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Welcome to RBR's Daily Epaper
Volume 22, Issue 137, Jim Carnegie, Editor & Publisher
Thursday Morning July 14th, 2005

Radio News®

Media ownership battle
reconvenes tomorrow at FCC

There should not be any controversy today when the FCC puts the 6/2/03 ownership ruling back on the table as directed by the Third Circuit Court. The plank on July Open Meeting agenda is expected to be a simple restating of the ownership issues under consideration, opening a new round of commentary. However, it shouldn't take long for the controversy to start heating up. Two of the biggest issues are newspaper/broadcast cross-ownership, television duopolies and, in the very largest markets, triopolies. In both cases, the FCC tried to create rules with numerical limits to the components and component counts of various types of in-market clusters. The Third Circuit seemed to have trouble, for the most part, with the underpinnings of those counts. Certain parts of the 6/2/03 rulemaking have gone into the books with Third Circuit's blessings, particularly the switch from contour-based radio market definitions to Arbitron/geographical definitions and the attribution of LMAs in a local cluster. The hotly disputed national television cap change - - 6/2/03 moved it from 35% to 45% - - was literally handled by an act of Congress, which in a closed door appropriations bill conference session set it at 39%.

RBR observation: What will be interesting to see is what kind of commentary, if any, that each commissioner appends to the item. Look for Michael Copps and Jonathan Adelstein to announce a reprise of their road show to gather public comment (and watch for one such meeting to be pretty much like all the others). Also, watch for Kevin Martin to keep his cards close to his chest.

Arbitron hits goal of recruiting 2,100
for PPM demo in Houston

Arbitron announced it has reached its goal of recruiting 2,100 consumers, age 6+, to participate in the Houston demo of its Portable People Meter system. Says Pierre Bouvard, president, Portable People Meter and International: "Arbitron went to Houston to demonstrate our ability to recruit a PPM panel in an ethnically diverse market, and further demonstrate that Hispanic and Black/African-American consumers will participate in a PPM media panel. Our recruiting success was consistent across key ethnic and racial groups. In addition, we have achieved a sample performance indicator (SPI) as of June 30 that is in line with our response rate goals at both the household level (43.2%) and individual persons level (28.1%)." | More... |


Republicans weigh in on DTV
Rep. Joe Barton (R-TX) likes what he's hearing over in the Senate - - and that's talk of a hard deadline for the DTV transition. But what should really be music to the ears of broadcasters are comments by a pair of Republican senators on the topic of multicasting. Barton commended Sen. Ted Stevens (R-AK) for devoting so much time to the topic, before commenting, "It is clear there is a growing consensus in Congress for a hard deadline to e4nd the digital television transition. Establishing a firm deadline will help ensure that police and firefighters meet their critical communications needs, that consumers receive the benefits of next-generation wireless broadband services, and that Congress further reduces the deficit. I am fully committed to working with the Senate to set a hard deadline." On the topic of multicasting, how about this from Sen. Olympia Snowe (R-ME), pictured: "Because the digital signal occupies less space than analog signals, broadcasters will be able to multicast additional channels allowing for more local weather, news and educational programming." Some would argue that Snowe's positions often are not all that far from being Democratic, but then there's this from Sen. Conrad Burns (R-MT): "Digital signals have better quality and allow for more channels and more programming in the same bandwidth, and we should make sure we allow these benefits to flow to the consumers to the maximum degree possible."

RBR observation: It is entirely possible that any multicasting mandate from Congress will have some public interest strings attached, particularly if Dems who fall in behind FCC Commissioner Michael Copps have anything to say about it. But if Kyle McSlarrow and the NCTA want to stop multicast must carry, it looks like he may have his work cut out, since members of both parties seem to be talking about it like it's a given.

SBS breaks into television
Raul Alarcon's Spanish Broadcasting System has long been one of the leading exponents of Hispanic radio. Now it's expanding in its home market of Miami, adding one of those post-radio broadcast outlets that includes pictures with the transmission. WDLP-TV Channel 22 is coming from Dr. William De La Pena for 37.5M. The station in a Spanish language indy licensed to Key West, the extreme southern extremity of the Miami-Ft. Lauderdale DMA. The station's cable and satellite presence helps get it before the eyes of Miami viewers - - 1.5M of them, according to SBS. It joins a multimedia cluster which also includes WRMA-FM, WCMQ-FM and WXDJ-FM. "The Spanish language media universe of South Florida, our home market, presents a unique and logical entry point for our debut in television," said Alarcon. "This is a highly complementary transaction that will enable SBS to further increase its ability to serve Miami's Hispanic community."

RBR observation: Look for SBS to exploit any and all cross-promotional and cross-platform opportunities presented by the soon-to-be-expanded cluster. Once again we remind all that SBS has one of the finest programming executives in the business - Vice-President Director of Programming Bill Tanner. All in the media do not let your guard down if Tanner comes to town but watch his skills at work.

Goldman Sachs sets up conflicted conference
The 14th Annual Goldman Sachs Communacopia Conference is set for the Grand Hyatt in New York, and it features sessions with "CEO's, Chairmen and Presidents from leading Media and Telecom companies for two full days. The list of companies is on the "Preliminary List of Confirmed Companies" is indeed impressive, with the broadcasting, cable and satellite businesses represented by the likes of Cablevision Systems, Clear Channel, Comcast, DirecTV, Gannett, McGraw-Hill, NBC Universal, News Corp., Sirius, Time Warner, Univision, Viacom, Walt Disney and XM. There are also telecom, music and foreign interests on the list. The conflict? It's scheduled for 9/21-22/05. The NAB Radio Show in Philadelphia in scheduled for 9/21-23/05. Which one are you going to attend?


Conference Calls Q2 2005
Gannett hits a Q2 dip in the road
When operating revenues go up, it's a good thing, but when expenses also go up, and at an even faster pace, that all-important net number goes down. Such was the story for newspaper/television operator Gannett Co. As usual in an odd-numbered year, the company pointed to the dearth of election income to explain it's red broadcasting ink. Total operating revenues for Q2 were 1.94B, a number which compared favorably to Q2 2004's 1.87B, 3.4% to the good. Operating cash flow was also up, going to 634.3M from 638.5M. However, net income suffered a 5.4% loss, going to 338.6M compared to 354.4M last year. Triple-play exec Douglas H. McCorkindale (he wears the chairman, CEO and president hats) said that Gannett was producing industry leading advertising revenue growth, spurred by the local and employment classified categories, but was dealing with higher expenses for newsprint and interest along with acquisition and capex expenditures. The TV group suffered a 6.9% decline in ad revenue, clocking in at 197.9M after posting a 212.5M figure the year before. Operating cash flow dropped 13.3%, hitting 98.7M after posting 113.8M in Q2 2004. (The numbers include the 4/04 acquisition of Captivate Network Inc.). The usual culprit, loss of political revenue, was a reason, along with softness in the automotive category.


Adbiz©

NY State allows auto lease details via 800 number too
Missouri is apparently not the only state so far to allow disclosure info via 800 numbers (7/8 RBR #133). NY State has allowed 800 numbers for 10 years, according to NYMRAD on auto leasing disclosures. So there are two states and 48 to go! Says Richard Novik, SVP/Station Client Services New York State Broadcasters Association: "This is complicated...there are 2 separate issues...regulations for leasing, and those for credit advertising...then there are two layers of regulations, both federal and state. Section 336 of Riegle act allows for info to go onto an 800 number for lease advertising (albeit mandating lengthy regulations for how that 800 number is to work)...and that is applicable for all states to use. My take on the Missouri bill is that this is the first mention of taking the tag info to a website...that is groundbreaking and logical, and something all states should try and pass."

Kaiser Permanente thrives
with radio in SoCal
"In Kaiser Permanente's history, we've never had a campaign that has had this much universal positive reaction, both inside and outside of the organization. The numbers are starting to come in now and they're astounding!" according to Director of Brand Marketing Debbie Cantu. The "Thrive" campaign was created for Kaiser Permanente by Campbell-Ewald and was recently honored by Southern California Broadcasters Association's General Sales Managers Council with the Best Spot of the Month for February 2005. The award recognizes outstanding radio creative on the air in Southern California. According to Campbell-Ewald EVP, Executive Creative Director Debbie Karnowsky, "The campaign started from the whole idea of 'thrive' because that is really the client's wish for all its members and employees, the businesses they work with, and the community. We focused on what 'thrive' meant and then saw how much it connected with people both inside and outside the company. We also wanted to stand for a cause. Total health is a cause for everyone. From that it led to encouraging people that it's time to be your own cause - live well, be well and thrive!" Photo: Standing, left to right: Debbie Karnowsky, EVP Executive Creative Director; Liz Mason, SVP Account Manager; Theresa Lozier, Account Supervisor; Mary Beth Garber, President, SCBA; Seated: John Dolab, VP Copywriter; Debbie Cantu, Director, Brand Marketing, Kaiser Permanente

Fallon closing NYC office
Fallon announced the NYC office will close and employees there and be offered jobs in Minneapolis, the agency's HQ. Clients have been notified of the change, and the agency is working with them to determine appropriate transitions for their business, according to a statement. Office President Anne Bologna and top creative Ari Merkin approached agency Chairman Pat Fallon earlier this year and expressed their desire to launch a venture. That prompted Fallon's decision to stop running an office in New York. "While we have loved doing business in New York, and have a great group of talent, the truth is that New York is not a necessary part of Fallon's U.S. offering. We believe our clients will be best served by a single office," Pat Fallon said in a release. The NYC office clients included Virgin Mobile and Time.


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Media Markets & MoneyTM
EMF takes Patrick's hand-off in S.OH
Patrick Communications was the logical choice to broker Educational Media Foundation's deal for WSNA-FM South Webster OH. In addition to being the broker, Patrick's Legend Communications is both a buyer and seller of the same station. Legend is buying the station, located in unrated territory in the extreme southern portion of the state, from I-M Media Broadcasting for 350K (115K cash less adjustments, 90K consulting agreement and 145K note). It will then turn around and sell the station to Education Media Foundation for 450K (175K cash, 275K note). Legend, which has been running the station in an LMA since 6/18/04, has already turned it over via a second LMA to EMF, which has installed its K-LOVE Contemporary Christian net on the station. It is located north of the reserved band on the FM dial, so as usual, EMF will apply to shift its operating status to noncommercial.


Washington Beat
Another diet supplement collared
The Federal Trade Commission has entered into a 100K consent decree with RTV Research and Development over the advertising and marketing of its dietary supplement Xenadrine EFX. Ads for the product claimed that it "...causes rapid and substantial weight and fat loss, such weight loss without the need to diet or exercise, permanent or long-term weight loss, and is clinically proven to work." Testimonials from supposed customers were a key component of the campaign, and some of them said they lost over 100 pounds. One FTC complaint concerned the "clinically proven" claim. Far from it, said the FTC - - in fact, in one clinical test, Xenadrine EFX underperformed a placebo. EFX users lost an average of 1.5 pounds over 10 weeks, compared to 2.5 pounds for the control group. Further, the consumer endorsers "...lost weight by engaging in rigorous diet and/or exercise programs." The consent agreement prevents RTV from making similar claims in the future.


Programming
Mix 98-5 Boston airing
3rd Annual Kids Radiothon

Mix 98-5 (WBMX-FM) will host the third annual "Mix 98-5 Cares for Kids Radiothon for Children's Hospital Boston" today and tomorrow from 6 a.m. to 6 p.m. Funds raised will benefit Children's Hospital Boston, enhancing life-saving patient care and advancing groundbreaking research, improving the lives of children and adults. Last year's radiothon raised more than 920K. Listeners of Mix 98-5 will hear inspirational stories of area Children's patients and families-in families' own words. Throughout the radiothon, Mix 98-5 listeners can call to make donations to Children's, or they can donate online by visiting www.mix985.com. Radiothon callers can choose to make a one-time donation, but will be encouraged to become a "Dream Maker" with a monthly gift of 15 or more.


Transactions
1.2M WLTS-FM State College PA from Forever of PA LLC (Donald A. Alt, Kerby E. Confer, Carol D. Logan, Lynn A. Deppen) to 2510 Licenses LLC (Nicholas A. Galli). 200K cash at closing, 1M note. Superduopoly with WOWY-FM University Park, WKVB-FM Port Matilda, WBLF-AM Bellefonte PA. [File date 6/9/05.]

15K FM CP Santa Fe NM (Espanola NM) from Northern New Mexico Public Radio Inc. (Rick Garcia) to Regents of the University of New Mexico (Richard S. Towne et al). Cash at closing. CP is for Class C3 on 91.9 mHz with 8.7 kw @ 538'. Noncommercial. [File date 6/9/05.]


Stock Talk
Dow up, broadcasting down
The Dow Jones Average and the average broadcasting stock were on different escalators yesterday, for the most part. Disney was able to pick up 30 cents a share, making it a small island of black in a sea of red ink.


Radio Stocks

Here's how stocks fared on Wedensday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

42.59

-0.52

Jeff-Pilot

JP

50.68

-0.10

Beasley

BBGI

14.45

-0.04

Journal Comm.

JRN

16.55

-0.21

Citadel CDL
11.55 -0.13

Radio One, Cl. A

ROIA

12.72

-0.20

Clear Channel

CCU

31.94

-0.06

Radio One, Cl. D

ROIAK

12.76

-0.20

Cox Radio

CXR

15.99

-0.09

Regent

RGCI

6.01

-0.07

Cumulus

CMLS

12.19

unch

Saga Commun.

SGA

14.19

-0.29

Disney

DIS

25.71

+0.30

Salem Comm.

SALM

20.61

-0.01

Emmis

EMMS

17.97

-0.05

Sirius Sat. Radio

SIRI

6.91

-0.07

Entercom

ETM

32.60

-0.57

Spanish Bcg.

SBSA

9.87

-0.10

Entravision

EVC

8.36

+0.09

Univision

UVN

27.50

-0.40

Fisher

FSCI

46.39

-0.01

Viacom, Cl. A

VIA

32.95

-0.24

Gaylord

GET

47.26

+0.20

Viacom, Cl. B

VIAb

32.79

-0.26

Hearst-Argyle

HTV

24.50

-0.12

Westwood One

WON

20.03

-0.01

Interep

IREP

0.44

+0.01

XM Sat. Radio

XMSR

35.62

-0.42

International Bcg.

IBCS

0.01

unch

-

-

-

-

-



Bounceback

Send Us Your OpinionsWe want to
hear from you.

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

A reader has issues with DTV,
HD Radio, multicasting

The comment regarding DTV and HD radio creating 6 times the channels might be true. For those of us idiots who forked and spooned over thousands in the past 3 years for a first look at DTV and those PBS sellouts for multicasting we already have a good idea why cable does not want to fool with demodulating those silly signals: | Read More... |

Jerry Smith


More News Headlines

Ann Compton elected President, WHCA
ABC News Radio's National Correspondent Ann Compton has been elected president of the White House Correspondents Association (WHCA). Receiving an overwhelming majority of the votes, Compton will serve as president beginning in 2007. Compton was on assignment for ABC News Radio traveling with President Bush during the London terror attacks when she got the news. A veteran reporter who has covered six administrations and seven presidential elections, Compton is the first woman assigned to cover the White House on a full-time basis by a network television news organization. In her role as president, Compton will lead the WHCA in representing the White House press corps in its dealings with the administration on coverage-related issues.

RAB trains
NextMedia sales force

The RAB has provided sales training for more than 150 NextMedia salespeople from across the country were trained over the past year with two RAB Radio Training Academy courses, Foundations and Advanced Sellers. Both programs provide intensive sales training with particular emphasis on results-based marketing concepts and real-world selling skills. Foundations is for sellers who have been in the Radio business for less than 18 months while Advanced Sellers is for professionals with at least 18 months experience.






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?


Read RBR/TVBR in 2 simple steps:
1.Create a simple account with Zinio and download the Zinio Reader.
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RBR Radar 2005
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Rocket fuel to Disney radio rumors
Perhaps you read this in the RBR/TVBR story "Peace reigns once more over the Magic Kingdom." "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." Now Wall Street Journal has put out a possible sell-off deal structure for ABC radio interests, and fingered possible buyers.
RBR observation: Get real, Bob Iger is just finding his way to the CEO john. And why toss off 700m when the machine ain't broke. It is a strong marketing asset once someone at ABC/Disney figures it out. Take a lesson from what CBS honcho Les Moonves once said; "Come fall I use all 183 radio stations to my marketing advantange." When Moonves made that statement was actually wishing he had 1,183 radio stations. 07/13/05 RBR #136

Duel on the Hill: Hard date
Both the National Association of Broadcasters and the National Cable & Telecommunications Association appear to have settled into the near-certainty of a 12/31/08 hard date for the end of over-the-air analog television broadcasts.
RBR observation: If there was any shred of doubt left that Congress fully intends to put a deadline on the DTV conversion, it has almost certainly been dissolved by the terrorist attack on London. In the unlikely event that there was a pocket of even token resistance to 12/31/08 in either party, in either house, the fresh reminder of the needs of first responders has certainly put it to rest. 07/13/05 RBR #136

New tower standard
takes effect 1/1/06
Did you know existing standards for broadcast and communications towers have been updated with their biggest revisions, some say, since their inception in 1949? No major changes were made to the standard based on comments. So the TIA/EIA 222-G Standard will be published/printed this summer and officially take effect 1/1/06.
07/13/05 RBR #136

iPod overrated and other mullin'
Emmis Communications uberhoncho Jeff Smulyan took to the company's website to discuss the general state of affairs with his company. The TV group, featuring both attractive signals and markets, is attracting significant interest and higher-than-expected numbers. Part of the reason, he believes, is good old supply and demand. Outlook on radio - Wall Street is skeptical of all media right now, but we're seeing data on satellite and iPod consumption that show us that some of the threats against terrestrial radio are overblown. RBR observation: We do agree with Jeff that much is overstated but we have to point just one finger at the Street as it is their job to move the market on new gadgets. iPod has its place in the consumer media mix as the consumer is always in control. Remember this fact then remember more so like radio, TV must stay focused on local content and presentation as gadgets will not replace local and the loyalty factor. We see this in local TV news every day as a number of local anchors have such a long running loyalty factory that in some cases the station just can't retire them so they use duct tape to keep'em straight in their chairs. Local wins every time. 07/12/05 RBR #135


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