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Volume 24, Issue 171, Jim Carnegie, Editor & Publisher
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Friday Morning August 31st, 2007
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Radio News ® |
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RBR returns on Tuesday, September 4th.
Notice: RBR returns on Tuesday, September 4th. The RBR/TVBR/MBR offices will be closed Monday, September 3rd, in observance of Labor Day
AM auction set for Arbitron market #1
The FCC has set a window of October 1-5 for applicants to file for a new AM station in the New York market, specifically for Rockland County at 1700 kHz in the expanded AM band. The filing window is the result of a successful effort by Alexander Broadcasting, licensee of WRCR-AM Spring Valley, NY, to get the FCC freeze on expanded band applications thawed slightly to allow for this one AM auction. Alexander wants to move WRCR from its current 1300 position, with only 500 watts day/83 watts night, to the proposed 10kw day/1kw night on 1700. That, of course, would give it pretty good coverage of the New York Metro, while its signal now is limited to the far suburbs.
The justification, though, for opening this application window is to provide emergency information to folks in Rockland County living near a nuclear power plant. “To ensure that the AM station will serve the critical public safety needs of those residents within the Indian Point Emergency Planning Zone designated by emergency authorities, the Commission mandated that applicants specify a community of license in Rockland County, New York. In addition, the proposed AM facilities must, at a minimum, provide service to (i.e., place a daytime 2.0 mV/m contour and a nighttime interference free contour) over more than 50% of the persons residing in the Rockland County portion of the Indian Point Emergency Planning Zone,” the FCC noted in the auction announcement.
RBR observation: It was just a little over a year ago that we reported the success of Alexander Broadcasting in getting the FCC to grant an exception to the freeze. It took support from lots of folks with political clout to push the exception through, after it was first turned down by the Commission. Now it has taken another 12 months just to get to the point of scheduling the auction. The wheels turn slowly, but at least they are turning.
Tribune studio up for sale
Since new Tribune Company director-investor Sam Zell made his billions mostly from buying and selling real estate, it is hardly surprising that the company is reassessing its real estate portfolio. The big property on the block now is the former Warner Brothers studio in Hollywood, which now houses KTLA-TV (Ch. 5, CW), Tribune Entertainment and Tribune Studios. The Los Angeles Times, also owned by Tribune, quotes a local real estate expert as estimating that the property is worth around 175 million. Warner Brothers began building the grand facility in 1919. The Colonial-style main building, known as “Tara,” completed in 1923, and a sound stage on the lot are registered historic properties, subject to restrictions on any changes. But there has been a resurgence in investment interest in Hollywood properties in recent years, so there could be considerable interest in the property.
RBR observation: KTLA and every other TV station in LA could easily fit into this facility, so Tribune hardly needs the massive property it got when it acquired KTLA from Gene Autry in 1986. Tribune can cut debt by selling the property and then lease space elsewhere for new, updated studios for KTLA. Lots of production companies lease studio space to produce TV shows, in fact quite a few lease from Tribune Studios, so that will be no problem for Tribune Entertainment.
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Morning shows show more Democrats
Thse right-leaning Media Research Center (MRC) is out with a report complaining that the morning news shows on NBC, ABC and CBS devote far more coverage to Democratic candidates for President than to the Republicans. Is it bias, a “liberal agenda” or just following the news? After monitoring ABC’s “Good Morning America,” CBS’ “The Early Show” and NBC’s “Today” show from January 1 through July 31, MRC said it found that nearly twice as many campaign news segments covered the Democrats as the Republicans and that Democrats got three times as much airtime. Sen. Hillary Clinton (D-NY) got the most exposure, followed by former Sen. John Edwards (D-NC) and Sen. Barack Obama (D-IL), all well ahead of the top Republican, Sen. John McCain (R-AZ). “Of the interview questions that could be categorized as having a political agenda, more than two-thirds (69%) of the questions posed to Democrats reflected a liberal premise, and more than four-fifths (82%) of the questions to Republicans came from the same perspective,” MRC charged. “Our results show pure partisanship on the part of ABC, CBS and NBC. Not only are the network morning shows overwhelmingly focused on Democrats, they are actively promoting the Democrats’ liberal agenda.” declared MRC President L. Brent Bozell III.
The networks deny any bias, and say they are covering the campaigns based on news value. Some news executives also complain that the GOP candidates have repeatedly turned down invitations for appearances on the morning shows.
RBR observation: This is the first time since the introduction of television that we have had a US presidential election without either a sitting President or his Vice President in the running, creating a real horse race in both major parties. Let’s face it, there is more drama in the Democratic race at this point. That will change once the nominees are selected and it becomes a two-person competition for the White House.
CNN to stop using Reuters
CNN said on Thursday it would stop using the Reuters news service, ending a 27-year relationship, to cut costs and invest in its own news gathering operations. CNN said in an internal memo that it wanted to reduce reliance on agency material while achieving better control of its growth. "This is all about us, not Reuters. This is about content ownership," CNN spokesman Nigel Pritchard said. "Everything is changing and content ownership is king." CNN will stop using Reuters text, photography and television material from Friday. News organizations such as CNN are grappling with how best to court new generations of viewers who are as likely to get their info on cell phones and the Internet as from television, Reuters said. "To advantage CNN in the content marketplace and manage the continually rising costs associated with acquired assets, we are making significant investments in our own news gathering while simultaneously reducing our reliance on agency material," Tony Maddox, CNN International EVP, said in a memo. CNN will continue to use news provided by the Associated Press and Associated Press Television News.
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Ad Business Report TM
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Web ad spend to eclipse radio in '07
Emarketer analyst Ben Macklin says online ad spending is expected to surpass radio for the first time this year. Radio dollars are expected to grow from 20.1 billion in 2006 to 20.4 billion by the end of this year. However, that’s less than online ad spend of 21.7 billion, which will be up 22% from last year, Macklin said in the report. Over the next several years, radio station websites and online audio advertising "will be the principal drivers for radio advertising growth,'' Macklin said. He expects the sluggish radio advertising market to continue experiencing slow growth, climbing to an estimated 22.6 billion in 2011, when online ad spending is expected to surge to 44 billion.
For many advertisers, the choice between radio and non-radio online ads won't be an either-or proposition, Macklin said, pointing to studies showing that consumers often listen to the radio while consuming other media and that a mix of terrestrial radio and online ads can be far more effective than online ads alone. Said Macklin: "There are many synergies between radio and the Internet and, for the most part, they complement rather than compete with each other. Advertisers should not abandon radio in favor of the Web but combine the two media to take advantage of the unique attributes of each."
RBR observation: One must remember with the successes of radio website listening such as Clear Channel’s network and others, radio will take in a good deal of this web ad spending, so the picture isn’t so bleak. Everything is moving to digital. If radio can’t sell an advertiser on the terrestrial version of its content, it will sell that advertiser the target ability and copy splitting ability of its internet stream. Remember, in-car listening ability of streaming audio is only years away from being standard equipment. With that option available, advertisers will take interest in a big way. If HD Radio develops a means for addressable advertising in the meantime, it will change the picture even faster. Hopefully all part of the near future car entertainment and information dashboard.
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| Media Business Report TM |
No relief for newspapers
Ad revenues have been soft for daily newspapers for some time and the credit rating agency Fitch sees no improvement coming. “Real estate classified declines have been significant, and have generally tracked the widely covered slowdown in new home construction, particularly in formerly overheated markets such as California and Florida,” Fitch said in an update to its sector outlook. The problems are widespread. For Gannett, Fitch noted that ad pages are down 17% at USA Today and pro forma real estate classifieds at its community newspapers are down 20%. For Tribune Company, classifieds are down 18%, driven by real estate down 24% and employment classifieds down 19%. At the McClatchy Company, real estate is down 26%, automotive down 20% and national down 19%. And for Dow Jones, ad volume is down 20%, driven by a 75% decline in technology related ads, and classifieds are down 14%.
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| Media Markets & Money TM |
One AM duopoly leads to another
An AM pairing in the Raleigh-Durham NC market is breaking up, but that event will lead directly to the formation of a new AM-AM pair. Triangle Sports Broadcasters, headed by Katherine A. Zarzour, is the seller, parting with WTSB-AM in Selma NC. Mickey and Carl Lamm and their Lamm Media Group are the buyers. For 400K, they'll pair the station with WMPM-AM Smithfield NC. Zarzour retains WDUR-AM Durham.
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| Washington Media Business Report TM |
Changes coming on Capitol Hill?
Sen. Larry Craig (R-ID) is under increasing pressure from fellow Republicans to resign and Sen. Tim Johnson (D-SD) is due back on Capitol Hill next week, after suffering a brain hemorrhage last December. What are the implications for broadcasters as Congress returns from a holiday break?
Democrats have generally been holding back on any criticism of Sen. Craig, letting the Republican Party twist in the wind, following the news that the conservative Senator had pleaded guilty to a misdemeanor charge in Minnesota after he allegedly solicited an undercover male cop for sex. Senate GOP leaders have announced plans for an investigation. Senators John McCain (R-AZ) and Norm Coleman (R-MN) have publicly called for Craig to resign, as have some conservative radio hosts and Internet bloggers. If Craig does resign, it will not change the party split in the Senate, where the Democrats hold a slim majority. Idaho Governor Butch Otter, a Republican, would name a successor to fill out the remaining months of Craig’s term. Democrats are salivating at the possibility of picking up a seat next year in a state that has long been staunchly Republican, but that won’t be an easy task even after this scandal.
Meanwhile, Sen. Tim Johnson made his first public speaking appearance this week in South Dakota, walking and talking with only slight impairment from the brain hemorrhage he suffered last December. The Senate reconvenes on Tuesday, September 4th, and that looks to be the last day that Johnson will be absent. He plans to be back in his office and on the Senate floor come Wednesday.
RBR observation: Neither Craig nor Johnson is on the Senate Commerce Committee, which has the most direct impact on legislation affecting broadcasters. Both are, however, on the Appropriations Committee, which has oversight of spending by the FCC and every other government agency. Neither, though, has a reputation for being active in any issues affecting broadcasters. Johnson is also on the Budget Committee, so he has a double-barreled impact on how the federal government collects and spends money.
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| Entertainment Media Business Report TM |
CMA Awards nominees announced
Nominees in select categories for “The 41st Annual CMA Awards” have been this week. The 12 awards will be presented during “The 41st Annual CMA Awards” telecast on 11/7 on ABC. The partial list:
Entertainer of the Year: Kenny Chesney, Brad Paisley, Rascal Flatts, George Strait and Keith Urban
Female Vocalist of the Year: Alison Krauss, Miranda Lambert, Martina McBride, Reba McEntire and Carrie Underwood
Male Vocalist of the Year: Kenny Chesney, Brad Paisley, George Strait, Josh Turner and Keith Urban
Horizon Award: Jason Aldean, Rodney Atkins, Little Big Town, Kellie Pickler and Taylor Swift
Vocal Group of the Year: Alison Krauss + Union Station, featuring Jerry Douglas; Dixie Chicks, Emerson Drive, Little Big Town and Rascal Flatts
Vocal Duo of the Year: Big & Rich, Brooks & Dunn, Montgomery Gentry, Sugarland and The Wreckers
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| Internet Media Business Report TM |
New study shows Americans' blogging Behavior
According to a recent Synovate/Marketing Daily survey, 8 out of 10 Americans know what a blog is and almost half have visited blogs. The study, conducted online with 1,000 adults using Synovate eNation from July 30 to August 1, shows that blogging has entered the mainstream. "8% of Americans currently have their own blog," said Tom Mularz, senior vice president at Synovate. "This is surprising given that a few years ago hardly anyone knew what a blog was."
Loyalty to specific blogs is also fairly strong with 46% of blog readers saying that they visit the same blogs regularly versus 54% who instead usually surf for new and different ones. Awareness and usage of blogs, along with people penning their own, strongly correlates to age, with younger people being much more active. Nearly 90% of those aged 25 to 34 know what a blog is, compared to just 65% of those aged 65 and over. Similarly, 78% of those aged 18 to 24 who are aware of blogs say they have visited a blog, compared to only 45% of older Americans. Also, more women than men are bloggers, with 20% of American women who have visited blogs having their own versus 14 % of men. As blogs have gained in popularity, so has the frequency with which they are read. Though the majority of blog readers (39%) view them less than once a month, another 28% visit them monthly, 15% visit them daily and 5% read them several times a day.
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| Ratings & Research |
Hispanic and Asian audiences fastest growing
In its annual reworking of population estimates for all US TV markets, Nielsen reports that Hispanics and Asians are again the fastest-growing national segments of the population. For the 2007-2008 TV season, total US television households (HH) are up 1.3% to 112.8 million. The number of Hispanic HH increased 4.4% to 12.14 million, still slightly trailing African-American HH, which rose 1.5% to 13.65 million. Asian HH rose 3.9% to 4.54 million.
In local markets, Nielsen estimates that Los Angeles continues as the number one Hispanic market, followed by New York, Miami, Houston and Chicago. Los Angeles also has the country’s largest Asian community, followed by New York, San Francisco, Honolulu and Chicago. New York is the largest African-American TV market, followed by Atlanta, Chicago, Washington, DC and Philadelphia.
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| Transactions |
1.2M WYLE-TV Huntsville-Decatur-Florence AL (Florence AL, Indy/26-DT 20) from ETC Communications Inc. (Karen Snead-White) to WYLE-TV LLC (James L. Lockwood). 100K deposit, 330.5K cash at closing, 69.5K for legal expenses, 700K note. Duopoly with WHDF-TV (CW/15-DT 14). Buyer is seeking failed station waiver to enable the pairing. [File date 8/10/07.]
950K WLRT-AM Norfolk-Virginia Beach-Newport News (Hampton VA) from Hampton Radio II Inc. (Joseph Russo et al) to Red Zebra Broadcasting License (Norfolk) LLC, a subsidiary of Red Zebra Holdings LLC (Daniel Snyder). 95K escrow, balance in cash at closing less LMA payments. Combo with WXTG-FM Virginia Beach VA. LMA 8/1/07. [File date 8/7/07.]
200K KXTY-FM San Luis Obispo CA (Morro Bay CA) from Salisbury Broadcasting Corporation (Charles H. Salisbury) to Lazer Licenses LLC, a subsidiary of Lazer Broadcasting Corporation (Alfredo Plascencia). Station originally sold to Mapleton Communications with KWWV-FM on 9/8/06; deal to sell it to Local Media LLC was dissolved; Lazer will pay interest accumulated on LM's escrow deposit plus two payments totaling 200K. Superduopoly with KLMM-FM, KLUN-FM. [File date 8/8/07.
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| Stock Talk |
Nervousness on Wall Street
Q2 GDP growth was 4%, but the pickup in pace was still below what some analysts had expected – and there is still worry about the credit markets. So, stock prices were mostly lower on Thursday. The Dow Industrials fell 51 points, or 0.4%, to 13,329.
Radio stocks were lower. The Radio Index declined 1.763, or 1.4%, to 124.622. Westwood One had a bad day, down 5.1%. Fisher fell 3.7%.
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| Radio Stocks |
Here's how stocks fared on Thursday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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49.49
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-0.39
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Google
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GOOG
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511.40
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-1.48
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Beasley
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BBGI
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7.30
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0.03
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Hearst-Argyle
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HTV
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25.55
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-0.05
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| CBS CI. B |
CBS |
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30.75
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-0.41
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Journal Comm.
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JRN
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10.30
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-0.03
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| CBS CI. A |
CBSa |
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30.72
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-0.50
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Lincoln Natl.
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LNC
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59.88
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-0.97
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| Citadel |
CDL |
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4.01 |
-0.22 |
Radio One, Cl. A
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ROIA
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3.60
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-0.01
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Clear Channel
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CCU
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36.55
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-0.14
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Radio One, Cl. D
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ROIAK
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3.61
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-0.02
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Cox Radio
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CXR
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13.58
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-0.11
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Regent
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RGCI
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2.57
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-0.01
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Cumulus
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CMLS
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10.61
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0.06
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Saga Commun.
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SGA
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7.00
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-0.05
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Debut Bcg.
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DBTB
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1.25
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0.00
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Salem Comm.
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SALM
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10.27
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-0.21
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Disney
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DIS
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33.47
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-0.42
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Sirius Sat. Radio
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SIRI
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2.92
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0.08
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Emmis
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EMMS
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6.41
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0.02
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Spanish Bcg.
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SBSA
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2.82
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-0.08
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Entercom
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ETM
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21.09
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-0.53
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SWMX
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SMWX
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0.08
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0.01
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Entravision
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EVC
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8.87
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-0.16
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Westwood One
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WON
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2.82
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-0.15
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Fisher
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FSCI
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48.07
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-1.87
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XM Sat. Radio
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XMSR
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12.30
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0.41
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Bounceback
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 We want to
hear from you.
This is your column, so send your comments and
a photo to [email protected]
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Below the Fold
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Ad Business Report
Web ad spend to eclipse Radio
In '07 as online ad spending is expected
to surpass radio for the first time this year.
Radio dollars are expected to grow but
One must remember…
Media Business Report
No relief for newspapers
Ad revenues have been soft for daily
newspapers for some time and the
credit rating agency Fitch sees
no improvement coming…
Washington Media Business Report
Changes coming on Capitol Hill?
Scandals all over the place like a bad
Wreck inside the Beltway. Good news
Ones involved do not have direct impact
on legislation affecting broadcasters…
Internet Media Business Report
Americans' blogging Behavior
8 out of 10 Americans know what a
blog is and almost half have visited them…
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Stations for Sale
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 Market your Stations For Sale
in our daily epapers.
Contact
June Barnes
[email protected]
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Radio Media Moves
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Upped in NYC
Clear Channel radio has promoted Alice MacCormack to Local Sales Manager for WLTW-FM New York. She had bee a Sr. Account Executive for the station.
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More News Headlines
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WAMU participating in "NPR Mobile" Launch
WAMU-FM DC announced it is one of ten NPR member stations participating in the launch of NPR Mobile--a new co-branded service that brings local and national public radio content to users of mobile phones and handheld devices. The project allows WAMU and NPR to take a first step into the new medium of mobile services through two products: NPR Mobile Web and NPR Mobile Voice. NPR Mobile Web uses a "wireless access protocol" (WAP) to deliver audio, text, pictures, and video to handheld mobile devices such as cell phones and PDAs. Users access a web site (wamu.npr.org) through their mobile device that is optimized for small screens and automatically formatted for each specific device's capabilities. The service has a customized local home page with links to WAMU local hourly newscasts, as well as NPR newscasts and other features. NPR Mobile Voice allows users to make a call to a local number to directly access content through a menu using interactive voice response (IVR) technology. The phone number works on any type of mobile phone, regardless of carrier, as well as through landlines.
Morgan Stanley to advise Hearst-Argyle directors
Hearst-Argyle Television announced that the Special Committee of its board of directors has retained Morgan Stanley as its financial advisor to assist them in their review of the proposed tender offer announced by Hearst Corporation. Simpson Thacher & Bartlett LLP has been engaged to provide legal advice to the Special Committee. Hearst Corporation, which already owns a majority of Hearst-Argyle, has offered 600 million to buy out the public shareholders, but the stock has been trading above the 23.50 per share offer in anticipation of Hearst being forced to go higher.
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RBR Radar 2007
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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XM director puts his money on the line
Jeffrey Zients, who has served on the board of directors at XM Satellite Radio since May 2006, has demonstrated his confidence in the company’s future, buying 270,000 shares of stock.
RBR observation: Unless XM and Sirius are lucky enough to draw Judge Paul Friedman, if and when the US Department of Justice Antitrust Division files suit to block an XM-Sirius merger, getting the same outcome is a long-shot. Friedman’s decision in the organic grocery merger is at odds with decades of antitrust law precedents and is likely to be overturned on appeal. An off-beat ruling by a single judge isn’t going to change how they look at antitrust cases.
08/30/07 RBR #170
Clear Channel sues over disintegrating deal
Clear Channel has now sued in a Texas state court to try to hold American Securities Capital Partners (ASCP) to its 452.1 million bucks deal to buy 187 radio stations. ASCP has fired back with its own lawsuit filed in a New York state court, so look for lots of legal wrangling ahead.
RBR observation: With this deal now in doubt Mark and Randall Mays could have avoided all of this divestiture drama, of course, if they had accepted a preemptive bid from former Clear Channel Radio CEO Randy Michaels for the entire block of stations. You may have read elsewhere that he and Oak Hill Capital Partners offered around 800 million. We have it on good authority, though, that the actual bid was over 900 million, but that the Mayses held out for 1.1 billion. When all is said and done, will Clear Channel now even come close to that mark?
08/29/07 RBR #169
HD Radio rules take effect
The FCC's HD radio rules are to take effect September 14, 2007. Subject to the limitations noted below, AM stations will be able to broadcast HD at night and FM stations can operate HD2 and HD3 streams without a need for special authorization. At this point, HD radio remains a "hybrid" IBOC (in-band, on-channel) system that permits the transmission of both analog and digital signals within the spectrum occupied by a single AM or FM channel. Among the benefits..
RBR observation: The highlights of the rules that are to take effect September 14 are as follows 08/23/07 RBR #165
Why radio has to pay royalties
Did radio miss a great opportunity to get a sweetheart deal on streaming audio royalties and DMCA fixes from the RIAA? RBR was told the RIAA willing to settle on sweetheart streaming rates and DMCA fixes for a trade off of industry support on DRM [Digital Rights Management] in HD Radios. The powers that be, including CBS, Clear Channel and iBiquity Digital (which was desperate to get some revenue flowing), were so determined to get HD rolled out they did not want to wait 18 months to give the Consumer Electronics Industry time to rethink HD.
RBR observation: Talk about being between a rock and a hard place-broadcasters were under so much pressure to launch HD-and had to because they may have lost receiver manufacturer interest-that they may have had to give up a sweetheart deal that now looks like 20 cent a gallon gas . Now we've also got SoundExchange chiseling for all airplay.
08/23/07 RBR #165
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Sales Associate
A fast growing network radio company seeks a Sales Assistant for its Chicago office. The ability to multi-task and prioritize are paramount in this position, as is the willingness and desire to learn in a fast paced environment. Please send resumes with cover letter to: [email protected]
See Radio Careers
Hard finding that key person
to fill the important position at your organization? Media HeadHunters is the place that key media firms use to get results. See Media HeadHunters and get results with service.
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