Observations from this year's NAB Show

Following a day of recovery time, I would like to share some observations from this year's NAB in Las Vegas. Many of us switched venues this year. Brokers and bankers were torn between the familiar Bellagio and the new (and NAB endorsed) Encore. Most (including Media Services Group) opted for the Encore. It turned out to be a great spot . . . good restaurants, pleasant surroundings, and generally good service. Our suite was in the Tower Suites and it proved to be a comfortable meeting locale. I heard several comments that the "bump factor" (running into colleagues in the lobby, bar, and hallways) was not as good as previously at the Bellagio.

On a side note, the Encore is hosting Garth Brooks in its showroom. Loree and I saw his show Sunday night and it was fabulous. He does over two hours just with an acoustic guitar. No band. No fire, smoke or flashing lights. If you get a chance, see the show.

The official NAB attendance numbers were up over last year and our experience bore that out. Unlike last year when there were few bankers, buyers or sellers in our suite, this year consisted of wall to wall meetings. I think that is a good leading indicator of the health of the station trading business. The difference between this year and last was striking.

The same can be said about attitudes. A year ago, most of us had the feeling of staring into the abyss. Fast forward twelve months and you get the sense of a new optimism about the broadcasting industry (though fear abounds about the economy). There is a strong sense that the "bottom" is in the rear view mirror. I concur. In fact, I think that the New York Times sale of WQXR last year was the bottom. Things have steadily improved since.

As for station pricing, my partners and I went into the convention with the sense that buyers were offering up 6x BCF and sellers were asking 8x (with some deals likely to get done in the sevens). Our meetings with prospective buyers and sellers supported our thesis. I believe that 6x to 8x range to be an accurate assessment of today's trading market.

Inventory is still tight. I know that ours is and conversations with other brokers and buyers suggest that we are not alone. We expect a far greater supply of inventory by the fall Radio Show.

I also found it noteworthy that we had some bankers in our suite (and they were not all there to talk about workouts). Some lenders appear to actually be gearing up to make media loans again. That too is significant.

There was a lot of chatter (and a few conspiracy theories) about the $500 million equity investment with Lew Dickey. As I mentioned before, we view it as a sea-change event for the industry.

As always, regulatory matters were front and center in Las Vegas. One conversation raised an interesting point regarding the FCC's attempted TV spectrum grab. If the current FCC commissioners think that broadcasting is no longer relevant (as seems to be the case), how can they then take the position that multiple ownership rules make any sense? We're either relevant or we're not. They can't have it both ways.

The NAB Show proved that the deal market is back, at least compared to last year. There is much healing still required. And things won't materially improve until the lenders re-enter the marketplace. But finally, we appear to be moving in the right direction.

That's how I saw the convention. What about you?

George
Media Services Group

The bottom is in

The Crestview Partners $500 million investment in Lew Dickey announced today marks the turnaround for the radio industry. With leverage, it represents new liquidity for the radio business in excess of $1 Billion. I believe that we saw the real pricing bottom mid-year 2009 with the purchase and sale of WQXR in New York.

This deal brings renewed life to station trading. We have weathered the storm. Congratulations Lew!

George
Media Services Group

iPad sales in 2010 are predicted to top 7.1 million units. 2011, 14.4 million. 2012, 20.1 million. Article

Fellow radio broadcasters: don't you wish the iPad included an FM tuner, especially one capable of receiving HD? How did we miss this?

George
Media Services Group

Stations for sale: new opportunities

Media Services Group is exclusively marketing some new radio and TV station opportunities:

• 4 station cluster (2 AM / 2 FM) in a Mid-Atlantic college market. $700k revenue
• 4 FM station cluster in rated Southeastern market. Turnaround priced to sell. Seller financing.
• Small market ABC affiliate TV station
• 4 FM station cluster in rated North Carolina market. Seller financing.
• AM/FM in North Carolina resort market. Seller financing.
• 2 FMs in Southwest rated market.
• 2 FMs in Midwest rated market. Positive cash flow.

If you are interested, please contact me for an NDA (George@MediaServicesGroup.com).

George
Media Services Group

Let's get together at the NAB

The NAB is just around the corner. The Media Services Group suite will be at the Encore this year. If you would like to discuss the station and tower trading marketplace, please get in touch for an appointment. We are available Sunday night through Tuesday.

I hope to see you there!

George
Media Services Group

Good FCC information website for broadcasters

Here is a website from Cavell Mertz & Associates which makes researching FCC station information a breeze (for AM/FM/TV). You can also search Antenna Structure Registration and nearby airports. Very handy. And thanks to Don Curtis for the tip. Click here: FCCInfo.com

George
Media Services Group

Are Broadcasters About to Spend Another 24 Months in a Flaming PR Dungeon?

When XM and Sirius hit the marketplace, the companies’ PR machines (and their Wall Street supporting cast) waged war on traditional broadcasters. And for the most part, they won, at least until the truth overcame the hype.

We spent a couple of years reading and hearing about the destruction of free over-the-air broadcasting. Satellite radio was Radio’s Death Star. It would own car radios. Broadcasting was obsolete.

Guess what. XM and Sirius merged and morphed into the niche business it was always destined to become.

Here we go again. Pandora will likely go public in the near future. The hype, much like that with satellite radio, will become deafening as the Wall Street banks line up to rake in big fees from the IPO and run-up of the stock.

Are broadcasters going to again sit idly by and suffer another two years in the PR dungeon?
Pandora is a cool application. It probably has “legs” in the marketplace. But it is another niche product. It cannot beat “local.” It will not beat us at what we do best.

Broadcasters need to unite to tell their story of free, over-the-air radio. We do not need to spend the next two years listening to “Pandora’s Radio Death Star” story. We have incredible reach in every community in the country. Pandora does not now, and I predict, will not ever have it. Let’s tell the world what Pandora really is… a “cool” niche product.

Those are my thoughts. What are yours?

George
Media Services Group

Most Talked About, Least Understood: Social Media

This article was written by John Potter, VP/Training, Radio Advertising Bureau, and is one of the best I have seen on the subject:

http://www.rab.com/public/rst/article.cfm?article=1&id=1916&view=email

George
Media Services Group

Regent Communications Announces Consensual Restructuring Agreement With Senior Lenders

Regent announced a restructuring this morning which includes a prearranged Chapter 11 filing. Oaktree Capital Management L.P. will assume control. If that name sounds familiar, Oaktree backs the GAP companies and Triton Digital. The press release is HERE.

George
Media Services Group

The Spring Thaw Has Started Early

The frozen station trading market is starting to thaw. Media Services Group has actually announced some sales and some closings in recent weeks (including Jody McCoy's Denver sale) after months of dormancy. With our size and scope, we're a good barometer for the state of the marketplace. And pressure is rising.

The credit markets remain a problem, but I take Salem's recent debt placement and Clear Channel's recent upgrade as positive steps. Some sellers in the small markets are now considering seller financed transactions.

Reports from the station operators around the country are generally upbeat about QI business (albeit against easy comps). It appears that national business has turned the corner. The spring thaw has begun a little early this year.

George
Media Services Group

See you in a week

Loree and I are leaving today for a week long visit to Cuba. This is our second trip. We are traveling (legally!) on behalf of Methodists United in Prayer, a relationship between the Florida and Cuba Methodist Churches.

As we will not have access to the web, cell phones, or email, these pages will be silent for a week. We'll chat again after we return on February 11.

George
Media Services Group

Meet the Media Services Group partners: Greg Merrill

This post completes my series of highlights of my partners at Media Services Group. We are proud of the twenty years of service to the broadcast industry. We wrap up with another of our co-founders, Greg Merrill.

Greg anchors our Salt Lake City office from Logan, Utah. Over 26 years as a broker/consultant, and with a thorough knowledge of the broadcasting industry, he as prepared hundreds of appraisals and station analyses. In addition, he has 13 years of owner/operator experience.

Greg has served as a Court Appointed Receiver for District Court Boise (KDJQ-AM) and has been involved in Bankruptcy cases and/or served as expert witness in:

•Boise, Idaho Federal Bankruptcy Court
•Salt Lake City Federal Bankruptcy Court
•Expert witness in Phoenix, Arizona; Eugene Oregon; Seattle, Washington; and Bakersfield, California

Greg has sold over 150 stations in Utah, Idaho, Montana, Wyoming, Nevada, Arizona, Colorado, New Mexico, Washington, Oregon and California. He holds a B.S. Business Administration degree and a Master’s Degree in Communications from Utah State University.

I am honored to work with this group of professionals. Collectively, we bring hundreds of years of service to broadcasters, lenders and investors. All of my partners put integrity first. Maybe that's why we're still around and successful after twenty years.

George

Media Services Group

Meet the Media Services Group partners: Providence office

Our Providence office is staffed by veterans Bob Maccini, Stephan Sloan, and Ted Clark (with Diana Todd really running things). In addition to an active station brokerage practice, our Providence office anchors our broadcast valuation practice, which in my humble opinion, is the best in the industry.

Bob Maccini commenced his broadcasting involvement at Old Stone Bank, Providence, RI where he managed the bank's Communications Lending Group for five years. Subsequently, he founded and managed Chapman Financial Services, a subsidiary of Chapman Associates which provided investment banking services to the broadcasting industry.

Bob was one of our co-founders when Media Services Group was launched twenty years ago. Since, he has worked with numerous financial institutions in broadcasting related workout transactions and has been appointed as a receiver and examiner by various courts to oversee and sell radio and cable television companies.

Bob serves on the Boards of Saga Communications and GAP Broadcasting, and is President/CEO of Ando Media. He holds a B.A. degree in Economics from Holy Cross College and an M.B.A. degree in Finance from Babson College.

Stephan Sloan assists clients in a variety of investment banking, brokerage, appraisal, portfolio management, and expert testimony tasks. Stephan has helped clients obtain more than $40 million in senior debt and helped broker radio stations with an aggregate value of more than $200 million. He has appraised or assisted in the appraisal of radio, television, and cable television systems valued in excess of $500 million for clients that include the Federal Deposit Insurance Corporation (FDIC) and the Resolution Trust Corporation (RTC).

Working closely with Bob in Media Services' Broadcast Portfolio Group, Stephan has helped financial institutions with problems in their broadcast and cable loan portfolios and in court-appointed receivership assignments. He has also been accepted in state court as an expert witness on radio station valuation, finance, and receivership matters. Steph attended Salve Regina University.

Ted Clark is an analyst in Providence. He joined the firm in 1997 and since that time has performed valuations of radio, television and cable television systems totaling in excess of $560 million. Prior to joining Media Services Group, Ted (or as we call him, "Dr. Clark") worked as a research scientist and software developer in the biotechnology industry. He received his B.S. degree from the University of Rhode Island and performed his graduate studies at Dartmouth College.

George
Media Services Group

Radio Disney Group sells WMNE (AM) serving West Palm Beach

Radio Disney Group, LLC has agreed to sell WMNE (AM) (Riviera Beach, FL) serving West Palm Beach to Travis Media L.L.C. (pending FCC approval).

Eddie Esserman and Bill Whitley of Media Services Group were the exclusive brokers.

Congratulations Eddie and Bill (again!).

George
Media Services Group

KAKS-FM sale closes

Carroll County Broadcasting has completed the acquisition of the assets of radio station KAKS-FM, serving Fayetteville, Arkansas from Davidson Media Arkansas Stations LLC. Felix Perez is the CEO of the Seller, and Jay Bunyard is the President of the Buyer. Both Buyer and Seller have multiple other broadcast properties. The purchase price is $1,110,000.

Bill Whitley of Media Services Group’s Dallas office served as the exclusive broker for this transaction and represented the seller.

Congratulations Bill!

George
Media Services Group

Meet the Media Services Group partners: Tom McKinley

Tom McKinley joined Media Services Group in 1996, opening our West Coast office. He has been involved in the sale of over 100 radio stations across the country. In addition he has done numerous appraisals and has also acted as a consultant to broadcast groups and stations.

Prior to joining MSG, Tom had 25 years of broadcast experience, first in sales management and then as VP/GM of stations in New Haven, Kansas City, Seattle, and San Diego/Los Angeles where he ran a regional Southern California station. He was also Executive VP/GM of All News WTOP-AM and WASH-FM, two of the Washington, DC market’s leading stations. In addition he was Senior VP Corporate for Noble Broadcast Group, which at the time was one of the largest broadcast groups in the country.

Tom's additional experience includes National Sales Management at Major Market Radio, Manager West Coast, and Executive VP Stations, New York, as well as President, Group W Radio Sales. Tom opened the Media Services Group office in Metro New York in 2006, and maintains a West Coast office in Northern California.

Tom's been known to frequent an Irish bar or two. He is also MSG's designated story-teller. If you know him, you know what I'm talking about!

George

Media Services Group

Call Report

The news last week was not particularly good. Regent missed a payment. GE and Black Crow squared off in court.

But there are glimmers. Most broadcasters I have spoken with are reporting good first quarter pacings. Yes, the comps are easier, but it is a start. I met with a fund last week who has recently taken a position in the industry. I believe them to be "smart money." And I met with a broadcaster who believes that radio stations are attractive at the current pricing level. I continue to believe that things are looking up for 2010.

George
Media Services Group

Meet the Media Services Group partners: Jerry Johnson

Jerry manages Media Services Group’s Minneapolis office. His fourteen-year association with WCCO, coupled with twenty-five years as a station broker, has provided him with a keen knowledge of the media industry and the "deal process" of buying and selling properties.

Jerry has been involved with transactions for more than 160 media properties covering nine states. Additionally, he has appraised more than 60 broadcast properties in the Midwest and surrounding areas. Jerry is a member of the National Association of Media Brokers and a member of five broadcasting organizations. He has authored articles for the Minnesota Broadcasting Association newsletter and contributes to many national trade publications.

George

Media Services Group

2009 Non Commercial FM Sales ($1 million or higher)

After taking a look at significant 2009 sales of commercial FM stations, I thought it might be interesting to look at the non commercial FM deals. I queried our BIA database for all 2009 transactions of non commercial FM stations with a sale price equal to or greater than $1 million. Here's what turned up:

1. Market: Dallas-Ft. Worth, TX
Market Rank: 5
Sale Announced: 06/09
Calls: KKXT
Buyer: North Texas Public Broadcasting Inc.
Seller: Covenant Educational Media Inc.
Price: $18,000,000
Pop Count (60 dBu): 4,974,764
Cost per Pop: $3.62

2. Market: Pittsburgh, PA
Market Rank: 25
Sale Announced: 05/09
Calls: WAOB-FM
Buyer: Saint Joseph Missions
Seller: Sheridan Broadcasting Corp.
Price: $8,900,000
Pop Count: 2,132,539
Cost per Pop: $4.17 (this assumes no value for the AM properties)
Comments: Sale includes two AM properties, WAMO and WPGR

3. Market: Cape Charles (Norfolk), VA
Market Rank: 43 (Norfolk)
Sale Announced: 09/09
Calls: WAZP
Buyer: Educational Media Foundation
Seller: Delmarva Educational Association
Price: $4,000,000
Pop Count: 440,842
Cost per Pop: $9.07

4. Market: Toledo, OH
Market Rank: 92
Sale Announced: 01/09
Calls: WNKL
Buyer: Educational Media Foundation
Seller: Cornerstone Church Inc.
Price: $2,825,000
Pop Count: 354,869
Cost per Pop: $7.96 (This assumes no value for the AM property)
Comments: Sale includes WNWT-AM

5. Market: Rockford, IL
Market Rank: 149
Sale Announced: 05/09
Calls: WGSL/WQFL
Buyer: Educational Media Foundation
Seller: First Assembly of God Church
Price: $2,000,000
Pop Count (WGSL): 408,712
Pop Count (WQFL): 368,686
Cost per Pop: $2.57

6. Market: Oxnard-Ventura, CA
Market Rank: 118
Sale Announced: 01/09
Calls: KLFH
Buyer: Logos Broadcasting Corp.
Seller: Shepherd Communications Inc.
Price: $1,350,000
Pop Count: 346,992
Cost per Pop: $3.89

7. Market: Raleigh-Durham, NC
Market Rank: 42
Sale Announced: 10/09
Calls: WAJC-FM/WGPS-FM/WJIJ-FM/WPGT-FM and W214BJ (translator)
Buyer: Liberty University Inc.
Seller: Calvary Chapel of Cost Mesa
Price: $1,250,000
Pop Count (WAJC): 45,043
Pop Count (WGPS): 103,995
Pop Count (WJIJ): 16,566
Pop Count (WPGT): 37,330
Cost per Pop: $6.16
Comments: I ignored the translator for purposes of determining the Cost per Pop.

8. Market: San Luis Obispo, CA
Market Rank: 170
Sale Announced: 02/09
Calls: KESC
Buyer: University of Southern California
Seller: Lazer Broadcasting Corp.
Price: $1,200,000
Pop Count: 181,645
Cost per Pop: $6.61

9. Market: Ft. Wayne, IN
Market Rank: 108
Sale Announced: 07/09
Calls: WLAB
Buyer: Star Educational Media Network Inc.
Seller: Indiana District - Lutheran Church MS
Price: $1,000,000
Pop Count: 349,388
Cost per Pop: $2.86 (ignores coverage of translators)
Comments: Includes two translators.

10. Market: Wilkes Barre-Scranton, PA
Market Rank: 70
Sale Announced: 06/09
Calls: WCIG
Buyer: Family Life Ministries
Seller: GEOS Communications
Price: $1,000,000 (plus Buyer assigns two translators to Seller)
Pop Count: 431,812
Cost per Pop: $2.42

George

Media Services Group

Top 50 TV Markets ranked by 2009 revenue (BIA)

Here is the estimated 2009 television market revenue from BIA for the top fifty markets ($000):

1. Los Angeles, CA (1,193,900)
2. New York, NY (1,059,900)
3. Chicago, IL (635,600)
4. Dallas-Ft. Worth, TX (484,000)
5. Philadelphia, PA (435,300)
6. San Francisco-Oakland-San Jose, CA (412,300)
7. Washington, DC (401,700)
8. Houston, TX (387,500)
9. Atlanta, GA (367,000)
10. Miami - Ft. Lauderdale, FL (365,700)
11. Boston, MA (340,100)
12. Phoenix, AZ (292,500)
13. Denver, CO (260,700)
14. Tampa-St Petersburg-Sarasota, FL (253,400)
15. Orlando-Daytona Beach-Melbourne (243,100)
16. Detroit, MI (242,300)
17. Seattle-Tacoma, WA (231,000)
18. Minneapolis - St. Paul, MN (211,900)
19. San Diego, CA (178,300)
20. Cleveland-Akron, OH (173,600)
21. Sacramento-Stockton-Modesto, CA (172,400)
22. Pittsburgh, PA (158,400)
23. San Antonio, TX (154,300)
24. Charlotte, NC (152,400)
25. St. Louis, MO (151,000)
26. San Juan, PR (150,900)
27. Baltimore, MD (149,900)
28. Indianapolis, IN (147,300)
29. Hartford-New Haven, CT (136,400)
30. Las Vegas, NV (135,500)
31. Columbus, OH (131,100)
32. Raleigh-Durham, NC (128,000)
33. Portland, OR (122,700)
34. Salt Lake City, UT (121,600)
35. Kansas City, KS-MO (120,800)
36. Nashville, TN (113,800)
37. Cincinnati, OH (113,600)
38. Milwaukee, WI (110,600)
39. Oklahoma City, OK (96,600)
40. Norfolk-Portsmouth-Newport News, VA (92,700)
41. West Palm Beach-Ft. Pierce, FL (92,700)
42. Greenville-Spartanburg, SC-Asheville, NC (86,900)
43. Jacksonville, FL (86,400)
44. Louisville, KY (84,900)
45. New Orleans, LA (82,600)
46. Austin, TX (80,700)
47. Birmingham, AL (78,800)
48. Albuquerque-Santa Fe, NM (78,600)
49. Memphis, TN (78,000)
50. Richmond-Petersburg, VA (75,500)

George
Media Services Group

Top 50 Radio Markets ranked by 2009 revenue (BIA)

With 2009 behind us (which many of us are thankful for), I thought it might be interesting to look at the top 50 radio markets ranked by estimated radio revenue. I used the BIA numbers for the estimates. Here is how they shake out ($000):

1. Los Angeles, CA (698,000)
2. New York, NY (560,200)
3. Chicago, IL (441,100)
4. Dallas-Ft. Worth, TX (303,500)
5. San Francisco, CA (274,000)
6. Houston-Galveston, TX (267,800)
7. Atlanta, GA (267,500)
8. Washington, DC (245,000)
9. Boston, MA (225,200)
10. Miami-Ft. Lauderdale-Hollywood, FL (223,400)
11. Philadelphia, PA (217,400)
12. Phoenix, AZ (190,900)
13. Seattle-Tacoma, WA (174,800)
14. Detroit, MI (159,500)
15. Minneapolis-St. Paul, MN (140,300)
16. Denver-Boulder, CO (137,800)
17. San Diego, CA (136,900)
18. Tampa-St. Petersburg-Clearwater, FL (110,000)
19. Baltimore, MD (103,600)
20. St. Louis, MO (99,200)
21. Orlando, FL (98,800)
22. San Antonio, TX (98,600)
23. Sacramento, CA (98,400)
24. Portland, OR (95,400)
25. Cincinnati, OH (83,700)
26. Pittsburgh, PA (81,600)
27. Puerto Rico (80,900)
28. Charlotte-Gastonia-Rock Hill, NC-SC (80,700)
29. Salt Lake City-Ogden-Provo, UT (80,400)
30. Cleveland, OH (77,600)
31. Kansas City, MO-KS (76,600)
32. Austin, TX (74,600)
33. Las Vegas, NV (73,100)
34. Milwaukee-Racine, WI (73,100)
35. Columbus, OH (67,800)
36. Indianapolis, IN (65,900)
37. Raleigh-Durham, NC (64,600)
38. Hartford-New Britain-Middletown, CT (58,800)
39. Nashville, TN (58,000)
40. Norfolk-Virginia Beach-Newport News, VA (53,600)
41. Buffalo-Niagara Falls, NY (52,700)
42. New Orleans, LA (50,400)
43. Jacksonville, FL (50,100)
44. West Palm Beach-Boca Raton, FL (48,300)
45. Oklahoma City, OK (44,500)
46. Richmond, VA (43,300)
47. Birmingham, AL (41,900)
48. Louisville, KY (41,800)
49. Nassau-Suffolk, NY (41,000)
50. Providence-Warwick-Pawtucket, RI (41,000)

Click here for a list of all Arbitron rated markets: http://216.134.214.83/articles/Copy%20of%202009%20MARKETS%20RANKED%20BY%20REVENUE.XLS

George
Media Services Group

If you're looking to acquire radio or TV stations, make sure we know about you!

I believe that 2010 will bring a number of new and returning broadcast station owners into the marketplace. Clearly some of the "roll-ups" of the past will be all or partially unrolled. As a station broker, it is critical for me to identify these new, potential buyers. If you fit that description, please get in touch. Let's talk about what you might want to buy and how you intend to pay for it.

A good way to begin is by completing a simple Buyer Profile form and faxing or emailing a copy to me. Click here for the form:

http://www.mediaservicesgroup.com/adminjax/ktmlpro/images/uploads/Small%20Market%20Radio%20Buyer%20Profile%20v2.pdf

You can email a pdf of the completed form to me at: George@MediaServicesGroup.com. My partners and I can then do a better job of identifying potential acquisition targets for you. Obviously, we keep all of the information confidential.

My fax is: (904) 285-5618

Let's do some business in 2010!

George
Media Services Group

Meet the Media Services Group partners: Bill and Mike Lytle

Continuing in the New Year to introduce you to my partners at Media Services Group, please meet Bill and Mike Lytle in Kansas City. Bill was with us at Chapman Associates and was one of the co-founders of MSG twenty years ago.

Bill is our "senior statesman." In his 50 plus years in both radio and television, Bill has been involved in announcing, sales and management. He served as the General Manager at KXTR-FM and the Sales Manager at both KMBZ-AM and KNBC-AM, all in Kansas City.

Bill received his B.A. degree from Northwestern University and performed his graduate studies at the University of Kansas, where he spent 15 years as a guest lecturer in Strategic Sales (and where he remains a die-hard sports fan). Bill is an experienced specialist in station management consulting and sales consulting.

Like father, like son. Bill's son Mike also works in our Kansas City office. Mike received his degree in Psychology from the University of Kansas in 1978. After spending a large portion of his professional career in the computer consulting industry, he moved into the broadcasting arena. Prior to station brokerage, he was involved in radio sales, broadcasting and production work in the Kansas City market.

George

Media Services Group

Broadcast engineering formulas and information

I tend to leave broadcast engineering to the engineers (and recommend that practice highly). But if your expertise runs a little deeper, you might be interested in the "Engineering Formulas & Information" section on Graham Brock's website:

http://www.grahambrock.com/eng_info.htm

Here is the list they provide:

• Ohms Law
• Simple Conversions
• T & H Pad Calculator
• Property Requirements for Standard Guyed Towers
• Property Requirements for an AM Ground System
• Ballast Formula for Non-Penetrating Roof Mounts
• Audio Terms used to descripe Audio Sound

Good luck with that!

George
Media Services Group

Will our listeners go GaGa for LaLa?

Apple's recently announced acquisition of LaLa didn't seem to prompt much radio industry discussion (though Mark Ramsey and Jerry Del Colliano both wrote about it). And frankly, I didn't think much about it until our Media Services Group online/new media guru Stephan Sloan explained to me the potential fallout on the radio operators. Turns out, it is a REALLY big deal to broadcasters. As Mark Ramsey put it, "And what do you call your favorite songs that you don't own but you have permanent access to? You call it 'radio,' folks. Except in radio's case it's the advertiser paying the 10 cents."

LaLa is a "pay" service where customers pay a dime to be able to permanently stream a song wherever and whenever they want. The company's growth was held back a a little known startup. Who wants their music library investment tied to a little known, probably under-funded start-up? But Apple is a different story. I'd trust them with my music and you probably would too.

Apple's iTunes arguably already controls the music business. They have the content. And with their myriad of cool appliances (iPhones, Nanos, iPods, Macs, etc.), they have the distribution platform. Plus, the technology provides a cache of the tunes . . . you can still listen when you're away from the Internet.

There is an appealing "anytime/anywhere" component to Apple/LaLa (sound familiar?). And this puts Apple into the streaming business, big time. Short term, that might bode well for our streaming businesses. Long term, different story.

Apple innovates. Consumers know it. And we (the broadcasters) have been a little short on innovation lately. It will be tough to "out music" Apple. They have a coolness cachet that we can't match, especially with their appliances. By the way, have you bought a radio lately? Drop by Target or WalMart and see what you think of your choices. But, I digress.

LaLa is developing an iPhone app. A subscription service is probably just around the corner. Pandora and XM/Sirius are likely the most immediate casualties, but we might be next.

So why didn't a broadcaster buy LaLa? Maybe because none of us have any cash at the moment. But even if we did, would we, as (mostly) a bunch of 50+ (mostly) guys, have had the vision?

How do we compete? We can't beat them with just music offerings on our interactive platforms. We have to provide more. We have to "go where they ain't." And I suspect that talented local personalities are part of that solution. Think "entertainment."

Those are my thoughts. What are yours? Your comments are encouraged (click "Comments" below).

George
Media Services Group