Lower royalties lead Pandora into local radio game | Clear Channel inks first-of-its-kind royalties pact with Fleetwood Mac | Rupert Murdoch, family prepare for split of News Corp.
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June 12, 2013
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Lower royalties lead Pandora into local radio game
Music service Pandora has acquired small-market radio station KXMZ-FM in Rapid City, S.D., as a "strategic move" to pay lower royalty rates imposed on broadcast stations and online services run by broadcasters, Billboard's Glenn Peoples writes. Pandora plans to continue the station's adult hits format while applying the company's "insights about listening habits to program music that accurately reflects local listeners' evolving tastes," said Christopher Harrison, Pandora's assistant general counsel. In related news, Pandora has filed a new motion in its federal lawsuit over royalty rates, alleging ASCAP and its members are discriminating against the music service and its rivals. Billboard.com (6/11), The Hill/Congress Blog (6/11)
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Business & Industry Report
Clear Channel inks first-of-its-kind royalties pact with Fleetwood Mac
Clear Channel Media and Entertainment has reached a potentially groundbreaking new agreement with Fleetwood Mac to pay performance royalties for tracks from the group's "Extended Play" EP that are played on Clear Channel's 850 broadcast outlets. The deal is the first such agreement between a radio operator and an artist, Clear Channel says. "Reaching an agreement with [Fleetwood Mac] is the clearest sign yet that this kind of revenue-sharing model represents the industry's future -- it is a win-win-win, for artists, fans and the music business," said Clear Channel CEO Bob Pittman. Billboard.com (6/12)
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Rupert Murdoch, family prepare for split of News Corp.
As News Corp. moves toward a June 28 split into separate entertainment and publishing units, the media giant will remain in the firm grip of the Murdoch family. The Murdochs, including patriarch Rupert and three of his children, will maintain their 39% share of both entities. Rupert Murdoch will be chairman of both companies and CEO of the entertainment unit. The entertainment side's day-to-day operations will be overseen by Chief Operating Officer Chase Carey and Rupert's son James, while Robert Thomson will helm the publishing side as CEO. The Hollywood Reporter (free content) (6/12), Multichannel News (6/11)
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In cost-cutting move, Greece shuts down public TV, radio service
Greece's conservative-led government has shuttered its public TV and radio service, issuing layoff notices to 2,500 employees. The move was prompted by the country's fiscal crisis. Although the government says it intends to relaunch the Hellenic Broadcasting Corp. with a smaller staff, it has not set a date for the reopening or said which stations would begin operating again. Bloomberg Businessweek/The Associated Press (6/11)
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Other News
Technology
ABC, NBC see own live streaming as way to compete with Aereo
ABC and NBC are trying to outmaneuver unlicensed streaming startup Aereo by developing their own live streaming services. ABC is testing its service this summer in New York, Boston and other markets, while NBC, which streamed the 2012 London Olympics, is offering live streams of NHL games, ahead of a wider rollout by the middle of next year. TheWrap.com (6/11)
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Broadcast Programming
Networks turn to local affiliates to help cover breaking news
Network news organizations increasingly are teaming up with local affiliates to cover major, breaking news stories. "We know a lot, but the local stations are on the ground; they are covering their cities," said Al Prieto, vice president of ABC's affiliate news service ABC NewsOne. "When the value of that relationship kicks in, it pays off." TVNewsCheck (free registration) (6/11)
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Related Industry News
Pay-TV bundle "is starting to get too expensive," Time Warner Cable CEO says
Although a Senate measure to break up the pay-TV bundle is unlikely to pass, the idea of offering smaller packages is backed by Time Warner Cable CEO Glenn Britt. "The symbolism there is people are starting to pay attention to the fact that the multichannel TV package ... is starting to get too expensive for lower-income people," Britt said at The Cable Show in Washington, D.C. Los Angeles Times (tiered subscription model)/Company Town blog (6/11)
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People & Personalities
Senate panel to consider Wheeler nomination on June 18
The Senate Commerce Committee on Tuesday will consider the nomination of Tom Wheeler to become the next chairman of the Federal Communications Commission. However, there is not yet a nominee for the Republican FCC seat recently vacated by Robert McDowell. Fred Campbell, the director of the Competitive Enterprise Institute's Communications Liberty and Innovation Project who was previously chief of the FCC wireless bureau and an adviser to ex-FCC Chairman Kevin Martin, is the latest name to be reported as a possibility for the GOP spot. Radio Business Report (6/11), Multichannel News (6/12)
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Other News
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Oklahoma Tornado Special Edition of Licensed to Serve
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SmartQuote
Even if I knew that tomorrow the world would go to pieces, I would still plant my apple tree."
-- Martin Luther,
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