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Volume 24, Issue 161, Jim Carnegie, Editor & Publisher
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Friday Morning August 17th, 2007
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Radio News ®
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 Entercom and Nassau
in New England partnership
Entercom announced a letter of intent has been signed to have 11 Nassau Broadcasting stations carry the programming content of Entercom's Sports/Talk WEEI-AM Boston throughout New England. And, in a separate letter of intent, Entercom and Nassau agreed to form a joint venture to own and operate Nassau's Classical WCRB-FM in Boston. Entercom has already extended the WEEI brand to three markets on its wholly owned stations: WEEI-FM in Providence, WVEI-FM in Springfield, MA, and WVEI-AM in Worcester, MA. Now Nassau will carry that brand to 11 stations in five more markets: Portland, ME; Cape Cod, MA; Lebanon-Rutland-White River Junction, NH-VT; Concord, NH; and Montpelier-Barre-St. Johnsbury, VT. As for WCRB, the deal will maintain its heritage Classical format in the Boston market. Entercom will make an as-yet-unspecified cash investment and own 50% of the station. Entercom currently owns two AMs and three FMs in Boston. "We could not be more pleased with our new partnership with Nassau Broadcasting, but the big winners today are millions of listeners across New England. Nassau and Entercom have come together to preserve WCRB and its cherished Classical format that has provided a home for the arts for hundreds of thousands of listeners in the greater Boston area. In addition, we will be bringing America's #1 sports radio station to millions of listeners throughout New England for the first time," said Entercom CEO David Field in a joint announcement. "After our acquisition of the station less than a year ago, we have been overwhelmed by the positive response from our listeners with regards to both our preservation of the Classical format in Boston and the improvements we have made to enhance the station and its programming. Now, as partners with Entercom, the premier broadcaster in Boston, we believe that both our listeners and advertisers will benefit greatly from the partnership," added Nassau CEO Lou Mercatanti.
 Back behind a mic
He's out of federal prison after serving nearly five years for corruption, but he can't run for Mayor of Providence, RI again until 2012, the next election after his probation is over. So, what's Buddy Cianci going to do? He's heading back to his other career, as a radio talk host, going back behind the mic on Citadel's WPRO-AM. When we last wrote about Vincent "Buddy" Cianci (11/22/04 RBR #228) he was residing in a federal prison in New Jersey and WJAR-TV Providence reporter Jim Taricani was facing house arrest for refusing to disclose who gave him an undercover FBI videotape of a top aide to then-Mayor Cianci taking a bribe. Cianci was released from a halfway house last month and WPRO has announced that he will become part of its daily lineup beginning September 20th. The station's opening web page declares "Buddy's back!" WPRO has been a second home for Cianci. He was a talk host there back in the 1980s when someone else was actually mayor for a few years before he made a political comeback. Again, in 2002, after his conviction but before he had to report to prison, Cianci again took to the airwaves at WPRO. Ex-con he may be, but he is still a colorful radio host. "Buddy Cianci has a tremendous personality and extensive knowledge of Rhose Island," Citadel Providence GM Barbara Haynes said in announcing his hiring. WPRO is now reworking its daily schedule and has not said what time slot will go to Cianci.
Consolidation comes to piracy
We suppose it had to happen. Emile Marcel of East Orange NJ has been caught running unlicensed FM operations on not one but two frequencies. According to the FCC, Emile was operating on both 96.7 MHz and 104.7 MHz in this community in the shadow of New York City. The FCC says the buccaneer has not responded to notice of apparent liability, so has upgraded it to a forfeiture order worth 10K.
RBR observation: We suspect the FCC, if it had wanted, could have considered this a double violation and upped the ante to 20K as well. Marcel may actually be getting off easy.
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Jacobs backs Regent dissidents
Included in the lawsuit that Regent Communications has filed against Riley Investment Management and SMH Capital are copies of faxed letters from Regent co-founder and former CEO Terry Jacobs joining in the request for a special shareholders meeting. Jacobs, however, is not named as a defendant. He did not return a call from RBR seeking comment on what he wants to see happen at the company he co-founded with current CEO Bill Stakelin. In his letter, Jacobs declares that he is the holder of 400,031 shares of Regent stock. His request is identical to that filed by Riley and investors represented by SMH calling for a special meeting on September 3rd to change the company's bylaws to increase the size of the board of directors and elect the four nominees proposed by Riley. In its federal lawsuit, Regent charges that Riley has violated federal securities laws by soliciting support for its efforts without filing any proxy information with the SEC. Regent accuses SMH of failing to make the SEC filings required of anyone owning 5% or more of a stock issue of any public company, while it now controls over 15% via various clients. Regent also charges that SMH has been shopping Regent to potential buyers without any authority to do so. "Defendants have concealed their concerted efforts and aim to steal control of Regent's board not only because they desire to avoid paying a control premium and hope to obtain that premium for theselves [sic] in a forced future sale, but also to avoid the anti-takeover protections that may be triggered if full disclosure of their full shareholding, purposes and group actions are made," Regent charged in its lawsuit.
RBR observation: Not every major shareholder approached by Riley agreed to submit a demand for a special shareholders meeting. Regent's lawsuit says long-time director Jack Wyant, who owns over 8% of the company's stock, was solicited by John Ahn, one of the men Riley wants to place on the board, but that Wyant declined to join in the call for a special meeting.
 Warchest report
The good news for the Republican Party is that its Republican National Committee (RNC) is mopping up the floor with its counterpart Democratic National Committee (DNC) so far this election cycle. And at the state and local level, it's maintaining a slight edge. But the Senate and House committee totals are so heavily skewed in favor of the Democrats that they are sitting on a slight lead in cash raised and a much larger lead in cash on hand. At this point in the campaign cycle, Democrats have pulled in 110.5M and still have 50.9M of it in the bank, compared to Republican receipts of 108.8M and 31.8M still on hand. Another ominous sign for the Republicans has to be the trajectory these numbers represent. In both categories, the Democratic line points skyward - looking back to 2003-2004, with receipt-to-date totals of 56.4M to 86.3M to the present 110.5M total. The Republican line is more of a droopy bell curve with the droop decidedly unfavorable. It starts at 139.1M, rises slightly to 142.7M and then drops precipitously to the current 108.8M. Gains among Democratic receipts over the 2005-2006 cycle were not enough to cover the drop in Republican receipts, so total cash on hand is down from last time. This may in part be due to donation siphoning from the large number of presidential campaigns competing for cash. Between them, they now have 82.7M to spend. In terms of cash on hand, the Democratic Congressional Campaign Committee (DCCC) holds a huge 19.5M to 2M over the National Republican Congressional Committee, and the Democratic Senatorial Campaign Committee (DSCC) has two times the firepower of the National Republican Senatorial Committee (NRSC) with 20.4M compared to 10.2M.
| More color on financials |
Citadel signs for PPM
Arbitron proudly announced the signing of another giant radio group for Portable People Meter (PPM) ratings data as the new service rolls out to the top 50 markets. Although Citadel is in most of the top 10 markets by virtue of its recent acquisition of ABC Radio, it happens not to have stations in the first two PPM markets, Houston and Philadelphia, so the next launch, in New York, will be the first PPM market with Citadel stations. The seven-year contract that Arbitron announced yesterday will cover 41 stations, including 22 former ABC stations, in 14 markets: New York, Los Angeles, Chicago, San Francisco, Dallas, Washington, Detroit, Atlanta, Minneapolis, Salt Lake City, Providence, Nashville, New Orleans and Memphis. And, of course, Arbitron including a glowing quote from Citadel CEO Farid Suleman: "We believe that the PPM will significantly enhance radio's accountability and reach, ultimately resulting in increased commitments to radio by advertisers."
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Ad Business Report TM
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A look at an alternative "Ratings Book"
Some broadcasters pride themselves on local relationships and local dollars, eschewing the need to subscribe to or show Arbitron ratings services to clients. Whitney Radio's (WVIP-FM and WVOX-AM) Bill O'Shaughnessy is one example, publishing his own "ratings book" chock full of positive reviews and feedback from advertisers and regular guests he's had on the stations over the years. Says O'Shaughnessy in the book, subtitled "How two New York stations managed to attract 549 major advertisers without paying a dime for 'ratings'!": "As you may know, I wear it as something of a "badge of honor" that we have refused to pay "tribute" to any so-called ratings service which could never accurately reflect the history, lineage and unique relationships we have with our sponsors and listeners. And thus my son David persuaded us to assemble "Volume II" which I think is pretty impressive indeed."
| Advertiser testimonials |
 Hyundai names LatinWorks
as national Hispanic AOR
Hyundai Motor America has selected LatinWorks as its national Hispanic marketing and advertising AOR. The selection was announced following presentations by five agencies at HMA's national headquarters in Fountain Valley, CA. last week. The agency will begin working immediately on national Hispanic advertising for Hyundai. The first campaign is expected to appear shortly in Internet, broadcast and print media.
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| Media Business Report TM |
Another tough month at the Times
July ad revenues for the News Media Group (newspaper/radio/related websites) were down 5% for the New York Times Company to 146.2 million bucks. National was up 2.4%, while retail fell 5.3% and classified declined 14.5%. Hardest hit was the NY Times Co. regional newspapers, with ad revenues down 10.9%. The New York Times Media Group, primarily the New York Times itself (and WQXR-FM) saw ad revenues decline 2.9%. The New England Media Group, led by the Boston Globe, saw ad revenues decline 4.9%. Meanwhile, online revenues were a bright spot. Within the News Media Group results, Internet ad revenues rose 19.3%. The About Group, led by About.com, which is reported separately, saw revenues rise 34.7% to 8.3%. A year ago, the NY Times Co. had 12.4 million in TV revenues for July, but that was zero this year, since the stations were sold.
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| Media Markets & Money TM |
Radio One spins all the way out of Louisville
Most of Radio One's Louisville stations went to Dan Savadove in a 76M transaction that also included stations in the Dayton market. One lonely orphan licensed across the Ohio River in Charlestown IN, WLRX-FM, was left in the Radio One portfolio. It now has a buyer, non-commercial WAY FM Media Group, headed by Robert D. Augsburg. The price is 1M even. As in the bigger deal, brokerage Star Media Group represented Radio One; Patrick Communications sat on WAY FM's side of the negotiating table.
Houston adds in the DC exurbs
WPRZ-AM is located in Warrenton VA, just outside the Washington DC Arbitron market, and its about to join two other similarly-situated AM stations in the portfolio of Metro Radio Inc., a family operation led by radio veteran Bruce Houston. Metro is getting the station from Steve Buchanan's Praise Communications for 1.1M. It'll form a cluster with WKCW-AM, also out of Warrenton, and WKDV-AM Manassas VA. According to documents filed with the transfer application, the Manassas station is the only one considered to be part of the Washington market.
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| Washington Media Business Report TM |
 Update on bird issues
BirdLife International is a worldwide group dedicated to preserving endangered species of birds, and it is mobilizing to protect some 200 varieties in particular. It is now seeking 37.8M for the effort from concerned donors, according to the Associated Press. Among the problems facing the endangered birds are loss of habitat and overdevelopment, invasive competitive species and other predators, and poaching. The cash will be allocated to habitat protection and to raising the awareness of the general public. We dug a little further into the BirdLife International website, and found this paragraph on the hardships faced by migratory species: "Migratory birds face a multitude of threats during migration. They may fall victim to hazardous weather, lack of food or water, or predators. On top of this, hundreds of millions of migrants are trapped and shot every year in many countries. Staging and wintering areas are often subject to human alteration: forests are being converted to plantations, savannas are affected by desertification, wetlands are drained, converted to agriculture or heavily used by tourists."
RBR observation: We do our best to be kind to birds at our own house, giving them a place to find food, water and shelter, and we are glad that concerned organizations are making a serious effort to look after their welfare. We also note that this particular organization did not get around to mentioning communications towers, even when discussing migratory species that are supposed to be most at risk. Does that mean the ongoing birds v. towers flap isn't that big of a deal?
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| Entertainment Media Business Report TM |
Westwood sets NFL kickoff
With its exclusive national radio rights to the NFL, Westwood One is set to air 57 "primetime" games in the 2007-2008 season, featuring the Opening Night game, Monday, Sunday, Thursday, and Saturday Night games, Thanksgiving Day games, Sunday Afternoon Doubleheaders, the NFL Playoffs, the AFC and NFC Championships, Super Bowl XLII from Arizona and the Pro Bowl. WW1's 21st consecutive season of NFL Football coverage begins Thursday, September 6th, at 7:30 pm ET as the defending Super Bowl champion Indianapolis Colts host the New Orleans Saints. In addition to the 57 game primetime package, WW1 will present a weekly Sunday afternoon doubleheader starting Sunday, September 9th, and continuing each Sunday through December 30th.
Donna, Neal Boortz raise 70,000
for Wounded Warrior Project
Donna Boortz, wife of Jones Radio Networks syndicated talk show host Neal Boortz, held a fundraiser Aug. 9 at The Ravinia Club in Atlanta where she raised more than 70,000 for The Wounded Warrior Project, a non-profit organization that helps provide services and comfort for severely wounded members of the Armed Forces. Boortz staffers Belinda Skelton, Royal Marshall and Cristina Gonzalez chipped in to help with the evening, as did a wide range of Boortz advertisers. "Every year we participate in an event where a club member serves as 'bartender' and some of the proceeds from the drinks and tips go toward that member's charity," explained Neal Boortz. "The hundreds of people who showed up to bid on the items donated by my wonderful advertisers and area businesses really got into it. Donna told me that she hoped to raise at least $25,000. When the total was announced, she broke into tears." Added Donna Boortz, "Every person there, no matter how they might feel about the war, left knowing they had done something to help the men and woman who have sacrificed so much for our country."
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| Internet Media Business Report TM |
Hearst-Argyle launches
 High School Playbook
Hearst-Argyle Television has launched High School Playbook (highschoolplaybook.com), a product to bring high school sports action to all three screens -- TV, web and mobile devices -- by leveraging Hearst-Argyle Television's local and national resources. It is the first high school sports programming venture to combine social networking with music, statistics and robust, high-definition video, provided by professional TV videographers; users from throughout the country; and specially trained student journalists, who will be designated Sideline Reporters, equipped with Canon HV20 HD camcorders. Highschoolplaybook.com includes comprehensive school information, game schedules, statistics, individual athlete profiles, interscholastic comparisons, and "game day" weather reports provided by the Doppler radar technology at Hearst-Argyle's local stations. Social media elements include MySpace- and facebook-like community tools including personal profile pages, team pages, school pages, cheerleader pages, fitness and nutrition pages, SMS voting and other messaging that enables byplay among rival schools and fans. "Mashable" content allows users to populate other social-networking environments for increased engagement in and distribution of the High School Playbook brand. Video content encompasses game highlights, exclusive sideline interviews, bloopers, gameday reports, athlete profiles and "battle of the band" performances by competing schools' marching bands. High School Playbook will become the new on-air and online brand for Hearst-Argyle station coverage of high school athletics, with regular features as part of the sports reports on Hearst-Argyle's market-leading local TV newscasts. The brand launches initially in seven of Hearst-Argyle's 26 markets. Three stations - KCRA Sacramento; WTAE Pittsburgh; and WBAL Baltimore will provide High School Playbook features within their existing YouTube Channels. Four additional stations - WESH Orlando; WLWT Cincinnati; WYFF Greenville/Spartanburg, SC; and WXII Greensboro/Winston-Salem, NC -- are initiating YouTube pages with High School Playbook content in connection with the announcement.
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| Transactions |
330K KTNC-AM Falls City NE from C.R. Communications Inc. (Charles Radatz) to KNZA Inc. (Gregory F. Buser, Robert B. Hilton, William Douglas Weinberg III). 30K escrow, balance in cash at closing. Station forms AM-FM combos three non-overlapping FMs, including KNZA-FM Hiawatha KS, KMZA-FM Seneca KS and KLZA-FM Falls City NE. [File date 7/25/07.]
49K FM CP Wadley GA from Jackman Holding Company LLC (A. Wray Fitch III) to Radio Training Network Inc. (Michael Watkins, James L. Campbell et al). 24.5K earnest money, balance in cash at closing. Buyer is non-profit entity. CP is for Class A on 93.3 MHz with 6 kw @ 354'. [File date 7/25/07.]
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| Stock Talk |
What a wild ride!
More worries about the credit markets sent stock prices plunging for most of the session Thursday, but bargain hunters swept in late in the session and turned it all around. The Dow Industrials, which had been down 340 points, were barely up just before the closing bell, but finished down 16 points, or 0.1%, at 12,846. The S&P 500 was up slightly and the Nasdaq Composite was down slightly.
Radio stocks managed a second straight up day, although most stocks had been down earlier in the session. The Radio Index rose 1.995, or 1.6%, to 123.481. Salem was the star performer, surging 23%. Journal rose 11.1% and Citadel gained 5.6%.
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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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50.90
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-0.50
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Google
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GOOG
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491.52
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-6.03
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Beasley
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BBGI
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7.14
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-0.11
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Hearst-Argyle
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HTV
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19.74
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-0.16
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| CBS CI. B |
CBS |
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29.31
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-0.18
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Journal Comm.
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JRN
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11.36
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+1.13
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| CBS CI. A |
CBSa |
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29.28
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-0.38
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Lincoln Natl.
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LNC
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56.57
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-0.45
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| Citadel |
CDL |
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4.50 |
+0.24 |
Radio One, Cl. A
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ROIA
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3.90
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+0.04
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Clear Channel
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CCU
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34.52
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-0.59
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Radio One, Cl. D
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ROIAK
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3.94
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+0.10
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Cox Radio
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CXR
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12.82
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unch
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Regent
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RGCI
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2.90
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-0.11
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Cumulus
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CMLS
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9.31
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-0.02
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Saga Commun.
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SGA
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7.95
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+0.21
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Debut Bcg.
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DBTB
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1.00
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unch
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Salem Comm.
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SALM
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9.09
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+1.70
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Disney
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DIS
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32.58
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+0.87
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Sirius Sat. Radio
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SIRI
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2.71
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-0.17
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Emmis
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EMMS
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6.20
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-0.13
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Spanish Bcg.
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SBSA
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2.88
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+0.02
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Entercom
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ETM
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21.15
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+0.65
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SWMX
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SMWX
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0.08
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unch
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Entravision
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EVC
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8.20
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+0.05
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Westwood One
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WON
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3.01
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-0.05
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Fisher
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FSCI
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48.79
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+1.70
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XM Sat. Radio
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XMSR
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10.55
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-0.63
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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]
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Below the Fold
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Ad Business Report
Alternative Ratings Book
Only from Bill O'Shaughnessy is one example publishing his own...
Media Business Report
At the Times
Another tough month July ad revenues for the News Media Group were down 5%...
Media Markets & Money
Radio One spins again
This time all the way out of Louisville...
Internet Media Business Report
High School Playbook
Hearst-Argyle has a product to bring high school sports action to all 3 screens...
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Stations for Sale
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The Exline Company
AMs - San Jose,
Salt Lake City, Fresno
FMs - Northern CA, Coastal CA,
Central CA, Idaho, Oregon
Call Andy McClure or Erick Steinberg
(415) 479-3484 [email protected]
 Market your Stations For Sale
in our daily epapers.
Contact
June Barnes
[email protected]
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More News Headlines
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NAB takes its case straight to Microsoft; WaPo weighs in
The failure of a Microsoft device intended to operate in the cracks between broadcast stations to pass muster at the FCC has only led to renewed requests for more tests. The NAB is asking for a common sense approach which means tabling this concept until the DTV conversion has been pulled off successfully. NAB EVP Douglas S. Wiley has fired off a letter to Microsoft has fired off a letter to Microsoft's Jack Krumholtz asking that they cease and desist. "As you know," he wrote, "even a small amount of interference freezes a digital picture, making it unwatchable. This affects new DTV sets and government-subsidized digital-to-analog converter boxes." He also noted the Pandora effect: "Once millions of unlicensed devices are in consumers' hands, they cannot be traced or recalled. Interference may come form the next apartment or from a neighbor down the street." NAB is calling for fixed systems to make use of available spectrum so such problems can be avoided. Meanwhile, the Washington Post used its editorial page to add its two cents. As an owner of television stations, it is dead set against allowing TV-potentially TV-obliterating devices into this spectrum. It said, however, that it has no problem with continued research and development.
NABOB set for
fall conference
National Association of Black-Owned Broadcasters is set to meet in Washington DC 9/27-28/07 for its 31s Annual Fall Broadcast Management Conference. Hot topics will include the relationship of programming and audience (including the impact of consolidation), the possible PPM minority undercount, restoring the station transaction tax certificate and the threat of performance fees both over the air and the Internet, and the proposed XM/Sirius merger.
Wrong company
Arbitron Radio Advisory Council Chairman Steve Sinicropi is employed by Cox Radio, not Clear Channel as referenced in yesterday's RBR.
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RBR Radar 2007
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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Regent fires back
After being sued last week by Riley Investment Management, which is trying to force a special shareholders meeting (8/10/07 RBR #156), Regent Communications has now sued Riley in Delaware Federal Court, along with SMH Capital, accusing Riley and SMH of federal securities law violations.
RBR note: For the complete details on this fight review RBR.
08/16/07 RBR #160
Icahn knows how to play the spread
Carl Icahn may be known as a corporate raider, but he is also an arbitrageur. With Clear Channel's stock trading well below the price of its pending going-private buyout, it appears Icahn has been buying shares to turn a quick profit.
RBR observation: We would not be surprised to find when the Q3 report is filed that Icahn has added to that Clear Channel stake. The credit nervousness in the markets recently beat the stock down as low as 35 bucks. There are no indications, though, that the buyout is in danger of falling apart.
08/16/07 RBR #160
Arbitron working to
boost PPM samples
Arbitron officials said yesterday that they are working to replace households classified as poor responders in its first two PPM markets and that it is taking longer than expected.
RBR observation: Is there going to be a one-year shakeout period in every top 10 market, with buyers trying to pay 70% of what they should be paying? You can't blame them for trying. Rate integrity is already a big problem, and worse in some of the largest markets than elsewhere. A lot of education is going to be needed for media planners and buyers, but then radio stations are going to have to stand firm on rates (anyone remember how to do that?) so that they are not paying 65% more for a new ratings system that reduces the value of their inventory by 30%. Ouch!
08/16/07 RBR #160
Imus settles, heading to WABC?
Esiason, Carton to WFAN
Imus will soon return to the airwaves "on WABC in New York!" CBS Radio announced that former NFL quarterback and veteran CBS Sports broadcaster Boomer Esiason and Craig Carton, host of the nation's most listened to afternoon FM talk radio program [WKXW New Jersey 101.5 The Jersey Guys], have been named as hosts of "Boomer and Carton in the Morning," to be broadcast weekday mornings beginning 9/4.
RBR observation: Imus was CBS Radio's cash cow show after Stern left. As one recent story in New York Magazine said, "Imus used to sell spots for 1,500 that are now going for, like, 200." Imus will be worth more to WABC in audience and dollars than Boomer to WFAN - at least initially. Imus' program was reportedly worth about 15 million in annual revenues to CBS Corp. through advertising on WFAN and syndication fees received from MSNBC and Westwood One. As well, in the CBS Q2 Quarterly Report, radio operating income decreased 40.2 million, which was explained by "weakness in the radio advertising market." In the prior quarter with Imus still at CBS Radio, operating income decreased by 5.8 million with the same mention of ad weakness. CBS's Radio division contributes 30% of operating profits to CBS Corp., so he was significant. Likewise, WFAN's Arbitron ratings for Fall 2006 were 2.6. Their Winter 2007 ratings, including the period after he was fired, were 2.1. That's a 20% drop for the station as a whole - very significant. Bottom line - Imus returning is good for NYC radio just like WCBS-FM returning to their roots of oldies. It is called Ad Dollars returning to local and also show the strength of Programming Content, Presentation, and Talent. Learn from this.
08/15/07 RBR #159
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New Listing
Sales Associate
A fast growing network radio company seeks a Sales Assistant for its Chicago office. The ability to multi-task and prioritize are paramount in this position, as is the willingness and desire to learn in a fast paced environment. Please send resumes with cover letter to: [email protected]
See Radio Careers
Hard finding that key person
to fill the important position at your organization? Media HeadHunters is the place that key media firms use to get results. See Media HeadHunters and get results with service.
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