Many industry-watchers have been fixated on the travails of Cumulus Media, which ousted its founding family earlier this year and replaced them with new management backed by the private-capital firms that now control the company. It hasn’t yet resulted in a massive turnaround for Cumulus stock, which is up about ten cents or so from its lowest low earlier this fall. Still, that values the country’s second largest radio conglomerate at a paltry $82 million and change — you can now pick up a few shares of Cumulus for a dollar and still have change left over for a gumball.
But Cumulus is not the only company now trading under a buck. There’s also Emmis Communications — the primary driver behind the NextRadio application and a major innovator in the HD Radio space — whose shares are now trading at just 62 cents, triggering a delisting warning from NASDAQ. Just three months ago, Emmis stock was worth $1.42 per share; a decade ago, the stock was worth 100 times more than it is today. Continue reading “Radio Stocks on the Dollar Menu”
Things continue to spiral downward over at Cumulus Media, whose stock closed at 29 cents at the end of trading last week. That put the company’s total market capitalization at just $67.8 million dollars, or just 39% of what the HD Radio system sold for two months ago. NASDAQ has threatened to delist CLMS stock next spring unless it can resume consistent trading above $1.
Perhaps a better comparison might be to a direct competitor: see Townsquare Media, one of the second generation of radio consolidators formed in the last half-decade and now the third-largest owner of radio stations in the country (right behind Cumulus). Townsquare owns about 100-150 fewer stations than Cumulus does, has no holdings in network syndication or distribution companies, but it is making acquisitory forays into online platforms/apps and just three months ago purchased a traveling carinval company. Sound familiar? Only on the surface, because Wall Street valued Townsquare at 106 million dollars last Friday ($10.70/share on 9.94 million shares). Continue reading “Cumulus Meltdown Continues; is iHeartMedia Next?”
At the close of business last Friday, and with little fanfare, the FCC released its first AM revitalization Report and Order. This rulemaking began two years ago and the most significant outcomes have little to do with the AM band itself.
Comparing the FCC’s proposed rulemaking to the R&O shows that most of the agency’s initial proposals will be enacted. This includes things like allowing for more flexbility on interference calculations and protections, antenna siting and design, the option to use analog transmission protocols that are more energy-efficent, and increased utilization of AM’s expanded band channels. But the meat of the R&O involvews developments regarding the FM band and the utter lack of comment on a digital strategy for AM. Continue reading “AM Revitalization Order Released”
If you read the latest round of ex parte filings in the FCC’s AM revitalization proceeding, you’d think the future of the band hangs on its eventual migration to FM. Yet of the many things the agency’s considering to help AM broadcasters, opening a new applications window for AM stations to acquire FM translators has not been one of them. Now the drafting of new policy has begun that would take AM revitalization from consideration to implementation — and broadcasters are making a last-minute push to grab some FM crumbs.
In the last month, a motley crew of advocates for more FM translators have been making the rounds at FCC HQ. These include trade groups, individual broadcasters and other interested parties. Some of their arguments espouse wrongheaded notions of “salvation” for the most beleagured AM broadcasters. Continue reading “AM Broadcasters' Last Grasp at FM Translator Marketplace”
Next month is the National Association of Broadcasters’ annual radio convention, to be held in Atlanta. I wish I could be a fly on the wall in some select panels and the local off-hours watering-holes. Fireworks are expected over an issue that’s been feistily percolating for more than a year — the integrity of the U.S. radio ratings system.
First, a quick primer about radio ratings in the United States. Administered by Nielsen, the ratings are collected by two primary means: listener diaries and Portable People Meters (PPM). The PPM system is a small pager-like device that selected listeners carry around with them; when exposed to a station’s broadcast, the meter logs the station and time spent listening. How? Stations that subscribe to the Nielsen ratings in PPM-enabled markets broadcast a special audio watermark that is inaudible to listeners, but that PPM devices can hear. The watermark is a 1000-3000 Hz tone; as a proprietary technology, the only way to work out how it really operates is by observing it in the wild or by examining its patents.
When the PPM system was introduced in 2007, it was touted as a new era for measuring radio ratings because listeners aren’t all that great about accurately and meticulously recording all the stations they’re exposed to. For example, radio often functions as background noise in places like restaurants, stores, and offices; when you’re at the dentist are you really paying attention to the smooth/lite pabulum oozing from the waiting room ceiling? Today, four dozen markets are measured using PPM technology. Continue reading “Voltair Controversy: The Seduction of Denial”
When the FCC announced the creation of an “AM Revitalization Initiative” in 2013, the proposal included a grab-bag of industry desires, such as the right for AM stations to utilize FM translators and for AM stations to move from hybrid analog/digital broadcasting to the all-digital AM-HD protocol. But to the consternation of industry lobbyists and HD-backers there’s been no movement on this initiative — so now they’re beginning to whine about it.
Case in point is a commentary published in late June by Frank Montero, an attorney at D.C. communications law powerhouse Fletcher, Heald & Hildreth, which laments that AM broadcasters are being held hostage without access to FM translators and accuses the FCC of playing political football with the future of AM itself. It’s full of questionable assertions and revisionist history. Continue reading “AM Broadcasters Still Seek Translators, Digital Authorization”
Just received a comprehensive update on the work of the Radio Preservation Task Force, an initiative announced last year by the Library of Congress to digitally preserve local radio history. About 100 scholars spent last fall scouring libraries, museums, historical societies, and stations around the country looking for recordings large and small. More than 100,000 were discovered, and that impressed the LoC’s National Recording Preservation Board enough to move on to “phase two,” which (in part) will involve more detailed examination of our finds.
The Task Force is also lining up some specific preservation programs in conjunction with other media preservationists. Continue reading “Next Steps for Radio Preservation Task Force”
Just a couple of days after prognosticating on the policy future of all-digital AM-HD radio broadcasting, one of the key players in the industry’s testing regimen issued his own reality check: for digital radio to succeed, all over-the-air broadcasting must migrate to FM.
Andrew Skotdal is the owner of two AM stations the NAB et al. used to test all-digital AM-HD in Seattle this fall; he presented on these tests at the NAB Radio Show. In prior trade coverage, Skotdal has been upbeat about the future of digital AM broadcasting, though cognizant of its uphill climb. His latest missive shatters many illusions. Continue reading “Skotdal: The Future of AM is FM”
Since my run-in at the NAB Radio Show with industry forces spearheading experimentation with the all-digital AM variant of HD Radio, they have been busy. Back in September, testing was underway on stations in Seattle—the eighth and ninth such stations to conduct tests in the last two years—and the NAB et al. described the preliminary results as quite positive.
When the tests concluded in October, the president of the stations hosting them in Seattle said that while the experience was good, some listeners wondered if their stations would be going all-digital anytime soon. Not for at least 10 years, replied the executive, “because regulatory efforts take time.” Continue reading “Next Steps for All-Digital AM-HD”
Several radio stations in small markets throughout the United States are licking their wounds after suffering cyber-intrusions.
The alarm was first sounded by a cluster of radio stations in Louisiana on October 16. When the morning crews arrived, they found they had no access to the stations’ automation systems or music libraries. Instead, the data on their computers had been encrypted and frozen…and then they began to receive e-mails asking them to pay hundreds of dollars in order to set their machines free.
The stations’ owner reports that instead of paying the ransom demand, they’ve reported the intrusions to the police and plan to rebuild their systems from scratch. It will cost “tens of thousands of dollars” to undo the damage that the malicious software has inflicted, and they apparently keep finding more compromises as they continue their damage assessment.
Then last week, stations in Arkansas and Virginia announced that they, too had been infected by software that scrambled several of their computer systems and demanded payment to restore them. And this week, a cluster of stations in Michigan belatedly reported that they suffered the same sort of attack in September. Continue reading “Radio Stations Fall Victim to Cyberattack (Again)”