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Volume 22, Issue 248, Jim Carnegie, Editor & Publisher

Wednesday Morning December 21st, 2005

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Radio News®

WW1 to sell & distribute Stern replacement shows
Westwood One has signed with CBS Radio to become the exclusive national ad sales rep of the two new morning drivers David Lee Roth and Adam Carolla. In addition, WW1 (which is managed by CBS Radio) will also exclusively distribute the two programs to all non-CBS Radio stations nationwide. Replacing Howard Stern next month on several CBS O&Os, David Lee Roth will broadcast from flagship WXRK-FM (soon WFNY-FM) New York beginning 1/3. Additional markets to broadcast Roth include KLLI-FM Dallas, WYSP-FM Philadelphia, WBCN-FM Boston, WRKZ-FM Pittsburgh, WNCX-FM Cleveland and WPBZ-FM West Palm Beach. The Adam Carolla Show will broadcast from flagship station KLSX-FM Los Angeles also beginning 1/3. Carolla will also be heard on KIFR-FM San Francisco, KSCF-FM San Diego, KZON-FM Phoenix, KUFO-FM Portland and KXTE-FM Las Vegas. As we mentioned yesterday, Westwood One will also distribute and handle ad sales for the Jay Severin show to all non-CBS Radio stations nationwide, beginning 1/3. Stations debuting the program upon its launch include WTKK-FM Boston and CBS Radio's KRLD-AM Dallas; WPHT-AM Philadelphia; WJFK-FM Washington DC; and KMOX-AM St. Louis. All of the stations named for both shows are CBS O&Os, but look for WW1 to quickly start signing contracts to put them on stations owned by other broadcasters.

SBS Los Angeles hit with EEO fine
A quartet of FMs in Los Angeles owned by Spanish Broadcasting System - - two of which are in an LMA/pending sale with Styles Media Group - - have been hit with a 20K FCC fine for EEO violations. The Commission cited 54 recent full-time job openings, saying that for 25 (46%) there was no recruitment effort at all, and for another 22 (41%), the recruitment effort was inadequate. The fine comes with reporting conditions. The stations were nevertheless all granted license renewals. The stations cited are SBS's KXOL-FM and KLAX-FM, both licensed to Los Angeles, and KDAY-FM Redondo Beach (Los Angeles) and KDAI-FM Ontario (Riverside-San Bernardino), which are still owned by SBS but headed to and operated by Styles.

RBR observation: It's interesting that an outfit which should naturally attract a workforce containing a high percentage of minorities of the Hispanic variety is still subject to strict enforcement of the EEO rules. A word to the wise. Also, although Styles is said to have been operating the stations via LMA since 9/15/04, SBS is the parent of all four cited license companies, and is legally responsible for all failures to follow FCC rules and regs - - and is therefore ultimately responsible to make sure the fines are paid or appealed expeditiously.

Live Nation goes live today
After trading on the NYSE on a "when issued" basis for a week (12/15/05 RBR #244), Live Nation (ticker "LYV") begins its independent life today as the former Clear Channel Entertainment is spun off from Clear Channel Communications (CCU). Shareholders of CCU will be receiving one share of LYV for each eight shares of CCU (which they will continue to own). There will no longer be any corporate ties between the companies and shareholders will be free to keep the LYV shares or sell them. Live Nation's official debut wasn't helped any by an article in yesterday's Wall Street Journal, headlined "Concert Company Could Be Tough Sell." It noted that while Live Nation is the biggest player in the "glamorous" world of live concerts, it also recounted how difficult it is to make a buck in that business - - and how dramatically the company's value has fallen since it was acquired by Clear Channel in 2001. In fact, the WSJ story understated the loss, since the full price of the acquisition was 4.4 billion, not the 3B figure cited.

RBR observation: The good news for CCU shareholders is two-fold: 1) the "when issued" stock price of LYV has held up fairly well, trading in a range of 10.55-11.50 since debuting last week; and 2) CCU will have a hefty tax loss to record on its books, to be applied against future profits. It will be interesting to see if Clear Channel's biggest shareholders, including the Mays family, hold onto the new LYV shares, or dump them as quickly as possible. As we noted way back in March when we recommended that CCU do just such a spin-off, the concert business is a lousy, low-margin business to be in. Mark Mays didn't put it in quite those terms when he announced the move more than a month later, but he's clearly going to be glad to be out of that business and move on.

Eight more nabbed in
public file dragnet
FCC veteran Roy Stewart warned those assembled at the NAB Radio Show 2005 in Philadelphia that a lot of the upcoming fining action would be in the public file area. Eight more licensees, all on television side, will be contributing between 3K-10K to Uncle Sam because they inadequately contributed documents to the file for public inspection. In this ongoing project, the big fish seem to be winding up in the net just as frequently as the little guys. Two stations picked up the top-of-the-line 10K fine. Atlantic Media Group's UPN 21 WWMB-TV in Myrtle Beach-Florence SC and Louisiana Christian Broadcasting's independent 39 KMCT-TV in Monroe LA-El Dorado AR. Both were lacking significant documentation on children's programming. Two of the bigger fish in Orlando-Daytona Beach were hit up for 4K each: Emmis for WB 18 WKCF-TV (missing TV issues/programming info) and Univision's Telefutura 43 WOTF-TV (accidentally tossed children's info when cleaning out file left by previous owner). The biggest fish was Viacom, hit with a 4K fine for missing a portion of required children's info at UPN 69 WUPA-TV in Atlanta. In Florence AL, part of the Huntsville AL DMA, ETC Communications' indy 26 WYLE-TV was hit with a 3K fine for a missing ownership report. Finally, two Puerto Rico stations - - La Cadena Del Milagro's WVSN-TV Humacao and Asociacion Evangelistica Cristo Viene's WCCV-TV Arecibo, were each charged 3K for missing ownership reports.

Publisher Observation: RBR warned you and now we will help you even more for next year. Purchase your insurance policy against these fines and know first hand - "What Every Operator Needs to Know in the Public File" - written by FCC Lawyer Gregg Skall for RBR. Cover cost is $189.00 but It is Free in pdf print format and emails tomorrow - But - 'Only to Paid RBR subscribers'.
| Pay and or Renew here this morning to receive |

Moody's downgrades VNU
There's more financial pressure on the management of Nielsen parent VNU. Moody's Investors Service has downgraded its long-term debt and that of its Nielsen Media Ratings Inc. subsidiary - - and kept them under review for a possible further downgrade. Moody's says VNU's plans to return one billion euros to shareholders in the wake of its abandoned takeover of IMS Health (11/18/05 TVBR #227) will weaken the company's financial profile. Moody's also noted uncertainties about the company's future with the coming departure of CEO Rob van den Bergh. The report noted that activist shareholders who scuttled the IMS deal are likely to keep the pressure on VNU management. Unless VNU is sold (and the company has acknowledged getting takeover bids), Moody's says VNU is likely to focus on its core assets, particularly its media ratings and data businesses, while suggesting that divestitures are likely in its B-to-B businesses (trade publications and trade shows).
| The Moody's analysis is worth a read |

Publisher Courtesy: Any reader to a VNU trade such as Billboard, Ad or Media Week are welcome here at RBR, TVBR, Media Mix and our monthly Solutions Magazine - Independently owned for 23 years and dependable. We are going to grow again in 2006.
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Ratings move seen as boost to Univision
Wall Street had been expecting Univision to join the major English language networks in using Nielsen's National Television Index (NTI) for ratings, but Goldman Sachs analyst Mark Wienkes says the announcement Monday by Univision (12/20/05 RBR #247) came earlier than expected. The Spanish broadcast is giant now ready to sell NTI ratings for the remainder of the current TV season. "More importantly, Univision will be able to use NTI audience figures to sell '06-'07 commitments in the May 2006 upfront, which could accelerate the addition of new advertisers and meaningfully improve their'06-'07 upfront," Wienkes said.

Adbiz©

Google to offer more eye-catching ads
Users of Google's search engine will soon see advertising with logos and graphics. AOL, in talks with Google, prompted the change in policy, according to a NY Times story. As part of their deal, Google is providing AOL with 300 million in advertising on Google's websites, intended to use to draw Google search users to related content on AOL's sites. That sum is on top of the 1 billion in cash that Google is to invest to buy a 5% stake in AOL. The NY Times said Google and AOL would not comment on any aspect of the negotiations. Google, which has been providing search technology and placing search-based advertising on AOL since 2002, emerged last week with a tentative deal to renew and expand that relationship, fending off a challenge from Microsoft. The paper said that at AOL's request, Google would begin to test various forms of graphical ads, and that it would make the same formats available to other advertisers. One format being discussed is a box, which may include a photograph and a logo, that would appear on the main search results pages toward the bottom of the ads in the right-hand column. Traditional banner ads may appear on Google Image Search and the Froogle shopping site, which already include many photographs, an executive involved said. No advertising is contemplated for the Google home page. In addition, Google has agreed to help put content from AOL on other parts of its site as well. Google, for example, will look for content and services from AOL to include in a feature it calls One Box, which puts very specific links and content above regular results for certain search topics, the story said.

Washington Mutual picks Leo Burnett
Washington Mutual has named Leo Burnett USA as its AOR for its 100+ million creative and buying account after a review. Leo Burnett will work with Wolff Olins, Washington Mutual's brand AOR, the company said in a release. The incumbent was Sedgwick Rd., Seattle. The other contender in the review was Publicis West, Seattle.

One media honcho enjoying
the NYC transit strike
Not that this has a lot to do with the business of advertising, but we wondered how the massive NYC transit strike may be affecting the hub city of the agency community. Maybe not all that much! Said Jon Mandel, Chairman/MediaCom US and Chief Global Buying Officer MediaCom Worldwide: "I kind of like it. I walked to work-it's only two miles away. I realized, being a New Yorker, all these commuters that come in here and use the services of the city should f&%#ing pay for it. We've got to get the commuter tax back in and I think we should absolutely [make a law] that you aren't allowed to drive a car into Manhattan unless you have two or three people with you in the car. It is so livable right now here!" Any opinions/foot blisters of your own? Email cmarcucci@rbr.com

Media Business Report

Minneapolis Star-Tribune
latest to settle circulation lawsuit
The Minneapolis Star-Tribune, the largest daily owned by The McClatchy Company, has settled a lawsuit brought by two advertisers who claimed the newspaper had inflated its circulation numbers. The newspaper continues to insist that the claims are bogus, but it agreed to give the two advertisers 15K in ad credits and pay 40K in legal costs. "We felt an obligation to explore a way to end this matter that we have said from the outset has no merit," said publisher Keith Moyer, who called the matter a "nuisance settlement." The Audit Bureau of Circulation recently audited the newspaper's circulation figures and said they were accurate.

Media Markets & MoneyTM

Bernal expands in south Texas
Paulino Bernal, who runs an Hispanic operation reminiscent of the Baker Family/Positive Alternative Radio operation in the Mid-Atlantic, has gone into expansion mode. It's picking up KLDS-AM Falfurrias TX from non-com The Evangelistic Worship Center for 100K. It'll join a cluster which already includes KDFM-FM Falfurrias and KMFM-FM Premont. Falfurrias is in a non-rated triangle former by Corpus Christi to the east, McAllen-Brownsville to the south and Laredo to the west, while not being particularly close to any of those markets. Bernal is like Baker/PAR in that he runs side-by-side non-profit and for-profit radio groups. Paulino Bernal Evangelism is a noncom religious outfit, supplemented by La Radio Cristiana Network, which is the current licensee applicant for KLDS, along with Consolidated Radio Inc. and S.M. Radio. All four licensee groups are active in Texas.

Washington Beat

Congress helping fund obscenity watchdog
Decency watchdog Morality in Media (MIM) is looking for donations to keep its www.obscenitycrimes.org website up and running. But it has a big ace in the hole, courtesy of Capitol Hill. Congress has given the non-profit organization 150K to help defray 2006 operational expenses. This won't be the first time the watchdog has gotten its food bowl filled by Congress - - the obscenitycrimes.org notes a report in the November 2004 issue of Audio Video News which cites a prior 150K Congressional allocation. MIM President Robert Peters, in a letter to the organization's "friends," explained the operation. "MIM launched the ObscenityCrimes.org Website in 2002 to provide citizens with a means online to report possible violations of federal Internet obscenity laws. Part of what makes the site so valuable is the work of two retired law enforcement agents who follow up on reports submitted to the website and send the results of their investigations to the Justice Department and to U.S. Attorneys in each district where a report originated." He then asked for support, writing, "I am not exaggerating when I say that without the Congressional grant for 2006, we would be forced to drastically scale back www.obscenitycrimes.org or lay off employees. The grant, however, only covers operating expenses. We need your help to hire a communications specialist to promote the website and get our message out to a much larger audience. Furthermore, grant funds won't be in-hand until spring. Meanwhile, as I write, we have about 100K in the bank, with expenses about 75K per month. That doesn't leave much to spare." MIM is a national non-profit [501(c)(3)] organization.

RBR observation: Is it constitutional for Congress to use taxpayer dollars to support an organization that basically deputizes citizens to form a criminal speech posse? We're looking into it. Stay tuned.

Cell phones tied to car crashes
The National Highway Traffic Safety Administration notes that 10% of all automobile operators are simultaneously using a cell phone, up from 8% in 2004, and 6% are holding it to their ear rather than using a hands-free device, up from 5%, according to the Associated Press. Other studies have shown that talking on the phone while driving greatly increases the risk of a serious accident. However, still more studies cast doubt that the risk is significantly greater for hands-free v. hand-held, or that it's significantly greater than other distractions like changing radio stations, eating, applying makeup or conversing with passengers.

RBR observation: First of all, we find it difficult to believe that a mere 10% have converted their cars into a mobile phone booth - - our own eyeballs suggest a much higher number. Secondly, we cringe at the thought of drivers and TV phones that we hear are about to arrive. Amateur demolition derby: Coming to an interstate near you.

RBR Stats

Webcast Metrics releases
November online ratings
Ando Media has released its monthly Internet Radio Top 20, a listing of the top-performing Internet radio stations and networks measured by the Webcast Metrics audience measurement platform. Significant changes to November online radio measurement include a 20% increase in listeners for Big R Radio Network, a 7% increase for AccuRadio, and a 5% increase for Digitally Imported Radio.
| See the charts here |

Consumer Research

BIGresearch releases SIMM VII
Marketers quest for greater ROI has seen the emergence of the "BIG Idea" as a way to "break through" the clutter, but new information from BIGresearch's just released Simultaneous Media Usage Survey (SIMM VII) shows the influence of media on purchase decisions may be even more important for increasing advertising effectiveness. Over 15,000 respondents answered detailed questions on the influence of various media in making a purchase and the results show more dissimilarities than similarities across demographic and ethnic groups. The issue of influence becomes even more complicated when a product category is added to the equation.
| Read More... |

Men continue to procrastinate on Holiday shopping
With their holiday shopping days numbered, many men are still checking off items on their gift lists, according to the latest National Retail Federation survey. The latest installment of the NRF 2005 Holiday Consumer Intentions and Actions Survey, conducted by BIGresearch, found that entering last weekend 17.9% of men had not yet begun their holiday shopping, compared to 12.5% of women. Overall, 30.83 million consumers had not yet started their shopping.
| Read More... |

Transactions

2.5M KCOO-FM Phoenix from Living Proof Inc. (Daniel McClenaghan) to Educational Media Foundation (Richard Jenkins). 100K cash deposit, 650K debt forgiveness, 1.75M note. LMA until closing. Station is C0 on 89.9 mHz with 10 kw @ 3,025'. [File date 11/29/05.]

N/A WKHC-FM Dahlonega GA from Williams Communications Inc. (Walt Williams) to Grady W. Turner. Debt assumption. [File date 11/29/05.]

Stock Talk

GM drags down stock prices
A JD Power & Associates report that General Motors is losing market share to Asian carmakers sent GM's stock tumbling and dragged down the rest of the market. The Dow Industrials lost 31 points, or 0.3%, to close at 10,806.

It was also a dismal day for radio stocks. The Radio Index fell 0.536, or 0.3%, to 181.147 - - another year-to-date low. Journal Communications led the retreat, falling 2.2%.

Radio Stocks

**Here's how stocks fared on Tuesday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		37.96	-0.26	Jeff-Pilot	JP		55.51	-0.19
Beasley	BBGI		13.70	-0.05	Journal Comm.	JRN		13.55	-0.30
Citadel	CDL		12.85	-0.01	Radio One, Cl. A	ROIA		10.76	-0.15
Clear Channel	CCU		32.79	+0.11	Radio One, Cl. D	ROIAK		10.80	-0.12
Cox Radio	CXR		14.26	+0.14	Regent	RGCI		4.48	-0.02
Cumulus	CMLS		12.52	+0.08	Saga Commun.	SGA		10.95	-0.11
Disney	DIS		24.27	-0.27	Salem Comm.	SALM		17.30	-0.33
Emmis	EMMS		19.69	+0.07	Sirius Sat. Radio	SIRI		6.59	-0.08
Entercom	ETM		29.11	+0.02	Spanish Bcg.	SBSA		5.18	+0.09
Entravision	EVC		6.96	-0.13	Univision	UVN		30.02	+0.02
Fisher	FSCI		44.52	+0.11	Viacom, Cl. A	VIA		33.35	-0.42
Gaylord	GET		44.08	+0.51	Viacom, Cl. B	VIAb		33.35	-0.41
Hearst-Argyle	HTV		23.97	+0.17	Westwood One	WON		16.19	-0.16
Interep	IREP		0.36	unch	XM Sat. Radio	XMSR		28.50	+0.12

Bounceback

Send Us Your Opinions We want to
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This is your column, so send your comments and
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Arbitrends

Radio Media Moves

Baldwin to Philly
Leo Baldwin has been lured away from KDDB-FM & KQMQ-FM Honolulu to enjoy the snows of Philadelphia as Program Director of Beasley's WRDW-FM.

WW1 ups
Beth Robinson
Westwood One announced that Beth Robinson has assumed the position of SVP/Radio Network Operations and Engineering in NY. In this new role, Robinson will continue to oversee all day-to-day radio network ops responsibilities for NY and DC as well as add oversight of the production and engineering. Beth has worked for Westwood for the past five years, first as Director and then VP/Broadcast Operations.

Below the Fold

Ad Biz
Google going after
More eye-catching ads...

Washington Beat
Congress helping fund
Obscenity watchdog MIM giving 150k...

Media Markets & Money
Bernal expands
In south Texas, picking up KLDS-AM Falfurrias...

Stations for Sale

NEast CapCity FM
Suburban FM, strong revenue history-less than 8.5x BCF - 2M.
salesgroup@beld.net or
781-848-4201

More News Headlines

Airline ad boss
booked for RAB'06
Rob Britton, Managing Director Brand Development and Advertising for American Airlines, will deliver a keynote address at RAB'06 in Dallas. Britton, a 21-year veteran of the airline business and frequent lecturer at business schools worldwide, will offer a lively glimpse of the challenges his team faces in advertising the world's largest airline - - and one of radio's largest advertisers. His keynote, titled "The Challenges of Airline Advertising," will be delivered at the Thursday luncheon sponsored by Katz Media on February 2nd.

Messier signs with XM
Hockey icon Mark Messier signed a marketing agreement with XM Satellite Radio to promote its broadcasts of NHL games and XM's NHL talk channel Home Ice (ch. 204). He will also make regular appearances on Home Ice including an exclusive interview to air in January.

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.

Cablevision, JWT Detroit pact
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. 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.
RBR observation: Technology waits for no one and radio continues to stand still with technology. If you are waiting for someone to lead don't hold your breath. Every operator must take charge of their own businesses now.
12/20/05 RBR #247

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

Local Sales Manager
WB58-KQCA-TV seeks dynamic LSM to train and motivate talented group of AE's. Must have passion for helping people solve problems and pass on the knowledge and experience. California's most livable markets is Sacramento.
See TV Careers

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