HONOR YOUR SPORTSCASTER!
The Kentucky Broadcasters Association is excited to feature sportscasters in next week’s Black Friday eCast. We are asking you to submit pictures of the sportscasters at your station that you are thankful for to kba@kba.org . Along with the picture, please send their name and the school that they cover on-air.  The deadline to submit your photos is by noon on Wednesday, November 21 st .
SURVEY FOR ANOTHER GIFT CARD OPPORTUNITY!
2018 KBA Annual Conference Evaluation
The KBA values your opinion. As a result, we would like to get your feedback on the 2018 KBA Conference that was held October 8-9 at the Holiday Inn University Plaza. Your feedback is greatly appreciated and valued when looking at other conference venues and activities. For your cooperation in filling out this survey, you will be registered to win a $50 Visa Gift Card. This survey must be completed by 4:30pm (EDT November 30th to qualify for the gift card. The winner will be announced on Monday, December 3, 2018.
Thank you!

PRESIDENT'S COLUMN
HEY ALEXA
Chris Winkle
KBA President/CEO
@kbachris
As I began preparing for this week’s article about the popularity of Alexa and the net result of increased music royalties, I happened to stumble upon an article that my friend David Oxenford wrote on the same subject in his Broadcast Law Blog. Dave did such a great job articulating the subject that I asked him if I could share his thoughts with you. He graciously agreed.

HEY ALEXA – REMIND ME HOW MUCH YOU ARE INCREASING MY SOUNDEXCHANGE MUSIC ROYALTIES
In the last year, the popularity of Alexa, Google Home and similar “ smart speaker ” devices has led to discussions at almost every broadcast conference of how radio broadcasters should embrace the technology as the new way for listeners to access radio programming in their homes. Broadcasters are urged to adopt strategies to take advantage of the technology to keep listeners listening to their radio stations through these new devices. Obviously, broadcasters want their content where the listeners are, and they have to take advantage of new platforms like the smart speaker. But in doing so, they also need to be cognizant that the technology imposes new costs on their operations – in particular increased fees payable to SoundExchange .

Never mentioned at these broadcast conferences that urge broadcasters to take advantage of these smart speakers is the fact that these speakers, when asked to play a radio station, end up playing that station’s stream, not its over-the-air signal. For the most part, these devices are not equipped with FM chips or any other technology to receive over-the-air signals. So, when you ask Alexa or Google to play your station, you are calling up a digital stream, and each digital stream gives rise to the same royalties to SoundExchange that a station pays for its webcast stream on its app or through a platform like TuneIn or the iHeartRadio. For 2018, those royalties are $.0018 per song per listener (see our article here ). In other words, for each song you play, you pay SoundExchange about one-fifth of a cent for each listener who hears it. These royalties are in addition to the royalties paid to ASCAP, BMI, SESAC and, for most commercial stations, GMR.

In addition, if the station provides other content through these smart speakers, other royalty issues can arise. When a listener can ask for a certain DJ’s program at any time, the tendency for stations is to want to make it available on demand. Before doing that, stations need to get legal advice as to whether their royalties to SoundExchange cover such uses. Podcasts and other on-demand media for the most part are not covered by these royalties. Instead, to use music in podcasts, you need to directly negotiate with the publishing company that own the rights to the underlying musical composition and the record company that owns the song as recorded by a particular artist – or find some musician who owns both the words and the recording who will give you rights to their music. The same would be true for on-demand streams delivered through a smart speaker unless the program segments are at least 3 hours long and accessible only at random points within a 3 hour loop, or if the program is at least 5 hours long and made accessible for less than 2 weeks. There are nuances in these rules that need to be observed to avoid going beyond the limits of the SoundExchange license and potentially incurring significant liability for copyright infringement.
In essence, as these smart speakers grow in popularity, the business of the broadcaster providing its programming through these speakers will change. Unlike programming received over-the-air which bears no SoundExchange royalty, broadcasters growing a smart-speaker based audience need to budget to meet the costs of the sound recording performance royalty paid to SoundExchange. As the aggregate fee grow right along with the audience size, the broadcaster faces the conundrum that many pure webcasters face – that the royalties grow faster than the additional income generated from the streams as audiences increase.

Is there a solution? For talk and sports radio, there are far fewer issues as, just as long as a station has the digital rights to stream the programming that it airs, the SoundExchange royalties are generally low. But for music-intensive stations, the royalties grow and need to be dealt with. The vast majority of all digital audio services have thus far been unprofitable primarily because of royalties they have to pay. Perhaps, as broadcasters end up more and more reliant on digitally-delivered streams like those heard on Alexa and Google Home, it is time for broadcasters to consider discussions with the record labels about royalties that would perhaps include a “piece of the action” from over-the-air broadcasting in exchange for dramatically lower digital royalties at a level that would allow for a profitable operation. Something to think about next time you ask Alexa to play your favorite radio station.
EAS FORM 3 DUE BY NOVEMBER 19TH
A November date for all broadcasters to mark on the calendar is the requirement for the filing of ETRS Form Three, which gives a detailed analysis of the results of the nationwide EAS test conducted on October 3. Stations should have filed Form Two on the day of the test reporting whether or not the test was received. They now need to follow up with the more detailed Form Three report by November 19.
TRAINING FROM LBS
Today's Three Featured Videos

 Paul Weyland helps you navigate one of the trickiest aspects of sales: collecting money.

Gary Moore discusses the importance of repeat business and why you should stop trying to get customers and instead focus on developing customers for life!

John Tkac provides an absolutely LOADED session full of great sales nuggets for you to use today! In this session, he covers

▪ the question of price vs. payment
▪ the importance of advertising a dealer’s inventory selection
▪ the most vital element that must go into every auto ad
▪ the value of highlighting the dealer’s unique selling proposition AND
▪ the purpose of local auto advertising
▪ the question of price vs. payment
▪ the importance of advertising a dealer’s inventory selection
▪ the most vital element that must go into every auto ad
▪ the value of highlighting the dealer’s unique selling proposition AND
▪ the purpose of local auto advertising
This is MUST-HAVE information for every single auto sales call you make!
THE KBA PRESENTS...
Holding Your People Accountable
Without Holding Them Hostage
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One-Hour, Live MANAGEMENT Webinar

WEDNESDAY, NOVEMBER 28, 2018
(1:00 pm Eastern/12:00 pm Central/11:00 am Mountain/10:00 am Pacific)

Presented by: Jeff Schmidt
Is your biggest accountability issue compliance or communication? Accountability is about delivering on a commitment. It’s being responsible for an outcome, as well as a series of tasks. It’s taking initiative and delivering solid follow-through. Accountability should be a culture rather than just a consequence.
Learn to:
• Create a culture of results-ownership
• Motivate your team from ‘box-checking’ to inspired performance
• Identify ways YOU are getting in the way of your team’s success
Did you know you can add all team
members at your station to the eCast distribution list?
Simply send a list of all email
addresses that need to be added to  kba@kba.org
The next required monthly test will be Wednesday, November 21 @ 10:37AM (EDT) and will originate from EOC.
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Chris Winkle
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