Radio News ®

Arbitron says response rates are up
Arbitron reports success in raising response rates for the Spring 2004 book. For the spring survey, the ratings company had introduced pre-placement and follow-up treatments for young male, black and Hispanic households in 20 low-response rate metros and expanded its pre-placement in the top 10 metros. The efforts paid off. Arbitron reports that in the 20 targeted low-response metros, response rates rose by 2.7 percentage points to 29.2%. In the top 10 metros, response rates were up 0.3 points to 29.3%. Here's how response rates looked across all rated markets.

News Corporation board ready to immigrate
A special committee of outside directors has given its go-ahead to Rupert Murdoch's proposal to reincorporate the company in the United States (4/7/04 RBR Daily Epaper #68). Following that approval, the entire board of directors voted unanimously to approve the move from Australia to the US, which Murdoch believes will give a boost to the company's share price. The next move is to present the proposed reorganization to the Australian Securities and Investments Commission and the Australian Federal Court for approval to convene a shareholders meeting to vote on the change. Some Australian money managers have balked at the proposal because News Corporation would have to be dropped from major stock indices down under. But with so much of the company's stock already held by American entities, not to mention Murdoch himself, approval appears to be all but certain.

RBR observation: As we noted back in April, some days it is always about the money. This is strictly a calculated financial move on Murdoch's part. News Corporation already qualifies as a US-controlled firm at the FCC, which permits it to own US broadcast licenses, so moving its incorporation won't change anything there. But Murdoch believes it will improve liquidity for his company's stock and attract some big investors who don't like to invest in foreign companies who aren't subject to all of the SEC's reporting requirements.

IFJ defends source confidentiality
The International Federation of Journalists (IFJ) does not think TIME magazine reporter Matthew Cooper should have been sent to jail, nor should his magazine be fined, for protecting an anonymous source. It was in reference to the alleged White House leaker who blew the cover of CIA operative Valerie Plame."This sort of story about alleged government misuse of power relies on confidential sources of information. If those sources are revealed it would be harder for reporters to do their job," said IFJ General Secretary Aidan White. He continued, "It is ironic that the people now facing sanctions are those who brought this matter to public attention. This is another case in which journalists' rights to maintain confidentiality of sources must be protected."

RBR observation: If they want to get to the bottom of the story by strong-arming journalists, the obvious starting point is Robert Novak, not Matthew Cooper or Tim Russert. If we're going to trample on the Constitution, let's at least trample on it fairly and impartially.

Mike Wallace busted in NYC
Witnesses are coming to the defense of CBS "60 Minutes" correspondent Mike Wallace following his arrest Tuesday night for arguing with officers of the New York City Taxi and Limousine Commission (TLC) outside a restaurant. According to local newspaper accounts, Wallace was picking up take-out from the restaurant and emerged to find two TLC officers checking the papers of the driver of his double-parked limo. He was arrested after one of the officers claimed that Wallace lunged at them while protesting their delaying his driver. "I'm 86 years old!" Wallace shouted as he was handcuffed, according to witnesses quoted by the New York Daily News. One witness told the newspaper that the cops threatened to also arrest bystanders who told them to leave Wallace alone. The CBS correspondent was taken to a local police precinct for booking and release, where Wallace told the New York Post that NYPD officers apologized for his treatment and said they had nothing to do with the TLC officers.

Conference Calls, Q2 2004

NextMedia reports Q2 gains
Net revenues were up 5.4% to 29.2 million dollars in Q2 for NextMedia, but on a pro forma basis radio revenues were only up 2.9% to 21.3 million. Outdoor had a bigger gain, up 4.6% to 9.1 million. Pro forma radio cash flow rose 3.5% to 8.8 million, while outdoor cash flow declined 7.7% to 3.6 million. President Steve Dinetz told analysts that April was up 3%, May fell 0.5% and June gained 4.5% for the company's radio division. As for the current quarter, July was up 1.5%, August is pacing flat and September is up over 5%. Dinetz assured the analysts that he was confident that the September gains will hold. He said the business now on the books is traditional advertising business and that the company is just beginning to see encouraging numbers on political advertising.

Ad gains boost News Corporation and Fox
News Corporation's profits rose 7.8% in its fiscal Q4 (April-June) to 399 million dollars. The news was even better for its US subsidiary, Fox Entertainment Group, where profits rose 25% to 323 million. Fox revenues were up 14% to 3.2 billion and operating income rose 27% to 547 million, including a 14% gain in operating income at the Fox O&O TV stations to 279 million and a 76% jump at the Fox network to 51 million. TV station revenues were up 7.7% to 587 million and network revenues rose 9% to 560 million. In a conference call with analysts, President Peter Chernin said the past TV season got off to a tough start for Fox, but improved in the second half. He noted that the network has 10 shows returning for the new season. Chernin even has high hopes for joining the fierce ratings battle on Thursday nights. "We have great hopes about Thursday night. We're finally going to get into the game by moving 'The O.C.' to what is this extremely lucrative advertising night - - with a strong young appeal show that advertisers covet," he said.

Adbiz ©

Steve Grubbs: Challenges and opportunities in media abound - Part III
In this three-part series from our August print issue, we speak with Steve Grubbs, CEO of Omnicom's PHD. He's responsible for 4.5B dollars 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... |

Cover Your Athens
With terrorism concerns running high, the Wall Street Journal reports that Olympics advertisers are hedging their bets in their deals with NBC. Should the Athens games be cancelled or interrupted, Allstate will be able to negotiate a cash refund under its ad contract. General Motors and Home Depot, two of the largest advertisers for the NBC Olympics broadcasts, have contingency plans written into their contracts as well, but they declined to disclose any specifics to the WSJ. But even with the terror concerns, ad sales for the Summer Olympics have been strong. NBC's sales have reportedly gone over the one billion dollar mark, beating its 900,000 million take in 2000, although the Peacock net reportedly still has some inventory remaining to be sold.

I kid you not about youth and the Olympics
Harris Interactive has found a great place to troll for the youth of America, promotionally-speaking. It turns out that kids 8-18 think the Summer Olympics are the best thing in Sports this side of the Super Bowl. In fact, 57% think the Summer Olympics are great, behind only the Super Bowl's 59% high-interest rating. By contrast, the World Series rated only 40% and it goes down from there, to the NBA Finals (39%), the Stanley Cup Finals (29%) and the World Cup (26%).

Leisure, business, NASCAR converge
at Best Western
Hotel chain Best Western is taking its time - - five months, in all - - to expand its business in a advertising flight which will target leisure travelers, business travelers and NASCAR fans. The company is expanding its usual net to do it, bringing cable outlets into the mix to complement a flight being booked on national broadcast outlets. Racer Michael Waltrip will make a special pitch to NASCAR fans in the second leg of the three-tiered campaign.

Media, Markets & Money tm

Washington Beat

Programming

Radio Formula renews El Panda
Radio Formula Network says it has renewed "El Panda Show Internacional" with a multi-year, multi-million dollar contract, despite what it asserts were rumors that Univision was trying to hire away host Antonio "Panda" Zambrano. El Panda Show Internacional has been a ratings leader in Mexico for the past eight years and was added to Radio Formula's US syndication stable in June of this year.

Transactions

9,750,500 WCHN-AM/WBKT-FM/WKXZ-FM Norwich NY; WZOZ-FM Oneonta NY; WDHI-FM Delhi NY; WDLA AM & FM Walton NY; WIYN-FM Deposit NY from Banjo Communications Group Inc. (James V. Johnson) to Double O. Radio Corp. (Robert Pittman, Robert Sherman, Terry Bond al). 485K escrow, balance in cash at closing. [File date 7/14/04.]

50K KTLZ-FM CP Cuero TX from Good News Broadcasting of Texas (Israel Tellez) to Radio Assist Ministry Inc. (Clark Parrish, Diana S. Atkin, Earl Williamson). 10K deposit, balance in cash at closing. Noncommercial. CP is for 89.9 mHz with 4 kW @ 328'. [File date 7/14/04.]

Stock Talk

Radio Stocks