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Welcome to RBR's Daily Epaper
Volume 22, Issue 108, Jim Carnegie, Editor & Publisher
Thursday Morning June 2nd, 2005

Radio News®

When will Infinity cut spot loads?
Infinity has announced plans to reduce spot loads on 60 of its more than 180 stations, but Wachovia Securities analyst Jim Boyle says he hasn't seen any evidence of it yet in his monthly analysis of top 12 market data from Media Monitors. But he is pleased that radio operators resisted the temptation to add inventory in May - - historically the top month for radio ad demand and revenues - - and held to an FM drive time average of 12.0 units per hour for the month. "There is still room for improvement, in our view, as several groups maintain inventory levels above the industry average. Such groups include Emmis, Infinity, Disney, Susquehanna, Beasley and Greater Media, to name a few. We think that the next crucial step is for Infinity to slash its spot load level, which has been above 13.0 units per hour on average (drive time - - FM only) since January 2005," Boyle wrote. So when is the effort by many groups, led by Clear Channel's Less is More initiative, going to pay off? Boyle says it is already - - but not for all stations or all markets. "Some radio groups are indeed regaining the pricing power that was lost in 2003 and 2004. On the quarterly conference calls (just a few weeks ago), we heard that advertiser demand had increased in various markets and across several categories, with critical auto being one of them. We still expect the rest of the year to be choppy, with some months better than others. Overall, however, we are pleased with the changes that are evolving in radio - - at both the product and operational levels," Boyle said. | View the Chart |

Will Supremes decide to redecide 3rd Circuit?
The Supreme Court has a private session on today's schedule during which it will decide whether or not to take a look at the Third Circuit Court's decision to send the greater bulk of the FCC's monumental - - and monumentally stalled - - 6/2/03 media ownership rulemaking back to the Commission for reconsideration or rejustification. Broadcast companies have legal eagles ready to squawk, even while the watchdogs bark. According to the Legal Times, six big media companies are joining the NAB in asking for Supreme intervention - - Tribune, NBC, Viacom, Media General, Sinclair and Gannett. Despite the fact that the 3rd Circuit ruling was widely regarded as a slap at the FCC for going to far down the deregulatory path, LT believes the media companies will argue that the FCC didn't go far enough. Unfair restriction of the companies' First Amendment rights is expected to be a cornerstone argument, along with failure of the new rules to take into consideration the deregulatory bent of Congress's 1996 Telecommunications Act. Watchdogs, on the other hand - - including FAIR, Center For Digital Democracy, Media Alliance and Consumer Federation of America, are said to be arguing that the industry is challenging rules which may not exist, since they are under reconsideration, and that any challenge is therefore premature. LT speculates that SCOTUS will sit this one out, in part because that is what the FCC chose to do.

Fox News Radio debuts five-minute newscasts
Fox News Radio launched its new five-minute newscasts yesterday morning at 10 AM ET, expanding into a more complete and comprehensive news service. Fox News CEO and Chairman Roger Ailes unveiled new Fox News Radio studios, which was used for the first five-minute newscast, in a ribbon-cutting ceremony. The five-minute newscast service consists of five minutes at the top of the hour and one minute at the bottom of the hour. This also includes Fox News Alerts up to six times per hour if needed as well as live anchored coverage of breaking news events and unanchored feeds of news events as warranted. The event also marked the addition of another 60 affiliate stations which propelled Fox News Radio to more than 300 affiliate stations nationwide. The network expects to add 200 stations by the end of the summer. Additionally, the Clear Channel deal goes into effect this month where Fox News will be the supplier for all Clear Channel news/talk stations. Photo: Roger Ailes, about to cut the ribbon, is standing with Kevin Magee, anchor Laurie Dhue and Alan Colmes.

We asked Fox News Radio SVP Kevin Magee a bit about the new newscast
- - what's different about it?:
"It's different because it's Fox, and we promise and deliver to our audience news - - fair and balanced. That's our mission and that's what I think the audience has been clamoring for. The good news is the PDs know that, and the response in the marketplace has been very, very heartening - - at a time when not everybody is doing well in radio. One of the things we've learned is whether or not you buy into the Fox News Channel news service, we're good for the business in that we've created competition. And if you're a station manager, owner or PD, it's good to have somebody else who is selling - - it certainly keeps the competition on its toes."

Which stations seem to be most interested in the five-minute newscast, vs. the one-minute? "Talk radio stations seem to be the biggest marketplace for five-minute newscasts these days, for a variety of reasons. One is, you've got an audience that's more interested in news than most. And secondly, many of them have syndicated shows that simply cry out for something that's the right length."

Arbitron ups its 2005 outlook
Most of us dread the prospect of a tax audit, but Arbitron appears to have done fine. It announced that as the result of an audit, it is reversing some tax contingencies for a total net benefit to the company of 3.9 million. Taking that into account, Arbitron says it expects its net income for 2005 to be 62.7-64 million, up from its previous estimate of 58.7-60 million. Earnings per share are expected to be 1.99-2.03, up from the previous projection of 1.87-1.91. The tax benefit won't change Arbitron's Q2 revenues, still projected to be up 5.5-7.5%, but earnings per share will jump to 43-45 cents, up from the previous guidance of 28-30 cents.

Goldberg retires from Interep
Ten years after retiring as President and COO, Les Goldberg is retiring from his remaining positions at Interep - - leaving the board of directors and ending his consulting relationship with the rep company. "It's difficult to leave a company that I love after so many years, but it's time for a change. Helping Interep grow and rise to the top of the radio rep industry has been an extraordinary experience. I couldn't have asked for a better career, but frankly, after 37 years I'm looking forward to retirement. I will miss working with my friends at Interep, but I know that they'll continue to do what they've always done so well - - provide top-tier service to stations and agencies, and adapt to meet new challenges as they arise," said Goldberg. Those 37 years began with a sales job at McGavren Guild Radio in 1968, from which he climbed the corporate ladder. Goldberg served as President and COO of Interep from 1986 to 1995.

Bentley takes an unwanted bath
When Paris Hilton gave a car a bath for the benefit of the Carl's Jr. hamburger chain, she set off another round of protest from TV content watchdogs. She also drew the maker of the car unwittingly into the eye of the media hurricane - - but Bentley Motors appears to be taking it calmly in first gear. The luxury car manufacturer, which operates under the Volkswagen family umbrella, had no idea it would have a supporting role in the controversial commercial, according to The company is said to have sent out a statement noting the increasing frequency of such incidents, speculating that it is perhaps inevitable that other will try to bask in the reflected glow of Bentley's excellent products.


Arbitron responds to XM ratings story
As promised, a point-by-point response from Arbitron on concerns we aired from a buyer and industry researcher on XM's "Custom Listening Study." Actually, we got that, and a complete education on satellite radio ratings - - compliments of Dr. Ed Cohen, Arbitron VP/Domestic Radio Research, who was happy to respond to our Tuesday story (5/31 RBR #106): "Arbitron has conducted custom ratings studies for XM Satellite Radio for over three years. To date, five studies have been released and the Spring 2005 study is in the field now. These studies are proprietary to XM, although Arbitron has publicly discussed the methodology involved, and answered questions at presentations a number of times over this period. Over time, the methodology has evolved somewhat, just as our syndicated diary service methodology has been tweaked over time. These changes are designed to improve the quality of the data and we hold this service to the same standards as the diary service. It is extremely important to Arbitron that we not compromise the quality of our services, whether it is our syndicated radio audience measurement service or our custom studies. | See the rest here. |

ABC wraps up 2.1 billion in upfront deal-making
Kudos for the big turnaround go to and ABC Sales President Mike Shaw and Disney CEO-elect Bob Iger, who had backed a strategy of allowing for additional investment in new programming (ABC ordered five new shows for fall and six for mid-season). ABC has taken in primetime commitments from advertisers worth 2.1 billion during the upfront and has at least 20 new advertisers on board for next season, according to the net. If the 2.1 billion figure remains after the smoke clears and advertisers keep their commitments, ABC could be up 30% over last year's 1.6 billion upfront. Average CPM increases of 4% to 6% are expected. Among the most popular shows among buyers were reportedly "Commander-in-Chief," "Invasion" and "Emily's Reasons Why Not." Meanwhile, most of the other networks still writing business could wrap up by the end of this week, possibly including NBC as well.

TV networks OK TV condom ads on primetime
After a bit of negotiation (5/13 TVBR #95), Church & Dwight's Trojan condoms has placed a new campaign with NBC and the WB for primetime ads and is making a pitch to other networks as well. The spots will differ from the humor-laced radio ads - - Trojan will try to emphasize responsible behavior. The ads will detail stats on sexually transmitted diseases, among other things.

Lowe's narrows review
Lowe's has narrowed the review list for its 300 million creative and media planning and buying account. Six agencies in addition to the incumbent, McCann Erickson NY, which handles creative, and media agency Universal McCann, will move forward. Other agencies include BBDO Worldwide NY; TBWA/Chiat/Day NY and Element 79 Chicago, partnered with media agency OMD, and Campbell-Ewald Detroit, teamed with Carat. The two others, Deutsch NY and Doner Detroit, have in-house media buying and planning.

Ad spend rose 4.4% in Q1
US ad spend was up 4.4% to 33.5 billion in Q1 over a year earlier, marking the slimmest gain in quarterly spend since late 2003, according to TNS Media Intelligence. Cable and the Internet saw the biggest gains, rising 18% and 8.2%, respectively. But newspapers were pretty much unchanged. Marketers spent 5.87 billion on newspaper ads in Q1, compared with 5.85 billion a year earlier. Network TV drew 5.85 billion in the first three months of the year, up 3.8% from Q1 '04. Spend on cable increased to 3.5 billion, while spend in local magazines rose 26% to 103.7 million. Automotive remained the ad category, with domestic and foreign car manufacturers and dealers spending 4.1 billion in the quarter.

Radio & Television Business Report

Coming in the July issue:

Media Business Report:
"People Make the Difference" -- We've asked our readers to give recognition to the people that are making a difference in today's business environment.
GM Talkback:
Who in your company or stations deserves
a pat on the back and why?
Carat Americas CEO David Verklin: "Mastering a digital future" from advertising in a digital convergence world to improving metrics to the TV upfront and more.
Special Report:
Part II: "Going Private" - time to loose that chain around your neck. We show you how.
Media Markets & Money:
Mid Year Report -- "Going independent": Not many have taken this road, but in recent years Post-Newsweek's WJXT-TV Jacksonville, FL and Young Broadcasting's KRON-TV San Francisco have gone from being major network affiliates to being independent. RBR/TVBR looks at how they did it.

Reserve your Ad Marketing Space today. Advertising space is limited, contact:
June Barnes [email protected] -- or -- Jim Carnegie [email protected]

Media Markets & MoneyTM
Close encounter in upstate New York
When we say upstate, we really mean upstate - - 25 miles further upstate and we're talking immersion in Lake Erie. Broker Michael Bergner told RBR that James Embrescia's Media One has taken the keys to Jamestown NY stations WMHU-FM, WQFX-FM and WKSN-AM in a 4.5M deal with Bruce Danziger's and Jeff Shapiro's Vox Radio Group. They join WWSE-FM and WJTN-AM to form a new superduopoly in the unrated radio market.

Trumper card leads to Phoenix
The Jeff Trumper radio market portfolio was all about what was, until now. The veteran owner was in places like Portland OR, Salt Lake City, Minneapolis-St. Paul, Charlotte, Albuquerque, Lexington KY and Decatur IL. Those are all gone, but he's back in the game after closing on the acquisition of KZLB-FM, which is entering Phoenix via a city-of-license change taking the station from Flagstaff to Dewey-Humboldt AZ. "We are extremely excited not only to re-enter the radio business, but to own and operate in such a vibrant radio market as Phoenix," commented Trumper.

Emmis settles with convertible holders
Emmis Communications announced late yesterday that it had come to terms with holders of more than two-thirds of its convertible preferred stock, settling the lawsuit that Emmis had filed last month (5/17/05 RBR #97) to clear up the anti-dilution terms of the convertible issue. The settlement clears the way for Emmis to proceed with its previously announced Dutch Auction for 20.25 million of its own shares. The tender is now set to expire on June 13th. Emmis has also called a special shareholders meeting for that day to approve terms of the settlement with the convertible preferred holders.

Washington Beat
Tale of immature 21 and not-so-sweet 16
WBOC-TV 16/WBOC-DT 21 Salisbury MD tried unsuccessfully to shoot down a CP for an analog television station to the southwest in the Norfolk DMA. They argued that normal separation standards are rendered ineffective since much of the distance between the two markets is water, in the form of the Chesapeake Bay. WBOC claims its Channel 16 analog station started experiencing severe interference from another Norfolk station, WHRO, when its DT version began operating on the same channel in April 2002. It blamed the interference on "ducting," and increase of signal carriage over water. It asked the FCC to take steps not only to eliminate that interference, but to stop the construction of the new Channel 21 facility in Norfolk, which it said would cause similar interference. Copeland Channel 21, which is in line to build the new station, argues that analog-to-digital interference is much less likely to occur, noting that there are no reports of reverse interference in the case cited above; that is, WBOC-TV is not interfering with WHRO-DT. Copeland said, "...the digital signal is much more robust than an analog signal, and much more resistant to interference." The FCC said that ducting is weather-related and highly variable. It said it still has not ruled on the WBOC-TV/WHRO-DT interference situation. And it said that the possibility of Channel 21 interference to WBOC-DT was speculative, that the engineering specs for the new station were legally kosher, and remedies will be available if interference does in fact turn out to be a problem. Petition to deny denied.

PAC attacks:
Political season approaching 24/7
There is certainly a lot more pressure on inventory from political types on or around election time, but the ever-intensifying battle for the hearts and minds of a nearly 50-50 electorate is keeping the cash flowing in the once-seasonal political category. Two radio campaigns have just been announced. One, coming from Family Research Council, is heading for Ohio airspace, and questions Sen. Mike DeWine's (R-OH) participation in the coalition of moderates from both parties in the filibuster compromise deal reached a week ago. On the other side of the fence, is running ads in the districts of seven Republican reps who have received campaign cash from embattled House Majority Leader Tom Delay (T-TX), including Melissa Hart (R-PA), Dave Reichardt (R-WA), Chris Chocola (R-IN), Rob Simmons (R-CT), Mike Sodrel (R-IN), Heather Wilson (R-NM) and Marilyn Musgrave (R-CO).

Ratings & Research
Vitality of Chinese radio market confirmed
Arbitron has released the results of its first ever surveys of radio listening by Chinese language consumers in the Los Angeles and New York metropolitan radio markets. Conducted during the Winter 2005 radio survey, the two local market surveys found that 56.2% of radio listening by Chinese-speaking Asian Americans is to Chinese language radio. The leading English language formats for these listeners are Adult Contemporary (6.4%), News (6.2%) and Pop CHR (5.2%). The surveys also found that, over the course of a week, 82.5% of Chinese-speaking Asian Americans in New York and Los Angeles, age 12 and older, listen to the radio. These consumers spend an average of 16 hours each week with the medium. | More... |

TVBR - TV News
Nielsen blinked, LPM delayed
Faced with heavy criticism from broadcasters, Nielsen Media Research has agreed to put off today's scheduled launch of Local People Meters in Washington, DC and Philadelphia - - but only until June 30th. Nielsen says that extending the test period for another 28 days will give broadcasters time to understand LPMs. But the broadcasters say they already understand LPMs and that what's needed is for Nielsen to fix its problems. "It is apparent that many of our clients in these markets require more time to understand the impact that this change in methodology will have on their businesses. We see our LPM rollout schedule as part of our paramount duty to provide the most accurate and up-to-date information possible. Because we have no doubt that LPM technology is far superior to any existing alternative, we are anxious to establish it as the currency as soon as possible so that all users of the data will be able to take advantage of increased accuracy," Nielsen said in a notice sent yesterday to clients. By holding off until June 30th, Nielsen says clients in the two markets will be able to compare LPM data to the Metered Market service for the May sweeps. Nielsen General Manager/Local Service Jack Oken told TVBR that May sweeps data should be available to stations in the DC and Philly markets around June 13th. As for the faulting issue, he says Nielsen is implementing initiatives in all of its LPM markets, including the two newest ones - - in particular personal coaching and performance-based incentives to keep participating households from faulting out of the data collection. Oken said those initiatives will probably be implemented in DC and Philly by the end of the 28-day period. But Oken says he foresees no possibility of LPM being further delayed in those two markets. "The request that was made was a reasonable one (to delay for the May sweeps data). Past this point I don't see anything else that might arise," he said.

Broadcasters welcome delay, but want more
Tribune Broadcasting President Pat Mullen, pictured, who had written to Nielsen President Susan Whiting on behalf of many major group owners (6/1/05 TVBR #107), is hopeful that the move to delay LPM in Washington, DC and Philadelphia creates an opportunity for further discussions with the ratings company. "What's disappointing is that Nielsen, in their client communication, clearly states that at the end of the month they're going to make it the currency - - that the only reason for delay is to allow us to compare the data in the month of May and to give us more time to understand the impact of the changing technology. I suggest to you that the industry knows the impact of the changing technology. That's not the issue at all. What we're simply asking and would like to see them do is improve the fault rates and the in-tabs to make their service deliver the product they said they were going to deliver," Mullen told TVBR. But since Tribune is still dissatisfied with LPM in New York, LA and Chicago after several months of operation, Mullen is skeptical that anything is going to change in DC or Philly in 28 days. "I'm wide open to additional conversations with Nielsen about any approaches that might be helpful, but I don't think a month does a trend make," he said. Allbritton Communications VP Jerry Fritz sounded a bit cynical when TVBR spoke to him yesterday. "Sometimes monopolies do the right thing for a month," he said. "This gives us time to evaluate the demos, not just the gross household numbers - - and that's good." And Fritz added that it also gives Nielsen time to put people in the field to work with LPM households to reduce fault rates. "We're going to watch them very closely to ensure that those rates come down, but frankly that's what they said they were going to do in New York 18 months ago and the faulting rates have not come down," Fritz said. Also weighing in was the Don't Count Us Out Coalition, which maintains that LPMs undercount minorities in all markets and, with backing from News Corporation, has been pressing Congress for legislation to regulate Nielsen. "We support the efforts and intense pressure mounted by the independent broadcasters group that helped bring this delay. However, we still stand strong that the only way to ensure that Nielsen is held accountable is through authoritative, independent oversight," said Lillian Rodriguez-Lopez, President of the Hispanic Federation and a founding member of the Coalition.

TVBR observation: From where we sit, it looks like Nielsen and its broadcaster clients aren't even on the same page in discussing LPMs. Nowhere in Nielsen's notice delaying the DC and Philly roll-outs does it even mention fault rates or Media Rating Council accreditation, but those are the issues we hear broadcasters complaining most about. Several of the complaining broadcasters, including Tribune, Fox, CBS, NBC and Scripps, own stations in the first LPM market, Boston, so they've had a couple of years of experience and don't need any more time to understand how the LPM methodology works. Tribune's Mullen assures us he's no Luddite opposed to new technology - - and in fact is a big booster of Arbitron's Portable People Meter tests in Houston - - but doesn't think Nielsen should keep rolling out more LPM markets until it fixes problems with the ones it already has. Meanwhile, Nielsen insists that everything is hunky-dory in New York, LA and Chicago and it doesn't understand why MRC accreditation in those markets is taking so long.

14M KSIR-FM Denver-Boulder (Bennett CO) from KKDD-FM Broadcasters (Robert D. Zellmer) to KSIR-FM LLC, a subsidiary of Denver Radio Co. LLC (Luis G. Nogales, Steve Keeney). 775K escrow, balance in cash at closing less 1.5M holdback escrow. Duopoly with KBRU-FM Fort Morgan CO. [File date 4/29/05.]

7M WBEC-FM Springfield MA (Easthampton MA) from Great Northern Radio LLC (Bruce G. Danziger) to 6 Johnson Road Licenses Inc., a subsidiary of Pamal Broadcasting Ltd. (James J. Morrell). 700K deposit, balance in cash at closing. Duopoly with WPNI-AM/WRNX-FM Amherst MA. Station recently moved to Easthampton from Pittsfield MA. [File date 4/29/05.]

Stock Talk
Slow growth is good news
A report that manufacturing growth has slowed was taken as good news by Wall Street traders. The reasoning is that if inflation remains in check, the Fed will ease off on raising rates. The Dow Industrials closed up 81 points, or 0.8%, at 10,549.

It was also a good day for radio stocks. The Radio Index climbed 1.958, or 1%, to 203.553. Spanish Broadcasting system led the way after completing a refinancing on even better than expected terms. Arbitron rose 2.5% after announcing a favorable tax audit result.

Radio Stocks

Here's how stocks fared on Wednesday

Company Symbol Close Change Company Symbol Close Change













Journal Comm.




Citadel CDL
11.99 +0.12

Radio One, Cl. A




Clear Channel




Radio One, Cl. D




Cox Radio












Saga Commun.








Salem Comm.








Sirius Sat. Radio








Spanish Bcg.
















Viacom, Cl. A








Viacom, Cl. B








Westwood One








XM Sat. Radio




International Bcg.










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Market Results
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Upped & Tapped

Wolinsky to NYC
Jeffrey Wolinsky has been appointed Local Sales Manager at Infinity's WCBS-AM New York. He most recently served as Regional Account Executive for WTOP-AM Washington, DC.

Premiere ups Bender
Premiere Radio Networks announced Marty Bender has been promoted to vice president of operations for The Bob and Tom Show. He previously served as the executive producer. Based in Indianapolis, he will also continue as the OM for CC Radio's Indianapolis cluster.

More News Headlines

Al Sharpton to share airwaves with Rush?
After the announcement that Matrix Media signed Rev. Al Sharpton to host a radio talker, El Rushbo said he'll think about mentoring the minister in the finer points of the medium on his show last Friday: "Let [Sharpton] guest-host the program for, like, 30 minutes at a time while I am sitting here critiquing him." Sharpton told the NY Daily News' Lloyd Grove: "I was a little surprised, but I'm willing to take him up on his speculative offer. I think it would be interesting. It would be something that both of us can learn from. He can learn some of the thoughts of the left, and I can learn some of the techniques of the right. Let's see if he's serious." Limbaugh's producer, Kit Carson, assured Grove he's in earnest. "At this point, Rush is still undecided," Carson said. "He's very flattered that Rev. Sharpton is interested in doing this. Rush is still considering giving him some pointers, some tutoring. "Rush also believes that Rev. Sharpton has the best shot of anyone to be the Limbaugh of the Left. He is also very impressed that he has the humility to admit he has something to learn. ... So we'll see."

Marketron scores
six-year contract
with Cox Radio

Marketron International announced a six-year contract to provide traffic and billing solutions to the entire Cox Radio group of 78 stations in 18 markets. A longtime Marketron client, Cox Radio cited Marketron's proven inventory optimization capabilities and industry leading client services as key factors in its decision to extend its relationship. All stations will manage their advertising inventory and billing with the Marketron Radio Traffic software. Marketron will provide integrated Sales, Traffic and Billing applications.

RBR Radar 2005
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Analyst: Clear Channel
needs a Plan B
tried to wow Wall Street by announcing a major restructuring -spinning off CC Entertainment, selling 10% of CC Outdoor in an IPO, upping the company's regular dividend and paying a special three bucks per share dividend. But while the stock got a brief bump, it has since been hurt by Hicks, Muse, Tate & Furst dumping its stake and is now back at its 52-week low. So, Bear Stearns analyst Victor Miller says Clear Channel management needs a Plan B. RBR observation: Admittedly unlikely to happen, but an interesting proposition from one of Wall Street's more creative thinkers. One problem, though, is finding someone willing and able to pay 1.5 billion or more for CC Entertainment. Although competitors House of Blues and JAM Productions are reportedly interested bidders, it appears they only want the concert promotion business - - and as we noted previously, it would be very difficult to find buyers at decent prices for some of the other pieces of CC Entertainment. It would have to be all or nothing to make sense for the seller. Millers recommendation see 06/01/05 RBR #107

CBS and NBC want hold
on LPM rollout
Large number of station groups have now asked Nielsen Media Research to put LPMs on hold while the ratings company works on Media Ratings Council (MRC) accreditation in its existing LPM markets. For the first time, both CBS and NBC have joined in the growing chorus of broadcasters calling for a halt to the LPM roll out. As signatories to a letter written by Tribune Broadcasting President Pat Mullen, the list of objecting broadcasters includes long-time LPM opponent News Corp./Fox, along with other major groups. Ms Whiting also spoke with TVBR late last night and stated "LPM will roll forward in DC and Philly as scheduled." As for being perceived as not hearing or wanting to listen to broadcasters concerns Whiting said "Is further from the truth as we (Nielsen) don't want to be at odds with so many large clients and at the same time we are trying to balance reporting information and accomplish the best of all clients concerned." RBR observation: Talk about politics well this is it. First party ready to roll out LPM and move forward to the future with technology and the other side not wanting or ready to improve until they are faced with a crisis then react to the crisis. Bottom line nobody likes change or improvement until a crisis hits them in the face. | The letters: | Broadcasters to Nielsen; Nielsen to Broadcasters; Broadcasters reply to Nielsen. Kicker is the last letter sent to Nielsen by Broadcaster (Mullen) late yesterday, 5/3/1/05, Broadcasters did not wait for a Nielsen reply to which Mullen stated he would be on the next plane to NYC to discuss the issue(s). Instead, Broadcaster just fired off a PR release last night to what you have just read. 06/01/05 RBR #107

Verklin on the TV upfront
I think it's much softer than anyone wants to talk about - - much softer. I've been saying it to you guys in the beginning, that I didn't see the upfront going higher than 3% CPM increases. I think I'm actually high - - I think we'll end up at one or two percent when all the smoke clears. Budgets, are probably down by 10% overall. 06/01/05 RBR #107

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," BIAfn VP Mark Fratrick who was obviously alluding to Clear Channel's Less is More initiative. 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.' 05/31/05 RBR #106

Ray Warren on the TV upfront
As the saying goes or question - what runs down hill? 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."
05/31/05 RBR #106

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. "They're rating XM listening based on interviewing what they call the 'primary user.' They have some good methodologies approaches-they're using random selection of the sample. Someone has to be a subscriber for at least 60 days. It's telephone interview, which is good. But what they're doing is asking the household to define the primary user of XM. Which raises the interesting question of how can a household determine this? In other words do they ask everyone in the household to vote on the primary user, do they simply ask the person who answers the phone, or do they ask the person who's listed as the subscriber?" RBR observation: Satellite radio will be put under the microscope as business tightens. Radio operators your key is to stay focused and be Local and be seen in your communities with remotes. Real People not a satellite.
05/31/05 RBR #106

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

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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Dear Cathy- What a great job RBR/TVBR did recruiting top talent for W.B. Grimes & Company!! The quality and sheer number of candidates RBR/TVBR produced was just outstanding. You out-pulled all the other publications and on-line recruiting sources we've used ten to one. Every member of our broadcast brokerage team was introduced to us through RBR/TVBR. Thank you.

Larry Grimes, President
W.B. Grimes & Company
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