Radio News ®

ABC looking at tough times
Analysts at CIBC World Markets say that the shakeup at ABC Television Network may be a welcome development for investors. However, a disappointing ratings season, which is tracking toward a 9% shortfall in viewership guarantees, has the potential to cost the company over $130M ini make-goods. Otherwise, they say, parent Disney is in the midst of a period of general improvement. Nonetheless, the problems at the network are putting a projected break-even target of FY 2005 in jeopardy. CIBC notes the hitless nature of ABC's current schedule. nevertheless, CIBC wrote, "...we don't believe ABC management had the wrong programming strategy..." Maybe it isn't the wrong strategy, but if that's the case it obviously needs some more time in the oven.

Hicks getting out of Clear Channel?
A British publication, MediaWeek UK, is saying that US money man Tom Hicks is getting ready to retire next year, and that before he does so he'll likely spin off his $1.5B stake in US media giant Clear Channel Communications. The sale is not expected to have any affect on the balance of power in the media businesses in which the company operates. It's primary business, of course, is radio, augmented by a presence in television, outdoor and talent and venue management. The stake, which amounts to 6% of the company's total value, is expected to attract mutual funds, insurance companies and other institutional investors, and is not seen as a likely target for other media companies.

Looking ahead at Belo
Belo Corp.'s television division is expecting mid- to high-single digit growth for Q2 2004, based on current pacings. About $4M-$5M of that is expected to come from the hot political category. Other gains for the year are expected to come out of a "new product" initiative, which was implemented in two markets last year (Phoenix and San Antonio). The products are locally-produced and oriented programs, three of which were kicked off with almost instant profitability, combining low production costs with an instant surge in air inventory. Belo intends to launch similar ventures in other markets. | Full Story Click Here |

From the NAB...

2004 NAB Crystal Radio Awards presented
The NAB has named 10 winners of the NAB Crystal Radio Award competition. Established in 1987, the NAB Crystal Radio Award recognizes radio stations' efforts to improve the quality of life in their surrounding communities. Selected from a pool of 40 finalists, the following 10 stations were given the award: KDFC San Francisco, CA, KFOG San Francisco, CA, KFOR Lincoln, NE, KSTP-FM Minneapolis, MN, KSTZ Des Moines, IA, KTCZ Minneapolis, MN, WDEL Wilmington, DE, WDRV Chicago, IL, WLUP Chicago, IL, WSYR Syracuse, NY. Photo: Back Row: KTCZ, Dan Seeman, Vice President of Marketing/Operations; WDEL, Pete Booker, President/General Manager; WDRV, Jerry Schnacke, Vice President/General Manager; KFOR, Rolland Johnson, Chairman/CEO, Three Eagles Communications.Front Row: KFOG, David Kennedy, President - Susquehanna Radio; KDFC, Bill Lueth, Operations Manager; WLUP, Cris Ohr, Vice President/General Manager; WSYR, Jim Lerch, Program Director; KSTP-FM, Leighton Peck, Program Director. Not pictured: KSTZ.

Upbeat convention wraps up today
The upbeat buzz at NAB2004 in Las Vegas has been borne out by the attendance tally. 'This year we had a great bounceback," said NAB President Eddie Fritts, reporting that 97,544 had attended the convention. That's up from 88,000 last year, though still below the peak years when attendance topped 100,000. This year's convention concludes today. | Full Story Click Here |

Quello still much loved by broadcasters
This week's NAB convention may have set a record for the most birthday celebrations for a single individual. We were aware of three 90th birthday salutes to former FCC Commissioner Jim Quello, with hundreds of broadcasters offering congratulations to the long-serving public servant, who was a broadcaster himself before his 23 and a half years on the FCC. Quello's birthday was celebrated at events by the Michigan Broadcasters Association, the Broadcasters' Foundation and attorney Erwin Krasnow.

Conference Calls

Sirius reports strong Q1; subscriber base up 35%
Sirius CEO Joe Clayton continues to turn Sirius Satellite Radio around, improving revenues by 88% over last quarter and upping the subscriber base by 35%. At the close of Q1, Sirius had 351,663 subscribers-a net subscriber addition of 90,602 during the quarter, a 138% increase over the net subscriber additions. Sirius continued to score gains in the retail aftermarket channel, fueled by strong post-holiday activations, increased product availability, and increased awareness. During the quarter, the company added more than 65,500 subscribers from the retail channel, 154% more than were activated in Q1 '03. Wal-Mart has now been added to the list as well. Sirius added over 24K subscribers through its automotive, boating and trucking relationships. Recently, exclusive automotive partner DaimlerChrysler announced an extensive factory install program for beginning with 11 2005 vehicle lines. | Full Story Click Here |

Things looking up at Belo
Yet another media company beat expectations in G1 2004 - - Belo Corp., which makes most of its money in television and newspapers, registered gains of five cents a share, amounting to a 36% surge into black ink territory. As has been the case for many, a presence in the political battleground states provided a shot in the arm.
| Full Story Click Here |

Adbiz ©

More on AHAA study on marketing to Hispanics
From the AHAA conference in Miami: Growth in Hispanic advertising has outpaced that of the general market by four times since 2000, according to a new study released today by the Association of Hispanic Advertising Agencies (AHAA). Hispanic print and television media combined now garner more than 5% of national corporate ad budgets. | Full Story Click Here |

AHAA issues more side-by-side
Hispanic marketing comps
More from the AHAA conference in Miami: The first-ever side-by-side comparison of actual measured media expenditures for America's top 250 corporate advertisers was released by the Association of Hispanic Advertising Agencies. The list provides comparisons among the top 250 advertisers, ranked by combined spending in general market and Hispanic market television and print media, to reveal the percentage of overall spending invested in these segments of Hispanic media. Of the 250 companies on the list, 61 companies are spending nothing in Hispanic print and TV while 49 are spending less than 1% in these outlets. | Full Story Click Here |

Campaign ads tested with brain sensors
The NY Times reports political consultants are testing subjects' blood flow to their brains in an effort to measure campaign ad effectiveness. The subjects lay inside an M.R.I. machine, watching commercials playing on the inside of his goggles as neuroscientists from UCLA, measured the blood flow in his brain. Excerpts from the story: | Full Story Click Here |

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Washington Beat

Ratings & Research

Transactions

$3,000,000 KOTB-FM Salt Lake City (Evanston WY). 100% of Rocky Mountain Radio Network Inc. from Millcreek Broadcasting LLC to Bustos Media Holdings of Utah.

$150,000 WSRA-AM Albany GA from Lifeline Radio Corp. to Agape Life Ministries Inc.

$50,000 KJMP-AM CP Fort Collins-Greeley CO (Pierce CO) from Jo-Mor Communications Inc. to Radio Frontier Broadcasting LLC.

| Full Details Click Here |

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