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Radio News ®
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Analysts' conclusion: Infinity blinked
You'd be hard-pressed to find anyone in radio or on Wall Street who believed that Infinity's refusal to renew its ratings contract with Arbitron in June was the final word on the matter. But many had expected a longer hold-out by Infinity. Based on the revised financial guidance that Arbitron issued after bringing Infinity back into the fold, the consensus is that Arbitron had the stronger hand - - and played it well.
RBR observation: If you bought Arbitron's stock back in June, figuring this is exactly what would happen, it looks like you made about 3.4% over less than two months. But if you were lucky enough to buy in at the recent low just last week, your profit was over 18% if you sold yesterday. Not a bad return either way. Analysts Kit Spring and Alissa Goldwasser tell it like it is. | More... |
 Hollander discusses Arbitron issue
Infinity President Joel Hollander spoke with RBR about issues surrounding the standoff with Arbitron that was resolved just two days ago: "We had two issues: the short term problem and the longer term issue, which is related to where the industry is going. In the interim we did cut a favorable deal. The longer term issue is where we are going to be five years form now: the people meter, diary, what form is this going to take? If we're going to PPM, all the broadcasters, including myself, certainly want cost certainty. It's time that the industry bands together in this very important issue. We, as some of the other CEOs, have over the last six months been trying to shed as much positive light on the industry as possible. It's time for the industry to make a decision together-to either support Arbitron with such things as the RFP that the RAB has offered, asking what the agencies, advertisers and broadcasters want. There are many that feel that there should be a second ratings service. Or, to make sure Arbitron has many more checks and balances.
NAB: Charley proves localism is alive and well
The response of Florida broadcasters to Hurricane Charley's assault on Florida is proof of broadcasters' commitment to localism and to serving the public interest. The National Association of Broadcasters and Florida Association of Broadcasters have fired off a letter to FCC Chairman Michael Powell to draw his attention to the critical contribution of broadcasters to Floridians in the path of the storm. As has traditionally been the case, dozens of stations broke format to give wall-to-wall coverage of the developing crisis. And far needing a government prod to do so, broadcasters actually sent out a warning contrary to information being provided by the National Hurricane Center which accurately predicted a sudden change in Charley's path. Here's what one TV viewer had to say, as reported in the Orlando Sentinel: "Many thanks to the meteorology team who dared to veer from the National Hurricane Center's predictions - - I am certain that you are responsible for saving many lives. You gave many area residents like ourselves a golden hour, or 1/2 hour in some cases, to prepare for the completely unexpected! I am certain you made the difference between life or death in many, many cases." Read the slightly excerpted letter here: | More... |
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"Seaview 104.9" becomes a voice of help in SW Florida
The Washington Post reports CC Radio's Easy Listening WCVU-FM "Seaview 104.9" in Punta Gorda, FL is running local programming over five local CC Radio frequencies. Locals came to the station's rescue right after Charley hit and began repairing the station's lost roof. Now, the station is giving back in kind, with live and local emergency-relief programming. Excerpts: | More... |
 Beasley launches
Hurricane Charley Recovery Fund
Beasley Broadcast Group announced it has partnered with Waterman Broadcasting Corporation, the Naples Daily News and Wachovia Bank, to create the Hurricane Charley Recovery Fund. The fund seeks to raise money for victims of the recent storm. Beasley's local Fort Myers radio stations, Waterman Broadcasting's ABC7 and NBC2 affiliates and the Naples Daily News will help raise awareness and cash donations, reminding people to assist others in need through the fund's slogan, "Neighbors Helping Neighbors." Beasley station DJs will be broadcasting from fundraising drives at various locations in Fort Myers, Cape Coral, Bonita Springs and Naples. In addition to participating at one of the fundraising drives, those interested in contributing can bring a check payable to the Hurricane Charley Recovery Fund to any Wachovia Bank branch in the country. All donations will be sent to the American Red Cross and the Salvation Army in Florida.
Jones MediaAmerica President Jed Buck leaving
A "total surprise" to Jones Media Networks: just-promoted Jones MediaAmerica President Jed Buck is leaving the company to work with his family in a totally separate business from radio. Although no longer an employee, Buck will continue to work with JMA as an outside consultant on a project basis. His last official day at JMA is 9/10.
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Adbiz ©
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 RAEL releases first study:
How Radio Ads Affect Consumers
The RAB's Radio Ad Effectiveness Lab (RAEL) released the first of several major new research studies yesterday in NYC that identify how radio and radio advertising works with listeners, how to maximize ROI and how radio ads can improved upon for effectiveness. "I've asked the captains of our industry to come together in a sign of unity to show this is an industry effort," said RAB CEO Gary Fries in opening the event that was well-attended by most radio groups. "They all believe in radio and are joined together to show the industry how effective the medium is...We don't want to just present this research, but to embed it, present this documented information to the ad community. It's completing the circle. We are putting forth an unprecedented marketing effort. We have a team to get the message out, take it to the streets to the advertising community."
RBR observation: We're still not sure if the radio groups are kicking in enough dollars to fund all of this (RAB doesn't supply the funding details for RAEL), but the big showed up and that’s a good sign. Bottom line: Any study can say people have a more personal feeling with radio spots, but too many spots and annoying spots from any medium will turn them away. Next step: Let's fix the programming and invest in the creative production of radio’s content. | More... |
Photo Left to Right: David Kennedy, President and COO, Susquehanna Radio and Chairman of the RAB, Gary Fries, President and CEO, RAB and David Field, President, CEO, Entercom Communications
But what about Infinity Radio Sales reps, local AEs?
Another impact from the renewed Infinity deal with Arbitron (8/18 RBR Daily Epaper #161) may be felt by the Infinity Radio Sales reps at Interep and local Infinity station AEs. If you recall (7/15 RBR Daily Epaper #137), Infinity President Joel Hollander and Infinity Radio Sales President Michael Weiss were going to pass the savings from not paying Arbitron onto the sales staffers in varying degrees (i.e. bonuses). While Weiss' previous intent to collect fees back from Arbitron because they couldn't use Infinity numbers to sell against is now likely moot, we wonder if any changes in sales compensations/commissions that may have been instituted are also now moot. Said Hollander: "We did re-deploy the money back into the company for perceptual studies for radio stations that haven't had them in a while. So the PDs were thrilled about that. We're still doing the sales bonuses if they hit revenue targets."
 ExxonMobil taps Phil Mickelson
for corporate comm.
Exxon Mobil and PGA Tour star Phil Mickelson announced a new partnership that will include participation in select ExxonMobil corporate communications activities. Mickelson and his wife Amy will work with ExxonMobil to develop new programs to improve science and math education in elementary schools. "Our partnership with the Mickelsons furthers ExxonMobil's long tradition of seeking to improve student achievement in science, mathematics and technology," said Lee Raymond, ExxonMobil's chairman and CEO. "By continually improving the methods by which teachers are trained, we can impact the science and math education students receive -- and as a result, their future employment prospects." Mickelson and ExxonMobil will work together to launch innovative programs to help elementary school teachers improve their instruction in math and science and thereby increase student interest and achievement in these disciplines. The programs will offer advanced training in science and mathematics instruction for elementary school teachers chosen from the communities around the country where Mickelson will be playing tournaments.
Big four get behind Ad-ID
The four major broadcast nets announced they've embraced the Ad-ID tracking standard, which uses an XML-based system to assign and track unique ID codes for marketing assets across all media, including online. ABC, CBS, NBC and FOX are now all fully Ad-ID compliant, according to the Association of National Advertisers (ANA) and 4As. The Ad-ID initiative is designed to replace the TV-only Industry Standard Coding Identification (ISCI), which has too few digits (eight) and doesn't allow for the added data the 12-digit digital Ad-ID system makes possible. "Top tier TV network acceptance is adding yet another ring to the ripple effect that Ad-ID has started within the advertising industry," said Bob Liodice, ANA CEO. "Ad-ID is continuing to pick up more and more media companies and advertisers, firmly establishing the system as an industry-standard practice for driving marketing accountability." Ad-ID offers additional ad data such as the creator, the ad schedule, cross-media campaign tracking, analysis of ROI and real-time accountability verification that the ad ran when it was supposed to. More than 100 marketers, including P&G, Johnson & Johnson, Con Agra, Ernst & Young, Pepsi, Ford and Wachovia, have signed on to the system.
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August Solutions Digital Magazine
Complimentary Report
No more Forward Pacing Reports.
We have the economic, political, and close up look at your 4th quarter of business and what must be done to hit budget by year's end.
GM of Cadillac, Mark LaNeve
tells it like it is on where he
spends ad dollars.
Read RBR in 2 simple steps:
1.Create a simple account with Zinio to download the free Zinio Reader.
2. You can then download the free
July Issue of RBR.
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Thats it!
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Media, Markets & Money tm
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Bustos asks to pass the Butterfield
Amador Bustos re-entry into the ranks of radio group ownership is continuing full-steam-ahead with an eight-station, three market deal that establishes Bustos Media as a player in small-market Washington state and brings an old friend back into the Bustos fold. Bustos is paying 6.725M dollars to Butterfield Broadcasting. In return, he gets the following:
* in Yakima/Sunnyside: KZTA-FM, KYXE-AM, KZTS-AM
* in Tri-Cities (Richland/Pasco/Kennewick/Walla Walla): KZTB-FM, KZZM-FM
* in Wenatchee/Moses Lake/Ephrata (an Eastlan market): KMZL-FM, KULE-FM, KULE-AM
The old friend is KZTA, which Bustos sold to Butterfield some ten years ago. Bustos now holds or is acquiring stations in Portland OR, Seattle and Salt Lake City in addition to the stations in the Butterfield deal.
TV topped radio and newspapers in July
With reports in from three more multi-media companies, it's clear that July was a good month for television - - but not so impressive for radio or newspapers. Journal Communications says TV revenues were up 8.4% and radio 1%, Tribune TV revenues rose 6% and radio/entertainment 3%, and the New York Times Company said broadcast revenues (TV and radio combined) were up 9.4%. Journal was an exception to the soft reports on the newspaper side, though. Ad revenues for its Milwaukee Journal Sentinel rose 10% and total operating revenues for its publishing division were up 5.3% to 23.6 million dollars. TV revenues shot up 8.4% to 5.3 million, but radio gained only 1% to six million. Thus, total broadcast revenues were up 4.3% to 11.3 million. At the New York Times Company, newspaper ad revenues were up only 1.7% to 156.4 million dollars, with retail up 1.7%, national 1% and classified 1.5%. Ad revenues for its eight TV stations and two radio stations shot up 9.4% to 12.4%. Publishing ad revenues for Tribune Company rose 2.6% to 278 million dollars, with retail up 3.3%, classified up 4.6% and national down 1.7%. Broadcasting and Entertainment group revenues were up 5.2% to 160 million. Within that, TV revenues rose 6% to 120 million and radio/entertainment rose 3% to 40 million. The company said the gain for radio/entertainment was mostly related to the Chicago Cubs.
Close encounter in Blacksburg
More news from broker Larry Patrick, who reports that Cumulus Media's 7M dollar acquisition of a seven-station cluster in Virginia's Blacksburg/Christiansburg market has been completed. Cumulus has been running the stations since January in an LMA with seller New River Valley Radio Partners. The four FMs carry Classic Rock and Country programming, with Standards and News/Talk/Sports fare provided on the AM side.
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Washington Beat
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 Candidates taking heat for 527 ads
The duel between 527 organizations over the Vietnam era service records of the two candidates for president is forcing both candidates to consider and/or issue responses. Neither candidate has had an unkind word for the other on the topic, but neither has there been any lack of surrogates to fire salvos in both directions. Vietnam vet Sen. John McCain (R-AZ) has issued statements deploring both sets of attacks. The first, leveled at John Kerry, came from Swift Boat Veterans for Truth. They were answered rapidly by MoveOn.org (8/17/04 RBR Daily Epaper #160). Kerry honored the wishes of McCain and denounced the MoveOn campaign (but did not denounce similar comments which were made by former Gen. Wesley Clark and former Adm./CIA Director Stansfield Turner). The Bush campaign has so far declined to denounce the Swift Boat Veterans campaign. According to the Associated Press, McCain said, "This is the bitterest, most unsavory campaign in the nation's history, and it's only going to get worse." He said this was just the sort of advertising he was hoping to eliminate with his attempt to ban soft money in federal campaigns.
Majoras takes the helm at the FTC
"I am deeply honored to be Chairman of the FTC. It will be a privilege to serve with my fellow Commissioners and the Commission staff as we work tirelessly to protect and enhance consumer welfare." So said Deborah Platt Majoras upon taking the helm of the Federal Trade Commission 8/16/04. Majoras was a backdoor appointee. President George W. Bush took advantage of a congressional recess to forward her nomination, along with several other stalled federal job candidates (8/3/04 RBR Daily Epaper #150). The reason that tactic was necessary was the ire her nomination has provoked among Democrats, particularly Ron Wyden (D-OR). Although Majoras mentioned enhancing consumer welfare in her acceptance statement, Wyden was not convinced that she would follow through on that, particularly when it came to oil and energy policy. Wyden was not satisfied with her answers to price at the pump questions, and threatened to put a hold on her nomination on the Senate floor, a threat side-stepped by Bush.
The Bush side-step is temporary, however. And if his re-election bid fails, Majoras' term in the chair could be extremely brief. The FCC is the government of primary concern to broadcasters, but the duties of the FTC occasionally bring it into play on broadcast issues and other FCC matters. Chiefly, the FTC regulates commercial content. Under outgoing chairman Timothy Muris, is spent time going after alleged false claims in diet and pharmaceutical advertising. The FCC and FTC also collaborated on the famous anti-telemarketing National Do Not Call List.
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Ratings & Research
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Explosion de poblacion reflected on radio dial
The Hispanic population in the US has been exploding, and radio has responded like a finely-tuned receiver. In fact, according to BIA Financial Network, its more than kept up with the change. Over the last five years, the Hispanic population has grown 27%, while the number of Hispanic radio stations has nearly doubled, increasing by an astounding 86%. Part of that disparity was catch-up, and there is still room for growth. BIAfn's Lauren Butler said, "Despite the explosive growth in the number of Spanish-language radio stations over the past five years, Spanish-language radio is somewhat under-represented in the 20 largest Hispanic radio markets." BIAfn says there are 0.79 Spanish stations per 100K Hispanic individuals in those markets, compared to an 1.26K non-Spanish stations per 100K non-Hispanic individuals. There were 302 Hispanic stations in 1998; now there are 561. 438 of these are in rated markets, and 191 are in the top 20 Hispanic markets.
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Transactions
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WRFS-AM Alexander City AL from Casey Network LLC to Joy Christian Communications Inc.
WAPZ-AM Montgomery AL (Wetumpka AL) from J&W Promotions Inc. to Contemporary Media Inc.
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Stock Talk
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Dow back above 10,000
Stock prices got a boost Wednesday, despite another rise in oil prices, with traders apparently convinced that corporate earnings are improving. The Dow Industrials rose 110 points, or 1.1%, to close back above the 10,000 mark with 83 points to spare.
Radio stocks were up almost across the board. The Radio Index gained 5.871, or 2.7%, to 227.099. The big mover was Spanish Broadcasting System, up 11.6% a day after selling two stations for 120 million dollars. Arbitron jumped 9.7% after signing a new contract with its second largest client, Infinity.
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Radio Stocks
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Here's how stocks fared on Wednesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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37.80
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+3.35
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Jeff-Pilot
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JP
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48.34
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+0.26
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Beasley
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BBGI
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13.44
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+0.25
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Journal Comm.
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JRN
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15.85
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unch
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| Citadel |
CDL |
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14.20 |
-0.07 |
Radio One, Cl. A
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ROIA
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15.58
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+0.38
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Clear Channel
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CCU
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35.69
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+0.20
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Radio One, Cl. D
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ROIAK
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15.40
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+0.36
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Cox Radio
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CXR
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17.46
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+0.19
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Regent
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RGCI
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6.07
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+0.11
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Cumulus
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CMLS
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15.92
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+0.18
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Saga Commun.
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SGA
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18.20
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+0.04
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Disney
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DIS
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22.26
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+0.28
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Salem Comm.
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SALM
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26.63
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+0.68
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Emmis
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EMMS
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20.02
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+0.22
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Sirius Sat. Radio
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SIRI
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2.16
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-0.08
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| Entercom |
ETM
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39.27
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+0.57
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Spanish Bcg.
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SBSA
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9.02
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+0.94
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Entravision
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EVC
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8.44
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+0.27
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Univision
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UVN
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34.71
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+0.08
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Fisher
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FSCI
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49.96
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+1.02
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Viacom, Cl. A
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VIA
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34.68
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+0.54
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Gaylord
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GET
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27.82
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+0.29
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Viacom, Cl. B
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VIAb
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34.33
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+0.65
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Hearst-Argyle
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HTV
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23.90
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+0.20
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Westwood One
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WON
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23.50
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+0.27
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Interep
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IREP
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0.59
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+0.01
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XM Sat. Radio
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XMSR
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26.49
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+0.71
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International Bcg.
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IBCS
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0.02
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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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Have a news story you'd like to share? radionews@rbr.com
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RBR Audiocast
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08/19 - Listen to what Real Local Radio Should Be... Listen to this morning's AudioCast and
Hold On To Your Hair!
 Listen Now
with Bob DeCarlo'
"In Da Morning"
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Bounceback
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We want to hear from you.
This is your column, so send your comments to radionews@rbr.com
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Broadcasters Helping Broadcasters
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Now that Hurricane Charley has cut a swath through Florida, it's likely that several broadcasters are among the local businesses who suffered damage from the storm's high winds and flooding. We were informed, for example, that Genesis' WHOO-AM Orlando lost two towers in the midst of its broadcasting emergency information. If your station suffered hurricane damage and is in need of equipment to get back on the air, please notify us by email, radionews@rbr.com, so we can post the need and see if another broadcaster is able to come to your assistance. Be sure to include contact information.
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Upped & Tapped
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Moose working
to the Max
Max Media Radio has increased duties for Mike "Moose" Smith. In addition to running the company's four North Carolina stations, he now Regional Vice President, responsible for Max Media's six Arkansas stations as well.
BE names new HD Radio Product Manager
Broadcast Electronics has appointed Ted Lantz as the product manager of its HD Radio product line. Ted served in various capacities for Broadcast Electronics over a 12-year period, including applications developer for the company's digital audio line.
Vallen heads to LA
PricewaterhouseCoopers has named Randall Vallen, who previously managed its Arizona and Nevada offices, as the firm's Southern California Assurance and Entertainment, Media and Technology Practice Leader, based in Los Angeles. (Should need an oversize business card for that one!)
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Stations For Sale
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California Central Coast
Class A, Rated Market
Asking 1.8M, Cash
Gallup, NM 100kw
Asking 550K-Terms, or 495K-Cash
Brett Miller / MCH Enterprises, Inc. (805) 237-0952 Direct
www.mchentinc.com
Outstanding and attractive real estate and equipment.
Western New York small market AM/FM combo.
No local competition.
Priced at 1.65M.
10 times trailing cash flow.
Contact Dick Kozacko.
Kozacko Media Services. rkozacko@stny.rr.com
607-733-7138
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RBR Radar 2004
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Click on these issues for Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
Infinity signs multi-year
deal with Arbitron
By bringing a good offer to the table, what it is we just are not sure yet, but whatever it is Infinity decided it was fair. RBR had stated the hard posturing from Infinity, may have been, but was, a bluff and wouldn't last a quarter. In fact, many in the industry said they knew this was all a "joke" from the start.
RBR observation: Infinity's biggest problem with Arbitron was and always will be price.
08/18/04 RBR #161
Newspapers face circulation
inflation conflagration
In a way, broadcasters are lucky. A station may wish to wring the necks of the good folks at Arbitron, Nielsen and Eastlan when facing a decline in audience, but at least someone the temptation to take matters into their own hands are nonexistent. They can't physically count the tune-ins occurring in the market.
RBR observation: Newspapers face another problem - - the availability of news and info on the Internet. There will still be ferocious competition between print and broadcast. Bottomline, newspaper's problems are broadcasting's gain. The scandals are another arrow in the quiver for broadcasting's street forces.
08/18/04 RBR #161
Bullish on clutter cutting
Wachovia Securities analyst Jim Boyle has studied the plan and is now a believer, although he's warning investors that there could be a tough patch in Q1 of next year.
RBR observation: Interesting take on the clutter since Boyle's focus was just about the same question of group heads to the conferences RBR monitored. RBR agrees with Boyle, as we first saw the winds blowing in Naples long before Charley that the "cracked" radio model should be fixed by cleaning up clutter, but it won't happen overnight.
08/17/04 RBR #160
Broadcasters responded to
changing Charley
Broadcasters jumped into action and fulfilled their most important role - - informing the public - - as Hurricane Charley devastated Florida. The Olympics took a back seat to storm coverage for NBC affiliates and just about every station - - AM, FM, TV and local cable - - pulled out all of the stops to deliver emergency information to viewers and listeners. RBR observation: This was broadcasting at its best. Radio coverage was less impressive, for the most part, given the limited scale of radio news operations in recent years, but at least they were providing useful information - - even if, in some cases! That meant carrying audio from a better-staffed TV partner. For NBC affiliates, general managers had to decide on Olympic coverage and they made the right decisions. Read the total report. 08/16/04 RBR #159
Hearst-Argyle ready to go private
Anyone who follows broadcasting stocks knows that Hearst Corporation has been a voracious buyer of Hearst-Argyle stock on the open market. Hearst has continued to be the company's largest shareholder throughout those seven years. RBR observation: They have the right idea and if they go private Hearst just may be the leader some public companies, especially in radio, need to get the heck out of that Wall Street rat race. We've heard the saying - 'If Wall Street doesn't Love us then we will buy back our stock' - can't continue saying it forever. 08/16/04 RBR #159
Emmis assents to consent,
agrees to pay
Enriching the US Treasury by 300K dollars following in the footsteps of Clear Channel, but not leaving anywhere near as large a footprint in payment. It will also scrub clean the radio group's file. As part of the deal, Emmis admitted that is broadcast at least some actionably indecent material. RBR observation: There must've been something at least mildly juicy in the hopper.
08/13/04 RBR #158
Infinity nailed
Everyone's been waiting for the other shoe to drop on Viacom/Infinity. Infinity's been fined, but we're STILL waiting for the other shoe to drop. The fine is for airing a phone call on Urban WBLK-FM Buffalo NY without first informing the caller. It's a 4K dollar forfeiture order. Infinity tried to wriggle out of it, to no avail. RBR observation: We're all wondering when the real fine will come - - the Howard Stern doozy. The FCC already hit up Clear Channel to the tune of 495K dollars for a Howard show aired on only six stations. How hard can it be to figure out how much Infinity owes for all of its Howard stations? And what about the Super Bowl incident? Is anything going to come of that? Can Viacom/Infinity's vow to fight have anything to do with the delay? 08/13/04 RBR #158
Arbitron says response rates are up
Reports success in raising response rates for the Spring 2004 since they 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.
Editor's note: The Chart tells the story. 08/12/04 RBR #157
News Corporation board
ready to immigrate
Outside directors has given its go-ahead to Rupert Murdoch's proposal to reincorporate the company in the United States. RBR observation: As we noted back in April, some days it is always about the money.
08/12/04 RBR #157
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Dir. Affiliate Relations
Waitt Radio Networks seeks Leader to Manage Affiliate Sales Team plus handle a regional territory. GM experience required. Must relocate to Omaha, NE Office. Competitive compensation and benefits. Contact Rod Schmidt.
For more on all ad details above
see Radio Careers |
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