LA Radio: 'Piolin' Sues Staff For Extortion

Eddie Sotelo

Spanish-language radio star Eduardo "Piolin" Sotelo has filed a lawsuit against six former staff members who worked on his canceled Univision Radio program, claiming the group banded together to try to extort $4.9 million from him.

Accortding to the LA Times, Sotelo claims to be a victim of a shake-down by former employees who allegedly demanded a big payday in exchange for taking their Univision workplace secrets "to the grave," according to the civil lawsuit filed Monday by Sotelo's lawyers in Los Angeles County Superior Court.

The suit seeks general damages and punitive damages “in an amount sufficient to punish defendants and to deter them from engaging in similar conduct in the future,” and legal costs.

An attorney representing the six former colleagues released a statement Monday afternoon saying the group will be filing their own lawsuit against Sotelo. He rejected Sotelo's lawsuit as lacking merit.

ALSO READ: Eddie Sotelo Lands At SiriusXM. Click Here.

Before joining Sotelo's crew, the suit claims, most of the group held low-level jobs outside of radio -- working as a fast-food server, a bakery delivery man, a warehouse employee, a medical waste hauler and a copywriter. But after going to work on Sotelo's popular radio show, the employees were well compensated and able to rub elbows with the likes of President Obama, First Lady Michelle Obama and entertainer Jennifer Lopez, who were guests on the show.

"This case arises from the defendants' ingratitude, unmitigated greed and desire to extract from [Sotelo] some perceived revenge and an undeserved monetary windfall," the lawsuit said.

Last month, Sotelo lost his radio program on Univision after a call-screener and performer on the show complained to Univision that Sotelo had created a hostile work environment.  The employee, Alberto "Beto" Cortez, alleged that Sotelo sexually harassed him over a three-year period.

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SiriusXM Sued For Digital Royalty Underpayment

SoundExchange Monday filed a lawsuit against SiriusXM radio to recover a massive underpayment of digital royalties for the period 2007-2012.

During this time, the satellite radio company took a number of impermissible deductions and exemptions in calculating its royalty payments to SoundExchange, including deducting for pre-1972 sound recordings and certain channel packages containing music.

In addition, SiriusXM failed to pay the legally required fees due for several late payments within the same period. SoundExchange believes SiriusXM’s underpayments amounted to $50 to $100 million or more, which it is seeking to recover on behalf of the artists and labels it represents.

Mike Huppe

“SiriusXM is knowingly withholding royalties from the creators who bring life to their service, even as the company continues to experience unprecedented and explosive growth,” said Michael Huppe, president and CEO, SoundExchange. “We cannot sit by and watch this multi-billion dollar company reap record profits from the creative contributions of artists and labels without paying them everything they deserve.”

During the same time period that SiriusXM underpaid musicians for this critical part of their service, the company saw its subscriber base grow from 17 million to 24 million, and its revenue increase from $2.06 billion to $3.4 billion – a revenue bump of 65 percent.

SiriusXM is required to pay SoundExchange for the use of the statutory license, which allows the service to broadcast any commercially available sound recording. The lawsuit was filed in the United States District Court for the District of Columbia.

To view the official filing, click here.

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Report: Internet Listening Grows, But Not Profits

The Internet Radio Broadcasting industry grew rapidly during the past five years, as consumers increasingly turned to the internet and mobile devices as an entertainment option.

The number of mobile internet connections grew at an annualized rate of 53.0% during the five-year period.

“As such, internet radio's audience increased an annualized 16.5% during the same period, far outpacing traditional radios,” according to IBISWorld industry analyst David Yang. Consequently, internet radio broadcasters have taken a larger slice of advertising revenue from the $17.3-billion Radio Broadcasting industry. In the five years to 2013, IBISWorld estimates industry revenue to grow an annualized 42.0% to $766.7 million, including growth of 13.0% in 2013 alone.

Internet radio has gained increased consumer acceptance during the past five years. According to research from Arbitron, a radio ratings measurement firm, the average time consumers spend with internet radio increased from 6.2 hours per week in 2008 to 11.9 hours in 2013.

“Smartphones and data-enabled mobile devices have made it easier for consumers to access internet radio on the go,” says Yang. In 2010, 6.0% of cell phone owners streamed internet radio in their cars, compared with an estimated 21.0% in 2013. The rising number of internet radio users made it a more attractive advertising platform during the past five years, which bolstered advertising revenue for the Internet Radio Broadcasting industry.

Firms struggled with profitability during the past five years. Due to music royalty regulations, internet radio broadcasters often spend more than 50.0% of revenue on royalty payments. In contrast, traditional radio broadcasters spend about 10.0% of revenue on royalty. Internet radio music royalty fees are paid on a per-play basis, and royalty payments increase proportionally to the number of listeners. Industry firms unsuccessfully attempted royalty regulation reforms in 2012.

The Internet Radio Broadcasting industry is highly concentrated. In the five years to 2013, this high concentration level has been steady, and because the industry is still relatively young, Pandora will continue to dominate the marketplace as new entrants will have a difficult time attracting listeners away from well-established services.

When Apple releases its iTunes Radio service in September 2013, it will likely capture market share from the established players in the industry, which also include Clear Channel Broadcasting’s iHeartRadio. Moving forward, concentration in the industry will remain high as new entrants will hesitate to enter the industry due to the inability of major players to operate profitably.

In the five years to 2018, the Internet Radio Broadcasting industry is anticipated to grow. Growth will slow, compared with the previous five years, as internet radio usage becomes more saturated. However, rising disposable income will increase the number of internet radio subscribers. Economic growth will also bolster advertising expenditure. As subscription and advertising revenue grows, IBISWorld expects industry profitability to moderately increase. Nevertheless, without music royalty reform, it will be difficult for the industry to achieve significant profit growth.

For more information, visit IBISWorld’s Internet RadioBroadcasting in the USindustry report page. Click Here.

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Online Listening Reported Soft During July

Summertime and the listening is soft.  Triton Digital has released its monthly Top 20 Ranker for July 2013.

The Ranker is a listing of the top-performing digital audio stations and networks measured by the Webcast Metrics audience measurement platform.

Pandora was once again at #1 for AAS (Average Active Sessions) for Monday - Friday 6a-8p) in the Domestic Rankings, but the number dropped from 1.7 million AAS in June to 1.656 million in July. Session starts rose from 814.9 million to 888.2 million.

Clear Channel came in second with its AAS down from 335,571 in June to 316,605 in July. The rest of the top ten remained almost entirely unchanged, with Slacker in third, followed by Cumulus, CBS Radio, NPR Member Stations, EMF Corporate, Cox Radio, ESPN and Univision, which moved into the top ten this month.

Looking at July's All Streams Ranker (M-F, 6a-8p), Clear Channel was at #1 again, but its AAS fell from 337,804 in June to 319,096. Prisa Radio stayed in second place, followed by Slacker, Cumulus, CBS Radio, NPR, EMF Corporate, Karnaval.com, Cox and ESPN.

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NYC Radio: Chris Christie Guest Hosts On WFAN

There was an extra-special edition of the “Boomer and Carton in the Morning” show Monday on WFAN 660 AM / 101.9 FM.

With co-host Boomer Esiason on vacation, co-host Craig Carton was joined in the Allstate Studio by none other than New Jersey Gov. Chris Christie.



According to the WFAN website, Christie is a frequent caller to the “Boomer & Carton” program.

This wasn’t the governor’s first time hosting alongside Carton. Known on the show as caller “Chris from Mendham,” Christie previously hosted the show on Friday, May 6, 2011.

The two put on a terrific show that day, and they managed to top their first performance Monday. The governor was a natural behind the microphone (like that came as a surprise), and his rapport with Carton made for some very entertaining radio.

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LA Radio: Michael LaCrosse New PD At KOST, KHHT

Michael LaCrosse

Clear Channel Media and Entertainment-Los Angeles has announced that Michael La Crosse has been named PD for Mainstream AC KOST 103.5 FM and Rhythmic AC KHHT HOT 92.3FM.

He starts September 23.

"After an extensive nationwide search, we’re excited that we found our new Los Angeles Program Director from within the great talent at our own company," said Andrew Jeffries, VP of Programming, CCM+E-Los Angeles.

"Given Michael’s extensive music knowledge, management experience and ability to focus on the listener, he will propel both brands to new levels of success. Michael will be a great leader for KOST and HOT, and a welcome addition to our world class Los Angeles cluster programming team."

La Crosse started his career in 2001 as a Promotions Director at WNUA, a smooth jazz station in Chicago. In 2003 he transitioned to the Programming Department as Music Director. Over the next several years, La Crosse served as Operations Manager for Chicago’s oldies station and most recently for CCM+E-Spokane.

CR&M notes from 2006-2011, Michael La Crosse worked as the Operations Manager/Program Director for WLS-FM/WZZN-FM, leading the station to its highest ratings ever (in the PPM ratings era) in 2011. Despite record ratings and revenues, the station's new owner, Cumulus Media made drastic staff cuts at the very end of October 2011 and released him.

"I’m humbled to join the amazing teams at KOST 103.5 and HOT 92.3," said La Crosse. "These stations are among the very best in their respective formats and it is an honor to be a part of them. A huge thank you to Andrew Jeffries, Clay Hunnicutt and Greg Ashlock for the opportunity to join Clear Channel Media and Entertainment Los Angeles."

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Harrisburg Radio: Ken Matthews Joins WHP For PM Drive

Ken Matthews

WHP 580, Harrisburg's Talk Radio, announced Monday that Ken Matthews will join the station as Afternoon Host, beginning Tuesday, September 3, 2013. Matthews will host weekdays from 3-6:00 p.m. EST.

Matthews frequently guest hosted on WHP 580 for previous host, Bob Durgin, who retired in early August 2013. He has extensive on-air experience, previously serving as a Morning Show Host for B104 WAEB-FM in Allentown, Pa. from the early 90's through 2006.

"I'm thrilled to be joining the WHP580 family. The WHP team is an outstanding group of broadcasters and part of a wonderful Pennsylvania community," said Matthews. "I'm looking forward to many great conversations with locallisteners on and off the radio."

"Ken is poised and talented – I'm confident he will become one of Pennsylvania’s great newsmakers during the afternoon slot on WHP 580," said Jeff Hurley, Regional Program Manager, Clear Channel Media and Entertainment Harrisburg. "He’s the perfect host to drive political discussion in Central Pennsylvania. He brings energy and excitement that’s infectious to everyone around him."

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