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Volume 22, Issue 106, Jim Carnegie, Editor & Publisher
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Tuesday Morning May 31st, 2005
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Radio News®
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 2005 Radio forecast goes Lower
Half way to closure in '05 the number guru's begin to play spin the wheel of fortune. "Although there have been some markets with promising revenue growth, we continue to see the same disappointing growth rates of the past two years. While there have been efforts to bolster the prospects of the radio industry, it will take some time for these initiatives to sufficiently impact stronger industry growth," said BIA Financial Network (BIAfn) Vice President Mark Fratrick, pictured, obviously alluding to Clear Channel's Less is More initiative. Thus, after analyzing five months of data, BIAfn has reduced its forecast of 2005 radio revenue growth to 3.3% - - down a tenth of a percentage point from its March forecast of 3.4%. The company analyzes data market-by-market on a quarterly basis. While he notes that BIAfn has raised its 2005 forecast for 17 markets, at the same time it has lowered them for 34. "While many of these changes were minor, some markets have shown surprising growth. We now expect San Francisco to see revenue increases of 5% instead of 2.5%, and Boise, ID will enjoy a 6% growth rate instead of the 3.4% originally estimated. On the flip side, BIAfn projects major markets such as Washington, DC, Detroit, Minneapolis, Cincinnati, Memphis, and Macon will experience a 2% decline in their estimated growth rates," Fratrick said. But while the outlook for five of the top 10 markets has dropped, Fratrick said those are mostly minor changes, so the good news is that BIAfn's estimates haven't changed much from one quarter ago.
RBR observation: Through Q1, RAB reported that radio revenues were up 2% overall, with national up 3% and local up 2%. Although Universal McCann's Bob Coen is the most closely watched media forecaster, we're hard-pressed to see how radio is going to get to the 5% growth he's forecast for this year. Fratrick''s projection seems more likely - - and it's more in line with what Wall Street analysts are now expecting. Coen will be revising his numbers next month, so we'll be waiting to see if he hangs tough at 5%. Last key piece of advice is getting your business plans in focus for 2006 as the question is - 'Will you be able to compete next year if you don't properly fix problems right now because the clock is ticking.'
 7th grader gives Redstone a grilling
It was the highlight of Viacom's annual shareholders meeting. 12-year-old Joshua Block, who owns two shares that his grandparents gave him, stepped up to the microphone and noted that a year earlier, CEO Sumner Redstone had told shareholders that everything was OK between him and then-President Mel Karmazin. A few months later, Karmazin was out the door. So, Block wanted to know, was there anything else going on that shareholders would want to know about? After the laughter died down, Redstone assured the young shareholder than he hadn't lied the year before - - that things then were "only OK" between him and Karmazin, but that things are much better now in the Viacom executive suite. Afterward, Block told reporters he wasn't satisfied with Redstone's answer. There were also union protests at the meeting, since CBS is in the midst of negotiating a new contract with its newswriters, and objections to the big pay packages for Redstone and other top execs while the company's stock price continued to languish. But there was nothing new to report on the biggest issue for most Viacom shareholders - - Redstone's plan to split the company in two. As previously announced, he expects the board of directors to vote by the end of June on making the split. So, shareholders won't see the nitty gritty details for a few months - - with the actual division expected to take place in Q1 of 2006.
Part 1, DTV: Broadcast v. Cable
One of the huge sticking points remaining to be resolved going into a successful DTV transition is the issue of must-carry. It is notably an issue not addressed at all on the discussion draft of the "DTV Transition Act of 2005" currently under consideration by the House Subcommittee on Telecommunications and the Internet. We believe there is general agreement, or at least general acceptance, that cable operators will be required to carry the main signal of all broadcast television stations in their market. We're talking 6 kHz of bandwidth for the new digital signal, enough to put out high definition (HDTV) programming. However, with current technology, broadcasters could fit up to six program streams into that same amount of bandwidth whenever they are not in HDTV. Cable operators don't want to be forced to carry any more than one stream (although it may carry more via individually-negotiated contracts). And one of the last acts of Michael Powell at the FCC was to side with cable on grounds that forcing them to carry more than one stream could not be defended in court. Broadcasters, on the other hand, think their full programming stream should be carried regardless of how they choose to use it - - as Barrington Broadcasting's Jim Yager told the panel, "6 kHz if 6 kHz."
Tomorrow: Look at how the Political party is divided on multicasting.
TVBR observation: Who should figure this out, industry or government?
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More Lowdown on down-converters
In his opening comments at the House Subcommittee on Telecommunications and the Internet last week, Cliff Stearns (R-FL) gave voice many items on the Republican wish as the DTV transition goes into the beginning of the endgame. While many Republicans have said they'd support at limited subsidization of digital-to-analog downconverters, he said he was against such a program. His investment would be in consumer notification - - with enough warning, he said that everyone, regardless of their financial condition, should be able to afford their own equipment. With a year's notice, a 50 dollar converter box could be acquired by putting away 14 cents a day. The democrats on the panel could not have disagreed more. "Government is imposing a burden on consumers, and government has a responsibility to alleviate that burden," said Albert Wynn (D-MD). "You do not mess with America's car or America's TV," said Bobby Rush (D-IL). "If you're one of the consumers that has an analog clicker in one hand, you'd better have your other hand on your wallet," said Ed Markey (D-MA). Numerous other Republicans, up to and including Energy and Commerce charm Joe Barton (R-TX), indicated that they would support limited, usually means-based subsidies. Dems were generally inclined to provide converters universally with proceeds from the resulting spectrum auction. How it would be done: Without recommendation or endorsement, Mark Goldstein of the Government Accountability Office put on the table four methods for handling subsidies. "Several administrative options could be used to provide a government subsidy to help households obtain DTV equipment," he testified, "including a refundable tax credit, government distribution of equipment, a voucher program, and a rebate program. The suitability of any of these methods depends on aspects of the subsidy's design, such as which entity is most appropriate to administer the subsidy and who would be eligible to receive the benefit."
 Foul shot?
Will NBA put ads on uniforms?
NBA Commissioner David Stern feels that advertising on team uniforms is inevitable, although the league says there are no such plan at this time. In fact, at the moment, the manufacturer of the uniforms, Reebok, isn't even allowed to sew a logo on. However, Stern thinks that will change - - he said the price must reflect the value, and Dallas Mavericks maverick owner Mark Cuban said he wished it was a policy in effect now. RBR checked with respected NBA news outlet Hoopsworld.com and Swish Magazine's Publisher & Editor Steve Kyler on this possibility and the findings have: "The NBA has only said it would consider branding similar to that of professional soccer, only if the price is right. This is the NBA "Chumming" the waters to see what the value is. If the right signature sponsor came along - say Coke or Pepsi and was willing to drop the 300 million to 600 million a year the NBA would hope to fetch from such an idea then the NBA would bite. The concept would have to blend into to existing designs and logos, not the "slapped" on patches found in NFL Europe. Baseball seriously considered on field advertising, with the theatrical release of Spiderman 2 using the bases... The NFL has radically increased its near field advertising space and there continues to be talk of adding sponsorship space in the End Zone. TV networks have been selling ad space around in-game events for years - such as The Dodge "Keys To The Game"... Subway's Sub Of The Game... and so on. The jersey is simply the next logical step in an industry that's continues to find new revenue streams to meet ever rising costs.
RBR observation: In other words - Bob's Tire Barn is not gonna find its way onto an NBA jersey at any price. Keep in mind this was the same league that fined its players $10,000 for wearing their shorts too long - the image on court is very important to the NBA and they routinely alter rules to insure the "on court" image is of the highest standards they can enforce. On the field/court of play it was bad enough when they started selling stadium naming rights but sports has become a big league business and like all businesses they need the money churn. The major question for all media is National and Local ad dollars when a shift is made in spending. If Pepsi or Coke ponies up the millions for the jersey logo then where is that ad money being shifted from? Again product placement and National business is at high risk. If you are a media outlet that has broadcasts rights our suggestions is learn to integrate your brand with this potential opportunity. Editor's note: Steve Kyler hosts a weekly sports program called The Game (thegameradio.com) which is broadcast on ESPN Florida heard across all of Central Florida and on the internet via web stream. Steve's company Basketball News Services offers products and services to sports radio stations and is a must for those stations carrying NBA programming, bringing locker room insight and bringing up your local sales.
 "Pirate" broadcaster in Ohio
is Clear Channel stunt
Last week, listeners in Akron, OH heard a pirate-radio broadcast that kept bleeding into the programming on a few CC Radio stations including WNIR-FM and WKDD-FM there. The fake pirate broadcasts and website, RadioFreeOhio.org, are all a promotional prank from CC Radio to hype an impending format switch, we are guessing WNIR-FM Akron, if it's a progressive Talk format, and WKDD-FM if it's a new music format (Could it be Indie Rock?). With the slogan "Changing Ohio Radio," the website purports to be a movement of "concerned individuals who are compelled by their overwhelming sense of patriotism and pride to no longer accept what is considered the standard method of operation by a majority of commercial broadcasters." The group claims it has been struggling to acquire the rights to a station in the area to bring "progressive conversation and viewpoints to the American public," which led to the decision to begin its "pirate" broadcasts from an abandoned rubber factory. The site then lists a number of stations in Cleveland-Akron that should be forced to give up their licenses, with put-downs about their programming. "The radio revolution begins Tuesday, May 31." We shall see!
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Adbiz©
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 Ray Warren on the upfront
As most of the broadcast nets were writing upfront business on Friday before the Memorial Day weekend, with ABC almost wrapped up and NBC still trailing the pack, we had a chance to speak with Ray Warren, Managing Director, OMD USA. He's been on both sides of the desk, also working as a network seller doing the upfronts for a couple years. Ray had some comments that back up what we've been hearing--that cable didn't get off to quite a good start this time around as last year: "There were some cable deals done early, but I thought cable came out a little hot and we need to let them cool off a little bit."
So cable may have thought this would be a repeat of last year, starting off before broadcast, and it just isn't so this time?
"No...we had to just let them know that we didn't think we were like-minded, and therefore, we're not looking to do deals [right away]."
Is this because broadcast has stemmed the tide of erosion this time around with stronger shows, as we discussed in our May RBR/TVBR print feature?
"It's kind of like one pot of money, then you have to decide what is the best place to put it all and you look for value. And the broadcast value proposition got a little better this year."
Tomorrow: Carat Americas CEO David Verklin speaks about upfront activity, as of 5/27. Also, if you missed it, check out what Jon Mandel, Andy Donchin, Ira Berger and an anonymous seller told us about this year's upfront last week:
(5/25 RBR #103) (5/26 RBR #104) (5/27 RBR #105)
Research guru discusses XM ratings report
We asked a well-known industry research guru about XM's "Custom Listening Study" from Arbitron, sent to agencies for a year or so now. A radio buyer had sent the report to the researcher, who looked it over for both of us. This was the latest report, Fall 2004 (mid Nov.-mid-Dec.). The researcher had a few questions and concerns on the methodologies. | More... |
Schwab consolidates planning and buying with PHD
Charles Schwab announced the consolidation of its media planning and buying assignments with PHD USA. Schwab completed a formal review which included incumbents PHD and RPA, and MPG. PHD has held media planning responsibilities for all of the company's offline advertising, and managed print and out-of-home media buying since 1997. PHD will assume additional responsibilities previously shared with two other agencies: RPA of Santa Monica, which has held broadcast media buying responsibilities for Schwab since 1990, and KP Media of San Jose, which has managed online planning and buying since 1997. PHD's responsibilities will include media planning and buying for Charles Schwab, as well as for its Charles Schwab Bank, Cybertrader and U.S. Trust subsidiaries. "We are very excited and pleased that Charles Schwab has appointed PHD as their full service media partner," said Steve Grubbs, CEO of PHD NA. "It will enable us to impact Schwab's business growth through complete strategic integration of online and offline communications. We are thrilled that Schwab has acknowledged the fine work of our PHD San Francisco team and entrusted PHD USA with their consolidated media responsibilities."
American Century Investments
selects TBWA\Chiat\Day NY
American Century Investments has selected TBWA\Chiat\Day New York as its creative AOR following a comprehensive review. American Century also awarded its interactive advertising responsibilities to TEQUILA\New York, TBWA's marketing services network and media responsibilities to OMD New York. TBWA and OMD are both Omnicom Group Companies.
 Wieden+Kennedy scores EA
Electronic Arts and Wieden+Kennedy announced that they will work together on EA's global advertising business. After having worked closely on two of EA's key franchises last fall, EA now is moving the majority of its print and broadcast advertising business to Wieden+Kennedy Portland. The shop will take the lead on EA's North American business and W+K Amsterdam will manage the European assignment. In signing this deal, W+K will bring their expertise in branding to some of the most well-known videogame franchises in the industry including The Sims, Madden NFL, FIFA, Need For Speed and up and coming blockbuster EA game franchises including The Godfather and James Bond. The first media campaigns under this new agreement will be Medal of Honor European Assault, NCAA Football 06, Madden NFL 06, and additional EA titles shipping this summer.
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| Media Business Report |
Green Bay to be one paper town
Green Bay, WI is not only the smallest city to have an NFL team, it's one of the smallest to still have two daily newspapers. That's about to change. Come this Friday, the Green Bay News-Chronicle will publish its last edition. The end had been expected, but still hit hard in the newsroom. Gannett, which already owned the Green Bay Press-Gazette, bought the News-Chronicle less than a year ago, not so much for the daily, but for the 33 shoppers and non-dailies owned by its parent company. "The News-Chronicle had a long history of financial struggle and there was no indication during our ownership that its trend of poor performance could be reversed," said Publisher Ellen Leifield, Midwest Group VP for Gannett. Only six full-time and eight part-time employees are being pink-slipped. The other 25 full-timers are being offered comparable jobs at other Gannett operations in the area.
MBR observation: The News-Chronicle has had a remarkable run, if not a profitable one. Born as a retaliatory tactic by striking Press-Gazette workers in 1972, TVBR Executive Editor Jack Messmer remembers the paper a few years later, while he was at WNFL-AM, as a scrappy daily with its staffers working hard to outmaneuver the much larger staff of their competitor. Even then the News-Chronicle was perennially "financially challenged," although it had stabilized somewhat after being sold to the shopper publisher, Frank Wood. It's doubtful that Wood ever made a nickel off of the paper, but it added prestige to his operation to have a daily. Gannett didn't need a hobby - - it already had a daily in Green Bay, a bigger one - - so it was inevitable that declining circulation and ad sales at the News-Chronicle would lead to Green Bay becoming a one paper town.
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| Media Markets & MoneyTM |
 Disputed CCU station acquisition approved
Clear Channel will be allowed to acquire WQYZ-FM Ocean Springs MS in the Biloxi-Gulfport-Pascagoula Arbitron market, according to a ruling by the FCC. It had been the subject of two different challenges. CCU some time ago cut a three-way deal for the station with Golden Gulf Coast Broadcasting (GGCB) participating, valued at almost 1.29M. One complainant, Douglas A. Hutcheson, was sent away with a dismissal. He argued that CCU dealings involving another station in another market had bearing on the Biloxi deal - - the FCC said it was irrelevant. Another complainant, WJZD Inc., aired numerous beefs, one of which involved an LMA between GGCB and CCU for the station. The FCC noted that the LMA was legit, and that seeming irregularities - - such as CCU moving the station into its own building - - were fine within the parameters of the law. What wasn't fine, however, was GGCB's failure to notify the FCC that the station's main studio address had thus changed. That cost it 7K for failure to maintain a main studio presence. And CCU is cleared to finish its acquisition.
Close encounter at the Junction
Grand Junction CO, that is, where Media Services Group broker Jody McCoy tells us there has been a changing of the keys. KSTR-FM is now in the hands of Richard Dean's Maranatha Broadcasting Company. In exchange for those keys Brad Leggett's Leggett Broadcasting is counting a stack of bills some 900K high, figuratively speaking.
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| Washington Beat |
Reporters find friendship among state AGs
A clear plurality of state attorney generals is getting set to file a friend of the court brief with the Supreme Court in support of shield protection for reporters who get into hot water for protecting confidential sources, according to an Associated Press report. In fact, it would be a veto-proof plurality, if such a thing were applicable (which of course, it isn't) - - 34 AGs are signed up to sign the brief, representing 68% of the 50 states, and representing members of both the Republican and Democratic parties. The filing is in support of reporters Judith Miller of the New York Times and Matt Cooper of Time Magazine, concerning their role in reporting the exposure of CIA operative Valerie Plame.
Tennessee House vets look to upgrade chambers
Three veterans of the US House of Representatives are among the announced candidates for the Senate seat being vacated by Majority Leader Bill Frist (R-TN). The latest to jump in is currently serving - - Harold Ford (D-TN) made it into the national spotlight as a keynoter in 2000 at the convention which nominated the Al Gore/Joe Lieberman ticket. He's facing a state legislator in the primaries. Two former Republican reps are facing off for that party's right to run in November - - Ed Bryant and Van Hilleary are in a three-way race with ex-Chattanooga mayor Bob Corker. Hilleary failed in an attempt to win the statehouse and Bryant lost to Frist for the Senate seat, both in 2002. A local professor of political science told AP Ford should have no trouble getting his party's nod, but may run into statewide name recognition problems in relation to his opponents thereafter.
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| Programming |
 Univision launches
"La Kalle" in New York
Two days after SBS launched a Reggaeton/Hip-Hop station in Los Angeles (5/27/05 RBR #105), Univision claimed the territory in New York. "La Kalle 105.9/92.7 FM" (WCAA/WZZA) is aimed at Hispanics in the 18-34 demo. "Jamaican reggae music and urban hip-hop has taken the New York market by storm," Univision declared in announcing the new station. It said a recent Nielsen SoundScan report of Latin album sales found that eight of the top 10 albums sold in the New York are were of Reggaeton music.
CMA switches to ABC after 34 years on CBS
The Country Music Association awards show will air next year on ABC after 34 seasons on CBS. Ed Benson, head of the CMA, said the switch will mean several million dollars more in licensing fees. He also said ABC presented an attractive marketing plan to promote the show on its other programs. The show, usually held each November, will originate this year from NYC after being staged in Nashville.
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| TVBR - TV News |
 The final numbers:
Fox by a nose for 18-49
That's all that was ever in doubt, since CBS was well ahead of the pack for household ratings, persons 2+ and most other demos. But Fox has bragging rights to the big bucks 18-49 demo, if only because of the good luck of having the Super Bowl rotation this year. After trailing badly through the first half of the season, Fox picked up steam in the back half on the strength of the Super Bowl and its annual blockbuster, "American Idol." In the end, it held onto the 18-49 crown by a margin of 140,000 viewers, scoring a season average rating of 4.1 and an 11 share to CBS' 4.0/11. For total households in primetime, CBS won handily with an 8.4 rating and 14 share. Despite its declines this season and 4th place finish 18-49, NBC still managed a virtual tie with ABC for second place with a primetime HH rating/share of 6.5/11. But the Peacock network also fell to 4th place for viewers 12+.
TVBR observation: Idol held strong, and even drew a bigger audience for its 4th year finale than for the third year, so it appears that the franchise is not yet getting stale. But between now and next January, what is Fox going to do to strengthen its non-Idol ratings? There's no standout in the new shows (although something could become a surprise hit), returning shows like "House" and "The O.C." are doing well, but some of Fox's offerings are getting a little long in the tooth, like "That 70s Show," "Malcolm in the Middle" and "The Simpsons." The good news for Fox, though, is that there's not much buzz about the new shows coming from its competitors this fall either. Are we in for a battle of the dull next year?
TV's top shows - - the final tally
The 2004-2205 network TV season is officially over and the winner is... "CSI." The CBS hit edged out Fox's "American Idol" and ABC's "Desperate Housewives" as the most watched regular series of the past TV season. In all, CBS put six shows in the Nielsen top 10, ABC two and Fox two (although both were "Idol," which airs episodes on both Tuesdays and Wednesdays). The once-mighty NBC's best showing was #13, with Donald Trump's "Apprentice 2." Here's the entire list, from "CSI" down through Pax's "Cold Turkey II." | Nielsen Television Index Ranking Report |
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| Monday Morning Makers & Shakers |
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Transactions: 4/18/05-4/22/05
What three fairly large transactions couldn't do last week, one station almost accomplished on its own - - the feat of pushing the weekly station trading total into triple digits. An FM in a top five market will do that (see below). There was just enough value underneath to push it over the top in what was otherwise another basically slow week.
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Total
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Total Deals
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12
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AMs
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4
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FMs
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11
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TVs
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0
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| Value |
101.15M
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| Complete Charts |
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Radio Transactions of the Week
Infinity shows it cares for KEAR
| More... |
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TV Transactions of the Week
Back to the nap room...
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| Transactions |
2M KSUD-AM Memphis TN (West Memphis AR) from Educational Media Foundation (Richard Jenkins) to Simmons-Austin LS, LLC, a subsidiary of Simmons Media Group LLC (David E. Simmons). 200K escrow, balance in cash at closing. LMA 5/1/05. [File date 4/28/05.]
2M WQBS-AM Puerto Rico (San Juan PR) from Aerco Broadcasting Corporation (Angel O. Roman-Lopez) to International Broadcasting Corporation (Pedro Roman Collazo). Swap for WRSJ-AM Bayamon & WCHQ-AM Quebradillas. Price is RBR estimate. Consolidation with WEKO-AM Morovis, WGIT-AM Canovanas, WIBS-AM & WXRF-AM Guayama, WTIL-AM Mayaguez & WVOZ-FM Carolina. Crossownership with WVEO-TV Aguadilla, WTCV-TV San Juan, WVOZ-TV Ponce & WIVE-LP Ceiba. [File date 4/28/05.]
2M WRSJ-AM & WCHQ-AM Puerto Rico (Bayamon, Quebradillas PR) from International Broadcasting Corporation (Pedro Roman Collazo) to Aerco Broadcasting Corporation (Angel O. Roman-Lopez). Swap for WQBS-AM San Juan PR. Price is RBR estimate. Crossownership with WSJU-TV San Juan PR. [File date 4/28/05.]
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| Stock Talk |
Stocks flat ahead of holiday
The stock market moved sideways in light trading Friday as traders prepared for the three-day Memorial Day weekend. The Dow Industrials edged up five points to 10,543.
Radio stocks were slightly lower. The Radio Index slipped 0.757, or 0.4%, to 202.105. There were no big movers for the day. Cumulus and Clear Channel were each down 1.4%. Entercom gained 1.1%.
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| Radio Stocks |
Here's how stocks fared on Friday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
|
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40.56
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-0.28
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Jeff-Pilot
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JP
|
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50.41
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+0.07
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Beasley
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BBGI
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16.36
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-0.02
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Journal Comm.
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JRN
|
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16.85
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+0.16
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| Citadel |
CDL |
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11.97 |
-0.03 |
Radio One, Cl. A
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ROIA
|
|
12.57
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+0.02
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Clear Channel
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CCU
|
|
29.73
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-0.41
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Radio One, Cl. D
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ROIAK
|
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12.57
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+0.07
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Cox Radio
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CXR
|
|
16.06
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-0.06
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Regent
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RGCI
|
|
5.91
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-0.05
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Cumulus
|
CMLS
|
|
12.39
|
-0.18
|
Saga Commun.
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SGA
|
|
14.08
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-0.03
|
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Disney
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DIS
|
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27.88
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+0.08
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Salem Comm.
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SALM
|
|
18.32
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-0.10
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Emmis
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EMMS
|
|
17.76
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-0.20
|
Sirius Sat. Radio
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SIRI
|
|
5.97
|
+0.18
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| Entercom |
ETM
|
|
33.27
|
+0.37
|
Spanish Bcg.
|
SBSA
|
|
8.46
|
+0.08
|
|
Entravision
|
EVC
|
|
7.60
|
-0.03
|
Univision
|
UVN
|
|
26.64
|
unch
|
|
Fisher
|
FSCI
|
|
50.23
|
-0.03
|
Viacom, Cl. A
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VIA
|
|
35.09
|
-0.25
|
|
Gaylord
|
GET
|
|
42.15
|
+0.12
|
Viacom, Cl. B
|
VIAb
|
|
34.93
|
-0.27
|
|
Hearst-Argyle
|
HTV
|
|
25.07
|
+0.08
|
Westwood One
|
WON
|
|
19.87
|
-0.09
|
|
Interep
|
IREP
|
|
0.50
|
+0.03
|
XM Sat. Radio
|
XMSR
|
|
31.81
|
+0.17
|
|
International Bcg.
|
IBCS
|
|
0.01
|
unch
|
-
|
-
|
- |
-
|
-
|
|
|
|
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Bounceback
|
 We want to
hear from you.
This is your column, so send your comments to [email protected]
Should an employee be fired for an accidental indecency?
(5/23/05 RBR #101)
 Regarding the Arthur Chi'en F bomb on WCBS, what happened to the venerable broadcast rule - - Consider all microphones live, even if they aren't plugged in? (Remember Uncle Don and "That'll hold the little bastards!") And why would a broadcaster have a mind-set that would allow the use of the F word, no matter what the situation?
Robert Conrad
President
WCLV, Cleveland
Your item on the firing of Arthur Chi'en understandably misstates a bit of FCC regulatory history. The reference to Bono's "excited utterance" (my phrase) of the word in accepting a Golden Globe award ("this is f---ing brilliant") was considered in actionable not by the FCC but in a ruling by the then-Chief of the Enforcement Bureau, David Solomon. On review, however, the FCC reversed Solomon and admonished NBC-TV for airing the word, holding that the word "f---" and its variations is indecent per se. That unfortunate ruling came back to haunt the Commission in the Saving Private Ryan matter, where the Commission realized that context matters! As for Mr. Chi'en, my sympathy, but there is a saying in Washington that you should never say or write anything that you would not want to see in the Washington Post. It seems one should never say anything remotely near a microphone -- on or off -- that might cost you your job.
Roy R. Russo
Cohn and Marks LLP
Washington DC
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TVBR News Analysis
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NBC looking to
cable for filler?
Radio opportunity for cross-platforming only If
Remember back when ABC was in the ratings cellar and it started running "Monk" from USA Network to try to attract viewers? Well, now that NBC is the network suffering from declining ratings, they're saying it's about to do the same thing - - turn to cable. The Peacock net has struck a deal with Court TV to air episodes of "Psychic Detectives" this summer as the 8-9 pm (ET) Wednesday night lead-in to "Law & Order." NBC had previously aired episodes of Court TV's "Forensic Files" back in 2002 (when NBC was not so ratings-challenged) and the two co-produce "Dateline/Court TV" specials.
Publisher observation: WOW. What a light bulb idea. Now - - Attention NBC the Peacock looking for Content - - Hello again - - You can revitalize the show you cancelled - - American Dreams. You heard about my passion for this program or if you forgot, re-read it - TA DUM - 04/29/05 TVBR #85. Keep this series going and capitalize on the already loyal audience. Plus I see at least another spin off of American Dreams and it is entertainment and youth-driven. If you could see past your feathers it is already in your face. American Dreams, youth, dance and cable is the place for this program.
Reminder - - JL Media SVP/Director of Broadcast Services Rich Russo who knows radio and spends lots of money in this medium laid out the programming format for NBC - 'NBC doesn't get it - (Radio's Opportunity to Cross Platform' 05/04/05 TVBR #88.) Russo hits it on the CD hit single - - "What is more appalling on the marketing side in the case of something like "American Dreams". Here you have a scripted show that features a built in marketing component that has been grossly overlooked: Current artists redoing great songs from the 60's. Why doesn't NBC set up a deal with every R&B station to play Usher covering Marvin Gaye or John Legend doing Stevie Wonder? It's a built-in day-after promotion on radio, or better yet, play it the day of the program to hype the show. NBC, you own the USA Network, so that is where you build with solid content - - we all know cable is grabbing the ad dollars. American Dreams Executive Producer Jonathan Prince has become an expert in ad content placement. NBC turn your GE bulb on to high and see the light. If you don't get then - - call me. The advice will be free.
05/27/05 TVBR #105
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RBR Radar 2005
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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SBS goes bilingual in LA;
Emmis heads to court
KXOL-FM Los Angeles, formerly "El Sol," has relaunched as "Latino 96.3" - - targeting 18-34 year old Hispanics with a mix of Reggaeton and Hip-Hop. Former air staffers have been pink-slipped and the search is on for new DJs. But the move has Emmis up in arms. It leases tower space to SBS for KXOL and says the new format violates the provision that SBS can't compete with an Emmis station in LA. Look for court action to follow.
RBR observation: What's the legal beef? Earlier this month the local web blog LARadio reported that SBS had shelved plans to go bilingual and youth oriented because Emmis had invoked a clause of its lease that let it veto any format on KXOL that would compete with KPWR-FM, which goes after the young demos and has a 40% Hispanic audience. Now, though, SBS has apparently decided to go ahead anyway and let the lawyers fight over whether the new format competes with KPWR. Emmis says it does: "In Los Angeles, Emmis has leased tower space to SBS under the stipulation that any format change cannot conflict directly with an Emmis station. It is our position that SBS's actions have violated this condition of the agreement. Emmis intends to take appropriate action to enforce this provision of the lease." So say hello to a long court battle and people always like a good fight especially when it is in LA. Emmis could sell LA if they choose before this fight is over and SBS has taken a hunk of numbers into their ratings and bank books. 05/27/05 RBR #105
On 12/31/08,
kiss analog TV good-bye
The House Subcommittee on Telecommunications and the Internet entertained a panel of no less than 11 witnesses as it discussed the Staff Discussion Draft of the DTV Transition Act of 2005. At this point, nothing is set in stone, much less ink. We witnessed it personally as RBR was there and we viewed the audience and did not seem to be a single person who objected to setting 12/31/08 as the last day for analog TV broadcast. TVBR observation: Don't buy a new TV set, LCD or DTV monitor until 2008.
05/27/05 RBR #105
Anonymous on the TV upfront
Right now there are very preliminary kinds of conversation. Everyone is saying, sit tight. We'll call them and ask if anything is going on...anything happening, can we do anything? No, just sit tight, we're trying to get our budgets, etc. I think they all want to know what the networks are doing because the networks are obviously sending a signal that they're going to be very accommodating this year. So if that's still the linchpin, and regardless of what everyone says in the trades, it is the linchpin of your national buy as far as television is concerned, you've got to do that first. 05/27/05 RBR #105
Stern will have fewer commercials
Zen Master Mel Karmazin says fewer commercials than the 20 minutes per hour that his show currently carries on Infinity. any other big personalities going to be signed by Sirius? Don Imus? "He's very greedy," Karmazin said, suggesting that he'd like to have the "I-Man," but doubted that the math would work. RBR observation: Speaking of math, what was Mel smoking before he suggested that satellite radio could reach 300 million subscribers? What a salesman. But at some point satellite radio is going to have to prove to Wall Street that it can turn a profit. Sirius claims it can go cash flow positive in 2007. But rival XM has to meet its own cash flow positive commitment this year. We remain skeptical that either company will ever reach that point. It's a good thing Mel already has that waterfront house in Naples, Florida.
05/26/05 RBR #104
Andy Donchin on the upfront
Carat Americas Director of Broadcast Buying - still in the talking phase right now and thinks it will be heating up soon. Any programs out there getting your attention? "No. I'm still definitely a believer in broadcast television, but support cable in a big way, and syndication. There's really not to say right now, as I said, we're still feeling each other out and talking-kicking the tires.
TVBR observation: We told ya - no big rush and business will be under the microscope so best get your business plans in order now if you want to compete in 2006. Radio & Television Business Report's June issue has a close-up view. If you didn't sign in you won't get it. 05/26/05 TVBR #104
Some real ad nauseum
Energy company BP has joined Morgan-Stanley in instituting a policy in which any magazine advertising they may have booked is to be pulled if the magazine contains any editorial the company feels is negative or otherwise objectionable. The BP directive asks that publishers notify both their sales and editorial staffs about the policy.
RBR observation: Editorial department here. We note this because this type of thing is just as applicable to radio and TV advertising. We dearly love our sales staff, especially on payday, but it is absolutely critical that we have an arms-length relationship when it comes to content. Without editorial integrity, there would be no point in reading us, nor would there be any point in advertising with us. Our sales staff has yet to be granted editorial privileges, just as our editorial staff has no say in what ads are sold, what they say or what they look like. Advertisers, if you want to control editorial in the magazines you advertise in, we suggest you do what Clear Channel did: Buy one.
05/25/05 RBR #103
Jon Mandel on the upfront
Chairman/MediaCom US and Chief Global Buying Officer MediaCom Worldwide - Indeed, the 2005-2006 upfront isn't starting off with a rush or panic, as in recent years. Mandel's observation - "There's that, and also, if you're going to do the job right, you take the time to do the estimates properly; you take the time to watch every single pilot; you take the time to talk to the producers about where the shows are going. You don't just go and buy based on two-minute clips. People that do that aren't doing a good media job. They're just buyers. The reason why clients get crazy at the business is because they feel that people don't give it the proper thought. And you can talk strategy all you want, but when you go and do conceptual deals without having watched the shows and matched the shows, the audience and the brand you're advertising, then you're doing a disservice to your client and you're doing a disservice to the industry." 05/25/05 RBR #103
Cumulus loss not crippling blow
Business will continue as usual at Interep, despite losing Cumulus as a client Interep CEO Ralph Guild told RBR .. it is not a crippling blow by any stretch of the imagination." Interep has operated a boutique rep as Cumulus Radio Sales, it had no employees who were exclusively repping the stations, so no staffers will lose their jobs or have to be reassigned. RBR observation: Cumulus has indicated that it plans to honor the terms of its contract with Interep, which still has several years to run. So, look for Interep to receive contract termination payments. We're still waiting for confirmation from Cumulus CEO Lew Dickey - - and word on what he expects to get from Katz that Interep couldn't, or wouldn't deliver. Our expectation in a word 'Future' and in many cases a major difference in age brings a major difference in business philosophy or just the old saying of philosophical differences. It will be interesting to see the business plan Allen & Co. come up with for Interep that will take them into the increasing total media competitive arena before the close of this year as it will not be business as usual in 2006. 05/25/05 RBR #103
Product placement in
Neil Simon Broadway play
As part of a product placement campaign in Broadway's Sweet Charity, playwright Neil Simon approved a script change to promote Jose Cuervo's Gran Centenario tequila. Sweet Charity stars Christina Applegate. Simon approved a script change to incorporate the brand into the dialog. The brand logo will also appear in set and ads will be placed in the playbill. NY-based Bridge to Hollywood/Broadway put the deal together-it previously brokered product placement deals for appearances in Thoroughly Modern Millie and Raisin in the Sun.
RBR observation: Ok this is hard beverage dollar shit but it pushes the point that more national spot dollars will move into this environment in 2006. 05/24/05 RBR #102
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Mergers & Acquisitions
Firm Est. 1959 needs 'Rainmaker' in the Southeast and New England territory. Looking to get established in the media brokerage business this is the time.
GSM Opportunity with Emmis
Legendary KSHE-95 St Louis needs a strong GSM with minimum 5 years battle experience and NTR skills a plus. Generous benefits and compensation await. Are you ready for this challenge!
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