I encourage you to forward today's RBR onto a colleague or friend and Share the Voice. Have them Sign Up for a Trial Read on you. Have them Try it they will like it and thank you for it. Thanks, Jim Carnegie, Publisher and Broadcaster
SIGN UP HERE
|
|
|
|
|
Volume 23, Issue 102, Jim Carnegie, Editor & Publisher
|
Wednesday Morning May 24th, 2006
|
|
|
Radio News ®
|
 CBS names radio markets to be sold
Les Moonves last week said CBS wanted to divest 35 radio stations (5/19/06 RBR #99). Now the company has gone public with the 10 markets it wants to exit: Austin, Buffalo, Cincinnati, Columbus, Fresno, Greensboro-Winston/Salem, Kansas City, Memphis, Rochester and San Antonio. The tally comes to 39 stations, four more than Moonves indicated last week. The list is not limited to smaller markets. Included are three markets in the top 30 - Cincinnati (#28), Kansas City (#29) and San Antonio (#30).
| Interested? Here is the shopping list |
RBR observation: Our first thought - wouldn't it be more than interesting if hometown boy Randy Michaels were to buy that four-station Cincinnati cluster and start over again? These are certainly not the dregs that CBS is out to sell. With only two stations in San Antonio the company needed to get bigger or get out - and CBS is not in a mode to buy radio stations. Fresno and Greensboro were publicly shopped before, then pulled back when CBS (then Infinity) didn't like the market conditions.
 Will the total pricetag hit a billion?
If you add up the BIAfn revenue estimates for 2005 of the 39 radio stations that CBS is looking to sell, the total is just shy of 173 million bucks. That has BIAfn Vice President Mark Fratrik thinking the sale could bring close to a billion bucks. "Given the geographic dispersion of these stations, I would be very surprised if one company buys all of them," Fratrik told RBR. Rather, he looks for in-market competitors to be aggressive bidders for the CBS properties in markets where it has only a few stations, while new entrants are more likely to want the large clusters to keep intact. Fratrik said he was surprised at some of the CBS Radio markets that are not on the list. As RBR noted last week, the CBS group's smallest markets are a standalone in Palm Springs, CA and a pair of stations in Victor Valley, CA. Also not on the list are Hartford, CT, which CBS may be keeping because of its proximity to New York City, and West Palm Beach, FL, where the company has a UPN (soon to be CW) TV station. "I would call it a rationalization of their assets," Fratrik said. "They're looking at the properties that they think they can grow and increase the company's value," he noted.
RBR observation: Moonves is already on the record as seeing radio as a margin business but he also is on the record back in 2004 (then not the big boss, no company split and CBS Radio was Infinity) when speaking at TVB conference when he said he likes radio during his Fall TV network schedule. Phrasing Moonves - 'We (CBS) use radio to promote our Fall TV line up and we use it hard to drive consumers to our network.' So here it is two years later, Moonves now the big boss and probably keeping what is needed as an insurance policy and RBR is in agreement with Fratrik - a rationalization of their assets.
CBS expects to pay 221.2M for PPM ratings
No value was announced for the Portable People Meter contract that CBS Radio and Arbitron announced last week (5/19/06 RBR #99), but CBS Corporation has now filed some of the details with the SEC. Based on Arbitron's announced top 50 market PPM rollout schedule and the current CBS Radio portfolio of stations (which today's lead story indicates is about to change), CBS expects to pay 221.2 million bucks for PPM ratings over the term of the contract with Arbitron running through December 31, 2013. CBS also renewed its agreements for a host of Arbitron's current services, including diary-based ratings and such things as Tapscan, Integrated Radio Systems software and Corporate Rollup and National Regional Database services - all through either March 31, 2014 or June 30, 2014. For all of those services, CBS expects to pay Arbitron 59.9 million over the course of the contracts.
|
|
|
 Arbitron signs
another PPM contract
We can't report that Arbitron has signed another group owner for PPM service - but that's only because Jerry Lee refuses to be a group owner. He is laser-focused on owning and running one and only one radio station, WBEB-FM Philadelphia, the top billing independent radio station in the country. Lee was an early convert to PPM after WBEB participated in the market-wide radio/TV/cable test in 2002 in Philadelphia. "Either we get with the electronic measurement or we're going to be in the dust - it's as simple as that. And any other service is going to take a long time to get implemented. The other thing is we know Arbitron, they have worked with the industry very well in the past. We don't know about these other companies, whether or not they can scale up," Lee told RBR after signing the contract. "The work that Arbitron had to go through to get to the point they're at now was incredible, and yet they were somebody we knew. I just feel that somebody else coming in at this stage of the game is very risky for the future of the industry and I, for one, am not willing to take that gamble. This is our future and The Media Audit program has never been tested anywhere," Lee added. The four-year contract he has signed anticipates that PPM ratings service will begin in Philadelphia in January 2007.
RBR observation: Bravo for Jerry Lee as many may not remember he was one of the key people in the radio business that helped found the Arbitron Advisory Council. He is independent and does make his trips to Arbitron twice a year to get his hands dirty. Lee is an owner, programmer, manager and above all a researcher as his knowledge will amaze many. Lee's point is on target about knowing Arbitron and not willing to gamble or in RBR observation take a change on blowing lots of money on an unproven company or their product. It will take millions of dollars if one can even imagine over taking Arbitron not less having equal value. Lee seems to have learned over the last 30 years how to talk Arbitron's talk called research. Many younger than Lee should stop and listen to what he has to say or better yet - Do as he does.
Dems gaining funds, but still way behind
An increase in the total cash at the six Washington campaign committees are another sign that broadcasting is in for a robust season of political spending. However, although enjoying a hefty lead over their rivals, the Republicans have actually brought in less thus far than they did in the last election, meaning the black ink comps are coming mainly from the Democratic side. Democrats have brought in 188.3M in federal runds so far for the 2005-2006 election cycle, compared to 146.1M for 2003-2004. The Democratic National Committee is just on the positive side of flat, rising from 72.3M to 74.2M. the Democratic Senate Campaign Committee has jumped from 33.9M to 56.4M and the Democratic Congressional Campaign Committee is up from 39.9M to 57.7M. The big warchest belongs to the Republicans National Committee, but its 141.9M total for 2005-2006 is down from 157.4M last time. Also down is the Republican Congressional Campaign Committee, which has dropped from 92.8M to 83.3M. Only the Republican Senate Campaign Committee is in the black, rising from 39.2M to 50.4M. Overall, the Republicans have 275.6M, almost 90M more than the Democrats but nearly 15M less than in 2003-2004. Stats are from the Federal Election Commission.
 Are FCC consumer advisors
wasting their time?
14 members of the FCC Consumer Advisory Committee have fired off a letter to Chairman Kevin Martin, and they seem to be wondering if there's any point to their existence. And getting to the point, the Committee's submitted its work on the DTV transition last November. Whether or not the FCC has done anything with it at all is a mystery. The 11/18/05 action, said to have been adopted by near-unanimous vote, called on agency action on the report and order level within six months, which time period expired last week. The recommendations were then hand-delivered to Martin on 2/16/06, but to date, the committee has had no word on their status. The letter asks three questions. "* What is the status of the Committee's recommendation regarding the obligations of digital television broadcasters? * When do you foresee bringing clarity to the obligations of digital television broadcasters? * In general, when the Committee adopts recommendations to the Commission, what is the responsibility of the Commission to report back to the Committee on those suggestions?" The undersigned then point out, "The mission of the Committee is to both make recommendations to the Commission and to 'facilitate the participation of consumers.' Unless the Commission assumes an active roll in reviewing and providing feedback on the comments and recommendations submitted by its own Committee, American consumers stand little chance in becoming active participants in Commission proceedings, and in shaping our shared communications future. We hope you deem our dedicated work important enough to review on a timely basis and then provide opportunities for open discussion with your staff."
|
|
|
|
|
Ad Business Report TM
|
Agencies comment on CBS Radio-PPM deal
Last week, CBS Radio announced a seven-year deal with Arbitron for its PPM ratings data, before the Next-Generation Electronics Ratings Evaluation Team finished its comparison of competing systems for radio ratings (5/19/06 RBR #99). We asked for some feedback from the agency side on the move. Continued from yesterday:
Natalie Swed Stone, US Director, National Radio Investment, OMD:
"I think we will have to get used to having different companies subscribe to different research services. The landscape is not what it was and there are many more companies and forms of audio to consider serving here. It's not as simple as it once was-and different companies will have different research needs. Not every company will be interested in serving the industry...but rather its own interests."
Matt Feinberg, SVP/National Radio, SVP/Director, Interactive Broadcast, Zenith
Media Services: "I think after all was said and done, this was just a good sense move."
Mark Kaline, Ford Motor Company Global Media Manager: "Out of respect for the Next Gen Committee I will decline specific comment on the CBS or RAJAR actions at this point. As the members of the committee know, and as I have said publicly on a few occasions, we need to get to a recommendation and action plan as an industry sooner rather than later."
 Google moves to
place video ads online
Google is moving forward this week with a new service for its AdWords platform that will place video spots on websites where it sells ads. Google is working hard to branch out into traditional media as well, buying DMarc Broadcasting (1/18/06 RBR #12) in January to help its own advertisers conveniently buy radio spots online. Google's announcement comes a week after AOL said that it had acquired Lightningcast, a company that sells video ads on some 150 sites (5/19/06 RBR #99). 20th Century Fox and Paramount Classics have been testing the service with trailers for TV show DVDs and film releases and GM has been promoting its Pontiac G6. The video ads won't appear alongside Google's search results, just on the content websites of partners. For now, Google isn't placing the video ads its own sites. The space is evolving quickly Wal-Mart, Hewlett-Packard and other companies are championing an Internet-based auction for buying and selling TV ads. eBay recently won the bid from an industry task force to test an electronic trading system for buying and selling TV spots (5/11/06 TVBR #93). The plans for that test were unveiled at the recent ANA Financial Management Conference. Google's system is also auction-based, similar to its method for matching targeted ads with search results. Google will run a single auction for text, graphical and video ads. Advertisers can reportedly bid either as a price for each time a user clicks on the ad to visit their site or a fixed CPM-based fee.
|
|
|
|
| Media Business Report TM |
Cheesesteak wrappers bring 562 million
The resale of the unwanted newspapers that McClatchy acquired in its 6.3 billion bucks acquisition of Knight Ridder continues. This time it is a group of local business leaders who have teamed up to buy the Philadelphia Inquirer and Philadelphia Daily News for 562 million. The group is led by advertising executive Brian Tierney, with home building mogul (Toll Brothers) Bruce Toll as the biggest investor. McClatchy has now announced deals to sell six of the 12 Knight Ridder papers that it doesn't want and the company says it is confident that when it finishes the sell-off the total proceeds will be over two billion.
|
|
|
|
| Media Markets & Money TM |
Philly FM sold
If we said an FM station in a top-ten mega-market was sold for 70 big ones, what would you be thinking? We doubt it would be 70K, but that is exactly what the price is for WPEB-FM as documented at the FCC. Explanatory factoid #1 is that the seller is West Philadelphia Educational Broadcasting Foundation. Yeah, a noncom, that explains a certain amount of discount. Stations all the way to the left of the dial at 88.1 mHz aren't likely to earn top dollar. It becomes even clearer when you consider explanatory factoid #2, that the 70K being paid by Scribe Video Center works out to 70K per watt of power. That's right, folks. This station is throwing off one watt, from a tower at just under 50' HAAT, putting it in a position to envy your average low-power FM station.
RBR observation: It is deals such as this that make it futile to try to come with an average-price-for-an-FM-in-a-major-market chart.
|
|
|
|
| Washington Media Business Report TM |
 Not what they say, what they do
Rude and offensive language over the airwaves, though still a matter of concern, is not the big problem, say the citizens of New Zealand, according to that country's version of the FCC, the Broadcasting Standards Authority (BSA). Violent and sexual content, however, is a matter of concern. The BSA had ACNielsen conduct research which shows adults are more concerned about content, but less concerned about simple offensive language than in the most recent prior public opinion sampling. Like in the USA, it all boils down to protecting children from inappropriate content. Still, 90% say that job belongs to caretakers, not the government. New Zealand allows adults-only programming beginning at 8:30PM, and programming before then is supposed to assume that there are children in the audience.
RBR observation: There is a dichotomy on the violence side question. People complained about it in the survey, but rarely send in a complaint to the BSA. On the lack of formal complaints, BSA Chair Joanne Morris hypothesizes, "People still list screen violence as a key concern, so perhaps this means those who dislike violent programmes wisely avoid them." As opposed to the USA style, where an interest group gets a mouse-click campaign going which like as not leads to thousands of complaints to the FCC from people who didn't even see or hear the program in question. You can change the channels, folks...
|
|
|
|
| Internet Media Business Report TM |
VDC adds Soundtrack Channel
VDC Corporation announced the addition of Soundtrack Channel to its lineup of networks. VDC Subscribers will now have access to this music/entertainment channel immediately. The channel is now available as part of the standard 11.95 VDC subscription package which also includes more than 20 networks that can be accessed directly at www.vdc.com.
|
|
|
|
| TVBR TV News |
 Charles Gibson to anchor ABC News
With Bob Woodruff indefinitely sidelined and Elizabeth Vargas preparing to go on maternity leave, ABC News President David Westin has named Charles Gibson to be sole anchor of "World News Tonight" as a long-term assignment. Vargas will return this fall to co-anchor "20/20," but not the newscast - and says that is her choice. Much has changed since last December, when Westin named two young up-and-coming reporters as co-anchors to carry the #2 network newscast into next generation, and hopefully topple #1 NBC (12/6/05 TVBR #237), following the untimely death of Peter Jennings. But tragedy struck only weeks after the duo's January 3rd debut, when Woodruff was seriously injured by a roadside bomb in Iraq. He is still recuperating, with no indication when he will be able to return to work at ABC - or in what capacity. In ABC's statement yesterday, Vargas said she made the choice, in consultation with her doctors and husband, to return only to co-anchoring "20/20" with John Stossel, plus doing ABC News specials, while raising her baby and young son. "I have loved every day I spent at 'World News Tonight' and have endless respect for my colleagues there," Vargas said. "This broadcast needs someone who can give 150% - day in and day out. I am not in a position to give that right now, and it wouldn't be fair to do any less. In Charlie, this broadcast and news division has a wonderful and respected leader," said Vargas. From Woodruff came this comment: "Elizabeth and I set out on a great adventure this year, and I'm proud of what we accomplished. Elizabeth had to shoulder an enormous job when I was injured, and she did it with grace. Charlie Gibson is a mentor and a friend. I look forward to contributing to his broadcast as soon as I'm able."
TVBR observation: Many people had expected Gibson to be the anchor choice when Westin had to select the successor to Peter Jennings. Instead, the network news boss decided to create a new dual-anchor format, emphasize out-of-studio anchoring and reporting, turn two aggressive younger reporters into household names and have them produce new online and other new media content to try to attract younger viewers to the ABC News product. No one could have predicted what would happen less than one month into the new "World News Tonight," when Woodruff was nearly killed in action. Now it is time to retrench and carry on. Stability is needed at ABC News to keep resurgent CBS News from moving into the #2 spot.
|
|
|
|
| Transactions |
1.5M WGNC-AM Charlotte-Gastonia NC-Rock Hill SC (Gastonia NC) and WOHS-AM Shelby NC from KTC Broadcasting Inc. (Calvin R. Hastings) to HRN Broadcasting Inc., a subsidiary of Kentucky Fried Chicken of Lincolnton Inc. (D. Mark Boyd III, W.G. Boyd, David M. Boyd). 25K down payment, 1M cash at closing, 475K by 3/31/07. Superduopoly between WGNC-AM and WLON-AM Lincolnton, WCSL-AM Cherryville. Superduopoly between WOHS-AM and WADA-AM Shelby and WCSL-AM Cherryville. LMA 2/1/06. [File date 4/26/06.]
296K KFFW-FM Cabool MO from First Free Will Baptist church of Mountain Grove Missouri (Brian Hurst) to Lake Area Educational Broadcasting Foundation (James C. McDermott et al). 245K cash, provision of airtime to seller valued at 51K. [File date 5/1/06.]
|
|
|
|
| Stock Talk |
Another day of worrying on Wall Street
Comments by US Energy Secretary Sam Bodman that rising energy prices could hold down economic growth killed off a modest rally attempt in the stock market. The Dow Industrials ended down 27 points, or 0.2%, at 11,098.
Virtually all radio stocks had a down day. The Radio Index fell 2.461, or 1.6%, to 155.962. The market did not get excited about CBS deciding to sell some radio stations, so its stock (Class B) slipped 1.6%. The biggest drop was by Citadel, down 5.3%.
|
|
|
|
| Radio Stocks |
Here's how stocks fared on Tuesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
|
Arbitron
|
ARB
|
|
38.82
|
-0.49
|
Hearst-Argyle
|
HTV
|
|
22.19
|
-0.14
|
|
Beasley
|
BBGI
|
|
7.05
|
-0.17
|
Journal Comm.
|
JRN
|
|
11.70
|
-0.24
|
| CBS CI. B |
CBS |
 |
24.85
|
-0.41
|
Lincoln Natl.
|
LNC
|
|
56.56
|
-0.03
|
| CBS CI. A |
CBSa |
|
24.86
|
-0.36
|
Radio One, Cl. A
|
ROIA
|
|
7.73
|
-0.24
|
| Citadel |
CDL |
|
9.93 |
-0.56 |
Radio One, Cl. D
|
ROIAK
|
|
7.79
|
-0.19
|
|
Clear Channel
|
CCU
|
|
30.35
|
-0.07
|
Regent
|
RGCI
|
|
4.15
|
-0.07
|
|
Cox Radio
|
CXR
|
|
14.73
|
-0.12
|
Saga Commun.
|
SGA
|
|
9.34
|
-0.28
|
|
Cumulus
|
CMLS
|
|
11.38
|
-0.09
|
Salem Comm.
|
SALM
|
|
14.51
|
-0.09
|
|
Disney
|
DIS
|
|
30.23
|
+0.23
|
Sirius Sat. Radio
|
SIRI
|
|
3.90
|
-0.06
|
|
Emmis
|
EMMS
|
|
16.19
|
+0.33
|
Spanish Bcg.
|
SBSA
|
|
5.52
|
+0.01
|
| Entercom |
ETM
|
|
27.35
|
-0.65
|
Univision
|
UVN
|
|
35.31
|
-0.15
|
|
Entravision
|
EVC
|
|
7.72
|
-0.13
|
Westwood One
|
WON
|
|
8.26
|
-0.23
|
|
Fisher
|
FSCI
|
|
42.32
|
+0.07
|
XM Sat. Radio
|
XMSR
|
|
15.51
|
-0.62
|
|
Gaylord
|
GET
|
|
43.26
|
-0.72
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
Bounceback
|
 We want to
hear from you.
This is your column, so send your comments and
a photo to [email protected]
This reader has a different proposal for HD2 channels.
 There are plenty of formats out there, and the introduction of new ones on HD will fractionalize the market even more. Why do that? Terrestrial broadcasters should consider this programming option for their HD2 radio channels: Regionalized channels of the same winning format. If a station already has a winning format, why not regionalize with HD2? For example, in New York...
| Read More... |
Michael B. Levine
Director of Affiliate Relations
Matrix Media Inc.
Chicago, IL
|
|
|
Below the Fold
|
Ad Business Report
Agencies comment on
CBS Radio-PPM
Natalie Swed Stone - .. we will have to get used to having different companies...
Media Business Report
Cheesesteak wrappers bring 562M
Resale of the unwanted newspapers that McClatchy acquired...
Media Markets & Money
Philly FM sold
A top 10 mega-market sold for 70 big ones...
Internet Media Business Report
VDC adds Soundtrack Channel
Will now have access to this music and entertainment immediately...
|
|
|
Radio Media Moves
|
Pierce to NextMedia
25-year-plus radio veteran Tom Pierce has joined NextMedia Group as Director of Sales for its nine-station cluster in Eastern North Carolina - Greenville, New Bern and Jacksonville.
|
|
|
May RBR/TVBR
Digital Magazine
|
Take a look at what's in the May RBR/TVBR Solutions Magazine:
We track the latest evolutions and address the latest topics with our annual Television Upfront feature, speaking to everyone from CBS's Jo Ann Ross to NBC's Keith Turner; TWC's Liz Janneman, OMD's Joe Uva and Magna Global's Bill Cella.
We asked Christine McKenzie, Chrysler Group Executive Director of Brand Events and Agency Relations all about the importance of their annual Media Day in Detroit.
We take a look at the annual Hispanic Radio Upfront events in NYC and interview Colleen Brown, President and CEO of Fisher Communications.
These and other hot industry issues addressed in May.
Read RBR/TVBR in 2 simple steps:
1.Create a simple account with Zinio and download the Zinio Reader.
2. You can then download the
May Issue of RBR/TVBR
|
|
|
RBR Radar 2006
|
|
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
|
XM drops controversial
wireless buy
XM Satellite Radio has abandoned its long-pending deal to acquire WCS Wireless and its wireless spectrum licenses spread throughout the US. The 198 million bucks deal had been controversial since it was announced last July with terrestrial radio broadcasters concerned that XM planned to use the WCS spectrum for local programming - a way to get around the national-only restriction of its current satellite radio license.
05/23/06 RBR #101
Agencies comment on
CBS Radio-PPM deal
Rich Russo, JL Media "It would have nice if they waited for the RFP to be all sorted out but I guess the price was better for them to do it now... Jon Mandel, Chairman/MediaCom US and Chief Global Buying Officer MediaCom Worldwide: "I am glad someone in the radio industry is looking at "how can we make it better" instead of doing the delaying tactic of head in the sand, just taking shots at 'why it won't work'." More agencies voice view see Ad Business Report section
05/23/06 RBR #101
Shareholders press
Smulyan for more
Noonday Asset Management is not the only investment firm pressuring Jeff Smulyan to raise his buyout bid for Emmis Communications. Martin Capital Management's managing partner, Frank Martin sent Smulyan a letter spelling out objections to the proposed buyout and filed a copy with the SEC to make sure it was made public. In short, the letter accuses Smulyan of putting his own interests ahead of his fellow shareholders.
05/22/06 RBR #100
CEA comes out swinging for XM
The Consumer Electronics Association (CEA) is blasting the major record labels for their lawsuit against the new XM Satellite Radio receiver with recording capabilities, saying the new device is clearly legal under a law that the labels helped to draft. "The lawsuit is yet another ambush in the labels' ongoing war on innovators and consumers," CEA charged. In chastising the record companies, CEA noted that XM already is the largest single payer of digital music broadcast royalties, plus the record labels receive royalties on every XM recording device sold as provided by Congress under the Audio Home Recording Act (AHRA).
RBR observation: We were there on Capitol Hill for the AHRA hearings back in the 1990s and the only people at the hearings more clueless than the Members of Congress on where technology was heading were the record company reps. At one hearing they displayed the "enemy" that was threatening to destroy the music business, insisting that the record labels had to be paid a royalty on each one sold - never mind that there was no music on it - because consumers were going to use them to hold pirated music and drive the record labels out of business. That "enemy" was a DAT tape. Read more in
05/22/06 RBR #100
|
|
|
|
 |
Staff Engineer
One of the Nation's Top Syndication Companies has immediate opening for Staff Engineer. Ability to take initiative, work unsupervised, quickly analyze and repair issues, learn quickly and document all work required. This is a fast paced high pressure environment, must be able to think and act professionally in emergency situations. EOE
See Radio Careers
TV Media Sales Executive
TVBR (RBR’s sister E-paper) needs just one (1) person that has the closing contacts in the Television & Cable business to bring in the Ad dollars to TVBR with our Monthly Solutions Magazine and earn 6 figures. NO Relocation necessary. Contact me in Confidence: EOE
See TV Careers
Hard finding that key person
to fill the important position at your organization? TVBR's - Media HeadHunters is the place that key media firms use to get results. See www.mediaheadhunters.com and get results with service--Period.
|
 |
|
|
|
|
Help Desk
|
Having problems with our epapers?
Please send Questions/Concerns to:
[email protected]
If you wish to remove your name completely from our database use this link __UNSUB__
RBR Epaper -- 108 annual
or just 9 a month
|
|
|
|
©2006 Radio Business Report, Inc. All rights reserved.
Radio Business Report -- 2050 Old Bridge Road, Suite B-01, Lake Ridge, VA 22192 -- Phone: 703-492-8191
|
|
