Report: iHM To Announce New Pay Streaming Services

iHeartMedia will announce this week the launch of a major paid streaming service, The NY Post has learned.

The paid streaming service, the first of its kind for a traditional radio outfit, will include a $5-a-month ad-free radio station and a $10-a-month on-demand music service, according to people familiar with iHeartMedia’s plans.

IHeartMedia Chief Executive Bob Pittman is expected to make the announcement during the company’s music festival in Las Vegas this week, sources said.

While the service is close to being announced, iHeart must still secure music licenses before it begins.

The moves come as Pandora recently took the wraps off its $5 service and Amazon is expected to do the same for owners of its Echo device.

iHM, however, is planning to build different functionality for its $5-per-month service, including off-line play, sources said iHeart will get a toehold in the lucrative subscription business and a direct credit card relationship with its listeners.

Digital music subscriptions rose by 50 percent last year, and paid streaming is set to grow from $2.2 billion in 2015 to $12.7 billion by 2020.

The San Antonio, Texas-based company has already built a sizable digital business with its iHeartRadio app that lets consumers stream the company’s 850 radio stations — which is expected to continue when the paid service is introduced.

The radio giant, however, has been figuring out how to navigate a more mobile digital music world that requires it to pay for a music on less favorable terms than its current terrestrial business, which reeled in $6.24 billion in revenue in 2015.

The paid streaming service will require new licenses from the major labels, and iHeart is negotiating directly with those, sources said, rather than opting for statutory radio licenses.

According to the Post, yhe terrestrial radio business has been in turmoil in recent years as streaming services, including Pandora, Spotify and Apple, steal away listeners. IHeart has the additional issue of $21 billion in debt and stagnant revenue over the six months ended June 30.

Spotify, Apple Drive Music Industry’s 8% First-Half Growth

After almost two decades of relentless decline caused by piracy and falling prices, the music business is enjoying a fragile recovery thanks to the growth of paid streaming services like Spotify Ltd. and Apple Music, according to Bloomberg.

Retail spending on recorded music grew 8.1 percent to $3.4 billion in the first half of 2016, according to a draft midyear report from the Recording Industry Association of America that was obtained by Bloomberg News. That means the U.S. industry is on pace to expand for the second straight year -- the first back-to-back growth since 1998-1999.

The credit goes to streaming -- Internet services that give listeners commercial-free access to millions of songs for a monthly fee -- or for free if they’re willing to hear ads. U.S. streaming revenue grew 57 percent to $1.6 billion in the first half of 2016 and accounted for almost half of industry sales, more than countering shrinking purchases of albums and singles. Subscriptions totaled $1.01 billion, according to the RIAA data.

Source: PrettyFamous | Graphiq

The results can be seen in the financials of large music companies. Vivendi SA’s Universal Music Group reported first-half growth, while through nine months ended June 30, sales at Warner Music Group, owned by billionaire Len Blavatnik, grew 8.5 percent to $2.41 billion, according to filings. Sony Music Entertainment also reported gains in its latest quarter.

The industry is reluctant to declare victory. Annual sales have hovered around $7 billion for six years, down by half from the 1999 peak, according to RIAA data. Meanwhile the labels are still negotiating new contracts with Google Inc.’s YouTube and Spotify, two of the largest purveyors of free music in the world.

While sales from ad-supported, on-demand streaming grew 24 percent to $195 million in the first half of 2016, according to the RIAA report, those services aren’t doing enough to convince people to pay for music and and don’t make enough money off their free users, the labels say.

Study: Sixty Percent Of FM Chips In U-S Not Activated

The North American Broadcasters Association (NABA) Monday published new information on the penetration of FM chips in smartphones for the North American market.

Working with the National Association of Broadcasters (NAB) and using data compiled by research and consulting firm ABI Research, this sales data shows the extent of FM chip penetration in the top-selling smartphones for Canada, Mexico, and the U.S. for the fourth quarter of 2015 and the first quarter of 2016.

As demonstrated by this data, most of the top-selling smartphones in all three countries include an FM chip, which means that these devices can receive free, over-the-air FM radio signals, depending upon whether the FM chip is activated in the device. For a variety of reasons, these FM chips are often not activated, most notably in all of Apple’s iPhone products (which are top sellers). Broadcasters are working with smartphone device manufacturers and cellular carriers to increase the number of models that have the FM chip activated so that more consumers have access to FM radio on their smartphones.

“NABA believes that providing statistical data on FM chip activation in smartphones for North America is an important step for raising awareness of this technology among radio broadcasters and consumers,” said NABA Director-General Michael McEwen.

“FM radio is enjoyed around the world and is a global standard. This fits well with smartphones where FM chips are already installed and sold globally. We applaud NABA for their work to build awareness on the benefits of activating FM chips in North America,” commented NAB Executive Vice President and CTO Sam Matheny.

WWOne Taps Dan Mitchell For Classic Rock Format

Dan Mitchell

Denver afternoon mainstay Dan Mitchell has joined Westwood One to anchor afternoons for the company’s Classic Rock 24-hour format, which airs on 129 stations nationwide.

Mitchell is joining Westwood One after eight years with Denver’s KQMT 99.5 FM The Mountain, where he had the top rated afternoon show in the city. Throughout his 36-year career, he has worked at several legendary radio stations, including a decade at KOOL 105 in Denver. Mitchell also spent nine years in the earlier days of satellite delivered radio formats on the former Jones Radio’s Classic Rock format. He’s collected numerous prestigious awards from the Colorado Broadcasters Association, including “Top Radio Personality.”

“Dan’s personality, his knowledge of the music, and his love of entertaining will be a great addition to our Classic Rock format,” commented David Felker, VP/Programming at Westwood One, and PD of the Classic Rock format. “It’s a real indication of the quality of personalities that make up our 24-hour formats now.”

“I’m so excited to be on the national stage again,” commented Dan Mitchell.  “My goal has always been to connect with my listeners on a daily basis, by being real. We have laughed, cried, learned, questioned, and celebrated together.”

Ford Turns-On Harman Brand B&O Play

Ford is turning to Harman's high-end B&O Play brand to give it an edge in the sound wars raging inside today's cars and trucks and is ditching longtime audio partner Sony, ending a relationship that dates back at least 16 years.

According to The Detroit Fee Press, The Dearborn automaker said today that B&O Play sound systems will begin appearing in Ford cars and trucks next year. Eventually, B&O Play will be in all Ford vehicles.

B&O Play is a brand that was created in 2012 by Danish audio manufacturer Bang & Olufsen. Stamford, Conn.-based Harman International acquired Bang & Olufsen's car audio business in 2015.

Audio systems in today's cars and trucks continue to evolve as digital technology has allowed manufacturers to create better sound out of smaller speakers. Ford believes B&O Play's approach to sound and how its sound systems are designed will put the Dearborn automaker at the forefront of today's audio technology.

"B&O play has a wonderful audio heritage that is rooted not only in music but how to take that music and create experiences that foster feelings like freedom, as well as great design that can spark curiosity and creative exploration," said Ford senior design strategist Anthony Prozzi.

Bang & Olufsen sound systems are available in a wide range of Audi, Aston Martin, BMW and Mercedes-Benz models. Harman and its other brands are in cars made by Fiat, Chrysler and Volkswagen.

Nielsen Unveils Timetable For Total Audience Measurement

Almost a year after taking the wraps off its multiplatform total audience measurement tool, Nielsen said it has set a release schedule and will complete the rollout of its total content ratings, or TCR, by March 1.

Currently, reports Adweek, the company has given access to the data—which includes apples-to-apples measurement of all viewing across linear TV, DVR, VOD, connected TV devices (Roku, Apple TV and Xbox), mobile, PC and tablets—to the 50-plus participating TV and digital media brands that have been involved in the evaluation process. Until Aug. 1, those networks and brands only had access to their own data and no one else's.

Through the end of this year, Nielsen will make "select data" available to agencies and the media. On Jan. 1, the full total content ratings data will also become available to agencies, while the media will continue to only receive the select data.

Finally, on March 1, the metrics will be available to all Nielsen clients, including all networks, analysts and press. Until then, clients who receive access to the full data will only be able to use it for "internal" purposes, said Nielsen, as they evaluate the data before the full release in March.

It was almost a year ago that Nielsen gave Adweek a first look at its total audience measurement plans. At the time, executives had hoped to roll it out in time for this year's upfront presentations, but by March, the company had pushed back the timetable.

The delay, said Steve Hasker, global president and COO, was caused by "the reality of working through the data with clients, getting them comfortable with the new data sets that they're seeing."

The Mix Group Adds Kraig Kitchin as Consultant

Kraig Kitchin

SoundMind’s Co-President Kraig Kitchin joins top radio imaging and production company, The Mix Group, as a consultant.

Based in Los Angeles, Kitchin collaborates with company President Jason Garte on new initiatives to optimize revenue performance.  While The Mix Group currently services more than 1,000 radio stations, Kitchin intends to expand their reach both domestically and abroad while also leveraging topline growth opportunities in other aspects of the business.

Kitchin comments, “Once stations discover The Mix Group, there’s no turning back.  Jason and his team of talented producers create an exceptional sound that differentiates a station from all others in the market.  The individual attention to detail for each station client is really remarkable.”

Garte says, “Kraig’s experience and knowledge of both syndication and radio in general makes him the ideal co-pilot to lead this starship into our next generation, and the thing is—you just couldn’t find a nicer guy on the planet!”

In addition to consulting with The Mix Group, Kitchin operates several businesses in partnership with top ranked, distinguished radio personalities.  As co-president of the talent management firm SoundMind, he focuses on managing the businesses of high profile broadcast personalities and companies.  He’s also the chairman of the National Radio Hall of Fame, a position he assumed in 2014.  Prior to launching SoundMind in 2007, Kitchin served for nine years as president/COO of Premiere Networks, Inc., the number one radio network in the country, syndicating 90 radio programs and services to more than 4,600 radio affiliates, reaching 190 million listeners weekly.

Study: Podcasting Still Faces Headwinds

Much has been written about podcasting's explosive growth, its advertising prospects and its technical challenges.

Is podcasting approaching its reach potential?

How many are listening to podcasts regularly today and, from an advertiser's perspective, how mass appeal is it?

Over the last year Bridge Ratings has done continuous monthly studies and analysis on this exciting audio platform and in the just-completed August study we've clarified podcasting's potential for growth.

“Podcasting still faces a headwind as a mass-reach medium the implications of which are yet to be determined. However, its ability to finely target consumers in an on-demand world will continue to be one of its strongest benefits,” states Dave Van Dyke, President/CEO at Bridge Ratings LLC.

While 20% of Americans have listened to a podcast in the past 30 days, how many at this time are still likely to begin listening to a podcast and, more importantly, how many have no interest in podcasts?

 The first set of bars to the left shows trends for those persons in the sample who have listened to a podcast in the past week.

14% listened to a podcast in the past week and that number has not changed since our February 2016 fielding of a similar study.

The second set of bars from the left represents trends in podcast consumption over the preceding 30 days. We're seeing nice growth here with 20% of the sample having listened to a podcast in the previous 30 days up from 19% in February and 15% last August 2015.

Similar trends are included for those that have ever listened to a podcast and for those that expressed interest in listening in the future.

According to Van Dyke, what is perhaps the most intriguing metric included here is the final set of bars to the right: Those persons in our sample that indicated they have no interest - at this time - in listening to a podcast.

While this number has come down over the three studies quoted here, it remains a substantial number of potential consumers of this audio platform.

Number Of LPFM Stations Nearly Doubled Since 2014

More than 750 new low-power FM (LPFM) community radio stations have been licensed to join the FM airwaves since 2014, according to the Federal Communications Commission. This has nearly doubled the total number to more than 1,500 LPFM stations across the U.S. and its territories.

The Pew Research Center reports this surge is in part the result of a new window for applications that the FCC opened from Oct. 15 to Nov. 14, 2013. Thousands of applications poured in during that period. The window follows the passage of new legislation signed in 2011 that opened up opportunities for LPFM stations to operate in larger markets and urban areas.

LPFM stations are spread across all 50 states. Twenty-two states have a moderate number of stations (20-39), though three have more than 100 stations each: Florida (121), Texas (114) and California (102).

The LPFM stations serve both rural and urban communities, but with an operating range of 100 watts or less, most have a broadcast reach of just a few miles and cater to intensely local and niche audiences. The FCC created its Low Power FM service in 2000 in an effort to better serve local communities following a wave of consolidation in the industry and combat the proliferation of unlicensed, primarily low-power “pirate” radio stations.

LPFM stations can only be licensed to not-for-profit educational organizations and institutions, government or non-government entities that provide public safety radio services, or tribes and tribal organizations recognized by the federal government.

Cincy Radio: Judge Denies Intervention In Lisa Wells Drug Case

Lisa Wells

A Miami County, Ohio judge on Monday denied a defense lawyer and Cincinnati radio personality’s request for intervention in lieu of conviction on felony drug possession charges following a Jan. 25 traffic stop on Interstate 75 near Piqua.

State troopers who stopped Lisa Wells, 37, of West Chester reported seeing pills on the front seat of the vehicle after the stop. Also found in a search was a baggie of assorted pills in her purse, according to the Ohio Highway Patrol report.

Common Pleas Judge Jeannine Pratt said Wells did not meet the intervention/treatment program requirements because she used opioids in violation of her bail conditions and notes on her treatment showed failure to make progress, attend all counseling and participate as required in groups.

Pratt told Wells she found she had “no genuine investment in your treatment.”

With the ruling, the criminal case will proceed through the court process.

Wells is a defense lawyer and served as a guest and legal analyst on WLW 700 AM.

A not guilty plea on her behalf was made in June on four felony counts of possession of drugs identified as amphetamine and Oxycodone.

A request for intervention in lieu of conviction on the drug charges was filed in June. Wells was ordered to undergo a comprehensive drug and alcohol evaluation and provide Pratt with a detailed treatment plan. Pratt continued a hearing on the evaluation and plan in August after finding information submitted was only “skeletal.”

Emmy TV Ratings Hit All-Time Low

(Reuters) -- The U.S. television audience for Sunday's Emmy Awards dropped to 11.3 million viewers on average, the lowest level on record in the 68-year history of the industry's highest honors, according to ratings data released by ABC on Monday.

The three-hour ceremony hosted by Jimmy Kimmel was broadcast live on Walt Disney Co-owned ABC and competed against NBC's popular "Sunday Night Football," which generally draws the largest TV audience of the week.

The game between the Green Bay Packers and Minnesota Vikings attracted about 22.8 million people, according to NBC, a unit of Comcast Corp.

The number of Emmys viewers was down around 5 percent from last year, ABC said. The 2015 ceremony was broadcast on Fox.

Sagging ratings have also hit other big entertainment awards shows, including the Oscars, which in February was watched on TV by just 34.3 million Americans compared with 43.7 million in 2015.

The biggest Emmy winners this year were HBO's medieval fantasy hit "Game of Thrones," which won the coveted best drama series for a second year, and FX's much talked about dramatization of the 1995 O.J. Simpson trial, "The People v O.J. Simpson," which took home nine Emmys including best limited series.