January 5, 2011 Jennifer Kunkle Sirius XM Radio Inc. 1500 Eckington Place, NE Washington, D.C. 20002 RE: Proposal for Qualified Entity Set-Aside Reserved SDARS Channels from Sirius XM Dear Ms. Kunkle: Enclosed is Common Frequency’s proposal for a Sirius XM reserved channel per the FCC’s MO&O Applications for Consent to the Transfer of Control of Licenses1 adopted October 18, 2010. Sirius XM issued a request November 23, 2010 soliciting interested parties to submit a proposal according to the screening questions. Six hard copies have been provided here within and have been emailed to jennifer.kunkle@Sirius XM.com. Signed copies of the Agreement have also been duplicated. Any questions concerning the attached document can be directed to Todd Urick at todd@commonfrequency.org, or 530-848-7831. Sincerely, Todd Urick Program Director Common Frequency 1 See Applications for Consent to the Transfer of Control of Licenses, XM Satellite Radio Holdings Inc., Transferor to Sirius Satellite Radio Inc., Transferee, Memorandum Opinion and Order, FCC 10-184 (released October 19, 2010). Common Frequency, Inc. 1 Proposal for Qualified Entity Set-Aside Reserved SDARS Channels from Sirius XM Common Frequency, Inc. “California FM” Proposal Common Frequency, Inc. (“CFI”) submits this proposal for request to lease one (1) Sirius XM digital satellite radio channel. Per request guidelines, proposal questions are addressed below. ---------------------------------------------------------------------------------------------------------------1. Describe your programming plan for each channel you propose to program. a. An explanation of the nature of the programming you will provide. About CFI requests one channel to carry “California FM”. California FM is a radio service in-the-works centered in the Golden State. With main studio located in San Francisco, with secondary studio planned for Los Angeles, the service embodies the spirit, diversity, and innovation of California, while aiming to have national appeal. California FM is a ground-breaking program concept pioneered by the non-commercial educational radio advocates CFI. California FM is the radio station music fans have waited years for someone to develop. But in addition to music, the format aims to reinvent educational “public radio” for a new generation. Branding The name “California FM” was aptly chosen with homage to its creative broadcast legacy, spirit of independent music, and culture: Tribute to the style of pioneering freeform FM stations: early days of KMPX, KSAN, KPPC, KMET, KZAP, Boss Radio, formative days of KROQ. Capturing the adventurousness of award-winning California college radio stations like KXLU, KFJC, KUSF, KALX, KSPC and KDVS, with tribute to west coast format pioneers such as Tom Donahue, Lorenzo Milam, and Lew Hill. Distilling the individualism that has contributed to the unique sounds—Sunset Strip garage scene, Hollywood hardcore scene, East Bay punk, sunshine pop, hyphy hip hop, 70s country rock, skate boarding, surfing, chicano oldies, The Smell, 924 Gilman, The Casbah, Free Radio Berkeley, Maximum RockNRoll Magazine, bilingual rock—and encouragement to pay it forward to nurture new movements in the current culturally sterile era. Common Frequency, Inc. 2 Giving airplay to independent artists inspired by the sound of California music innovators like Chocolate Watchband, The Screamers, Kim Fowley, Jello Biafra, Blackalicious, Dick Dale, Frank Zappa, West Coast Pop Art Experimental Band, LAFMS, The Watts Prophets, Ariel Pink. However, California FM is not only about California music. It is about the spirit of individualism, celebrating innovative modern music movements. This could encompass British glam, 60’s French Ye Ye, Afrobeat funk, NY no wave, Brazilian psychedelia, 60’s bubblegum and Jamaican soul. The magic of the channel is the format’s ability to remain accessible to the music listener without veering into areas only music anoraks would enjoy. The format is upbeat and rock-centric, with the dj playing an integral part in creating a radio program rather that playing random tracks back-to-back. This was the art of being a disc jockey before all radio was formatted. Audience California FM is an art- and style- driven lifestyle station programmed by grown up Generation X'ers and Generation Yes, rather than an industry-driven arm of record labels cross-promoting sports drinks, video games, extreme sports, and Vans Warped Tour-like concerts. For adults in later twenties and up, California FM will certainly appeal to Generation X’ers, who actually grew up partially in eras where remnants of media still existed that weren’t completely forged by focus groups and branded as “xtreme”. California FM’s legitimacy will be able to be discerned by teenagers and collegeaged adults longing for something original rather than commodified for their generation. Bridge Ratings studied radio attrition rates in persons 12-24 years old and found that this demographic is quickly turning to mp3 players and internet streaming over radio channels. 2 Bridge recommended the following to radio content providers: Add variety - more different types of music and different types of programming throughout each day. Reduce repetition Showcase much more New Music. Hire relatable personalities who can expose this age group to new music. Podcast your personalities, create blogs, eliminate the pre-recorded, imported automaton announcers. Completely embrace all of the technology available as extensions of the radio station. Re-think commercial loads, placement and production quality. For example, properly placed hour long sponsorships would enhance client brands and station image. Provide what the MP3 player cannot. California FM plans to incorporate all options. As a non-profit, California FM can afford to invest quality programming infrastructure compared to a for-profit entity attempting to fill the same niche. In this digital age, people are demanding more from broadcast services. In order for radio services to compete with personalized services like Pandora and Last.FM, radio 2 Bridge Ratings Release, How to Make Music Radio More Appealing to the Next Generation, December 2, 2005. Common Frequency, Inc. 3 needs to evolve from an mp3 jukebox or DJ-assisted jukebox to one where the aircrew provides something that customized web stream services cannot duplicate. California FM achieves this by: Turning DJs from just song announcers to musicologists. Musicologists provide artist background, music links to social movements and people, and impart their own personality and charisma into the program so people grow attached to the shows. Radio services need to evolve to provide listening interaction with a web page. California FM plans to have a playlist that allows more information on the artists and structured interaction with the DJ via the playlist. b. Will this content be exclusive to this channel or do you plan to air it in other media as well? Content on the channel will also be available in limited listening areas in California. CFI is permittee of limited coverage Class A NCE channels in Morgan Hill, CA, Marshall, CA, Atwater, CA, and soon to be Two Harbors, CA. This translates to roughly fringe coverage in San Jose, Santa Rosa, Merced, and Orange County. There is a tactical advantage for Sirius XM to have California FM programming duplication and overlap in these areas. These channels are low wattage signals (ranging from 20 to 500 watts), imparting “fringe” listening radio coverage (below 60 dBu) into specified areas. That means listening is car-only with faint coverage. These stations can promote the programming availability on Sirius XM in crystal clear reception. Considering the minimum listenership will register in Arbitron’s 1% rating in areas, we would anticipate such coverage to compel hundreds to thousands of individuals to consider purchasing satellite radio equipment due to the cross promotion. c. If available, provide names and biographies of personalities, demo tapes, and audio samples of your programs. All personalities on California FM will be recommended to have ample years of continuous on-air FM broadcasting experience before being accepted for a daytime or prime night slot. Example hosts include: Jennifer Waits a.k.a. “Cynthia Lombard” has been a college radio DJ pretty much non-stop since 1986. She has hosted the show Too Cool for School at KFJC (San Francisco Bay Area) since 1999 and before that was on the air at KSPC, WBGU, and WHRC. Her show currently incorporates not only experimental and underground artists with rock, jazz and pop leanings; but will also include spoken word, educational oddities (from wine records to bowling instruction), poetry, and international music from the past and present. Female artists are strongly represented, from jazz divas to experimental geniuses, to riot grrrl mainstays. Carolyn Keddy a.k.a. “Carolyn” has been a DJ for 20 years at KUSF San Francisco, 4 years at WTBU, and a writer, reviewer, and columnist for the Common Frequency, Inc. 4 longest running monthly punk magazine Maximum Rock N Roll for 19 years, including 8 years as a DJ for their syndicated radio hour. Her weekly radio show features the newest in punk and garage bands, influencing Bay Area listeners tastes so much that she has been awarded “Best DJ, Terrestrial Radio” two times (2006 and 2008) by the San Francisco Bay Guardian. Brett Berg, a.k.a. “Bret B” was a DJ at KXLU Los Angeles for a decade (’98-’07) providing a uniquely skewed view skewed view on the wild, woolly world of jagged rock, soundtracks, chansons, rags, ragas and any other gloriously loud nonsense he could get his hands on. Equally idolizing John Peel, Joe Frank (KCRW), and Wolfman Jack, Bret's ridiculous reign now carries over onto his hectic and eclectic MP3 blog and podcast Egg City Radio. Nate Orman, a.k.a. “DJ Nate”, has been hosting the weekly program The Nate Show on KUSF San Francisco since 2003, a mix of jazz, beats, world music, hip hop, experimental sounds, mashups, field recordings, and more. Nate was former Production Director (’03-’08), and Program Director Emeritus at KUSF, along with serving as booker/curator/manager at CellSpace and ArtSF, an underground art/music venue. Tim Matranga, a.k.a. “Timothy J” has been one of the longest running shows— almost two decades—on KDVS, the University of California station that serves the Sacramento area. The show, Kicksville 29 BC, covers lesser-known underrated music in 1960s rock, 1960s and early 1970s R&B/soul/funk, as well as psychedelic rock of the late 1960s. Collecting records since 1980, rare psych, garage, and soul are excellent examples of underrepresented areas of potential interest for satellite radio. Beginning his eighth year at the legendary radio station KUSF San Francisco, Howard “DJ Schmeejay” has been delighting listeners and critics alike with his weekly, visceral, cinematic program, "Radiodrome". Spanning a full century of recorded music from around the world, each new song presents a whole new genre, a new era; a fresh way of looking at the way we connect things. Howard also serves as KUSF’s Co-Program Director. Above is a sampling of a roster. Others include: Two-decade KFJC host Peter “Zero Gravity”, host of KFJC’s Saturday night cult prime time show No Way Out, featuring the best raw rocknroll gems from multiple eras; Brenda Illescas, seven-year DJ of show Sin Fronterias, a mix of Latin genres without borders (rock en Espanol, Cumbia, etc); Dan Rowan, host of International Voice of Reason, for ten years on KXLU, serving up postpunk, industrial, breakcore, forgotten novelties, early electronic/moog, kraut rock, early progressive, etc. CFI is reviewing DJs from stations such as KSPC (LA-Inland Empire), KCSB (Santa Barbara), and KZSC (Santa Cruz). Eleven-year-old webradio Dublab (www.dublab.com) from Los Angeles, which has hosts on KXLU, KPFK, and KCRW, expressed interest in contribution to the project. Audio is available by request, as a produced sampling reel can be provided if Sirius XM is interested in California FM. d. For each channel you propose to program, how much content will be fresh each week? How much content will be repeated each week? Common Frequency, Inc. 5 The operation, at full capacity, will have no repeated programming, except for the reserved option of doing “best of” prerecorded and archive programming during late nights Pacific time (2 AM – 5 AM) Monday through Friday. The only repeated programming will be news segments that could average a couple minutes. The preference is for all music programming to be done live, but due to DJ scheduling constraints some first-run programming may need to be prerecorded. e. While it is not required for consideration, you may also wish to provide examples of illustrative programming that will be carried on the channels you seek to program. Programming on the channel will not be fragmented mixture. For master DJs, the art of programming a show is the segue-way. The idea behind California FM is to take an accessible track, and follow it up with something related, while then delving into something the listener would have never explored before. Take for instance the following: A track by well-known artist, DJ Shadow, followed up by Afrika Bambaataa (an Bronx originator of 80’s break-beat deejaying), followed by Afro funk artist, followed by a New York art disco/no-wave band, followed by a post-punk track with the same beat, followed by a garage rock track. Each track follows a logical stream, a sonic relationship with the preceding track, but all encompass different genres. This type of relationship is not delved into in genrespecific radio channels dedicated to one genre, nor is capable in an automated web stream service such as Pandora. The only way to provide this service is by an experienced DJ via radio service. ---------------------------------------------------------------------------------------------------------------2.State how much advertising, if any, the programming will include per average hour. Being a noncommercial nonprofit, it is within CFI’s values to minimize the commercialization of our product. However, our main concern utilizing a Sirius XM Channel would be to be able to recoup the cost associated with leasing the channel. Our NCE operation would be funded through grants, membership, and underwriting. There would be a lower and upper bound for either underwriting or advertising protocols based upon worst-case expenses: Lower Bound Plan: California FM would have two 30 second FCC NCE-type underwriting announcements placed twice per hour spaced at two evenlyspaced times during the hour. Upper Bound Plan: California FM would have drop-in advertising like the above replacing the underwriting announcements. Depending on the demands of satellite programmatic costs this could be up to 4 minutes an hour (less than half the average of commercial radio). CFI would consult with Sirius XM to determine their input, as this point is negotiable. Common Frequency, Inc. 6 In addition, California FM reserves the right to run Public Service Announcements regarding issues of health (eating right, exercise), protection of the environment (recycling, save energy), any other notices in the public interest. a. If the quantity of advertising will differ based on daypart, provide projections for how much advertising will be included in each daypart. Total advertising time will not differ per daypart, although rate and ad concentration may very. If particular talent brings in added advertising interest, we will most likely pursue hour-long sponsorships, as recommended by Bridge Ratings. b. Provide your standards and policies for accepting advertising. Underwriting shall adhere to FCC guidelines for NCE channels (Sections 73.503(d) and 73.621(e) of FCC Regulations), using the standards and sound of NPR affiliate more as a frame of reference than network underwriting on NPR, which tends to be more editorially restrictive. If drop-in advertising is used, California FM would be cautious in its advertisers not to damage the credibility of our brand. Advertisement would follow our moral code for not accepting any immoral or questionable activities (including pyramid schemes, questionable businesses, infomercial-style ads) or advertising of entities we do not fundamentally agree with (petroleum corporations), companies with exploitive models (Walmart), or activity that is illicit (fireworks) or banned by FCC regulation (tobacco). All ad contracts would include a provision that states advertisers will not discriminate on the basis of race per FCC mandate.3 c. Provide examples of potential advertisers. American Apparel, Converse, REI, Amy’s Kitchen, Quicksilver, Newman’s Own, Apple, Dr. Bronners, Etnies, Aeropostale, Ecko Unlimited, Levi's, Pac Sun, etc. Also, movie distributors, record labels, and electronics manufacturers will seek our audience. ---------------------------------------------------------------------------------------------------------------3.Explain who owns and manages the proposing entity. California FM is a project managed by Common Frequency, Inc., a registered California corporation, that additionally is an IRS sanctioned 501(c)(3), a tax-deductable non-profit entity. CFI has existed since 2006, started for the purpose of assisting community and educational institutions start licensed non-commercial educational FM radio stations. CFI has helped dozens of educational nonprofits apply for FCC-approved channels, and has engineering and legal expertise in licensing channels and building stations. CFI’s Articles of Incorporation allow us to pursue direct broadcast operations, so Sirius XM’s approval of this application is highly anticipated: The Corporation’s authority to establish radio broadcasting stations is as extensive as law permits, including, but not limited to, primary stations, low power stations, and repeater or translator units, with or without broadcast to the internet, or any similar or new electronic broadcast or streaming medium. The Corporation may 3 See Promoting Diversification of Ownership… 23 FCC Rcd 5922 (2008) Common Frequency, Inc. 7 also establish non-regulated broadcast facilities and medium, including but not limited to, satellite or cable broadcasting.4 The Articles even direct type of content the Corporation shall produce: The Corporation’s radio stations will provide broadcasting of public affairs, news, free speech discussions, music, drama, other entertainment and educational programs, and any matter substantially affecting the community, promoting cultural diversity, the arts, or giving voice to the community. To the extent possible, the programming shall be an alternative to that broadcast by commercial radio stations. The Corporation’s programming may be distributed to any broadcast entity, group, or individual, on terms determined by the Corporation and consistent with its nonprofit and tax exempt status under federal and state law. 5 a. Provide biographical information for all shareholders owning 5% or more of the outstanding voting stock, and all general partners, officers, directors and employees. CFI’s Board of Directors oversee the Corporations activities. The current board consists of: Jeff Shaw, President: Resides in Berkeley, California and works in community media as Production Manager at Davis Media Access, founder and Director of KDRT-LP, and has prior experience in radio at KVMR (FM). Clay Leander: Resides in SF Bay Area, with 20 years of production/management media experience including KPFA, Exec Director at Vallejo Access Ch 27, Alliance for Community Media, co-founder KZCT (FM), Contra Costa Telecom Task Force, and Diablo Valley Video Arts. Tracy Rosenberg: Resides in SF Bay Area, has worked as Executive Director at the 34 year-old media resource and advocacy center Media Alliance since 2007, and has served important positions at Pacifica Radio. Nadav Carmel: Resides in Oakland, California, and has had previous radio experience at Brown Student Radio, Community Radio Providence, and WMBR Boston. Kristin Koster: Resides in Sacramento area, is a PhD in French Literature, an arts activist, professional writing editor, and grant writer. Chris Marland: Resides in San Jose, California, was former General Manager of KDVS (FM), is a freelance programmer, and is on staff at KFJC (FM). Marque Cass: Resides in Sacramento area, with experience from WFHB Bloomington, and currently is Program Director for Davis Youth Media Program. Yoo-hyun Oak: Resides in Sacramento area, is a graphic designer interested in media justice and political activism. She's been involved in community radio as a DJ, volunteer, and Program Director at KDVS (FM). 4 5 CFI Article II-B-1 CFI Article II-B-2 Common Frequency, Inc. 8 CFI’s Program Director, Todd Urick, is an independent broadcast consultant with experience in submitting engineering proposals for licensing new FM broadcast facilities. In addition, he also has been legal advisor on several FM projects, filing FCC petitions, settlements, and transfers/assignments for non-profits across the US. CFI works in a coalition called Radio for People, which includes National Federation of Community Broadcasters, Prometheus Radio Project, Pacifica Radio, Future of Music Coalition, Free Press, and Public Radio Capital. However, these entities have no controlling/voting stock in CFI. b. Explain what experience the company, its owners, officers, and key employees have in producing and providing audio programming. All Directors and employees of CFI have directly produced and hosted audio programming for licensed broadcast outlets as affiliated above. California FM project Program Director would be overseen by the CFM Committee headed by Gavin Dahl. Gavin has produced syndicated non-commercial radio content, worked for KAOS Olympia and CBS-owned KPTK Seattle, volunteered extensively at KRBX Boise and KRFC Fort Collins, and is a working journalist, with stories published in Boise Weekly, Austin American-Statesman, Raw Story, and Radio Survivor. The CFM Committee will be made up of a team with experience in radio programming, management, and underwriting and/or sales. In addition, CFI has participating consultants Liz Berg, Assistant General Manager WFMU New York, and Theodore Coe, Development Director from KCSB Santa Barbara, including content producers from KFJC, KUSF, KALX, KXLU, and KSPC. On the news side, CFI has chosen Josh Wilson as a consultant. Josh is co-founder of San Francisco nonprofit Independent Arts & Media and Newsdesk.org. As professional journalist and editor, Josh has worked in various staff and contract capacities for SFGate.com, Meredith Corporation, and Wired magazine, and as a freelancer for the San Jose Mercury News, the San Francisco Bay Guardian, and other publications. CFI has also procured the professional help of Justin Beck. Justin is a media consultant, and journalism teacher at San Francisco State University. He previously worked for the San Francisco Chronicle as a multimedia producer, and as a producer, reporter and host for "Making Contact," a nationally syndicated public affairs radio show. Collectively as an entity, CFI is qualified to develop and maintain broadcast operations, as evidenced by decades of combined experience, and cred among our allies with new NCE FM radio facilities. c. Is the proposing entity an FCC license holder of one or more full-power broadcast stations? If so, please provide each station’s call sign, radio service, and location. CFI is permittee of three NCE facilities—Fac ID.’s 176797 (KXCF Marshall, CA), 176739 (KZCF Atwater, CA), 176421 (KHCF Morgan Hill, CA)—with one pending as an assignee (Fac ID 175847 Boulder Creek, CA). KZCF is a permit to be tentatively run under an LMA with the University of California. Common Frequency, Inc. 9 If needed, CFI could divest from ownership of all FM permits if Sirius XM considers the California FM proposal as a satellite channel contender but has already filled its channel quota for full-power broadcast licensees, and has open channels for nonlicensees. 6 At the time this application has been submitted, CFI holds no approval of any stations that are licensed to cover.7 Therefore, CFI is only a permittee, and not a licensee. The awarding of a non-licensee satellite channel would then be sanctioned under the FCC’s selection process (pending divestiture) since the contingency is only for licensees. d. Does the proposing entity have an attributable interest in the licensee of a full-power broadcast station? If so, please describe the nature of the interest and provide the station’s call sign, service, and location. CFI, nor any of its directors holding voting stock hold attributable interest in any other full power licenses. e. Does the proposing entity have an attributable interest in any other entity that has applied or intends to apply to program channels under this RFP? CFI, nor any of its directors holding voting stock hold attributable interest in any other entity applying for an Sirius XM channel under this RFP. ---------------------------------------------------------------------------------------------------------------4.Explain how (answer each question that applies): a. The proposed programming will provide a new source of programming in the mass media industry. A Brand New Independent Music Service California FM does not intend to duplicate anything currently available on Sirius XM or commercial radio anywhere in the United States. Select CFI members are acquainted with the many great formats on Sirius XM. We have digested the bevy of offerings of Rock, Electronic, Hip Hop, and Pop Channel selections, but have yet to hear a channel that delves into the originators and innovators of contemporary genres. There are literally hundreds of thousands of titles by artists from rock to soul that have never made it to mainstream compact disc release. If you ask any diehard record collector, they will extol the virtues of swimming in the sea of seminal recorded sounds eclipsed from general consumption by the record industry whose pursuit to market a very select number of mainstream artists has limited access to rare records. Much of the time, these represent the cream of their respective genres. With California FM on Sirius XM, listeners will have exclusive access to hundreds of thousands of rare records they wouldn’t hear anywhere else in the 6 “Sirius XM may allocate to full-power broadcast licensees no more than one half of the total capacity required to be set aside under the condition”, see Para 27, Applications for Consent to the Transfer of Control of Licenses, XM Satellite Radio Holdings Inc., Transferor to Sirius Satellite Radio Inc., Transferee, Memorandum Opinion and Order, FCC 10-184 (released October 19, 2010). 7 KXCF has applied for license to cover, but the application has not been approved as of January 2, 2010 Common Frequency, Inc. 10 world except, even if they were invited to sample a record collector’s personal stash. You’ll hear slabs of warm vinyl—the soul of real music—straight from the studio, delivered via satellite. Airplay will be accompanied by biographical information about the artists by seasoned music experts with years of on-air broadcast experience. Along with each record you’ll also hear biographical information on the artist from music experts and record collectors, and not just people hired for their voices. Along with archived vinyl, a third of the musical programming will be devoted to new artists who receive no airplay in traditional outlets. To the basic rock n roll radio fan, credible rock music died in the eighties (or even the seventies), and was briefly revived for a second in the early nineties with “grunge” music, but died shortly after the movement was co-opted by the record industry. Most people do not know that the movement went underground and has stayed there ever since. Rock n roll artists, street-level artists, and artists from new/unexposed genres release hundreds of vinyl singles and LPs every year, but you do not hear them on commercial or public radio, or for that matter, on Sirius XM. Rock movements like psychedelic, glam, punk, and new wave used to filter into the mainstream when radio used to give the “new sound” time on the radio, ushering in new eras in rock n roll. This does not happen anymore; the record industry will not take a risk for the latest “new” sound. Instead, the record industry attempts to make its own new rock genres, like by crossing rap and rock, goth and mainstream rock, hiring pretty faces to sing stale songs, creating what many true music fanatics levy as far too digitally overproduced, with artists all sounding the same. In our listening survey of Sirius XMU, Underground Garage, Alt Nation, and other channels, we were unaware of any of these artists obtaining any airplay, except possibly on the Gorilla vs. Bear show in XMU. Although we are giant fans of XMU/Left of Center, the “college music” descriptor had diverged to mean “alternative” or “indie pop” post2000, meaning it references a certain “soft” alternative rock sound that derived from band like R.E.M, 10,000 Maniacs, The Cure, and The Smiths, but now refers to their modern equivalents like Arcade Fire, The Shins, Radiohead, and Death Cab for Cutie. If you turn into a legendary college music station like KXLU, the stations do not sound similar to “college music services” that originate from commercial sources. Select freeform college stations are the last bastion of what real radio was like before the 1980’s. As in artists and musicians in music scenes doing radio. It’s 7-inch records from new bands and artists that don’t sound anything like releases currently being promoted. To that effect, an estimated 98% of the artists proposed to be played will have no overlap with any of the other Sirius XM channels. It is our mission to usher in the newest sounds in burgeoning music scenes by emerging artists on small independent record labels. This differs from simply a new music service because we are creating more than an mp3 jukebox. California FM is a west coast export built by music fans, artists, and journalists collaborating under a nonprofit with strong allegiance to refusing corporate tie-ins or music industry payola. California FM intends to encapsulate the spirit of “wild west radio” done by the best veteran college and community radio DJ’s on the west coast. It is not “amateur radio”, nor NPR “horse whisperers”; we are experienced, knowledgeable voice talents who provide more than just a voice-tracked DJ wannabe announcing alternative hits. Common Frequency, Inc. 11 A Brand New Independent News Service Besides music, California FM will employ innovative news reporting approaches. As traditional print news—an essential source of investigative journalism—disappears, new forms of alternative journalism need to evolve. California FM intends be the public radio of the “remix generation”. Current public radio entities have an aging median listener demographic (averaging in the 50’s) because they cling to the old “newscast” model and schedule half hour and full hour public affairs shows. The delivery is respectable, but also parched, unable to capture the short attention spans of today. Commercial talk radio on the other hand can be dividing, and delve into hearsay, pressing emotional buttons rather that delivering a straightforward news picture without opinionated baggage. The web generation digests audio content differently, most listening is unpinned from time. Our model mixes aggregated news briefs into a content mosaic that includes music, entertainment and interviews. This regional content would be assembled by our own team of producers and presented live in real time. The paradigm is different than public radio where content is produced by elite entities and syndicated, largely disconnected from public participation, and talk radio, in which the overall communication is spun by the presenter. Our model utilizes news from grassroots sources and through citizen-participation via the web, compiled by an executive editor to provide a unique perspective on current events. For the overall package think the edginess of Rolling Stone reporting, meets the integrity of BBC, marketed to an audience that enjoys The Daily Show with Jon Stewart. California FM will have intelligent stories on current affairs, environmental concerns, science and research via interviews with scholars, stimulating discussions with authors who are promoting new books, historical musings, and political dissection without being polarizing. Stories are dosed within music sets, within small sequences, with headlines that can be accessed for in-depth analysis by visiting California FM's real-time playlist. The playlist will include links to stories and full audio clips for on-demand exploration. b. The proposing entity is a new entrant in the mass media industry. CFI is a young start-up of four years with new ideas and qualified personnel from non-profit media operations, with no affiliation to networks including NPR and PRI, or forprofit agencies. The organization is looking for opportunities to bring forward a new paradigm in broadcasting and offer a fresh prospective on technique and DJ personality. Mass media today is afraid to take any of the steps needed or provide investment into retooling broadcast services. You hear over and over that “content is king”, and serving diverse voices with smart content is the future, but very few of the main players are stepping forward to make that a reality. In the meantime, mass media is losing audience to web-centered services, and there are few openings for new non-profit startups like CFI to pursue distributing new content forms geared towards younger generations. c. The proposed programming offers a diverse viewpoint or diverse entertainment content. CFI offers both diverse viewpoints and diverse entertainment content. Common Frequency, Inc. 12 Concerning viewpoint: CFI works with national groups such as Native Public Media, National Federation of Community Broadcasters, and Free Press; has collaborated regionally with Spanish language groups like Sin Fronteras in El Paso and Somos La Llave Del Futuro in New York, African American groups like Miller Child Development Center in San Antonio, and educational groups like the University of California and California State University. CFI is able to provide access for a spectrum of voices on a Sirius XM channel by acting as a news outlet for issues that concern Native, Mexican, Pacific Islander, Indian, African American, and other underrepresented voices. Concerning diverse entertainment: CFI is proposing some of the most diverse entertainment in commercial media with California FM. In addition, this entertainment is produced by diverse artists on independent labels, or by artists who are self-released, who do not receive airplay on any mass media sources. This will include Spanish-language independently released DIY music, inner city Hip Hop, women in rock, LGBT artists, youth, and other foreign-language independent music. The channel will look for ways to showcase these artists in either features or genre-specific shows. d. The proposed programming will provide original content. If the content currently exists in other media, where does it exist? The proposed content does not exist on any other mass media source in the U.S. except for select radio shows on freeform stations such as WFMU and other college/community radio stations with veteran DJs. These radio stations exist in very few communities, and even when they do, the station’s wattage is so low only fringe reception is available. California FM is a good sell because it has the capacity to attract mainstream listenership on Sirius XM, while being directed towards many niche and underserved audiences to which there is no identical service. e. The proposed programming is of a type not otherwise available to Sirius XM subscribers. If the programming will be directed to an audience not currently served by Sirius XM, please describe your plan to market to that audience to generate listenership. CFI has the ability to promote listenership: CFI has a relationship with roughly a dozen pending FM broadcasters in California. Through these outlets CFI can cross-promote the availability of programming on Sirius XM. California FM will have DJs who participate in record labels, clubs, blogs, magazines, and other radio stations. The ability to cross-promote exists through multiple mediums for the DJs themselves. The terrestrial radio industry is so selective in their playlists that the artists covered in music magazines rarely get played on domestic radio. The coolness factor of a new music satellite service will garner publicity from many rock magazines and blogs, allowing for cross-promotion opportunities. Common Frequency, Inc. 13 Since California FM will have the support of thousands of new artists, we will kindly ask the artists to support the channel through a grassroots movement which will extend through social networking on platforms such as Facebook, Myspace, and Twitter. The promotion could compel a whole new roster of subscribers to Sirius XM. e. The proposed programming will complement and augment existing programming available on Sirius XM. For example, Sirius XM believes that Spanish-language programming could potentially satisfy several objectives of the Qualified Entity set-aside and at the same time complement and augment existing programming. The proposed program could complement other programming on Sirius XM. The format is broad enough to turn listeners on to genres they might never have explored before. In radio services where channels are divided into sub-genres, listener fatigue on a format can occur in a matter of weeks or months. Because California FM is a lifestyle station, the music never gets old because there is a virtually endless library. Such a format will broaden a listener’s music knowledge, enabling them to explore Sirius XM sub-genre channels that they would never try before. There is a “new wave” of artists currently excluded from commercial media. For example, an anonymous award-winning veteran garage rock DJ we know previously auditioned for a Sirius underground garage channel and was turned down for being “too underground”. CFI understands that Sirius XM channels need to have widespread commercial appeal. However, the DJ was an experienced rock critic, and spins actual underground garage releases listened to by true garage rock fans, yet was excluded for being too much on the forefront of new music. California FM is an example of a music format that currently has a market. Due to terrestrial radio’s growing reluctance to take chances, innovative music has been largely excluded since the era of deregulation. Remember, stations like KROQ and 91X took chances on alien music formats back in the early 80’s; it paid off for those entities dominating the new rock genres. California FM is the next step in rock n roll, beyond services like Indie 103 and KEXP who play it safe. Such proposed music would attract listeners from the college rock, deep tracks, hip hop, garage, and alternative channels, but provide a completely different experience for the listener to get excited about. f. The proposed programming will improve service to historically underserved audiences. How have you determined that this market is underserved? What other audio services are targeted to the market? The proposed market is proven to be underserved by historical and current example: Freeform stations playing new forms of music used to exist and attract top rated listenership before station formatting. Early incarnations of freeform stations like KMET Los Angeles, KSAN San Francisco, WNEW New York, WBCN Boston, WMMS Cleveland, and KQRS-FM Minneapolis were some of the highest rated stations before the music industry changed. Today there are no commercial freeform stations, yet history shows there is a demand for them. Therefore, it remains an underserved market. Common Frequency, Inc. 14 There is an untapped market for providing an independent news outlet in the United States for younger audiences and Gen X’ers. There is no national commercial outlet that caters directly to the market except for Current TV. In radio, the Pacifica Network exists, but it is in limited markets, and is not specifically catered to younger audiences. There currently are no national services that provide the possibility of the listeners in the markets contributing content for the network. With California FM, members of the listening community will be allowed to contact the service with proposals for new shows, post online feedback, and even contribute to newsgathering. Our site aims to utilize collaboration models similar to wikipedia to build content rather than hiring many people from the top-down to complete. Since CFI has ongoing connections with organizations such as Media Alliance, NFCB, MAGnet, Reclaim the Media, Native Public Media, Free Press, Youth Radio, Prometheus Radio Project, the University of California system, and Future of Music Coalition, CFI has access to organizations who can provide input concerning underserved audiences. g. The proposing entity will be able to meet its obligations under the Channel Leasing Agreement and be able to deliver the proposed mix or type of programming for the duration of the lease term. Because most of our content will be produced in the same fashion as noncommercial radio stations produce content, California will have a lower overhead of operation compared to if a commercial operation paid DJs to provide the same content. Since the content is out there and already being produced, CFI will only need to direct participants to our central studio, fine-tune shows, and maintain professional quality output. Programming will be consistent in quality to other programming on Sirius XM. Thus, delivering consistent programming for the duration of the lease term is not a problem. -----------------------------------------------------------------------------------------------------------5. Provide a detailed financial plan for how you intend to provide the proposed programming over the term of the Channel Leasing Agreement. As part of this response, include detailed projected financial statements showing your assumptions supporting projected revenue, expenses, cash flow and balance sheet items over the term of the Channel Leasing Agreement (in Excel format.) The detailed projection of operation is included in Attachment A of the submitted hard copy. Excel file is included in emailed electronic copy. The proposed budget was contrived by a CFI associate obtaining estimates on costs in shooting for a low-overhead operation. Since CFI members have previously managed media organizations, an operation was scaled to location and the most current budget estimates. The base costs for the operation are projected to be covered by the terrestrial broadcast operation. Since quotes regarding Sirius XM service fees were not available with application, advertising revenue and satellite fee was excluded from the budget. Although, the overall capacity of staff and budget attached includes the means Common Frequency, Inc. 15 to provide for an advertising revenue plan. In addition, after year one CPB funding will be pursued and budget will adjust in following years. -----------------------------------------------------------------------------------------------------------6. If you will be relying on outside financing in connection with your proposal, please provide firm commitment letters from your lenders or investors. Sirius XM will not provide funding for applications under this set-aside. Income will be generated in-house via underwriting, listener drive, and advertising. The operation has scaled its budget to other existing terrestrial radio facilities. -----------------------------------------------------------------------------------------------------------7. Provide a timeline showing when you will be prepared to provide programming. The timeline should include interim dates for key milestones in the production process as well as the final date on which you will begin providing programming to Sirius XM. A timeline is provided in Attachment B. -----------------------------------------------------------------------------------------------------------8. If the programming you provide will include any copyrighted music or other materials, please provide evidence that you have all necessary rights from all relevant entities licensing such rights. Music proposed to be aired on California FM is licensed in conventional manner concerning the composition and sound recording. Royalties to ASCAP, BMI, and SESAC would be due. Sound recording copyright fee would be paid to SoundExchange. All other pre-produced material will be in-house, or licensed between the content provider and CFI. No material prescribed within this proposal so far needs copyright clearance. -----------------------------------------------------------------------------------------------------------9. Provide evidence that you have obtained all required corporate or committee approvals, including, if applicable, authorization of your Board of Directors relating to your proposal. Attachment C provides clearance from Jeff Shaw, President of the Board of Directors from CFI regarding approval of this proposal. -----------------------------------------------------------------------------------------------------------10. Identify any conditions or contingencies, financial or otherwise, that must be resolved in order to provide the programming and satisfy requirements of the RFP, the FCC Orders, and the Channel Leasing Agreement. CFI appears to satisfy the requirements of the RFP, FCC Order, and Channel Leasing Agreement. However, as stated in Question 3C, if needed, CFI could divest from ownership of all FM permits if Sirius XM considers the California FM proposal as a satellite channel contender but has already filled its channel quota for full-power Common Frequency, Inc. 16 broadcast licensees, and has open channels for non-licensees. 8 At the time this that application has been submitted, CFI holds no approval of any stations that are licensed to cover.9 Therefore, CFI is only a permittee, and not a licensee. The awarding of a non-licensee satellite channel would then be sanctioned under the FCC’s selection process (pending divestiture) since the contingency is only for licensees. -----------------------------------------------------------------------------------------------------------11. Provide the name, telephone number and email address of a contact person who will be available to answer questions regarding your proposal, as well as the names and telephone numbers of your financial and legal advisors and external financing sources, as applicable. CFI Contact Todd Urick Program Director PO Box 4301 Davis, CA 95617 Phone: (530) 848-7831 Fax: (530) 757-2938 todd@commonfrequency.org Attorney Alan Korn 1840 Woolsey Street Berkeley, CA 94703 Phone: (510) 548-7300 Fax: (510) 540-4821 aakorn@igc.org -----------------------------------------------------------------------------------------------------------12. Identify any other matters you deem important to provide a complete understanding of your proposal and/or certainty of your ability to perform as required under the RFP, the FCC Orders, and the Channel Leasing Agreement. If Sirius XM has any questions regarding the proposal, or any additional information they need to process this application, the most expedient form of contact is email, stating the requested materials. If the proposal appeals to Sirius XM, but there are concerns, CFI is willing to have a dialog with Sirius to minimize the issues. -----------------------------------------------------------------------------------------------------------13. Indicate whether we may accept your proposal with fewer than the total number of audio channels that you propose or whether we should consider your proposal only as a total package. One channel is requested. We would welcome any input from Sirius XM on what we could do to make CFI’s request compatible with Sirius XM’s operation. 8 9 Supra. See Note 6 Supra. See Note 7 Common Frequency, Inc. 17 Attachment A: Outlined Budget CFI BROADCAST PROJ ITERATION 2.2 (12/10) / PROJECTED CATEGORY NAME INCOME Gen Terrestrial Underwriting Membership/On-Air Fundraiser NCE Support On-Air Advertising Program Support Sirius Program Income Grants Total Support Fund Development Receipts Event Donations Online Donations (tentative) Donations Concerts Total Fund Development Receipts Receipts Workshops Fee for Service Dub Service Sales - Media Sales - Promotional Items Total Program Receipts Grants Total Receipts CA-FM Merchandising Receipts Total Real Income EXPENDITURE ALLOCATIONS CATEGORY NAME PERSONNEL EXPENSES General Manager Program Director News Director Director of Operations/CE Underwriting/Ad Director Instructor Technical Assistant Production Specialists Administrative Asst. Ed Access Interns TOTAL PERSONNEL EXPENSES FRINGE BENEFITS Insurance - Medical Common Frequency, Inc. FY (#) Ideal 161821 148835 310656 tba tba (excluded) 22731 333387 FY (#) Bare 33000 16000 4000 53000 161821 115360 277181 tba tba (excluded) 22731 299912 407 9274 33000 28567 4041 75289 1500 200 2500 100 500 4800 4000 61800 33500 428687 1500 200 2500 100 500 4800 4000 84089 33500 417501 FY (#) Ideal FY (#) Bare 59000 24000 38000 44000 33353 1355 11890 10495 12240 4000 238333 57000 22386 38000 42000 40000 1355 11890 6000 4000 222631 25000 25000 18 Insurance - Workers' Compensation Payroll Taxes Retirement Benefits OPERATIONS EXPENSES Contractor - Accounting Contractor - Legal Contractor - Payroll Insurance - Combined Perils (SPIP) Insurance - Crime Internet Service Fees Office Equipment - Maintenance Phone System - Maintenance Security System TOTAL PERSONNEL & OPERATIONS OVERHEAD Sirius XM Programming Fees TOTAL SIRIUS XM DIRECT PROGRAM SPECIFIC EXPENSES Advertising Outreach Promotions Automotive Expense Bank Fees Board/Staff Relations Charitable Contributions Community Relations Dish Network Licenses and Fees Media - onsite use Media - resale Newsletter Phone Office Supplies Photocopying Postage Printing Production Equipment - Maintenance Production Supplies Publications Staff Development Subscriptions/Dues Marketing Materials Eng Repair and Maintenance Utilities Event Fundraisers Contractor - Legal TOTAL DIRECT EXPENSES CATEGORY NAME BUILDING EXPENSES Common Frequency, Inc. 2469 20000 4500 20000 2100 500 2625 4115 263 1200 500 630 1145 60547 unknown (excluded) 2100 500 2625 4500 500 1600 500 630 1207 63662 unknown (excluded) 1000 1500 1000 1000 1549 29 1500 450 2308 1000 1000 1500 1000 1000 1549 29 1500 450 2308 1000 - - 2000 1500 500 1200 500 3000 500 2000 1500 500 1200 500 3000 500 - 1000 1000 1200 1200 1500 1500 40151 40152 6000 6000 3500 3500 500 500 74387 74388 FY (#) Ideal FY (#) Bare 19 Mortgage Payment Building - Property Taxes Insurance - General Business Utilities Contractor - Janitorial Supplies - Building Building - Annual Maintenance and Repairs Contractor - Gardening Contractor - Property Management TOTAL BUILDING EXPENSES TOTAL REAL EXPENSES Balance (1) Common Frequency, Inc. 25500 6200 2900 3000 5000 500 8000 1020 3300 55420 428687 0 25500 6200 4300 3000 5000 500 8000 1020 3300 56820 417501 0 20 Attachment B: Timeline Approximate duration for Sirius-XM program production would be one year. CFI would like to provide a stable platform for 24-hour operation. Programming would be projected to go live for beta testing a couple months before launch to provide time to remedy technical and scheduling quarks. TIMELINE Jan 20 In progress Programming Committee formed Job Descriptions Finalized Digital library procurement and legal/usage issues addressed Tech Committee Review of playlist software. Feb 15 Inquiry Programming Committee: Establish minimum host experience criteria, submission criteria, and quality control guidelines, due Mar 10 Establish program format guidelines and balance for general/diverse specialty shows due Mar 10 March 10 Post/promote openings for new hosts Post/promotion of key positions Production of “air sound” reels as demonstration of CA-FM air sound. Apr 15 Programming Model Development Researched possibilities hosts via programming listening. Researched public radio scheduling models. May 5 Technical consideration of automation and assist platforms Coordination with facilities build committee exacted. Library coordinator to report on library Committee Review program submissions Tech Committee recommends playlist protocol June 10 Declare key positions Staff-Committee Training and responsibility hand-off. Produce promo package manufacture for sponsors Connect with indie record servicing July 15 Finalize assist and automation Report on playlist, traffic, and other log requirements/Research plan Aug 10 Coordinated and trained air staff Constructed program schedule. Produce demo shows and critique for changes. Test News/music content mixtures First inquiry for sponsors Sept 15 Provide preliminary programming runs Common Frequency, Inc. 21 Obtain focused feedback, make changes Obtain final news/news-participation formula Provide report to CFI board on “Total Package”; obtain sign-off Provide testing of all computer-based systems. Oct 30 Run preliminary publicity campaign Second report on sponsor goals. Finalize record-keeping, scheduling, traffic plan. Sponsor goal #2 Nov 25 Preliminary continuous test run on internet. Feedback and air sound tweaks. Work on correcting problems Critique 2 Jan 10 2012 Sponsor goals met Go live. Common Frequency, Inc. 22 Attachment C: Approval Attachment D “Agreement” follows on next page. Common Frequency, Inc. 23 Common Frequency, Inc. 24