Welcome to RBR's Daily Epaper
Volume 21, Issue 168, Jim Carnegie, Editor & Publisher
Friday Morning August 27th, 2004

Radio News ®

Clear Channel's "Less is More" gets feedback
Since our write-up over the last two days about CC Radio's "Less is More" strategy and its impact on syndicators (8/25 RBR Daily Epaper #166) and networks (8/26 RBR Daily Epaper #167), we've been hearing a bit more from folks in the industry - - again off the record, of course: "Quick observation on 'Less is More.' The sales managers and AEs aren't so worried about the spot count. What's scaring everyone is the limitation on 'promos.' Promos have become a euphemism for the 21st century version of the old Bonus Spot. They're a big part of schedules nowadays. I think a station is limited to 2x per hour. I heard one of the services getting dropped in some cases was Bloomberg. CBS and ABC Network Radio are being negotiated in many markets - - they're negotiating with everybody. People are getting cut back left and right on product. But we're going to survive and knock on wood they haven't been too drastic on [us]," the anonymous source (for obvious reasons) said.

Air America promoting
national shout-out
Air America Radio has scored free national publicity yet again, this time by organizing a nationwide "shout out" to protest President George W. Bush when he steps up to the microphone to accept the Republican nomination next Thursday. Air America's highest-profile host, Al Franken, is being careful to draw a distinction between what the liberal radio network is promoting and any violent protests that might erupt next week in New York. "This is a form of protest that is very non-disruptive," Franken said in announcing the "Great American Shout-Out." The idea is a takeoff on the movie "Network," with anti-Bush forces urged to open their windows and scream a local negative wisecrack as the President takes the podium. Suggested wisecracks include "fuggedaboutdit" for New Yorkers and "No way, dude" in California. Not to be accused of underestimating his own influence, Franken is predicting that at least 100 million people will take part.

RBR observation: Air America may have squandered all of the free press that it got back at its Spring launch, but you've gotta give Al credit - - he still knows how to drum up publicity. Not only is Air America going to get free publicity about this little prank, but it also has people organizing "Shout-Out" parties all across the country - - even in markets where the network doesn't currently have an affiliate. Strong turnouts at those local gatherings might persuade a few GMs to look at adding Air America shows to their lineup. Or you could go out and by a gross of duct tape and have a 'Shut-Up' party. Only PD's that think of it as a science project will have fun with this.


Westwood One's Tom Leykis
attacked in Seattle
A man angry about on-air comments made by Westwood One talker Tom Leykis spotted the radio host outside a Seattle nightspot and kicked him in the head. Leykis was treated and required 17 stitches for a cut above his eye. He also sustained a scraped knee and a black eye in the attack early Monday, a police report said. No arrests had been reported by early Thursday. Leykis, on one of his regular trips to broadcast from KQBZ-FM, said he was getting some fresh air about 3:45 a.m. outside the Five Point Cafe when a man came out of the nightspot, took a photograph, then went back inside and showed the digital image to two others. "I was minding my own business. It was a person who knew who I was from the radio," Leykis told the AP. A woman who had been with Leykis then came out of the restaurant and all three men followed. One said Leykis once took a call from him and then insulted him on the air, calling him a name and questioning his virility. "You had no right to do that," the man said. One of the other men, the one who had taken the picture, then kicked Leykis in the head, knocking him to the ground. Both men fled and the third apologized as Leykis and the woman got into a taxicab to go to the radio host's hotel, where police and medical aid were summoned.

To sell, or not to sell? Is that your question? Part 5
So you've decided to put your radio or TV station up for sale. Fine. But now, how do you set the price? You don't want to leave any money on the table. On the other hand, you don't want to set the price too high, so that potential buyers are driven away by your unrealistic expectations. Broker Larry Patrick talks about how to set the right price. | More... |

Canadian station gets a reprieve
A Federal Court of Appeal in Canada has blocked the country's equivalent of the FCC, the Canadian Radio-Television and Telecommunications Commission (CRTC), from shutting down CHOI-FM Quebec City until the courts have ruled on the station's appeal of its license revocation. After numerous complaints about politically incorrect comments on the Talk station, the CRTC announced in July that the station's license would not be renewed (7/16/04 RBR Daily Epaper #138). That set off a wave of protests in both Quebec City and the capital, Ottawa. The station's long-term future is still in doubt. The court order means only that CHOI will not have to shut down when its current license expires next month, but the issue of whether it will get a new license still has to be fought out in court.


Adbiz ©

Arby's names finalists in creative review
Arby's has named four finalists in a review for creative, with spending estimated at 15 million. The assignment had been handled since 1987 by Doner Southfield, MI, which declined taking part in the review that began in July. The finalists are Kirshenbaum Bond & Partners NY, Merkley & Partners NY, Mullen Wenham, MA and Venables, Bell & Partners San Francisco. The agencies eliminated from the review are Bartle Bogle Hegarty NY, Euro RSCG Worldwide NY, Martin/Williams Advertising Minneapolis and Modernista Boston. Wanamaker Associates Atlanta is handling the review Doner continues to handle creative duties on the accounts of 30 groups of Arby's franchisees. Planning and buying remain at Initiative Media. A decision in the creative review is expected by October.

Three Nebraska TV stations refuse to air PETA ad
Three Nebraska television stations have refused to run an ad promoting vegetarianism that shows a pig being bludgeoned and a chicken getting its beak burned off, a spokesman for People for the Ethical Treatment of Animals said Wednesday. The ad has been pulled from the air on TV stations across the country following complaints from viewers about its content. PETA said the ad was rejected by Lincoln's ABC affiliate KLKN, CBS affiliate KOLN, and Fox affiliate KTVG in Kearney, before it was allowed to air. Kristine Ryan, general sales manager for KOLN, said she told PETA to send something a little less graphic but with the same underlying message. She said she never heard back. "We really didn't say no to it, I just asked for another option," Ryan told the AP. The station wasn't rejecting PETA, just the ad in question, she said.

Mothers Opposing Bush
premiering national TV ad for RNC
Mothers Opposing Bush - MOB - premieres its provocative new TV ad at a Meet the MOB Party, co-hosted by Fahrenheit 9/11 executive producer, Harvey Weinstein, and author/activist, Arianna Huffington, at the Tribeca Film Center in NYC. The MOB is an all-volunteer, bi-partisan, political action committee with a membership of 10,000 mothers (and others) representing nearly all 50 states. "Our TV ad epitomizes truth in advertising, underlining how this president's policies are not good for children, and not good for anybody," says Iris Krasnow, founder of the MOB. She adds that the mission of the MOB is to amplify the voices of mothers who feel the urgency of getting this "dangerous administration" out of office.

RBR observation: Elections make people do things they normally would never do. The MOB -when hearing this word it brings the image of Don Vito Corleone and that is a mother which sometimes is only one-half of a word. See - crazy things during an election.


Media, Markets & Money tm

Phoenix market opens to new entrant
Think Clear Channel, Emmis and Infinity have the Phoenix market all wrapped up? Mike Cutchall's Sun City Communications sees an opportunity in the market. It's paying 18.7 million dollars for KFMR-FM, a currently off-the-air Class C on 95.1 mHz which has applied to build at a new tower site. The station, licensed to Sun City West, AZ, has a contour which covers the northwest portion of the Phoenix Metro and lots of other territory up past Prescott. Cutchall is backed by Great Hill Equity Partners, run by Steve Gormley, Chris Gaffney and John Hayes, which is an investor in Dame Broadcasting and WRMF-FM Palm Beach, FL (and Gormley personally is an investor in Equity Communications). The seller is Desert West Air Ranchers Corporation, headed by Ted Tucker.

RBR observation: This deal got us wondering, why didn't one of the in-market groups jump at the chance to buy this station? Kelly Callan of Kalil & Co., who brokered this deal, tells us that in-market buyers have been passing up some great real estate because of uncertainty in Washington about ownership rules. "We just sold a full-power television station, WGTW-TV Philadelphia, to an out-of market buyer. So this phenomenon is not happening just in radio, but also in television. We see smart money jumping into the open window and picking up some great assets. Oddly enough, these operators will eventually sell to in-market groups at a substantial profit. We see the best returns always going to operators who buy something that is not making money and make it sing. These buyers are getting in front of an oncoming train. It pains us to see great groups treading water," he said.


Washington Beat

New Kerry TV ad cites Bush's
"lies and smears"
The latest TV spot for John Kerry attacks President George Bush for attempting to tarnish the Democrat's Vietnam war record using "lies and smears." Kerry's ad accuses Bush of secretly supporting a group of war veterans, the Swift Boat Veterans for Truth, who suggested Kerry lied about his war record. Kerry received a Purple Heart and Bronze Star for bravery in Vietnam. The ad also claims Bush tried to smear John McCain's campaign using similar methods four years ago. "Now he's doing it to John Kerry," says the spot. Bush's lawyers have written to TV stations, following last night's initial broadcast of the ads, saying the president's campaign had no connection to the vets. Bush has threatened to take legal action to prevent the ads.


Engineering

MusicMaster for Windows scheduling software
gaining ground
MusicMaster for Windows has been in development for six years and represents a radical departure from the commonly used DOS music scheduling programs such as MusicMaster for DOS or Selector. DOS technology is over 20 years old, and is quickly becoming obsolete in terms of new hardware and software releases. Stations are currently and will continue to face integration issues as they replace broadcast equipment and related software in the future. The new MusicMaster for Windows software was officially launched in January and now has upwards of nearly 300 users. We spoke with Mark Bolke, MusicMaster/A-Ware Software VP/COO. Tell us a bit about the product. | More... |


Transactions

KFLZ-FM Corpus Christi TX (Bishop TX) from Davila Broadcasting Inc. to Gerald Benavides.

WCKI-AM Greenville-Spartanburg SC (Greer SC) from Sira-Pack Radio Inc. to Mediatrix SC Inc.

| More Details |


Stock Talk

Stocks slip a bit in listless trading
It's hot, it's late August, and more than a few traders have decided now is a good time to be on vacation. (And look for that number to grow as traders skip town to avoid the Republican National Convention crowds in Manhattan next week.) So trading is in the summer doldrums. A rise in unemployment claims was the key factor driving trading on Wednesday, outweighing lower oil prices. The Dow Industrials slipped eight points to close at 10,173.

Radio stocks were also lower. The Radio Index dropped 1.751, or 0.8%, to 228.865. Spanish Broadcasting System was down 3% as the poorest performer. Entravision was down 0.8% as well, but the biggest Spanish group, Univision, was up 0.2%.


Radio Stocks

Here's how stocks fared on Thursday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

39.20

-0.23

Jeff-Pilot

JP

48.11

+0.09

Beasley

BBGI

14.97

-0.11

Journal Comm.

JRN

17.05

+0.07

Citadel CDL
14.92 -0.13

Radio One, Cl. A

ROIA

16.39

-0.03

Clear Channel

CCU

35.39

-0.11

Radio One, Cl. D

ROIAK

16.30

+0.01

Cox Radio

CXR

17.64

-0.14

Regent

RGCI

5.77

+0.03

Cumulus

CMLS

15.69

-0.07

Saga Commun.

SGA

17.90

-0.10

Disney

DIS

22.68

+0.18

Salem Comm.

SALM

26.35

-0.35

Emmis

EMMS

20.24

-0.10

Sirius Sat. Radio

SIRI

2.42

+0.02

Entercom

ETM

38.89

-0.74

Spanish Bcg.

SBSA

8.89

-0.27

Entravision

EVC

8.25

-0.07

Univision

UVN

34.31

+0.06

Fisher

FSCI

49.50

-0.45

Viacom, Cl. A

VIA

34.79

-0.39

Gaylord

GET

29.74

+0.07

Viacom, Cl. B

VIAb

34.37

-0.41

Hearst-Argyle

HTV

24.69

-0.17

Westwood One

WON

23.23

unch

Interep

IREP

0.75

unch

XM Sat. Radio

XMSR

27.66

+0.07

International Bcg.

IBCS

0.02

unch

-

-

-

-

-


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RBR Audiocast

08/27 - Listen to what Real Local Radio Should Be... Listen to this morning's AudioCast and
Hold On To Your Hair!
Listen Now!
Listen Now
with
Bob DeCarlo'
"In Da Morning"


Bounceback

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Arbitrends

ArbitronMarket Results
| Cincinnati |
| Dallas |
| Denver |
| Minneapolis |
| Monterey |
| Pittsburgh |


More News Headlines

Upped & Tapped

Moellers is Max DOS
Rich Moellers has been named Director of Sales for the Max Media properties in Arkansas, heading a seven-member staff.


Competing Media

TV revenues
grew 7.1% in Q2

Based on reports from the public companies, it was clear that Q2 was going to be good for broadcasters. Now the Television Bureau of Advertising (TVB) has the numbers to prove it. For the quarter, total TV revenues were up 7.1%, with revenues at the station level (local and national spot) up 8.3%, network up 4.7% and syndicated TV up a whopping 18.4%. One big factor, of course, was political ad spending. Spending in the Gvoernment & Organizations category, including political, shot up 84% to 154 million dollars. | More... |




August 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:
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RBR Radar 2004
Click on these issues for Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Clear Channel's "Less is More" may affect news nets as well
We've been hearing a bit more from folks in the industry - - off the record, of course. "Less is More" is going to also have an impact on ABC News and Westwood One's CBS News, CNN News, NBC News and CNBC Business Radio. In addition, we hear CC Radio is serving 90-day cancellations across the board with networks and syndicators-especially with inventory-only-for-comp deals. RBR observation: Network radio has tripled over the past few years with a lot of the boutique syndicators that have cropped up - - much of which are based on inventory. A lot of that inventory comes from Clear Channel stations. What you're going to see is a contraction in the network radio marketplace that's going to weed out a lot of these people who have not been doing it with product, but with comp. Because when they're doing it just with comp, those are ten-cent dollars. That's the easiest low-hanging fruit for a station to cut. The days of people doing straight comp deals for spots may be numbered. So the net of this is going into the upfront, there will be less inventory to buy for next year.
08/26/04 RBR #167

CC Radio's "Less is More" already meaning less with syndicators
First Premiere dropped its Diamond network, and now some syndicators tell us it's moving over to them as well. First Premiere dropped its Diamond network, and now some syndicators tell us it's moving over to them as well. "I've heard in sort of street corner conversation.
08/25/04 RBR #166

Premiere Radio Networks' dumping Diamond led to Delilah?
Diamond network is going away because of the upcoming inventory cutbacks mandated. $30-$35M in billing will be lost, according to RBR sources. We heard Premiere knew that was coming so they got Delilah to replace that lost money. Good theory, but we won't get that confirmed. 08/24/04 RBR #165

RBR Observation:
Solving a problem that doesn't exist
It's hardly surprising that the FCC is moving next month to mandate much more children's programming under DTV multicasting. After all, every politician inside the beltway wants to be seen as doing something for the kids. But is this move needed? 08/24/04 RBR #165

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. But strangely, although they pay the bills, the client stations are not the key factor in the equation. The agencies are. They pay relatively little for their access to Arbitron data, but they control the ad dollars..
08/23/04 RBR #164


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.

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