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FCC adopts Order on Reconsideration of Political File Order concerning complaints involving the political files of various broadcast televisions stations.

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What do listeners want during this time of coronavirus and stay-at-home mandates? According to several recent surveys, they want reliable information, entertaining hosts, a little less COVID-19 coverage and a healthy dose of local coverage.

Several recent surveys reveal what listeners want right now from AM/FM radio. These include a listener survey conducted by the Radio Advertising Bureau and Jacobs Media; the March 2020 Nielsen Portable People Meter Survey; and a Westwood One survey that polled more than 1,150 listeners between March 31 through April 8, 2020, about their listening habits.

The key takeaways: Listeners are still tuning in. They are flocking to their home stations. But many listeners aren’t aware of exactly how to tune into their AM/FM station on a secondary device like a smartphone or laptop computer. That presents stations with an opportunity to intensify education efforts around how to access AM/FM radio on different devices — particularly now that many of those listeners may be sheltering at home.

[Read: AM/FM Holds Fast in a Volatile Media Landscape]

One key finding as part of the Westwood One survey was that listeners may be a bit tired of round-the-clock coronavirus updates. By nearly a four to one margin, listeners say they prefer normal programming over coronavirus updates. Among regular listeners to a variety of AM/FM radio formats, between 72% and 78% said they preferred to hear normal programing. The survey revealed that listeners to urban format stations reported the strongest desire to hear programming focused on coronavirus.

The survey also found that listeners like what they like: They still want to hear their favorite music, and they still want to be entertained by funny, lively AM/FM radio personalities. The Westwood One survey found that music, personalities and information continue to draw listeners. When asked about why they listened to their favorite AM/FM radio station in the past seven days, 56% of heavy AM/FM radio listeners chose “they play my favorite music” as the main reason.

Radio also scored high marks when it came to providing localized programming. According to the Westwood One survey, AM/FM radio is closely linked with local news and information. A total of 27% of listeners surveyed said they consider AM/FM radio as the media most likely to provide information specific to their locale.

AM/FM radio was also considered to be a key outlet for reliable, enlightened information about current events. The RAB and Jacobs Media study found that for coronavirus information, consumers place their greatest trust in government medical organizations such as the Centers for Disease Control and the National Institutes of Health followed by their favorite AM/FM radio station. Social media ranked lowest on the trust scale — at 1% versus 54% for the CDC and 48% for a listener’s local radio station.

The survey also found that radio is still reaching a wide swath of commuters despite the shelter-in-place orders that exist around the nation. The Westwood One survey found that 60% of heavy AM/FM radio listeners who normally work outside the home are still commuting to work. Though might come as a surprise, 47% of those who normally work outside the home are still making the commute to work.

“AM/FM radio is the soundtrack of the American worker,” according to the Westwood One survey. “Those who are still working away from home are power AM/FM radio users. The more people listen, the more likely they are still working away from home.”

Radio stations should also be aware that a sizable number of those surveyed still do not know how to listen to AM/FM radio on certain devices like a smart speaker or desktop computer. The Westwood One survey found that one out of four smart speaker owners do not know how to listen to AM/FM radio stations on their device. The same is true for smartphone owners — one out of five of those individuals don’t know how to listen to AM/FM radio on their phones. The trend continues when it comes to laptop/desktop users as well as tablet owners: 17% of laptop/desktop owners and 26% of tablet owners do not know how to tune in to an AM/FM radio station on those devices.

There’s one listening format in particular that could use a dose of smart speaker education: country radio listeners. But those listeners are not alone. A large swath of listeners of oldies/classic hits, adult contemporary and rock formats also do not know how to listen to AM/FM radio stations on their smart speakers.

The Nielsen survey also revealed a happy trend: Even after states like California issued shelter at home orders in mid-March, listenership to AM/FM radio proved to be much stronger than some have predicted. According to Nielsen, when comparing March total audience deliveries to February, the survey found that American AM/FM radio maintained nearly all of its audience.

Specifically, AM/FM radio retained 96% of its reach and 90% of its average quarter-hour audience between February 27 and March 25, 2020. Cume and average quarter-hour audience retention was consistent across demographics, race and ethnicities, the survey said.

 

The post Amidst Stay-at-Home Orders, Radio Listenership Remains Strong appeared first on Radio World.

Radio World will launch a free four-part series of weekly webcasts exploring how major broadcasters are reinventing their workflows and air chains to support remote operation. The first will stream April 28.

“The world of radio has just changed dramatically,” said Editor in Chief Paul McLane. “Remote broadcasting isn’t just an option anymore. It’s a mission-critical part of the industry because of the global health crisis.”

[Read: 2019 NAB Show Product Report]

The series is called “Broadcasting From Home.” Each 45- to 60-minute webcast explores how prominent broadcasters moved fast to create new solutions in the face of the unprecedented threat to their normal business practices.

The first episode, available April 28, explores how Bonneville’s Sacramento cluster built its remote workflow. Featured are Jason Ornellas, director of engineering for Bonneville Sacramento, and Nate Mumford, director of sales engineering for sponsor RCS.

 

The post Radio World Launches “Broadcasting From Home” Web Series appeared first on Radio World.

Getty Images/Sean Gladwell

David Julian Gray is NPR’s senior product manager, content production. Before the coronavirus crisis hit, he was preparing to lead an NAB Show session about radio metadata including the value proposition for metadata through the content lifecycle 

Radio World: Let’s start by updating our understanding of what the term means in 2020. How do you define radio metadata in this context?

David Julian Gray: A classic definition of metadata is “everything but the thing itself,” meaning all the descriptive and technical information about an object. 

In terms of radio, and media production and distribution in general, “the thing itself” is a media file or a stream, often called the “essence.” 

All the information that helps identify and describe the essence is its metadata. The station ID, the origination producer, program, season, episode, story, by-line(s), voices, subject tagging, production data such as component files and production staff. Technical metadata includes container format (e.g. MPEG-4), encoding format (e.g. AAC), sample rate, bit rate, etc.

RW: The description for the session that didn’t happen called metadata “both the glue and lubrication of digital workflows and distribution.” Expand on that.

Gray: That something can be both “glue and lubrication” may seem counter-intuitive, but that’s how metadata enables and enhances media workflows, and why it’s essential for digital workflows. 

To take a step back: In ancient times “the thing itself” was a reel or cassette of tape, or sheets of copy; something material we could hold in hands. How do we get ahold of a digital essence? With metadata. The name of the file, its storage location, that’s “lubrication” — getting the system to flow. 

But to go from an idea to a program stream to the listener requires a multitude of systems, and that’s where metadata as glue becomes important. Assigning Guaranteed Unique Identifiers (GUID) and other standardized identifier conventions that can be shared across systems “glues” media objects across systems and contributors, ensures the correct media is used through its lifecycle, production, distribution, reuse. Standardized semantic tagging helps with discoverability, aids end users to find the content they want. 

RW: What role does metadata play at NPR?

Gray: At the most basic level, again, metadata answers the question: “Where’s my stuff?”  

As a modern media organization we present and collaborate with our members and other partners across a variety of platforms: broadcast, podcasts, smart speakers, mobile apps. To navigate this multiplatform landscape, NPR uses a variety of systems for production, distribution, archiving, and support functions like analytics, identity management, etc. 

Metadata is essential for integration and efficiency. Our most mature systems automate capture and generation of descriptive metadata to ease the burden on users; and we’re also starting to automate use of semantic tagging from controlled lists curated by our team of information scientists. Not every system is this developed, but as our systems evolve and mature, increasing use of standardized metadata from common, authoritative sources, improves that efficiency and enables new opportunities.  

[Related: Put Your Best Foot Forward in the Digital Dash] The Artemis archive system used by NPR Research Archive and Data Strategy shows auto-tagging of semantic metadata.

RW: Can you discuss another example of the kind of application that typifies metadata trends?

Gray: A key focus of the North American Broadcasters Association’s Future of Radio and Audio Symposium is hybrid radio. That is an umbrella term to refer to a range of technologies melding broadcast and internet. 

Last year NABA published “The Value Proposition of Radio in a Connected World,” which addressed how metadata is essential for success with hybrid radio, connected cars and apps on mobile devices. There are a variety of technologies, RDS, IBOC, RadioDNS, available for broadcasters to link additional data and images to broadcast streams. These can range from whatever they can put in RDS’ 128 characters all the way to entire interactive websites synchronized to the broadcast stream. Many folks are already familiar with artist name, title and album art available from the HD Radio Artist Experience. With emerging technologies like 5G and smart speakers moving to cars, media producers can link content across platforms — so a song or interesting story they hear in their car can be tagged to be finished on a mobile device later, or additional, related material can be tagged to be explored on another platform or device.

RW: What would you say is a key takeaway from this discussion?

Gray: Capture your metadata early and often, and keep it handy; it’s the glue that ties your supply chain together and the lubrication that moves your content through it. We talk a lot about the importance of metadata to enhance the listener experience and create opportunities for audience and revenue growth. That assumes metadata is available. Consider the entire lifecycle, from initial idea to audience discoverability to long-term preservation, and best practices in the care and feeding of enabling metadata.”

Comment on this or any story. Email radioworld@futurenet.com with “Letter to the Editor” in the subject field.

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BRUSSELS — Extraordinary situations require innovative solutions.

Since March 13 Belgian Dutch-language broadcaster VRT introduced safety measures in view of the Covid-19 crisis. In addition to the station’s radio editorial and technical staff, some 10 presenters plus a number of sidekicks have been working from home.

Daan Masset uses the On-Hertz LUMO virtual radio studio with a little help from his son. All photos courtesy of VRT.

All of the VRT’s radio channels are making use of remote technology to continue the program content flow, from alternative/rock Studio Brussel to the Klara classical channel, MNM, Radio 1 and Radio 2.

“Alongside its national programs, Radio 2 continues to work from the regional centers, informing and entertaining the Flemish audience,” said Kris Van Veeckhoven, of the VRT’s production facilities department.

Daan Masset uses the On-Hertz LUMO virtual radio studio.

“As part of the safety measures, we have a minimum occupancy in our offices. Our editorial staff continues its work work from home — in addition to the usual software package with Dalet, Pluxbox and MusiciMaster, we have provided every staffer with a Skype For Business account. This allows them to record interviews and store them directly in a Dalet folder.”

Whereas some presenters are using AETA’s Scoopfone via 4G or LAN, Radio 2 Limburg’s Daan Masset morning DJ hosts his program using LUMO, the virtual radio studio developed by On-Hertz.

“We may continue to use these applications in the future,” continued Van Veeckhoven. “That’s the advantage of this situation: You start to use new systems, simply because you have to. And we learn things rapidly. In the case of Radio 2, we see the growing popularity of the Radio 2 app and the use of Quicklink. This VoIP solution was meant to be introduced step by step, and is now used all over the VRT’s radio channels.

Guy De Pré produces his Sunday morning show from home.

Quicklink provides an easy link between studio and user/interviewee. We have been using the technology for Radio 2’s living room concerts, who were then were streamed over the Radio 2 app to some 50,000 users per day.”

The “teleworkers” are using Pulse Secure connectivity a secure link between radio staff and the VRT.

Radio 2 “Radio-inspector” Sven Pichal enjoys the view from his living room.

Radio 1 presenter Ayco,  and StuBru host Fien Germijns worked from their bedroom studios, KlaRa host Bart Stouten produced his program in his living room, like Daan Masset. “You actually smell and feel when you make radio at home. Another advantage is that I don’t have to get up at 04:30 to catch a train,” added Stouten, who uses the AETA Scoopfone.

Guy de Pré, host of Radio 2’s iconic “De Préhistorie” Sunday morning radio show, produces his program in his home studio. “The program isn’t broadcast live, although this would be possible,” De Pré explained.

KlaRa presenter Bart Stouten says “You can smell and feel when you make radio at home.”

“Instead, I puzzle all elements like audio fragments, jingles, music and presentations together. It’s quite time consuming as it takes about four days work to put together a two-hour radio show.” The final version is routed to VRT’s DaletPlus system and then broadcast on Radio 2.

Radio 2 studios are continuously disinfected for health reasons.

Christophe Delplace, head of VRT’s technical radio support division, said that in the case of an emergency, the regional broadcast hubs are able to serve as broadcast centers. “When the emergency plan is activated, the Radiohuizen (radio houses) in Ghent and Louvain serve our five

The post VRT Gets Creative With Remotes appeared first on Radio World.

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Ben Barber is president/CEO of Inovonics, based in Felton, Calif. This is one in a series of interviews about how industry people are managing during the health crisis.

Radio World: Well Ben, normally we’d be chatting in the aisles at the NAB Show today. What is the world like at Inovonics right now — are you open for business?
Ben Barber: Very unique. No one alive today has seen a worldwide pandemic like the one we are currently going through, so everything is different.

We are open for business. Inovonics does not interact with the public in any way so there is no fear of infecting the community that we live in. As long as UPS, FedEx and USPS are still picking up and delivering, we are able to ship product.

[Read: Exploring the Inovonics 674 AM Monitor Receiver]

RW: You sent an email Monday to your customer list. What was the main point?
Barber: We had three reasons for sending it.

One, to let our industry know that we are still in business, both shipping gear and supporting our customers who already have our products. Two, to let our industry know that Inovonics has not abandoned our employees. We sent everyone home five weeks ago as a safety measure. Those that can work from home are doing so, and those that can’t work from home, Inovonics continues to makes sure their financial needs are met.

Three, to publicly show our appreciation for radio engineers who are keeping their stations on the air, and for those in the healthcare industry as well as stores that are continuing to serve the population. You have our thanks!

RW: How has your manufacturing process been affected?
Barber: Our production has stopped. Years ago we made the decision to build for stock and not for orders. This means we have all of our products on the shelf, rather than scrambling to build something when we get the order. Under normal circumstances this makes work life less stressful and we can plan out our builds. This has worked well over the years, though there will be a push to ramp things back up quickly on products that may have gotten low during this shutdown.

RW: Are you as a supplier affected by any problems in access to supplies of components?
Barber: Not currently. Again since we build for stock, we buy our components in advance so we have them in inventory when we’re ready to build. I can’t think of anything we are behind on or waiting for in order to put product on the shelf other than the green light to once again have our team in the office building gear.

RW: Are Inovonics products being used in different ways than before, as a result of the pandemic?
Barber: I would say no. Inovonics’ products are ones “that go with transmitters,” so unless stations are expanding their signals (which I don’t think many currently are) then our equipment would not necessarily see an uptick in sales or applications. The segment of our industry who are making microphones, headphones and audio codecs are probably a different story!

RW: What else should readers know?
Barber: I want your readers to know that we are grateful to them for all the work they do, every day, not just during a pandemic. I have not talked to one engineer who is sitting on his hands doing nothing. Instead, most are working harder than ever to not only keep their signal on the air but to keep the air talent connected to the stations so they have meaningful content. To them I want to say, thank you, job well done! We are going to make it through this time together.

 

The post At Inovonics, Shipments Continue appeared first on Radio World.

It was clear from the beginning that Congress had not found enough money to prevent small businesses — defined as those with fewer than 500 employees — from feeling the pain inflicted by the COVID-19 pandemic in the United States. As legislators continue to negotiate a second round of funding, broadcasters of all sizes are speaking out, hoping to get their portion of the loans in order to stave off further financial disaster.

Hawaii Media Owner George Hochman feels strongly that Congress should authorize more funding for the Small Business Administration’s Paycheck Protection Program under the Coronavirus Aid, Relief and Economic Security Act. 

Hochman is dedicating air time to encouraging listeners to express their own support for the PPP, running a spot 18 times per day from 6 a.m. to midnight on all 15 of his stations in the Hawaiian islands.

Listen to Hochman’s spot now using the media player below or download it here.

http://www.radioworld.com/wp-content/uploads/2020/04/Paycheck-Protection-Program.wav

 

Hochman encourages other small radio stations to participate in this effort.

“Owners/managers, get on the air, use your airwaves to get your listeners off the fence and support this program. Now is the time to use the power of our voices and let the public know that they need to call their representatives and tell them to refund” the SBA’s Paycheck Protection Program “and do it now, so their employees can get back to work,” Hochman wrote in an email to Radio World.

Meanwhile, the National Association of Broadcasters is supporting a bipartisan letter from U.S. Senators Maria Cantwell (D-Wash.), John Kennedy (R-La.), Amy Klobuchar (D-Minn.), and John Boozman (R-Ark.) that is urging their colleagues to open up future SBA loans to broadcasters and news publishers with more than 500 employees. 

The original PPP legislation excluded any businesses of this size or larger from applying, but NAB and the senators say that local news outlets are being hit especially hard by the pandemic, despite playing a critical role in informing listeners, viewers and readers. 

The senators explain their rationale for seeking the exception in the letter: “Even though these news outlets may be owned by larger groups, they operate independently.” Therefore, they write, “Waiving SBA’s affiliation rules for local newspapers and broadcasters and ensuring that financial assistance flows to the local affiliate, not the parent company, would allow these small, local operations to be eligible for much-needed financial relief.” This change would allow broadcasters the same carve-outs created for the hospitality and restaurant industries, which the Washington Post reports have already drawn significant criticism.

A NAB press release quoted NAB President Gordon Smith as saying, “America’s broadcasters are providing trusted and credible lifesaving coverage to keep citizens safe during the COVID-19 pandemic, yet local stations are suffering advertising losses of historic proportion that will undermine this critically important service. We urge Congressional leaders to support this proposal to provide immediate SBA loan eligibility to more local radio and TV stations,” 

A similar effort is being led by U.S. House Antitrust Subcommittee Chairman David N. Cicilline (D, RI) and Representative Jim Sensenbrenner (R, WI) in the other Congressional chamber.It is important to note that 97% of the original program’s $349 billion was allocated in less than two weeks, according to the Financial Times. However, the amount of funding floated for the next round is likely to be significantly smaller — closer to $310 billion, according to CNBC, despite increased demand as the effects of COVID-19 hit more sectors.

The post Broadcasters Small and Large Pursue PPP Loans appeared first on Radio World.

The deadline to nominate in the Special Edition “Best of Show” Awards has been extended to May 1.

“We’ve pushed the deadline by two weeks in light of the just-announced timetable for a virtual version of the NAB Show, to give all interested companies the chance to participate,” said Paul McLane, managing director of content for B2B Media Technology brands.

“The Best of Show program has always been conducted during the NAB Show, and when the physical show was cancelled we established the Special Edition version to help fill that gap. Now, with the timetable set for NAB Show Express, it makes sense for us to sync to its timetable. We will announce the winners during that week in mid-May.”

The Special Edition Best of Show Awards program is an initiative of our parent company Future plc to showcase new, innovative products introduced this spring for specialized technology users.

Companies can nominate products for awards presented by the following publications and websites: TV Technology, TVBEurope, Digital Video, Government Video, Video Edge, Radio World, Pro Sound News, Sound & Video Contractor, B+C, and Next TV.

Companies seeking guidance about which brand to enter for can find guidance here.

Winners will be selected by panels of professional users, technical experts and editors based on descriptions provided by companies via the official nomination form. Companies pay a fee to enter; not all products are selected as winners. All nominees and winners will be featured in a Program Guide sent to readers this spring.

“Our thanks to the many companies that are participating in the 2020 awards despite the disruption caused by the pandemic,” McLane said. “Our media technology marketplace is a vibrant place, and there’s clearly plenty of innovation and hard work going on, judging by the nominations to date. Meantime we’re also all looking forward to being back in Las Vegas next year for a more traditional spring show.”

For more information about the Special Edition Best of Show Awards, visit the official website.

 

The post Deadline Is Extended for “Best of Show” Special Edition appeared first on Radio World.

The long-standing feud over newspaper/broadcast cross-ownership could be headed to the Supreme Court if the FCC, NAB and a group of media companies have their way.

On April 17, the Federal Communications Commission petitioned the Supreme Court to review the latest decision made by the Third Circuit Court of Appeals, which overturned many of the commission’s media ownership deregulation decisions made in 2017. At that time the court said the agency “did not adequately consider the effect its sweeping rule changes will have on ownership of broadcast media by women and racial minorities.” Soon after, the National Association of Broadcasters and the FCC joined forces to seek a full-court hearing of the court’s ruling. That request was denied.

[Read: FCC Challenges Court’s Broadcast Dereg Smackdown]

The FCC responded in its April 17 filing that reforms of FCC media ownership rules are not only long overdue but are part of a larger mandate by Congress that the FCC revise or repeal media ownership rules that are no longer necessary.

“It’s unfortunate that the same divided panel of the Third Circuit yet again has blocked the commission’s efforts to modernize our media ownership rules,” said FCC Chairman Ajit Pai, making this decision the latest “obstruction of commission action and congressional intent” over the last 17 years.

The court’s most recent decision continues to freeze in place decades-old ownership restrictions, Pai said, which have outlived their competitive usefulness in the digital age.

“Absent further action by the Supreme Court, broadcasters will continue to be saddled with outdated regulations,” he said. “The Supreme Court’s intervention is necessary to restore the commission’s discretion to regulate in the public interest and modernize media ownership regulation for the digital age.”

Commissioner Michael O’Rielly concurred. “The commission’s efforts for well over a decade to modernize media ownership regulations have been stymied at every turn,” O’Rielly said in a statement. “It’s time to settle this issue and bring our regulations into the twenty-first century.”

The group of media companies that also petitioned the Supreme Court over the Third Circuit’s findings include Bonneville, Connoisseur Media, Fox, News Corp, the News Media Alliance, Nexstar, The Scranton Times and Sinclair Broadcast Group.

 

The post Supreme Court Asked to Weigh In on Media Deregulation Decision appeared first on Radio World.

Chairman/CEO Bob Pittman of iHeartMedia is shown at an event in 2017. According to news reports, Pittman won’t take a salary for the rest of this year due to the national health crisis.
Credit: Getty Images/Gerardo Mora/Stringer

The massive technical recalibration of iHeartMedia earlier this year — when it shed over 1,000 jobs and moved to a more centralized content distribution system — was viewed by some industry observers as one possible blueprint of commercial radio’s future. 

And that was before coronavirus hit the country hard.

This article is about the long-term implications of that reorganization, though such discussions now must carry additional caveats about the unknown impact of the health crisis, over coming weeks as well as years to come.

 It’s certain that similarly sized radio broadcast companies were already watching closely to see if iHeartMedia’s cloud-based top-down programming structure would succeed. Now iHeart and every other company is also struggling to adapt to the public health dangers and the economic downturn.

iHeartMedia has said that its new “AI-enabled Centers of Excellence” or network operation centers would allow the company to pivot and embrace the capabilities of artificial intelligence. This doesn’t surprise radio experts since it is in line with corporate America’s love of automation. The company didn’t describe the exact role of the hubs in press releases describing the changes. 

The technical modernization allowed the company to eliminate many jobs on the programming side; and in March it was still not clear how many technical and engineering positions were affected. It is possible iHeartMedia has added some podcast producers and data scientists to fill out new digital teams, industry observers say. Those comments preceded fresh news at the end of March that the company would institute furloughs due to the coronavirus and that company head Bob Pittman would not take a salary for the rest of the year.

AI-DRIVEN

iHeartMedia has more than 850 stations and also owns online music service iHeartRadio. It now has a Markets Group organizational structure, which allows for the grouping of clusters of stations that are geographically close and culturally similar, according to a press release. 

Company officials have declined to speak about specifics, but it appears at least part of the technical modernization is based on a music-mixing AI system offered by Super Hi-Fi, according to Radio World’s previous reporting. The system allows for music to be segued with voice-over capabilities along with other algorithmic options.

Getty Images/ipopba

“Technology-powered” is how iHeartMedia now characterizes itself, according to a variety of press releases. It plans to use its “unique scale” to take advantage of its position in the audio marketplace. 

“The company has made significant technology investments to change everything from how it sells advertising to how it utilizes data and builds new businesses like its digital platform, podcast platform and robust data platform,” it stated in early 2020.    

Since the company has been slim on details, Radio World asked several veteran technical observers for their views about what iHeart’s new technical strategy might look like. Though most of them spoke prior to or early on during the disruptions of mid-March, their focus was on longer term anyway.

The most obvious result is that iHeartMedia would likely have little live programming except in its larger markets, they said, looking ahead. AI-enabled Centers of Excellence will program smaller markets. Some markets could be left with only a sales staff and no building. 

“The technical consolidation of programming origination on a massive scale, never before seen, might be a possibility,” said one technical observer. “I would further guess that in many smaller and medium-sized markets of iHeartMedia, possibly also in the larger ones that only a sales force would possibly remain.” 

The radio industry’s subsequent rush to enable wide-scale telework now would seem likely only to accelerate any such changes.

iHeartMedia, which emerged from Chapter 11 bankruptcy in 2019, revealed little new information about its plans during an earnings call for investors in late February. There was a lot of talk about “de-leveraging balance sheets” and “improving capital structure,” but iHeartMedia executives again gave scant insight into that transformative shift in business operations and jobs cuts.  

According to a 10-K filing with the U.S. Securities and Exchange Commission that predated coronavirus, it still had 11,400 employees. The modernization initiatives were expected to deliver $100 million in cost savings by the middle of 2021, according to a financial release.

iHeartMedia said then that it was anticipating real estate expenses to jump this year as it possibly consolidates some broadcast facilities and downsizes others. 

But by the end of March the company had withdrawn its full-year fiscal guidance. “iHeartMedia had a strong January and February before the effects of COVID-19 began to unfold into a global pandemic in early March,” it said then. “The challenges that COVID-19 has created for advertisers and consumers has impacted iHeart’s revenue in recent weeks, creating a less clear business outlook in the near term.”

“COOKIE-CUTTER”

Longtime radio observer and iHeartMedia critic Jerry Colliano reported early last month that the broadcaster was at least considering building out “cookie-cutter office and studios” that would be very similar in each market.

“While iHeart tries to negotiate out of leases and/or sell property it owns, according to those familiar with developments, the intention is to create a new build in every city. Presumably that even includes major markets,” Colliano wrote then.

iHeartMedia’s new network operation centers likely consist of management, program origination, commercial and imaging production as well as log preparation and billing, said another industry observer. 

“AI in its most basic form has been part and parcel to current program automation systems, music scheduling and log preparation for some time. There will have to be significant expansion and integration to enable (iHeartMedia) to use over a large number of stations,” this expert said.

A sophisticated distribution network would also be essential to the delivery of program content and technical functions, this person said. 

Technical monitoring could also be centralized with “virtualization of all studio functions” clearing the way to have a functioning radio station with no studios, according to another technical expert. “The FCC’s deletion of the main studio rule makes such operation possible and entirely legal now,” he said.      

Another industry observer said that over time, he suspects there will be many fewer iHeartMedia stations managers and programmers “artfully shaping compelling content” to appeal to a local community. 

“They are likely to be replaced with AI distilling local social media to sound as though the station is connected to the community,” he said.

Even local sales teams could be eliminated in some cases and replaced with a more regionalized approach to selling, according to the expert. 

There are examples of such a “move to the cloud” with broadcast groups operating stations remotely, he said.

“TV has embraced AI more so, but EMF [Educational Media Foundation] feeds the same programming to all of their local stations and centralizes technical monitoring at their master control facility near Sacramento, Calif. Obviously, iHeart would take this a step farther and use a common facility to produce most if not all programming for multiple local facilities,” the technical expert said. “The result will probably be regional sanitized content.”

DISTANCE NOT AN “ISSUE”

iHeartMedia’s turn toward a more centralized system of program delivery does raise the question of whether the company can improve its bottom line without jeopardizing local ratings in each market, observers said. In fact, financial analysts on February’s earnings call raised the issue of localism and whether the broadcaster’s ratings could be hurt following the earlier staff cuts.

“We don’t think the quality will go down, but rather it will go up. We want the best programming in each market. Distance is no longer an issue in our business, and our ability to project the best talent we have to any location any time is a substantial advantage for us,” said Bob Pittman, chairman and CEO of iHeartMedia.

Pittman mentioned personalities Ryan Seacrest and Bobby Bones and their national syndicated morning shows during the earnings call and remarked about the quality they bring to any radio station.

“We will continue to find those opportunities where we think we can improve quality or create leverage out of great talent,” Pittman said. “To the listeners it is local and we will continue to serve our local communities.”

In addition, Pittman said building music logs and selecting music for each individual iHeartMedia radio station is a lot of work, which can be made easier by using AI to streamline operations. 

“Now that we have so much data, the problem is absorbing all that data. By using AI to help us with that, I think it improves the music, and it will free up iHeartMedia programmers to do other things that make radio great, like imaging and promotions. And working with the talent, no matter where the talent is located.”  

By the end of March, the business world had changed. But there was no sign of a change in the company’s long-term plan described above. Rich Bressler, the company’s president, COO and CFO, said then, “We fully appreciate the unprecedented challenges posed by this crisis, however, we remain confident in our business, our employees and our strategy. With our experienced management team and our leadership position in the audio sector, we are committed to navigating this period while serving our audiences and other constituents.”

The post How Will iHeart’s “Centers of Excellence” Strategy Play Out? appeared first on Radio World.