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Radio News ®
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 Clear Channel reiterates Q1 closing
The statement that the going private buyout is "expected to occur in the first quarter 2008" was repeated by Clear Channel yesterday as it announced plans to release its Q4 and full year 2007 results on Valentine's Day. But Wall Street is extremely nervous, with the stock price falling more than 10 bucks below the buyout price of 39.20 in yesterday's trading. Deep Q1 expense cutting by Clear Channel (1/28/08 RBR #18) had traders again worried that Thomas H. Lee Partners and Bain Capital would be unable to find financing for the 26.7 billion bucks buyout, despite assurances from a top Lee official that the deal was still on track to close in Q1. But Wall Street was spooked again yesterday when another private equity buyout collapsed, with Blackstone Group telling Alliance Data Systems that it did not expect to complete a pending 7.8 billion buyout. Blackstone blamed unacceptable conditions it expected to be imposed by government regulators, but the view from Wall Street was that the private equity firm was just looking for an excuse to get out of the deal.
RBR observation: Is this a sure thing or a craps shoot in Las Vegas? Clear Channel and its would-be buyers have done or said nothing to indicate that there is any problem with getting this deal closed. Rather, they have moved ahead methodically to get the ducks in a row for a closing by the end of March. But the market has priced the stock like this is a roll of the dice. You can now buy Clear Channel's stock at a price which will give you a return of over 33% in about two months with a buyout at 39.20 by the end of March. That's an annualized return of well over 100%. That's an incredible deal if you believe the deal will close as promised. Obviously, there are plenty of traders who think otherwise.
Analyst ranks thinned again
No, we're not recycling a story from yesterday. Today it's Credit Suisse that has dropped coverage of broadcasting stocks, bidding farewell to John Klim. That's five broadcast analysts pink-slipped in recent months, with a sixth gone because his coverage list was reworked. Klim's coverage list had included CBS, Citadel, Cox Radio, Emmis, Entercom, Radio One, Salem, Saga and Westwood One, along with Lamar and Clear Channel Outdoor in the outdoor advertising sector and a couple of other media-related stocks. There was no word on whether anyone at Credit Suisse might pick up any of them.
RBR observation: Will anyone else get the boot? We can identify about 13 Wall Street analysts left who have some pure-play broadcasting stocks on their coverage list. Of those, only about three or four can be said to focus almost exclusively on radio, TV and outdoor. Are they confident that their employers are in for the long-haul in providing research on broadcasting stocks, including the particularly unpopular radio segment? Or should they be watching for an opportunity to shift to another sector if a position opens up? We certainly couldn't blame them for making such a move.
 Suspect arrested for
KOOP-FM fire
Paul Webster Feinstein, 24, has been charged with second-degree felony arson for the 1/5 fire that caused $300,000 damage to the studios of KOOP-FM Austin (1/10/08 RBR #6). He faces from two to 20 years in prison and a 10,000 fine if convicted. Feinstein told investigators that he was "very unhappy" about the changes to his playlist, Austin Fire Department Battalion Chief Greg Nye told the AP. The songs were intended for an Internet broadcast that occurs when the station is off the air. "He had a dream of a career in radio and was very disappointed about where it had led him," Nye said. Station president Andrew Dickens told the AP Feinstein had been in a dispute with another volunteer about what kind of music should be put into a digital library for the Internet program. Feinstein was a jazz fan and his Internet program was called "Mellow Down Easy." Feinstein, who had volunteered at the station for about a year, quit a week before the fire, saying he was going to do other things, Dickens said.
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ACLU decries FCC nanny play
The 1.4M+ the FCC is billing broadcasters for a 2003 episode of "NYPD Blue" has been roundly criticized by the American Civil Liberties Union, which considers it an "...egregious example of the government trying to decide what grown adults can and cannot watch." ACLU's Policy Council James Tucker said, "This is just another government attempt to trump our own good judgment and determine what we're mature enough to see. NYPD Blue aired well past the bedtime of most children - at 10:00pm in most markets. Only those affiliates that aired the program between the hours of 6:00-10:00pm would be subject to the fine, which just goes to show the fickle nature of the FCC's rules. By their logic, airing a shot of a bare behind at 10:30pm is fine, but the same shot at 9:30pm is worth millions in fines and penalties. It's also worth noting that ABC included a warning before NYPD Blue indicating that the program was intended for mature audiences only. Such warnings allow audiences to decide for themselves whether they want to see the content, or permit their children to see the content. Instead, the government is stepping in to chill free speech and the free expression of ideas by 'parenting the parents.'"
RBR observation: It's nice to see somebody else say this stuff. Meanwhile, we saw somewhere that the FCC hullabaloo set off a massive nationwide Youtube search for the offending footage. So by shining its spotlight on the segment, representing no more than a parasite on a microbe of the totality of broadcast material in the four years since it originally aired, the FCC has helped bring it out of obscurity and into newfound celebrity, no doubt destroying the moral fiber of all who go on this indecent FCC-inspired scavenger hunt.
 Pediatricians ballistic
over ABC autistic episode
The plot of an upcoming episode of ABC's "Eli Stone" gives the impression that a child developed autism after being given a mercury-based vaccine. The medical establishment says that no such link has ever been demonstrated, and the fictional 5.2M in damages awarded to the fictional victims may be highly misleading to viewers facing their own real life choices about vaccinating their children. In fact, the American Academy of Pediatrics (AAP) is demanding that the episode, due to air 1/31/08, be cancelled. "A television show that perpetuates the myth that vaccines cause autism is the height of reckless irresponsibility on the part of ABC and its parent company, The Walt Disney Co.," said Renee R. Jenkins, MD, FAAP, president of the AAP. "If parents watch this program and choose to deny their children immunizations, ABC will share in the responsibility for the suffering and deaths that occur as a result. The consequences of a decline in immunization rates could be devastating the health of our nation's children." Jenkins wrote to ABC noting that mercury is not a common preservative ingredient of vaccines, and noted that an erroneous link between measles vaccine and autism in Great Britain led to a drop in parental use of vaccines, a spike in cases of measles and even to several childhood fatalities. According to Reuters, ABC has agreed to include a disclaimer at the beginning of the show noting that it is fictional, and at the end would refer viewers to the US Centers for Disease Control (CDC) for further information on autism.
RBR observation: One of the show's writers reportedly said that he agrees children should be vaccinated, and that viewers should watch the show and draw their own conclusions. To that we can only say a rousing "HUH?" The way to encourage vaccination is to suggest that the expected result is autism? When it comes to our own children, we will cast our lot with AAP, not ABC, in the firm belief that ABC is not offering consumers a rational choice but is rather encouraging a wrong choice. The show is supposed to be about a lawyer, not about obfuscating medical facts. Putting such facts out there will not be a proud moment for the business.
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| Wall Street Business Report TM |
Analyst raises Saga estimates
Saga Communications gave Wall Street an early look at what to expect in its Q4 results and caused CL King analyst Jim Boyle to raise his estimates. The company said Q4 revenues would be in a range of 37.3-37.7 million. The company also announced a 30 million bucks increase in its stock buyback authorization, although Boyle notes that Saga has been a slow buyer of its own stock. The analyst notes that Saga is one of the most inexpensive radio stocks (yes, it has TV too, but is mostly radio), but that isn't making him recommend that clients buy the stock. "Saga is still in an out-of-favor sector, so even relatively better-than-expected results versus CL King and largely meeting the Street estimates should not be sufficiently impressive to investors, in our view," Boyle said in his latest research report.
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| RBR News Analysis |
 All night long
"We are considering requiring that licensees maintain a physical presence at each radio broadcasting facility during all hours of operation." So says the FCC as it considers its wide-ranging spectrum of proposals to promote broadcast localism. It's interesting to think about this. We were just thinking about how, back in the day here in Washington, it was great to know that WMAL's Bill Mayhugh was out there during the wee hours of the morning. It didn't seem to matter what your taste in music was - the odds were that whatever he played wasn't likely to be in your wheelhouse if, like us, you were quite a bit younger than he - he still was a comforting presence as you drove through town late or pulled a graveyard shift somewhere in the market.
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| Media Business Report TM |
Malone-Diller battle gets down and dirty
The lawyers are having a field day with what is now a fight over control of IAC/InterActive Corporation. John Malone's Liberty Media has sued to toss out most of the directors of IAC and revoke IAC CEO Barry Diller's right to vote Liberty's IAC stock. In response, a statement from Diller and IAC call Malon's action "preposterous" and say Liberty "has gone off the deep end." Miller is fit to be tied that Diller is proposing to spin-off four new companies from IAC with each having a single class of voting stock, thus eliminating Liberty Media's theoretical voting control (1/28/08 RBR #18). We say theoretical because Diller holds the proxy to vote those super-voting shares owned by Liberty. Now Liberty has filed a court action which, if successful, would strip Diller of that proxy and even his seat on the IAC board. Liberty's lawsuit also seeks to unseat Diller's wife, Diane Von Furstenberg, and five other IAC directors: Edgar Bronfman Jr., Victor Kaufman, Arthur Martinez, Steven Rattner and Alan Spoon. According to IAC and Diller, the previous round of lawsuits over whether or not IAC has the right to establish a single class of voting stock for the spin-offs was a "well intentiond effort at peaceful resolution," but that now "Liberty has now gone off the deep end, not only alleging that Mr. Diller has somehow materially breached his proxy by which he has voted Liberty's IAC shares for over 12 years, but also purporting to unilaterally throw out the incumbent directors and installing its own slate."
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Ad Business Report TM
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GroupM reorganizes local buying
WPP's GroupM announced a reorganization of local broadcast buying units at its Mediaedge:cia, MediaCom, and MindShare media agencies. The announcement was made by GroupM Chief Investment Officer Rino Scanzoni. The plan calls for the local broadcast units at each of the three agencies to be consolidated into two separate teams called Team Matrix and Team Motion that will operate under the GroupM banner. This follows similar client-focused philosophies as with WPP's Team Detroit, catering specifically to Ford Motor Media. Each team will operate independently of each other with separate personnel and management, as well as separate office space, in order to provide a clear separation of conflicting accounts while also recognizing the regional needs of specific clients. Team Matrix will have offices in NYC, Atlanta, Chicago and LA. Team Motion will operate out of offices in NYC, Boston, Atlanta, Miami, Detroit, Chicago, Dallas, Denver, LA and San Francisco. Ellen Drury has joined GroupM from her role as SVP/Director of Local TV and Radio Investments, at Optimedia U.S. to serve as president of Team Matrix; Rebecca Rogers, currently director of local automotive broadcast in Mediaedge:cia's Irvine, CA office, was named president of Team Motion. Both will be based in New York and will report to Scanzoni. The reorg will be phased in over the next several months and is not expected to be fully operational until mid-summer. Until that time, all three local broadcast units at the individual GroupM operating units will remain fully functional.
Synergy Brands signs with
NY Islanders for P&G promotions
 Synergy Brands has entered into a sponsorship deal with the NY Islanders to promote certain P&G products including Duracell, Folgers, Gillette and Pringles through PHS Group. Synergy Brands' PHS Group (PHS Grocers Supply), intends to use the sponsorship agreement to provide sales incentives to its customer base, as well as to market to independent retail stores and wholesalers in the NY Metro area. The sponsorship will include radio advertising, online advertising, print, business development programs and in-game promotions. PHS will initially focus its marketing efforts on Duracell in its incentive drives, but intends to supplement its plans based upon market demands. Mike Bossy, Executive Director of the Islanders Business Club believes that "A partnership for PHS with the Islanders should allow for commercial visibility for PHS as it tries to secure a distinct market position in the grocery market of the NY Metro area."
Nancy Hill named AAAAs CEO
Nancy Hill. 49, has been named President and CEO of The American Association of Advertising Agencies, replacing O. Burtch Drake. Hill most recently served as CEO of Lowe NY, where she led an open-source agency reorganization and oversaw the launch of Lola (Lowe Latina) in the US. Previously, she was executive vice president, managing director, at BBDO New York. Drake, who has served as president and CEO of the AAAA since 1994, will retire 3/31, the end of the Association's fiscal year. Hill becomes the ninth AAAA CEO since the association was founded in 1917.
DDB Worldwide wins Unilever Ice Cream brands
Unilever has awarded its US ice cream brands, including Breyers, Klondike, Popsicle and Good Humor to DDB Worldwide. In addition to the US win, DDB also won both the global Heartbrand ice cream accounts and the Unilever dessert brands in global markets. In total, DDB will work on approximately half of Unilever's global ice cream portfolio which represents half of the marketing spend. The agency's first work will appear in 2009.
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| Media Markets & Money TM |
EMF strikes again
Nothing seems to be able to knock noncommercial K-LOVE Network operator Educational Media Foundation off of the acquisition trail. This time, it has gone just about as far away as it can from its California base to take another commercial band FM into the non-profit Contemporary Christian world. EMF is getting WMEX-FM in the Rochester-Portsmouth-Dover NH market. Star Media Group broker Doug Ferber, who handled the arrangements, puts the price at 1M. He said that the station, licensed to Farmington NH, is on the northern reaches of the far flung market, above Rochester. The seller is Dennis Jackson's WIMMEX LLC.
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| Washington Business Report TM |
 Gimme shelter to go with the flow
H.R. 2102 has been passed by the House of Representatives back in October, and now the NAB wants the Senate to perform the same service for S. 2035. The codes refer to the "Free Flow of Information Act," and NAB President/CEO David K/ Rehr, pictured, has fired off a letter to Senate Majority Leader Harry asking that the measure be brought to the Senate floor for a vote. The bill would provide a reporter's shield, allowing them to protect anonymous sources when necessary with certain special exceptions. Most states have such a shield on the books, and there has been a strong bipartisan effort to get a federal shield on the books as well. Rehr noted that it cleared the Senate Judiciary Committee with a bipartisan 15-4.
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| Internet Business Report TM |
Endemol USA, Metacafe to launch online ''Buzzed''
Endemol USA, with franchises such as Deal or No Deal, Big Brother and 1 vs. 100, and Metacafe, a video entertainment site, announced a programming partnership to produce "Buzzed," a new online late-night game show. The hilarious interactive series will showcase nightclub and bar patrons answering a series of trivia questions as they leave popular late-night hotspots throughout the country. Available exclusively on Metacafe, Buzzed will showcase impromptu, man-on-the-street interviews between the show's host and contestants. With questions ranging from pop culture to general trivia, contestants will be awarded a cash prize for every correct answer. Contestants will also have the opportunity to "drunk dial" a friend to help answer one question, if necessary. Slated to launch across the U.S. this spring, Buzzed is now in pre-production, with film crews to hit late-night hotspots in cities such as New York, Chicago, Miami, Boston, San Francisco and elsewhere. Buzzed sponsorships are now being developed with brands interested in leveraging short-form video entertainment to build awareness and engagement among the target audience of viewers age 21+. Sponsorship packages include product integration and prizing opportunities in addition to standard video and interactive ad units.
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| Ratings & Research |
Nielsen: local radio tops for African American ad spend
In its first 12-month analysis of ad spending on media outlets that reach African American consumers, The Nielsen Company reported spending from 10/1/06- 9/30/07 totaled 2.3 billion. The analysis covers over 22,000 national, regional and local advertisers, across 130+ media vehicles. Nielsen Monitor-Plus tracked Local Radio, National Magazine, National Cable TV, Network TV and Syndication TV. Local Radio reported the greatest amount of spending on African American targeted media at 805 million dollars, comprising 35% of total spend. National Cable TV reported the largest ad growth with 14.5% during this period. This growth is the result of a number of factors including: Year over year growth for BET, the inclusion of TV One in the Nielsen Monitor-Plus service as of 1/07, as well as a number of high profile TV programs such as "House of Payne" on TBS, "Being Bobby Brown" on Bravo, "Flavor of Love" on VH1, and "Making the Band" on MTV.
Syndication TV reported 102.4 million dollars in ad spend for programs that have a 50% or greater composition of African American audiences, and that's down year over year. Syndication is made up of a good mix of both established off-network programs such as "The Bernie Mac Show," "One on One" and "Girlfriends" as well original syndication programming, like "Judge Mathis" and "Showtime at the Apollo." Network TV at 193.3 million dollars saw a consolidation of UPN and WB into the new CW network. The Top Network TV shows based on total ad revenue are: "Girlfriends," Everybody Hates Chris," "The Game," and "All of Us" on the CW, as well as "Watch Over Me" on MNT. With 89.7 million in spending, P&G is the largest advertiser targeting African Americans. McDonald's is second with 37.7 million, followed by Johnson and Johnson with 36.1 million. Collectively, the Top 25 Advertisers spent a total of 681.0 million. Five auto makers are in the top 25 advertisers across all African American media: GM (35.8 million), Chrysler (28.2 million), Ford (25.9 million), Nissan (22.1 million) and Toyota (21.7 million).
 Consumers opt for quality time with loved ones Valentine's gifts
As cupid prepares for his biggest day of the year, consumers are also planning special ways to celebrate with their loved ones. According to the National Retail Federation's 2008 Valentine's Day Consumer Intentions and Actions Survey, conducted by BIGresearch, the average consumer plans to spend 122.98 on Valentine's Day, similar to last year's 119.67. Total spend on Valentine's Day is expected to reach 17.02 billion. Traditional gifts, such as candy, flowers and jewelry will see a slight decrease in popularity this year with more consumers preferring gifts of experience and gift cards. Almost half (48.2%) of all consumers plan to celebrate Valentine's Day with a special night out, compared to 45.3% last year, and 12.3% will give a gift card, compared to 11.3% last year. Greeting cards still remain the most popular choice, though the number of people planning to purchase one is down from last year (56.8% vs. 62.8% last year). Nearly 48.0% of consumers will buy candy, 35.9 will buy flowers and 11.8% will buy clothing.
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| This Week in Time |
 We know where we are today reading RBR but how did we get here? RBR's weekly business brief gives a quick scan on where radio has been.
Visit our website to review the history,
read our archives at RBR.com
4 years ago -- 2004, Issue 16
All eyes turn to New Hampshire. XM shares priced at $26.50. How Radio stocks fared: Stocks finish up in down market. Bucked a down trend on Wall Street Friday, although the gains weren't anything to get excited about. Beasley 17.22, Cox Radio 23.50, Regent 7.21, Westwood One 32.50.
3 years ago -- 2005, Issue 21
Supreme challenge--NAB, nets pick up the flag. RBR observation: Sooner or later, the US Supreme Court is going to have to decide the ownership concentration issue. How Radio stocks fared: Stocks end down on mixed news cheered stock traders on Friday, but failed to counterbalance a GDP report. Beasley 16.63, Cox Radio 15.71, Regent 5.20, Westwood One 24.30.
2 years ago -- 2006, Issue 20
CBS looks to buy, even as it sells. 2006 election season seems to be getting off to an early start. How Radio stocks fared: Stocks rise on GDP report. Word that GDP growth was less than expected cheered Wall Street traders. Beasley 14.03, Cox Radio 13.98, Regent 4.78, Westwood One 14.82.
1 year ago -- 2007, Issue 19
Clear Channel Communications: Scofflaw? RBR observation: A lot of times you see a shoestring noncommercial station at a community college where students do most of the work getting caught in the FCC regulatory machinery. How Radio stocks fared: A mixed finish to the week. Bargain hunters stepped in Friday after stock prices fell. Beasley 9.12, Cox Radio 15.44, Regent 3.10, Westwood One 6.85.
RBR note: For stock prices see below.
Archived issues located at www.RBR.com
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| Transactions |
775K KIKO-AM Miami AZ/KIKO-FM Claypool AZ from Shoecraft Broadcasting Inc. (Ruth Wallace, sec) to 1TV.COM Inc. (John Low). 50K escrow, balance in cash at closing. Price increases 250K if buyer is able to secure upgrade of FM to Class C3 within 24 months. [File date 12/31/07.]
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| Stock Talk |
A good news day, except for radio
Stocks rose on a day with plenty of good news: durable goods orders were better than expected in December and the US House of Representatives passed the stimulus bill. Of course, the big hope is for more good news today - that the Fed will announce another rate cut this afternoon. The Dow Industrials rose 96 points, or 0.8%, to 12,480.
Radio stocks missed out. Jitters about the Clear Channel buyout sent that stock plunging 7.2% and dragged down some other radio stocks as well. The RBR Radio Index declined 1.723, or 2.1%, to 82.309. Radio One's Class A was down 7.7% and its Class D 5.3%. Cumulus fell 4.5%.
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| Radio Stocks |
Here's how stocks fared on Tuesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron*
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ARB
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40.13
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-0.93
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Google
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GOOG
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550.52
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-5.46
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Beasley*
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BBGI
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5.46
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+0.03
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Hearst-Argyle
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HTV
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21.23
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+0.11
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| CBS CI. B |
CBS |
 |
25.03
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+0.31
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Journal Comm.
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JRN
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8.22
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+0.13
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| CBS CI. A |
CBSa |
|
25.00
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+0.30
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Lincoln Natl.
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LNC
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54.70
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+1.99
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| Citadel* |
CDL |
|
1.67 |
-0.06 |
Radio One, Cl. A
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ROIA
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1.57
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-0.13
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Clear Channel*
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CCU
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29.17
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-2.25
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Radio One, Cl. D*
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ROIAK
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1.61
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-0.09
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Cox Radio*
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CXR
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11.51
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+0.16
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Regent*
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RGCI
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1.38
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-0.07
|
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Cumulus*
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CMLS
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6.00
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-0.28
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Saga Commun.*
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SGA
|
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5.90
|
+0.12
|
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Debut Bcg.
|
DBTB
|
|
1.02
|
unch
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Salem Comm.*
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SALM
|
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3.85
|
+0.11
|
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Disney
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DIS
|
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28.80
|
-0.57
|
Sirius Sat. Radio
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SIRI
|
|
3.10
|
+0.02
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Emmis*
|
EMMS
|
|
2.75
|
-0.11
|
Spanish Bcg.*
|
SBSA
|
|
1.79
|
-0.05
|
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Entercom*
|
ETM
|
|
12.33
|
+0.26
|
Westwood One*
|
WON
|
|
1.77
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-0.07
|
|
Entravision
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EVC
|
|
6.88
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-0.05
|
XM Sat. Radio
|
XMSR
|
|
11.40
|
+0.25
|
|
Fisher
|
FSCI
|
|
32.64
|
-0.29
|
-
|
-
|
-
|
-
|
-
|
*Component of the RBR Radio Index
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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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RBR News Analysis
Localism, All night long
FCC considers its wide-ranging spectrum of proposals to promote broadcast localism....
Washington Business Report
Gimme shelter to go w/ the flow
H.R. 2102 has passed by the House NAB wants the Senate to do same...
Media Markets & Money
EMF strikes again
Nothing seems to be able to knock noncommercial K-LOVE...
Ratings & Research
Local radio tops
For African American ad spend...
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Stations for Sale
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 Market your Stations For Sale
in our daily epapers.
Contact
Jim Carnegie
[email protected]
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Radio Media Moves
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Trio of Sr. VPs
ABC Radio Networks announced the promotions of three company veterans to Senior Vice President. Ken Mayer has been named SVP, Finance and Strategic Development; Christine Ianuzzi SVP, Broadcasting Technology, Engineering and Operations; and Omar Thompson SVP, Marketing and Communications. "Since joining ABC Radio Networks, Christine, Ken and Omar have displayed a unique ability to anticipate and meet the ever-changing needs of our listeners, affiliates and radio talent. They are forward thinkers and play substantial roles in maintaining our company's leadership position in the radio industry," said Jim Robinson, President of ABC Radio Networks.
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More News Headlines
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ESPN, XM to launch new channel
ESPN and XM Satellite Radio today announced that XM will add a new slate of ESPN programs to its line up starting 2/4 featuring a new ESPN Radio-dedicated channel. XM and ESPN will re-brand XM channel 141 as ESPN Xtra. It will enhance its current schedule of ESPNEWS programming with new shows and specials, including three of ESPN Radio's talk programs from its O&O stations in New York and Dallas, which will be available for the first time for a national radio audience only on XM. The ESPN Xtra channel will also air content produced by ESPN exclusively for XM throughout the year, live coverage of events ranging from the X Games to the ESPY Awards, and ESPN columnist Bill Simmons' popular podcast from ESPN.com. In addition to the newly-branded ESPN Xtra channel, XM will continue to offer ESPN Radio (XM channel 140).
Lou Faust dead at 84
Long-time national rep and local radio GM Lou Faust has died at age 84 in Boise, ID. Faust had been GM of WPAT-AM & FM NYC and what is now KISS-FM Los Angeles. But much of his long radio career was as a rep in NYC with companies now consigned to history - John Blair and Radio One. He was also a station broker and rep for music syndication. "Lou trained a legion of Salesmen and Sales managers along the way. Tall, ramrod straight, grey haired early, known as the Eagle. Bright-scrupulously honest, hard working, a product of the '30s depression. Known to have a couple of adult beverages before hitting the commuter train-hearty laugh. We're going to miss you, Louie, the Good Lord only built one of you then threw away the mold," said Frank Boyle in an email informing us of his friend's death.
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RBR Radar 2008
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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One less broadcast analyst
Yet another radio and TV stock analyst has gotten his pink slip. Bank of America is the latest Wall Street firm to decide it can do without anyone covering broadcasting stocks and has bid adieu to Jonathan Jacoby, as well as folks covering a couple of other media sectors. Jacoby had been with BofA since May 2003.
RBR observation: RBR readers know that we had quoted Jacoby's research pieces frequently, so we will miss sharing his views with you. His email notifying us of his departure from BofA expressed the hope that this will be a short "respite" before he resumes his dialogue with us about stocks. We hope that's the case, but it certainly looks like a tough time to be finding anyone hiring media analysts on Wall Street. Last word, analysts have been forecasting negative growth in radio and TV for a number of years and in many ways their research did them in. RBR will not be surprised to see more pink at this level of Wall Street once Clear Channel and Cumulus close their deals.
01/29/08 RBR #19
WGA Strike Central, Day 86
Carat on strike: "Are TV fans tuning in or dropping out?"
To gain a better understanding of consumers' media habits and attitudes as a result of the strike, Carat fielded an online survey of 1,000 primetime TV viewers. The findings shed light on the fact that fans are not deserting TV, but people are shifting their viewing patterns.
TVBR note: Carat's analysis for TVBR in this report.
01/29/08 TVBR #19
Clear Channel orders
deep cuts as recession looms
Clear Channel Radio CEO John Hogan sent out an email Friday ordering all VPs, GMs and Business Managers to make immediate cost cuts to curtail Q1 expenses. This follows RBR's recent report on how soft national sales pacings were early in the quarter (1/23/08 RBR #15). Apparently the shortfall is deep and wide for Clear Channel as management struggles to keep profits up in preparation for the going private buyout.
RBR observation: For a company that had already long ago cut expenses to the bone, further cuts could very likely create opportunities for competitors to increase audience and/or revenue share. But with the economy sliding into recession, it's not clear that very many will have the resources to grow as the radio industry giant shrinks. It will be hard to ramp up promotions and hire more sales people at a time when, in many cases, flat revenues will be seen as good news. For Hogan and his bosses, Mark and Randall Mays, the top priority right now is getting the Clear Channel buyout across the finish line. The stars appear to be in alignment, but anything that knocks the Q1 financial numbers severely off-course could be disastrous.
Read the email at RBR.com
Clear Channel buyout to close in Q1
Thomas H. Lee Partners dealmaker Scott Sperling was quoted as saying that the company has plenty of financing sources and expects to close the 26.7 billion bucks buyout by March 31st. The FCC gave its formal approval to the license transfers last week and antitrust approval by DOJ is expected to come quickly.
RBR observation: Despite all of the squeamishness in the market, neither Thomas H. Lee Partners, Bain Capital, nor Clear Channel itself ever took any actions to add credence to the fears that this deal would not close. Rather, they have moved steadily ahead with all of the actions required to complete the buyout as advertised. Shareholders have already approved the deal. The FCC has now approved the deal. The DOJ approval has been applied for - and that should be just a formality. It's still all systems go and it appears likely that arbitrageurs who bought in on the market nervousness will get a nice return.
01/28/08 RBR #18
ABC stations fined
1.4M for bare buns
It took the FCC five years to decide that a February 25, 2003 episode of "NYPD Blue" broadcast on ABC Television was indecent, but late Friday the Commission announced plans to fine two ABC O&Os and 50 affiliates a total of 1,430,000 bucks because the program showed the bare buttocks of a woman as a young boy was depicted as entering a bathroom and discovering the woman nude as she was about to enter the shower.
TVBR observation: This is going to be a really tough one for the FCC to defend in court, so here is some free legal advice for the Commission's lawyers. First, make certain the judge has no access to a dictionary. This is absolutely critical to upholding your position that a buttock is a "sexual organ." Secondly, don't let the judge find out how arbitrary, vague and inconsistent your indecency standard has been over the past several decades. And finally, make sure he/she doesn't learn that not a single one of the complainants actually saw the broadcast, as they certified to the FCC. The monitoring sites for these zealot groups are in the Eastern time zone where the broadcast was within the safe harbor. But they ginned up complaints via email blasts that got followers to lie to the FCC and claim that they had viewed the broadcast in the Central and Mountain time zones.
01/28/08 TVBR #18
Who needs HD Radio
Conditional Access?
Information and entertainment is undergoing a revolution. Just as digital video recorders, internet-based video distribution and the proliferation of video-capable mobile devices have changed our expectations concerning television, radio is now undergoing a similar transformation. Terrestrial radio is free and always will be. Although the options of pay-for subscriptions and pay-per-listen scenarios are emerging, they will always be just that - options. Conditional Access (CA), the encryption of programming and entitlement of authorized receivers, is a term normally associated with pay entertainment services like satellite or cable TV. However, as radio continues to evolve, entitlement and encryption are becoming more important. Why would an encryption technology be important to terrestrial digital radio?
01/25/08 RBR #17
Clear Channel approval released
RBR reported over a week ago that the FCC had voted unanimously to approve the sale of Clear Channel Communications to Thomas H. Lee Partners and Bain Capital for 26.7 billion, including debt assumption, but the paperwork finally came out last Thursday. Although they both voted for the license transfers, Commissioners Michael Copps and Jonathan Adelstein, the FCC's two members from the Democratic Party, expressed some misgivings.
01/25/08 RBR #17
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