FYI: Underlined headlines are links to the full story. Read the html version here.
Welcome to RBR's Daily Epaper
Volume 25, Issue 148, Jim Carnegie, Editor & Publisher
Wednesday Morning July 30th, 2008
It's closing time
No worry about the banks showing up at the closing table today. Their $17.9 billion is already in escrow, so the money will be there whether the bankers are or not. So, it's pretty much guaranteed that the $23.8 billion deal to take Clear Channel private - or rather, semi-private - will go to closing today. We say semi-private, because shares of the new owner, CC Media Holdings, will be traded in the over the counter market on the so-called pink sheets.

RBR observation: What now? The biggest company in radio gets new owners at a time when ad revenues are taking an unprecedented dive. June was off 9% and no one we know of is predicting a rosy second half of the year. Does the industry giant have any plan to build its own ad sales and lead radio into the future?

Stevens indicted
The investigation into back-home dealings of Senate Commerce Committee heavyweight Ted Stevens (R-AK) has resulted in a criminal indictment on seven counts, the DOJ has just announced. A grand jury issued the indictment for making false statements about value received, much of it related to upgrades of his home in Girdwood AK. Stevens has alternately chaired or served as Ranking Member of the committee since the departure of John McCain (R-AZ) in 2005 as part of a routine Republican shake-up of such assignments. The indictment comes almost a year to the day after the FBI raided Stevens' Alaska home. Steven has maintained his innocence throughout the ordeal.

RBR observation: In broadcast issues, Stevens has generally opposed excessive government regulation, except when it pertains to assuring adequate communications services of all types for his many rural and far-flung constituents.

Sirius stock or a lottery ticket?
Back last year Jim Cramer was a big cheerleader for a Sirius-XM merger on his CNBC show. But now that it has actually happened, Cramer is not telling viewers to buy the stock. Rather, with all of the debt that the company has taken on, Cramer compared buying a share of Sirius-XM stock to spending a couple of bucks on a lottery ticket. He blamed AM and FM broadcasters for delaying the deal and making the companies waste money in the interim competing with each other. See the CNBC video.

RBR observation: We would actually agree with some of Cramer's comments about the cost-efficiencies for the merged company, except that we would say they were reasons the DOJ and FCC should have rejected the merger. Talent gets screwed. Content providers get screwed. And, in our view, the public gets screwed.

Limbaugh eyes the NFL
He now jets between Florida and New York, but Rush Limbaugh hails from Cape Girardeau, MO, which is St. Louis Rams territory for football fans. Amid rumors that the team may come up for sale, Limbaugh has told KMOX-AM St. Louis he'd be interested in becoming an NFL owner.
Don't get the idea that Limbaugh has stars in his eyes about becoming a team owner. Rather, he sounds somewhat hesitant to make the move in the KMOX interview.

RBR observation: When it comes to expensive hobbies, they don't come much more expensive than being a pro sports team owner, just ask Emmis boss Jeff Smulyan.

Mancow: Handling the content of AM with
the style, pacing and humor of FM

Tell us about your brand of Talk radio: "It is the fastest-paced radio show that has ever happened, period. While other people do one topic and beat it to death, we do a hundred topics. It is a variety show of sorts in that it has music, entertainment, politics, lifestyle-but always with core values. There are some politics in there, some common sense and some truths revealed on a daily basis. Telling the truth moves mountains, and I plan on moving a mountain or two." Read the rest at

Electioneering Communications
By Gregg Skall
Passage of the Bipartisan Campaign Reform Act (BCRA) imposed another new obligation on broadcasters when broadcast matter constitutes an "Electioneering Communication." A station must maintain and make available for public inspection, a complete record where a request to purchase is made, or a spot is bought, or furnished and it:

• is made by or on behalf of a legally qualified candidate for public office; or
• communicates a message relating to any political matter of national importance;
A message of national importance is presumed to exist where it relates to:
• a legally qualified candidate;
• any election to Federal office; or
• a national legislative issue of public importance - r
ead more at

Wrigley's updates brands with pop singers
Product placement again in radio: The Wall Street Journal reports pop-music fans may have noticed a brief reference to an old chewing-gum jingle buried in "Forever," Chris Brown's top-10 hit. "Double your pleasure/double your fun," the R&B singer sings in the chorus. What listeners don't know -- and what Wrigley's gum revealed yesterday: that the mention was paid for.

RAB2009 set for March 16-18 in Orlando
RAB2009 will take place at the Rosen Shingle Creek Resort in Orlando, March 16 to 18, 2009. Sheila Kirby, President, Strategic Sales Development for Interep and a member of the RAB Board, will serve as Chairperson of the Planning Committee for the second consecutive year. Kirby will lead the select team of radio industry pros who represent a cross-section of markets and a variety of Radio groups.

Lots of spinning wheels tied to EMF spin-off
Pollack Broadcasting Company is getting WPLX-AM from noncommercial Contemporary Christian specialist Educational Media Foundation. But the station is coming not so much with strings attached, but with its city of license, Turrell AR, attached. EMF has conditioned the $250K sale on Pollack's agreement to keep the station in the town northwest and across the Mississippi from Memphis, at least until EMF successfully moves its own keeper station, KKLV-FM, to a new city of license. Pollack will have motivation to leave the AM there for the time being, anyway - it is planning to move its own station, WPLX-FM, from Germantown TN to Turrell. By the time all the moving parts settle, one old-fashioned AM-FM combo will have been dissolved and another formed.

$1.5M WNOV-AM Milwaukee WI from Courier Communications Corporation (Jerrel Jones, Mary Ellen Strong, Earnestine Jones) to Radio Multi-Media Inc. (Rene Moore). $200K escrow, $650K for real estate, balance in cash at closing. LMA until closing. [File date 6/13/08]

$110K KDNR-FM South Greeley WY from Cedar Cove Broadcasting Inc. (Victor A. Michael) to Western Inspirational Broadcasters Inc. (Kenneth D. Hanson et al). $10K escrow, balance in cash at closing. [File date 6-13-08]

N/A WIXI-AM Jasper AL from Walker Broadcasting Inc. (James Pereira III) to James T. Lee. Unspecified forgiveness of debt. [File date 6-13-08]


Senate panel looks at leveling royalty playing field
The Senate Judiciary Committee held a hearing today, looking into the reason that there are three separate technologies for delivering audio entertainment, and three different royalty regimens to go with them. Senator Ron Wyden (D-OR) argued for a legislative fix; while Bob Corker (R-TN) suggested letting the CRB do its job, and allowing ongoing efforts in the House of Representatives run their course.

RBR observation: The NAB is going to have their hands full with the royalty topic on Capitol Hill - it just keeps coming and coming and coming. It doesn't help that doubles down on committee interest, adding judiciary scrutiny to the normal commerce attention. It poses a real problem for the artists, who have to decide if they want what will most likely be a small cache of cash at the expense of getting their work out there for paying customers to discover, leading to recording sales and purchased concert tickets. One thing is for sure - this is another issue to keep close tabs on.

Sovereign City adds
morning show for Oasis

Sovereign City Communications announced the launch of its new morning show - Your Morning with Jim & Debbie - into its beta testing period in preparation for national launch. Like its nocturnal counterpart, Wendy in Your Oasis. Show hosts Debbie Montgomery and Jim Harrington will also take a light-hearted look at pop culture from the perspective of two seasoned radio pros.

Hippie Radio strikes it big in Peoria
The new Hippie Radio format hit Top 5, 25-54 Adults in its second book in Peoria, IL. Independence Media’s WHPI-FM also reaches the #4 slot, 35-64 Adults after only being on the air 8 months. Says David Jacobs, Independence Media CEO: "Hippie Radio has delivered on every demo we hoped and has quickly become our flagship in Peoria. It’s a format that our listeners are insanely passionate about. I’ve never seen anything like it. Our listeners actually applaud our disc jockeys while doing live remote broadcasts. I haven’t seen that since radio in the 1970’s. This format is on fire."

Georgia News Network picks up Martha Zoller Show
The Martha Zoller Show, which has been heard exclusively on WDUN-AM in Gainesville, GA for a number of years, is now being syndicated by the Georgia News Network (GNN). The program will be fed live 10a-12noon weekdays and continue to be produced and broadcasts from the WDUN studios. WDUN will serve as the network's flagship station. GNN will mange affiliate relations and ad sales for the program.


"Say Goodbye to Yellow Pages"
Borrell Associates has released new research on yellow pages advertising collapsing, and a huge drive by local ad sales departments to capture online dollars that are migrating there due to a big shift in small-business spending. They're forecasting a 39% decline in yellow pages advertising over the next five years. Basically, the industry is about to collapse. The report is entitled, "Say Goodbye to Yellow Pages.

Chicago Tribune offering mobile job listings
Starting this week, Chicagoland job seekers can get help wanted listings sent directly to their cell phones as part of the Chicago Tribune Media Group's effort to expand its classified offerings to mobile devices. This marks the first time a U.S. newspaper has ventured into the mobile media space to distribute its job listings. QuickText allows job seekers who text a unique WEB ID to a specific number to instantly receive a detailed job listing on their mobile device. The service debuts this week in conjunction with the printed job listings within the Chicago Tribune's Tuesday Business section and RedEye, Chicago's free daily newspaper.


Oil drops, stocks jump
Lower oil prices and a modest rise in the Conference Board's Consumer Confidence Index gave stock prices a boost. The Dow Industrials rose 266 points, or 2.4%, to 11,398.

Radio stocks joined in the rally. The RBR Radio Index gained 2.003, or 3.3%, to 63.017. Cumulus was the big winner, up 11.3%. Westwood One gained 6.5% and Emmis 6%. The market was not kind to the new, but debt-laden, Sirius XM. It fell 16%.

Here's how stocks fared on Tuesday




























Journal Comm.





Lincoln Natl.




Clear Channel*




Radio One, Cl. A




Cox Radio*




Radio One, Cl. D*












Debut Bcg.




Saga Commun.*








Salem Comm.*








Sirius XM








Spanish Bcg.*








Westwood One*




*Component of the RBR Radio Index

Send Us Your OpinionsWe want to
hear from you
Send your comments and a photo to [email protected]

Lenny got his wish
Throughout the long period that the XM-Sirius merger had been pending, Lenny Freed sent us numerous emails offering to bet big bucks that the deal would go through. We're not the gambling type, but we will let him gloat a bit.

Over the next few years, satellite radio will become the driving force in the radio industry and as it is installed in millions of automobiles, satellite radio will become the dominant force and replace terrestrial radio. Just look how much progress has been made in the last 2 1/2 years since Stern came on the air in 1/06. This merger is a great benefit to consumers and the only ones who will suffer is terrestrial radio. DEAL WITH IT!

Lenny Freed, Radio Guru

Below the Fold
Only on
Electioneering Communications

Another new obligation on broadcasters

Ad Business Report
Wrigley's updates

Brands with pop singers
Product placement again in radio

Media, Markets & Money
Lots of spinning wheels

Tied to EMF spin-off
Pollack Broadcasting
is getting WPLX-AM

Media Business Report
Chicago Tribune

Offering mobile job listings
seekers can get help wanted
listings sent to their cells
More News Headlines
Sirius speed to
the altar displayed

The rice, or politically correct bird seed, has been tossed, and what was two satellite audio firms upon entering the aisle are now one, known as Sirius XM Radio.The stock will trade on Nasdaq as SIRI, and each share of the old XM will get you 4.6 shares of the old Sirius. Honcho Mel Karmazin is looking to achieve positive free cash flow, not counting satellite capex, for the full year 2009.
Stations for Sale

Market your stations on and in our daily epaper.

See our website
for details

Industry Careers
Find that key person!
Fill that important position at your organization with RBR Classifieds. .See our website for details.

Radio Careers
Submit a Job

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

Gamma Women: a 55 million strong and growing segment
Report uncovers the rise of Gamma women: a growing segment - significant both in number and influence - that is creating a groundswell in today's new media and marketing landscape.
07/29/08 RBR #147

Brand emotion, product integration and agency collaboration
Top marketing objectives are really to make sure that strategies are clear, succinct and they are differentiated. Push that your advertising ideas are really distinctive
07/29/08 RBR #147

The Broadcast Genius You Probably Never Heard Of
Our economy is a mess. Local businesses really need our help. This should be the broadcast industry's finest hour.
07/29/08 RBR #147

Eastlan Spring Ratings in Mid-Markets
Executives continue to duel issues but Eastlan continues delivering ratings data for many mid- to small-sized markets. Housed at are the latest 29 market details.
07/29/08 RBR #147

Radio Top 20 Webcast ratings issued for June
CBS Radio vaulted to the top ranked station group in June with the addition of the AOL Radio channels. Katz Online Network debuts with the their digital sales network.
07/29/08 RBR #147

conditions detailed

FCC decided that the only way to consider the merger was under a worst case scenario.

RBR observation: Copps has it right - the fact that conditions are necessary means they should either be permanent or the entire merger should be nixed.
07/29/08 RBR #147

CC Radio, KMG launch major digital ad net
Comprised of independent Internet radio stations with the online and mobile streams.

RBR observation: Looks like they're getting into a space long dominated by Ronning-Lipset Radio and NetRadio Sales (Jennifer Lane). Ironically, Lane was already been absorbed into KMG, so this is more of just an announcement to show how many properties they have now to rep.
07/28/08 RBR #146

For complete content and previous RBR issues, analysis, interviews,
and more...see and bookmark

Help Desk
Log In to Your Account
RBR Epaper Archives
Staff Contact info
Advertise with Us
Submit a news story

Reading from a friend?
Get Your Own Epapers Here

Having epaper problems?
Contact: [email protected]

CAUTION: If you are trying to unsubscribe to a particular epaper, use the "Log into Your Account" link above.

Use this link below ONLY if you wish to be removed completely from our mailing list.
©2008 Radio Business Report, Inc. All rights reserved.
Radio Business Report -- c/o April McLynn, PO Box 6633 Woodbridge, VA 22195 -- Phone: 703-490-3099