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Music fee hikes could scuttle local WJIB (ad-free "standards" station in trouble)
Boston Herald ^ | 1/25/07 | Jesse Noyes

Posted on 01/25/2007 9:36:22 AM PST by raccoonradio

Bob Bittner coined the phrase “Easy as the breeze” serving up hits from the likes of Frank Sinatra, Bobby Darin and the Beach Boys on WJIB.

But times are not so easy now for the tiny Cambridge station, as Bittner was recently hit with huge hikes in the monthly fees he pays to play old-style hits over the air.

Though WJIB-AM (740) has always turned a small profit, Bittner said, the fee hikes from music-licensing groups BMI and ASCAP have him looking for a new way to keep the station running.

WJIB previously paid about $260 a month to BMI and $175 to ASCAP, Bittner said. But Bittner was startled when the bills came in January and BMI demanded over $1,600 and ASCAP wanted about $1,150.

The increased fees stem from recently signed industrywide contracts with BMI and ASCAP, which were negotiated by the Radio Music License Committee.

In the past, the licensing groups collected a percentage of a radio station’s revenues. But under the the new contracts, the groups issue fees based upon stations’ ratings.

Despite the increased fees, Bittner, who usually brokers airtime to keep the station running, bristles at the idea of running ads. “I know I could compromise myself and put on some trash,” Bittner said.

Under the new contracts, ASCAP and BMI collect smaller fees for talk-radio stations and stations with a cumulative audience smaller than 5,000 listeners.

BMI said it still receives the same amount of money overall from the radio industry every month, but individual stations now pay their share based on ratings. And WJIB’s ratings recently tipped the scale.

“His audience was less than 5,000 in previous years,” said Keith Meehan, executive director of the Radio Music License Committee. “That’s why he’s seeing such a tremendous increase.”

Typically, radio stations can raise their price tag to advertisers when their ratings rise. But Bittner resists the idea of sandwiching ads between the music.

Bittner said he gets lots of inquiries from advertisers, but wants nothing to do with them. “There’s lots of money to make” from get-rich-quick schemes and diet pills, he said.

The Radio Music Licensing Committee’s negotiations were centered around helping big radio conglomerates put the squeeze on small station owners in major metro markets, Bittner said - a claim Meehan rejected.

“It doesn’t benefit the largest station as compared to the smaller station,” Meehan said, adding the new method was intended to keep BMI and ASCAP out of stations’ revenues. He said Bittner has a few options: change to a talk radio format, attempt to renegotiate the contracts on his own or shed listeners.

But Bittner said he’s considering another alternative: going to a listener-supported model, an unusual move for a commercial station. Bittner said he’s checking with his attorney to see if it’s possible, but if it doesn’t work he’ll likely sell the station and move to Maine, where he owns WJTO-AM.

Bittner said he won’t air “beg-a-thons.” But if local residents want to keep hearing WJIB’s good vibrations, they might have to pony up some cash.


TOPICS: Miscellaneous
KEYWORDS: airamerica; ascap; bittner; bmi; boston; radio; wjib
Ironically enough, the higher ratings WJIB got were due to Air America's arrival in Boston in Oct. of '04. Standards station WXKS AM 1430 was one of two stations to air the libtalk format, and when the old tunes were dumped by WXKS, their listeners soon found WJIB and the ratings skyrocketed. (The same couldn't quite be said of the two Air America stations, which changed to Spanish language "Rumba" last month...)

But AAR could actually be the answer to Bittner's problem; he could air the libtalk and actually make money (not much money, but he has a very low overhead...) with a signal so close to Harvard Square some people might pick it up on their fillings! (OK, it's near Fresh Pond Parkway, actually)

Bittner used to air a show called "Let's Talk About Radio" in which he talked about the radio industry locally and nationally. While his own political views are left of center, he did say that he didn't feel Air America put out a good product...but now faced with high music licensing fees you wonder if he'll change his mind...?

1 posted on 01/25/2007 9:36:23 AM PST by raccoonradio
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To: raccoonradio

I remember "JIB" when it was FM. They played a lot of Mancini and Elevator music but the quality of their signal was so good that every audio store had all their systems tuned in.
reminds me of my salad days at Radio Shack...


2 posted on 01/25/2007 10:16:18 AM PST by Paisan
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To: Paisan

Yes--they were owned by General Electric, and were at 96.9 FM with a very good signal. 96.9 later went to formats like
smooth jazz, country, back to smooth jazz and finally talk
(Imus, Barnicle, Severin, Ingraham, Eagan and Bruade)


3 posted on 01/25/2007 10:20:35 AM PST by raccoonradio
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To: raccoonradio

Wish there was a American-Standard type station in Chicagoland. Used to be. Same phenomenon in other towns, too. Listener-sponsored and commercial-free (or, perhaps more accurately, pre-recorded-commercial-free) would be preferred, at least by me. Very pleasant driving music. Alas, like so much else....


4 posted on 01/25/2007 10:43:07 AM PST by Museum Twenty (Proudly supporting President George W. Bush - Proudly shouting "Rumsfeld '08!")
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To: raccoonradio

WJIB is a rare bird--I think Bittner may be the sole employee and he runs music he likes which he thinks other people will like, too, along with those "brokered time" shows, but no real ads. Once I literally heard him say on the air, "Cut up your
credit cards. Most of the companies are evil." I'm not
kidding...this on a station which as far as the FCC is concerned is of the "Commercial" variety.


5 posted on 01/25/2007 11:07:38 AM PST by raccoonradio
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To: raccoonradio

a reply Bob Bittner sent to a radio board (at the start
he talks about the poss. some people brought up of
him renting out cell phone antenna space on his tower):



Hello Folks: I'll leave a more detailed response when I return from WJTO in Maine where I am now. But quickly, I don't want any cell-phone stuff on the tower. The self-supported tower was not designed for such, and while cell-phone stuff looks tiny, it is all quite heavy. Also cell-hone companies have offered me a measly $1700.00 a month for such. On another question..... about salespeople... in my 16 years I've owned 740, not once has a person come to me wanting to sell! (to be a DJ, yes, many times.... sell..no).

Another poster was correct in saying that the smaller stations get lots of inquiries from get-rich-quick schemers and snake-oil/miracle cure outfits, but not much from real local businesses....especially if the aim of the station is for age 50+ people. And yet on another comment, I would not take donations 'over the phone' because credit cards would have to be used. I will not contribute to the biggest evil entities seen in America in the past 15 years....finance companies. - By the way, the amount that BMI wants is much larger than what the Herald article stated. It's really about $1927.00 monthly, not $1600.00.

Another blow to WJIB in this same month was that Radio France Int'l notified WJIB that it was ending its contract for the two hours every weekday morning. While they stated that "WJIB has been a good partner, we are having a global financial cutback." - WJIB is now music 24 hours a day Mon thru Sat; and also most of Sunday.

5,000 listeners? Don't think so... more like 18 times that much weekly.

More details later!
BB


6 posted on 01/26/2007 12:54:16 AM PST by raccoonradio
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