Radio News ®

is out, but still on board with Time Warner. He just doesn't call the shots. Programming rule #101: Those who compete against other stations know that the best way to beat the competition is have them implode from the inside. Next! | Full Story Click Here

Pension fund complains about Clear Channel
Clear Channel Communications shareholders gather in San Antonio today for their annual meeting. And while the re-election of company directors and recertification of its auditor are assured, the vote won't be unanimous. CALPERS, the giant pension fund for California state employees, announced that it is withholding votes from five directors and voting against ratifying Ernst & Young as auditors. The pension fund claims Clear Channel has a corporate governance problem because Ernst & Young has been paid to do non-audit work for the company and it doesn't like that two directors, including company co-founder Red McCombs, have business dealings with the company. RBR observation: We won't pass judgment on the auditor issue, but the protest vote against Red McCombs seems rather silly. He is co-founder of the company and its second largest shareholder. He and his family own more than a billion dollars worth of Clear Channel stock. They're also major real estate owners in San Antonio, so it's hardly surprising that the company would have them as one of its many landlords.
| Full Story Click Here |

Tom Hicks resigns from Clear Channel board
Just a day before he was to be re-elected for another year at today's annual meeting, Clear Channel Communications announced that Tom Hicks had resigned from the board, effective last Friday (4/23). "Tom has served Clear Channel and its shareholders with great distinction and we thank him for his service. We wish him the best in his future endeavors," said CEO Lowry Mays in a brief statement. Hicks' stepping down was not a complete surprise, since he'd announced last month that he was retiring next year as head of the Hicks, Muse, Tate & Furst investment firm (3/9/04 RBR Daily Epaper #47). Since then there have been rumors circulating that Hicks, Muse plans to divest its sizeable stake in Clear Channel, acquired when it merged AMFM into Clear Channel in 2000.

Entercom sees improving radio ad market
Entercom CEO David Field told analysts yesterday that the market for radio advertising is clearly improving. Even so, his second quarter guidance of 6% same station revenue growth (the same as Q1) was less than The Street had expected, so the company's stock slipped in Tuesday's trading. According to Field, both demand and pricing are improving. Later in the conference call he also said that some competing radio groups are doing a better job of holding back inventory and keeping pressure on prices. Field had previously complained about other broadcasters cutting rates to move inventory.

Clear Channel tries to duck Elliot fine
Clear Channel, noting its recent good behavior, its recent contributions to the US Treasury on behalf of Bubba the Love Sponge, and other efforts to clean up its act, is asking the FCC to forgive the $247.5K transgression of its WWDC-FM Washington personality Elliot in the Morning. The incident in question took place 3/13/03, well before the whole indecency brouhaha was ratcheted up to its current white hot status. However, it was months after the spike in public and Coppsian outrage inspired by the Summer 2002 Opie & Anthony incident. Elliot's flight of indecency was special in a couple of ways. First, it was simulcast on stations in Richmond and Salisbury-Ocean City. Second, it was clipped and made into a promo, so each of those stations aired it three times apiece. The $247.5K total is the result of multiplying the statutory fine limit of $27.5K by a factor of nine.

Conference Calls, Q1 2004

Entercom delivers on its promises
Entercom gave Wall Street a heads-up two weeks ago that Q1 would come in better than previously expected (4/13/04 RBR Daily Epaper #72) and yesterday it delivered on that promise. Revenues were up 7% to $87 million and net income per share gained 28% to $0.23. Same station revenues were up 6% and operating income 10%. The quarter was led by strong growth in Boston, Buffalo, Rochester and Sacramento, said CEO David Field. In fact, company officials said Entercom stations posted growth in every market, although one, which was not identified, was barely up.

Adbiz ©

Qtopia releases Gay & Lesbian media usage stats
Interep's recently-announced marketing partner Qtopia Media, which specializes in the gay & lesbian market, released initial findings on media usage of gay and lesbian consumers in major metros. Survey results show that G&L consumers are avid users of both mainstream and gay-themed media. Strong showings for both radio and local gay newspapers confirm that "spot" media work well to penetrate a metro's gay community. In addition, the use of local media is particularly efficient when targeting gay & lesbian consumers since the gay population tends to be more geographically concentrated.
| Full Story Click Here |

Murdoch sees smaller rate increases
for upfront
News Corp CEO Rupert Murdoch said in a briefing at a Milken Institute conference he expects the television networks would see smaller price increases for the upfront this year: "There were pretty dramatic increases a year ago. I think it will be a bit smaller this year. Not because the market is a lot softer, but because the market is fragmenting with the rise of cable channels." Murdoch also said that the broadcasters were having trouble finding hit programs to prevent a ratings slide. "If you have a very successful program, that is more valuable than ever, because there aren't that many of them, whether it is the Oscars or the Super Bowl or American Idol or CSI. There are a few programs out there that have still got very large audiences, to which the money gravitates."

Dairy Queen launches new
marketing strategy, campaign
Dairy Queen is undergoing a major shift in marketing strategy designed to strengthen its leadership not only as the premier treat destination but also to bring attention to new and existing hot food items. New strategic marketing initiatives include the company's first-ever national campaign launched in April with new creative and food and beverage menu additions. All of this builds on a strong sales performance in 2003 and with same-store sales up 10% already year to date. | Full Story Click Here |

Subaru puts account in review
Subaru is readying a review for its $140M account. The incumbent is IPG's Temerlin McClain. The reason? A transition to a premium global brand. Temerlin will be invited to participate in the review.

Verizon Wireless keeps McCann Erickson
McCann Erickson NY has reportedly won creative on Verizon Wireless' $300M ad account. The decision comes after final presentations that also included Arnold, Boston. McCann has been the temporary agency on the account since Verizon split with Lowe earlier this year. Zenith Media continues buying for the account.

Media, Markets & Money tm

Washington Beat

Programming

Transactions

$1,100,000 WKNX-AM Saginaw-Bay City-Midland (Bay City MI) from Frankenmuth Broadcasting Inc. (John W. Blehm) to Meredith Corporation (Kevin P. O'Brien et al). $55K escrow, balance in cash at closing. Crossownership with WNEM-TV Bay Ciity (Channel 5, CBS). [File date 3/23/04.]

$1,100,000 WIKB AM & FM Iron River MI from Northland Advertising Inc. (Eugene A. Halker) to Heartland Communications Group LLC (Thomas L. Bookey). $50K escrow, balance in cash at closing. Includes non-compete. [File date 3/23/04.]

Stock Talk

Radio Stocks