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Welcome to RBR's Daily Epaper
Volume 24, Issue 162, Jim Carnegie, Editor & Publisher
Monday Morning August 20th, 2007
RBR Observation
The case for performance
fees fairness

We admit it. The MusicFirst Coalition is right: "Radio should be held to the same standards and should play by the same rules as its competitors." Agreed. AM and FM stations should pay the same performance royalties as Internet streamers and satellite radio - and that royalty rate should be zero. The radio industry should be aligning itself more closely with the Internet streamers to not only fight the outrageous CRB increases in Internet streaming fees, but to have Congress eliminate them altogether. Just as AM and FM radio airplay sells records, Internet radio airplay sells records. In fact, the Internet guys have added a great bonus to the record companies and artists that over the air broadcasters could never provide - a way to click through and immediately buy the music the listener is hearing. And with the broad variety of music that can be offered through unlimited Internet streams, new markets are being created for obscure music genres and markets are being rejuvenated for the sale of oldies from artists such as Sam Moore and Judy Collins. Similarly, new HD Radio channels will be a boon to record sales once enough receivers are in the market. Radio sells records. We know it. Record company executives know it. Artists know it. One cockeyed economics professor at the University of Texas at Dallas has devised a formula to "prove" that radio airplay hurts record sales - a formula that no doubt could also "prove" that the sky is green and the grass blue - but that doesn't change the fact that the record industry would see billions of bucks in diminished record sales if, somehow, radio airplay were to disappear. The satellite radio guys, whose brilliant business strategies are well known, were stupid enough to willingly sign contracts right up front to pay out performance royalty fees for the privilege of promoting record sales, so we don't know if it would be possible to include them in such a coalition to seek fairness on Capitol Hill. But for AM radio, FM radio, HD Radio and Internet radio, the common cause should be congressional action to level the playing field and make no one pay for helping the record companies sell their wares. Local radio operators time now to get in touch with your congressional reps as they are home for recess. Time for local radio to unite and kick ass!

RBR note: RBR encourages your view on this topic so send your comments and a photo to [email protected]


Radio News ®

July another Downer
Bank of America analyst Jonathan Jacoby says it looks like radio revenues in big markets were down around 2% in July, but he's holding with his down 1% estimate overall, since the smaller markets have been outperforming their larger brethren. We note that Jacoby is predicting only one more up month this year, September, and that by only 1%. So far this year, RAB has reported three up months and three down ones. Jacoby is predicting that July will come in down 1%, August flat, September up 1%, October and November each down 1% and December flat, bringing the full year 2007 in flat will 2006. The BofA analyst has a "buy" recommendation on only on stock in the radio sector: Radio One. "We remain neutral on the group, but feel that Radio One is simply oversold. Yes, Radio One has a covenant issue, coupled with weak fundamental performance. But there is no reason to believe the covenants won't be able to be renegotiated over the next few months. Simply put - the leverage concerns don't justify the sell-off," Jacoby said in his note to clients.

RBR observation: The downers as Wall Street views it will continue until many in the public ranks operate their facilities instead of portfolio management. RBR stated our view on the necessary moves radio needs to improve and worth repeating. Saga's Ed Christian said on radio it just got lazy. Well add greedy, lack of innovation, being cheap to this long list. Radio leaders are NOT addressing the real issues of the medium dealing with Content, Technology, and New Revenue Development and if they were there are not enough local creative people in charge to accomplish this task. Wall Street should hold the CEO's feet and all body parts to the fire. They make the mega bucks with perks while their stock is in the crapper. RBR can not think of one business were mega salaries is rewarded for bad performance except a pink slip. Wall Street - Time to stop beating up on the total radio medium as it is time to take the real downers to task -- the CEO's -- and hold them accountable.

NABOB calls again for PPM slowdown;
Arbitron remains confident

For the second time, the National Association of Black Owned Broadcasters (NABOB) has called for Arbitron to postpone its rollout of Portable People Meters (PPM) in more markets until it corrects what NABOB asserts are "serious flaws" with the audience measurement technology. "Arbitron has issued several months of PPM data, and it is clear, not just to our members, but to the radio industry as a whole, that this new technology is flawed. We have seen all radio audiences decline, and urban radio station audiences decline significantly, under PPM. Early on we expressed to Arbitron the problems of reliability of their data caused by the low sample size used, particularly among African-Americans in the 18-24 demo. The samples in both Philadelphia and Houston for this demo have been consistently and substantially below the proportion of the population represented by this demo, and substantially below the sample size Arbitron set for itself to reach," said Jim Winston, Executive Director of NABOB. Arbitron discussed last week with reporters how it is dealing with PPM sample shortfalls in Houston and Philadelphia (8/16/07 RBR #160), but the data being generated is "statistically valid," CEO Steve Morris insisted. "We remain confident in the validity of the PPM service in Houston and Philadelphia. The PPM ratings are not flawed. Major broadcasters have also shown their confidence in the PPM system by continuing to sign long-term contracts for PPM ratings services," Arbitron said Friday in a statement issued in response to NABOB. "We will continue to work with NABOB on the issues they have raised. We will continue to review with all broadcasters the initiatives that are part of our effort to continuously improve the quality of our PPM samples," Arbitron said. During the press briefing Wednesday, Arbitron officials noted that Emmis Radio President Rick Cummings has organized a coalition within Urban radio which is working on "The Power of Urban Radio in a PPM World," which will be presented for the first time at the next Arbitron consultant fly-in.


Nader Rushes a complaint
to the FCC

An article in Automotive News published earlier this month noted how General Motors has been providing motor vehicles to various radio/television personalities, and schedules tours of GM facilities and sit-downs with GM execs. One-air mentions have followed, and watchdog icon Ralph Nader thinks this is something the FCC should be investigating. The Detroit Free Press list of personalities in on the arrangement included Rush Limbaugh, Bill O'Reilly, Laura Schessinger, Whoopi Goldberg, Sean Hannity, Ryan Seacrest, Glenn Beck, Delilah, Laura Ingraham, John Tesh and others. The Automotive News article cited by Nader details praise for GM from Limbaugh and others. In his letter to the FCC, which was copied to Chairman Kevin Martin (R) and Commissioner Jonathan Adelstein (D), Nader pointed out that a regulation "requires that, when anyone provides or promises to provide money, services or other consideration to someone to include program matter in a broadcast, that fact must be disclosed in advance of the broadcast, ultimately to the station over which the matter is to be aired. Based on this article, it appears that content of the broadcasts may violate the sponsorship identification rules." He added, "In any event, the FCC needs to investigate."

RBR observation: Pay-for-say, the quiet little brother of full-blown payola, has reared its ugly head in a number of different ways recently. There have been columnists and commentators hired by the Bush administration to surreptitiously promote policy; there have been flaps when so-called product experts have favorably reviewed items over the air, items they were paid to positively review. If somebody gives you a candy bar to try for free, and you praise it over the air, we think you're OK as long as you acknowledge the prior transaction. But if you suddenly launch into a prose poem about the virtues of the candy bar without mentioning that you received it as a gift, you have found the thin ice. This is one of Adelstein's pet peeves, and whether or not the GM flap has any legs in its own right, it will probably at the very least allow him to continue further inquiry into the whole payola/pay-for-say issue.

Florida pirate shut down
A Creole/Haitian pirate FM is off the air in Stuart, FL after an FCC raid on last week. An FCC investigator and a detective from the Martin County Sheriff's Dept. arrested Henry Gay for operating the pirate station on 100.1 FM from a 150-foot tower in the yard of a home just south of that city. The signal was interfering with the signal of WJPP-LP Palm City. According to The Palm Beach Post, Gay was charged with a felony of interfering with radio communications and released from the Martin County jail on 5,000 dollar bond. The tower is owned by a local plumbing company and was once used for two-way radio communications. Company officials leased the space on the tower to Gay. It was estimated Gay was using a 1,000-watt transmitter to send his signal. St. Andrew Catholic Church in Port Salerno, which is trying to operate the LP, has a 100-watt transmitter.


Plaudits for proactive
preteen programmers

Ed Markey (D-MA) has taken point on Capitol Hill in when it comes to the fight against childhood obesity, and across the mall at The Portals, FCC Commissioner Deborah Taylor Tate has done the same. The media is inextricably tied to the issue, and both Markey and Tate are congratulating two cable services located at ground zero, Nickelodeon and The Cartoon Network. The two web nets closely followed similar action from Discovery Kids. In particular, the trio are going to restrict the use of their animated talent as celebrity spokespersons for unhealthy foods. Markey said, "In my view, limits on the amount of junk food advertising seen on children's television, along with strong nutrition standards for food and beverage products advertised and utilized with licensed characters for such children's TV shows, will help address childhood obesity in a positive way." Tate, speaking to the Nickelodeon announcement, added, "It's another great day for families. Nickelodeon joins a growing group of children's programmers pledging to America's families that their characters will promote healthier foods and lifestyles. I hope announcements like this one challenge other children's programmers to consider similar pledges."

RBR observation: Washington is just itching to do some regulating when it comes to the issue of childhood obesity and the promotion tactics of junk food manufacturers. It is important to remember that the courts have traditionally held that commercial speech is not quite as free as standard, every day speech, which allows regulators and legislators room to maneuver. So far this summer, stakeholders on both the media and manufacturing end have been adjusting in advance of a childhood obesity task force report which is expected to be out in September. It looks like this may well be a case where voluntary action will be sufficient to head off regulatory action.

A legal eagle-eye view of AMs on FM
The FCC has been allowing signal-challenged AM stations to fill in holes in their coverage via the judicious use of FM translators on a case-by-case basis. It is looking to open that avenue up, and is seeking commentary. Womble Carlyle Sandridge & Rice attorney Peter Gutmann has summarized the ins and outs of this proceeding, which we will pass on intact below the click. As usual, Mr. Guttman's comments are not meant to be used as cage lining, paper airplanes or, more particularly, as the basis for actual litigation.
| Comments here |


Ad Business Report TM

New online
automotive dealership

Super-serving advertisers while gaining a foothold in local online dollars: CC Radio announced the launch of their new online consumer/dealer automotive solution, DFWAutoplex.com, the first local automotive lead generation website launched by a radio group. Consumer get quick and easy access to shop and gather information among the thousands of vehicles that are listed. The site also features an easy way for them to market their own vehicles through the site's "For Sale by Owner" application. Local DFW Automotive Dealers will enjoy the ability to list their entire new and pre-owned inventory complete with pix and detailed vehicle info but most importantly, will benefit from the local lead generation the site is designed to produce. Said Donnie Campbell, AE, Clear Channel Dallas. "The automotive marketing model has changed dramatically over the last few years with the shift of advertising budgets moving to on-line and on-line lead generation websites. Clear Channel Dallas recognizes this trend and wanted to provide a lead generation website for our automotive clients that is supported by our local radio stations." The site will be promoted through the five CC Radio stations in the Dallas/Ft Worth market. Combined, the stations reach a potential car buying audience of over 1.8 million people weekly. Each station will also highlight DFWAutoplex on their respective websites and out at station events. The CC Dallas Radio group includes KHKS, KDMX, KDGE, KZPS and KEGL.

Sizzler names Ground Zero AOR
Sizzler USA today announced the appointment of Ground Zero as its advertising agency of record for strategy and creative. Ground Zero will work with Sizzler on branding and promotional campaigns due to be unveiled early in 2008, the year marking the 50th anniversary of the Sizzler brand. Acquired by Australian-based Pacific Equity Partners in 2005, Sizzler owns or franchises more than 300 mid-scale casual dining restaurants worldwide. Having updated its restaurants, menus and marketing, Sizzler is expanding in the U.S., Asia and Latin America. The chain will celebrate its 50th anniversary in January 2008. Its overall U.S. advertising and marketing expenditure in 2006 was approximately 10 million. Ground Zero is best known for its work on behalf of the California Department of Health Anti-Smoking Campaign, Virgin Digital, The History Channel International and ESPN.


Media Business Report TM
Talkers focus on 2008
During a week when much of the news hole transitioned from a disaster in Minnesota to one in Utah, the 2008 presidential campaign still managed to get the lion's share of the coverage with 16% of available time and space. The Project for Excellence in Journalism talk index found the gabmeisters more than willing to ride that train. In fact, they more than double the attention of newsers, giving the campaign a whopping 35% of the hole. Two events, the YearlyKos Convention for Democrats and the Iowa Straw Poll for Republicans, helped fuel the chat. Talkers agreed with newsers that the Utah mine disaster was the #2 story, but gave in only 11% compared to the 13% it got over in the news department.


Media Markets & Money TM
Close encounter in Nebraska
G.I. Family Radio is now the proud owner of two FM DIY projects. It has CPs for stations in Paxton NE and Sutherland NE, which it has acquired from College Creek Radio. According to Media Services Group broker Jody McCoy, the price is 475K. The Paxton CP is for Class C1 on 93.5 MHz with 100 kw @ 753'; the Sutherland CP is for Class C1 on 100.7 MHz with 100 kw @ 753'.


Washington Media Business Report TM
Let's go out to the lobby
Who spent more bending the ears of Washington-types during the first half of 2007, Clear Channel or the National Association of Broadcasters? We are happy, we guess, to report that the big winner was NAB, as well it should be since that is a major part of its job. According to reports, Clear Channel dropped 1.2M working various DC lobbies, while the NAB dropped 4.3M. Both were working to head off the establishment of a performance tax. NAB also spent quite a bit trying to head off the XM/Sirius merger, among other things. Clear Channel had some tax issues it was trying to work on.


Entertainment Media Business Report TM
KPIG commentator arrested on drug, weapons charges
Travus T. Hipp, a 70-year-old Nevada commentator who airs on stations including KPIG-FM Freedom, CA was arrested last week on weapons and drug charges. Hipp (Chandler Laughlin) is known for his libertarian views and often criticizes government in his syndicated commentaries that mostly run in California. His arrest was the result of a yearlong investigation into allegations he sold marijuana out of his home in Silver City, NV. Deputies executed a search warrant at his home Thursday and recovered 4 ounces of marijuana, three ounces of peyote, a handgun and drug paraphernalia. Hipp said he has had a medical marijuana card from California for several years and denied selling drugs, according to an AP story. Hipp posted a bond and was released from the county jail. He faces five counts of drug possession, one count of selling a controlled substance and one count of being an ex-felon in possession of a firearm. "I'm a commentator, not a drug dealer," Hipp told the AP.

KFRC announces all-star line up
KFRC-Fm San Francisco announced Celeste Perry has been selected as the permanent co-host of the new KFRC morning show with host Dave Sholin and producer James Baker broadcast weekdays from 5:30-10:00AM. Perry's first day with the show was August 13th. The station also announced the return of longtime KFRC personality Sue Hall as 106.9's newest midday host (10:00AM-3:00PM) effective immediately. Additionally, beginning on July 23rd, Jay Coffey took over afternoon drive (3:00-7:00PM) and Steve Moore entertains listeners in the evening (7:00PM-12:00Midnight). Another former alumni, John Mack Flanagan, rejoins the station on Saturdays from 9:00-10:00AM with "The Magical Mystery Tour" and Sundays from 9:00-10:00AM with "Brunch with the Beatles." His first broadcast was August 4th.


Ratings & Research
Branding increases pricing consumers
willing to pay for Surround Sound

Among consumers who indicate they are highly interested in having a premium surround sound system in their next vehicle, more than 80% are willing to pay twice the average market price for a branded system, according to the J.D. Power and Associates 2007 U.S. Automotive Emerging Technologies Study. The study is designed to measure consumer familiarity, interest and purchase intent for emerging automotive technologies both before and after an estimated market value is revealed. The study finds that the majority of consumers who are highly interested in premium surround sound are willing to pay an average of 1,000 for a branded system, which is twice the suggested market price of 500. In general, interest in audio-related features is high among consumers, with 60% saying they are interested in a system capable of playing multiple audio formats. Additionally, at a market price of 100 dollars, 50% of consumers are interested in a USB interface, and 43% are interested in an iPod interface at a slightly higher market price of 150. Among the features examined in the study, rear-seat entertainment system, in-vehicle Internet and wireless connectivity yield the largest gaps in interest-prior to the introduction of price-between younger consumers and older consumers. The study also finds that many safety-related technologies continue to garner higher interest levels from consumers. After the introduction of price, new-vehicle owners are most interested in two-stage smart airbags, which inflate in multiple stages, with less pressure and help to protect passengers from potential injuries associated with traditional (one-stage) airbags. Following two-stage smart airbags are backup assist and run-flat tires, which are also safety-related technologies. Once average market prices are revealed, the study finds that rear-seat entertainment systems (1,500) and collision mitigation systems (1,750) receive the lowest interest levels from consumers of all emerging technologies examined in the study. These features are also among the most expensive features examined in the study. Other technologies with low interest after the price is revealed are lane departure warning system and in-vehicle Internet.

Sports sponsorships to hit 13.24 billion by 2011
While online and mobile channels are emerging as increasingly viable ways to deliver sports content, information and advertising to sports fans, traditional media make up the core of the sports marketing economy and will continue to grow through 2011. Using data from the IEG Sponsorship Report as a benchmark, eMarketer estimates that sports sponsorship spending in North America will rise to 13.24 billion by 2011, up from 8.94 billion in 2006. The IEG Sponsorship Report estimates that sports sponsorship spending in North America will represent two-thirds of the projected 14.93 billion that will be spent on all sponsorships in North America this year. Sports' share of this pie has not changed by more than a few percentage points since 2001, and IEG expects that this category will continue to dominate sponsorship spending well into the future. Of course, old-fashioned television advertising is another key driver of the sports economy. eMarketer estimates that broadcast TV, national cable and regional cable advertising revenues on US sports media will total 10 billion by 2011, up from 8.2 billion this year. Although traditional channels will continue to make up the lion's share of sports marketing spending, the Internet will grow at a faster rate than any other medium over the next five years, according to eMarketer estimates. By 2011, 10% of advertising revenues on sports media will accrue to sports sites, up from roughly 5% in 2006.


Engineering Business Report TM
Divergent mobile TV standards becoming the norm
Over the last few months, various market developments have spawned a new dynamic in the broadcast mobile TV marketplace. With the European Commission favoring DVB-H as the Pan-European broadcast mobile TV standard, AT&T abandoning Modeo and DVB-H in favor of MediaFLO, and Crown Castle's subsequent divestiture of Modeo's spectrum, the lines defining a strong regional base for various standards are becoming clear. IMS Research is forecasting that by 2011 the Americas region will account for 60% of worldwide FLO subscribers. Similarly, Europe is forecast to claim 61% of worldwide DVB-H / DVB-SH subscribers. Other standards, such as T-DMB and ISDB-T, are also expected to become increasingly region-specific between 2007 and 2011, with an increasing number of these standards' subscribers coming respectively from Korea and Japan. Said Anna Hunt, Research Director at IMS Research: "Operator and government decisions about which mobile TV standard to deploy in each country or region depend on a number of variables including spectrum availability, existing cellular and DTT infrastructure, market needs, and national political and economic interests. This has resulted in a situation where in certain regions, different standards gained a distinct advantage in building the consensus required to deploy a broadcast network, thereby gaining the first-mover advantage so key in a standards war."


Monday Morning Makers & Shakers

Transactions: 7/2/07-7/6/07
Only four stations changed hands this week (we're not counting two Georgia FMs parked by Clear Channel in the Aloha trust). Two television transactions accounted for the fairly respectable total for the week given the small volume. Radio was almost invisible. We hope the brokerage community at least enjoyed the fireworks.

7/2/07-7/6/07

Total

Total Deals

4

AMs

1

FMs

1

TVs

2
Value
34.631M
| Complete Charts |
Radio Transactions of the Week
Radio Training Networks tops slow week
| More...
|
TV Transactions of the Week
Frontier gets a piece of Piedmont
| More...
|


Transactions
7M WJJA-TV Milwaukee WI (Racine WI, Indy, Channel 49). 100% of TV-49 Inc., from Joel J. Kinlow to Channel 49 LLC, a subsidiary of Weigel Broadcasting Company (Howard Shapiro, Norman Shapiro, Fred Bishop). 250K escrow, balance in cash at closing. Duopoly with WDJT-TV (CBS, Channel 48). [File date 7/30/07.]

991K KSFR-FM Sante Fe NM from Santa Fe Community College (Sheila Ortego) to Educational Media Foundation (Richard Jenkins). Swap for KSFQ-FM Santa Fe NM (White Rock NM). EMF will also pay 50K for plant improvements at the KSFQ tower site, 35K for fees to Public Radio Capital, 15K for KSFR promotional expenses, 25K for SFCC's "Give Back" fund, up to 10K for SFCC legal fees and up to 6K for SFCC engineering fees. Price is an RBR estimate. LMA until closing. [File date 7/26/07.]

850K KSFQ-FM Santa Fe NM (White Rock NM) from Educational Media Foundation (Richard Jenkins) to Santa Fe Community College (Sheila Ortego). Swap for KSFR-FM Sante Fe NM. EMF will also pay 50K for plant improvements at the KSFQ tower site, 35K for fees to Public Radio Capital, 15K for KSFR promotional expenses, 25K for SFCC's "Give Back" fund, up to 10K for SFCC legal fees and up to 6K for SFCC engineering fees. Price is an RBR estimate. LMA until closing. [File date 7/26/07.]


Stock Talk
Confidence restored, at least for a day
Stock prices rose across the board on Friday after the Fed cut its discount rate to boost liquidity in the banking industry. Has that permanently calmed worries about the credit markets? We wait to see. The Dow Industrials surged 233 points, or 1.8%, to 13,079.

Radio stocks joined in the advance. The Radio Index gained 2.096, or 1.7%, to 125.577. The biggest gainers were Entravision, up 6.8%, Lincoln National Group, up 6.6%, and Cox Radio, up 4.4%.


Radio Stocks

Here's how stocks fared on Friday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

51.77

+0.87

Google

GOOG

500.04

+8.52

Beasley

BBGI

7.12

-0.02

Hearst-Argyle

HTV

20.46

+0.72

CBS CI. B CBS

30.25

+0.94

Journal Comm.

JRN

11.68

+0.32

CBS CI. A CBSa

30.29

+1.01

Lincoln Natl.

LNC

60.28

+3.71

Citadel CDL
4.30 -0.20

Radio One, Cl. A

ROIA

3.94

+0.04

Clear Channel

CCU

35.07

+0.55

Radio One, Cl. D

ROIAK

3.90

-0.04

Cox Radio

CXR

13.38

+0.56

Regent

RGCI

2.90

unch

Cumulus

CMLS

9.51

+0.20

Saga Commun.

SGA

8.15

+0.20

Debut Bcg.

DBTB

0.60

-0.40

Salem Comm.

SALM

9.07

-0.02

Disney

DIS

32.68

+0.10

Sirius Sat. Radio

SIRI

2.80

+0.09

Emmis

EMMS

6.27

+0.07

Spanish Bcg.

SBSA

2.95

+0.07

Entercom

ETM

21.58

+0.43

SWMX

SMWX

0.08

unch

Entravision

EVC

8.76

+0.56

Westwood One

WON

3.12

+0.11

Fisher

FSCI

50.53

+1.74

XM Sat. Radio

XMSR

10.86

+0.31


Bounceback

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Below the Fold
Ad Business Report
New online auto dealership
Super-serving advertisers while gaining a foothold in local online dollars...

Media Markets & Money
Close encounter in Nebraska
G.I. Family Radio is now the proud owner of two FM DIY projects...

Washington Media Business Report
Let's go out to the lobby
Who spent more bending the ears of Washington-types and winner Is...

Ratings & Research
Branding increases
Pricing consumers willing to pay for Surround Sound...




Stations for Sale

The Exline Company
AMs - San Jose,
Salt Lake City, Fresno
FMs - Northern CA, Coastal CA,
Central CA, Idaho, Oregon
Call Andy McClure or Erick Steinberg
(415) 479-3484 [email protected]

Market your Stations For Sale
in our daily epapers.

Contact
June Barnes
[email protected]


Radio Media Moves

Regent names Larry Downes VP/Technology
Regent Communications announced the appointment of Larry Downes to the newly created position of Vice President - Technology and Digital Media. In addition to overseeing Regent's IT infrastructure, Downes will direct Regent's integrated online strategy which is focused on expanding the company's radio station brands and content into the digital world. Downes was most recently the National Group Director of Integrated Media at Saga Communications and was previously Director of New Media for Susquehanna Radio in Indianapolis.




More News Headlines

CBS Mobile Adds Big Brother 8 Channel
Marking the first time content from a primetime television show has aired live and continuously on mobile handsets in the U.S., CBS Mobile, Verizon Wireless and MediaFLO USA, subsidiary of QUALCOMM, have teamed up to provide a new channel dedicated to Big Brother 8. The channel will air a real-time, 24/7 feed of the activity inside the Big Brother House from 8/19 through the season finale on 9/18. In total, hundreds of hours of live programming will air on the Big Brother service, which is available at no additional charge to V CAST Mobile TV subscribers. The dedicated Big Brother 8 channel will supplement regular programming from CBS Mobile, one of the eight regular services available on FLO TV, which is available to consumers on V CAST Mobile TV from Verizon Wireless. Other services include Comedy Central, ESPN Mobile, FOX Mobile, MTV: Music Television, NBC2Go, NBC News2Go and Nickelodeon.

Tony Snow leaving the White House, too
White House press secretary Tony Snow will quit the job before the end of the Bush presidency because of financial pressures, he said. Snow, the former Fox News Radio syndicated host and pundit, has held the WH post for 16 months and is battling colon cancer. He is reportedly adamant that money, not cancer, is behind his decision. Political strategist Karl Rove announced last week that he would leave at the end of the month. Long-time Bush adviser Dan Bartlett left earlier this year and Andrew Card also departed as Bush's chief of staff. Snow reportedly makes 168,000 bucks as an assistant to the President but made considerably more with Fox News Radio. Speaking on The Hugh Hewitt Show, the father-of-three said: "I've told people when my money runs out, then I've got to go." He said he had enjoyed his time in the role. Perhaps he will be offered a raise?




International

BBC programming pulled off FM station in Moscow
BBC World Service has been informed by the owners of the Moscow FM radio station Bolshoye Radio that BBC programming in Russian will no longer be broadcast on the station, as of Friday. This was the BBC Russian Service's last FM distribution partner station in Russia. It follows two other FM partner stations ceasing to take BBC programs over the last nine months. The owners of Bolshoye Radio, financial group Finam, have told representatives of the BBC Russian Service that they are required to remove BBC programming at the request of Russian licensing authorities, or risk the station being taken off air. The BBC intends to appeal to Russia's Federal Service for the Supervision of Mass Media, Communication and Protection of Cultural Heritage. It will ask for the decision to be reviewed and for the original concept of the station to be respected. According to official warnings received by Finam from the regulatory body, the license requires that all programming must be produced by Bolshoye Radio itself. However the BBC said that the detailed concept documents - the basis on which the license was awarded in February 2006 - clearly state that only "60% of the station's total output will be original material produced by Bolshoye Radio". The BBC has had previous problems with FM broadcasting in Russia. At the end of 2006, Moscow station Radio Arsenal ceased taking BBC programming, and in early 2006 the St Petersburg station Radio Leningrad also stopped taking BBC programs. Radio Leningrad informed the BBC that it had been required to stop broadcasting BBC programs by local licensing authorities.




TVBR - TV News

NAB, MSTV defend digital must-carry
Cable carriage issues remain as the 2/17/09 deadline for the digital rushes ever closer. The National Association of Broadcasters and the Association for Maximum Service Television have joined forces in reply comments to an FCC inquiry, holding that must carry should carry forth into the new digital regime and that CATV industry arguments to the contrary do not hold water. Cable has an obligation to provide local over-the-air broadcast stations to its subscribers, and may down downgrade the signal. That is has options on how to do this, NAB/MSTV argue, eliminates any First Amendment concerns. They also point out that digital technology render moot any capacity objections. They further charge that the CATV's effort to limit its obligations to a bare minimum are anti-consumer. NAB/MSTV also seconds the FCC's recommendation to use loss of bits as the defining standard of material degradation of a broadcast signal, and to hold cable operators responsible to assure that there is no such degradation. "In sum," they conclude, "the cable industry has shown no legal, constitutional or policy reason why the Commission should not adopt its pro-consumer proposals in this proceeding."


RBR Radar 2007
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Jacobs backs Regent dissidents
Included in the lawsuit that Regent Communications has filed against Riley Investment Management and SMH Capital are copies of faxed letters from Regent co-founder and former CEO Terry Jacobs joining in the request for a special shareholders meeting. Jacobs, however, is not named as a defendant. He did not return a call from RBR seeking comment on what he wants to see happen at the company he co-founded with current CEO Bill Stakelin. In his letter, Jacobs declares that he is the holder of 400,031 shares of Regent stock. His request is identical to that filed by Riley and investors represented by SMH calling for a special meeting on September 3rd to change the company's bylaws to increase the size of the board of directors and elect the four nominees proposed by Riley.

RBR observation: Not every major shareholder approached by Riley agreed to submit a demand for a special shareholders meeting. Regent's lawsuit says long-time director Jack Wyant, who owns over 8% of the company's stock, was solicited by John Ahn, one of the men Riley wants to place on the board, but that Wyant declined to join in the call for a special meeting.
08/17/07 RBR #161

Entercom and Nassau
in New England partnership
A letter of intent has been signed to have 11 Nassau Broadcasting stations carry the programming content of Entercom's Sports/Talk WEEI-AM Boston throughout New England. And, in a separate letter of intent, Entercom and Nassau agreed to form a joint venture to own and operate Nassau's Classical WCRB-FM in Boston. Full details in RBR
08/17/07 RBR #161

Regent fires back
After being sued last week by Riley Investment Management, which is trying to force a special shareholders meeting (8/10/07 RBR #156), Regent Communications has now sued Riley in Delaware Federal Court, along with SMH Capital, accusing Riley and SMH of federal securities law violations.

RBR note: For the complete details on this fight review RBR.
08/16/07 RBR #160

Icahn knows how to play the spread
Carl Icahn may be known as a corporate raider, but he is also an arbitrageur. With Clear Channel's stock trading well below the price of its pending going-private buyout, it appears Icahn has been buying shares to turn a quick profit.

RBR observation: We would not be surprised to find when the Q3 report is filed that Icahn has added to that Clear Channel stake. The credit nervousness in the markets recently beat the stock down as low as 35 bucks. There are no indications, though, that the buyout is in danger of falling apart.
08/16/07 RBR #160

Arbitron working to
boost PPM samples
Arbitron officials said yesterday that they are working to replace households classified as poor responders in its first two PPM markets and that it is taking longer than expected.

RBR observation: Is there going to be a one-year shakeout period in every top 10 market, with buyers trying to pay 70% of what they should be paying? You can't blame them for trying. Rate integrity is already a big problem, and worse in some of the largest markets than elsewhere. A lot of education is going to be needed for media planners and buyers, but then radio stations are going to have to stand firm on rates (anyone remember how to do that?) so that they are not paying 65% more for a new ratings system that reduces the value of their inventory by 30%. Ouch!
08/16/07 RBR #160


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