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ESPN Title to Be Added to Disney+ By End of Year as Disney Approaches Streaming Profitability

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The Walt Disney Company revealed its financial results for the second quarter of fiscal year 2024, which keeps the company on track to garner more than $8 billion of free cash flow for the year. This windfall was driven by a profitable entertainment direct-to-consumer business that Disney hopes will drive future growth for the company. As a whole, quarterly revenue equated to $22.08 billion with total segment operating income of $3.85 billion. Disney began separating financial results for different segments of its business following a strategic restructuring last fiscal year, which includes the sports sector with ESPN.

For the three months ending on March 30, 2024, revenue for ESPN rose 3% year-over-year to $4.21 billion. Yet its operating income registered a year-over-year loss of 9% to $799 million, something Disney attributes to diminished advertising revenue and more programming and production costs for the College Football Playoff in airing additional games. Moreover, Disney attained lower affiliate revenue in this category because of fewer subscribers; however, those losses were partially offset by increases in contractual rates.

Within the quarter, ESPN registered several viewership milestones across its portfolio of live sports rights. The network’s divisional playoff game between the Houston Texans and Baltimore Ravens averaged 32.4 million viewers, making it the most-watched NFL game in the history of the network dating back to 1987.

Moreover, ESPN’s presentation of the NCAA Division I Women’s Basketball Tournament broke several records, including a championship game between South Carolina and Iowa averaging 18.7 million viewers across ABC and ESPN. This represents the most-viewed college basketball game on record and the best basketball audience for ESPN since 2017. The tournament as a whole averaged 2.2 million viewers across ESPN platforms, which is up 121% from the 2023 iteration of the tournament.

The Walt Disney Company (ESPN/ABC) has reportedly reached a framework of a deal to retain media rights to the NBA for $2.6 billion annually. While no details are finalized, John Ourand of Puck News reports that the media conglomerate is prepared to forsake its Friday night national NBA games and keep the NBA Finals. Earlier in the year, the company renewed its media rights for the College Football Playoff and extended its broadcast deal with the National Collegiate Athletics Association for eight more years.

Disney is preparing to launch two direct-to-consumer options implementing ESPN, the first of which will be a joint streaming venture with FOX Corporation and Warner Bros. Discovery. The company will then introduce an ESPN direct-to-consumer streaming platform, currently known as “Flagship,” in either August or the fall of 2025, as previously announced by Disney chief executive officer Bob Iger.

During Disney’s quarterly earnings call on Tuesday, Iger stated that ESPN+ would continue to exist as its own service even after the launch of the network’s direct-to-consumer platform. Paid subscribers for the quarter declined by 2% year-over-year to 24.8 million, while average monthly revenue per paid subscriber augmented 3% to $6.30. Disney correlates the rise in the latter metric to an increase in retail pricing and higher advertising revenue.

Additionally, an ESPN title will be made available within the Disney+ streaming service by the end of the year. This functionality will grant access to “select live games” along with studio programming that can be watched within the Disney+ interface for all U.S. subscribers. Upon its launch, the ESPN Flagship streaming service will also be part of the Disney+ bundle. The company narrowed its year-over-year direct-to-consumer losses for the quarter by 97% to $18 million.

Within his dialogue, he explained that the network is pivoting “toward digital without abandoning linear” and would begin to condition viewers that sports programming would be on Disney+. Linear network revenue for The Walt Disney Company was down by 8% to about $2.77 billion. The company registered operating income of $752 million in the category, a 22% decline from the fiscal second quarter last year.

Report: Amazon to Get NBA’s In-Season Tournament and Play-In Games

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As the NBA continues to work on its media rights negotiations past next season, more reports have come out about who might be getting what in the new deals. A new report from John Ourand of Puck says Amazon, which has not signed a deal yet, is likely to end up with its own Saturday night slate of games as well as the NBA’s In-Season Tournament and the postseason play-in games.

There had been speculation another streamer such as Netflix might be in the bidding for the either the In-Season Tournament or the postseason play-in games. Ourand also reports the Amazon deal is expected to include a conference finals series every other year as well as some additional playoff games in earlier rounds.

ESPN, who also is said to have the framework of a deal in place with nothing signed as of yet, is expected to pay more than $1 billion more than the $1.5 billion annual price tag they had been paying and will end up with less programming. As part of the deal ESPN would get one conference finals and the NBA finals each year of the deal, which is believed to be for a period of ten years.

The one big piece remaining for the NBA is who a third partner will be. Warner Bros. Discovery has been a longtime NBA partner, but a recent report in the Wall Street Journal suggested NBC was making a bid around $2.5 million to steal the rights from WBD.

KIRO Shuffles Lineup as Afternoon Co-Host Shari Elliker Exits

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97.3 KIRO Newsradio in Seattle has a new daily lineup as afternoon co-host Shari Elliker has departed the station in a round of layoffs.

Elliker joined the news/talk outlet in December 2021 as afternoon co-host alongside John Curley. Before joining the outlet, she worked as a traffic reporter in both Baltimore and Washington D.C., and also hosted both mornings and afternoons at WBAL in Baltimore, according to RadioInsight.

As Elliker exits, nighttime host Jake Skorheim — who worked as the producer of longtime host Dori Monson from 2009 to 2016 before rejoining KIRO in August last year — will move to afternoons to pair with Curley.

As a result, the station has added The John Batchelor Show, a nationally syndicated show, to in the night time slot.

Additionally, traffic reporter Nate Connors is departing the Bonneville-owned station. He joined the station in 2022.

1210 WPHT Adds New Nighttime Program Hosted by Walter Sterling

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1210 WPHT in Philadelphia has announced it is adding a new live nighttime program hosted by longtime radio executive Walter Sterling.

Walter Sterling at Night will be heard weeknights from 9 PM-Midnight, beginning on Monday, May 13th. The show will replace the nationally syndicated program hosted by Dana Loesch in the station’s lineup.

“Late-night radio is golden media time for a live program. It’s a one-on-one stage for lighter conversations, serving as morning drive for late-shift doctors, nurses, bus drivers, hotel managers, security staff, and more,” said Sterling. “Thank you, David Yadgaroff, Greg Stocker, Jeff Sottolano, and the incredible programming and engineering teams at Audacy. Over the years, I’ve made strong connections with Talk Radio 1210 WPHT listeners and look forward to building them as I join weeknights!”

Sterling has hosted his Sterling on Sunday with Walter Sterling as a nationally syndicated offering for a decade. Previously, he worked at SiriusXM and also served as the Vice President of ABC Radio Networks and was the Executive Vice President of NBC-owned FM stations.

“Walter has demonstrated the importance of the late-night talk radio with his Sunday night nationally syndicated program and has welcomed his listeners, who he refers to as ‘friends on the radio,’ to unpack their day-to-day lives,” said Audacy Philadelphia Senior Vice President and Market Manager David Yadgaroff. “He’s made strides at Talk Radio 1210 WPHT for a decade, and we’re ecstatic to finally bring his entertaining brand to the Delaware Valley five nights a week.”

Morning Host Bryan Suits Exits 770 KTTH in Seattle

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770 KTTH morning show host Bryan Suits has departed the station in a round of layoffs.

Suits began hosting the daypart in February 2022. He also had stints hosting at KFI-AM 640 and 790 KABC in Los Angeles, as well as 600 KOGO in San Diego.

In a live stream on X, Bryan Suits shared his plans to continue to morning program as a digital video offering, airing on both the social media platform and on Rumble.

“Radio is a business. And I’ve chosen this business. This is the way it is. The company, Bonneville, has had two years to try to figure out what to do with 200,000 live streams per day and they couldn’t. But I can,” said Suits. “So that doesn’t mean that the show’s over. It’s not like I wake up this morning after sleeping in and don’t take in the news … This is the place to be.”

The station has replaced Suits with the nationally syndicated Armstrong & Getty from 6-9 AM. With the removal of Suits, afternoon drive program The Jason Rantz Show is now the only local weekday offering on 770 KTTH.

Matt Jones Signs Extension with ESPN Radio

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Kentucky Sports Radio founder Matt Jones will continue his side hustle with ESPN Radio. Jones announced via his X account he has signed another deal and will continue working on the weekends with Myron Medcalf.

“Just signed another deal today meaning Myron Medcalf and I will go into our 7th year together on ESPN Radio this fall,” he posted. “Very fortunate for the opportunity. I love doing the show, ESPN has allowed us to do our thing and Myron has become a very good friend. Perfect combination.”

“Let’s go!!!! Looking forward to it,” Medcalf posted in response to Jones’ post.

Jones founded Kentucky Sports Radio in 2005 after graduating from Duke Law School. He is also one of the owners of Ohio Valley Wrestling, which was featured in the Netflix documentary, Wrestlers. Medcalf is a columnist for the Minneapolis StarTribune and a senior college basketball reporter.

Longtime 101 KXL News Director Jim Ferretti Departs

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101 KXL News Director Jim Ferretti has announced he has departed the Alpha Media Portland news/talk station.

Ferretti joined the station as a reporter and producer in August 2010. He eventually rose to Assistant News Director in 2016 before taking the News Director role at 101 KXL in June 2020, which he continued to hold until his exit.

Additionally, Ferretti had been serving as the Content Director of the station in an interim role as the station looked for a new leader for the brand and sister station 750 The Game.

“After more than 20 years on the air and behind the scenes on radio in Portland, company management and I agreed it was time to move on. I thank the people who started Alpha Media all those years ago and the vision they laid out. I have worked alongside some truly amazing people,” Ferretti said.

“While it’s not clear where I go from here, one thing is for sure.  I will spend some quality time reconnecting with my family who have paid the price from my dedication to my career.”

Ferretti is looking for his next opportunity and can be reached by clicking here.

2024 Giants of Broadcasting Announced By Library of American Broadcasting

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The Library of American Broadcasting has announced its 2024 Giants of Broadcasting honorees, with several names familiar to the news media crowd receiving honors.

The LABF has honored more than 200 leaders in the broadcasting space since debuting the title in 2003.

The 2024 honorees are:

  • AL ROKER (Weather and Feature Anchor, TODAY and Co-Host, 3rd Hour of TODAY)
  • CHRISTINE BARANSKI (Two-time Tony and Emmy Award Winning Actress)
  • MIKE MCVAY (President, McVay Media Consulting)
  • PATSY SMULLIN (President and Owner, California Oregon Broadcasting, Inc.)
  • STEPHEN A. SMITH (ESPN, NY Times Best Selling Author, Host of The Stephen A. Smith Show)
  • STEVE JONES (President and Chief Executive Officer, Skyview Networks)
  • WENDY MCMAHON (President and Chief Executive Officer CBS News and Stations)

“This event celebrates the ‘innovators and trailblazers in the media industry,’” said LABF
Co-Chairs Heidi Raphael and Jack Goodman. “We are absolutely thrilled to pay tribute
to and honor these outstanding individuals for their many contributions in broadcasting
and American Culture.”

The 2024 Giants of Broadcasting honorees will be recognized during a luncheon and awards ceremony on Tuesday, November 12th at Gotham Hall in New York. The event will be hosted by 2018 honoree and CBS News correspondent Bill Whitaker.

The NBA Can’t Let Inside the NBA Just Disappear

Ask most people in the sports media business what the best studio show is regardless of sports, and you will get a nearly unanimous answer. Inside the NBA has been the gold standard by which everything else is measured for decades. Each year, other networks spend countless millions trying to recreate its magic. In a world of fake laughs and non-distinct points of view, Inside the NBA is authentically entertaining. Is the NBA really just going to let it come to an unceremonious end?

The league is in the midst of negotiating new TV contracts and reportedly has two of its three deals done. We’ve learned that ESPN and ABC will retain the top TV package, which includes the NBA Finals, while a new streaming-exclusive package will go to Amazon. There’s just one package of games left and both TNT and NBC want it.

If TNT wins out, there’s no problem for Inside the NBA. The show may air fewer times per year, but it will still be in basketball fans’ lives. There’s no guarantee though, because NBC is reportedly ready to shell out $2.5 billion to ensure the return of “Roundball Rock” to living rooms everywhere. 

If that happens, TNT is out of the basketball business and Ernie Johnson says that won’t change his employment status. Even if Charles Barkley, Kenny Smith and Shaquille O’Neal sign elsewhere, he will remain loyal to the network. Inside the NBA without Ernie Johnson is not Inside the NBA.

Let’s be real. Charles Barkley talks about walking away from television all the time. Any change to his current work situation could very likely mean he is just done with work. He will happily settle into retirement.

So I have a radical proposal. It’s one that could keep the show together regardless of what happens with the NBA’s final TV package. If every member of the Inside the NBA cast has an opt-out clause that allows them to leave Warner Bros. Discovery if TNT does not have NBA games, the league should do something bold. It should buy the rights to Inside the NBA, sign Barkley, Johnson, O’Neal and Smith to non-exclusive deals and make it the league’s official pre-game show. Regardless of what network or streaming service the game is on, Inside the NBA will always be the pre-game show.

This isn’t like what the league currently has for studio programming on NBA TV. I am suggesting that when the game is on ESPN, Inside the NBA airs on ESPN. When they are playing on Amazon, the show is on Amazon. In an era when every league has its own network, why would a league-owned studio show be any different?

All of the networks involved could scoff. They could demand to fully own whatever shoulder programming they air. Ask ESPN how that’s been working out. NBA Countdown is constantly being made over and every iteration is stuck playing second fiddle to TNT.

More networks would mean more shows. Barkley has said he isn’t trying to work more. I would bet O’Neal and Smith feel the same way. That’s not a problem. The NBA could handle the show exactly how TNT did, with multiple casts. Each of the four main players could work a total of two days a week with one of them being a day they are all on together. That sort of flexibility combined with a non-exclusive deal would make it possible for Johnson to stay with the show and stay with TNT.

It’s a bold suggestion, but the show is that important. Even the people that track NBA ratings for political reasons agree that Inside the NBA is great TV. 

Businesses go to great lengths to protect what makes their product special. Disney finally gave up its fight to keep the original film appearance of Mickey Mouse out of the public domain after 48 years of creating and finding loopholes. Maybe Inside the NBA doesn’t hold the same cultural significance that Mickey Mouse does, but just like Walt Disney’s iconic character, Inside the NBA is the measuring stick in its corner of the entertainment world. So many less successful copycats and spinoffs have come and gone.

All good things must come to an end, but great things should get special consideration. They cannot be allowed to leave us until all efforts to keep them successfully intact have been exhausted. That’s all I’m asking for for Inside the NBA. The league can’t let one media conglomerate’s financial uncertainty dictate the fate of one of its most reliable properties. 

Fans and the media industry have made our stance clear. We love Inside the NBA! We think it’s special. It’s worth saving even if the NBA on TNT brand isn’t. In order to do that, the NBA may have to step in and rethink the best ways to partner with media companies.

Seller to Seller: Bernie Laur, Hubbard Broadcasting Minneapolis

Not many in our business can say they have had the career Bernie Laur has had. Laur, the Director of Digital for Hubbard Broadcasting in Minneapolis has, in a way, had multiple successful careers all rolled into one.

Bernie started as a programming assistant with Emmis Communications in 1985, followed by several years on the marketing and promotions side before entering the sales side of things in 1992 with Heritage Broadcasting. He was an account executive for Hubbard Broadcasting from 1995-1998 and then after a few stops as a sales manager with different companies, he returned to Hubbard in 2008 to be the Director of Digital Sales. Towards the end of 2019, Laur was promoted to Director of Digital.

Marketing and promotions, check. Sales, check. Sales manager, check, Digital sales manager, check. And now, in his fifth year as the Director of Digital, Laur appears to be having as much fun as he has ever had in the business.

Early in 2019, as Laur was still running Hubbard’s digital agency in Minneapolis, Hubbard had made a decision with its sports station that would ultimately change the trajectory of his career.

“I was talking with my Market Manager, Dan Seeman” Laur said, “Hubbard was getting into podcasting, and I liked what we were doing on the podcast side. Phil {Mackey} and the team at SKOR North were already doing podcasts, and we were also having success with our Garage Logic podcast, and Dan asked me, ‘How would you like to handle the podcast side of things?’ And I said, ‘I would love it because it goes back to my audio roots, but it still has the digital focus I have, and it is something relatively brand new.’ I just saw a lot of room for growth. So, I just jumped in there and have loved being part of the amazing growth.”

Hubbard’s 1500 AM, KSTP, had been a sports station since February 2010 and a pretty good one, too. However, a competitor launched an FM sports station and KSTP had started to decline. That is when the team at the station and management at Hubbard decided to try something new.

On January 15, 2019, the station rebranded as ‘SKOR North’ and became a digital-first sports content brand where it would distribute content across multiple traditional and digital platforms including 1500 AM, 94.5 FM HD 2, streaming, a dedicated SKOR North app, podcasts, Facebook, Twitter, Instagram, and YouTube.

After it had been up and running for two years, Laur excitedly came on board and the rest, as they say, is history.

“It’s been a long road, some trials and tribulations and a pandemic thrown in. But honestly, we have a lot of great people on both sides, programming and sales and upper management just supporting everything and trusting us and helping us grow, it’s been fun.”

Laur gives credit to the team of Phil Mackey, Judd Zulgad and Declan Goff, along with Hubbard Minneapolis Vice President/Market Manager Dan Seeman, who realized sports fans want to consume content on their timeline and when they want it, they want it immediately. “It started with a few different podcasts and now has exploded; I think we have 13 or 14 different podcasts right now. Those three guys have really built this brand and continue to have it grow.”

Laur said he first got the digital itch shortly after 9/11 when he was the GSM for Radio One and they sold a text campaign. “It was exciting, and it was very different from anything else we had done,” Laur said. “It just kind of bit me. When Hubbard called me back…then we developed Hubbard Interactive. We started growing things like social media management, targeted display, SEO, pay-per-click…and eventually things like YouTube.”

Laur, 60, was in his 50’s then and most of the team was in their 20’s and 30’s. “It was exciting because it was always changing,” he said. “That’s what I love about digital…In radio, I would find myself in management roles and after about four or five years I was like, ‘ok, where is my next challenge,’ and with digital, everyday there’s a new challenge.”

Once Laur made the move to digital full-time he hasn’t looked back. As the Director of Digital Sales, he had the task of working with radio salespeople to try and teach them about the digital offerings.

“It is a learning curve, especially for those who have just been selling radio for a long time,” he said. “But you have to get your sales team to realize you need to do what is best for their client. What does your client need? Maybe it’s a targeted digital campaign that’s targeting their geographical area. We always start with the question, ‘what does your client need?’

“We had some early adapters, say 20% and then you had another 20% that were very slow to adapt and then you had this middle ground. Once digital and podcasting got bigger and bigger, if you are just calling on your clients for radio advertising, you are not doing justice for them because there’s a whole other area you could be talking about to help get them results. And by the way, if you’re not talking to them about digital, somebody is, it’s your competitor.”

SKOR North today has multiple Vikings shows, a Twins show, a Timberwolves show, a Wild show, general Minnesota sports talk and much more. Their YouTube channel has around 30,000 subscribers, their main X account has nearly 54,000 followers while they are over 15,000 followers on both Instagram and TikTok.

“What really helped us grow, this was all audio at the beginning, was when we also started adding the YouTube component. So now, especially the younger consumer who spends a lot of time on YouTube, now they can see the shows and the clips. This has really helped us from a discoverability standpoint as YouTube is the second largest search engine, owned by Google, which is the first largest, so it is great for discovery.

“On the client side it has helped too, because we are not just an audio medium anymore. In fact, our Purple Daily show, about 60% of our audience views the show and 40% listens to the show, so now when we are running an advertisement … they are not only just hearing the ad, but they are also seeing some b-roll video of what the hosts may be talking about. Wow does that take it to the next level as we now have the best of audio and video combined and then we tie in social media as well. The advertisers love it because they are getting a multimedia approach to a single ad.”

Laur has a dedicated staff of four people that sell their AM podcasts and he is currently looking to add a fifth. He also has a dedicated person who works the other 16 sellers in the building helping them to sell podcasting.

“The big thing is that it works,” Laur said. “I have worked for a number of different radio stations, and we have gotten great results for clients, mostly due to endorsements. I have never seen anything like what we get with SKOR North. It’s really ‘lean in’ listening because people have to search you out and listen wherever, whenever they want to, and so they are very engaged. When you have that fun content, you kind of build a club of people that all belong together.

“We get listeners, fans, viewers who come on and want to talk about the Vikings, but before they do they want to tell you about [a particular advertising client]. Our fans are doing the ads for us because they want to support the podcast because they love it so much. It’s incredible.”

Laur says part of what makes this venture so fun is that they are all in it together. “Phil [Mackey] is unbelievable, he is the godfather of this whole thing. Years ago in radio, programming and sales always seemed to be battling to get things done. It doesn’t seem to happen as much in podcasting, at least not with us. I’ll sit down with Phil and a lot of times it’s hard to tell who the sales guy is and who is the programming guy because we are working so much together.”

When asked what advice he would give to any other brand thinking of going the direction SKOR North has he said, “It is the future, but it is a lot of work. We are very lucky that we work for Hubbard Broadcasting and that they allow you to take some risks and allow you to try out some things. But when you know you have the backing of upper management, that goes a long way.

“You do need to stick with it, you do need to try some things, find out what works. A lot of it is trial and error but find out what other people are doing and doing well. You have to be willing to pay some people and incur some expense until you’re able to educate the businesses and the agencies on why they should buy podcasting.”