Volume 21, Issue 117, Jim Carnegie, Editor & Publisher
Wednesday Morning June 16th, 2004

Radio News ®

Brownback looking to narrowcast decency bill
Sen. Sam Brownback (R-KS), sponsor of the stalled Senate version of the Broadcast Decency Act of 2004, has his thumb out to see if a stripped down version of the bill can hitch a ride on a defense bill, according to Reuters. Both the House and Senate versions of the bill originated as legislative vehicles to greatly increase the amount of fines the FCC can assess companies found to be in violation of broadcast indecency standards. There were numerous differences between the two versions. However, a Byron Dorgan (D-ND) amendment to the Senate version which would freeze the FCC's 6/2/03 broadcast ownership rulemaking for a year is thought to be causing the Senatorial stall. A similar measure in the House version was withdrawn in committee to avoid saddling the measure with what many viewed to be a poison pill. According to Reuters, Brownback's amendment would include nothing more than a ten-fold increase in the FCC's top-drawer fine, taking it from $27.5K to $275K.

FCC wants your help in thinking small
The FCC's Media Bureau is looking at a series of 2000 studies on various aspects of increasing small business participation in the broadcasting and telecommunications fields. It is especially interested in ways to promote the elimination of entry barriers, with a special emphasis on techniques which will pass constitutional muster. | More... |

Harris vs. Withers vote tally today
Withers Broadcasting owner Russ Withers did indeed mount a challenge to the re-election of Alan Harris of Wagonwheel Communications for the third seat on the Radio Executive Council at yesterday's NAB Radio Board meeting and election. That was the only contested seat and the results of the balloting won't be announced until today. In the Joint Board meeting, Phil Lombardo of Citadel Communications was re-elected Chairman without opposition and, of course, Eddie Fritts was approved for two more years as President and CEO, heading to his retirement. In the Radio Board meeting, Bruce Reese of Bonneville International moved up from Vice Chairman to Chairman without opposition. David Field of Entercom was elected Vice Chairman, also running unopposed. The Television Board meets today.


Bear Stearns bullish on XM
Bear Stearns analyst Robert Peck has told clients that XM Satellite Radio may soon raise its guidance for 2004. That follows word from the company at a recent Deutsche Bank Securities presentation (6/10/04 RBR Daily Epaper #113) that XM installations by General Motors and its dealers for the 2004 model year are already at the level which had been expected for the 2005 model year. The Bear Stearns analyst also says the company's prospects should be boosted by its new advanced-chipset products. Peck reiterated his "outperform" rating on XM's stock.

FCC's diversity committee makes its reco
Resurrection of the minority tax certificate was seen by the FCC's Advisory Committee on Diversity for the Digital Age at its meeting Monday. However, the committee also recognized that a return to the policy was beyond the Commission's authority. It came up with a number of other suggestions which it believes the Commission can put into effect without additional congressional authorization. The recommendations include the following: "...retaining and possibly expanding the Commission's Distress Sale Policy; creating incentives within FCC ownership and licensing rules; and considering a Supplier Diversity Program that might provide auction credits to companies that do business with diverse entities. The Committee also recommended that the Commission adopt a rule specifically prohibiting intentional discrimination on the basis of race, color, national origin, or gender in the purchase or sale of any FCC-licensed facility." "The Committee's recommendations provide the Commission with an array of mutually reinforcing options for promoting diversity in the telecommunications and media markets," said Committee Chair Julia Johnson of NetCommunications. "We look forward to continuing to work with the Commission to implement these recommendations and evaluate new proposals for promoting diversity."

MMFA presses attack
on AFRTS' Limbaugh segment
David Brock of Media Matters for America has written to Secretary of Defense Donald Rumsfeld once again, pressing for the deletion of an hour's worth of "The Rush Limbaugh Show" from AFRTS radio broadcasts in Iraq. Brock noted that Rumsfeld had not responded to his letter of 5/25/04. He attached a petition including 24K names with his follow-up letter. Brock noted that while President George W. Bush and other members of his administration continue to denounce the abuse at Abu Ghraib, "...Mr. Limbaugh has continued his inappropriate and divisive speech." Brock noted the comments of Deputy Assistant Defense Secretary for Internal Communications Allison Barber, who said that Limbaugh was being carried, and Howard Stern was not being carried, because of content issues. "By acknowledging that AFRTS bases programming decisions on whether the program's content is 'appropriate,' Barber tacitly condoned Limbaugh's reference to the Abu Ghraib abuses as 'brilliant' and his comparison of the torture to fraternity hazing." "I look forward to hearing from you and continue to hope the Department of Defense will send a clear signal to our troops that it does not sanction Mr. Limbaugh's remarks," Brock concluded.


Adbiz ©

AOL Latino launches national
Spanish language campaign

AOL Latino announced the launch of its largest TV campaign reaching all major Spanish language Networks including Univision, Telemundo, Telefutura and Azteca America, as well as cable outlets. In addition to running television awds, radio spots will also break on national Hispanic radio Networks. On the local front, specialized promotions will kick off in Miami and Chicago. | More... |

CareerBuilder.com to tackle the Super Bowl
CareerBuilder.com announced it's suiting up for the launch of a national marketing effort in 2005 that will include its TV debut at the Super Bowl. The company is stepping up its outreach and significantly increasing its marketing spend to further extend its brand awareness amongst job seekers and employers across the country. The 2005 campaign will be the largest brand awareness initiative launched by the company to date, via a combination of primetime national network and cable television, local radio, print, spot television, interactive and outdoor. The campaign will be complemented with ad support from the more than 130 newspapers, 48 TV stations and websites of owners Tribune Company, Gannett and Knight Ridder. CareerBuilder will also be introducing a new creative treatment at Super Bowl XXXIX, which is currently being developed by Cramer-Krasselt. Cramer-Krasselt also developed CareerBuilder.com's "Plan Your Escape" campaign this year and the "Smarter Way to Find a Better Job" campaign in 2003.

Fox News redesigns website
with advertisers in mind

Fox News launched a major redesign of its website in an effort to increase its online viewers and advertising. The new design is the site's first large-scale change since 2001, creates new advertising spaces, emphasizes video and aims to make the site look more like the cable channel. Editor's note: Fox understands the internet.| More... |

CAIR two launch national PSA campaign
Today, the Council on American-Islamic Relations (CAIR) will hold a news conference in DC to launch a nationwide TV and radio PSA effort "I am an American Muslim," highlighting the Muslim community's support for religious diversity and service to the nation. Thespots are part of CAIR's ongoing efforts to challenge anti-Muslim discrimination and intolerance. The PSAs will be distributed by satellite on today at 2:15 p.m.-2:30 p.m. ET (11:15 a.m.-11:30 a.m. PT), on C-BAND, Intelsat Americas (IA) 6, Transponder 15, D/L: 4000 V. They will also be available on CAIR's web site (http://www.cair-net.org) following the news conference. CAIR will present 30 and 60-second PSAs featuring American Muslims of European, African-American, Hispanic, and Native American heritage. Each person in the PSAs states how they and their families have served America and ends by saying, "I am an American Muslim." The PSA launch comes following release of CAIR's annual report on the status of American Muslim civil rights that revealed a 70% increase in anti-Muslim incidents nationwide during 2003.


Media, Markets & Money tm

Beasley expands in eastern North Carolina
Beasley Broadcasting is extending its reach in the coastal plains of North Carolina, getting a simulcast AM-FM combo that is adjacent to two of the group's rated-market clusters. The Elizabethtown combo is coming for $850K. The seller of Oldies/Beach WBLA-AM/WGQR-FM is Sound Business of Elizabethtown Inc. It is located southwest of Beasley holdings in the Greenville-New Bern market, and southwest of holdings in Fayetteville. President/GM Lee Hauser is being retained to run the stations, which are not expected to undergo any major operational changes. "We have always been bullish about the economy in North Carolina," said George Beasley, "and the purchase of these two heritage stations is a good opportunity to enhance our profile with listeners and advertisers in this vibrant region."


Washington Beat

A fine time for Time Warner
Lest anybody think that broadcasters are the only ones who get nailed on the public file rap, along comes Time Warner Cable, hit by the FCC for $10K for just such a violation at its Bakersfield CA cable system. At issue was missing info in the file, specifically about signal leakage test data and children's programming. TW asked forgiveness, noting that cable system had just undergone an office move. In the confusion, proper attention to the file fell through the cracks. Additionally, the required children's programming info was there, but misfiled. Moving is no excuse, said the FCC. However, it did grant partial forgiveness on the simple misfiling, reducing the fine to a total of $6.6K.


Engineering

The mission to bring
text messaging to radio - - Part I

In this four-part RBR E-paper series, everything you wanted to know about text messaging for radio: The mobile phone, because it usually follows its owner everywhere and is almost always on, opens up many new opportunities for marketers. Mobile marketing can drive a high level of response and consumer action while building brand recognition, loyalty and sales. The cost-per-contact in mobile marketing is a fraction of comparable costs in more traditional marketing channels, such as direct mail and call centers. For example, the cost per contact for direct mail begins at $1.00, while SMS (Short Message Service) carries a cost-per-contact starting at $.15.

Mobile messaging as a marketing tool is well-developed in Europe and Asia, but is still only emerging in the US. In fact, in many other countries, consumers send and receive far more text and visual messages - - including video with sound - - over their mobile phones than they do voice messages. Some of the SMS text services for radio decided the time was right to enter the US market on the heels of Fox's "American Idol." It made the market aware of its existence. Across the country in the first eight weeks of the show, viewers were asked to vote using this technology that they hadn't used much before. Some of the results were significant. It was only available through AT&T, to its 20M subscribers. Over the course of that first eight week program, they received 21M SMS votes. | More...
|


Ratings & Research

Univision Radio study shows
explosive audience growth for Spanish radio

Spanish Radio has experienced dramatic audience growth over the past ten years, according to Univision Radio National Sales latest analysis of Arbitron listening estimates. Even more impressive is the fact that Spanish Radio's listening is growing nearly twice as fast as the Hispanic population. "The explosion of the Hispanic population in the U.S. has been well documented," said Kathleen Bohan, VP/Research and Marketing for Univision Radio. "Advertisers continue to recognize the increasing importance of marketing to Hispanics and their expanding economic power. Spanish radio is becoming more and more important in their marketing plans." | More... |


Transactions

$10.8M: KDLH-TV Duluth MN-Superior WI (Duluth MN) from New Vision Group LLC to Malara Broadcast Group LLC.

$800K WTOT-AM/WJAQ-FM Marianna FL from MFR Inc. to Stage Door Development Inc.

$100K WGRT-FM Port Huron MI. 33% of Port Huron Family Radio Inc.

| More...
|


Stock Talk

CPI numbers cheer Wall Street
Inflation appeared to be tame in the government's latest report on consumer prices, so traders bought stocks to celebrate. The Dow Industrials rose 46 points, or 0.4%, to end the session at 10,380.

Radio stocks were mixed. The Radio Index ended with a tiny loss of 0.033, or 0.01%, at 257.503. Regent was the day's best performer, up 3.4%, while Entercom was the worst, down 2.3%.


Radio Stocks

Here's how stocks fared on Tuesday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

$39.00

-$0.01

Jeff-Pilot

JP

$50.29

-$0.07

Beasley

BBGI

$15.30

+$0.17

Journal Comm.

JRN

$18.30

+$0.17

Citadel CDL $14.30 -$0.13

Radio One, Cl. A

ROIA

$15.59

-$0.20

Clear Channel

CCU

$36.60

-$0.63

Radio One, Cl. D

ROIAK

$15.60

-$0.16

Cox Radio

CXR

$17.59

-$0.16

Regent

RGCI

$5.71

+$0.19

Cumulus

CMLS

$16.63

+$0.04

Saga Commun.

SGA

$18.82

+$0.32

Disney

DIS

$24.70

-$0.02

Salem Comm.

SALM

$30.73

-$0.18

Emmis

EMMS

$21.19

+$0.17

Sirius Sat. Radio

SIRI

$3.23

-$0.02

Entercom

ETM

$37.89

-$0.88

Spanish Bcg.

SBSA

$9.36

+$0.17

Entravision

EVC

$8.02

-$0.03

Univision

UVN

$32.22

-$0.38

Fisher

FSCI

$49.65

+$0.20

Viacom, Cl. A

VIA

$37.59

+$0.14

Gaylord

GET

$31.23

+$0.83

Viacom, Cl. B

VIAb

$37.10

+$0.15

Hearst-Argyle

HTV

$25.83

-$0.01

Westwood One

WON

$25.04

-$0.35

Interep

IREP

$1.33

-$0.31

XM Sat. Radio

XMSR

$23.51

-$0.48

International Bcg.

IBCS

$0.03

-$0.01

-

-

-

-


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RBR Audiocast

06/16 - Get the feel of what you are scrolling down and reading... Listen to this morning's AudioCast and
Hold On To Your Hair!

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with Bob DeCarlo'
"In Da Morning"


Ken Lee departs

Effective - June 15, 2004 Ken Lee VP/Associate Publisher/GM has departed to pursue other opportunities. All RBR/TVBR business questions should be directed to Publisher Jim Carnegie at [email protected] 703 719 - 9500.


Bounceback

We want to hear from you.
This is your column, so send your comments to [email protected]


Upped & Tapped

Ward new CFO for Univision Radio
Univision Radio announced that Timothy Ward, previously VP/Treasurer, has been promoted to Vice President and CFO. He succeeds Jeff Hinson, who moved up to CFO of the parent company, Univision, earlier this year (3/23/04 RBR Daily Epaper #57).


More news Headlines

Competing Media

Report:
Audit found high "fault rates" with LPM

Someone has leaked to the Los Angeles Times portions of the Ernst & Young audit which led to the Media Ratings Council refusing to accredit Nielsen's Local People Meter (LPM) service in New York. According to the Times, the audit found problems with the sample of viewers and with data from the meters. | More... |


June Digital Magazine

Complimentary Report
The Indecency Debate
Radio's Talkers Talk Thoughts like:
Tony Snow, Alan Colmes, Doug Stephan, Ed Schultz. Over 20 top Talkers Speak out
in RBR - Get it - Read It !

Read RBR in 2 simple steps:
1.Create a simple account with Zinio and download the free Zinio Reader.
2. You can then download the free June Issue of RBR




RBR Radar 2004
Click on these issues for Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Howard Dean lauds local media
Was generally critical of the media, especially at the national level. "I think the media doesn't understand what it's role is in this country any more," he said. He called the news media the fourth branch of government, saying that it was not calling the rest of the government to account. Instead, the national press corps engages in games of "gotcha" rather than uncovering and presenting a true picture of candidates and issues. Editor's note: Dean blames a noise-squelching mic as he was attempting to buck up spirits and was using a loud tone of voice because he had to be heard over the crowd. Well Mr. Dean radio can make any face for TV sound good. If you missed it the first time then take another listen for old time sake. Radio's production of The Dean Scream. 06/15/04 RBR #116

Charting the future for
the post-Eddie NAB
The Eddie Fritts era at the NAB is coming to an end. The organization has come a long way in his 22 years, but where should it be going once Eddie retires within the next two years? A lot has already been said by some NAB members about wanting a Capitol Hill heavy-hitter. The scenario today it's the TV side of NAB that is in trouble. Job number one for the next NAB President and CEO should be to find a way to make peace between the networks and their affiliates and get at least some of the big four to re-join the association. Radio has also been hurt by not having two of its largest groups - - Infinity and ABC. Publisher's note: The clock is ticking.
06/15/04 RBR #116

P&G signs sponsorship deal with Reach Media's Tom Joyner
Under the agreement, a number of P&G brands will sponsor a lineup of promotions and segments on The Tom Joyner Morning Show, including regular features such as It's Your World and Thursday Morning Mom; annual special events, such as the 2005 Fantastic Voyage Cruise and Tom Joyner's Family Reunion; the minority health promotion Take a Loved One to the Doctor Day; and for the next 18 months, all Sky Shows (the numerous live broadcasts of the syndicated morning show hosted throughout the country). Publisher's note: This is good solid business and fun radio. Bravo!
06/15/04 RBR #116

CBS, ABC seal upfront ad deals
Wake up call radio - CBS wrapped up its upfront yesterday with a total take of $2.4B, up from $2.2B last year. CBS was able to obtain double-digit CPM increases in ad rates. ABC completed its 2004 upfront sales, bringing in $2.1B in total primetime upfront sales for the 2004-2005 television season. Editor's note: Radio and all your CEO's and associations and committees best get it together. 06/15/04 RBR #116

The war is over at the NAB
Back at the NAB convention in Las Vegas, it looked like a battle royale was shaping up. Eddie Fritts is getting a two-year renewal as NAB President and CEO, with the search now beginning for a successor as he heads into retirement
06/14/04 RBR #115


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