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Volume 24, Issue 201, Jim Carnegie, Editor & Publisher
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Monday Morning October 15th, 2007
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Radio News ®
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PPM: what should the guarantee be?
Arbitron has now instituted its guarantee for Portable People Meter in-tab delivery, promising refunds to stations if it fails to hit the target for Persons 6+ measurement in any PPM market. But that hasn't satisfied the Radio Advisory Council (RAC), which has countered with a request that Arbitron instead guarantee in-tab delivery for Persons 18-54. RAC Chairman Steve Sinicropi of Cox Radio tells RBR that Arbitron has promised a response by November 9th, when the ratings company holds its next client call following release of monthly PPM data for Houston, Philadelphia and, for the first time, but still pre-currency, New York.
 In Friday's monthly calls with the trade media and clients, Arbitron officials touted improvement in in-tab delivery. For the September ratings month, Philadelphia was at a DDI (Designated Delivery Index) of 101, so slightly over target, for Persons 6+. The 18-34 demo remains the problem spot, at a DDI of 57. In Houston, the DDI for Persons 6+ was still short, at 90, but was better than Philly in the 18-34 demo, at 81. Sinicropi agreed that there has been some improvement in the two markets where PPM is now ratings currency, but he noted that for New York, which is in pre-currency mode, the same problem exists with Arbitron missing the target for 18-34 "by significant levels." According to Arbitron figures as of September 21st, the DDI for the New York market was 102 for Persons 6+, but 62 for Persons 18-34. We learned a bit more Friday about how Arbitron is dealing with the overlapping use of both diary measurement and PPM in the New York suburbs. While the total NYC market is being measured by PPM, as are two of the embedded markets, Nassau-Suffolk, NY and Middlesex-Somerset-Union, NJ, the other local radio markets embedded in the New York Metro are still being measured by diaries. Arbitron Sr. VP Jay Guyther says there is no mixing of the two methods. There are folks in the Morristown, NJ market, for example, who carry PPM devices for the New York Metro panel. There is a completely separate set of people in the Morristown market filling out diaries for the local market's ratings data. Despite the overlap, the ratings data is not combined.
| See the map |
RBR observation: No doubt many stations would like to see Arbitron guarantee 18-34 in-tab delivery for PPM, but that seems to be too much to hope for. That demo is the one we see mentioned most often in emails from readers pertaining to PPM, but it has also long been a problem demo for Arbitron's diary methodology - and for pretty much every company that tries to measure anything dealing with US consumers. Asking for an 18-54 guarantee is a bit of a compromise by the RAC, giving Arbitron some wiggle room but still calling for something more focused on the problem area than a broad 6+ guarantee. Now the folks at Arbitron have to do the math and figure out what it would cost them to make sure they can hit an 18-54 target in every PPM market as the new system is rolled out to all of the top 50 markets - and the risk of refunds for an occasional shortfall. The bottom line, though, is that Arbitron and its client stations all want the same thing - for PPM to properly measure radio listening in all demos, including the young ones.
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No NYC PPM data yet
Our report in Friday's MBR was incorrect, due to a misunderstanding on our part. Arbitron did not deliver any PPM listening data for the New York market on Friday. The only NYC information released was the update on the PPM installed panel and in-tab. The first PPM ratings data for New York will be released next month.
 Food for kids:
Markey has a two-for-five week
Ed Markey (D-MA) is Capitol Hill point man in the battle against childhood obesity, and has been recruiting food manufacturers and marketers for the Council of Better Business Bureaus (CBBB) initiative to limit marketing of food to children under age 12 unless it meets certain nutritional standards. ConAgra and Chuck E. Cheese indicated they would sign on; Dannon, Nestle and Yum! Brands will not. "I applaud Chuck E. Cheese and ConAgra for taking a step in the right direction. Though Dannon, Yum! Brands, and Nestle have been slow to act, I hope they have a 'Quik' change of heart for the sake of America's children. At a time when our country is facing a serious childhood obesity crisis, the responses from these companies raises the question of whether voluntary industry action will be sufficient to combat this important public health issue," said Rep. Markey. Yum!, owner of KFC and Taco Bell among other things, said in its letter that it wasn't signing up because it targets adults and families in the US, and would "commence a dialogue with BBB" in the event it ever does decide to advertise to preteens. Dannon said it already does a number of things in this area, and hasn't yet decided if it will sign on to the current effort. Nestle said it self-restricts and that coming into compliance would actually have the potential of limiting some of its beneficial activities, such as distributing its Healthy Steps for Healthy Lives kits to school teachers.
RBR observation: It four of five companies continue to advertise gum and candy to kids, it will put every other company in the gum and candy company at a competitive disadvantage, bringing down the whole voluntary house of cards. If the players in this don't police themselves, it will not be long before Markey looks to put something in place with more teeth than a voluntary program.
Rehr opposes LPFM bill
 NAB President/CEO David Rehr has fired off a letter to Senate Commerce Committee chair Daniel Inouye (D-HI) opposing S.1675, the Local Community Radio Act of 2007. He says it would allow thousands micro radio stations to come into existence on the basis of a flawed study, and says they will interfere with existing full-power FMs in third-channel adjacency restrictions are no longer observed. He suggested allowing the FCC to act on pending applications, and getting granted LPFM CPs built, before going further down the LPFM road. "Local broadcasters do not oppose the licensing of LPFM stations," he wrote. "We do oppose the introduction of thousands of micro-radio stations that would cause significant harmful interference to full power FM stations."
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CMD/FP hit on VNRs again
Watchdogs Center for Media and Democracy and Free Press recently celebrated 20K in FCC fines leveled at cable giant Comcast for airing unattributed video news releases. The duo is still awaiting possible action against numerous broadcast outlets on the same grounds, and has now fired off complaints about another. Max Media's ABC WGTU-TV 29 Traverse City MI stands accused of running three such items without proper sourcing. "Stations continue to air fake TV news, even though the FCC has repeatedly stated that VNRs must be disclosed," said Diane Farsetta, CMD senior researcher. "While the FCC recently announced that it will fine Comcast for five VNRs, more must be done to ensure the public's right to know. Not disclosing fake news benefits TV stations, PR firms and their corporate client -- everyone except the millions of Americans who rely on TV news daily." The watchdogs used the occasion to push for action on the other pending cases.
RBR observation: There is nothing inherently sinister about the concept of a VNR, or an audio news release either. The NAB recently put one out on the DTV transition, and among other things it has a pretaped interview with FCC Commissioner Robert McDowell discussing the topic. A station which cannot simply put a reporter on a cab to go across town and interview McDowell can use the footage to build a legitimate story in a genuine effort to bring important news about the transition to its viewers. On the other hand, if a news program puts on a story about the importance of a high fiber diet and it includes b-roll footage of a family sitting at a table eating ACME Bran Flakes, and the VNR was sent in by ACME, the source should be identified. Government releases are not necessarily benevolent, either, when they are used to push a point of view that is far from being a settled matter. At the FCC, Jonathan Adelstein has made this a pet project, and at a Senate hearing, there was general agreement on both sides of the aisle that some form of identification was appropriate when VNRs are used. We suspect we have not heard the last on this topic.
Modest September sales gains reflect
conservative consumer
 According to the National Retail Federation, retail industry sales for September (which exclude automobiles, gas stations, and restaurants) rose 2.2% unadjusted over last year and 0.2% seasonally adjusted from August. September retail sales released by the Commerce Department show total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) increased 0.6% seasonally adjusted from last month and 2.9% unadjusted year-over-year. While some categories fared well, unusually warm weather didn't help clothing and clothing accessories retailers whose sales increased a meager 0.3% unadjusted year-over-year and decreased 0.4% seasonally adjusted from August.
Consumer demand for popular electronics such as cell phones and MP3 players helped boost electronics and appliance stores sales 0.9% seasonally adjusted from August and 3.4% unadjusted year-over-year. Health and personal care stores also showed strength with seasonally adjusted sales from last month increasing 1.0% and 4.1% unadjusted year-over-year. Housing market concerns affected both building material and garden equipment and furniture and home furnishings retailers. Sales in home furnishings stores dropped 0.6% seasonally adjusted from August and 3.6% unadjusted over last year. Building materials stores sales increased 0.1% seasonally adjusted month-to-month and decreased 2.3% unadjusted year-over-year.
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Ad Business Report TM
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HD Radio Alliance allowing limited ads; opens up formats
The HD Digital Radio Alliance announced has revised its two-year ad-free policy to allow companies the opportunity to monetize their HD2 stations on a limited basis. HD2 stations can now accept "name-in-title" (i.e. "The Starbucks Channel") sponsorships and limited sponsor mentions per hour. The Alliance also renewed the group's charter with a commitment of 230 million in additional marketing funds for 2008. This is the third year the member companies have come together in a unified and concerted effort to continue the successful momentum of HD Digital Radio. The new ad dollars bring the total committed by the group to 680 million. The new charter also simplifies the process of format selection for HD2 stations. The Alliance and its members remain very much committed to format diversity on HD2 to help drive consumer interest, but now stations will be able to change their HD2 formats without Alliance review provided that the new format is not currently on the air in the local market on either analog or HD2. Each station must still secure approval from its parent company prior to any change. The Alliance also amended its membership requirements which should encourage other companies not currently a part of the HD Digital Radio Alliance to join in this industry effort.
RBR observation: Bravo to the Alliance. Allowing stations freedom to compete with formats and expand their offerings in each market is great news. It will also allow stations to drop the bureaucracy that goes along with previously "requesting" a format, which had to get agreement from other stations in the market. Obviously, allowing ads on the multicast streams has long been requested. 2008 will begin the monetization process.
Kodak to end Olympics sponsorship
 Following the closing ceremonies of the Beijing 2008 Olympic Games, Eastman Kodak Company will conclude its sponsorship as the Official Imaging Sponsor of the Olympic Games. "The Olympic Games and the International Olympic Committee have played a major role for Kodak historically, helping us to showcase products, innovations, and services," said Kodak's Elizabeth Noonan, Director, Brand Management. "As we complete the transformation of Kodak, it makes sense for us to take a new direction," Noonan said. "Digital technology changes everything, including the way we market our products and services. Our new business strategy requires us to reassess our marketing tactics as well, and adapt them to changing market conditions and evolving customer behavior."
Kodak is one of 12 sponsors in The Olympic Program, the top-tier partnership level for companies supporting the Games. Kodak will fully participate as a TOP sponsor through the 2008 Beijing Games. These include operating a 20,000-square-foot Kodak Image Center for accredited photojournalists to process, edit, and upload their photos of Olympic athletes; a polyclinic for diagnostic imaging and treatment of athletes' injuries; and accreditation badging for thousands of Olympic participants, families, volunteers, guests, journalists and officials. Kodak signed an eight-year agreement valued at more than 100 million to continue as a global sponsor for the 2002 Winter Games in Salt Lake City, the 2004 Summer Olympics in Athens, the 2006 Winter Games in Turin and the 2008 Summer Games.
RBR observation: Kodak's transition to digital hasn't been an easy one. The more likely reason for this pullout is to simply save money. Kodak has had 2.1 billion in net losses over the last 11 quarters. Its work force will slip to around 34,000 at year-end, half what it was five years ago, according to The AP.
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| Media Business Report TM |
Journal makes an acquisition
Journal Communications announced an addition to the company, albeit a rather small one. The Journal Community Publishing Group has purchased the weekly Clinton Tribune-Gazette in Wisconsin from GateHouse Media. Terms were not revealed, but the price tag could not be substantial for a company the size of Journal. The Clinton Tribune-Gazette has a paid circulation of approximately 2,300. "The acquisition of the Tribune-Gazette allows Journal Community Publishing Group to deepen its media offerings and extend its reach in north central Wisconsin and to take advantage of efficiencies created by our printing facility in nearby Waupaca," said Journal Communications CEO Steven Smith. He also noted that the company is interested in acquiring other community newspapers to expand its footprint in its Wisconsin and Florida markets.
 Talkers diverge from the news
The news coverage for the week of 9/30/07-10/5/07 gave the ever-hot topic of the 2008 presidential campaign a slight nod over the events in Iraq saga, 14%-13%. The Iraq story was propelled by incidents and Congressional hearings involving private security firm Blackwater. Talkers also gave the campaign the most attention, with 30% of their available time, but pretty much gave Blackwater a pass in order to wage a "proxy" battle over Iraq policy revolving around comments by Rush Limbaugh. The policy topic claimed 25% of the talk hole, with only 7% going to events. All of which didn't leave much time for other topics. Larry Craig claimed fourth place with a mere 3%.
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| Media Markets & Money TM |
Shedding light on GAP
The GAP company that just bought Clear Channel stations in the west is not the same as the GAP company operated by George Laughlin in and around Texas, according to GAP West President Skip Weller. There is a connection between the two -- they have the same equity backers, and will share resources where it makes sense, but other than that, both groups will be independent of one another. Weller said the nine-market Clear Channel buy is just the beginning for his group -- look for further acquisitions in the same general geographic area.
Amphibious Religious companies in station buys
The Eastern seaboard Baker family and the Midwestern Botts family have something in common. They run radio stations, and make frequent use of Religious formats on their stations. And, they essentially run two separate groups, one commercial and one not. Both have recently filed to acquire stations. The Baker family is using their noncommercial Positive Alternative Radio Inc. to acquire reserved-band WRFE-FM in Chesterfield SC. The seller is Christian Educational Association, which will receive 350K cash (less 50% of LMA payments). However, that amount will increase to 500K if a CP to upgrade from Class A to C2 is granted. The Botts are actually acquiring two stations, and demonstrating their amphibian nature in so doing. They are acquiring KAYH-FM Fayetteville AR as a noncom, and KOFC-AM Fayetteville AR as a commercial operation. Family Vision Ministry, owned by William and Martha Disney, is the seller. Each station is priced at 450K for a 900K total.
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| Washington Business Report TM |
 FEC set to examine implications of Supreme ruling
When the Supreme Court ruled in favor of Wisconsin Right to Life (WRtL), it put another major dent in the Bipartisan Campaign Reform Act often known as McCain-Feingold. Not that the ruling necessarily cleared matters up appreciably, however. The Federal Election Commission is going to devote two entire days to a public hearing on just what the ruling means in terms of the rules. The FEC opened the matter to public comment 8/23/07. The questions revolve around the court ruling, "which held that certain advertisements were entitled to an exemption from the Bipartisan Campaign Reform Act's (BCRA) restriction on the use of corporate or union funds for 'electioneering communications.' The Supreme Court held that the specific ads at issue in the case were not the 'functional equivalent of express advocacy' because they were 'susceptible of a reasonable interpretation other than as an appeal to vote for or against a clearly identified Federal candidate.'" The FEC has set aside two days for this, 10/17-18/07.
RBR observation: You can make a strong case that the WRtL ad was hiding behind an issue to go after a federal candidate, which is why supporters of BCRA won in lower courts. The issue discussed in the ads, support for President Bush's bench nominees, was not on the Congressional agenda at the time, so it could be argued that WRtL could afford to abide by BCRA pre-election blackout and bring the matter up over the airwaves when there was a nomination pending before Congress. Coming up with a regulatory framework that doesn't head straight back to the courts figures to be a real challenge.
| FEC hearing schedule here |
Martin touting efforts to increase minority ownership
FCC Chairman Kevin Martin used a Washington symposium Friday by Jesse Jackson's Rainbow/PUSH Coalition to promote his idea that DTV multichannels provide a way to increase minority involvement in media. His idea, which hasn't yet gathered support from other commissioners, is that minorities would be able to lease digital channels from existing broadcasters to increase the diversity of programming in local markets. Martin also pressed the idea that his cable a la carte proposal, unbundling cable programming offerings, would increase opportunities for minorities. Meanwhile, at the same conference, Jackson himself and the two Democrats on the FCC, Commissioners Michael Copps and Jonathan Adelstein, pressed for creation of a minority media task force to draw up recommendations before the FCC takes any new action on ownership rules.
RBR observation: Leasing DTV channels to minorities, or anyone for that matter, doesn't really require FCC action. It can be done today and it sounds like a pretty good idea to us. As for Martin's claim that a la carte will increase minority opportunities in cable, the minorities who already operate cable channels say just the opposite - that a la carte will put them out of business. We would agree with them that Martin has the economic reality backward on this issue.
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| Entertainment Business Report TM |
 Latest name format: Tom
Having just closed on the former Clear Channel cluster in Charlottesville, VA, Monticello Media has flipped the 107.5 mHz signal to new calls, WWTJ, and christened it [email protected]. The pitch for the new "name" format is that it plays anything, anytime. "Tom is anything but traditional. Tom may play a U2 song followed by the Bee Gees then Matchbox 20, Lou Rawls, Def Leppard, Madonna, Nickleback then Earth, Wind and Fire," declared the company launch announcement.
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| Internet Business Report TM |
KFI-AM launches "VodCast"
LA's KFI-AM 640 has become the first station in the nation to create and broadcast its own one hour video newscast, a "vodcast," for its online audience at kfi640.com. Integrated with AP video and breaking news service, "Handel on the News" vodcast is hosted by Bill Handel and produced exclusively for KFI's website. It features Bill Handel and his morning crew delivering daily commentary with compelling AP Video and copy to make the newscast visually appealing. Each day's edition can be viewed online beginning at 11 am PST.
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| Ratings & Research |
News/Talk top format for organics consumer
Scarborough Research issued an analysis which finds 25% of adults who have used organic food within the past month listen to the News/Talk/Information radio format. Organics users are 25% more likely than the average adult to listen to this radio format. Scarborough analyzed the TV program genres with the highest concentration of organic food consumers. 24% of adults who typically watch News Magazines have used organic food within the past month. Organics consumers are 45% more likely than the national average to watch News Magazines, 32% more likely to watch documentaries, and 24% more likely to watch National/Network News.
| See the charts here |
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| Monday Morning Makers & Shakers |
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Transactions: 8/27/07-8/31/07
Radio trading took advantage of its final August opportunity to break through the 10M-per-week barrier, but it wasn't able to get all the way to 20M, although it came close. Three small television transactions just about evened out the weekly action between the two media. A big bulge in the number of stations traded was the result of a dispute settlement between two noncommercial religious broadcasters, including numerous CPs, to which we did not attempt to attach an estimated value.
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Total
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Total Deals
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13
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AMs
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6
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FMs
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40
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TVs
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3
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| Value |
35.367M
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| Complete Charts |
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Radio Transactions of the Week
Armada sets sail for Kansas
| More... |
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TV Transactions of the Week
Multicultural breaks into television
| More... |
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| Transactions |
1.1M WSAL-AM/WLHM-FM Logansport IN from Logansport Radio Corporation (Jack Jenkins) to Mid-America Radio Group of Logansport-Peru Inc. (David C. Keister). 55K escrow, balance in cash at closing. Daisychain superduopoly with WARU-AM/WMYK-FM Peru IN, WARU-FM Roann IN, WHZR-FM Royal Center IN & WIOU-AM/WZWZ-FM Kokomo IN. [File date 9/27/07.]
185K KZXQ-FM Reserve NM from New Star Broadcasting LLC (Karen Ann Barbee) to Cochise Broadcasting LLC (Ted Tucker, Jana Tucker). 20K escrow, balance in cash at closing. [File date 9/27/07.]
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__FIRST__ __SECOND__,
here is another transaction brokered by Kalil & Co., Inc.
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| Stock Talk |
Stocks end week with gains
Stock traders were optimistic on Friday as some good news hit Wall Street. For example, McDonald's sales were higher than expected and, in the tech sector, Oracle made a bid for BEA Systems. Tech stocks were up strongly and the blue chips also benefited. The Dow Industrials rose 78 points, or 0.6%, to 14,093.
Radio stocks had a mixed day. The Radio Index was off 1.013, or 0.8%, to 123.882. That was largely due to drops by two stocks. Citadel dropped 3.6%. Radio One Class A fell 3.2% and Class D 3.7%.
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| Radio Stocks |
Here's how stocks fared on Friday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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45.08
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-0.90
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Google
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GOOG
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637.39
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+15.39
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Beasley
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BBGI
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7.79
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-0.05
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Hearst-Argyle
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HTV
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25.04
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-0.26
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| CBS CI. B |
CBS |
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29.89
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-0.23
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Journal Comm.
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JRN
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9.83
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+0.03
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| CBS CI. A |
CBSa |
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29.85
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-0.26
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Lincoln Natl.
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LNC
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68.86
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+0.40
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| Citadel |
CDL |
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4.56 |
-0.17 |
Radio One, Cl. A
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ROIA
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3.63
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-0.12
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Clear Channel
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CCU
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37.78
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+0.15
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Radio One, Cl. D
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ROIAK
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3.65
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-0.14
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Cox Radio
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CXR
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13.01
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-0.07
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Regent
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RGCI
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2.61
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+0.03
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Cumulus
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CMLS
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10.44
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+0.01
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Saga Commun.
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SGA
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7.69
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-0.02
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Debut Bcg.
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DBTB
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0.80
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unch
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Salem Comm.
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SALM
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8.09
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-0.06
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Disney
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DIS
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35.47
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+0.46
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Sirius Sat. Radio
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SIRI
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3.54
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-0.03
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Emmis
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EMMS
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5.58
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+0.03
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Spanish Bcg.
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SBSA
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2.70
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+0.07
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Entercom
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ETM
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19.67
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-0.12
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SWMX
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SMWX
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0.04
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-0.01
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Entravision
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EVC
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9.99
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unch
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Westwood One
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WON
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2.63
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unch
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Fisher
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FSCI
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49.40
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-0.17
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XM Sat. Radio
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XMSR
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15.12
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+0.01
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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
Allowing limited ads
HD Radio Alliance opens up formats has revised its two-year ad-free policy...
Media Markets & Money
Shedding light on GAP
GAP that just bought CC stations in the west, not the same the GAP...
Washington Business Report
Set to examine implications
FEC will be looking at implications of Supreme ruling...
Ratings & Research
Nielsen launches
DemoWatch, new feature of its web-based commercial tracking service KeepingTrac...
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Radio Media Moves
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Live and local
New owner Monticello Media today launches a new morning show on News/Talk WCHV-AM Charlottesville, VA with veteran broadcaster Joe Thomas as host. The new show will be live and local, focusing on issues and events of importance to the Charlottesville and Albemarle County area.
 Jack is back
Not the format but Jack Evans will join GAP West Broadcasting in the capacity of VP, Programming. Evans formerly with Clear Channel as Sr. VP, Programming - Midwest/Rocky Mountain region will have the same markets in his control so filling the gap will be no problem.
Added to Patrick
Jill Davis has joined Patrick Communications as Chief Administrative officer. She was previously Marketing Coordinator for the Graduate School at Towson University.
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More News Headlines
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Hearst drops
Hearst-Argyle bid
Hearst Corporation has abandoned its bid to buy out other shareholders of Hearst-Argyle Television for around 600 million bucks. The tender offer to buy out the public shareholders for 23.50 per share expired on Friday and Hearst Corporation then announced that its buyout bid was over and that all tendered shares would be returned to the shareholders. It did not announce how many shares had actually been tendered. The move was a bit of a surprise, since Hearst Corporation had stated in an SEC filing just a few days earlier that it planned to extend the tender offer (10/9/07 RBR #197). The independent directors of Hearst-Argyle had declared the offer inadequate and the stock had traded above the tender price since the buyout bid was announced.
RBR observation: Whether or not the buyout takes place has little impact on the only two radio stations managed by Hearst-Argyle - WBAL-AM & WIYY-FM Baltimore. They are already owned by Hearst Corporation and managed under LMAs by Hearst-Argyle.
In Schutz Liu trusts
With Arthur Liu's Multicultural media empire set to acquire KHIZ-TV (Ch. 64, Ind.) Bartow, CA, which is in the Los Angeles market, the Multicultural Radio group will be one over the local limit in the LA based on the FCC's new use of Arbitron market definitions, rather than contours, for determining how many stations a single owner may have. To facilitate the TV acquisition, broker Bill Schutz has former Transition Radio to become the designated trustee to hold the license of KALI-AM and operate the station. Still to be determined is whether or not Schutz will seek to find a buyer for the station.
Spanish radio
visionary killed
The San Francisco Chronicle reports that Susan Ali Shepherd, age 53, was killed Friday night when a car struck her as she crossed a San Francisco street with her husband and some friends. Shepherd was the GM when KSOL-FM launched in 1996. Now owned by Univision Radio, KSOL is the top-rated Spanish station in the market.
Ford hires former
Lexus chief
Ford has tapped Jim Farley to a new post as head of world-wide marketing and communications. Farley, the former head of Toyota's Lexus division and U.S. sales arm, is the third high-ranking US exec to leave Toyota in recent months. Farley will work with Ford's head of global product development, Derrick Kuzak. Ford spends more than 2 billion a year on advertising but has struggled to generate buzz for new models.
On the NARUC agenda
Everybody wants to get into the act. The National Association of Regulatory Utility Commissioners is holding its 2007 convention 11/11-14/07, and it has a lot on its plate. Climate change, energy efficiency, universal service, disaster communications, competitive gas markets...and the DTV transition. We're not sure just what NARUC has in mind on the topic, but any hand that helps move the ball forward is a good thing.
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TVBR - TV News
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Fox Business Network launches today
Today is the day. News Corporation launches Fox Business Network to challenge CNBC, just as a few years ago the company dared to challenge CNN with Fox News Channel. Will FBN prove to be as successful as its sibling? Fox executives have been mum about exactly what the new service will look like and how its content will fit into the media landscape. The theme which has been heard is that it will be more accessible to "Main Street" than "Wall Street," implying that CNBC and, especially, Bloomberg TV are too focused on professional stock traders and the jargon they use. There's also suspicion, though, that Fox executives have tried to spread a little disinformation to throw CNBC off guard. Today, at last, we find out what Rupert Murdoch and his associates really have in mind.
TVBR observation: Somehow, we can't imagine Neil Cavuto talking abut how to cut grocery bills by coupon clipping or comparing the relative costs and environmental impacts of cloth vs. disposable diapers. However much FBN tries to make investing more accessible to ordinary people with IRAs and 401(k)s, the underlying issue is still how to understand what is going on in financial markets so you can build your nest egg. The battle between FBN and CNBC, particularly during the market day, is going to have to be about who has the hot trading tips and the most interesting guests with insights into what is going on with the overall economy and individual companies.
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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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Doldrums likely to continue
Wall Street analysts were not surprised by the 1% drop in radio revenues for August (10/11/07 RBR #199), nor are they encouraged by what they see in the advertising marketplace now. Bank of America, Jonathan Jacoby has lowered his September estimate to down 1% and sees that trend continuing into October and Q4. CL King, Jim Boyle says early September pacings appear to be weak.
RBR observation: So far 2007 has produced only three months where radio revenues were up from a year earlier. If Jacoby's predictions come true, the best we will see for the rest of the year is a flat December. That would take the tally for the year to eight down, three up and one flat. Ouch! Details of what was reported see RBR
10/12/07 RBR #200
Martin pushes LPFM
and DTV leasing
How can the FCC help more small businesses get into the communications field? FCC Chairman Kevin Martin cited leasing of DTV multicast channels and low power FM stations as opportunities for small businesses.
TVBR observation: What? Does the Chairman of the FCC not know that no business, large or small, can own an LPFM? They are strictly non-commercial and must be owned by a qualified non-profit organization.
10/12/07 TVBR #200
Another analyst likes XM/Sirius
From Citi Investment Research is guestimating a 60% chance that the proposed merger of XM Satellite Radio and Sirius Satellite Radio will get all necessary thumbs pointed up. Citi's Eileen Furukawa said that if it does go though, it could lead to up to 7B in savings for the combined entity.
RBR observation: Nobody doubts that the merger would be good for XM and Sirius. The question is whether it would be good for consumers. Since both companies say they are solvent and that the merger is not a requirement for their continued operation, there is absolutely no reason to abandon the Economics 101 principle of competition between the two, which was a key foundation of their original license grants. Despite all the efforts by various analysts to gauge the likelihood of approval based on the perception of which way the FCC is leaning, the other half of the equation is the DOJ. We have seen absolutely nothing to change our initial view that the approval likelihood is about 10%.
10/11/07 RBR #199
Westwood One
spells out CBS deal
The bottom line is that Westwood One is in a better financial position under the new agreement and CBS Radio stations have strong financial incentives to continue to clear WW1 spots. One analyst raised the question of what would happen if a CBS O&O station just quit clearing WW1 spots? That is, indeed, covered in the new agreement. Not only would WW1 save on its network comp payments, but would also receive liquidated damages if any CBS O&O station fails to clear 75% of the WW1 commercials it is supposed to broadcast for three consecutive months or four out of 12 months. Back to the basic agreement see RBR.
10/10/07 RBR #198
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