Radio News ®

Hill bill would restore broadcast regulation
Rep. Maurice Hinchey (D-NY), along with several of his Democratic House colleagues, is introducing HR 4069, the "Media Ownership Reform Act of 2004." As he described it at a meeting in the Capitol yesterday (7/20/04), it would be a sweeping proposal which would go further, even, than the resolution of disapproval approved by the Senate last year. Beyond rolling back the FCC ruling, it would restore the Fairness Doctrine. Hinchey said the bill was designed to "...restore fairness in broadcasting, reduce media concentration, ensure that broadcasters meet their public interest requirements, and promote diversity, localism, and competition in American media."

RBR observation: Republican House leaders have to date fended off a vote on the Resolution of Disapproval passed twice in the Senate, albeit in different form. That is precisely what will happen to this bill in the 108th Congress. HR 4069 isn't going anywhere, despite the Democrats' claim that they would prevail in a floor vote of the full body. Unless the Democrats pull off a major upset this November and win back the House, this bill isn't going anywhere ever. | More... |

Democratic Commissioners speak out
Michael Copps and Jonathan Adelstein joined members of Congress and union officials in calling for public hearings on media ownership, now that the 3rd District Court has sent the rules back for justification or modification. Copps said that he requested hearings a month ago, but so far hasn't gotten a response of any kind from Chairman Michael Powell.
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Broadcasting pacing strong at Journal
Officials of Journal Communications report that its broadcasting unit continues to perform strongly after turning in a second quarter that was up 12.2% overall in revenues. Journal Broadcast Group President Doug Kiel told analysts that radio is pacing up in the mid single digits for Q3, with TV still strong and pacing up in the double digits. In the company's quarterly conference call, Journal CEO Steve Smith hailed the TV group for gains in local and political ad sales. While radio didn't post quite as strong of a quarter as TV, Smith praised the radio group for boosting its profit margins.

Does Clear Channel want its own label?
That's the claim of a New York Post story. (OK, that's the same newspaper that said John Kerry had picked Dick Gephardt as his running mate, so take it for what it's worth.) Anyway, the Post claims that Clear Channel has been looking for months into the feasibility of starting its own record label. The story says investment bankers have also been trying to interest Clear Channel in buying EMI. Clear Channel has already dipped its toe into the record biz, with Clear Channel Entertainment selling quick turn-around CD recordings of some of the live concerts that it promotes. However, owning an actual label would be a quite larger proposition - - and it would not be without political repercussions. The other record labels would be sure to seek government intervention to prevent the nation's largest radio group owner from having its own label to promote, presumably to their detriment. Also, anti-consolidation groups who already accuse Clear Channel of denying airplay to local artists would have a field day with the new issue. RBR sought comment from Clear Channel on the Post story, but didn't get any.

Sumner just keeps buying and buying...
If you own shares of Midway Games, you're becoming an increasingly rare investor. There seems to be no end to Sumner Redstone's appetite for shares of the video game company. The company's share price keeps edging up and Redstone keeps buying up shares, a few thousand a day, making him single-handedly responsible for most of the stock's trading activity. The Viacom CEO is now past the 80% ownership threshold at which he previously said he would consider taking the company private (6/9/04 RBR Daily Epaper #112). According to his latest SEC filing, Redstone and entities he controls now own 56.2 million shares of Midway, which is more than 82% of the shares outstanding. That report goes through 7/16 and shows $10.45 as the highest price that Redstone had paid for Midway shares. Trading has continued since that date and the price has lately fallen below $10.30, so we can likely surmise that Redstone is still buying up Midway shares.

RBR observation: Oh to be one of the lucky investors who bought Midway stock last year for $2. Redstone obviously sees value in the video games industry that escapes most investors - - and we'd bet that some of it has to do with synergies with Viacom properties, such as Paramount Studios and Nickelodeon - - something only Redstone can bring to the table. But after Viacom's disappointing experience with Blockbuster, he was smart to handle this investment with his own money, rather than risk a backlash from Viacom investors.

Broadcast workers oppose consolidation
Broadcast consolidation is lowering journalism standards, as focus shifts from quality product to the bottom line, according to a poll of cross-disciplinary journalism professionals commissioned by a group of trade unions. Members of The Newspaper Guild (TNG) and National Association of Broadcast Employees and Technicians (NABET), both part of Communications Workers of America, American Federation of Television and Radio Artists (AFTRA) and Writers Guild of America are among the group polled. | More... |

Conference Calls, Q2 2004

Journal surpasses expectations
Journal Communications beat Wall Street expectations with its Q2 results, reporting revenues up 4.3% to $208 million ($3M more than the Thompson One Analytics consensus) and earnings per share of $0.27 (three cents more than the consensus). Not only did radio and TV have a good quarter, but publishing revenues were up 4.6% and publishing profits jumped 41%, due in part to a new printing press for the Milwaukee Journal-Sentinel. Journal Broadcast Group was the star performer, though, with revenues up 12.2% to $42.3 million and profits up 45.7% to $11.1 million. Although political advertising was an important factor, non-political advertising was up 9%. Radio revenues rose 5.7% to $20.5 million and operating earnings rose 19% to $5 million. TV revenues were up 19.1% to $21.8 million, with operating earnings up a dramatic 79.4% to $6.1 million. In its monthly report, also issued yesterday, Journal reported that radio revenues were up 7.5% in June to $8.02 million and TV revenues rose 18.6% to $8 million. The laggards for Journal Communications in Q2 were its telecommunications unit, with revenues down 1.8% to $36.8 million, and printing services, down 15.9% to $17.4 million.

Adbiz ©

Adidas launches "The Garnett," under the
"Impossible Is Nothing" branding
Adidas announced the launch of a new global basketball campaign, featuring 2004 NBA MVP, Kevin Garnett (KG). This is his first signature shoe and the first product launch under the "Impossible Is Nothing" brand identity for adidas. The fully integrated campaign, created by 180/TBWA San Francisco, debuted in the US on network and cable 7/19, with a TV spot called "Carry." The objective of the campaign is to illustrate the idea that KG is the consummate team leader and possesses the dedication and desire to include all his teammates, fans and family in everyday life, both on and off the court. As one of basketball's most complete players, he is looked upon with the expectation to give his team and the community a lift well beyond the box score. The campaign is supported with print, outdoor, point of sale, public relations and online executions, all sharing the same idea of "Carry."

Media, Markets & Money tm

Clutter Control: The New Limits

Washington Beat

Sales

Programming

Infinity launching "Dave FM" in Atlanta
Infinity is launching a new Alternative format in Atlanta on Classic Rock/Active Rock WZGC-FM (Z-93). The new mix, "an alternative format that is unique to Atlanta," launches within a week or two, according to RBR sources. It will directly compete with Susquehanna's heritage Alternative WNNX-FM. Infinity VP/Rock Programming and WXRT-FM Chicago PD Norm Winer is overseeing the "Dave" launch.

PS. Infinity's KJKK-FM Dallas, the recent launch of "Jack FM," is getting a great response, we hear. As is Jack FM in Denver. Bottom line: Infinity is becoming more aggressive in offering listeners what they want to hear - - new refreshing mixes of music that may not be afraid to pull from other genres. Less predictable and with broader playlists. Alternative PDs: You need to definitely take a look at Sirius Ch. 26 these days for good adds suggestions. Indie Rock gems here.

Transactions

$17.35M KBMB-FM Sacramento. 100% of The Beverly Group Inc. as receiver from Diamond Radio Inc., Beverly N. McFarland receiver (66.7% to 0%), Paula L. Nelson (33.3% to 0%) to Entravision Communications Corp. (0% to 100%). Cash. $10.5M to secured creditors, $5.6M to Nelson with $375K holdback escrow, additional $1.25M settlement payment to secured creditors. Superduopoly with KCEL-FM, KRXQ-FM, KXOA-FM & KHYL-FM. Receiver and attorneys will be paid from station cash flow. No significant crossownership overlap with KUVS-TV Modesto nor KTFK-TV Stockton. [File date 6/21/04.]

$1.825M KERI-AM Bakersfield (Wasco-Greenacres CA) from KWSO Inc. (Nancy Bevilacqua) to AGM Calilfornia, a subsidiary of American General Media/Lagniappe Broadcasting Inc. (Anthony S. Brandon, L. Rogers Brandon). $70K escrow, balance in cash at closing. Superduopoly with KBID-AM, KERN-AM, KGEO-AM, KRFR-FM, KISV-FM & KGFM-FM. [File date 6/21/04.]

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