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Welcome to RBR's Daily Epaper
Volume 22, Issue 247, Jim Carnegie, Editor & Publisher
Tuesday Morning December 20th, 2005

Radio News®

Two fined for Sirius/Stern
deal insider trading

Remember the SEC probe into possible insider stock trading associated with Howard Stern's deal with Sirius Satellite Radio (2/21/05 RBR #36)? It has finally resulted in action against two people - - the former president of Stern's accounting firm, Gary Herwitz, and a former Sirius Executive VP, Tracey Stanyer. Under the SEC settlements, neither admitted or denied the allegations of insider trading, but as the "former" notations indicate, both have already lost their jobs. Herwitz agreed to pay a 52K fine and Stanyer 35K. According to the SEC, Herwitz learned on or about September 21, 2004 from the accounting firm's CEO that Stern was in contract talks with Sirius and that the two discussed the negotiations a couple of days later. On September 30, 2004, Herwitz bought 25K Sirius shares, which he sold at a profit a few months later. The SEC said Stanyer learned of the negotiations with Stern from a senior Sirius executive in early September and then in early October that a contract had been signed. Stanyer bought 29,120 shares of Sirius stock on October 5th, a day before the deal was publicly announced, and sold them just a few days later.

MIM wants to Siriusly muzzle Stern
Morality in Media acknowledges that subscription audio/video services have been held by the FCC to be different from broadcasting in terms of decency regulation, but it wonders if the legal argument holds water leak-free. "In the early 1990s, however, two federal courts upheld a federal law that prohibited indecent communications for commercial purposes by means of telephone, and to my knowledge if you want telephone service you must still subscribe for it and pay a monthly fee," argues MIM President Robert Peters. Peters notes other court rulings stipulating that children can and should be protected from improper content, and that teachers, other caregivers and the state are entitled to legislative aid in discharging this duty. He questions further what the difference is between a subscriber or an advertiser paying the freight for questionable content. He also speculates on an economic model for the satellite companies. "There is an alternative to transforming the public airwaves and satellite radio in particular into an open sewer. When the shock jocks 'Opie & Anthony' first moved to XM Satellite Radio, subscribers had to pay an addition $1.99 per month to tune in. Apparently, there were few takers. Surely, however, if Sirius or XM were to load up a premium channel with trash talkers, there would be more than enough bottom feeders to make the channel profitable."

RBR observation: Peters expects that soon, satellite radio will be as ubiquitous as AM/FM radio in American automobiles. Yeah, but it won't matter unless the drivers decide to pay the monthly bill to turn them on.

Compromise DTV bill out of conference
The two Capitol Hill Commerce Committees decided to split the difference, more or less, on a number of incongruent issues regarding the DTV transition, resulting in the latest - - and perhaps final - - version of the "Digital Transition and Public Safety Act of 2005." The biggie: The analog turn-in date will not be the House's 12/31/08 nor the Senate's 4/7/09. Instead, it will occur just after Valentines Day, on 2/17/09, safely after legislators are back in town from the end-of-year break, but before the onset of NCAA March Madness, which was widely cited as the reasoning for the April date. Besides splitting the difference on the hard date, the two legislative branches also made a downconverter subsidy a 'tweener at 1.5B, less than the Senate's 3B proposal but more than the House's effective total of 830M. NAB was happy to see the consumer concern, and was also pleased with what wasn't in the bill, as new President/CEO David Rehr explained: "NAB is pleased that the House included many pro-consumer DTV provisions in the budget reconciliation bill. We are especially encouraged that the legislation thwarts the cable industry's desire to degrade delivery of HDTV pictures to consumers." The bill will use spectrum auctions to raise 7.363B for deficit reduction, then will apply auction funds to various DTV transition and public-safety uses (as well as one unrelated air travel measure.)
| DTV spending breakdown here |


Sharpton has to pass the plate back to FEC
Since Al Sharpton accepted federal matching funds in his ill-fated run for the Democratic presidential nomination in 2004, he was capped at donating 50K of his own cash to his campaign. He has now been ordered by the FEC to return the 100K matching fund it paid to him, because he went over the personal donation limit. According to an Associated Press report, he did it in a way pretty much only a minister can - - he passed the hat at campaign appearances, receiving 'love offerings' aimed at his ministry, but which he then funneled into his campaign. According the report, Sharpton invested 110K of his own money in his campaign, more than double the limit. He is said to have already made two of four 25K payments to the FEC.

PTC finds TW family plan to be a tier jerker
As predicted by TVBR/RBR (12/16/05 RBR #245), ever-alert broadcast decency watchdog Parents Television Council was not the least bit impressed by Time Warner's proposal for a family-friendly channel. And it wasn't so much about what was included - - it was about what was left out. PTC's L. Brent Bozell explained, "It is perfectly obvious Time Warner is deliberately offering a product designed to fail. Any family wanting family programming and which would subscribe to Time Warner's 'family tier' would not be allowed to watch:..." He then provided a list of popular and family-appropriate basic cable channels which failed to make the TW family tier, including Animal Planet, Biography Channel, CMT, CNBC, ESPN, ESPN2, ESPN Classics, Eternal Word Television Network, Fox News Channel, GAC, Game Show Network, Golf Network, Hallmark Channel, History Channel, Home Shopping Network, Inspiration Network, MSNBC, Outdoor Life, QVC, Speed Network, Sprout, The Learning Channel, Travel Channel, Trinity Broadcasting Network, Turner Classic Movies, TV Land and WORD Network. Bozell said, "The average family would find most programming on these networks to be appropriate for family viewing. But not Time Warner. According to Time Warner, no family should want to watch sports. According to Time Warner, no family should want to receive any news channel other than Time Warner's CNN. According to Time Warner, classic movies are not appropriate for families. And neither is religious programming...This is a very bad joke. I bet you couldn't find five employees of Time Warner who would subscribe to this foolishness for their own families."

RBR observation: Bozell has a point. The TW family tier as described last week is a bit on the sparse side, and it is hard to imagine that a great number of people would pay extra for it given its many omissions.

Key Congressman recovering
Joe Barton (D-TX), Chairman of the all-important House Energy and Commerce Committee, is out of the hospital and reporting no lasting damage from a heart attack suffered last Thursday. "Congressman Joe Barton was released from George Washington University Hospital today by his doctor, who reported that the congressman's heart suffered no damage. The congressman will return to Capitol this evening," said his press secretary Karen Modlin on Monday. "He is in strong spirits and looks forward to completing his work here before heading home to Texas to spend the holidays with his family. She added, "He also says that he looks forward not only to getting back to work in a hurry, but to getting on next year's campaign trail, too."


Adbiz©

ABCRN #1 and #2 in RADAR 87 ratings
Arbitron released the September '05 RADAR radio network audience reports (RADAR 87) covering 9/23/04-9/21/05 yesterday with the highest sample ever (95,042) and the most networks ever reported (52). ABC Radio Networks took first and second place for P12+ rankers with Daytime Direction and Prime Access, respectively. Jones MediaAmerica's TWC was third. For 25-54, ABC's Daytime Direction was #1, Dial-Global's Complete FM was #2 and Jones MediaAmerica's TWC was third. Dial-Global's Complete FM Network ranked #1 A18-49; ABC Daytime Direction second and Premiere Radio Networks' Emerald Plus was third in that demo. Network radio as a whole remained flat in terms of gross impressions. Only three nets had double-digit changes among Persons 12+ between RADAR 87 and RADAR 86. Plus, about half of the networks experienced audience changes less than 3%. American Urban Radio Networks added a new network - STRZ Entertainment, which debuted at rank 17. Westwood One also added a new network - FM Morning, which ranked at 48 in its first RADAR report. Premiere announced some network changes that will be reported in the next RADAR, due to be released in late March.
| Highlights & Chart |

Cablevision, JWT Detroit pact for Ford's first VOD effort
JWT Detroit and Cablevision Systems are collaborating on Ford Motor Company's first VOD branding, entertainment and direct marketing campaign. The effort, focused in the NYC metro area, premieres later this month, and features two branded entertainment sections on the cable service's Optimum Autos interactive auto channel that highlights Ford's Fusion and Explorer models. Optimum Autos is part of Cablevision's iO: Interactive Optimum digital cable service. The campaign, which will air exclusively on VOD, will utilize a significant portion of Optimum Autos' overall inventory. In addition to a video tour, data about safety, comfort and vehicle specs, customers can view related entertainment. For example: the virtual Ford Fusion channel will also feature a mini-site devoted to the unique Norwegian band Hurra Torpedo, where 30 minutes of the group's videos is available to consumers. Meanwhile, the Ford Explorer channel has content focusing on the "Ironman" competition, including an opportunity to enter a contest to win a trip to Kona, Hawaii where the annual event is held. Said Brian Bos, convergence director, JWT Detroit, "Our goal is to offer a breadth of content that is both informative, entertaining and will help Ford reach out to a broader audience for both of these vehicles. Working with Cablevision, a leader in the VOD space, gives us direct access to the important affluent New York marketplace through its engaging and robust interactive media platform. We believe Optimum Autos will provide a unique depth to the relationship between consumers and these Ford brands." Driving consumer traffic to the virtual channels will be a co-branded Ford/Optimum Autos banner on Cablevision's News 12 and Traffic and Weather channels that allow viewers to access the Ford VOD with a click of the remote control. The Ford channels will also be promoted in other strategic locations in the Cablevision landscape.


Media Markets & MoneyTM
Rolling AMs gather some Moss
Gary Moss and partner George Marti and their aptly named M&M Broadcasters are picking up a quartet of AM stations, three in Texas and one across the border in Oklahoma. One of them joins an existing M&M AM property south of Ft. Worth, helping to justify a 1.2M pricetag, which will go to seller First Broadcasting. The package includes KCLE-AM Cleburne TX, KEOR-AM Atoka OK, KJSA-AM Mineral Wells TX and KREL-AM Quanah TX. The Cleburne facility is the one in Dallas-Ft. Worth. It'll pair up with nearby KHFX-AM Burleson. M&M says it has a third station in the area - - KTFW-FM Glen Rose - - but it's sale to LKCM Radio Group is pending. M&M already has one other Texas AM, KTON-AM Belton, in the Killeen-Temple market. The seller has applied for a minor modification for the KCLE technical plant, which if granted will jack the overall price up by 500K to 1.7M.


Washington Beat
House influence hidden in downconverter language
The House Energy and Commerce Committee was not nearly as generous as the Senate Commerce, Science and Transportation Committee when it came to allocating money for citizens in danger of being left behind when they throw the analog switch to the off position on 2/17/09, (if current language prevails). The House allocated 830M, with a 170M administration budget bringing total cost of its downconverter subsidy to 1B. The Senate acted as if most of the 73M households currently estimated to fall into this category in fact stay their by DTV-Day, and allocated 3B - - that would cover 60M converters at 50 bucks a pop. The new 5B language providing for a split-the-difference 1.5B obviously favors the House position. It actually favors it even more than is at first obvious. It provides for a two-wave subsidy. The first wave calls for a 990M expenditure on downconverters. Only after the Department of Commerce certifies that there is need for more cash will the remaining 510M be released.


Programming
Jay Severin to return to WTKK-FM Boston
Greater Media announced Jay Severin will return to the 96.9FM Talk airwaves beginning on 1/3. His "Extreme Games" will now be broadcast live from 7:00 p.m. to 10:00 p.m. and be nationally syndicated with CBS Radio. "Our new deal allows Jay to remain an important part of 96.9 FM Talk/WTKK and to share his opinions and insights with an even larger, national audience," said Peter Smyth, President and CEO of Greater Media.


Ratings & Research
Univision goes mainstream for TV ratings
With Spanish media expanding rapidly across an ever widening number of markets, Univision is moving to compete head-to-head with the major English language networks. It has become the first Spanish TV network to subscribe to Nielsen's national TV ratings, the Nielsen Television Index (NTI). Univision will continue to also subscribe to Nielsen's national Hispanic Television Index (NHTI), measuring only Hispanic viewers, which had previously been its sole source of national ratings. Numbers for Univision will be published alongside ABC, CBS, Fox, NBC & etc. beginning with the ratings week that starts December 26th. (However, there will not be any season-to-date figures.) "This is a historic step for Univision, which firmly plants us among the mainstream broadcasters. Univision will finally be measured alongside its main competitors, the major English-language broadcast networks, and for the first time, advertisers and media buyers will be able to see the audience Univision delivers in the national charts. We're confident that this move will validate Univision's ability to successfully compete against any network in the country and provide us with a powerful tool to attract marketers that had previously been reluctant to advertise in Spanish," said Ray Rodriguez, President and Chief Operating Officer, Univision Communications. As part of the agreement, Univision will maintain its subscription to NHTI until September 2007, when the National People Meter (NPM) sample, upon which NTI is based, will become the sole sample for both English-language and Spanish-language media. The NPM sample, comprised of approximately 10,000 households, is subscribed to by broadcast networks, cable networks, syndicators, advertisers and agencies nationwide, Nielsen noted.


RBR Stats
Online shoppers spent 18.6 billion in
first six weeks of holiday season

The Goldman, Sachs, Nielsen//NetRatings and Harris Interactive's Holiday eSpending Report reveals today that online shoppers spent 18.6 billion, excluding travel, during the first six weeks (10/29 - 12/9) of the 2005 holiday season. This year's U.S. online spending resulted in a 16% increase from the same time period in 2004, with 19% of consumers having indicated that they have yet to start their holiday shopping. The eSpending Report is based on a weekly national survey of approximately 1,000 online adult consumers, capturing consumer spending, attitudes and motivations of more than 6,500 shoppers during the first six weeks of the 2005 holiday season. According to this week's eSpending Report, online shoppers have spent the most on apparel/clothing thus far in the 2005 holiday season, totaling 3.4 billion, which was the majority, or 17%, of total online revenue. The consumer electronics and computer hardware/peripherals categories placed second and third with revenue totals of 2.8 billion and 2.7 billion, respectively. Books and toys/video games rounded out the top five product categories, accounting for a respective 2.2 billion and 1.4 billion in online revenue.

During the sixth week of the 2005 holiday retail season, the Holiday eSpending Report asked more than 1,000 consumers to break down their 2005 holiday budget amongst various sales channels. The traditional brick-and-mortar stores captured the majority, or 69% of spending, compared to the 3.5% designated to catalogs. Online, the only channel to see growth, garnered 27.5% of the holiday budget, jumping 5.9 percentage points from last year. In addition, consumers had a late start to this year's online shopping. As of the fifth week of the 2005 holiday season, 30% of consumers had not started their online shopping, which was up from 23% during the same time period last year. By the sixth week, 19% of consumers still had not started their online holiday shopping, while 37% of online shoppers indicated they had finished. 44% of consumers stated that they've begun but had not finished holiday shopping.


Consumer Research
BIGresearch: December economic and
consumer insights executive briefing

BIGresearch's Consumer Intentions & Actions Survey monitors over 8,000 consumers each month providing unique insights & identifying opportunities in a fragmented and transitory marketplace. Continued from yesterday.
| Read More |

BIGResearch:
Consumers becoming more practical with purchases
The following charts are developed from BIGresearch's November Consumer Intentions and Actions (CIA) monthly syndicated survey of 8,900 respondents. The data demonstrates some of the issues consumers have been dealing with over the last six months. As you can see across the income spectrum, the focus on needs rather than wants is significant, even with the over $100K population with their actions reflected in being more practical and realistic in their purchases. We have been tracking trends over the last 4 years and we expect it will hold true in 2006? Today, this is reflected in the success of the value stores such as Wal-Mart and Kohl's who have focus on the less than $75K consumer. What does this mean? Consumer's spending will be on lower margin goods (needs), wants will be satisfied by substitutes - new shade of lipstick instead of the new Manolo Blahnik shoes. What does this mean for media? Consumers will focus on price and value for their spending including entertainment. They will focus on high value content which can be simply downloaded for a minimum charge and on demand. The consumer will not stop spending but will spend differently. The advertising business model will have to change and advertising itself will undergo a transformation.
| View the Charts |


Transactions
350K WBIL-AM, WQSI-FM Tuskegee AL (Tuskegee, Union Springs). 50% of H&H Communications LLC from Fred Randall Hughey (50% to 0%) to Tiger Communications Inc. (Tom Hayley, 50% to 100%). 1K escrow, 49K deposit, 300K note. Superduopoly with WQNR-FM Tallassee, WTGZ-FM Tuskegee, WAUD-AM Auburn AL. LMA until closing. [File date 11/25/05.]

0 KMDY-FM Keokuk IA from The Moody Bible Institute of Chicago (Robert Gunter, VP) to Cornerstone Community Radio Inc. (Richard Van Zandt, Arthur Gregg, William R. Reed II, Caroline Purin). Donation. [File date 11/25/05.]


Stock Talk
How low can they go?
Rather than the traditional year-end rally, Wall Street appears to be working on a year-end slump. Broadcast stocks were among the hard-hit sectors Monday as stock prices fell in the face of a big utility merger announcement and Google's 1B investment in AOL. The Dow Industrials fell 39 points, or 0.4%, to 10,837.

The Radio Index plunged to a year-to-date low, falling 3.412, or 1.8%, to 181.683. The worst drops were by Salem, 4.9%, and Cox Radio, 4.3%. It was also a tough day for the satellite radio stocks, with XM down 4.3% and Sirius 4%.


Radio Stocks

Here's how stocks fared on Monday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

38.22

-0.28

Jeff-Pilot

JP

55.70

-0.12

Beasley

BBGI

13.75

-0.33

Journal Comm.

JRN

13.85

-0.25

Citadel CDL
12.86 -0.20

Radio One, Cl. A

ROIA

10.91

+0.01

Clear Channel

CCU

32.68

-0.20

Radio One, Cl. D

ROIAK

10.92

+0.01

Cox Radio

CXR

14.12

-0.63

Regent

RGCI

4.50

-0.04

Cumulus

CMLS

12.44

-0.37

Saga Commun.

SGA

11.06

-0.12

Disney

DIS

24.54

-0.16

Salem Comm.

SALM

17.63

-0.91

Emmis

EMMS

19.62

-0.26

Sirius Sat. Radio

SIRI

6.67

-0.28

Entercom

ETM

29.09

-0.39

Spanish Bcg.

SBSA

5.09

-0.13

Entravision

EVC

7.09

-0.21

Univision

UVN

30.00

-0.25

Fisher

FSCI

44.41

-0.71

Viacom, Cl. A

VIA

33.77

-0.34

Gaylord

GET

43.57

-0.43

Viacom, Cl. B

VIAb

33.76

-0.27

Hearst-Argyle

HTV

23.80

+0.06

Westwood One

WON

16.35

-0.08

Interep

IREP

0.36

-0.06

XM Sat. Radio

XMSR

28.38

-1.26



Bounceback

Send Us Your OpinionsWe want to
hear from you.

This is your column, so send your comments and
a photo to radionews@rbr.com

Now that Howard has left "terrestrial" radio...can this trade publication get on with OUR business. I do not understand the time or space we give to the satellite companies (different business than ours) while we here on the ground have our own growth opportunities to manage and understand. There is no doubt that Howard is a great broadcaster, but not unlike others that have moved on to movies, cable TV, or whatever, let's move on as well! The satellite business is a commodity, not unlike selling magazine subscriptions. I should think our attention should be focused on our next strongest "terrestrial" competitor...the digital footprint offered by cell phones providers.

Scott Meier
RVP/GM Flint-Saginaw
Citadel Broadcasting Company
Saginaw, Michigan


Arbitrends

Arbitron
Market Results
| Cincinnati |
| Dayton |
| Phoenix |
| Pittsburgh |
| St. Louis |
| Tucson |


Radio Media Moves

Rehr's coattails
impact NAB

Laurie Knight is the new SVP of Government Relations for the NAB, following her old boss David Rehr over from the National Beer Wholesalers Association. She's also no stranger to the Hill, with a stint as Legislative Director for Rep. Jim Turner (D-TX) on her resume. She'll report to John Orlando, NAB EVP, Government Relations.


Stations for Sale

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


Below the Fold

Ad Biz
ABCRN #1 and #2
In RADAR 87 ratings...

Cablevision, JWT Detroit
Collaborating on Ford
first VOD branding...

Washington Beat
House influence hidden

In downconverter language Commerce Committee not generous...

Media Markets & Money
Rolling AMs gather some Moss
M&M Broadcasters are picking up a quartet of AM stations...






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.


Read RBR/TVBR in 2 simple steps:
1.Create a simple account with Zinio and download the Zinio Reader.
2. You can then download the
December Issue of RBR/TVBR


RBR Radar 2005
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Seven finalists for
radio ratings competition
With only four passive monitoring devices in testing or beyond, the surprise is that Clear Channel got 34 submissions in response to its RFP for a new radio ratings system. Now seven finalists will be put through their paces by a panel.
RBR observation: Clear Channel and its evaluation team have an aggressive timetable. The winner is supposed to be ready to begin deployment for real world radio ratings before the end of 2006. Arbitron has been happily pointing out, repeatedly to anyone who will listen, that PPM is ready to go now - - in fact, it's already being used outside the US - - while everyone else is playing catch-up. But that doesn't make it a slam-dunk for PPM. Advertisers and agencies have been telling radio for some time now that they want electronic audience measurement - - and they want it yesterday.
12/19/05 RBR #246

Publisher Perspective on
Clear Channel's magnificent 7
For as long as I can remember yesterday has been the middle name of many ad agency executives wanting everything yesterday and not just ratings research. Going back to the mid-'70's when I worked in research at MediaTrend through today and nothing has changed, yet. Here is a question for our ad agency colleagues, 'Are your agency research departments willing to pay to play at the same rates as broadcasters?' Or do you want the radio broadcaster to pick up the total bill? Folks, get real here - good to explore new research but only big money will make this work. The radio business has just about run out of time on this subject as well as HD as the status of radio is fading into 3rd class status position. Last, there is no doubt that Clear Channel has its own agenda as what is good for Clear Channel is good for Clear Channel.
12/19/05 RBR #246

Publisher Perspective on
Howard Stern farewell rally
draws thousands
We have had a full year of 'Howard' milking the free airwaves, all media giving him tremendous coverage from Fox News Channel, David Letterman, 60 Minutes, Today Show, O'Reilly Factor and all business channels, even the evening network news. I agree with all the comments this year that 'Howard' should have been pulled off the air instead of giving a free ride. But it did not happen, 'Howard' got the best of the total media and that is why he is dubbed 'King of all Media' as his mind works as a programmer and marketer. A lesson all in the media should take from 'Howard' when it comes to moving forward in marketing our medium and all the benefits. Or better yet, hire 'Howard's' company to market free radio as I am sure his agent would be glad to take the money. You may have seen various published trade lists of radios 'Most Influential' people but as far as I am concerned that is just plain suck up lip planting press. Pure reality is radio has never seen a marketer the caliber of Howard Stern and never will again. Name one radio CEO on any of the trade lists that command the presence that 'Howard' received this year and last week? Zero! Instead stations that were affiliates dropped him and also lost the cash the show produced and they cried about. Those stations could have doubled their rates this year and had a one time windfall profit. Almost 40 years in this business the only advice I can deliver - Get over it and move into 2006 by focusing on our radio business and not kick the tin can of 2005 of 'Howard' and satellite radio. Suck it up - Next!
12/19/05 RBR #246

The Media Audit/Ipsos
challenge PPM
Media Audit has teamed with the UK's Ipsos to propose their own passive measurement challenger to the Portable People Meter. 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. And there is more -
12/16/05 RBR #245


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