Welcome to RBR's Daily Epaper
Volume 23, Issue 129, Jim Carnegie, Editor & Publisher
Wednesday Morning July 5th, 2006

Publisher Perspective

Get a Brown paper Bag and Breath Deep
Universal McCann Ad guru Bob Coen's 2006 forecast for radio has fallen off a cliff since his optimistic prediction in December that both national and local would grow 4% this year. His revised numbers are for national (network & spot) to grow 1% and for local to show no growth at all. Radio, cable and newspapers took the biggest hits. Either agree or disagree the bottom line is radio does not have front mind awareness and is being overlooked and treated as old media lacking any hint of New Media buzz. As one high level CEO told me, "Ad Agencies just do not believe in us (radio) any more and we did it to ourselves." Yep, not everyone in radio is doing wrong, only the ones that continue to grab the press headlines. The bickering, lack of forward movement in all areas of our radio business is driving the wooden spike deeper and in some ways there is a cancer Inside of Radio that has to be cut out for radio to be saved and regain a healthy body. Through my travels this year to key media events, personal business meetings with ad agencies, ad clients, media executives, and TV/Cable events the bottom line is the little word Internet is moving faster than Superman.

Here is the good news - many if not most in all media still have their heads back in 2003 and learning the Internet. Some are fighting to improve but do not feel bad as for my observation the media playing field is still level in all media sectors. You have time to improve and learn Technology but very little time. 2007 will be here in six (6) months and again if you do not have your Technology Media Business Plan in place and forward movement then you will have a problem after this mid term election. Last Bob Coen's forecast 06/29/06 RBR #127 is a warning so review it and get out of your negative mind set and get local and get with Technology. If you do not have people in your company that understand technology then do as I did: Go outside and find the best to help you learn and achieve your goals. RBR is 23 years old but only a babe in the Internet Technology Electronic World and if I can learn so can you because if I did not learn most likely RBR would not be here today. RBR electronic E-paper will turn four years old this Saturday July 8th and I state if I can learn and continue to learn so can you. Share in the Voice and Just do it - Period!

Radio News ®

RBR Analysis
Ready, Set, Start 2nd Half '06
With No respite from Wall Street's disrespect if you thought Q1 of 2006 was bad for radio stocks (04/04/06 RBR #66), things only got worse in Q2. Halfway through the year, only 11 radio stocks are ahead of where they ended 2005 and Spanish Broadcasting System is dead even for the year thus far. Univision got a boost lately from its auction, but it was actually up more, 17.28%, at the end of Q1 than at the end of Q2, 13.98%. The quarter's big mover was Interep, which moved from a Q1 loss to a gain of 38.89%, but it is a thinly traded pink sheet stock and highly volatile. Disney improved in Q2 on its Q1 gain. At the bottom of the list, Westwood One saw its dismal Q1 loss of 32.27% increase to a year-to-date loss of 53.99% as new CEO Peter Kosann worked to get the radio network giant back on track. Now do not let these numbers scare the doodoo out of you because they have no place to go but up but only if the CEO's take charge and let the day to day operator run their operations for their local markets. Revenue always follows. RBR will not criticize anyone particular company but only recommendation - Now is not the time to play Follow the Leader. We also recommend if you have not explored any of the E-commerce media services do so now. With this in mind, Breath Deep and do not shoot the messenger. We just compile the data for you.

Radio stock performance year to date 2006









Net Chg

Pct Chg





















Lincoln National















Cox Radio

























Clear Channel













































Radio One, Cl. A





Radio One, Cl. D

























Westwood One





Radio Index





©2006 Radio Business Report, Inc. All rights reserved.

Editor's note: Need to put solid dollars to your unsold inventor then read July RBR/TVBR Solutions Magazine as Kathy Crawford President of Local Broadcast of Mindshare outlines her wish-list for new electronic buying systems as she evaluates all in the market place today. Get electronic and into E-media commerce. One thing Crawford states is the auction model is not the answer to our commerce.

May radio revenues: And the ones have it
It was ones as far as the eye could see. On Broadway, everything was coming up ones. Well, not always up. But two of them were up, and they were the most important ones (editors note: this is a rare opportunity to use the word one as most people use a pronoun, but in this case it's an actual noun). According to the latest Radio Advertising Bureau report on Miller, Kaplan, Arase & Co. numbers, local business was up 1%. Both national and non-spot were down 1%, but local has much more heft than either of the other categories, resulting in a positive 1% gain for the month overall compared to May 2005. Unfortunately, the modest gain did not carry the year into the black. YTD results are -1%, on -2% local results, flat national results and a 6% gain in non-spot.

RBR observation: Hey, black is better than red. Other than that, it's hard to say the month's results had any silver linings, but maybe there was a nickel or copper lining, and it was this: For the first time all year, local business was in the black. From January, the local string has been -1%, -3%, -2% and -4%. A reversal of that onerous trend is very definitely a good thing. On the other hand, non-spot was down for the first time all year, but that may be a good thing too. It could be a sign that radio stations are spending less time working the margins and more time building the core of their business. Despite all the gloom and doom we've been hearing, perhaps the worm has finally turned.

Steve Shaw booted from Katz Radio Group
Has left the building for the second and final time as Katz Radio Group (KRG) President of Katz Radio, Christal Radio and Eastman Radio. Refresh your memory to November 2003 (11/17/03 RBR #225) (which is worth a read) when the headline read - RBR Exclusive - 'Days of thunder roll over rep business; Katz Radio and Christal Radio, where are you?' Early Friday morning (11/14/03) Steve Shaw, Tucker Flood and Mark Gray, the three top executives at Katz Radio Group resigned and walked across the street to Interep to establish two soon-to-be-named national radio rep firms. Well it all fell apart within days and the three walkers walked back to across the street. In short the bill of goods they sold to Interep boss Ralph Guild did not happen as no group followed them as planned. That did not mean there was not tremendous concern and nerves on edge for those few days with Shaw explaining why they did it - (11/18/03 RBR #226) RBR Exclusive - 'Steve Shaw: Why he did it' It was like a re-enactment from the scene in "Jerry McGuire" except that this time the whole staff said yes, we will go with you. More than 130 Katz staffers did. It was just a circus atmosphere backi in November 2003. Why was Shaw booted? An RBR source thinks they know why:
| Read More... |

Executive Comment -
Steve's Shaw's departure

Rich Russo, JL Media's SVP/Director of Broadcast Services, commented on the departure of Katz Radio Group President Steve Shaw (see above): "He was the mastermind of one of the more embarrassing recent things in our industry (11/17/03 RBR #225) (although this PPM/RFP drama is coming close, can we all come together on this and move on with it?), he put a lot of people's jobs at risk, caused all sorts of drama and false hope at Interep; and caused chaos on the Katz side. I would imagine there was a bull's-eye on his back the day Olds hired them all back. Of course this is sheer speculation and nobody would ever admit that, but at least now we all can speculate on whether or not Mike Agovino is coming back for that job. It will be an interesting few weeks as this unfolds. So much for summer doldrums."

Wall Street Media Business Report TM
Tribune goes Dutch
The Dutch Auction stock buyback executed by Tribune Company is complete. The company paid 32 and a half bucks apiece for over 45M shares, totaling over 1.46B dollars. Tribune said that amounted to about 15% of outstanding stock. It is also getting an aggregate of 10% from McCormick Tribune Foundation and Cantigny Foundation 7/12/06 at the same price, and will seek an additional 20M shares on the open market on or after the same day.

Shareholders sue over Univision deal
You knew there would be a race to the courthouse after Univision agreed to be sold to Haim Saban's group for 36.25 per share, far less than the 40 bucks that had been widely circulated as the target. At least two purported class action lawsuits were filed last week in Los Angeles Superior Court, claiming that directors of Univision breached their fiduciary duty to shareholders by accepting the buy-out deal. One of the lawsuits charged that Univision board members put their own personal interests and those of the buyer ahead of shareholders, didn't adequately evaluate the value of the company's assets and failed to conduct "an active and open auction." Univision has not yet responded, but is expected to dispute the claims made by the lawsuits.

Ad Business Report TM

Chevron gains rights to Texaco brand;
campaign following

Chevron announced it is gaining exclusive rights to the Texaco brand for retail locations in the US on 7/1. Following the company's 2001 merger with Texaco, Chevron was required to license the Texaco retail brand to Shell in the United States for the marketing and sale of gasoline through June 30, 2006. Chevron and Shell have shared rights to use the Texaco brand in the United States since July 1, 2004, when Shell's Texaco brand license became nonexclusive. In anticipation of gaining Texaco brand exclusivity, Chevron kicked off a new Texaco global campaign in April 2006 to celebrate the people who know and love their cars, are driven by performance, and trust only one brand of gasoline. The theme of the ads, "People in the Know Trust Texaco," also feature the new tag "Trust Your Car to the Star," and are appearing in television, radio, internet, and outdoor media outlets in 14 markets.

Merrill Lynch trims ad spend outlook
Advertising growth in the US will be slower than expected this year alongside weaker trends in spending on cable television and newspapers, according to Merrill Lynch, the latest to join those cutting their forecasts. Lauren Fine, an analyst with Merrill Lynch, cut her forecast of growth to 5.1% from 5.3%. She set 2007 U.S. growth at 3.5%. Last Wednesday, Bob Coen, SVP/director of forecasting for Universal McCann lowered his estimate as well, seeing spending rising at 5.6%, down 5.8% (06/29/06 RBR #127). In short ad guru Coen's 2006 forecast for radio has fallen off a cliff since his optimistic prediction in December that both national and local would grow 4% this year. His revised numbers are for national (network & spot) to grow 1% and for local to show no growth at all. Radio, cable and newspapers took the biggest hits. - Side note: TNS Media Intelligence also lowered its forecast earlier this month.

RBR observation: Once again scroll back up to the Publisher Perspective as radio is local and technology like time waits for no one.

Media Markets & Money TM
Close encounter in the Rome
If Rome doesn't have enough classical implications for you, how about it we add Athens into the mix? But we're talking Georgia, not Italy or Greece, for those of you scratching your heads. Eddie Esserman of Media Services Group clued us in on the closing of the sale of WKXC-FM to the Foundation for Public Broadcasting in George Inc. The seller, Briar Creek Broadcasting, gets 4.2M. The station will be associated with WGTV-TV in Athens GA, licensed to the Georgia Public Telecommunications Commission, which the Foundation is chartered to assist. Athens is east of Atlanta; Rome is off to the northeast.

Close encounter on the Outer Banks
CapSan Media has the wind in its sails and WYND-FM in its portfolio, along with WFMZ-FM, WVOD-FM and WZPR-FM. According to brokerage firm Kalil & Co., it has officially closed on its 3.5M acquisition of the coastal cluster. For CapSan principals Bill Whitlow and Jason Baker, it represents the sum and total of their radio empire. Seller Convergent Broadcasting still has an FM trio in Corpus Christi TX.

Close encounter in Colorado
Kalil and Co. say that the 45M acquisition of Colorado television and radio stations by the News-Press & Gazette Co. has been completed. The Hoth family sent KRDO-TV and AM, both out of Colorado Springs, and KJCT-TV Grand Junction to multimedia News-Press. On the TV side, KJCT is a satellite of KRDO and both carry the ABC network.

Washington Media Business Report TM
Pirate terminated
Well, it wasn't as permanent as that sounds, but it seems a fitting way to describe shutting down a pirate radio station operating in Arnold Schwarzenegger's back yard. Sacramento CA is the scene of the latest attempt to hijack the public airwaves. William Stephen Major was using 96.5 mHz without a license. The station was operating as KNOZ LP under the auspices of a group calling itself 916 Radio. The first complaint came in 12/21/04. The station was caught broadcasting 1/5/05, and agreed to shut down and apply for an LPFM license. It was subsequently caught broadcasting four more times and finally hit with the obligatory 10K fine 6/29/05. The group claimed that it was justified in broadcasting due to its intention to apply for an LPFM license. It was also justified in broadcasting, it said, because the FCC's "licensing scheme" for LPFM was "egregiously unconstitutional." Finally, 916 Radio claimed it didn't have the cash. The FCC easily batted away the first two arguments and noted that Major, not 916 Radio, was being charged with the fine. It stands.

Looks like Stevens
will need super-majority

All indications are that the Senate will not take up the Ted Stevens (R-AK) Telecom update, just renamed the "Advanced Telecommunications and Opportunity Reform Act," until September, after the summer break. And when they come back, Stevens will have to overcome a hold put on the bill by Ron Wyden (D-OR), meaning Stevens may need 60 votes to move the bill. If you guessed that net neutrality is the hold up, as Don Rickles might have said, you win a cookie. The net neutrality concept, which in order to be added to the bill needed to be passed in Committee by a clean majority, missed by the barest of all possible margins, pulling an 11-11 tie vote. According to Reuters, Stevens has admitted that he does not have the necessary 60 votes to bring the bill to the Senate floor. According the another report, during debate, and before the Wyden hold, Stevens said that if net neutrality is in the bill there won't be 60 votes to pass it. John Kerry (D-MA) said that if it ISN'T in the bill, the 60 votes won't be there.

RBR observation: In other words, there is basic agreement that national franchising should be approved to move telcos into competition with cable and satellite for the provision of MVPD services. But there will likely be a Senate stalemate over the separate but related net neutrality issue. And then, if it ever gets out of the Senate, all bets are again off after members of a conference committee try to square whatever the Senate eventually comes up with what is sure to be a radically different House version. All this with another hot round of elections very much competing for legislators' attention. Should be fun to watch, unless you're one of the ones spending millions on issue ads.

Monday Morning Makers & Shakers

Transactions: 5/15/06-5/19/06
It's very unusual for one company to monopolize the Transaction of the Week citations. It's unusual to even be eligible, requiring that one company be involved in both TV and radio trading. But Emmis managed to pull off the feat, collecting 295M in station trading value all by itself, with a television sale and a radio station sale. There was another 30M-plus traded by other broadcasters.



Total Deals







| Complete Charts |
Radio Transactions of the Week
Emmis will bill Bonneville in Phoenix
| More...
TV Transactions of the Week
Emmis works with Hearst in Orlando
| More...

180M WATL-TV Atlanta GA from WATL LLC, a subsidiary of Tribune Broadcasting Company (Dennis J. FitzSimons) to Gannett Georgia LP, a subsidiary of Gannett Company Inc. (Roger Ogden). Cash. Duopoly with WXIA-TV. WATL-TV is a WB affiliate on Ch. 36 (DTV 25) which will be moving to Fox's MyNetworkTV; WXIA is an NBC affiliate on Ch. 11 (DTV 10). [File date 6/16/06.]

300K KIML-AM/KAML-FM Gillette WY. 100% of Gillette Broadcasting Company from Larry J. Austin to Legend Communications of Wyoming LLC (W. Lawrence Patrick, Susan K. Patrick, David E. Richardson, Douglas Wolf). Cash/debt assumption. Superduopoly with KGWY-FM Gillette and FM CP Wright WY. JSA 4/16/01. [File date 6/12/06.]

N/A KBVC-FM Buena Vista CO from Headwaters Media LLC (Kimberly A. Doleman, Andrew R. Johnson) to Three Eagles Communications of Colorado LLC (Rolland C. Johnson). Like-kind exchange for KVRH-AM Salida CO. Duopoly with KVRH-FM Salida CO. Terminates Three Eagle's JSA with KBVC-FM. [File date 6/12/06.]

N/A KVRH-AM Salida CO from Three Eagles Communications of Colorado LLC (Rolland C. Johnson) to Headwaters Media LLC (Kimberly A. Doleman, Andrew R. Johnson). Like-kind exchange for KBVC-FM Buena Vista CO. Terminates Three Eagle's JSA with KBVC-FM. [File date 6/12/06.]

Stock Talk
Investors come out for half-day trading
An apparent slow-down in a few key areas apparently bolstered hopes that the Fed would finally put the brakes on its pattern of interest rate hikes, leading to healthy gains in most stock prices. And we thought everyone would be home planning barbeques...

Radio Stocks

Here's how stocks fared on Monday

Company Symbol Close Change Company Symbol Close Change













Journal Comm.







Lincoln Natl.







Radio One, Cl. A




Citadel CDL
8.93 +0.03

Radio One, Cl. D




Clear Channel








Cox Radio




Saga Commun.








Salem Comm.








Sirius Sat. Radio








Spanish Bcg.
















Westwood One








XM Sat. Radio













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Below the Fold
Wall Street Media Business Report
Tribune goes Dutch
Stock buyback executed is complete paid 32-half bucks apiece for over...

Shareholders sue Univision
You knew there would be a race to the courthouse...

Ad Business Report
Merrill Lynch trims outlook
On ad spending so join the club or get beaten with it...

Media Markets & Money
Close encounters in
Rome, GA sale of WKXC-FM
Outer Banks - WYND-FM
Colorado sent KRDO-TV and AM ...


Market Results
| Austin |
| Baton Rouge |
| Jacksonville |
| Tulsa |

NBA Minute

Radio Media Moves

Driving sales to the Max
Max Media, whose media is multi (37 radio stations, seven television stations) has a new Senior Marketing Manager. Thurman Worthington will fill position. Said Max Media GM Vonneva Carter, "It is with great pleasure that I welcome Thurman to Max Media. I am elated in having him join our staff. Thurman is an icon in the industry and his impeccable reputation, knowledge and relationships are surpassed by no one in this market." Max is based in Virginia Beach VA.

More News Headlines

After Shock
at Radio One

In a surprise announcement just before the holiday weekend, Radio One said that long-time COO Mary Catherine Sneed had left the company "to pursue other interests." CEO Al Liggins will fill the COO post as well until a successor is named. "Mary Catherine has been a valuable contributor to Radio One over the years and we wish her well in her future endeavors," said Liggins in announcing her departure. Sneed served as COO of Radio One since January 1998 and prior to that was General Manager of Radio One of Atlanta, a once separate company controlled by Liggins which was acquired by Radio One.

RBR observation: A shocker to be sure. Liggins and "MC," as he always called her had worked hand in glove to run Radio One and he often deferred to her on Wall Street conference calls to answer questions dealing with programming, ratings and such. It has, however, been tough to be a top exec at a public radio company the past couple of years and Radio One has faced particular problems with its biggest station, KKBT-FM Los Angeles. It will be interesting to see where Sneed pops up next.

TVBR - TV News

Granite clears immediate hurdle
It looks like Granite Broadcasting has managed to keep afloat, winning a court battle which will allow its 150M sale of TV stations in Detroit and San Francisco to go through, and securing loans necessary to make an interest payment of about 19.9M that was due 6/1/06. The FCC had previously declined to block the sale of the stations to subsidiaries of D.B. Zwirn & Company, including 85M for WMYD-TV Detroit and 65M for KBWB-TV San Francisco. Harbinger Capital Partners Master Fund IO was the complainant in both cases. Granite announced Monday that it had an agreement in principle on the new senior credit facility which will help it meet its immediate obligations. It said that part of the proceeds from the station sales will go to paying for its acquisition of WBNG-TV in upstate New York (serving both Binghamton and Elmira). However, if the Detroit/San Francisco do not close in time, the new loan could be used for that purpose. Granite noted that if it fails to close on the new senior credit facility, Chapter 11 may be its only refuge.

Digital Magazine

Take a look at what's in the June RBR/TVBR Solutions Magazine:
Valerie Geller, President/Geller Media, writes, "Put resources back into News/Talk radio." Cutting it to the bone isn't working. If you want to win in the format, the "next big thing" will be to give news/talk radio back the resources it needs to win.

Jim Farley, VP/News and Programming, handles WTOP, Washington Post Radio and Federal News Radio (Bonneville DC). He talks about coordinating the news flow back and forth from WTOP, WFED and Washington Post Radio; How he finds and cultivates local talent; what he thinks about radio cutting news operations a bit too much across the country; and more.

GM Talk: What do GMs look for in talk programming-are they looking to fill a demo or are they looking for a certain personality? How do they choose one over the others?

These and other hot industry issues addressed in June.

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

RBR Radar 2006
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

FCC Democrats express
misgivings about NPRM
In Asheville NC, Michael Copps and Jonathan Adelstein were talking as if a rerun of the FCC 6/2/03 media ownership rulemaking is a done deal. Clear Channel was there too, in the person of Ken Salyer, VP/MM of the group's local cluster touting the benefits to the community conferred by his company's size. That opinion was countered by frequent Capitol Hill testifier James F. Goodmon, President & CEO of Capitol Broadcasting Company. "Clear Channel didn't buy these stations to do 'Tools for Schools,'" he said. "They did it to make lots of money. It's not about serving the community or local autonomy. They want these stations because they want more money."

RBR observation: Get ready. There will be six more of these according to last week's procedural announcement. By the way, Goodman's reply desire a second read and then digest it and learn from it. Radio is local to survive.
06/30/06 RBR #128

Hispanic consumers spend a
lot of time listening to radio

Heavy users of radio, spending significant time, in particular with Spanish-language radio, according to a new study from Arbitron. The U.S. Hispanic population is growing rapidly and is now the biggest minority in the country. Arbitron's new study - Hispanic Radio Today 2006 - shows that radio reaches over 95% of all Hispanic Americans over the age of 12. While the average Non-Hispanic consumer listens to an average of 19 hours and 15 minutes of radio per week. View the complete study and details and use it in your Sales

Editor's note: Look for the Special report: "The explosion of Hispanic radio formats and TV networks" in the August issue of Radio & Television Business Report.
06/28/06 RBR #126

Hogan trying to put
positive spin on PPM conflict
There's still no word on whether Clear Channel will invite CBS Radio, Emmis, Bonneville and such back to participation in its Next-Generation Electronics Ratings Evaluation Team, but CC Radio CEO John Hogan is trying to explain why his company was in talks to do the same thing they did - sign a contract for Arbitron's Portable People Meter (PPM) before the Next-Gen group completes its evaluation of PPM and a rival system from The Media Audit/Ipsos.

RBR observation: When you read the memo carefully you will have to be the judge and the jury on Hogan's and his boss's intentions. RBR has been receiving email and phone calls from many in the radio medium outraged by Clear Channel's (and in their words) 'arrogant' position. Many see nothing 'Very Gracious' about supporting an industry effort for the good of the entire radio business and just get booted off the team because they made a business transaction on behalf of their company. We are never too old to learn from experience RBR once again points to why Jerry Lee at WBEB-FM Philadelphia signed with PPM: "Either we get with the electronic measurement or we're going to be in the dust - it's as simple as that. Read the memo.
06/27/06 RBR #125

Stop Big Media
Directed to FCC proceeding 02-277: "I am writing to express my strong disapproval of any relaxation or elimination of the public interest limits on media ownership. Localism and diversity are the cornerstones of a democratic media system, and we cannot afford to compromise them in any way....
06/27/06 RBR #125

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