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Volume 22, Issue 64, Jim Carnegie, Editor & Publisher
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Thursday Morning March 31st, 2005
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Radio News®
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Political ad wars warming up
 Two organizations are trying to remove a prominent leader in the House of Representatives "...without Delay," and another organization is trying to drum up support for the administration's Social Security proposals. All three are taking their case to the public via ad flights in carefully targeted locations. Campaign for America's Future is making their case against House Majority Leader Tom Delay (R-TX) directly to the constituents who have been sending him to Washington for the past 20 years plus, the Texas 22nd Congressional District outside Houston.
Meanwhile, Public Campaign Action Fund is targeting three House Republicans - - Rob Simmons (R-CT), Tom Reynolds (R-NY) and Doc Hastings (R-WA) - - in an effort to get them to grease the wheels for Delay's exit from Capitol Hill. The group says the trio was selected for a variety of reasons. For example, Hastings is the new chair of the House Ethics Committee, which rebuked Delay several times last year but is widely seen as having been restructured in order to bring an end to what many Republicans characterize use of Ethics as a vehicle for partisan attacks. Meanwhile, the Club for Growth is targeting members of the Senate as it makes its case for Social Security reform. One target is Lindsay Graham (R-SC), who has earned CFG's ire by proposing a payroll tax increase. It is also going after two red state Democrats, Ben Nelson (D-NE) and Kent Conrad (D-ND). CFG is the hands-down winner when comparing the investment in the campaigns. It plans to invest 10M. The two attacks on Delay, on the other hand, are funded for only about 100K combined, according the New York Times.
Mixed signals on US economy
 A strong showing in Q4 2004 reported by the Commerce Department, combined with positive assessments of Q1 2005 economic activity have fueled a certain amount of optimism among analysts. However, the good news is has not cured measurable grumpiness among consumers, which was accompanied by a late March slump in retail activity.
According to the Associated Press, the Q4 2004 GDP annual rate growth came home at a positive 3.8%. It's expected to nose over 4% when Q1 2005 numbers are in, before slowing somewhat in Q2. One analyst said that although the economy was not sprinting, it was jogging along nicely. Job growth was said to be well above the break-even point in February and March.
Nonetheless, consumers were not happy about things, according to the Conference Board. Rapidly rising gas prices got most of the blame, but there was also an increase perception that jobs are hard to come by.
The retail situation was itself a mixed bag. An early Easter and relatively bad weather were blamed for dampening spring wardrobe updates, among other things, and gas prices were also fingered. However, although March 2005 is pacing behind February 2005, it is at the same time much improved over March 2004, bringing in almost 4% more cash this go-around.
Watchdog calls for diverse ownership
 Robert McChesney and Ben Scott of Free Press think new FCC Chairman Kevin Martin is trying to have it both ways - - they say the fact that Martin wants more family-friendly programming while at the same time backs further consolidation of media ownership are mutually exclusive goals. "The big media companies are risk-averse and market-sensitive, homogenizing and replicating low-cost, high-ratings content in a race to the bottom," they wrote, after noting the huge audiences drawn to edgy programming such as "The Sopranos" on pay cable and "Desperate Housewives" on broadcast network TV. "The concentration of ownership in the media industry in the past few years has resulted in a decline in media diversity at the very moment the number of channels is increasing," they argue. "Media consolidation has produced content and conduit giants, often under the same corporate roof. Independents and noncommercial programmers are almost totally excluded. The end result is that American consumers are left with more media channels offering more of the same content."
RBR
observation:
There is another side to the argument - - that if more independents were in the game, they'd be producing "The Altos," "The Tenors" and "The Basses" to compete with "The Sopranos," whereas the actual producers of "The Sopranos" may well focus their further attention elsewhere so as not to cannibalize their own program. We saw it in radio formatics - - in a nonconsolidated market, five or six owners may compete for the big AC or the big Country revenue pie, whereas competing in a more consolidated market frees them to be more experimental with what would otherwise be the also-rans in the big format fight. The Free Press theory is attractive to many, and to be fair, represents only part of the argument against consolidation - - but it has by no means proven to have any legs.
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April in Paris means DTV debut
 Actually, the last day of March marks the beginning of France's new free, over-the-air digital television service, which will take the available broadcast programming all the way from five to 14 channels. This is not insignificant, given that only a quarter of the country's TV households subscribe to MVPD services like cable or satellite, according to a Reuters report. Viewers will need either a digital television or a set-top down-converter box to receive the programming. The boxes are going for about 100 dollars (79 euros). One expected effect of the increased lineup is an abrupt slowdown in MVPD growth - - 14 channels doesn't sound like much to American ears, but for most French viewers it represents nearly a three-fold increase in channel availability overnight, and the number of channels available is expected to steadily increase over the next few years. Many of the new channels are expected to flop as they go up against entrenched incumbents, but at the same time, the incumbents are expected to lose advertising revenue. 31% of French households are expected to be digital-ready, one way or the other, by the end of the year, with about 50% getting there by the end of 2006 and 80% by 2009.
CC Radio LA VP/Market manager exits role
CC Radio LA co-Regional VP and VP/Market Manager Roy Laughlin has left the building to assume a consulting position with CC Radio. Greg Ashlock assumes the sole Regional Vice President responsibilities for the LA Trading Area.
Radio execs selected for AP Broadcast Board
Four radio industry leaders have been added this week to the Associated Press Broadcast Advisory Board at their annual spring meeting in Chicago. Ken Beck of Entercom, Rick Feinblatt of Greater Media and Carl Gardner of Journal Broadcast Group are the newest senior execs to be named to the Radio division board, which is comprised of 10 representatives from across the country. Additionally, Don Benson has been appointed to replace Jefferson-Pilot Communications' President of Radio Clarke Brown upon his retirement later this year.
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Adbiz©
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AMC Entertainment Regal Entertainment Group form National CineMedia
 AMC Entertainment and Regal Entertainment, two of the world's leading theater companies, announced they are combining their respective cinema screen advertising businesses into a new joint venture called National CineMedia. The new company will focus on the marketing and sale of cinema advertising and promotions products; business communications and training services; and the distribution of digital alternative content. National CineMedia combines the ops of Regal CineMedia, Regal Entertainment Group's media and new business development subsidiary, and National Cinema Network, AMC's cinema advertising subsidiary. The new company will provide the foregoing services to owner circuits AMC and REG, as well as other affiliate theatre circuits. National CineMedia will represent 11,200 North American screens (8,200 digital), with a reach of 450 million movie guests annually. Kurt Hall, co-chairman and co-CEO of Regal Entertainment Group and president and CEO of Regal CineMedia will be assuming the role of CEO of National CineMedia after a short transition period. National CineMedia will have its headquarters in Denver, with offices in New York City, Chicago, Detroit and LA.
DeWalt expands Hispanic market program
 Based on the success of its 2004 grass-roots Hispanic marketing program, which targeted Atlanta construction workers, DeWalt Industrial Power Tools announced the launch and expansion of the same program in three new markets: San Diego, Dallas and Orlando, in addition to returning to Atlanta.
The 2005 "Champions of the Trade" program will honor a total of 28 Hispanic construction workers, in four cities, who have been nominated for their outstanding commitment, dedication and accomplishments in their trade. Each week, one worker will be featured in weekly newspaper ads and radio capsules to pay tribute to their accomplishments. Additionally, each honoree will be awarded with a commemorative plaque and valuable assortment of DeWalt tools.
The 28-week program, to be launched by DeWalt's Hispanic AOR, EMG (Ethnic Marketing Group), will include an aggressive radio effort, radio remotes at selected retail outlets, a PR program, retail support, job hotline, and an impacting scratch-off game to win a 2005 Chevy Silverado 1500 Pick-Up Truck or one of over 2,000 prizes. Additionally, there will be seven interactive trade fairs in the above markets which will support the "Champions of the Trade" program.
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| Media Markets & MoneyTM |
EMF stays busy
 K-Love Network operator Educational Media Foundation has been continuing its program of snapping up stations all over the country. Two more deals have made their way into the FCC database, one in Arkansas and another in Michigan. In the bigger of the two, EMF will pick up KBGR-FM in Beebe AR, a standard commercial FM at 101.5 mHz. Ken Madden's Searcy Broadcasting stands to pocket 225K cash at closing, which along with a promissory note valued at 300K takes the total value of the deal up to 525K. The station, in an unrated portion of the state, will be converted to noncom status. The Michigan station is in Freeland, in the Saginaw-Midland-Bay City market, and it's already in the reserved band. However, WWZP-FM still needs to be built. EMF is getting the CP from the American Family Association for 75K cash. The Class A is licensedto broadcast at 90.9 mHz with 240w @ 213'.
Close encounter in Flagstaff
Serafin Bros. broker Glenn Serafin tells us that the keys have been handed over in the 1.7M deal sending KNOT AM & FM to Guyann Corp. The stations are located in the Prescott part of the Flagstaff-Prescott Arbitron market. Guyann already had a presence in Flagstaff with its KAFF AM & FM and KMGN-FM.
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| Washington Beat |
Can Dems pick up a seat in RI?
 We've heard that Republican Sen. Lincoln Chaffee (R-RI) may be in trouble. He's well to the left of most of his Republican colleagues in the Senate, but has steadfastly resisted all calls to trade in his elephant for a donkey, nor has he followed Sen. Jim Jeffords (I-VT) into the limbo land of the Independents. Now, the Associated Press is reporting that Ted Kennedy's son Patrick, a six-term member of the House of Representatives and one of the Rhode Island's two reps, is considering a challenge for the seat, up for voter referendum in 2006. The other rep, James R. Langevin, is said to have decided against a run for the Senate.
RBR
observation:
A strong Democratic candidate targeting a relatively rare Republican in a blue state could be a nice insurance policy for the Dems as they attempt to gain back lost ground in the upper chamber. Watch for strong national interest - - and national campaign dollars - - if this matchup plays out. |
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| Programming |
Miami Heat's Spanish flagship moves to WAQI-AM, temporarily
 The Miami Heat announced WAQI-AM Radio Mambi will serve as the Spanish radio flagship station beginning with the basketball team’s 4/5 game against the Chicago Bulls. Radio Mambi will broadcast games for the remainder of the regular season and the playoffs, except for the 4/14 game against the Philadelphia 76ers which will be broadcast on WQBA-AM. WQBA will return as the official Spanish radio station of the Miami HEAT for the 2005-06 NBA season.
WAQI is a sister station of WQBA and part of the Univision Radio
Network.
Superadio picks up BJ in the Morning
Superadio is syndicating Service Broadcasting's KRNB-FM Dallas's B.J. in the morning. BJ will be available as content only, letting affiliates plug in their own music as needed. |
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| Transactions |
$900K
KBRO-AM & KNTS-AM Seattle-Tacoma (Bremerton, Lakewood WA) from FTP Corporation (Bart Seidler) to Seattle Streaming Radio LLC (David M. Drucker, Penny Drucker). $50K escrow, $250K cash at closing, $600K note. Existing duopoly. [File date 3/4/05.]
$25K
KVAZ-FM Henryetta OK from Henryetta Educational Broadcasting Foundation (Carl Vanmeter) to South Central Oklahoma Broadcasting Inc. (Randall Christy, Mike Huddleston, Sharla Frederick). $5K escrow, $20K 15 days after FCC approval. Station is noncommercial. [File date 3/3/05.]
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| Radio Stocks |
Strong gains for stocks
Stock prices shot up as oil prices fell and the government's GDP report showed only modest growth - - dampening fears of inflation. The Dow Industrials rose 135 points for the day. The good news extended to radio stocks, with virtually all up.
Here's how stocks fared on Wednesday
| Company |
Symbol |
Close |
Change |
| Arbitron |
ARB |
$42.86 |
$0.31 |
| Beasley |
BBGI |
$17.77 |
$0.22 |
| Clear Channel |
CCU |
$34.31 |
$0.52 |
| Citadel |
CDL |
$14.04 |
$0.26 |
| Cumulus |
CMLS |
$14.28 |
$0.28 |
| Cox Radio |
CXR |
$16.83 |
$0.18 |
| Disney |
DIS |
$28.35 |
$0.45 |
| Emmis |
EMMS |
$19.47 |
-$0.07 |
| Entercom |
ETM |
$35.60 |
$0.36 |
| Entravision |
EVC |
$8.92 |
$0.06 |
| Fisher |
FSCI |
$51.30 |
$0.29 |
| Gaylord |
GET |
$40.40 |
$0.13 |
| Hearst-Argyle |
HTV |
$25.45 |
-$0.04 |
| Intl. Bcg. |
IBCS |
$0.01 |
$0.00 |
| Interep |
IREP |
$0.53 |
$0.07 |
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| Company |
Symbol |
Close |
Change |
| Jeff-Pilot |
JP |
$49.05 |
$0.64 |
| Journal |
JRN |
$16.79 |
$0.39 |
| Regent |
RGCI |
$5.54 |
$0.24 |
| Radio One A |
ROIA |
$14.37 |
$0.27 |
| Radio One D |
ROIAK |
$14.45 |
$0.30 |
| Salem |
SALM |
$20.70 |
$0.62 |
| SBS |
SBSA |
$10.29 |
$0.13 |
| Saga |
SGA |
$16.36 |
$0.29 |
| Sirius Sat |
SIRI |
$5.67 |
$0.29 |
| Univision |
UVN |
$27.28 |
$0.48 |
| Viacom A |
VIA |
$35.10 |
$0.45 |
| Viacom B |
VIAb |
$34.86 |
$0.56 |
| Westwood |
WON |
$20.28 |
$0.18 |
| XM Sat |
XMSR |
$31.52 |
$0.57 |
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__UNSUB__ to this email service.
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5 days left to revalidate
We will be implementing a new system upgrade - we need you to take a few moments to fill out the new form to ensure the delivery of your favorite Morning and Afternoon E-paper(s) and Monthly RBR/TVBR Magazine. We will be switching to the new system April 6th 2005 and all previous signup info will become invalid. So please hit the Revalidate Button and fill this out immediately to ensure delivery. Just click the button at the top of this announcement.
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Bounceback
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 We want to
hear from you.
This is your column, so send your comments to radionews@rbr.com
Responding to the annual Gender Analysis Study from the Mentoring and Inspiring Women in Radio (MIW) yesterday'
Hi, I'm one of the "Man's Domain" GM's from Jefferson Pilot's radio division. I think it's worth mentioning that Jefferson Pilot has only 5 GM's in our entire radio company. Yes, all 5 are men. Looking more carefully at our company structure, it's worth noting that JPCC's President is a woman (Terry Stone), and two of our three TV GM's are also women (Rita O'Neill in Charleston and Mary MacMillan in Charlotte). Of the eight existing GM positions at JPCC, 2 are held by women. That places our company at 25%. Compared to the other companies included in the study, that's a respectable percentage. Our TV percentage (66.3%) is higher than any radio company quoted in the MIW report, including top rated Entravision. Jefferson Pilot Communications Company is a compassionate, forward thinking, fair minded, high performance company and if you look at all of the numbers - human and financial - we can prove it.
Just a note from one of the guys.
Rick Jackson
Senior VP/WBT AM/FM/WLNK/JP Radio Syndication
(Editor's note: Jefferson Pilot has also pioneered the most successful female targeted and hosted talk station in the country at WLNK. No other female targeted talk station in the country can match WLNK's #3 market rank in Total Sales (Miller Kaplan/Charlotte Year End report for 2004 - 9,494,000). Additionally, two of the station's hosts, Sheri Lynch of
"The Bob and Sheri Show" and Pam Stone from the "Pam Stone Show," won national 2004 and 2005 Gracie Awards from AWRT - American Women in Television and Radio.
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NAB Daytime Planner
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The following brokers will be attending the NAB. Call or email to make your appointment in advance.
Cliff Gardiner, Clifton Gardiner &
Company, 303-758-6900,
Bellagio,
cliff@cliftongardiner.com
Frank Boyle, Frank Boyle & Co.,
LLC, Venetian Hotel,
203-969-2020, fboylebrkr@aol.com
John L. Pierce, John Pierce & Company LLC, Mirage Hotel,
859-647-0101, cell 859-512-3015,
jpierce@johnpierceco.com
Jamie Rasnick, John Pierce & Company LLC, Mirage Hotel,
859-647-0101, cell 513-252-1186,
jrasnick@johnpierceco.com
Dick Kozacko/George Kimble,
Kozacko Media Services,
Bellagio,
office 607-733-7138, cell 607-738-1219,
rkozacko@stny.rr.com
Elliot Evers, Media VenturePartners,
LLC, 415-391-4877,
eevers@mediaventurepartners.com
Larry Patrick/Greg Guy,
Patrick Communications,
Bellagio,
410-740-0250, larry@patcomm.com
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March Digital Print Magazine Now Available
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2005 Technology Odyssey...
The Changing Landscape
Ipods up to 4M sold over Christmas and radio doesn't have a problem?
Nexstar's Perry Sook goes exclusive One-On-One and is very vocal on why he is standing alone and tall against the Cable MSO's.
Brace yourself as media top gun Irwin Gotlieb tells all Radio & TV what he really thinks and if you don't like it - "Then change careers."
Read RBR/TVBR in 2 simple steps:
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2. You can then download the
March Issue of RBR/TVBR
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RBR Radar 2005
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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Monday Night Football" on the line
Resurgent ABC is playing rough with the NFL and it's unlikely that any new deal for primetime pro football will be announced anytime soon. As NFL owners met in Hawaii last week, Commissioner Paul Tagliabue reportedly told them that negotiations with ABC and ESPN, both owned by Disney, are still in flux. Meanwhile, resurgent ABC is playing rough with the NFL and it's unlikely that any new deal for primet! ime pro football will be announced anytime soon. Tagliabue reportedly told the own! ers that negotiations with ABC and ESPN, both owned by Disney, are still in flux. TVBR observation: NBC is the odd man out when it comes to pro football. After a debacle in trying to broadcast the XFL after losing its NFL contract, might NBC move back in to displace ABC/ESPN now that NBC Universal has a significant cable universe of its own - - USA, Bravo and SciFi? Now if Tagliabue will give a little flexibility to Monday night so exciting games happen maybe ABC would be interested. Face by the time you give mid-season many of the games that were picked in advance suck. So Tagliabue get flexible. As for NBC, they could use NFL and could replace ESPN with MSNBC. But money will be the factor not what is good for viewing. 03/30/05 RBR #63
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Positions Wanted
Hispanic Media Guru
Looking for the right opportunity to work with solid media company seriously pursuing the Hispanic market. 100% bi-lingual and cultural. Qualifications: outstanding record of revenue, financing, programming, production and entrepreneurship. Extensive rolodex. Strong values and work ethics. Confidentiality a must, please. hispanicmediaguru@hotmail.com
TV looking for
Radio Situation
Successful TV GM with excellent record of revenue, ratings and community performance seeks GM or Market Manager Position with solid broadcasting company. Presently employed in Television leadership, prefer western and southern portions of the country. More information call: 720-837-0337
See Radio Careers for more info.
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©2005 Radio Business Report/Television Business Report, Inc. All rights reserved.
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