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Infinity sues Clear Channel
for breach of contract;
adds Stern on nine stations
Marking the 'Self Proclaimed King of All Media' returning to five of the six markets where he has been off the air since 2/26 when Clear Channel axed him from its holdings. At the same time, Infinity has sued Clear Channel for breach of contract, seeking at least $10 million in the suit filed in a New York federal court. RBR observation: May prove some talk wrong because after Mel 'Zen Master' left nobody thought Stern was going to stay. Stern was happy about it on-air yesterday, 6/30. This proves what an Infinity source said months ago, that Infinity was standing behind Stern all the way. Yep, we know those nine stations are owned by Infinity but look at the markets, the bottom line cash savings and national publicity Stern bring to the table.

Example: Tampa - WQYK-AM, Sports - Remember it was WQYK-AM and Country WQYK-FM decided 04/30/04 RBR #85 not to re-up with the Tampa Bay Buccaneers, after 13 years. Why? Too much money to the tune of $4M for the Buc's rights and GM Charlie Ochs was breathing easy. Money again - Tampa market has no shock since Bubba was roasted by Clear Channel and now that number 1 audience with the estimated $4M of local morning business may just show up in the WQYK-AM's bank account.

Ps: RBR has the filing made by (Plaintiffs) One Twelve, Inc. and Infinity Broadcasting, Inc. against (Defendant) Clear Channel Communications, Inc. and it is a goodie. Stern starts July 19th and this should be a hell of a national party. A look see at the markets were the King is coming | More... |

Smulyan says Wall Street has overreacted
Emmis Communications over-delivered on its guidance to The Street for its most recent quarter and is promising more growth for the current quarter, but like other broadcasting stocks - - particularly in radio - - Emmis is being treated like Rodney Dangerfield by investors - - no respect. In his quarterly conference call with analysts, Emmis CEO Jeff Smulyan complained that Wall Street has overreacted to pacing numbers and other rumors about weak prospects for broadcasters. Although Emmis isn't in a position to buy back its own stock, since it is focused on de-levering its balance sheet, Smulyan said he would like to be able to buy back his company's stock at current depressed levels and, like many other broadcasters, expressed frustration with where the company's stock price is in the current market. For its current fiscal Q2, which ends August 31, Emmis is projecting that pro forma radio revenues will be up 3% and television 10.4%.

Survey says: Regulate content!
The First Amendment Center and the American Journalism Review recently conducted another in a series of far-ranging surveys on public views of media speech regulation. Among the things they found was a willingness to accept of government regulation of entertainment content. 58% say that the government is doing OK now, while 16% think it's already overdoing it and 21% say it's not doing enough. That would seem to indicate support for the status quo with equal tugging on either side of the question. However, look at these numbers: 49% would eliminate safe harbor, extending the effectiveness of current content regulation from 6AM-10PM to 24/7. And 54% would apply the same rules to cable that apply to over the air broadcasters. In general, support for the First Amendment has rebounded since the aftermath of 9/11, when the country was split down the middle (49% to 49%) on whether or not it goes too far. Now, 30% think the First Amendment guarantees too much freedom, as opposed to 65% who do not agree.

Test your indecency IQ!
Attorneys Erwin Krasnow and John King of Garvey Schubert Barer have put together a quick, easy-to-take IQ test which tells you whether or not you need to bone up on the particulars of broadcast decency enforcement as practiced by the FCC these days. Krasnow explains, "It's a painless (one might say even entertaining) true-false exercise. Try it - - I'll wager you'll get at least one wrong." The test is presented on the web, so go here to give it a try. This writer, immersed in the indecency wars for some time now, got a pair of questions wrong. I checked out the little box explaining what the scores mean and was advised that I might just as well get out my wallet and make my contribution to the national treasury now. I guess there just isn't any room for slip-ups in the current environment!

Third Circuit commentary: The last of it
We don't know if this is all that's been said about the Third Circuit decision. We only know it's the last we're running in this series of comments. Here is today's final group:
| More... |

Conference Calls, Q1 2004

Emmis over-delivers for fiscal Q1
Radio was on-target and the rest of Emmis Communications beat expectations with financial results for the company's fiscal Q1, which ended May 31st. Total radio revenues were up 17% to $74.7 million, which worked out on a pro forma basis to 6% growth including international and 5% for domestic radio alone - - exactly what the company had told Wall Street to expect. TV revenues, however, were up 13% to $68.4 million, which worked out to an even more impressive 16% on a pro forma basis. Publishing was up 2% to $17.9 million, giving the company an overall gain of 14% (10% pro forma) to $161 million, $3 million better than the $158 million it had promised. CEO Jeff Smulyan noted gains in local ad sales, particularly for the TV group, and he insisted that radio as managed to increase its average unit price, despite a less than robust market. Look forward for the current fiscal Q2, Emmis is projecting that pro forma radio revenues will grow 3% and TV 10.4%. But with Wall Street traders battering broadcasting stocks for every perceived slip in ad sales momentum,
Smulyan warned that it remains hard to gauge pacings very far out.

Adbiz ©

McCann Erickson scores $100M Viagra account
McCann Erickson scored the $100M Pfizer's Viagra account after a review that included the incumbent Omnicom's Cline Davis and Mann NY, Omnicom's Merkley and Partners NY and WPP's Berlin Cameron/Red Cell NY. However, Cline Davis and McCann will keep the professional and online part of the account while McCann takes over all consumer-related marketing efforts. Pfizer initiated the review in February. McCann and Merkley emerged as the two finalists. Competing drugs, new to the market, Levitra and Cialis have been eroding Viagra's market share, which currently stands at 85%.

TVinMOTION to launch in Boston taxis 7/1
TVinMOTION has successfully completed a 90-day test drive of its mobile media program in Boston and will launch full scale commercial ops 7/1. TVinMOTION is transforming a fleet of over one hundred Boston taxis into mobile marketing vehicles. Mounting high-tech flat-screen TV monitors into the back seats, TVinMOTION will place exclusive, high-quality original programming and advertising in each of its specially equipped vehicles. In its role as an official media partner of "Celebrate Boston 2004," a month-long celebration of community and culture leading up to the Democratic National Convention, TVinMOTION has produced a video for its taxi fleet that highlights Boston's unique role in America. The program will feature a special welcome from Boston Mayor Thomas M. Menino, short video clips on Boston landmarks, entertainment programming, biography features from media partner A&E Networks, select video advertisement clips from Boston merchants as well as non-profit entities and a number of PSAs. TVinMOTION is a New Jersey based outdoor television network that produces proprietary video content for its taxi TV operations as well as for other high-traffic outdoor locations and is currently developing an affiliate program to bring its service to select cities across the US as well as internationally.

Media, Markets & Money tm

Washington Beat

Programming

Highlights from the Tom Joyner Fantastic Voyage cruise
The Tom Joyner Fantastic Voyage cruise 2004 raised over $1.5 million for students at historical black colleges.

Left-Actor/comedian Steve Harvey seems to have forgotten where his cabin is!

Right-Joyner cools off R&B star Gerald Levert during one of the hottest performances on the ship.

Transactions

$4.725M FM CP Columbia SC (Forest Acres SC) from Exosphere Broadcasting LLC (Clifford Burnstein) to Couble O. Radio Corp. (Robert Pittman, Robert Sherman et al). $230K escrow, balance in cash at closing. CP is for Class A on 94.3 mHz with 3.3 kW @ 443'. [File date 6/4/04.]

$1.65M WEZG-FM Knoxville (Jefferson City TN) from East Tennessee Radio Group LP (Paul G. Fink) to Citadel Broadcasting Company (Farid Suleman et al). $100K escrow, balance in cash at closing. Superduopoly with WNOX-AM, WOKI-FM, WIVK-FM. No overlap with WYIL-FM, WNOX-FM. LMA since 6/1/04. Terminates 6/25/02 LMA/option held by L.B. Radio of Knoxville LLC. [File date 6/4/04.]

Stock Talk

Radio Stocks