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PPM restart a "go"
"It's time to move forward with electronic measurement for radio," said Arbitron CEO Steve Morris, making official what most people in radio had been expecting - Arbitron will resume its Portable People Meter (PPM) rollout this fall. Eight markets - New York, Nassau-Suffolk, Middlesex-Somerset-Union, Los Angeles, Riverside-San Bernardino, Chicago, San Francisco, and San Jose-will go currency with the release of the September PPM survey report on October 8th. Morris insists that Arbitron has made great improvements in PPM since the rollout was abruptly halted last November (11/27/07 RBR #230). The move comes even as some groups have been demanding a further delay until PPM wins Media Rating Council accreditation in at least one market using its current recruiting methodology.
RBR observation: If your market is in line for PPM and you haven't really kept up on developments because the rollout was on hold, got to the Media Center at RBR.com to hear the panel discussion of PPM issues.
Restart reaction cuts both ways
"Emmis supports a restart. We think any other choice holds more negatives than good for the industry. Having said that, we join many other broadcasters in encouraging Arbitron to continue making strong progress on sample issues, particularly with regard to 18 to 34," Rick Cummings, President of Emmis Radio told RBR. Emmis has stations in New York, LA and Chicago, all of which will be in the next round of PPM becoming currency for buying and selling spots. "I'm sorry that all of these markets are not accredited or may have not even been applied for accreditation. Hopefully they will be accredited very rapidly and we will have currency that is accredited," said Kathy Crawford, MindShare President/Local Broadcast. Clear Channel racing
toward
July 30 closing
Just a few weeks ago Clear Channel Communications was telling shareholders to expect the company's long-pending buyout to go to closing in Q3. But they'll only have to wait until the first month of the quarter. Shareholders will vote on whether to accept the $36 per share offer on July 24th and closing is set for July 30th. This has been a long time coming, but it looks like the $23.8 billion deal to take Clear Channel private is about to cross the finish line. All it took was battling in Texas, New York and Federal courts, not to mention several revisions of the terms along the way.
RBR observation: We still have not heard any indication that there will be any organized opposition to the $36 price at the July 24th meeting. That $39.20 bid is now a distant memory as shareholders look at what's happening to oil prices, the US economy and stock prices every day. Time to take the money and run. |
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Viewpoints
Radio: Local direct selling is changing
By Dave Martin
Taddeo to shops - Drop Dead: Seems Jack Taddeo, among the latest to weigh in on the posting issue, is suggesting operators in the top ten markets are advancing posting merely to kiss up to agencies and buyers. Jack wants the RAB and big group owners to "leave the rest of us alone" his thought being lazy big market guys have created their own mess and need not visit their remedies on the hard working smaller market folk. The impression one gets is there's gold in them thar hills and things are, well, just peachy there, thank you very much. Jack is right about one thing. Small market radio is different from major market radio. Further, measured markets are different from those not measured. With all respect to Jack, he and others are failing to recognize the sea change wrought by accountability and transparency. Nothing but great respect for operators who champion and succeed at direct, however, the world of direct is changing too.
One example. Our small market retail store. We are direct clients of broadcast. As part of every schedule we always include web assets. We track store and web traffic daily. We value traffic into our store and we also value traffic to our web site and to our web store. Our expectation is to generate online revenues equal to or greater than our in-store revenues. A friend and fellow local retailer is generating more dollars online than their very successful storefront. The world of online marketing and advertising is changing the rule set. This is not limited to major market environments, it's a rule set not bound by DMA. Buyer expectations are changing dramatically.
Interview
Tim Spengler: Chief Activation Officer, Initiative North America
Tim leads Initiative’s North American channel activation efforts and oversees the unification of all buying departments including national broadcast, local broadcast, print and online. Tim also heads the agency’s Implementation Council, which includes top activation execs in traditional, digital and emerging media.
What about program integration deals—you’re known for striking some of the biggest and most well-known. What’s the science there?
My point of view has always been that it’s more than just the 30-second spot that’s of value. Media can be used as a marketing tool, so it’s worth it to take bigger positions to break through, even if you have to pay for it. What’s good is worth paying for. Sometimes it takes more work, but it’s oftentimes worth it. The networks are running a business and they’re certainly under pressure to create new revenue streams, particularly in weaker markets. But because this market was reasonably healthy, you’re going to see fewer program integrations in prime time than last year...
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Will SLC Blaze orphan a kitty?
The end result of a complicated deal in the Salt Lake City Arbitron market will send KHTB-FM The Blaze to Citadel Broadcasting, which in turn will have to spin it's Orem UT station KKAT-FM into a trusteeship pending sale to a third party. KHTB currently has legal and operational ties to not one but two troubled companies. Here's the deal. Back in 2003, Chris Devine's 3 Point Media bought KENZ-FM and KHTB-FM from Clear Channel, with Citadel acting as guarantor for a $26M loan from Wachovia in favor of 3 Point. 3 Point defaulted. Citadel had to pay Wachovia upon its demand, and is accepting KHTB license under an involuntary transfer, which in turn will force it to spin off KKAT-FM. Meanwhile, 3 Point had KHTB-FM in the care and feeding of Millcreek Broadcasting under an SSA, and Millcreek is now in Chapter 11.
RBR observation: Welcome to the broadcast economy of the 21st Century.
For whom the Bell spins
Art Bell has given up his nationally-syndicated "Coast to Coast AM" radio show, and now he's giving up KNYE-FM, which broadcast from "The Kingdom of Nye ... Things That Go Pahrump In The Night." The Pahrump NV station is being sold to Karen T. Jackson for $600K, and comes with the station's associated "manufactured home and garage." Pahrump is about 40 miles due west of Las Vegas near the California line. KNYE will be Jackson's only station. |
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WASHINGTON BUSINESS REPORT ™ |
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Chamber goes to bat for broadcasters
"The broadcast industry must not be shackled with onerous rules that would hinder its ability to compete." Sounds like something the NAB might say, but in fact these are the words of William L. Kovacs, VP/Environment, Technology & Regulatory Affairs for the US Chamber of Commerce. USCC wants the FCC to pull back from its attempt to promote broadcast localism. "The FCC's proposed rules ignore marketplace developments and seek to resurrect a series of regulations that were previously deemed unnecessary, imprudent and burdensome to businesses." USCC said most TV and radio stations qualify for the SBA definition of a small business and would be severely hampered by administrative and labor costs which would be imposed by the new regime.
RBR observation: If you broadcast a dripping faucet and people from your service area tune in to watch or listen, the public interest is in fact being served. The station can produce a completely empty creel regarding the FCC's fishing expedition for the kind of public interest programming it would like to see, and still the FCC would have no recourse. And if we are correct, and the FCC cannot do a thing about such a ridiculous abuse of the airwaves (which no broadcast company in its right mind would ever perpetrate) (except maybe as an interim format flip stunt) then the whole entire FCC enterprise is a waste of time and money.
More than a reign delay for latest Open Meeting
We pun, because profoundly delayed Open Meetings have been a relatively frequent occurrence under the reign of FCC Chairman Kevin Martin. But this one went beyond that. The commissioners handled a couple of items early, postponed others, and went off to a public hearing on telephone stuff, upgrading the reign delay to a full-fledged postponement. Well, almost. They decided to just go ahead and let the hearing count as the June Open Meeting. No matter for broadcasters in any event - the agenda was devoid of any topics of interest. |
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May retail sales boosted from Gov. checks
With a little help from Uncle Sam, consumers headed back into the stores in May. According to the National Retail Federation, retail industry sales for May (which exclude automobiles, gas stations, and restaurants) jumped 3.8% unadjusted over last year and 0.9% seasonally adjusted month-to-month. May retail sales released by the U.S. Commerce Department show total retail sales (which include non-general merchandise categories such as autos, gasoline stations and restaurants) increased 1.0% seasonally adjusted from the previous month and increased 3.0% unadjusted year-over-year. |
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XM/Sirius rendevous approaching?
Who knows? Sam Brownback (R-KS) has reacted to allegations that XM and Sirius may have misrepresented the facts in testimony supporting their merger and is asking Senate Judiciary Chairman Patrick Leahy for a hearing on the matter. Brownback cited possible discrepancies between Sirius exec Mel Karmazin's testimony before Congress and information filed with the FCC. Much of the controversy hinges on the lack of an interoperable receiver allowing consumers to easily switch from one service to the other if they so desire. Attorneys for the two companies are arguing that their only requirement was to design one, which they claim to have successfully done.
Wall Street Journal, in an editorial, said flatly that if the DOJ approved the deal then it isn't anticompetitive, and cited unnamed sources to allege that FCC Chairman Kevin Martin is looking for "more political cover" before giving the merger a go-ahead.
RBR observation: We don't know if Mel is deliberately lying, or just doesn't know what he's talking about. We were deeply involved in the satellite radio issue back at its birth, but Mel had no involvement until many years later. The satellite radio companies clearly acknowledged that the rules required every receiver to be interoperable. They begged the Commission to let them get by without meeting that requirement at launch, but promised that the second-generation receivers would be interoperable -- a pledge that was never met.
U.S. ad spend increased 0.6% in Q1
Total measured advertising expenditures in the opening quarter of 2008 increased by 0.6% as compared to the same period in 2007, according to data released by TNS Media Intelligence. Growth leadership, on a percentage basis, was strongest among smaller media types. Sunday Magazines (+17.1%) and Network Radio (+12.0%) were boosted by an extra week in their reporting quarters. Syndication TV expenditures surged 11.2%, aided by more hours of programming and limited exposure to the writer's strike. Internet display advertising fell back from its double-digit growth rates of last year but still achieved a healthy gain of 8.5%. Cable TV (+4.1%) and Outdoor (+2.5%) also experienced some slowing compared to recent periods. |
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Stocks close higher
It was an up day, but stock prices retreated from larger early gains as high oil prices continued to press on the market. The Dow Industrials rose 58 points, or 0.5%, to 12,142.
Radio stocks also gained. The RBR Radio Index rose 0.669, or 0.9%, to 76.729. Saga had the best day, up 6.9%. Radio One Class D rose 6%.
Here's how stocks fared on Thursday
Company |
Symbol |
Close |
Chng |
Company |
Symbol |
Close |
Chng |
Arbitron* |
ARB |
|
49.07 |
-1.27 |
Google |
GOOG |
|
552.95 |
+7.75 |
Beasley* |
BBGI |
|
4.30 |
-0.20 |
Hearst-Argyle |
HTV |
|
21.57 |
+0.22 |
CBS CI. B |
CBS |
|
20.59 |
-0.05 |
Journal Comm. |
JRN |
|
5.61 |
+0.10 |
CBS CI. A |
CBSa |
|
20.67 |
+0.06 |
Lincoln Natl. |
LNC |
|
50.99 |
+0.95 |
Citadel* |
CDL |
|
1.49 |
+0.05 |
Radio One, Cl. A |
ROIA |
|
1.25 |
+0.05 |
Clear Channel* |
CCU |
|
35.42 |
+0.31 |
Radio One, Cl. D* |
ROIAK |
|
1.23 |
+0.07 |
Cox Radio* |
CXR |
|
12.38 |
-0.12 |
Regent* |
RGCI |
|
1.02 |
+0.01 |
Cumulus* |
CMLS |
|
4.86 |
+0.11 |
Saga Commun.* |
SGA |
|
5.20 |
+0.29 |
Debut Bcg. |
DBTB |
|
0.45 |
0.00 |
Salem Comm.* |
SALM |
|
2.20 |
+0.04 |
Disney |
DIS |
|
33.24 |
-0.03 |
Sirius Sat. Radio |
SIRI |
|
2.40 |
-0.05 |
Emmis* |
EMMS |
|
2.71 |
0.00 |
Spanish Bcg.* |
SBSA |
|
1.16 |
-0.02 |
Entercom* |
ETM |
|
8.30 |
-0.02 |
Westwood One* |
WON |
|
1.41 |
+0.01 |
Entravision |
EVC |
|
4.65 |
+0.17 |
XM Sat. Radio |
XMSR |
|
10.33 |
-0.26 |
Fisher |
FSCI |
|
33.94 |
+0.44 |
- |
- |
- |
- |
- |
*Component of the RBR Radio Index |
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Ad Business Report
eBay shutters
Online media exchange
Media Markets & Money
Will SLC Blaze orphan a kitty?
The end result of a complicated deal
Media Business Report
U.S. ad spend
Increased 0.6% in Q1
Ratings & Research
May retail sales
Boosted from Gov. checks
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Newberry takes the chair
Steve Newberry, President and CEO of Commonwealth Broadcasting, has been elected Chairman of the NAB Radio Board, succeeding Russ Withers, owner of Withers Broadcasting. IBC Broadcast Holdings President and COO Charles Warfield was elected First Vice Chair and Caroline Beasley, EVP/CFO of Beasley Broadcast Group, Second Vice Chair. Jack Sander, senior advisor to Belo Corp., was reelected NAB Joint Board Chairman. In case you were wondering, David Rehr was also reelected President and CEO of NAB.
Canter to CBS Radio Sales
Interep's CBS Radio Sales announced that Dean Canter has joined the company as Vice President/General Manager. Canter joins CBS Radio Sales from Emmis' KMVN-FM "Movin 93.9" Los Angeles, where he was General Sales Manager. Canter will oversee CBS Radio Sales' offices in San Francisco, Seattle and Los Angeles. He reports to Jana Cosgrove, President, CBS Radio Sales. Upped at WALK
Patrick Shea has been promoted to Program Director at Clear Channel New York's WALK-FM Long Island, succeeding Rob Miller, who had been PD at WALK since 2001. Miller has also been serving as PD at sister station WKTU-FM NYC and will continue in this role. Shea had been PD and will continue to be on air 7-midnight. On the beach
Dave Wellington, who had been Program Director, announced that he and WBCN Boston have parted ways. |
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SBS founder dead at 82
Spanish Broadcasting System founder Pablo Raúl Alarcón Sr. has died at age 82. He was Chairman of the board of directors of the company, now headed by his son, until 1999, and remained Chairman Emeritus and a director until his death. SBS was actually the second radio company built by Alarcón. The first, in his native Cuba, was seized by the Communist government in 1960. He then established himself as a radio personality and executive in New York and bought his first US station in 1983. SBS now owns 21 radio stations in the US and Puerto Rico, plus Mega TV and the LaMusica.com Internet portal.
Hitman allegations in radio lawsuit
Nicole Spence, a former talent booker for "The Wendy Williams Experience" on Inner City's WBLS-FM New York has filed a sexual harassment against Inner City, Williams and her husband, Kevin Hunter. But what's making headlines in the NYC media is the allegation in the lawsuit that Hunter once engaged a WBLS employee to help him find a hitman to kill rival DJ Tarsha Jones of Emmis' WQHT-FM. The defendants have not yet responded to the lawsuit.
Good news for unemployed DJs
If you can't find a radio gig, you can at least come up with some cash by monetizing your closet full of promotional CDs. A federal judge in California has ruled that those "not for sale" stickers on the free CDs sent out by record labels have no legal validity. The ruling came in a case brought by Universal Music Group against an online merchant who had been selling promo CDs on eBay. |
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News you won't read any where else. RBR--First, Accurate, and Independently Owned.
Performance royalties
get loft in subcommittee
Many see only the performers side, and the members who see merit in the broadcast side also see merit in the performer's argument. That means the tilt would seem to be firmly to the performer side of the issue.
RBR observation: After soaking in the proceedings, we'd have to guess that this is a bill that will in fact have some legs, and that would be true even if the Democrats don't pick up a single new seat in the next Congress.
06/12/08 RBR #115
Adelstein attacks propaganda
Many FCC commissioners adopt a signature issue as their own special concern, and for Jonathan Adelstein (D) that issue has been sponsorship identification and other concerns falling into the broad payola category.
RBR observation: While Adelstein's attitudes may seem alarming, there may well not that much for broadcasters to be concerned about. How many are really looking to combine broadcast and newspaper right now? But you never know. More at tvbr.com.
06/12/08 RBR #115
Spanish-Language broadcasters join forces on PPM
Spanish Broadcasting System, Entravision, Univision and Border Media Partners have formed an industry-focused committee to voice concerns about Arbitron's proposed rollout of the PPM.
06/12/08 RBR #115
Cox prevails over
dual denial attempts
The $60M acquisition of six stations in the Athens GA vicinity by Cox Radio from Paul Stone's Southern Broadcasting Companies has been granted by the FCC over two utterly unrelated objections.
RBR observation: Wow - tough words from the Commission. It appears that those who send frivolous or otherwise unsupported filings to the FCC are on notice.
06/12/08 RBR #115
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