Welcome to RBR's Daily Epaper
Volume 23, Issue 130, Jim Carnegie, Editor & Publisher
Thursday Morning July 6th, 2006

Radio News ®

Should I stay or should I go?
Televisa is prepared to say adios to its stake in Univision, now that the Hispanic media giant is being sold to an investment group which trumped Televisa's own long-time efforts to take over the company. Televisa's Mexican ownership precludes in from holding a majority stake in any broadcast licenses, and its current stake in Univision precludes it from competing with it. Those days may soon be over. If total Televisa ownership of Class T common stock goes below about 13.58M shares, it will be freed from a participation agreement with Univisoin dating back to October 1996. And it that happens, Televisa says it "...will be able to engage in new business opportunities in the growing U.S. Hispanic marketplace relating to its programming or otherwise without offering Univision participation in such opportunities." According to Reuters, Televisa has been trying to break into Hispanic broadcasting in the US for some 25 years. Speculation is that its efforts in the near future will stay away from broadcasting, instead focusing on publishing and internet opportunities.

New CEO puts Fisher
back in buying mode

Before Colleen Brown was named President and CEO of Fisher Communications last fall, the company had been in a divesting mode - selling off non-broadcasting assets and also TV stations that were outside its Northwest regional focus. Now, she told RBR/TVBR in a recent interview, the focus is back on growth. "There was a lot of reorganization the company wanted to go through in order to narrow its focus to broadcasting. Then there was some reorganization to clean up the balance sheet and, yes, I think the focus going forward is regarding growth - and smart growth," she said. We asked why her first big move was to acquire the company's first Spanish TV stations, including a duopoly with its Portland, OR ABC affiliate. "I think duopolies make great sense and I think that is one of the fastest growing - I don't think, I know - is one of the fastest television networks in the country and certainly the [Hispanic] population base is growing in Portland. I think there is a huge opportunity for tapping into an unserved market," Brown explained. And just last week Brown announced another duopoly buy in Seattle, also to be a Univision affiliate. You can read the entire interview with Colleen Brown in the
| May issue of RBR/TVBR Solutions Magazine |

It's sad when plus one is a pleasant surprise
Wachovia's Marcie Ryvicker was surprised that radio was able to muster a 1% gain for the month of May, according to the RAB's latest report. They had been expecting a flat month. Still, a slight drop in national was deemed a disappointment, since its -1% showing mirrored a weak comp from May 2005, when national business was also at -1%. Wachovia is expecting another 1% gain for June, which unfortunately won't be enough to drag Q2 into the black following a -4% April. Although Wachovia agrees with the stated opinion of many (oft heard during quarterly conference calls) that Q2 will represent the deepest depression in the 2006 valley, it is not particularly impressed by the fact. Political business and the big 2005 revenue hole imposed by Katrina make 2006 comps particularly easy, and Ryvicker said, "...we don't expect core growth to improve much..." Wachovia is expecting no more than a 1% gain for 2006 as a whole.

Bozell using advertisers
to get at programmers

Parents Television Council President L. Brent Bozell III has taken issue with the content of Fox cable channel FX's series "Rescue Me." He isn't calling for an FCC protest, since cable channels are not bound by the same rules, but he is attacking the program's advertisers and using the incident as a springboard to urge Congress to move on a la carte channel menus. The FX series stars Dennis Leary, who is already on decency hit lists for last year's "Merry F---ing Christmas." The current flap is over a scene depicting spousal rape. Bozell doesn't just go after Fox and FX, however. In ad editorial published at Yahoo.com, he goes after the advertisers who make the program possible, particularly singling out Wendy's and mentioning Visa, Toyota and Staples in passing. A posting on the PTC website does focus on Fox and FX. It asks PTC members to contact their local representatives in Congress and demand action on a la carte cable menus. "It is an absolute outrage that families who find this raunchy programming so disgusting are being forced to subsidize it with their cable subscription," said Bozell.

RBR observation: Bozell is smart to not even waste his time with the FCC, which does not have the same regulatory muscle to flex with cable as it does with broadcast. He is also smart to focus his attack on advertisers. If Bozell can convince enough PTC members to buy their next burger elsewhere, Wendy's may get the hint and withdraw support from the program. And if that happens, the program will go away. This is the best way to go after any programming on any advertiser supported medium. Everyone knows when they've been hit in the wallet...

TV takes the downslope of the Street
If you thought radio stocks were having a rough year, perhaps you can take solace in the old saw that misery loves company. Just look over the hedge at your friends on the TV side (some of you, of course, need look no further than your own portfolio). TV stocks continued to be in the Wall Street dog house in Q2 as they were in Q1. A couple of the big names moved up. With new CEO Bob Iger being applauded so far by investors, Disney increased its Q1 gain of 16.35% to a year-to-date gain of 25.16 at the halfway mark. News Corporation made an even bigger move, advancing to a 21.49% gain YTD from only 5.72% in Q1. But the big winner for 2006 is ACME, which pulled itself out of penny stock territory and improved its Q1 gain of 16.62% to 43.10% as it lined up new CW affiliations (and one MyNetworkTV) for its portfolio of stations. Two of the pure play TV stocks have been really beaten up this year. LIN is down 32.23%, despite analysts' praise for its recent move to de-lever by selling its Puerto Rico operations. Gray Television's common stock has fallen 41.04% even after spinning off its newspaper assets - and its Class A stock isn't far behind. So, once again our chart shows mostly poor performance on Wall Street by the TV stocks.
| View the Chart |

Executive Comment
RBR publisher Jim Carnegie looked at the state of the business yesterday. Here's another take from a respected industry leader.

RE: Radio not dead, but needs to change - (062906 RBR #127). The radio industry owes a huge debt of gratitude to Vic Miller and Ralph Guild for hosting the 2006 Bear Stearns/Interep Radio Symposium. The clear intent was to provide a platform for industry leaders to present investors with a solid case for their continued involvement. Vic Miller's theme-defining question for the Symposium: "Does Wall Street See a Future in Radio?".
| Read More... |

Paul W. Robinson
Emerald City Radio Partners

Publisher observation: If you read nothing else today click on this full report as Robinson's words are worth the read. The balance of your future and radio's future is in each persons hands individually. I say again it is time to stop playing follow the supposed leader. The guidance radio needs was stated by CBS Radio CFO Walter Berger. He was resolute in outlining a sound four-point, long-term strategy for accelerating annual revenue increases. Read it.

Ad Business Report TM

Summer automaker incentives abound
Detroit is turning up the heat with another round of incentives to drive sales this summer. These incentives are great opportunity for radio, since it is retail-based and both the dealers and the dealer associations would be back on for activity. This may even lead to an opportunity for radio to receive tier-one money, says The RAB. Chrysler Group gave consumers a chance to celebrate the Fourth of July a little longer by extending its hours throughout the holiday weekend until midnight at Chrysler, Jeep, and Dodge dealerships nationwide. The Detroit News reported automakers asked its dealers to extend hours over the holiday weekend to help launch the new incentive drive for the summer which includes a 30-day guarantee, a revival of employee pricing for all customers and free financing, the paper said. Chrysler already offers 0% financing for five years on many models. GM already held a 72-hour sale, which began 6/29 and ended yesterday. The program offers free financing for six years for 2006 models (except for the Chevrolet Corvette, Pontiac Solstice and G6 convertible, Hummer H1 and medium-duty pickup trucks). Free financing is also available for 60 months on 2006 Cadillac, Saab, and Hummer H2 and H3 vehicles, and for 36 months on select 2007 SUVs and the Chevy Avalanche pickup. Ford is continuing its "Drive on Us" clearance for 2006 models, which began in July and will continue at least through the end of the month. In June last year, GM's U.S. sales soared nearly 50% after the automaker launched its Employee Discount for Everyone program. Comps this year will still be a bear, even after the new incentives, said GM exec Mark LaNeve.

We asked Bill Burton, President/Detroit Radio Advertising Group, for his advice on local radio approaching local dealers for a piece of the campaign: "As long as there is a radio in the middle every dash board, it's opportunity time for radio get in and make calls on every dealer that's out there with an incentive plan. It's an ideal time. Sometimes we're selling a frequency medium too infrequently. Much of the dollars still end up in TV, but the local dealer dollars are there and that's still often the biggest category for radio."

Media Markets & Money TM
Close encounter in Lexington
Jack Mortenson's signature radio station, WJMM-FM Lexington KY, is his no longer. According to broker John Pierce, its sale to Jon Yinger's Christian Broadcasting Systems, along with WCGW-AM and WWFT-AM, is complete. The transaction is valued at 4.5M.

Close encounter in Little Rock
Jamie Rasnick of John Pierce & Company tells us that fast-growing Davidson Media has expanded its presence in Arkansas with the 600K acquisition of KITA-AM Little Rock. The seller was Dean Rusk's KITA Inc. The station joins KAKS-FM in the Ft. Smith/Fayetteville in the Davidson portfolio.

Washington Media Business Report TM
Republican congressman
attacked from the right

The Club for Growth has been going after Joe Schwarz (R-MI), representing Battle Creek. It accuses him, despite his good standing in the Republican party, of being liberal, of supporting unnecessary government spending (like the funding of CPB), of supporting some tax increases, and other acts that it deems to be transgressions. It's been using television to get the word out. The Michigan Chamber of Commerce is using radio to come to his defense, using no less than 26 area radio stations. "Those out-of-state groups have tried to dominate the debate, not on issues, but on labels," explained the Chamber's Jim Barrett. "Their bias is getting in the way of the facts. Don't take seriously their claim that Joe Schwarz is some sort of flaming liberal."

RBR observation: Two points of interest. First, political advertising breeds more political advertising. Money flowing into Michigan from Washington, just one street over from the infamous K Street corridor (Club for Growth is on L Street), caused a reaction which brought local money to the table which otherwise may well have been spent on something else. Second, while television is a great place to make your point, radio is an excellent choice for launching a swift, well-targeted and cost-effective counter-punch. Smart political campaigns will make money in their budgets for both.

Entertainment Media Business Report TM
Red Zebra to launch this month
Red Zebra Broadcasting chief Bennett Zier has confirmed with The Washington Times the radio network will be up and running by the end of the month. "We'll be ready by training camp," Zier told the paper, which means Redskins Radio should be on the air before formal workouts are slated to begin 7/29. Red Zebra also is expected to confirm soon it has acquired the rights to ESPN programming and signed Redskins Hall of Fame running back John Riggins and former WTEM-AM DC team reporter Bram Weinstein as part of its on-air lineup, the Times said. Red Zebra bought local rim-shot Spanish-language FMs WBPS-FM and WBZS-FM; WKDL-AM and WXGI-AM in Richmond to air 'skins games, which had been carried on CBS Radio's WJFK-FM DC since 1995.

Internet Media Business Report TM
Mapquest Mobile, TWC are tops in revenue generation
MapQuest Mobile was the top revenue-generating downloadable mobile application, according to Telephia. The Telephia Mobile Applications Report for Q1 2006 shows that, MapQuest Mobile secured 21.9% of the total share of revenue for mobile applications; excluding mobile games and mobile TV. The Weather Channel came in second, with 5.7% of the total revenue share, while Verizon Superpages 2.0 came in third posting a 5.3% share. Two music applications, Music Choice and Sirius Music, rounded out the top five with revenue shares of five and 4.8%, respectively. 61% of downloadable mobile application revenues come from repeat purchases, while 39% represent revenue share from new/first-time purchases. According to Telephia, 39.5% of recurring revenue from repeat purchases was driven by Maps/Directions applications, with MapQuest Mobile and Verizon Superpages 2.0 claiming the highest repeat purchase revenues for the category. Nearly 30% of first-time purchase revenues were driven by the Entertainment category, with streaming music mobile applications, Music Choice and Sirius Music, securing the highest new purchase revenue share at nearly 9% and 8%, respectively.


Ion and Sony Pictures Television
strike content deal

Ion Media Networks (formerly Paxson) and Sony Pictures Television announced a programming agreement that provides Ion with the rights to broadcast dozens of classic television series and a large selection of award-winning feature films from the Sony library on the i television network, reaching over 90 million homes. Ion will have access to many of SPT's most popular TV series from the last three decades, including "Charlie's Angels," "Starsky & Hutch," "The Partridge Family," "The Monkees" and "Silver Spoons," among others. In addition, titles from Sony's library of theatrical films will be available to Ion, including "A River Runs Through It," "Oliver!," "Bram Stoker's Dracula," "Short Circuit" and more.

RBR observation: Wonder why we ran this TV news story? OK it is called cross platform marketing. What do the mentioned programs like "Charlie's Angels," "Starsky & Hutch," "The Partridge Family," "The Monkees" all have in common? They all attract a money demo of boomers. Any local Oldies format personality station should be locking into this with promotion and even putting together a TV / Radio station weekend program with your on-air talent. Plus the oldies format plays their music. There is a tremendous up sale in promotion and ad revenue. Work together as RBR is sure any Ion (formerly Paxson) manager would like to talk ideas with you.

900K KVJM-FM Bryan-College Station TX (Hearne TX) from Equal Access Media Inc. (Pluria Marshall Jr.) to Clear Channel Broadcasting Licenses Inc., a subsidiary of Clear Channel Communications Inc. (Mark P. Mays). Cash. Superduopoly with KAGG-FM, KKYS-FM, KNFX-FM. LMA 5/31/06. [File date 6/13/06.]

775K WMPL-AM/WKMJ-FM Hancock MI from Victor Broadcasting Corporation (Matthew J. Vertin) to Bay Broadcasting Inc. (Jerry J. Hackman, John J. Nix). 10K escrow, 215K cash at closing, 550K note. [File date 6/13/06.]

Stock Talk
Losers take winners
Test launches by North Korea hit The Dow and Nasdaq and oil rallied to a new record. Radio stocks were affected as well. Among the few that were up included Salem, up 1.25 and Regent, up 0.47.

Radio Stocks

Here's how stocks fared on Wednesday

Company Symbol Close Change Company Symbol Close Change













Journal Comm.







Lincoln Natl.







Radio One, Cl. A




Citadel CDL
8.94 +0.01

Radio One, Cl. D




Clear Channel








Cox Radio




Saga Commun.








Salem Comm.








Sirius Sat. Radio








Spanish Bcg.
















Westwood One








XM Sat. Radio













We encourage you to forward today's RBR onto a colleague or friend

Send Us Your OpinionsWe want to
hear from you.

This is your column, so send your comments and
a photo to [email protected]

Below the Fold
Executive Comment
Radio not dead,
But needs to change...

Ad Business Report
Summer automaker incentives
Detroit is turning up the heat...

Washington Media Business Report
Republican congressman
Attacked from the right...

Entertainment Media
Business Report
Red Zebra to launch this month
We'll be ready by training camp...


Market Results
| Albany |
| Greenville |
| Memphis |
| Raleigh |

NBA Minute

Radio Media Moves

IPG Media's Consumer Experience practice group adds two
Interpublic Media announced it has appointed two media professionals to its Consumer Experience Practice. Alex Chisholm has joined the company as VP/director, content experience analytics and Mahesh Krishna as VP/director, brand experience analytics. Based in NYC, they will report to Stacey Lynn Koerner, president of The Consumer Experience Practice at Interpublic Media. The Consumer Experience Practice complements the strategic services of Interpublic's media agencies with new research models and communications planning solutions for its clients.

Stations for Sale

Seller Financing of
2 New C-3 FMs

Serving the beautiful resort area of Mountain Home, AR.
Turnkey package.
Lease to Own to a qualified buyer.
Complete information at www.mountainhomeradio.com

More News Headlines

Limbaugh won't
face charges over
Viagra scrip

The Palm Beach County, FL State Attorney's Office announced it will not file charges against Rush for possessing prescription Viagra in someone else's name. However, Miami-Dade prosecutors will review the matter and decide whether charges are warranted against the two Miami doctors involved, according to Assistant State Attorney Paul Zacks. To protect Limbaugh's privacy, his medical doctor prescribed the drug to Limbaugh's psychologist, according to the affidavit.

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.

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. 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. 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. More see
07/05/06 RBR #129

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, things only got worse in Q2. Halfway through the year, only 11 radio stocks are ahead of where they ended 2005. 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. Print the Chart and keep pace, view here
07/05/06 RBR #129

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."
06/30/06 RBR #128

Visit MediaHeadHunters.com

TVBR Sales Rep
Working for B&C, MediaWeek, TVWeek, or any other TV/Cable Trade publication that is still stuck in the Print environment and you see NO GROWTH? Then TVBR needs YOU - just one (1) person that has the closing contacts in the Television & Cable business to bring in the Ad dollars to TVBR and our Monthly Solutions Magazine. NO Relocation necessary. Contact me in Confidence. EOE
See TV Careers

Hard finding that key person
to fill the important position at your organization? TVBR's - Media HeadHunters is the place that key media firms use to get results. See www.mediaheadhunters.com and get results with service--Period.

Find Your Radio Career

Post Your Companies Job Openings

Other Links

State Associations

Contact Us

Publisher question:
Reading RBR from a friend?
Receive your own morning copy at

Help Desk

Having problems with our epapers?
Please send Questions/Concerns to:
[email protected]

If you wish to remove your name completely from our database use this link __UNSUB__

RBR Epaper -- 108 annual
or just 9 a month

©2006 Radio Business Report, Inc. All rights reserved.
Radio Business Report -- 2050 Old Bridge Road, Suite B-01, Lake Ridge, VA 22192 -- Phone: 703-492-8191