Volume 21, Issue 77, Jim Carnegie, Editor & Publisher
Tuesday Morning April 20th, 2004

Radio News ®

Lawmakers take tough line on smut
Members of Congress hung tough on increasing indecency fines as they addressed NAB2004 in Las Vegas. But while that legislation seems to have smooth sailing ahead on Capitol, there is less certainty about what's going to be done with bills to force DTV must-carry and restrict satellite radio. Indecency is clearly a hot button with lawmakers, with no one questioning the FCC's crackdown or the current legislative effort to dramatically increase fines. Although the panelists in Las Vegas were all Republicans, the House bill passed overwhelmingly and the Senate bill is expected to do likewise in a couple of weeks. RBR observation: Realize that the majority of legislators on Capitol Hill - - all of the reps and about a 1/3 of all senators - - are resubmitting resumes to their constituents to be rehired for another two or six years. You will not find many that want on their resume "I defend indecent stuff" that will make people go nuclear come November. Nobody emails their representative to say they listen or even like the programming of Howard Stern. The only people who take the trouble to say anything are those who Hate the likes of the Stern's. Congress look at the ratings and see in them a large segment of the population their constituents that actually like the Sterns, and while doing so, try to work in some consideration of the constitutional implications of this issue. Defending anything considered indecent and ugly, unrewarding, and close to Election Day has caused the vast majority of both parties to take the path of least resistance.| Full Story Click Here |

Widely-divergent coalition
files pro-Bono petition
A cross-discipline group comprised of television networks, broadcast ownership groups, industry organizations, watchdog groups and entertainers has come together to protest the FCC's finding of indecency in regards to the Bono/Golden Globe "f-word" incident. Davis Wright Tremaine attorneys Robert Corn-Revere and Ronald G. London are counsel for the group. "The Commission's decision that the isolated use of an unplanned and unscripted expletive is both 'indecent' and 'profane' represents an unconstitutional expansion of the government's intrusion into broadcast content." RBR observation: TV talk shows and soap operas routinely air material that is as sexual and titillating as anything the shock jocks did in years past. Double standard? Bet your sweet vertical smile there is. Bravo to these groups signing on to the document: Fox Entertainment Group, Viacom/CBS, Beasley Broadcast Group, Citadel Broadcasting, Entercom Communications and Radio One. Read inside on how the petitioners have five ideas how the Commission should rule on this. We like #5: "..Seriously examine whether the system of government regulation of content is fundamentally incompatible with the First Amendment of the Constitution."
| Full Story Click Here
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Chairs named for Responsible Broadcasting Task Force
Following up on the NAB's recent summit in Washington, two broadcasters have been named to co-chair the industry's Responsible Broadcasting Task Force. The co-chairs will be LIN Television President Gary Chapman and Susquehanna Radio President David Kennedy. NAB President Eddie Fritts said other members will be named soon.
| Full Story Click Here
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Broadcasters work on Homeland Security
Department of Homeland Security (DHS) Secretary Tom Ridge addressed members of the Radio Television News Directors Association (RTNDA) at its meeting parallel to NAB2004 in Las Vegas, praising the efforts of its membership to keep the public informed, as well as their upcoming participation in a series of emergency drills. "Every single day since September 11, 2001, you have kept America informed about this century's greatest threat to the world community," said Ridge. "Whether getting ready for work, going to school or just tuning into a favorite broadcaster any hour of the day, America has listened and learned about international terrorism from you." Ridge said that 10 regional exercises are in the works which will included RTNDA members. Designed to strengthen emergency capabilities, a key goal will be assuring the rapid, accurate dissemination of information during an emergency. The National Academy of Sciences is also participating in the exercises.

Indecency measures may hitchhike on appropriation
The versions of the Broadcast Decency Act of 2004 in the House and the Senate have two things: overwhelming support, and significant differences. Both are primarily intended to drastically hike the FCC's fining maximum from $27.5K.
RBR observation: Will McCain ride home a rider?
| Full Story Click Here
| RBR Observation |

Winfrey honored, Fiorina
challenges broadcasters
Oprah Winfrey thanked former WLS-TV GM Dennis Swanson for his confidence in hiring her and shared other memories of her climb to the top of the industry as she received the Distinguished Service Award during NAB2004. As keynote speaker, Hewlett-Packard CEO Carly Fiorina spoke of the challenges that lie ahead for broadcasters as the digital age transforms the industry, creating opportunities as well as pitfalls. But in an age of individual control of media, she said broadcasters will still be needed. "We need more perspective and context," she said.


From the NAB...

Rumor mill churn out of NAB - Vegas
No confirmation but we have heard a rumor late last night that President/CEO Eddie Fritts will retire very soon. The man from Mississippi at the helm of NAB over twenty years but may be getting a little shove to leave by Citadel President and NAB Board Chairman Phil Lombardo and his board allies. TVBR reported, 01/27/04 TVBR #17 - Strife hits NAB board last January NAB board meeting when Lombardo ruffled some feathers putting him at odds with some Radio Board members and straining relations with Fritts. Lombardo pushed through approval of a special payment of $400,000 to cover legal expenses of the Network Affiliated Stations Alliance in fighting against an increase in the 35% national TV cap. RBR observation then: Good for Lombardo pushing through approval of a special payment of $400,000 to cover legal expenses the Network Affiliated Stations Alliance. Next time, and there will be a next time, both boards best get on one Group Fly-In page. Like now! - RBR observation today: When and non-profit association is referred to by Sen. McCain, "NAB is a subsidiary of Clear Channel" - well you have to just wonder on these rumors. Again, RBR has No confirmation but we will sniff around in Vegas.



Conference Calls, Q2 2004

Confer confirmation: Calendar filling up
Some more publicly-traded companies have announced the times and dates for their second dog-and-pony show of the year. All will come after this week's lineup, which includes Arbitron and Journal today, Sirius and Belo tomorrow and Viacom on Thursday. Salem is getting together with analysts and other interested parties Monday, 4/26/04 at 10:00 AM Eastern. The Religious radio specialist previously issued guidance calling for net broadcasting revenues in the $41.7M-$42.2M range. It expects to blow those predictions out of the water with a posting of about $43M. Cumulus Media, which has the second largest radio portfolio in the US in terms of stations, is going to meet the public Monday, 5/3/04. It'll be held at 5:00 PM Eastern. On Thursday, 5/6/04, XM Satellite Radio will hold forth on Q1 results. It's conference call is slated for 10:00 AM Eastern. As usual, RBR will listen in so you don't have to!


RBR News Analysis

Fight or flight? Two groups, two reactions
Animal behaviorists define two basic reactions to danger: fight or flight. While there virtually unlimited possible reactions to a given threat, most of these reactions can be easily placed in one category of the other. In the current indecency flap, Clear Channel has quite obviously chosen to flee. Viacom, on the other hand, looks like its ready to stand and fight. Not our words exactly but we agree with the New York Post said last week. Talk has it that the FCC is about to hit Viacom/Infinity with an estimated $1.5M fine for material aired on its stations by in-house talent Howard Stern. Clear Channel, which has already received its hit for Howard, has dropped the edgy morning icon from all of their stations - - a total of six - - after suspending him some time earlier.
RBR Observation: Would Randy Michaels have been capable of replicating Hogan's performance? We think not. | Full Story Click Here |


Adbiz ©

Scarborough adds program genre viewer info
Scarborough Research announced it has added TV program genre viewer and and VOD viewing to its study. Clients can get info on specific show-genre preferences and cross reference them with a host of lifestyle choices. Beginning with the first release of the 2004 Scarborough database (this month), in-depth qualitative info about consumers who watch different types of shows-from the many versions of reality (dating, game shows, documentaries, adventure, talent, etc.) to music videos and local news-will be available to help TV stations, cable systems and marketers better target their audiences and customers. | Full Story Click Here |

Research completed on Unicast's
video commercial format

Final results based on five studies conducted by Dynamic Logic on the "Video Commercial" from Unicast, were announced. Aggregate results from the Video Commercial campaigns from AT&T, Honda, Pepsi, Vonage, and Warner Brothers, showed that, on average, these campaigns lifted brand and persuasion metrics 5-11 times greater than Dynamic Logic's MarketNorms. In addition to measuring the Video Commercial's effect on brand and persuasion metrics for advertisers, consumer response to the online advertising format, itself, was evaluated. | Full Story Click Here |


Media, Markets & Money tm

Two guys, a Gill and a radio group
Rhattigan Broadcasting will instantly become a new radio group once it closes on a $3M deal for stations in four unrated Texas markets. Guy Gill joins Michael and Jerome Rhattigan in the deal with seller Equicom, headed by Randall B. Hale. Rhattigan will get a total of 12 stations, including two AMs/two FMs in Plainview, one AM/two FMs in Big Spring, one AM/two FMs in Uvalde and an AM/FM combo in Eagle Pass. Plainview is in the panhandle between Amarillo and Lubbock (closer to the latter); Big Spring is due south of Lubbock but closer to the Odessa-Midland market to its west; Eagle Pass is a Rio Grande town on the Mexican border; and Uvalde is to its east, roughly between Eagle Pass and San Antonio. Equicom began life as TexRock, and segued to Texas Eagle Radio Network before adopting the Equicom moniker in 1998. A 2000 deal to sell these stations, along with a Burnet TX AM-FM combo, to Cornerstone Radio Holdings for $6.5M never came to fruition (RBR 8/7/00).

Would Hallmark be a crowning touch
for US conglomerate?

Colorado-based Crown Media is said to be looking for suitors for its international Hallmark Cable Channel, according to the Reuters London UK bureau. Speculation on just who is on the list of prospective customers is anchored firmly by conglomerates operating in the US. The short list includes Liberty Media, which due to its stake in Crown is thought to have the inside track. Other companies mentioned include Viacom, Time/Warner and News Corp. Reuters said analysts were reluctant to put a pricetag on the operation due to lack of comparable prior deals. It noted that niche cable nets in the US have fetched anywhere from $8- to $30-per-subscriber.


Washington Beat

Michael Powell: One man's opinion
Tom Shales, the Pulitzer Prize-winning TV critic for the Washington Post, wrote a little aside about FCC Chairman Michael Powell last weekend which most of you out there in the real America probably didn't get a chance to see. So here's your chance. Shales was discussing the Showtime original series "Queer as Folk," which is kicking off its fourth season in the content-friendly environs of subscription cable, which even the most rabid indecency reformers seem to consider out of reach. "It's not likely to enchant your Aunt Millie," wrote Shales, "or, for that matter, Michael Powell, the power-mad FCC chairman who is trying to 'clean up' television as 101 would-be reformers have tried before him." Just thought you'd all want to know.


Engineering

iBiquity Digital makes news at NAB
From NAB2004 in Las Vegas, iBiquity Digital announced Entercom will convert its Portland and Denver Stations to HD Radio and showcased the first transmission of real-time Traffic Data using HD Radio technology. Entercom has signed licenses to implement HD Radio technology at its five FMs in Portland and its three in Denver: KGON (92.3), KKSN (97.1), KNRK (94.7), KRSK (105.1) and KWJJ (99.5) in Portland and KALC (105.9), KQMT (99.5) and KOSI (101.1) in Denver. With the addition of these eight stations, Entercom has licensed 15 stations to use HD Radio.
| Full Story Click Here
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RCS Mobile scores "short code"
for text messaging
From NAB2004: RCS Mobile has announced the exclusive availability of the SMS short code 22022 and other memorable short codes to radio station programmers in the US. "For radio, short codes open up a new avenue of messaging to and from its listeners," commented Philippe Generali, RCS President. "We recently obtained sole rights to 22022 and other memorable short codes so stations can offer a simple way to get instant input from the thousands of mobile phone users in every city in America." In 10/03, the CTIA (Cellular Telecommunications and Internet Association) formed the CSCA which is the Common Short Code Association. It's a collective effort by the various carriers who are involved to offer the same five digit numbers to all third parties that want to run text messaging applications (instead of dialing the whole phone number). Nick Latropoulos is the Director of RCS Mobile, which is ramping up its US launch now.


Programming

ABCRN debuts Scott Shannon's Oldies Channel
ABC Radio Networks announced the debut of Scott Shannon's True Oldies Channel, the newest 24/7 music format they syndicate. The format is dedicated to honoring the greatest rock-and-roll music ever recorded, with a particular emphasis on the "Heart and Soul" of Rock and Roll music, the years 1958-1964. "This is a great opportunity for radio stations all across the country to tap into the programming genius and on-air talent of Scott Shannon," said Traug Keller, president of ABC Radio Networks. "At a time when the traditional radio industry is faced with competition from satellite radio and internet radio, the best way to fight for share is to put outstanding personalities and programming genius to work. That is what we are providing with Scott Shannon's True Oldies Channel." Legendary broadcaster Shannon is the PD and host of the True Oldies Channel. Last year he was inducted into the NAB's Radio Hall of Fame. Shannon is also part of the morning team "Scott and Todd in the Morning" on WPLJ-FM NY.

Liberty Broadcasting adds JD Balart's
"American Radio Journal'
IDT Media announced that Jose Diaz-Balart, co-anchor of both WTVJ's (NBC 6) news at 5:30 pm in Miami and Telemundo's national morning new program "Hoy En El Mundo," will host JD Balart's American Radio Journal, a daily call-in talk show on the Liberty Broadcasting Network. American Radio Journal will cover politics, news and international relations, popular entertainment and culture. Guests will include notable Washington, D.C. insiders, and today's top newsmakers. The show's format is designed to encourage lively discussion. The show will be broadcast live M-F from 12:00 noon to 2:00pm ET and will be available for rebroadcast 5:00pm-7:00pm ET.


Sales

From RBR's March Solutions Magazine:
Is rate cutting a problem in your market?
Says Ed Brantley, Citadel/Knoxville:
No. I think the top three in the Knoxville market have kept rate integrity for the past three or four years. And it's evident that this market's rate stands pretty well. We're proud of that. It's not like there's something going on, because I don't have contact with these other guys-I've never met one of them. But just over the past five years or so, there hasn't been a lot of change in the top three or four stations. So because of that, I think the rates have held pretty strong.


Transactions

$5,800,000 WMFG AM & FM/WTBX-FM, WNMT-AM/KMFG-FM & WUSZ-FM Hibbing MN (Hibbing, Nashwauk, Virginia MN) from Heartland Communications Group LLC (Thomas L. Bookey) and Virginia Broadcasting Co. (Frank Befera) to Midwest Communications Inc. (Duey E. Wright). $100K hold-back escrow, $100K to various non-competes. Existing superduopoly. Virginia Broadcasting is the seller for WUSZ-FM only. [File date 3/18/04.]

$225,000 WMGR-AM Bainbridge GA. 100% of Decatur Broadcasting Inc. from Gordon Van Mol and Dewey Robinson (each 50% to 0%) to Charles C. Voyles (0% to 100%). $25K escrow, balance in cash at closing. [File date 3/18/04.]


Stock Talk

Good, bad or indifferent?
At the end of the day, radio stocks were about what they were at the beginning of the day - - on an aggregate basis. However, the break-even bottom line was the result of some stocks registering relatively hefty drops balanced against a longer list of listings with more modest gains. Nonetheless, we are pleased to note that International Broadcasting was able to hold tough at three cents a share.


Radio Stocks

Here's how stocks fared on Monday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

$39.35

+$0.12

Jeff-Pilot

JP

$53.67

-$0.98

Beasley

BBGI

$18.10

+$0.29

Journal Comm.

JRN

$19.44

+$0.12

Citadel CDL $19.00 +$0.36

Radio One, Cl. A

ROIA

$20.00

+$0.19

Clear Channel

CCU

$44.01

+$0.36

Radio One, Cl. D

ROIAK

$19.97

+$0.21

Cox Radio

CXR

$22.06

-$0.32

Regent

RGCI

$6.89

+$0.10

Cumulus

CMLS

$21.65

+$0.43

Saga Commun.

SGA

$19.23

-$0.55

Disney

DIS

$24.95

+$0.05

Salem Comm.

SALM

$29.70

-$0.39

Emmis

EMMS

$24.71

+$0.55

Sirius Sat. Radio

SIRI

$3.96

+$0.20

Entercom

ETM

$47.57

-$0.04

Spanish Bcg.

SBSA

$9.25

+$0.08

Entravision

EVC

$9.40

-$0.10

Univision

UVN

$34.89

-$0.05

Fisher

FSCI

$50.55

-$0.90

Viacom, Cl. A

VIA

$41.16

+$0.54

Gaylord

GET

$29.60

-$0.28

Viacom, Cl. B

VIAb

$40.99

+$0.60

Hearst-Argyle

HTV

$27.28

+$0.03

Westwood One

WON

$32.18

+$0.04

Interep

IREP

$2.12

unch

XM Sat. Radio

XMSR

$27.44

+$0.12

International Bcg.

IBCS

$0.03

unch

-

-

-

-


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Upped & Tapped

Mazzarella joins
Interep as CIO
Interep announced that Jim Mazzarella has joined the company as Chief Information Officer. He previously was Corporate Vice President, Integration & Shared Services at Interpublic in NYC. In his new position at Interep, he will oversee internal technology systems and develop long-range strategies. "Jim is one of the advertising industry's most experienced and successful technology executives and we are thrilled that he is joining our team," said Marc Guild, President, Interep's Marketing Division. "His skills as a leader and innovator will enable him to step right in and take our industry-leading technology, including our exclusive RadioExchange electronic invoice system, to an even higher level of value to end-users." Jim is also chairman of the technology committee of the American Association of Advertising Agencies, and served the White House General Industry Council on Year 2000 as an advisory member.


Stations For Sale

AM Station For Sale
Owner Financing Available
300,000+ Market in Southeast
Excellent Opportunity for owner-operator with strong radio experience
(843) 884-3590


April Digital Magazine

Complimentary Report
P&G's Jim Stengel talks reality of today's advertising world.
Accountability Part II:
They are at it again.

Better check your Main Studio & Public File... This report has what you need to know.

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

AFL-CIO targets Clear Channel
over executive pay
The AFL-CIO has picked ten public companies in its annual campaign against what it views as excessive executive pay packages - - and one of this year's targets is a broadcasting company, Clear Channel Communications. Editor's Note: Naples, Florida Is Calling - How radio is killing itself from the inside out. Senior Management is killing this business from every angle. These selfish leaders are lining their pockets and the pockets of Wall Street and the legal community without any consideration for the future of the medium, the people who work in it. This is not a commentary from some old fart longing for the good old days where WABC had more listeners than the population of most major cities. This is from someone who has been to the front line, and doesn't like what he is seeing there. Read the entire perspective on Naples, Florida Is Calling in the May RBR Solutions Magazine, page 3. 04/19/04 RBR #76

RBR Intelligence Report
TV Problems Won't see change
this year but look out '05
At the top of the hit list TV's potential problems and some solutions are: the soon upfront buys, Nielsen, TiVo and DVR/PVR's and here is the RBR take quick bullet points what you need to know. RBR observation: One thing for sure TV likes Nielsen as much as Radio likes Arbitron and PPM. The ones that need to break bread are Aribtron and Nielsen over lunch. And yep, Nielsen points the 'Finger' at Fox for its NYC / LPM problem. 04/19/04 RBR #76

Free TV running on all cylinders Radio CYA or partner up
CBS-TV Big Daug - Les Moonves observation or posturing is what RBR entitles Moonves Law stating - CBS's attack success this fall - Radio! Moonves Law: "With 183 radio stations that 2 weeks before the fall season kicks off we will be running commercials promoting CBS TV programming every hour on the hour to promote their shows. RBR observation: Choose your local television partner and rip this one page of Moonves play book for the fall because next year as the game will change. 04/19/04 RBR #76

Air America coming
back on in Chicago
Armed with an order from a New York judge, Air America should be back on this air at Multicultural's WNTD-AM Chicago. The court granted a temporary restraining, although the order does not apply to KBLA-AM Los Angeles, where Multicultural also pulled the plug on Air America. Editor's note: It would be nice to see the lease between the parties. Going to court doesn't seem to be a logical way to hold an affiliate's feet to the fire if it is Air America's desire is to build a true and pure radio network. Last we heard it was called good affiliate relations. For argument sake, say this was the last thing you read about Air America - going to court for custody. Now what is the next question you would ask yourself? 04/16/04 RBR #75

FCC taking a closer look at IBOC
The FCC, back in October of 2002, gave its blessings to iBiquity Digital Corp. as the standard for digital radio in-band, on-channel (IBOC) broadcasting, and provided for interim use of that system. In so doing, it left many loose ends, and a new combination Further Notice of Proposed Rulemaking (FNPRM)/Notice of Inquiry (NOI) has been issued on the topic. Editor's note: Comments are being solicited on a number of FNRPM topics so look see. 04/16/04 RBR #75

TVB conference still
running on all cylinders
Continues its tight association with the annual New York Auto Show with over 1100 TV execs breaking bread with important folk in the automotive industry, advertising and media buying companies and national brand managers. Editor's note: Vital points to book mark if you weren't there and if you were best focus on thse points: Upfront - TiVo and DVR/PVR's - Nielsen. If you missed it now read it. 04/16/04 TVBR #75

CBS's Les Moonves
confident of next TV season
"There are things wrong with one or 2 networks - thankfully we are not one of those 1 or 2,".. His spin on the upfront continued too. "This is the golden age of drama" of course CBS adds CSI New York in the fall. Just think if CBS also had Law & Order -"we'd be unbeatable." NBC had to buy Universal to protect themselves from CBS buying it. Editor's note: Moones secret weapon they have for the fall season - Radio. He stated that they have 183 radio stations that 2 weeks before the fall season kicks off will be running commercials promoting CBS TV programming every hour on the hour to promote their shows. Ta-Dum!
04/16/04 TVBR #75

Air America yanked off the air
in Chicago, LA
Just two weeks after launch, the new liberal talk network Air America has been yanked in LA (KBLA-AM) and Chicago (WNTD-AM) and replaced by Spanish programming.
04/15/04 RBR #74

First time buyers:
You're on your own, Part 5
warning to first-time buyers and people who want to expand from one station to a group is to not get so eager that they buy something which may have cash flow, but they pay a ridiculous multiple.
04/15/04 RBR #74


General Manager
Needed at the NEW WINX/Shore Country 94.3, Easton, on Maryland's Eastern Shore, just minutes from Annapolis. WINX needs a special creative radio mind from a real radio General Manager. If you can:

1) Build and manage a strategic programming and sales initiative
2) Recruit and train sales staff
3) Positive leadership qualities
4) Agency and direct sales experience and a track record to prove it
5) Maintaining ratings dominance and maximize sales effort

Then Fax # 973-746-9057
or E-mail Resume and battle strategy to [email protected]
Aggressive salary opportunity and equity for qualified applicant.

Editor's Note: This is an excellent radio people company with the radio spirit. Do you see the word equity here.

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