Welcome to RBR's Daily Epaper
Volume 21, Issue 232, Jim Carnegie, Editor & Publisher
Tuesday Morning November 30th, 2004

Radio News®

RBR exclusive
BTRN says give me Liberty
Just a little over a month after IDT Corp. indicated that it wanted to sell most of Liberty Broadcasting Network (10/22/04 RBR #207), the transaction is done and the buyer is Business TalkRadio Network (BTRN). IDT will also become a minority shareholder in BTRN, which will launch a new 24/7 network, the Lifestyle TalkRadio Network, featuring the programming being acquired. The list of talent includes such hosts as Bruce Williams, Heloise and Mort Crim. Not included are the more political hosts currently at Liberty, such as Linda Chaves and William Kristol. BTRN, along with the new network, will continue to be run by President & CEO Michael Metter and Exec. VP Jeff Weber. Although the programming being acquired from Liberty won't constitute a full 24/7 schedule, "we'll be supplementing that with some new shows," Weber told RBR. He said the company is already talking with additional talent for the Lifestyle TalkRadio Network. "This agreement is a win for both companies. IDT gains an interest in the Business TalkRadio Network as well as their new Lifestyle TalkRadio Network subsidiary and BTRN gains quality programming, featuring some of the top names in radio," said Jerrold Rapaport, CEO of Liberty Broadcasting. All affiliate contracts are included in the transaction and BTRN says affiliates of the Liberty shows will continue to receive the programs as in the past. Operations and studios will be moved to BTRN's broadcast facility and corporate offices in Greenwich, CT.

RBR observation: Makes sense in today's already over crowded pack - stack - racked programming. Now two small suppliers get a little bigger and consolidation this time for the better. Shall we see more of this in 2005? Get the January debut issue of Radio & Television Business Report - The Real Business Magazine - as all Major Advertising Bureau CEO's go head to head with their punches and counter punches why their medium is the best. You be the judge- it is your business.

Bear Stearns bullish on Stern, bearish on radio
What happens when Howard Stern departs earth-bound radio for the satellite high life? Bear Sterns analyst Victor Miller has been crunching some numbers - - and they're not good for the affiliates who are losing the "King of all Media."

RBR observation: Back on planet earth, those terrestrial stations that currently carry Stern take in about $110 million in ad revenues from his show, with $90 million of that at Infinity's stations. Read on - Ouch! That hurt. | More... |

Nielsen customers pushing for
Houston PPM participation

TV and cable have been nearly unanimous in willing participation in Arbitron's upcoming test of its Portable People Meters (PPM) in Houston - - more so than radio, where three major groups are holdouts (Infinity, Cox and Radio One). Nielsen Media Research is now getting pressure from broadcasters and ad buyers to participate in the Houston test as a full partner, just as it did in Philadelphia. Television Bureau of Advertising (TVB) President Chris Rohrs tells us that the Nielsen Customer Alliance, which he co-chairs, unanimously passed a resolution calling on Nielsen to participate in the Houston PPM test, but that the group has not received a response from the TV ratings company. "Arbitron is going to go forward, but it would be better if Nielsen were a part of it," Rohrs said. "We don't see any reason to participate right now," Nielsen spokesman Jack Loftus told RBR/TVBR. He said Nielsen is still in a test phase as far as the PPM technology is concerned and still has questions that need to be resolved before it commits to another joint test with Arbitron. That doesn't mean that Nielsen won't have any role in the Houston test. "We're involved. We continue to be involved," Nielsen CEO Susan Whiting told us recently. But she isn't ready to say when her company might be ready to make a decision about PPM. Loftus noted that some of the data that Nielsen will be using to evaluate PPM will come from the Houston test.

RBR observation: If you want to know who is really pushing PPM, look to the big advertisers and agencies. They want passive audience measurement as fast as possible. We've heard from them time and again that they want radio to move out of the diary dark ages - - and they're not much more pleased with Nielsen's set-top People Meters, which are a step forward from diaries, but still require people to take action to record their TV viewing.


PTC: Newspapers reject what FCC approved
In a split decision, the FCC recently ruled that episodes of Fox's "Keen Eddie" and WB's "Off Center" were not actionably indecent (11/24/04 RBR #230). Following that, Parents Television Council says it tried to include content from those episodes in a newspaper display advertisement. Five major newspapers declined to run the ad. The papers named by PTC include "USA Today," "Los Angeles Times," "Washington Post," "New York Times," and "Wall Street Journal." PTC named names, taking Michael Powell, Jonathan Adelstein and Kathleen Abernathy to task for failing to find the material indecent. "The policies of these newspapers are not just reasonable, they are commendable," said PTC's Brent Bozell. "Isn't it the ultimate irony that these newspapers, which are read overwhelmingly by adults, enforce standards to protect adults from sexually graphic content, yet Chairman Powell gives the green light to let children view the same content?" Bozell accused the FCC of failing to do its job, and said transcripts of the shows and copies of PTC's rejected ad were on their way to members of Congress.

RBR observation: We have no idea why certain broadcasters feel the need to make the defense of the First Amendment such a difficult proposition. How bankrupt are network creative departments that noxious filth such as this makes it to the air? However, the First Amendment is one of the key cornerstones of our democracy - - we at RBR use it every day, as do most of our readers - - and we must tread lightly when speech issues come into question. Yes, these five highly respected newspapers rejected PTC's ad, essentially rejecting content we wish programmers at Fox and WB had had the good judgment to reject before it ever saw the light of day. However, the newspapers were not compelled to reject PTC's ad. Nobody has the right to be Chief of the Taste Police, and that is the way it has to be.

Gutierrez gets top spot at Commerce
President George W. Bush has named his replacement for outgoing Secretary of Commerce Don Evans. As TVBR predicted, he went with a candidate who is a member of a minority segment of the population. But, and we admit, it was a longshot, the candidate is neither African-American, nor is the candidate - - to be more specific - - FCC Chairman Michael Powell (11/11/04 RBR #221). It's Cuba-born Carlos Gutierrez. We thought Powell might be a possibility when it Evans made his intention to exit public. But it was not to be. Of course, this does not preclude a move by Powell to some other position within the Bush administration. It does lend credence to Powell's stated intention to stick around at the FCC to tie up some unfinished business. Gutierrez, if nothing else, should understand the power of broadcasting as a marketing instrument. He has served as Chairman/CEO of cereal giant Kellogg Co. for that past four years, capping a nearly 30-year run with the company.

:60s vs. :30s: The pros and cons of "shortening the standard" - - Part 3
Is it fair play to ask radio advertisers to pay more money for less than what they've been getting in :60s? Will the buyers accept it? The marketplace will decide. Says Natalie Swed Stone, US Director, National Radio Investment, OMD: "If they do not price at 50%, the transition will take longer - - advertisers will not support the change as readily." | More... |

Dec. 6th, Only 5 biz days left to sign up


Adbiz©

More from Ford's Rich Stoddart on "American Dreams" Mustang film
Ford sent consumers a heartfelt family message this holiday season with a special episode of NBC's hit drama "American Dreams." The show's 11/21 episode, which aired without commercial interruption by Ford, featured the homecoming of JJ Pryor -- a lead character in the show who has been away at war -- and concludes with a nearly five-minute short film titled, "Homecoming." The short film, from Ford's AOR J. Walter Thompson Detroit, captures the anticipation of a young serviceman's return home from war -- and the parallel experiences of his father who had undergone a similar series of events in Vietnam. It mirrors the storyline in "American Dreams" but brings the events into the modern day to communicate the continued importance of celebrating today's homecoming experiences for our servicemen and servicewomen. More from our interview with Rich Stoddart, Ford Division marketing communications manager, last week (11/24 RBR #230):

What were Ford dealers' reactions after seeing this clip before it aired?
How might they capitalize on this on a local level? | More... |

TNS/CMR: U.S. ad spend totals 102.4 billion
so far in 2004

Total ad expenditure for the first nine months of 2004 increased 10.3% to 102.4 billion compared to the same time period in 2003, according to data released by TNS Media Intelligence/CMR. Almost all of the media measured by TNS Media Intelligence/CMR experienced growth throughout the first nine months of the year, with Local Newspapers leading in total dollar spending at 17.7 billion, up 6.6% over the same time period in 2003.
| More... |

Ad firms turn to in-home research
The Associated Press/ABC News reports Eight O'Clock Coffee wanted its ads to hit people right where they live in their own homes, just waking up in the morning, craving that first cup of coffee. So the company started studying how people actually use its products, taping them in their homes and in the process using an increasingly popular form of research: commercial ethnography. | More... |


Media Markets & MoneyTM
SC Religious specialist adds a key market
Alex Snipe's Glory Communications Inc. is adding a sixth station and fifth South Carolina market in a cash/debt deal approaching 600K dollars. The market is Charleston and the seller is Jeremiah Ravenell. The station us WTUA-FM St. Stephen SC. Ravenell won't be going away. Glory, which is using Praise Communications Inc. on the paperwork for this deal, will grant Ravenell a 10% interest in the company. Employees of WTUA will no doubt welcome this deal, as structured. 290K will be paid in cash, with another 290K and change going toward several outstanding obligations. One of these is back payroll - - nearly 8.4K is cited on a list of liabilities appended to the contract. Most of the debt - - nearly 210K - - is tied to a loan with Eddie Wells. Snipe's group operates an AM-FM combo in the Columbia area, an FM not too far away in unrated Sumter, and another FM in Johnsonville, a small town about halfway between Florence and Myrtle Beach.


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Washington Beat
FCC diversity group headed for Florida
A special meeting of FCC Chairman Michael Powell's Advisory Committee on Diversity for Communications in the Digital Age is being held at Florida Memorial College in Miami 12/10/04. The session kicks off a 1:00 PM eastern. The committee, which is charged with exploring ways to encourage greater minority participation in all communications industries, will tackle three topics at the session. It will start with a best practices session called "Workplace Diversity: A Global Necessity and an Ongoing Commitment." Then the Transactional Transparency and Outreach Subcommittee will look at merger review and the Financial Issues Subcommittee will look at community reinvestment and foreign ownership. A morning session will also be held. It will focus on encouraging the use within the communications industry of small minority-owned businesses as suppliers of new technology.


Programming
Phoenix stations with no commercials or interruptions?
There's no profit in it, so Ted Tucker is probably looking to sell his two Phoenix metro stations. But in the meantime he's playing lots of Classic Rock, with no commercials - - not even a public radio pitch for donations. And it's getting attention from the local press.

RBR observation: A local broadcaster tells us the stunt has gotten Tucker a following because he's playing a lot of unpredictable Classic Rock that people are finding refreshing. Some of the other local broadcasters are not too happy. | More... |


Ratings & Research
Arbitron, ComScore Media Metrix introduce
new online ratings service

Replacing the defunct MeasureCast online ratings service Arbitron had retired in 2004, Arbitron and comScore Media Metrix, a division of comScore Networks, announced the debut of a new service designed to provide traditional broadcast ratings for the online radio industry. The new service, "comScore Arbitron Online Radio Ratings," will release data monthly and the first estimates from the service will be released next week. The AOL Radio Network; Yahoo!'s LAUNCHcast; and Microsoft's MSN Radio and Windowsmedia.com have signed on as charter subscribers for the new service. The comScore Arbitron Online Radio Ratings service is based on a subset of approximately 200,000 U.S. participants within the comScore global consumer panel. The service will provide customers with AQH and Cume audience estimates for 38 demos and 15 standard broadcast dayparts. Each month Arbitron will publish the average weekly audience for persons 12+, Monday through Sunday, 6AM-Midnight on its website www.arbitron.com.


Transactions
WAFY-FM Frederick MD (Middletown MD) from Frederick Broadcasting LLC to Nassau Broadcasting III LLC.

KBIL-FM CP Billings MT from Broadcasting for the Challenged Inc. to Educational Media Foundation.

KCPP-FM CP Casper WY from Broadcasting for the Challenged Inc. to Educational Media Foundation.

| More... |


Stock Talk
Wal-Mart sinks stocks
Giant retailer Wal-Mart lowered its sales projections and sent stock prices skidding. The Dow Industrials fell 46 points, or 0.4%, to end at 10,476.

Bad news for retailing is bad news for broadcasting, so radio stocks sank. The Radio Index was down 1.643, or 0.7%, to 226.374. Salem, which should be one of the least affected by retailing trends, fell 5.3%. Saga dropped 1.9%, Viacom and Journal Communications each fell 1.4% and Entravision was down 1.2%.


Radio Stocks

Here's how stocks fared on Monday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

37.60

-0.19

Jeff-Pilot

JP

50.17

-0.04

Beasley

BBGI

17.50

-0.10

Journal Comm.

JRN

17.50

-0.25

Citadel CDL
15.86 +0.08

Radio One, Cl. A

ROIA

14.09

-0.02

Clear Channel

CCU

34.48

-0.28

Radio One, Cl. D

ROIAK

14.05

-0.11

Cox Radio

CXR

16.17

-0.04

Regent

RGCI

5.71

+0.03

Cumulus

CMLS

15.81

unch

Saga Commun.

SGA

17.41

-0.33

Disney

DIS

27.06

-0.06

Salem Comm.

SALM

24.85

-1.39

Emmis

EMMS

18.72

-0.09

Sirius Sat. Radio

SIRI

6.69

+0.18

Entercom

ETM

36.59

+0.01

Spanish Bcg.

SBSA

10.95

-0.05

Entravision

EVC

8.15

-0.10

Univision

UVN

30.52

-0.05

Fisher

FSCI

47.01

-0.37

Viacom, Cl. A

VIA

35.75

-0.50

Gaylord

GET

35.27

-0.25

Viacom, Cl. B

VIAb

34.80

-0.49

Hearst-Argyle

HTV

26.00

+0.05

Westwood One

WON

22.77

-0.07

Interep

IREP

0.79

-0.08

XM Sat. Radio

XMSR

36.90

-0.71

International Bcg.

IBCS

0.01

unch

-

-

-

-

-



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On "Less is More"

It is my understanding that Clear Channel has agreed to reduce the number of commercial "minutes" in an hour from 12 to 10. To my knowledge, nothing about the number of units in a stop set has been mentioned. At the same time they are going back to the :30 second standard unit. Two observations: 1.) In this market (Tulsa, OK.) We have been monitoring the Clear Channel cluster. Less than 10% of the spots recorded in a random one week sample, (NOV. 04) across all stations were :30's. The preponderance of those spots were for "local direct" accounts. Local accounts from large 4A agencies, as well as regional and national accounts still remain at :60 seconds. 2.) If and when the industry decides to re-embrace the :30 second unit. How does 10-:30's in a 5 minute pod, equate to "LESS CLUTTER" than 6-:60's in a 6 minute pod?

Mark Cortner, AE,
Shamrock Communications
Tulsa, OK.


Arbitrends

Arbitron
Market Results
| Birmingham |
| Honolulu |
| Indianapolis |
| Milwaukee |
| Salt Lake City |


Upped & Tapped

New MIW spokesperson
Susquehanna's Nancy Vaeth-DuBroff takes over from Arbitron's Joan Gerberding as the public voice of the informal group Mentoring and Inspiring Women (MIW), comprised of leading female managers in radio.


Stations For Sale

Tennessee/Alabama AM
Great AM opportunity in excellent Tennessee/Alabama border market. Adjacent rated market coverage.
Cliff at Clifton Gardiner & Co (303)758-6900
[email protected]


More News Headlines

TVBR - TV News

Univision and Nielsen call off the legal beagles
First Univision sued to block Nielsen from implementing Local People Meters in Los Angeles (6/11/04 TVBR #114), but an LA County Superior Court judge refused to issue a temporary injunction and LPMs began use as scheduled. | More... |


International

Report: Agencies not sold on PPM in Canada
The Toronto Globe and Mail reports the Association of Canadian Advertisers says the PPM isn't ready for prime time, and is calling on BBM to keep the hard-wired system in place. "We're certainly not ready to switch..." says Ron Lund, President and CEO of the ACA. "PPMs at some point in time may be the way to move technologically, but as far as we're concerned, the jury's still out."
| More... |


October Digital
Solutions Magazine

Who Will Sit on the Throne?
The election -What is in it
for Broacasters?

One On One
with PHD's Patrick McNew -
The man that over sees spot
for Chrysler Group.

Engineered For Profit
'05 budgets and capital expenditures, our close up look at who's planning to buy what next year.

October Zinio Solutions Magazine
Read RBR in 2 simple steps:
1.Create a simple account with Zinio and download the Zinio Reader.
2. You can then download the October Issue of RBR




RBR Radar 2004
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Campaign 2004 broke all records
- - in a big way
One tally of total political ad spending on TV time is in - - and it's more than even the highest previous estimates that we're aware of. Read this for their reasoning.
RBR observation: Anyone who thinks broadcast licenses are free hasn't tried to acquire one lately. New licenses, by law, now go to auction and if you want to buy an existing license you'll have to pay a multiple of cash flow in the double digits. On top of that, there are annual regulatory fees and it seems every year folks on Capitol Hill - - both Democrat and Republican - - propose new taxes on broadcasters as a way to help fill budget gaps. But those facts are ignored by the folks who see stealing your airtime as an easy way to "level the playing field" between candidates. These attempts at legalized theft won't go away, so broadcasters have to be vigilant in fighting back by emphasizing the role radio and TV play in informing voters. 11/29/04 RBR #231

:60s vs. :30s: The pros and cons of
"shortening the standard" - - Part 2
A key element of "Less is More" initiative is to migrate advertisers to shorter spots. But to implement more :30s and less :60's across the board, there may be a catch. To make listeners happy by reducing clutter and keep stockholders happy by at least keeping revenues stable, something's got to give. And that is to charge more than 50% for the price of a :30 second spot. CCU suggested that the price for a :30 could be as high as 70%-75% of the cost of a :60. 11/29/04 RBR #231

RBR News Analysis
Where things stand on indecency
The tangled web that is broadcast indecency enforcement is even more tangled than ever before after the FCC and Viacom agreed to veer off from a total head-on collision in the game of regulatory chicken they were playing. Let's look at where things stand. 11/29/04 RBR #231

Mark your calendars:
The sweeps periods
If you've gotten your wall calendar for 2005, it's time to mark the all-important dates for the Nielsen ratings sweeps. Conveniently, Nielsen Media Research has issued a list of all of the sweeps periods (including some from earlier this year) through the end of 2005.
RBR observation: Now radio GMs, PDs, marketing people- - this is the time when TV pulls out all the stops. So our recommendation is to focus on cross-marketing and promotion with TV's rating seasons. Best get to know real quick when they are in their sweeps, just like your sweeps. Called getting the biggest ROI bang for your promotional TV budget dollar. It should be pretty simple to figure out. 11/29/04 RBR #231


Visit MediaHeadHunters.com
Senior Sales Executive
Sunshine, no snow here, plus the market leaders in Gainesville-Ocala at two of the leading radio stations in N. Central FL, WOGK-FM (K-Country) and WIND-FM (classic rocker). Two years sales experience a must. Please send resumes to [email protected] fax to R. Kassi 352-622-7822. No calls. EEO

GM & Equity
Tired of the rat race? New England radio group seeks self-starter to captain turnarounds. Community radio is still alive and well in this Central New England combo. Equity participation available Letter and Resume to: [email protected]

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