Seven Questions with Paul Rotella

0

Paul RotellaPaul Rotella is the President/CEO of the New Jersey Broadcasters Association, and he has a lot to say about the unique challenges facing broadcasters in the Garden State, and the challenges facing broadcasters in general. In the course of discussing his own organization’s members he makes the case for broadcasting everywhere. Check it out.


Personal information
Current company: New Jersey Broadcasters Association
Position: President & CEO
Location: Monroe Township, NJ
Place of Birth: Paterson NJ
Spouse/Kid/Personal info: Bonnie; three sons—Schawn-Paul 23; Aris 20; Billy 17
College: Seton Hall and Seton Hall Law
Favorite band or artist: Bruce Springsteen and the E Street Band; CDB; Allman Bros
Favorite movies: Patton; Godfather; Thirteen Days
Favorite books: Ian Fleming; Vince Flynn
Sports Team Preferences: Giants/Yankees/Rangers
Hobbies/Passions: Hunting/Fishing/Sailing/Writing
Causes/Charities: Catholic Charities/St. Jude’s/Salvation Army

Questions:
1. How did you get started in the business?
I received a phone call from the NJBA in February of 2008 asking me if I was interested in the Exec Director’s position. I’ve always had an affinity for broadcast going back to the days my Dad and I made crystal radios when I was 6 years old. My passion for broadcast had grown since then and having the opportunity to represent the great broadcasters from the Garden State is the honor of a lifetime!

2. What can you say about the performance of New Jersey broadcasters during Hurricane Sandy that hasn’t already been said, and what are you doing to get ready for the next such challenge?
Well, it’s hard to top what has already been said about these dedicated public servants. Broadcasters take their responsibility as first responders/first informers very seriously, often putting themselves in the liner of danger in the performance of their assigned duties, especially during a crisis. No other industry is so publically spirited and their performance before, during and after the super-storm is legendary. It was our finest hour and the public’s justifiable reliance on local broadcasters, and the proven reliability of our medium, especially radio, has been tested time and again and I am confident that we will always be there for our loyal audiences, no matter what the challenge. Looking ahead, we have instituted a free ABIP inspection program for our PEP participating member stations that will help insure a station’s readiness. Redundancy cannot be stressed enough, and our close working relationship with law enforcement and the National Guard is key to keeping a community safe and together. And working with NJOEM, DHS, FCC, FEMA, our state police and other law enforcement agencies, we are hoping to augment our emergency communications abilities with the deployment of an FM-based emergency communications and alerting service within the coming months that will have the reliability of FM radio waves as the backbone of this new and powerful system to keep the public informed and aware of potential hazards and AMBER Alerts.

3. What are the biggest issues facing broadcasters in your state?
Performance royalty fees, FM chips in cell phones and interference issues. Obviously the toxic performance tax is a major concern for all broadcasters, but especially for New Jersey, because our state relies on local radio more than most other states. In New Jersey alone, it is estimated that the performance tax would siphon off approximately $30 million from the estimated $100 million radio industry in the Garden State, and go up from there. And these new royalty fees would be on top of the millions our New Jersey radio industry already pays in royalties to artists and songwriters through ASCAP, BMI and SESAC. In these challenging economic times (or in any economic model), can any industry afford a 30% increase in net operating costs? Of course not… But, the unavoidable result of the performance tax’s passage is much more than merely wreaking economic havoc on local New Jersey radio stations. The passage of the bill would force the closing of a majority of local radio stations in New Jersey and across the country. To be sure, the prospect of enhanced opportunities for localism and outreach would be stifled immediately. Station groups and networks would be hurt, as well, and thousands in New Jersey would lose their jobs. Even more horrific, the closure of these vital broadcast outlets across the Garden State would also decimate our already ailing Emergency Alert (EAS) Warning System capabilities and pose a genuine threat to homeland security. And, as your last question correctly pointed out, we need more local emergency communication capabilities, not less. Another key issue to our growth is the introduction of FM chips in cell phones. And, by the way, the NJBA was the first state broadcaster association to endorse the concept of having the FM chip “lit” up in cell phones. This is a game changing occasion and I am proud the NJBA was a major force in helping to make this initiative a reality! And because of our short spaced radio stations and proximity to Philadelphia and NYC, we have been focused on limiting interference to our broadcast signals from any source. Our Board of Directors has shown real leadership in this area, and in many other areas of broadcast that the whole industry has benefited by.

4. What are the best things that Congress and the FCC can do to keep New Jersey broadcasters vibrant and healthy?
Continue the dialog between broadcasters, regulators and legislators. In New Jersey, we are very fortunate to have a terrific congressional delegation in Washington that really understands and appreciates the unique and critical role broadcasters’ play in our communities and the special relationship broadcasters have with their constituents. Our board members, senators and congressmen have reached out to each other in very special ways that enhance our mutual respect and effective working relationships. And we are fortunate to have a great working relationship with our friends at the FCC. I am particularly proud of the inroads we have made on the 8th Floor. All of the commissioners and staff have been very generous with their time and resources when it comes to the NJBA. Moving forward, our job is to keep ourselves available and accessible, on both sides, if we are to fulfill our mutual charge to represent and the diverse audiences and communities that we serve.

5. It must be hard to buy political advertising aimed at NJ voters with so much of the state’s population in either the New York or Philadelphia markets. What’s the impact of this on New Jersey broadcasters?
Because of our proximity to these markets, it is important for our broadcasters to promote the real benefits of advertising on local, New Jersey stations. Our broadcasters are reaching the 5th largest market in America—and more importantly, it’s where their customers and constituents gather for local news, weather, information and diverse entertainment, but it is much more. It’s a tremendous deal! That’s the beauty of New Jersey broadcasters. When savvy advertisers and politicians place advertisement buys with our NJBA Members, they get the best value and reach for their dollar. Their message is highly targeted to reach their constituents and customers in an efficient and highly effective way. Think about it: why spend all of that money to reach people who simply cannot vote for you or who are not in your local market? Plus, by supporting local stations, you are supporting your community, and helping to enhance the quality of life enjoyed by their constituents through a vibrant broadcast network.

6. New Jersey’s representatives in Washington have been doing battle over broadcast television in the state for as long as we can remember. What’s your take on the issue?
Adequate broadcast TV coverage is essential for each state. Congress and the FCC recognize it, but New Jersey has been short-changed with in this area and it is a very sensitive subject. We need to make sure that stations covering the Tri-State region adequately cover News Jersey. Of course, we are excited to be getting our own TV station soon, with our former NJBA Board Chairman Bob McAllan’ s herculean efforts to secure a TV license for Channel 3, which will be a full power, commercial TV station licensed to Middletown, offering statewide coverage for the Garden State. It’s another New Jersey first and we are proud of Bob’s ingenuity and industry in making this prospect a reality. It’s an exciting time in New Jersey broadcast history and is definitely good for all of New Jersey and the NJBA!

7. Is there any question you’d like to answer that we forgot to ask?
Each year, our membership participates in a unique and valuable public interest media campaign that has historically been made available only to a select few non-profit organizations, but mostly government agencies, like the New Jersey Army National Guard, United States Coast Guard, DEA, NJDAG, DCA; AG: NJOEM, NJMHFA, USDJ, NJDCA and NJDEP, all of whom recognize the need to reach the diverse and growing New Jersey metropolitan radio and television audience. These public education programs (PEP) campaigns save New Jersey taxpayers millions of dollars while realizing high impact messaging goals across the Garden State. The goal of this proposal is to promote, reinforce and generate overwhelming public awareness of a department or agency’s mission and message through the continuing private/public partnership between the NJBA and the state. All of our members will participate in these campaigns. ROS rotation is secured on all member participating stations, and the value received is significantly in excess of five times this sponsorship amount and has saved New Jersey taxpayers well over a million dollars! This year, the NJBA’s PEP program is being utilized by our state and federal government very successfully by the DCA, DEA, NJ Army National Guard, US Coast Guard, NJHTS, NJPN, NJ Housing and Mortgage Finance Agency, NJAG’s Office, USDJ, Partnership for a Drug Free New Jersey, NJ Prevention Network and NJOEM. Our PEP program can help promote such important New Jersey initiatives as improving and enhancing our state’s image and branding, economic development programs and business opportunities, and can offer unparalleled support of many of law enforcement’s crime prevention initiatives provide every segment of our population with vital information and guidelines to help prepare for general public emergencies working through the State Police, NJOEM and NJDHS.