RBR's Daily Morning Epaper

Volume 21, Issue 243, Jim Carnegie, Editor & Publisher

Wednesday Morning December 15th, 2004

Radio News®

RBR Close Up
MediaCom's Jon Mandel comments on AAAAs letter to John Hogan; Hogan responds
It turns out that there's a bit more to our exclusive on the AAAAs letter to CC Radio CEO John Hogan regarding concerns on his Less is More initiative (12/3 RBR/TVBR #235). In the original letter, AAAA Local TV/Radio Committee Chairman Kevin Gallagher was concerned Less is More had little or no research backing up its effectiveness; that :30 advertisers can only get first pod positions is a mistake; and that there is no electronic invoicing accountability that reflects whether a higher priced first pod position actually ran as bought. Jon Mandel, Chairman/MediaCom US and Chief Global Buying Officer MediaCom Worldwide, tells RBR/TVBR he wanted to "do [quite a bit] more with that letter. I'm a member of the AAAAs Board of Directors [the first time a media person has ever been a member]. Literally this morning [yesterday] in this meeting we talked about instead of that letter coming from that committee, in truth that letter should have come from the board, because it affects more than just media. There are a lot of problems with what they're doing at Clear Channel. Let me give you just one-and we may ramp it up, we may not: In a car ad, where you've got to have, by law, 20 seconds of disclosure on certain details, you can't do it in :30. You need :60s for car ads. So right away, there are all kinds of issues, I believe...there might be even restraint of trade issues. But the lawyers wouldn't let me say that [in the letter].

RBR observation: When we said this was just the tip of the iceberg we were not just kidding. This problem has taken years to grow now it is the process of being addressed. When it doesn't get fixed, however, fast enough, the agency community will speak out, as with Mandel and the Gallagher letter. In his own words Mandel goes on the record with RBR /TVBR. We are quite sure this will be a major issue of talk at the upcoming 4A's conference in New Orleans next year. RBR & TVBR will be there so hold on to your hair as the Fat Lady is starting to sing very loud and when she belts out a tune it will be live not Memorex. Clear Channel's Hogan is aiming to rectify every concern the 4As mentioned. He explains the how and when tomorrow. We also touch upon the next hurdle for radio: fixing the cookie-cutter formats and introducing new ones altogether. Indie Rock, Underground Classic Rock for starters. Mandel on the other hand tells RBR & TVBR - "I think there are some severe problems with it. If Clear Channel weren't so greedy-it's typical of them--in trying to dress up something that's good for them as being good for us when in fact it isn't (it is, but marginally)." | More... |

Pardoning Private Ryan?
According to numerous reports, FCC Chairman Michael Powell is proposing that the use of the F-word in the airing of "Saving Private Ryan" by a majority of ABC TV affiliates be excused. It's expected that he will get his way when his four colleagues on the Commission cast their votes.

RBR observation: So you roll the dice and take your chances. Roll snake eyes now and pay up to 32.5K. If Congress ever gets around to it, the price will be jacked up to as much as 500K.To clarify, use the F-word under any circumstances planned or inadvertent and you will be fined. Or maybe not, if you have context. Is that clear? | More... |

Sinclair protests continue
Sinclair Broadcast Group received national attention twice in 2004 for allegedly using its station group to forward its own political motives. Sinclair's notoriety reached a fever pitch just before the election over its production of a news documentary concerning Democrat presidential candidate John Kerry's Vietnam service. Now, a group of watchdog organizations is keeping the pressure on. The group is led by liberal Media Matters for America, which objects in particular to the continuance of political opinion pieces broadcast across the 62-station group platform, "...in which Sinclair vice president Mark Hyman consistently espouses one-sided, conservative rhetoric without any counterpoint." Media Matters wants the group to provide equal time for contrasting points of view. To that end, it has established a website called SinclairAction.com, which urges concerned citizens to contact Sinclair, and its advertisers. A list of advertisers, complete with contact information, includes Kraft, Staples, Target, Geico, McDonalds and Sprint.

Sirius to provide real-time traffic data
Sirius Satellite Radio announced that it will provide real-time traffic data to vehicles over its nationwide satellite radio network. The company has signed an agreement with NAVTEQ, a provider of mapping and traffic data reporting services, to offer consumers reliable traffic information in their vehicles. The new service will provide consumers with regularly updated traffic information, such as accidents, scheduled road closings, traffic flow data or other traffic-related incidents to help them select the best available route. Traffic information will be integrated into new in-car navigation systems combining route guidance and mapping with traffic. Initially, the service will cover 30 markets and is expected to expand to over 50 markets.

Santa brings Salem an upgrade
It doesn't matter so much whether you're naughty or nice, but rather how you service your debt when the analysts at Moody's Investors Service are making their lists. They've been looking at Religious radio specialist Salem Communications and like what they see. | More... |

Just what is SPI?
RBR/TVBR have gotten several emails from readers wanting to know just what Arbitron was measuring by saying it achieved a 52.7 household sample performance indicator (SPI) in the first wave (of four) for recruiting participants for its Houston Portable People Meter test. We have a detailed explanation for you - - plus the Persons SPI figure, since TV ratings focus on household data, but radio on data by persons. Publisher note: PPM and LPM confused? Don't worry Radio & Television Business Report - The Real Media Business Magazine will unravel the mystery in our special February report.
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Adbiz©

Jim Boyle: RAEL may revive share shift from newspapers
The Radio Ad Effectiveness Lab (RAEL) and RAB's recent a study of the synergies between radio and TV as well as radio and newspaper (12/9 RBR #239) has drawn comment from Wachovia Securities analyst Jim Boyle: "Their findings indicate that including Radio in the ad mix with TV or newspapers garners stronger results than a TV-only and much stronger than newspaper-only ad campaign. His views: | More... |

Jose Cuervo unveils responsible drinking ad
Jose Cuervo announced the launch of a new US TV ad to promote responsible drinking. This new spot, created by the Arnell Group, retains the witty and playful tone synonymous with the brand while reminding consumers of the importance of having a designated driver. Entitled "Reverse," the new ad will begin airing nationally this month. The spot opens with a group of friends about to drive away from a party. But, this ad has a twist -- it actually runs backwards, as if the tape is being rewound. Focusing on the driver, the camera watches a group of friends as they back up to the house. They move back inside and back in time through the party to the critical point in the evening where the driver is offered his first drink. With the soundtrack also running in reverse, even his response, "Not tonight, I'm driving," plays backwards, which requires a sly use of subtitles to clarify what he's saying. It then reminds consumers to "Please drink responsibly," underscoring the message with the simple fact, "You can't rewind the night." The ads, which air on cable stations including VH1, E!, FX, USA, Spike, among others, share the same mischievous and liberating spirit as the well-known "Vive Cuervo" print effort. "Reverse," however, will be the only television execution to air during the holidays.

Zea Restaurants launches new 'apology' campaign
New Orleans-based Zea Restaurants is launching a new advertising campaign in response to complaints by chain restaurant heavyweights Ruby Tuesday and T.G.I. Friday's after the two threatened legal action. The campaign breaks this week. The two restaurant giants filed "cease and desist" letters in late November in response to an advertising campaign created by Sullivan-St.Clair Marketing/Public Relations for Zea. The campaign, which began in September, included radio, print and outdoor ads that position Zea as an alternative to the mega-chains. | More... |

Media Markets & MoneyTM

Close encounter in the Big Apple 'burbs
WXPK-FM Briarcliff Manor NY has now officially changed hands. With the sale, Nassau Broadcasting Partners brings to a conclusion its dealings with Big City Radio, and Pamal increases its presence in the area. It also signals the final pick-up of an FCC red flag. Glenn Serafin of Serafin Brothers brokerage told RBR that the sale of the Adult Alternative station, which operates in the Westchester market, was completed for 18.4M cash. Nassau had acquired a group of four suburban Big City stations, one of which it wanted to keep. This constitutes the third and final spin-off. The deal dates back to the spring of 2003 (4/18/03 RBR #77). The FCC flag came almost immediately. We felt it was thrown erroneously, since the market is embedded in New York by Arbitron, and most of the listening in Westchester goes to New York stations - - it results in, at best, a 1-AM, 3-FM cluster in a market with about 40 rated stations, counting both above and below the line. Yet, even though all flags were picked up on the date of the 6/2/03 FCC ownership rulemaking, this deal was flagged again (7/16/04 RBR #138).

The Mays boys sell some bonds
Clear Channel Communications has another quarter-billion bucks in its coffers for whatever business opportunities might arise. The company sold 250 million in 12-year bonds in an offering managed by Banc of America Securities. The new bonds carry a coupon of 5.5% and were priced to yield 5.587%.

Washington Beat

Diversity panel makes its reco
The Advisory Committee on Diversity for Communications in the Digital Age met in Miami last week (12/10/04) and offered a five-point plan to the committee's creator, FCC Chairman Michael Powell. It offered the following recommendations: (1) establishing a web site that will serve as a diversity resource directory; (2) modifying the Commission's current EEO rules to include separate 'menus' for recruitment and for career advancement; (3) urging the Commission to issue a declaratory ruling concerning foreign investment in broadcast properties that could enhance access to capital for minority entrepreneurs; (4) urging the Commission to issue a policy statement that divestiture remedies should be fashioned to promote practical opportunities for small businesses, women and minorities to own and operate media and telecommunications services; and (5) adopting a follow-up report on the best of Best Practices to promote diversity.

Ratings & Research

Arbitron adds another WV market
Elkins-Buckhannon-Weston WV will be added to the Arbitron roster next spring, coming in at #267 with a 12+ population of 102.6K. The market is just south of the Morgantown-Clarksburg-Fairmont market. The three towns are located in an east-to-west line. Elkins anchors the east end, just west of the Monongahela State Forest, with Weston on the west along I-79. McGraw-Elliott Media Group GSM Brian Elliott said, "Advertisers and agencies are demanding more significant data about this market and the spending habits of its residents...The increased diary distribution and the addition of local qualitative data will help us to match our stations up with local and national advertisers to provide better results."

GM Talkback

How has the Sarbanes-Oxley Act affected the accounting routine at your station(s)? By the end of the year, publicly held companies have to be in compliance (billing systems). When they file reports at end of Q4, they have to tell them exactly what they've got. No fudging.

TV:
Ed Piette, CBS's WCCO-TV Minneapolis
The Sarbanes-Oxley Act has impacted every area of our station. Without a doubt, the Accounting department is hit the hardest because they have to document and track almost every transaction. We have implemented new software to record every audit test that's done. But the new act also means that management throughout the station has to be focused on all business activities and verify the accuracy of documentation required for the audits. Even our IT department has to upgrade systems and institute even more rigid security measures. There is no question that the Sarbanes-Oxley Act has put the focus on accountability, and that was exactly the intention.

Transactions

KKUS-FM, KFRO-AM/KYKX-FM, KOOI-FM & KOYE-FM Tyler-Longvew TX (Tyler, Longview, Jacksonville, Frankston TX) from Waller Broadcasting Inc./Waller Media to Access.1 Communications Corporation.

WBIL-AM Tuskegee AL from All-Channel TV Services Inc. to H&H Communications LLC.

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Stock Talk

Stocks up, despite rate hike
The Fed raised rates, but that was exactly what was expected, so stock prices went up anyway. The good news from Alan Greenspan and associates was their view that inflation is in check and the economy is growing at a moderate pace, despite a recent increase in energy prices.

Radio stocks were also higher. The Radio Index gained 3.592, or 1.6%, to 225.375. Cumulus Media and Cox Radio were each up 3.9% as the day's leaders. Radio One (Class A) gained 3.3%.

Radio Stocks

**Here's how stocks fared on Tuesday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		38.87	+1.04	Jeff-Pilot	JP		52.30	+0.53
Beasley	BBGI		16.33	+0.13	Journal Comm.	JRN		17.68	+0.24
Citadel	CDL		15.54	+0.10	Radio One, Cl. A	ROIA		14.79	+0.47
Clear Channel	CCU		34.26	+0.50	Radio One, Cl. D	ROIAK		14.72	+0.41
Cox Radio	CXR		16.00	+0.60	Regent	RGCI		5.51	-0.07
Cumulus	CMLS		15.69	+0.59	Saga Commun.	SGA		17.18	+0.11
Disney	DIS		27.66	-0.07	Salem Comm.	SALM		25.20	+0.43
Emmis	EMMS		18.60	+0.53	Sirius Sat. Radio	SIRI		7.95	-0.09
Entercom	ETM		35.90	+0.63	Spanish Bcg.	SBSA		10.24	-0.01
Entravision	EVC		7.88	+0.08	Univision	UVN		28.55	+0.55
Fisher	FSCI		47.17	-0.08	Viacom, Cl. A	VIA		34.82	-0.21
Gaylord	GET		39.00	+0.60	Viacom, Cl. B	VIAb		34.00	-0.30
Hearst-Argyle	HTV		25.87	+0.10	Westwood One	WON		25.42	+0.19
Interep	IREP		0.73	-0.02	XM Sat. Radio	XMSR		39.17	+0.40
International Bcg.	IBCS		0.02	unch	-	-	-	-	-

__UNSUB__ to this email service.

Urgent Request

Now many that know Cathy and me personally, know we go the distance. This request for your assistance is from two people who have a vehicle of RBR & TVBR and are trying to help and bring a Merry Christmas to 40 lonely soldiers in a far away place and seeing the worst of war. Will you help us to help the medics & soldiers during this Holiday Season?

Ship (via US mail only) to:
SFC Melick.
325th Field Hospital
APO AE 09355

Thank you and Merry Christmas
Jim & Cathy Carnegie

Client Made
Changes Again?

Yep we all have been there and done that but now words have been put to the keyboard and sung to make us all in radio and television smile. Take a listen as the Client Made Changes - Once Again. From our friends at TM Century. | Listen Now |

Bounceback

Send Us Your Opinions We want to
hear from you.
This is your column, so send your comments to radionews@rbr.com

Arbitrends

Upped & Tapped

ESPN Radio names Larry Gifford PD
He'll join ESPN Radio as effective 1/24, filling a position vacated by Peter Gianesini, who was promoted to Senior Director of Programming in August. Gifford will oversee ESPN Radio's weekday programming. Prior to joining ESPN Radio, Gifford was PD at The Fan, WBNS-AM in Columbus, OH.

Stations For Sale

BBC asks for three-year interval before digital radio switchover
The UK Guardian reports the BBC has asked the government to wait another three years before deciding when to force listeners to convert to digital radio. Although digital radio is proving a success, the UK is not yet ready to switch over, the BBC said yesterday, as it submitted its vision for the sector to the government.
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TVBR - TV News

FCC waves through
TV agreement
The sale of KDLH-TV in the Duluth MN-Superior WI DMA from New Vision Group to Malara Broadcast Group has been waved through - - not waived through - - by the FCC over the objections of local competitors. The objection? A shared services agreement/JSA which Malara intends to enter into with Granite Broadcasting.

TVBR observation: This one got through, but will it be one of the last? | More... |

RBR Radar 2004

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

Grading the guru:
How'd Bob Coen do?
before we embrace his 2005 projections, shouldn't we take a look at his track record for 2004? As Coen noted, he did pretty well - - underestimating overall national ad spending a bit, while being a bit too bullish on local. The total increase in ad spending now projected for 2005 is now 7.4%, outpacing his forecast of 6.9% a year ago, but up only one tenths of a point from his June revision. His worst call, though, was radio. He was much closer to the mark on TV, with national spot, syndication and local all coming in even RBR observation: Print the charts attached for pacing.
12/14/03 RBR #242

Wal-Mart a win for radio;
Auto not so hot
Long hold-out Wal-Mart finally used radio advertising - - and it worked. But the important auto sector is still soft, which is depressing radio ad sales figures. After admitting that it had miscalculated and was losing market share, retail giant Wal-Mart accelerated ad spending and added radio to its usual TV-newspaper mix. That followed an experiment in radio advertising by Wal-Mart a few months ago, which had long been sought by the RAB. "It must have worked," stated Wachovia Securities analyst Jim Boyle. RBR observation: Agree and keep it up radio. RAB's hard work paid off. Now its local. 12/14/03 RBR #242

Did FCC set 'em up
to knock 'em down?
That's what Peggy Charren of Mediachannels.org and Action for Children's Television is saying. Her argument is that media ownership consolidation is the cause of indecency programming. So when FCC Chairman Michael Powell resorts to extreme punishments for purveyors of indecency, he's going after the very same people he empowered in the first place.
RBR observation: Charren says Powell is inflating the complaint total. At the same time, PTC's Brent Bozell says he's under-reporting complaints. If we can't even agree on the basic 1st grade arithmetic of indecency, how close do you think we are to an overall solution? 12/14/03 RBR #242

Radio Professionals
Salem Communications seeking experienced candidates in Radio Sales, Programming, and Management for pending acquisitions in Miami and Omaha, EOE.

See Radio Careers for more info.

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