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Welcome to RBR's Daily Epaper
Volume 25, Issue 114, Jim Carnegie, Editor & Publisher
Wednesday Morning June 11th, 2008
XM settles with last major label
XM Satellite Radio announced a settlement with EMI, the last of the four major record labels which had sued over XM's Inno receiver with recording features. The remaining plaintiffs are music publishers and a few indie labels.

RBR observation:
We may have had lots of disagreements with the satellite radio companies over the years, but this is one case where we took XM's side and warned AM and FM broadcasters that they face the same threat from the greedy record labels. The labels have latched onto the idea that "digital changes everything" - which is bogus - and have tried every which way in the courts and on Capitol Hill to use digital broadcasting as an excuse to pick the pockets of broadcasters. That's true of satellite radio, online radio and HD Radio.

More XM fun
The Consumer Coalition for Competition in Satellite Radio Watchdog (C3SR), which observers say have more in common with business interests than consumers, has filed comments on the proposed XM/Sirius merger. They suggest that the failure of the two to come up with the interoperable receivers mandated in their charters was a deliberate act to restrain fair competition, that therefore their respective gains are ill-gotten and that they held accountable via forfeitures likely in excess of $250M.

First PPM data from the City of Angels
Radio's daily reach is more than four times larger than the combined circulations of LA's twelve largest newspapers, according to the first data from Arbitron from its pre-launch Portable People Meter (PPM) panel is Los Angeles. Preliminary electronic measurement results from PPM in LA reveals that more than 9.2 million people age six and older heard radio for five or more minutes during an average weekday (Monday-Friday 6am-Midnight) in April.

ESPN chief pushing
multiple platforms

Television is still the big growth driver, but ESPN President George Bodenheimer told the Deutsche Bank 2008 Media and Telecommunications Conference that his company is focused on integrated marketing for its advertising partners. If they want to be affiliated with the ESPN brand, he asked, "why just buy television," noting that ESPN also has strong brands in radio, online and in other new media platforms. Saying he was bullish on the Disney-owned company's growth, Bodenheimer said "we're peddling as fast as we can on every business that serves sports fans." Sister network ABC has wrapped up its successful upfront and, while he didn't offer any revenue predictions for ESPN, Bodenheimer said the ABC success with advertisers in the upfront "bodes well for us."

Don't stop me I'm on a roll here
A former Clear Channel high level executive in semi-retirement writes to RBR,
"Your observations on the future of Clear Channel post sale...having been in the CC organization for 9 years (pre, during & post Randy Michaels) I have a few observations as well from the position of how they must reshape operations to deliver the expected performance.... Do you really think local operating management endorsed LIM? Hell no, they tried (and I was one of them) to show Sr. Management that there were other easier ways to cut the clutter, but they ignored it, I still have my email."

Debating PPM accreditation
We wanted to get to the bottom of the PPM issue and come up with some solutions for the radio industry. Should PPM be accredited before it goes into the market and why? In the roundtable discussion, Cox Radio CEO Bob Neil drilled Arbitron's Pierre Bouvard: "Yeah but Pierre let me ask you this, okay? You've got an accredited system in Houston. If the differences in Philadelphia are as small as you're making it seem like, why would you have such a problem getting the same system with a minor change approved in Philadelphia? The sample size in Houston is pretty substantial and it appears to be working there. So if this is a minor change, why is it so hard to get Philadelphia accredited?"

If you haven't listened to the entire RBR/TVBR interview in our Media Center, now you can read it. The entire interview has been transcribed for your easy access. The participants:

* Kathy Crawford, MindShare's President of Local Broadcast
* Janice Finkel-Greene, Initiative Media EVP of Local Broadcast &
EVP/Director Futures & Technology
* Pierre Bouvard, President, Sales & Marketing, for Arbitron
* Bob Neil, President & CEO of Cox Radio
* Jim Carnegie, Publisher RBR & TVBR
* Jack Messmer, Executive Editor, RBR & TVBR
* Carl Marcucci, Managing Director & Senior Editor, RBR & TVBR

Sales and Marketing
Talk radio: the real revenue generator
By Mark Masters (archived from 6/07)
Here's some interesting data on just how powerful the talk radio medium is as a revenue generator-it's mind blowing stuff. A while back, I had my staff analyze America's top 20 rated markets, and compared the ratings rank of music stations and talk stations vs. the revenue rank of music and talk stations. The chart, on pg.14, shows that when comparing the logic of Program Directors (Arbitron) to the logic of General Managers (Miller Kaplan or BIA, in the attachment's case, we used BIA) News or News/Talk stations out-billed music stations in 16 of the top 20 rated markets - and get this, the News/News Talk stations out-billed music stations that were usually 5 to 10 ratings ranks above the News/News Talk stations.

7-Eleven uses radio for "Summer of Slurpee" 
It's all about immediacy: As part of 7-Eleven's "Summer of Slurpee," the iconic frozen carbonated beverage plays a role in 7-Eleven, Inc.'s promotion this month of The Incredible Hulk movie. Elements of the campaign include the Radiation Rush Slurpee flavor, The Incredible Hulk comic book made just for 7-Eleven stores, cookies and donuts featuring the Incredible Hulk image and a Hulk It Up meal deal featuring a half-pound turkey and cheese submarine sandwich - the Hulk Hero -- paired with a 32-ounce Incredible Gulp fountain drink, value priced at $3.99. In a promotion with GameStop, 7-Eleven offers a coupon for a $5 discount off Sega's new The Incredible Hulk videogame with purchase of a Radiation Rush Slurpee beverage, also due out this month. 7-Eleven spokesperson Margaret Chabris tells RBR there will be spot radio in the following markets: Baltimore, Washington, D.C.; Detroit, Long Island (NY), Salt lake City, San Diego, Seattle-Tacoma and Tampa-St. Pete. "No TV advertising. Research shows us that radio is a more efficient medium to reach our customers."

KMG's Brian Knox a keynoter
Katz Media Group's Brian Knox, Senior Vice President and Director of Corporate Diversity, will keynote the annual Media Sales Institute conference on Thursday, at Howard University in Washington, D.C. The institute partners with the National Association of Broadcasters Education Foundation (NABEF) and the National Association of Black Owned Broadcasters (NABOB). The Media Sales Institute (MSI) provides ten days of hands-on training for college seniors and graduating students pursuing a career in media sales. The MSI recruits women and people of color to participate in its annual summer program. Last year's participants were from six colleges and universities across the country.

Renetta McCann announces sabbatical;
Laura Desmond new SMG CEO

Renetta McCann, global CEO of Starcom MediaVest Group, announced plans to take a one-year sabbatical from the company and the marketing communications industry. Her leave will take effect January 1, 2009. She will vacate the global CEO role immediately, and Laura Desmond, currently CEO of SMG/The Americas, will assume the global title.

Upside for Georgia AM 
However, to realize the upside, WGHC-AM Clayton GA will have to move to a new state, but that is exactly what's in the works. It has a CP to move from its 1370 kHz, 250 w-D facility in Clayton to a new 5 kw-D facility in Mount Holly NC, on 870 kHz. In addition to the extra power, Mount Holly enjoys close proximity to Charlotte NC. Sutton Radiocasting is selling the station no noncommercial Family First, headed by Linda de Romanett. The price is $500K. Seller Douglas M. Sutton Jr. will also benefit from tax considerations, treating any fair value above the purchase price as a charitable donation.

$27K WWBK-AM Portland ME (Brunswick ME) from Atlantic Coast Radio LLC (Joseph Jeffrey) to Blue Jey Broadcasting Company Inc. (Robert M. Bittner). $2.7K escrow, balance in cash at closing. Duopoly with WJTO-AM Bath ME. [File date 4/25/08]

$16K FM CP Morganfield KY from Bishop County Radio Inc. (James E. Bishop) to Saint Ann Radio Group Inc. (Gerald H. Baker et al). $8K deposit, balance in cash at closing. CP is for Class A on 88.7 MHz with 1 kw @ 328'. [File date 4/25/08]


Station hung-up with FCC fine 
The manager of the Davenport Hotel and Tower, Matt S. Jensen, had a problem with ProActive Communication's KQQB-FM, serving the Spokane WA market from Newport WA. It seems the station's DJ Dick wanted to talk to recording artist 50 Cent. DJ Dick was urging listeners to call the hotel, get 50 Cent on the line and have him call the station. Numerous listeners did so, tying up the hotel's business lines; additionally, 20 individuals actually appeared in person at the hotel looking for the star. The only problem? He wasn't there. Then Jensen called the station to complain, and soon found a recording of this conversation with DJ Dick on the air, without his permission. That, of course, is a no-no. Station management said it had no knowledge of DJ Dick's stunt, nor did it condone the stunt or the airing of the call. That, however, does not get the station out of the $4K fine for the unauthorized phone call broadcast.

RBR observation: KQQB is lucky the FCC claims no jurisdiction over DJ Dick's disruption of the hotel's business. We do not suppose KQQB would enjoy a rash of prank phone calls and an office invasion consisting of citizens sent on a wild goose chase by some other Spokane-based business. We sincerely doubt the station will succeed by making a public nuisance of itself.

100.5 Max-FM lets listeners control the tunes
100.5 Max-FM (WXMM-FM) Norfolk-VA Beach is the first radio station in the world to actually allow listeners total control to program the music. This new concept will allow each listener to select from thousands of "rock titles", and program the music.

RBR observation:
That's great, just as long as the listeners don't choose the same four songs from the Rolling Stones, Bruce Springsteen, U2 and Pink Floyd. We hope they will actually play the obscure titles that the listeners pick (will the deep Hendrix cuts actually be among the choices?). If this sounds like the same 'ol, same 'ol that we hear across the dial, it will be nothing more than lipstick on a pig. Sounds like a great idea, if it works!

Mobile advertising: 18-24 year olds lead the parade
Usage of picture/video phones is up 17% for all adults according to an analysis of BIGresearch's most recent Simultaneous Media Survey (SIMM 11, Dec. 07) of 15,727 participants (v. Dec. 06). This increase in usage, coupled with 90% of adults reporting they regularly/occasionally use a cell phone, makes a case for why mobile advertising is a viable option for advertisers. However, with this form of promotion in its early development, they should understand not only how consumers use cell phones, but who is most likely to be influenced to purchase.

CBS Radio Stations Integrated Into AOL Radio
AOL unveiled a new AOL Radio experience,, that features a redesigned online player and new radio stations, including 150 local CBS Radio stations and custom channels plus more than 200 AOL Radio channels. The new player, powered by CBS Radio, lets users skip songs, add unlimited channel presets and share streams with AIM users.

New streaming and Internet consulting service launches
After nearly two years of research and development, a service of Broadcast Matrix LLC, has officially launched. The company offers custom internet solutions and digital strategy consulting for broadcasters. "Radio stations need innovative ways to leverage and profit from the internet. We find solutions, develop strategies and provide the tools they need while finding them ways to lower costs." according to Broadcast Matrix President & Founder Ron Erak.

Disney to stream movies after ABC airing
People who miss the "Wonderful World of Disney" on ABC this summer can still see the full-length movies - and they won't even need a DVR. Disney announced that it will, for the first time, stream entire movies on, with free streaming Monday-Friday following the Saturday airing on ABC.

RBR observation: We've certainly made use of ABC's streaming site for viewing episodes of shows that we weren't able to watch at their regularly scheduled broadcast time. Streaming full movies makes sense as well. After all, this is streaming, not downloading. Also, these are flicks that are not fresh from the theater screens. The streaming helps build the Disney brand, just as the "Wonderful World of Disney" does.

"It's ugly out there"...everywhere
Outdoor advertising had been holding up better than some of its competitors, but outdoor is now also being hit by the economic downturn. Wachovia analyst Marci Ryvicker reduced her estimates after hearing management tell the Deutsche Bank conference in New York "it's ugly out there" and that business is pacing flat for 2008.

Disney Channel embarks on Cinema ad venture
Screenvision has entered into an agreement with the Disney Channel to help promote the cable network's original movie "Camp Rock," starring teen pop band the Jonas Brothers. Through the deal, a 30-second spot for the TV movie will run in Screenvision's Premium Pod. Only Screenvision offers this ad placement right before the previews. The ad began will run through June 19th before all G and PG rated films, including such anticipated summer blockbusters as "Chronicles of Narnia: Prince Caspian" and "Kung Fu Panda." The "Camp Rock" campaign marks Disney Channel's first foray into cinema advertising. Screenvision's cinema advertising network is comprised of more than 14,000 screens across 2,300 theatres nationwide and reaches 92% of U.S. DMAs. Screenvision produces the only host-format entertainment preshow in the cinema advertising industry, which airs across Screenvision's HD digital network of approximately 7,000 screens.

Democratic finale boosts campaign to 50%
The Project for Excellence in Journalism coverage chart for the week of 6/2/08-6/8/08 was as you would expect. The final battle between Barack Obama (D-IL) and Hillary Clinton (D-NY) dominated the news, from the last primaries on Tuesday 6/3/08 to Clinton's concession on Saturday 6/8/08. Cable, which often gets into 70% territory on campaign coverage, was there again with 74% focus - but this was one week where all five tracked media had a tight spotlight on the story. Not much room was left for other matters, and two pocketbook issues, gas/oil prices and the US economy in general, captured the #2 and #3 slots in a battle of numerous and varied generally low-coverage stories.

Sometimes what doesn't happen is what's interesting 
Although he was not on the preprinted guest list, FCC Chairman Kevin Martin was a prominent member of the first panel to appear at today's Subcommittee on Telecommunications and the Internet DTV hearing. That doesn't mean the committee members can't grill him on other topics. But we are sorry to report that the committee was content for the most part to stay on topic.

RBR observation: Martin is not exactly ducking questions about XM/Sirius - he's been saying it's an unusual and therefore difficult case - but it would have been interesting to see if a member of Congress could extract a little more detail on where the FCC is going with its review of the proposed merger. And it would have also been interesting to get a preview of the committee's culinary plans for Martin when (or if) it brings him in for its investigation into his role in the allegedly malfunctioning FCC.
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Dow up, but stocks mostly down
The Blue Chips were the beneficiaries of some bargain hunting as oil prices eased, but for the most part traders remained worried about where the economy is heading. The Dow Industrials rose nine points to 12,290. The S&P 500 and Nasdaq Composite were down a bit.

Radio stocks had another down day. The RBR Radio Index dropped 0.648, or 0.8%, to 78.546. Saga got hit with a 5.2% drop. Citadel was down 2.5%.

Here's how stocks fared on Tuesday





















Journal Comm.







Lincoln Natl.





Radio One, Cl. A




Clear Channel*




Radio One, Cl. D*




Cox Radio*












Saga Commun.*




Debut Bcg.




Salem Comm.*








Sirius Sat. Radio








Spanish Bcg.*








Westwood One*








XM Sat. Radio













*Component of the RBR Radio Index

Send Us Your OpinionsWe want to
hear from you
Send your comments and a photo to [email protected]

Posting pushback
Many executives feel the way this executive does as he writes in reaction to RBR's report, RAB Board passes posting resolution; Goldstein comments (5/29/08 RBR #105).

In over 40years of Radio Broadcasting I never thought I would see the RAB endorse anything as damaging as "posting." To rely on survey methodologies that have always been suspect, PPM that is getting fire from all directions, and now having our future revenue further controlled by Arbitron is inconceivable. Rather than put the blame on agencies and look to them for the solution to sliding revenues in Radio the focus should be redirected to recognizing who the "client" really is. How about getting back to the selling basics rather than rely on advertising agencies to sell and then price Radio's product? This slide toward being little more than order takers has been long in coming. I guess the radio industry is getting what it deserves by letting others tell us how to run our own business. Radio has value, too bad the Board of the RAB can't relate to that concept.

Rex Tackett
Wendlee Broadcasting

Below the Fold
Ad Business Report
7-Eleven uses radio

For "Summer of Slurpee"
move to a new state

Media Markets & Money
Upside for Georgia AM

To realize the upside
move to a new state

Washington Business Report
Station hung-up with FCC fine

Conversation with DJ on the air,
without permission, a no-no

Ratings & Research
Mobile advertising:

18-24 year olds lead the parade
Media Moves
A seat in the Boardroom
Long time CFO Joseph Garcia has joined the board of directors at Spanish Broadcasting System. Garcia was elected by shareholders at the company's annual meeting June 3rd.

M2O partners
with Mark Ramsey

Mass 2 One Media, a leading on-air, online marketing and research company for radio, announced that veteran broadcast researcher and strategist Mark Ramsey has partnered with M2O to provide local market research for local businesses and clients of radio.

Omaha move
Jim Timm has joined Connoisseur Media as Market Manager in Omaha, where the company owns KBBX-FM "Radio Lobo" and a CP for a second FM. It is a homecoming of sorts for Timm, since he previously worked for the Journal Broadcast Group Omaha cluster, from which Connoisseur bought KBBX.

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Belts to remain
snug at Clear Channel

Much has been made of the internal memo to Clear Channel managers from President & CFO Randall Mays that has been published on the website of the Wall Street Journal. But it doesn't seem to change much from the hold-the-line-on-spending memo.

RBR observation: This is basically a math problem. The parameters for getting the buyout deal to closing are very tight and can't and won't be changed. The equity money from Bain Capital and Thomas H. Lee Partners is in escrow. The debt money from the banks is in escrow. The debt assumption is capped. So, Randall is right, any shortfall at closing has to come from somewhere and the contract specifies that if there is still a gap after counting in the voluntary rollovers into the new CC Media Holdings stock, it will be filled by involuntary rollovers. The anticipated Q4 closing is still quite far off. Even strict penny-pinching may not be enough if the ad markets get even worse before closing and Clear Channel's revenues fall short of expectations. In that case, there could be a gap to fill no matter what they do.
06/10/08 RBR #113

Digital side channels
still face hurdles

The distribution of crystal clear high definition programming, whether it's video or audio, is supposed to be the driving force behind the move to digital broadcasting. But when the HD isn't turned on, there's room for extra streams of programming.

RBR observation: Why would broadcasters want to dilute the pool even further by cannibalizing their own audience? It seems to us that it would be better to embrace the vastly improved audio and video offered by the switch to digital and make the investment to make sure that the programming offered is worthy of the technology.
06/10/08 RBR #113

Smaller markets seen
rebounding fastest

After hitting bottom in 2008, radio revenues should rebound. But that growth line is still in negative territory for a while. Expanding on earlier forecast of no growth for the radio industry until 2010. Markets 51+ and 11-50 getting back to '07 revenue levels by 2011, but with the largest markets, #1-10, lagging. View the analysis and stats at
06/06/08 RBR #111

Do young media planners even think of radio?
Question whether young people today relate to radio. "They've got MP3 players and little screen TVs and all kinds of other things. And radio - you know, tuning in to a dial is not [what they do] - and who does the planning? The planning is done by young people.
06/06/08 RBR #111

What's upfront for
Hispanic Radio?

While most think of the annual Network Radio Upfront being held in September and October, the Hispanic Radio Upfront has been held in May. Radio overall should take a strong lesion from Hispanic Broadcasters. The events bring attention to their programming, content, entertainment, and ROI.

RBR observation:
Radio get off the can get on the stick. Read and learn how Hispanic has taken control of their business and not following the down turn. They are attacking the issue to show that Radio and Hispanic Radio works.
06/06/08 RBR #111

The next generation
of news branding

For a lot of years local TV news has stayed away from more contemporary advertising tactics and stuck with tried and true creative campaigns born in the 80s and 90s. There are more than 500 TV news operations in the country. You can't build a strong brand unless your customers have a perception that your product is different from the other guys.
06/06/08 RBR #111

Houston: Is its methodology
better or not?

In our RBR exclusive PPM Roundtable, Cox Radio CEO Bob Neil pressed Arbitron President of Sales and Marketing Pierre Bouvard on what it would take for Arbitron to use the PPM panel recruitment methodology it developed with Nielsen for Houston in all PPM markets. If there is a price tag for that, Bouvard dogged naming it.

RBR observation: The full audio is posted in the Media Center at The exclusive roundtable conference you will hear the exchange between Neil and Bouvard. But the entire discussion between broadcaster, agency, and the ratings company sheds a touch more light on the PPM issue. Listen, you decide and drop us your viewpoint at [email protected]
06/05/08 RBR #110

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