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Volume 23, Issue 23, Jim Carnegie, Editor & Publisher
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Thursday Morning February 2nd, 2006
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Radio News ®
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 Cox stops reporting record adds
Cox Radio has become the second major radio group to tell its stations to stop reporting record adds to trade publications. Just over a week ago Cumulus Media told its PDs to stop reporting adds to the trades (1/24/06 RBR #16). Cox Radio CEO Bob Neil says his company's move wasn't prompted by the Cumulus decision, but came about in the company's annual review of its payola and plugola policies. "It just eliminates one more possibility of something going on that we wouldn't want," he told RBR. Neil noted that very few Cox stations were still reporting record adds to the trades before the new policy was adopted this week. While such information may have been valuable to record companies and station programmers years ago, Neil said it no longer seemed very important now that there is electronic tracking of airplay. Cox hadn't planned any formal public notice of the policy change, but word traveled quickly after HQ sent out a memo to stations on Tuesday.
RBR observation: Bob Neil is correct on this one issue even if that nasty word ‘Payola’ was not mentioned. It was just a few months back New York Attorney General Eliot Spitzer was hunting and had shaken down two record companies for 25 million bucks without having to prove in court that any New York law was violated but it did put a few radio people out of work and an embarrassment to their companies. Yep years and years ago it was a good tool but today with electronic tracking of airplay there is no need. RBR waits to see if others follow both Cumulus and Cox.
CBS warns Wall Street of coming charge
CBS Corporation won't issue its first quarterly financial report until later this month, but it has warned Wall Street that it will be taking a charge in its Q4 earnings to reduce the carrying value of goodwill and intangible assets. The reassessment of current "fair values" will reflect industry trends and the current marketplace, CBS said in an SEC filing. "Substantially all of the goodwill and intangible assets were established as a result of the 2000 former Viacom/CBS merger," it noted.
RBR observation: By now The Street should be used to such adjustments by broadcasters, which, because of accounting rules, don't really indicate the market value of broadcasting station assets. CBS is smart though to give analysts a heads up, so no one is shocked to see the one-time charge when Q4 results are released.
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SOTU puts media issues in perspective
Many media outlets strove to put the George W. Bush's State of the Union address into perspective for their various audiences. But the speech itself - - as usual - - put Washington media issues into perspective, too. As hotly debated as some of them are, they are all too low on the public horizon to appear on the SOTU radar screen at all. Not even the hot button issue of indecency came up. This despite the fact that we remember Rep. Fred Upton (R-MI) saying on the House floor that his bill to drastically increase indecency fines was the most important piece of business before the legislature. We found that statement to be utterly hyperbolic at the time, and its failure to get even a single sentence in SOTU would tend to suggest that it occupies a considerably lower rung on the national priority list than "most important." Other issues, like media ownership consolidation and cross-ownership, the DTV transition, multicast must carry, the broadcast flag, local franchise fees and video content issues, are all hotly contested by various stake-holding media industries and interested watchdog groups - - and none are worthy of a place in SOTU.
RBR observation: Just to put it all in perspective, as important as all these issues are, and as far-reaching the implications of any action may be, the simple fact remains - - the average American doesn't know about these issues, much less understand them. The battles will continue, and the rhetoric will no doubt be highly charged. But no politician is going to win or lose in his state or district based on their part in the multiple ongoing media wars, and as such, these battles will continue to occupy an obscure corner of the national agenda.
 13 get RAB/BMI FastStart
to Radio scholarships
The RAB and BMI have announced this year's recipients of the FastStart to Radio Sales Success Minority Scholarships. It's the fifth year that BMI has sponsored the minority scholarship program to provide full tuition to the RAB academy in Dallas or its off-campus extension program. This year's 13 recipients come from a broad range of companies and markets across the country:
| View the List |
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| Wall Street Media Business Report TM |
 Q4 Conference Calls
Tough Q4 for Tribune; Q1 looking better
Broadcasting/Entertainment revenues dropped 11% to 343 million in Q4 for Tribune Company, while operating expenses went up. That dropped operating cash flow by 27% to 118 million. Tribune's single radio station didn't have much to do with any of that. Radio/entertainment revenues declined 28% to 23.7 million, largely due to lower TV syndication revenues and fewer home games for the Chicago Cubs. In fact, operating cash flow for radio/entertainment rose 59% to 5.6 million. But TV revenues dropped 10% to 318.9 million and operating cash flow decline 29% to 112.2 million, blamed on ad softness in the telecom, auto and food categories, partially offset by gains in financial and education. In the company's quarterly conference call, Tribune officials said Q1 pacings are better, but declined to give a number or even to say if the number is a positive one. They would only say that January was better, February is soft due to competition from the Olympics, and March then is better. Publishing revenues were down 2% to 1.07 billion, with ad revenues also down 2%. All in all, Tribune's Q4 revenues fell 5% to 1.41 billion. With a number of special charges, including a nine cents per share charge for eliminating 900 jobs, Tribune's earnings per share were 43 cents for the quarter, down from 67 cents a year earlier.
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Ad Business Report TM
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 Westwood One signs with Verance
Westwood One has signed an agreement with Verance, a provider of patented audio watermarking technology solutions for broadcast monitoring and airplay verification, for the use of their Confirmedia technology to further streamline Westwood One's compliance systems. Westwood adds to Premiere Radio Networks and Dial-Global (among others) on the Verance roster of clients. "Superserving our clients is priority one at Westwood One," said Peter Kosann, Co-COO of Westwood One. "This agreement further solidifies Westwood One's position on the cutting edge of advertiser compliance systems, providing our clients with the most highly-quantifiable data available to monitor their media campaigns." "This is a necessary and important step forward," said Natalie Swed Stone, US Director, National Radio Investment for OMD. "Verance has proven that they can accurately monitor network radio clearances in a timely manner. Westwood's announcement demonstrates that they are committed to managing the systems associated with our schedules to guarantee clients maximum ROI."
Kentucky Derby gets sponsor in Yum! Brands
The Kentucky Derby, for the first time, will have a sponsor via a five-year deal with Yum! Brands, which owns KFC, Taco Bell, Pizza Hut, Long John Silver's and A&W restaurants. Yum!, based in Louisville, becomes the first named sponsor of the Derby. The race will heretofore be referred to as the "Kentucky Derby, presented by Yum! Brands." The Yum! logo will appear under the twin spires for the Derby on 5/6, and will also be shown on a sign above the starting gate, on the jackets of the pony riders who escort the horses during the post parade, on TV billboards and elsewhere around the track. Yum! will air six 30-second television ads on NBC's Derby broadcast and two 30-second commercials on ESPN and ESPN2 during their coverage.
Hotwire names Donat/Wald AOR
Discount travel site Hotwire.com announced that Los Angeles-based brand-building direct response agency Donat/Wald will serve as its AOR. Donat/Wald will support development and execution of measurable marketing campaigns that communicate Hotwire's unique, money-saving benefits to consumers. "We selected Donat/Wald based on their proven track record for ROI accountability and translating e-commerce strategy into compelling consumer messaging," said Cheryl Law, vice president of marketing, Hotwire.com. "The agency has a unique capability in developing creative yet measurable campaigns and we look forward to collaborating to optimize our marketing efforts and bolster Hotwire's visibility as a leading discount travel site."
 Super Bowl XL commercials
available on Comcast ON DEMAND
and NFL Network
Thanks to Comcast and NFL Network, fans of the "Super Bowl of Advertising" will have more options than ever to view the commercials they may have missed, or just want to see again, from Super Bowl XL. After the game's conclusion on Sunday, Comcast Digital Cable customers can watch NFL Network's Super Bowl XL Commercials, a special showing selected ads in an uninterrupted format initially seen during ABC's broadcast of Super Bowl XL. The special program will be available on Comcast's ON DEMAND service and on NFL Network.
NFL Network on Demand
* Monday, Feb. 6 (Midnight Sunday) through Sunday, Feb. 12
NFL Network (On Comcast Digital Cable)
* Monday, Feb. 6 - 12:00 PM ET; 6:00 PM ET; 9:00 PM ET and 12:00 midnight
* Tuesday, Feb. 7 - 1:00 PM ET; 5:00 PM ET
Fans also can log on to NFL.com, the NFL's Internet site, to view Super Bowl XL Commercials from Feb. 6 through 12.
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| Media Markets & Money TM |
You Otto get back in the biz
Radio veteran Otto Miller is back with a deal for pair of AMs in the Boston area. Formerly a principal with People's Network, he is now president of The Principal Broadcasting Network. With backing from Mercury Capital Partners (with its own roster of broadcast vets, including Charlie Banta and Peter Handy) and brokerage from Harold Bausemer of Sales Group, Miller is paying 4.5M for WESX-AM Salem MA and WJDA-AM Quincy MA. The sellers are brother and sister Jay and Joan Asher, who will bring a lengthy 59-year family ownership run to an end on closing day.
Close encounter in Philadelphia
Kalil & Co. tells us that the keys to WEMG-AM in Philadelphia have been officially exchanged. The seller, Mega Communications, gets 8.25M, and buyer Davidson Media Group gets the station and a major market to add to its rapidly-growing portfolio.
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| Washington Media Business Report TM |
EEO audits continue
 The FCC has put its blindfold back on and thrown its dart at the broadcast license database, coming up with its latest list of stations which will be subjected to an Equal Employment Opportunity audit. Notification letters went into the mail 1/30/06. It's only a matter of time before the terrestrial-bound machinery of snailmail makes it to your doorstep, but if you just can't wait to find out if you are one of the lucky attention-getters...
| View the List Here |
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| Entertainment Media Business Report TM |
Fox News Radio to offer "Fox News Sunday"
Fox News Radio will offer "Fox News Sunday" for broadcast on the 5-minute network affiliated stations, beginning Sunday, February 6th. Anchored by Chris Wallace, "Fox News Sunday" features in depth reports on the major events in Washington, DC, as well as incisive interviews and analysis of the major issues from the regular panel, including Washington Managing Editor Brit Hume. The radio version of the program will be fed out to the anchored channel on Sundays in the 12:00 noon ET hour.
Sirius to launch Blue Collar Comedy channel
Sirius Satellite Radio and Parallel Entertainment announced the launch of Blue Collar Comedy, a new channel featuring the Blue Collar Comedy comedians Jeff Foxworthy, Larry the Cable Guy, Bill Engvall and others. The new channel is expected to begin airing in mid-to-late March on channel 103. This date coincides with production on the latest film starring the Blue Collar comedians, Blue Collar Comedy Tour: One for the Road. The film is based on a series of performances at The Warner Theater in Washington DC. In addition, Sirius and parallel will program a block of Blue Collar Comedy for Sirius Truckers, channel 147. As part of the relationship, Blue Collar Comedy on Sirius will be promoted on the front of CDs and DVDs, at Blue Collar comedian performances, as well as on the home pages of comedians' web sites and through mailings to their fans.
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| Ratings & Research |
 Eastlan picks up
six more markets
Small market radio ratings specialist Eastlan has moved into six more locations, including three in which it will be going head to head with ratings giant Arbitron. Respected multimedia operator Saga Communications is on the client list in one of them, and two more are locations where Arbitron has bailed out. The only market which has always been low-Arb, we think, is Astoria OR. Grand Forks ND, Champaign IL and Wheeling WV are the new head-to-head locales. Eastlan will be moving into the Steubenville OH, which used to be measured as part of the old Arbitron Steubenville OH-Weirton WV market, and the final location is where Saga figures in, Springfield IL, also formerly on the Arbitron list. Eastlan President/CEO Mike Gould commented, "Providing audience research to Astoria and Steubenville may not make headlines but it is a vital service. We think it is important to the industry to have a ratings alternative whose sole focus is on the needs of small-market broadcasters."
RBR observation: Competition is a good thing, right? We'd be interested in some reports from the field. For those of you operating in Grand Forks, Champaign and Wheeling, our Bounceback section is ready and waiting for your front-line foxhole reports.
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| Engineering Business Report TM |
Boston Acoustics makes Recepter HD more affordable
Boston Acoustics announced its Recepter Radio HD with digital HD Radio technology will be offered at the retail price of 299.00. BA says due to the increased awareness of HD Radio technology and the rapidly expanding universe of HD Radio stations, it has made the commitment to bring the benefits and enjoyment of HD Radio to a larger audience. The Recepter Radio HD is the first compact, high-performance, stereo, digital HD Radio table radio that also receives HD2 channels.
 iSeeRadio demos at RAB
iSeeRadio, a company of Continental Vista Broadcasting Group, is demonstrating its IP broadcasting and advertising solutions for radio stations at the RAB. It enables radio stations to broadcast live interactive video and audio through its customizable media player. Today and tomorrow at booth 402-A, iSeeRadio will display a live broadcast of the Bud Light Peep Show from Clear Channel's 94.5 FM The Buzz in Houston. iSeeRadio has recently expanded its relationships with Clear Channel and Budweiser. Budweiser sponsors The Buzz's morning programming, The Rod Ryan Show, which iSeeRadio broadcasts live each weekday from 6-10 a.m. iSeeRadio's advertising features include sponsorship banners; interactive ads in Flash, static or video formats; ads targeted by demographics or geography; e-commerce; and more.
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| NewsTalk |
New business in 2006! Not likely!
Why...and what to do about it.
By Walter Sabo
Every year at meetings like the RAB, there are seminars promising new techniques for winning new dollars to radio. Most stations try hard to bring in new accounts that have never bought radio but they usually fail.
The definition of insanity
That would be "doing the same thing over and over and expecting different results." Rather than asking how can we get new business, instead, let's ask, why should radio get new business?
| Read More... |
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| Transactions |
1M WCBW-AM St. Louis (Highland IL) from New Life Evangelistic Center Inc. (Lawrence W. Rice Jr.) to Birach Broadcasting Corp. (Sima Birach). 50K escrow, balance in cash at closing. Duopoly with WEW-AM. [File date 1/19/06.]
320K WVLZ-AM & WKCE-AM Knoxville TN (Knoxville, Maryville TN). 50% of Kirkland Wireless Broadcasters Inc. from Stephen M. Maggart (22.12% to 0%), Gary A. Neill (18.56% to 0%), Charles D. Brown (5.47% to 0%) & Stephen Miller (3.91% to 0%) to W. Douglas Mathews (23.5% to 75.42%). Value is RBR estimate. [File date 1/17/06.]
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| Stock Talk |
Oil tumbles, stocks rise
A drop in oil prices sent stock prices higher on Wednesday. The Dow Industrials gained 89 points, or 0.8%, to 10,954.
Radio stocks went along for the ride. The Radio Index rose 1.140, or 0.6%, to 180.389. Gaylord, which is hardly even in radio any more, rose 4.7%. Entravision was up 2.7% after announcing that it will begin broadcasting Eddie "Piolin" Sotelo's "Piolin por la Manana" in eight markets as part of a syndication agreement with Univision Radio.
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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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39.44
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-0.26
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Hearst-Argyle
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HTV
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23.94
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+0.06
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Beasley
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BBGI
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13.93
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+0.18
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Interep
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IREP
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0.37
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unch
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| CBS CI. B |
CBS |
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26.14
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+0.01
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Jeff-Pilot
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JP
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57.71
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-0.62
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| CBS CI. A |
CBSa |
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26.30
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+0.10
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Journal Comm.
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JRN
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12.16
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+0.20
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| Citadel |
CDL |
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12.42 |
+0.12 |
Radio One, Cl. A
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ROIA
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10.88
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unch
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Clear Channel
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CCU
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29.41
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+0.14
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Radio One, Cl. D
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ROIAK
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10.93
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-0.02
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Cox Radio
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CXR
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14.26
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+0.16
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Regent
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RGCI
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4.99
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+0.02
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Cumulus
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CMLS
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13.29
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+0.09
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Saga Commun.
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SGA
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10.14
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+0.07
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Disney
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DIS
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25.27
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-0.04
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Salem Comm.
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SALM
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15.38
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+0.04
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Emmis
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EMMS
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17.91
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+0.12
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Sirius Sat. Radio
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SIRI
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5.71
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+0.04
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| Entercom |
ETM
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30.35
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+0.16
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Spanish Bcg.
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SBSA
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5.70
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+0.04
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Entravision
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EVC
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7.29
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+0.19
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Univision
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UVN
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31.85
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+0.01
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Fisher
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FSCI
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42.63
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-0.30
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Westwood One
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WON
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14.94
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-0.05
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Gaylord
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GET
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45.02
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+2.02
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XM Sat. Radio
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XMSR
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25.95
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-0.23
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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 radionews@rbr.com
Thank you for Jean Pool's article concerning, simply, "clutter" (2/1/05 RBR #22). I was in radio for 27 years and saw this coming. Having a degree in Engineering now, I am currently back in TV where I started in '65 and transferred to radio programming, production, sales, management (anything BUT engineering) starting in 1969 and lasted for 27 years. Retirement for me is right around the corner and I am considering another career in radio (my heart throb). Jean's article gave me refreshing hope...thanks Jean.
Tony Blackmon
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Below the Fold
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Ad Business Report
Westwood One goes Verance
For broadcast monitoring and airplay verification...
Super Bowl XL spots available
On Comcast ON DEMAND & NFL Network giving more options...
Media Markets & Money
You Otto gets back in the biz
Deal for pair of AMs in Boston area...
Washington Media Business Report
EEO audits continue
FCC has put its blindfold back on...
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Radio Media Moves
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 Calling it quits
Beasley Broadcast Group announced that 30-year Augusta, GA market veteran (20 of them with Beasley) Coni Sansom retired as of the end of December. Starting as an announcer at WFNL-AM in 1976, Sansom ended her career as VP/Co-GM of Beasley's Augusta cluster. Kent Dunn will now have responsibility for the entire market for Beasley.
PPM promotion
Arbitron has promoted Joan FitzGerald to Vice President of Sales and New Product Development for the Portable People Meter New Product Development Group. If she can find a way to fit all that on a business card, she'll be leading sales and development efforts for the Arbitron side of Project Apollo.
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Stations for Sale
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NYC Prime Radio
Time for Lease
7 days a week available p/t-f/t Business, Foreign language, religious, Health, Infomercials accepted. 212-769-1925 tcntalk@aol.com
TV & Satellite time also available. Station Inquiries welcome
Northern NewEng
AM & FM stations. Separate
operations. Gross 450K+-.
Good upside. 850K.
salesgroup@beld.net or
lv msg @ 781-848-4201
S.E. AM/FM $700 K.
Outdoorsman's Delight
Fish, Hunt & Work
Ken Hawkins 334-514-2241
khawkins@elmore.rr.com
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More News Headlines
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XM NavTraffic
adding nine markets
XM Satellite Radio's NavTraffic service is adding nine markets in Q1, bringing the total number to 31. The service provides real-time traffic information about each market. Subscribers pay 3.99 a month on top of the XM subscription of 12.95. The new markets are Cincinnati, Cleveland, Denver-Boulder, Milwaukee-Racine, Portland, Providence-Warwick-Pawtucket, Sacramento, San Antonio and Wilmington, DE.
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RBR Radar 2005
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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What have we done???
By Jean Pool
Just why is it that we're hell bent on irritating the very people that we are trying to sell our products and services to? Clutter is the death of the media. Early Saturday morning call... a telemarketer that instructs me to wait for the next available operator. What are they thinking? Another favorite is my Sunday New York Times stuffed full of inserts that usually end up scattered on my hall floor. Then there is radio... driving along listening to Dr. Laura berating a call-in when you're interrupted by a commercial. Or one hour of Howard Stern's show of 18 commercials ...38 units ran. Geez, that barely gives Howard time to get in the F word. For a reality check read the entire article
02/01/06 RBR #22
 RBR First: Technology waits for No One; It moves 'Fig' fast forward
Bill 'Fig' Figenshu to accept the position of Chief Operating Office (COO) of Softwave Media Inc. 'Fig' told RBR "I quote you guys (RBR) always say that Time and Technology waits for no one and the front line field of battle is in technology and I want to be where the fight and action is.
RBR observation: Technology helping to sell unsold inventory or known as Remnant Radio is probably the best blessing radio can receive to help any local operator because once that unit is gone unsold it is gone. The key with the various young firms in this technology marketing unsold inventory business is the station operator is in total control by giving one a better opportunity to project budgets and maintain sales pacing. RBR recommends read, learn, educate yourself 'Technology waits for No One.'
02/01/06 RBR #22
Country music consumer profiled
Radio is still the king followed by music videos on TV and Word of Mouth, according to new findings from Tunecom and BIGresearch. Read it and see the findings of this valuable research.
02/01/06 RBR #22
Adam Carolla gets ire of 3AF, AAJC over Asian awards parody
How to Win Friends and Influence People is not CBS Radio KLSX-FM LA morning man Adam Carolla's strong area and has angered both the Asian American Justice Center (AAJC) and Asian American Advertising Federation (3AF) for mocking the Asian Excellence Awards show on his 1/24 show. Both groups are threatening boycotts. CBS Radio spokesperson Karen Mateo tells us the bit was meant to be humorous and they didn't mean to offend anybody with the comments. No word yet if there was an apology issued.
RBR observation: To Carolla - Open wide take out left foot and insert right. To CBS - now take that left foot and kick oneself on that vertical smile. Suggestion to all of your new Free talent read the book - How to Win Friends and Influence People.
01/31/06 RBR #21
CBS looks to buy, even as it sells
Although CBS Corporation is looking to sell Paramount Parks and perhaps a few of its smaller radio stations, CEO Les Moonves is also on the hunt for acquisitions. "We're looking into getting into new media. Obviously we're strong in content and if there's the right content acquisition that fits with what we do and helps our distribution properties, then we would look! at that. I wouldn't mind expanding a bit internationally if there's the right opportunity there."
01/30/06 RBR #20
The ABC Radio multiple
When it is officially sold and it will be sold - but Bear Stearns has already crunching the numbers seeing a multiple of 13.75% - a bit more than the 13 that Cumulus Partners paid for Susquehanna. Pprojecting the Reverse Morris Trust merger to carry a stated value of 2.75 billion. He believes the radio group has EBITDA of 175 million (RBR sources say five million more) and ABC Radio Networks 25 million (same as we've heard). Thus, the price is 13.75 times EBITDA of 200 million.
01/27/06 RBR #19
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Retail Sales Manger
This is where the new money is today and for the future. Not selling spots that can be erased. Clear Channel- Minneapolis, top 20 market, has this unique opening and seeking a unique person to teach with leadership. This is not a spreadsheet position but one of growth to build a retail team.
See Radio Careers
National Radio Services
Arbitron seeking that unique individual to join them as Account Manager to their National Radio Services team in NYC. Key duties: On the national side of the business serving as principal contact with-Networks-Syndicators-Rep Firms. Have the experience and skills in the network or rep business then join the Arbitron team where 'People make the difference.'
See Radio Careers
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