Radio+Television Business Report

The newest FCC Commissioner has named his wireless advisor and chief of staff while also selecting a media advisor, confidential assistant and staff assistant.

At the same time, he’s already saying farewell to two individuals who helped him set up his office.

 

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The C-Band, an essential for many broadcast TV and radio stations’ programming services, is in the midst of a four-year transition that’s moving at full speed. Some are likening this move to the TV repack process.

If you’re not wholly familiar with the importance of the C-Band, this InFOCUS Podcast, presented by DOT.FM, is just for you!

In just 10 minutes, Greg Palm, the Vice President of Broadcast and Network Solutions for USSI Global, shares with RBR+TVBR Editor-in-Chief Adam R Jacobson how satellite networks play a vital role in the broadcast content acquisition, distribution and delivery chain; the central purpose of the C-Band transition, and how broadcasters can work with companies like USSI Global to operate and maintain their systems.

Listen to “The InFOCUS Podcast: Greg Palm, USSI Global” on Spreaker.

Entercom Communications on Monday launched an audio network that includes broadcast radio stations and its Radio.com platform expressly for the sports gaming community.

It followed the November 2020 closing of Entercom’s all-cash purchase of sports data and iGaming affiliate platform QL Gaming Group (QLGG).

Investors liked the programming move. With 15 minutes remaining in Tuesday’s trading on Wall Street, ETM had climbed to its second-highest value in the last 12 months.

At 3:45pm Eastern, Entercom shares were priced at $4.42, up 18 cents.

Volume was slightly higher than average, at 2.80 million shares.

After an initial drop in value at the Opening Bell, ETM took off like a rocket, reaching $4.46 at 10:26am Eastern.

Trading softened slightly, only to pick up again in mid-afternoon.

As the Closing Bell approached, ETM’s activity increased, as did the slight price fluctuation.

Entercom’s short-term, mid-term and long-term performance outlooks are all “favorable” to Wall Street analysts.

There’s little movement of significance in the latest Spot Ten TV report from Media Monitors.

And, that’s a good thing as it demonstrates the ongoing commitment of several brands to campaigns involving free-to-air television stations.

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“Congress has given the FCC its marching orders, and we are not wasting time.”

Those are the words of acting Chairwoman Jessica Rosenworcel, who released on Tuesday (1/26) the agenda for the Commission’s February Open Meeting.

It will be her first heading the agency.

Taking a cue from her predecessor, Ajit Pai, Rosenworcel released “Notes from the Acting Chairwoman” that follow his lead in offering a preview of what’s to be discussed at the next Open Meeting.

“There are significant tasks for the agency in last month’s new appropriations law,” she said, outlining what will be immediately taken up by the Commission, which presently is comprised of two Democrats and two Republicans. “They include helping Americans afford broadband, expanding access to telehealth technologies, building better maps that reflect where high-speed service is and is not, and improving the safety and security of our nation’s communications.”

Rosenworcel adds that the FCC’s challenge as of today “is to couple Congress’s vision with strategies for successful implementation, so we’re going to hit the ground running.”

And, she adds, “It’s not time to think small—and we can’t afford to act slowly either.”

That’s why I have asked the FCC staff to prepare presentations for the Commission’s February Open Meeting on the plans for each of these tasks.

What’s on deck? Progress on the effort to create an Emergency Broadband Benefit Program, next steps for the agency’s COVID-19 Telehealth program, the work the agency is doing to improve its broadband maps, and two rulemakings seeking comment on security initiatives from Congress are on the agenda.

The EVP/CFO of the Radio Advertising Bureau, the VP/CFO of Graham Media Group, and the VP/Corporate Controller of Hubbard Broadcasting have been chosen to serve as the co-chairs for the Media Financial Management Association’s (MFM’s) 2021 CFO Summit.

Scheduled for March 11-12, this year’s two-day event will be held virtually.

And, it will be led by the RAB’s Van Allen, Graham executive Kimberly Parker, and Paul Yates (pictured), of Hubbard.

Now in its 15th year, MFM’s annual CFO Summit is an opportunity for senior media finance professionals to exchange thought leadership as they discuss issues facing the industry. Interactions with peers and expert speakers also result in real solutions to the challenges that media industry CFOs face daily.

Confirmed topics for 2021 include a look at live events now being constrained by pandemic restrictions, a media-specific economic overview, a deep dive into automotive industry trends, post-pandemic revenue opportunities, and a CFO roundtable.

 

Most recently he provided brand strategy, consumer insights, and custom market research as a consultant for NBCUniversal, Disney, Crown Media and the Weather Channel.

Before that, he previously spent 14 years directing all programming and marketing analysis for Turner Entertainment Networks as SVP/Research.

Now, he’s the new Chief Research Officer at The E.W. Scripps Company.

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He was the co-founder and COO of C3 Metrics, which he launched in May 2008 in Portsmouth, N.H.

Now, Jeff Greenfield, who in June 2020 became a strategic advisor to Overnight Dealer, has joined a media technology company devoted to making it easier to buy and sell advertising.

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It was a story first discussed in a front-page report penned by Meg James in the Sunday edition of the Los Angeles Times.

Now, the entire broadcast TV community is digesting the news that the President of CBS Television Stations and the stations’ SVP of News have been suspended while parent ViacomCBS investigates an increasing number of allegations against them for gender and racial misconduct.

 

ViacomCBS has suspended the two powerful heads of its TV station group, Peter Dunn and David Friend, amid widening allegations that the pair cultivated an environment that included bullying female managers and blocking efforts to hire and retain Black journalists.

In a statement late Monday, CBS said the two veteran executives were “placed on administrative leave, pending the results of a third-party investigation into issues that include those raised in a recent Los Angeles Times report. CBS is committed to a diverse, inclusive and respectful workplace where all voices are heard, claims are investigated and appropriate action is taken where necessary.”

CBS took action just one day after The Times published an investigation that detailed how senior executives disparaged CBS station employees in Philadelphia, the nation’s fourth-largest media market. Dunn ran the Philadelphia station from 2002 through 2004 before several promotions. For the last 11 years, he has been in charge of CBS’ 28 television stations across the country, including KCBS-TV Channel 2 and KCAL-TV Channel 9 in Los Angeles.

The division has 2,800 employees and provides local news for millions of viewers who live in cities where CBS owns a TV station, including Los Angeles, San Francisco, Dallas, Chicago and New York.

Hours after The Times’ published its investigation Sunday, the National Assn. of Black Journalists met with high-level ViacomCBS executives, including CBS Entertainment Chief Executive George Cheeks and ViacomCBS Executive Vice President Marva Smalls, who oversees the company’s diversity and inclusion efforts. During that meeting, NABJ leaders said they raised other complaints and demanded that CBS fire Dunn and one of his lieutenants, Friend, the senior vice president for news.

In a statement, NABJ criticized CBS’ hiring practices at its flagship TV station, WCBS-TV Channel 2 in New York, saying the station only recently hired a full-time Black male reporter in New York after five years without one. NABJ also said that WCBS has just one full-time Black female reporter and only one Black news producer in New York. In addition to overseeing the entire CBS TV stations chain, Dunn has managed WCBS since 2005.

Cheeks, who took over operations of the legendary broadcasting company last March, sent a note to the CBS staff a little before 7:30 p.m. Pacific time to announce the move, acknowledging that “these have been a difficult few days.”

Cheeks said that CBS Chief Operating Officer Bryon Rubin would assume the leadership of the TV station group on an interim basis. “Bryon is very familiar with your business and ready to support your efforts.”

He also noted the meeting with the NABJ delegation.

“We pledged to continue a dialogue with the NABJ on our best path forward,” Cheeks wrote.

The Times report shed new light on CBS’ $55-million purchase of a small independent television station, WLNY-TV Channel 55 on New York’s Long Island in 2011 — a deal that included a membership in the ultra-exclusive Sebonack Golf Club in Southampton, N.Y. The founder and previous owner of WLNY, entrepreneur Michael Pascucci, threw in a membership at his 300-acre retreat as part of the TV station sale.

CBS said the Sebonack membership belonged to the company but that it was put in Dunn’s name because the club did not have corporate memberships. The company said the membership was used to entertain clients and business partners.

Current and former CBS executives also questioned the thoroughness of CBS’ high-profile 2018 investigation into corporate culture, saying the outside law firms were aware of allegations about Dunn and Friend. The Times review of court filings, CBS’ internal communications and interviews with two dozen current and former CBS television station employees found that many were troubled by the outcome of the investigation and questioned the company’s commitment to cleaning up its culture.

“Senior management at the time addressed the situation with Mr. Dunn, and the company has not received any complaints about his conduct during the period since then,” CBS said last week.

Dunn declined to comment on the allegations.

CBS earlier defended its inclusion efforts at Philadelphia TV station KYW Channel 3, saying 45% of the station’s on-air reporters and anchors are Black, Indigenous or other people of color.

“I believe that I — and our stations — have a strong track record of hiring, supporting and placing women and BIPOC journalists in important roles as anchors, reporters and news directors,” Friend said in an earlier statement. “These comments I may have made about our employees or prospective hires were only based on performance or qualifications — not about anyone’s race or gender.”

Two former senior Philadelphia station executives — Margaret Cronan and Brien Kennedy — told The Times that Dunn made disparaging comments about the station’s popular evening anchor, Ukee Washington, who is a distant cousin to actor Denzel Washington. Among the complaints, Dunn allegedly called Washington “just a jive guy” and criticized Washington’s dancing.

After the report, the Philadelphia Inquirer and the Philadelphia Tribune wrote about the situation. CBS’ KYW also took a stand with sports anchor Don Bell, during the 5 p.m. newscast, calling Washington “our quarterback and the crown jewel of Philly…. The good people at this station reject racism and misogyny in all its forms — no matter where or who it may come from.”

Washington has been a fixture at KYW since the mid-1980s and was elevated to the lead anchor spot when Kennedy, the former general manager, arrived at the station in 2015. Before that, Washington spent 19 years as morning anchor and a decade as sports anchor.

In addition to the comments about Washington, Dunn allegedly refused to approve a contract extension for another Black anchor, Rahel Solomon, a Philadelphia native who served as KYW morning anchor for more than two years. Kennedy, in an interview, said that in a two-plus-hour phone call, Dunn raised “bizarre objections,” such as saying, “I hate her face.”

Solomon left CBS in 2019 for CNBC.

“We are heartened by our discussion with George and Marva that there will be real, substantial and substantive changes at CBS to ensure that it is a welcoming place for Black and other journalists of color to work, rise and succeed,” Roland S. Martin, NABJ Vice President for Digital, said in a statement earlier Monday.

Rewind the clock by a decade, and Leon Black made headlines in RBR+TVBR because of the strong dislike of the billionaire by Sirius XM shareholders. At the 2010 annual shareholders’ meeting, more voted against Black than for him as he sought to remain on the Board of Directors.

Who knew then that the founder of Apollo Global Management, which today has a majority stake in Cox Media Group, would end up emerging as a despised individual who would end up stepping down due to his ties to one of the most infamous American financiers of the modern era?

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On a historical five-year trend chart, Urban One‘s stock performance looks like a hospital patient who flatlined and suddenly received a powerful EKG to revive the heart.

After years of languishing between $1.25 and $3.50 per share, UONE in mid-June 2020 rocketed to $36.30 — only to dip to $3.48 by Sept. 7 — as “Black Lives Matter” protests ignited daytraders eager to capitalize on potential new interest in Urban One’s assets.

Since late September, Urban One shares found a new normal that, while much less in value than that mid-June burst, remains significantly higher than where UONE was one year ago.

Now, UONE is poised to get a further bump in its price — thanks to a big investment by an investment fund focused on media, technology and communications companies.

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Telos Alliance, the Cleveland-based broadcast audio technology company, has scheduled an Omnia webinar for February 3 that will offer participants the best advice on how to get their best on-air sound … “with confidence!”

The session, “Get Your Best On-Air Sound…with Confidence! Insider Tips (and Secrets) to Your Omnia Audio Processor”, is scheduled for 1pm Eastern on that Wednesday.

“Whether you already own an Omnia processor or are considering purchasing one, there is a world of untapped potential you may not even know about, waiting to be unlocked,” Telos Alliance says.

The session is to be hosted by Kirk Harnack, who will chat with Omnia experts and power users to bring participants “the little-known tips and insider secrets to getting the very best sound from your processor while exposing some of our favorite features.”

Those interested in attending the webinar can sign up here.

If you can’t make this time, register anyway and Telos Alliance will send you a recording of the webinar direct to your inbox.

Over recent years, the audio market has witnessed a progressive shift to more premium products. Take, for example, headphones and models such as the Apple AirPods Pro, along with the Sony WH-1000XM series.

These, Futuresource Consulting notes, have helped democratize higher audio quality to the mass market.

This trend, which can be seen across most audio product categories, including wireless speakers and soundbars, took another turn in 2020.

Consumers homebound due to the COVID-19 pandemic have created a unique opportunity for premium audio product demand to thrive, Futuresource notes. “With movies and music consumption playing a central role in entertaining consumers during lockdown, having good audio quality at home has never been as important,” it says.

In the soundbar segment, consumers trying to replicate a cinema experience at home, with notably premium soundbars fitted with Dolby Atmos or DTS:X, has driven demand for models costing $1,000+.

In line with this, shipments have risen significantly, up 32% year-on-year in the period Q1-Q3 2020, according to Futuresource’s Home Audio report.

“People spending less on out-of-home activities such as going on holiday or eating out has freed up discretionary income to spend on high-end audio products,” Futuresource finds, noting that 2020 was a year where consumers who always wanted to invest in products such as a nice pair of speakers, a high-end amplifier or a turntable could justify this purchase, which ultimately drove average selling prices up across many audio product categories.

Record-high demand has also been seen for luxury audio products costing over $5,000 in 2020.

“The surge in vinyl consumption during lockdown has triggered a strong interest for luxury turntables, especially as wealthy individuals had more funds available to spend on ultra high-end turntables that can easily cost over $20,000,” Futuresource says.

The recently published Luxury Audio Report from Futuresource notably highlights that consumer spend on turntables costing over $5,000 was set to witness an impressive growth of 15% in 2020.

Another strong testament to this shift to premium devices is Apple venturing into high-end headphones with the AirPods Max, which retails at $549. “It demonstrates that Apple is confident that consumers are increasingly willing to pay for high-quality sound, but also for products using exquisite materials and integrating more tech features,” Futuresource says.

While 2020 provided exceptional circumstances, the COVID-19 pandemic is expected to have a long-term impact on consumers’ lifestyles, notably with remote working set to become more common, and with commutes and business travel also expected to reduce. The post-COVID world is likely to be more home focused, creating more opportunities for consumers to listen to music and watch movies at home, which will ultimately place a stronger emphasis on the quality of home audio products.

Futuresource, consequently, anticipates this trend to drive long-term growth for high-end audio products, especially as consumers who have experienced high audio quality are usually more likely to upgrade to perfect their listening experience or access the latest tech features.

LOS ANGELES — Streamland Media, formerly Picture Head Holdings LLC, has entered into an agreement to acquire the Technicolor Post business.

The acquisition, which is subject to customary closing conditions, is backed by Trive Capital and Five Crowns Capital and is expected to close in the first half of 2021.

Streamland Media operates through integrated business units around the globe, including industry leaders Picture Shop, Formosa Group, Ghost VFX, Picture Head, The Farm Group, and Finalé Post.

These distinct businesses support feature film, episodic, interactive and emerging forms of entertainment by providing customized products for use in picture and sound finishing, visual effects and marketing.

The Technicolor Post business will be merged into Streamland Media’s existing portfolio of businesses. There will be no interruption to Technicolor Post’s clients during this integration, and all employees dedicated to Technicolor Post will be part of this transaction.

“The strategic sale of Technicolor Post is part of our long-term vision for Technicolor Production Services to focus on VFX and animation for the entertainment industry, and creative services and technologies for the advertising industry, which provide the maximum value to our clients,” said Technicolor CEO Richard Moat. “We will continue to focus on these core areas through our award-winning creative studios The Mill, MPC, Mr. X and Mikros Animation.”

 

Quintech Electronics & Communications Inc., an Evertz company focused on the design and manufacture of RF matrix switches for broadcasters, satellite, and broadband networks, says the XTREME-256 matrix switch is certified for use in METs WGS Terminals.

The XTREME-256 was certified by Aberdeen Proving Grounds to operate in the AN/GSC-52B Modernization of Enterprise Terminal (MET) Ka and X band Wideband Global Satcom (WGS) stations.

The MET station with the XTREME-256 matrix was tested and certified by the U.S. Army Forces Strategic Command (ARSTRAT) as compliant with MIL-STD-188-164BCN1 standard for operation with wideband satellites for both uplinks and downlinks.

“These product lines have built-in local control that runs concurrently with the standard Web browser, SNMP, and API over TCP remote controls,” says Keith Blystone, Quintech Electronics’ Government Account Director. “The XTREME input and output gain controls made aligning the terminal for varying cable lengths much faster, resulting in quicker installation times and time to operation.”

Acting FCC Chairwoman Jessica Rosenworcel has wasted no time in making the Commission her own, until a permanent head to replace Ajit Pai is nominated by the Biden Administration.

On Monday, Rosenworcel unveiled a slew of staff appointments and special designations to her office.

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PORTLAND, ORE. — With no immediate impact expected for its radio stations, at least in the short-term, Alpha Media has announced that it has filed for Chapter 11 bankruptcy protection.

It’s a move designed, RBR+TVBR has learned, to reduce its massive $267 million debt burden and restructure its agreement with one key lender.

And, it is a decision that the company founded by Larry Wilson and today led by Chairman/CEO Bob Proffitt says will strengthen it once it emerges with a reorganization plan.

Plus, it will allow Alpha to invest in expanded digital capabilities.

In a statement posted to the Alpha Media website, the audio media company that owns such stations as KXL-FM and KINK in its home market of Portland; WDHT “Hot 102.9” in Dayton; and KBAY and KEZR “Mix 106.5” in San Jose says the Chapter 11 filing will also raise incremental capital to allow the company “to successfully navigate current market conditions and pursue growth opportunities.”

There will be no management changes. Everyday station operations remain as-is.

And, with its clusters such as Dayton; Louisville; and Lincoln, Neb.; Alpha has the ingredients for a strong emergence from bankruptcy.

It is San Jose and its home market of Portland, each ravaged by COVID-19 in 2020, that are the toughest for Alpha.

In the statement, Alpha revealed that it filed a pre-arranged plan of re-organization, disclosure statement and voluntary petition for relief under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court in the Eastern District of Virginia.

Without naming the lenders it is working with, Alpha and the lenders agreed to a plan that gives the broadcasting company new capital — in the form of committed debtor-in-possession and exit financing.

Translation: the lenders will bankroll Alpha through its exit from bankruptcy.

And, with the emergence from bankruptcy, Alpha management and “certain” lenders will collectively own 100% of the post-reorganization Alpha Media. This will require the filing and subsequent approval of forms submitted to the FCC.

And, as was the case for Cumulus Media, iHeartMedia, Estrella Media predecessor LBI Media, and Steel City Media, restructuring of the Alpha Media balance sheet will require receipt of bankruptcy court approval in addition to regulatory approval.

If all goes according to plan, Alpha expects to conclude the restructuring process by the end of June.

Commenting on the Chapter 11 decision, Proffitt said, “We have made significant progress in aggressively deleveraging our business in recent years. As we proceed with our financial restructuring to improve our capital structure and manage through the ongoing downturn caused by the COVID-19 pandemic, the agreement we reached today will leave Alpha Media well positioned for a market recovery as a stronger and even more competitive company.”

He also offered words that Entercom President/CEO David Field has shared time and again in recent years.

“Broadcast radio is the leading reach medium in the United States, with attractive ROIs for advertisers, and radio continues to be an indispensable communications platform nationwide,” Proffitt said. “We believe the balance sheet restructuring will provide greater financial resources and flexibility to Alpha Media, enabling the company to strengthen its position as a leading mid-market broadcaster in the United States, and invest in new digital capabilities to better serve our advertisers and communities.”

And, in a nod to the performance of Alpha’s stations in Nebraska’s second-largest market, the Miami Valley of Ohio, and Louisville, Proffitt said, “Our core business continues to perform well despite current market challenges. We will continue to invest in our talented teams to foster the unique culture that has been key to Alpha Media’s success in delivering dynamic, diverse and exciting content to our communities.”

Sheppard, Mullin, Richter & Hampton LLP is serving as Alpha Media’s lead restructuring counsel in connection with this process; Kutak Rock LLP is serving as Virginia counsel.

Wiley Rein LLP is serving as Alpha Media’s FCC counsel.

EY Turnaround Management Services LLC and Moelis & Co. are serving as the company’s financial advisors.

Kramer Levin Naftalis & Frankel, Quinn Emanuel Urquhart & Sullivan, McGuireWoods and Fletcher Heald & Hildreth are serving as legal co-counsel to an ad hoc group of certain lenders; GLC Advisors & Co. is serving as financial advisor.

— Reporting by Meagan Cauthen and Ed Ryan, with editing by Adam Jacobson and editorial research from the RBR+TVBR West Coast Bureau.

Stretto is serving as Alpha Media’s claims agent. Additional information concerning the Chapter 11 Court process is available on Alpha Media’s restructuring website: https://cases.stretto.com/AlphaMedia. The corresponding information hotline can be accessed at the following toll-free number: (855) 395-0761.

RBR+TVBR InFOCUS Podcast: Bob Proffitt, Alpha Media What role have Alpha Media’s flagship stations played in informing and entertaining listeners across Oregon’s biggest market, and how have the stations worked with clients in “the rebound” from COVID-19 shutdowns? RBR+TVBR got the exclusive answer from President/CEO Bob Proffitt, who also shared positive stories from two Ohio markets where Alpha Media has stations, in this recent RBR+TVBR InFOCUS Podcast, sponsored by Dot.FM.

Just after Midnight on Monday (1/25), Alpha Media filed Official Form 201, a Voluntary Petition for Non-Individuals Filing for Bankruptcy with a Virginia Eastern Bankruptcy Court.

The case has been assigned to Kevin Huennekens, and the deadline for filing claims has been set for July 26, 2021.

Who are the biggest creditors Alpha Media, headed by Bob Proffitt, needs to pay?

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EUREKA, CALIF. — At 6:30pm Pacific on Friday, Jan. 8, subscribers to the dominant cable TV services provider in Humboldt County, Calif., lost access to the NBC and CBS affiliates serving this pocket of the Golden State known for its greener pastures, behind the “Redwood Curtain.”

The “blackout” of the stations came as Altice USA’s Suddenlink, by law, was prevented from offering two Cox Media Group stations in the absence of a new retransmission services agreement.

Today, the stations remain absent from Suddenlink’s local systems, as do other CMG stations once owned by Brian Brady’s Northwest Broadcasting. Now, the Member of Congress serving Northwest California is ready to take action on Capitol Hill that could help thwart such disputes — and the consumer harm they create.

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WASHINGTON, D.C. — The General Counsel of the FCC is stepping down. While he has agreed to continue to serve in the Wireless Telecommunications Bureau, acting Chairwoman Jessica Rosenworcel has appointed his acting successor.

Rosenworcel also made some moves in the wireless arm of the Commission.

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