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Volume 22, Issue 125, Jim Carnegie, Editor & Publisher
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Monday Morning June 27th, 2005
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Radio News®
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 Big deal rumor examined
There was much excitement generated last week when Gannett CEO Doug McCorkindale acknowledged that his company had some interest in the TV properties that Emmis has for sale (6/23/05 RBR #123). That's not really surprising, since Gannett has never stopped buying media properties and is always willing to look at any decent newspaper or TV property that comes on the market. Note, though, that McCorkindale didn't bring up the Emmis possibility, but rather replied to a question asking if he was interested.
RBR observation: Before getting too excited about the potential for Gannett buying the Emmis TV stations, we decided to check into whether Gannett CAN buy the Emmis group, since the FCC's crossownership rule remains in effect. What we found was that there would have to be so many spin-offs that the deal wouldn't be worth doing. Of course, if Emmis TV is sold off piece-meal, Gannett could be a buyer. But the only way it could buy the whole thing would be to head into a drawn-out court battle alongside Tribune and Media General to try to get the crossownership rule tossed out - - with a real financial risk if federal judges don't see things its way. Due to its newspaper holdings, Gannett (so long as the crossownership rule stands) can't own the Emmis stations in Charleston-Huntington, WV, Mobile, AL-Pensacola, FL, Ft. Myers-Naples, FL, Green Bay-Appleton, WI, Honolulu, HI or Tucson, AZ - - and Portland, OR is iffy, although it looks like a detailed engineering study would OK the overlap with Gannett's Salem, OR paper. So, it seems unlikely that Gannett would bid to buy all of Emmis TV if it then has to spin-off eight of the 16 stations.
Harrison to CPB: He said, she said
"CPB needs to be in the forefront of support for public broadcasting and we look forward to supporting Pat Harrison in this important effort." This is how the Corporation for Public Broadcasting characterized the naming of Patricia S. Harrion as its President/CEO. Former CPB chair Katherine Anderson expanded on that, saying, "Pat Harrison's career exemplifies outstanding leadership. She has demonstrated great strength in coalition building. She knows Capitol Hill and is devoted to public broadcasting and the mission." These statements can be contrasted with that of Common Cause President/CEO Chellie Pingree, who said, "Patricia Harrison is the wrong person named under the wrong process with the wrong skill sets for this job. It was a drive-by hiring that should deeply offend anyone who cares about the editorial integrity of public broadcasting. The president of CPB should be someone with experience in public broadcasting. Harrison has none. The president of CPB should be nonpartisan. Harrison is the quintessential partisan, having co-chaired the Republican National Committee."
 Court reverses KOCE-TV sale
The sale of KOCE-TV Huntington Beach, CA, in the Orange County portion of the Los Angeles market, closed last November and the KOCE foundation has held the FCC license for many months, but a California appeals court has reversed a lower court ruling and ordered the sale overturned. The three-judge panel ruled unanimously that Coast Community College District was obligated to accept the highest bid, which had been by Daystar Television Network (10/17/03 TVBR #204). The appeals court has ordered the college to conduct the sale process over, or "if the district's trustees find the prospect of televangelists eventually acquiring KOCE to be too distasteful, no sale at all." Daystar's lawsuit had claimed that it was discriminated against because the college trustees didn't want to sell the PBS outlet to a religious broadcaster. Although Daystar lost when its case was first heard in a lower court (4/29/04 TVBR #84), the appeals panel agreed that favoritism, in violation of state law, steered the sale to the KOCE Foundation. In particular, it noted that the seller even reduced the price after awarding the bid to the foundation (4/14/04 TVBR #73). Coast Community College District plans to appeal the decision, so it looks like the FCC license will remain with the KOCE Foundation for a while yet. One foundation trustee was quoted by the Los Angeles Times as saying the organization might seek to have the state law changed to keep it from losing the station.
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| Passing of Two Media Legends |
 Elmo Ellis dies at 86
His broadcasting career spanned five decades, but only one set of call letters. Now a long battle with cancer has claimed Elmo Ellis, one of the true legends of broadcasting, at age 86. He put WSB-TV Atlanta on the air in 1947, but his heart was in radio and a few years later he returned to where his career began in 1940, WSB-AM, determined to show the staff that television wasn't going to put radio out of business. From 1952 until his retirement in 1982, Ellis kept a tight rein on every aspect of how WSB operated - - a perfectionist who motivated staffers to also seek perfection, leading to numerous awards, including a Peabody. "He invented modern concepts such as 24-hour local news, breaking news reports from the field and early experiments in what is now called talk radio," said WSB air personality Mike Kavanaugh in an obituary posted on the station's website. Much more about the life and career of Elmo Ellis can be found at WSBhistory.com, a site maintained by Kavanaugh.
 Shana Alexander dead at 79
She was a pioneering journalist - - the first female staff writer and columnist at Life magazine and later moved to Newsweek - - but Shana Alexander was best known to most Americans as the liberal half of the "Point/Counterpoint" segments that aired on CBS' "60 Minutes" in the 1970s. Her exchanges with conservative James Kilpatrick were often so contentious that they led to a repeated parody on NBC's "Saturday Night Live," from whence comes the famous Dan Aykroyd line (to Jane Curtin), "Jane, you ignorant slut." Although her exchanges with Kilpatrick never quite reached that extreme, millions of Americans tuned in weekly to see and hear the intellectual repartee between Alexander and Kilpatrick. Shana Alexander died of cancer Thursday (6/23) at age 79.
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Adbiz©
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P&G's Eukanuba to Wieden + Kennedy
Procter & Gamble has moved its global Eukanuba pet-food business to Wieden + Kennedy Portland from Saatch & Saatchi. P&G spent about 10.2 million in US media spend on Eukanuba in 2004, according to TNS Media Intelligence. P&G said it was impressed by Wieden's "track record of building strong relationships between brands and consumers." Saatchi & Saatchi will continue to work on such P&G properties as Iams, Folgers and Head & Shoulders. Jim Stengel, P&G's global marketing officer, has sought counsel on marketing issues from Dan Wieden, Wieden's president, in the past two years, according to the Wall Street Journal, and the companies have held meetings about working together.
 Lowe's named four finalists
Lowe's has reportedly narrowed its search for an agency for its 300 million creative and media review to four finalists. BBDO Worldwide NY, TBWA/Chiat/Day NY, Deutsch NY and the incumbent McCann Erickson will compete. BBDO and TBWA/Chiat/Day are paired with OMD; Deutsch with its in-house media service and McCann with Universal McCann. A winner is expected to be chosen by the end of July.
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| Media Markets & MoneyTM |
Starboard into Appleton, Swaggart into Nashville
Catholic radio specialist Starboard Broadcasting, which just announced the transition from LMA to O&O of WZUM-AM in Pittsburgh, has struck again. This time, it's spending 300K for WLFM-FM in the Appleton-Oshkosh WI market. The non-profit group is already represented in the general area by WJOK-AM in Kaukauna. Its stations are concentrated in Wisconsin markets, including Milwaukee, Madison, Eau Claire, La Crosse and others, along with stations in Minnesota, Indiana, Illinois and Florida. The WLFM seller is Lawrence University of Wisconsin. Meanwhile, Jimmy Swaggart's Family Worship Center Church is buying into Nashville - - not that splashy media center in Tennessee, but the small, Arbitron-free Nashville located in the southwest corner of Arkansas, north of Texarkana. FWCC will pay Don Campbell 172,684 for the station, with all but 10K coming over time pursuant to terms of a promissory note.
FCC applies CPR to WXVU-FM
The FCC has waved through the 15M acquisition of WXVU-FM by Cincinnati Public Radio, forming a noncom duopoly with WGUC-FM. The seller is Xavier University. The package includes a flotilla of six FM sisters serving unrated portions of Ohio and Michigan.
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| Washington Beat |
 FCC rejects station sale to Beasley
The FCC has said no to Beasley Broadcast Group's 850K proposed purchase of WBLA-AM & WGQR-FM Elizabethtown, NC (6/16/04 RBR #117). While the acquisition would have been OK under the contour overlap rules in effect when the application was filed last June, it was still pending when the FCC's new market definitions, based on Arbitron, went into effect last September. Beasley then filed a waiver request, stating that it was an "aberration" that WGQR-FM was listed as being in the Fayetteville, NC market, where Beasley already has six stations, since WGQR "fails to place a 70 dBu signal over any part of the Fayetteville Metro" and didn't have a reportable audience in the metro Arbitron ratings. But FCC Audio Division Chief Peter Doyle rejected that argument, saying that what mattered was that BIA had listed the station as being home to the market - - and while BIA no longer lists WGQR in the Fayetteville market, the FCC's new rules require a two-year waiting period after such a change before a previously prohibited transaction can take place. Doyle said Beasley faced a "high hurdle" to prove that a waiver would serve the public interest and didn't clear it. But he also noted that Beasley can come back and try again once the two-year period has run its course.
CBS holds the line against Super Bowl challenge
KCBS-TV Los Angeles awarded a prize valued at 8.55K to Judy and John Estrin, a pair of lucky winners. The prize was a trip to the 2004 Super Bowl. But the Estrins soon decided that maybe they weren't so lucky after all - - according to their calculations, the prize was worth only a bit more than 4.2K, subjecting them, they feared, to a sizable tax hit. However, CBS was able to document that it had in fact paid exactly that much to Map Marketing and Incentives, which arranged the trip. Of that, 6,575 went to vendors supplying elements of the prize package, and 1,975 represented the fee CBS paid for MM&I's services. The FCC said all parties acknowledged that there was an arm's length relationship between CBS and MM&I. The FCC determined that the 8.55K constituted a fair retail valuation of the prize - - in fact, it was considerably less than MM&I charged for similar packages - - and that CBS was completely innocent of any misrepresentation. Complaint dismissed.
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| Programming |
 Joyner moves across the dial today in Detroit
Friday was Tom Joyner's last show carried by Clear Channel's WMXD-FM 92.3 Detroit. Today, he debuted on Radio One's WDMK-FM 102.7, replacing John Mason, who moved to afternoons, 2-4 p.m. As well by now, Radio One has likely swapped WDMK's frequency with its stronger sister, Urban WDTJ-FM at 105.9. WMXD plans to audition weekly replacements for 10 weeks, replacing the morning slot.
Doug Stephan fights
Supreme Court property ruling
Good Day host Doug Stephan is outraged over the Supreme Court ruling Thursday that allows local governments to seize private homes, land, and businesses for economic development. "This is taking eminent domain too far. It's one thing to force the sale of property - at fair market price - to construct public highways and other projects that benefit everyone... it's quite another thing to allow a local government to force people out of their homes and off land their families may have owned for generations... to benefit a hotel chain that wants access to prime water-front acreage. This is unbelievable!" Stephan says. Stephan says he's taking the fight to the airwaves, motivating his peers in talk radio and his listeners to have this ruling overturned. Doug Stephan said on Good Day, "This is more important than the war in Iraq. If we don't have the right to own property, we don't have anything. What do you think those boys in Iraq are fighting for? And now, our own court is taking away our property rights for economic development. We can't stand for this."
Celtics move to WRKO-AM
 The Boston Celtics have gone back to WRKO-AM for their new radio home in a multiyear deal. WRKO had broadcast the team's games in two previous deals during the past 40 years: 1981-87 and 1995-96. The club's previous partner, WWZN-AM, opted out of the final season of a five-year deal that would have gone through the coming season. The icing on the cake aligns the team with sister station Entercom all-sports powerhouse WEEI-AM, which includes WEEI-FM in Providence, RI and WVEI-AM Worcester, MA.
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| Ratings & Research |
Nielsen sets 3 more LPM launches
With Local People Meters (LPM) set to begin usage for real ratings this Thursday (6/30) in Washington, DC and Philadelphia, Nielsen has now announced launch dates for the last three markets in its LPM roll-out across all top 10 markets. Detroit and Dallas-Ft. Worth are now scheduled to begin using LPMs in January 2006, with Atlanta to follow in July 2006. In each case, LPMs will be in place for a three-month "preliminary period" prior to the official launch. That means that stations in Detroit and Dallas will be able to compare data from LPMs with meter/diary data from October and November before the official launch. In Atlanta, stations will be able to compare data from April and May, including the May sweep, before the July launch.
RBR observation: Will there be more protests against LPM by stations in these three markets as there have been recently in Washington, DC? Quite possibly. Two of the most vehement critics of LPMs have been News Corporation and Tribune. News Corporation has O&O stations in all three of these LPM markets-to-be and Tribune has stations in Dallas and Atlanta.
 Nielsen cites higher LPM
numbers for black-themed shows
In its latest response to allegations that Local People Meters (LPM) undercount minority viewership, Nielsen Media Research has issued a comparison of LPM and traditional meter/diary ratings for African-American viewers in Washington, DC and Philadelphia, where LPMs are due to become the sole measurement system next week (6/30). It found that six of the top 10 shows in Philadelphia, as measured by LPM, were black-themed programs, compared to only two as measured by set meters. The difference was less dramatic in DC, where one black-themed show made the LPM top 10 with African-American viewers, compared to none as measured by set meters. | View the Chart |
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| Monday Morning Makers & Shakers |
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Transactions: 5/16/05-5/20/05
And then the transaction engine came to a screeching halt. If you filed an application with the FCC this week, you were one of four to do so, and they were all single station transactions. However, the TV streak continued unbroken into its third week despite the stunningly low traffic.
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Total
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Total Deals
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4
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AMs
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1
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FMs
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2
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TVs
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1
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| Value |
10M
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| Complete Charts |
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Radio Transactions of the Week
Citadel fills on the Big Easy fringe
| More... |
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TV Transactions of the Week
New buyer queued up for Casper Mouse-house
| More... |
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| Transactions |
7M WKSY-FM New Orleans (Picayune MS) from Guaranty Broadcasting Company of New Orleans LLC (Forrest E. Mills Jr., CFO) to Citadel Broadcasting Company (Farid Suleman). 375K escrow, balance in cash at closing. Superduopoly with KKND-FM, KMEZ-FM, WDWV-FM. Buyer is also spinning off WOPR-FM & WPRF-FM to a third party. [File date 5/18/05.]
1.7M KTWO-TV Casper-Riverton WY (Casper WY) from Wyoming Channel 2 Inc., related to Equity Broadcasting Corp. (Larry F. Morton) to Silverton Broadcasting Company LLC (Barry Silverton). 1.2M for station assets and up to 500K debt assumption for associated real estate. Buyer is taking over contract from K-TWO of Wyoming Inc. (Cheryl Kaupp). Station is ABC affiliate on Channel 2. LMA 3/1/04. [File date 5/16/05.]
1.2M KFAD-FM Alexandria LA. 100% of FM Broadcasting Corporation from Arliss E. Fryar to Urban Radio Communications LLC (Kevin Wagner). Duopoly with KBCE-FM. Will terminate LMA of KFAD by Cenla Broadcasting of Louisiana. [File date 5/16/05.]
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| Stock Talk |
Blue Chips take a drubbing
Sky-high oil prices weighed on the stock markets again on Friday, especially the Blue Chip issues. The Dow Industrials fell 124 points, or 1.2%, to 10,298. Other major indices were also down, but not as much.
By comparison, radio stocks did OK. The Radio Index was essentially flat, slipping 0.033, or 0.02%, to 202.564. The big gainers were Beasley, up 5.3%, and Regent, which gained 2.9%. Entercom led the decliners, down 2.4%.
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| Radio Stocks |
Here's how stocks fared on Friday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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42.28
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-0.60
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Jeff-Pilot
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JP
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50.35
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-0.09
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Beasley
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BBGI
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14.94
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+0.75
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Journal Comm.
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JRN
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16.84
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+0.03
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| Citadel |
CDL |
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12.00 |
-0.02 |
Radio One, Cl. A
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ROIA
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13.22
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-0.08
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Clear Channel
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CCU
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31.11
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+0.01
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Radio One, Cl. D
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ROIAK
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13.24
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-0.06
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Cox Radio
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CXR
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15.44
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-0.47
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Regent
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RGCI
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5.76
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+0.16
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Cumulus
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CMLS
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11.85
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-0.12
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Saga Commun.
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SGA
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14.00
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+0.08
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Disney
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DIS
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26.04
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-0.23
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Salem Comm.
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SALM
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19.94
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-0.11
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Emmis
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EMMS
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17.89
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-0.08
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Sirius Sat. Radio
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SIRI
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5.96
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+0.08
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| Entercom |
ETM
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32.05
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-0.80
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Spanish Bcg.
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SBSA
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9.68
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+0.05
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Entravision
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EVC
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7.74
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+0.03
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Univision
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UVN
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28.00
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-0.01
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Fisher
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FSCI
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47.62
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+0.17
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Viacom, Cl. A
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VIA
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32.84
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-0.06
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Gaylord
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GET
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44.80
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+0.35
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Viacom, Cl. B
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VIAb
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32.64
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+0.07
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Hearst-Argyle
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HTV
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24.72
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-0.21
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Westwood One
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WON
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19.90
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-0.07
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Interep
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IREP
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0.46
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unch
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XM Sat. Radio
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XMSR
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33.92
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+0.62
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International Bcg.
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IBCS
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0.01
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unch
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-
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-
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- |
-
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-
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Bounceback
|
 We want to
hear from you.
This is your column, so send your comments to [email protected]
 Bravo to whomever had the forethought, vision and pure guts to put this online (6/6/05 TVBR #110). I'm supremely impressed. Not only to take an unpopular view and put it full-face, front page in front of the industry but to do so from a religious, Christian stand point. Congratulations Mr. Schwartz for having an equal amount of intestinal fortitude to send your opinion out into a world that is often unwilling to see the dangers that lie directly in their path. I wish I could tell you in person just how much I admire your strength. Thank you for giving me another stepping stone, in love and Christ, to build my life on.
Sincerely,
Melanie Sheerer
New Dominion Pictures
Suffolk, VA
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Stations for Sale
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Class A FM in Carolinas
Fulltime AM in Top 160 Market
Florida Panhandle 2 FMs, 1 AM
Louisiana AM-FM, Ranked Market
Gordon Rice Associates
(843) 884-3590 or Email
[email protected]
Upgradeable 1kw
Growing suburban
Albany, NY AM -- 199k
New solid state transmitter
New studio & automation
877-541-5250
NO BROKERS!
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May Digital Magazine
Now Available
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May Radio & Television Business Report focuses on One-On-One interviews with the money Ad Players: David Verklin, Steve Grubbs, Harry Keeshan, Jon Mandel, Ray Warren, Ira Berger, Jean Pool, Julie Roehm and others that read TVBR religiously. They're participating because they want you to know what they need to help make informed decisions. They comment on programming that they view promising for this upfront; they examine thoroughly the real issues that affect the marketplace as all are getting busy. This is a large story already and getting bigger.
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May Issue of RBR/TVBR
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RBR Radar 2005
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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Cumulus' WLTO-FM sued
over "100 Grand" contest
A woman who won a radio contest that promised the winner "100 grand" sued after Cumulus' WLTO-FM Lexington, KY gave her a candy bar (a Nestle's 100 Grand) instead of 100,000 dollars. Norreasha Gill filed a complaint claiming the station and Cumulus breached a contract to pay 100,000 to the contest winner. Cumulus offered her 5,000, Gill said. "I said Iwanted 95,000 more." Cumulus/Lexington OM Robert Lindsay didn't return calls by deadline. RBR observation: FCC rules on contesting are pretty strict, and precedents set will make it pretty hard for Cumulus to get out of this one. Cumulus this is gonna cost ya. 06/24/05 RBR #124
Tribune's Mullen has hopes for PPM, but no love for LPM
You're not likely to hear Tribune Broadcasting President Pat Mullen say anything good about Nielsen's Local People Meters (LPM). by the end of this year the ratings impact of LPMs will have cycled through in New York, LA and Chicago, where Tribune's stations have suffered from what he claims is LPM's undercounting of young demos. Mullen is hopeful to see TV ratings move to a passive device, such as the Portable People Meter (PPM) that Arbitron is currently testing in Houston. Publisher observation: No matter what the future holds the consumer is in control and nobody in the media or media research will ever get 100% cooperation but you can get a higher rate of participation if you adjust your incentive program to today's consumers spending habits. Don't understand - then give us a call and we'll explain. This is not brain surgery. 06/24/05 RBR #124
TV One signs Time Warner
Just days after launching on a single Time Warner Cable system in Houston, TV One has announced a long-term distribution with the MSO. TV One will be on in Charlotte, Dayton and Cincinnati by the end of this month, with launches on other Time Warner systems expected by the end of this year.
RBR observation: This is a big breakthrough for TV One. Up until now, most of its cable carriage had been on systems owned by Comcast, which is one of the major owners of TV One, along with Radio One. While there have been some deals with individual cable systems, Wall Street analysts have repeatedly asked Radio One CEO Alfred Liggins when the network would sign major deals with the MSOs - - and he's always responded that talks were underway. Now, he'll have a big deal to talk about. 06/24/05 RBR #124
Gannett sees no improvement in Q2
Q1 2005 wasn't all that impressive, but Gannett Company executives warned investors more of the same is to come. But Gannett still likes the broadcasting business. Bloomberg quotes McCorkindale as saying that the company is looking to be a bidder for the Emmis TV group that's currently up for sale.
RBR observation: Glad to see their interest in TV grows as the medium is on shaky ground. But one thing we have to mention for those who may have forgotten or never knew that Gannett was a power house in radio. Now I bet they wished they never sold. TV owners need radio to cross market. Gannett there are a number of fine radio properties that can be had all it takes is money, a long term commitment with a solid business and programming plan. Radio needs a few Gannett's back into the radio business because the radio business needs new Fresh and Experienced media blood pumped into its veins. 06/23/05 RBR #123
Journal stalking acquisitions
No doubt about it, Journal Communications is still trying to make acquisitions as other public companies sit on the sidelines. Their target are mid-market properties in both radio and television. No secret a strong interest in Emmis TV stations since Journal already has radio stations in Wichita, Omaha and Tucson. Outlook on TV pacings Journal describes the forecast as "spotty" impacted clearly by the fact that they have three NBC affiliates...and their performance in primetime is causing us some issues on pricing. Journal taking the local serious and has been focusing on news, adding some more news inventory, to make up as much of that shortfall as we can as they go through this year. 06/22/05 RBR #122
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General Manager
Small-market radio cluster in the beautiful Northwest. Dominant stations with a fantastic team with excellent benefits. If you have genuine passion apply.
See Radio Careers
President/General Manager
Schurz Communications, Inc. is seeking President/General Manager candidates for one of its network affiliated television stations. Demonstrable success required in leading strong news & sales efforts. See TV Careers
Seeking Challenge
Professional communications executive with strong international media background seeking a new challenge. Prior experience includes: CEO& COO. See Positions Wanted
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