Radio News ®

Kellner sees radio and non-pol TV
in same boat
According to ACME Communications CEO Jamie Kellner, there are haves and have-nots in this year's advertising environment. The haves are the big four TV network affiliate groups, who are cashing in big on political spending with their news-intensive stations - - plus a bonus if they happen to also have NBC affiliates who are getting Olympics dollars this month. The have-nots are companies like his whose TV stations are not news leaders. Kellner says they are in the same boat with the radio industry. "We're still waiting and have no idea when it's going to turn around," Kellner said of the ad environment in his quarterly conference call with analysts. "There's one little thing that stands out in my mind, which is if you look at the radio business, which also relies more upon local and national spot than network to drive its revenue, it's in a similar kind of soft position. And when you're not in the news business to take advantage of the political cycle, or if you don't have the Olympics where a lot of money is being sucked up by NBC affiliates, it make it that much more difficult when you're now in a weakened advertising marketplace." On the other hand, Kellner noted, 2005 is looking to be pretty good for his company and its WB affiliates, while the TV companies who are soaring this year will be facing tough comps.

RBR observation: Finally someone has said it for TV; they are in the same boat going up stream with only one paddle. Kellner speaks the words of Regent's Bill Stakelin last week of local - local - local. Now heed the words below from Ed Christian on local for all radio and TV PD's: first example is 'How many program directors are members of the Chamber of Commerce?'

Huffing and puffing against Buffy rebuffed
The fact that "Buffy the Vampire Slayer" was not in the buff seems to have played into a decision by the FCC to deny a complaint of indecency filed by the Parents Television Council. Also getting off: Will and Grace (see related story). According to the FCC, here's what happened in an episode aired 11/20/01. The episode in question contained a scene "depicting Buffy kissing and straddling Spike shortly after fighting with him." The FCC said "...we did not find that it is sufficiently graphic or explicit to be deemed indecent. Given the non-explicit nature of the scene, we cannot conclude that it was calculated to pander to, titillate or shock the audience." The FCC also specifically noted a lack of nudity. PTC brought the charges against WDCA-TV Channel 20, which carries the show in the Washington DC market, and against other stations affiliated with the show's network, UPN. Those looking at the 11/20/01 date may well accuse the FCC of foot-dragging on this one. However, such a charge would appear to be inaccurate. According to the FCC release, PTC didn't get around to filing the complaint until 4/22/03.

RBR observation: We must assume that the scene was indeed a mild one, based on the fact the Commissioner Michael Copps signed of on the denial. He's been PTC's best friend on indecency matters. If Copps didn't want to go after it, it's pretty safe to assume there was nothing to go after. Come one get real with tax money and just look at the on-air date - 11/20/01. Almost three years ago and Buffy is already in reruns and DVD's. FCC is faster than a speeding snail.

Women on Will and Grace get over the hump
An organization called Americans for Decency sent in a formal complaint the FCC concerning an episode of "Will and Grace" which was aired on KSAZ-TV Phoenix 3/31/03. The FCC denied the complaint. The episode in question featured a scene in which "...a woman photographer passionately kissed [a] woman author and them humped her (what she called a 'dry hump')."

RBR observation: First, we want to wipe our brow, get a breath of fresh air and thank the FCC for its scintillating definition of dry humping. Read on friends there is more observation. | More... |

More words of wisdom for PDs from the Saga Sage
Following up on his keynote address Friday to the Arkansas Broadcasters Association, RBR sought more of Saga Communications CEO Ed Christian's insights on what people in radio ought to be doing today to improve the industry. In his view, most stations and the people who run them are stuck in the rut of doing the same thing over and over, with no thought being given to how to improve what they're doing or to come up with anything really original. He has some advice for program directors on how to change that - - and themselves - - to return some magic to their stations. | More... |

Pirates get print as plank awaits
Pirate radio operators in South Florida got some free publicity in yesterday's Miami Herald - - but it may be their last hurrah as the state of Florida begins to enforce a new sate law that adds state law enforcement to the FCC's efforts to put boot bootleg operators from the airwaves. The newspaper reported frustration from a dozen or so of the pirates who met secretly at Miami hotel with a state legislator who didn't support the new law, but apparently didn't have much hope to offer the pirates. Since it costs only a few thousand dollars to start an unlicensed FM station, more are likely to pop up even as state and federal authorities crack down even harder in the Miami area, which has been a hotbed of piracy for years. But local broadcasters are hopeful that the new initiative will help frustrate the pirates and they're glad to have local law enforcement join the battle. "This is a public safety issue," Florida Association of Broadcasters attorney Reggie Garcia told the Miami Herald. There have been reports of pirate stations interfering with air traffic control at the Fort Lauderdale-Hollywood International Airport and Garcia said pirates could "frustrate an Amber Alert or interfere in a weather emergency."

FCC seeks OK to implement radio ownership rules
The Federal Communications Commission has asked the federal appeals court in Philadelphia to let it go ahead and implement the new radio ownership limits that the FCC approved last year, arguing that the court’s ruling that blocked other media ownership rules shouldn’t block the radio changes as well. The FCC's proposed change in its radio rules was the only case in which it tightened ownership limits in a massive rule review that otherwise would have loosened restrictions. If the FCC is permitted to implement the new radio rules, local markets will be defined by Arbitron market boundaries, reducing the number of stations that a single company can own in most markets. "There are no sound reasons for maintaining the stay of the local ownership rules," the FCC argued in its court filing.

Conference Calls, Q2 2004

Revenues up 8.3% at Fisher
Fisher Communications reports that its broadcasting revenues were up 8.3% in Q2 to $39.5 million. The company attributed that to higher political advertising, as well as "generally higher local advertising." Including the company's Fisher Plaza operation in Seattle, total revenues were up 7.8% for the quarter to $40.4 million. The net loss for Q2 was $1.4 million - - an improvement over the net loss of $4.3 million a year ago. Fisher owns 27 radio stations and 10 TV stations in the Northwest. The company doesn't conduct quarterly conference calls with analysts.

Adbiz ©

Steve Grubbs: Challenges and opportunities in media abound
In this three-part series expanded beyond our August print issue, we speak with Steve Grubbs, CEO of Omnicom's PHD. He's responsible for $4.5B in global billings and seven US offices. Clients include DaimlerChrysler, Gap/Old Navy, Ralston Purina, J&J, Goodyear, Reebok, Gap, Enterprise Rent-a-Car, Discovery Networks, Schwab and Energizer. Prior to joining PHD, Steve was CEO of OMD USA, Omnicom's other global media services network. Before that, Steve was EVP/Director of National TV Buying and Program Development at BBDO New York, where he served for 22 years. Steve's also a former Chairman of the AAAA's Network TV committee and currently serves on the board of directors of Advertising Information Services and E-sync Networks. Here, Steve gives an insightful take on holding the keys to innumerable, constantly-evolving media vehicles. | More... |

Chrysler launches "Discover Your Ride"
on Infinity stations
Infinity Broadcasting says more than 125 of its stations are participating in a radio and online cross-promotion for the Dodge, Chrysler and Jeep brands called "Discover Your Ride." The promotion features customized radio announcements, VHost-driven online rich media advertising units, and a mini-site that uses artificially intelligent agents to match customers with Dodge, Chrysler or Jeep automobiles. The site enables visitors to choose from one of four VHost characters, and then take a four-question quiz to help determine their ride. The quiz asks people interesting questions ranging from their weekend activities to their attitudes toward traffic. Using a scoring system, the quiz instantly determines the three Dodge, Chrysler or Jeep models that best suit the user. Immediately, the site offers the visitor direct links to a virtual tour of the automobile, as well as links to build and price a model. "We worked with DaimlerChrysler to create a marketing idea anchored by the power of radio - - an idea that would leverage the popularity of Infinity DJs by encouraging their loyal listeners to check out an innovative way to shop for a new car," said Richard Lobel, Executive Vice President, Infinity Solutions and Beyond.

RBR observation: If you didn't get it then take a look see at that rich media and internet action is all about. "Discover Your Ride," also means discover the marketing, sales, programming and local interaction.

Chevy won't rock on anymore
Don't expect to hear the long-established phrase "Like a Rock" in the new series of ads that Chevrolet is rolling out for its truck line during NBC's Olympics coverage, beginning this week. "An American Revolution," a new ad line that Chevy began using late last year, is now the only slogan being used. The old Bob Seger song, "Like a Rock," featured since 1991, won't be heard - - unless you just happen to be listening to an oldies radio station (and even then, not in a Chevy truck ad). "We still have the rights to use it, but we have no plans to," Kim Kosak, Chevy's General Director for Advertising and Sales Promotion, told the Detroit News. General Motors will be the biggest advertiser for NBC's Olympics coverage, with some 400 spots scheduled 8/13-29, primarily for Chevrolet. Kosak told the Detroit News that an additional 170 spots will air on NBC-owned Telemundo, which has the US Spanish rights for the Olympics.

BMW helps drive NBC through Olympics
BMW hopes to draw parallels between its cars and Olympic athletes with a trio of spots designed to run during the Olympics. The parallel qualities are "precision engineering, grace under pressure and the ability to go the distance." The spots will kick off during Opening Ceremonies, then will go into rotation on a number of broadcast and cable outlets, including "The Today Show," and basic services Bravo, USA and CNBC.

Full motion digital displays try for a bite of the pie
According to research from Arbitron's New Ventures, full motion digital display advertising is proving to be a valuable addition to the arsenal of point-of-purchase marketing tools available to retailers. Moving messages, supported with quality audio, can more than double shopper recall of an advertising message over more traditional displays, and their proximity to the sale help drive business. They are also flexible and easily changed to take advantage of changing conditions, like product sell-outs, foul weather, etc.

Media, Markets & Money tm

Washington Beat

Engineering

Cox latest to expand HD rollout
Cox Radio announced plans to aggressively expand its roll-out of digital radio. Specifically, Cox plans to work with iBiquity Digital Corporation's HD Radio technology to upgrade 80% of its stations over the next four years. Cox currently offers digital radio in Atlanta and Miami. "Digital radio represents the future of radio. With the technology now ready for broad based deployment, we are stepping up our efforts to provide digital radio to our listeners," said Cox President and CEO Bob Neil. "Digital radio not only brings CD quality sound to our listeners free of charge, but also enables us to deliver other valuable services such as traffic updates, sports scores, artist information and song titles to name a few."

Transactions

$4.7M WJES-FM Columbia SC (Saluda SC) from Breckenridge Cmmunications LLC (Michael C. Casey) to Double O. Radio Corp. (Robert Pittman, Robert Sherman, Terry Bond al). $225K escrow, balance in cash at closing. Duopoly with FM CP Forest Acres, coming in separate transaction. FCC has concluded rulemaking allowing WJES-FM to change city of license to Irmo SC, upgrading from Class A to Class C3 on 92.1 mHz with 15 kw @ 427', and moving approximately 30 miles closer to Columbia. A CP application to execute the move is pending. [File date 7/13/04.]

$350K WFUL-AM Fulton KY. 100% of River County Broadcasting Inc. from Charles W. Whitlow to Maxwell F. McDade III. $5K advance payment, $35K escrow, $6.1K consideration for acquisition of corporation, $303.9K note. [File date 7/13/04.]

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