboys” – who may not have the necessary experience. (Read more comments from the company’s Mark Johnson.)

LinkUp’s advice: “If you don’t want the headache of dealing with the details associated with the C-band repack, let the satellite owners handle it. All updates to your downlinks will be covered at no expense to you. And you can be assured that the work will be completed correctly. But if you choose to collect the lump sum, don’t waste your time hiring a company that may not have the skill set to handle the work. Make sure you contract with experienced satellite professionals so the job is done right.”

The post Lump Sum Decision Causes Engineer Headaches appeared first on Radio World.

Many U.S. radio engineers are asking questions about whether to take a lump sum reimbursement from the FCC’s C-Band migration program. As you’ll recall, the FCC recently published a “cost category schedule” that describes potential expenses and costs that users of earth stations may incur as a result of the C Band repack.

Mark Johnson of LinkUp Communications wrote a blog post recently, cautioning stations about some possible downsides.

We followed up to ask Johnson whether he thinks the proposed reimbursements are fair and what the downsides might be of taking the lump sum option. (The deadline is Sept. 14 after the FCC granted a two-week extension.)

Johnson replied by email:

“Two weeks ago they published the final ‘Cost Catalog,’ and the Lump Sum payment is generous. It also maintains your frequency protection at 4000 MHz to 4200 MHz after the Mid Band Transition is complete. Radio stations see this as a welcome surprise. However they are curious about the ‘catch.’

“Fair is a relative term,” Johnson continued. “If you only need to install a filter and your antenna is in good shape it would be very fair. However if you have to move your antenna and the antenna is old and rusty the ‘Lump Sum’ would not cover the cost of installing a new antenna with a new filter.

“Our team is a proponent of satellite technology for broadcasters. For two years we have been working behind the scenes with SES, Intelsat, Telesat and the SBE to inform broadcasters of this coming 5G tsunami. C-band is often the major content delivery system for commercial and non-commercial broadcasters across the country. Some stations take the majority of their programming from their C-band downlink. Recreating that locally or installing fiber are outrageously expensive options compared to the low cost of a C-band downlink,” he said.

“The downside is that if you had to move or replace your antenna at some point in the process of the 5G rollout you would be responsible for any and all costs to be compliant.

“There are two major things to understand,” Johnson continued. “First there are a serious of deadlines that they must keep on their calendars. Second, stay in touch with the networks who are the actual customers of SES, Intelsat and Telesat, they will be able to keep you informed regarding the timing of your receivers’ dual illumination period and frequency change.”

Johnson added these notable dates:

-Sept. 14, 2020 Earth Station (downlink) owner must decide whether to participate in the satellite owner transition or opt out for lump sum.

-December 08, 2020 —  Auction begins

-December 05, 2021 — Phase 1 deadline: 3700-3820 to be cleared in 46 top PEAs

-December 05, 2023 — Phase 2 deadline: 3700-4000 to be clear nationally

-December 05, 2025 — Sunset of all FSS license protection for 3700-4000

Read related letter to the editor here.

Comment on this or any story. Email radioworld@futurenet.com.

The post Lump Sum Option May Not Be Best for All appeared first on Radio World.

The author is president of NIA Broadcasting in Jacksonville, Fla.

NIA Broadcasting has long understood the value that HD Radio can bring to a broadcaster’s audience and brand. Following successful HD Radio launches at two of our FM stations, we turned our attention to WYKB(FM), a classic country radio station serving the greater Jacksonville market.

The WYKB HD Radio launch was part of a complete system upgrade covering the transmission facility and STL connectivity. For the latter, we transitioned from a pure analog microwave STL link to a hybrid GatesAir Intraplex networking system with a digitized microwave STL, IP codecs, and redundant streaming capabilities. The complete system also includes a new GatesAir air-cooled transmitter equipped with HD Radio Gen4 transport and processing systems.

The new STL architecture is built to withstand local atmospheric conditions that create unusual operating challenges. This includes tropospheric inversions, a rare temperature-related phenomenon that can create waveguide-like reactions within radio signals. Those reactions can cause the WYKB signal to suddenly be heard in markets far beyond our region.

While tropospheric inversions only happen several times each year, it is a problem that requires attention. We not only needed an STL system that could carry HD and FM program audio (as well as program-associated data), but one that also consistently problem-solved any negative inversion effects.

Working with GatesAir, we designed an interesting solution that addresses those two key requirements while adding greater redundancy and resiliency. And, we achieved this in a way that retained our existing Intraplex HD Link 950 MHz STL, leveraging its integrated IP channel option to carry HD Radio data.

The HD Link microwave connection is spliced with an Intraplex IP Link MPXp codec, using its digital AES192 transport functionality to transport HD and composite FM signals over the public internet. A GatesAir IP Connect device transports the E2X (exporter-to-exciter) data to the transmitter over this same connection, with all systems leveraging GatesAir’s Dynamic Stream Splicing software for redundancy. This software ensures that each connection can borrow packets from each other to repair streams, and is the secret sauce to the new system’s rock-solid reliability.

It’s important to stress that the two transport streams are active 24/7 and almost act as a single, combined primary link (versus main/backup), as the dual IP streams are technically spliced together. This is critical in a region like northern Florida, where long-term power and service outages are possible. There is also the very real possibility of wind-damaged STL dishes from hurricanes and tropical storms. If we have a hit on the STL or the public internet, the audience will not notice, supporting GatesAir’s claim as a “hitless” solution. There is no glitch, no on-air hiccup, and no switching between stream required.

This is also true when potential problems are self-made, such as when we recently changed IP addresses on our fiber line. Traditionally, that work would have taken place at 3 a.m. with the station off the air. With Dynamic Stream Splicing, we handled this in daylight with the station on the air — and with no audible effect on the listening experience.

Using this configuration, we can also maintain the highest possible audio quality. While the IP Link MPXp offers an analog composite MPX output, we opted for AES192 to keep everything purely digital and uncompressed. The HD Link is itself a broadband system that natively passes uncompressed audio. The upgrade effectively ends all analog program signal transport to the transmitter site.

As technical as the new system sounds on paper, the new Intraplex system was configured and functional within 24 hours. This includes new IP Link MPXp codecs and HD Link digital radios at the studio and transmitter sites, as well as the studio-based IP Connect device.

The IP Connect is vital to the operation, as it creates an IP path to reliably move HD Radio data from studio to transmitter over both systems. That data originates from GatesAir’s Flexiva FMXi 4g, an embedded HD Radio solution that combines the traditionally separate “Importer” and “Exporter” functions. The FMXi 4g also builds HD Radio diversity delay into its platform, so FM and HD time alignment is handled before all multiplexed digital signals leave the studio. At the transmitter site, the Flexiva FAX exciter amplifies all signals within the Flexiva FAX10 air-cooled transmitter, with HD Radio sidebands set to –14 dB.

The support from GatesAir continues to be top-notch. Like the Intraplex systems, they are always available and continue to respond quickly when we have questions months after the installation. That is clear evidence of their dedication to customer service.

Radio World User Reports are testimonial articles intended to help readers understand why a colleague chose a particular product to solve a technical situation.

For information, contact Keith Adams at GatesAir in Ohio at 1-513-459-3447 or visit www.gatesair.com.

The post User Report: GatesAir Networking Supports All-Digital STL appeared first on Radio World.

2wcom’s latest is the HDR-CC, an HD Radio capture client for the delivery of additional HD Radio channels.

The company explains that by using the unit, users can set-up the importer IP address and directly connect audio to the small box’s XLR connectors.

The box is able to accept one digital or analog stereo audio channel and provide it to an importer. The unit also sends the compressed audio via IP using an HD Radio codec. The HDR-CC can thus be located in a different location than the importer. Due to HDR-CC’s sound processing capabilities the loudness is almost the same as on the main program.

[Check Out More Products at Radio World’s Products Section]

In addition, 2wcom says the unit simplifies audio switching for emergency alerts. Utilizing a new feature Xperi has implemented in Generation 4 importers, a single HDR-CC is able to provide the entire emergency alert for all supplemental channels on the transmitter.

The company points out that the only set-up required is an AES audio connection to the capture client and a GPI to trigger the alarm. When the alarm is triggered the HDR-CC logs into the importer and replaces all supplemental channels (HD2–HD4) with the alarm program. After the GPI is released the HDR-CC logs out and the importer continues with normal operation.

Info: www.2wcom.com

The post 2wcom Debuts HDR-CC appeared first on Radio World.

Jeff Chang is president and CEO of Chang Media Group, an owner of radio and TV stations in California along with digital properties.

In this Q&A he discusses how his media group, especially a sports talk radio station is surviving in the Coronavirus media environment. He was 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: How do you oversee the operation of your radio station from a distance?

Jeff Chang: Since we launched, we have actually used a firm which handles the master control for many television and radio stations.

It’s been a vital part of our business model — our team can coordinate with them remotely regarding traffic, spots, and on-air promotions.

Gougherty: During the COVID-19 pandemic what has changed the most on the operational aspect of your station?

Chang: Well, we’re a sports station, affiliated with ESPN. So, the programming has obviously taken a hit. So it’s been a difficult period of predicting when sports will return to some normalcy, where the listeners will be enthusiastic again.

[Read: Keeping Afloat in the Age of the Coronavirus]

Gougherty: Is your IT person keeping your website and other social media platforms current? How do you manage that process?

Chang: Our IT lead works remotely as well. We’ve been keeping the social media platforms and our website current. While  there has been the interruption with live sports, the dialog always continues among sports fans. They still love their favorite teams and players. So, we’ve been a good forum for that.

Gougherty: During the pandemic have you made any changes to your programming?

Chang: We take the bulk of our programming directly from ESPN Radio. So, it’s been a significant change with the programming. The network has made some changes with the talent, and we’re excited with this. Since the NBA and MLB have restarted, we are also very happy that the games are back on the air.

Gougherty: Has your sales team been working from home and able to secure business? Have they been securing political advertising revenue thus far?

Chang: Yes, our sales team has been working at home. In addition to our ESPN Radio property, we also own television stations; so, they have been still active with all our platforms. It may be a bit more challenging now, but we’re a resilient company. We have always learned to seek opportunities as opposed to waiting for them to come to us.

Gougherty: What do you see as the new normal for your stations since the outbreak COVID-19?

Chang: We will probably keep using technology to our advantage, and allow our team to work remotely. Of course, there are some elements in running a station which can’t always be handled miles away, such as engineering or local promotions, so we always want to ensure those needs are always addressed as well. It’s a balancing act.

Gougherty: Since you air syndicated programming — ESPN what has been the benefit of being an affiliate?

Chang: ESPN has been very helpful during the difficult times. They keep us constantly up to date with their programming strategies. Moreover, they were proactive in hosting conference calls where we could receive input on how other ESPN stations were working with the challenging climate.

Gougherty: Do you have a main-studio?

Chang: While the programming is sent to our local market from a central location, we still maintain a local presence. We have team members in our market who work with the sales and promotions, as well as engineering. Since most of our stations are on the West Coast, we can still easily travel to our  markets.

The post Keeping Sports Hot in the Age of Coronavirus appeared first on Radio World.

A business arm of SiriusXM that provides connected services to carmakers announced a partnership with a firm that connects devices to emergency communications centers.

SiriusXM Connected Vehicle Services and RapidSOS said their joint effort will digitally transmit vehicle crash data to 911 immediately following a crash-related vehicle emergency.

“By linking vehicle and crash data from SiriusXM Connected Vehicle Services’ ACN+ (Advanced Automatic Crash Notification with enhanced services) technology with the RapidSOS emergency response data platform, 911 personnel can be notified quicker and first responders can receive more critical information about the nature and severity of the vehicle emergency before arriving at the scene,” the companies stated.

[Read: SiriusXM Revenue Is Down; Meyer Calls Company “Resilient”]

The company said its connected vehicle service last year alerted 911 centers of hundreds of thousands of vehicle emergencies through verbal contact, but that the new arrangement will supplement that system because the data information can be imparted faster and is less prone to miscommunication.

Types of data that can be provided include location; airbag deployment; crash impact data such as front/rear/multiple impacts and rollovers; occupancy and so on.

The companies emphasized that speed of contact with emergency services can be crucial in cases of medical injury.

RapidSOS built what it calls “the world’s first emergency response data platform that securely links life-saving data from 350M+ connected devices directly to 911 and first responders.” It provides data that supports 4,700 Emergency Communications Centers.

The post SiriusXM Partners With RapidSOS appeared first on Radio World.

Audio-Technica has released new limited-edition AT2020 Series studio microphones — the AT2020V (standard) and the AT2020USB+V (USB model), each featuring a reflective silver finish.

The side-address condensers are equipped with low-mass diaphragms custom-engineered for extended frequency response and transient response. The mics’ cardioid polar pattern reduces pickup of sounds from the sides and rear, improving isolation of desired sound source. All models in the AT2020 mic line are aimed to provide a wide dynamic range and handle high SPLs. Both of the limited edition V models come with AT8458a shockmounts to attenuate noise, shock, or vibration transmitted through a mic stand, boom or mount.

[Check Out More Products at Radio World’s Products Section]

The AT2020V is intended for vocal pickup in home-studio applications and features an analog XLR output for connection to a digital converter or mixer. The AT2020USB+V, applicable for podcasting, streaming, home studio recording and voiceover use provides the convenience of plug-and-play USB operation. The AT2020USB+V features a built-in high-output headphone amplifier with volume control that allows direct monitoring of the microphone signal with no delay.

It also offers a mix control that blends microphone and prerecorded audio. The microphone’s A/D converter has a 16-bit, 44.1/48 kHz sampling rate, and a 10-foot (3.1-meter) USB cable is included.

The microphones are currently available in the U.S. priced at $149 (AT2020V) and $199 (AT2020USB+V).

Info: www.audio-technica.com

The post Audio-Technica Unveils Limited Edition AT2020 Mics for Content Creators appeared first on Radio World.

Larry Wilkins, CPBE, is director of engineering services for the Alabama Broadcasters Association. This article is part of ABA’s Engineering Academy continuing education series.

Gain structure is a term used by professional sound engineers or FOH (front of house) mix engineers. However, the broadcast engineer should take note of it as well, even in digital operations.

What is gain structure?

Gain structure is exploiting the dynamic range of audio equipment to its best advantage, to minimize noise and unwanted distortion.

All audio equipment adds some noise to the signal, due to the random movement of electrons within the components. This noise is usually very low in amplitude, but when amplifying progressively smaller electrical signals, the noise will at some point overwhelm the sound we are trying to capture.

We need to ensure that the gain in each stage of electronic processing within a signal path is optimized to keep the signal level well above the noise floor, but comfortably below the circuitry’s clipping point.

Optimizing gain structure where several pieces of gear are connected together is even more demanding, as we need to ensure that every circuit is running at its optimum signal level, while still leaving the appropriate safety margin.

The ideal procedure when dealing with line-level signals is a unity gain situation where the signal stays at nominally the same level as it flows from device to device, rather than being constantly attenuated and then amplified, or vice versa.

Ideally the audio level (or video level, for that matter) should stay the same throughout the broadcast plant. You should be able to go to any point in the program path and the level remains the same.

We have mentioned this in previous ABA Engineering Academy articles, but it worth repeating: Start with drawing a signal flow chart for your station; include every device the signal goes through from the console to the transmitter. Next refer to the specification sheet for each device and write down the “clip level” for each one. The lowest clip level for a device in the path becomes your maximum “plant clip level.”

If the maximum plant clip level is +24 dBm, deduct 12 dB for headroom. Your operational clip level will be +12 dBm. Alignment level (using steady state tone) should be +4 dBm (0 vu). Peak audio levels should stay below +12 dBm.

If you are using digital audio, remember that the meter scale is different. Decibel full-scale (dBFS) is a unit of measure for the amplitude of digital audio signals. It is critical to understand: Though digital and analog signals have similarities, their characteristics differ significantly.

0 dBFS occurs when all the binary digits (bits) making up the digital signal are on, or read as ones and not zeroes in computer talk.

All of the bits available to make up the signal have been used at this finite point and no additional headroom exists. Trying to increase the level simply doesn’t work and causes immediate distortion.

Fig. 1 below illustrates the difference between analog and digital reference levels. The digital scale reads in negative numbers with louder, higher amplitude signals moving from a negative number closer to zero. Digital studios should standardize on a reference level of –20 dbfs as 0 VU.

Comment on this or any article. Email rweetech@gmail.com.

The post What to Know About Gain Structure appeared first on Radio World.

Here is my response to the letter to the editor “WWV Is Nice But Not All That Critical.”

The letter raised an eyebrow with me. The notion of eliminating the HF (2.5 to 20 MHz) service of the NIST National Institute of Standards and Technology station WWV is a bad idea.

I regularly use the 5 and 10 MHz signals to calibrate time bases in my spectrum analyzer, signal generators, receivers and frequency counters. It is a time-proven technique to zero-beat their reference oscillators with WWV and still valuable today in commercial and amateur radio use.

Yes, the Global Positioning System does that job, but it is vulnerable to enemy attack. WWV is the fallback to save us from problems of synchronizing networks, including the internet in the event that GPS becomes unusable.

The 60 kHz WWVB is the source for automatically setting “atomic” watches, wall clocks and other devices. Since we agree on that, then keeping the HF transmitters of WWV working is a small price to pay in the overall scheme of things. They are all at the same site in Fort Collins, Colo., operating from the same frequency standard and maintained by the same crew.

GPS is not infallible and is subject to interference, tampering or having satellites knocked out of the sky by those who do not like us.  We’ll be glad we still have WWV when things get rough.

Comment on this or any article. Write to radioworld@futurenet.com. Mark Persons is a frequent contributor to Radio World. Read his recent articles.

The post Letter: Don’t Dump on WWV appeared first on Radio World.

A new website aims to help media companies and professionals “create and sustain a diverse and inclusive workplace.”

It was created by the National Association of Broadcasters Leadership Foundation. The Diversity, Inclusion and Equity Resource Center promises to connect organizations with associations and consultants that can help with what has come to be called their DEI — diversity, inclusion and equity.

The announcement was made by NABLF President Michelle Duke, who recently was named the NAB’s chief diversity officer.

The site is essentially a pool of links to third parties and a summary of what kind of resources could be found at those destinations. Topics on the site can be filtered by associations and organizations; consultants; resources; and training and courses.

A sample is Brown University; its listing on the resource site links to the school’s Diversity and Inclusion Toolkit, which includes best practices for recruitment, communicating across cultures and building a respectful workplace, including guidelines for working with LGBTWQQ+, veterans and individuals with disabilities.

We counted about 120 such links so far, and NABLF is inviting more.

“These connections can help companies reassess business strategies, launch diversity initiatives that embrace unique perspectives and voices, and provide education programs for leadership teams and staff to better integrate DEI in their operations,” the foundation stated.

The resource center also offers information about personal professional development courses.

The post NAB Foundation Launches Diversity Resource appeared first on Radio World.

Radio broadcasters in the United States continue to reevaluate capital expenditure budgets amid the COVID-19 pandemic. Cap-ex spending drew down drastically in the first half of this year, according to financial reports from several major commercial broadcast groups.

Expense management has become crucial during the economic downturn caused by the virus, according to industry observers. The impact of the crisis on the radio technology marketplace has been severe, they say; and although equipment manufacturers and vendors expressed some optimism in early summer that spending on equipment and projects would bounce back later in the year, the upbeat signs seemed to have dampened as summer wore on.

Revenue Shrinkage

Several former engineering executives said broadcasters are being forced to question and justify each line item in their budgets, from the bottom up, as their employers seek to mitigate the economic impact of COVID-19. Most groups froze capital expenditures or at least prioritized critical projects that needed funding.

iHeartMedia, owner of more than 850 radio stations in 160 markets, among its many other platforms, announced in April it would reduce cap-ex by an expected $80 million for the rest of 2020. As of May, when it reported first quarter earnings, the company was projecting capital expenditures of $75 million to $95 million this year.

Meanwhile, Entercom Communications, owner of approximately 230 stations, said it would trim cap-ex by over 40% due to the pandemic “to a revised range of between $25–$30 million for 2020,” according to an April filing with the U.S. Securities and Exchange Commission.

The broadcasters contacted by Radio World were reluctant to discuss current spending plans, but it is clear that broadcasters had taken drastic measures since March, to hold onto cash where necessary.

“These companies are facing severe revenue shrinkage, which means they are being forced to conserve cash. It’s not clear when spending might resume,” said one person connected with the industry. “The economic crisis caused by the pandemic is driving all business decisions.”

Signs of spending cuts are quite evident in public filings by broadcasters. Spanish Broadcasting System said it was “limiting capital expenditures” in its first quarter 2020 filing with the SEC. Cost-cutting at Cumulus Media, which owns 424 stations, included a cut of 40% in capital expenditures the remainder of this year, according to a press release from the broadcaster. Townsquare Media, which has 321 radio stations in 67 markets, has “reduced all planned capital expenditures,” according to a statement from CEO Bill Wilson.

[Related: “Cumulus Will Sell Its Towers to Vertical Bridge”]

“Pared to the Bone”

Former engineering executive Milford Smith, now principal with Smith, Khanna and Guil Inc., said broadcast groups are likely focusing on “compliance issues” and any truly critical projects.

“Close behind are any projects or issues involving reliability — on air or online. This includes PPM systems, transmission systems and interconnection systems. Beyond these core items, most everything else can be considered optional.”

Smith said that “an old automation system and console that has been growing whiskers” will likely have to make it through another year before being replaced.

Equally concerning are the seemingly endless rounds of staff reductions, Smith said.

“Many stations and companies have pared staff to the bone. They are severely short-staffed. A multi-station cluster in a competitive market can only be expected to operate reliably and effectively with adequate technical expertise,” Smith said.

Bert Goldman, president of Goldman Engineering Management, said radio businesses have been hit hard.

“Loss of revenue has impacted all facets of station operations. And there is a drastic change in technical priorities as staff is moved off-premises and as many operations as possible go remote,” Goldman said.

Broadcasters were smart to freeze non-critical spending, both operating and capital, until the long-term situation is clearer, Goldman said.

“Specifically, until the impact to the business is determined, all capital spending, unless a project was actively in progress and could not be stopped, would probably be frozen. Any capital funds unspent would likely be immediately reallocated to emergency capital costs associated with pandemic response, such as updating playout systems, computers for home operation and remote equipment. Operationally, internet access would likely need upgrading at staff homes,” he said.

Goldman said many broadcasters had to move fast to replace older, less-flexible on-air playout systems so that operations could continue remotely.

“It is likely that emergency capital was spent during the crisis, which will impact available capital moving forward,” he said.

Gary Kline, a technical broadcast consultant and former DOE at Cumulus, said it can be hard for managers to find a consensus on which projects are critical versus those that can be paused.

“A DOE is almost surely to be inundated with feedback from the markets disagreeing with their decisions. What an engineering manager thinks is not mission-critical may be seen by the local market as critical,” he said. “And as the cap-ex budget contracts, the tougher the decisions are.”

Kline said good communication between executive leadership and the director of engineering are important. While senior leaders must provide engineering with updated guidelines for spending and how to prioritize, a DOE should be able to give management his or her feedback; the discussion should be collaborative and ongoing.

“Unpredictable”

Equipment suppliers are being realistic about the situation, said Bob Cauthen, president of equipment vendor SCMS Inc.

“Budgets and projects have definitely been cut and postponed. Some projects have been totally cancelled. I think all broadcast dealers and manufacturers have felt the pinch during the second quarter,” Cauthen said this summer. “It has been felt across the board in small, medium and major markets.”

Cauthen said trying to predict when things return to normal is like trying to figure out when the COVID-19 pandemic will end.

“It truly is unpredictable at this point, with all the variables. My personal guess is it will gradually improve, and broadcast will have a good fourth quarter, especially with political ad income peaking,” he said.

The pandemic has caused something of a business boom for companies selling remote broadcasting equipment.

“I suspect that Comrex is one of the few broadcast equipment manufacturers to have not been adversely affected by the pandemic,” said Chris Crump, senior director of sales and marketing at that company. “We had some logistical challenges in March and April as we tried to come to grips with the effects of COVID-19 and how best to keep our employees and their families safe. All the while, we had to find a way to increase our production output to keep up with orders.”

Crump said there are still a lot of unknowns regarding parts supplies, which have been exacerbated by major shipping carriers that no longer guarantee delivery times.

“Luckily our team has been able to work around extended parts lead times caused by this global crisis so we can meet our shipping requirements,” he said.

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