Welcome to RBR's Daily Epaper
Volume 21, Issue 139, Jim Carnegie, Editor & Publisher
Monday Morning July 19th, 2004

RBR First Look

Clear Channel (CCU) cutting inventory across the board
RBR First reported this cut of the inventory knife last Friday afternoon, 7/16/04 Media Mix, and likely responding to Wall Street's concerns the latest being Wachovia Securities analyst Jim Boyle taking on big radio also last Friday morning 7/16/04 RBR #138. By Friday afternoon in a CCU management conference call, Radio CEO John Hogan announced the radio group will be cutting inventory across the board, beginning 1/1/05. There will be new limits set on inventory and structure. They want to be known as the leader on getting rid of clutter or in Hogan's conference call words - "It is our goal to revitalize, rejuvenate, and resuscitate radio." RBR spoke with Hogan late after that conference and hit him with seven (7) one-on-one questions:

Q: Are you going to raise rates to make up for less inventory?
A: "We can raise them, but we can't make people pay them. What we have to do is deliver a better product..." For all seven (7) one on one Q & A's - | More... |

RBR observation: Both Clear Channel and Infinity need to show the leadership to help fix some of radio's problems-one of them being too much clutter, of course. We've been harping on this issue a bit, especially in our now-infamous "Naples is Calling" Publisher's Perspective in May RBR Solutions Magazine. RBR asked Infinity President Joel Hollander if he was following a similar path, "We don't need to put out a press release for something we've been doing for the last year."

Editor's note: Ouch! Reading it one feels the double edged sword is very sharp. Remarks like that don't get you invited to Thanksgiving Dinner. Heed the word Leadership gentlemen - meaning - a person that guides forward.

Delivering a Sales & PD's Dream
In case you haven't seen this - RBR has the spot rotation and structure - Clear Channel's new commercial load limits effective 1/1/05 for all stations all formats. Sources report that many GM's and PD's are surprised and some what releaved by this bold move because it means going on the cheap will have to stop. Cheap meaning selling shorter spots but the creative will and must improve. With improvement means top quality creative writers and production departments and that takes spending money. As one source put it - "We get to stop the garbage humpy-humpy bar promotions just to get beer money." Next step on pulling off this spot load strategy will be Clear Channel budgets which are coming into focus as all budgets by all stations are due at the end of August, which is about six (6) weeks away. For spot load all Formats and variations charts see - | More... |


Radio News ®

Arbitron backs off blanket embargo
One element of the fallout from the Infinity defection from Arbitron was a decision by the ratings giant to make ratings for markets where Infinity is a player client-exclusive. The idewa was to assure that Arbitron's copyrights were protected and to assure that only clients are able to benefit from its research. That would effectively shut down commonly-published generic ratings information, such as 12+ ratings and rankers, since those are the markets in which Infinity has its radio strongholds. | More... |

Ownership: Multidisciplinary
call for hearings
Democratic FCC Commissioners Michael Copps and Jonathan Adelstein are staging an event this week to urge a new round of public hearings on broadcast ownership regulation. They'll be joined by members of Congress and two important trade organizations. Maurice Hinchey (D-NY), Diane Watson (D-CA), Jay Inslee (D-WA) and Bernard Sanders (I-VT) are the members of Congress signed up for the Tuesday event, along with Linda Foley of The Newspaper Guild-CWA and John Connolly of AFTRA. A release says that there will be participation by other unions as well. FCC Chairman Michael Powell is being asked to "seek broad-based public input where the impact of such regulatory changes will be felt the most - - local media markets." The unions commissioned a survey of news professionals in both the print and broadcast media, which will be released in support of the call for hearings.

Is RIAA stream scheme redeemable?
Susquehanna SVP/GM Dan Halyburton appeared before Congress last week seeking to redress the unworkable current situation regarding streaming of radio station content over the Internet. Far from encouraging the development of a new source of entertainment and information, the current set-up is driving entrepreneurs away. Exorbitant music licensing fees are the culprit. Halyburton pointed out to the House Subcommittee on Intellectual Property that the way applicable law is written, broadcasters are forced to pay by the listener. The upshot is that they lose money developing an Internet following, and should they build it to the point where advertising sales are viable, that viability is negated by the RIAA royalty fee, making the whole enterprise a lose-lose proposition. Halyburton said that a one-time total of 1,700 is now down to around 700, exactly the opposite of what you'd expect with a new technology. Why? "Susquehanna will pay RIAA six times what we pay ASCAP, BMI and SESAC combined for these exact same performances," Halyburton testified. "Just one of our stations - - KPLX in Dallas - - will pay almost $50K in fees this year to reach a small fraction of its over-the-air audience." Halyburton made numerous suggestions on how to fix the problem. His full testimony is available at nab.org.


News staff diversity:
Stability or stagnation?
A number of minority journalist trade associations have joined together in a plea for the broadcast industry to do a better job when it comes to mirroring the ethnic makeup of the audience. The argument is that even though minority staff levels were stable in the latest RTNDA/Ball State survey, with small gains from 2002 to 2003, the percentages aren't that different than in 1994. Hispanics in 2003 held 8.9% of local TV news jobs, and 3.9% of those in radio. Numbers for Blacks were 10.3% and 7.3%. All of these numbers are well below total US population percentages. "Sadly, we continue to see broadcasting ignore the reality that the population has changed at a rate that far outpaces the progress of local companies," said newsday.com's Ernest R. Sotomayer, president of minority journalistic umbrella organization UNITY. Criticism was also leveled at the percentage employment for Asian and Native Americans. Four national associations are affiliated with UNITY: Asian American Journalists Association, National Association of Black Journalists, National Association of Hispanic Journalists and Native American Journalists Association.

Clear Channel settles Times Square squabble
The flap between Clear Channel Spectacolor and Project Billboard, with the Marriott Marquis Hotel playing a strong supporting role, has been settled. Marriott's building will remain unadorned by any political-messages, consistent with its own policy, and Project Billboard (PBb) will get not one, but two prominent spaces for its anti-Iraq war advertising. | More... |

Look out Clear Channel in Tampa Metro-Plex;
Bubba wants a Stinken Badge and Gun
The Love Sponge, age 38, over weight and out of work for five months and no on-air gig in site except for the tire kicking of satellite radio has shocked the Tampa-St. Pete market - again. Last Friday night, 7/16, Bubba (Dave Clem) at the DoubleTree Hotel Tampa Westshore wants to give it to the people of Pinellas County, St. Petersburg/ Clearwater and is running for the Sheriff's Office. Bubba is not a stranger to running in many ways as this is his second shot at office at campaigning for the political office. Bubba in 2000 was running for something but in as an official candidate but now he coughed up the $8,584.86 filing fee and will be on the ballot as the Lone Ranger Democrat as he awaits for the winner of the GOP primary results. Got to note Bubba was a lifelong Republican, but registered Democrat 60 days ago by saying he was fed up with the Republicans - just like 'The Howard'.

RBR observation: The ballot will read 'Bubba Clem' as his campaign platform will probably be - "Helloooo - Get To know me all over again over BBQ." Local political types are laughing by saying this guy has no experience and no credentials he just paid the - ahh - fine to enter the race. Bubba will force the Republican winner to spend some cash campaigning against him in the Nov. 2 general election and that is good for local. But remember if Bubba buys local radio campaign spots it may come down to who did the best marketing job. See the talk show market locally and nationally now. Bubba does Late Night with Letterman and the local Republican is SOL. "I'm fed up with Republicans," he said. Five months after Bubba the Love Sponge Clem was fired by Clear Channel Communications, the defrocked shock jock was back in front of reporters announcing his latest surprise.


Adbiz ©

CarboRite and Clear Channel launch
"Sweet Seats of Summer"
Carbolite Foods, makers of the popular CarboRite family of low carb snacks and treats, will be the official low-carb treat at Clear Channel amphitheatres this summer as Miller Branding + Communication, OMUSA, Inc. and Clear Channel Entertainment launch the "Sweet Seats of Summer" promotional effort. Miller Branding, agency of record for Carbolite Foods, and media partner OMUSA, worked with CC Entertainment and CC Radio of Philadelphia to develop the cross-platform promotional campaign that utilizes CC assets of radio, advertising, and promotions in conjunction with CC live entertainment venues and venue sponsorship. "CarboRite and Clear Channel's goal," said Gary Steel, Account Manager for CC Radio, "is to put the CarboRite products in front of concertgoers and radio audiences in the top 20 metros."

At select concert events, CarboRite's Street Team will distribute product samples and information on low-carb foods to concertgoers. Concertgoers can look for the bright blue CarboRite van at concerts nationwide to sample CarboRite and try and win seat upgrades. Each venue will also host an onsite promotion that offers concertgoers a chance to win merchandise and tickets to future shows. The onsite promotion includes an opportunity to gain access to the "CarboRite Sweet Seats," an exclusive VIP section of the lawn that includes private wait service, lawn chairs and complimentary food and beverage. DDG Productions will facilitate and manage the Street Team. The CarboRite Lawn sponsorship will be visible in 20 venues at 500 concerts.

Arby's puts account in review
Arby's is reportedly putting its $95M account into review, hiring Wanamaker Associates Atlanta to handle the search. RFPs should arrive at prospective agencies this week. Awrby's used the incumbent Doner since 1987. Arby's invited Doner to participate in the review, but the agency reportedly plans to decline. The move follows a management shakeup in January at Triarc Restaurant Group, which franchises Arby's and T.J. Cinnamons. Doug Benham was named president-CEO and Debbie Pike as President and chief marketing officer of the chain's Atlanta-based marketing arm, Arby's Franchise Association Service Corp.


Media, Markets & Money tm

Our deal...is a Perry, Perry, Perry fine deal
We can't say that there are two cats in the yard, but there may be two or more cats behind the mic. That's in the unlikely event that veteran American Radio Broker principal and Alaska station owner Chester Coleman, who has just surfaced in America's heartland, decides to install a straight-ahead Jazz format on one of his latest acquisitions, KDLS AM & FM in Perry IA. Coleman is paying $750K cash for the stock of Perry Broadcasting Company. Beneficiaries of this payday will be 51% owner Stephan Whitehead and 49% owner Thomas Quinlan. Perry is within 30 miles of Iowa's capital city of Des Moines, located to the northwest, and pretty much outside the sphere of coverage provided by Arbitron. The KDLS combo joins two Alasa stations and another in Concord CA in the Coleman portfolio.

K-Love strikes again
Educational Media Foundation, purveyors of the nonmcom Contemporary Christian K-Love network, have latched on to yet another station. It's buying KBVV-FM from Enid Educational Broadcasting Foundation for $102.5K. The Enid in the seller's name refers to Enid OK. It's in an unrated portion of the state well to the north of Olahoma City. Although EMF often finds property in the unreserved portion of the FM dial, this station is safely tucked away in the noncom sub-92 mHz section. Slightly over half of the purchase price will be paid via a promissory note.


July Solutions Digital Magazine
Complimentary Report

Sports - Summer NFL training camp, Baseball, NBA draft just hit and what you need to succeed:

Programming - Sells with NTR - What works and what doesn't

Read RBR in 2 simple steps:
1.Create a simple account with Zinio to download the free Zinio Reader.
2. You can then download the free
July Issue of RBR.

Thats it!


Washington Beat

MMTC looks to boost minority ownership levels
The Minority Media & Telecommunications Council will be in session Tuesday 7/20/04 at 9:00 AM Eastern to look for ways to boost the level on minority ownership in the broadcasting arena. The session which will focus on regulatory solutions, is called "What the FCC Can Do to Promote Minority Broadcast Ownership." The FCC's Director of the Office of Communications Business Opportunities, will be on hand as a panelist. The session will convene at the Loews L'Enfant Plaza Hotel in Washington.

Fee-nominal: FCC website shows what you owe
Did you somehow forget what your license bill is from the FCC this year? A new FCC website allows you the chance to quickly check you own station's fee vulnerability. It's available at fccfees.com. Go to the link called "Online Viewing of Fee Postcards" and identify yourself via call letters of facility ID#. Your fee, along with other info, will be pulled up for your viewing and remitting pleasure.


Monday Morning Shakers & Makers

Deals: 6/7/04-6/11/04
It was a reasonably good week, all told. Although there were no true blockbuster deals, neither were there any true dawgs - - the smallest deal was $325K for a small-town New Mexico FM. TV was back, with three relatively small deals in the $4-$12M range. The action was mostly in small rated markets.

6/7/04-6/11/04

Total

Total Deals

12

AMs

8

FMs

9

TVs

3
Value
$59,985,000
| Complete Charts |
Radio Deal of the Week
Citadel says pass the Salt | More... |
TV Deal of the Week
NexStar doubles by buying | More... |
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Transactions

$6M KTBU-TV Houston (Conroe TX). 100% of Humanity Interested Media Inc. from Christ's Church of Conroe, Montgomery County, Texas Inc. (Charles D. Johnson)/Montgomery County Media Network Inc. to Channel 55 Broadcasting LLC (Donald E. Iloff Jr.). Cash. $.94M to Christ's Church, $60K to MCMN. [File date 6/28/04.]

$2.95M KTLI-FM Wichita KS (El Dorado KS). 100% of Adonai Radio Group Inc. from Stephens Family LP (Michael P. Stephens) to Education Media Foundation (Richard Jenkins). $147.5K escrow, $652.5K cash at closing, $2.15M note. [File date 6/17/04.]

$2M WAVS-AM Miami (Davie FL) from Radio WAVS Inc. (Roy H. Bresky) to Alliance Broadcasting Inc. (Emmanuel Cherubin). $50K advance payment, $250K escrow, balance in cash at closing. [File date 6/17/04.]


Stock Talk

How low can they go?
Stock prices took another beating Friday as traders focused on worries about corporate earnings and terrorism, rather than a better-than-expected government report on consumer prices. The Dow Industrials fell 23 points, or 0.2%, to spend the weekend at 10,140. The market has now racked up three straight losing weeks.

Radio stocks had an even worse day. The Radio Index fell an even two points, or 0.9%, to a year-to-date low of 216.643. In fact, our index is now back to levels not seen since April of 2003. The day's worst performers were Entravision, down 2.2%, and Radio One and Regent, each down 2%.


Radio Stocks

Here's how stocks fared on Friday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

$34.12

-$0.14

Jeff-Pilot

JP

$48.28

+$0.67

Beasley

BBGI

$14.65

-$0.19

Journal Comm.

JRN

$18.10

-$0.39

Citadel CDL $13.83 -$0.21

Radio One, Cl. A

ROIA

$14.69

-$0.30

Clear Channel

CCU

$34.82

-$0.43

Radio One, Cl. D

ROIAK

$14.52

-$0.34

Cox Radio

CXR

$16.78

-$0.01

Regent

RGCI

$5.50

-$0.11

Cumulus

CMLS

$15.08

-$0.09

Saga Commun.

SGA

$16.70

-$0.05

Disney

DIS

$23.45

-$0.42

Salem Comm.

SALM

$24.74

+$0.27

Emmis

EMMS

$19.75

-$0.34

Sirius Sat. Radio

SIRI

$2.47

-$0.14

Entercom

ETM

$35.99

-$0.21

Spanish Bcg.

SBSA

$9.70

+$0.01

Entravision

EVC

$7.50

-$0.17

Univision

UVN

$29.53

-$0.57

Fisher

FSCI

$49.47

-$0.50

Viacom, Cl. A

VIA

$34.51

-$0.50

Gaylord

GET

$30.86

-$0.59

Viacom, Cl. B

VIAb

$33.98

-$0.57

Hearst-Argyle

HTV

$24.23

-$0.01

Westwood One

WON

$22.91

-$0.26

Interep

IREP

$0.98

-$0.01

XM Sat. Radio

XMSR

$25.19

-$0.84

International Bcg.

IBCS

$0.03

unch

-

-

-

-


Have a news story you'd like to share? [email protected]

RBR Audiocast

07/19 - Get the feel of what you are scrolling down and reading... Listen to this morning's AudioCast and
Hold On To Your Hair!
Listen Now!
Listen Now
with Bob DeCarlo'
"In Da Morning"


Bounceback

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

One reader decided to share with us a letter originally written to attorney
David Oxendine of Shaw Pittman concerning the possible new rules requiring broadcasters to record, maintain and provide potentially self-incriminating tapes. | More... |


Arbitrends

ArbitronMarket Results
| Middlesex |
| Nassau |
| New York |
| Westchester |


Upped & tapped

Sherman Kizart upped to SVP/Director of Urban Marketing at Interep
Interep announced today that Sherman Kizart has been promoted to Senior Vice President/Director of Urban Marketing from his previous post as Vice President/Director of Urban Marketing. Kizart will continue to lead Interep's innovative and successful urban initiative, whose goal is to bring additional revenue to urban stations by expanding radio budgets, breaking down "no urban dictates" and attracting new advertisers. He also plays a key role in the planning and development of Interep's popular and influential "Power of Urban Radio" events, held annually for advertisers, agencies and station executives.

Knight time in Springfield
Saga Communications has named Valorie Knight Operations Director for its five-station cluster in Springfield, IL. She joins the company from programming Clear Channel's WGIR-FM Manchester, NH.

Norton joins ComQuest
Gary Norton, most recently running the business research company TUDLA, has joined ComQuest as Sales and Marketing manager to spearhead the rollout of several new music testing services.


More News Headlines

Competing Media

Analyst: Hearing is wakeup call for Nielsen
Nielsen Media Research may have dodged any direct government intervention in the Local People Meter (LPM) dispute, at least for now, but analyst Lee Westerfield at Harris Nesbitt, says last week's Senate hearing was a wake-up call for Nielsen to take more seriously how it counts minorities. At the same time, Fox and Univision failed to get lawmakers to move toward government regulation of TV ratings.
| More...
|


Stations For Sale

Four Station Cluster
Very Profitable Four Station Cluster in Dynamic Alaska Market. Cliff at Clifton Gardiner & Co (303)758-6900
[email protected]

Powerhouse AM
10 KW AM in Rocky Mountain rated market. Can be top 25 market move-in! Cliff at Clifton Gardiner & Co (303)758-6900
[email protected]




RBR Radar 2004
Click on these issues for Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

RBR Conformation
Boyle: Big radio groups are underperformers
Consolidation wasn't all it was cracked up to be. Wachovia Securities analyst Jim Boyle is out with a new report which concludes that giant radio companies are underperformers - - in revenue growth, ad market share and audience share. "Bigger has not been better in radio for two years and this should persist," he warned investors this week. The analyst says one of two things will have to happen - - either the giant groups will slim down to manageable levels by selling stations or radio will eventually crawl out of this downturn as a less management-intensive business with more of the cookie-cutter model that the big operators profess to distain.
RBR observation: Hit Naples on the head. Eight years into consolidation, management is spread too thin in the major companies to be effective at the local, regional or national levels - - and yet the companies continue to make revenue-raising and cost-cutting demands on those overstretched managers which are laughable. It's not likely that the genie is going to be put back into the bottle - - consolidation is here to stay. And there are only two companies which can lead the way on resolving these problems which are hurting the entire industry. Mark? Joel? We wait to see how you are going to get your companies back on track. We trust you're both too young for Naples to be calling. 07/16/04 RBR #138

Lawmakers tread lightly
on LPM controversy
After hearing more than two hours of testimony on whether or not Nielsen's Local People Meters (LPM) undercount minority viewers, members of the Senate Communications Subcommittee made it clear they want the ratings company and its critics to resolve the issue without the government having to get involved. RBR observation: Whether he intended to or not, Fox's Tom Herwitz gave a boost to Arbitron's Portable People Meter (PPM) with his repeated attacks on Nielsen's "button-pushing" meters. We would note that members of Congress are likely unaware of the current anti-PPM backlash in radio, so jumping past LPM to rapidly implement PPM might be little more than substituting one ratings war for another. 07/16/04 RBR #138

NAB issues reply comments on nighttime IBOC
The NAB has issued reply comments to the FCC on recommendations for AM nighttime IBOC digital radio service. NAB reiterates its recommendation that the FCC extend the current interim authorization for IBOC service to permit nighttime AM IBOC broadcasts by all AM stations currently authorized for nighttime service, with an appropriate case-by-case interference resolution procedure to address unexpected instances of interference.
RBR observation: As mentioned by a few broadcasters in our August RBR Solutions Magazine, a potentially bigger problem than nighttime skywave interference is daytime interference, believe it or not. 07/16/04 RBR #138

Infinity Radio Sales
joins the Rumble
Against radio's ratings giant Arbitron as Infinity Radio Sales (IRS) President, Michael Weiss, wants money back and wants it retroactive to July 1st when their exclusive client station group Infinity Broadcasting decided not to renew its ratings contract as RBR First reported.
RBR observation: Of course, it makes sense to get money back if you can't use the product on behalf of your client. But RBR wonders where did marching orders come from, or should we say? Na - you go figure. At stake - Interep could be putting itself as a company in harm's way. There has been and always will be this stigma - that's why certain groups like Citadel and possibly Saga may have left Interep for Katz - that former Viacom COO 'Zen Master' Mel Karmazin and Infinity wielded all of the power and influence inside Interep for the national dollar. We caution Interep to state this is an Infinity Radio Sales move and does not represent the views of the entire Interep company or other clients. We all know the normal end disclaimer.
07/15/04 RBR #137


Account Executive
NYC Based

United Stations Radio Networks home of great radio content with radio pro's and an independent leader in original network radio programming needs that confident AE to handle marketing & national advertising clients. Must be a self-starter with excellent negotiating and writing skills. Previous media sales and/or client experience a huge plus.
Editor's note: Working with Pro's - Dick Clark and Nick Verbitsky come along only once so see Radio Careers to contact Sr VP/Eastern Sales Dick Silipigni - he's not taking phone calls.
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