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Volume 22, Issue 134, Jim Carnegie, Editor & Publisher

Monday Morning July 11th, 2005

Radio News®

The Local Radio win: Now other states engage
to auto disclaimers removed from ads
Last Friday RBR was First to report on the Missouri House Bill #487, the first state allowing broadcasters to use an #800 number or Internet site to provide the required disclosure information for automotive advertising. Missouri Broadcasters Association President/CEO Don Hicks, tells us all more about how other state broadcasters/associations could get this legislation done in their states from a grass-roots perspective: | More... |

RBR observation: First this is a local victory not a national one since leaders at the association level of NAB, RAB, 4A's, TVB etc. have not been able to move anything inside the DC beltway and they probably won't just because there is too much on the plate of anyone to get anything completed. Plus, in all honesty this is a much better victory for local broadcasters and especially radio. Now the key will be to have other grass root state movements spin from Missouri and now take the mega bucks from your local newspaper. Just look at any Sunday auto section of any newspapers and count the opportunities. (More from where the money is, the agency buyers, scroll down to AdBiz.)

Peace reigns once more
over the Magic Kingdom
Over the weekend, the swords were put back in their scabbards at Walt Disney Co. Roy E. Disney and Stanley P. Gold "have agreed to put aside the differences that have characterized their relationship over the past several years." Pending lawsuits will disappear, as will rival slates of candidates for the board of directors for at least the next five years. The big winner will be Robert Iger, who will take over as chief executive of the company next year with the "expressed confidence" of now former-dissidents Disney and Gold. The duo had been working to oust current chief Michael Eisner. When Eisner announced his exit effective next year, they turned their swords on Iger. Roy E. Disney also picked up the title Director Emeritus and has been named a consultant to the company. Disney and Gold also acknowledged the contributions of Eisner as he prepares to step down.

RBR observation: Now that the boys in the family have agreed to play nice with one another, the company can focus 100% of its energy on getting back on solid footing. The New York Times noted that Iger was already in the process of trying to mend a rift between Disney and Pixar Animation that was caused by testy relations between Eisner and Pixar's Steve Jobs. And maybe they'll finally get around to changing the status of the talked-about sale of the radio station group to something other than rumor. Iger now calls the shots and it is his media game to win or lose. But what ever it is just start doing something.

Next round of biennial review on tap
The review of media ownership rules which officially began in the fall of 2002, was revealed to the public 6/2/03, and was subsequently punted back to the FCC by the Third Circuit (with SCOTUS pointedly remaining on the sidelines) is back on the FCC agenda next week. It is expected to be the start of yet another months-long phase in the process. Commissioner Kathleen Abernathy told reports earlier that the item, officially a Further Notice of Proposed Rulemaking, will be a straight-forward, uncontroversial statement of the issues remanded to the FCC for reconsideration. As with any rulemaking, it will be a call for commentary and evidence from any and all concerned parties. Also on the docket is an item called "Closed Captioning of Video Programming and Telecommunications for the Deaf Inc." - - with TftDI being the name of a watchdog looking for "quality standards and compliance mechanisms for closed captioning.

RBR observation: Anybody who has been following this over the past two-and-a-half years knows that the Commission, given the current residence on the all important 8th Floor at the Portals in Southwest Washington, would be incapable of doing anything on this topic. Two generally dereg Republicans would simply produce a tie vote with two generally rereg Democrats. Chairman Kevin Martin will no doubt be sounding the bugle for reinforcements while the comments pour in and the email tonnage is tabulated. The question is whether an already distracted White House will here the call, especially with the further distraction of a SCOTUS battle on the front burner.

Reality conditions spur WGA lawsuit
The western chapter of the Writers Guild of America (WGAw) has filed a class action suit on behalf of a dozen reality TV writers in the Superior Court of California, charging four production companies and four networks with "gross violations of California's labor laws governing payment of overtime, wages and meal periods." According to WGAw, writers or story editors are required to put in anywhere from 10-20 hours a day, six or seven days a week, often without breaks even for meals. The class action status is designed to benefit all such writers. The 12 involved in the immediate action allege that they "...were required to falsify their timecards. California law requires time-and-a-half payment for any time over 40 hours weekly, and double-time for anything over 80 hours weekly. The work often cobbling together an episode from hours and hours worth of raw footage. The shows which the writers worked on include "The Bachelor," "The Bachelorette," "Are You Hot?," "The Two Timer," "The Will," "The Starlet" and "The Real Gilligan's Island." Producers named in the lawsuit are Next Entertainment, Telepictures Productions, Syndicated Productions and Dawn Syndicated Productions. The networks include ABC, CBS, WB and TBS.

Shield: Time explains, others unconvinced
"An organization that prides itself on pointing its finger at people shouldn't be breaking the law itself." Those are the words of Time editor-in-chief Norman Pearlstine as published in his own magazine in a Bill Saporito story. That, in a nutshell, was his reasoning in arriving at "...the most difficult [decision] I have made in more than 36 years in the news business." Basically, Pearlstine decided that he had to respect the law regardless of his personal opinion of that law. Time noted the efforts on Capitol Hill to put a federal shield law in place, and Saporito took a stab at explaining why such efforts are starting out with a healthy dose of bipartisanship. He concluded his article saying, "It's not that legislators love the media. But when it comes to advancing their politics, legislators can be world-class leakers and could have as much to lose as journalists." If special prosecutor Patrick Fitzgerald and the judges who allowed him to press contempt charges have any supporters, they aren't making very much noise. Here are comments from some who are, including the ABC News, RTNDA, NAA, and RCFP.
| Read the comments |

Adbiz©

More agency reaction to MO
removing auto ad disclosures
The Missouri auto bill - (House Bill #487) allows broadcasters to use an #800 number or Internet site to provide the required disclosure information for automotive advertising (see Radio News) We asked buyers,

Q: "What in your opinion would this mean for radio if it were moved to all 50 states regarding all ad disclosures?"

A: Natalie Swed Stone, US Director, National Radio Investment, OMD:
"The time has come for this type of measure. Via the internet, we now have a means of providing the information consumers need without having to overburden the companies involved as may have been the case without internet when mass dissemination of this info was not easy available via other means. Since the internet is pretty much available to everyone, even more information can be disclosed-who's to say that even 60 seconds is enough to disclose of the necessary info? This actually benefits the consumer who can get more intelligent and detailed information via the web (as many do anyway). Consumers widely look to the web now for information on automotive as well as medicine -and should continue to do so as educated consumers. Obviously, a measure such as this would benefit both clients and agencies in creativity and strategy."

A: Kim Vasey, Senior Partner/Director of Radio, mediaedge:cia:
"I was delighted to hear the news and I hope that other states will follow suit. I believe it is also a good move in the interest of the consumer, as well. Now the consumer can see all of the complete detail in black and white (at a website) or hear it more distinctly and clearly on an audio message that will enable them to understand all the parameters of a price offering or leasing option. This opens the door to additional messaging capabilities for the car lines and enables them to take advantage of shorter messaging units."

TNT, Dodge strike PI deal
Dodge has become the exclusive auto sponsor of TNT's new crime show "Wanted." The 2006 Dodge Charger and the Dodge Dakota will be worked into the thriller's storyline, which premieres 7/31 at 10 p.m. The Charger will appear in at least six 'sodes. The Dakota, driven by central character Lt. Conrad Rose, will get heavy exposure throughout the show. The Dodge models will also get co-branding on-air, online, print via Entertainment Weekly and USA Today, outdoor and on the Wanted website. In addition to Dodge, another presenting sponsor tied to the show Bud Light, which will get on-air tune-ins, online and print.

Radio & Television Business Report

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Media Markets & MoneyTM

Radio pros link up for multimarket deal out west
Victor A. Michael has stations and CPs for stations scattered throughout the western part of the US. Steven Silberberg's Northeast Broadcasting Company has also been operating related companies out west, mostly in Wyoming. Michael has filed to sell two FMs, an AM and two FM CPs, strewn across three markets and four states, to NEBCO. Cash will be the medium of exchange for most, but not all, of the total of 2.965M earmarked to change hands. Here's the breakdown. On the South Dakota/Wyoming border, NEBCO, as Bad Lands Broadcasting Company Inc., is getting KRKI-FM Newcastle WY for 800K cash and KFMH-FM Belle Fourche SD for 915K, 800K of which will be paid pursuant to terms of a promissory note (the only non-cash portion of the dealings). NEBCO also will hold a 350K option to acquire the KFMH tower site. Michael will apply for FCC permission to move the KRKI tower and to secure studio space in Rapid City SD. In Colorado, as White Park Broadcasting Inc., NEBCO is picking up KJMP-AM, which serves the Fort Collins-Greeley market out of Pierce CO. That one's going for 350K. Finally, as Jackson Radio Group, NEBCO will get two Victor ID FM CPs - - one for Class C2 KMQS-FM (it's applying for Class C3 status at a different site) and the other for Class C3 KKTN-FM. The duo, east of Idaho Falls and west of Jackson WY, are going for 900K cash. The seller will dig up studio space in Jackson.

Washington Beat

Senate's DTV panelists named
The Senate Commerce Committee is hosting a two-part hearing on the DTV transition tomorrow, with sessions scheduled for 10:00AM and 2:30PM eastern. We now know who is going to be testifying before the committee. The morning session is geared toward the distributors of video - - broadcasting, cable and DBS. Appearing will be Edward O. Fritts, President & CEO, National Association of Broadcasters; Manuel Abud, Vice President & General Manager, KVEA-TV in Los Angeles (Telemundo); Kyle McSlarrow, President & CEO, National Cable & Telecommunications Association; Patrick Knorr, Vice Chairman, American Cable Association; Richard Slenker, Executive Vice President, DirecTV; and John M. Lawson, President & CEO, Association of Public Television Stations. The afternoon includes representatives from the first responder, manufacturing and public interest communities. The lineup includes Harlin R. McEwen, International Association of Chiefs of Police, Communications & Technology Committee Chairman; Charles Townsend, President & CEO, Aloha Partners; Mike Kennedy, Senior Vice President, Motorola; Gary Shapiro, President & CEO, Consumer Electronics Association; Gene Kimmelman, Senior Director Public Policy, Consumers Union; and Michael Calabrese, Vice President & Director, Wireless Future Program, New American Foundation.

Taking the non- out of non-commercial
WQQZ-FM has admitted it went over the line some 288 times in 2004 with some of its underwriting announcements. Apparently the announcements veered into the territory commonly regarded as commercial speech, which in this case was a 10K no-no for noncom licensee Hispanic Broadcast System Inc. HBS nevertheless asked for cancellation or reduction on three counts: (1) It fixed the problem; (2) it's poor; and (3) it has an overall record of compliance. The FCC loves shooting down plea #1, writing "The Commission has long held that corrective action taken to come into compliance with Commission rules or policy is expected, and does not nullify or mitigate any prior forfeitures or violations." On the second plea, apparently financial data provided by HBS showed losses in 2000 and 2001, but not thereafter. Plea #2 therefore shot down. The FCC did agree that HBS had a good track record, good enough to warrant a 2K discount, bringing the final assessment to 8K.

Programming

Jack attack gets organized
SparkNet Communications LP is a joint venture between Bohn & Associates Media and Wall Media, and it is claiming ownership of the brand new Jack-FM(TM) radio format which is springing up all over. SparkNet says the format was born in Vancouver BC back in December 2002 on a Rogers Broadcasting station. It notes adoption of the format by several prominent US radio groups, including Infinity, Susquehanna, Simmons, Midwest Television and Backyard Broadcasting, and claims several major markets, including Baltimore, Buffalo, Chicago, Dallas, Denver, Indianapolis, Jackson, Kansas City, Las Vegas, Los Angeles, Minneapolis, Nashville, New York, Salt Lake City, San Diego and Seattle. "SparkNet Communications will manage, control and fully integrate all aspects and future initiatives of Jack-FM(TM), including licensing and consulting services," the company said in a release. Info at youdontknowjack.info.

RBR observation: Just thought you might want to know about this before you start up an unlicensed Jack of your own.

Jack to land in Cleveland next?
RBR sources hear Infinity is soon to flip one of their FMs in Cleveland to Jack. That would be WQAL-FM (Hot AC), WNCX-FM (Classic Rock), WDOK-FM (Soft AC) or WXTM-FM (Alternative). We would estimate WQAL or WDOK. Infinity declined to comment.

Monday Morning Makers & Shakers

Transactions: 5/30/05-6/3/05
And then, once again, it was naptime. Almost all the cash which changed hands this week went to the good folks at Minnesota Public Radio. The run of filed television transactions, which had reached four weeks, was broken.

5/30/05-6/3/05	Total
Total Deals	5
AMs	3
FMs	3
TVs	0
Value	5.57M

| Complete Charts |

Radio Transactions of the Week
Noncom and get it
| More... |

TV Transactions of the Week
Uhhhhh, no

Transactions

12M WTXL-TV Tallahassee FL from Media Venture Management Inc. (Joanne N. Giddens, Paul C. Stone, Brian E. Cobb, Denise Cobb) to Southern Broadcast Corporation of Sarasota (J. Manuel Calvo et al). 600K escrow, balance in cash at closing. Station is ABC affiliate on Channel 27. [File date 6/10/05.]

4.35M WCNK-FM, WWUS-FM & WAVK-FM Florida Keys (Key West, Big Pine Key, Marathon FL) from LSM Radio Partners LLC (Burton K. Barlow) to Vox Communications Gruop LLC (Bruce G. Danziger, Burton K. Barlow, Keith A. Thomas). Cash plus unspecified debt assumption. Superduopoly with WWWK-FM Marathon FL. [File date 6/7/05.]

0 KMEO-FM CP Mertzon TX from Solid Rock Broadcasting Inc. (Barbara Coggin) to American Family Associations (Donald E. Wildmon). Transfer from one noncom to another for no consideration. CP is for Class C3 on 91.9 mHz with 6.5 kw @ 522'. [File date 6/6/05.]

Stock Talk

On the rebound is a good thing
As noted last Friday, broadcast issues did not tend to participate as the market trampolined up from an early sell-off following the terrorist attacks in London last week. On Friday, however, it was extremely difficult to find any red on the broadcast ledger sheet. Only one radio specialist and two TV specialists fell below break even.

Radio Stocks

**Here's how stocks fared on Friday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		43.50	+0.60	Jeff-Pilot	JP		50.77	+0.37
Beasley	BBGI		14.94	+0.59	Journal Comm.	JRN		16.80	+0.19
Citadel	CDL		11.75	unch	Radio One, Cl. A	ROIA		12.74	+0.21
Clear Channel	CCU		31.28	+0.37	Radio One, Cl. D	ROIAK		12.78	+0.21
Cox Radio	CXR		15.80	+0.32	Regent	RGCI		6.00	+0.13
Cumulus	CMLS		11.80	+0.06	Saga Commun.	SGA		14.66	+0.46
Disney	DIS		25.00	+0.55	Salem Comm.	SALM		20.45	+0.20
Emmis	EMMS		17.71	+0.24	Sirius Sat. Radio	SIRI		6.98	+0.34
Entercom	ETM		33.21	+0.80	Spanish Bcg.	SBSA		10.01	unch
Entravision	EVC		8.09	+0.23	Univision	UVN		27.90	+0.43
Fisher	FSCI		45.31	-0.69	Viacom, Cl. A	VIA		33.20	+0.62
Gaylord	GET		46.10	+0.31	Viacom, Cl. B	VIAb		33.00	+0.61
Hearst-Argyle	HTV		24.60	+0.21	Westwood One	WON		20.23	+0.16
Interep	IREP		0.51	+0.02	XM Sat. Radio	XMSR		35.63	+1.08
International Bcg.	IBCS		0.01	unch	-	-	-	-	-

Bounceback

Send Us Your Opinions We want to
hear from you.
This is your column, so send your comments to [email protected]

Today's correspondent seconds the motion of a 7/7/05 RBR #132 contributor.

Mr. Blake hit the nail on the head about the listener's relationship to radio. It never has been a business to them and it never will be. I'm shocked that Mr. Hollander could spend this many years in the media world and serve with as many radio greats as he has without realizing that the listener the only necessary party to this formula who is not being financially rewarded, so it's radio's job to conform to listener expectations, not the listener's job to expect to be handled like a product. The Japanese business model has no trouble treating both end users (listeners) and the financial providers (advertisers) as equals. Why hasn't radio, which is one of the oldest media needing both paying and non paying customers to succeed been able to figure this out? Advertising executives know that in consumer pitches it is often more profitable to bypass the financial provider (parent) and appeal to the end user (the child) rather than "following the money." How can an advertising medium as big as radio forget this important formula? We, the listeners, may not be buying the time, but we are the only reason why dy, the client, is willing to consider buying the time. You don't want us to stop wanting what Daddy's buying, do you?

Cris Allen,
Lancaster, OH

Arbitrends

Stations for Sale

Top 100 Market FM
NEast CapCity 6kw Class A @ 8.5x trailing BCF, good upside 1.95M
781-848-4201 or [email protected]

South Georgia Cluster
Two AM/FM combos
including one 100kw FM
and one 25kw FM in South Georgia.
Zoph Potts, Snowden Associates
(252) 940-1680
[email protected]

More News Headlines

NAB needs a few good mentors

WNCX-FM Cleveland
adds HD Radio

CBS is oldest, but NBC catching up

International

Canadians' radio listening down over past
Canadians are spending an average of 90 minutes less per week listening to the radio than a decade ago, says a report on radio listening habits released Friday by Statistics Canada. On average, Canadians aged 12 and older spent 19.5 hours a week listening to radio in the fall of 2004, the same number of hours as the previous year but down by 11/2 hours compared to 1995. Also they are listening to radio more in the car and at work, reports Canadian Press. The study is a joint project of Statistics Canada, Heritage Canada and the CRTC. Data was collected over a seven-day period, using a log-type questionnaire covering Sept. 6 to Oct. 31, 2004.
| Some of the results: |

June Digital Magazine
Now Available

National Sales:
EDI - Electronic Data Interchange, sometimes synonymous with Electronic Invoicing
Kathy Crawford, MindShare President, Local Broadcast, speaks her mind on EDI, specifically stating what solutions she needs from the software and keying entries to get stations faster payment in an exclusive column. States straight up, "Lest you should all think that our work is done in the world of EDI. Think again!" EDI- the focus of the future of national spot dollar. Who is and who isn't involved. From the rep firms to the software companies, we get answers. The Clock is ticking on EDI. Closure in '05?

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RBR Radar 2005

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

RBR First
Missouri Gov. allows 800 number, internet site for auto ad disclosures
The power of State Broadcaster Associations demonstrated: Missouri Governor Matt Blunt yesterday signed legislation (in House Bill #487) which allows broadcasters to use an #800 number or Internet site to provide the required disclosure information for automotive advertising. Missouri is the only state so far to do so. The underlying bill has an emergency clause. So, this legislation became law with an effective date of 7/7. For a complete copy of the legislation read here 07/08/05 RBR #133

RBR First
Missouri Broadcasters Association
President/CEO Don Hicks
Told first to RBR/TVBR the signed bill presents a multiplicity of factors in play: "First off, this is really a consumer-friendly piece of legislation because the consumers were being ill-served by the previous regulations, which basically there was no way that anyone could comprehend or understand, or any way the complete disclosures could have been made in the copy of an ad in an understandable way.
RBR observation: Bravo to Don Hicks and Missouri Radio and TV broadcasters. Now the 30 second spot makes sense and will also aid in all stations to improve and make better use of their websites in cross marketing. The auto industry should be very pleased and we trust other states will follow the 'Show Me State'. There is more to this issue. This Means Local auto money media people. Follow the lead of Don Hicks and the Missouri Broadcasters. Read the total details.
07/08/05 RBR #133

Agency comments on 800 number, internet site for auto ad disclosures
Matthew Warnecke, VP Mgr Network & Local Radio, MediaCom, who manages radio buying for Audi and Volkswagen - "Two things immediately come to mind-one is the creative will actually sound better because they don't have to have all that gobbley-gook at the end. Two is they can take advantage of a blend of 30s and 60s to use Less is More to the degree that they want. And that, in turn, means that they can perhaps keep costs from escalating because automotive tends to run in every break in every station..." Bob Wilson, Senior Partner/Account Supervisor at JWT/St. Louis (handles Ford dealers advertising locally) - "I think basically it's going to make for a more efficient message and the time for the commercial will talk about the product and what we want to talk about, instead of taking time out to put the disclaimer in there. So from my point of view, an advertising POV, this is going to be a more effective usage of the dealers' money, of the Association." 07/08/05 RBR #133

Research Director
Univision and TeleFutura TV stations 4-6 years broadcast research required in medium to Top 10 market. Bachelor degree required. EOE. No phone calls, please. See TV Careers

General Manager
Small-market radio cluster in the beautiful Northwest. Dominant stations with a fantastic team with excellent benefits. If you have genuine passion apply.
See Radio Careers

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