Friday, February 26, 2016

MAJOR NONCOM TRANSACTION: KSBJ BUYS KUHA IN HOUSTON FOR TEN MILLION



One of the highest-dollar noncommercial station purchases in recent memory was announced this week: Christian broadcaster KSBJ Educational Foundation has purchased Houston Public Media’s (HPM) Classical KUHA 91.7 for around $10,000,000 according to several sources.

KSBJ is a Christian Contemporary Music powerhouse. Nielsen Audio estimated that during Fall 2015 KSBJ had 25,600 average-quarter-hour listeners, a 5.1% share of the market, 774,000 weekly cumulative listeners and an amazing 12.7 weekly cume rating, measuring a station’s listening penetration into the total market.

(Scroll down to see a detailed look at the KSBJ Educational Foundation.)

 Tom Taylor NOW [link] reports Houston Public Media won’t take a loss on selling the signal it went through such trouble to buy, back in 2010. NOW also discusses the programming plans for 91.7: An aggressive CCM Christian hip-hop and rock playlist designed for younger listeners called NGEN – “Now Generation” [link].  NGEN is a multi-platform digital service that has previously been heard on KSBJ-HD2. 

JOHN PROFFITT: KUHA PURCHASE WAS “A CROWN TO MY CAREER”
 
John Proffitt
The sale of KUHA is deeply disappointing for Classical music listeners in Houston. HPM acquired 91.7 only five years ago. In 2010, HPM’s John Proffitt led the effort to purchase KTRU from Rice University for $9.5 million.  Proffitt called the purchase A Crown in My Career.

To raise the money to buy 91.7 the HPM via the University of Houston floated bonds.  The repayment schedule called for around $400,000 per year to service the debt. HPM couldn’t pay the mortgage and the University of Houston (on the hook for the bonds) decided to sell and cut their losses. The deal to sell 91.7 did exactly that.


MEET KSBJ RADIO & CONCERTS

In September 14, 2015 we took a closer look at KSBJ and here is some of what we learned:

An old friend from the music and concert promotion business told me that dealings between CCM stations and Christian music industry would make Alan Freed blush. I don’t mean to imply that anything about KBSJ or CCM broadcasters but opportunities to create revenue are convenient.


According to KSBJ’s most recent tax filing for 2013, KSBJ had revenue of $8,768,000. [2013 is the source of all data, rounded to the nearest $1,000.]  Almost all of the revenues is attributed to gifts and contributions which were not itemized.

KSBJ reported expenses of $8,007,000 for an annual operating margin of $761,100.  KSBJ’s assets were $25,801,000, substantial for a nonprofit entity.  In 2013 KSBJ spent over $500,000 on political lobbying.

But wait, there is more money: KSBJ also operates a separate 501c3 for its concert business: KSBJ Special Events. This organization reported $1,787,000 in revenue and $1,669,000 in expenses for an annual operating margin of $88,000. KSBJ Special Events reported revenue of $8,376,000 since tax year 2009.

Wait again, there is even more money.  The exclusive ticket vendor for KSBJ Special Events is Ticket Servant, also operated by KSBJ. In 2013 Ticket Servant revenue was $329,800.

The total revenue for KSBJ Radio & Concerts in 2013 was almost $11,000,000. The driver of this business is the appeal of hit songs and hot CCM artists played in tight rotations. The artists appear at concerts and station events. ASo, airplay is the key to making the money machine go around.


Thursday, February 25, 2016

PLANNING GUIDE: NONCOMMERCIAL MEDIA CONFERENCES


Recently I’ve received messages from commercial radio folks who are interested in working in public radio.  They often ask how to get started. I recommend investigating noncommercial trade associations and their conferences. Today we have a list of 2016 conferences of interest to noncom folks.


Public Radio Engineering Conference (PREC)
APRIL 14-15 • LAS VEGAS

VENUE: Tuscany Suites

More info at [link]

Quick Overview:

Hosted by the Association of Public Radio Engineers, the PREC is held concurrently with the Broadcast Education Association (BEA) and the NAB Convention.

Who Typically Attends:

Public radio station engineers, contract engineers, NPR distribution folks, equipment and software vendors. (I have not attended this conference.)
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16th Annual Triple A NON-COMMvention 
MAY 18-20 • PHILADELPHIA
VENUE: WXPN/World Café Live
More info at [link]

Quick Overview:

Noncom media’s most enjoyable often most informative conference. At the NON-COMM you will hear great live music from breakfast until lights out plus attend panels and workshops that don’t waste your time. This is where the NON-COMM radio and music communities meet each year.

Who Typically Attends: 

Noncommercial station managers, programmers, music directors and hosts, consultants, artists, promoters and music company executives. (I have attended this conference at least six times.)

***HIGHLY RECOMMENDED*** 
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Public Media Business Association (PMBA) Annual Conference
MAY 31 – JUNE 3 • NEW ORLEANS
VENUE: JW Marriott Hotel
More info at [link

Quick Overview & Who Typically Attends:

CEOs, general managers, CFOs, executive directors, financial and business executives, HR professionals and supporting organizations such as CPB. The conference focuses on business strategy, sustainability, compliance, accounting, finance, and human resources issues. (I have not attended this conference.)
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NFCB Community Media Conference
JUNE 8-11 • DENVER

VENUE: Embassy Suites at the Denver Downtown Convention Center
More info at [link] 

Quick Overview:

Sally Kane is doing a nice job bringing the National Federation of Community Broadcasters (NFCB) back to life after the organization had a few rough years. She is making NFCB a more practical and less political organization that concentrates on sustainability and mission.

Who Typically Attends:

Managers of NFCB stations, often Pacifica-type community stations, advocates for various causes and, more recently operators of new LPFM stations. Vendors often have a tough time getting business a the NFCB since most stations have seeds & stems budgets and carry very few syndicated programs. (I have attended this conference at least four times.)

_______________



 Public Radio News Directors (PRNDI) Annual Conference
JUNE 21-23 • ST. LOUIS

VENUE: Chase Park Plaza
More info at [link]  

Quick Overview & Who Typically Attends: 

News Directors at NPR News stations, representatives of NPR, APM, PRI, BBC, news software vendors. The conference culminates with the presentation PRNDI's annual awards at a banquet on Saturday, June 25th.  (I have attended this conference at least eight times.)
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 THE CONCLAVE
JULY 13-15 • MINNEAPOLIS

VENUE: Crown Plaza Hotel at MSP International Airport
More info at [link]

Quick Overview & Who Typically Attends:  

The Conclave is a nonprofit organization with a stated educational mission. It was started in the early 1970s by record industry legends Doug Lee, Bill Gavin and Tom Kay. Commercial radio hyper-consolidation in the 1990s hurt station attendance and record labels quit spending promo money on conferences. More recently The Conclave has reemerged as a blow-and-go affair where commercial radio bigwigs give each other rewards and spend time mentoring vocational students looking for their first job. (I have attended this conference at least ten times.)

NOT RECOMMENDED
_______________


Public Media & Development & Marketing Conference (PMDMC)
AUGUST 10-12 • BOSTON
VENUE: Sheraton Boston
More info at [link]

Quick Overview & Who Typically Attends:

Hosted by Greater Public, the PRDMC brings together underwriting, fundraising and marketing folks from public radio, public TV and digital media noncom organizations. It is probably the nation’s largest noncommercial media conference – over 1,250 people attended in 2015. (I have not attended this conference.)

RECOMMENDED


_______________



Christian Music Broadcasters (CMB) Momentum Conference
SEPTEMBER 7-10 • LAKE BUENA VISTA, FLORIDA
VENUE: Disney’s Yacht & Beach Club Convention Center & Resort
More info at [link]
Quick Overview & Who Typically Attends:

Momentum is where Christian Contemporary Music’s (CCM) best and brightest programmers and consultants meet to improve their already highly successful strategies. Folks from attending stations often serve hundreds of thousands of estimated weekly cumulative listeners – some of the biggest audiences in noncom radio. Guest speakers are often secular pros and the emphasis is on making great radio (and doing the Lord’s work). CCM music industry execs, artists and promoters also attend. (I have not attended this conference.)
_______________


PUBLIC RADIO PROGRAMMING CONFERENCE (PRPD)
SEPTEMBER 20-22 • PHOENIX
VENUE: Hyatt Regency
More info at [link]



Quick Overview:

THIS IS THE ESSENTIAL PUBLIC RADIO CONFERENCE. The PRPD is where public radio programming is designed, evaluated, marketed and promoted. It was founded and built for radio and digital media creators. Conference sessions are packed with the latest research, trends, news and networking.

Who Typically Attends:

Program directors, content managers, consultants, representatives of NPR, APM, PRI and PRX, though there have been comments in recent years that some “deciders” are staying home. There are plenty of vendors and occasionally commercial radio folks with something to sell. The mood is collegial, professional and urgent. (I have attended this conference at least twenty times.)

HIGHLY RECOMMENDED
_______________



36th Annual CMJ Music Marathon 
OCTOBER 13-17 • NEW YORK CITY
VENUES: Multiple Hotels and Clubs
More info at [link]


Quick Overview & Who Typically Attends:
 
The 36th Annual CMJ Music Marathon in New York City presents college radio-oriented sessions and workshops along with extensive new music showcases in New York City October 13-17. Over 1,400 shows are planned throughout NYC. A friend of mine in the music business said this is conference to attend if you want to get laid. (I have not attended this conference.)
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National Student Electronic Media Convention
OCTOBER 20-22 • PHILADELPHIA
VENUE: Sonesta Hotel
More info at [link}

Quick Overview & Who Typically Attends:
 
This is by far the best college media conference in the nation.  It is planned and hosted by College Broadcasters, Incorporated (CBI). The sessions are consequential and even sometimes gutsy. The emphasis is on doing radio and audio media. Look for college students – lots of students – who are eager to learn and network. (I have not attended this conference but I want to.)

RECOMMENDED

Wednesday, February 24, 2016

TOP COLLEGE STATIONS: KUOM, MINNEAPOLIS; WSUM, MADISON & WHUS, HARTFORD


Though it is difficult to generalize the characteristics of the approximately 400 noncommercial radio stations licensed to colleges, universities and schools, one word stands out: SMALL.

These stations most often operate with small budgets, reach a small number of listeners and have only small impact on their markets. Many college stations are “clubs and cliques” – a circle of like-minded young folks into their social scene.

Every year, sometimes every semester, there are newbies at the door anxious to play their favorite tunes for their friends. This is an enjoyable but temporary experience because the ticking of the clock means some will leave and some will carry on when the semester or academic year ends.

The mission of the stations is also small: Serving the campus, avoiding F-bombs on the air, cranking the volume to “11” and getting prepped for the party after your shift. I’ve been there. Occasionally someone flunks out of school because they majored in radio.

Some college stations provide valuable training and useful hands-on experience. But the focus remains inward – not serving listeners.

Small is the best way to describe the operating budgets for college stations.  It is unusual to find a college station where the annual operating budget tops $50,000. Frequently the funding comes from student activity fees paid at the start of each semester. The college radio station competes for activity fees with the Anthropology Club, Black Student Union and the campus newspaper.

Reliable budget information is often hard to find. Through my own research here are the top 20 college stations, ranked by budget size:

Data Sources: IRS 990 filings, institution budgets, student government files and news coverage of student activity fees

“CMJ Rock” refers to stations that play music featured on the College Media Journal charts [link]

DISCLOSURE: I have worked as paid consultant for KUOM, aka Radio K. KUOM differs from other stations on the list above because for many years it operated as a CPB-funded public radio station. KUOM lost their CPB support several years ago because their listening failed to meet CPB’s audience size criteria. The University of Minnesota kept the half-dozen full-time employees. These salaries inflate their Total Station Revenue above most other college stations.


THE BEST COLLEGE RADIO STATION IN AMERICA: WSUM AT THE UNIVERSITY OF WISCONSIN IN MADISON

In my opinion WSUM [link] excels in all the basics of good broadcasting.  It provides a model others should follow. If you have three minutes take a look at their Station Tour video: 


Link: https://www.youtube.com/watch?v=uHvWlsYsXFg



 WSUM knows their listeners are people who live in Madison, not just Badgers around the campus.  Here is how WSUM describes its audience in its excellent underwriting brochure:

 WSUM operates like a nonprofit business where sustainability is the goal. They have a very active “friends” 501c3 and use it to diversity their revenue sources. WSUM’s pledge drives are money-makers and their underwriting plans are more sophisticated than some CPB-funded pubic radio stations.  Here is part of WSUM’s rate card:



SNAKE ON THE LAKE



 WSUM is a co-sponsor the Snake on the Lake music festival that starts each new academic year in September. Snake on the Lake is an essential Madison experience and WSUM takes full advantage of opportunities to monetize the event:



 
David Black, Radio Hero


The architect of WSUM’s game plan is faculty adviser David Black. The students run the place and Black provides coaching and the template for continued success. WSUM matters in Madison.










Tuesday, February 23, 2016

NONCOM NEWS: LIVE FROM DC ITS NPR NEWS; MAINE BUILDING CLASSICAL FM CHANNELS



NPR NEWS RINGS THE “LIVE” BELL



 Perhaps you’ve heard a small change in the way NPR is introducing its hourly newscasts "Live from NPR News in Washington." It is part of a strategy for NPR programming, including Morning Edition and All Things Considered to insert live conversations and interviews that previously would have been pre-taped and edited.



Chris Turpin

Chris Turpin, VP for news programming and operations, said the "live" moments are "one small part of a broader strategy to try to reinforce one of terrestrial radio's greatest virtues, which is live-ness and a sense of immediacy."


NPR has also been adding live election specials recently, as the presidential candidate nomination process intensifies.




KBSU/KBSX SEEKING NEW GM/ED AFTER JOHN HESS RESIGNS

Boise State Public Radio, which serves almost the entire state with two program channels – NPR News & Classical, is looking for a new General Manager/Executive Director. Boise State has hired Livingston & Associates to handle the search.  You can learn more about the gig at [link]. 

  

Former GM John Hess resigned in December after almost 11 years on the job. Peter Morrill is the Interim General Manager and Paul Stribling remains Associate General Manager/Director of Programming. Boise State Public Radio is roughly a $2.5 million enterprise. The two stations had over 108,000 estimated weekly cumulative listeners in the Fall 2015 Nielsen Audio ratings.

MAINE PUBLIC RADIO BUILDING A SECOND PROGRAM SERVICE

Maine Public Broadcasting’s (MPBN) statewide radio service is building the capacity for a second programming stream airing 24/7 Classical music. MPBN’s main channel has had a dual format for a couple of decades.  In recent years more and more news programming has been added at the expense of Classical.

Full-time Classical has been available for several years on WMEH HD2. Both listeners reportedly enjoy it.

MPBN has acquired two FM properties since the first of the year that serve Portland and Bangor, the state’s largest population centers:






MPBN bought 91.5 WFYB, Freyburg, ME, from Light of Life Ministries for $37,500.














 In January MPBN, acquired FM translator W291CO – 106.1 for an unspecified amount.


Both stations will repeat Classical-24 from WMEH HD-2.






TRIPLE A NON-COMMVENTION HOTEL SELLS OUT


It looks like it is going to be a packed house May 18-20 at noncom radio's most entertaining conference: The 16th Annual NON-COMMvention in Philadelphia. The primary hotel, the Sheraton Philadelphia University City has already sold out. Overflow hotels are Homewood Suites by Hilton University City and Club Quarters Philadelphia.

All of the hotels are close to WXPN World Café, where most of the NON-COMM events will be held.  For more information go to [link].






Monday, February 22, 2016

WHY RADIO IS SO RESILIENT


Nielsen recently released a new edition of its ongoing Comparable Metrics Reports and radio is still very, very is strong. The report measures media consumption during a sample week across six platforms: TV, Radio, TV Connected Devices (DVD, Game Console, Multimedia Devices such as Apple TV, Roku, Google Chromecast), PCs, Smartphones and Tablets. 

This chart shows the estimated top-line reach of each platform displayed by demos:



(Scroll down to see more charts from the Nielsen report.)

Usage of Smartphones and TV-Connected devices has increased the most, but two heritage platforms show remarkably wide reach: TV and Radio. 

Why?

• CONTENT – People seek out what they want to see and hear based on its appeal and value to them. TV and radio have content that many people want experience frequently.

• CONVENIENCE – TV is ubiquitous, reliable and programmed for viewer’s lifestyles. Radio is King of the Car because it offers information and entertainment with the least amount of work for the driver. Even connected-car devotees still tune to radio for immediate needs such as traffic, weather and news.

• HABIT – Viewing TV and listening to radio are comfortable and familiar habits that have kept their relevance over time. Reading magazines and printed newspapers used to be among the habits of many people but less these days. Both have been in steep declines for the past couple of decades. People change some habits over time but they don't change all of them. They keep habits that provide value.

• COMPATIBILITY WITH OTHER PLATFORMS – TV and radio are “cousins” with many digital platforms and devices. TV is based on viewing a screen.  People have been conditioned over time to use screen-based media. Radio is adding video components, interaction and social media with increased sophistication. TV and radio are at best creative factories – content that multiplies its reach and impact when available on multiple channels.

• LIVE MOMENTS – TV and radio are go-to places for events and news that is happening right now. These are often common shared experiences like the Super Bowl, candidate debates or jury decisions. They invite the viewer and/or listeners to share the moment. It is exciting when the outcome is unknown.

Radio used to have many of these moments but we need more of them. Covering “live” as it happens is an important programming tool in radio’s arsenal.

KEY QUESTION: WHAT IS IN THE PROGRAMMING PIPELINE?

Broadcast, cable and streaming TV producers and networks always have lots of new stuff in development. House of Cards didn’t happen over night – it took effort and lots of dough. PBS has a pipeline. Current periodically prints detailed descriptions of programming in development for upcoming years on public TV. But not public radio.

Public radio invests too little time and resources developing new programming and essential personalities.

This lack of forward thinking reminds me of a lesson from the recent past: Radio gave up investing in AM radio and people stopped listening to AM. Rush Limbaugh and other magnet talkers brought compelling content back to AM and listening went up. Again, content is THE main reason people use radio – they want to hear something that connects with them.

In my opinion too much time and resources are being spent on peripheral activities like podcasting. Podcasts are certainly an important part of the media menu but podcast usage (with exception of a few standouts like Serial) is a fraction of the reach of radio or TV. 

As we know, podcasts are hard to monetize, in part because their reach is hard to quantify. Simple questions such as the duration of listening and whether downloads are actually heard are elusive. Podcasts aren’t main show.  Many podcasts are little more than the old audio cassettes that once littered the media landscape.

BE HERE NOW

Our plans never turn out as tasty as reality. - Baba Ram Das

 It is important to know trends and the direction of the forest because they are essential metric the help us plan for the future. But don’t forget we live in the here and now. I fear we are focusing to little on what people are actually doing now.

One of the things that people are doing now is listening to radio. As we see in Nielsen’s report, over 90% of American adults do hear/listen to radio each week. What we serve them will determine how often they will come back to us. Noncom adds another dimension – listeners who value programming enough to support it.

OTHER INTERESTING CHARTS FROM THE NIELSEN REPORT