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Volume 24, Issue 119, Jim Carnegie, Editor & Publisher
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Tuesday Morning June 19th, 2007
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Radio News ®
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 Mr. Gonzales, tear down this merger
The proposed merger of DARS companies XM and Sirius found another obscure source of support, from an organization called WIPP. You've heard of it? No? That would be Women Impacting Public Policy, who think the merger would be good for small businesses, women and minorities. The loyal opposition to the merger also found voice, in the form of a letter to AG Alberto Gonzales, FCC Chair Kevin Martin and FTC Chair Deborah Platt Majoras, signed by a bipartisan group of no less than 72 US Representatives. "On the face of it," they wrote, "we believe that sanctioning the marriage of the only competitors in the satellite radio market would create a monopoly which would be devastating to consumers." The letter notes the anti-monopoly safeguards put in place by the FCC at the outset of the DARS license grants, and notes the questionable behavior exhibited by the two companies since. "Present circumstances do not warrant the FCC's complete reversal of its conclusions in the satellite radio licensing decision, or the consumer benefits and protections that have resulted from that decision...We call on the Department of Justice, the FCC and the FTC to protect consumers, and protect competition, by denying this merger." Gene Green (D-TX) and James Sensenbrenner (R-WI) led the effort.
RBR observation: As one source noted, the list of signatories goes all the way from Dennis Hastert (R-IL) to Dennis Kucinich (D-OH). Although weighted toward the Democratic side of the aisle, key Republicans, in particular actual radio operator Greg Walden (R-OR), contributed their John Hancocks from the Republican side. In all, 47 Democrats and 25 Republicans signed the letter. Note that the group did not say "consider the proposal carefully" or "it faces a high hurdle." The group flatly said the proposal should be denied. The statement can't be much stronger than that.
TNS lowers its expectations, radio bleeds
Back in January, TNS Media Intelligence was looking for a 2.6% overall gain in US advertising revenues. It no longer thinks that less-than-lofty goal is attainable, and has lowered it's prediction to 1.7%. That will be the result of a scant 1.2% gain for the first half of the year, amplified by a 2.3% pick-up in the second half. TNS's President/CEO Steven J. Fredericks said, "The advertising market has moved onto a slower track than we thought possible just six months ago. We expect the overall pace of activity will pick up slightly in the second half of the year. However, it still appears that total measured expenditures will post their smallest annual gain since the 2001 advertising recession as marketers continue to incrementally scale back their allocations to off-line media in favor of less expensive digital alternatives." Feeling the most pain, red-digit pain, will be spot TV (-5.5%), newspapers (-2.9%), BTB magazines (-1.5%) and radio (-0.3%). Internet is the only significant gainer (16%), but other outlets are predicted to do OK, such as cable network (5.9%), outdoor (4.6%), consumer/Sunday magazines (4.5%), and Hispanic media (3.7%). Expected to experience modest gains are network TV (1.3%) and syndicated TV (1.2%).
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 Internet Day of Silence
set for 6/26
In response to the 7/15 CRB-ruled royalty rate increase that, if implemented, would basically kill Internet radio in the U.S., thousands of webcasters plan to go silent next Tuesday, 6/26, to draw attention to their industry's plight, says Kurt Hanson's RAIN website: "This "Day of Silence" is an encore of a successful media event that small webcasters organized on May 1, 2002 in response to a similarly royalty rate ruling from a Copyright Arbitration Royalty Panel (CARP) five years ago. That event garnered national attention and was subsequently followed by a rate cut by the Librarian of Congress and the passage of the Small Webcaster Settlement Act for the period 1998-2005. Webcasters will be alerting their listeners that "silence" is what Internet radio may sound like. Instead, listeners will be urged to call their reps in Congress that day and to ask them to support the "Internet Radio Equality Act" (IREA) (H.R. 2060 in the House and S. 1353 in the Senate) and to call or write their local newspapers that day to ask for editorial support for the bill. The IREA would vacate the CRB's decision, while instituting an interim performance royalty rate of 7.5% of revenues (similar to the rate paid by satellite radio services) and change the standard used for future CRB proceedings to the standard typically used in other Copyright Office proceedings (which balances the needs of copyright owners, copyright users, and the general public). The bill currently has 118 co-sponsors in the House and is gathering support in the Senate. The specific "Day of Silence" date of next Tuesday was selected by members of the SaveNetRadio.org coalition. Said RAIN: "Most webcasters are planning the June 26 "Day of Silence" to begin at dawn in their time zone and end in late evening. Many webcasters are planning to shut off access to their streams entirely, while other webcasters plan to replace their music streams with long periods of silence (or static or ocean sounds or similar) interspersed with occasional brief public service announcements on the subject." Banner ads and PSAs will be available to all participating stations from SaveNetRadio.org.
Another dowry for Dow on the table?
A lot of virtual ink has been spilled on the topic of Rupert Murdoch's attempts to romance Dow Jones & Company and its cornerstone publication, The Wall Street Journal. But a coalition is coming together to form a new bidder on the block which may be able to rival the 5B George Washingtons which Murdoch has been waving at Dow stockholders. Wall Street Journal itself reported that another group of potential buyers, if not making direct eye contact, were discussing a possible bid for the iconic media company. Pearson PLC, publisher of Financial Times, and General Electric are the possible bidders. They are considering an offering which would take the company private and keep the Bancroft family on board with a minority stake. Thus far the Bancrofts have been balking at the idea of letting Murdoch have the company. If the deal comes to fruition, it would combine the Journal and Dow Jones products with FT and with GE's CNBC. Pearson has many other financial news products, including Barron's, half of magazine Economist and numerous business newspapers abroad.
RBR observation: It's not much of an auction with only one vocal person in the audience, so this must be very welcome news at Dow Jones. Nothing like another serious bidder to get a stockholder's blood flowing.
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| Wall Street Media Business Report TM |
 Take no Prisoner attitude
Terry Semel is out as the Chief Executive Officer at Yahoo! and Jerry Yang is in and ends what experts say was a long 6 year rocky road for the CEO Semel who came from Warner Brothers. This management shake-up does not surprise anyone in the internet world given the fact that Yahoo! has suffered financial troubles over the past year. But also losing market share and face to Google. Yahoo! has seen its market price slide since 2006 from 43 bucks to less than 30 dollars a share.
RBR observation: When the top dog is kicked out of the house it shows one thing about those guys in the Internet business. They take no prisoners. Heck, we know of a few radio CEO's that should be shown the exit door.
Gannett can't wait for politics to heat up
Another multimedia company is suffering from the two-year political roller coaster on the television side, and is simply suffering, period, on the newspaper side. Gannett says for the month of May, pro forma operating revenues were down 6% overall, and that it would have been even worse had the company not been benefiting from favorable exchange rates of US dollars for British pounds. Television was said to be down 8.9% on a pro forma basis, thanks to the absence of political revenue, and Q2 is pacing lower than the same period in 2006 in the high-single digits.
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Ad Business Report TM
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Arbitron releases RADAR 93 prelim data
Arbitron released preliminary findings from RADAR 93. 96% of Adults 25-54 with a college degree and an annual household income of $50,000 or above, tune into radio over the course of a week. RADAR Network affiliates (which account for over 50% of all radio stations) reach 85% of this coveted demo. They also reach 86% of adults 18-49 in households with a college degree and an annual household income of 75,000+. Radio reaches 232 million listeners over the course of the week according to the RADAR 93 June 2007 Radio Listening Estimates. This remains consistent from a year ago. The 7,100+ RADAR Network Affiliated stations reach 82% of all radio listeners. RADAR Network affiliates have consistent delivery reaching the key young and adult demographics advertisers target; they reach 84% of teens 12-17, adults 18-34 and adults 25-54. They also reach 85% of Adults 18-49. 94% of Black Non-Hispanic persons and 95% of Hispanic persons, age 12 and older tune into radio over the course of a week. Radio reaches 95% of Black Non-Hispanics and 96% of Hispanics age 25-54 over the course of a week. Radio reaches 94% of college grads age 18+. 96% of adults 18-49 with a college degree and an annual income of 75,000+ tune into radio over the course of a week. On 6/ 25, Arbitron will release the complete RADAR 93 Radio Network Audience Report results.
 Wal-Mart asks for
dismissal of Roehm suit
MarketWatch.com reported Wal-Mart Stores has asked a state court in Michigan to dismiss the lawsuit filed by fired SVP/Marketing Communications Julie Roehm contending she lives in Arkansas. Roehm, who has been at the heart of a series of accusations about ethics breaches, was fired in December after only 10 months on the job after leaving a similar high-profile position at Chrysler in Michigan. Her suit claims breach of contract and was followed by a countersuit from Wal-Mart with similar charges. Last month Roehm responded to the suit, lobbing charges of ethics breaches by a number of Wal-Mart execs, including CEO Lee Scott (6/5/07 TVBR #109), On Wednesday, Wal-Mart filed to have the entire case thrown out over confusion about where Roehm lives, according to the story. She has residences in Michigan and Arkansas, but has paid taxes from Arkansas and has an Arkansas driver's license, according to lawsuits. Wal-Mart filed the motion on the basis the complaint should have been filed in Arkansas, Simley said. What's more, her employment contract specifies that if there were a dispute it would be heard in Arkansas. "And, it's an inconvenient venue," Simley said, "because all of the witnesses are in Arkansas." If the judge upholds the request, Roehm's case will be thrown out of Michigan court and to continue it, she'll need to refile in Arkansas.
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| Media Markets & Money TM |
Clear Channel spins out of Ashtabula
Members of the Embrescia family are taking Clear Channel's five station cluster in unrated Ashtabula OH off its hands. The market is located in the northeast corner of the state east of Cleveland, dovetailing with other Embrescia interests not far from Lake Erie in western New York and Pennsylvania. Using the licensee name Sweet Home Ashtabula LLC, the Embrescia's will be getting three stations licensed to that community, WFUN-AM, WYBL-FM & WREO-FM, along with WFXK-FM Kingsville and WZOO-FM Edgewood, all in Ohio. The price is 3.55M cash. James Embrescia's Media One Group and Media II Group in Jamestown NY and Russell PA.
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| Washington Media Business Report TM |
Key senators press FCC for swift Tribune assessment
The proposed Sam Zell/ESOP acquisition of Tribune Company is pending, with a major sticking point in the form of five broadcast/newspaper cross-ownership platforms which have been challenged by various watchdogs. A trio of heavy hitters in the US Senate have fired off a letter to FCC Chairman Kevin Martin asking for expeditious consideration of the transaction. While the trio stops short of renewing the waivers/grandfather clauses which allow the combinations to exist, their call for swift FCC action will at least get all the cards on the table as soon as possible. And here's the best news for Zell: The trio are all Democrats, the most likely to object to such a merger. Hometown legislator Dick Durbin (D-IL) was joined by Chuck Schumer (D-NY) and Majority Leader Harry Reid (D-NV) in writing the letter.
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| Internet Media Business Report TM |
 Slacker, Pandora want internet radio in cars
The Wall Street Journal wrote yesterday on the move to get Internet radio into the mainstream and into cars. Slacker Inc.'s 36-year-old founder Celite Milbrandt demonstrated his mobile service for potential investors at the annual Consumer Electronics Show and ultimately raked in an additional 40 million in investments for his company. "Start-ups are racing to move Internet radio, largely listened to via computers, into mobile products. Portability could make Internet radio operators a greater threat to the traditional radio industry. The next big goal is integrating Web radio into car dashboards. Two companies -- Slacker and Pandora -- say they're talking to auto makers in Detroit," WSJ said. More excerpts from the story:
| Read More... |
RBR observation: Seems Slacker is just a cheaper version of satellite. The real deal is when consumers can get stable internet audio on their car stereos, and choose whatever existing streaming stations they wish-from Melbourne, Australia to Melbourne, FL. Consumers want internet in the car, they want thousands of streaming choices, not just music channels tailored to their tastes. We have iPods for that. Certainly, the appeal of internet radio includes terrestrial and internet-only stations in other cities with personalities, production and imagination. Song after song after song with no on-air talent isn't even what satellite radio has acquiesced to. Listeners appreciate talented MDs and on-air talent that can take them through a musical adventure--live. We need more WiFi/WiMax zones to make this happen, or more efficient/reliable, less expensive services from the major cellular providers. It's all coming, but we don't see Slacker and Pandora as offering anything by their own specific, albeit user-tailored channels-like satellite. Of course, the new CRB rates, if left unchecked, will likely kill all of this, altogether!
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| Ratings & Research |
Crawford Broadcasting signs for PPM in Chicago
Arbitron announced Crawford Broadcasting Company has entered into a multi-year agreement for the PPM service when the PPMTM system is deployed in Chicago, starting in January 2008. Crawford Broadcasting owns four FM stations in Chicago and its suburbs: WPWX - 92.3 FM; WSRB - 106.3 FM; WYRB - 106.3 FM; WYCA - 102.3 FM. WPWX Power92 features an Urban Contemporary/Hip-Hop format. Beginning in January 2008, Chicago is scheduled to begin the transition to the Arbitron Portable People Meter system, along with Los Angeles and Riverside-San Bernardino. Philadelphia was the first market to make the full transition to Portable People Meter measurement in April 2007. Houston will make the full transition in July 2007 and New York will begin the transition in October 2007.
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| Transactions |
20,950 KPPC-FM Pocatello ID. 50% of InterMart Broadcasting Pocatello Inc. from James E. Martin Jr. to Patricia Woods. Cash. [File date 5/24/07.]
20,950 KSNQ-FM Twin Falls ID. 50% of InterMart Broadcasting Twin Falls Inc. from James E. Martin Jr. to Patricia Woods. Cash. [File date 5/24/07.]
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| Stock Talk |
All quiet of the Wall Street front
Reports note that there was little for investors to react to yesterday, so the Street eased up on the accelerator and slowed down a bit. To find out if your favorite stock rode this gentle current downward, or bucked the trend, check below.
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| Radio Stocks |
Here's how stocks fared on Monday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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50.23
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-0.87
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Google
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GOOG
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515.20
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+9.31
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Beasley
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BBGI
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7.75
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+0.26
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Hearst-Argyle
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HTV
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24.70
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-0.22
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| CBS CI. B |
CBS |
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33.39
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+0.16
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Journal Comm.
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JRN
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13.33
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-0.37
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| CBS CI. A |
CBSa |
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33.38
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+0.19
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Lincoln Natl.
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LNC
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72.20
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-0.04
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| Citadel |
CDL |
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6.60 |
+0.45 |
Radio One, Cl. A
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ROIA
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7.27
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-0.02
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Clear Channel
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CCU
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38.30
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+0.19
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Radio One, Cl. D
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ROIAK
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7.23
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+0.13
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Cox Radio
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CXR
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14.40
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+0.22
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Regent
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RGCI
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3.34
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-0.02
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Cumulus
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CMLS
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9.26
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-0.08
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Saga Commun.
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SGA
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10.00
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-0.02
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Debut Bcg.
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DBTB
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2.05
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+0.30
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Salem Comm.
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SALM
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11.63
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-0.01
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Disney
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DIS
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34.54
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+0.14
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Sirius Sat. Radio
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SIRI
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2.90
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-0.02
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Emmis
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EMMS
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9.70
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+0.09
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Spanish Bcg.
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SBSA
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4.44
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unch
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Entercom
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ETM
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25.18
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-0.31
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SWMX
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SMWX
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0.09
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-0.03
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Entravision
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EVC
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10.73
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+0.13
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Westwood One
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WON
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7.50
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-0.16
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Fisher
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FSCI
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50.93
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-0.95
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XM Sat. Radio
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XMSR
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11.13
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unch
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Bounceback
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 We want to
hear from you.
This is your column, so send your comments and
a photo to radionews@rbr.com
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Below the Fold
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Ad Business Report
RADAR 93 prelim data
Arbitron released preliminary findings 96% of Adults 25-54 listen to radio...
Media Markets & Money
Spins out of Ashtabula
Members of the Embrescia family are taking Clear Channel's 5 station cluster...
Internet Media Business Report
Internet radio in cars
Slacker, Pandora want it now and moving fast to prove it...
Ratings & Research
Crawford Broadcasting signs
In the Windy City for PPM...
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Stations for Sale
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Radio Print Combo NEast
3 revenue streams AM/FM
print package. Asking 1.75M
Inquiries 781-848-4201 or
e-mail: salesgroup@beld.net
WEB radiostationsforsale.net
New Denver, CO Metro FM
Interested Parties Please Contact:
Todd W. Fowler,
President American Media
Services - Brokerage, LLC
843-972-2200,
tfowler@ams.fm
 Market your Stations For Sale
in our daily epapers.
Contact
June Barnes
jbarnes@rbr.com
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More News Headlines
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Senate panel set to get violent next week
Tuesday next, 6/26/07 at 10AM, is now on the schedule of the Senate Committee on Commerce, Science and Transportation. And the topic is bound to bring out the finest oratory the assembled senators can muster: "Impact of Media Violence on Children." We expect to hear some of the details of the upcoming bill from Sen. Jay Rockefeller (D-WV). The FCC issued a hurried report earlier this past spring on the topic, suggesting that Congress was well within its rights to come up with some kind of legislation restricting violent content on the nation's airwaves. The FCC noted that any such legislation would have to be narrowly tailored to get around First Amendment concerns, and was conspicuously short of details as to just how that task was to be accomplished. Rockefeller has taken the anti-violent mantle from retired Sen. Fritz Hollings (D-SC), who tried for years to push bills through Congress to no avail. According to reports, one of the options favored by FCC Chairman Kevin Martin, a la carte cable channel menus, will not be part of Rockefeller's bill.
RBR observation: We fully expect that anything Rockefeller comes up with will follow the Hollings efforts onto the legislative slag heap. The hearing should provide plenty of entertainment - senators and witnesses will be able to indulge in lurid descriptions of all types of mayhem - but they will not have any credible evidence linking broadcast violence directly to real violence, and lacking that, the Constitution will easily prevail over this misguided effort at playing national nanny.
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RBR Radar 2007
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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Legislators Wonder
What makes XM/Sirius so Special
The proponents of the XM/Sirius merger found an expert to support the case for allowing the transaction to go through in the person of Thomas Hazlett, who was once the Chief Economist for the FCC. The National Association of Broadcasters, unsurprisingly, takes exception.
RBR observation: Broadcasters have been forced to "restrain this new service" to make sure that the two licensees did not encroach on broadcast territory in violation of their charters. That means keeping them away from local content. The satellite licenses were designed to have a national scope, while leaving local content to companies that have local staffing who will actually be around in a time of emergency, and who have some knowledge of local events, tastes, weather, traffic, etc. On top of that, the satcasters required somebody to police them as they played fast and loose with terrestrial repeater siting and receiver specs. We still find it difficult to believe that this proposed merger is going to make it anywhere near the finish line.
06/18/07 RBR #118
Some think Radio is messed up
MG needed fresh TV blood
to avoid red ink
Media General (MG) brought in 75.4M in May, up 2.8% over the results from the same month in 2006. However, the upswing was due to the addition of four new NBC affiliates last summer. Take them out of the equation and the ink was red. A triple low in Tampa was also cited as a particular problem as the Tampa Tribune, WFLA-TV and website TBO.com all experienced difficulties.
TVBR observation: Bottom line and many in TV take this as a lesson of old line not moving to keep up with the new times and we are not talking newspaper St. Pete Times. First, the Tampa Tribune has seen an upper management swinging door more than a slamming screen door in a Florida hurricane. The Trib is so thin that even the birds in a cage don't want it. It boils down to Content and Presentation at the Trib as that is their first of many issues. Their website is not consumer friendly. WFLA is an NBC affiliate and at the mercy of the networks programming but that is only one half of MG's problem as their content, as all TV owners have to take a lesson from Nexstar, - Cut your Retran deals and get your network and local programming HD content on all providers.
06/18/07 TVBR #118
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New Listing
Local Sales Manager
KFAN, Twin Cities, home of the Vikings and the leader in Sports radio has opening for a Sports Leader LSM. Minneapolis-St. Paul is a Top 20 Metro market (#16) and year after year, in quality of life studies, we are listed as one of the nation's best. Have what it takes to win when in the Red Zone then join our Sports Team and KFAN-AM 1130 as we go helmet to helmet. Qualifications and where to send resume, cover letter see Radio Careers
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