Industry News

House Democrats Announce Brendan Carr Investigation

Democrats on the House Energy and Commerce Committee announce they are launching an investigation into Federal Communications Commission Chairman Brendan Carr’s “attacks on the First Amendment and his weaponization of the independent agency.” In a press statement, Committee Democrats accuseimg Carr of “illegally targeting broadcast networks and media companies perceived to be unfavorably covering the Trump Administration – wasting critical agency resources on bogus investigations in the process.” The lawmakers are also questioning Carr’s “commitment to his agency’s independence, given his frequent trips with the president to Mar-a-Lago and his targeting of entities that the president has criticized or sued in his personal capacity.”  Committee Ranking Members says that “under Carr’s leadership, the FCC has harassed CBS for routine editing practices, reinstated lawfully denied complaints against ABC and NBC, launched a bogus investigation into KCBS-AM in San Jose simply for reporting publicly available information, and directed the FCC’s Enforcement Bureau to launch investigations into NPR and PBS based on false allegations.” The Committee is requesting documents and communications “related to its investigations of media entities,” “all communications between Carr and current White House officials and between Carr and other Trump Administration officials that relate to investigations,” as well as Carr’s travel records.

Industry News

U.S. Reps Want FCC to Update Ownership Regulations

A bipartisan group of 73 U.S. House members is appealing to Federal Communications Commission Chairman Brendan Carr to “modernize outdated ownership rules that hinder broadcasters nationwide.” The letter says, in part, “While the FCC has made incremental adjustments over the decades, theimg fundamental ownership restrictions have remained largely unchanged since the 1990s, imposing undue constraints on broadcasters’ ability to innovate and invest in local content. These regulations are a relic of an era when broadcasters were the only electronic media. Today, any one of the largest Big Tech platforms dwarfs the entire broadcast industry – yet they are held to no similar limitations on their reach. This imbalance places broadcasters at a severe disadvantage in competing for advertising dollars and audience engagement… We urge the FCC to act swiftly in eliminating antiquated ownership restrictions and to embrace a broadcast regulatory framework that reflects the realities of today’s dynamic media ecosystem.” Read the full letter here.

Industry News

FCC’s Gomez Fires Back at New Commission Policy

FCC Commissioner Anna M. Gomez addressed the U.S. Hispanic Chamber of Commerce Legislative Summit on Wednesday (3/26() and spoke about efforts by the FCC and other government entities to “intimidate private companies because of internal labor practices meant to promote fairness in hiring.” She said, “Private businesses all over the country are under attack. Creeping government intervention isimg making companies think twice about the way they describe internal diversity programs. They’re afraid the government may retaliate against them simply because of actions that are responsive to how consumers use their services or choose to buy their products. Sadly, the hard-fought lessons of the civil rights movement are being erased – or worse, distorted – to claim that fairness for all requires discrimination against some. That could not be further from the truth.” Gomez says she’s concerned about the Commission weaponizing  “its regulatory authority to enforce government mandates that seek to eliminate voluntary efforts by private companies to increase fair and equal employment opportunities.”

Industry News

FCC Chair Carr Promotes Launch of Deregulation Initiative

FCC Chairman Brendan Carr is promoting his agency’s new deregulatory initiative, the new docket of which is titled, “In re: Delete, Delete, Delete.” The Commission says it is seeking comment on every rule, regulation, or guidance document that the FCC should eliminate for the purposes of alleviatingimg unnecessary regulatory burdens. This follows President Donald Trump’s Executive Order 14192 titled, “Unleashing Prosperity Through Deregulation” and Executive Order 14219 titled “Ensuring Lawful Governance And Implementing The President’s ‘Department Of Government Efficiency’ Deregulatory Initiative.” FCC Chairman Carr says, “Under President Trump’s leadership, the Administration is unleashing a new wave of economic opportunity by ending the regulatory onslaught from Washington. For too long, administrative agencies have added new regulatory requirements in excess of their authority or kept lawful regulations in place long after their shelf life had expired. This only creates headwinds and slows down our country’s innovators, entrepreneurs, and small businesses. The FCC is committed to ending all of the rules and regulations that are no longer necessary. And we welcome the public’s participation and feedback throughout this process. The American people expect and deserve a government that will efficiently deliver great results. We are committed to doing exactly that at the FCC.”

Industry News

FCC Seeks Public Comments on Deregulation

In a Public Notice titled, “Delete, Delete, Delete,” The Federal Communications Commission says it is “taking action to promote the policies outlined by President Trump…” and are “seeking public input on identifying FCC rules for the purpose of alleviating unnecessary regulatory burdens. We seek comment on deregulatory initiatives that would facilitate and encourage American firms’ investment in modernizing theirimg networks, developing infrastructure, and offering innovative and advanced capabilities.” The Notice goes on to say, “The Communications Act directs the FCC to regularly review its rules to identify and eliminate those that are unnecessary in light of current circumstances, recognizing that in addition to imposing unnecessary burdens, unnecessary rules may stand in the way of deployment, expansion, competition, and technological innovation in communications that the Commission is directed to advance. Government-wide administrative law requires review of rules to ensure that unnecessary—or affirmatively detrimental—rules are not retained.” The public comment period runs through April 15 and the Commission encourages “commenters to consider certain policy factors including cost-benefit considerations, marketplace and technological changes, barrier to entry, and more, as well as statutory and regulatory retrospective review standards.” Read the complete Public Notice here.

Industry News

Radio Pro Kelly Orchard Publishes Suspense Novel in Radio Setting

Lifelong broadcaster and FCC consultant Kelly Orchard is publishing a suspense novel titled, Dead Air: Theimg Day the Music Died, that involves pirates hijacking 100 radio stations in five major U.S. cities and follows one company’s story over the course of 24 hours. Orchard was raised in a radio family that owned and operated stations in the 1980s and 1990s. Her family later launched a consulting business that conducted mock FCC inspections and she says the idea for her novel was born from those experiences.

Industry News

Cumulus Media Reports 2024 Q4 Net Revenue Dips 1.2%

Reporting its operating results for the fourth quarter of 2024 and for the full year of 2024, it says net revenue for Q4 was $218.5 million, a decrease of 1.2% from the same period in 2023. For the full year of 2024, net revenue was $827 million, a decrease of 2.1% from the full year of 2023. The company posts a net loss of $283.3 million for 2024 “compared to net loss of $117.9 million, reflecting a 2024 pre-tax non-cashimg impairment charge of $224.5 million compared to a pre-tax non-cash impairment of $65.3 million in 2023, both primarily reflecting FCC-related charges.” Cumulus president and CEO Mary G. Berner states, “Since the pandemic’s onset, the radio industry has experienced tough economic and secular headwinds. In the face of those, we outperformed our peers through the end of 2023 on key metrics including cost takeouts, EBITDA imgmargin recovery, free cash flow generation, net leverage, and liquidity. 2024 brought additional challenges, including accelerated national headwinds as well as an industry-wide slowdown in local radio advertising. In response, we doubled down on investing in growth areas, particularly in our digital marketing services business, which is pacing up 30% in Q1. Additionally, we continued evolving our broadcast go-to-market strategies, including with new offerings that are successfully attracting large new broadcast clients, and we drove additional cost efficiencies with 2024 actions that will result in $43 million of annualized fixed cost savings, of which $15 million benefited 2024 with the balance in 2025. Though the industry environment remains challenging for now, our 2024 refinancing efforts provided us with the time needed to both execute our day-to-day blocking and tackling and, in parallel, continue to reimagine the ways in which we can get the most out of our key assets to create new revenue streams and build additional long-term value.”

Industry News

Trump Executive Order Demands Federal Agencies Answer to the President

An executive order signed by President Donald Trump on Tuesday (2/19) titled, “Restoring Democracy and Accountability in Government requires that all federal agencies – those set up by Congress as independent agencies – run all action through the White House before it becomes official. The order implies that the agencies in question – including the Federal Communications Commission – are under the purview of theimg executive branch and must therefore: “(1) submit draft regulations for White House review—with no carve-out for so-called independent agencies, except for the monetary policy functions of the Federal Reserve; and (2) consult with the White House on their priorities and strategic plans, and the White House will set their performance standards. The Office of Management and Budget will adjust so-called independent agencies’ apportionments to ensure tax dollars are spent wisely. The President and the Attorney General (subject to the President’s supervision and control) will interpret the law for the executive branch, instead of having separate agencies adopt conflicting interpretations.” The order also argues that since the president is elected by the people and all agencies are accountable to the American people, therefore the president represents the will of the people. Critics of the move are questioning the constitutionality of the order and some expect this matter will be decided by the courts.

Industry News

WDAY-AM, Fargo Sale Overcomes Informal Objection

The proposed sale of news/talk WDAY-AM/K226CL, Fargo, North Dakota from Forum Communications Company to Bakken Beacon Media LLC’s subsidiary Flag Family survived an informal objection from private citizen Leann Wolff. Flag Family has been operating the station for the past four years and when the proposed sale was announced, Wolff filed an objection with the FCC citing social media comments from Flag Family co-owner Scott Hennen about the state of journalism in the U.S., including the statement, “journalism is dead.” Wolff questioned Flag Family’s fitness to operate the station in light of the comments but theimg Commission stated that Hennen was expressing “his own individual opinion on the current state of journalism,” but “even if it was assumed that such an opinion might be expressed on WDAY under BBM’s ownership, that is not a ground for the FCC to deny or withhold consent to the instant assignment.” The Commission further states, “We reject the assertion that Hennen’s social media comments justify a denial of the proposed assignment applications. The Objection does not cite to any provision under the Act or the rules, any cases, or any Commission policy for its argument that Hennen’s social media comments are pertinent to our review of the Applications. We disagree with Wolff’s argument that Hennen’s viewpoint on the state of journalism, as expressed in his social media comments, is in any way relevant to our determination of BBM’s qualifications to hold a license or whether the proposed assignment would serve the public interest. As the Commission has stated, licensees have broad discretion based on their First Amendment right to free speech to choose, in good faith, the programming they believe serves the needs and interests of their communities. Indeed, the Commission does not interfere with the programming decisions of licensees, nor does it consider issues of programming choice when reviewing an application for the assignment or transfer of a broadcast license.”

Industry News

Brendan Carr Named Chairman of the FCC

As expected, newly inaugurated President Donald J. Trump names FCC Commissioner Brendan Carr Chairman of the Federal Communications Commission.  Carr says, “I am deeply grateful to President Trump and honored by his decision to designate me as Chairman of the Federal Communications Commission. Iimg have had the privilege of working at the FCC for over a dozen years now, including serving previously as the agency’s General Counsel, and I am humbled by the opportunity to lead the FCC. The FCC has important work ahead – on issues ranging from tech and media regulation to unleashing new opportunities for jobs and growth through agency actions on spectrum, infrastructure, and the space economy. We will also advance America’s national security interests and protect consumers. I am eager to accelerate the FCC’s work on these and other fronts. I look forward to collaborating with the Trump Administration, my Commission colleagues, and the FCC’s talented staff as well as Congress to deliver great results for the American people.”

Industry News

Audacy Requests Extension for Debtor-in-Possession Loans

The United States Bankruptcy Court for the Southern District of Texas Houston Division approved Audacy’s prepackaged plan for reorganization under Chapter 11 on February 20 of this year. But the company isim awaiting the FCC’s blessing on the plan to complete reorganization and its Debtor-in-Possession credit facility in the aggregate principal amount of $32 million matures on August 19, 2024. (This DIP Facility allows Audacy to function during the reorganization period.) Audacy is asking the Court to extend the maturation date to September 30, 2024. Audacy stated in its second quarter 2024 financial report that it expects to receive FCC approval in the third quarter of this year.

Industry News

Audacy Q2 Net Revenue Rises 1%

Audacy reports its operating results for the second quarter of 2024 and reveals net revenue of $301.6 million, an increase of 1% over the same period in 2023. After reporting a net loss of $125.8 million in Q2 of 2023, the company reports net income of $2.9 million in the second quarter of this year. Looking at Audacy’s business segments, Local and National Spot revenue was $179.6 million, a decline of almost 4% from a year ago; Digital (including podcasting) revenue was $74.4 million, an increase of 11.6%; and Network revenueim was $22.3 million, up 7% over Q2 of 2023. Audacy also breaks out revenue by radio format categories and while Sports radio revenue was $71.1 million (up 8.3% over last year), News/Talk revenue was $43 million (a decline of 2.3% from the same period a year ago). Audacy chairman, president and CEO David J. Field comments, “Audacy continued to deliver strong 2024 financial performance with Q2 Adjusted EBITDA more than doubling, up 116% vs. prior year. For the first six months of 2024, Adjusted EBITDA is up 128%. Our accelerating financial performance reflects our significant revenue share gains, low-teen growth in digital advertising, high single-digit growth in network radio, and prudent expense reductions, offsetting continued weakness in traditional ad markets. Notably, our transformational, strategic investments are emerging as a critical driver in our accelerating performance. Recent improvements in our streaming and podcasting platforms, along with further enhancements to our digital monetization and programmatic capabilities are increasing their impact on our top-line and bottom-line results. As previously announced, we received court approval of our consensual pre-packaged Plan of Reorganization in February and are awaiting FCC approval to complete the process. We continue to expect final approval and emergence to occur during the current quarter. The third quarter is currently pacing up low-single digits, and we expect another quarter of significant Adjusted EBITDA growth.”

Industry News

Concern Over FM Station Class “A10” Proposal

FCC Under the Federal Communications Commission’s consideration is a proposal from Commander Communications Corporation that would create an FM broadcasting class known as “A10.” In addition to enhancing coverage in rural and underserved areas, it would grant power upgrades for roughly 1,400 Class A FMs, allowing a maximum of 10,000 watts. Approval would depend on a station’s geographical zone; tower height; and separation requirements. While the National Association of Broadcasters recognizes potential benefits for listeners – especially during emergencies – it urges caution owing  to possible negative impacts. The NAB generally supports proposals designed to improve coverage areas, but says the “A10” proposal lacks technical analysis and information on how many stations may be upgradable. An NAB filing notes that, “While this could lead to improved service for additional listeners, it could also further squeeze the band in more markets and impact more FM services.” Also opposed is Cumulus Media, which cites an “unacceptable risk” to stations already competing against streaming services. Conversely, the Multicultural Media, Telecom & Internet Council favors the suggestion, stressing that many stations that would qualify for the upgrade are owned by minority and small-scale operators. This proposal would replace an earlier FCC one for a Class C4 FM station category. More than 100 independent and minority owners backed the idea, but it ran into opposition from larger companies and the NAB.

Industry News

House Democrats Want FCC’s Brendan Carr Investigated

According to a report in Forbes, House Democrats are seeking an investigation into FCC Commissioner Brendan Carr’s involvement in the Heritage Foundation’s Project 2025 policy agenda should Donald Trump return to the White House. U.S. Rep Jared Huffman (D-CA) and 16 other House Democrats want an ethics investigation saying they believe Carr’s work on Project 2025 is “misusing his official position as anim executive-level employee of the FCC to craft and advance a political playbook to influence the presidential election in favor of Donald Trump.” The Democrats say he may have violated ethics laws for federal employees and the Hatch Act. Carr tells Forbes that he sought counsel from FCC ethics officials prior to working on Project 2025 and they “approved of me participating in my personal capacity, which I did.” He also says they approved him using his FCC title in his biography. Forbes reports, “Carr’s chapter on the FCC calls for the agency to ‘change course’ and focus on reining in big tech and promoting national security. The FCC commissioner proposes overhauling legal protections that shield tech companies from liability for content posted on its platforms and supports Congress passing legislation similar to laws in Texas and Florida that punish social media companies for suspending or banning users based on their ‘viewpoints’ – part of broader claims by conservatives that social media companies are biased against them. Project 2025’s FCC agenda also calls for banning TikTok as part of a crackdown on infrastructure from China and calls for tech companies to provide greater transparency.” Read the Forbes story here.

Industry News

Audacy Agrees to $2 Million Tax Payment

As Audacy continues the process of exiting Chapter 11 reorganization, it settles an unpaid tax bill with theim township of Lower Merion with regard to its former headquarters in Bala Cynwyd, Pennsylvania. The original amount to be paid by Audacy was $1.4 million however that figure was later deemed incorrect and now the company agrees to pay the township $2 million. Audacy is still awaiting final approval from the FCC to be able to operate its radio stations as the new Audacy.

Industry News

Neuhoff to Sell Remaining Radio Stations to Woodward Communications

Neuhoff Family Limited Partnership announces that it has entered into an agreement to sell its Springfield and Bloomington, Illinois radio stations to Woodward Communications, Inc for a sum yet to be announced. The asset purchase agreement has not been filed with the FCC yet. The stations include sports talk WFMB-AM in Springfield and four music brands plus three music FMs in the Bloomington market. This transactionim ends Neuhoff’s time in the radio business after almost 70 years. At one time, Neuhoff owned 24 stations – plus digital assets – in five markets. Woodward Communications, Inc operates eight stations – including news/talk WHBY-AM – in Appleton and Green Bay, Wisconsin. Neuhoff family trustee Julian Hickman says, “This final sale is bittersweet for our family, reflecting both a proud legacy and an emotional farewell. Our grandfather, Roger Neuhoff, poured his heart into the broadcast industry since the mid-1950s. The stations have been a vital part of our family and community, and while we cherish the incredible journey, it is time to turn the page.” Trustee Makena Neuhoff adds, “We would like to thank the incredible teams of local broadcasters in Springfield and Bloomington. We will forever cherish the memories and the significant impact our stations had on the local communities.”

Industry News

NYPost: FCC’s Carr Warns of “Soros Shortcut”

Federal Communications Commissioner Brendan Carr commented to the New York Post about liberal billionaire investor George Soros’ acquisition of $400 million of Audacy’s debt (and a potential controlling interest) and the company’s hope the FCC will greenlight its exit from Chapter 11 reorganization. At issue isim the FCC’s requirement to do a foreign ownership review and Audacy’s request that the FCC grant a limited waiver of that review in order to more speedily exit Chapter 11. This request is under heavy scrutiny due to the political aspects of the case. Carr recently told the Post that the FCC should not allow a “Soros shortcut” – a term used by the Media Research Center in its Petition to Deny filed with the Commission – but must follow FCC procedure. Audacy argued in its opposition to the Petition to Deny that there is nothing unique about this request, saying that the FCC “granting a limited waiver deferring its foreign ownership review to facilitate a licensee’s prompt emergence from bankruptcy is consistent with the Communications Act.” Audacy adds that the notion that the limited waiver is new “completely ignores longstanding precedent establishing the Commission-approved special warrant process used in a number of prior transactions to allow licensees to emerge from bankruptcy promptly, while affording the Commission sufficient opportunity to review foreign ownership issues post-emergence.” See the Post story here.

Industry News

Audacy Files Opposition to MRC’s Petition to Deny with the FCC

Late last month the conservative media watchdog group Media Research Center filed a Petition to Deny with the FCC regarding Audacy’s seeking a waiver of foreign ownership disclosure obligations in order to emerge from Chapter 11 reorganization. Last week, Audacy filed its opposition to the Petition to Deny with the FCC. In it Audacy argues that first, the petition is procedurally defective, but goes on to argue that even if it is considered an informal objection, it is defective because “the Commission hasim determined that granting a limited waiver deferring its foreign ownership review to facilitate a licensee’s prompt emergence from bankruptcy is consistent with the Communications Act.” Further, Audacy says, “According to the MRC, Audacy is attempting to employ an ‘entirely new’ and ‘vague and undefined’ special warrant process’ to delay the Commission review of Audacy’s proposed foreign ownership until ‘sometime down the road’ when the company ‘may choose’ to file a petition for declaratory ruling seeking such review. This specious claim not only mischaracterizes the company’s waiver request detailed in the Application, but completely ignores longstanding precedent establishing the Commission-approved special warrant process used in a number of prior transactions to allow licensees to emerge from bankruptcy promptly, while affording the Commission sufficient opportunity to review foreign ownership issues post-emergence.” Separately, FCC Chairwoman Jessica Rosenworcel responded to Congressman Nicolas Langworthy (R-NY) and Congressman Chip Roy (R-TX), who both wrote to her implying that the Commission is not going through “its normal, statutorily required process” and voiced concern over Soros Fund Management’s acquisition of Audacy debt. Langworthy wrote that Audacy being “owned by a deeply partisan individual [George Soros], could have a fundamental impact on the nature of local radio and potentially silence political viewpoints.” Rosenworcel’s response indicates she believes the Commission is handling the matter appropriately, saying, “The Bureau staff will review the record and decide if the transfer is in the public interest pursuant to Section 310(d) of the Communications Act.”

Industry News

SBE Releases Station Self-Inspection Guides

The Society of Broadcast Engineers is releasing new Broadcast Station Self-Inspection Guides for FM and TV broadcast stations. The SBE partnered with the National Association of Broadcasters to produce the documents, which are the first part of a planned series to cover all broadcast services. These Guides are designed to aid stations and Alternative Broadcast Inspection Program inspectors in evaluating a broadcast station’s compliance with FCC rules and regulations. The Guides will be available for download on April 16 from the SBE website under the Legislative/Regulatory tab after the 2024 NAB Show. They are free to SBE members, and available for purchase by non-members.

Industry News

FCC Adopts FM Booster Program

The FCC adopts changes to its rules that will allow FM booster stations to originate programming, subject to future adoption of processing, licensing, and service rules as proposed in the Further Notice of Proposed Rulemaking. The Commission notes that “FM boosters currently serve the limited purpose of rebroadcasting primary FM (or LPFM) stations in areas of poor reception. GeoBroadcast Solutions, LLC has developed technology that is designed to allow licensees of primary FM broadcast stations toim originate content using FM boosters and is intended to do so without raising the potential for harmful co-channel interference to the reception of the primary station’s signal outside the coverage area of the booster station or to previously authorized secondary stations.” GBS filed a petition on March 13, 2020,  proposing to give FM broadcasters the option to use boosters to originate programming to specific zones within their stations’ service area, proposing to allow program origination for a limited period totaling three minutes per hour… During that limited period, GBS proposes that the FCC allow the booster to originate geo-targeted advertisements, promotions for upcoming programs, and other hyper-localized content, suggesting it would benefit small and minority-owned broadcasters, because potential advertisers that currently find it prohibitively expensive to buy spots reaching a radio station’s whole service area might purchase lower-cost airtime reaching a more targeted area, thereby becoming a new source of station revenue.”

Industry News

Audacy Files Final 2023 Fiscal Report with SEC

Audacy filed its 10-K annual report with the Securities and Exchange Commission on Friday (3/22) as it prepares to emerge from Chapter 11 reorganization. The company is waiting on FCC approval. Inim reporting is operating results for 2023 it reveals net revenue of $1.16 billion, a decrease of 6.75% from the full year 2022. The company was hampered by an impairment loss of $1.3 billion in 2023, compared to the impairment loss of $180 million reported in 2022. That and other factors led to total operating expense soaring to $2.5 billion, compared to the total operating expense of $1.32 billion in 2022. The company posted a net loss of $1.13 billion in 2023, compared to the net loss of $140 million reported for 2022.

Industry News

Audacy Issues Performance Update as it Awaits FCC Approval

Audacy releases a performance update as it waits to emerge from Chapter 11 reorganization saying it “is pleased to report a strong start to 2024, driving significant sequential acceleration across key financial metrics and performance indicators. The Company is providing this update to deliver additional visibility on its progress since receiving court approval of its consensual pre-packaged Plan of Reorganization onim February 20.” Audacy awaits FCC approval to complete its restructuring and plans to file its 2023 10-K later this month. The company says it experienced revenue growth of 1% in January, led by a 1% increase in radio revenue and a 7% increase in digital revenue. Audacy chairman, president and CEO David Field comments, “Audacy is off to a strong start in 2024, driving accelerated financial and operating performance, including solid early growth in revenues, key digital metrics, and audience and revenue shares. We look forward to a bright future, capitalizing on our best-in-class balance sheet and our scaled leadership position in the dynamic audio market, distinguished by our exclusive premium content and top positions across the country’s largest markets.”

Industry News

FCC Commissioner Carr Cheers TikTok Legislation

FCC Commissioner Brendan Carr releases a statement supporting the “Protecting Americans from Foreign Adversary Controlled Applications Act” which would ban the TikTok app “unless TikTok genuinely divests from its ties to the Communist Party of China.” Carr comments, “TikTok’s own conduct makes clear that it is beholden to the CCP and presents an unacceptable threat to U.S. national security.im Indeed, TikTok has been caught engaging in a pattern of illicit surveillance and making false statements about personnel in Beijing accessing sensitive U.S. user data. These facts were laid bare for the world to see when the House Energy and Commerce Committee held a TikTok oversight hearing last year. And that is why there is now a broad, bipartisan consensus that TikTok cannot continue to operate in the U.S. in its current form. I want to applaud the strong, bipartisan leadership that Members of Congress have shown in advancing this bill, which would definitively resolve the serious national security threats TikTok poses by banning the app or requiring that it genuinely sever ties to the CCP. This is a smart, threat-specific bill that would address a clear and present danger. I hope that this bill will soon become law.”

Industry Views

Pending Business: Curmudgeons

By Steve Lapa
Lapcom Communications Corp
President

imAre you a sales curmudgeon? You know, that old-school, out-of-touch terrestrial radio ad sales rep who is too lazy to learn the new digital/social media sales world?

A recent survey by Borrell and Associates says most radio station managers vote for “new blood” on the sales team to offset those old-school sellers who are oversaturated and have no more room to grow. It’s the evergreen water bottle analogy. Open that off-the-shelf bottled water and just try pouring more water into that fully filled bottle. There is no more room for even another ounce. Is that you? So full of sales knowledge that there is no room to learn? Your boss thinks it’s better to hire another seller than to wait until you decide to push yourself through the comfort zone and become more productive in the digital/social media column.

The top line “hire new sellers” concept here is true. Some living history:

1. AM vs. FM. Are you old enough to remember separate AM and FM sales teams? AM radio stations were the first big income generators. When FM music stations became popular, we first sold AM/FM combo plans. Realizing FM formats were geared to a younger audience, we hired sellers who got it. Sales teams were formed to sell just the FM stations. The internal conflict was a management nightmare, yet somehow, we managed to create two separate teams. The rest is terrestrial radio sales history.

2. Cluster Sales. When the FCC allowed owners to control more than two radio stations in a market, we went through another seismic change. Sellers who sold for one, or in some cases AM/FM combo sales, were soon allowed to pitch multiple stations owned by one owner in a market. Managers were faced with a new round of consolidation conflict. If you worked with an advertiser that needed additional markets, you were able to bring outside markets with commonly owned radio stations to the mix. Somehow, we managed.

3. Digital/Social. What took so long? Today’s terrestrial radio ad seller is an important foundational component in every radio station ad sales department. Yet the ad sales and audience growth aren’t on the AM/FM or satellite band. It hasn’t been for a while. The ad demand and growth in audience and revenue is on your computer, smartphone, apps, and earbuds. Are you ready to adapt to the digital/social media demand curve? Or are you sitting in your comfortable rocking chair.

There is no doubt new sellers plugged into new media platforms will fuel the next level of audio sales growth. But before we give up on those curmudgeons on your sales team, let’s learn how they preserve the buyer-seller relationship long enough to earn the privilege of becoming “curmudgeons.”

Steve Lapa is the president of Lapcom Communications Corp. based in Palm Beach Gardens, FL. Lapcom is a media sales, marketing, and development consultancy. Contact Steve Lapa via email at: Steve@Lapcomventures.com.

Industry News

Judge Approves Audacy Reorganization Plan

As expected, United States Bankruptcy Court for the Southern District of Texas Judge Christopher M. Lopez approved Audacy’s Chapter 11 reorganization plan in which Audacy will equitize approximately $1.6 billion of funded debt, a reduction of 80% from approximately $1.9 billion to approximately $350 million. Prior to yesterday’s hearing, there were only two objections to the plan filed and both wereim settled beforehand. Audacy expects to emerge from the Chapter 11 process after approval from the FCC. Audacy chairman, president and CEO David J. Field says, “Today’s announcement marks a powerful step forward for Audacy, positioning the company for an exciting future. As expected, we have achieved a speedy confirmation of our prepackaged Plan, which will enable Audacy to pursue our strategic goals and opportunities in the dynamic audio business. We aim to drive accelerated growth and financial performance, capitalizing on our scaled, leadership position, our uniquely differentiated premium audio content and the robust capital structure that we will have upon emergence. I also want to express my gratitude to our team, who continue their outstanding work to serve our listeners and customers with excellence and fulfill our commitments without missing a beat.” The company notes that under the Plan, trade and other unsecured creditors will not be impaired.

Industry News

Townsquare to Pay $500k to FCC in Sponsorship ID Violation Consent Decree

Townsquare Media enters into a Consent Decree to resolve the FCC’s investigation into “willful and repeated violations of sections 317(a) of the Communications Act of 1934, as amended, and 73.1212(a) of the Commission’s rules, relating to on-air sponsorship identification announcements.” The FCC states, “Townsquare agrees, among other things, to implement a comprehensive plan to ensure its future compliance with its sponsorship identification and online political file obligations, submit annualim compliance reports to the Bureau through the remainder of the current license terms of the two stations, and pay a Civil Penalty to the United States Treasury in the total amount of $500,000.” The violations in question center on a program that aired on Townsquare’s news/talk outlets KIDO-AM, Boise and KLIX-AM, Idaho Falls from October 2021 through March 2023 in which they “broadcast a one-hour episode of, and 30-second advertisements promoting, the Program. The format of each episode nominally resembled a news interview/public affairs program produced and presented by the Stations. In fact, however, all episodes of the Program were paid political presentations. Townsquare was paid to broadcast episodes of the Program and related advertisements initially by and on behalf of the Idaho Republican Party, and later by Tom Luna on behalf of a company doing business as Tom Luna and Associates. The hosts of each episode (Tom Luna and Victor Miller, chairman of the Ada County (Idaho) Republican Party) were solely responsible for producing the Program, including selecting guests and determining program content. Neither station provided any on-air Sponsorship ID announcements for the vast majority of the episodes or promotional advertisements that they aired revealing to listeners the true nature of the broadcasts and the identity of those who paid for them. In addition, multiple episodes of the Program contained appearances that constituted uses by legally qualified candidates for public office and communicated messages relating to political matters of national importance. Neither station uploaded records of any such candidate uses or messages to their respective online political files.”