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Radio News ®
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 Interep and Citadel
settle rep-flip battle
Interep and Citadel have settled their legal dispute over Citadel's rep flip of last October - - jumping to rival Katz from Interep's McGavren Guild. Interep had sought damages of 65 million dollars in the arbitration proceeding that's now been settled, although no one is saying how much cash is actually changing hands. Interep had claimed that Citadel improperly breached its rep contract, but Citadel had countered that it had cancelled for cause, due to poor performance. But now the matter has been settled and Interep CFO Bill McEntee claims both parties are happy with the outcome. "It allows us to stop the legal fees, stop the negative press and move on with business," he told RBR. "It is in the best interest of our current radio clients and the entire industry to reduce the level of intramural conflict within our industry. In a soft advertising environment, we must unite as an industry to take share from competing media," said Interep CEO Ralph Guild. A Citadel spokesman said the company would have no comment on the settlement.
RBR observation: It looks like we may have to wait until the two public companies file their Q3 financials to find out just how this came out. Somehow, we doubt that Citadel's Farid Suleman wrote a check for anywhere close to 65 million to end this. For Interep, though, it was important to maintain its position that a broadcaster can't just walk away from a rep contract if he thinks the other rep (and there are only two major ones, after all) can bring in more bucks.
 RBR observation - - Why Arbitron
stands unchallenged
Although plans by The Media Audit and Infinity Broadcasting to develop Radio Ratings USA are apparently still going ahead, despite Infinity signing a new contract with Arbitron last week, creation of a second radio ratings competitor in major markets is an idea that's unlikely to succeed in today's marketplace. Sure, plenty of radio stations would welcome having an alternative to Arbitron. | More... |
New rules for 527s...in 2006
The Federal Election Commission has voted to put new restrictions on the activities of groups engaged in electioneering activities. The new rules would alter the playing field for many groups currently running political advertising, but they will not take effect until the 2006 election cycle, according to the Associated Press. The new rules would impose reporting requirements on the organizations - - they'd have to detail both contributions and expenditures - - and would impose new requirements that money expended on overhead and general voter registration campaigns, as well as any ads, phone banks, and/or mailers in which a candidate for federal office is mentioned, must be at least 50% funded with hard money. When raising money, such groups will be required to inform potential donors that the money may be used either for or against a particular federal candidate.
RBR observation: Will the new rules have any real effect? At least one of the FEC commissioners who voted against the new package - - it passed 4 to 2 - - thinks that it will be easily sidestepped. If recent history is any indication, he's probably right. The 527 lawyers no doubt are warming up the microscopes to begin the loophole hunt.
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Eastlan enters Palm Springs
Making it clear that Arbitron-rated markets are no longer off limits for the ratings company, Eastlan announced a multi-year deal to begin providing audience measurement data in the Palm Springs market. Clients there include Glen Barnett Incorporated, a small family- owned broadcast company. "This is another example of how small-market, independent broadcasters seem to be leading the movement toward a customer-focused ratings company. They are serious about finding a more responsive and more affordable way to provide their clients with fresh market data," says Eastlan President Mike Gould. Eastlan will measure Palm Springs twice each year beginning with the Fall 2004 survey period.
Publisher's observation: To find out more about the ratings business just scroll back up and read 'Why Arbitron stands unchallenged' there you will find the perspective of the History of Radio Ratings. Stop trying to reinvent the wheel when you have a service in the field now called Eastlan. Don't know much about them but broadcasters if you are serious then at least talk with them.
To sell, or not to sell? Is that your question? Part 1
If you've thought of selling your radio or TV station(s), how do you know if now is the right time to sell? And how do you figure out how much it's worth? After all, no one wants to leave money on the table, nor do they want to put on a price tag so high that the sale never happens. If you are in the market to sell, or just pondering the possibilities, we've gathered some expert advice to help you figure out whether and when to pull the trigger. We asked veteran broker Frank Boyle, of Frank Boyle & Co., what should people be considering if they are thinking of selling their station? | More... |
 Liberal watchdog
asks reporters to cooperate
FAIR (Fairness and Accuracy In Reporting) is calling on the reporters being asked to reveal sources in the Valerie Plame and Wen Lee Ho cases to do so. It argues that protecting legitimate whistle-blowers is one thing. But in these two cases, the reporters are instead implicit in aiding the government to damage individuals with selective leaks, an underhanded tactic that it says should be exposed. "Some have resented these cases as government assaults against the freedom of the press," wrote FAIR. "But in neither case were reporters reporting on government activities; rather, they were taking part in a government activity, namely the selective and illegitimate revelation of information to damage an individual." Commenting on a statement by Lucy Dalglish of the Reporters Committee for a Free Press concerning the difficulty of prying information out of a more and more secretive government, FAIR argues, "Dalglish misses the larger context, which is that the government's misuse of the power of information involves both concealing and revealing information as it suits its purposes." FAIR concludes, "The First Amendment exists so that the press can be a check on government abuse of power, not a handmaiden to it." The FAIR comments are equal opportunity. It takes the Bush administration to task in the Plame case, and the Clinton administration in the Lee case.
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Adbiz ©
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 RBR First - Part II
Mark LaNeve, GM's
new VP/Marketing and
Advertising speaks
Photo: Mark LaNeve and Jim Taylor.
RBR Q: You mentioned more radio. Tell us why. LaNeve: I haven't thought it through completely, Carl, but I think that as the products continue to improve (you and I have talked about we have a quality perception deficit right now in the market), | More... |
Schwab launches review
Charles Schwab has reportedly opened a review for its 95 million advertising account. Select Resources International is handling. GSD&M Austin, Texas, is the incumbent.
Buyer comments on RAEL report
Matthew Warnecke, VP/Mgr Network & Local Radio, MediaCom, commented on last week's unveiling of the first report "Personal Relevance; Personal Connections: How Radio Ads Affect Consumers," from the RAB's Radio Ad Effectiveness Lab (RAEL-8/19 RBR Daily Epaper #162): "I just think it's a general indicator that the RAB is stepping up to the plate and being conscientious about making the medium better. And those of us, myself included who participated in the committee, are interested in a better product and being smart, not only about negotiating, but about the environment and its impact on a consumer. We'll be taking this to our clients."
Bush reelection campaign
won't stop running Olympics ad
President Bush's re-election campaign will continue to run a TV spot that mentions the Olympics by name, despite objections from the U.S. Olympic Committee. "We are on firm legal ground to mention the Olympics and make a factual point in a political advertisement," Scott Stanzel is quoted in the AP. USOC officials had protested that federal law gives them the exclusive rights to the name. The ad shows a swimmer and the flags of Iraq and Afghanistan. "In 1972, there were 40 democracies in the world. Today, 120," an announcer says. "Freedom is spreading throughout the world like a sunrise. And this Olympics there will be two more free nations. And two fewer terrorist regimes." The Bush campaign contends the law in question gives the committee exclusive rights only to use the Olympics name to sell goods or services or to promote athletic competition. The campaign avoided using the symbol of five rings in the ad. The ad will continue to run for the last two weeks of August.
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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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KVNA-FM Phoenix move-in bought for 22.6 million
Peppertree Capital Fund and M/C Venture Partners have signed an agreement to purchase KVNA-FM 97.5 mHz serving Phoenix, AZ (Dewey-Humboldt/Phoenix) from Three Point Media-Arizona, LLC (owned by Chris Devine and Bruce Buzil) for 22.6 million in cash. They keep their 100 kW signal a the new site-Towers Mountain (Crown King, 40 miles NW of Phoenix). Elliot Klein of Klein Broadcast Engineering did the engineering budgets. The move-in should occur this year. KRXS must move first. The chain is: KVNA is a move-in to the mountainous area north of Phoenix from Flagstaff. KRXS-FM ("Town & Country") Globe/Phoenix, AZ (97.3) was paid to move frequency to 94.1 for the move-in to occur. City of license stays in Globe. It remains a C2 with hopes of upgrading to C1. KRXS expects to have improved coverage all the way down to Tuscon after the move. KXKQ-FM Safford, AZ must also move from 94.1 to 94.3 and downgrades from C1 to C2. Everyone is currently waiting for the release of the CPs. The closing of this transaction is expected to occur in Q4 or the Q1 of 2005. Americom's Tom Gammon represented the seller.
CCU's Elmira Ackerley LMA comes into the fold
The Ackerley Group had been running WETM-TV in Elmira NY for over a year when it sold most of its broadcasting assets to Clear Channel for 800M (RBR 10/15/01). Although Clear Channel took over the operation of the Channel 18 NBC affiliate, it has remained since as a licensed property of Smith Television of New York. However, those days are about to come to an end. Clear Channel has filed to acquire the station outright in a deal which will send 13M dollars Smith's way. There should be no legal impediments to the deal, despite the freeze imposed by the 3rd Circuit Court on the FCC's attempt to loosen cross-ownership caps. That's because this happens to be one of the rare radio markets which have not been graced by the presence of the San Antonio giant.
Tips on how to buy a station, Part 1
In a recent speech to the Minority Media and Telecommunications Council, attorney Erwin Krasnow of Garvey Schubert Barer, and co-author of "Radio Deals: A Step by Step Guide," published by RBR, offered tips for people looking to buy a radio or TV station. Here's tip #1 on the negotiating process:
"Assemble a strong team to assist you in the negotiations. On your negotiating team you should have: Lawyer or lawyers, an engineer & a CPA (Perhaps an acquisition consultant)
They will help you to understand the impact on you of various provisions and help you look at the transaction from the seller's point of view. Their knowledge of the station, the market and industry norms will strengthen your ability to negotiate."
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Washington Beat
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Bitter bidder business?
It turns out that Minnesota Public Radio wasn't the only entity interested in acquiring WCAL-FM from St. Olaf College. According to an article at the Star-Tribune.com, noncom Contemporary Christian/K-Love Network O&O Educational Media Foundation made what it thought was a higher bid than the 10.5M offered by MPR for the station. However, as reported in RBR, there was more to the MPR bid than meets the eye, including substantial promotional time for St. Olaf's, plus employment guarantees to existing WCAL staffers. Broker Larry Patrick pegged the total value of the MPR offer at 12.2M. St. Olaf board members voted overwhelmingly to accept the MPR bid. They made no bones about the fact the MPR had a big home-town advantage. At least one board member said that MPR's pledge to find an unserved format niche was also a factor, an advantage over EMF's probable reliance on its standard Contemporary Christian format, which one board member said was already readily available in the area.
CP for TV Marti
TV Marti, which fires off programming to Cuba on Channel 13, has received an FCC go-ahead to modify its facilities, based on a request from President George W. Bush and the State Department. The Commission is allowing the changes without the usual comment and response period since, as if the authority of the White House and the State Department isn't enough, the request is being made pursuant to an act of Congress. The FCC was careful to admonish the new CP holders that they must not interfere with any Commission licensees, and that the term of the change was limited to six months, and six months only, at which point it will be evaluated.
RBR observation: The message is clear - - it doesn't matter who you are, don't mess with the FCC. The purveyors of Channel 13 - - particularly the good folks at Media General's WMBB in Panama City, which appears to be closest to Cuba - - can rest assured that the watchdog is on the job. Mere geopolitical considerations will not get in the way of our right to see "Good Morning America" interference-free.
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Programming
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 Emmis adds a Bob
Emmis has added the popular Bob-FM format to its KEYI-FM (formerly Oldies) 103.5 frequency in Austin. Bob plays hits from the 60s, 70s, 80s, 90s and 2000s and offers less clutter. Scott Gillmore, VP/market manager of Emmis-Austin Radio, notes, "Bob loves Austin, BOB loves music and BOB has a really big CD collection."
WLIR to flash back for a Labor Day weekend
New Yorkers, don't miss it: WLIR-FM Long Island/NYC (previously on 92.7 in its heyday), one of the nation's foremost trend-setting stations in the Alternative/Modern Rock arena in the 80's and 90s, makes a return this Labor Day weekend. Beginning 9/3 at noon, TMO Alternative WLIR (107.1 The Box) will flashback for four days with all the original station imaging and programming. Original jocks, jingles, commercials, vintage live concerts & artist interviews are included.
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Monday Morning Shakers & Makers
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Deals: 7/12/04-7/16/04
If you told us that the top deal would be for a noncommercial station, that three fourths of the stations sold would be in unrated markets and that there would be no TV stations sold, we'd say it would be a slow week. But given all that, 40M dollars is a pretty good total, especially during the summer doldrums.
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Total
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Total Deals
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15
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AMs
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7
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FMs
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20
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TVs
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0
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| Value |
 40,125,010
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| Complete Charts |
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Radio Deal of the Week
Non-com deal grabs the top slot
| More... |
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TV Deal of the Week
Out to lunch, check back next week
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Transactions
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WMFD-FM/WRQR-FM & WAZO-FM Wilmington NC (Wilmington, Oak Island NC) from Ocean Broadcasting II LLC to NextMedia Group Inc.
WSFM-FM & WKXB-FM Wilmington NC (Southport, Burgaw) from Sea-Comm Inc. to Ocean Broadcasting II LLC
WSFM-FM & WKXB-FM Wilmington NC (Southport, Burgaw) from Ocean Broadcasting II LLC NextMedia Group Inc.
| More Details |
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Stock Talk
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The week ended on an uptick
Stock prices got a boost Friday as oil prices eased a bit. The Dow Industrials rose 69 points, or 0.7%, to spend the weekend at 10,110.
Radio stocks went along for the ride. The Radio Index gained 4.979, or 2.2%, to close at 230.898. Spanish Broadcasting System shot up 6.2%, apparently getting yet another burst from it sale of two Southern California stations for 120 million dollars. Beasley was up 5.9%. Interep, a penny stock, jumped 37.1% after announcing a settlement of its legal dispute with Citadel.
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Radio Stocks
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Here's how stocks fared on Friday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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39.13
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+0.87
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Jeff-Pilot
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JP
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48.20
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-0.10
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Beasley
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BBGI
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14.48
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+0.80
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Journal Comm.
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JRN
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16.24
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+0.25
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| Citadel |
CDL |
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14.82 |
+0.19 |
Radio One, Cl. A
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ROIA
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16.00
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+0.15
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Clear Channel
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CCU
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36.14
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+0.66
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Radio One, Cl. D
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ROIAK
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15.90
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+0.16
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Cox Radio
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CXR
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17.70
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+0.42
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Regent
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RGCI
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5.96
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+0.17
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Cumulus
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CMLS
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15.93
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+0.28
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Saga Commun.
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SGA
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18.20
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+0.06
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Disney
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DIS
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22.44
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+0.04
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Salem Comm.
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SALM
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26.63
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+0.36
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Emmis
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EMMS
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19.96
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+0.15
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Sirius Sat. Radio
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SIRI
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2.23
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+0.03
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| Entercom |
ETM
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39.92
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+0.51
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Spanish Bcg.
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SBSA
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9.47
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+0.55
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Entravision
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EVC
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8.28
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+0.10
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Univision
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UVN
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34.65
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+0.12
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Fisher
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FSCI
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50.00
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+0.85
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Viacom, Cl. A
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VIA
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36.00
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+1.01
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Gaylord
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GET
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28.48
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+1.18
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Viacom, Cl. B
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VIAb
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35.61
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+0.92
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Hearst-Argyle
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HTV
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24.03
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-0.05
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Westwood One
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WON
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23.84
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+0.59
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Interep
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IREP
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0.85
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+0.23
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XM Sat. Radio
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XMSR
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27.55
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+0.28
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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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08/23 - 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]
A reader had comments on our recent story on Hispanic ratings. | More |
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Upped & Tapped
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Reed gets double duty
at Gaylord
After three and a half years as President and CEO of Gaylord Entertainment, Colin Reed is going to add the title of Chairman of the Board at next May's annual shareholders' meeting, as Michael Rose steps down to become Chairman of the board's executive committee. Although Gaylord has sold off most of its media properties in recent years, it still owns WSM-AM Nashville.
GM Planworks ups Mary Carpenter
Speaking of GM, GM Planworks Director of Operations Mary Carpenter has been promoted to EVP/COO. She's been with the GM-dedicated dedicated media planning unit within Starcom MediaVest Group since 2000.
ZenithOptimedia
ups Peggy Green
ZenithOptimedia has promoted EVP/Director of National Broadcast Peggy Green to President/Broadcast at Zenith Media. In her new position, Green will add local broadcast buying duties formerly handled by EVP Bonita LeFlore, who will soon retire.
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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.
RBR Observation - - Infinity vs. Arbitron: The aftermath
Like the Wall Street analysts and most people in radio, we at RBR were not surprised that Infinity came back to subscribing to Arbitron's ratings after just a few weeks of operating ratings free. It had been tried before and the result was always the same. We're right back where we started as Arbitron is still the undisputed king of US radio ratings.
08/20/04 RBR #163
Analysts' conclusion:
Infinity blinked
You'd be hard-pressed to find anyone in radio or on Wall Street who believed that Infinity's refusal to renew its ratings contract with Arbitron in June was the final word on the matter. But many had expected a longer hold-out by Infinity.
RBR observation: If you bought Arbitron's stock back in June, figuring this is exactly what would happen, it looks like you made about 3.4% over less than two months. But if you were lucky enough to buy in at the recent low just last week, your profit was over 18% if you sold yesterday. Not a bad return either way. Analysts Kit Spring and Alissa Goldwasser tell it like it is.
08/19/04 RBR #162
RAEL releases first study:
How Radio Ads Affect Consumers
How radio and radio advertising works with listeners, how to maximize ROI and how radio ads can improved upon for effectiveness.
RBR observation: We're still not sure if the radio groups are kicking in enough dollars to fund all of this (RAB doesn't supply the funding details for RAEL), but the big showed up and that's a good sign. Bottom line: Any study can say people have a more personal feeling with radio spots, but too many spots and annoying spots from any medium will turn them away. Next step: Let's fix the programming and invest in the creative production of radio's content. 08/19/04 RBR #162
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, 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.
RBR observation: Infinity's biggest problem with Arbitron was and always will be price.
08/18/04 RBR #161
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. There will still be ferocious competition between print and broadcast. Bottomline, newspaper's problems are broadcasting's gain. The scandals are another arrow in the quiver for broadcasting's street forces.
08/18/04 RBR #161
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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