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Volume 22, Issue 245, Jim Carnegie, Editor & Publisher

Friday Morning December 16th, 2005

Radio News®

The Media Audit/Ipsos challenge PPM
Besides Arbitron, we know for sure of one more entry into the Clear Channel radio ratings derby, where entries were due yesterday. The Media Audit has teamed with the UK's Ipsos to propose their own passive measurement challenger to the Portable People Meter. As we reported yesterday (12/15/05 RBR #244), Ipsos is one of four companies which has a passive meter system in operation, although still in the testing phase at this point. Rather than having a proprietary hardware device for panelists to carry, Ipsos loads its software onto Smart Cell Phones to monitor exposure to audio media. It will measure each individual's exposure to radio, other electronic media, the Internet and out-of-home sources that are being measured. It also has the facility to track retail shopping patterns via a GPS system. What makes The Media Audit/Ipsos system different from the other three is that it uses two ways of measuring audio exposure - - encoding (like PPM), plus sound matching (like the other two) as a backup. The idea is to record with great accuracy listening to encoded stations, then try to fill in the blanks for stations that don't or won't encode. "The new system will go way beyond the traditional AQH/Cume audience definitions that in some ways have limited radio's ability to increase its share of ad dollars. The new system will help re-define radio and its value in the context of its role in a multi-media mix and how it targets specific consumer groups," said Bob Jordan, President of International Demographics Inc., publishers of The Media Audit. He plans a US field test of the Ipsos software in mid-2006.

RBR observation: How many times at how many PPM presentations by Arbitron have we heard someone ask, "Why don't you just put PPM in a cell phone?" It seems like a good idea, but Arbitron officials have always expressed concerns that there are many places where cell phones are not allowed, but they hope PPMs will be. As for Smart Cell Phones, there aren't very many out in use yet by US consumers, so The Media Audit would have to pass out the expensive devices to make its system work. "In time they will increase in penetration," Jordan told RBR. And to Jordan's statement RBR agrees that in time it may happen as it will take lots of time and lots of money to get an entire cell industry to get on board. Now it will be interesting to see what the honchos at Clear Channel say on their entries and where they will put their money. But one thing is for sure and you can bet money on this statement - 'Time waits for no one.'

Strike threatens Stern's exit hoopla
If, as appeared likely at deadline, transit workers go on strike overnight in New York, Howard Stern may have to exit terrestrial radio without a parade. Today is the final day for his syndicated radio show. Unless you've been on a desert island for the past several months, you know that he's heading to Sirius Satellite Radio to escape the censorship of the FCC - - not to mention getting a half billion bucks paycheck over five years. Stern had laid plans for a dramatic exit, with a parade led by strippers. Alas, if the transit workers go on strike and Manhattan is clogged with lots more private cars, Howard's parade permit will be cancelled.

Will it be safer to have Spitzer
in Governor's mansion?
Headline-grabbing New York State Attorney General Eliot Spitzer is reported to be comfortably in the lead in the race for Governor of the Empire State, according to an Associated Press report on a Quinnipiac University poll. Although no Republican has as yet declared their candidacy for the office, test races against possible opponents failed to produce a challenger who do could better that a 38% deficit posted by wealthy Rochester citizen Rochester B. Thomas Golisano, who if a vote were taken today would lose 60% to 22%. It's even bleaker for Democrats who would challenge Spitzer in a primary - - Long Island politician Thomas Suozzi would lose 69%-11% in such a race. Record companies and to a lesser extent, radio companies, may well prefer to distance Spitzer from the legal system, where he has been making and raking. That is, he's been making headlines and raking in cash settlements in an effort to attack alleged payola in the state.

Time Warner first out of the gate
with family tier proposal
Cable MSO Time Warner is the first cable company to provide a look at a tier of family-friendly programming. To get the 15-channel offering, subscribers will likely have to get a system's digital service and - - get ready for howls from the watchdog community - - they'll likely have to come up with 12.99 over and above the regular basic cable fee. TW said the average basic fee is about 12 dollars and a digital box generally runs around eight bucks a month. TW also released a channel lineup. Directly targeting kids are Boomerang, Discovery Kids, Disney Channel, Nick Games & Sports and Toon Disney. Also included in the package are C-SPAN 2, C-SPAN 3, CNN Headline News, The Science Channel, DIY Network, FIT-TV, Food Network, HGTV, La Familia and The Weather Channel. The service will be called the "Family Choice Tier," and includes channels that run programming that can be expected to be G-rated and which generally do not feature unpredictable live entertainment content.

RBR observation: We can almost hear the keyboards grinding - - probably everywhere from PTC to the Consumers Union. What??!! We are forced to subsidize the filth on the basic basic tier, and then pay even more than the filth costs to get our family package??!! The outrage!! Just watch.

Nets, advocacy groups cut kidvid deal
The four big broadcast networks, a number of cable companies and child advocacy groups have agreed to a compromise which, if acceptable to the FCC, could head off a court challenge to the rules proposed kicked off by a 5-0 8th Floor vote back in September 2004. Broadcasters would get relief from a ruling which counts promotional spots for other network shows as commercial time - - they are limited to 10.5 minutes per hour on weekends and 12 minutes per hour on weekdays. Also, although not conceding the FCC's authority to make any rules concerning related websites, they would avoid linking directly to any other sites which use a program for advertising and marketing purposes. Another benefit for broadcasters would be increased latitude to preempt children's programming to make room for sporting events, said to be a particular concern on the west coast.

When will the public get to see federal justice served?
Despite congressional support for opening federal courtrooms to broadcast cameras and microphones (11/11/05 RBR #222), the legislation faces an uncertain future and there are indications that the folks who run the federal court system - - the justices of the US Supreme Court - - remain opposed to the whole idea. Attorney Mark Allen, who also happens to be President & CEO of the Washington State Association of Broadcasters, says the justices' opposition is based on arguments which don't hold water.
| Read his commentary |

Adbiz©

What increases are being paid for the 2006 radio upfront?
Now that the 2006 network radio upfront is getting finished but is still hot, we thought we'd get a few opinions on how it's going - - up, down, flat, and why. What increases, if any, are being paid? (continued from yesterday).

Observes Natalie Swed Stone, US Director,
National Radio Investment, OMD:
"The upfront marketplace is moving more slowly than in previous years - - and softer than expected. Generally advertisers seek to take advantage of upfront pricing in a strong market to hedge against higher scatter prices expected later in the year. Since business has been on the soft side all year and consistently reported that way, advertisers may feel no urgency to place business now. They may prefer to take their chances and book later as their business warrants - - and budget allows. There is still considerable radio interest from clients, but one thing seems certain - - plans change - - much more fluidly than in previous times. Consequently, budgets planned aren't there - - and good surprises happen also - - but all closer to air - - not far in advance. The networks are correct in their assessment of an uncertain marketplace - - wise to play their cards cautiously - - rather than over-aggressively - - we all need to be nimble and flexible to accommodate the changes."

What's the sales side saying about the 2006 radio upfront?
RBR/TVBR asked the sales side of the desk about how negotiations are going for the 2006 network radio upfront as well. We've heard from buyers for a week now, so here's an active seller's take.

Says David Landau, Co-President/CEO, Dial Communications-Global Media:
"The network radio upfront is late, but our volume appears to be strong and active. Retail is a very big category and the companies that have female demographics and RADAR inventory are doing very well. It's a far more complicated answer than giving a snapshot of the minute."

Ford to renew ads in gay publications
Ford, which recently decided to pull its Jaguar and Land Rover advertising from gay and lesbian magazines under possible pressure from a conservative Christian group, reversed course after a conference this week with GLBT groups (12/14/05 RBR #243), Ford, according to a WSJ story, said it would place corporate ads in these publications, including the Advocate and Out national magazines. Ford, in a follow-up letter sent after the meetings, explained Jaguar and Land Rover had made independent business decisions about their media plans. "However, it is clear there is a misperception about our intent," wrote Joe Laymon, Ford's group VP/Corporate Human Resources. "As a result, we have decided to run corporate ads in these targeted publications that will include not only Jaguar/Land Rover, but all eight of Ford's vehicle brands."

HD Radio 2006

Beasley signs on to HD Radio Alliance
HD Digital Radio Alliance President Peter Ferrara tells RBR that Beasley Broadcasting is the latest to sign on to the recently-announced Alliance (12/7/05 RBR #238). Ferrara told RBR: "We're delighted that the Alliance continues to grow, and to have a company of Beasley's caliber join in is very significant." He also wanted to clarify an ongoing misquote in the trades: Ongoing HD-2 format selection is not based on the TOP 25 markets, but the FIRST 25 markets solidified in the Alliance. RBR also hears one of the first HD-2 formats being selected on the Clear Channel side (there are a few in the works right now), is Easy Listening. All formats will be produced in-house, and no outside consultants, programmers, etc. will be retained at CC.

Media Markets & MoneyTM

Greater Media has inside track on WCRB
It's not a totally done deal yet, but there was an announcement late yesterday that Greater Media is now in exclusive negotiations with Charles River Broadcasting Company to acquire WCRB-FM Boston. The parties say they hope to have a definitive agreement by February 1st, with closing in the first half of 2006. "This acquisition would give Greater Media's Boston cluster a significant signal upgrade, which will be critical as we expand our investment in HD and multicasting," said Greater media CEO Peter Smyth. "We are grateful for this opportunity," he added. WCRB is far and away the most valuable station of the Charles River group, which was put up for sale in October (10/28/05 RBR #212). There's no word yet on who might acquire the other four stations.

RBR observation: No word on price, but this could be close to 100 million. And it's a stick deal, since no buyer is expected to continue the Classical format, except as an HD-2 channel.

Key West seller keeps a hand in
William de la Pena's Sonia Broadcasting will collect 36M and keep 12M worth of equity in an armada of indy Hispanic TV stations stretching from Pompano Beach all the way down to Key West - - all part of the Miami DMA. Key West is home to the crown jewel of the mostly-low-powered fleet - - WGEN-TV. The buyer of the 75% de la Pena is not keeping is Alejandro Santo Domigo's Mapale LLC. There is an additional cross-ownership aspect to the deal - - Santo Domingo owns 75% of El Dorado Corporation, which owns WSUA Broadcasting Corporation, which in turn owns WSUA-AM in Miami. WGEN-TV, on Channel 8 and DT 12, which comes with eight LPTVs, is the key since it can demand cable carriage to any system in the sprawling DMA to which it can deliver a usable signal. The other stations are WGEN-LP (Ch. 55 with CP for Ch. 30) in Miami; WDLP-LP (Ch. 21 with CP for upgrade) in Pompano Beach-Miami; W38AA (Ch. 38), W63AL (Ch. 63) and W65AP (Ch. 65 with CP for Ch. 21), all in Marathon; W39AC (Ch. 39) in Key West; and W54BB (Ch. 54 with CP to move to Miami on Ch. 49) and W64AN (Ch. 64 with CP for upgrade), both in Rock Harbor.

Washington Beat

Bush promotes FOIA fulfillment
Although the George W. Bush administration has earned a reputation for secretiveness, part of which was an apparent reluctance to put much of a priority on responding to requests under the Freedom of Information Act, that is about to change, on orders of no less than the President himself. Bush has ordered that all federal agencies create service centers and appoint personnel who will specifically be responsible for handing FOIA requests. According to reports, there is no standard for FOIA from one agency to another. This order would direct a senior official at each to head up an FOIA department, creating a single reference point at each - - something lacking currently, often leaving would-be requesters at a loss where to even start their search. Mark Tapscott, the director for the Center for Media and Public Policy at the Heritage Foundation, noted that this would reverse a John Ashcroft policy instituted in the early days of the administration which tended to presume against providing info. "This is an encouraging step because the Bush White House recognizes that there is a problem with FOIA," he said. However, he said that it may not make much difference knowing where to go if it is still easy for agencies to cubbyhole certain documents away from public scrutiny regardless. Nonetheless, it was seen as a good move by at least one journalist organization. "This is a good first step, showing that the administration recognizes the public need for greater transparency," according to Reporters Committee Executive Director Lucy A. Dalglish. "The administration seems to recognize that in the post-September 11 period, not enough information has been getting out."

Programming

USRN taps Hollywood Hamilton's Weekend Top 30
United Stations Radio Networks says beginning with the first broadcast week of 2006, the network will begin distributing Hollywood Hamilton's Weekend Top 30. The three-hour weekend countdown show is produced in two different mixes - - Mainstream CHR and Rhythmic CHR formats. Each week the program brings affiliates and listeners the thirty biggest hits of the week. Hamilton anchors a fast-paced, interactive program that regularly features exclusive, in-studio and backstage interviews along with contests, requests and other audience interaction.

XM and ABC News launch
"Good Morning America Radio Show"
XM and ABC News will launch "The Good Morning America Radio Show" exclusively on XM starting 1/23. The launch was announced live yesterday on "Good Morning America" by the GMA anchors and their guest Hugh Panero, XM CEO. "The Good Morning America Radio Show" will feature Diane Sawyer, Charles Gibson and Robin Roberts along with radio personality Hilarie Barsky. The new, four-hour radio program will air Monday through Saturday and combine news and interviews from "Good Morning America" and original content that expands upon segments and topics discussed on the popular morning news. The show will air Monday through Saturday from 8 am to 12 pm ET on Take Five (XM Channel 155), a talk and lifestyle channel for women launched by XM earlier this year.

Ratings & Research

TWC, Starcom MediaVest sign
for Minute-by-Minute data
Nielsen Media Research has signed The Weather Channel as the first media company and Starcom MediaVest Group as the first media services company to a new offering of unprecedented detail in audience information based on Nielsen's National People Meter sample. Both companies will have full access to the entire database of national viewing information -- with commercial minutes identified. The Weather Channel will utilize this information as a value-added service for its clients. Within Starcom MediaVest Group this agreement includes access for Starcom, MediaVest, Starlink, GM Planworks and Tapestry.

Engineering

Goldman leaving First Broadcasting
Bert Goldman tells RBR he's leaving First Broadcasting to form his own engineering consultancy: Goldman Engineering Management. This, just after First named Goldman Senior Technical Advisor to the company (he was previously SVP/Engineering) and Chairman of its new Spectrum Innovation Laboratory to open in January. He had been VP/Engineering at ABC Radio previous to First. Goldman tells RBR: "This is exciting, it's fun. I've always wanted to try to do something on my own, so this will be my opportunity." Goldman Engineering Management is based in Dallas and Bert can be reached at: bert@bgoldman.net and 972-387-0111 (in a few days). Be sure to catch Bert's column in the February RBR/TVBR Solutions Magazine: "Evaluating your station to go HD" He discusses why some stations aren't perfectly suited for HD implementation; how some stations may not be able to count on digital coverage as with analog outside of their protected 60dBu contour; what the factors are-propagation, interference, etc, that affect analog vs. digital coverage. And ways to possibly improve your odds.

TVBR - TV News

New Orleans TV ratings still in doubt
When will the New Orleans market be back close enough to normal for audience ratings to resume? Nielsen met with stations, ad agencies and other clients this week in New Orleans for one in a series of continuing discussions of when and how to resume TV ratings in the market. The big question right now is the February sweeps. Nielsen spokeswoman Kerry Keilar tells RBR/TVBR the decision will be made in the next couple of weeks whether there will be February ratings in the New Orleans market, which encompasses 12 parishes in Louisiana and two counties in Mississippi. Some were damaged more than others, but Nielsen wants a representative sample throughout the market. At this point, only about 100 of the market's normal 400 meters are delivering data, which is not enough to produce good data. One possibility being considered is to do February sweeps ratings with diaries only. But even then, telephone recruiting is a problem, because many areas are still without phone service. Keilar says there's one thing that everyone agrees on: "We won't release anything that below statistical standards." The problems are much the same for Arbitron, which has already announced cancellation of its Winter radio ratings survey in New Orleans (12/9/05 RBR #240).

Transactions

1.3M WKEY-AM/WKCJ-FM, WKCJ-FM, WSLW-AM Covington VA-Lewisburg WV (Covington VA, Lewisburg WV, White Sulphur Springs WV) from Quorum Radio Partners of Virginia D.I.P. (Robert Barnett) to WVJT LLC (Todd P. Robinson). 100K escrow, balance in cash at closing. [File date 11/23/05.]

5K WQCR-AM Birmingham AL (Alabaster AL) from WGTT Inc. (David Robinson) to Maria G. Esparza. Cash, unspecified debt assumption. [File date 11/18/05.]

Stock Talk

Stocks slip
Good news on the inflation front failed to inspire Wall Street traders. The Dow Industrials were virtually unchanged, falling two points to 10,882.

Most radio stocks were lower. The Radio Index dropped 1.531, or 0.8%, to 186.381.

Cumulus fell 3.7% as Merrill Lynch cut its rating to "sell." Saga was down 2.7%.

Radio Stocks

**Here's how stocks fared on Thursday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		39.14	-0.91	Jeff-Pilot	JP		56.09	-0.11
Beasley	BBGI		14.07	+0.07	Journal Comm.	JRN		14.00	-0.03
Citadel	CDL		13.23	-0.27	Radio One, Cl. A	ROIA		10.79	+0.04
Clear Channel	CCU		32.80	-0.24	Radio One, Cl. D	ROIAK		10.82	+0.06
Cox Radio	CXR		14.85	-0.21	Regent	RGCI		4.63	-0.07
Cumulus	CMLS		12.62	-0.49	Saga Commun.	SGA		11.45	-0.32
Disney	DIS		24.74	-0.26	Salem Comm.	SALM		19.00	+0.04
Emmis	EMMS		20.03	-0.06	Sirius Sat. Radio	SIRI		7.17	+0.17
Entercom	ETM		29.82	+0.30	Spanish Bcg.	SBSA		5.29	+0.03
Entravision	EVC		7.28	+0.03	Univision	UVN		30.32	-0.56
Fisher	FSCI		45.20	-0.03	Viacom, Cl. A	VIA		33.99	-0.65
Gaylord	GET		44.37	-0.38	Viacom, Cl. B	VIAb		33.95	-0.63
Hearst-Argyle	HTV		23.75	-0.30	Westwood One	WON		16.42	-0.11
Interep	IREP		0.38	-0.02	XM Sat. Radio	XMSR		30.95	+0.95

Bounceback

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

I must admit the recent TV ads for Satellite Radio are very good. However, the message they are sending is "hey, we have all of these artists, movie and TV stars to be Dee Jays so you will listen...oh and by the way, you have to pay for the service and the radios! How does that really appeal to the local listener who listens to radio because it is local? People relate to people just like them, hence the variety of formats and jocks. Superstars are just that, and do not live in the real world. They cannot relate to the listener. Why do shows like American Idol and Extreme Makeover attract so many viewers? The American Dream, small town person makes it big. After they make it big....we move on to see the next little guy make it big. Even Jay Leno and David Lettermen spice up their shows using average Joe's in the audience and on stage. Superstars on syndicated radio still depend on the local listeners to call in to give their shows dimension.

I remain,
Terrestrially yours,
Kim Styles
Styles Media Group

Below the Fold

Ad Biz
What increases are being paid
The 2006 radio upfront. Observes Natalie Swed Stone...

HD RADIO 2006
Beasley signs on
To the recently-announced Alliance...

Media Markets & Money
Greater Media has inside track
On WCRB but It's not a totally done deal yet...

Washington Beat
Bush promotes FOIA fulfillment
Ordered all federal agencies to
create service centers...

Arbitrends

Radio Media Moves

New role
for Stagich
The Weather Channel announced Ray Stagich has been promoted to Director of Affiliate Sales for TWC Radio and Newspaper (TWCRN), effective 1/2. Stagich had been Manager of Operations for The Weather Channel, a position he held for three years. For the last four years he has also worked closely with the affiliate sales department. Previously, Stagich had been team leader for the Radio Broadcast Meteorology Morning Drive staff. He joined The Weather Channel in 1997 as a Radio Broadcast Meteorologist.

Two upped in Cleveland
CBS Radio has promoted Rona Greenwald to General Sales Manager of WQAL-FM and Joann Riordan to National Sales Manager of WQAL-FM and WDOK-FM Cleveland.

A new Connoisseur
Robert Angotta has joined Connoisseur Media as corporate controller. Angotta is new to radio, but does have air experience - - as controller of Southern Air in Norwalk, CT.

WW1 ups Trautmann
Westwood One announced effective immediately Conrad Trautmann assumes the position of SVP/Engineering and Technology. In this new role, Trautmann will continue to oversee all day-to-day engineering and operations responsibilities as well as add oversight of all information technology.

Stations for Sale

KWAM 990AM Memphis
Heritage full-time station with great coverage. Station and transmitter site for sale by owner.
Mark Jorgenson
Concord Media Group, Inc.
(828) 859-6982
goradiotv@alltel.net

More News Headlines

WWNO-FM New Orleans returns
After 89 days of in exile in Atlanta, New Orleans National Public Radio (NPR) affiliate WWNO-FM returns home to its University of New Orleans studios 12/19, announced GM Chuck Miller. Miller said that WWNO's information and entertainment programming such as Fresh Air, Marketplace, American Routes, the Metropolitan Opera and others will return to the air once the station completes a fiscal audit now that operations have returned home. He credited the generosity of Georgia Public Broadcasting, technical assistance from NPR, financial support from the corporate for Public Broadcasting and the dedication of key employees for getting WWNO back on the air after Katrina made the UNO studios inaccessible and inoperable. Miller also cited the efforts of WWNO CE Robert Carroll and operations director Ron Curtis who were able to gain access to the transmitter site on the West Bank and secure the equipment before the flood waters had receded.

December RBR/TVBR Digital Magazine

In this issue, we ask for 2006 Wish Lists--everyone from programmers to researchers to radio and media agency CEOs give their take. In AdBiz, we spoke to Sarah Fay, ISOBAR US President about the future of digital marketing. In Streaming, we compared and contrasted two differing measurement methodologies with two of the top rep firms in the space. We also look at the latest in Traffic systems; interviewed Fox News's John Gibson; and learned about WOR-AM NYC's revitalization project. Last but not least, RBR/TVBR looked at the Susquehanna sale to Cumulus and heard from ABC Radio Networks' Dr. Tom Evans about 2006 predictions for radio research.

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RBR Radar 2005

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

Mel is gone, so is Infinity
Karmazin's imprint is fast fading away at Viacom as it prepares to split into New Viacom and CBS Corporation the end of this month. The company name most associated with Karmazin, Infinity, is history. The radio group at the new CBS Corp. is being re-branded as CBS Radio and it's also emphasizing a new slogan: "Broadcast ... HD ... Streaming ... On-Demand." RBR observation: It was Karmazin who built Infinity from an owner of three stations to a major radio group which he took public on Wall Street, took private, then took public again before leveraging it through a series of mergers into Westinghouse, CBS and finally Viacom. But while the name may have been near and dear to him, it didn't mean much to the general public as a brand. CBS does, so it makes sense for Moonves to emphasize the CBS brand across the TV network, local TV stations, local radio stations, the outdoor division and related operations - - CBS Digital Media Group and CBS Consumer Products. Maybe Mel would like to buy the name back and launch the Infinity Channel on Sirius.
12/14/05 RBR #244

Bidding begins for VNU
Nielsen parent VNU confirms that it's gotten multiple buyout inquiries, which its board is considering. It's not saying anything about the bidders, or whether they're being allowed to look at the company's non-public financial details. Indeed, analysts failed to get any hint of any more detail out of VNU CEO Rob van den Bergh. A report in the Financial Times said the VNU board was seeking at least 32 euros per share for the company. TVBR observation: Despite the collapse of the IMS merger, which was vehemently opposed by VNU's largest shareholders, we were surprised to hear van den Bergh mention that VNU is still going ahead to develop "strategic opportunities" with IMS. Does that add fuel to our previous report that IMS may be a bidder for VNU?
12/14/05 TVBR #244

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