Radio News ®

NAB responds to election coverage criticism
The NAB has answered a pair of important Washington chairmen, responding to criticism of the level of political coverage provided by US broadcasters. President/CEO Eddie Fritts said that, contrary to perceptions, the industry is doing a good job of covering elections. Fritts used the opportunity to note that the FCC in particular could take a regulatory step which would greatly enhance broadcasters' ability to provide coverage - - requiring cable systems to carry DTV multicasting. Fritts noted that "...a number of broadcast companies have filed comments with the FCC pledging to use this spectrum to increase news and public affairs coverage."

Editor's note: You GO ! Eddie. Show them you still got that fire. "...unfortunately, the giant cable companies - - who are anxious to avoid competition from a multiplicity of free local broadcast channels - -have lobbied fiercely to block adoption of this FCC rule that would ensure consumer access to hundreds of more program options." We add - our household still has the same TV sets purchased in 1995. Capitol Hill honchos, how many digital sets in your homes - wake up! | More... |

Birdwatchers analyze
Emmis' chirping canary
If Emmis Communications, which reports quarterly earnings about a month ahead of everyone else, is the canary in the broadcasting coal mine, Wall Street analysts are trying to discern what Jeff Smulyan's report last week says about the health of other radio and TV groups. They're only slightly more optimistic, from our reading of their comments.

RBR observation: Analyst's are like a double edge sword. Comments from Jim Boyle of Wachovia Securities, Jason Helfstein of CIBC World Markets, James Marsh at S.G. Cowen & Co. and Richard Rosenstein of Goldman Sachs draw that sword half out when it should be left in its scabbard. Think some CEO's heard the Florida winds calling them to Naples but not ready to back up the moving trailer. What would be interesting to see - any analyst run the NYC, Chicago, and LA clusters for Smulyan - lets say first quarter 2005. Any takers? | More... |

Radio armageddon: VIA v. CCU
Womble Carlyle Sandridge & Rice attorney Gregg Skall is practically licking his chops over the best clash of titans since King Kong faced off against Godzilla. The issue is the cancellation of the Viacom's Howard Stern show by six Clear Channel stations. Here is Mr. Skall's take on this impending legal bloodbath:

The Broadcasting "Trojan War"
By Gregg Skall, Womble Carlyle Sandridge & Rice, PLLC
Anyone who saw the recent war epic Troy, can't help but feel the same tinge of excitement in learning that two major armies are again locked on the battlefield and promise a spectacular display of warrior tactics. In this case, the warriors are none other than the two goliaths of the broadcasting industry. As reported in 07/01/04 RBR #128, Clear Channel Communications and Infinity Broadcasting have locked horns, and wills, over Clear Channel's cancellation of the Howard Stern Show. | More... |

Editor's note: What this case may boil down to is not communications law, but plain old contract law.

Citadel is Howard Stern's second home
With the addition of nine new affiliates later this month(7/1/04 RBR Daily Epaper #128), "The Howard Stern Show" will be airing on 27 stations owned by Viacom's Infinity Broadcasting. With the addition of KIKK-AM Houston, that lineup also includes all of the top 10 markets, all via Infinity O&Os. So who else carries The King of All Media? Stern's other 18 markets are spread over a number of station owners, with only two companies airing him in more than one market - - Citadel in five markets and LM Communications in two. The largest market non-Infinity affiliate is Entercom's KISW-FM Seattle. | Chart |

Tele-Graham out of bounds
A candidate for the US House of Representatives once appeared at an event with evangelist Franklin Graham, son of US religious icon Billy Graham. He used images of this event in a campaign ad, as well as in direct mail pieces. According to the Associated Press, Graham cried foul. The candidate is Ed Broyhill, one of several Republican vying for their party's nomination to run for the seat of Richard Burr, who is vacating it in an attempt to move on to the Senate. Graham indicated that he was neutral in the race, and objected to the implication that he was supporting Broyhill. He also charged the campaign with continuing to use his image even after he had issued a press release underlining his neutral status. The Broyhill campaign denied that they were being deceptive, but eventually decided to pull the ads.

Don't take FCC localism inquiry lightly
Attorney John Garziglia of Womble Carlyle Sandridge & Rice is warning his clients that the FCC's notice of inquiry into broadcast localism could have a profound effect on the way the industry does business. He noted its broad scope (for details, see (7/2/04 "Commission taking comments on localism", RBR Daily Epaper #129). "This proceeding may significantly restructure broadcasters' programming obligations," he wrote. "The Commission and the public may attempt to hold broadcasters to those public interest obligations that for year broadcasters have argued make them special and entitle them to a variety of protections from competition." Garziglia told clients that his law firm will be ready to assist them to file comments. Deadline for that is 9/1/04. Meanwhile, he noted that the due date for regulatory fees is a bit earlieir than usual this year. The payment window extends from 8/10-8/19. Notification of your amount due should be arriving in the mail within a couple of weeks.

More words of wisdom from Bob Coen
When he released his semi-annual forecast of ad revenues earlier this month (6/24/04 RBR Daily Epaper #122), Universal McCann's Bob Coen bucked the trend of Wall Street analysts and said he was confident that local radio growth will hit his target of 6% growth this year, despite a slow start. He also increased his forecast for local TV, which he now expects to grow by 8% this year, rather than his original forecast number of 7%. One reason for Coen's confidence is what big advertisers have already done. While companies in the biggest advertising categories, such as Automotive, Movies and Beverages, cut back in the 2001 recession - - along with everyone else - - Coen says their ad spending has come back "stronger and sooner" than other categories. After all, those really big categories tend to have more advertising related to brand building. Those big brand-oriented advertisers were the first to come back. Coen noted that by the first quarter of 2003 they were spending 10% more on advertising than a year earlier. "Their level of increase this year, 9%, is certainly respectable when considered in the light that their return to aggressive use of advertising got started much earlier than most marketers. Now they have continued to grow their ad budgets and these most important marketers are expected to sustain a high level of ad growth throughout this year," he said.

Stern wants Kerry?
Better watch what you wish for!
It is now a widely known fact that Howard Stern is trying to throw his weight behind Democratic Presidential candidate John Kerry, largely because he feels he is the object of a witch hunt orchestrated by President George W. Bush and his FCC, headed by Michael Powell. However, another widely held belief is that should Kerry win the prize in November, the FCC will likely come under the chairmanship of its current senior Democrat, Michael Copps. This is despite the fact that neither Kerry nor Copps has commented, nor is likely to comment, on that topic. It remains a widely held speculative belief. | More... |

Adbiz ©

Latest video competitor: T-shirts
With flat-screen technology becoming ever cheaper and smaller, TV screens are showing up everywhere. The Los Angeles Times reports that Brand Marketers, a San Francisco based firm that specializes in innovative promotions, unveiled its "Adver-Wear" product over the holiday weekend in LA and other major cities to promote the movie "I, Robot." Male and female models walked around high foot-traffic areas wearing T-shirts with 11-inch video screens mounted chest-high, running a trailer for the film. Each shirt costs about $1,000 to make, so don't go looking for them on the rack at Wal-Mart. To take a look at the concept, go to the firm's website.

Cash infusion expected in CA stem cell struggle
California has another of its infamous voter initiatives on the ballot this year, and this one will go right to the top of the controversy chart. It's called the California Stem Cell Research and Cures Initiative. It is asking voters whether the state should go ahead and make a multi-billion dollar investment in such research in defiance of the policies of President George W. Bush. According to Adweek, there are big bucks in the balance. Taxpayers would put $295M a year into the research for ten years, and accumulate $6B in state bond debt. Broadcasters stand to pick up $20M between now and November from the backers alone as they mount a campaign pushing the initiative - - and we would suspect a hefty counter-campaign from opponents of the measure.

Media, Markets & Money tm

Washington Beat

Monday Morning Shakers & Makers

Deals: 5/24/04-5/28/04
Dealing was still slow as we approached the end of May, but the value of the deals was back into robust territory. This was due in large part due to a healthy emphasis on top 50 markets - - six of 11 stations traded were in that heady zone. There were three TV deals, but the biggest of them came in third behind Radio One buys in Houston and Atlanta.

Transactions

$12M KLST-TV San Angelo TX from Jewell Television Corp. (T.E. Kimbell) to NexStar Broadcasting Inc. (Perry Sook). $1.75 down payment, balance in cash at closing. Includes non-compete. Buyer operating KSAN-TV under LMA with Mission Broadcasting Inc. LMA until closing. KLST is CBS affiliate; KSAN is NBC affiliate. [File date 6/7/04.]

$2.61M WSHI-FM Fort Wayne IN (Columbia City IN) from Jammin' Broadcasting LLC (Steve Isenberg) to Artistic Media Partners Inc. (Arthur A. Angotti et al). $1.827M cash, $783K stock. Duopoly with WBTU-FM. LMA until closing. [File date 6/7/04.]

$1.9M KLBM-AM/KUBQ-FM & KBKR-AM/KKBC-FM La Grande OR (La Grande, Baker City OR) from Grande Radio Inc. (Bryan Christle) to Pacific Empire Radio Corp. (Mark Bolland, Mary Bolland, John I. Taylor, Connie Taylor et al). $95K escrow, balance in cash at closing. Includes non-compete. Existing duopoly. [File date 6/7/04.]

Stock Talk

Radio Stocks