Welcome to RBR's Daily Epaper
Volume 21, Issue 129, Jim Carnegie, Editor & Publisher
Friday Morning July 2nd, 2004

RBR will return Tuesday July 6th. Have a safe and happy 4th.


Radio News ®

Commission taking comments on localism
The FCC's study of the issue of broadcast localism is being thrown out to the public for comment. There are numerous topics which the FCC seeks to address under the general localism umbrella. Comments are due by 9/1/04, with reply comments accepted up to 10/1/04. Here is the unadorned list of topics being considered: communication with communities; nature and amount of community-responsive programming (and the role of market forces); political programming; underserved audiences; disaster warnings; network affiliation rules; payola; sponsorship identification; voice-tracking; national playlists; license renewals; and addition spectrum allocations (LPFM). Four of the five commissioners appended comments. Chairman Michael Powell called the effort a fact-finding mission rather than a result of a finding that broadcasters are lacking when it comes to meeting local demands today. He asked for information not only on what should be done but also what is being done. Kevin Martin applauded the effort, saying, though, that an affiliate's right to reject network programming needs to be strengthened. Michael Copps is all for the effort, too, but says it should have been undertaken prior to the 6/2/03 ownership rulemaking. Jonathan Adelstein and Copps both said there are some issues on the table which are already ripe for rulemaking without further comment.

Copps: Bring back the road show
Democratic Commissioner Michael Copps is ready to go on tour, not so much to talk but to listen. With the FCC's ownership radio, television and crossownership caps remanded by the courts for justification or modification, he wants the public to have some input. And he wants to go to the public in diverse locations.

RBR observation: Regardless of where you stand on the issue of consolidation, frankly, if you've been to one of these meetings, you've been to them all. A panel of professionals argues the pros and cons, depending, and every citizen with an axe to grind shows up and grinds it. Meanwhile, citizens who like their broadcast content just the way it is are content to stay home. The forums generally end up with a group-affiliated station GM and maybe a newspaper guy who'd like to buy a station trying to convince everyone else that their paychecks are not signed by a guy with horns and a pitchfork. | More... |


Viacom bids to buy SportsLine.com
We certainly had the call on this one (5/21/04 RBR Daily Epaper #100). Viacom has indeed decided that it wants to protect its investment in SportsLine.com and has offered to pay about $40 million to buyout other shareholders. That bid will pay other shareholders $1.50 per share for the 62% of SportsLine that Viacom doesn't already own - - a 39% premium over Wednesday's closing price of $1.08. While a special committee of SportsLine's board of directors reviews the Viacom offer, the two companies have put on hold until August 1st a $35 million payment, all in stock, that SportsLine was due to pay Viacom yesterday (7/1). That payment would have made Viacom the online sports site's majority shareholder and severely diluted other shareholders. SportsLine, which operates the cbs.sportsline.com web site, had put itself up for sale in late May to avoid having to give Viacom majority control on the cheap - - and now has a better deal for its shareholders from the most logical buyer, Viacom.

Glickman to head MPAA
The long search is over and a successor has been named for Jack Valenti as President and CEO of the Motion Picture Association of America (MPAA). The post has gone to Dan Glickman, former Secretary of Agriculture under President Bill Clinton and before that a Congressman from Kansas. Thus ends MPAA's long and difficult search for a Washington heavy hitter to fill Valenti's shoes - - the type of search that is just now beginning for the National Association of Broadcasters to find a successor to Eddie Fritts, who is set to retire in two years.

The Ins and Outs of Houston PPM
While it still looks like Arbitron could have as many as 59 radio stations (commercial and non-commercial) encoding for its Portable People Meter test in Houston, the withdrawal of Infinity has made an already large data gap even larger. Although the three companies boycotting the PPM test - - Cox, Radio One and Infinity - - account for only 10 stations, eight draw a two share or better in the market. We ran a number crunch on BIAfn Media Access Pro and determined that the stations which won't be encoding for PPM account for 30.7 share points (12+) in the Winter Arbitron book. So even if Arbitron gets all other 59 radio stations to encode, they only add up to 52.1 share points. Here's a look at the (potential) Ins and (definite) Outs. | More... |


Adbiz ©

Sportscasters signed to tout Pepsi Edge
Pepsi's new low carb, reduced sugar drink, Pepsi Edge, is being pitched by two TV sportscasters in spots due to premiere this weekend on the Fox broadcast of NASCAR's Pepsi 400. The spots by BBDO New York feature Stuart Scott of ESPN's SportsCenter and Rich Eisen of the NFL Network playing up everyday achievements as big moments of celebration, akin to winning the big game. "Now you can reward yourself for even the smallest achievement," is the message of the campaign, according to Dave Burwick, Senior Vice President and Chief Marketing Officer of Pepsi-Cola North America.

Lender takes to the airwaves to court Hispanics
Countrywide Home Loans Inc. believes that Hispanics would like to trade apartment life for home ownership, but are both afraid of the process and unaware that there are avenues toward home ownership available to them. The company sees an opportunity. It says that translating a message from English to Spanish and then throwing it on Spanish media isn't enough. "...we have crafted messages that expressly speak to the Hispanic community - - assuaging their anxieties, demystifying any confusion, and earning their trust." CHLI will be using TV and radio to get this message across, in "large markets nationwide." If you deliver an Hispanic audience in a large market, and you haven't been in touch with CHLI, well......


Media, Markets & Money tm

Moody's rates XM bonds
Moody's Investors Service has assigned a rating of Caa1 to a new $200 million issue of senior secured floating rate notes from XM Satellite Radio which will be due in 2009. Moody's also confirmed XM's other credit ratings and raised its outlook from neutral to positive.

NextMedia invests
in the great outdoors

It's "all a-board" for NextMedia, most famous for its 60-station radio group, as in billboard. However, in this case, to get some boards it's going to have to give some up. It is trading its collection in New Jersey for new sets located in Connecticut, northern Colorado and Wyoming. The move follows a similar deal earlier in the year in which the group abandoned New York City in favor of territory in South Carolina. The Connecticut properties will dovetail with the group's existing faces in the Hartford area, while the western part of the deal builds on the group's presence in the Ft. Collins-Greeley CO and Cheyenne WY areas. Unlike the previous swap for billboards in Myrtle Beach, SC (1/30/04 RBR Daily Epaper #20), the latest deal doesn't give NextMedia any cross-platform synergy with any of its radio stations.


Washington Beat

Don't fence me in, don't complain about the fine
FCC field agents found an unlocked gate in the fencing surrounding the three-tower array of Metropolitan Radio Group's Tampa market radio station, WRXB-AM St. Petersburg. They found out that it had been unlocked for about a month for some reason. This is a no-no, and it resulted in Metropolitan being hit with a $7K fine. The group asked for a reduction based on its having fixed the problem and for having an excellent record of compliance. There was a slight problem with this plea, however. The agents went back to the site almost a year later, and the gate was open and unattended again. Payment of the full $7K has been ordered along with a reporting requirement to show compliance with the rule.


Sales

Miller Kaplan expanding X-Ray Strategic Plan
After trying it out in more than a dozen markets over the past year, Miller, Kaplan, Arase & Co. is expanding its X-Ray Strategic Plan initiative to all of the 38 markets where it offers Media Market X-Ray reports, which means the Strategic Plan is now available to some 700 client stations. Miller Kaplan partner George Nadel Rivin tells RBR that the Strategic Plan has resulted in an average of $346k in increased billings for the 40 stations in the initial test, so he's estimating that widespread implementation could boost radio revenues by $200 million per year. The X-Ray Strategic Plan uses data across all media in a market to identify 25 target accounts for the radio station to go after for new dollars. "We provide the agency name, contact, phone number and starting point for the proposal," he noted. You could say that the expansion comes at an opportune time for Miller Kaplan. With its forward pacing reports done in by Clear Channel (6/23/04 RBR Daily Epaper #122) and Infinity (6/24/04 RBR Daily Epaper #123) withholding their data, Miller Kaplan is suggesting that client stations in its 36 former pacing reports markets reallocate those budgeted funds to buy the first X-Ray Strategic Plan for Q4, which will come out in September.


Programming

Dean, Nader face off on NPR
Even if you're in TV news, you may want to pay attention to this one: Acerbic ex-candidate for the Democratic presidential nomination Howard Dean is going to face off with independent candidate Ralph Nader on the roll of third parties in national elections. The event is being held at the National Press Club next week (Friday, 7/9/04) from 2:00-3:30 PM in front of a live audience. Nader has stubbornly ignored all pleas by Democrats to get out of the race, while Dean has been among the loudest suggesting that he do just that. Should make for some interesting post-Fourth of July fireworks. The event is part of NPR's "Justice Talking" show, which is produced by the Annenberg Public Policy Center at the University of Pennsylvania.


Ratings & Research

TiVo users love reality TV
When it comes to recording and playing back programs, TiVo users are addicted to reality television. While reruns on CBS and NBC have been winning the Nielsen ratings, Fox's "The Simple Life 2" - - sending two spoiled rich brats off to tour small town America - - was the most watched show for users of the TiVo digital video recorders, while it was only tied for 15th in the Nielsen ratings. Likewise, NBC's "Last Comic Standing" reality TV competition took third place with TiVo users, but rated only a tie for 19th in the Nielsens. | More... |


Transactions

$1.6M KCKN-AM Kansas City (Kansas City KS) from Carter Broadcast Group Inc. (Michael Carter) to KCKN LLC, related to All Comedy Radio (Michael O'Shea et alll). 5-year promissory note. LMA since 3/30/04. [File date 6/4/04.]

$16M KKAT-FM Salt Lake City (Ogden UT) from 3 Point Media-Ogden LLC (Bruce Buzil) to Citadel Broadcasting Company (Farid Suleman et al). $10M Tranche A loan; $16M Tranche B loan, latter paid in cash at closing. Superduopoly with KBEE-AM, KJQS-AM, KFNZ-AM, KUBL-FM, KBEE-FM, KBER-FM & KENZ-FM. LMA since 5/5/04. [File date 6/7/04.]


Stock Talk

Stocks head south on poor car sales
GM reported that June vehicle sales fell 15% and Ford said its sales were off 8% - - bad news that ignited new fears on Wall Street about the strength of economic recovery. The Dow Industrials fell 101 points, or 1%, to 10.334.

Not surprisingly, broadcast stocks, which are dependent on auto advertising, were hard hit. The Radio Index plunged 3.624, or 1.6%, to a year-to-date low of 225.638. Journal Communications dropped 4.5%, Westwood One fell 3% and Citadel, Cumulus, Cox, Emmis, Regent, Salem and SBS were all down 2% or more.


Radio Stocks

Here's how stocks fared on Thursday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

$36.38

-$0.14

Jeff-Pilot

JP

$50.20

-$0.60

Beasley

BBGI

$15.30

+$0.19

Journal Comm.

JRN

$17.99

-$0.84

Citadel CDL $14.25 -$0.32

Radio One, Cl. A

ROIA

$16.00

-$0.06

Clear Channel

CCU

$36.39

-$0.56

Radio One, Cl. D

ROIAK

$15.83

-$0.18

Cox Radio

CXR

$17.02

-$0.36

Regent

RGCI

$6.03

-$0.16

Cumulus

CMLS

$16.37

-$0.44

Saga Commun.

SGA

$17.96

-$0.29

Disney

DIS

$25.28

-$0.21

Salem Comm.

SALM

$26.36

-$0.77

Emmis

EMMS

$20.54

-$0.44

Sirius Sat. Radio

SIRI

$3.01

-$0.07

Entercom

ETM

$37.30

unch

Spanish Bcg.

SBSA

$9.08

-$0.25

Entravision

EVC

$7.60

-$0.08

Univision

UVN

$31.66

-$0.27

Fisher

FSCI

$49.37

-$0.96

Viacom, Cl. A

VIA

$36.10

-$0.25

Gaylord

GET

$31.60

+$0.21

Viacom, Cl. B

VIAb

$35.51

-$0.21

Hearst-Argyle

HTV

$25.79

+$0.01

Westwood One

WON

$23.09

-$0.71

Interep

IREP

$1.10

unch

XM Sat. Radio

XMSR

$27.27

-$0.02

International Bcg.

IBCS

$0.02

unch

-

-

-

-


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Arbitrends

ArbitronMarket Results
| Birmingham |
| Honolulu |
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|
Salt Lake City |


Upped & Tapped

Flores to SBS
Spanish Broadcasting System has hired former Infinity manager Frank Flores as Vice President and Director of Sales for the SBS cluster in New York City. | More U&T |


Competing Media

Judge refuses to block LA People Meters
Univision has been turned down in a bid to have a Los Angeles Superior Court block next week's scheduled debut of Local People Meters in LA. Judge J. Stephen Czuleger turned down the Spanish media giant's request for a temporary injunction, saying Univision had failed to make a convincing argument that its objections to LPMs would succeed in a trial. As scheduled, LPM ratings will begin in Los Angeles next Thursday (7/8). | More... |


Stations for Sale

California Central Coast
Class A, Rated Market
Asking $1.8M, Cash
Gallup, NM 100kw
Asking $550K, EZ Terms
Brett Miller / MCH Enterprises, Inc.
(805) 237-0952 Direct
www.mchentinc.com


June Digital Magazine

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

Infinity sues Clear Channel
for breach of contract; adds
Stern on nine stations
'Self Proclaimed King of All Media' returning to five of the six markets where he has been off the air starting July 19th. And, TA DUM - 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: 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 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. 07/01/04 RBR #128

Smulyan says Wall Street
has overreacted
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. 07/01/04 RBR #128

Here drops the other shoe
On CBS and the infamous Super Bowl Jackson/Timberlake bare as you dare event. Reports all over the place have the FCC ready to slap at $550K fine only on the 20 CBS O&O's and no affiliates. The fine has to be approved and it if does - TA DUM - the largest fine levied against television broadcaster. 07/01/04 RBR #128

Tide shifting at the FCC?
Speculation on the FCC
commissioners by the LA Times, Michael Copps isn't mentioned, in a new wave of rumors of a Michael Powell exit, along with possible exits by three others. Powell is almost surely on the way out if Dem. Kerry is elected president in November giving the opportunity to put his own person in the top slot at the FCC. Many think the logical choice would be Copps. 06/30/04 RBR #127

IBiquity approves Surround 5.1
for HD Radio
SRS Labs, a provider of innovative audio, voice and semiconductor technology solutions, and iBiquity Digital announced the completion of the joint testing of SRS Circle Surround technology as a compatible surround sound format for iBiquity's HD Radio broadcast technology. Editor's note: Radio needs HD Radio - yesterday. 06/30/04 RBR #127

Analyst:
Upfront doesn't signal rate trend
It's one of those things that everyone just accepts as truth: The strength of the TV network upfront sets the pace for rates in national spot TV and radio. Well, analyst Lee Westerfield of Harris Nesbitt says it ain't so. Editor's note: The chart and the statistics map out the theory. Print it. 06/29/04 RBR #126


ABC Radio Networks, NY seeks Manager of Regional Sales planning
Experience in radio sales or traffic we need you to run our regional sales planning department. Responsibility for implementing regional copy splits across all networks. Managing all stages through to completion, this person must plan and execute custom copy splits, working closely with agencies and radio stations. Please send resumes to [email protected]

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