TV Trend is Radio Wake-Up Call
By Holland Cooke
Consultant
South Florida viewers are confused. WPLG, which brands as “Local 10,” was an ABC-TV affiliate for 69 years… until yesterday. Now it’s more local than ever, after divorcing its network, whose programming moved to the FOX affiliate’s digital channels 18.1 and 7.2, now branded “ABC Miami.” Among courteous FAQs about this change on WPLG’s web site: “How do I rescan my TV?” to find ABC programming.
FAQ #1: Why is this happening?
WPLG GM Bert Medina explains, “We made a generous offer to ABC, but it became clear the two sides were not going to agree to a new deal.”
Citing the FCC’s “interest in and the authority to promote the public interest and to ensure that local broadcast TV stations retain the economic and operational independence necessary to meet their public interest obligations,” Chairman Brendan Carr is investigating what he calls networks’ “attempt to extract onerous financial and operational concessions from local broadcast TV stations.” His recent letter to Comcast CEO Brian Roberts announced an inquiry into NBC practices that will also scrutinize other networks’ affiliation agreements. He reckons that networks threatening long-held affiliations “could result in blackouts and other harms to local consumers of broadcast news and content.”
“That’s why we have an FCC license.”
WPLG’s GM explains that “our job is to serve this community with news and local programming.” He – and his Berkshire Hathaway ownership – determined that “if we agreed to the ABC terms, that mission would have suffered.” The last straw? “Exclusivity, which is the core to our relationship, is disappearing. Even when ABC airs high-quality programming, like the Oscars, ABC airs that same programming on other platforms. We no longer feel we are getting what we pay for.”
Proud that “a majority of our staff grew up here,” Medina announced that WPLG is staffing up. “Instead of sending our money to New York, we will keep it in our community and use that money to finance a massive expansion in local news and other local programming. We are excited for the future of Local 10. Just watch us. We are about to serve this community in an even bigger and better way.”
Music has been commoditized
It’s all over the other platforms and devices increasingly siphoning-off radio listening time and ad revenue. And unlike six-spot (or longer) stopsets now common on FM, streams’ spots are shorter and fewer. And there are NO commercials for paid subscribers who’ve had-it-up-to-here with broadcast music radio.
TV networks aren’t shy about hijacking affiliates’ viewers. ABC offers Disney+, CBS lures us to Paramount+, NBC touts Peacock. And network radio spots are plugging iHeart podcasts.
So, yuh. Make your station as smartphone friendly as possible. But when I jump in the car, and my phone pops-up on the dashboard radio once owned, what comes out the speaker still has to compete. And what is the ONE thing that streams that your robotic FM competitors don’t offer? “Local.”
Holland Cooke (HollandCooke.com) is a media consultant working at the intersection of broadcasting and the Internet. Follow HC on Twitter @HollandCooke
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.”
iHeartMedia’s financial by segment, broadcast radio revenue was $429 million, a decline of 7.2% over Q2 of 2022. Network radio was $122 million (down 4.2%), digital revenue (excluding podcast) was $164 million (down 1.6%), and podcasting revenue was $96.7 million (up 12.9%). iHeartMedia chairman and CEO Bob Pittman says, “We are pleased to report that our second quarter 2023 results reflected Adjusted EBITDA slightly above the midpoint of the guidance range, and more than double the Adjusted EBITDA we generated in the first quarter, and our consolidated revenue were above the guidance range. The continued positive performance of our Digital Audio Group, led by our Podcasting business, and the significantly improved relative performance of our Multiplatform Group during this soft advertising period, are encouraging metrics for us, and we’re seeing indications of improving macroeconomic trends which we expect to have a positive impact for us in the second half of the year, with most of that impact in Q4.”
