Radio News ®

Interep's Pine dissects the Barron's story
Greater Media CEO Peter Smyth isn't the only one taking Barron's to task for its recent cover story contending that radio is on the way to its demise (9/15/04 RBR Daily Epaper #180). At Interep, Co-President George Pine has taken each of the main points of the original article (8/30/04 RBR Daily Epaper #169) and provided Barron's with his own analysis.

Here's his rebuttal.

RBR observation: George is right that Barron's overstated the threat to radio from new media competitors and misinterpreted audience data. But radio does have problems - - mostly self-inflicted. If you didn't read Jim Carnegie's "Naples is Calling" Publisher's Perspective in May RBR Solutions Magazine, it's time to read the infamous article that set the ball rolling. Check it out here. Clear Channel's "More is Less" campaign is a step in the right direction, but it only deals with one of the problems.

Six-figure indecency fines in the offing?
Congressional proposals to increase the top FCC indecency fine by at least a factor of 10 have been in the works since before the Jackson/Timberlake Super Bowl wardrobe malfunction. Top drawer fines of 275K and 500K have been bandied about. So far, despite these efforts being described on many occasions as an item on the legislative fast track, nothing has happened. They came, of course, with all sorts of extra baggage - - no small factor in the lack of action. Sen. Sam Brownback (R-KS), who sponsored such legislation in the Senate, is saying that a compromise may be in the works which will get something on the book before the 208th Congress retires to the history books. Senate and House versions of the fine increase proposal were appended as riders to a defense appropriations bill over the summer. The Senate added in a repudiation of the FCC's 6/2/03 ownership rulemaking, considered a poison pill by House Republicans.

RBR observation: Will there be a free-standing bill that stays clean enough to pass? Will a rider to must-pass legislation make it through? Will a conference committee throw it in somewhere? Even more to the point, has Brownback been optimistic before? The answer to that last question is yes. Thus, we'll believe that mammoth indecency laws are on the books when we see it.

Morality in Media reacts to Viacom fine
Industry watchdog Morality in Media said that the 550K fine levied against Viacom/CBS is the first time, to their knowledge, that a television network was fined for indecency. "It is a significant step forward for the FCC and one that we hope will be repeated as needed until broadcast TV networks get the message that they are not above the law." "Broadcasters say they have to air 'edgier' programming to compete with the handful of cable TV premium and basic channels that routinely flaunt decency standards," said MIM. "Some viewers undoubtedly have migrated to cable to feed on the ready supply of garbage there. But the primary reason the networks have lost tens of millions of viewers is because all too much network programming is bankrupt creatively and morally."

RBR observation: Point of information: The FCC did not and cannot fine a network - - a network is not an entity which requires an FCC license. The 550K represents a series of much smaller, 27.5K fines levied against the broadcast television stations which are both licensed to Viacom and affiliated with its own CBS Television Network. This is why Commissioner Jonathan Adelstein was correct in wondering why the 200-odd other affiliates of CBS TV Net were not also fined for shepherding the infamous wardrobe malfunction into the living rooms of their local viewers. The fine against the CBS O&Os is obviously a way to get at Viacom. So here's the question: The local GMs at the O&Os had no more idea what was coming than did the affiliated under 2nd-party ownership, and if you're going to hold one local broadcaster responsible for this, then don't you have to hold all of them responsible? This looks and smells like selective enforcement, a fact which figures to be a potent weapon for Viacom attorneys should this case ever wind up in court.

News Corp. wants more flavor in its waiver
Like many multimedia companies, News Corp. had hoped that by now there'd be no problem with owning a newspaper and a television station or two in a major US media market. However, the frozen status of the FCC rulemaking which would have made such combinations possible has caused it to seek a permanent waiver to continue on with its properties in New York. The television properties include WNYW-TV (Fox Channel 5) and WWOR-TV (UPN Channel 9). They are owned in combination with The New York Post daily newspaper. The newspaper would apparently be odd-property out if a waiver is not forthcoming. News Corp. said in its FCC filing that it would be increasingly difficult to justify investments to further its development. A permanent waiver has been in place for some time for the combination of WNYQ and the newspaper. A temporary waiver was put in place when News Corp. acquired WWOR. Andrew Schwartzman of the Media Access Project was cited as opposing any waiver. He told a NY Post reporter that the combination "...won't pass muster with any analysis the FCC could come up with." At a bare minimum, without a permanent waiver, News Corp. has asked for a 24 month extension on the temporary WWOR waiver while the FCC follows the 3rd Circuit order to revise or justify its new cross-ownership caps.

Cronkite:
CBS News scandal is "embarrassing"
How does "Uncle Walter" feel about the fake memo scandal that's engulfed CBS News? Walter Cronkite, who turned over the network's anchor chair to Dan Rather in 1981, told the Boston Herald that the retracted story on President Bush's National Guard service is "embarrassing." But Cronkite, who was in Boston to receive an award, said he would wait until the independent review ordered by CBS management (9/23/04 RBR Daily Epaper #186) is completed do decide what his reaction should be. "The reaction at the moment of course is embarrassment for everyone who is connected to CBS, and that embarrassment I hope will be squashed in time as we know what happened," Cronkite told the newspaper.

Eoff heading NY Times Broadcast Media Group
WREG-TV Memphis VP/GM Robert Eoff has been tapped as the new President of the Broadcast Media Group at the New York Times Company, following the sudden departure of Cynthia Augustine to Time Warner (9/22/04 TVBR Daily Epaper #185). Eoff is now overseeing the company's eight TV stations and two radio stations. "Bob is a seasoned executive whose in-depth knowledge of the industry and wealth of experience has and will continue to serve us well. His leadership in developing innovative programming and leveraging our digital spectrum has contributed significantly to the success of our Broadcast Media Group," said NY Times Co. Exec. VP & COO Janet Robinson. Eoff began his broadcast career at WREG in 1969 as a part-time studio camera operator while attending the University of Memphis and moved up through the ranks at the station to VP and Director of Operations, then left for a few years to serve as GM of KFSM-TV Fort Smith/Fayetteville, AR, before returning to WREG as VP/GM in 1995.

Adbiz ©

Ford following GM in new round of incentives
Ford is following General Motors's lead and offering zero-interest, six-year loans to buyers of remaining 2004-model vehicles. The Ford incentives begin 9/30 and exclude the Thunderbird. GM recently told its dealers that it would offer the no-interest, six-year loans for three days from 9/22-9/30 to help unload a backlog of inventory. It excludes the Cadillac and Hummer brands. Chrysler now offers zero-interest financing for up to five years, and it plans a campaign at the end of the month to publicize that and other incentives. GM and Ford both reported disappointing sales for August, prompting them to cut planned vehicle production in Q4. Toyota and Honda also reported sluggish sales. Overall, vehicle sales fell 12.4% from 8/03.

Trump signs deal with Aramis
and Designer Fragrances
Aramis and Designer Fragrances, a division of Estée Lauder, announced it will join forces with Donald Trump in a multi-year deal establishing him as the spokesperson for a new men's fragrance called "Donald Trump, The Fragrance." The scent is slated for an exclusive U.S. launch in mid-November at Federated Department Stores, in time for the holiday retail season. Terms of the deal were not disclosed. "We are excited to work with Mr. Trump, whose commitment to excellence and desire for perfection is unparalleled," said William Lauder, CEO, The Estée Lauder Companies. "Mr. Trump's extraordinary presence makes people take notice and ensures quality in all that he creates. We feel that Mr. Trump and Aramis are a winning combination of two global brands." Donald Trump, The Fragrance, will be available in a 100ml/3.4 oz bottle for the suggested retail price of 60.00 exclusively at Federated stores. A campaign is likely in the works for the Holiday buying season.

Donkey cash departs with exiting Stork
The national Democratic fund for congressional races is scrapping plans it had in place to drop some cash into races in New Hampshire and Florida. In both cases, the decision involved attempts to unhorse a Republican incumbent, and in both cases, the Democrats cited unusual circumstances. In New Hampshire, the Associated Press reports that a key broadcast station is demanding up front payment for a five week flight, something the Dems do not want to commit to. They say they may still spend money in the state. In Florida, they are canceling an investment in the candidacy of Jim Stork, since Stork has pulled out of his race with Clay Shaw. That situation will be re-evaluated once a replacement candidate is named.

Study: ad industry brings 151 billion
into NYC metro economy
In its inaugural year, Advertising Week in New York City will generate 55 million in visitor spending for businesses across New York City, according to the New York City Economic Development Corporation. In addition, the Week has brought 40,000 out-of-town visitors and hosted 60,000 attendees at events across New York City, according to EDC reports. "We are delighted the advertising industry is celebrating its long-established presence in New York with the launch of Advertising Week in New York City," said Andrew Alper, president of the New York City Economic Development Corporation. "The advertising industry plays a critical role in our economy, with nine of the top 10 U.S. ad agencies based in New York City and more than 45,000 people working directly within the industry." The Week kicked off Monday, Sept. 20, with the unveiling of the Madison Avenue Advertising Walk of Fame, which inducted the first class of favorite icons and slogans selected by America via an online vote on Yahoo! and USA Today. Continuing throughout the Week, panels, seminars, and keynotes have received standing-room- only crowds at venues such as the Museum of Television & Radio, Time-Life Building, Time Warner Center, and Bloomberg Headquarters. A study released last week by Global Insight found that in the New York City area alone, businesses will spend an estimated 12 billion this year on advertising, directly generating 68 billion in sales, and leading to an overall boost to the economy of 151 billion. "The advertising sector's contribution reaches well beyond Madison Avenue by supporting our broadcast and publishing sectors as well," said Alper. "We look forward to Advertising Week in New York City becoming an annual event."

Media, Markets & Money tm

Washington Beat

Programming

Stations back in hurricane mode
For the fourth time in recent weeks, radio and TV stations in much of Florida were running wall-to-wall hurricane coverage over the weekend as Jeanne pounded the state - - taking much the same course as Frances. The storm made landfall late Saturday on the Atlantic coast and headed inland. As with Charley, Frances and Ivan, many radio stations had teamed up with TV news operations to carry their audio - - a practice that has been expanded and more heavily promoted on both sides since Charley's aftermath. With widespread power failures a foregone conclusion, the TV partners have been promoting the frequencies of their radio partners so viewers who become listeners will know where to tune on their radio when they no longer have access to video. But not all radio broadcasters have been reliant on TV. Clear Channel's large clusters throughout the state have tended to rely on their own programming - - and reports from the company's other stations throughout the state - - for hurricane coverage. Along the Atlantic coast of South Florida, the James Crystal group informed us that it had activated its "Live 85 Hurricane Network" for the second time in less than a month, simulcasting WFTL-AM Ft. Lauderdale-Miami on its six stations throughout the West Palm Beach and Miami-Ft. Lauderdale markets.

The "Cunningham Report" launches
The Cunningham Report with Bill Cunningham launched last week with 12 charter affiliates on board. "Willie" settled into his old time slot (9pm -midnight ET) and picked up right where he left off 4 years ago, except this time, the audience is slightly larger than his usual WLW-AM Cincinnati fan base. "I started the week with a phone bank of only three lines, fully anticipating a ramp-up period for his new audience to get comfortable enough with Bill to actually call in. Tonight, we add 4 additional lines because the three we started with are jammed up from sign-on to sign-off!" said Rick Consolo of Burbank Creations, the program's syndicator. The Cunningham Report will cover the upcoming Presidential debates as no other talk show in America can. Live coverage and commentary will be the order of the night for each debate.

Monday Morning Shakers & Makers

Deals: 8/16/04-8/20/04
Things began to pick up in the second half of August, and even though total value slid a bit from the week before, deal volume was up a good bit. Each week had a TV deal - - last week's was good for 48M compared to this week's 13M total, accounting for the difference. Radio, on the other hand, was way up, going from just over 6M last week to almost 33M this time around, which is more like it.

8/16/04-8/20/04 Total Total Deals 16 AMs 9 FMs 10 TVs 1 Value 45,993,000 | Complete Charts |	Radio Deal of the Week Radio One takes Indian Trail to NC duop | More... |
	TV Deal of the Week Clear Channel takes LMA-mate down the aisle | More... |

Transactions

WBHQ-TV Columbia SC (Sumter SC) from Columbia Broadcasting Inc. to WBHQ Columbia LLC.

WKFI-AM Wilmington OH from Vernon R. Baldwin Inc. to Town and Country Broadcasting Inc.

KDNK-FM Carbondale CO from Carbondale Community Access Radio Inc. to Public Broadcasting of Colorado Inc.

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