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Radio News ®
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Supremes get set to decide to decide
 The FCC loss at the Second Circuit over its ability to levy punishment to broadcasters over instances of fleeting indecency has been appealed to the Supreme Court. The high court has now indicated it will decide whether or not to take the case at the end of the month, on 2/29/08. The case concerned an f-bomb dropped by U2 frontman Bono during an awards show on Fox Television Network. The other three major networks are siding with Fox. The FCC standard for indecency for years centered on the use of sexual or excremental language, repeated with the intention to pander and/or titillate. Accidental slip-ups were generally brushed aside. That all changed after the Janet Jackson Super Bowl incident. The Enforcement Bureau had already ruled that the Bono and other similar incidents fell under the fleeting and inadvertent exception, but EB found itself reversed by Powell, who essentially decreed that an f-bomb was actionable by itself.
Some have supported that decision since certain words go beyond indecency and into obscene territory, but the argument against is that the FCC changed the rules all of a sudden without putting the matter before the public for comment. It is also argued that making fleeting slip-ups actionable will have a chilling effect on live programming, particularly with the new 350K fines available in the FCC enforcement arsenal. Against this backdrop, Congress has been trying to put a law on the books that would back the FCC's claim to an ability to take action against fleeting slip-ups with legislation clearly granting it that power.
RBR observation: For awhile the slip-ups seemed to be coming from the edgier portion of the entertainment community, but the most recent incidents have involved personalities with plenty of experience before cameras and live mics, including Chris Matthews, Diane Keaton and Jane Fonda. Even President George W. Bush was caught off-color before a live mic at a diplomatic function. In none of these cases has civilization come to a screeching halt. The fleeting rule works just fine, and some leeway must be granted broadcasters to assure their ability to provide any live programming without risking their bank account. The Supreme Court should not waste its time on this one.
 Media mavens filling the beach
The biggest growth category for media companies has been the unemployed category, according to a study from Ad Age. It says that you have to go back 15 years to find a lower total of media employees. Leading the charge to the unemployment lines have been newspapers. The current media employment total was pegged at 886.9K, after peaking at well over 1M around Y2K. Advertising/marketing was strong, however, at 769K, a total Ad Age says is a new record. 160K media jobs have been lost since that high water mark, accounting for about one out of every six jobs. Roughly half of the erosion is attributable to newspapers alone. In the past years, radio and television employment were down, while magazines had a tiny increase. Retailers and services still need to sell their wares, though, despite the bottom line problems hitting the media. That has led to growth in marketing consultancies, firms that help guide clients through the rapidly changing media landscape. And the element that is changing that landscape the most, the internet, is the biggest growth category.
RBR observation: They say you can't save your way to prosperity. So the question becomes this: If a broadcaster's sweetest dream is true -- that the internet is highly overrated as an advertising medium, especially at the local level, and the extended honeymoon it has had with some former broadcast clients will soon lose its luster, leaving the clients look back to the airwaves again for a solution, will there be enough of an industry left to welcome them back?
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 XM/Sirius pact is a year old
And it's still trapped in the bowels of the FCC and the Department of Justice. Meanwhile, The NAB and its retained research firm Carmel Group are continuing to apply pressure to keep the firms apart. The Carmel group is arguing that an XM/Sirius argument -- that they don't really compete with one another anyway since they use different receivers -- is highly dubious. For starters, having interoperable receivers was a license condition -- just like their inability to merge -- and that there are only two possible reasons why they have failed to do so. One is not that they do not truly compete, but rather that they compete so intensely they have their own exclusive receiver to make it harder for subscribers to move over to the competing service. The second is worse: That it is premeditated anti-competitive collusion between the two services. "Sirius' and XM's pattern of repeated bad faith, as well as an inability to show good intentions toward the government and consuming public, and its lack of follow-through time and again, are further reasons to distrust their claims and representations, and to not reward them for such bad acts, including that of their concerted efforts not to timely develop and distribute an inter-operable radio." Meanwhile, the NAB reminded the FCC of the duo's shenanigans regarding terrestrial repeaters. It says 19 were completely unauthorized, 142 (20%) were mislocated, 221 were operating above licensed power, 21 had extra antennas, and 79 had antennas that were too high. There has long been concern among broadcasters that the satcasters would use the repeater network for locally originated programming; NAB asks the FCC to clear up the language so that this event does not occur.
Broken deal in mediation
There could be an out-of-court settlement coming in the dueling lawsuits over the busted sale of 187 radio stations from Clear Channel Communications to Frequency LLC, backed by American Securities Capital Partners, for 452 million bucks. Frequency sued Clear Channel in federal court and Clear Channel sued Frequency in Texas state court. The latest document filed in the federal court case states that "the parties have agreed to mediate their disputes in this and the related action...pending in the District Court of Bexar County, Texas." The joint filing by attorneys for Clear Channel and Frequency, which was "so ordered" by US District Judge P. Kevin Castel, extended various deadlines related to the case. Those deadlines could become moot if the mediation results in a settlement.
CBS Radio Detroit MM re-assigned
to Riverside/San Bernardino
 More of CBS Radio's restructuring moves: CBS Radio confirms its Detroit market manager Kevin Murphy is being re-assigned to the station cluster in Riverside/San Bernardino/Ontario, CA. After spending three years in Detroit, he was most recently Market Manager there for their six station cluster while also serving as GM of WOMC (Classic Hits) and WXYT AM & FM (Sports). Prior to becoming Market Manager, Kevin was the DOS for the Detroit stations. Kevin has been with CBS Radio for more than 10 years, joining the company in 1997 as GSM of Buffalo's WYRK-FM and then serving as DOS for the entire Buffalo cluster. In July of 2004 he was promoted to Market Manager of the four station CBS Radio Rochester cluster.
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| Wall Street Business Report TM |
Hearst-Argyle hops on the schedule
It's been a relatively quiet week for broadcasting on the quarterly conference call front, with just three companies -- Radio One, Fisher and Entercom -- on the calendar for Thursday 2/21/08. But not to worry. Hearst-Argyle, with 26 television stations and a pair of radio stations to discuss, has announced its own conference for Friday 2/22/08. It'll kick off at 9:30 AM, but don't worry. We'll tune in so you don't have to.
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| Media Business Report TM |
Another media frontier
Hey, we have an idea! Let's combine the old-fashioned human sandwich sign with the latest in video technology! DAMN! Already done. Beryl's World/IMC has been around since 1929, and is already out with the Wearable Video Vest, an article of clothing which boasts "full motion video with stereo sound" and which can go anywhere its human goes. The human is also available to interact with the public in a way a broadcast, newspaper or website cannot. Beryl's says it already has clients such as Comcast, Seminole Hardrock Hotel and Casino, Westgate Resorts, Corning Data and Golden Palace, which rent or lease the vests for trade shows and street campaigns.
RBR observation: All we can say is that if we go to the local nature park this summer and see turtles sunning themselves on rocks while presenting top-quality video and audio on the topic of car wax, we will not be amused. WE also won't be surprised.
CC Outdoor digital billboards reached
millions on Super Tuesday results
 Clear Channel Outdoor's digital billboard networks reached more than 12 million motorists and commuters during last week's Super Tuesday voting session, providing the public with real-time results of the Presidential Election Primaries through live RSS-feeds from msnbc.com. The changeable, LED-equipped billboards posted updates of tallies in 14 out of 17 of the markets where CC Outdoor has networks. Clear Channel Outdoor posted campaign results on digital billboard networks in Akron, Albuquerque, Chicago, Cleveland, Columbus, Las Vegas, Memphis, Milwaukee, Minneapolis, New Jersey, Orlando, Philadelphia and Tampa, and two networks in both Las Vegas and Los Angeles.
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Ad Business Report TM
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Eric Hirshberg to serve as Chief Judge
for 2008 Radio-Mercury Awards
Eric Hirshberg, President and Chief Creative Officer of Deutsch Los Angeles, will serve as Chief Judge for the 2008 Radio-Mercury Awards, Radio's premier creative competition. Winners will be announced on May, 21 at the gala event hosted at the Four Seasons Los Angeles Hotel at Beverly Hills. Said Hirshberg: "Doing great Radio has the highest degree of difficulty in the business, because the idea has no visuals to hide behind. When done right, Radio can be one of the most compelling media because the listener's imagination is a part of the action. I'm looking forward to hearing the best of the best."
Dial Global Digital 24/7 gets JACK-FM from ABC
Dial Global announced an exclusive arrangement with Canada-based SparkNet Communications to begin offering the JACK-FM format to stations in the US beginning 3/31. All current affiliates of ABC Radio Networks' version of JACK-FM will be transitioned to Dial Global Digital 24/7 Formats on that date, with no disruption of service. With SparkNet's consultation, Dial Global will combine the unique mix of adult hit music, with key imaging elements of the JACK-FM brand, including the voice of Howard Cogan, who is heard on the format across the country. "Dial Global will provide the perfect JACK-FM product for the marketplace," said Garry Wall, Co-President of SparkNet. "And this marriage with Dial Global will give SparkNet some new barter-based tools for generating business with stations in markets of all sizes." For more info: Matt Caldaronello, Vice VP/Affiliate Management at Dial Global Digital 24/7: [email protected], or (661) 294-6222.
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| Media Markets & Money TM |
Pocahontas sells out of Welch
West Virginia-Virginia Holding Co. is getting WELC AM & FM in Welch VA from Sam Sidote's Pocahontas Broadcasting Company. WV-VHC is headed by Bob Spencer and Rick Lambert. They'll pay 300K for the combo and match it up with WPMW-FM Mullens WV. The stations are located in the very southern tip of West Virginia not far from the Virginia border. The nearest Arbitron market to Welch is Bluefield WV, about 20 miles to the east.
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| Washington Business Report TM |
Battling meetings
The NAB and the FCC will be at loggerheads next Tuesday 2/26/08. The FCC is holding its February Open Meeting on that date, and the NAB is running its annual State Leadership Conference legislative session. The FCC schedule has not yet been made public, but it is widely expected to expand on the activity initiated at the December 2007 meeting, including possibly bringing up sensitive topics that didn't make it on to the prior agenda, such as product placement. There is far less mystery surrounding the NAB session, sited just around the corner from the FCC at the Mandarin Oriental Hotel. It will feature remarks from Mark Pryor (D-AR), Mike Pence (R-IN), Jim Clyburn (D-SC), New Republic Editor-at-Large Peter Beinart, and a session featuring key legislative staffers.
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| Internet Business Report TM |
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Hulu CEO to keynote NAB Show
 NAB announced that Jason Kilar, CEO of Hulu, will present a keynote address during the NAB Show on Wednesday, April 16. Hulu is an online video joint venture between NBC Universal and News Corp. Kilar will discuss the latest trends and technologies that are enticing content providers to distribute and deliver content as never before. Additional confirmed speakers include executive producers of "Lost," Carlton Cuse and Damon Lindelof, Anthony Zuiker, executive producer and creator of the CSI Television Franchise; Barry Sonnenfeld, executive producer of "Pushing Daisies" and director of "Men in Black", "The Addams Family" and "Get Shorty;" and John Gage, chief researcher of Sun Microsystems.
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| TVBR TV News |
NAB, CEA team to raise antenna awareness
Fans of over-the-air television who are not in the market for an MVPD subscription will have a new resource to determine how to make sure they are still pulling in good signals from their local broadcasters. The NAB and CEA have a new site called AntennaWeb.org that will instruct consumers' purchase of an appropriate piece of outdoor equipment no matter where they live. "Cable or satellite subscriptions are not required for consumers to enjoy the benefits of digital television," said NAB President and CEO David Rehr. "With the proper antenna, consumers can receive free, over-the-air digital broadcasts with higher picture and sound quality and access to multiple channels of free programming. Broadcast viewers can also access interactive video and data services that are not possible with traditional analog technology, including enhanced closed-captioning." Consumers can visit the website, and armed only with their household address, and will find out what broadcast signals should be available at their location, with advice on antenna selection that takes into account terrain factors (trees, hills, buildings) and distance.
TVBR observation: If we were a retailer in any zone where rooftop antennas are a popular option, we would make sure we have provide access to this website right there on the sales floor.
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| Transactions |
184,310 WFEB-AM Sylacauga AL from Alabama Broadcasting Company Inc. (John Bodiford, receiver) to Powers Broadcasting Company LLC (W.O. Powers). Debt forgiveness. As decided in Circuit Court of Talledega County, Alabama. [File date 1/18/08.]
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| Stock Talk |
Losers take winners
The Dow was only down 10.99 yesterday, but radio stocks were lower, almost across the board. A couple of bright spots were Cumulus, up 0.16, and Lincoln National, up 0.35.
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| Radio Stocks |
Here's how stocks fared on Tuesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron*
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ARB
|
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41.85
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-0.10
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Google
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GOOG
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508.95
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-20.69
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Beasley*
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BBGI
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5.50
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+0.08
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Hearst-Argyle
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HTV
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21.87
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+0.01
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| CBS CI. B |
CBS |
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25.14
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-0.24
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Journal Comm.
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JRN
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7.41
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-0.16
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| CBS CI. A |
CBSa |
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25.17
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-0.15
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Lincoln Natl.
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LNC
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53.84
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+0.35
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| Citadel* |
CDL |
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1.38 |
unch |
Radio One, Cl. A
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ROIA
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1.56
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-0.02
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Clear Channel*
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CCU
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31.07
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-1.28
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Radio One, Cl. D*
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ROIAK
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1.56
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-0.01
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Cox Radio*
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CXR
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11.95
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-0.01
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Regent*
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RGCI
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1.09
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-0.07
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Cumulus*
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CMLS
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5.91
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+0.16
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Saga Commun.*
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SGA
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5.98
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-0.01
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Debut Bcg.
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DBTB
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|
1.02
|
unch
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Salem Comm.*
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SALM
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3.54
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-0.21
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Disney
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DIS
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32.19
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-0.30
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Sirius Sat. Radio
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SIRI
|
|
3.10
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-0.13
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Emmis*
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EMMS
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2.94
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+0.07
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Spanish Bcg.*
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SBSA
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1.62
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+0.01
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Entercom*
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ETM
|
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12.27
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-0.32
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Westwood One*
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WON
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1.88
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-0.08
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Entravision
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EVC
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6.57
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-0.01
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XM Sat. Radio
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XMSR
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13.11
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-0.45
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Fisher
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FSCI
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31.07
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-0.05
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-
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-
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-
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-
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-
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*Component of the RBR Radio Index
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Bounceback
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 We want to
hear from you.
This is your column, so send your comments and
a photo to [email protected]
Jim Carnegie's feedback on RAB is generating feedback of its own...
 Insightful commentary this morning! Please remember the same power elite that abandoned Main Street in favor of Wall Street have given us HD Radio, otherwise known as IBOC. The prime motivation behind In Band On Channel (IBOC) was to stifle competition. Other countries put digital audio delivery in other parts of spectrum. Does the enhanced audio quality mean anything to the consumer, probably not, you cite AM Stereo but you forgot Quad. I see laptop computers and cell phones (with their one inch speakers, so much for quality) as the new transistor radios and the Internet allows Radio to overcome its biggest enemy, the laws of physics, which do not apply on the Internet. We can stream to the world - - we can put up as many various streams as we want (see The Radio.com or AccuRadio.com) perhaps On Line is a better idea than ON Channel. Remember when the radio elite voted for IBOC - - on line streaming was not perfected. Seems to me On Line is a better idea than On Channel, and already has the market penetration. The consumers have voted. Radio CEO's need to follow Ted Turner's advice, "Lead, follow or get out of the way"
Gary E. Burns
3 Daughters Media Inc.
Forest VA
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Below the Fold
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Ad Business Report
Eric Hirshberg
To serve as Chief Judge for 2008 Radio-Mercury Awards...
Media Business Report
Another media frontier
Idea, let's combine the old-fashioned human sandwich sign with the latest in video...
CC Outdoor digital
Billboards reached millions on Super Tuesday results...
Media Markets & Money
Pocahontas sells out of Welch
Is getting WELC AM & FM...
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Stations for Sale
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 Market your Stations For Sale
in our daily epapers.
Contact
Jim Carnegie
[email protected]
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Radio Media Moves
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Arbitron appoints
new CTO
Arbitron has appointed Taymoor Arshi as its new SVP/CTO. Dr. Arshi replaces Ron Kolessar who will retire this summer after 42 years of service to Arbitron and its predecessor companies. Arshi will report to Owen Charlebois, president, Technology, Research and Development and will be based out of the Arbitron Research and Technology Center in Columbia, MD. Over the past 20 years, he has held various roles in the engineering and operations departments at Intel, most recently as GM/Manageability & Platform Software Division.
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RBR Radar 2008
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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Carnegie's Observation:
Stop Talking the Talk -
Start Walking the Walk
By engaging in the business environment that is now here - Digital Media. This is not a cheap shot but a wake up call. Last week I attended my umpteenth RAB and on a scale of 1 to 10 it was around a 4. I put it into perspective - the last 25 years I have seen five different Presidents at the RAB. A trade association president receives his or her marching orders from the board of directors and executive committee. The president's duty is then to execute the plan. Ok, lets look at this - executing a plan by a board of directors - if I am not mistaken the RAB board is made up in part by a number of CEOs running radio companies that are publicly traded, and they are having real tough times. The fish stinks at the head.
Carnegie note: If you dare, Read - Take control of our Radio Business see this entire Observation. Then go to www.RBR.com Media Center and view the webcast. It is all about Digital.
02/19/08 RBR #34
Localism comments solicited
The FCC's NPRM on enhancing broadcast localism has officially made it into the Federal Register under MB Dicket No. 04-233. The official publication date was 2/13/08, which sets the comment clock to a deadline of 3/14/08 and the reply comment clock to a deadline of 4/14/08. The proposed rule changes will strive "...to enhance broadcast localism and diversity, to increase and improve the amount and nature of broadcast programming that is targeted to the local needs..
RBR observation: This should be a fun one. While the goal of increasing localism is a noble one, this government-mandated effort is doomed to fail. For starters, who is to say that having access to programming from a distant source is not of local interest? Are the residents of Snakes Navel ID to be limited to the news and opinion generated by those in their local community? Are they to be limited to interviews with the local town council or rerun collections available at the one-bin DVD display at the local trading post? There is more in RBR.
02/19/08 RBR #34
Where will we find the next generation of engineers?
A new study that examines the number of engineering graduates coming out of our nation's engineering schools reveals a mixed picture of how prepared each state is for meeting the need for high-tech workers in the coming years.
02/19/08 RBR #34
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RBR Classifieds
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Hard finding that key person
to fill the important position at your organization? RBR Classifieds, Results with Service. Contact April McLynn at [email protected]
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