Volume 19, Issue 86, Your Morning Radio Industry E-Paper tm
Jim Carnegie, Publisher
Tuesday Morning, November 5th 2002
RBR Office 703.719.9500

Radio News ®

Big City on the auction block
Big City Radio (A:YFM) has figured out how to get out of its financial troubles - - it's put all of its stations up for sale. The company announced late Monday (11/4) that it had retained Mark Jorgenson's Jorgenson Broadcast Brokerage "to market and conduct an auction of all of the Company's radio stations." | Full Story Click Here |

Premiere to retire 15 programs, services; lay off 100
In a surprise round of Fall cleaning, Premiere Radio Networks announced 11/4 it will be will retiring 15 products and services at the end of the year and will eliminate 100 positions in the process. | Full Story Click Here |

Letterman on the radio beginning next week
As has been rumored (RBR e-paper 11/4), CBS's "Late Show with David Letterman" will be broadcast weeknights on Infinity stations in major markets starting 11/11, it was announced by Infinity Chief John Sykes. | Full Story Click Here | RBR Observation |

Resume snafu at MCG Capital
Bryan Mitchell has stepped down as Chairman of MCG Capital Corp. (O:MCGC), but is still CEO, after admitting that he misrepresented his educational background.
| Full Story Click Here |

Limbaugh raises cash for NY Democrat
We're not kidding. Rush Limbaugh was taunting Democratic National Committee Chairman Terry McAuliffe last week for refusing to fulfill the party's financial pledge to Carl McCall, the Democratic candidate for Governor of New York. | Full Story Click Here |

WSJ peeks into its election-night crystal ball
The Wall Street Journal did not so much predict how the two major political parties would fare in today's mid-term election. However, an article (11/4) by Erin Schulte looked at the possibilities for certain sectors of the American business landscape, depending on election results. | Full Story Click Here | RBR Observation |

Empire State Building: ready, willing and waiting
In light of recent news on the current state of (RBR e-paper 10/21) building a new 2,000-ft tower for NYC broadcasters to replace the WTC site, the Empire State Building issued a release echoing a feature we did exactly a year ago today (RBR 11/4/01) on it's ability to house all of the city's FM and TV broadcasters: | Full Story Click Here |


Sign up for the TVBR Morning Epaper
You may have heard of TV - - it's sort of like radio, but with pictures. Some companies which own radio stations also own TV stations, so it only makes sense that RBR's popular Morning Epaper now has a corporate sister - - the TVBR Morning Epaper.

Sign up now and get your first 30 days of TVBR Morning Epaper free - - or sign up folks from the TV side of your company. It's news that everyone can use about the business of television broadcasting - - and it's from the 19-year leader in reporting on the business of broadcasting - - RBR Inc.


Adbiz ©

Buyers comment on "Letterman on the Radio"
Now that CBS's "Late Show with David Letterman" will be broadcast weeknights on 15 Infinity stations starting 11/11, we asked a few buyers whether the concept might have wings. Are they interested? | Full Story Click Here |

Cash coming: This isn't just California dreamin'
The State of California Employment Development Department has $750K it wants to spreads around the state to promote awareness of the America's Workforce Network Toll-Free Help Line.Radio stations are expected to have a major role in this effort. Spots in both English and Spanish are in the mix, which also will include print and outdoor. Sacramento-based ad agency Runyon Saltzman & Einhorn is handling the account.

Who spent how much on what last December?
Part 4: Big spenders 5-8
CMR/TNS Media Intelligence's number crunch on the top 20 national advertisers during last year's holiday month (December) included eleven media categories. We've already identified the top 20 advertisers (RBR Daily Morning Epaper, 10/31) and how much was spent over all in each of the 11 categories (RBR Daily Morning Epaper, 11/1). All this week, we will look at the top 20 media use breakdown, four companies at a time.
| Full Story Click Here |

Diageo drops Captain Morgan Gold
Brandweek reports Diageo is dropping its "Captain Morgan Gold" rum-flavored malt beverage line. The product launched last spring with a $70M marketing budget and "Got a little captain in you" TV spots from Grey Worldwide, New York.

Brandweek says Captain Morgan Gold was not well received by U.S. consumers and the Diageo will take a $28.1M charge during the current financial year to write down inventory held by distributors.

SNTA President DeWitt to tour advertisers/agencies
Syndicated Network Television Association President Gene DeWitt is embarking on a tour next week to 34 TV advertisers and agencies that haven't been using syndicated TV as much as they could or should be. First the agencies, and then Proctor & Gamble, Johnson & Johnson, McDonald's, Burger King Corp, Visa, The Gap, Microsoft, Coca Cola, the movie companies, Pepsi, Taco Bell-KFC. | Full Story Click Here |


Washington Beat

More Commissioners hear pitch against
Univision-HBC merger
Spanish Broadcasting System (O:SBSA) has been back at the FCC making its presentation in opposition to the proposed merger of Hispanic Broadcasting Corp. (N:HSP) into Univision (N:UVN). | Full Story Click Here |

Awkward auction: Applicants need to validate themselves
What if you held an auction and only a couple of people came? The FCC seems to be facing a scenario even less competitive than this with its Auction No. 32, which features CPs for three AM stations (RBR Daily Morning Epaper, 10/17). | Full Story Click Here |


RBR Stats

What cars are hot?
US auto sales took a dive in October (11/4 RBR Daily Epaper), but the dealers are still selling cars. Ford reported Friday that its sales plunged 34.9% October, GM was off 32% and Chrysler fell 30.9%. But all are still building cars in Detroit (and elsewhere) and shipping them to dealers, who are trying to find a buyer for each and every one.
| Click Here For Chart |


Programming for Profit

Where, oh where have my listeners gone?
Part 13: Smooth Jazz/Jazz
In this look at an Arbitron study on the format migration habits of radio listeners, we will follow the whereabouts of straying P1s for various formats. Based on Fall 1999 12+ stats, Arbitron tracked P1s (primary listeners) for a total of 45 format classifications, showing where they went when they went they weren't tuned into their favorite.
| Full Story Click Here |


Media, Markets & Money tm

Vicente upgrades to a Greenville sixpack
Al Vicente's Archway Broadcasting Group has a second deal in the Greenville-New Bern-Jacksonville market. Its $3M acquisition of WCZI-FM and WGPM-FM from New East Communications will bring its total presence in the far-flung market to six stations. The seller belongs to Henry Hinton and Harry Land. Archway will enter into a consulting agreement with Hinton.

It's previous deal was with Eastern Carolina Broadcasting. Archway spend $6.5M and got WRHT-FM, WCBZ-FM, WNBR-FM and WZBR-FM (RBR Daily Morning Epaper, 9/4).| RBR Observation |

Daughter settling in down the street from dad
Dana Christian Raymant is entering the Joplin MO-Pittsburg KS television market with a $1M deal for an unbuilt television station. She will be getting the CP for KFJX-TV, which is scheduled to enter the market from the Pittsburg wing on channel 14.
| Full Story Click Here |


Sales

Paul WeylandHow to Negotiate Without Turning
Into a Pitiful Puddle of Spineless Goo
By Paul Weyland

TIP 2:
Don't try to kill the client. First, remember that a successful negotiation is not a game with a winner and a loser. In order for there to be a successful negotiation, both sides must feel as though they have won. You are not there to destroy an opponent. You are there to strike a deal where everybody believes that they have won something. Remember that you are working toward a common goal.

NTR Tip of the day
Many manufacturers that have co-op dollars also have discretionary funds. IF YOU ASK, they might throw in another 25% or even a specific dollar amount.
Source: LaDonne Craig, South Central Communications, ladonnec@aol.com, (812)424-8284


More News Headlines

* Dial-Global picks up Earl Pitts show
* TRN's Rusty Humphries welcomes Vietnam Memorial
* KIKK-FM Houston debuts Smooth Jazz
* Yet another Richmond move-in coming?
* Spirit FM/Radio Luz to broadcast historic simulcast in two languages
* National Traffic Directors' Day
* Country stations pow-wow at MJI event for CMA Awards
* Bravo goes to NBC for $1.25B
* Baby mags jump to Meredith
* Newsweek dissects children's TV


Radio Stocks

Rate cut euphoria reigns on Wall Street
Wall Street traders bid stock prices up for the second day on hopes that the Federal Reserve will cut interest rates at this Wednesday's meeting. So, look for a pullback if that rate cut doesn't come.

The Dow Industrials gained another 54 points, or 0.6%, to 8,571.

The Radio Index advanced 2.742, or 1.2%, to 237.331.

Cumulus Media was the day's big gainer - - up 8.1%. regent gained 5.6% and Hispanic Broadcasting 5%.

On the down side, Beasley was off 3.4%, Radio One 1.9% and Salem 1.1%.

Here's how stocks fared on Monday

Company Symbol Close Change Company Symbol Close Change
Arbitron

ARB

$33.98

-$0.02

Jeff-Pilot

JP

$39.60

+$0.79

Beasley

BBGI

$12.42

-$0.43

NBG Radio Nets

NSBD

$0.11

+$0.05

Big City YFM $0.35

+$0.10

Radio One, Cl. A

ROIA

$16.48

-$0.31

Clear Channel

CCU

$38.25

+$0.94

Radio One, Cl. D

ROIAK

$16.28

-$0.28

Cox Radio

CXR

$23.74

-$0.16

Radio Unica

UNCA

$0.42

unch

Cumulus

CMLS

$17.63

+$1.32

Regent

RGCI

$6.76

+$0.36

Disney

DIS

$18.05

+$1.02

Saga Commun.

SGA

$21.20

+$0.50

Emmis

EMMS

$20.81

+$0.01

Salem Comm.

SALM

$24.92

-$0.27

Entercom

ETM

$50.86

+$1.64

Sirius Sat. Radio

SIRI

$1.06

+$0.07

Entravision

EVC

$12.10

+$0.10

Small Town

STWI

$0.20

+$0.02

Fisher

FSCI

$46.27

+$0.17

Spanish Bcg.

SBSA

$6.69

+$0.09

Gaylord

GET

$17.85

-$0.30

Viacom, Cl. A

VIA

$44.58

+$0.05

Hearst-Argyle

HTV

$22.73

-$0.47

Viacom, Cl. B

VIAb

$44.50

+$0.15

Hispanic Bcg.

HSP

$22.80

+$1.09

Westwood One

WON

$37.59

-$0.29

Interep

IREP

$2.40

-$0.10

XM Sat. Radio

XMSR

$3.48

+$0.05

RBR Bounceback

We want to hear from you
Speak out to your colleagues in radio on any subject affecting this business.This is your column, so send your comments to radionews@rbr.com.


Subscribe & Save
Subscribe today to
RBR's Morning e-paper
SAVE $318
with our GOLD pacakge Sign up here!

Competing Media

Will traditional media be "floored" by new competitor?
Could you live with a 3,410% increase in business in just a few years? That kind of result is pretty much impossible in a mature industry, but if you can get in on the ground "floor," then such things are indeed possible.
| Full Story Click Here |


Upped & Tapped

Gould heading Salem's Tampa duo
Christopher Gould has been named General Manager of Salem Communication's (O:SALM) WTBN-AM & WTWD-AM Tampa. At the same time, Salem announced that the two stations will be co-branded as "Tampa Bay's Christian Talk," with WTWD now calling itself WTBN AM 910 - - simulcasting WTBN AM 570. | Full Story Click Here |

Jay Sterin, Catherine Meloy named CC Radio RVPs/Sales
Jay Sterin was Regional Director/Sales for Clear Channel's Philadelphia region and is now Regional VP/Sales for the company's Philadelphia Trading Area, which includes Allentown, Harrisburg, Lancaster, Reading and Williamsport, PA. Sterin will also continue as Director/Synergy Sales for the Mid-Atlantic region.
| Full Story Click Here
|

WBUZ ups Russ Schenck to PD
WBUZ-FM Nashville has reportedly promoted Russ Schenck to PD, replacing Brian Krysz, who left to join Archway Broadcasting as VP/Programming & Marketing. Schenck will keep his afternoon-drive slot and MD duties as well.


Transactions

$800,000 WZKR-FM Meridian MS (Decatur) from Rainey Broadcsating Inc. (Kenneth R. Rainey Sr.) to Ponytail Broadcasting LLC (William T. Smith, Arthur E. Matthews, Robert B. Smith, Alton L. Brown, Charles M. Johnson, James B. Barham). $450K cash, $350K note. Buyer's Willam T. Smith is VP and holds 2% interest in Magnolia Broadcasting, licensee of WMOX-AM Meridian. LMA beginning 11/1 ($5K/month).

$650,000 WKEY-AM & WIQO-FM Covington VA. 100% of WKEY Inc. from Denny D. Tincher to Quorum Radio Partners of Virginia Inc. (Todd W. Fowler, Michael A. Stone, Jevin S. Jensen, Robert Barnett, Kevin T. Lilly). $20K escrow, balance in cash at closing. Includes non-compete. Broker: Kempff Communications.


Industry Jobs

Market/GM
Market/GM seeking aggressive company with a desire to increase sales, ratings, and cash flow. Proven ability to recruit, train, motivate, and organize a winning staff. Experienced seller, manager with new strategies and promotion ideas. Extensive computer skills. Been there, done that.
email: tshirt@radio3k.com

More jobs..


Contacts
MANAGEMENT
Publisher, Jim Carnegie
JCarnegie@rbr.com
VP/GM, Assoc. Publisher, Ken Lee
KLee@rbr.com
Admin. Assistant, April Olson
AOlson@rbr.com

EDITORIAL
Executive Editor, Jack Messmer
JMessmer@rbr.com
Managing Editor, Dave Seyler
DSeyler@rbr.com
Senior Editor, Carl Marcucci
CMarcucci@rbr.com

SALES
Account Executive, June Barnes
JBarnes@rbr.com

Other Links
State Associations
Issue Archives

Sign up a friend!

Media Players

Get Windows Media Player Get Realplayer

Have a news story you'd like to share? radionews@rbr.com

Click here to unsubscribe to RBR's daily e-paper

Advertise with RBR | Contact RBR
© 2002 Radio Business Report. All rights reserved.