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WWL-TV only New Orleans TV station to remain on air

NASBA launches relief effort

Marketron offering help
to damaged stations

Radio host's website
transformed by hurricane

KCEN-TV partners with
CC Radio for fundraising

RBR Close-Up First
Clear Channel preparing HD Radio multicast Consortium
The likely naming of a successor to NAB President & CEO Eddie Fritts may not be the only big news coming out of this month's Radio Show (9/21-23) in Philadelphia. Last Thursday evening, 9/01/05, RBR/TVBR obtained a document that appears to be a PowerPoint presentation for internal use at Clear Channel Communications laying out a timeline and potential business models for developing multi-channel HD Radio. Someone has apparently been circulating the document outside the company, since Mark Ramsey has made reference to a study, which RBR assumes is the attached PDF, on his Radio Marketing Nexus website. One key date is a September 21st press conference in Philadelphia. Competing head-to-head with satellite radio with a digital radio subscription service is dismissed as not being a viable business model. Rather, the document focuses on four alternatives for creation of one or more entities to manage digital spectrum and provide programming for the additional channels which will become available with HD. One alternative would create an industry-wide coalition, with each member sharing pro rata in the start-up costs and eventual profits and having a voice in local/national programming decisions, but with Clear Channel and Infinity managing the partnership and handling national sales. Another proposal would create a similar partnership, but as a completely new entity with new management and its own national sales force.








RBR observation: The PowerPoint presentation does a good job of laying out the pros and cons of each possibility. While it may seem arrogant to some to propose that Clear Channel and Infinity manage a national partnership, don't forget that the two already supply lots of programming to everyone else in radio, and even to each other, via Westwood One and Premiere Radio Networks. But would an industry-wide coalition pass muster with the DOJ's antitrust watchdogs? That question is raised in the document, but, at this point, not answered. It's clear that most radio companies don't have the resources to fund, launch and market dozens of new programming services for channels which will, for the first few years, be available only to a minority of the listening public. Talks have been taking place for months among various groups to figure out how to move radio into a multi-channel digital world. We applaud all of the creative thinking being devoted to this. If everyone works together, radio can and should get this right.
Publisher note: Wondering if this was an industry circulated document and if it was factual. I spoke with Emmis Chairman Jeff Sumlyan who had no idea of such a presentation except to say the industry leaders were talking. Also sent an email to Cox President Bob Neil and have yet to hear back. Also requested CC Radio CEO John Hogan and Infinity CEO Joel Hollander for comment on the document. Calls to both were made on Friday 9/02/05 plus email to both with Alternative 2 plan requesting to at least discuss this Power Point presentation. Neither returned my phone call or replied to the email with Alternative 2. Mum seems to be the word but we leave space open in RBR for any and all to participate with your BounceBack to radionews@rbr.com including Hogan and Hollander.

Making the
case for HD2








Presented as the first option, is to have local rather than national partnerships, although programming would obviously come from national providers. The other option is described as "Market Forces (Let it Run Wild)," in which case each radio company would handle its own budget, sales efforts, and programming decisions. A couple of the negatives noted for that are diminished advertising potential and a negative perception because of the industry's failure to present a united effort to compete with satellite radio. While it mostly amounts to preaching to the choir, since Clear Channel and other groups are already in the midst of implementing HD Radio, the PowerPoint presentation lays out the reasons for moving from analog radio to multi-channel digital, currently referred to as HD2 (although those two channels will eventually become at least eight when receiver penetration reaches the point where analog signals can be turned off). The presentation details how broadcast CUMEs and TSLs have decreased for listeners who have "new media" options available to them, such as satellite radio or MP3 players. It projects a 3% annualized drop in AQH persons 12-54 over the period from 2004 through 2015 for terrestrial analog radio. And while it notes that HD2 will initially not have full market coverage, compared to analog, it projects that most people in major metros will be able to receive a 60dBu or greater digital signal - - from a low of 65% in the difficult terrain of San Francisco to 96.2% in Dallas for the top 10 markets. To build public demand for HD2 receivers - - which are due to be formally introduced this month (September 15th) - - the presentation proposes a "PR Plan" which includes a "viral program" to place receivers in the hands of "high-profile" influencers - - hand delivering them, training the users and then checking later for feedback. It also details how the new receivers will be presented to important business leaders - - presumably including key advertisers - - with celebrities enlisted to help draw them to in-car demonstrations and "exclusive lunch events in selected cities" - - followed by thank-you letters.
RBR observation: If nothing else, terrestrial radio can learn from the expert PR efforts that the satellite radio guys have orchestrated over the past few years. While their audiences remain miniscule, they've created the public impression, however false, that XM and Sirius have become major players overnight and taken significant market share away from terrestrial radio. Broadcasters have to work together in each market to build "buzz" for HD radio and promote their HD2 channels. Make people believe that HD receivers are the latest, hot thing and you should be able to build market demand that will make HD quickly surpass the level of satellite radio receiver penetration. After all, unlike satellite PAY radio, HD is going to be advertiser-supported and free to the consumer. That's an easy choice for people to make.

Radio hits a
July pothole
June radio results, as reported by the Radio Advertising Bureau, were flat. That was the expectation for July as well, but it turns out predictions for a flat month was overly optimistic. A modest 3% gain in non-spot revenue was not enough to radio out of the hole dug by a 2% decline in local business and a 3% drop in national. YTD, local, national and total revenue are all up 1% over the January-July stretch of 2004, unaffected by flat results in non-spot.
RBR observation: We haven't heard any speculation, but it seems that there is a very good chance that September revenue statistics are going to be reported out of the red ink well - - it would take strong positive gains elsewhere to make up for the revenue crater left in the wake of Katrina in the Louisiana, Mississippi and Alabama.

Broadcasters nationwide
aiding hurricane victims
From coast-to-coast, radio and TV stations are spearheading efforts to aid victims of Hurricane Katrina and the devastating floods which followed the storm. RBR/TVBR will stay with our broadcast coalition as RBR/TVBR will stay with this issue of aid and let all know what is going on day to day. Numerous radio and TV stations have told RBR/TVBR of their relief efforts. 09/02/05 TVBR #173

John Maher Fires back at Jon Mandel Director of Planning U.S.
International Media John Maher took exception to Jon Mandel's bounce back and stated "I had to read Jon Mandel's response twice before I realized it wasn't a joke. What an incredibly namby-pamby, sniveling, mealy-mouthed reply. Besides foisting an answer that's woefully out of place, the oft-quoted U.S. Chairman of the world's 8th largest "media agency" seems to have been out sick or behind a door for the last 20+ years...As long as the industry continues with a Three Stooges approach to resolving this, we'll have Nielsen and their lousy methodology as a monopoly." 09/02/05 TVBR #173

Jon Mandel
Chairman MediaCom U.S.
Fires back to WGN-TV's Dominic Mancuso, Mr. Mancuso that the reason Nielsen is a "monopoly" (which it really isn't as there are other research companies) is that stations, in a bid to save money, stopped buying both Arbitron and Nielsen ratings. The problem is not the rating company, it is the programming. 09/01/05 TVBR #172

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