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Welcome to RBR's Daily Epaper
Volume 22, Issue 148, Jim Carnegie, Editor & Publisher
Friday Morning July 29th, 2005

Radio News®

XM raises expectations
After beating its own guidance for adding satellite radio subscribers in Q2 - - adding 647,226 for a total of 4.4 million - - XM is now telling Wall Street it will have six million subs by the end of this year, up from its previous target of 5.5 million. CEO Hugh Panero Audio Link declared that consumer adoption of satellite radio is outpacing new products of the past. Adding new subscribers is still a costly proposition, but XM said its cost per new subscriber in Q2 was 98 bucks, an improvement from 101 a year ago. The company is now predicting that it will be cash flow break even by the end of 2006.

RBR observation: OK, so they've forgotten that four million subscribers was supposed to be the magic number to go cash flow break even. Investors apparently don't care that the target has now been moved closer to 10 million. We continue to be the only ones who see churn as already a big problem for the satellite radio guys. XM insists that churn remains "low" at 1.4% per month, or nearly 17% a year - - already higher than the 15% they promised investors for a mature business, which is still several years away. Amazingly, XM said yesterday that six out of 10 people who buy new cars with XM receivers installed are continuing to buy the service once the trial period built into the sticker price expires. That's a 40% churn rate for OEM sales! And XM is pitching that as a good thing? We don't get it.

Looking ahead at Beasley
Executives at Beasley Broadcast Group are not expecting to be able to build significantly in the short term after posting positive results in Q2 2005. Although the company claims to be generally outperforming the competition, several factors over and above the flat landscape for radio comps are expected to keep the company's results flat as well, particularly in Q3. One big factor is the lack of political advertising, which accounted for 350K in Q3 income and 1.1M in Q4. This will be felt hardest in Las Vegas. Another factor is the company's decision to sever its relationship with the Miami Dolphins. A final factor is a 100K NTR event which has been moved from Q3 last year to Q4 this year. Beasley expects that increased revenue from more traditional sources will be enough to offset these losses and bring the group in flat with Q3 2004. In general, July pacing was said to be soft, with a bit of a lift in August and an even better September.

Senators and would be senators gearing for 2006
The Federal Election Commission says that 85 Candidates for the US Senate in the 2006 election cycle have already raised 84.8M and spend have already spent 20.2M with Election Day still a year and a half out. The last time these particular seats were up for grabs, the mid-point of 1999 heading into 2000, there were 73 candidates with 50M raised and 12.2M spent. The numbers rose during each of the other two campaigns after the Class of 2000 was seated. At mid-point 2001 heading into 2002, 56 candidates pulled in 43M and spent 9.3M, and at mid-point 2003 heading into 2004, 63 candidates had raised 75.6M and spent 18.4M. Following are cash on hand totals for announced candidates.
| View the Chart |


Radio's stake in the Burns bill battle
TV station owners and ad buyers have a clear stake in whether or not Congress passes S.1372, the bill proposed by Sen. Conrad Burns (R-MT), to regulate TV ratings. But RBR has covered the issue all along because we know how Washington works - - if TV gets hit with new regulation today it's very easy for Congress to decide to add radio to the mix tomorrow, claiming "fairness" if nothing else. As we noted in our story yesterday (7/28/05 RBR #147), Arbitron weighed in against the bill, even though it would currently not affect its radio ratings business. Instead, it endorsed a voluntary code of conduct, which is currently under development by members of the Media Rating Council (MRC). "Arbitron has worked with the Media Rating Council for over 40 years, since the early days of its formation as the Broadcast Ratings Council. As a company, we have invested millions of dollars and countless hours of staff time on the MRC audit process, working closely with the MRC staff to earn accreditation for our currency products and services. Arbitron strongly supports the MRC's mission and continues to recognize the value of its accreditation process," said Arbitron CEO Steve Morris. Arbitron listed several reasons why it wants a voluntary code, along with several things its sees wrong with the Burns bill. Among the benefits of the proposed "Voluntary Code of Conduct," cited in the Arbitron comments: | More... |

RBR observation: We've warned all along that if more government regulation is piled on the TV industry today, radio is likely to be hit with the same a few years out. That's obviously a concern for Arbitron. Also, a company spokesman notes, Arbitron is hoping to get Nielsen to become a partner in its Portable People Meters, which would then be subject to the new law covering TV ratings - - that is, if the bill becomes law. Since not a single Senator besides Burns showed up for Wednesday's hearing on his bill - - not even his three co-sponsors - - it seems unlikely that S.1372 is going to be high on the priority list of the Republican leadership this session. Getting Nielsen to sign onto an MRC code of conduct, which it has agreed to in principle (ah, but the devil is in the details) seems like a much more likely course for progress than banking on congressional action anyway.

What ratings are MRC accredited?
Here's been much discussion lately of Sen. Conrad Burns' (R-MT) bill which would make Media Rating Council accreditation mandatory, at least as far as TV ratings are concerned. So we wondered what ratings services are currently accredited. According to a list on the MRC website, 27 services are currently accredited for measuring radio, TV and other media, although the list has not yet been updated to include Nielsen's San Francisco Local People Meters. Unlike other MRC-accredited services, LPMs are currently being accredited on a market-by-market basis. | Here's the list |

Judge says Comcast suit is for the Birds
A lawsuit launched against MLB's Baltimore Orioles by cable giant Comcast has been tossed by a judge in Montgomery County MD. The Orioles are planning their own start-up regional sports network. Comcast, which carries the Orioles on its own regional sports channel, said it had the right to match any offer for carriage of the team's games. The Oriole's planned channel will carry both the Orioles, beginning in 2007 when the Comcast contract runs out, and the new Washington Nationals, recently transplanted from Montreal. Comcast has declined to carry Nationals games as the dispute has been played out, other than those which make it onto Comcast systems via broadcast channels. According to bizjournals.com, the Orioles are confident that the Comcast challenge is frivolous, and Comcast is confident they'll prevail on appeal. They have 30 days to file an amended complaint.


Conference Calls Q2 2005
High-flyin' Philly fortifies Beasley Q2
Beasley's high-flying Fort Myers cluster joined Philadelphia as a major factor in bringing the Beasley Broadcast Group into to black for Q2 2005, compared to the same quarter a year ago. The good performance in these and other markets helped offset results from a challenging competitive environment in Augusta GA. Consolidated net revenue was up 7% to 33M, compared to 31M in Q2 2004, and operating income was up from 8M to 8.1M, a 2% gain. Station operating income went from 10.2M to 10.8M, a gain of 6%. YTD, consolidated net revenue is up 8%, and station operating income is up 1%. Bruce Beasley said that a 21% increase in retail advertising has been a big factor in the flow of black ink, along with a 5% increase in automotive business. Restaurants, banks and television were also on the rise, helping to offset weakness in the beverage and telecom categories.

Up quarter for Jeff-Pilot
Parent Jefferson-Pilot Corp. reports that Q2 earnings for its Jefferson-Pilot Communications subsidiary were up 9% to 15 million, with broadcast cash flow up 600K to 27.8 million. The company will provide more details today in its quarterly conference call.

Hearst-Argyle on target
Thanks to a pair of one-time tax benefits, Q2 earnings nearly doubled at Hearst-Argyle Television (and 2 radio stations) to 68 cents per share, against 37 cents a year ago. But without the tax man pitching in, that figure would have been 30 cents, pretty much in line with what Wall Street had been expecting. Q2 revenues were down 4.8% to 188.5 million. "As expected, the combination of a relative absence of political spending in Q2, and a decrease in network compensation, contributed to a revenue decrease during the period," said CEO David Barrett. The company is now projecting that Q3 revenues will be 163-172 million, down from 194 million a year ago. That guidance was toward the low end of analysts' expectations.

XM revenues up, red ink down
As it rapidly adds new subscribers and reduces the costs associated with acquiring each new customer, XM Satellite Radio is moving closer to cash flow break even - - but it still has a long way to go. For Q2, revenues show up 136% to 125 million. That reduced the EBITDA loss to 89.9 million from 107.8 million. The company's operating loss, however, rose to 127.1 million from 112.9 million in Q2 of 2004, largely because of increased programming and marketing costs. The net loss attributable to common shareholders decreased to 148.8 million from 168.2 million a year go.


Adbiz©

David Verklin on ROI:
Return on Investment
RBR/TVBR recently asked David Verklin, CEO of Carat Americas, What is the future of ROI measurement?

"There are a number of companies - - IFX, Avista, probably Bearing Point, Veridium - - all of us have the same vision on ROI, which is to make it real time, and on-demand. I want to know what's working, but I want to know it's working right now. So right now the ROI techniques give us a backwards look. You ran a schedule, we do the analytics and you're able to say, 'OK, here's what you've got for that spending, but it's a bit of a rear-view mirror.' You want a terminal on your desk with your sales data coming in and your media schedule as it's running, coming in and analytics being done in real time that gives you the ability to have some sense of what's working and what's not working in the marketplace in real time so you can make adjustments. That's the future of ROI as sure as the nose on my face."
| More... |

Gap campaign links jeans to music
A number of popular music stars are going to be part of an upcoming Gap television and print-based marketing effort, as will iTunes Music Store. In phase one, customers who try on a pair of jeans at a Gap store will receive a free iTunes song download. Then eight musicians will do a cover of one of their favorite songs, while also promoting their favorite style of jeans. This effort, which includes offerings from Alanis Morissette, Joss Stone, John Legend, Michelle Williams, Jason Mraz, Keith Urban, Brandon Boyd and Liz Phair, will get special attention on MTV, participating in the MTV Video Music Awards 8/28/05. All but the Liz Phair cut will also be part of a limited edition CD.

RBR observation: This would be a natural for radio, too. Maybe some smart, enterprising radio sales wizards can find an angle here to exploit.

Hispanic marketing guide in the works
"2006 Top 50 Hispanic Markets Report: Your Retail & Foodservice Guide to Hispanic Marketing" is set for a 9/28/05 release date. Coming from publisher Chain Store Guide, it will carry a hefty pricetag - - 675 dollars gets you a searchable CD ROM with a free print version tossed in. It's designed for retailers, but should be of interest to broadcasters who want retailers on their client list. Chain Store has put out some fun prepub facts. For example, disposable income among Hispanics has jumped to 715B, amounting to a 29% increase over the total in 2001, doubling the pace of the general public. By mid-century, the total number of Hispanics in the US is expected to reach the 25% point, with 96M individuals. Finally, Hispanic buying power is said to be expanding at the rate of 118%, reaching 1 Trillion by 2008. Chain Store says "leading advertisers have almost doubled their advertising efforts targeted to Hispanics."

McDonald's takes marketing to DreamWorks
After a long run with Disney, McDonald's has announced a new worldwide marketing and promotion deal with DreamWorks Animation SKG. The first tie in between the fast food giant and the movie maker will be "Shrek 3," scheduled for release in 2007. Of course, tie-ins for the movie will include such signature McDonald' promotions as Happy Meals. "With today's announcement, McDonald's is adding DreamWorks to our long and rich tradition of offering customers the most exciting and relevant entertainment properties. DreamWorks Animation shares our commitment to quality, innovation and fun, and they've demonstrated an ability to reach moviegoers of all ages. We applaud their creativity and look forward to building unique and distinct promotions for McDonald's customers around the world," said McDonald's President Mike Roberts. While Disney is losing its exclusive ties to McDonald's, the other loser in this deal is Burger King, whose promotional deal with DreamWorks expires when the McDonald's deal kicks in.


Radio & Television Business Report

Radio's Important September Face Off
UpFront 2005 - will radio face the mild reception as Network TV? Top media agency buyers and network radio sellers participating so far: Kelly Cadotte, Natalie Swed Stone, ,Irene Katsnelson, Chris Fontana, Rich Russo, Matt Feinberg, Matthew Warnecke, Kim Vasey, and Lisa Opensky Greenberg.

And we go One on One with
Charles Courtier, Executive Chairman of Mediaedge:cia

The first and most respected morning business media Epaper today - RBR/TVBR the vehicle to reach the decision makers and players in your industry. 7:30am delivery of our Morning
RBR Epaper and TVBR Epaper is now the standard for quality news, analysis, and unbiased observations. Use RBR/TVBR as the vehicle to reach the decision makers and players in your industry.

Reserve your Ad Marketing Space today for NAB & UpFront 2006.
Advertising space is limited, contact:
June Barnes [email protected] -- or -- Jim Carnegie [email protected]


Media Markets & MoneyTM
Glickenhaus moves into CCU SD LMA
Finest City Broadcasting is getting into the San Diego radio business without buying any stations. The new company has cut a deal with Communicacion Xersa to handle programming, sales and marketing for across-the-border stations XETRA-FM, XHITZ-FM and XHRM-FM, bringing to an end a similar pact between the Mexican company and Clear Channel. Finest City is headed by market veteran Mike Glickenhaus, who has worked there for Clear Channel, and before that Jacor, and, going all the way back to 1980, for Noble Broadcast Group. The company, with backing from Evergreen Pacific Partners, will look for opportunities to add to the cluster.

Sacred Heart gets a Read on Spokane
Read Broadcasting Network license company KTRW LLC is spinning one of its Religion-formatted Spokane stations to another religious broadcaster, noncom Sacred Heart Radio Inc. KTRW-AM is coming in a 850K cash deal. Sacred Heart, headed by Ronald R. Belter, is new to the market, but not the radio business or the state of Washington. It already owns and operates KLBE-AM in Seattle. Sacred Heart is contractually obligated to change the call letters of KTRW at its earliest opportunity.


Washington Beat
Kerry wants to repurpose TV spectrum
Sen. John Kerry (D-MA) is all for getting on with the DTV transition and putting spectrum currently supporting side-by-side analog and digital TV transmission to other uses. Besides getting spectrum to first responders, he wants to give innovative uses such as wireless broadband a chance to expand. He also indicated a willingness to allow telcos into the video distribution business, citing consumer benefits whenever competition is allowed to flourish. Kerry was speaking at a Capitol Hill session on telecommunications policy hosted by The New Republic.

RBR observation: The first signs of pressure to bring the DTV transition to completion came from Republicans. Sen. John McCain (R-AZ) has been a long-time advocate, and Rep. Joe Barton (R-TX), chair of the powerful House Committee on Energy and Commerce, has also been a loud proponent. In Barton's case, it seemed to be all his colleagues could do to slow him down to a reasonable real life timetable. What is notable is the complete lack of Democratic opposition to the current timetable, geared to a 12/31/08 deadline. With almost no opposition, it is looking more and more like the real thing.

| Here is Kerry's excerpted comments |

Loflin fined for stray TV
Actually, it's one of the low power television stations that was hit by the FCC for 4K. The problem was exhibited by David M. Loflin's WLNI-LP. The Andalusia AL station was supposed to be operating on Channel 49, but instead seems to have slipped all the way down to Channel 25. The fine was levied by the New Orleans field office and has not been contested. Anadulsia is in the southern portion of Alabama just above the western portion of the Florida panhandle.


Programming
American Muslim group issues anti-terror PSAs
Saying that "Islam strictly condemns religious extremism and the use of violence against innocent lives," the Council on American-Islamic Relations (CAIR) announced its support at a Washington news conference for a fatwa (religious law edict) issued by an American Islamic law council (FCNA) that condemns terrorism and extremism. CAIR has now issued Audio Link radio PSAs in Arabic, Urdu and English that tie into the organization's "Not in the Name of Islam" online petition drive designed to disassociate the faith of Islam from the violent acts of a few Muslims. All are available on the cair-net.org website. Here is a summary of the fatwa.

"Islam strictly condemns religious extremism and the use of violence against innocent lives. There is no justification in Islam for extremism or terrorism. Targeting civilians' life and property through suicide bombings or any other method of attack is haram - or forbidden - and those who commit these barbaric acts are criminals, not 'martyrs'. . .In the light of the teachings of the Qur'an and Sunnah we clearly and strongly state: 1. All acts of terrorism targeting civilians are haram (forbidden) in Islam. 2. It is haram for a Muslim to cooperate with any individual or group that is involved in any act of terrorism or violence. 3. It is the civic and religious duty of Muslims to cooperate with law enforcement authorities to protect the lives of all civilians. We issue this fatwa following the guidance of our scripture, the Qur'an, and the teachings of our Prophet Muhammad - peace be upon him." Issued by the Fiqh Council of North America.


TVBR - TV News
NAB TV Board chair presses for Burns bill
It may be unusual for the NAB to invite more government regulation of the TV industry, but NAB TV Board Chairman Ben Tucker, acting CEO of Fisher Communications, insists that the association had no choice when it came to backing Sen. Conrad Burns' (R-MT) bill to regulate TV ratings by making accreditation by the Media Rating Council (MRC) mandatory for TV ratings services. "Nielsen is an out of control monopoly that pays only lip service to their biggest client. For them to say that the NAB action was based on greed is only slightly less out of touch than your supporting them," Tucker said, referring to TVBR's strong stance in opposition to the legislation. "The MRC was established as a resource to ensure that the best practices were put in place to get the highest quality ratings and Nielsen has decided that they will just ignore the request from their biggest client to work to solve their issues before launching and again under-reporting audiences," Tucker said. In his view, Local People Meters (LPM) amount to "flawed research" which will only serve to help the cable industry, which he notes pays only about one-fifth of what broadcasters do for Nielsen's ratings. Nielsen has insisted that it has to consider the needs of all of its clients, not just broadcasters, but also ad agencies and cable subscribers. That doesn't cut it with Tucker, since it's broadcasters who pay the overwhelming majority of the pricetag for ratings. "Until Cable and the Agencies have 'the same skin in the game' as broadcasters, they do not warrant the same consideration by the vendor when it comes to correcting the problem," the NAB TV Board Chairman insisted.

TVBR observation: As previously noted, we're not supporting Nielsen nor fighting the NAB. We are, however, opposing legislation that won't accomplish what its proponents want (higher broadcast ratings under LPM measurement), but will lead to higher costs and could have dire consequences down the road for the very broadcasters who are backing the bill today. Given that not a single Senator besides Burns showed up for Wednesday's hearing on his bill - - not even his three co-sponsors - - it seems unlikely that S.1372 is going to be high on the priority list of the Republican leadership this session. Getting Nielsen to sign onto an MRC code of conduct, which it has agreed to in principle (ah, but the devil is in the details) seems like a much more likely course for progress than banking on congressional action.


GM Talkback
What does EDI invoicing mean to you? Are you satisfied with your rep firm's progress to help with national sales using EDI?

Les Hollander, SVP/Regional Manager, Infinity Broadcasting:
Many of our customers have spoken up and requested EDI. While many of our stations have EDI capabilities, challenges still exist related to a third party universal platform. Much of the heavy lifting has been done and we are optimistic that our stations and customers will have compatible software soon. This will facilitate smoother transactions and result in more accountability for stations and faster payment from clients.


Transactions
975K KDVE-FM & KXAL-FM Tyler-Longview TX (Pittsburg, Tatum TX) from On-Air Family LLC/Hunt Broadcasting Inc. (James G. Hunt, Janice A. Hunt) to Waller Media LLC (Dudley Waller, Dorothy Waller). Cash less 1.6K monthly payment through 2/1/06. Superduopoly with KEBE-AM, KLJT-FM & KFRO-FM. LMA 2/25/04. [File date 6/24/05.]


Stock Talk
Strong earnings, strong prices
A series of strong Q2 earnings reports cheered Wall Street investors and drove both the S&P 500 and Nasdaq Composite to four-year highs. The Dow Industrials also gained, rising 68 points, or 0.6%, to 10,706.

Radio stocks were mixed. The Radio Index dropped 0.492, or 0.2%, to 208.546. That was mainly due to Beasley falling 5.3% after projecting a flat Q3. Hearst-Argyle, which also reported earnings, was up 0.9%. The day's best performer was Fisher, up 4.3%.


Radio Stocks

Here's how stocks fared on Thursday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

42.61

+0.03

Jeff-Pilot

JP

50.93

+0.60

Beasley

BBGI

15.05

-0.84

Journal Comm.

JRN

16.24

+0.24

Citadel CDL
12.44 -0.08

Radio One, Cl. A

ROIA

13.10

+0.03

Clear Channel

CCU

33.00

+0.38

Radio One, Cl. D

ROIAK

13.16

+0.08

Cox Radio

CXR

16.15

+0.05

Regent

RGCI

5.72

+0.18

Cumulus

CMLS

12.45

-0.18

Saga Commun.

SGA

14.40

+0.23

Disney

DIS

25.95

+0.12

Salem Comm.

SALM

20.47

-0.68

Emmis

EMMS

20.06

unch

Sirius Sat. Radio

SIRI

6.88

-0.09

Entercom

ETM

32.44

+0.09

Spanish Bcg.

SBSA

8.75

-0.09

Entravision

EVC

8.60

+0.10

Univision

UVN

28.47

+0.51

Fisher

FSCI

46.92

+1.92

Viacom, Cl. A

VIA

34.08

+0.07

Gaylord

GET

46.75

-1.40

Viacom, Cl. B

VIAb

34.00

+0.13

Hearst-Argyle

HTV

25.06

+0.22

Westwood One

WON

20.46

-0.01

Interep

IREP

0.57

unch

XM Sat. Radio

XMSR

36.93

+0.08

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]

On XM to buy WCS Wireless
(7/18 RBR #139):

Obviously this was their plan from the beginning and they've gotten support from the FCC (no opposition equates support) but why, in my estimation, has it become so difficult for the FCC to follow its own rules?

Anthony Carson

The threat from satellite radio is analogous to that posed by iTunes to the music and radio industry. Analog radio has responded by offering the Jack format, which appears to have been successful. But the threat remains and is likely to grow in strength. Fighting a battle on the regulation front will only be successful if there is also an effort to be competitive in content and local information.

Simon Lamb


Arbitrends

Arbitron
Market Results
| Colorado Springs |
| Columbus |
| Denver |
| Fresno |
| Portland |
| Puerto Rico |
| Seattle |



Upped & Tapped

Promotion in Sacto
Steve Cottingim has been named Senior Vice President and Market Manager for Infinity Sacramento. He currently serves as the General Manager of KNCI-FM and KHWD-FM and the SVP of Sales for Infinity's six station cluster in Sacramento. Cottingim succeeds Doug Harvill, who was recently named Market Manager in San Francisco
(6/22/05 RBR #122).

...and in Rochester
Infinity has promoted WRMM/WCMF General Sales Manager Al Casazza to Market Manager in Rochester, NY. He'll also serve as VP/GM of WCMF-FM, WRMM-FM, WZNE-FM and WPXY-FM.

Tingle takes to the air
Political humorist and former CBS "60 Minutes II" commentator Jimmy Tingle has been added to the on-air lineup of WKOX/WXKS-AM "Boston's Progressive Talk." His "Uncommon Sense" commentaries will air four times daily.

Title change for Zeni
Phillip Zeni Sr. has resigned as Chief Operating Officer of CRL/Orban in order to serve in the newly created position of Executive Vice President of Mergers and Acquisitions. No replacement as COO has been named.


Stations for Sale

Santa Fe Market #237
New market FM entrant ready to go! Santa Fe is a unique and rich market with a great opportunity for an aggressive, innovative operator!
Cliff at Clifton Gardiner & Co
(303)758-6900
[email protected]

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


More News Headlines

Execs named for
Super Session
If you're going to this year's NAB Radio Show in Philadelphia, here's who you'll be seeing on stage for the Group Executive Super Session on September 22nd: Ed Christian, President and CEO of Saga Communications; John Hogan, President and CEO of Clear Channel Radio; Joel Hollander, Chairman and CEO of Infinity Broadcasting; Mary Quass, President and CEO of NRG Media; and Charles Warfield, President and COO of ICBC Broadcasting Holdings.

Payola probe
claims another
Eliot Spitzer may be Attorney General of New York, but his payola probe has repercussions far beyond the Empire State. After being named in Spitzer's legal settlement with Sony BMG as having accepted travel and electronics from Epic Records, Blake Larson was reportedly given the heave-ho by Archway's WRHT-FM Greenville, NC.

Multicast triple-play
in Detroit

Greater Media now has all three of its Detroit stations broadcasting in HD Radio. Or, rather, make that six stations. Not only are WRIF-FM, WCSX-FM and WMGC-FM broadcasting their main channels in both analog and digital, each now has a multicast HD sister. WRIF2 "RIFF2" is a "made in Detroit" mix of alternative and indie rock, WCSX Deep Trax HD2 is a companion station with "Classic Rock treasures that may be a bit outside the radio musical norm," and More Magic is a soft AC, with Broadway and Jazz added in, plus familiar Classical music for overnights and weekends. There are no spots on the three new channels, but rather on-air sponsorships.






July Digital Magazine
Now Available

GM Talkback:
Who in your company or stations deserves a pat on the back and why?


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.

Nielsen on defensive as
Burns convenes LPM panel
Committee pretty much to himself Wednesday, 07/27, as testimony was taken concerning his S.R. 1372 FAIR Ratings Act. Nielsen's Susan Whiting spent much of the afternoon fending off complaints from representatives of the broadcasting and accreditation communities. However, she had very strong support from the lone representative of the advertising community, MindShare's Kathy Crawford. Burns stated the issue in a nutshell. While it is not surprising that there are problems between the rater and the rated, broadcasters are hampered by the fact that Nielsen "is the only game in town." Burns said that the Media Rating Council is the perfect vehicle with which to audit and monitor ratings providers, but that it lacked teeth to make its recommendations stick, hence the need for his bill. RBR observation: Nice to see the amount of support from many as an attempt to stop the GOV getting into the ratings business. But our best recommendation is somewhere Nielsen has to present a piece pipe with TV and at the same time those in support of Nielsen must do more than talk support. Bottom line: Replies to us are simple TV first concern is a balance of scale by all Nielsen clients to pay their fair share of the cost. Again the real issue starts with Money. 07/28/05 RBR #147

Blow-out sales event?
Not with a flat June
By the time the tote board was added up, the results for June 2005 radio revenues were in a dead heat with the results of June 2004. That's for both local and national business. In fact, the exact same thing can be said for all of the second quarter. It is not until you look at YTD figures where there is any discernible improvement over 2004, and at that we're talking a 1% gain, which again holds for both local and national business.
RBR observation: Here's a quote for you: "Local business had been delayed by concerns over the economy and global affairs, but has held steady. All indicators point to growth and recovery for the 3rd and 4th quarters." Continued mixed signals from the economy operating against a backdrop of global terrorism seems to be S.O.P nowadays, does it not? As a demonstration of just how stagnant it has been, we now reveal that the above quote came from RAB President/CEO Gary Fries. On 8/8/03. The Q3/Q4 growth he was looking for never materialized. Hmmm.
07/28/05 RBR #147

Mysterious mailer attacking PPM
Following Forrester Research report on the economic impact of Arbitron's Portable People Meters, someone has been mailing out their own analysis urging broadcasters to "Vote no on Arbitron's PPM." The 18-page document is apparently being sent out to radio executives (one of whom, of course, sent it on to RBR), with no signature, return address or (strangely) postmark. We can tell you, though, that the mysterious author appears to have a 17-year-old son and doesn't know how to spell Nielsen correctly. Some of the anti-PPM complaints in the mailing are downright bizarre, though, such as the claim that PPMs will lead to widespread illegal use of another station's trademark name or slogan to boost ratings and that PPM won't be able to tell the difference between multicast HD Radio channels.
07/27/05 RBR #146

TV ratings bill gets airing
TVBR observation: OK, if you've read the bill can you show us anything in there that will improve ratings participation by young demos, reduce fault rates or make LPM ratings data look more like the results of the previous meter/diary system? That's what this fight with Nielsen by News Corporation, Tribune and some other broadcasters (now with the support from the NAB) is all about. If you can see those things in the bill, you're seeing something that we can't find. Rather, we see frivolous lawsuits ahead whenever a station owner doesn't like their ratings, higher ratings costs for all broadcasters and slower progress on ratings innovation and upgrades. 07/27/05 RBR #146

Spitzer is singing Adelstein's tune
Democratic FCC Commissioner Jonathan Adelstein has taken the lead role in examining payola, 21st Century style. It therefore should not be surprising that he was quick to praise New York AG Eliot Spitzer's collar of Sony, and his eagerness to take the ball and run with it himself.
07/27/05 RBR #146


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