Have a colleague try us and be prepared for the 4th qtr, forward them todays RBR, they'll thank you for it.
Trial Subscription Sign Up
|
|
|
|
|
Volume 23, Issue 187, Jim Carnegie, Editor & Publisher
|
Tuesday Morning September 26th, 2006
|
|
|
Radio News ®
|
 Political spending on radio taking off
In a conference call yesterday for Bear Stearns investment clients, Evan Tracey, COO of the TNS Media Intelligence/Campaign Media Analysis Group, said one fallout from the McCain-Feingold campaign finance law is that campaigns are able to raise more hard money - with donors now being able to write checks for 2K rather than 1K. So while there may be less soft money elsewhere, the official campaigns have more cash to spend that ever before. TV inventory is tightening in some markets, plus just because of the amount of cash available, some campaigns are spending more on media apart from broadcast TV - primarily cable and radio. Republicans, in particular, said Tracey, are spending on radio to reach maximum saturation. With control of both Houses of Congress up for grabs this year, TNS now thinks its forecast of 1.4 billion in political spending on TV is a floor, rather than a ceiling. Tracey said 1.6 billion is not out of the question. He didn't project a number for radio, since TNS gathers radio data post-election, while tracking TV intently during the campaign.
Redstone cuts his own pay check
Sumner Redstone will have to make due with a one million bucks basic salary from Viacom, rather than 1.75 million, plus his deferred compensation is gone and his target bonus reduced. Instead, he will be getting "performance share units" (PSU) with an anticipated issue value of three million. Those PSUs are tied to the total shareholder return of Viacom's Class B stock. This belt-tightening is all part of a re-done compensation package to make most of Redstone's compensation directly tied to returning "superior shareholder returns." The company said the move was to make Redstone's compensation package equity-driven like the contracts entered into with President & CEO Philippe Dauman and Sr. Exec. VP & CAO Tom Dooley after Redstone pushed out Tom Freston. "We are delighted to conclude this agreement with Mr. Redstone, who is joining Philippe Dauman and Tom Dooley in tying his future compensation so closely to the performance of Viacom's stock. This is a highly progressive arrangement that will put the compensation of Viacom's most senior executives directly in line with the interests of its shareholders. These revamped packages signal a new direction in Viacom's strategy for compensating its senior executives and result from the significant progress the Viacom Board has made in replacing guaranteed cash compensation with performance-based rewards," said Robert Kraft, Chairman of the Compensation Committee of Viacom's Board of Directors.
RBR observation: This is strictly window dressing, since his huge stock holdings have always made Sumner Redstone's personal wealth dependent far more on the stock prices of Viacom and CBS than any paycheck or bonus. Still, it sets a good example that top executives of other corporations would do well to emulate, particularly if they are top execs who don't actually own much stock of the company that they are running.
|
|
|
 NAB Radio Show: Same-old, same-old
That sums up the analysis from Wachovia's Marci Ryvicker, who says she didn't find any major revelation in Dallas last week. Ryvicker is encouraged by the efforts by radio groups, Clear Channel in particular, to generate new revenues from the Internet. "We do not think investors will give radio companies credit for these initiatives until they become a more significant component of revenue and cash flow," she said. Likewise, Ryvicker sees more M&A activity, but not enough to get anyone excited and mostly in smaller markets, with deals in the 1-10 million bucks range. She also expects more attempts to go private, as Emmis tried and failed to do. But, again, she doesn't see this as a short-term catalyst for radios tocks. The Wachovia analyst said she doesn't expect to see the management of any public radio company try to buy out public shareholders in the remainder of 2007 - maybe next year. "We believe that stock prices need to come down by 10%, on average, in order to provide a sufficient enough premium for investors to tender their shares," Ryvicker said in her summary of perceptions from Dallas.
TV Watch asks FCC to let parents do their job
Network-backed industry watchdog TV Watch has jumped into the fleeting expletive fray, using the Second Circuit indecency case remand as an opportunity to argue for parental rather than government control over program content. The group says it has backing of the overwhelming majority of parents. "While a significant population is concerned about content on television," it wrote, "most say that government regulation is not the answer. It says that 86% agree that "if you don't like what's on television, change the channel, but don't deny everyone else the right to watch what they want to see." TV Watch says 76% of people who say they often see objectionable material, and 86% of weekly churchgoers also agree with that statement. It argues that not all programming is designed for children. Further, "Television content can be unpredictable at times, especially when it comes to news and live broadcasts," noting that even President Bush put station licenses at risk over the summer with some spontaneous racy language. TV Watch concludes, "Responsibility and education, not more regulation, are the solution to any problem associated with children's television consumption."
RBR observation: TV Watch is also an avid backer and promoter of content control devices which help parents control exactly what their own children can and cannot watch at home. These devices figure to get better and better as the digital revolution takes hold. To the best of our knowledge, nobody has yet figured out how to do this for radio.
Newspapers use newspapers to push newspapers
The Newspaper Association of America has enlisted over 400 of its members in an advertising campaign designed to bolster advertising in its members' publications. The plan is to "...reinforce the newspaper value message to advertisers with simultaneous publication of campaign ads in their newspapers and Web sites and a commitment from their sales force to deliver a presentation to advertisers about the value of newspaper media and the scope of the newspaper audience." The print and on-line campaign will also be featured in "targeted trade magazines." Sales execs will be delivering a PowerPoint presentation showing the value of the medium, and supporting the claim that newspapers ads are something that consumers seek out, rather than "a distraction to be avoided."
RBR observation: As much as we love our newspapers, we still have difficulty remembering the last time we were struck by an ad. We can't remember one, much less remember a time one motivated us to go buy something. In fact, we were recently in the market for a new lawn mower. We actually did check out the Sports page to see if any end-of-season inventory clearance deals were out there, to no avail. As a strategic note, we have to wonder how well an ad campaign for newspapers, in newspapers, will work. You'd think that most of the potential advertisers who would see it by definition already know about newspaper. Now if they put an ad on local radio saying that an advertiser can get some bang for his buck in the newspaper, the newspaper people might get some bang for THEIR buck. But by that logic, the advertiser might just as well use local radio itself...
|
|
|
|
|
Ad Business Report TM
|
 Metro Networks unveils
new network lineup
Westwood One's Metro Networks announced an enhanced lineup of demographically targeted networks, effective January 1, 2007. In addition to its existing broad-reach platform, which will be known as The Total Reach Network, Metro Networks sponsorships will be divided into three unique, highly-targeted networks: The Mobile Male Network, The Active Female Network and The Opinion Leader Network. Additionally, Metro Networks will also implement an internal proprietary inventory management and scheduling system enhancement project to offer even greater controls of inventory and accountability, ensuring more favorable station rotations. Explains Roby Wiener, CMO Westwood One, "In 2007, staying ahead of changing client needs is defined by offering better and more targeted choices, which is exactly what we have done with the packaging of Metro Networks inventory. At the same time, our unique position as an industry leader has put us at the forefront of developing the next generation of technological infrastructure to support this vast media platform."
| See the new nets here |
Pitching GM execs on radio
Last week Bill Burton, President/Detroit Radio Advertising Group mentioned he was meeting with General Motors marketing and advertising execs (9/22/06 RBR #185) in Detroit to discuss the benefits of radio advertising in these more difficult times for domestic automakers. He met with several, including Betzy Lazar, Executive Director of Advertising and Marketing Operations, Mike Jackson, GM North America's VP/Marketing and Advertising and Liz Vanzura, Global Marketing Director for Cadillac.
| Read More... |
|
|
|
|
| Media Business Report TM |
 Is cable afraid of commercial ratings?
At a summit last week with Nielsen Media Research, agencies, broadcast and cable networks, issues were hashed out regarding Nielsen's plan to begin offering commercial ratings data beginning this November and getting commercial ratings data to the currency stage. Most noteworthy was Cabletelevision Advertising Bureau (CAB) CEO Sean Cunningham mentioning there are more than a dozen flaws in Nielsen's plans for collecting and figuring commercial ratings data and the data right now will be unusable. He also said most cable nets will not subscribe to this and without all of the cable nets included, the relevance of the data will moot. We wonder. CBS-TV top researcher David Poltrack (in attendance) recently unveiled data about how broadcast network tune out/avoidance is much, much lower than cable during commercial breaks-say 4-5% vs. 11% on average.
| Read More... |
RBR observation: With the rollout of Arbitron's PPM and other new services for more exacting ratings for radio, the same controversy may soon migrate over to our medium. But the good news was found in last week's study by Arbitron, Media Monitors and Coleman indicating that the lowest rated minute during an average commercial break is 92% of the size of the audience before the spots began. (9/22/06 RBR #185).
|
|
|
|
| Media Markets & Money TM |
Davidson moves into the Big Easy
Few groups have racked up more frequent buyer miles than David Media Group over the past couple of years, and the rapidly expanding group is adding yet another market to its portfolio. This time, Peter Davidson has a 2M deal in place for WFNO-AM, which serves New Orleans from Norco LA. The seller is William Metcalf's WFNO LLC.
RBR observation: The station is providing Spanish-language programming to the rebuilding market, and if Davidson's normal modus operandus will be in effect here, it will likely continue doing just that after closing.
|
|
|
|
| Washington Media Business Report TM |
 MSTV tries to slam brakes on white space devices
The Association of Maximum Service Television (MSTV) has fired off a study in which it pokes holes in the notion that there is no problem with allowing innovators to flood the marketplace with wireless devices designed to utilize the empty spaces between channels. MSTV note, for starters, that both everyday consumers and broadcasters are investing billions of dollars in digital equipment, and that the amount spent so far will be duplicated over and over again before the transition is complete. It's not a wise moment to suddenly allow unlicensed devices to just appear at will. MSTV says at a minimum, the burden of proof that a device can operate without causing interference to incumbent broadcast signals should be on the innovator. None have come up with any proof whatsoever. This is despite the fact that MSTV's studies show interference by out-of-band devices at distances up to 78', with walls providing no impediment. If the device is using an adjacent channel, it could cause interference from a range up to 2.5K', with a strong likelihood of interference at 300'-600' range. If a device is on the same channel as a broadcast signal, its deleterious effect could potentially affect a 75 square mile area.
RBR observation: MSTV is absolutely correct. The digital era may well open the door for all kinds of great new gizmos, some of which will no doubt quickly become as ubiquitous as have cell phones. But the time to start experimenting is after 2/17/09, when TV stations have abandoned their analog signals. And at that point, the experimentation should be patient and controlled, not a wireless re-enactment of the Oklahoma Land Rush.
|
|
|
|
| Entertainment Media Business Report TM |
KDWN re-launches format
Beasley Broadcast Group announced the new format of its recently acquired News Talk KDWN-Am Las Vegas. The station, which targets listeners aged 35-54, will focus on providing the market with a much-needed tool that will serve as the region's resource for accurate news, traffic, weather and talk. In addition, News Talk AM-720 K-DWN is affiliated with Fox News Radio with newscasts at both the top and bottom of the hour. The new station lineup features a combination of syndicated talk hosts including Neal Boortz, Jerry Doyle and Michael Savage, an eight person local news team, anchored by John Shaffer and Dick Shannon in morning drive, and dependable and accurate traffic news every six minutes.
|
|
|
|
| New Owners |
 What makes them tick? New entrants just venturing into radio and/or TV-why are they getting into it? What do they see that others that are bailing out don't?
Yesterday we heard about how the FCC's issue of local and national broadcast ownership caps affects the game (9/25/06 RBR #186).
New owners taking the broadcasting plunge
We're seeing large companies actually divest stations, rather than invest in new additions to their portfolios. ABC packed up its radio group and sent it to Citadel; CBS Radio is following in many of its current markets. Raycom made a major investment in television stations acquired from Liberty, but took the opportunity to execute a number of spin-offs, including many stations which it had prior to the Liberty deal. Many established groups are not putting anything on the block, but neither are they making much effort to add to their portfolios. Despite all this, new companies are getting into the business.
| Read More... |
|
|
|
|
| Ratings & Research |
Starcom MediaVest and CNET
unveil youth market research
Today's young people care about the brands they use, talk often with their friends about brands, and like watching real-time television. These myth-busters and other compelling insights were unveiled by Starcom MediaVest Group (SMV) and CNET Networks, Inc. as part of Advertising Week in NYC. SMG and CNET Networks partnered on an extensive ethnographic youth study aimed at helping marketers understand how to reach today's elusive population of 13- to 34-year-olds, responsible for 600 billion each year in consumer spending.
| Read More... |
 Arbitron puts satellite
radio reporting on hold
Don't look for ratings data for individual XM and Sirius channels in the Fall 2006 Arbitron survey data. That had been planned, but the radio ratings company now says it has put the plan on hold to work out how to assign listening that could be from either AM/FM radio or from satellite. "As an example, we want to test the rules necessary to assign entries such as NFL football, or MLB baseball since these programs are broadcast on both over-the-air radio and satellite," said Brad Feldhaus, Arbitron VP Product Management and Client Services. Arbitron now says it hopes to begin reporting individual satellite radio channels sometime in 2007. Meantime, public and non-commercial radio stations will be eligible for reporting in the Fall 2006 local electronic ratings reports. Those non-coms will need to meet the same minimum standards as commercial stations for inclusion in the electronic database used for such applications as Tapscan, Smart Plus and third-party software applications. The local non-com data had already been available in Arbitron's Maximiser and Media Professional respondent level data services and in the special public radio service marketed by the Radio Research Consortium.
RBR observation: Darn, we really wanted to know whether Howard Stern yet has a dozen listeners in Peoria. As Big Boy noted at last week's Marconi Awards, when it comes to satellite radio, "less is...well, just less." While the LA personality used as a running gag that his contract with Emmis is up for renewal next March and, after schmoozing Jeff Smulyan, went on to talk about how he'd really like to get to know John Hogan, Farid Suleman and Joel Hollander a lot better, Big Boy indicated that Mel Karmazin need not bother to call.
|
|
|
|
| Transactions |
2M WWSC-AM/WCQL-FM & WCKM-FM Glens Falls NY (Glens Falls, Lake George NY) from Entertronics Inc. (David Covey) to Regional Radio Group LLC (Eric P. Straus, Clayton Charles Ashworth et al). 100K escrow, balance in cash at closing. Includes non-compete. LMA until closing. [File date 8/30/06.]
1M WVXC-FM Chillicothe OH, WVXW-FM West Union OH, WVXR-FM Richmond IN from Cincinnati Public Radio Inc. (Richard Eiswerth) to Christian Voice of Central Ohio Inc. (David R. Kolbe, Dan Baughman et al). 50K escrow, balance in cash at closing. [File date 8/30/06.]
|
|
|
|
| Stock Talk |
Fed talk boosts stocks
Dallas Federal Reserve Bank President Richard Fisher got Wall Street's attention Monday - in a good way - by suggesting that a slowing economy could dampen inflation. Of course, that would mean that there would be no need for the Fed to resume rate hikes, so stock prices moved up on his comments. The Dow Industrials rose 68 points, or 0.6%, to 11,575.
Radio stocks rode the wave. The Radio Index gained 1.281, or 0.9%, to 140.674. Emmis led the way, up 2.6%.
|
|
|
|
| Radio Stocks |
Here's how stocks fared on Monday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
|
Arbitron
|
ARB
|
|
37.32
|
+0.16
|
Hearst-Argyle
|
HTV
|
|
23.05
|
+0.28
|
|
Beasley
|
BBGI
|
|
7.14
|
-0.04
|
Journal Comm.
|
JRN
|
|
11.02
|
+0.16
|
| CBS CI. B |
CBS |
 |
28.65
|
+0.42
|
Lincoln Natl.
|
LNC
|
|
62.46
|
+0.52
|
| CBS CI. A |
CBSa |
|
28.68
|
+0.48
|
Radio One, Cl. A
|
ROIA
|
|
6.34
|
+0.07
|
| Citadel |
CDL |
|
9.48 |
-0.04 |
Radio One, Cl. D
|
ROIAK
|
|
6.33
|
+0.02
|
|
Clear Channel
|
CCU
|
|
29.37
|
+0.32
|
Regent
|
RGCI
|
|
3.90
|
+0.01
|
|
Cox Radio
|
CXR
|
|
15.19
|
+0.23
|
Saga Commun.
|
SGA
|
|
7.80
|
+0.01
|
|
Cumulus
|
CMLS
|
|
9.74
|
+0.11
|
Salem Comm.
|
SALM
|
|
11.54
|
+0.22
|
|
Disney
|
DIS
|
|
30.16
|
+0.08
|
Sirius Sat. Radio
|
SIRI
|
|
3.95
|
+0.05
|
|
Emmis
|
EMMS
|
|
12.17
|
+0.31
|
Spanish Bcg.
|
SBSA
|
|
4.23
|
-0.01
|
| Entercom |
ETM
|
|
24.95
|
+0.32
|
Univision
|
UVN
|
|
34.41
|
+0.05
|
|
Entravision
|
EVC
|
|
7.54
|
+0.13
|
Westwood One
|
WON
|
|
7.13
|
-0.01
|
|
Fisher
|
FSCI
|
|
43.20
|
+0.53
|
XM Sat. Radio
|
XMSR
|
|
13.42
|
+0.07
|
|
Gaylord
|
GET
|
|
44.28
|
-0.10
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
Bounceback
|
 We want to
hear from you.
This is your column, so send your comments and
a photo to [email protected]
A response to Lenny Freed
(9/22/06 RBR #185):
 I am a "Real Radio" person who does not want foul-mouthed Howard Stern back. Let him stay in space where his audience will NEVER be anywhere near as large as it was on "Real Radio"! It is absurd to say that "Real Radio" is "planting" rumors about his return. Nobody wants him! Stern is jealous of Opie and friends, who saw the light quickly and came back before it was too late. "Real Radio" has waved goodbye to Howard Stern for good, and I couldn't be happier nor more excited about the future of our industry without him. Sirius will NOT be in the black by the end of the year, not even close! Nor will XM. They said they would be in the black when they reached 4 million listeners! It didn't happen! Sell our stations! Are you kidding? Revenue is up by double digits! Cash Flow is up by double digits! Listenership is steady; and actually increasing in some formats. "Real Radio" still reaches 93% of the population every day! "Real Radio" is NOT becoming Less Relevant Lenny; you are! DEAL WITH THAT!
Joel Swanson, GM
Northern Plains Radio Network (KEYZ/KYYZ/KTHC)
Williston, ND/Sidney, MT
|
|
|
Below the Fold
|
|
Ad Business Report
Pitching GM execs on radio
Bill Burton reports on his meetings with in Detroit...
Media Business Report
Cable afraid of commercial ratings?
That seems maybe the case and something Radio needs to review and know now...
Media Markets & Money
Davidson moves into the Big Easy
Has a 2M deal in place for WFNO-AM, which serves New Orleans...
Ratings & Research
Arbitron puts satellite on hold
That is radio reporting so don't look for ratings data...
|
|
|
Radio Media Moves
|
 Severin back
on in Boston
Greater Media announced that veteran talk host Jay Severin will be returning to afternoon drive on WTKK-FM Boston, effective October 9th. Under the new deal with WTKK, Severin's show will air in its original 3-7 pm time slot, live and local and exclusive to Boston. In addition, the Westwood One syndicated personality has announced that he will be relocating to the Boston area.
Upped in NYC
Emmis Communications New York announced that Brian D'Aurelio has been promoted to Senior Marketing Director, overseeing all marketing aspects for both WQCD-FM "CD101.9" and WRKS-FM "98.7 Kiss FM." He most recently served as Director of Marketing for WQCD. D'Aurelio's promotion follows that of Alex Cameron, who was recently named Director of Sales for Emmis NY, and former WQHT-FM Marketing Director Kevin Cox, who has now been named to a senior role in the station's sales department.
|
|
|
International
|
WorldLink opens London office
WorldLink, one of the leaders in the Direct Response business in the U.S., is expanding its international efforts with the launch of an office in London. WorldLink Founder and CEO Toni Erickson Knight said the office will serve WorldLink's growing client roster in Europe and other parts of the world. Additionally, Ms. Knight announced that Erika Berman, a veteran of WorldLink's Los Angeles headquarters, will oversee sales in the London office. The new office will further expand the company's global operations, joining its Los Angeles headquarters and New York. Clients of the office will include, among others, CNBC Europe and CNBC Australia. Prior to joining WorldLink, Ms. Berman worked at Millennium Television Sales, where she sold spot time for broadcast stations. She began her career at Blair Television.
|
|
|
Download Now
August '06 RBR/TVBR Solutions Magazine
|
This pdf requires
 version 6.0 or later. Use this button to update now.
|
|
|
RBR Radar 2006
|
|
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
|
Publisher Perspective
NAB 2006, What do ya Think?
What is lacking and needed now is called RESPECT. Many had their say on why radio is in trouble, but the true reason from my RBR perspective is lack of R-E-S-P-E-C-T. Yes, Respect, which radio has to regain in the eyes of not just Wall Street bean counters, but at the Advertising and Client level. Radio has taken a beating on negative press all over the place and nobody is to blame but themselves - and I mean the key executives that are making the headlines. R-E-S-P-E-C-T is what is needed First before Radio can Grow. Think about it. (The entire perspective in)
09/25/06 RBR #186
Advertising under attack
from all quarters
It truly is a "slippery slope," Jim Davidson, Executive Director of the Advertising Coalition as he warned of attacks on advertising from both parties on Capitol Hill, sometimes for very different reasons. The big target right now is prescription drug advertising.
09/25/06 RBR #186
|
|
|
|
 |
Marketing Director
WFAN is looking for an experienced Marketing Director. Responsibilities will include overseeing the promotions staff, development and execution of overall station marketing and promotions strategy and working with sales on creative approaches to sales materials. Experience in NY Metro area a plus. CBS owned station and is an EOE.
See Radio Careers
Local Sales Manager
KPLX 99.5 The WOLF, Texas Country in Dallas a Premier Country station in Top 5 market. Focus with Responsibilities: Achieving local sales goals, maintaining reputation and integrity of sales operation with clients while recruitment and retention of Account Managers with in-field coaching. Minimum 3 years large market Sales/Management, NTR, Interactive Media experience. Cumulus Radio Dallas is EOE.
See Radio Careers
Talk Radio Network
Seeking professionals in three areas to join our TRN team. First: Executive Producer on topical subjects, Second: Board Operator with 2 years experience with Telos call-screening software and Third: Staff Engineer that can take initiative. This is a fast paced high pressure environment, must be able to think and act professionally in emergency situations. EOE. For complete details on all three positions
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--Period.
|
 |
|
|
|
|
Help Desk
|
__FIRST__ __SECOND__ :
Having problems with our epapers?
Please send Questions/Concerns to:
[email protected]
If you wish to remove your name completely from our database use this link __UNSUB__
RBR Epaper -- 108 annual
or just 9 a month
|
|
|
|
©2006 Radio Business Report, Inc. All rights reserved.
Radio Business Report -- 2050 Old Bridge Road, Suite B-01, Lake Ridge, VA 22192 -- Phone: 703-492-8191
|
|
