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Radio News ®
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 Arbitron wins appeal at MRC; Houston re-accredited
Sources tell RBR that Arbitron won its appeal at the 1/22 Media Rating Council (MRC) meeting and PPM will remain accredited in Houston...for now. Arbitron declined comment and is not allowed to talk about the MRC process, however, Arbitron spokesperson Thom Mocarsky did confirm with RBR that PPM in Houston will continue being an active currency going forward. Arbitron presented to the MRC 1/22 the latest progress on improving PPM sample data, including specific plans for improving SPI [sample performance index], compliance rates and representation of the younger demo groups.
RBR observation: Remember, the number of 18-24 year-olds in Houston's PPM panels has been improving, Arbitron noted this month at its PPM conference call. Arbitron's figures showing the Houston panel being above the targeted in-tabs and Designated Delivery Index (DDI) in most key categories probably is what got the thumbs up from MRC. We also haven't seen some of the ratings declines in Houston that have been experienced in Philly. This is a good sign for Arbitron, especially if it can be replicated in other markets and if it keeps up its focus on recruiting more folks in the 18-24 demo. The MRC still officially lists PPM in Philly and NYC as "Radio Services Under Review."
PPM-based study says brand-building is long-term
Coleman Insights has found that programming features on music radio stations contribute more to long-term brand development than to instantaneous audience building. That's a key conclusion of research in Philadelphia, comparing PPM data to listener evaluations obtained via telephone. "What Happens When Features Come On" is the title of the research piece. Coleman Insights analyzed the performances of 15 programming features that ran on Philadelphia music stations, based on audience data from Arbitron's Portable People Meter (PPM) service. In addition, Coleman Insights compared these PPM-based results with listener evaluations of these same features collected in a 600-person, telephone-based perceptual study. "What our findings are telling us is that stations should view features as tools for building their brands and developing their personalities and not as something that will give them an immediately bump in PPM-based listening levels," said Coleman Insights president Jon Coleman. "When a feature truly succeeds, the audience growth happens over weeks and months and cannot usually be seen in a single airing," he added. Indeed, the study found that audiences were frequently lower for features than for the non-feature content immediately preceding them. Well-known features did better than those with less familiarity to the audience. The Coleman Insights study found that music features did generally better than talk features, but that was not universal. The full report is available for download at www.colemanInsights.com.
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 Clear Channel stock
still bouncing
The price moved back above 30 bucks in yesterday's trading, but then fell again. Wall Street is clearly nervous about whether or not the buyout by Thomas H. Lee Partners and Bain Capital is heading to the closing table. Traders went into panic mode after Clear Channel Radio CEO John Hogan ordered sharp cutbacks in spending by stations because Q1 revenues were pacing down, while budgeted expenses were up 4% (1/28/08 RBR #18). Despite assurances by Thomas H. Lee Partners dealmaker Scott Sperling that financing was lined up to fund the 26.7 billion bucks buyout by his firm and Bain Capital, the Street was spooked again when Bain Capital managing director Steve Pagliuca refused to discuss the Clear Channel buyout at another financial conference. The Wall Street Journal reported that the two private equity firms were now involved in day-to-day operations and helped draft the Hogan email, which is posted on RBR.com. That WSJ report reassured some traders, who took it as evidence that T.H. Lee and Bain are committed to getting the deal to closing. Even so, there is such nervousness on Wall Street that Clear Channel's stock still closed yesterday more than 10 bucks below the buyout price of 39.20.
One week seems to spawn another
The total media attention paid to the 2008 campaign during the week of 1/21/08-1/27/08 was exactly the same as during the prior week of 1/14/08-1/20/08, at 39%, according to the latest coverage survey from the Project for Excellence in Journalism. The #2 story remained the same as well. It was the US economy, and its coverage actually gained steam, rising from 12% to 19% of the newshole. With nearly 60% of the journalistic focus lavished on two stories, there wasn't a lot of room for much else. Coverage of the untimely passing of actor Heath Ledger was alone in 3rd place with only a 4% share. Conversely, when tiny percentages are enough to make it onto the overall top ten list -- and four stories made the list with a mere 1% share -- then idiosyncrasies are sure to appear on the individual media top ten lists. This week was no exception to that general rule, with 15 stories percolating below the overall top ten here or there. Cable perhaps set the standard for idiosyncratic coverage, again supplying almost wall-to-wall election material with a 61% share, hitting the #2 and #3 stories, then moving completely off the overall chart for its own seven remaining top ten stories.
| Top ten lists here |
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Beasley set to "Rock the Vote" in NC
 The six station Coastal Carolina radio cluster owned and operated by Beasley Broadcasting Group Inc. claims over 365K regular listeners. With a key election facing the nation, BBGI is planning a campaign to add as many as possible to the voter roles with a "Rock the Vote" campaign that will make use of both its on-air and website assets. The group will be providing information on registration and driving them to station websites for detailed information on the issues, the candidates and the process. It will also send staffers out in the community with literature and information. Formats at the Greenville-New Bern sixpack include Rock, Soft Rock, Classic Rock, 60s/70s, Urban and new Christian. Beasley notes that they are programmed with the proximity of numerous military bases in mind.
Meanwhile, another survey from Peanut Labs is claiming that the GenY crowd is dialed in to the elections this year. 91% say that yes, indeed, they will cast a vote. At the moment, they're breaking Democrat over Republican 44.9% to 27.8%, with 27.3% professing their independence. And they're breaking toward Barack Obama (D-IL). Among sell-described Democrats he edges Hillary Clinton (D-NY) 43.4% to 39.1%. Independents favor him over Clinton 34.8% to 23.8%. And among GenYs calling themselves Republicans, Obama is in second place with 17.6%, behind Mike Huckabee (R-AR), who leads all comers with a modest 23.9%. This group also put Clinton into a tie for third with Rudy Giuliani (R-NY) with 13.2%. Peanut defines GenY as the 18-29 year old demographic.
RBR observation: As we've noted in the past, politicians who ignore this demographic do so at their peril, if Peanut is right and these young adults are planning to show up en masse on Election Day. Broadcasters offer prime access to this group. Those politicians left standing would do well to find out which stations know how to find these people; and those stations who count GenY as their base should be making that fact known to the campaigns.
A legal eagle eye view of NYPD Blue case
The topic is broadcast indecency. Attorney Peter Gutmann of Womble Carlyle Sandridge & Rice, PLLC has taken a look at the FCC's 1.43M fine aimed at 52 ABC affiliates and O&Os. The stations can take heart that the FCC's ruling was exceptionally slow: the episode in question aired in 2003 when the top drawer indecency fine was at the now bargain basement price of 27.5K a pop. Gutmann points out, however, that in order to levy the fine, the FCC had to expand the definition of indecency to include views of the human buttocks. The justification for this was cited as "common sense." ABC plans to appeal, and in the meantime, the Supreme Court is considering whether or not to insert itself into the fleeting indecency case which the FCC lost at the appellate level.
| See the Hot List on rbr.com for more from WCSR's Gutmann |
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| Wall Street Business Report TM |
Arbitron exec bonuses tied to PPM
 Arbitron filed with the SEC its new bonus plan for top executives that ties payouts to three factors: the company's earnings per share (weighted 30%), revenue (weighted 10%), and commercialization of its Portable People Meter-based radio ratings service (weighted 60%). Under the previous bonus plan, PPM had been weighted 20% and the related Project Apollo 10%, so the board of directors has ratcheted up the importance of the PPM rollout, which hit a road bump that delayed the schedule nine months, with the next markets set to implement PPM as ratings "currency" in September. The new target Incentive Plan payment for CEO Stephen B. Morris, the Company's Chairman, President, and Chief Executive Officer is equal to 75% of his base salary, 654,011 this year. The target Incentive Plan payments for other executive officers range from 45-55% of base salary. Arbitron's other executive officers include Pierre Bouvard, President of Sales and Marketing; Owen Charlebois, President of Operations, Technology, and Research & Development; Sean Creamer, Executive Vice President of Finance and Planning and CFO; and five other Executive Vice Presidents.
Slowdown yes, recession no
In what would seem to be a contrarian view, given the number of economists forecasting a US recession this year, the International Monetary Fund (IMF) says no, the US economy will have slower growth in 2008, but won't fall into recession. That US slowdown will also be a drag on worldwide economic growth, the IMF said. US economic growth is now projected at 1.5% in 2008, down from 2.2% in 2007. The IMF's economists see worldwide growth of 4.1%, down from 4.9%. Not surprisingly, the IMF points to weakening of manufacturing and housing sector activity, employment and consumption as drags on the US economy. But the report called the recent three-quarters of a point rate cut by the Federal Reserve "appropriate and helpful." (That was before yesterday's additional half-point cut.) It will be a bit tricky, but the IMF is optimistic that the Fed and the folks who set monetary policy in other countries can keep the world economic train on track. "Monetary policy faces the difficult challenge of balancing the risks of higher inflation and slower economic activity, although a possible softening of oil prices could moderate inflation pressures," the IMF said.
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Ad Business Report TM
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Fox sells out Super Bowl inventory
Fox has sold the last Super Bowl ad, according to a NY Post story. The ad scored just above the 2.7 million average price-less than the 3 million Fox had been reportedly asking for. Anheuser-Busch and Pepsi are back in with the most spots. Others returning include FedEx, Coca-Cola, GoDaddy and GM.
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| Media Markets & Money TM |
Alpert gathers Momentum in Tennessee
Cliff Jennings is selling the stock Cherokees Communications Corporation, which owns the stock of LaFollette Broadcasters Inc., which owns WQLA-FM La Follette TN, an FM station in a town some distance north of Knoxville in the eastern portion of the state. The buyer is Norm Alpert and his Momentum Broadcasting LLC. According to broker Bryan McFarland of Henson Media, the price will be 850K, with 500K paid at closing and 350K spread out over five years.
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| Washington Business Report TM |
Martin applauds NAB, watchdog DTV studies
 Both the Consumers Union and the National Association of Broadcasters fired off studies measuring the state of consumer awareness concerning the upcoming DTV transition (see related story), which is barely over a year away. Noting that a successful transition will rely on contributions from all three sectors, including industry, government and the watchdog community, Martin said, "I welcome today's surveys by Consumers Union and the NAB, which provide important information about current levels of consumer awareness. As the NAB notes, the fact that more Americans are aware of the upcoming transition is a big step in the right direction. It is equally important, however as highlighted by Consumers Union, that consumers understand how to be prepared. I want to thank both of our partners, Consumers Union and NAB for conducting these surveys and sharing valuable research to better to guide our education and outreach efforts."
RBR observation: At this stage of the game, it is interesting to note that in general the principal participants in this massive endeavor are generally working and playing well together. The Consumer Report study noted that there was much work to be done to make consumers DTV literate, but at the same time it did not lash out strongly against any one of the stakeholders. Interestingly enough, most of what acrimony there is seems to be emanating from Congress - we'll get a good measure of just how much there is in a couple of weeks when both the House and Senate hold hearings on the topic. It is ironic that most of the public criticism of the process is coming from the one place that has the power to invest some cold hard cash into educating consumers, a power it has not bothered to exercise.
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| Entertainment Business Report TM |
Listeners bring "full" Stephanie Miller Show back to SF
The Stephanie Miller Show, distributed by Jones Radio Networks, announced the full show has returned to KKGN-AM San Francisco, airing 6:00am -9:00am, effective 1/29. The full show, originally debuting 9/06 on what was then known as KQKE-AM, was cut back by management to one hour on 1/21. Listeners complained about the move, and after a week KKGN-AM management made the decision to provide the show in its entirety. Said John Scott, KKGN-AM PD: "The netroots feedback we have received is unlike anything I have ever seen for any show, in any format, in my entire career. It was real, it was raw, and it was passionate. The bottom line: our audience loves her."
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| Internet Business Report TM |
 Tweens continue to
download music illegally
A new report by the NPD Group suggests that while a majority of kids surveyed are using legal means to download music, the issue of music piracy remains. According to "Kids & Digital Content," 70% of kids in the "tween" age bracket (9-14) are downloading digital music in an average month. While most are using pay-to-download stores on the Web to acquire music, NPD noted high levels of illegal peer-to-peer (P2P) file sharing, as well. Used by nearly half of tweens who download music, iTunes is the most popular digital music store (49%); however, the second most popular source for digital music among this age group is the Limewire file-sharing service, which was used by 26% of digital tweens to illegally share music for free. MySpace was the third most popular site for music sharing, and it was used by 16% of tweens. Two thirds of tweens who use the Internet reported that they are allowed to access the Web themselves, without adult supervision. When asked who helps them download music from the Web, 59% reported doing it all by themselves. NPD also reported that 76% of tweens who got free digital content were required to register an email address to download content. Nearly half (47%) reported they first had to download standalone software from the Web, in order to download content from online music stores and P2P file sharing services.
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| Ratings & Research |
Msnbc.com #1 source for online political news
In a recent study conducted by the Pew Research Center, more consumers stated that they got their political news from msnbc.com than any other online site. 26% of those surveyed who said they got their campaign news online named msnbc.com. Of the hundreds of sites users mentioned as sources for political news, msnbc.com was the only site to get over a 25% response. Msnbc.com is trailed by CNN.com (23%), Yahoo News (22%), Google News and Fox News (both 9%), AOL News (7%), and the New York Times website (6%). Other websites include Drudge Report (3%), BBC (2%), and USA Today and the Washington Post (1% each).
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| TVBR TV News |
Consumers Union monitors DTV awareness
Watchdog Consumers Union, citing results of a survey it conducted in mid-December 2007, notes that only 18% of all US adults figure to lose television service 2/17/09 with analog broadcast television enters the history books, and conversely, almost two thirds of US adults are aware that the change is on its way. However, buried under those top-line numbers are others which are cause for concern. CU's Chris Murray and Joel Kelsey met with reporters to share their results yesterday.
| Read More... |
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| Transactions |
3.2M WQMT-FM Chatsworth GA from North Georgia Radio Group LP (Paul G. Fink) to The Foundation for Public Broadcasting in Georia Inc. (Nancy G. Hall et al. 160K escrow, balance in cash at closing. Buyer in non-profit entity. [File date 1/3/08.]
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| Stock Talk |
Fed effect quickly fades
Stock prices spiked up after the Fed announced a half-point rate cut, but the euphoria quickly faded amid worries about the economy. The Dow Industrials ended the day with a drop of 37 points, or 0.3%, at 12,443.
Radio stocks were down even more. The RBR Radio Index fell 1.515, or 1.8%, to 80.794. Citadel plunged 13.2%, which is a drop of only 22 cents because the stock has already fallen so far. Westwood One was down 6.2%.
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| Radio Stocks |
Here's how stocks fared on Wednesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron*
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ARB
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39.50
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-0.63
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Google
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GOOG
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548.27
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-2.25
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Beasley*
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BBGI
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5.60
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+0.14
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Hearst-Argyle
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HTV
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21.30
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+0.07
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| CBS CI. B |
CBS |
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24.87
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-0.16
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Journal Comm.
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JRN
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8.21
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-0.01
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| CBS CI. A |
CBSa |
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25.10
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+0.10
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Lincoln Natl.
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LNC
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53.83
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-0.87
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| Citadel* |
CDL |
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1.45 |
-0.22 |
Radio One, Cl. A
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ROIA
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1.62
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+0.05
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Clear Channel*
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CCU
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29.04
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-0.13
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Radio One, Cl. D*
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ROIAK
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1.60
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-0.01
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Cox Radio*
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CXR
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11.35
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-0.16
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Regent*
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RGCI
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1.35
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-0.03
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Cumulus*
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CMLS
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5.93
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-0.07
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Saga Commun.*
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SGA
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5.90
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unch
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Debut Bcg.
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DBTB
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1.02
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unch
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Salem Comm.*
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SALM
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3.78
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-0.07
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Disney
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DIS
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29.40
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+0.60
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Sirius Sat. Radio
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SIRI
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3.06
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-0.04
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Emmis*
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EMMS
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2.70
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-0.05
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Spanish Bcg.*
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SBSA
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1.83
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+0.04
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Entercom*
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ETM
|
|
12.57
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+0.24
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Westwood One*
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WON
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1.66
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-0.11
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Entravision
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EVC
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6.79
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-0.09
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XM Sat. Radio
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XMSR
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11.91
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+0.51
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Fisher
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FSCI
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32.45
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-0.19
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-
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-
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-
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-
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-
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*Component of the RBR Radio Index
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Bounceback
|
 We want to
hear from you.
This is your column, so send your comments and
a photo to radionews@rbr.com
Weighing fulltime staffing
Hi Jim,
 First off let me tell you that your on-line Radio Business Report is excellent. I enjoy the mix of news and editorial comment.
Secondly, I really enjoyed your piece "All Night Long" (1/30/08 RBR #20). Our station, KLQP-FM, Madison, Minnesota (pop. 1,767) in a county of 8,000 residents, operates 24/7 as we have since the FCC allowed "unattended" operation. Before that we signed off in the evening and came back on in the morning. If the rules are changed...we will go back to doing things the "old way." That would certainly be an improvement in service to the public wouldn't it!!??
You recently had an article on "The Truth About Minot" which I have sent to my federal legislators.
I think there are too many folks working for the FCC that don't realize stations have no obligation to operate 24/7.
Keep up the great work!
Maynard Meyer
General Manager
KLQP-FM
Madison, Minnesota
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Below the Fold
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Ad Business Report
Fox sells out
Super Bowl inventory with scored just above the 2.7M average price...
Media Markets & Money
Alpert gathers Momentum
In Tennessee asCliff Jennings is selling the stock Cherokees Communications Corporation...
Internet Business Report
Tweens continue
To download music illegally, now this really surprise anyone...
Ratings & Research
Msnbc.com #1
Source for online political news...
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Stations for Sale
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 Market your Stations For Sale
in our daily epapers.
Contact
Jim Carnegie
jcarnegie@rbr.com
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Radio Media Moves
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Power for
Cadillac Jack
 Cadillac Jack, whose parents were presumably Oldsmobile and Buick Jack, has been named Program Director of WWPR-FM "Power 105.1" New York and will be based in the Big Apple, while continuing to oversee Clear Channel Boston as Operations Manager. Meanwhile, Helen Little segues to middays on clustermate WLTW-FM "106.7 Lite FM."
Crosstown move
in Omaha
Mark Todd has joined Journal Broadcast Group as Program Director of KQCH-FM "Channel 94.1" Omaha. He had previously been operations manager for NRG Group in Omaha.
New producer
The syndicated "Thom Hartmann Program" has named longtime radio pro Shawn Taylor as Executive Producer, effective Friday, January 25th. For the past decade, she was the Executive Producer of Lars Larson's radio show
BMP staffs up along
the Rio Grande
Jose Luis Munoz will be taking on the role of VP/Corporate Affairs for bilingual broadcaster Border Media Partners. And at the group's cluster of stations in the Rio Grande Valley, Jane Smith is upped to VP/Market Manager, and Maria Alvarez will move into Smith's former Director of Sales slot. Jeff Hinson is President/CEO of Border, which operates 30 stations in various Texas markets.
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More News Headlines
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Country Radio Sales Day set for CRS-39
Without sales people, Country radio couldn't exist. So, Friday, March 7th has been designated Radio Sales Day at CRS-39 in Nashville. Participants will be able to learn about important topics that affect the Country format, such as PPM and how to increase sales. Registrants will be able to attend a full day of CRS activities as well as Friday night's annual New Faces of Country Music Show. Friday's schedule will focus on radio sales topics. The four panels include: PPM: Our New World of Selling, Ten Great Sales Ideas, Overcoming Challenges, Radio in the Digital Age and I Wish I Said That - Words that get Results.
Harlan G. Oakes
dead at 97
Radio pioneer Harlan G. Oakes has died at the age of 97 in Lompoc, CA. He was an independent radio and television rep with his own Los Angeles firm, Harlan G. Oakes & Associates. Oakes began his radio career in the 1930s at a rep firm in Chicago, then helped launch new stations in Canada before moving to LA and opening his own rep firm in 1940. Oakes enlisted in the Army Air Corps after the Pearl Harbor attack, but reopened Harlan G. Oakes & Associates after World War II and maintained his shop for over 35 years representing radio stations throughout the US, Canada, Mexico and England. He retired from the broadcasting industry in 1979.
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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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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. 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.
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.
RBR note: If you missed that now infamous memo you can read it at the Hot List on RBR.com. FYI, the cuts are not just at the station level it seems they are company wide at almost every sector. Ouch! This posting has also been quoted in WSJ online.
01/30/08 RBR #20
Analyst ranks thinned again
No, we're not recycling a story 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. 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.
01/30/08 RBR #20
This Week in History
A quick scan on where radio has been. 4 years ago -- 2004, Issue 16, All eyes turn to New Hampshire. XM shares priced at $26.50. How Radio stocks fared: Beasley 17.22, Cox Radio 23.50, Regent 7.21, Westwood One 32.50.
01/30/08 RBR #20
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RBR Classifieds
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Hard finding that key person
to fill the important position at your organization? RBR Classifieds, Results with Service. Contact April McLynn at classifieds@rbr.com
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