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Welcome to RBR's Daily Epaper
Volume 24, Issue 147, Jim Carnegie, Editor & Publisher
Monday Morning July 30th, 2007

Radio News ®

Soft quarter for Clear Channel
CEO Mark Mays says Clear Channel Radio outpaced the industry with revenues up 1% to 918.4 million bucks. CC Outdoor did much better, with revenues up 12% to 836.7 million. On the bottom line, earnings were 42 cents per share, missing the Wall Street analysts' consensus by two cents. The results had little impact on Clear Channel's stock price, since investors are focused on the pending buyout by Thomas H. Lee Partners, Bain Capital and the Mays family. Because of the pending transaction, Clear Channel executives did not conduct a conference call with analysts. Clear Channel credited the increase in radio revenues to gains by its syndicated radio programming, traffic and online businesses, with its mid-size radio markets also contributing to growth. Looking ahead, though, the company said radio is pacing down 1.5% for Q3 and 0.2% for all of 2007. Bank of America analyst Jonathan Jacoby told clients that while Q2 radio revenues were better than expected, the outlook is weak and showing a weakening trend. Based on the guidance in Clear Channel's Q2 release, he sees Q4 pacing down around 3% following the 1.5% down trend for Q3. But he maintains his buy rating because it appears the buyout deal is still on track.

RBR observation: What about Less is More, you ask? It is getting a bit more difficult to compare current quarters to the pre-LIM numbers because of radio divestitures - 389 stations under contract thus far which are now counted as discontinued operations and excluded from the quarterly revenue tally. The pro-forma number for Q2 a year ago was down 73.5 million from what was actually reported. If we subtract that from Q2 2004, before LIM, the target for the quarter was 923.3 million, so Clear Channel Radio revenues were still down nearly five million from pre-LIM levels.

House tries to decriminalize campaign ad infractions
Mike Pence (R-IN) successfully managed to get a provision through the House of Representatives that would prevent the Department of Justice from pursuing criminal enforcement of campaign advertising regulations. They would still be vulnerable to civil enforcement by the FEC. The bill is an amendment to a spending measure. According to the Associated Press, the measure passed by a 215-205 vote, indicating a certain amount of Democratic support. However, AP notes that unnamed members of the Senate have vowed that it would not survive there. The Bipartisan Campaign Reform Act is closely associated with John McCain (R-AZ) and Russ Feingold (D-WI). The move comes after the Supreme Court weakened part of BCRA limiting corporate and union sponsorship of issue ads in the weeks before elections. Pence said it avoids pursuing criminal penalties against citizens for exercising their right of free speech. Elections watchdog Fred Wertheimer of Democracy 21 said the move, which he said denies DoJ the funding it needs to enforce rules on the books, was irresponsible.


Advisory Council wants consistent
PPM message to advertisers

The Arbitron Radio Advisory Council (RAC) meeting which wrapped up Friday in Charlottesville, VA was "very productive" in the view of RAC Chairman Steve Sinicropi, VP/GM for Cox Radio in Greenville, SC. With the Portable People Meter (PPM) now deployed in two markets, Philadelphia and Houston, with many more to come, the RAC is committed to marketing the advantages of PPM to ad buyers. Sinicropi said the council doesn't want buyers to be confused by the new ratings currency and for them to make the proper adjustments to buying based on PPM ratings. He also noted that Arbitron has demonstrated to the RAC that it is committed to achieving proper representation of all demographic groups with PPM. But PPM wasn't the only topic. Most markets will still have diaries and Sinicropi said the council is focused on confidence in both currencies, diaries and PPM. The RAC has been calling for larger sample sizes in smaller markets and 42 small markets are now due to get larger diary samples this fall at no additional cost. And Arbitron is introducing a new qualitative product for small markets. Also, in three larger markets which will not immediately have PPM, Arbitron is recommending larger diary samples. Those markets are Atlanta, Memphis and West Palm Beach. Arbitron will be meeting with broadcasters in those markets to discuss its proposal for larger samples. Radio isn't just AM and FM anymore. The RAC has asked Arbitron to be prepared to offer "alternative audio reporting" no later than April 2008 to measure radio listening by the Internet or whatever other outlets may carry the programming. A surprising new issue that has developed is possible tax consequences from electronic data delivery, with stations perhaps getting hit with out-of-state tax bills for use of their ratings data. "It's very confusing," Sinicropi said. The RAC has asked Arbitron for a clear explanation of the tax consequences related to electronic data delivery.


Republicans balking at CNN/YouTube debate
CNN and YouTube recently hosted a ground-breaking South Carolina debate featuring all eight Democratic presidential candidates taking questions directly from potential voters. A similar format is scheduled for the Republicans in Florida 9/17/07, but much like the Democrats have been with Fox News Channel, the Republicans seem allergic to the CNN/YouTube format. So far, only two Democrats have agreed to a FNC September debate, Joe Biden (D-DE) and Dennis Kucinich (D-OH), and CNN/YouTube only has two Republicans, John McCain (R-AZ) and Ron Paul (R-TX). The Washington Post reported that Rudy Giulinia (R-NY) was unlikely to attend and that Mitt Romney (R-MA) had serious reservations about the format. A Republican National Committee member is worried about a general snub of the event. He said it's one thing to snub reporters, who many Republicans think have a liberal bias anyway, but he didn't think it was a very good idea to snub actual citizens.

Republicans, Salem team up in TX campaign event
The Townhall.com Presidential Straw Poll will be held 8/31/07 at the Fort Worth Convention Center. It's a collaboration of the Republican Party of Texas, Townhall.com and Townhall parent Salem Communications. Salem, which specializes in religious and conservative programming, will "provide a local and national platform for the presidential straw poll though Dallas/Ft. Worth's News Talk 660 K-SKY, Salem Radio Network." Salem's Hugh Hewitt will hold his radio show on site and Townhall.com will run candidate speeches, and will provide a national portal for conservative citizens to participate in the event. K-SKY/KWRD-FM VP/GM Pete Thomson said, "This straw poll will help define a presidential front-runner and K-SKY's is excited to be part of this historic event."

Report:
Imus settlement at hand

Fired radio host Don Imus is close to settling his impending 120 million bucks lawsuit against former employer CBS, according to Friday's New York Post. The newspaper says negotiations on the settlement are all but finalized, but CBS is dragging its feet until it can sign a contract with former NFL star Boomer Esiason to take over the I-Man's old slot on WFAN-AM New York. That's reportedly because CBS wants to keep open the possibility of an Imus return until it has Boomer safely under contract. No word on the amount of the settlement being discussed, but the Post quotes a source as saying they would much rather be on the Imus side of the negotiations. Imus had about 40 million remaining on his contract when CBS fired him for using a racist comment when referring to the Rutgers women's basketball team. But the I-Man's lawyer has made it clear in public statements that the contract - which still hasn't been seen since the lawsuit hasn't actually been filed - didn't allow for his client's dismissal under such circumstances. In addition to the 40 million paycheck, Imus claims that losing the WFAN show, which was also syndicated nationwide, has reduced sales of products to fund his charities, leading to the total claim of 120 million. The Imus radio show had also been simulcast on MSNBC, which moved first to fire him before CBS. MSNBC has not yet named a permanent replacement for the time slot.


Wall Street Media Business Report TM
Global Traffic Network sells stock
Having sold its IPO in 2006 at five bucks per share, Global Traffic Network has now priced an offering of 4.5 million additional shares at 6.25 each. Although corporate HQ is in New York, Global provides radio and television traffic reports on a barter basis only outside the US. It currently operates in Australia and Canada and is preparing to launch in Europe. Westwood One is a major shareholder and handles ad sales for Global in the US. Former WW1 CEO Shane Coppola is a member of the Global board of directors.


Ad Business Report TM

New marketing boss for Coke
The Coca-Cola Company has named Joseph Tripodi to the position of Chief Marketing and Commercial Officer, reporting to President and COO Muhtar Kent. Tripodi was most recently Sr. VP and Chief Marketing Officer for Allstate Insurance Company, but he is no stranger to the beverage industry. He served as Chief Marketing Officer for Seagram Spirits & Wine Group from 1999 to 2002. His diverse resume also includes stints with The Bank of New York, Mobil Oil and MasterCard International. By the way, he was the chief architect for the "Priceless" campaign at MasterCard. "I've always greatly admired The Coca-Cola Company and its brands and, like many others, have watched from the sidelines as they embarked on a transformational program to revitalize their business. It's a great honor for me to partner with such a strong and creative management team and to help contribute to future growth through successful alignment of the Marketing and Commercial Leadership functions," said Tripodi.

Carat reorganization
Carat USA and Carat Fusion, the digital marketing operation, have merged and will now carry the name Carat. The move is intended to meld traditional media and digital marketing. Sarah Fay, from Carat USA, is CEO and Scott Sorokin, from Carat Fusion, President. Carat USA President Ray Warren is leaving "to pursue his passion for content marketing," with no word yet on exactly where that will be. "Our clients are thirsting for a new model of communications that melds both traditional media and full service digital marketing capabilities to effectively achieve business goals. We are creating the first fully integrated, consumer-centric, on/offline marketing communications agency of this size, scope and scale. Never before has there been one company with this range of digital and offline capabilities, this consumer insight prowess and this degree of scale and strategic approach to managing a client's media and marketing business. We are now in a position to provide our clients with a holistic solution, supported by data and led by consumer insight, which connects every touch point and channel for their brands seamlessly," said Carat America CEO David Verklin.


Media Business Report TM
Echo/amplification chamber in full working order
The Project for Excellence in Journalism Talk Show index for the week of 7/15-20/07 revealed the typical weekly pattern. Talkers took the top news stories and concentrated on them to a greater extent than news operations could. They took #1 Iraq policy from 14% up to 19%, #2 2008 campaign from 9% to 13%, and #3 domestic terror from 6% to 10%. At this point, talker interest diverged from the news. As a group they made the immigration #4 topic, but as PEJ notes, Lou Dobbs is liable to fuel this issue on his own in any given week. And talkers were still hot on trail of an issue close to their hearts, the Fairness Doctrine, devoting 5% of their time to it.

Women rule
That's what American Women in Radio and Television says, at any rate. And where they rule is in sales and marketing. The group recently announced its fourth annual list of the top 25 "rulers" as voted by AWRT members. Mary Bennett, Radio Advertising Bureau; Cathy Bradbury, Univision KUVN; Erinn Carter, NBC5 Chicago; Norma Cox American, Public Media; Paula Doyle, Oxygen; Kimberly Fletcher, KDAY-FM; Sarah Frazie, CBS Radio; Mary Beth Garber, Southern California Broadcasters Association; Sherree Haevischer-Pence, WFAA TV; Laura Hagan, Univision Radio National Sales; Wendy Jones-Hayes, Katz Radio Group; Nancy Kahn, ABC Radio Sales, Interep; Suzanne Kolb, E! Networks; Ann Leary, Clear Channel Katz Advantage; Val Maki-Candido, Emmis Communications; Karen Miller, CBS Radio Sales, Interep; Peggy O'Neill, Continental Television Sales; Juleann Pasqualini, Continental Television Sales; Bonnie Press, Clear Channel Katz Advantage; Mary Pultorak, Clear Channel Radio Sales; Ellen Schned, CSTV: College Sports Television; Christi Swanner, Asher Media; Christine Travaglini, Christal Radio; Terri Walker, KTUL TV; & Molly Wythes, Clear Channel Katz Advantage


Media Markets & Money TM
Churchill takes over Boise AM
Suzanne Arlie's Churchill Media is turning a rental arrangement dating back to late April into ownership situation. She has a deal with Robert E. Combs for KDJQ-AM, serving the Boise market from its city of license of Meridian ID. The price is 962.5K cash less 14,170.42 already paid on seller's bank note, 14K for rent due on tower plus additional payments to bank partially credited to the purchase price. Churchill also has stations in Oregon.


__FIRST__ __SECOND__,
here is another transaction brokered by Kalil & Co., Inc.


Washington Media Business Report TM
Cumulus Tallahassee cluster
takes 20K FCC hit

An informal objection to the license renewals of five Cumulus Media radio stations in the Tallahassee market has been denied by the FCC, but underlying problems with the clusters public files at two of them have caused the cluster to deal with a lighter wallet. The complainant was Peter B. Fulton, and he actually went after five of the stations in the cluster, but three had already received license renewals, leaving WHBX-FM and WWLD-FM vulnerable. In both cases, the stations' public file was found to be lacking program/issues lists. Fulton had requested to see them and was unable to (they were said to be on a cluster employee's desk being updated at the time), and that was the basis of his informal objection to the renewals. In its application for the renewals, Cumulus had indicated that its public files were up to regulatory snuff, but the stations were still missing the program/issues information when FCC inspectors showed up. Cumulus was deemed to have served the public interest, so the licenses were renewed, and Cumulus was hit with a total of 20K in fines.


Entertainment Media Business Report TM
Syndication One into outer space
Radio One already programs one Urban music channel on XM Satellite Radio. Now its Syndication One News/Talk Radio Network is putting three of its programs up on the bird as well. Effective August 13th, XM will carry Rev. Al Sharpton's "Keeping It Real," The 2 Live Stews and The Warren Ballentine Show. "The launch of our three Syndication One Shows on XM Channel 169, The Power, gives these programs the nationwide reach they truly deserve. We are thrilled that we were able to partner with XM to extend these shows to new audiences all over the country," said Zemira Jones, VP of Operations for Radio One. Launched in January 2006, Syndication One programming airs on 25 local news/talk stations across the country.


TVBR TV News
Four killed in
news copter collision

A mid-air collision between two TV news helicopters in Phoenix left four men dead Friday. Crews from several stations were covering a police chase when the helicopters of Belo's KTVK-TV (Ch. 3, Ind.) and Scripps' KNXV-TV (Ch. 15, ABC) collided in the air and both fell in flames into a city park. The crash killed KTVK pilot-reporter Scott Bowerbank and photographer Jim Cox and KNXV pilot-reporter Craig Smith and photographer Rick Krolack. No one on the ground was injured. It is believed to be the first time that two TV news aircraft have collided in the US while covering a story. The National Transportation Safety Board (NTSB) is investigating the cause of the crash.

"It appears as though the Channel 3 helicopter was stationary and the Channel 15 helicopter either came up from under the Channel 3 helicopter or was at the same level. We can't tell because it's eyewitness testimony. One appeared to be relatively stationary, and one was moving and that's how the collision took place," said NTSB spokesman Steve Chealander in a story posted by KTVK. NTSB has been seeking video and photos from the media and general public, along with eyewitness accounts, to determine how and why the helicopters collided. The man who was the subject of the police chase was arrested after the crash and charged with theft, assault and resisting arrest. He is being held on one million bucks bond and may face additional charges related to the helicopter crash. Both stations have invited viewers to post condolences on their websites. A joint memorial service for Bowerback and Cox is planned for tomorrow, one for Smith on Thursday and one for Krolak on Saturday. "NAB and the entire broadcast family mourn the loss of the journalists killed in the tragic Phoenix helicopter collision. Broadcasters take seriously our role as first informers in providing viewers and listeners with breaking news and emergency information. This incident serves as a sobering reminder that the noble profession of journalism can often carry special risks," said NAB President David Rehr in a statement.


Monday Morning Makers & Shakers

Transactions: 6/11/07-6/15/07
There were 15 trades of varying sizes, albeit all on the relatively small side, but they were enough to at least get total trading back into double-digit millions after an off week. Seven different transactions topped 1M, indicating a reasonably healthy appetite for stations in the smaller markets of America.

10/2/06-10/6/06

Total

Total Deals

15

AMs

8

FMs

15

TVs

0
Value
16.057M
| Complete Charts |
Radio Transactions of the Week
Bonneville spinner goes to Douglas
| More...
|
TV Transactions of the Week
The TV nap continues



Transactions
18,780,503 WGXA-TV Macon GA (Fox, Ch. 24, DT 16) from Piedmont Television of Macon License LLC, a subsidiary of Piedmont Communications LLC (Paul Brissette) to Fox24 of Macon LLC, a subsidiary of Frontier Television Investors LLC (Jason R. Wolff). 939,025 escrow, remainder in cash and assumed liabilities. [File date 7/6/07.]

15M WNTD-AM Chicago IL from Multicultural Radio Broadcasting Licensee LLC (Arthur S. Liu) to Sovereign City Radio Services LLC (Mark C. Follett). 10M deposit, 750K escrow, balance in cash at closing. Superduopoly with WAIT-AM Willow Springs IL, WWCA-AM Gary IN. [File date 7/9/07.]

350K WCCE-FM Buies Creek NC from Campbell University Inc. (James O. Roberts, VP) to Radio Training Network Inc. (Michael Watkins, James L. Campbell, Lee Freeman, George Ready, Dan McBride, Larry Maxwell). 10K escrow, balance in cash at closing. Non-commercial. LMA until closing. [File date 7/4/07.]


Stock Talk
Sell-off runs to second day
The government's GDP report on Friday was good, but that wasn't enough to stop the stock sell-off that began on Thursday, prompted by fears about borrowing costs. The Dow Industrials fell 208 points, or 1.5%, to spend the weekend at 13,265.

Radio stocks fell again. The Radio Index dropped 3.557, or 2.4%, to a year-to-date low of 142.938. Clear Channel was one of the few gainers, up 0.5% after issuing its Q2 results. Salem had the worst day, down 8.6%.


Radio Stocks

Here's how stocks fared on Friday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

48.84

-1.06

Google

GOOG

511.89

+3.89

Beasley

BBGI

8.67

+0.06

Hearst-Argyle

HTV

20.94

+1.01

CBS CI. B CBS

32.70

-0.05

Journal Comm.

JRN

10.67

-0.52

CBS CI. A CBSa

32.75

-0.06

Lincoln Natl.

LNC

60.62

-1.95

Citadel CDL
5.35 -0.03

Radio One, Cl. A

ROIA

6.52

-0.22

Clear Channel

CCU

36.95

+0.20

Radio One, Cl. D

ROIAK

6.49

-0.30

Cox Radio

CXR

12.91

-0.22

Regent

RGCI

3.42

+0.01

Cumulus

CMLS

10.32

-0.30

Saga Commun.

SGA

8.15

-0.45

Debut Bcg.

DBTB

1.80

unch

Salem Comm.

SALM

8.96

-0.84

Disney

DIS

33.74

-0.34

Sirius Sat. Radio

SIRI

2.89

-0.02

Emmis

EMMS

7.83

-0.33

Spanish Bcg.

SBSA

3.40

-0.03

Entercom

ETM

23.21

-0.16

SWMX

SMWX

0.12

-0.03

Entravision

EVC

9.62

-0.38

Westwood One

WON

5.25

-0.01

Fisher

FSCI

46.69

-2.29

XM Sat. Radio

XMSR

11.02

-0.11


Bounceback

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Below the Fold
Ad Business Report
Carat reorganization
Carat USA & Carat Fusion, the digital marketing operation, have merged...

Media Business Report
Echo/amplification chamber
In full working order revealed the typical weekly pattern...

Media Markets & Money
Churchill takes over Boise AM
Turning a rental arrangement into ownership situation...

Washington Media Business Report
Cumulus Tallahassee cluster
Takes 20K FCC hit stations' public file was found to be lacking...




Stations for Sale

Colorado
FM CP, Class C3
Transmitter, Antenna,
Tower Lease included
Gordon Rice Associates
(843) 884-3590 or
E-mail Gordon Rice Here

New Hampshire
AM/FM combo

First Class facilities in NH's
fastest growing area. Double
digit increases last 6 years.
Priced at 10x trailing BCF $4.99MM
Inquiries 781-848-4201 or
E-mail: [email protected]
WEB: radiostationsforsale.net

MCH Enterprises, Inc.
CA Coast FM: $1.5M
NV Boomtown: $895K
www.mchentinc.com
805.680.2265 (cell)

Market your Stations For Sale
in our daily epapers.

Contact
June Barnes
[email protected]


Radio Media Moves

Carlston to Belo board
Public Radio International Chairman Douglas Carlston has been elected to the board of directors at Belo Corp., which owns newspapers and TV stations. Carlston is also CEO of Tawala Systems, an Internet technology company that he co-founded in 2005.

New director for Fisher
Michael Wortsman, the recently retired president of Univision Television Group, has been named a director of Fisher Communications. "The Spanish-language audience is the fastest growing media market in the United States today, and within the last year Fisher has made key strategic acquisitions to capitalize on this opportunity," noted Fisher CEO Colleen Brown in welcoming Wortsman to the board of directors.




More News Headlines

Bancroft tally due today
We should find out today how the various factions of the Bancroft family feel about the idea of selling Dow Jones & Company, including the Wall Street Journal, to News Corporation and Rupert Murdoch. The WSJ reported considerable lobbying within the far-flung family which controls 64% of the voting power of Dow Jones. One Bancroft cousin who backs the sale sent around a long letter calling for a "reality check" on what would happen to the company if it is not sold. It is believed that support from about half of the Bancroft shares are needed for the News Corporation bid of five billion bucks to win acceptance in a vote by all Dow Jones shareholders.

Russ Ragan killed
in plane crash

WTVY-FM Dothan, AL agriculture show host Russ Ragan, 44, was killed Thursday when the small plane he was piloting crashed in rural Florida near the Alabama state line. His seven-year-old passenger, said to be a family friend, was taken to a hospital and soon died as well. Ragan was a second generation broadcaster, following in the footsteps of his father, Gene.

Kerry deputizes America as copywriters
John Kerry has an organization called Keeping America's Promises, and its joining with political action group MoveOn to come up with copy for a radio ad which will be used to target Republicans. The rules: write a 0:30 second script (described as about 65 words). Kerry and KAP will pick the top 20, a vote will determine the #1 script, and it will be produced and aired in Republican states. MoveOn will accept donations to purchase airtime, and donors will be able to suggest a state in which the ad should air. Deadline for submissions is 8/11/07.


International

Radio recession declared a thing of the past
A two year slump in radio revenues is said to be over, and a leading radio group was able to record a 14% gain in advertising revenues in July, according the Times Online. But the company's CEO tempered his remarks, saying, "I'm cautiously optimistic, but I can't say I'm doing cartwheels around Leicester Square." The group is GCap Media, and the Times in question is based in London and the CEO in question is Ralph Bernard. After sluggish growth patterns, GCap had several positive numbers to report, but still sees a difficult economy ahead. Radio was said to be a "leading indicator in media" with short lead times in air time acquisition viewed by many as "a more discretionary investment."


SmartMedia Magazine


Coming in September
FALL NAB ISSUE
SPECIAL DISTRIBUTION:
NAB RADIO SHOW

Media Markets and Money:
What's attractive to equity capital these days?

Ad Biz:
Gennele Niblack, Katz Political President

Sales:
Dial Global's Eileen Decker on radio ad sales

News/Talk:
Using your website to get, keep and grow your audiences

HD Radio:
Monetizing Conditional Access

New Media:
Gary Arlen: YouTube, Joost and the emerging Fox-NBC website are just the start of big bandwidth video via the Internet.

Streaming:
The impact of CRB Royalty rates on webcasters and streaming ads.

For advertising
information, contact:

June Barnes
[email protected] 803-731-5951;
Jim Carnegie
[email protected] 813-909-2916 or
Carl Marcucci
[email protected] 703-492-8191.


RBR Radar 2007
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

David Rehr's pen pals
You'd never know it's the summer doldrums in Washington, particularly if you're trying to keep up with NAB President/CEO David Rehr. He's been blanketing the city with mail lately, firing off a letter on XM/Sirius to the FCC, another letter on the DTV transition to the Senate Commerce Committee, and yet another letter on streaming audio royalties to no less a dignitary than President George W. Bush. Rehr told Kevin Martin and the other Commissioners that late XM/Sirius promises are "...designed to dress up the proposed merger-to-monopoly as a benefit to the public. But you can't make a silk purse from a sow's ear."

RBR observation: Our recommendation to David is keep a high level of caffeine and keep up the pressure. More details on Rehr's pen pals in RBR.
07/27/07 RBR #146

Watchdogs, some senators
have DTV doubts
By and large, representatives from the NTIA and FCC think that the groundwork for the DTV transition is going forward as it should. But a number of member of the Senate Commerce Committee aren't so sure, and members of the watchdog community also have some questions.

TVBR observation: Note more details in TVBR but here is our take in a nutshell. We're with Sununu. He noted that broadcasters and other interested parties have their economic health at stake and he is sure that motivation will get them working toward a smooth transition. He also noted the possibility that the 1.5B or so allocated for converter coupons may wind up being more than is needed to meet demand. We don't know that we'd go that far, but it certainly is a possibility. Amy Klobuchar (D-MN) asked about targeting analog-only TV users. Seidel talked about various outreach efforts, but the simple answer is that people who watch TV will find out what they need to know by watching TV. They will be self-targeting.
07/27/07 TVBR #146


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