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Welcome to RBR's Daily Epaper
Volume 23, Issue 165, Jim Carnegie, Editor & Publisher
Thursday Morning August 24th, 2006

Radio News ®

CBS radio sale Part II:
San Antonio

Border Media Partners (BMP) will have some new additions, and CBS will be one market closer to its selected sell-off of radio properties when the deal for KTSA-AM and KJXK-FM comes to a close. The deal is pegged at 45M cash, and will take CEO Tom Castro's Texas-based group to 37 stations. Although BMP already operates seven stations out of its San Antonio studios, Castro told RBR he won't have to divest anything because Air America affiliate KTXX-FM Karnes City, TX is in the suburbs and not counted by Arbitron as being in the metro. No format changes are planned as BMP goes to five Spanish and four English stations in the market. "In San Antonio, to win you need to do English, you need to do Spanish and you need to do Spanglish," Castro said of the diverse market. He believes BMP will be able to further build the audience and billings of heritage News/Talker KTSA. Castro said KJXK is being treated as a stick as far as pricing in the deal, but while the "Jack" format has stumbled in some other markets, he says it appears to "have legs" in San Antonio and his crew will make sure the music mix fits the local market. "It is a tribute to CBS, I think, that they gave us the opportunity and allowed us to compete with the big companies that were chasing these stations - you can imagine who wanted it - but CBS gave us a chance to get in there and fight and make our best offer, and at the end of the day we were the best deal for their shareholders," Castro said. The transaction, when added to the 262M four market sale to Entercom, brings the CBS take thus far to 307M.

RBR observation: Border is a regional group, of course, and according to the grapevine, it beat out at least one local bidder for the stations. But local owner doesn't mean the same thing in San Antonio that it means most other places, or for that matter, any other place. San Antonio is home turf for the largest radio group in the history of the world. RBR hears that the market's favorite son, Clear Channel, was an aggressive bidder, but lost out. It still has room to grow in its home market and KTSA competes head-to-head with flagship WOAI-AM.


GE exec takes VNU helm
Folks at Billboard, Radio & Records, Adweek, Nielsen Media Research and such have a new boss at VNU corporate headquarters. He has no media background, but David Calhoun is definitely a heavy-hitter as far as Wall Street is concerned. The new CEO of VNU and Chairman of its Executive Board had been a General Electric Vice Chairman and President of its giant GE Infrastructure division. "David has spent more than 27 years at GE where he has built a world-class record of success. He is superbly qualified to take VNU to the next level of growth and performance, as the company works efficiently and cohesively to enhance the value of its services, and pursues its many exciting strategic opportunities in the years ahead," said a statement from VNU's Supervisory Board, now dominated by representatives of the equity firms that bought out public shareholders and took the company private. With Calhoun on board, acting CEO Rob Ruijter will continue in his previous role of CFO.

RBR observation: One does not leave a Vice Chairmanship at GE at the peak of one's working life to preside over a break-up, so this move makes it clear that the new owners are out to build VNU (or whatever new name it soon takes) and have brought in a superstar CEO to take command. Our sources say the new owners have confidence in Susan Whiting as CEO of Nielsen Media Research and they recently brought in publishing veteran Robert Krakoff to head up VNU Business Media USA, so Calhoun doesn't need a background in media to do his job - streamline operations, set strategy to grow each of the businesses and tell the company story to the financial community. Folks on Wall Street who were familiar with Calhoun at GE were shocked that he went to a company as small as VNU to be CEO, but he indicated to Bloomberg that he was looking for an entrepreneurial opportunity. We doubt that his family will need to relocate to The Netherlands. Look for VNU to move its corporate headquarters to New York and, once the heavy lifting has been accomplished, launch an IPO.

Fox hostages seen on video
A previously unheard of group, the Holy Jihad Brigades, has claimed responsibility for abducting Fox News reporter Steve Centanni and cameraman Olaf Wiig in Gaza. The two appeared in a video asking for help to secure their release, which was a relief for their families and co-workers, since it was the first evidence since their kidnapping (8/15/06 RBR #158) that the two are alive and apparently in good health. The group holding them is demanding the release of Muslim prisoners held by the US. A statement accompanying the videotape delivered to an Arab TV network was unclear about just what prisoners the group wants released and equally unclear about what it might do to Centanni and Wiig if the demands are not met by noon local time on Saturday. "We are going to exchange the Muslim female and male prisoners in American jails in return for the prisoners that we have. Release our prisoners and we will do the same. This applies to all without exception. And every Muslim is more cherished and more generous that a 1,000 Bushes. But this is a tradeoff of equals. We will grant you 72 hours, that starts as of noon today during which you can look into this and if you carry out our condition we will carry out our promise, or else wait and we will wait with you and it will be in God's hands. And God's order is higher than any other and most people do not know. 'Those who have been injust will find out the consequences'," the hostage takers said in the statement. In the video Centanni said he and Wiig had access to clean water, showers, bathrooms, food and clothing. "Just want to let you know I'm here and alive and give my love to my family and friends and ask you to do anything you can to try to help us get out of here," the reporter said in the video. Wiig then asked for pressure to be put on the local government in Gaza and the West Bank to secure their release.


More shoes falling at Clear Channel
Clear Channel Radio CEO John Hogan alluded to additional changes to come last week as he promoted three people to Executive Vice President and put each over all radio stations in one section of the country (8/18/06 RBR #616). RBR sources say some of those changes were laid out this week in a conference call for top-level managers. In fact, a couple of Senior VPs of Programming who weren't invited to be on the call, while their peers were, are said to be expecting pink slips - but are still waiting for word from San Antonio. As expected, sources say, a number of big market managers were told that they are no longer Regional Vice Presidents, but Market Managers, reporting to their area's Exec. VP and no longer overseeing any smaller markets. The remaining Regional Vice Presidents will oversee medium and small markets. Still no actual announcements from Clear Channel, so stay tuned.

Agency looking to shift liability
The Broadcast Cable Financial Management Association (BCFM) has issued a red alert about new language being inserted into insertion contracts by advertising agency OMD which, in effect, shifts liability for advertiser repayment from the agency to the media company. Here's one version of the clause, as provided by BCFM: "In the event Agency returns to the advertiser any such amount paid agency by the advertiser, then Media Company will similarly repay such amount to Agency and look solely to Advertiser for payment. Any terms in your invoices, documents or rate cards to the contrary are of no force or effect. Any modifications to this form made by Media Company are of no force or effect." Another version adds this tag: "If as a result of a preference claim in connection with a bankruptcy proceeding, Agency reasonably determines that it is required to, and does, return to the advertiser any such amount paid to Agency by the advertiser, then Media Company will similarly repay such amount to Agency." BCFM and Broadcast Cable Credit Association (BCCA) comment, "Our concern is that accepting orders which include this language may mean that media companies expose themselves to unanticipated future liabilities. While not being a party to the discussions about repayment, media companies could be required to make such a repayment. In some cases the request for repayment may come two or three years after the buy was executed. BCFM and BCCA continue to recommend that media companies protect their interests by adopting a position of joint and several liability." They offer no advice as to whether to accept this language, but recommend that the broadcaster consider the risk in inserts into the transaction and discuss it with its legal department.


Ad Business Report TM

Miles taking buying at MediaCom;
Mandel movin' on up to GroupM

After WPP Group's purchase of Grey Global Group last year, which includes its media agency MediaCom, it was probably only a matter of time before agency-world icon Jon Mandel (Chairman/MediaCom US and Chief Global Buying Officer MediaCom Worldwide) would be brought into the GroupM fold. GroupM oversees all of WPP's media agencies, including Mediaedge:cia, MindShare, Maxus and MediaCom. Dene Callas, MediaCom CEO, continues in that role and a replacement for Mandel is not expected. However, former GM Mediaworks senior exec John Miles, pictured, will head buying ops and report to Callas. He starts after Labor Day. GroupM CEO Irwin Gotlieb tells RBR/TVBR Mandel will be working in the corporate development area, and that "we are in discussions on moving him to a significant GroupM role." Mandel tells RBR/TVBR he's not ready to comment yet, because "We're in the process of telling clients, we've told about half of them. And I don't want to be in a situation where I'm making comments to you guys when I've got clients I haven't talked to. I just can't give any real comments yet until we've reached all the clients."

CruiseCam launches global campaign
CruiseCam International announced it has contracted with Global Media Fund, Inc. to provide a nationwide campaign with distribution of feature articles to over 10,000 newspapers, news and wire services, and to more than 6,000 radio stations spanning up to a 12 month period, delivering an estimated 750,000 dollars worth of nationally syndicated newspaper space and radio airtime. "We are excited about the Global Media Fund advertising campaign. We believe that this nationwide newspaper and radio media inventory will provide CruiseCam with the ability to reach out to a broad diverse audience," said Scott Watkins, President and CEO of CruiseCam. "In addition, CruiseCam intends to use this campaign to back up the new distribution channels that we are in the process of launching." The CruiseCam line of products were initially invented to be the worlds first seat video and imaging apparatus. The systems are integrated into the seat while incorporating dual cameras and wireless microphones. The law enforcement industry was the first to use the system to replace dash or window mount systems. CruiseCam is the only OEM video recording product in the market today and has introduced a family of car tripods that mount in a variety of vehicles. CruiseCam recently celebrated the opening of its new factory in Troy, a suburb of Detroit. This location was chosen as a commitment to building a long-term relationship with Ford, GM, and Chrysler.


HD Radio 2006
Beasley launching Reggae,
Deep Classic Rock on HD-2

Wow - Reggae hits HD Radio. Beasley Broadcast Group will begin airing new, unique programming at WRXK-FM's sister rock music station, K-Rock Legends 96.1 HD2 and reggae hits at WXKB-FM's sister station, Beach 103.9 HD2 in the fall. Legends will feature deeper classic rock songs listeners don't usually hear on the radio. It will provide a complement to the mass appeal classic rock already featured on 96-1 K-Rock. Beach 103.9 HD2 will also showcase new and classic reggae music, including Bob Marley and the Wailers and Sean Paul.

RBR observation: It's nice to see groups delving deeper into the format pool - providing the competition radio needs against the wide variety of Internet and satellite formats. Our last rant on that (see AdBiz): (7/31/06 RBR #147).


Media Markets & Money TM
Trying to get that early holiday shopping out of the way?
CBS Radio still has inventory to move, suitable for territorial expansion or in-market cluster enhancement, if not a solution to a last-minute stocking stuffer quandary. Here's what's still on the shelf:

* Kansas City: KBEQ-FM, KMXV-FM, KCKC-FM, KFKF-FM
* Columbus OH: WAZU-FM, WHOK-FM, WLVQ-FM
* Greensboro-Winston Salem: WSJS-AM, WMFR-AM, WSML-AM
* Buffalo-Niagara Falls: WJYE-FM, WBUF-FM, WBLK-FM, WYRK-FM, WECK-AM
* Fresno: KFPT-AM, KMJ-AM, KSKS-FM, KOQO-FM, KWYE-FM, KMGV-FM, KFJK-FM


Washington Media Business Report TM
Push pol?
One of the publicity tactics which is on the upswing in political campaigns is the robo or automated phone call. It can be made by a well-known individual (we were getting robo calls from John Kerry during the primaries in this market and, according to the Associated Press, they were getting robo calls from Bill Clinton in Connecticut recently). It can be produced almost instantaneously. And it's among the cheapest publicity options out there. Unfortunately, it also flies in the face of consumer preference, especially if the consumer is one of the millions who have gone to the trouble of getting their names on the FCC/FTC do not call list. The calls are not illegal in any way. Politicians were careful to carve out an exemption for their own telemarketing purposes when crafting the do not call program. However, according to the AP, candidates run the risk of alienating voters if they lean too heavily on this tactic.

RBR observation: It is true that people are generally more open to having a television or radio program interrupted by a commercial, where such interruptions are entirely expected, than they are to having whatever they may be doing at home interrupted by a marketing call. Broadcasting remains a key way to getting a campaign message out quickly without nearly the same danger of a partial backfire that the robo calls present.


TVBR TV News
At PTC, it's the best and worst of times
Move over, Charles Dickens. The Parents Television Council has released its latest best and worst list for the 2005-2006 television season. The listees are advertisers, and the criteria is all about what PTC thinks of the programs they support. PTC President L. Brent Bozell said, "Corporate advertisers share accountability for the tide of graphic and gratuitous sex, violence and profanity on television today. With their advertising dollars, they can choose to underwrite family-friendly television programming or they can elect to sponsor programs filled with raunch. Responsible broadcasting is possible, and this responsibility not only falls on the entertainment industry, but also on the sponsors. And from what we continually hear from most big corporate sponsors is that a responsible advertising practice is good for their business." Exhorting advertisers to help keep certain programs off the air by denying them sustaining revenue, saying, "Regardless of indecency oversight by the FCC or each network's standards and practices department, the bottom line is the bottom line."
| Here are the top and bottom ten advertisers |


Transactions
500K KMGT-TV Honolulu HI (Waimanalo HI) from Waimanalo Television Partners (Donald F. Laidlaw) to Oceana Christian Church (James W. Gustafson, Diane Sandlin, David Gibbons). Cash. Station in indy on Channel 56. [File date 7/31/06.]

125K WCRR-AM Rural Retreat VA from Ora Robert Smallwood III to Three Rivers Media Corporation (Gary W. Hagerich, Anthony Accamando Jr., James Brown). Cash. Duopoly with WXBX-FM Rural Retreat & WYVE-AM Wytheville VA. [File date 7/20/06.]


Stock Talk
Housing drop sinks stocks
A monthly report from the National Association of Realtors showed home sales for July slowing even more than expected, making Wall Street traders fear that the housing slump could soon eat into corporate profits. As a result, the Dow Industrials fell 42 points, or 0.4%, to 11,298.

Radio stocks joined in the retreat. The Radio Index dropped 1.121, or 0.8%, to 133.644. Entravision was down 3.3%. Salem was off 2.7%.


Radio Stocks

Here's how stocks fared on Wednesday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

35.41

-0.21

Hearst-Argyle

HTV

21.55

-0.29

Beasley

BBGI

7.13

+0.14

Journal Comm.

JRN

10.70

-0.04

CBS CI. B CBS

28.34

+0.16

Lincoln Natl.

LNC

60.00

+0.15

CBS CI. A CBSa

28.27

+0.15

Radio One, Cl. A

ROIA

5.79

-0.03

Citadel CDL
8.62 -0.07

Radio One, Cl. D

ROIAK

5.81

-0.03

Clear Channel

CCU

27.95

-0.15

Regent

RGCI

4.00

-0.02

Cox Radio

CXR

14.91

-0.23

Saga Commun.

SGA

7.51

+0.12

Cumulus

CMLS

9.62

+0.01

Salem Comm.

SALM

10.43

-0.29

Disney

DIS

29.19

-0.45

Sirius Sat. Radio

SIRI

4.04

+0.01

Emmis

EMMS

12.08

-0.03

Spanish Bcg.

SBSA

4.19

-0.11

Entercom

ETM

23.67

-0.63

Univision

UVN

33.86

-0.06

Entravision

EVC

6.73

-0.23

Westwood One

WON

6.99

unch

Fisher

FSCI

40.00

-0.02

XM Sat. Radio

XMSR

12.90

-0.62

Gaylord

GET

42.03

+0.09

-

-

-

-

-


Bounceback

Send Us Your OpinionsWe want to
hear from you.

This is your column, so send your comments and
a photo to [email protected]

Isn't it interesting that the first "blinks buy" announced by Clear Channel on behalf of Fox Network includes a 60-second spot in the same hour! (8/22/06 RBR #163) So much for "selling" in a 2-second spot. Case closed. Enough said.

Dennis R. Israel
General Manager
WMET Radio-IDT Local Media
Washington D.C.




Below the Fold
Ad Business Report
Miles taking buying at MediaCom
Mandel movin' on up to GroupM...

HD Radio 2006
Beasley launching Reggae,
Deep Classic Rock on HD-2...

Media Markets & Money
Early holiday shopping?
CBS Radio still has inventory to move...

Washington Media Business Report
Push pol?
One of the publicity tactics which is on the upswing in political campaigns...

Arbitrends

Arbitron
Market Results
| Baltimore |
| Fredericksburg |
| Monterey |
| San Francisco |
| San Jose |
| St. Louis |
| Washington, DC |

NBA Minute


Radio Media Moves

Walsh signing
checks at Emmis

Patrick Walsh has been named CFO of Emmis Communications, filling the post opened when Walter Berger left to become CFO of Infinity, now CBS Radio (12/7/05 RBR #238). Walsh had been CFO of iBiquity Digital, so we now wait for that post to be filled. Emmis also announced that David Newcomer has added Sr. to his title and is now Sr. VP of Finance and Assistant Secretary.

Ginzkey to Connoisseur
John Ginzkey is returning to Omaha as General Manager for Connoisseur Media. The company is buying KBBX-FM from Journal Broadcast Group and has a CP to build another FM in the market.

Bell upped
in Miami

Beasley Broadcast Group has promoted Joe Bell to Market Manager of its three stations in Miami. He was previously General Manager of two of them, WKIS-FM and WQAM-AM, and now adds oversight of WPOW-FM.

Tribune Interactive names SVP/Sales
Tribune Interactive (TI), a division of Tribune Company, has tapped Dana Hayes, Jr., as SVP/Sales, effective 9/1. Hayes was previously senior vice president/sales and marketing for Tribune Media Net (TMN). In this newly created position, Hayes will lead strategic coordination of TI national and local sales and sales strategy. In addition, he will have a lead role in developing new interactive advertising products available on TI's network of more than 50 websites.

Tribune Media Net names SVP/Sales, Marketing
Tribune Media Net (TMN), the national ad sales organization for Tribune and its major-market newspapers, announced that Lee Jones has been appointed senior vice president/sales and marketing, effective 9/1. He succeeds Dana Hayes, who was named senior vice president/sales for Tribune Interactive.


More News Headlines

Radio-Mercury workshop to be part of Advertising Week
The Radio-Mercury Awards presents its eighth Radio-Mercury Creative Workshop, Wednesday, September 27th from 9:00 a.m. to 3:30 p.m. at the super-chic Hudson Hotel in New York City. Sponsored by the Radio industry, the Radio-Mercury Creative Workshop will be held in conjunction with Advertising Week in NYC, September 25th to 29th. It is designed exclusively to help agency creatives explore the fundamentals of developing great Radio commercials, from advertising's top copywriters, producers and creative directors. Confirmed panelists include Radio-Mercury Award winners Pete Figel, copywriter from Y&R Chicago, and Tim Roan, VP Senior Copywriter with FCB NY. Additional panelists and moderators will be announced in the coming weeks. The Workshop leaders will address creating and developing Radio commercials from concept to execution, focusing on topics such as meeting client objectives, "selling the idea" to the client, and tips on writing techniques. The Workshop will also explore being a Radio Director, the role of the engineer, working with voice talent, and more.


RBR Radar 2006
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

More signs of a
banner political year
TNS Media Intelligence's Campaign Media Analysis Group is keeping track of that most seasonal of advertising categories, political, and in keeping with all the tea leaves and crystal ball readings that have preceded them, CMAG is finding record amounts of money being spent on advertising in support of both issues and candidates. YTD, 311M has been spent already, a figure CMAG calls "stunning." And that's just for local television, and it constitutes a 150% increase over the comparable period in the last midterm of 2002. The battle for Congress is generating much of the heat.

RBR observation: Political will be a category just like auto and the best advise is have a sales/marketing team in place to develop this business. Politics is business.
08/23/06 RBR #164

XM to the rescue!
That is how the satellite radio company is positioning itself in the Los Angeles, after KZLA flipped and left LA without a Country station. "XM rescues Country music" it announced, as XM stepped in to "replace now-defunct KZLA-FM (93.9) as sponsor for Los Angeles ' largest country music festival 'Country Bash '06.

RBR observation: Like it or not XM made a smart marketing move. Now lets see if they can pull it off and put fans in the stand.
08/23/06 RBR #164


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