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Welcome to RBR's Daily Epaper
Volume 23, Issue 169, Jim Carnegie, Editor & Publisher
Wednesday Morning August 30th, 2006

Radio News ®

XM receivers rolling off assembly lines again
Audiovox reports that it has already resumed production of Audiovox Xpress receivers for XM Satellite Radio after the FCC certified that problems with excessive FM band emissions have been resolved. The certification also cleared the way for production of the RoadyXT and XM Sportscaster models by Delphi in time to be on store shelves for the holiday selling season. Sirius had earlier announced FCC approval for some of its models with similar problems. The receivers in question are supposed to receive the satellite signal, then rebroadcast it over a short distance to an FM receiver in the same vehicle. But the FCC received complaints that many of the units were using too much transmitting power and were overwhelming FM reception in nearby vehicles. And since most of the units were set at the factory at 88.1 mHz, or thereabouts, the satellite programming most often came in when people were listening to NPR or religious stations. People listening to Christian programming were the most upset by the sudden change to Howard Stern or Opie and Anthony, particularly if they had children in their car.

Couric gets her own Bush interview
This week Brian Williams has the Prez exclusive on the Hurricane Katrina anniversary for NBC TV and radio. But next week, as she makes her CBS debut, Katie Couric has President George W. Bush for a 9/11 anniversary interview. You can expect to see and hear portions of the interview on every CBS platform on Tuesday, September 5th, including the debut of "The CBS Evening News With Katie Couric." Couric and Bush will also be featured on CBS Radio News, distributed by Westwood One, and on CBSNews.com. The blitz will continue Wednesday, September 6th on "The Early Show" (up against Couric's former "Today" home on NBC). It all leads up to "Five Years Later - How Safe Are We," a primetime special airing 10-11 pm ET. The special marking the five-year anniversary of the 9/11 attacks will be anchored by Couric and feature the interview she taped with President Bush at the White House.

OMD backs away on liability language
After the Broadcast Cable Management Association (BCFM) sent out a bulletin to members about new contract language being used by OMD to shift potential liability away from the ad agency and solely to the station (8/24/06 RBR #165), BCFM reports that it had a talk with the agency and OMD has reprogrammed its computers back to the language it was using prior to July. "While unable to confirm this reprogramming, it is the Association's understanding that this language refers to sequential liability. BCFM and BCCA continue to recommend that media companies protect their interests by adopting a position of joint and several liability," BCFM said in an update yesterday.


WWL-AM remembers Katrina,
one year later

Yesterday was the one-year anniversary of Hurricane Katrina hitting, and soon thereafter, flooding New Orleans. We spoke to Entercom's Market Manager and WWL-AM GM at the time Phil Hoover afterwards, who explained how they kept the station on-air throughout the ordeal and the heroes there that made it happen

(RBR/TVBR Solutions Magazine Nov. 2005).

Hoover, a year later, is running Entercom's Indianapolis cluster. He left New Orleans in December 2005. "Even though I'm miles away, in my heart I'm still in New Orleans in many, many ways," Hoover tells us. "From what I'm hearing, obviously it's still about the recovery. Each day, everybody pulls on their pants, says their prayers and they get back at it. It's an unrelenting effort on the part of everybody there. I think that the city is coming back - slowly but surely. It's going to take a while, but we knew that a year ago, too." He adds, "Entercom corporate provided literally every resource to our stations to aid their recovery; the recovery of our employees; to aid the overall recovery and to continue to be the voice of the Gulf South. That started while I was there and I think that commitment has just been quadrupled since my departure. This is a day of reflection, and the reflection for me is the unwavering strength and courage of the Entercom broadcasting team. I've been a broadcaster for 40 years and what that team of broadcasters did was literally reset the bar for what we have always considered broadcasting excellence."

Current Entercom New Orleans market manager and Entercom VP/News-Talk-Sports programming Ken Beck tells us WWL was not commercial-free yesterday but was basically wall-to-wall with the recovery interfaith service, the bell-ringing ceremony, a mission at the media center, an afternoon talk show that spoke with President Bush. "We had reporters in various districts of the city that were affected and some that weren't. We've been pulling out all of the stops for a while, so we're not changing it today...There are not too many of us that get to work for a radio station with a team that has that kind of heritage in the market and that's been able to do those kinds of things. We've been doing our best to live up to it and have since extended the brand on FM to 105.3. So it's onwards and upwards from here, but today is the day where we kind of stepped down and remembered some of the things that happened a year ago and kind of take stock in terms of where we are in terms of the rebuilding process. Some of it is kind of disappointing and some of it is pretty encouraging."


Decency crusader targets "9/11"
Has the American Family Association (AFA) picked the wrong battle this time? The organization is trying to get members to demand that their local CBS affiliates refuse to air "9/11" because the emotionally charged documentary contains swearing - and to file formal indecency complaints with the FCC if it airs in their market. CBS has warned affiliates that the documentary, based on footage of the actual rescue efforts, contains profanity, but the network has decided it would be inappropriate to bleep the rescue workers - some of them now honored as dead heroes. So far, no affiliate has said it will refuse to carry the program. "This is a test case for CBS to see how far they can go. If there is no out-pouring of complaints from the public, they will go further the next time," AFA declared on its website. "CBS could very easily bleep out the profanity, but they refuse. The goal of CBS is to be able to show whatever they want at anytime. The network wants no restraints on their programming. If they are allowed to get away with this, they will simply air even more profanity in the future," AFA said. It urged members to contact their local CBS affiliate and ask them not to air "9/11." It also wants members to email the FCC and ask it to "enforce the law." Finally, "if no changes are made and your CBS affiliate carries the program, AFA will provide you with information for filing a formal complaint with the FCC."

RBR observation: As the line goes, you gotta know when to hold 'em and know when to fold 'em. We note that the Parents Television Council, which is normally even more active than AFA in getting members to file indecency complaints, is sitting this one out. It has assailed CBS for taking the FCC to court to challenge the Janet Jackson Super Bowl flash fine, but it is not taking a public stand that could be seen as insulting the heroes of 9/11. We note that the big media companies have finally gotten a lot more interested in fighting back on the indecency front and forcing the FCC to defend its inconsistent decisions in court now that the big bucks of TV are involved. It used to be that when "only" radio was involved, the big guys were willing to cut a deal and make a contribution to the US Treasury to make the problem go away. Ignoring the growing problem for so long just made it worse.

Toilet tiff heading to trial
Two broadcast-related outdoor advertising companies are heading to court against the City of New York, claiming that they were cheated out of the contract to put ads on the city's bus shelters, newsstands and public toilets. When the contract was announced (5/17/06 RBR #97) it appeared that Cemusa, a subsidiary of the Spain-based conglomerate Fomento de Construcciones y Contratas, had simply outbid other contenders, including Clear Channel Outdoor, CBS Outdoor and a joint venture of NBC Universal and JC Decaux. But after further inspection, NBC/Decaux and CC Outdoor sued, claiming emails revealed that NYC officials gave Cemusa an opportunity to adjust its bid after the final deadline, so that it, not NBC/Decaux, came out on top. Why? According to the New York Times, the Clear Channel lawsuit claimed that Deputy Mayor Daniel Doctoroff "hijacked the evaluation process" and steered the contract to Cemusa because he wanted to use free advertising credits to advance New York City's bid for the 2012 Olympic Games through ads in 10 South American countries where Cemusa has operations. The NYC bid for the Olympics was unsuccessful. What is at stake? Cemusa agreed to pay NYC a minimum of one billion in cash over 20 years, plus 400 million in free advertising. Revenues from the deal could total as much as 20 billion. In the first round in court last week, the City of New York denied any wrongdoing.


Branding Business Report
Brandcasting with Snapple and WFNX
Jay Coleman, EMCI President, organized a deal that took WFNX-FM Boston commercial free for six weeks this summer, with Snapple as sole sponsor. He calls the promotion "brandcasting," and it's gotten quite a bit of interest from broadcasters. Yesterday, Jay talked about how he put Snapple/Cadbury together with WFNX (8/29/06 RBR #168). Today we ask - What stations might be a good target for this?
| Read More... |


Ad Business Report TM

RAB expects record 2 billion
political ad spend

The RAB reports the potential for a media-buying spike is on the horizon for 2006, and broadcast media (including Radio) can profit from it. Numerous reports are predicting that political ad spending in total could reach a record 2 billion. Despite the fact that 2006 is considered an "off-year" election - a non-Presidential campaign year - most forecasters are expecting significantly more spending this year than during the Presidential election in 2004. There are many more elections taking place this year nationwide - races for governors, senators, mayors and congressman - thus, the expected influx of political advertising and spending will be dispersed around the country. According to TNS Media Intelligence and the Campaign Media Analysis Group, "the first four weeks of 2006 have generated advertising totals nearly equal to the advertising witnessed during the same period in 2004." In an effort to aid broadcasters in the essential concepts of political advertising, the Broadcast Cable Financial Management Association hosted a seminar to address the Top 10 Political Broadcasting Questions. Since political advertising can play a pivotal role in Radio advertising, it is essential that Radio stations are well-versed in the basic rules of political broadcasting. These rules are ever changing, but they basically break down into five general categories: (1) Reasonable Access; (2) Equal Opportunities; (3) Lowest Unit Charge; (4) Sponsorship Identification; and (5) Recordkeeping and Political file.
| See the details in RAB's "Political Advertising 101: The Basic Guide" here |

GM offers cash incentives
As part of its labor Day sales drive and promotions, General Motors announced it is offering bonus cash on many of its 2006 and 2007 models--500 dollars on many of its cars; 1,000 on many of its pickups and car-based SUVs, and 1,500 on some of its truck-based SUVs. The offer is good until 9/5, and in most cases, comes in addition to previously announced low-interest loan and customer cash offers. Some models included in the offers are the Chevy Cobalt and Impala, Pontiac G6, Hummer H3, HHR, Silverado, Tahoe, Uplander, Avalanche, Suburban, Chevy Trailblazer, Hummer H2 and Buick Rendezvous. The cash offer does not apply to GM's-hotter selling models, including the Pontiac Solstice; Saturn Sky, Aura and VUE Green Line; Chevrolet Corvette; the 2007 GMC Yukon/Yukon XL Denali; Hummer H1; and 2007 Cadillac Escalade.


NAB Day Time Planner
The following will be attending the NAB. Call or email to make your
appointment in advance.
BROKERS
Todd Fowler/David Reeder/Gene Ferry/Bruce Pollock, American Media Services, Hilton Anatole, 843-972-2200, [email protected], [email protected], [email protected], [email protected]

Jack Higgins/Dan Graves/Joel Day/Denis LeClair, Cobb Corp, Hilton Anatole, office 239-478-3737, [email protected]

Andrew P. McClure, The Exline Company, Hilton Anatole, office 415-479-3484, cell 415-497-3855, [email protected]

Frank Boyle, Frank Boyle & Co., Sheraton Suites Market Center, 203-969-2020, [email protected]

Cliff Gardiner, Clifton Gardiner & Co., Hilton Anatole, 303-758-6900, [email protected]

Gordon Rice, Gordon Rice Associates,
843-884-3590, Hilton Anatole, [email protected]

Ed Henson, Henson Media, Inc., Louisville, KY, 502-589-0060, Hilton Anatole, [email protected]

John L. Pierce,
John Pierce & Company LLC,
859-647-0101, cell 859-512-3015, Hilton Anatole, [email protected]
Jamie Rasnick,
John Pierce & Company LLC,
859-647-0101, cell 513-252-1186, Hilton Anatole, [email protected]

Dick Kozacko/George Kimble,
Kozacko Media Services, office 607-733-7138, cell 607-738-1219, Hilton Anatole,
[email protected]

Larry Patrick/Greg Guy/Susan Patrick/Susan Foust,
Patrick Communications, Hilton Anatole
Suite #1034, 410-740-0250, [email protected]

Glenn Serafin, Serafin Bros., Inc.,
office 813-885-6060,
cell 813-494-6875, [email protected]

Terry A. Greenwood,
TAG Media Consulting,
Hilton Anatole, office 410-931-3362, [email protected]

LAWYERS
Gregg P. Skall,
Womble Carlyle Sandridge & Rice, PLLC 202-857-4441, Hilton Anatole, [email protected]

TRAFFIC SOFTWARE
Eric Mathewson, Founder and CEO; Wide Orbit; 415-675-6751; Booth 617 and Hilton Anatole Presidential Suite;
[email protected]

Media Markets & Money TM
Topeka gets some K-Love
Fast-growing Educational Media Foundation (EMF) is adding another market to its K-Love network, Topeka, KS, but first it will have to build KYFA-FM Manhattan, KS. It is buying the CP from Bible Broadcasting Network (BBN) for 325K. "EMF has had a lot of requests to be in Topeka," said broker John Pierce of John Pierce & Company, who handled the sale for BBN. KYFA is to be a Class C2 with 25kw on 88.7 mHz.


Washington Media Business Report TM
Bernal burned for 25K
Paulino Bernal Evangelism, a Hispanic religious noncom operating in various Texas communities, has had a triple-play fine reaffirmed by the FCC, which refused to reduce or cancel. It started with failure to maintain a local studio for KBRN-AM Boerne TX, included lack of EAS equipment, and as so often happens, picked up a public file citation to go along with the other two infractions. An FCC agent, trying to inspect the station, could not find a phone number for it in Boerne. Eventually, a locked, unstaffed and inaccessible transmitter shack was located. Bernal was contacted, and a local employee was provided to give the agent access to the shack. There was no EAS equipment and no public file. Bernal said the English-challenged and nervous employee misunderstood the request, but the FCC countered that it didn't matter, since the material had to be available at all times during normal business hours, which clearly was not the case in this instance even if they cut the employee slack for whatever reason. It also rejected Bernal's unsupported plea of poverty. The 25K fine stands.

RBR observation: We give Bernal credit for originality. It tried the argument that paying a fine to the FCC would undercut its "ability to generate programming in the public interest." Indeed. But it goes into the overstuffed nice try file of excuses submitted to the FCC that failed.


Entertainment Media Business Report TM
Aguilera guest VJs for premiere
of CC Radio's Video Six Pack

Pop star Christina Aguilera is hosting the launch of CC Radio's Online unit's very first Video Six Pack. This new on-demand video feature includes six videos personally selected by Christina and offers an archive of six of her own videos, featuring her latest hit, "Ain't No Other Man" and fan favorite "Genie in a Bottle." In addition to videos, six tracks from her latest CD, "Back to Basics," will be available for streaming. CC Radio and the Sony BMG artist partnered for the new program which offers more than videos. Christina sits down for a one-on-one interview with JoJo Wright of Clear Channel Radio's KIIS-FM/Los Angeles, discussing, music, marriage and her new CD. To top off this exclusive new feature, the audience will also have a chance to win an iPod autographed by Aguilera. "Since the launch of Videos on Demand in January we've seen a tremendous surge in on-demand usage, to the tune of 2.5 MM plays per week," said Evan Harrison, EVP and head of the company's online unit. "We are honored to partner with Christina, a true artist, to launch our newest on-demand show." Video Six Pack launched on 119 CC Radio websites yesterday. Listeners will also have a chance to win an iPod autographed by Aguilera.


Internet Media Business Report TM
Entercom Boston tunes into Podzinger
Entercom Boston and Cambridge-based PodZinger, the only audio and video search engine that enables full-text audio and video search, have teamed up to provide listeners with a new level of technology. Beginning this week, sport radio powerhouse WEEI-AM and Boston's talk station WRKO-AM will launch the PodZinger technology on their websites, allowing listeners to search and listen to archived radio broadcasts with one click. Within hours of a broadcast, WEEI and WRKO listeners can use the PodZinger tool on the stations' websites (weei.com and wrko.com) to retrieve particular segments or subjects of interest. The key word search capabilities enable users to scan the content around their search term to determine relevance and take them directly to the point of the segment most relevant. "With today's technological advancements and the multitude of media outlets available to people, Entercom is continually seeking ways to set ourselves apart from our competitors," said Bill Alfano, director of marketing for Entercom Boston. "As the first radio broadcasting network to partner with PodZinger, we are confident that the ability to provide our listeners with full search capabilities so soon after a broadcast will be a differentiating factor to both our listener base and our advertisers."


Transactions
3,666,666 KJIN-AM/KCIL-FM, KXOR-FM & KBZZ-FM Houma-Thibodaux-Morgan City LA (Houma, Thibodaux, Morgan City. 67% of Sunburst Media-Louisiana LLC from John M. Borders (89.09% to 29.6967%) and Don L. Turner (10.91% to 3.63667%) to Momentum Plan I Ltd. (James Anderson) and Aldus Sunburst Inc. (each 0% to 33.33333%). Each buyer will contribute 1,833,333. Anderson will vote for both buyers as majority shareholder. [File date 8/10/06.]


Stock Talk
Stocks end the day up
Stock prices recovered from early losses after the monthly report from the Conference Board showed a drop in consumer confidence. Traders found nothing alarming in minutes released from the last Fed meeting, so they decided it was OK to buy stocks. The Dow Industrials rose 18 points, or 0.2%, to 11,370.

Radio stocks also had an up day. The Radio Index rose 2.941, or 2.2%, to 139.104. Salem, which has been volatile of late, rose 8.6%. Citadel gained 2.9%.


Radio Stocks

Here's how stocks fared on Tuesday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

36.47

+0.46

Hearst-Argyle

HTV

22.77

+0.55

Beasley

BBGI

7.21

+0.18

Journal Comm.

JRN

10.99

+0.14

CBS CI. B CBS

28.93

+0.19

Lincoln Natl.

LNC

60.41

+0.43

CBS CI. A CBSa

28.94

+0.20

Radio One, Cl. A

ROIA

6.00

+0.08

Citadel CDL
8.89 +0.25

Radio One, Cl. D

ROIAK

6.03

+0.11

Clear Channel

CCU

28.76

+0.29

Regent

RGCI

4.00

-0.11

Cox Radio

CXR

15.64

+0.29

Saga Commun.

SGA

7.74

+0.14

Cumulus

CMLS

10.04

+0.13

Salem Comm.

SALM

11.13

+0.88

Disney

DIS

29.11

-0.26

Sirius Sat. Radio

SIRI

4.09

-0.02

Emmis

EMMS

12.36

+0.04

Spanish Bcg.

SBSA

4.29

-0.01

Entercom

ETM

25.20

+0.58

Univision

UVN

34.38

-0.03

Entravision

EVC

7.17

+0.14

Westwood One

WON

7.39

+0.22

Fisher

FSCI

40.70

+0.21

XM Sat. Radio

XMSR

12.81

-0.26

Gaylord

GET

43.59

+0.77

-

-

-

-

-


Bounceback

Send Us Your OpinionsWe want to
hear from you.

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




Below the Fold
Ad Business Report
2 billion political ad spend
That is what RAB expects a record spike for this year...

Media Markets & Money
Topeka gets some K-Love
EMF is adding another market to its K-Love network...

Internet Media Business Report
Entercom Boston tunes
Into Podzinger only audio & video search engine...

Entertainment Media
Business Report

Christina Aguilera guest VJs
For premiere of CC Radio's Video Six Pack...

Arbitrends

Arbitron
Market Results
| Albany |
| Birmingham |
| Charlotte |
| Fresno |
| Memphis |
| Nashville |
| Oklahoma City |
| San Antonio |

NBA Minute


Stations for Sale

CA Central Coast FM
Power increased. New site.
1.5M - Possible Terms.
Brett Miller - MCH Enterprises, Inc.
(805) 237-0952
www.mchentinc.com




Radio Media Moves

Emmis NYC restructures sales
Emmis New York announced some major moves to augment its existing sales organization and reposition their sales teams to have more of a marketing background. The first step in the new structure is the appointment of Alex Cameron to DOS there. As part of her new role, Cameron has promoted current KISS FM (WRKS) LSM Travia Charmont to GSM, effective immediately. Current HOT 97 FM (WQHT) Director of Marketing Kevin Cox will now move to a senior role in the station's sales department.

McGavren Guild's O'Connor upped to DOS in Philly
Kathleen O'Connor has been promoted to the position of Director of Sales in Philadelphia. Kathleen started in radio at McGavren Guild in May of 1986 as a sales assistant. Over the next several years she began working with the political shops and was promoted to Account Executive. As a seller, Kathleen has won the Chairman Circle Award twice for Customer Service, as well as CCA wins for "Top Rep of Record" and "Most Productive Sales Person." Kathleen recently celebrated her 20th anniversary with Interep in May.

Raydyne sets
CEO succession

Equipment maker Radyne Corp. announced that Bob Fitting will retire as CEO on August 31st, but remain on the board of directors. Carl Myron Wagner (who goes by his middle name), formerly a VP at General Dynamics, has been elected by the board to be Radyne's new President and CEO.


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

San Antonio deal a half-price sale
Wall Street may have been applauding CBS for the big multiple in its sale of KTSA-AM and KXJK-FM San Antonio to Tom Castro's Border Media Partners (8/24/06 RBR #165), but it turns out that it is a half-price sale as far as the seller is concerned.

RBR observation: How things have changed. The previous sale was done at the peak of the market, just before values began to decline. Not only did Bernard Waterman get 90 million bucks, but he made Mel Karmazin structure the deal to be tax-free for the seller. According to the 4/3/2000 issue of RBR, Waterman got 90 million in Infinity stock for the stock of Waterman Broadcasting Corporation of Texas. We wonder if he had the good luck to sell before Infinity/Viacom/CBS began to slide with other media stocks. Lot more to read on this in
08/29/06 RBR #168

Google and eBay pact for
"click to call" functionality

Internet giants Google and eBay announced a multi-year deal involving text-based advertising and "click-to-call" advertising functionality. Google will become the exclusive text-based ad provider for eBay outside the US. Yahoo struck a parallel deal in May to handle all of eBay's U.S. ads. The click-to-call functionality will leverage both Skype and Google Talk globally in each company's respective shopping and search platforms.

RBR observation: Hard to over come perception being reality and when you say Google it is automatic to think search. eBay similar one thinks selling others people, well, junk. RBR continues to remind executives to research before you commit to a internet service.
08/29/06 RBR #168

Whew, lots of New
Clear Channel Chiefs
When the official announcement finally came out it confirmed much of what RBR reporting for many days. The managers of CC Radio's most important big markets are no longer overseeing smaller markets in their region, they have been given the new title of President & Market Manager.

RBR observation: Clearly Hogan is reconfiguring Clear Channel Radio to focus on the big bucks - trying to drive ratings and revenues in the largest markets. The 10 big market Pres./MMs are being told to focus exclusively on building ratings and revenues in the big bucks markets, while no longer having to worry about overseeing other markets - and, in most cases, fewer layers of management between them and Hogan. Will LESS layers of management produce MORE cash? One wag sent RBR an email questioning whether any layers of management had been eliminated. He or she noted that the old structure was Pres./CEO, SVP, RVP, me, while the new one is Pres./CEO, EVP, SVP, RVP, me. "Must be the new math," that CC manager concluded. Regardless, the real issue is the payoff. Clear Channel CEO Mark Mays has been telling Wall Street that his company is not like other radio companies and will ! continue to outgrow its peers. 2007 will be the test of that. Less is More will have completely lapped itself, the easy comps will be history and investors will be looking for the Mays boys and Hogan to deliver on their claim that Clear Channel can outperform the rest of the industry on a consistent basis. Last note as RBR continues to only hear that Clear Channel has a list of stations ready for sale, but this is unconfirmed. But if Clear Channel takes step as ABC and CBS in selling unwanted stations no matter the size it makes sense as it takes money to run any operation. RBR can not wait to see how Wall Street spins the happenings from last week and if May's words are true that Clear Channel is not like other radio companies.
08/28/06 RBR #167

TVB finds correlation between
spot spend and vehicle sales
This may be TV but the research is something that is vital for Local Radio to have as you compete on the street. The information comes from a Television Bureau of Advertising (TVB) analysis of 2Q '06 automotive ad spending data compiled by TNS Media Intelligence points to a strong correlation between spot TV ad spending and vehicle sales.

RBR observation: If you did not take a close look then suggestion is do it, and see the data and print it out. It will be valueable data when selling on the street against your competitors.
08/28/06 RBR #167

PPM holdout comes
aboard in Houston

Radio One has quietly dropped its long opposition to encoding for Arbitron's PPM test in Houston and begun encoding. Its stations are doing pretty well, too. The revelation came as Arbitron Thursday issued a weekly ratings data report to demonstrate new software for PPM stations.

RBR observation: Mary Catherine Sneed had been the most vocal critic of Arbitron at Radio One. That makes us think that her recent departure as COO may have had something to do with the corporate change of heart toward PPM. Total details and stats in
08/24/06 RBR #165


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