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Radio News ®
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 Infinity signs multi-year deal
with Arbitron
By bringing a good offer to the table, what it is we just are not sure yet, but whatever it is Infinity decided it was fair. RBR had stated the hard posturing from Infinity (6/24 RBR Daily Epaper #124), may have been, but was, a bluff and wouldn't last a quarter. In fact, many in the industry said they knew this was all a "joke" from the start. However, Infinity President Joel Hollander was serious enough to the point he decided to work on launching a new radio ratings system altogether ("Radio Ratings USA") with The Media Audit (7/8 RBR Daily Epaper #132) for major markets. Apparently, that is still going forward. "Not for at least six months though," the Infinity source said.
With a new multi-year agreement Arbitron has raised its 2004 outlook and Infinity gets to go back to biz as usual effective right this minute meaning using of the Spring books in all their markets.
RBR observation: Infinity's biggest problem with Arbitron was and always will be price. We wonder how low Arbitron went to get the deal done. Why did Infinity go back so quickly? Because Infinity and Arbitron need each other. Representing 9%-15% (depending on whom you ask) of Arbitron revenues, Infinity's announcement in June sent ARB's stock price from nearly $40 down to $32 just last week. Also, we would find it hard to believe Infinity could go for long without some kind of ratings to sell against with agencies and advertisers. A potential lawsuit would have been always just around the corner with sales folks screwing up and talking numbers to get a sale. Another problem Infinity has with Arbitron is the need to improve their methodology and delivery system. Until they get that on track, they are likely to be a bit more flexible on deal-making, especially agreeing to shorter term agreements. We bet MediaAudit is a bit disappointed in this news. Just like Cumulus pumped up Eastlan, Infinity did the same with MediaAudit. But as the source said, the deal with them continues. We were told to stay tuned on that matter but we don't know how much life is in those batteries especially the PR quote by Hollander on the deal, "This announcement is about Infinit'y commitment to improving and innovating radio’s audience measurement …" blah blah. Lets see if this makes Arbitron stock take a skip up today like when it made the skip down.
Becky Armendariz Klein next FCC Chair?
The New York Times speculates that a Texan running for Congress, Becky Armendariz Klein, may get the nod for the next FCC Chairman, should President George W. Bush get re-elected. Excerpts: "Becky Armendariz Klein is widely expected to lose her bid for Congress in Texas. But that has not stopped executives and lawyers from the nation's largest telephone and energy companies from pouring money into her campaign."
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 BIAfn reports sluggish TV sales
"Until the ownership rules are finally resolved, television station sales activity will continue to be weak." So says BIA Financial Network VP Mark Fratrik, discussing the slow pace currently holding sway in the station transaction market. BIAfn says 39 full power television stations have been sold thus far in 2004, for a total of 323M dollars. Although this represents greater activity than there was through this point in 2003, when the numbers were 22 stations sold for 242M dollars, it is nevertheless said to be well below normal. The FCC's 6/2/03 ownership ruling would have relaxed both local and national caps. Locally, it would have opened up more markets to TV duopolies, and added triopolies into the mix for the first time in the largest markets. Nationally, it would have upped the potential audience ceiling from 35% to 45%, enabling the biggest groups to get even bigger. The rules have been kept on ice by the 3rd Circuit Court and have since been remanded to the FCC for justification or modification. BIAfn says that LPTV activity, on the other hand, has been relatively strong, with 75 stations sold for 11M dollars, compared to 38 for 4M dollars a year ago. Fratrik said, "The market for LPTVs has become more lucrative in recent years, as niche programmers look for outlets in local markets where there may be no full power alternative. We expect this trend to continue, particularly if LPTV groups can establish a loyal audience base and gain carriage on local cable systems."
When disappointed with the Supremes, sue down?
A group called Wisconsin Right to Life wants to spend some money to send Sen. Russ Feingold (D-WI) to the Want Ads section of his local newspaper. He is a supporter of the right to choose, and the right to life organization is itching to advertise against the Senator with material that mentions him by name. Unfortunately for them, a law that bears the Senator's name, the McCain-Feingold Bipartisan Campaign Finance Reform Act, prevents them from doing so within 30 days of a primary election or 60 days of a general election. The group falls into that category along with any other organization which accepts money from corporations or unions. The suit, heard in a district court, was shot down in part because the Supreme Court had already rejected similar arguments in November 2002. According to the Associated Press, when told by WRL council that the Supreme Court was wrong, a district judge pointed out that it is also last.
Newspapers face circulation inflation conflagration
In a way, broadcasters are lucky. A station may wish to wring the necks of the good folks at Arbitron, Nielsen and Eastlan when facing a decline in audience, but at least someone the temptation to take matters into their own hands are nonexistent. They can't physically count the tune-ins occurring in the market.
RBR observation: Newspapers face another problem - - the availability of news and info on the Internet. | More... |
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Adbiz ©
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 US ad spend Rose 6.4% in first half 2004
US ad spending for the first half 2004 rose 6.4% over the same period last year, due to gains across major media, according to preliminary figures released by Nielsen Monitor-Plus. Political spending combined with an increase from traditional advertisers helped fuel spending for the first six months of the year. The automotive category saw the largest dollar increase, as major automotive companies, such as DaimlerChrysler and Nissan, continue to boost the ad economy. | More... |
Mexico Tourism Board spends 8.2 million on US effort
The Mexico Tourism Board launched this week an 8.2 million US TV, print and online campaign that targets Hispanics. The ads depict Mexico as a place visitors can see cultural festivities and become part of them as well. Spend includes 845,000 dollars on Univision and Telemundo, using the tag, "Regresa a Mexico d la mejor manera: de vacaciones" ("Return to Mexico the best possible way: on vacation"). The English-language commercials, via Y&R Mexico City, use the tag, "Beyond your expectations." In the spots, a golfer asks the caddy who found a lucky ball lost on the golfer's last trip to play a round, an American woman is invited to join a family wedding, and a group of older women are charmed by a local guide. In another, an exec in America office gets a music-filled call from his new friends in Mexico that causes him to drop everything and book a trip back to Mexico. Print spend includes People en Espanol.
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August Solutions Digital Magazine
Complimentary Report
No more Forward Pacing Reports.
We have the economic, political, and close up look at your 4th quarter of business and what must be done to hit budget by year's end.
GM of Cadillac, Mark LaNeve
tells it like it is on where he
spends ad dollars.
Read RBR in 2 simple steps:
1.Create a simple account with Zinio to download the free Zinio Reader.
2. You can then download the free
July Issue of RBR.
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Thats it!
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Media, Markets & Money tm
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 SBS sells pair for 120 million
Spanish Broadcasting System is selling its 93.5 mHz simulcast in Southern California to de-leverage its balance sheet. The stations - - KZAB Los Angeles and KZBA Riverside-San Bernardino - - are going to Styles Media Group for 120 million dollars. Yes, that is the same Styles Media Group which currently owns stations in Panama City, FL, Dothan, AL and Southwest Georgia. Styles will be creating a new duopoly with KWIE-FM Riverside-San Bernardino, but will keep the LA signal as well to move way up in market size for what had been a small-market group. | More... |
Ready-made business for Boston Business AM
Take the money and run is the normal mantra for the seller of any going concern, broadcasting or otherwise. In the case of WBIX-AM in Boston, however, the seller has guaranteed to be a good customer for at least 12 months. Langer Broadcasting Corp. is the current licensee name, although the Langer family sold it's 82.5% stake in the station some time ago, to Brad and Bonnie Bleidt's Perspectives Broadcasting, for 10M dollars. The Bleidts have been running a Business format on the station. They are now selling to Christopher Egan for 7M dollars, 2.5M of which will be paid later pursuant to a promissory note. There are two other interesting aspects to this deal. For one, the Bleidts have agreed to purchase 20K dollars a month of airtime at the going rate for a full year, totalling 240K dollars. Also, the parties have agreed to retain station employee Mark Mills for the same period at a 100K salary, 60K of which will be paid by the seller, with only 40K paid by the buyer.
Larry has a little Lamb/The Butler did it
From one non-com to another is an apt way to describe the sale of WTBU-TV in Indianapolis - - it's going from Butler University to Indianapolis Community Television, headed by Marcus Lamb, for 4M dollars. In fact, broker Larry Patrick tells RBR that the deal is now completed - - it was announced earlier this summer. Analog WTBU operates on Channel 69 facility, with DTV activity on Channel 44. This is Butler's second station spin. Back in 1993 they made put even more change into their pocket with the sale of an FM station. That's because its non-reserved band WGRL-FM was able to go commercial, which it did under the auspices of Susquehanna Radio, who we believe paid somewhere north of $7M for it (RBR 5/17/93).
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Washington Beat
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 Stations caught driving without a license
Have you ever been pulled over, noticed a startling omission in the gear you have with you, and find yourself explaining to the arresting officer that your license must be in your other pants? Something akin to that happened in Winston-Salem NC to Gospel Media's WSMX-AM, and in Charleston WV, to Maranatha Broadcasting's WXAF-FM. Both failed to get their paperwork in order in a timely manner. WSMX's license application was due 8/1/03, and WXAF was due 10/2/03. The failure to get a required form in on time can draw a fine of up to 3K dollars, and the operation of an unlicensed facility, the logical result of failing to get a new license, is good for a 10K dollar hit. However, in both cases, the FCC said "We find that neither of Maranatha's/GMI's established violations constitutes a 'serious violation' of the Commission's rules warranting designation for evidentiary hearing. Moreover, we find that these violations, when considered together, do not evidence a pattern of abuse." So the FCC is willing to call an oversight an oversight, and granted renewed licenses to both. The stations will not get off scot free, however. Each will be forwarding a 6K dollar check to Uncle Sam, although they still have the right to appeal that decision.
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Legal Ease
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 Bipartisan Campaign Reform Act
By Gregg P. Skall and Peter Gutmann, communications attorneys with Womble Carlyle Sandridge & Rice, PLLC. They can be reached at 202-857-4441.
With the 2004 campaign season upon us, it has become critically important for broadcasters to have a clear understanding of the impact of the "Bipartisan Campaign Reform Act of 2002 (BCRA)." It is already clear that new spending limits imposed on the Presidential candidates following the nominating conventions will divert substantial campaign funds to the political parties and other special interests for advertising that supports the candidate's positions but is not bought or paid for by the official candidate committee. Further, many states have a variety of issue initiatives on the November ballot and there is some confusion whether the BCRA applies to advertisements addressing these issues. While the new Act applies to campaigns for Federal office and focuses primarily upon political fundraising and expenditures, several provisions do have a direct impact upon broadcasting and cable: | More... |
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Transactions
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KSTR-FM Grand Junction CO (Montrose CO) from Leggett Broadcasting Inc. to MBC Grand Broadcasting Inc.
WISE-FM Wise VA from University of Virginia's College at Wise to Virginia Tech Foundation Inc.
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Stock Talk
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Inflation down, stocks up
Stock prices moved up Tuesday on news that the government's Consumer Price Index was down slightly for July, easing inflation fears. Even a new high for oil prices didn't dampen traders' enthusiasm. The Dow Industrials rose 18 points, or 0.2%, to 9,973.
Radio stocks were up even a bit more. The Radio Index rose 0.882, or 0.4%, to 221.228. Arbitron jumped 2.4% on rumors that the ratings company had signed a new contract with Infinity (confirmed after the market close in our daily MediaMix). Fisher had another strong day, up 3.4%, and Disney rose 2%.
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Radio Stocks
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Here's how stocks fared on Tuesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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34.45
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+0.81
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Jeff-Pilot
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JP
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48.46
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-0.03
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Beasley
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BBGI
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13.19
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+0.09
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Journal Comm.
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JRN
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15.85
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-0.33
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| Citadel |
CDL |
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14.27 |
-0.24 |
Radio One, Cl. A
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ROIA
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15.20
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+0.25
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Clear Channel
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CCU
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35.49
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+0.10
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Radio One, Cl. D
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ROIAK
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15.04
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+0.29
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Cox Radio
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CXR
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17.27
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+0.19
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Regent
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RGCI
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5.96
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+0.06
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Cumulus
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CMLS
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15.74
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+0.26
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Saga Commun.
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SGA
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18.16
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+0.17
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Disney
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DIS
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21.98
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+0.43
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Salem Comm.
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SALM
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25.95
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-0.58
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Emmis
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EMMS
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19.80
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-0.14
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Sirius Sat. Radio
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SIRI
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2.24
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+0.02
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| Entercom |
ETM
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38.70
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+0.53
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Spanish Bcg.
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SBSA
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8.08
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-0.02
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Entravision
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EVC
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8.17
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-0.08
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Univision
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UVN
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34.63
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-0.04
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Fisher
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FSCI
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48.94
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+1.62
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Viacom, Cl. A
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VIA
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34.14
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+0.01
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Gaylord
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GET
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27.53
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+0.06
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Viacom, Cl. B
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VIAb
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33.68
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-0.07
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Hearst-Argyle
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HTV
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23.70
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-0.09
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Westwood One
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WON
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23.23
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+0.14
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Interep
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IREP
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0.58
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-0.06
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XM Sat. Radio
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XMSR
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25.78
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+0.01
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International Bcg.
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IBCS
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0.02
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unch
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-
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-
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- |
-
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-
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Have a news story you'd like to share? [email protected]
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RBR Audiocast
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08/18 - Listen to what Real Local Radio Should Be... Listen to this morning's AudioCast and
Hold On To Your Hair!
 Listen Now
with Bob DeCarlo'
"In Da Morning"
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Bounceback
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We want to hear from you.
This is your column, so send your comments to [email protected]
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Broadcasters Helping Broadcasters
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Now that Hurricane Charley has cut a swath through Florida, it's likely that several broadcasters are among the local businesses who suffered damage from the storm's high winds and flooding. We were informed, for example, that Genesis' WHOO-AM Orlando lost two towers in the midst of its broadcasting emergency information. If your station suffered hurricane damage and is in need of equipment to get back on the air, please notify us by email, [email protected], so we can post the need and see if another broadcaster is able to come to your assistance. Be sure to include contact information.
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Upped & Tapped
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Tex heads to
Ol' Virginie
Clear Channel Radio has plucked Tex Meyer out of Tampa, where he was Director of Sales for Mega's WMGG-AM and WLCC-AM, and named him Market Manager for CC Radio's nine-station cluster in the Roanoke-Lynchburg, VA market.
McGuinn in control
Backyard Broadcasting has promoted Catherine McGuinn to Vice President and controller. She has been with Barry Drake's company since its first acquisition in 2002.
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Competing Media
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NRB joins chorus against a la carte
It seems like a good idea - - letting cable TV subscribers pick and choose channels and pay for just the ones selected. The thrust of the a la carte cable menu is against borderline indecent programming, with MTV and Comedy Central getting the most mentions as channels parents may wish to put out of reach of children. Many, including powerful Senate Commerce Committee Chair John McCain (R-AZ) question why someone should pay for something they then have to go to the trouble of blocking. | More... |
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Stations For Sale
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California Central Coast
Class A, Rated Market
Asking 1.8M, Cash
Gallup, NM 100kw
Asking 550K-Terms, or 495K-Cash
Brett Miller / MCH Enterprises, Inc. (805) 237-0952 Direct
www.mchentinc.com
Outstanding and attractive real estate and equipment.
Western New York small market AM/FM combo.
No local competition.
Priced at 1.65M.
10 times trailing cash flow.
Contact Dick Kozacko.
Kozacko Media Services. [email protected]
607-733-7138
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RBR Radar 2004
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Click on these issues for Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
Bullish on clutter cutting
Wachovia Securities analyst Jim Boyle has studied the plan and is now a believer, although he's warning investors that there could be a tough patch in Q1 of next year.
RBR observation: Interesting take on the clutter since Boyle's focus was just about the same question of group heads to the conferences RBR monitored. RBR agrees with Boyle, as we first saw the winds blowing in Naples long before Charley that the "cracked" radio model should be fixed by cleaning up clutter, but it won't happen overnight.
08/17/04 RBR #160
Broadcasters responded to
changing Charley
Broadcasters jumped into action and fulfilled their most important role - - informing the public - - as Hurricane Charley devastated Florida. The Olympics took a back seat to storm coverage for NBC affiliates and just about every station - - AM, FM, TV and local cable - - pulled out all of the stops to deliver emergency information to viewers and listeners. RBR observation: This was broadcasting at its best. Radio coverage was less impressive, for the most part, given the limited scale of radio news operations in recent years, but at least they were providing useful information - - even if, in some cases! That meant carrying audio from a better-staffed TV partner. For NBC affiliates, general managers had to decide on Olympic coverage and they made the right decisions. Read the total report. 08/16/04 RBR #159
Hearst-Argyle ready to go private
Anyone who follows broadcasting stocks knows that Hearst Corporation has been a voracious buyer of Hearst-Argyle stock on the open market. Hearst has continued to be the company's largest shareholder throughout those seven years. RBR observation: They have the right idea and if they go private Hearst just may be the leader some public companies, especially in radio, need to get the heck out of that Wall Street rat race. We've heard the saying - 'If Wall Street doesn't Love us then we will buy back our stock' - can't continue saying it forever. 08/16/04 RBR #159
Emmis assents to consent,
agrees to pay
Enriching the US Treasury by 300K dollars following in the footsteps of Clear Channel, but not leaving anywhere near as large a footprint in payment. It will also scrub clean the radio group's file. As part of the deal, Emmis admitted that is broadcast at least some actionably indecent material. RBR observation: There must've been something at least mildly juicy in the hopper.
08/13/04 RBR #158
Infinity nailed
Everyone's been waiting for the other shoe to drop on Viacom/Infinity. Infinity's been fined, but we're STILL waiting for the other shoe to drop. The fine is for airing a phone call on Urban WBLK-FM Buffalo NY without first informing the caller. It's a 4K dollar forfeiture order. Infinity tried to wriggle out of it, to no avail. RBR observation: We're all wondering when the real fine will come - - the Howard Stern doozy. The FCC already hit up Clear Channel to the tune of 495K dollars for a Howard show aired on only six stations. How hard can it be to figure out how much Infinity owes for all of its Howard stations? And what about the Super Bowl incident? Is anything going to come of that? Can Viacom/Infinity's vow to fight have anything to do with the delay? 08/13/04 RBR #158
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Dir. Affiliate Relations
Waitt Radio Networks seeks Leader to Manage Affiliate Sales Team plus handle a regional territory. GM experience required. Must relocate to Omaha, NE Office. Competitive compensation and benefits. Contact Rod Schmidt.
For more on all ad details above
see Radio Careers |
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