Radio
Page: 19
Leading into next year’s Country Radio Seminar, the nominees have been revealed for the New Faces of Country Music Show, which will be held March 15 at Omni Hotel Nashville, capping off the annual radio-focused seminar, which is slated for March 13-15, 2023.
Traditionally there have been five performance slots for the showcase, which provides a platform for rising artists to perform in front of country radio tastemakers. This year’s nominees are Priscilla Block, Callista Clark, Jackson Dean, Ernest, Jelly Roll, Frank Ray, Elvie Shane and Nate Smith.
The upcoming New Faces of Country Music Show will be held March 15 at Omni Hotel Nashville during CRS 2023. Voting for the final round of performers will open Monday, Nov. 28, and will be open through Friday, Dec. 2, at countryradioseminar.com.
Each year, five artists who have earned significant success at country radio during the qualification period (running Nov. 1 through Oct. 31 preceding the show) are selected to perform, based upon industry voting. Eligible voters must be full-time employees primarily involved with programming, promotion and distribution of country music, in the following company categories: broadcast radio, satellite radio, television outlets and digital service providers (persons with vested interests in individual artists or musical works such as labels, managers, agents, and publishers, are excluded from voting).
The first New Faces of Country Music show was held in 1970 and featured Jack Barlow, Jamie Kaye, Karen Kelly, Wayne Kemp, Lynda K. Lance, LaWanda Lindsey, Dee Mullins and Norro Wilson. Since then, a who’s who of country artists have performed on the show early in their careers, including Lefty Frizzell, Eddie Rabbitt, Vern Gosdin and Gene Watson. Reba McEntire, Alabama and Sylvia were among those on the 1980 lineup, while George Strait, Rodney Crowell and Ricky Skaggs performed at the event in 1982. Randy Travis and Marty Stuart were among the 1986 lineup, while Keith Whitley, Dwight Yoakam, Holly Dunn and Lyle Lovett were on the bill a year later.
Tim McGraw met his wife, fellow country singer Faith Hill during the 1994 New Faces of Country Music Show (that year’s lineup also included Toby Keith, Lari White, Clay Walker and John Berry). Keith Urban and Brad Paisley shared the 2000 lineup, Miranda Lambert and Eric Church were on the 2007 bill, and Taylor Swift and Luke Bryan were on the same bill in 2008.
U.S. radio companies aren’t exactly struggling through post-pandemic recoveries, but economic conditions are preventing a stronger comeback.
The earnings releases of four U.S.-based, publicly traded radio companies – iHeartMedia, Cumulus Media, Audacy and Townsquare Media – reveal an industry in flux. While the music streaming and satellite radio businesses enjoy some security from subscription-based models that can withstand economic upheaval, the radio industry depends on advertising dollars that can fluctuate greatly. Ongoing economic problems caused some advertisers to pull back in the third quarter and cloud radio’s future.
According to Cumulus Media CEO Mary Berner, “starting in late Q2, national advertisers reduced marketing to mitigate the headwinds they face from inflationary pressures, persistent supply chain issues, finance, market turmoil and overall recession risks,” she explained during the company’s Oct. 28 earnings call. Collectively, the macroeconomic pressures resulted in a decline in broadcast revenues of roughly 5% in the third quarter, said Berner, and was the “main driver” in the company’s 2% decline in total revenue to $233.5 million.
iHeartMedia CEO Bob Pittman lamented during the company’s Nov. 3 earnings call that the business “doesn’t have the robustness that we expected.” Still, iHeartMedia, the country’s largest radio company, landed at the high end of its revenue guidance with total revenue of $989 million, up 7% from the prior-year period. Revenue of its multi-platform group — which includes broadcast radio — was $659.0 million, up 0.1% year-over-year, with the help of political advertising. “This will be the best non-presidential political year that we’ve had,” said president, COO and CFO Rich Bressler.
Townsquare Media’s third-quarter revenue of $120.6 million came in at the low end of its guidance range — $120 million to $127 million — and its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of $30.9 million hit the midpoint of its guidance range of $30 million to $32 million.
Audacy was hurt by advertisers’ pullback in the third quarter. Revenue dropped 3.8% to $317 million, and radio revenues dropped 6%, due to “a substantial deterioration of market conditions,” president and CEO David Field said on the company’s Tuesday (Nov. 8) earnings call. “This has obviously taken a toll on our EBITDA and [debt] leverage and has raised concerns.”
Digital remains radio companies’ growth engines. S&P Global Market Intelligence forecasts radio digital revenues to climb 4.8% next year. iHeartMedia’s digital audio segment, which includes its podcasting business, grew 23.4% year-over-year to $254 million in the third quarter. That accounted for 26% of the company’s consolidated revenue, up from 12% in the first quarter of 2020. Podcasting revenue alone accounted for $91.3 million, up 42.1% year-over-year. At Cumulus, digital revenue growth of 20% far outstripped overall revenue growth of 5% in the third quarter. Within its digital segment, podcasting revenue grew 27% year-over-year. Townsquare Media’s digital revenue increased 17%, accounting for half of total revenues, and helped the company set records for third-quarter net revenue and adjusted EBITDA.
Radio companies have taken measures to weather financial uncertainty that will extend into 2023. Cost-cutting remains popular after companies sharply reduced expenses in 2020. IHeartMedia saved about $250 million from 2020 to 2021 — a reduction of historical annualized cost base of about 10% — and targeted an additional $75 million of annual savings this year, said Bressler. Cumulus is “on track to be more than $75 million below the 2019 baseline” of fixed costs, said Berner. Audacy added to its cash reserves by selling real estate worth $56 million in the third quarter and has plans for additional sales.
S&P Global Market Intelligence expects radio local spot advertising to improve by 3% and national ad revenues to grow 1.5%, both down significantly from 2022 growth levels. Solomon Partners estimates 0.8% audio ad spending growth in 2023 based on major advertising agency forecasts from Dentsu, GroupM, Zenith and Magna.
Whatever happens in 2023, radio companies are better prepared than they were for the pandemic in 2020. That downturn “was probably the swiftest and worst downturn I’ve ever lived through,” said iHeartMedia’s Pittman. “And even in that year we had positive free cash flow.”
Still, economic pressures have weighed heavily on radio companies’ share prices. Barrington lowered its price target for iHeartMedia shares from $18 to $13 in an investor note issued Monday. iHeartMedia shares fell 15.1% over Tuesday and Wednesday, to $6.61. Year to date, iHeartMedia shares are down 68.6%.
Shares of Cumulus Media rose 8.9% following its third-quarter earnings release on Oct. 28 — although the stock gave back those gains and more over the next week and a half. As of Wednesday, Cumulus shares are down a relatively mild 38.7% year-to-date. Investors pushed up the share price 39.9% on April 14 on news of a takeover bid by a consortium led by radio veteran Jeff Warshaw. Cumulus rejected the offer and instead offered shareholders a $50 million stock repurchase program. In June, Cumulus spent $25 million to purchase 1.7 million shares, or 8.7% of outstanding Class A shares.
Audacy shares fell 6.3% to $0.298 on Wednesday following the company’s third-quarter earnings release, bringing the year-to-date decline to 88.3%. Audacy shares were trading at $0.59 per share on Aug. 1 when the company was notified by the New York Stock Exchange that it was not in compliance with a listing standard that requires a minimum closing price of $1 over 30 consecutive trading days.
Legendary lawyer Don Passman has likened the music biz and its transformation in the digital era to a Rubik’s Cube. It shifts so much that there have now been 10 editions of his industry bible, “All You Need to Know About the Music Business.”
The industry’s challenges, however, did not deter the lay economists at NPR’s Planet Money podcast after they heard an old song called “Inflation.” The funky, moody track with lyrics like “Inflation is in our nation… I can see a depression coming on” was written in 1975 when inflation was at levels slightly higher than today. A cassette tape of the song by Earnest Jackson‘s Sugar Daddy and the Gumbo Roux showed up in Planet Money hosts Sarah Gonzalez and Erika Beras‘ mailbox one day, and they “got a little obsessed” — so obsessed they embarked on an 8-month effort to start a record label and publish the song.
Gonzales and Beras discuss the challenges of creating a label, striking deals with different stakeholders and promoting the never-before-published song over two episodes of the podcast, this week.
Describing their reporting to Billboard, Gonzalez and Beras say that in the course of creating a contract that split revenue between the label and musicians, they came up with what Passman describes as “possibly the worst record deal I’ve ever seen, from a record company point of view.” (Passman was interviewed for the podcast.)
“We are not doing this to make money. We are really doing this because we want to explain the music industry,” Gonzalez says. “It’s just really difficult to make money in this industry, which we all knew. But it’s not until you get into it that you really understand it.”
If a typical deal gives 80% of revenues generated by a song to the record label and 20% to the musicians, Planet Money proposed giving 80% to the musician, namely singer and songwriter Earnest Jackson, and keeping 20% for their label. The hosts felt that was a fair deal given that even if the song was streamed 1 million times, they could only expect to collect around $4,000 total.
After much back-and-forth with Jackson’s old bandmates, which included Journey bassist and American Idol host Randy Jackson and others who went on to successful music careers, they landed on a deal that gives about 67% to Earnest Jackson, 15% to the bandmates and the remainder to the label and others.
Any revenue generated from the song that goes to NPR will go back into producing more shows, Gonzalez and Beras say. They say they do not plan to recoup expenses from publishing and promoting the song, which included at least $10,000 in legal fees.
Once they uploaded the track to TuneCore and started promoting their first, possibly only hit, they learned that “Inflation” had to be streamed 5,000 times in the first week for the label to be able to pay for promotion. Fortunately, the song crested 65,000 plays in its first few days, but it still has some way to go to reach 1 million plays.
“No one ever makes money on streaming,” Beras says, when asked what she learned from her reporting. “I feel like I’ve repeated that a thousand times and never understood what I said.”
“We put all of our effort behind this song and behind Earnest Jackson and are going all in,” Beras says.
Next, they plan to make it a ringtone — which earns a bit more than streams — and they are trying to land it in a Netflix documentary.
Since launching their label last week, Planet Money has received two more submissions from musicians, according to Beras. For now, they are focused on “Inflation” and have no aspirations to “become music moguls,” Beras jokes.
SiriusXM’s profits fell in the third quarter from a year ago on higher expenses and lower profits from Pandora, but overal revenues rose thanks to SiriusXM subscriber growth, the satellite radio company reported on Tuesday.
Sirius XM Holdings Inc. reported net income fell to $247 million, or earnings per diluted share of $0.06, in the quarter ending Sept. 30, 2022, from $343 million, or $0.08, during the third quarter last year. In its Pandora and off-platform segment, gross profits fell 12% on lower subscriber revenue and higher costs from investments in podcast content, the company said in its earnings release.
Revenues rose 3.6% to $2.28 billion from $2.198 billion in the third quarter 2021, while adjusted EBITDA was $720 million for the quarter, roughly flat year-over-year. The company reiterated that it expects full year revenues of $9 billion, with an adjusted EBIDTA of $2.8 billion.
Total operating expenses rose by more than 15% to $1.813 billion in the quarter on increased subscriber acquisition costs, marketing, sales and general administrative expenses.
Subscriber acquisition costs rose 21% to $86 million due to higher equipment installations by automakers, executives said. That and along with investments and other expenses caused the company’s free cash flow to fall 44% from a year ago to $329 million.
In addition, SiriusXM announced its board voted to raise the quarterly cash dividend by 10%, which it will pay out later this month. The company returned $262 million in capital to stockholders in the quarter, chief financial officer Sean Sullivan said in a statement.
“We continue to drive growth and focus on a disciplined approach to cost management across our organization,” chief executive Jennifer Witz said on a call with analysts. “While near-term objectives remain top of mind, we are focused on the strategy and investments that will drive long-term value for our stockholders.”
SiriusXM third quarter financial highlights:
SiriusXM reported 32.2 million self-pay subscribers, reflecting an increase of 187,000.The total number of subscribers rose to 34.2 million, including a decline of number of 49,000 paid promotional subscribers. The company’s self-pay monthly churn rate remained at record-low levels at 1.5%.Revenue for SiriusXM rose 5% to $1.7 billion compared to last year on self-pay subscriber growth and a 6%-increase in advertising on the SiriusXM platform.Total cost of services at SiriusXM rose 3% to $665 million for the quarter from the third quarter 2021.
Pandora and Off-Platform third quarter financial highlights:
Gross profit for Pandora and Off-Platform segment fell 12% to $173 million for the third quarter 2022, from $197 million a year ago.Pandora monthly active users fell 7% to 48.8 million compared to 52.6 million in the third quarter a year ago, and subscriber revenue declined by 2%.Pandora Plus and Pandora Premium self-pay subscribersheld flat at 6.3 million.Advertising revenue edged 1% higher to $407 million, as total ad-supported listener hours fell to 2.75 billion in the quarter compared to 2.89 billion a year ago. Podcasting and off-platform business revenues rose 37% to $123 million.The total cost of services increased by 7% driven primarily by investments in podcast content.
Eric Church is set to launch his own exclusive SiriusXM music channel Eric Church Outsiders Radio, beginning Friday, Nov. 4, on the SXM app. Additionally, the channel will be available to subscribers nationwide in the car on SiriusXM channel 61 from Nov. 4-6.
Explore
Explore
See latest videos, charts and news
See latest videos, charts and news
The four-time CMA Award-winning singer/songwriter’s new music channel will showcase music from Church’s catalog, from his 2006 debut album Sinners Like Me, through his latest project, the three-part Heart & Soul. Curated by Church himself, the channel will also take listeners on a journey through his musical inspirations with music from artists including George Strait, Bob Seger, Ashley McBryde, Ray Wylie Hubbard, Waylon Jennings, Aretha Franklin, Bruce Springsteen and Brandi Carlile.
“I’ve always been fascinated by the artists that I have loved in my life, who are they fans of? What and who made them who they are? What are they discovering and what are they inspired by?” Church tells Billboard via email. “The inspiration and discovery part, I really hope this station will lean into both spirit and substance.”
The channel is the latest evolution in a longstanding relationship between SiriusXM and Church. In February 2015, Church launched the monthly show Outsiders Radio on SiriusXM’s The Highway.
“I’ve learned that there are so many different musical perspectives and performances that fall under the same theme,” Church says of the lessons he brings from his SiriusXM The Highway show. “We could have a themed show scripted, but through the lens of so many diverse multiple genres and artists. It’ll be fun to show how an 80-year-old blues song inspires a jazz artist, that inspires a rockabilly guitar player, who inspires a country artist. That interests me!”
Eric Church Outsiders Radio’s original programming will include “Best of Outsiders Radio,” archival episodes from Church’s monthly Outsiders Radio on The Highway, as well as “LIVE, From the Pit,” a monthly full concert performance from a past Church show (the featured show for November will be from the Green Bay, Wisc., stop of his 2022 Gather Again Tour). “A Song to Sing” will be a one-hour monthly specialty program hosted by a songwriter who has been involved in writing some of Church’s hit songs, beginning with “Springsteen” co-writer Jeff Hyde. Another monthly show, “Insiders Hours,” will feature guest DJs, launching with Lainey Wilson, the most-nominated artist leading into the upcoming CMA Awards and a cast member of season 5 of the hit show Yellowstone.
Church also noted to Billboard a few of his favorite SiriusXM channels, including Underground Garage.
“Little Steven is so good at broadcasting things that are so good and obscure. I’ve discovered some great sh– on there,” Church says. “I also really enjoy Outlaw Country for the same reason.”
While dedicating time to projects like these offers Church’s music devotees a range of music to explore, Church says it also feeds his own creativity.
“It inspires better albums, songs, performances,” he says. “Taking the time to dive in is well worth it.”
Over the past two weeks, Ye — the artist and and entrepreneur formally known as Kanye West — has worn a “White Lives Matter” T-shirt, spread antisemitic conspiracy theories on a popular Revolt podcast and falsely blamed George Floyd’s death on fentanyl. That could cost him some fashion and branding deals – Adidas has said its partnership with the rapper is “under review.” So far, though, in the United States his music remains just as popular as it was on audio and video streaming services, although on terrestrial radio his daily spins and average daily audience were down about 21% since Meta and Twitter restricted his social accounts, according to Luminate.
West’s streaming numbers haven’t changed much over the last few weeks. For the seven days after Oct. 3, when West wore a “White Lives Matter” shirt at the Paris Fashion Week show for his Yeezy line, his catalog had an average daily streaming tally of 13.1 million in the U.S., according to Luminate, compared to 13 million in the seven days before that. A change like that — less than 1% — would seem to reflect the normal fluctuations of the streaming business.
West’s daily streaming numbers also stayed steady before and after the antisemitic tweets starting on Oct. 7, which resulted in restrictions being placed on his Instagram and Twitter accounts. In the week following the restrictions placed on West’s social accounts, his average daily on-demand audio and video streams in the U.S. was 13.1 million, just 3.5% lower than the previous week — a negligible difference that’s also best explained by normal fluctuations in streaming activity.
West’s radio airplay is a different story, however. There was a noticeable decline in the artist’s radio spins and audience size following Twitter and Meta’s decisions on Oct. 9 to restrict access to his social media accounts, leaving West’s controversial posts but preventing him from publishing additional posts or comments. West’s daily spins declined 21.1%, from 325 in the eight days preceding his social account restrictions to 258 in the eight days following them; and his average daily radio audience fell 21.4%. Representatives for iHeartMedia and Cumulus Media, two of the country’s largest radio companies, did not comment.
Last week’s radio audience was West’s lowest in more than two years — lower than levels seen before the radio promotion push for his 2021 album Donda, which sent the songs “Hurricane” (No. 6) and “Off the Grid” (No. 11) onto the Billboard Hot 100 chart — and lower than anything since a brief spike in airplay in June around the release of the third single from Donda 2, “True Love.”
Despite West getting skewered on late-night television and criticized by everybody from actress Jamie Lee Curtis to singer Ariana Grande, there is some evidence that West’s latest outbursts have spurred greater engagement online: his Twitter following grew by 182,000 on Oct. 8, to 31.28 million, according to Chartmetric, an online analytics platform that measures artists’ social and streaming activities. At the same time, West’s Chartmetric rank — an overall measure of fan engagement online — improved four spots to No. 30 in the past month (meaning only 29 artists rank higher). Based on that, “I would say consumers see controversy as a source of entertainment and not concern,” says Rutger Rosenborg, marketing manager at Chartmetric.
West’s streaming activity may just be on autopilot as a result of placement on playlists on music streaming platforms. As of Wednesday (Oct. 19), West’s music is featured on 1,270 and 1,951 in-house playlists at Spotify and Apple Music, respectively, according to Chartmetric. Additionally, West can be found on 1.3 million user-generated playlists on Spotify. (Not all of these playlists result in streams within the U.S., however.) Significant streaming activity also comes from personalized, algorithmically generated playlists such as Spotify’s Your Time Capsule. The only significant week-to-week changes in West’s streaming numbers come when he releases a new track or album.
Radio play depends more on human decision-making. Radio programmers remain powerful gatekeepers in an increasingly decentralized, automated world of streaming platforms less affected by the decisions of corporate executives under the influence of advertising clients. Country singer Morgan Wallen saw radio programmers’ power in February 2021 after a video surfaced online of him using a racist epithet. In the two weeks following the incident, weekly radio spins and audience dropped 95.7% and 97.2%, respectively, according to Luminate. At the same time, Wallen’s streaming numbers remained strong enough that Dangerous spent 10 straight weeks atop the Billboard 200 album chart.
Controversies tend to blow over eventually. Wallen’s radio spins recovered to pre-controversy levels within 15 months and in September Dangerous set a new record for longevity with 86 non-consecutive weeks in the top 10 of the Billboard 200. “Even if DSPs remove an artist from editorial playlists for a period of time, that doesn’t stop users from adding that artist to their own playlists,” Rosenborg says. “Once everything blows over, those artists are added back to editorial playlists by DSPs as well.”
iHeartMedia Atlanta president Drew Lauter has departed the radio giant after video surfaced of the executive using racial and misogynistic slurs. The national radio conglomerate confirmed to Billboard on Friday (Oct. 14) that Lauter was no longer with the company, stating, “allegations of this nature go against our company values and our policies and we take them very seriously.”
The videos – provided to the local news station WSB-TV Atlanta, which first reported the news – shows Lauter repeatedly telling the driver, a fellow iHeartMedia executive, to “run over n—os” and using other racist language in front of two other iHeart employees, one of whom filmed the incident. According to attorneys Jason Castle and Roosevelt Jean, who are representing the client who filmed the incidents, the videos were recorded in August 2021 after a charity event.
In two videos, Lauter can be heard repeatedly using racial and sexist slurs and groping a male coworker while stating, “you better give me that t-tty.” Castle and Jean’s client – who is a top-ranking Black iHeart executive in the Atlanta region – claims to have reported the incident to his immediate supervisor at the time. He informed his attorneys that this was not the first instance of Lauter using racially insensitive language in front of employees.
In a statement provided to Billboard, an iHeart spokesperson said, “As soon as [the videos] were brought to our attention we acted quickly, retaining an outside investigator to conduct a thorough review, and when we received the outside investigator’s findings we immediately took decisive action.”
“From our client’s perspective, this isn’t about our client,” Castle tells Billboard. “It’s that this particular video is a representation of the hostile work environment and the discriminatory and racially insensitive, as well as sexually harassing environment that existed in the iHeart Atlanta offices.”
iHeart employees were reportedly informed of Lauter’s departure on Thursday, the same day the WSB-TV investigative report aired.
Castle says his client has not filed any legal action against iHeart or Lauter.