Volume 20, Issue 116, Your Morning Radio Industry E-Paper tm
Jim Carnegie, Publisher
Friday Morning June 13th 2003
RBR Office 703.719.9500

Radio News ®

Mel's checking his list
for underperforming Infinity sales reps
When Viacom (N:VIA) President Mel Karmazin spoke at last week's Deutsche Bank Securities Media Conference (6/2), little attention was paid to his comments about sales at Infinity Radio. After all, it was the same day that the FCC voted on new media ownership rules, so everyone was trying to sort out what the new rules meant in terms of TV dereg and radio re-reg. RBR Observation: Open message to Mr. Mel Karmazin: If you honestly believe the answer to be kicking 3,500 salespeople, do us all a favor and bang your head on the hardest surface you can find. The top of your desk will do - - forehead first, bang it now. Go ahead, I'll wait. (...tap tap tap tap...) | Full Story Click Here | RBR Observation |

XM bonds yield 12%
XM Satellite Radio (O:XMSR) has priced the new bond offering it announced last week (6/4 RBR Daily Epaper #109). The offering was increased to $175M from the planned $125M and the seven-year senior secured notes priced with a yield and coupon of 12%. The buyers also have an option to purchase an additional $25M of the notes, if needed, to cover over-allotments. The offering was managed by Bear Stearns & Co.

A station sale clears the FCC
For the first time since the 6/2 FCC vote on new media ownership rules, a pending station sale has been approved by the Commission staff. The transaction is the sale of two non-commercial FMs, which could not be affected in any way by the new ownership rules for commercial licenses, but it does demonstrate that the FCC processing staff is still processing. | Full Story Click Here |

Hal Jackson honored by ASCAP
The American Society of Composers, Authors and Publishers (ASCAP) honored radio pioneer Hal Jackson with the first-ever ASCAP Broacaster Legend Award at its 16th annual Rhythm & Soul Music Awards celebration in New York. Jackson, pictured between ASCAP CEO John LoFrumento and ASCAP Sr. VP of Licensing Vincent Candilora, was the first African-American announced in network radio and the first African-American to host an interracial show on network TV. He celebrated 60 years in broadcasting four years ago and is still heard on WBLS-FM New York.

David Brinkley
David Brinkley dead at 82
ABC says veteran newsman David Brinkley died Wednesday night at his home in Houston from complications resulting from a fall. He was 82. Brinkley retired from ABC in 1997 after a long career in broadcasting, including more than two decades as co-anchor of NBC's nightly newscast. | Full Story Click Here |

Run, Jerry, run!
Jerry Springer has a website up and running - - www.runjerryrun.com - - to gauge the level of support there may be for his contemplated run for the US Senate seat currently occupied by Ohio Republican George Voinovich. | Full Story Click Here |

Newspaper links with rural FM trio
The Baxter Bulletin, a newspaper serving Baxter County in north-central Arkansas, has extended its reach via a deal with Dowdy Communications. The paper reports it will co-produce newscasts with three Dowdy FM stations twice a day, producing newscasts of five-eight minutes at noon and at 5 PM. RBR Observation: More to this than meets the ear? Not likely. | Full Story Click Here | RBR Observation |



Adbiz ©

CMR: Q1 ad revenues up 4.9%
According to TNS Media Intelligence/CMR, Q1 was up higher than expected for the ad industry, with revenues rising 4.9% to $28.4B compared to Q1 '02. | Full Story Click Here |

Plastic plans media campaign
The American Plastics Council (APC) has launched a multimedia campaign touting the role of plastic in the medical sphere and in the manufacture of personal safety devices. Television (four spots), radio (five spots) and magazines (six ads) are all in the mix, which pushes both humorous and emotional buttons. APC says it is cutting its media expenditure budget back to $19M in 2004. It intends to cut its TV spots back to 15 seconds and use more careful targeting - - it will strive for greater efficiency while attempting to keep public awareness of its message at current levels.

Report: Cigarette makers spending more than ever on advertising
According to an FTC report released 6/12, the cigarette companies are spending more than ever in advertising and promotions: $11.2B on advertising and promotions in 2001, the last year for which such figures were available. The spending marked a 17% increase over 2000, when the industry spent $9.6B. Of course, none of that advertising was on radio or TV, where cigarette ads have been banned for decades. Despite the increase in advertising, cigarette sales dropped 3.8% from 2000 levels, the study said. Cigarette companies spent most of their money - - $4.8 billion - -on costs associated with offers such as "buy one pack, get one free."

Westwood hosts Notre Dame broadcast team lunch
L to R: Westwood One VP of Sports Larry Michael; Westwood One Play-By-Play Announcer Tony Roberts; Westwood One Color Analyst Allen Pinkett; Westwood One President and CEO Shane Coppola; MindShare/Group Broadcast Director and Senior Partner Reyn Leutz; Notre Dame Head Coach Tyrone Willingham; Westwood One VP of Mid-West Sales Robin Carretta; MindShare/Broadcast Negotiating Supervisor Meyako Robinson; and MindShare/Broadcast Buyer Carrie Schwarz.
Gearing up to top last year's comeback season for Notre Dame Football, Westwood One invited clients to a Chicago luncheon with Westwood One's All-Star Notre Dame Broadcast Team Tony Roberts and Allen Pinkett and Notre Dame Head Coach Tyrone Willingham. L to R: Westwood One VP of Sports Larry Michael; Westwood One Play-By-Play Announcer Tony Roberts; Westwood One Color Analyst Allen Pinkett; Westwood One President and CEO Shane Coppola; MindShare/Group Broadcast Director and Senior Partner Reyn Leutz; Notre Dame Head Coach Tyrone Willingham; Westwood One VP of Mid-West Sales Robin Carretta; MindShare/Broadcast Negotiating Supervisor Meyako Robinson; and MindShare/Broadcast Buyer Carrie Schwarz.

Father's Day spending edges out Mother's Day
The National Retail Federation (NRF) and RAB report according to the findings of a new NRF survey, 71.7% of Americans plan to celebrate Father's Day; those who celebrate will spend an average of $99.65. By comparison, the average consumer spent $97.37 this year on Mother's Day - - the first time Father's Day has edged Mother's Day out.
| Full Story Click Here |



Media, Markets & Money tm

Goldman Sachs invests in Tom Castro's new company
Tom Castro's new company, Border Media partners LLC, announced that two new partners have invested $15M in equity and mezzanine debt financing into the radio group. Those new investors are the Goldman Sachs Urban Investment Group and Darby-BBVA Latin America Private Equity Fund LP. With those new investments totaling $15M, Border Media has now raised $25M (including $15M in equity) in its first year of operation. RBR Observation: Radio waves don't stop at the border.
| Full Story Click Here | RBR Observation |

Doing it in Dothan with Styles
Kim Styles and Tom Dibacco are upgrading their Dothan duopoly to a superduopoly with the acquisition of WXUS-FM, licensed to Fort Rucker AL. The seller is Skyway Broadcasting, which will get $750K out of the deal. $500K of that will be a cash payment at closing. Another $225K will be in the form of a promissory note. Skyway will pocket the remaining $25K when the FCC grants a CP to take the station up from Class A to Class C3. Fort Rucker is about ten miles to the west of town at the closest point. The extra juice should enhance the value of WXUS in town, where it currently pulls steady but unspectacular ratings. It will cluster with WQLS-AM, WJRL-FM & WTVY-FM.

Closing in Charleston
Mediatrix Radio (Radio Properties LLC) has closed its $200K purchase of WQIZ-AM St. George, SC, in the Charleston market, from Faith Cathedral Fellowship. Mediatrix is headed by Eugene J. Zurlo. Broker: Robin Webster and Charity Flynn, John Pierce & Co.


Whats hot in June RBR Magazine

A look at the Urban Audience: We compare the Urban audience to national. This is an outgoing demo that spends money well above the general market in numerous out-of-home activities. We've got these stats and many more from Interep to prove it!...pg 2

Pt. IV: African-American audience issues: Is Arbitron's transition to diary and re-classification of Black Hispanics hurting some nets? It's an issue even the NRRC is concerned about...pg 10

Radio BLINK: Created as a business incubator--The Viacom dictate that created the new WNEW: "Create something compelling and exciting, something different." We talked with Infinity CEO John Sykes, Infinity President/Programming Andy Schuon and the entire Blink management team on the Blink Brainstorm...pg. 16

Traffic & Billing--Pt.II: Building a better mouse trap. We explored issues including certification, notarization of invoices, standardization and the pros and cons of each system out there from the traffic directors' perspective. We look at EDI and to the future of multimedia traffic and billing...pg 22

News/Talk: Should music stations still carry news? We talked to PDs overseeing music-intensive stations from around the country for their ideas and solutions. Also, how much news did they run at the height of the Iraq war and why?...pg 26

Media Markets and Money: Can radio soar again on Wall Street?..We asked the analysts...pg. 29

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Programming for Profit

Head for the city to hit Hispanic listeners
A miniscule 5% of the Hispanic demo is beyond the reach of Arbitron, an astounding number. This is even lower than the defining metropolitan format, Urban, which draws 7% of its audience from the gray areas on the Arbitron national map.
| Full Story Click Here |



Sales

BMI underwriting discount for RAB training
BMI has again teamed up with the Radio Advertising Bureau to reduce the tuition for AEs attending the Basic Radio Sales Course at the RAB Training Academy in Dallas. BMI's underwriting is cutting the tuition price by $100 for registrants who take the course from now through May of 2004. "BMI is dedicated to helping the radio industry grow its revenues," noted John Shaker, Sr. Vice President, Licensing, of BMI. "We believe that this program will help to develop the next wave of radio sales professionals and put them on the path to sales success through the valuable training offered at the RAB Radio Training Academy." BMI represents 300K songwriters, composers and publishers who own the copyrights to more than 4.5M musical works. It licenses those musical works for public performances by radio stations and other businesses.

NTR Tip of the day
Look at accounts that are on your National Account List...they can be worked on a local level and a lot of the time they have local budgets...contact the store manager. Source: LaDonne Craig, South Central Communications, ladonnec@aol.com, (812)424-8284


More News Headlines

* Kevin Kennedy joins Fox Sports Radio
* IBiquity details HD Radio success stories
* AFTRA at odds with Infinity AOL memo


Radio Stocks

Stocks rise again
There's not been much news lately to move the stock market, but traders have continued to push prices higher - - convinced that better days are ahead for the economy. The Commerce Department reported Thursday that retail sales were up 0.1% in May - - slightly better than the flat showing that had been expected The Dow Industrials rose 13 points, or 0.2%, at 9,167.

The Radio Index edged up 2.048, or 0.8%, to 248.784.

Entravision rose 4.2%. Clear Channel gained 2.3% and Emmis rose 1.9%.

Only one stock, Arbitron, slipped more than 1%. It was off 1.3%.

Here's how stocks fared on Thursday

Company Symbol Close Change Company Symbol Close Change
Arbitron

ARB

$35.75

-$0.48

International Bcg.

IBCS

$0.04

+$0.02

Beasley

BBGI

$12.66

-$0.01

Jeff-Pilot

JP

$42.31

+$0.13

Big City YFM $0.90

-$0.05

Radio One, Cl. A

ROIA

$17.98

--$0.02

Clear Channel

CCU

$42.83

+$0.98

Radio One, Cl. D

ROIAK

$17.91

unch

Cox Radio

CXR

$23.97

+$0.29

Radio Unica

UNCA

$0.85

-$0.01

Cumulus

CMLS

$19.02

+$0.33

Regent

RGCI

$5.76

-$0.04

Disney

DIS

$20.80

unch

Saga Commun.

SGA

$18.80

-$0.10

Emmis

EMMS

$22.31

+$0.41

Salem Comm.

SALM

$23.93

+$0.13

Entercom

ETM

$50.57

+$0.25

Sirius Sat. Radio

SIRI

$2.01

-$0.04

Entravision

EVC

$10.48

+$0.42

Small Town

STWI

$0.03

unch

Fisher

FSCI

$48.00

+$0.22

Spanish Bcg.

SBSA

$7.99

-$0.01

Gaylord

GET

$23.66

-$0.54

Viacom, Cl. A

VIA

$46.52

+$0.35

Hearst-Argyle

HTV

$25.30

+$0.32

Viacom, Cl. B

VIAb

$46.56

+$0.36

Hispanic Bcg.

HSP

$26.15

+$0.09

Westwood One

WON

$34.97

+$0.44

Interep

IREP

$2.10

+$0.34

XM Sat. Radio

XMSR

$11.31

unch

RBR Bounceback

We want to hear from you.
Speak out to your colleagues in radio on any subject affecting this business.

This is your column, so send your comments to radionews@rbr.com


International

Canadian ownership regulation following
a different fork
in the road?
While the FCC deliberated ownership issues here in the USA, the Canadian government was in the midst of its own 18-month review of policy, according to a story on webfin.com. A target date of 6/30/04 has been set for the Canadian government to come up with policy regarding cross-ownership of media.
| Full Story Click Here |


Upped & Tapped

Bridge of Horizon ship manned by Shipman
Keith Shipman has been upped to CEO/President of Horizon Broadcast Group. Shipman was a co-founder of the group back in 1999. He is filling the slot of co-founder William Ackerley, who is off to new pursuits. The third co-founder, Dan Walker, will focus of operating the group's minor league baseball team, the Boise Hawks. Shipman will continue to focus on the group's Oregon radio group, and corporate headquarters will be moved from Boise to Bend, OR.

American Blues Network names Traycee Scott VP/Affiliate Relations
American Blues Network (ABN) announced the recent appointment of Traycee Scott to the position of Vice President of Affiliate Relations for the American Blues Network. She will report directly to Owner/CEO Rip Daniels. Scott has been with ABN since its inception. She has participated in the research and development as well as the actual aggregation of affiliates. As a primary member of the ABN development and marketing team, Scott will focus on generating and developing new relationships with affiliates and related businesses.

Tony Fields joins 107.3 JAMZ/WJMZ-FM
Cox Radio today announced Tony Fields has been named Operations Manager of 107.3 JAMZ/WJMZ-FM in Greenville, SC. Mr. Fields has extensive experience as a programming executive for Radio One, Blue Chip Broadcasting, UNC Media and All Pro Broadcasting and as a programming consultant for companies including Saga Communications. Mr. Fields will begin on June 23rd and will relocate to Greenville.


Transactions

$21,200,000 KCNL-FM San Jose (Sunnyvale CA) and WMJY-FM & WKNN-FM Biloxi-Gulfport-Pascagoula (Biloxi MS, Pascagoula MS) from Chase Radio Properties LLC (Van H. Archer III) to Clear Channel Broadcasting Licenses (Lowry Mays), a subsidiary of Clear Channel Communications (N:CCU). Cash. Superduopoly in California, forming two markets under the contour overlap definition, with stations in San Francisco, including KIOI-FM, KMEL-FM, both San Francisco, & KNEW-AM Oakland; in San Jose with KSJO-FM & KUFX-FM, both San Jose; and in Monterey-Salinas, with KNOD-FM Salinas. Superduopoly in Biloxi with WQYZ-FM Ocean Springs MS, WBUV-FM Moss Point and additional overlap with stations in the Mobile market, including WRKH-FM, WMXC-FM and WNTM-AM, all in Mobile AL, forming three distinct markets using the contour overlap definition. LMA/JSA option mentioned in contract.
| More Transactions Click Here |


RBR Radar 2003
Click on these issues for Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Viacom rebounds from bad press in Wall Street Journal..no surprise Karmazin has been disappointed with Infinity radio, "will kick ass of 3,500 salespeople".. RBR Observation: So old, it's news again! Or is 'Zen Master' Karmazin setting up Wall Street for the other shoe to drop? Like, another 'Lower Expectation' on its 2nd quarter. 6/12/03 RBR#115

No thaw yet on FCC deal freeze..RBR hears that the deal freeze announced by the FCC upon its adoption of historic new broadcast ownership rules 6/2 (6/3 RBR Daily Epaper #108) may be in the cooler for quite a few weeks. 6/11/03 RBR #114

Citadel's short view is to spin out of Longview.. east Texas superduopoly is only peripherally in Longview - -RBR Observation: It's the old Spirograph configuration. 6/11/03 RBR #114

Appeals Court hands win to Sinclair; rejects Rainbow/Push attempt to recall station sale rejecting an effort by Jesse Jackson's Rainbow/Push Coalition 6/11/03 TVBR #114

Stewart, former FCC Mass Media Bureau Chief, says all stations should be doing news and public affairs or get their licenses yanked! 6/10/03 RBR #113

The Times take on Clear Channel.. How radio got left out of the party is more a tale of politics than of business. RBR Observation: Neither the New York Times nor the FCC itself seem to grasp the true implications 6/10/03 RBR #113

Hungry for superduopoly? Sea-Comm and get it! RBR Observation: Another juggernaut prevented by the new rules? 6/10/03 RBR #113

Dereg-Day: A recap one week later, the nitty-gritty as to the actions of the FCC on the historic day of June 2nd (6/3 RBR Daily Epaper #108), one week ago today. RBR Observation: The devil made them do it, if the devil is in the details, there is plenty of opportunity for deviltry. A lot of questions remain to be answered. 6/9/03 RBR #112

Group owners see mischief afoot with new market definition.. "I think with the exception of one or two bones that were thrown to very small market players, David Benjamin, CEO of Triad Broadcasting. 6/9/03 RBR #112

Senate Antitrust Subcommittee hearing date set on FCC decision mark your calendar for June 24. 6/9/03 RBR #112

Citadel spins one back in Lafayette is trying to buy KXKC-FM for $7.6M from Bonin Broadcasting RBR Observation: We won't know until we get to see the new rules. 6/9/03 RBR #112


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