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Volume 22, Issue 161, Jim Carnegie, Editor & Publisher
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Wednesday Morning August 17th, 2005
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Radio News®
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Susquehanna delays quarterly report
Folks at the corporate headquarters of Susquehanna Media have plenty to do these days dealing with would-be buyers as they work to sell the radio/cable company. But now they also have to deal with a comment letter received August 9th from the Securities and Exchange Commission with questions about the company's annual report for 2004 and quarterly report for Q1 of this year. Because of that, Susquehanna Media has delayed filing its Q2 report until it confers with its independent accountants and determines what changes, if any, need to be made. Susquehanna Media Treasurer Alan Brayman tells RBR/TVBR that the Q2 report was all ready to go and should be filed in just a few days after the SEC letter is dealt with. At this point, the company has not decided whether to make any public disclosure of the specifics of the SEC comment letter.
 FTC slams credit report company
Consumerinfo.com Inc., which was operating as Experian Consumer Direct, has been ordered by the FTC to abandon a misleading advertising campaign, pay back deceived customers and "give up 950K in ill-gotten gains." The company used radio, TV and online advertising to lure its customers. It offered free credit reports and a 30-day "free" trial of a credit report monitoring service. What it failed to make clear was the fact that it was automatically billing a 79.95 fee to anyone who did not cancel during the 30 day period. According to the FTC, Consumerinfo required a valid credit card account number, and said, "Your card will not be charged during the free trial period." It did not adequately explain that the card would be charged thereafter, and in that light, the unauthorized billings are a violation of federal law. FTC also alleges that Consumerinfo deceptively attached itself to a federal program which does or will provide consumers with one free credit report annually from one of "three national consumer reporting companies." The program, authorized by Congress in 2003, is already up and running in some western states and will be universally available in the US on 9/1/05.
 Dole goes to bat for reporters shield
Ex-US Senator and Republican 1996 presidential standard-bearer Bob Dole has taken to the pages of the New York Times to express support for a bipartisan bill which would create a national reporters shield, allowing reporters leeway when trying to protect the identities of anonymous sources. Dole discussed the current incarceration of NYT's Judith Miller, noting that if the associated case was being prosecuted at the state level, she likely would be protected. He noted the current morass of inconsistencies, and argued that the bill would set "clear standards the federal government must meet before it issues a subpoena to a reporter in a criminal or civil case." He said the thrust of the legislation was not to provide reporters with an elevated level of freedom, but rather to make sure the American people have access to information that reporters may not otherwise be able to uncover. He also had an answer for those that think lack of a shield would make it harder to prosecute crime. "But this argument," he wrote, "ignores the dozens of whistle-blowers who would not share information about government wrong-doing with the press unless they felt reporters could protect their identities."
RBR observation: The only people who need fear whistle-blowers are those in danger of being the object of the whistle. Maybe that's why there seems to be a shortage of politicians who are willing to stand up and speak out against this bill. That's the cynical view, anyway. Maybe it's just so obvious that the shield is a necessary tool for journalists that everyone who goes on the record takes the high road. The test will be putting on the floor for a vote. Will that happen or will this go into the same holding cell as the Broadcast Decency Enforcement Act of 2004...we mean 2005?
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 BIA acquires Dataworld
BIA Financial Network announced that it had acquired the assets of Dataworld, which will now operate as a division of BIAfn. Best known for its technical engineering studies and mapping services, Dataworld also has web-based data services, technical directories and reports, plus custom research services, which will now broaden BIAfn's own offerings to station owners and managers, attorneys and consulting engineers. "Both BIAfn and Dataworld have long served the media industry with comprehensive data services, publications and custom research reports. By adding the Dataworld suite of products and services to the BIAfn portfolio, our expanded media information services will comprehensively serve the research needs of the media community," said BIAfn CEO Tom Buono.
RBR observation: There's a sort of family reunion here. Dataworld was founded by Jack Neff and his son, John, worked there for many years before joining RBR/TVBR. But John Neff now works at BIAfn, so it appears he'll once again be selling Dataworld products to clients.
CCE loses bet in Las Vegas
If you're wondering why Clear Channel Communications is so anxious to get rid of its Clear Channel Entertainment (CCE) unit, you need only look at what's going on in Las Vegas. CCE was supposed to make big profits from managing the celebration of the city's centennial. But sponsorship sales fell short of expectations. Now the Las Vegas Review Journal reports that CCE has come back to the city government and asked to be reimbursed 627,209 for cost overruns from staging a free public concert by the Red Hot Chili Peppers in July as a major event of the centennial celebration. CCE says it got hit with extra costs because the concert was moved on short notice to a different site at the request of local government officials. So far, Mayor Oscar Goodman has put the request on hold, saying he'll consider it at the end of the year. But other members of the centennial committee told the paper that CCE is a for-profit company that took a risk - - and that there's nothing in its contract that would justify the payment. Meanwhile, the local Penny Press weekly, run by broadcaster Fred Weinberg, put the dispute on the cover of his latest issue and suggested that Clear Channel has gotten so large that some employees are no longer even aware of the company creed established by founder Lowry Mays - - reading in part, "We believe in maximizing our customer's satisfaction, we will deserve and will earn their continued loyalty. Our goal is to have long term, mutually profitable relationships." Instead, according to Weinberg, CCE is now trying to make its customer pay for the company's failure to perform on its contract.
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Adbiz©
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IRTS presenting
"The Power and Appeal of Radio Advertising"
IRTS Foundation is presenting a Q&A Radio Seminar Friday, 9/16 from 8:30-10:00AM. "The Power and Appeal of Radio Advertising" is the topic. There has been a lot of talk this year about the transforming landscape of the radio industry including competition from Internet and television advertising, the trend to reduce ad inventory clutter to attract more listeners, and closer scrutiny of each marketing dollar's impact. The panel will discuss the positive impact radio has on their clients and why radio should always be a part of every media plan.
Moderator:
Charlie Rutman, CEO, MPG North America
Panelists:
* Peter Gusmano, Sr. Partner & Director, Client Services, MindShare
* Irene Katsnelson, VP, Director of Network Radio, Universal McCann NY
* Dennis McGuire, VP, Regional Spot Director, Carat - USA
* Natalie Swed Stone, U.S. Director, National Radio Investment, OMD
* Kim Vasey, Senior Partner, Director of Radio, Mediaedge:cia
The location is NBC, 30 Rockefeller Plaza, Mezzanine. Attendance is complimentary, but reservations are required. Send name, title, company, phone & e-mail for each person to: [email protected]
 DISH Network campaign promises
"Better TV for All"
DISH Network has unveiled a nationwide branding and advertising effort with a money-saving offer for new customers. The campaign, declaring that DISH Network is "Better TV for All," will appeal particularly to dissatisfied cable customers. The campaign promotes DISH Network's commitment to protect television viewers across the country from inferior picture quality, sub-standard customer service and high prices forced upon them by cable providers. The campaign's new elements include updated graphics, a re-designed website and a television, print and radio advertising effort. An FCC report on cable industry prices released in February confirmed that DISH Network programming packages cost 20% less than those typically offered by digital cable. Based on public reports, 1.2 million households have switched to satellite TV since January, bringing satellite's share of pay-TV users to more than 25%. "Research indicates that most cable subscribers don't know the benefits of satellite TV," said Michael Neuman, EchoStar President/COO. "A significant percentage of them have no idea that DISH Network is less expensive than digital cable despite DISH Network's lowest all-digital price in America. This new campaign will educate those unhappy cable TV watchers."
CBS to promote "Out Of Practice"
 with Ads on water coolers
CBS is on a mission to create water cooler buzz for new comedy "Out Of Practice." With the tag, "Quench Your Thirst for Comedy," the CBS Marketing Group announced it will reach viewers by advertising on AquaCell Media's water cooler systems and cup holders. The cast of will be featured on water coolers in hundreds of Rite Aid and Duane Reade stores. The drug store placement is ideal since the comedy is about a family of five doctors. CBS's drug store marketing also includes advertising for its Monday comedy line-up on prescription bags. The tag, "Prescription-Strength Comedy" is used to plug the comedy block which includes returning hits The King of Queens and Two and a Half Men and new shows How I Met Your Mother and Out of Practice. AquaCell Media's "Message On The Bottle" advertising program installs its patented self-filling AquaCell Bottled Water Cooler System into various locations free of charge under a multi-year agreement and retains ownership of the "billboard" water cooler. Revenue is generated through the sale of the advertising space on the bottle band and cup holder of the permanently attached five-gallon bottle to companies that provide products and services pertinent to the demographics and location.
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| Media Markets & MoneyTM |
EMF remains in acquisition mode
Educational Media Foundation is continuing to rack up frequent acquirer miles, this time landing in Wichita Falls TX. According to brokers Greg Guy and Summer Foust of Patrick Communications, the Religious noncom outfit has a 600K deal for KTEO-FM. EMF, which buys on either side of the noncommercial/commercial divide (between 91.9 and 92.1 mHz), is going to the lower reserved band this time, getting a 90.5 mHz facility from Cornerstone University. The station, currently sending out a Children's format, will most likely switch to EMF's Contemporary Christian K-LOVE Network.
Close encounter of Florida's Gulf coast
Salem Communications has completed the 9.5M acquisition of WNTR-AM (formerly WGUL-AM) in Tampa-St. Pete and WLSS-AM in Sarasota-Bradenton. The seller was Carl Marcocci's WGUL-FM Inc. The stations are now carrying a conservative Talk format.
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| Washington Beat |
Pennsylvania shaping up to be '06 battlefield
 Battlefield states in the presidential election of 2004 where those which featured a divided electorate, usually in locations on the border of confirmed blue and red areas. It'll be a different story in 2006, when the battlegrounds will have much more to do with which Senators are among the one/third or so up for re-election. Many of these hot races will be fish-out-of-water battles, such as Republican Lincoln Chaffee in blue Rhode Island, or Democrat Ben Nelson in red Nebraska. The biggest, however, may well be in one of 2004's true battlegrounds, Pennsylvania. There, Republican incumbent Rick Santorum is facing a tough fight with Democrat Robert Casey Jr. Casey is treasurer for a state which has also had a governor with the same name, minus the Jr. The late Robert Casey Sr. is Jr.'s father, giving him name recognition and, for now, a lead in the polls, according to the Associated Press. Both candidates are rapidly building warchests - - AP says Santorum us shooting for 25M and is over a fifth of the way there - - and both will likely get tons of support from national party organizations. Expect the requests for air time to come early and often.
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| Programming |
Saga launches "The Hog" in Milwaukee
Saga blew up active rock WLZR-FM (Lazer 103) Milwaukee yesterday and launched "the Hog," offering wider menu of mainstream rock and Classic Rock with the slogan "Everything that rocks." The air staff remains, but is running jockless for now. The Bob & Brian morning show stays as well.
NAACP protests Richmond radio show
 The NAACP is planning a protest of a Richmond, VA radio show, calling it offensive, reports Jefferson-Pilot's NBC12 News. CC Radio's "The Beat" WBTJ-FM's new syndicated morning show, "Star and Buc Wild," caused several viewers to call and complain about the show's content. Now Virginia's NAACP is launching a protest against the station's management. The show is taped in NYC. Virginia's NAACP and several other groups plan to hold a press conference on the issue.
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| Ratings & Research |
July Webcast Metrics report out
Ando Media has released its monthly Internet Radio Top 20, a listing of the top-performing Internet radio stations and networks measured by the Webcast Metrics audience measurement platform. For the first time, Ando Media has released a second daypart showing that most Internet radio listening occurs during the 6:00 am to 8:00 pm national at-work daypart. "Internet radio is a great way to reach a condensed, at work audience," says Jordan Mendell, CTO of Ando Media. "Networks such as the Net Radio Sales Network show an average quarter hour increase of 31% when the daypart is narrowed to reflect the at-work daypart." | View the Numbers |
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| Transactions |
4,267,900 WBUC-AM & WBRB-FM Elkins-Buckhannon-Weston WV (Buckhannon WV). 100% of Cat Radio Inc. from Richard H. McGraw & Karen McGraw to David A. Raese & John R. Raese. 210K escrow, 2M cash, promissory note. Existing superduopoly. Buyers also enter into LMA/option for sellers' WELK-FM Elkins WV & WBTQ-FM Buckhannon WV. [File date 7/12/05.]
2M KMJY-FM Spokane WA (Newport WA) from Radio Station KMJY LLC (Thomas D. Hodgins) to Proactive Communications Inc. (Gerald D. Clifton, Greggory McMillion). 50K debt forgiveness, 1M cash at closing, 950K note. [File date 7/12/05.]
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| Stock Talk |
Wal-Mart worries scare Wall Street
Wal-Mart delivered disappointing results and blamed lower consumer spending on high gas prices. That sent the market into a tail spin, with retailing stocks particularly hard hit. And, as you'd guess, broadcasters were also hit, since retail advertising is a big deal for both radio and TV. The Dow Industrials fell 121 points, or 1.1%, to 10,513.
Virtually all radio stocks were down. The Radio Index dropped 2.817, or 1.4%, to 206.301. Entercom declined 2.4% and Citadel 2.3% as the poorest performers. One of the few gainers was Beasley, up 2.7%.
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| Radio Stocks |
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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41.93
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-0.57
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Jeff-Pilot
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JP
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49.97
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-0.23
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Beasley
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BBGI
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14.15
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+0.37
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Journal Comm.
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JRN
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15.96
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unch
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| Citadel |
CDL |
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13.43 |
-0.32 |
Radio One, Cl. A
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ROIA
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13.66
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-0.24
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Clear Channel
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CCU
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33.36
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-0.59
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Radio One, Cl. D
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ROIAK
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13.70
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-0.21
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Cox Radio
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CXR
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15.47
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-0.33
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Regent
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RGCI
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5.51
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-0.14
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Cumulus
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CMLS
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12.72
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-0.21
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Saga Commun.
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SGA
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13.80
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-0.30
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Disney
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DIS
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26.26
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+0.09
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Salem Comm.
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SALM
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19.00
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-0.08
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Emmis
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EMMS
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21.28
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-0.35
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Sirius Sat. Radio
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SIRI
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6.56
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-0.13
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| Entercom |
ETM
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33.45
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-0.83
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Spanish Bcg.
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SBSA
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7.90
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-0.07
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Entravision
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EVC
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8.07
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-0.09
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Univision
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UVN
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26.99
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-0.20
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Fisher
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FSCI
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44.74
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-0.82
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Viacom, Cl. A
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VIA
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34.86
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-0.61
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Gaylord
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GET
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44.32
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-0.34
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Viacom, Cl. B
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VIAb
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34.77
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-0.62
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Hearst-Argyle
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HTV
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25.97
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-0.23
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Westwood One
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WON
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20.72
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-0.21
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Interep
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IREP
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0.69
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-0.04
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XM Sat. Radio
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XMSR
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32.80
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-0.67
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International Bcg.
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IBCS
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0.01
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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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Bounceback
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 We want to
hear from you.
This is your column, so send your comments to [email protected]
Mr. Personius (8/9/05 RBR #155) deserves an enthusiastic response for his well thought-out argument regarding Mr. Fuss (7/20/05 RBR #141). He is right on every point. It is sad that there are so many in TV and radio that seem to lack basic human dignity and decency. It takes no talent to appeal to the lowest base instincts in human beings. I, for one, salute Ed Personius and others who have the guts and talent to rise above such garbage.
Les Lanser
President,
Lanser Broadcasting Corp
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Upped & Tapped
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New VP at Radio One
John Mathews has been promoted to Vice President of engineering at Radio One. He had been the company's Director of Engineering since February 2000. Also, John Soller, who had been Assistant Director of Engineering, has succeeded Mathews as Director of Engineering.
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Stations for Sale
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Suburban NYC AM
Good population coverage. Comes with studio/transmitter site. Fulltime station w. low night power, upgrade possible. 1.6M. 781-848-4201
[email protected]
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August Digital Magazine
Now Available
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MBR
People Make the Difference
Who are the real influential people
in the Media today?
Not who you think.
Regulatory Update
Case closed on closed captioning
It's all about money
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
August Issue of RBR/TVBR
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RBR Radar 2005
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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Spot loads down, rates up
Harris Nesbitt analyst Lee Westerfield confirms that radio inventory was cut in July - - by an average of 7.5% in the top 10 markets, with Clear Channel cutting far more - - a whopping 26.5% from a year ago. And he notes that "yield per minute" is increasing, as reported by CCU and some other groups in their quarterly conference calls. Even so, says Westerfield, "We caution investors that radio may at best be able to achieve our +1.6% growth forecast for the year." RBR observation: But back to the yield-per-minute news, which is where the long-term good news lies. Westerfield calculates that revenue per minute increased 7-8% in July for the top 10 markets. That's what will make LIM worthwhile for Clear Channel and for other groups who are also cutting inventory to push up prices. It will, however, take time. 08/16/05 RBR #160
Tepid growth for broadcast
That is what Veronis, Suhler sees projects a shift from advertiser-supported media to media where consumers make their own selections - - with more marketing dollars following them to those new media entities. As such, projecting unimpressive growth for broadcasting over the next few years. "We believe the broadcast radio sector is transitioning from a growth business to a mature one," the report says. With radio revenues expected to rise only 2.7% this year (which is higher than many Wall Street estimates), VSS is projecting that radio revenues will rise at a compound annual rate of 4% through 2009. The forecast isn't much better for TV. VSS sees the spikes in even years (election/Olympics) becoming less pronounced than in the past five years due to such challenges as DVRs and increased competition from cable and the Internet.
08/16/05 RBR #160
MBR -- Is Rupert about to Blinkx?
News Corporation was working on an acquisition in the Internet search arena. In his view, it was a very important acquisition, although he said he doubted that Wall Street would think it very significant. Blinkx, a privately held Internet search engine (blinkx.com). What apparently makes the company so attractive to Murdoch is that its voice recognition software searches podcasts, Internet videos and, yes, even TV, not just text. RBR observation: The connection is obvious. With Blinkx, News Corp. would be able to provide viewers with a way to search for programs of interest on its broadcast and cable networks - - and likely license it to other broadcasters (both radio and TV) as well. Rupert and his Team with Roger Ailes see beyond today or just now. It is today, tomorrow, next week and next year. 08/16/05 RBR #160
Gary Fries bids adieu as
RAB must prepare for new era
RAB Executive Committee has been notified, Gary Fries told the committee that he would not seek a renewal when his contract as President and CEO expires the end of 2006. RBR observation: For those who do not remember the line of succession it has been Miles David, Bill Stakelin, Warren Potash and Gary Fries with his 15 years is quite a run. 08/12/05 RBR #158
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Hey Talk Radio GSM
Are you a direct "animal" with the savvy to manage transactional business? Top 20 market waiting for the right GSM. Need a top performer with a proven track record of success to take a new Talk station to record heights. Can you attract and grow top sales talent - build and lead a top performing sales organization? What about maximizing inventory, on air and off, of a high profile talk format? Answer is - Yes - (no calls) send your resume in Confidence to -
[email protected]
See Radio Careers
3 Positions Available
Eagle Radio has the following positions available: Board Operator (entry-level), Board Op/On-Air Announcer, and Programming Manager. - See Radio Careers
General Manager
Saga Communications Brad Eure retires and we seek his replacement with a radio professional that has passion and commitment to the radio business to take the leadership at WWWV / WQMZ & WINA Charlottesville, VA. Saga, we believe in our people. Interested then tell us about yourself. -
See Radio Careers
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©2005 Radio Business Report, Inc. All rights reserved.
Radio Business Report -- 2050 Old Bridge Road, Suite B-01, Lake Ridge, VA 22192 -- Phone: 703-492-8191
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