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Volume 23, Issue 140, Jim Carnegie, Editor & Publisher

Thursday Morning July 20th, 2006

Radio News ®

Harpo gearing up
Harpo Radio General Manager John Gehron has made his first big hire for the fall launch of "Oprah & Friends" on XM Satellite Radio. Laurie Cantillo, formerly PD of KFI-AM & KGME-AM Phoenix, has singed on as Program Director for Oprah Winfrey's new radio operation. "Laurie has a passion for bringing quality news and high-impact human interest stories to radio. She is uniquely qualified to oversee programming for the 'Oprah & Friends' channel on XM," said Gehron. As PD, Cantillo will oversee original programming and direction for "Oprah & Friends" on XM channel 156, which will feature a broad range of original daily programming from Harpo Radio on a variety of topics including nutrition, fitness, health, self improvement, home, and current events. O&F (not to be confused with O&A, also on XM) programming will be hosted by popular personalities from "The Oprah Winfrey Show" and O, The Oprah Magazine, including exercise physiologist, certified personal trainer and best-selling author Bob Greene, cardiologist and best-selling author Dr. Mehmet Oz, psychologist and best-selling author Dr. Robin Smith, best-selling author and lecturer Marianne Williamson and design expert Nate Berkus, as well an exclusive weekly reality radio show with Gayle King and Oprah Winfrey. The channel will broadcast from a new state-of-the-art XM studio at Harpo Studios in Chicago.

RBR observation: Cantillo should have no problem working with all of those best-selling authors. She happens to be the co-author of a best-selling non-fiction book, "Right-Brained Children in a Left-Brained World." Re-read Gehron's quote where he states these two key words - Passion and Radio. Passion and Radio seems those two simple words just fit together and something that is missing in radio today. Remember Gehron is a pure radio pro who focuses on content and presentation. Gehron did not say XM, not Harpo XM or XM Harpo satellite radio he just said passion and radio. Our bet is that Gehron views XM as radio and Oprah just may be the key to opening the XM success lock.

|Recent says "hasta la vista, baby" to California
Regent Communications is trimming its station portfolio by selling its two markets in the Golden State. Mapleton Communications is paying 17.5 million for the 10 stations in two clusters in a deal arranged by brokers George Reed and Tom McKinley of Media Services Group. Moving to the growing Mapleton portfolio are KNNN-FM, KSHA-FM, KRDG-FM, KRRX-FM, KQMS-AM & KNRO-AM Redding and KFMF-FM, KALF-FM, KZAP-FM & KQPT-FM Chico. "This transaction represents our commitment to maximizing the value of our portfolio to the benefit of our shareholders. We intend to use the asset sale proceeds to strengthen our existing radio station platform as recently demonstrated in Peoria, Illinois and Albany, New York, while seeking strategic acquisitions that offer attractive growth opportunities in the nation's middle and small- sized markets," said Regent CEOBill Stakelin.

Internet sea anchor continues drag
on video competition bill
Ted Stevens (R-AK) was able, just barely, to get his telecommunications bill through the Commerce Committee without provisions safeguarding network neutrality, but the bill faces challenges once it reaches the Senate floor. The main thrust of the bill is to grease the wheels for telco companies to go into head-to-head competition with cable companies in the provision of MVPD service. However, the telcos...and cable...want the bill free of network neutrality provisions, but consumer and public interest groups have loud bipartisan support to preserve the open architecture of the Internet. An amendment put forward by Olympia Snowe (R-ME) and Byron Dorgan (D-ND) back in June during the Commerce Committee mark-up of the bill failed by the narrowest of margins, resulting in an 11-11 tie vote, with ties interpreted as failures. One senator, Ron Wyden (D-OR) has already put a hold on the bill, a move which raises the specter of the necessity for a 60-vote super-majority to get the bill to move. Now Snowe and Dorgan are back promising a floor fight. In a joint statement, the duo said, "Preserving Internet freedom is too important to allow a tie vote at the committee level to be the final word. We believe a majority of the Senate will vote to preserve Internet freedom, so we intend to offer our amendment on the Senate floor when the Senate takes up the telecommunications bill." They accused the FCC of dropping non-discrimination rules, setting up the possibility that a "...broadband operator could decide to become a gatekeeper, capable of determining who can get through to a consumer, who can get special deals, faster speeds, and better access to the consumer. This fundamentally changes the way the Internet has operated."

Farber leaves Arbitron board
With her company being acquired by VNU, the parent company of Nielsen Media Research, the end of this month (7/7/06 RBR #131), Radio & Records Publisher and CEO Erica Farber faced a bit of a conflict of interest from her sideline job as a member of the board of directors of Arbitron. The radio ratings company doesn't compete directly with Nielsen's TV ratings, but it is easy to see where their business interests could differ, such as the recent decision of Nielsen not to join a PPM joint venture with Arbitron and in bidding for ratings contracts oversees. But there won't be any such conflicts to worry about. Arbitron reported to the SEC yesterday that Farber has submitted her resignation from its board. "Ms. Farber's resignation was not the result of any disagreement with the Company related to its operations, policies or practices," Arbitron noted in its filing.

Food marketing to children
under scrutiny
With both the government and watchdog communities noting with concern a steady rise in childhood obesity, the role of advertising is getting a serious look. The Kaiser Family Foundation has a new study out which takes a look at how the Internet is being used. It found that 85% of the brands frequently found on television also have websites aimed at children. These sites often have games in which the children are actually interacting with a food product. They sometimes have "viral" features in which the children themselves are encouraged to email the links they are engaged with to their friends. And often, they have multiple commercials the children can watch on line. On the plus side, some of the sites include advice on a maintaining a healthy diet, but that number barely cleared the one-quarter barrier. Just over a third of the sites offer educational features unrelated to diet. Kaiser did not take an stand on the issue. VP Vicky Rideout explained, "Online advertising's reach isn't as broad as that of television, but it's much deeper. Without good information about what this new world of advertising really looks like, there can't be effective oversight or policymaking, whether by the industry or by government."

RBR observation: They don't often advertise carrots, broccoli or spinach on TV or the web, but children usually eat them all at some point during a typical week. It is the responsibility of parents to decide what goes into both the shopping cart and their children's tummies. Ever watch a parent push a cart through a supermarket with an overweight child tossing in chips and cookies seemingly at will. We would hope that advertisers will market their wares responsibly, and in the case of children, parents will exercise their duties responsibly. Should advertisers be put under guidelines or restrictions? What do you think? The Bounceback section is open...[email protected]

Ad Business Report TM

GM to discount only some models,
but no huge promo this time
GM stepped up discounts on certain models beginning yesterday, but says "there is no nationwide blowout sale ... planned" to match last summer's "Employee Discounts for Everyone" promotion, according to The WSJ. Earlier this year, GM made a shift in pricing strategy, scaling back cash-back offers and cut-rate finance promotions and try to avoid sweeping, nationwide promotions. The company's shift, led by CEO Rick Wagoner and North American sales and marketing chief Mark LaNeve, came after U.S. sales surged last summer with employee prices and then collapsing after those deals ended, said WSJ. GM's latest pricing announcement has the support of some influential dealers, the story said. GM said its latest round of discounts would run until 9/5. Among the offers: an extra 1,000 off on midsize and large pickups in Texas, California and Florida; 10% off the list price of 2006 Saturns; and 1,000 off midsize sport-utility vehicles such as the Chevrolet Trailblazer for company employees, supplier and dealer employees.

RBR observation: So the real push for media sales this time around should be with the local dealers. The national push will not be what it was last year, but local and regional Dealer Associations will still be wanting to get those cars off the lots. Local ads and promotions this time around. Last remember radio's local strength of the remote. Get out there and broadcast live.

US Airways to place ads on airsickness bags
US Airways plans to sell ads on its airsickness bags beginning in September. America West, which merged with US Airways last year, had the first advertisements in the industry on tray tables, the first airline gift cards and the first in-flight meals for sale. US Airways has not decided how much it will charge for the ads, and has only begun negotiating with companies that could be interested, according to The AP.

Media Markets & Money TM

Close encounter in Fresno
All Elvis? All Polka? The jury is out, but the possibility is there, as Pro-Active Communications closed on its third station, in its second market. According to brokers MCH Enterprises and Montcalm, the 2M sale of KFYE-FM Kingsburg CA by Educational Media Foundation is complete, taking the station from noncommercial to commercial status. MCH's Brett Miller tells us the Pro-Active COO Greg Mack is responsible for the All Elvis speculation, and CEO Jerry Clifton put forth the All Polka proposal. Pro-Active's other two stations are in the Spokane WA market.

Washington Media Business Report TM

NAB pushes FM translators for AMs
The National Association of Broadcasters is asking the FCC to consider a rulemaking to help upgrade the AM stations. It would like for them to be allowed to fill in gaps in coverage of their licensed contours via the use of FM translators. NAB notes that under the proposal there would be no new service provided above what is intended now. Original programming would not be allowed, and the AMs would have to limit their use of the translators to the areas within their 2 mV/m daytime contour. They would also have to avoid interference with stations already licensed to the FM band. It would be used to fill in gaps caused by obstruction signal interference (mountains, buildings) and electrical interference (power lines, traffic signal sensors). It would also, in many cases, allow the stations to add nighttime service. NAB notes that AM stations are often a primary source of local programming, so the proposal will be a way of promoting diversity and localism. Also, with the prospect of an even longer period of daylight savings time looming, it may be necessary to spare daytimers the loss of an hour of crucial morning drive airtime.

Internet Media Business Report TM

Fraud plagues online advertising
There's a big problem when you put an ad online and pay by the click. Anybody can do the clicking, and a lot of the time, 14.1% according to the Associated Press, the person doing the clicking is not an individual interested in the product or service being advertised. Scammers are said to be responsible for phantom clicks that often, a number which is on the increase. Among the motives noted are self-enrichment, as when a website operator clicks on ads it's running, or to attack the competition, as when a rival business owner clicks on a competitor's ads to drain its marketing budget.

RBR observation: This is a pitch point broadcasters may be able to use to help stem the flow of cash from broadcast to the Internet. Broadcast waste is measured in terms of wasted impressions. However, while it may not do your client much good if a senior citizen with false teeth hears a toothpaste ad, at least the waste isn't coming right out of the client's checking account.

Transactions

7.5M KBBX-FM Omaha NE-Council Bluffs IA (Nebraska City NE) from Journal Broadcast Corporation (Douglas G. Keil) to Connoisseur Media of Omaha LLC (Jeffrey D. Warshaw, Michael O. Driscoll). 500K escrow, balance in cash at closing. Duopoly with FM CP Pacific Junction IA. [File date 6/27/06.]

500K KJLO-FM Monroe LA from New South Communications Inc,. (Frank E. Holladay) to Holladay Broadcasting of Louisiana LLC (Robert H. Holladay). Cash. Superduopoly with KRJO-AM, KMLB-AM, KRVV-FM, KJMG-FM, KLIP-FM. LMA 2/1/04. [File date 6/27/06.]

Stock Talk

Ben speaks, stocks jump
Comments on Capitol Hill by Fed Chairman Ben Bernanke that economic growth seems to be moderating and inflation remains contained cheered stock traders, who hope that means he is thinking about soon ending the Fed's rate-hiking binge. The Dow Industrials shot up 212 points, or 2%, back above the 11K mark to 11,011.

Radio stocks joined the rally. The Radio Index gained 1.009, or 0.7%, to 145.115. Journal Communications rose 3.9% a day after announcing Q2 earnings. Fisher gained 3.8%.

Radio Stocks

**Here's how stocks fared on Wednesday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		37.05	+0.40	Hearst-Argyle	HTV		20.97	+0.06
Beasley	BBGI		7.00	-0.14	Journal Comm.	JRN		10.91	+0.41
CBS CI. B	CBS		26.55	+0.05	Lincoln Natl.	LNC		55.80	+1.26
CBS CI. A	CBSa		26.55	+0.04	Radio One, Cl. A	ROIA		6.88	-0.07
Citadel	CDL		9.13	+0.23	Radio One, Cl. D	ROIAK		7.03	+0.10
Clear Channel	CCU		29.81	+0.25	Regent	RGCI		4.04	+0.16
Cox Radio	CXR		14.75	+0.31	Saga Commun.	SGA		8.07	+0.12
Cumulus	CMLS		10.09	+0.08	Salem Comm.	SALM		11.88	+0.13
Disney	DIS		29.26	+0.16	Sirius Sat. Radio	SIRI		4.13	+0.05
Emmis	EMMS		14.59	+0.24	Spanish Bcg.	SBSA		4.85	+0.03
Entercom	ETM		25.48	+0.24	Univision	UVN		33.46	-0.04
Entravision	EVC		8.10	+0.07	Westwood One	WON		7.60	-0.11
Fisher	FSCI		41.53	+1.53	XM Sat. Radio	XMSR		12.51	-0.30
Gaylord	GET		39.80	+0.90	-	-	-	-	-

Bounceback

Send Us Your Opinions We want to
hear from you.
This is your column, so send your comments and
a photo to [email protected]

Below the Fold

Ad Business Report
GM to discount
Only some models, but no huge promo this time...

Washington Media Business Report
Pushing FM translators for AMs
NAB asking FCC to consider rulemaking...

Internet Media Business Report
Fraud plagues online advertising
By click clique as there's a big problem when you put an ad online...

Media Markets & Money
Close encounter in Fresno
All Elvis? All Polka? The jury is out...

Stations for Sale

CD Border 25kw FM
Favorable competitive op.
Small/dual market FM with huge upside for turnaround operator.
595K 781-848-4201 or [email protected]

Radio Media Moves

Upped in NYC
Patricia Jarmek has been promoted to General Sales Manager at ABC Radio's WPLJ-FM New York. She had been the station's Local Sales Manager since 1998.

BE names Customer Service Manager
Broadcast Electronics (BE) announced Brent Whelan has been promoted to Sr. Customer Service Manager. Whelan joined Broadcast Electronics in 2001 as the Manager of RF Systems and Test. In his new role, he will direct BE's studio automation and RF customer service departments with the responsibility of developing new strategies for servicing BE's global customer base.

More News Headlines

Interep creates 41 million in new biz
Interep announced that its new business development efforts generated 41 million new bucks for radio in the 1st Half of 2006. Of these dollars, over 80% were placed on Interep client radio stations -- representing a 17% increase over dollars placed in the 1st Half 2005. The new radio revenues were developed by both dedicated new business sellers (the Interep Marketing Group) and from transactional rep sellers as part of Interep's on-going initiative to call on upper-level media decision-makers and redirect a greater share of marketing dollars toward radio.

Arbitrons after the fact: Mancow in Chicago
Mancow's Morning Madhouse was the most listened-to English-speaking morning show in Chicago among males according to the latest Arbitron ratings for the Spring 2006 survey period, released just one week after he parted ways with Emmis Broadcasting's Q101-FM. Erich "Mancow" Muller, who on Monday resumed broadcasting from a temporary studio to syndicates across the country, grabbed more audience shares (AQH) with Men 18-34, Men 18-49 and Men 25-54 than all other radio stations in the nation's third largest radio market, with the exception of WOJO-FM, an all-Spanish format. In other words, for English-only radio male listeners, Mancow was the #1 choice with Men in Morning Drive in Chicago. Where he'll end up in the Windy City is still "up in the air."

RBR Radar 2006

Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Let the Calls begin
Broadcasting saves quarter
for Journal
Gains in radio and TV revenues, including some new TV stations, counter-balanced revenue declines for other units of Journal Communications. Q2 revenues were flat with last year.

RBR observation: Nice radio numbers. Unfortunately, they are not likely to be duplicated by many other radio groups.
07/19/06 RBR #139

XM wants lawsuit thrown out
has put into writing its claim that the Inno device (made by Panasonic) which allows subscribers to record songs is protected by the 1992 Audio Home Recording Act (AHRA). It has asked a federal judge to toss out a multi-million bucks lawsuit over the device filed by the big record labels back in May 06.

RBR observation: The record labels made their bed, but now they don't want to lie in it. As we noted previously (5/22/06 RBR #100), the record industry lobbyists were totally clueless about where technology was heading when they pushed through the AHRA in 1992. Now, it seems, they want to pretend that it doesn't exist. And don't think that this only concerns satellite radio. The very same conflict is lurking around the bend for digital broadcasting by terrestrial radio stations.
07/19/06 RBR #139

Diaries get PPM shuffle
Arbitron announced changes to its start dates for the Winter 2007 and Spring 2007 ratings survey periods. The move is designed to harmonize the quarterly periods for diary measurement with its planned launch of Portable People Meter ratings in some markets next year. Going forward, Arbitron says it will no longer place a one-week break between the Spring and Summer surveys. To view the chart on this page see
07/18/06 RBR #138

CBS Evening News
adding radio simulcast
When the CBS Evening News with Katie Couric debuts 9/5, the viewers will be able to watch and listen, as well as a get related programming on television, radio, Internet and wireless platforms.

RBR observation: Surprising CBS Corp. CEO Les Moonves is not using more CBS O&Os to air Katie. Needless to say, expect a ton of promotional radio spots running on the CBS Radio News network. Whether we'll hear them on the music stations remains to be seen. On the interactive and wireless side, all of this will be ad-supported. None will be subscription-based. Ad packages are currently being put together. We'll have more on that. More read this page in RBR
07/18/06 RBR #138

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