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Radio News ®
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 New venture takes
anti-payola paperwork online
Eliot Spitzer's phony crusade against so-called "payola" not only helped get him elected Governor of New York, but also created a business opportunity. Barry Griffin stepped into that opportunity, creating Presage, based in Boca Raton, FL, which offers radio stations an Internet-based way to easily generate and deliver the paperwork required to comply with the consent degrees that Spitzer struck with the major record labels while Attorney General of New York. Griffin, who spent a couple of decades as a regional record rep, recently demonstrated his system at a Sarasota gathering of the Florida Chapter of the Federal Communications Bar Association and again for RBR in a live online session. Record companies now require a letter signed by the General Manager each time a radio station receives something of value from a record label, regardless of whether that is a single CD, an in-studio visit from an artist or an expensive trip given away to a lucky listener. Presage, which is now being tested by several radio groups, makes the entire process electronic. The station PD or MD signs onto the system and uses drop-down boxes to identify what's being requested from a label. The GM doesn't even have to log on, but will receive emails at a specified interval with all pending requests from the cluster's PDs. He/she can quickly approve or reject them and, for those approved, the required letter with an electronic signature is sent to the record label via email. A record of the correspondence is also saved in the system, so the station can check back if there is ever any question about compliance.
For radio stations, one sweet point is that the Presage service costs them nothing. A surcharge is added on to cash-paid label promotions, so the record companies pay the freight. Although record labels have cut back on promotion due to the consent agreements with Spitzer, Griffin figures there is still quite a bit of promotion going on. So, he's pitching Presage as the software fix for every radio station that reports record airplay to either Radio & Records or Mediabase.
CBO prices S.2332
That's the Byron Dorgan (D-ND) bill that would set up extra hoops for the FCC any time it wishes to change a rule impacting media ownership rules. It would require advance notice, establishment of extra comment and reply comment periods, among other things. The Congressional Budget Office estimates that the anticipated price tag would easily comply with existing Senate budgetary rules. Other hoops include FCC's production of a study of the proposed change's impact on its likely affect on "the availability and quality of local programming by radio and television stations and newspapers." And it would establish an advisory panel to offer recommendations in increasing broadcast ownership among women and minorities. CBO says all of this can be brought home for under 500K, "subject to the availability of appropriated funds, to provide a report on media concentration to the independent panel. Enacting the bill would not affect direct spending or revenues. S.2332 contains no intergovernmental or private-sector mandates...and would not affect the budgets of state, local or tribal governments."
RBR observation: Or, in other words, one possible technical barrier to blocking the bill's enactment does not exist. The second session of the 110th Congress is just starting up. We'll keep our eyes on the progress of this bill.
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 More noise around Bloomberg
Do you feel a draft? It might be coming from the Draft Bloomberg Committee, a bipartisan effort aimed at drawing the ex-Democratic ex-Republican and sitting NYC Mayor Michael Bloomberg (I) into the 2008 presidential contest. Bloomberg himself added to the din, joining a pair of centrist governors -- one from each party (is there a theme here?) -- in an attack on SOP in Washington. The Draft Bloomberg Committee was formed by Doug Bailey, a former GOP consultant, and Gerald Rafshoon, a Democrat who worked in the White House under Jimmy Carter. They are mounting a 50-state signature drive in an effort to spur Bloomberg's entry into the race as an independent, third-party candidate. It's targeting independent voters, along with those affiliated with both parties who are not satisfied with the current crop of candidates.
Meanwhile, Bloomberg joined Arnold Schwarzenegger (R-CA) and Ed Rendell (D-PA) in criticizing the Washington establishment for focusing on pork and re-election while the nation's infrastructure rots due to neglect. "We can all look at recent headlines about levees in New Orleans, air traffic congestion in the Northeast or the bridge collapse in Minnesota to realize that our nation's infrastructure is in need of serious attention," said Bloomberg. "But those examples only scratch the surface of the problem. The funding needs to maintain our existing infrastructure, and to improve and expand infrastructure as our nation continues to grow, just hasn't been the priority it needs to be. Today, I'm joining with Gov. Rendell and Gov. Schwarzenegger to create a coalition that will focus attention on our national infrastructure shortcomings in a non-partisan way and will work to ensure the federal government makes this a top priority." Schwarzenegger pegged the necessary funding for the infrastructure restoration project at 1.6 Trillion dollars.
RBR observation: So noise is being made on behalf of Bloomberg, even while Bloomberg makes noise on his on. This is against a backdrop of quiet polling being run by Bloomberg to test the waters. The possibility of a huge infusion of cash in what figures to be a record political advertising year anyway gets ever closer to reality.
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Like father, like son...and like daughter
Two of Rupert Murdoch's adult children are in the news for deals they've cut to build their own media empires. Lachlan Murdoch has teamed with James Packer to take Australia's Consolidated Media Holdings (CMH) private for 3.3 billion Australian dollars (2.9 billion US). His sister Elisabeth, meanwhile, is buying Reveille, the powerhouse TV production company, for more than 125 million from NBC Entertainment Co-Chairman Ben Silverman and his partners. Lachlan's deal unites him with the scion of another Australian media family. Packer already owns 37% of CMH, which is more a media investment company than an actual media company itself. Among other things, it owns 25% of Australia's Nine Network, 25% of the Foxtel pay TV service, 25% of the ACP magazine group and 50% of Premier Media, a sports programming company that uses the name Fox Sports. The bid to buy out the public shareholders of CMH was about 24% above the pre-bid stock price. Packer has stepped aside from his position as Deputy Chairman to allow the independent directors of CMH to evaluate the offer. Elisabeth Murdoch is greatly increasing the size and scope of her production company, Shine Group, with the deal to buy Reveille. The UK's Guardian newspaper reports that she's gotten a financial infusion from BSkyB, the British satellite TV company run by brother James Murdoch, to help fund her company's rapid expansion. Shine will reportedly pay 125 million up front for Reveille, with additional payments based on future results which could take the total to 200 million. Selling Reveille eliminates a conflict of interest for Silverman, who did not immediately divest his interest in the production company after taking the NBC Universal post. Reveille produces shows for NBCU and several of its competitors, including "Ugly Betty," "American Gladiators" and "The Office."
 Kucinich takes beef to FCC
CNN says participants in a South Carolina Democratic debate need to meet two criteria: A third-place of better finish in a contest sanctioned by the Democratic Party, and a showing of 5% or better in a national poll. Dennis Kucinich (D-OH) failed both tests and was excluded from the lineup. According to Cleveland.com, he has protested this to the FCC, claiming that CNN is setting up arbitrary benchmarks, and ignoring his recent 4% showing in two recent polls. CNN claimed it set up its criteria without regard to any candidate. Kucinich claims instead that the guidelines were drawn up specifically to silence his own campaign.
RBR observation: Handling legitimate political disputes can be a very tricky matter for the media, but at this point in the campaign, we believe CNN has a point. Many believe that Kucinich's second run for the White House, like the first, has largely been about acquiring a media megaphone for his own political views. There is nothing wrong with that, but in both cases he failed to attract significant financial backing, grassroot or otherwise, and even more to the point, he has failed to attract votes. We don't know where the line should be drawn when deciding who is on the guest list for these debates, but we find it hard to make a case that CNN is out of line. Regardless, we don't think this case comes within the jurisdiction of the FCC. Kucinich may as well file a complaint with our dog. Although the pooch is utterly apolitical and therefore uniquely qualified to offer an unbiased ruling, we don't think he will be able to offer much in the way of help, either. But if the candidate holds a biscuit in his hand while making his case, he is certain to have the canine's rapt attention.
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Ad Business Report TM
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Anti-Gang campaign uses radio
"Gangs Want Your Kids." is a sentiment U.S. Attorney McGregor Scott, in partnership with Valley Crime Stoppers, the Fresno Police Department and the Fresno-based ASTONE agency, hopes will be a wake-up call for the families of gang members. The new statewide campaign is aimed at helping to eliminate the gang problem. The "Guns and Gangs" campaign includes a sixty-second radio spot, billboards, bus signs and a thirty-second television spot. ASTONE will also contribute the PSA to any Crime Stoppers organization nationwide.
 MPG's Kaki Hinton
to keynote at RAB2008
Kaki Hinton, EVP/Managing Director at MPG, will deliver the luncheon keynote, "Motivating Today's Retail Consumer," on Tuesday, 2/12 during RAB2008 at the Hyatt Regency in Atlanta. As part of her role at MPG, Hinton oversees all strategic planning and buying for the 800 million Sears account, ranked as the 6th largest retailer by Stores.org. Prior to joining MPG in October 2007, Hinton spent 20 years with Pfizer Consumer Healthcare, previously Warner-Lambert.
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| Media Markets & Money TM |
Backtracking
The Circuit Court of Talladega County, Alabama, had to get involved in this one. It awarded WFEB-AM Sylacauga AL to W.O. Powers and his Powers Broadcasting Company LLC. Licensee Alabama Broadcasting Company Inc. was unable to make good on debts cited at 184,310, and efforts to sell the station for 200K failed, so the license and other assets were returned to Powers in exchange for debt forgiveness. Sylcauga is in an unrated portion of the state southeast of Birmingham.
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| Washington Business Report TM |
PAC-ing it in
The Federal Election Commission says the number of registered political action committees has gone up 1.5% in the last six months as of 1/1/08. The actual number has increased from 4,168 on 7/1/07 to 4,234. The number of active PACs has been within the 3.8K-4.2K range for the past 20 years, according to the FEC, putting the current total on the high end. The last time the spike was greater was 7/1/05, when a high water market of 4,291 was set. That number was a bit of a mirage, however -- within the next six months, FEC expunged 189 organizations from the list due to inactivity. The categorical breakdown is as follows: corporate (1,601); non-connected (1,300); trade/membership/health (925); labor (273); corporations without stock (97); and cooperative (38).
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| This Week in Time |
 We know where we are today reading RBR but how did we get here? RBR's new weekly radio business brief gives a quick scan on where radio has been.
Visit our website to review the history,
read our archives at RBR.com
4 years ago -- 2004, Issue 11
How Radio stocks fared: Wall Street advance leaves broadcasters behind. Citadel 20.40, Clear Channel 44.73, Cumulus 20.63, Emmis 26.63, Entercom 50.50
3 years ago -- 2005, Issue 11
FCC opens payola probe. RBR observation: RBR was there in 1985 with the real rebirth of payola. How Radio stocks fared Radio stocks went along for the ride. Citadel 14.15. Clear Channel 32.00, Cumulus 14.08, Emmis 17.79, Entercom 32.03
2 years ago -- 2006, Issue 15
Pixar deal at hand? Radio in back seat, for now: No doubt David Field, Farid Suleman and Clarke Brown are watching. How Radio stocks fared: Almost all were lower. Citadel 12.90, Clear Channel 30.42, Cumulus 12.89, Emmis 17.62, Entercom 30.14
1 year ago -- 2007, Issue 14
XM lawsuit to proceed. RBR observation: Think this doesn't matter to AM and FM stations? Think again. How Radio stocks fared: higher, earnings a mixed bag. Citadel 10.19, Clear Channel 36.50, Cumulus 10.35, Emmis 8.65, Entercom 28.11
RBR note: For stock prices see Radio Stocks below.
Archived issues located at www.RBR.com
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| Transactions |
600K WCVM-FM Bronson MI from CSN International (Jeffrey W. Smith) to Taylor University Broadcasting Inc. (Douglas Rupp et al). 30K escrow, balance in cash at closing. Noncommercial. Buyer will seek main studio waiver to operate station as satellite of WBCL-FM Fort Wayne IN. [File date 12/21/07.]
13,209.64 KLDE-FM CP Eldorado TX from Darby Advertising Inc. (Kent D. Smith) to Tenn-Vol Corporation (Danny Ray Boyer). Cash. CP is for Class A on 104.9 MHz with 6 kw @ 302'. [File date 12/21/07.]
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| Stock Talk |
US stock markets were closed Monday in observance of the Martin Luther King holiday. Overseas markets fell Monday, with the declines around the globe blamed on fears of a coming US recession.
The numbers below are from Friday's closing.
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| Radio Stocks |
Here's how stocks fared on Friday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron*
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ARB
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40.20
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-0.35
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Google
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GOOG
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600.25
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-0.54
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Beasley*
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BBGI
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4.17
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-1.00
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Hearst-Argyle
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HTV
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19.93
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+0.03
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| CBS CI. B |
CBS |
 |
23.09
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-0.21
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Journal Comm.
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JRN
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7.39
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-0.06
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| CBS CI. A |
CBSa |
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23.09
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-0.19
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Lincoln Natl.
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LNC
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50.19
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-1.39
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| Citadel* |
CDL |
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1.52 |
-0.12 |
Radio One, Cl. A
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ROIA
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1.65
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-0.20
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Clear Channel*
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CCU
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33.55
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-0.60
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Radio One, Cl. D*
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ROIAK
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1.64
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-0.20
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Cox Radio*
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CXR
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10.94
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-0.23
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Regent*
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RGCI
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1.35
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-0.04
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Cumulus*
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CMLS
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5.62
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-0.43
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Saga Commun.*
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SGA
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6.11
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-0.16
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Debut Bcg.
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DBTB
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0.97
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unch
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Salem Comm.*
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SALM
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3.94
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-0.04
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Disney
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DIS
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28.51
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-0.26
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Sirius Sat. Radio
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SIRI
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2.83
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+0.14
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Emmis*
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EMMS
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2.60
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-0.12
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Spanish Bcg.*
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SBSA
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1.51
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-0.05
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Entercom*
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ETM
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10.66
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-0.61
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Westwood One*
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WON
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1.76
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-0.02
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Entravision
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EVC
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6.29
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-0.42
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XM Sat. Radio
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XMSR
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11.17
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+0.95
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Fisher
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FSCI
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33.21
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-0.30
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-
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-
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-
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-
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-
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*Component of the RBR Radio Index
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Bounceback
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 We want to
hear from you.
This is your column, so send your comments and
a photo to [email protected]
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Below the Fold
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Ad Business Report
Anti-Gang campaign
Uses radio, a statewide campaign aimed at helping w/ problem...
Washington Business Report
PAC-ing it in
FEC says number registered political action committees has gone up 1.5%...
Media Markets & Money
Backtracking
Circuit Court of Talladega, AL, had to get involved ...
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Stations for Sale
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 Market your Stations For Sale
in our daily epapers.
Contact
Jim Carnegie
[email protected]
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Radio Media Moves
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Gosselin to Philly
Greater Media Philadelphia announced that Don Gosselin has been named Program Director at Adult Hits WBEN-FM. Gosselin brings over 12 years of programming experience to the job, most recently at WNIC-FM Detroit.
Talking in Florida
Genesis Communications has hired Jerry O'Neill as talk show host for afternoon drive on WHOO-AM Orlando and WIXC-AM Melbourne, FL. O'Neill will team up with Brady Ackerman to anchor the 3-6 pm program. "Jerry's vast sports radio experience in Orlando and popularity is a winner for our ESPN radio stations in central Florida." said Brad James, Genesis VP of Programming.
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RBR Radar 2008
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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December silver lining:
Easy 2008 comps
What else can you say about a quarter in which business continued to be recorded in red ink? The combination of a -4% performance in local and -12% showing from national produced a traditional business loss measured at -6% by the Radio Advertising Bureau and Miller Kaplan Arase & Co. Non-spot business provided a positive 12% to counterbalance national's negative 12%, but it was only enough to shave one percentage point off the overall loss, bringing the month of December home at -5% compared to December 2006. CL King & Associates analyst Jim Boyle says the December expectation on Wall Street was a 2% drop, so news of the 5% deficit may be an indicator of a coming recession.
01/21/08 RBR #13
Another firm goes broadcast bare
Yet another big Wall Street firm has decided it can do without an analyst focusing on pure-play radio and TV companies. James Dix is gone from Deutsche Bank, where he had been the primary broadcast analyst since 2005 (6/6/05 TVBR #110), when he took over the seat occupied for so long by Drew Marcus, who moved to the investment banking side at DB. Dix had covered Entravision, Radio One, ACME, Beasley, Clear Channel, Entercom, Hearst-Argyle, LIN, Salem, Sirius and XM.
01/21/08 RBR #13
WGA Strike Central, Day 78
2008 program options;
WGA strike continues
The WGA strike began November 5, 2007 and now we're seeing a number of predicted events come to fruition for the industry. Networks are ordering and scheduling a bevy of reality fare for midseason; they've saved a few scripted episodes from most of the fall season to sparsely run in '08 as well. Studios and talent agencies are laying off staff and losing 160 million per week from mothballed TV shows According to Bill Carroll, KTVG's Vice President/Director of Programming, the reviews of the programming department are determined by market forces and industry trends.
www.RBR.com
Station trading in the
3rd Quarter of 2007
Few industry movers and shakers are as handcuffed to the regulatory environment in the same way that M&A players in the broadcast field are. Radio deregulation that was included in Telecom 1996 spawned an Oklahoma Land Rush for radio stations in the top markets. At the same time, the lack of any meaningful dereg for television trading put it into the doldrums.As a result, top-market radio trading remains becalmed. Meanwhile, a couple of years ago, traders sitting on TV properties gave up waiting for the FCC finally started making deals again, and it was a good thing, as the FCC declined once and for all to offer any dereg to the industry last December. So after years of radio dominance in station trading, television is taking over. And the big money is coming not so much from stations changing hands, but from station groups retreating from Wall Street and going private.
www.RBR.com
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RBR Classifieds
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Hard finding that key person
to fill the important position at your organization? RBR Classifieds, Results with Service. Contact April McLynn at [email protected]
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