SiriusXM Reports Record Subscriptions

SiriusXM today announced third quarter 2015 operating and financial results, including record third quarter revenue of $1.17 billion, up 11% versus the third quarter of 2014.

Net income in the third quarter of 2015 was $167 million versus $136 million in the third quarter of 2014.  Net income per diluted common share was $0.03 in the third quarter of 2015 versus $0.02 in the year ago period.  Adjusted EBITDA was $447 million in the third quarter of 2015, a quarterly record high and up 17% from $381 million in the third quarter of 2014.

"With subscribers at an all-time high of nearly 29 million and record adjusted EBITDA and adjusted EBITDA margin, our third quarter was one of the strongest performances in our company's history.  We are confident of our continued success in the fourth quarter, and we are increasing our guidance for self-pay and total net subscriber additions, revenue, and adjusted EBITDA," said Jim Meyer, Chief Executive Officer, SiriusXM.

Jim Meyer

"SiriusXM's diverse bundle of valuable content is our biggest single competitive advantage.  Since the start of the third quarter, we extended our long-standing relationship with the NFL for another six years. We also successfully launched an exclusive channel created with Andy Cohen; and we launched our new and exclusive 24/7 original headline news channel with FOX News.  Stay tuned for more announcements as we continue our non-stop efforts to add and retain differentiated, exclusive content to our bundle," added Meyer.

Free cash flow and free cash flow per share for the third quarter of 2015 exclude the effect of SiriusXM's settlement of certain pre-1972 recordings litigation.

3Q 2015 Highlights:

• Strong subscriber growth continues. SiriusXM added 525,000 net new subscribers in the third quarter, a 21% increase from the 433,000 net new subscribers added in the third quarter of 2014. Self-pay net subscriber additions were 381,000 in the third quarter of 2015, in-line with growth in the third quarter of 2014. Total paid subscribers climbed 8% to approximately 29.0 million, and self-pay subscribers also increased 8% to 23.8 million, both record highs.
• Third quarter adjusted EBITDA rises 17% to a new record. Adjusted EBITDA of $447 million in the third quarter of 2015 was the highest quarterly amount in the company's history, an increase of 17% over the $381 million reported in the third quarter of 2014. Adjusted EBITDA margin was a record high of 38%, an increase from 36% in the third quarter of 2014.
• Free cash flow per diluted share increases 54%. Free cash flow of $369 million was up 38% from $267 million in the third quarter of 2014. With increased cash flow and an 11% lower average diluted share count from the company's share repurchase program, free cash flow per diluted share climbed 54% to 6.9 cents in the third quarter of 2015, up from 4.5 cents in the third quarter of 2014.

Pre-72 Hits Battle Expands To New Jersey

Arthur and Barbara Sheridan, an Illinois couple who owned several doo-wop, jazz and R&B recording companies in the 1950s and 1960s, have filed two putative federal class actions in New Jersey against Internet and satellite radio providers iHeartMedia Inc., Sirius XM Radio Inc. and Pandora Media Inc., over allegedly unpaid royalties and unauthorized use of pre-1972 recordings, according to the NJ Law Journal.

The fight over royalties for music recorded before Feb. 15, 1972, which are not mandated under the federal Copyright Act of 1976, has made national headlines recently: In June, Sirius XM agreed to pay $210 million to several major record labels to settle a dispute over pre-1972 royalties and media reports said Pandora is preparing to settle with major labels over the same issue for $90 million.

Federal courts across the country have split on whether royalties are due on pre-1972 recordings under their respective states' laws. In related cases filed against Sirius XM by members of the 1960s band The Turtles, federal judges in New York and California found in favor of the plaintiffs earlier this year. But a federal judge in Florida found against the plaintiffs, saying state law did not entitle pre-1972 copyright owners to pursue damages for unpaid royalties.

In a pair of suits filed Oct. 19 in the U.S. District Court for the District of New Jersey—one against iHeartMedia, which operates the iHeartRadio Internet radio service, and the other against both Sirius XM and Pandora—the Sheridans are seeking damages under New Jersey state law on behalf of themselves and similarly situated copyright holders.

Both suits allege the defendants "profit handsomely by advertising and offering these sounds to the public," but have failed to obtain permission to use pre-1972 recordings or to pay royalties on them.

The Sheridans have filed similar suits against iHeartMedia in federal courts in Illinois, California and Georgia, and against Sirius XM and Pandora in New York.

CBS Radio Tells Court It Doesn't Play Pre-72 Hits

ABS Entertainment, which owns the recordings of Al Green, among others, has lawsuits filed against CBS Radio, iHeartMedia and Cumulus asserting violations of various state laws and demands that the defendants stop publicly performing their works without license.

On Tuesday, CBS Radio filed a motion to strike the complaint and are bringing a new argument in this controversy, according to Billboard.

The radio giant says that it doesn't perform ABS' pre-1972 recordings. "CBS does not play vinyl sound recordings," states a memorandum filed in California federal court.

"In fact, every song CBS has played in the last four years has been a post-1972 digital sound recording that has been re-issued or re-mastered. For example, 'Tired of Being Alone' is found on UMG's 2006 The Best of Al Green compilation. That CD contains the re-mastered version of the song created and registered for copyright in 2000. The 'Let's Stay Together' recording CBS played is the 2003 re-mastered sound recording as re-issued in 2009 by Fat Possum Records."

According to Billboard, plaintiffs will surely argue this doesn't matter, that the derivatives are protected under California law as well, but CBS asserts otherwise -- that copyright attaches to the specific aural version of a work and what radio audiences are hearing are "actual sounds" coming from re-mastered versions. If the theory holds, and the new works are covered by federal copyright law, it would mean there's only a limited public performance right for the digital sound recordings, subject to a compulsory license.

CBS' legal brief also aims to rehash the arguments that sound recordings have long been broadcast on radio stations without restriction, that record companies have recognized this by attempting to lobby Congress to change the law by requiring a license for the performance of such recordings and that California common law copyrights prevents unauthorized copying but not performance.

YouTube To Offer Subscription Service

Alphabet Inc's YouTube will launch a $10-a-month subscription option in the United States on Oct. 28 that will allow viewers to watch videos from across the site without interruption from advertisements, the company said on Wednesday.

Starting early next year, the service called YouTube Red will add exclusive shows and movies from top YouTube creators including PewDiePie, Lilly Singh and The Fine Brothers.

"Consumers are embracing paid subscriptions of ad-free content at an incredible pace," Robert Kyncl, YouTube's chief business officer, said at an event at YouTube's production space in Los Angeles.

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Matthew Glotzbach, VP Product Development

The effort offers a new source of revenue for YouTube and its video creators. Rival streaming sites such as Vessel and Interactive Corp's Vimeo are luring online stars to their paid offerings, which provide creators a larger cut of revenue than they typically receive from YouTube's ad-supported videos. Facebook also is taking steps to boost video viewership on its site.

YouTube will continue to offer its free, ad-supported service, which has more than 1 billion viewers around the world.

Creators of 99 percent of the content watched on YouTube have agreed to make their videos available on YouTube Red, Kyncl said. YouTube is still negotiating with a "few" media companies that he hopes to bring on board before the launch, he said. Walt Disney Co was still talking with YouTube as of Tuesday, according to a source familiar with the discussions.

A Disney spokeswoman did not immediately respond for a request for comment.

The YouTube Red service will be available initially only in the United States. The company aims to expand it to major markets around the world over the next year. Users who sign up for YouTube Red through Apple Inc's app store will pay $13 a month.

Officials said the majority of revenue from subscriptions will go to video creators, though they declined to provide details. For ad-supported videos, YouTube typically keeps 45 percent of revenue.

Kyncl said YouTube Red is targeted at the same audiences that make up the bulk of YouTube's audience now, including gamers and young women.

YouTube also launched a new YouTube Music app that is free to watch with ads. Subscribers to YouTube Red can watch YouTube Music content without the ads.

San Diego Radio: New Line-Up Unveiled At KOGO

Sean Hannity

News Radio KOGO 600 AM has announced a new programming lineup with extended news programming, new timeslot for Carl DeMaio and the addition of top-rated, nationally syndicated talk radio host Sean Hannity, effective October 26, 2015.

“We are extremely excited about our new line-up and the addition of Sean Hannity to our team,” said Melissa Forrest, Market President of iHeartMedia San Diego.

“News Radio 600 KOGO has experienced tremendous ratings growth in the past year and we anticipate these new changes will help evolve our programming to the next level.”

On October 15, 2014, News Radio 600 KOGO launched its new programming with a revamped news emphasis in morning and afternoon drive to tremendous rating success.

According to Nielsen, the radio ratings system, KOGO grew in the overall total measured market audience (Sept 2014-15, Share 6yrs+, Mon-Fri. 6a-7p) from 21st place to 4th place. In the key demographic of Adults 35 years+, (Sept 2014-15, Share, 35yrs+, Mon-Fri, 6a-7p), KOGO grew from 17th place to 1st place within one year.

“We are poised for our next growth phase,” added Forrest.

KOGO LINE-UP:

5 a.m. –  San Diego Morning News with Ted Garcia & LaDona Harvey
9 a.m. –  The Rush Limbaugh Show
12N    –  The Sean Hannity Show
3 p.m. –  DeMaio Report
6 p.m. –  KOGO Evening News w/ Ernie Brown

KOGO 600 AM (5 Kw) Red=Local Day Coverage Area

iHeartMedia is a leading media outlet in the San Diego market and its programming and content are available across multiple platforms, including its broadcast stations; online via its branded digital sites; mobile; and social, with nationwide listening through iHeartRadio — with its more than 700 million downloads, more than 75 million social media followers and 87 million digital uniques across the Network.

Phoenix Radio: KTAR Names New Morning Anchor-Hosts

Jayme West

Arizona’s Morning News on KTAR 92.3 FM will soon have two new voices: Longtime news personality Jim Sharpe and award-winning anchor Jayme West.

The duo will replace Arizona Hall of Fame broadcaster Ned Foster, who is retiring after nearly 27 years, and Connie Weber, who recently left her post as Arizona’s Morning News co-anchor following a successful decade-long run.

Jim and Jayme begin their new roles on Nov. 30.

“With more than 40 years of combined local news experience, Jim and Jayme are the perfect pair to move the Arizona’s Morning News product forward on air, online and on social media,” said Ryan Hatch, Bonneville Phoenix Vice President of Content and Operations.

“We think their natural chemistry, insatiable curiosity and passion for our community will be warmly received by our audience, which counts on Arizona’s Morning News to keep them informed and connected.”

Sharpe, a 2006 Associated Press Arizona Reporter of the Year and a war correspondent, most recently hosted a nationally syndicated news talk program on USA Radio Networks. He’s also hosted morning shows in Phoenix, most notably “Sharpe in the Morning.”

Jim Sharpe

“I grew up in Arizona – and grew up on the air in Arizona,” said Sharpe, whose broadcasting career started in Page, Arizona, when he was 16 years old. “I’m honored to be able to bring my deep, local perspective to the show and combine that with the rock-solid journalism standards set by the Edward R. Murrow Award-winning KTAR News team.”

West, a five-time Arizona Associated Press Reporter of the Year winner and 19-year KTAR veteran, will move to mornings after previously anchoring the news in afternoon drive and hosting Arizona’s Evening News.

“As an Arizona native, I was a fan of KTAR long before I began working here. So I appreciate what an honor it is to help lead Arizona’s Morning News,” said West. “I’m also a big fan of Jim Sharpe, so this is really exciting.”

KTAR 92.3 FM (98 Kw) Red=Local Coverage Area

Greenville SC Radio: Entercom Launches The Block On 96.3 FM

Entercom/Greenville has launched New W242BX 96.3 The Block.  The Block will also air on WFBC 93.7 FM-HD2 and will air the best hip hop and R & B with superstar Steve Harvey in the morning. 96.3.

 The Block launched with 10,000 songs in a row commercial free. The Steve Harvey show begins Monday, November 2nd.

“We have high expectations for 96.3 The Block.  Until now, there have been limited choices for radio serving African Americans in the Upstate. The ratings decline of stations serving this market makes it a great time to launch 96.3 The Block. With superstar Steve Harvey in the morning, fewer commercials, and better music, we expect 96.3 The Block to be a big hit, “said Entercom Greenville Market Manager, Steve Sinicropi. “96.3 The Block will be very active with community partners, will bring better programming, and a new choice to the Upstate. Adding 96.3 The Block to our portfolio gives us seven radio stations and the ability to reach virtually any audience in the Upstate.”

W242BX 96.3 FM (250 watts) Red=Local Coverage Area

Steve Harvey is more than a radio personality—he’s a proven brand with unique appeal.  From his best-selling books to his movies and his highly-rated TV show, Harvey’s family-friendly humor and deep connection with his audience has made him the gold standard in morning drive urban radio. Steve Harvey has proven to be a magnet for listeners. His TV Show, The Steve Harvey Show, is the top-rated show weekdays on WYFF 4 at 3PM.

“I couldn’t be more excited to launch in Greenville, and I truly feel blessed to be a part of the New 96.3 The Block and the Entercom Greenville family” said Steve Harvey.

Univision Names John Eck Local Media Chief

John Eck

Univision Communications Wednesday named John Eck as chief local media officer, effective immediately.

His responsibilities will include oversight of Univision's local media business, primarily 128 TV and radio stations.

TV NewsCheck reports Eck will remain based in New York and continue to report to Randy Falco, president and CEO. He will replace Kevin Cuddihy, who will work with Eck over the next few months to support him in the transition.

Eck joined Univision in 2011as EVP of technology, operations and engineering.

Prior to Univision, he worked at NBC Universal for 18 years, most recently serving as president of Media Works.

During his tenure at NBCU, Eck was responsible for leading various digital initiatives.

Doc And Marty Visit Jimmy Kimmel

"If you don't mind my asking, what the hell have you guys been doing for 30 years?"

Marty McFly and Doc Brown don't appear to be all that impressed with how 2015 turned out.

Michael J. Fox and Christopher Lloyd appeared on Wednesday's Jimmy Kimmel Live dressed as their Back to the Future characters. The segment was in honor of Back to the Future Day, marking the point in time that Marty traveled to in the film franchise's sequel.

Pandora Appeals BMI Royalty Rate

Pandora has filed an appeal against the BMI rate court decision that ruled the internet radio platform should pay the PRO 2.5% of its revenues.

While BMI was able to claim the decision as a significant step in the right direction earlier this year, the rate of rival PRO ASCAP of 1.85% was upheld by the US Second Circuit Court of Appeals.

MusicWeek reports Pandora has argued that Judge Stanton, who made the BMI decision, was wrong to disregard the confirmation of ASCAP's rate being set at 1.85% (which BMI had also previously received).

It also suggests that Stanton was wrong take into account benchmarks set by direct deals made between Pandora and publishers, such as Universal Music Publishing, which managed to get a headline rate of 8.5% of revenues.

The appeal document also tries to argue that BMI's public performance rights "are no more inherently valuable today than they were 10 or 20 years ago".

Nielsen Holdings Q3 Revenue Lags

Nielsen Holdings Wednesday announced third quarter 2015 results.

Revenues were $1,531 million for the third quarter of 2015, down 2.6% due to the impact of foreign exchange, but up 5.0% on a constant currency basis, compared to the third quarter of 2014. This marks the company’s 37th consecutive quarter of constant currency revenue growth.

“Nielsen’s third quarter results exemplify our strong value-generating business model with revenue growth of 5.0%, consistent margin expansion across both our Watch and Buy businesses on a constant currency basis, and record quarterly free cash flow generation, up 19% over last year. Our growth was driven by many important competitive wins all over the world. Our Buy business, which grew 4.1%, had its fifth consecutive quarter of margin expansion, both on a constant currency basis. Our Watch segment grew 6.1% on a constant currency basis due to strength in Audience Measurement, as our clients embed our digital measurement and analytics into their day-to-day decision-making.” said Mitch Barns, Chief Executive Officer of Nielsen.

Mitch Barnes

Barns continued, “The initial release of Digital Content Ratings has gone smoothly and we’re pleased with the feedback we’ve received as it is the final piece of our Total Audience Measurement framework. We know how important the execution of our product roadmap and the subsequent industry adoption of our solutions is to our ability to drive value for our clients and we feel very confident about our progress here. As our products continue to gain traction, we’re having meaningful conversations with clients and major industry voices in order to move toward a new definition of the currency ratings.”

Judge Tosses 'Big Pimpin' Lawsuit

(Reuters) -- A federal judge on Wednesday threw out a copyright infringement lawsuit that accused rapper Jay Z and hip hop producer Timbaland of using an Egyptian musician's melody without permission in their 1999 hit song "Big Pimpin'."

U.S. District Court Judge Christina A. Snyder ruled that the plaintiff in the case, a nephew of late musician Baligh Hamdy, did not have standing to assert copyright infringement of his uncle's music, Jay Z's attorney Andrew Bart said.

Hamdy's nephew, Osama Ahmed Fahmy, filed a complaint in 2007 alleging that Jay Z, whose real name is Shawn Carter, and his team had used his uncle's 1957 song "Khosara, Khosara" without permission.

"Our client is pleased with and feels vindicated by the decision," Bart said in a statement.

Snyder's decision came after three days of trial testimony.