Volume 21, Issue 30, Jim Carnegie, Publisher
Friday Morning February 13th, 2004

Radio News ®

Ten times is the tenor of subcom indecency bill
Rep. Fred Upton (R-MI), pictured, and his Telecommunications and the Internet Subcommittee decided to make like Pete Rose rather than Mark McGwire and go for a single as they moved anti-indecency legislation forward. To that end, H.R. 3717 "The Broadcast Indecency Enforcement Act" was kept clean, focusing on a tenfold increase in the FCC's indecency violation fining capacity, up to a $3M maximum.
| Full Story Click Here
|

Powell goes on a letter-writing binge
FCC Chairman Michael Powell took it upon himself to make sure that top broadcasting and cable industry executives are aware that the FCC is on the indecency warpath. He sent letters to the heads of two major trade associations and to a pair of executives at each of the big four television networks. | Full Story Click Here |

Hollings wants to shoot down TV violence
Sen. Fritz Hollings (D-SC), who has been attempting to pass legislation to force violent television programming into safe harbor hours for over ten years, is back at it. He is bringing his "Children's Protection from Violent Programming Act," originally introduced in 1993, back for another go-around in the Senate Commerce Committee. At least one member of the opposition party, Sen. Sam Brownback (R-KS), figures to be on his side. And based on the track record, he'll have more support than that. He'll certainly have the support of Kay Bailey Hutchison (R-TX), who along with Daniel Inouye (D-HI) and Byron Dorgan (D-ND), is co-sponsoring the latest attempt to pass the Act. Although it has never succeeded on the Senate floor, Hollings says he got it out of committee at least three times, by a 16-1 vote in 1995, and 19-1 vote in 1997 and a 17-1 vote in 2000.


Ownership ruling will simmer until summer
Judges of the 3rd Circuit Court in Philadelphia have indicated that the court will move fast on its consideration of multiple and multi-sided appeals of the FCC's 6/2/03 ownership ruling. Fast, in this case, apparently means that they hope to release an opinion by July. The panel of judges gave no indication of which way it was leaning during or after a day's worth of arguments. However, for tea leaf readers, one of the judges criticized the diversity index devised by the FCC to support some of its regulatory loosenings, according to reports. Also, an attorney representing Clear Channel, arguing that the FCC was statutorily unable to increase regulation was submitted to a judicial grilling. The judges hearing the case were Anthony Scirica, Thomas Ambro and Julio Fuentes.

Radio Free Brattleboro prepares to be shut down
The Rutland, VT Herald reports pirate operator Radio Free Brattleboro is preparing to be shut down by the FCC. Lawyers for the station said the FCC will likely seize the station's broadcasting equipment soon. They wanted more "breathing room" until after a Town Meeting Day vote to gauge community support for the 10-watt FM, Brattleboro attorney James Maxwell said. The FCC rejected that request in a letter sent to lawyers last month, Maxwell said. He has also asked the Commission to speed up the application process for a local group called Vermont Earthworks that has applied for a license. The group isn't associated with RFB, but some suggested that the groups work together to create a new station. A question before voters 3/2 asks if they will give Radio Free Brattleboro authority to broadcast until a license is issued to that station or another community radio station.

Sirius signs with DISH Network, RadioShack for sales and distribution
A big leg up for Sirius Satellite Radio: Beginning mid-year, RadioShack stores, dealers, and distributors that offer EchoStar's DISH Network will also offer a complete line of Sirius products and service. These agreements are projected to increase Sirius' product availability from over 6K retail floors today to over 20K by the end of the year. Additionally, DISH Network will offer Sirius' 100 streams of music, news and entertainment to its 9M DBS satellite system subscribers. RBR observation: It's time to compete
| Full Story Click Here
| RBR Observation |


Conference Calls, Q4 2003

XM announces Q4 results
XM Satellite Radio reported its Q4 results, ending the year with 1,360,228 subscribers (the current number now exceeds 1.5M). Record net subscriber additions of 430,580 in Q4 represent a 46% increase from the end of Q3 and more than the total subscriber net additions in 2002. RBR observation: Look out XM, here comes Sirius
| Full Story Click Here
| RBR Observation |


Adbiz ©

Industry chiefs forecast 2004
We asked industry organization heads for their 2004 predictions and prognostications in RBR's February print issue. Here's an excerpt from two: | Full Story Click Here |

Radio and TV
the pure local tag team
Who said that Radio and TV can't pull off a double play? Pictured at the 4A's convention in Orlando is Mary Bennett EVP of the RAB and Abby Auerbach, EVP of the TVB. In the session entitled 'Using Media Strategically to Reach Your Target' these two ladies double played against their 'Men' counterparts: Sean Cunningham from Cable Ad Bureau, Stephen Freitas of the Outdoor Ad Bureau and Jason Klein with the Newspapers National Network. Bennett and Auerbach counter punched Cunningham who flat out told the ad agencies "I want it all" meaning all the dollars spent at the local level. Freitas admitted radio was probably his best friend in a Media Mix buy but did emphasize that his strongest members are Clear Channel and Viacom outdoor, which of course are the two largest radio groups in the country. Klein with his newspaper had a hard time keeping pace with Bennett's radio jab with strong out of home and in car listening. Auerbach pressed the strong value of local television being local and not hundreds of channels. The Bennett and Auerbach tag team was simple that both radio and TV are local businesses and ad dollars must be spent to reach the local consumer when they are ready to walk into a local retail store and spend. RBR observation: The Bennett and Auerbach tag team was not rehearsed. They both stood their ground and had answers with facts to back up their claims on 'Accountability with ROI'. From the audience you could feel it; Bennett and Auerbach did not throw a punch like a lady.

MediaGuide demos new beta monitoring system at 4As
At the AAAA conference in Orlando this week, Mediaguide is demonstrating its upgraded broadcast media measurement tool for real-time measurement verification of broadcast spots. Mediaguide's latest incarnations will be announced in the spring and will enable advertisers/agencies to make real-time decisions that impact performance of in-flight campaigns. When overlaid with responses and sales, the Mediaguide data can help increase ROI. | Full Story Click Here |

Marshall Field's, NTRA win "Best of the Best" at RAC
Marshall Field's and the National Thoroughbred Racing Association took home top retail advertising awards at the Retail Advertising Conference (RAC). The Retail Advertising & Marketing Association (RAMA) announced the winners of the RAC 2004 Award for outstanding achievement and creativity in retail advertising and marketing at an awards dinner on 2/11 at the Chicago Hilton. A panel of judges consisting of top ad execs in the retail industry selected the recipients for the award, the most coveted advertising award in retail. | Full Story Click Here |

McCann-Erickson NY debuts
Bass Ale campaign
Labatt USA and AOR McCann-Erickson NY launched this week the "A little bit of better" TV effort for Bass Ale. The 30-second spot uses horror film backdrop with the grim reaper approaching an older man asleep in bed. As he leans closer, he picks up a photo of the old man's grandkid and begins discussing how he's changed these days and is into celebrating the good times. Next, the "hell supervisor" enters the grim reaper's office to find an empty Bass bottle. Says v/o: "A better beer for a better world. Bass, a little bit of better." The ad is airing on Comedy Central where Bass is the official beer of "Indecision 2004;" Fox Sports, TBS, ESPN and other cable nets. Radio and future TV spots will be added.


Media, Markets & Money tm

Beam me up, Peggy!
A pair of Beams are planning to buy a combo in western Virginia, and the ownership group comes complete with its own Hall, not to mention another nearby radio station. And that's right, the deal is in western Virginia, not West Virginia, although that fine state is not far from Grundy VA, the location of the combo in question. So are parts of Kentucky, North Carolina and Tennessee. The stations, WNRG-AM and WMJD-FM, are being bought by Peggy Sue Broadcasting Corp. It's principals are Henry Beam, Peggy Beam and Dirk Hall. The seller, Gary Dotson's Virginia-Kentucky Broadcasting Company, will rake in $450K cash once all the t's are crossed and i's are dotted. Peggy Sue is already the proud owner of WRIC-FM, about thirty miles east of Grundy in Virginia's southwestern panhandle, where Arbitron is a total stranger.

Close encounters in San Antonio, Chicago
Americom broker Tom Gammon tells us he's taken a pair of deals to completion in recent days. One is the $24M deal in which Tom Castro's Border Media acquired KSAH-AM and KLEY-FM in the San Antonio market from Spanish Broadcasting System. Gammon says to look for more activity from Border in that border market. The other deal is NextMedia's $14M acquisition of WCCQ-FM in the Chicago area. The station will fit in the the buyer's cluster in the Joliet IL area to the west of the city.


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Your current copy of RBR is
a click away

Dear Media Executive:
Now get the Total 2004 Forecast By individual Mediums as RBR goes One-On-One with each Major Ad Bureau Chief. Down Load RBR Solutions Magazine TODAY! Get the Facts!
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Washington Beat

Commissioners clash over small business opportunities
The FCC released its "Triennial Report to Congress; Indentifying and Eliminating Entry Barriers for Entrepreneurs and Other Small Businesses," with three of the commissioners appending comments. When it comes to broadcasting, as usual, Republicans and Democrats do not see eye to eye. | Full Story Click Here |

Sector misdirecter: Wrong three letters
The headline for yesterday's Washington Beat story "Programming program scheduled by the FCC" should have read "Programming program scheduled by the NAB."


Transactions

$700,000 WVOJ-AM Jacksonville FL from Morgan Media Inc. (David Rimmer) to Florida Sports News Network LLC (Larry Calufetti, George Pressley, Roland Biancalana). Two $50K deposits, balance in cash at closing. Duopoly with WGSR-AM, acquisition of which is pending and delayed due to ongoing litigation. LMA since 1/1/04. [File date 1/12/04.]

N/A WPKN-FM Bridgeport CT. 100% of WPKN Inc. Change in board for noncom. Harry Minot remains president. [File date 1/12/04.]

N/A WRVU-FM Nashville TN. 100% of Vanderbilt Student Communications Inc. Change in board for noncom. Chris Carroll remains dir/student media. [File date 1/12/04.]


Stock Talk

Look out below!
Economic stats showing weakness in the retail sector, plus unwanted strength in the filing-for-unemployment sector were responsible for a gloomy day on Wall Street, according to the Associated Press. That is why almost the entire RBR list of companies broke out the red ink. And some of the few gainers didn't have much to crow about. Our pals at Interep and Salem earned: A penny!


Radio Stocks

Here's how stocks fared on Thursday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

$43.32

-$1.38

Jeff-Pilot

JP

$53.71

-$0.34

Beasley

BBGI

$18.61

+$0.11

Journal Comm.

JRN

$19.90

-$0.23

Citadel CDL $19.00 -$0.02

Radio One, Cl. A

ROIA

$18.87

-$0.60

Clear Channel

CCU

$46.01

-$0.79

Radio One, Cl. D

ROIAK

$18.81

-$0.60

Cox Radio

CXR

$23.74

-$0.58

Radio Unica

UNCA

$0.69

unch

Cumulus

CMLS

$21.40

-$0.60

Regent

RGCI

$7.28

-$0.19

Disney

DIS

$27.73

+$0.13

Saga Commun.

SGA

$18.45

-$0.30

Emmis

EMMS

$26.49

-$0.91

Salem Comm.

SALM

$25.89

+$0.01

Entercom

ETM

$47.78

-$1.12

Sirius Sat. Radio

SIRI

$3.12

+$0.11

Entravision

EVC

$10.75

-$0.25

Spanish Bcg.

SBSA

$11.77

-$0.20

Fisher

FSCI

$52.00

+$0.78

Univision

UVN

$37.01

-$0.09

Gaylord

GET

$29.39

-$0.24

Viacom, Cl. A

VIA

$40.12

-$1.14

Hearst-Argyle

HTV

$27.22

-$0.31

Viacom, Cl. B

VIAb

$39.98

-$1.19

Interep

IREP

$2.26

+$0.01

Westwood One

WON

$31.06

-$0.84

International Bcg.

IBCS

$0.02

-$0.01

XM Sat. Radio

XMSR

$22.34

-$1.11


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Upped & Tapped

DRS taps Michael Troje as regional SM
DRS Broadcast Technology, formerly Continental Electronics, announced Michael Troje has joined the team as a Regional and Vendor Sales Manager. This addition represents a significant dedication by DRS-BT to develop and maintain direct relationships with its customers. As owner of TDM Broadcast Services, Michael has represented the Continental transmitter line to clients throughout the Upper Midwest. Michael has over 25 years serving the broadcast industry as a broadcast engineer, Domestic Sales Manager for Broadcast Electronics, and NSM for Shively Labs television products division. | More U&T Click Here |


Stations For Sale

Europe is Knocking...
Two Opportunities!!!
#1 Get in on the ground floor with the launch of an 8-station digital group based in London, with coverage throughout southern England. Government protected format and licenses. Already on the air.
#2 Program Syndicator with unique format aimed at the huge vacation market. Major station deal in place. Others in the works. Coverage throughout Europe. Music partner is one of the UKs biggest. Both parties are seeking financial support in the $1 million range in return for equity participation.
Contact: Larry Grimes, President, W.B. Grimes & Company, (301) 253-5016; lgrimes299@comcast.net

7 Station
Regional Cluster

Excellent Cash Flow in Far Northwest
Cliff at Clifton Gardiner & Co (303)758-6900
cliff@cliftongardiner.com

Rated Market AM
10KW expanded band AM. Could be move-in to top 25 market.
Cliff at Clifton Gardiner & Co (303)758-6900
cliff@cliftongardiner.com


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

Sen. John McCain hosted Indecent chatter on Capitol Hill
All five FCC Commissioners for a discussion, while Rep. Fred Upton (R-MI) held a session with Viacom's Mel Karmazin and the NFL's Paul Tagliabue which went into overtime and then some. RBR observation: At least the FCC commissioners didn’t get drilled as in the past on indecent or anything else. Remember last June 4,’03 6/5/03 RBR #110. Chairman Powell noted that the FCC was planning to begin issuing fines for repeat indecent incidents within a single program. Wow – some how this reads indecent!
02/12/04 RBR #29

Karmazin: Indecency rules
too vague to be followed
You can't obey what you can't understand, and Viacom President/COO Mel Karmazin told the Telecommunications and the Internet Subcommittee that current indecency laws and regulations are so vague, and enforcement so inconsistent, that broadcasters have no chance to figure out how to comply. RBR observation: Rules too vague to be follow? – Ah, come on guys how about some common sense as it comes with the driver’s license. Maybe when new rules are written a mandatory vision test will also be required. Bravo ‘Zen Master’ as your bus pulls away from the curb glad to know the bus hasn’t hit anyone – yet, just a few minor fender benders. Bad news is your insurance rate just went up…. May want to call that insurance company with the lizard! 02/12/04 RBR #29

Comcast makes bid for Disney
Got immediate response from FCC Chair Michael Powell. He announced a promise of close scrutiny if Comcast succeeded in purchasing Disney. "I don't know if Comcast will get Disney or not...if it does, a merger of that magnitude will unquestionably go through the finest filter at the commission, I can assure you, as possible," RBR observation: Ok fine but remember when we stated Roy Disney was taking on an anti-Eisner fight to shareholders. Remember we said, ‘The small guys roll with the punches but the big guys throw them.’ The real fight bell is set to ring on March 3rd and in the city of 'Rocky Balboa' - Philadelphia. 01/28/04 RBR #19. Well, Comcast has Eisner in the corner and punching his lungs out. Comcast says “We want to make this as friendly as possible.” Anyone ever see the movie Rocky? 02/12/04 RBR #29

Anheuser-Busch looking at old US ads/branding for foreign markets
Anheuser-Busch is updating some of its past US campaigns and seeing if they fit the tastes of audiences overseas. For example, Busch's "Ants" campaign, not seen in the US since the late '90s, is being shown in China and has proven to be a hit. Editor's Note: Those oldies but goodies remind me of you!
02/11/04 TVBR #28

Super Bowl advertisers
complaining to NFL
America's biggest marketers are mulling whether to return to the Super Bowl. Longtime big spenders such as Pepsi and Gillette have communicated in harsh words to NFL Commissioner Paul Tagliabue that if the league does not clean up the halftime act, they might take a pass in 2005. Editor's Note: Remember, in an election year – everyone is looking for a deal deal! 02/11/04 TVBR #28

The Dees Tease leaves KIIS-FM
What many in the biz feel could have been an on-air stunt in that 22-year KIIS-FM, LA morning legend Rick Dees leaves or has left the building at KIIS is true. Rick Dees has said bye-bye, buy bonds and don’t forget to play his only hit record ‘Disco Duck’. Editor's Note: Clear Channel could have made it an exit with a little more class. 02/11/04 RBR #28

Publishers Perspective
RAB 2004 'Accountability'
A Melting Pot boiling over...
President Fries spoke on accountability and EDI but it was delivered a little awkward. It was the 'State of the Industry' speech to an audience that not all were on the same verbal or intelligence level of the issues facing radio that have been long discussed behind closed corporate board meetings, ad agency and client world doors. Publihser Note: Puzzling or pathetic department deals with the press themselves…Pathetic!
02/10/04 RBR #27

FCC’s Michael Powell
threatened to pull CBS licenses
Considered holding a dramatic license revocation hearing against CBS after last week's Super Bowl breast mess. "A furious Powell vocalized the "license revocation" option against CBS-owned broadcast outlets to senior staff at the FCC in the hours and days after the event, a top source said from Washington. Several FCC commissioners believe CBSVIACOM has repeatedly violated indecency rules. Editor's Note: The way these FCC commissioners are stumping you thing they are running for re-election. Hello… you are appointed to the position you have. 02/10/04 RBR #27

PastieGate update:
Mixed decision for Viacom
We're not sure what the other 53% would pick, but Reuters is quoting a Time/CNN poll which has 47% of Americans agreeing that the Janet Jackson/Justin Timberlake incident at the Super Bowl halftime show represents "a new low in bad taste." However, the same poll said that 68% did not believe that the act warranted punishment for CBS Television. Editor's Note: And the Beat Goes On.. Ta Dum! 02/10/04 RBR #27


Contacts
MANAGEMENT
Publisher, Jim Carnegie
JCarnegie@rbr.com
VP/GM, Assoc. Publisher, Ken Lee
KenLee@rbr.com
VP, Cathy Carnegie
CJCarnegie@rbr.com
Admin. Assistant, April McLynn
AMcLynn@rbr.com

EDITORIAL
Executive Editor, Jack Messmer
JMessmer@rbr.com
Managing Editor, Dave Seyler
DSeyler@rbr.com
Senior Editor, Carl Marcucci
CMarcucci@rbr.com
Reporter, Bob DeCarlo
BDeCarlo@rbr.com

SALES
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JBarnes@rbr.com

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