NJBA Weekly Newsletter, Friday, October 2, 2009

NJBA Chairman and President Meet with FCC

NJBA Chairman Bob McAllan along with President Paul Rotella met with the FCC this week in Washington to discuss many of the issues facing New Jersey broadcasters including the status of our current Petition before the FCC along with EAS and PEP concerns. The relief sought by the NJBA Petition would “protect New Jersey listeners from interference to their few local radio stations (few because of the inequity of radio stations being assigned mostly to New York and Philadelphia), by not allowing for lower power stations (both translators and LPFMs) to interfere with New Jersey stations’ signals”. In addition, the NJBA representatives had discussions regarding several novel NJBA initiatives including spectrum allocations and the establishment of a New Jersey Primary Entry Point (PEP) Station in south western New Jersey, which would not only service our native population, but our neighbors in the Philadelphia metropolitan area, as well. New Jersey and Pennsylvania do not currently have any PEP stations, which are by the way, required by law. They are the communication vehicle of last resort to carry critical emergency messages to the public in the event of a regional or national catastrophe.  

NJBA President Welcomes New NAB Chief

He’s smart, connected, and accessible. That’s the take on the NAB’s new President and CEO Gordon Smith. NJBA President Paul Rotella met with the former senator from Washington State while attending the NAB Radio Show in Philly last week. “Gordon has all of the qualities essential for success in advocacy in Washington” says Rotella, “He is a friendly and knowledgeable “Washington Insider”, who can skillfully maneuver through the legislative and regulatory challenges that our industry will face in the coming years. He is widely respected and has a firm appreciation of the need for bipartisan cooperation in achieving the results we in broadcasting will need to succeed. We are looking forward to working with him and the entire NAB leadership team in accomplishing our shared goals. The NJBA congratulates our new NAB Prez, along with the NAB leadership and Search Committee for making such a fine choice.”  

The Trenton Report from The Marcus Group

What does Sir Isaac Newton have to do with a legislative leadership fight in Trenton?

It was Newton's Third Law of Physics which held that for every action there is an equal and opposite reaction. The decision by Assembly Speaker Joe Roberts of Camden not to seek another term as Speaker has provoked a leadership battle for the Senate Presidency. As South Jersey Democrats lose the presiding officer in the Assembly, they are supporting an effort by Senate Majority Leader Steve Sweeney of Gloucester County to oust Senate President Dick Codey of Essex County. Senator Codey has led the upper house since 2002, while also serving two extended stints as Acting Governor. He first came to Trenton in 1974, as the then youngest person ever elected to the State Legislature. He shows no signs of relinquishing his leadership post without a fight. So, look for major leadership battles in both houses of the Legislature to play out right after the gubernatorial election on November 3^rd. 

FCC Seeks Roundtable on PPM

FCC Chairman Genachowski’s speech to NABOB last week included the introduction of a “round table” proposal regarding the PPM issues before the Commission.  The Chairman acknowledges that the agency’s “authority over the core issue is somewhat limited” but the current Notice of Inquiry has helped to force responses from stakeholders in Arbitron’s PPM dilemma. In his speech, Chairman Genachowski announced his decision to ask “the Media Bureau to pull together a roundtable with different stakeholders in the near future, to try to reach greater understanding and perhaps resolution” of the PPM controversy. Those stakeholders would certainly include the African-American and Hispanic broadcasters who belong to the PPM Coalition, as well as the NJBA, and the Media Rating Council. (The MRC denied accreditation of PPM in the New York City Metro Market this summer and hasn’t accredited any People Meter markets since Riverside-San Bernardino, last year.) Arbitron has been in discussions with many New Jersey broadcasters about embedded metro issues for some time as they responding to requests from four different state attorneys general and other bodies upset with the implementation of the PPM.

More Royalty Issues for Radio?

It appears so! Despite several meetings between the Radio Music Licensing Committee, BMI and ASCAP, the radio industry and the performance rights organizations are still far apart on any new deal.  “The overriding issue is dollars,” says RMLC executive director William Velez. After four negotiating sessions since February, he says, “We have a good amount of territory to close.”  Tom Taylor of Taylor on Radio-Info reports that a key issue is how the royalty will be formulated.  Frustrated with a revenue-based model that saw their ASCAP and BMI bills surge in the late-1990’s the radio industry switched to a flat fee model in 2002 and 2003.  The timing couldn’t have been worse.  While radio revenues have decreased, the royalty remained the same.  Velez estimates had the variable rate been retained the industry would have paid “tens of millions” less to ASCAP and BMI over the last several years. Another ripple is how to handle new platforms such as streaming, HD multicasts and mobile.   Radio is pushing for an all-encompassing approach.  “Going forward, we would like to be covered for anything from the terrestrial nexus through to the listener,” explains Veldez. If a voluntary agreement can’t be reached by the end of the year, a federal court will step-in to implement an interim fee until a final decision is reached.  Velez says, “It may take up to a couple of years, but we’re hopeful we can expedite this and get some rate relief as soon as January 1.” At last week’s NAB Radio Show, Entercom EVP Jack Donlevie noted the percentage of industry revenues that goes to royalties has been creeping higher.  Donlevie says, “That’s putting pressure on our industry.” The NJBA has reached out to Mr. Velez and will be meeting with him in October. Of course, the NJBA will continue to monitor the situation as it progresses.  

FCC likes FM Radio on Cell Phones
The recent announcement by Apple to include FM on the iPod nano was seen as a milestone that could help convince mobile phone carriers to add radio to more models. It’s an idea that that appears to have growing support inside the FCC, which is looking to expand emergency alert coverage. While the agency is looking at getting the two industries to work together, it is clear that the quintessential (and most ubiquitous and reliable) medium, for emergency messaging, has been, and will always be: Broadcast Radio.

NJ's Advertising Industry Flexes Muscles at Roundtable

NJBA President Paul Rotella, along with many of New Jersey's most respected marketing communications leaders met to explore the challenges, contributions and future course of the marketing communications industry in the state at The Roundtable, an industry forum sponsored by the New Jersey Advertising Club. Initial tallies suggest that the components "above the line" generate approximately $10 billion worth of revenue and thousands of jobs, as well as training opportunities. In addition, hundreds of support services are involved in facilitating the day-to-day operations of these advertising agencies, advertisers and media companies. "That's a force to be reckoned with," said Ad Club President Stu Bodow in his keynote to The Roundtable. Panelist Robert C. Provost, Director of Marketing for The Star-Ledger pointed out that both New York and Philadelphia draw large portions of their audience from New Jersey, and that, if measured as a media market, New Jersey would rank as the fifth largest market in the country. The challenge is to convince New Jersey companies that they can find the highest caliber of advertising, marketing and PR services right here in New Jersey, without the need to take their business out of state," commented panelist Paul Rotella. "Advertising firms, marketing and public relations agencies and media businesses in New Jersey need to work together to brand the state as a worthy market for advertising dollars," added Steve Adubato. The Roundtable participants were made up of noted marketing communications professionals from every aspect of the state's communications industry. The Roundtable was organized for the New Jersey Advertising Club by First Vice President of the Ad Club Sandra Schler of A.J. Images, and Daryl Rand of Harrison Rand and plans are being made to institute The Roundtable as an annual event.

October 10^th Filing Deadlines Approaching

Quarterly Issues/Programs List Required—The Quarterly Issues/Programs Lists covering the time period beginning July 1, 2009, and ending September 30, 2009, must be placed in the public inspection files of all radio, full-power television, and Class A television stations by this date. 

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