RBR's Daily Morning Epaper

Volume 22, Issue 10, Jim Carnegie, Editor & Publisher

Friday Morning January 14th, 2005

Radio News®

No fireworks, but some sparks at FCC meeting
The FCC's annual opening open meeting is generally used for horn-tooting with a little navel-gazing thrown in for good measure, but there are usually enough interesting moments tossed in to spice things up a bit, and this year was no exception. We can say that the early favorite for the "Really Stepped In It Award" for 2005 is Armstrong Williams. | More... |

Powell praises EB for decent job on indecency
FCC Chairman Michael Powell gave Bureau Chief David Solomon's Enforcement Bureau high marks for its work in 2004 on indecent broadcasts. He noted the necessary ambiguity in the rules, and the thankless task of working in a bright spotlight on a highly charged issue. | More... |

NBC Universal, Volkswagen
sign worldwide marketing pact
Representing one of the most far-reaching to date branded entertainment deal, NBC Universal and Volkswagen announced the creation of a multi-year global marketing alliance. Universal will incorporate Volkswagen's products and brand, in its film, DVD, worldwide theme parks, and other entertainment properties. Volkswagen will support numerous media and entertainment related properties of NBC Universal through international marketing and promotional efforts. | More... |

RBR Observation:
What's missing from the new radio campaign?
The new PR campaign for radio is a feel-good move by the big groups, but there's no value proposition for the listener. That may not matter, since radio listeners don't appear to be the real target audience. Satellite radio is as hot on Wall Street as dot-com companies were in the 1990s. In truth, the new campaign is not so much for consumers anyway, but to assure Wall Street and Madison Avenue that radio is doing something to combat the "threat" of satellite radio. We hope you'll want to read our take - - and we await your feedback. | More... |

iPod sales soar for Apple
Wall Street may think satellite radio is a threat to terrestrial radio, but Emmis CEO Jeff Smulyan last week repeated his view that iPods and the like are a bigger threat. Well, that threat is growing. Apple reported that it sold 4.5 million of the devices in the last quarter. That's as many iPods in one quarter as the total universe of satellite radio subscribers today. It was a 525% increase in iPod sales from a year earlier. "We've sold over 10 million iPods to date and are kicking off the new year with a slate of innovative new products including iPod shuffle, Mac mini and iLife '05," said Apple CEO Steve Jobs.

They said it in 2004: November
As satellite radio is hot and now we have a new radio campaign it seem par for the course that this quote matches what you are reading this morning as we look back at the great one liners of last year. "This is a perfect opportunity for me because I want to lead a growth company that can reshape the landscape of the radio business. I took Infinity Broadcasting and Westwood One to leadership positions in the industry and am confident that Sirius will become a market leader in short order." - Mel Karmazin, upon being named CEO of Sirius Satellite Radio. Today: November 2004 | More... |

Adbiz©

Visa's newest ad to debut
at the Super Bowl
Visa announced it will air a new TV spot that will debut at the Super Bowl on Sunday, 2/6. The new ad will focus on the security protections of the Visa check card. "Last year, 108 million households tuned in to the Super Bowl, making it one of the most-watched TV events of 2004," said Susanne Lyons, Visa CMO. "The Super Bowl consistently provides an opportunity to reach a large number of consumers in an entertaining way, reminding them that their Visa check card affords them security protections far greater than cash or checks." The spot was created by BBDO NY and will run nationally on network and cable television through summer.

Study: radio listeners respond positively to fewer spots
For all who think Less is More isn't a factor on radio listening, Navigauge released an analysis of audience behavior in and around spot breaks proving it does. The study is the industry's first independent analysis (using completely passive electronic monitoring) of how commercial stopset structure affects listener retention during and after the breaks. Over 46,000 stopsets and more than 127,000 spots were examined over a three-month period in Atlanta. | More... |

Wal-Mart answers critics
in new campaign
Wal-Mart is publicly responding to its critics, starting with an open letter that ran in 100 newspapers yesterday. The retail giant also plans to offer "the unfiltered truth" about the world's largest retailer with the launch of www.walmartfacts.com, a website breaking down employee wages and other information by state. Wal-Mart CEO Lee Scott told USA Today that it's time to draw a line in the sand. USA Today reports that Scott will also spread his message on TV and radio talk shows. A four-color, full-page ad appeared in The New York Times, noting that Wal-Mart "is working for everyone" while some of its critics "are working only for themselves." Scott told USA Today that he needed to speak up for Wal-Mart's 1.2 million workers. The attacks have had an effect on Wal-Mart, which has faced lawsuits and resistance in some cities to expansion.

February Radio & Television Business Report

"The Pros and Cons of Nielsen's Local People Meter and Arbitron's proposed Portable People Meter service"
After a rocky start, it's roll-out time of LPM & PPM. Will there be cooperation or more talk?

Engineered for Profit: "New tower standards coming: are you ready?" Did you know existing standards is currently in the midst of the biggest revision in years?

GM talkback: "How has LPM ratings changed selling in your market?" TV GMs say what they think-the good, bad and the ugly.

Media, Markets, and Money: Only one place tells it like it is with a run-down and overview of the biggest quarterly Radio and TV deals and outlook to 2005.

Media Markets & MoneyTM

Bustos busts into Boise
Amador Bustos is continuing to expand his western Hispanic radio group with a 3.2M buck deal for an FM in Boise ID. The seller, First Western Inc., has already serving the growing Idaho Hispanic population with a Regional Mexican format. Bustos Media will run KJHY-FM in an LMA pending FCC approval and closing. According to the BIAfn 2004 Radio Yearbook, the station is one of only two in a Spanish language format, and was the lone station to receive ratings in Arbitron's Spring 2004 survey.

Close encounter in Melbourne-Titusville
Cumulus Broadcasting has completed its 5M buck acquisition of WSJZ-FM Sebastian, FL, according to Media Services Group broker George Reed. The seller Michael Tuchman's Sebastian Broadcasting Company. The station, which serves the Melbourne-Titusville-Cocoa market, joins WINT-AM and WAOA-FM in the group's local portfolio.

Washington Beat

Steady as she goes at the Media Bureau
The FCC department of particular interest to broadcasters shed little light on its plans for 2005 at the Commission's first meeting. Media Bureau Chief Ken Ferree noted progress on digital broadcasting achieved in 2004 and said it would be a front burner item going forward, both in the radio and television arenas. He praised broadcast television for getting 85% of all DTV stations up and running, and cable for passing some 90M homes with digital capable systems. He also noted the increasing availability of high-def programming, which he said is important to drive the digital conversion forward. As for the stalled rulemakings on media ownership, he said MB is evaluating both petitions for reconsideration, and the ruling of the Third Circuit. He did not give any indication one way or the other on the prospects of a Supreme Court challenge to the Third Circuit. He did say that he expected both digital and ownership issues to be resolved satisfactorily in 2005.

RBR observation: Uhhh, can we get that in writing? There is probably no way to resolve either issue in a way that will be satisfactory to everyone. On the other hand, everyone will no doubt be happy to at least gain some certainty on the regulatory environment going forward. On a more particular note, it is speculated that if a Supreme Court challenge is mounted, the timeline associated with such a challenge will put ownership in limbo at least into 2006. So we should have some insight into the veracity of that prediction in a couple of weeks.

FCC rings up two TVs on the phone rap
Scripps Howard's WEWS-TV Cleveland and NOE Corp's KNOE-TV Monroe LA each were hit for fines for airing recorded phone conversations without the permission of the individual recorded. In both cases, it involved reporters working on stories, and included multiple airings. In the Cleveland case, the station aired a recording of an insurance company employee declining to be interviewed, and in Monroe, the station taped a police jury member's outgoing voice mail message. WEWS was hit with two counts for a total of 6K; KNOE for three and 10K.

Programming

Hollander comments on WHFS flip;
Junkies moving to WJFK
More on yesterday's story on Infinity blowing up Alternative WHFS for "El Zol" Spanish Salsa/Merengue/Dance tunes (1/13 RBR #9). First of all, WHFS's Sports Junkies ARE moving back to WJFK, and soon. Says Infinity President/COO Joel Hollander on the format flip: "This was one of those things that NOBODY knew - - nobody knew in the company except for six people. We had a SWAT team, that was it. It was on the front of the Washington Post today, I couldn't believe it!" Well, this market was underserving Hispanics, especially on the FM side. Says Hollander: "Clear Channel was sleeping there." | More... |

Transactions

WAKX-FM & WKKB-FM Providence RI (Narragansett Pier, MIddletown RI) from Citadel Broadcasting Company to Davidson Media Group LLC

WDOW AM & FM Dowagiac MI from Jason Communications Inc. to LeSea Broadcasting Corporation

| More... |

Stock Talk

Stocks tumble on oil worries
Rising oil prices struck fear in the hearts of Wall Street traders again on Thursday. The Dow Industrials plunged 112 points, or 1.1%, to 10,506.

Radio stocks also took the plunge. The Radio Index fell 1.050, or 0.5%, to 214.816. Journal Communications was down 3% and Regent 2.7%.

Radio Stocks

**Here's how stocks fared on Thursday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		37.05	-0.25	Jeff-Pilot	JP		49.15	-0.35
Beasley	BBGI		16.68	+0.21	Journal Comm.	JRN		17.10	-0.53
Citadel	CDL		14.23	-0.02	Radio One, Cl. A	ROIA		15.35	+0.02
Clear Channel	CCU		31.26	-0.16	Radio One, Cl. D	ROIAK		15.27	-0.02
Cox Radio	CXR		16.11	-0.05	Regent	RGCI		5.14	-0.14
Cumulus	CMLS		14.12	-0.15	Saga Commun.	SGA		16.43	-0.17
Disney	DIS		27.75	+0.03	Salem Comm.	SALM		22.93	-0.44
Emmis	EMMS		17.73	+0.01	Sirius Sat. Radio	SIRI		6.46	+0.19
Entercom	ETM		32.01	+0.08	Spanish Bcg.	SBSA		10.06	-0.19
Entravision	EVC		7.87	+0.09	Univision	UVN		28.10	+0.13
Fisher	FSCI		49.38	-0.11	Viacom, Cl. A	VIA		38.04	-0.70
Gaylord	GET		40.65	+0.76	Viacom, Cl. B	VIAb		37.66	-0.69
Hearst-Argyle	HTV		25.50	+0.03	Westwood One	WON		24.99	-0.01
Interep	IREP		0.72	-0.03	XM Sat. Radio	XMSR		34.86	+1.00
International Bcg.	IBCS		0.02	unch	-	-	-	-	-

__UNSUB__ to this email service.

Bounceback

Send Us Your Opinions We want to
hear from you.
This is your column, so send your comments to [email protected]

Another reader offers a second to Russ Oasis' comments (1/13 RBR #9).

I agree with your recent writer who says radio needs more than PR to fix its problems. I think music radio has the most to fear from satellite radio yet stations don't seem to be addressing this issue. | More... |

John Clark,
President
CRG Media

Arbitrends

Upped & Tapped

Hollander's promotion confirmed
You read it here first (12/20/04 RBR #246). Viacom has moved Joel Hollander up to Chairman and CEO of Infinity Broadcasting. "Joel is one of the finest operators in the radio business, hands down. He has brought tremendous energy, industry savvy and discipline to Infinity Broadcasting since joining the company, where he has helped our stations grow their ratings and revenues in a challenging advertising climate," said Viacom Co-President/COO Les Moonves. Hollander, who had been President and COO of Infinity, succeeds John Sykes, who will be going back to Viacom's MTV Networks.

Osgood moves up
Cox Radio has promoted Local Sales Manager Chris Osgood to General Sales Manager of WSB-AM Atlanta. He succeeds Dan Kearney, who was recently promoted to VP/GM of WSB-FM and WBTS-FM (1/10/05 RBR #6).

Stations For Sale

Rated Market AM Coverage
Bristol, TN (#98) and adjacent Western Virginia Coverage with two great AM's. Priced to Sell!
Cliff at Clifton Gardiner & Co (303)758-6900
[email protected]

Tennessee / Alabama Border AM
2.5 KW AM on border with Rated Market Coverage (#118). Motivated Seller! Cliff at Clifton Gardiner & Co (303)758-6900
[email protected]

10 Station (One State) Cluster
Four Markets with $900K Trailing Cash Flow. Excellent Management. Located in Far Northwest.
Cliff at Clifton Gardiner & Co (303)758-6900
[email protected]

More News Headlines

ABC News Radio details inauguration coverage

Racial joke lands 'Java Joel'
in hot water

Eastlan measuring in Louisiana

RBR Radar 2005

Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Sumner Redstone talks acquisitions; Moody's talks downgrade
Viacom back into seeking major acquisition targets has spooked analysts at Moody's Investor Service. Viacom's debt ratings are now under review for a possible downgrade. RBR observation: Open mouth, remove foot. Did Sumner not realize that the credit raters would be listening to such comments? And on another matter, we find it interesting that while Redstone continues to complain that Viacom's stock is undervalued, he's been selling some of his own stake back to the company under the buyback plan - - more than 200 million bucks worth so far. Of course, he's been selling back non-voting Class B stock, not any of the Class A stock, through which the Redstone family's National Amusements holds voting control of Viacom. Who says you can't be sharp as a tack at 81 years of age?
01/13/05 RBR #9

New York Attorney General Eliot Spitzer's probe claims a victim
Entercom confirms that it fired WKSE-FM "Kiss 98.5" Buffalo PD Dave Universal last week amid a company probe of whether he improperly accepted travel packages and other gifts. Universal defended his actions. "I did nothing that Entercom was not 100% aware of, or approved of, the entire time I was there," RBR tried to contact Universal but phone was out of service. Publisher observation: Universal is out of work and Entercom has a black eye. Accepting gifts for play is called Payola which has a long history in the radio business. This publisher has seen worse over the years. Again the young just not knowing the real rules of the game they are playing. Anyone knowing Dave Universal, have him contact us. If he is a good PD don't get judged in the press. 01/13/05 RBR #9

Reach Media, Inc.
A Dallas-based media, broadcasting, internet and entertainment company targeting the African-American community. The hub of 'The Tom Joyner Show' - Needs to fill key positions: Director Affiliate Sales, Director TV Affiliate Relations, Ad Sales Account Executives and Sponsorship Sales. Be on the ground floor of the next exciting TV syndication program plus work with really great honest people. For more information, contact Amy Bert.

See Radio Careers for more info.

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