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ftm Radio Page - week ending May 13, 2022

Streamer gives up fake radio shows as broadcasters build distribution
"level of specialization"

Streaming music services and radio broadcasters have never been exactly pals. After all, those streaming services seriously cut into listening time. And, most important to radio broadcasters, that cut into advertising rates. Broadcasters made adjustments and the streamers flew higher.

All that is, by design, a great oversimplification. Radio broadcasters took on every digital possibility, particularly online and mobile apps. Streaming platforms - basically tech companies - are built on algorithmic strength. They also started paying rights fees. Yes, the big winner in the first years of all this were music publishers.

About four years ago, renowned streaming platform Spotify introduced a sidebar app called Stations. Meant to mimic some characteristics of radio shows - as understood by Spotify engineers - it was rolled out slowly, first in Australia. Officially, the Stations app shuts down next week (May 16). The announcement, an email to users, noted that Stations had always been a beta-test. The lesson taken by the Spotify marketing teams, perhaps, is that streaming subscribers want to pick the tunes. (See more about streaming media here)

Spanish broadcaster Prisa Radio is using streaming platforms to expand distribution. The subsidiary of Grupo Prisa, through a new subsidiary Prisa Audio, struck a deal with US media company iHeartMedia for expansion into the US market. Prisa Radio channels operate throughout the Spanish-speaking world, arguably the largest Spanish-language radio broadcaster. From the first of June its speech-based radio channels - including Cadena SER - will be available on the iHeartRadio streaming platform in the US. (See more about media in Spain here)

"iHeart is a reference as a platform in terms of usability and customization for the user,” said Prisa Audio general director María Jesús Espinosa de los Monteros in a statement (May 12). “Closing an agreement with a partner with this level of specialization; and this positioning in the US market is a boost to the firm commitment we are making to the development of digital audio.” In the next phase of the collaboration, podcasts from Prisa Audio will be added to the iHeartRadio platform.

Legacy broadcasters fade as private equity consolidates
"simplify the structure"

Consolidation in European media takes further steps every day, it seems. Catalan publisher and broadcaster Grupo Godó has exited its 20% stake in Prisa Radio, reported La Vanguardia (May 3). The deal has been in discussion for more than a year.

Grupo Godó has been a legacy shareholder in Grupo Prisa dating from the 1992 merger of Antena 3 Radio with Cadena SER. The family-owned company operates Catalan radio channels RAC 1 and RAC 105 as well as newspaper La Vanguardia and leading Spanish sports newspaper Mundo Deportivo. (See more about media in Spain here)

Prisa Radio is a subsidiary of Grupo Prisa, which is paying €45 million. In turn Grupo Prisa is principally controlled by private equity firm Amber Capital. In its filing with the Spanish securities regulator Grupo Prisa valued Prisa Radio at €225 million. This is several million more than the estimated €200 million Blas Herrero, owner of the Kiss FM national radio channel, offered in 2020 for the whole of the Prisa media stable, the radio channels Cadena SER, Los 40 Principales, Cadena Dial and others plus newspapers El Pais, Cinco Dias and As. (See more about mergers and acquisitions here)

“This is another step in the consolidation of the radio and press businesses launched last year and reinforces the Group's industrial ambitions,” said the Prisa statement. “In addition, it allows Prisa to simplify the structure, providing it with greater flexibility and lower costs.” Amber Capital founder Joseph Oughourlian is president and chief executive of Grupo Prisa. He recently became a shareholder in football club Real Zaragoza.

Regulator casts wary eye on radio acquisition, seller abruptly shifts
"editorial independence"

Those experienced in mergers and acquisitions know how easily deals change even at the very last moment. Nobody with any sense starts changing locks on the doors until every detail is etched in stone. Even then earthquakes can change things.

Arnaud Lagardère, chairman of the media company baring his name, made something of a surprise announcement this week regarding the three national radio channels to be acquired by French conglomerate Vivendi. A limited partnership company (SCA) would be formed, he said, quoted by Le Point (May 11), to “confirm the autonomy” of the radio division, meaning Europe 1, RFM and Virgin Radio. If this works, M Lagardère would retain control over the radio channels as managing director. (See more about media in France here)

Apparently, media regulator Agcom, formerly CSA, has raised questions about “editorial independence.” Under French audiovisual law (1986), the regulator is empowered to take effective control of licensed broadcast outlets “in the event of a substantial modification of the data at the view of which the authorization had been issued, in particular changes in the composition of the share capital or the management bodies and in the methods of financing.” Further complicating the proposed acquisition Lagardère shareholder Qatar Holding said this week, reported Reuters (May 9), it would not be offloading its 11% stake to Vivendi.

As the acquisition by Vivendi drags out, Europe 1 has become more and more attached to CNews, the right-wing TV channel owned by Canal+, a Vivendi subsidiary. Staff and programs are shared. This became more pronounced with then - CNews television talkshow host Eric Zemmour regularly appearing on Europe 1 before declaring candidacy for the French presidency. He lost in the first round just three weeks ago, giving some hint to the timing of all this. (See more about elections and media here)

M Lagardère has often expressed special affection for Europe 1, which his father Jean-Luc Lagardère founded. That Europe 1 radio channel has suffered greatly during the time of corporate instability, falling to its lowest audience share (Médiamétrie) in years. A different company structure for the radio channels might deflect the regulators’ attention.

Regulator dithers with radio licenses, broadcasters remain philosophical
"You can't make mistakes here"

The Media Council of Hungarian regulator NMHH announced recently that the broadcast license of Budapest non-profit station Tilos Radio would not be renewed. Licenses for Budapest stations Trend FM and Klasszi Rádió were renewed for seven years, reported media news portal Kreativ HU (April 28). The Tilos Radio license expires in September and the NMHH is expected to advertise for the frequency.

Another radio license up for grabs was vacated, under order, by Budapest FM. Spirit FM and Klubradio have applied. Klubradio, a news and talk station, had its Budapest license lifted for specious claims of paperwork not being in order. Spirit FM is a religious broadcaster, which was granted temporary authorization for the FM frequency last used by Klubradio. (See more about media in Hungary here)

The Tilos Radio license was not renewed for “repeated violations of inappropriate language,” said the NMHH to media news portal Media1 HU (April 27). Founded as a pirate in 1991, it is considered one of the most significant community radio stations in Europe. The on-air program is almost completely live, produced by volunteers. With the arrival of the populist, nativist Fidesz political party in 2010 changing media operating rules, operating Tilos Radio became more difficult.

“You can't make mistakes here, you can only break the law,” said managing director Gábor (Papó) Csabai to Radio Free Europe Hungarian service (RFE/RL) (May 4). “We were immediately sanctioned in the first two years for our reporting obligations and age limit. Anyone who listens to Tilos Radio for a long time can see that we are not opposition radio. It is a station that inspires discussion and thinking."


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Radio Page week ending April 15, 2022
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