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Volume 23, Issue 156, Jim Carnegie, Editor & Publisher
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Friday Morning August 11th, 2006
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Radio News ®
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 XM without satellites
Who needs a satellite? XM Satellite Radio announced a deal to have 20 of its music channels made available on Alltel Wireless Phones - similar to the deal that Sirius cut last year with Sprint (9/14/05 RBR #180). The XM Radio Mobile service costs 7.99 per month. Using an application developed by MobiTV, Alltel Wireless customers will be able to choose from commercial-free channels including: The 70s, 80s and 90s decades channels, Top 20 on 20 (Top 20 Hits), Ethel (New Alternative Rock), The City (Hip-Hop/R&B Hits), XMU (Indie Rock), Bluesville (Blues), Highway 16 (New Country Hits), and Viva (Latin Pop Hits). "As consumers continue to turn their wireless phones into mobile entertainment hubs, Alltel Wireless continues to explore partnerships to build on our extensive portfolio of content," said Frank O'Mara, executive vice president of sales and marketing for Alltel Wireless.
RBR observation: Smart move by XM. Radio companies should be looking to do their own deals with wireless phone companies (and some already are), since local traffic, weather, news and sports is probably going to appeal to cellular phone users as much or more than music. It is all about content. We've suggested before that the satellite radio business model, to the extent that there ever was one, will simply implode once wireless broadband becomes widely available and affordable in cars. But if XM (and/or Sirius) can establish their brand and deliver worthwhile content, they could be around long after everyone has forgotten that "satellite" used to be part of their name.
FMC, CWA tie consolidation
to job losses
And the Future of Music Coalition (FMC) and Communication Workers of America (CWA) go on to tie job losses to a reduction in localism and diversity in local markets. They charge that the effects of allowing bigger local clusters and limitless national aggregations tends to nationalize playlists, leads to talent-sharing at the expense of local staffing and has made local radio news a relatively rare commodity. FMC Executive Director Jenny Toomey said, "Consolidation in radio ownership hasn't just homogenized music formats, it has devastated the broadcast profession and virtually eliminated the ability of radio stations to provide unique coverage of local news, music and community issues. Before the FCC moves forward to further loosen already weak ownership limits, it should understand the impact that deregulation has had on jobs and communities." Newspaper Guild/CWA President Linda Foley added, "This study by FMC once again shows what news professionals know about consolidation of media ownership: It results in fewer newsroom jobs and, as a result, fewer resources devoted to reporting the news. No wonder radio news, once the primary source of local news and information, has all but disappeared from the American landscape." The FMC report cites job losses and stagnant wages among DJs, broadcast journalists and technicians, and blames that result on cost-cutting by "...centralizing some operations in distant markets, such as on air DJs, programmers, reporters, and engineering or broadcast-technician jobs." They say practices such as voice tracking damage a station's ability to be in touch with the local music scene on the one hand, and impede the ability to provide effective emergency broadcast service on the other. They called for the FCC to complete its proceeding on localism before moving on to the media ownership proceeding.
 RBR observation: You could read these charges and say, duh...one of the chief benefits of consolidation is efficiency, and one facet of that is getting the job done with less employees. However, if over-the-air broadcasting's main advantage in fending off the ever-mounting onslaught of competition is being local, it seems penny-wise and dollar-foolish to cede that advantage by operating a station by remote control. We often hear that the DJ talent pool is drying up. Duh...what were once off-prime time training shifts are now mostly automated, and until somebody figures out how to grow Rick Dees, Cousin Brucie and Howard Stern on trees, there isn't enough of an investment in developing tomorrow's voices. We also hear from time to time that the engineering talent pool is drying up. And consider this. Locally, a station just underwent a format change in our market recently, and we sampled it. Admittedly this happend over the weekend, which is perhaps not entirely fair, but it's not our job to be fair, it's the station's job to make us love it. But all we got was a format already being offered on a competing station, with information-free self-promoting voiceovers and commercials. Local information? Zero. Human interaction? Zero. We haven't been back.
CBS exposing itself to six-figure fines
That's so it can air a update of previously-aired documentary "9/11," narrated by Robert de Niro, that avoids doing what the filmmaker's believe would be a disservice to the heroic fire fighters who responded to the attack on the World Trade Center. Gideon Naudet, Jules Naudet and James Hanlon were working on a documentary about the life and times of a rookie firefighter when events turned the production into something much bigger. CBS feels that the gravity of the occasion demands that the events be aired precisely as they were captured that day, harsh language and all. CBS said, "Due to the sensitive content and graphic language that appears in parts of the program, the broadcast also will include both audio and visual warnings to viewers, as well as an introduction by De Niro alerting viewers to the content of the program." Versions of the film have previously aired, when the top drawer indecency fine much lower. It was 27.5K, and was increased to 32.5K before getting a ten times increase this year to 325K. Even at the old rate, a per-utterance approach to fining the stations could add up to serious money. Another way to get stratospheric would be to follow an established precedent of fining each and every affiliate that airs the program individually. It's on the schedule for Sunday, 9/10/06 from 8:00PM-10:00PM ET/PT.
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 Andrew says no deal
Equipment maker Andrew Corporation will remain independent. It has dropped a planned merger with ADC Telecommunications and rejected a buyout offer from CommScope as well. The ADC deal had been on shaky ground since it was announced in June 2005. The stock-swap merger was billed as being valued at two billion bucks, but Wall Street reacted by driving down the value of ADC stock, which lowered the value. ADC then encountered some problems meeting its financial projections and its stock took another hit, further devaluing the proposed merger. That prompted CommScope to ring in this week with its own all-cash bid totaling 1.7 billion (8/8/06 RBR #153). Andrew and ADC have now agreed to scrap their merger, with Andrew paying ADC 10 million to walk away - plus another 65 million should Andrew be sold or merged within the next 12 months. That's not likely to happen, since the board at Andrew has also rejected the offer from CommScope as "wholly inadequate." CommScope issued a statement that it was disappointed, but indicated that it too would go on building its business alone, so don't look for it to come back with a topper to its own bid of 9.50 per share.
LeGras killed in plane crash
Exline Company broker Dean LeGras died Monday when his charter plane crashed while he was on a fishing trip in British Columbia. According to the Prince George Citizen, a Department of National Defence search and rescue team found the wreckage 60 miles southwest of Prince George after the plane had been reported hours overdue on a return flight from Nimpo Lake to Kluskoil Lake. Neither the pilot nor his passenger, LeGras, survived. LeGras had been brokering stations at Exline for 16 years after a 22-year career with CBS, concluding with eight years as General Sales Manager of KNX-AM Los Angeles. Dean is survived by his wife, Stevie, and son Christopher who reside in Marin County, California.
 FCC goes to war with
Quad Cities buccaneers
You have to give pirate FM station "Power 103" credit for originality. When on 4/18/06, an FCC field agent, acting on a complaint, traced the station to the Northwest Bank Building in Bettendorf IA, he was subsequently introduced to Matthew H. Britcher, called in by the building's manager. Britcher informed the agent that the station was operating legally pursuant to the "War Powers Act." Also, while being videotaped by an unknown third party, Britcher refused the agent's request to inspect the station, which beamed from a roof-mounted antenna, due to lack of a warrant, and despite the agent's statement that a warrant was not required. The station was still operating the next day. Subsequently, Jason L. Duncan called the FCC's Kansas City office and identified himself as the cameraman. Britcher and Duncan both began to claim that the station had applied to operate under rules allowing the FCC to grant temporary authority under "...extraordinary circumstances requiring emergency operation to serve the public interest." Pirate stations are usually hit with a 10K fine. Power 103 has left that figure in the dust. Britcher has been hit with the standard 10K fine for piracy plus another 7K for refusing to allow the inspection, and Duncan was also hit with a 10K piracy fine for a grand total of 27K.
RBR observation: If the station's programming was as entertaining as its bureaucratic dealings, it might have been worth a listen...
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| Coming Next Week... |
Media Markets and Money:
New owners: What makes them tick?
New owners just venturing into radio and/or TV-why are they getting into it? What do they see that others that are bailing out don't?
....and
OneonOne: David Kennedy
After a long career that took him to the CEO position at Susquehanna Media, David Kennedy is now wrapping up loose ends after selling off the company's radio and cable assets for the founding family. What's next for this well-known radio veteran? Inquiring minds want to know.
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| Executive Comment |
 :60s vs :30s
Regarding this comment from Jerry Lee (8/10/06 RBR #155): "The study shows that :30s are 50% as effective as :60s in getting the messaged recalled. I think that we should be very careful in our selling of :30s. If we use them in the Reminder Phase of an Ad Campaign and charge 70% to 80% of the minute rate, we win and the Advertiser wins." Jerry makes some good points, but this statement, although from a study, amazes me. The primary problem in American radio is this...
| Read More... |
Albert Berkshire
Director, GreatCreative.Com
Kelowna, BC |
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Ad Business Report TM
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Radio's top ad categories
We recently mentioned long-time radio analyst Jim Boyle is out with his first reports for his new employer, the boutique Wall Street firm CL King & Associates (7/31/06 RBR #147). Here's more on his analysis of the radio ad biz. He sees the declines in radio's largest ad categories as a real problem: "The largest radio ad category is auto, which is unfortunate," says Boyle. "Historically, auto advertising rarely pulls back substantially as manufacturers and dealerships simply need to incessantly move vehicles off of dealer lots. The last major pullback in auto advertising was in the 1970s during the first import car manufacturer invasion and two gasoline crises. Hence, domestic manufacturers and dealers have come full circle to face yet another surge in import auto market share attack and another oil price crisis. In the 1970s, domestic auto advertising was sometimes off by 15%; a substantial pullback that often lasted for more than a year."
| Read More... |
RBR observation: The report is a pretty tough pill to swallow, especially with some of the latest Q2 numbers. As we've been saying, localized programming leads to more local ad dollars. If national category spending is moving away from radio, then local is more important than ever.
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| Media Markets & Money TM |
Last Blaine to Clarksville?
Blaine Leeds is selling his Clarksville AR radio station, Country KXIO-FM. The buyer is Barnett Broadcasting Inc., headed by Gary Barnett. According to broker Bill Cate of Sunbelt Media, the price is 440K cash, which provides for an immediate LMA until closing. Clarksville is in an unrated portion of the state, between Ft. Smith and Little Rock (closer to the former) via either I-40 or the Arkansas River, depending on your preferred mode of transportation.
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| Washington Media Business Report TM |
Station fails to meet
the poverty threshold
 M.B. Communications' WYLF-AM in Penn Yan NY, near Rochester, is probably not taking the FCC's positive opinion as to its financial health as a complement. It was charged with a pair of violations, running with excessive power (comprehensively, we might add, with citations for day, post-sunset and night included), along with failing to secure its tower. The total bill was 11K. M.B. did not dispute the violation, but it did plead inability to pay, and unlike many who take that route, it actually appended the necessary tax documentation. Going by gross revenues, the FCC determined that the station is bringing in enough cash to pay the fine.
RBR observation: Time and again we see stations pleading poverty and letting it go at that, without providing any evidence. The pleadings of these stations are invariably ignored. At least M.B. gave itself a chance, but obviously the evidence was not compelling enough.
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| Group Owners |
Another run for Yager
Long-time TV veteran Jim Yager is back again, building another new company from scratch. What does he see in the business that the Wall Street guys don't? And where is he looking for acquisitions to keep filling out the station portfolio of Barrington Broadcasting? Yesterday, Jim spoke about why he keeps working instead of taking it easy (8/10/06 TVBR #155).
We asked Yager how big do you want to get and
what size of markets are you interested in being in?
"Number one, I love the size markets we're in. Television is still the most effective way to advertise in a market 60-plus. We're not selling the commodity in these markets. We are actually working with advertisers on how to move their products or their service to clients. It's not an 18 to 49, it's not 25 to 54, which is what you get when you get into the larger or more major markets. It is really, does television work? Can we make it work for an advertiser? For 45 years now I've been making it work for advertisers and it's still the most effective way for somebody with a service or a product that they want to sell to the consumer to reach the consumer. I love the business.
| Read More... |
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| Entertainment Media Business Report TM |
 Salem Communications enters TV
Well, sort of. In New York, Salem-owned WMCA-AM has launched WMCA-TV "Radio with Pictures" on its Website. It is a video-on-demand service that launched with a tribute video honoring the late Dr. Adrian Rodgers. WMCA says new videos will be added weekly. "The Internet is such a valuable tool, and until now we've only been using a portion of its capabilities," said WMCA Vice President/General Manager Dave Armstrong.
Dial Global acquires "Rick Jackson's
Country Hall of Fame"
Dial Global's new programming division has acquired leading classic country radio program "Rick Jackson's Country Hall Of Fame." Dial Global will handle affiliate sales and distribution as well as advertising sales. Launched in 1986, "Rick Jackson's Country Hall Of Fame" is a three-hour weekly program that features high-testing classics, presented in the context of a weekly theme. Jackson will continue to host the program, and his production company will produce it. "'Country Hall Of Fame' is truly best of breed for the genre," said Kirk Stirland, president of Dial Global Programming. "It's a perfect addition to our country roster, joining Whitney Allen's 'America's HotList' and 'The Big Time Saturday Night'."
Westwood debuting Latin Urban countdown
Riding the wave of the wildly-successful Latino Urban format, Westwood One, in partnership with Latino Broadcasting Company (LBC), is debuting The Top Twenty Latin Urban Countdown, hosted by Frankie Needles. The weekly, two-hour music countdown show will feature a mix of music from the Reggaeton, Hip-hop, R&B and Reggae formats. Stations on board include WSKQ-FM New York, KXOL-FM Los Angeles, WXDJ-FM Miami and WYUU-FM Tampa.
Back to Sports in Tampa
CBS-owned WQYK-AM Tampa-St. Pete has been a Country station. It has been a Sports station. It even carried Howard Stern for a while. Most recently it has been airing Classic Country, but today WQYK-AM returned to Sports as the Tampa Bay outlet for Sporting News Radio. The station was re-branded today as "10-10 Sports."
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| Internet Media Business Report TM |
User-generated content drives half
of Top 10 fastest growing web brands
Nielsen//NetRatings announced user-generated content sites, platforms for photo sharing, video sharing and blogging, comprised five out of the top 10 fastest growing Web brands in July. Image hosting site ImageShack ranked No. 4 among July's fastest growing Web brands, increasing 233%, from a unique audience of 2.3 million to 7.7 million. Heavy.com, a video sharing site, took the No. 5 spot, increasing 213%, from 965,000 to 3.0 million unique visitors. Photo sharing site Flickr followed at No. 6, growing 201% from 2.1 million to 6.3 million unique visitors. Other user-generated content sites that made it into the top 10 fastest growing Web brands were MySpace, with a 183% year-over-year increase, and Wikipedia, with a 181% year-over-year increase. Among the top 10 Web brands overall, MySpace was the No. 1 fastest growing, increasing 183%, from 16.2 million unique visitors in July 2005 to 46.0 million in July 2006. Google ranked No. 2, growing 23%, from a unique audience of 76.2 million to 94.0 million. eBay rounded out the top three, increasing 13%, from 51.1 million to 57.8 million unique visitors.
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| Transactions |
17.5M KFMF-FM, KALF-FM, KQPT-FM & KZAP-FM Chico CA (Chico, Red Bluff, Colusa, Paradise CA) and KQMS-AM/KNRO-AM/KSHA-FM, KNNN-FM, KRXX-FM & KRDG-FM Redding CA (Redding, Shasta Lake, Burney, Shingletown CA) from Regent Communications Inc. (William L. Stakelin) to Mapleton Communications LLC (Adam Nathanson). 740K escrow, balance in cash at closing. Existing superduopolies. [File date 7/21/06.]
600K WAWC-FM Syracuse IN from William Andrew Dixon to Talking Stick Communications LLC, related to Pathfinder Communications Corporation- (Alec C. Dille, John F. Dille, Sarah D. Erlacher). 35K escrow, 395K cash at cloaint, 170K consulting agreement. Duopoly with WRSW AM & FM Warsaw IN. [File date 7/20/06.]
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| Stock Talk |
Stocks up despite terror fears
Sometimes the market is just surprising. The expected big sell-off didn't occur following arrests in a terrorist plot to blow up airliners. Rather, oil prices eased on speculation that people would reduce air travel. The Dow Industrials finished the day up 48 points, or 0.4%, to 11,124.
Radio stocks also managed gains. The Radio Index rose 0.739, or 0.6%, to 132.159. Cumulus led the way, up 3.9%. Westwood One headed the other way, losing 3.4%.
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| Radio Stocks |
Here's how stocks fared on Thursday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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35.68
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+0.36
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Hearst-Argyle
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HTV
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21.12
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+0.56
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Beasley
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BBGI
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7.16
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-0.01
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Journal Comm.
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JRN
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10.56
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+0.15
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| CBS CI. B |
CBS |
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26.50
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+0.25
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Lincoln Natl.
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LNC
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57.34
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+0.54
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| CBS CI. A |
CBSa |
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26.45
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+0.18
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Radio One, Cl. A
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ROIA
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5.75
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+0.05
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| Citadel |
CDL |
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8.70 |
-0.17 |
Radio One, Cl. D
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ROIAK
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5.69
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-0.10
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Clear Channel
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CCU
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27.70
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+0.29
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Regent
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RGCI
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4.15
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+0.06
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Cox Radio
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CXR
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14.60
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+0.16
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Saga Commun.
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SGA
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7.33
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-0.03
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Cumulus
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CMLS
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9.14
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+0.34
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Salem Comm.
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SALM
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10.71
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-0.04
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Disney
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DIS
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29.58
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+0.75
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Sirius Sat. Radio
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SIRI
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3.77
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-0.11
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Emmis
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EMMS
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11.43
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+0.28
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Spanish Bcg.
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SBSA
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4.41
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+0.07
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| Entercom |
ETM
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22.96
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+0.12
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Univision
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UVN
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33.46
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+0.01
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Entravision
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EVC
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6.81
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+0.10
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Westwood One
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WON
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6.62
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-0.23
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Fisher
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FSCI
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39.17
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-0.06
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XM Sat. Radio
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XMSR
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11.18
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+0.23
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Gaylord
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GET
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38.35
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+0.06
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-
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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]
 Funny isn't? Small market radio has known for decades that less is more. Whoever decided that radio should be sold by the unit and that a 60-second spot should cost the same as a thirty second spot was out of their ever loving mind. Then those that followed were even crazier yet! We have been selling 30-second announcements here in small radioland from the beginning. Who was it that said "Sorry, I didn't have time to write a shorter letter"? Maybe the big guys should come down here to small markets and learn how to sell radio. One idea at a time!
Rick L. Murphy, CEO
Mad Dog Wireless, Inc
Lake Havasu City, AZ
Editor's note: Give credit to Mark Twain. The exact quote: "I didn't have time to write a short letter, so I wrote a long one instead."
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Below the Fold
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Executive Comment
Albert Berkshire, Director, GreatCreative.Com
Thinks we should be very careful in our selling of :30s...
Ad Business Report
Radio's top ad categories
Declines in key categories is a real problem...
Media Markets & Money
Last Blaine to Clarksville?
Selling his Clarksville AR KXIO-FM the buyer is Barnett Broadcasting...
Internet Media Business Report
User-generated content drives half
Of Top 10 fastest growing web brands...
Entertainment Media
Business Report
Salem enters TV
Well, sort of launched WMCA-TV Radio with Pictures on its Website...
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Stations for Sale
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CD Border 25kw FM
Profitable competitive op.
Small/dual market FM with huge upside for turnaround operator.
595K 781-848-4201 or [email protected]
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Radio Media Moves
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On the WW1 team
Westwood One announced the appointment of former NCAA football coach, Terry Bowden, and three-time Nebraska Sportscaster of the Year, Kevin Kugler, as part of its NCAA Football broadcast team. Bowden will serve as color analyst, with Kugler calling the play-by-play for Westwood One's NCAA Football broadcasts, kicking off September 2nd.
Expansion at SWMX
SWMX Inc. announced that Pam McWilliams has been named Director of New Business Development for SWMX Radio and SWMX Television, focusing on the direct response marketplace. Prior to joining SWMX, McWilliams served 21 years as Executive Vice President of Bee Alive Inc., a direct marketing health and beauty company she helped grow from a three-person operation to a 150-employee organization with millions in annual sales.
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More News Headlines
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Redstone family
feud continues
Round one goes to Brent Redstone. A judge in Maryland has refused to dismiss the lawsuit he filed against the family-owned National Amusements (2/15/06 RBR #32), seeking to dissolve the company through which his father, Sumner, and sister, Shari, control both CBS and Viacom. National Amusements dismissed the judge's action as merely procedural, but the company will now have to defend itself at trial in October. Brent claims he has been frozen out of decision making. He wants National Amusements broken up, which would give him direct control of his one-sixth stake and make him a significant shareholder of both CBS and Viacom.
Listening to radio
a matter of life, death
in Israel
The Washington Times reports a radio station that broadcasts silence has become popular in Israel since the war with Hezbollah began a month ago. The station was initiated by state-run Israel Radio for residents in the northern part of the country who fear that they might not hear sirens warning of a rocket attack while they are sleeping. The "silent station" is an alternative wake-up device next to their bed and breaks its silence only with announcements of impending rocket attacks. When the announcement comes, the residents have less than a minute to get to cover.
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July RBR/TVBR
Digital Magazine
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Take a look at what's in the July RBR/TVBR Solutions Magazine:
July is our annual sports media and marketing issue. This year, Basketball News Services' lead NBA analyst and Five-Star Basketball Report host Steve Kyler provides opinions on what works and what doesn't work in sports radio; AND1 Brand Marketing Manager Taylor Duffy talks about marketing and branding his company's basketball shoes; Emmis Sports Marketing's David Barnett talks about making money off of sports programming; and Entercom's WEEI Boston Director of Programming and Operations Jason Wolfe writes about how he's helped build WEEI into such a powerhouse.
We interview Magna Global
CEO Bill Cella.
In Media, Markets and Money, the logjam has finally broken and station trading is picking up, in both radio and television. Some prominent brokers tell RBR/TVBR what has changed - and why.
Read RBR/TVBR in 2 simple steps:
1.Create a simple account with Zinio and download the Zinio Reader.
2. You can then download the
July Issue of RBR/TVBR
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RBR Radar 2006
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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Executive Comment
Here are my insights
into the :30s discussion
Jerry Lee, WBEB-FM Philadelphia. I come from the school of thought that an Interruption is an Interruption is an Interruption. When Clear Channel first announced their :30s initiative, I launched a study with Bill Moyes to prove Clear Channel wrong. I now publicly admit that I was wrong. Based on this research I am convinced that number of commercials in a Pod are immaterial to the listener. I do have a caveat. We don't know how the public would react if you ran 8 :30s or 16 :15s in lieu of 4 :60s. I think that this should be researched.
RBR observation: There is a lot more comment and a research study to what Jerry Lee is discussing and RBR highly recommends you review the study, print it out and digest it. See this report in
08/10/06 RBR #155
Don't look for a Google mega-deal at Disney; Radio sale on track
Bob Iger wants to play the field so do not expect his company to do a mega-deal with a single Internet player. Rather, Disney is in talks with various Web companies on potential deals. While there was talk of rumors that the agreement to sell ABC Radio to Citadel Broadcasting is about to fall apart, Disney officials say it is still on track.
08/10/06 RBR #155
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Talk Radio Network
Seeking professionals in three areas to join our TRN team. First: Executive Producer on topical subjects, Second: Board Operator with 2 years experience with Telos call-screening software and Third: Staff Engineer that can take initiative. This is a fast paced high pressure environment, must be able to think and act professionally in emergency situations. EOE. For complete details all three positions
See Radio Careers
General Manager
Saga Communications, a top of the line radio and media company really has a rare opening at Rock 102 and Lazer 99.3. Saga carefully reviews all GM applicants but this opportunity necessitates being extra picky. Considering only GM's with a documented reputation for effective leadership and management to oversee these facilities that are accustomed to high standards at all levels. Excellent facilities, benefits and quality of living in Springfield, MA. Saga a top of the line company committed to excellence in media today. EOE.
See Radio Careers
Director of Sales
Needed for radio cluster in Mid-Atlantic region. 5 years plus experience as DOS a must, with successful track record. Must be able to develop sales talent into a winning team. Excellent benefits & compensation plan.
See Radio Careers
Hard finding that key person
to fill the important position at your organization? RBR's - Media HeadHunters is the place that key media firms use to get results. See www.mediaheadhunters.com and get results with service--Period.
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