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Volume 23, Issue 17, Jim Carnegie, Editor & Publisher
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Wednesday Morning January 25th, 2006
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Radio News ®
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 Dashev out at Interep
It's being called a "mutually agreed-up separation" as Jeff Dashev exits as President of Sales at Interep. He's been with the rep firm for 36 years and in his current position since 2003. "Jeff will leave Interep as an admired and respected figure throughout the radio representation industry," said CEO Ralph Guild in a statement announcing that the company is negotiating the terms of Dashev's departure, which is expected to take place by the end of this month. "Interep is a terrific company and an excellent place to work. But after a long and successful career at Interep, I'm ready to step back, take a break and consider the range of opportunities in a rapidly changing media universe, radio included," Dashev said.
RBR observation: It's no secret that the national spot radio business has been tough for at least a year. The question now is what Interep can do to bring in new business and increase national sales for its client station - - and just who will be able to do that.
Arbitron has lots of balls in the air
Arbitron CEO Steve Morris told analysts that the guidance the company gave yesterday for Q1 and full year 2006 could change - - and quickly. In just the next couple of months he expects to know the results of the Clear Channel RFP for electronic radio audience measurement, whether major radio groups will commit to a commercialization of the Portable People Meter (PPM) this year and whether Nielsen Media Research will sign on for a joint venture to deploy PPM for TV and cable as well as radio. Any one or all of those factors could make a significant impact on Arbitron's financial results for 2006. At this point, the company is telling Wall Street to expect revenue growth of 6-8% for both Q1 and the full year. Q1 earnings per share are projected at 50-52 cents, down from 63 cents a year ago as the company invests in both the PPM test in Houston and the test now underway of Project Apollo, a national consumer panel using PPM to track both media usage and buying activities. In the Q&A period, one analyst wanted to know whether the current situation that has VNU management assessing a buyout proposal from a consortium of equity investment firms, could make it less likely that VNU will continue to invest in Apollo or that its Nielsen subsidiary will make the joint venture commitment to PPM. Morris insisted that the VNU/Nielsen working group involved in both projects has not been affected at all by the buyout issue. And he said it didn't seem likely to him that the new owner would cut costs by abandoning initiatives that are being eagerly sought by the company's major customers. "I don't think either project would be considered peripheral," Morris said.
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 Disney nails Pixar deal;
Now on to ABC Radio
Disney announced after the market closed yesterday that it had struck a deal to acquire Pixar Animation Studios for 7.4 billion in Disney stock, confirming widespread rumors and expectations. With his top priority deal completed, Disney CEO Bob Iger can now turn to the ABC Radio deal he'd originally planned to have completed by last Thanksgiving. It appears the beachfront radio properties and ABC Radio Networks operation are Farid Suleman's to fold into Citadel Broadcasting if he can nail down details of a merger deal which will value those assets at around three billion bucks. Disney is insisting that the deal be structured as a Reverse Morris Trust stock swap, which will make Disney Citadel's majority stockholder. Stay tuned. Should Suleman not be able to come to terms, David Field at Entercom is still waiting in the wings. As for the Pixar deal, it values the movie animation studio at at 59.78 per share, with Pixar shareholders to receive 2.3 Disney shares for each Pixar share. That will make Pixar (and Apple) CEO Steve Jobs the largest individual shareholder of Disney, surpassing Roy Disney. As expected, he'll also join the Disney board of directors. Another crucial addition for Disney is signing John Lasseter from Pixar to be Chief Creative Officer of the combined Disney/Pixar animated movies operation.
Committee looks at audio flag
A trio of witnesses gave the Senate Commerce Committee a earful on the audio flag from polar opposite positions, and from the middle. The latter position is where Dan Halyburton testified from, representing both Susquehanna Radio and the National Association of Broadcasters. RIAA's Mitch Bainwol was pushing for an audio flag as radio makes its bit push to get HD radio up and running. He cited a market failure, which left the music industry uncompensated for its material. While not objecting to legitimate copying by consumers, he felt that somehow the record industry had to get a piece of the action if consumers are able to get digital quality material off the air. Gary Shapiro of CEA thought it was all nonsense. He cited XM and Sirius, noting that each pays royalties for content, and that music played there can be copied on a home device but cannot then be shared over the Internet. He said that RIAA was not striving to protect itself from losing what it has, but rather to grab something new which it does not have. Shapiro argued in favor of manufacturer innovation and consumer rights. Halyburton said that broadcasters had an interest in both sides of the argument. He noted that much work went into the video broadcast flag, while at the same time very little has been done on the audio side. He noted that NAB and RIAA were already discussing the topic and suggested that the industry needed to lay further groundwork before getting Congress involved. Ranking member Dan Inouye (D-HI) seemed satisfied with that, commending the negotiations between the two associations.
RBR observation: We were glad to hear one comment in particular from Halyburton. He noted that the RIAA does not exactly go uncompensated for music played on the airspace of America's radio stations, even if it doesn't get a piece of the royalty pie. Every song played by a radio station is a free ad for that song. RIAA clearly benefits from the age-old symbiotic relationship with radio, and to claim it gets no benefit out of the current arrangement simply is not true.
| Read Halyburton's prepared testimony here |
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Virginia looking to flatten media tax structure
For the second year in a row, legislators in Virginia are looking at a measure which would put a wide variety of communications services on a flat table - - according to the Washington Post, cable, satellite TV, and various phone and paging systems would all face a 5% tax. At the same time, it would eliminate local franchising fees. The impact would be to impose a tax on some services, such as DBS, for the first time. Meanwhile, by standardizing fees throughout the state, some cable systems would actually get a decrease. The goal of the program is to produce roughly the same amount of revenue for the state as it gets now, although analysts said it was difficult to predict if that would be the precise result. Proponents are said to be trying to get ahead of the curve by setting up a tax structure for media categories that are new or emerging, such as satellite radio and internet phone service.
RBR observation: A similar attempt last year in Virginia resulted in legislation calling for study rather than implementation of such a regime. They are also looking at alternatives to local franchising at the FCC and on Capitol Hill - - leaving open the possibility that a state program could be superseded by a federal package. Local governments generally hate the idea, and watchdogs also think that the local authorities need to be involved to make sure citizens aren't given short shrift on various bells and whistles. Stay tuned.
 Shakeup in TV:
CBS, Warner Bros. to launch CW Network
For radio, one immediate impact is the loss of an important advertiser. Where once there were UPN and The WB advertising their shows on radio, there will now be "CW." CBS Corp. and Time Warner's Warner Bros. Entertainment made the surprise announcement yesterday that they'll combine UPN and The WB's resources and programming to form the new broadcast network. Launching in September, CW will be a 50-50 partnership between Warner Bros. and CBS, airing in many markets on stations owned by Tribune, a minority owner of The WB (although will not have an equity interest in CW). That leaves News Corp. high and dry in such big markets as New York, LA and Chicago where it owns UPN affiliates. CBS Corp.'s existing affiliation pact with UPN affiliates, WWOR New York, WPWR Chicago and KCOP Los Angeles, is reportedly set to expire in September.
| Read More... |
RBR observation: The odd man out in this is Rupert Murdoch. In the deal between CBS, Time Warner and Tribune, News Corporation will have no network affiliation in such large markets as New York, Los Angeles and Chicago for what are now UPN affiliates. Should Murdoch decide to launch a second broadcast network alongside Fox, he would no doubt have plenty of other local stations lining up to join in markets where they are the UPN or WB affiliate that won't be getting CW.
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| Wall Street Media Business Report TM |
Arbitron suffered with its customers
Some radio executives might say that Arbitron hasn't suffered as much as they have from a tough advertising market. Nevertheless, Arbitron reported that its revenue gain was held down to 3.3% in Q4, producing revenues of 75.3 million. With expenses up, including spending for its PPM test in Houston and Project Apollo, earnings before interest and income tax expense (EBIT) increased only 0.4% to 17 million. Net income for Q4 was 11.2 million, up 16.2%. That was largely due to a reduction in interest expense from a refinancing.
 2005 had tough ending for NY Times Co.
Putting the best spin possible on a down quarter, CEO Janet Robinson (pictured) declared that Q4 results for the New York Times Company came in better than the company's guidance. That was due to better-than-expected performance at the New York Times Media Group from the NY Times, International Herald Tribune and NYTimes.com. The company's small radio operation is also part of that division. Meanwhile, the Broadcast Media Group (TV) saw revenues decline 10.2% to 37.3 million - - although revenues would have been up slightly if you discount for having only one million of political revenues this year, vs. 7.5 million a year earlier. "Gains in automotive, furniture and restaurant advertising partially offset losses in political advertising," the company said. News Media Group (newspaper/radio/Internet, except About.com) increased 1.7% for the quarter to 877 million, with ad revenues up 4.6%. All in all, net income fell 41% to 64.8 million. That worked out to 45 cents per share, compared to 75 cents a year earlier, although Robinson noted that EPS would have been 49 cents but for a four cent accounting charge, so the company actually beat its guidance of 45 cents.
Meredith pleased with quarter
Meredith Corporation is hardly in radio, with a single AM run in conjunction with its Saginaw, MI TV station. Against political comps from a year earlier, broadcast revenues were down 6% for the company's fiscal Q3 (October-December 2005) to 84.5 million, but CEO William Kerr focused on growth in non-political revenues, where local was up 9% and national 6% for the quarter. And the current quarter is even better, with pacings up in the high single digits. Publishing more than made up for TV's political shortfall in fiscal Q3, with revenues up 47.3% to 301.5 million, largely due to acquisitions. Magazine ad revenues grew 58% overall and the company said ad sales were up 9% on a comparable basis.
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Ad Business Report TM
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Jack Klues on "CW"
Jack Klues, Publicis Groupe Media CEO, who represents clients like GM, Procter & Gamble and Bristol-Myers Squibb, spoke with RBR/TVBR yesterday from Barcelona, just after learning the CW deal had been consummated. We asked for his thoughts: "Some of the big, more powerful WB affiliates like WGN in our hometown-how does this go down with them? I'm not so sure they were that fond of the WB." He adds, "As a viewer and media agency representative, what's my benefit here? Because it feels like I'm going to lose some choice and lose some venues, not gain some. Because anytime there's consolidation in our industry, just speaking as a buyer on behalf of our clients' money, it isn't a good thing. I've never seen a consolidation, no matter how it's been dressed, look like a real good thing to our clients. There are some key markets where putting those two together can't be easy." Be sure to catch our AdBiz interview with Jack in RBR/TVBR's Solutions Magazine, March issue.
 Toyota to join NASCAR's
Nextel racing series
Toyota will join NASCAR's Nextel Series racing circuit, a market long dominated by U.S. automakers. Toyota, which has raced in the NASCAR Craftsman Truck Series since 2004, will join the Nextel and Busch Series beginning in 2007. Toyota's drivers will race with its super-successful Camry model. NASCAR signed a 4.48 billion, eight-year deal with four TV and cable networks in December, topping the current 2.4 billion, six-year agreement that expires after 2006.
GE names Dan Henson Chief Marketing Officer
GE announced Dan Henson to Chief Marketing Officer, effective immediately. He succeeds Beth Comstock, who was promoted to President of NBC Universal Digital Media and Marketing Development. Henson will report directly to GE Chairman & CEO Jeff Immelt. Henson, 44, will focus on customer satisfaction and enhancing the capabilities of GE's 45,000+ sales and marketing professionals. He will be responsible for driving sales and marketing, sales force effectiveness, enterprise accounts, strategic marketing, advertising, branding and communications.
Carole Johnson named SVP/Advertising at Staples
Reporting to Shira Goodman, Staples EVP/Marketing, Johnson will have responsibility for developing and producing all marketing communications for Staples U.S. Retail business, Staples Business Delivery, Staples Contract division and the company's Canadian delivery biz. "Carole brings a wealth of experience to this critical position," said Goodman. "She will play a key role as we further differentiate the Staples easy brand, consistently affirming that Staples helps make work life easier. Her leadership and creativity will help build even stronger connections with our loyal customers while attracting new customers to Staples as their office products company of choice." Previously, Johnson was VP/Marketing for AAi.FosterGrant, a leading supplier of sunglass and optical products. Prior to that, she was VP/Marketing at Monster, the largest Internet job search engine.
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| Media Business Report TM |
 Verizon on the prowl for cable customers
Woburn, Mass., and Massapequa Park NY are the latest entry points for Verizon as it trolls for video customers who heretofore had to choose MVPD service from either a local cable system or one of the satellite providers. According to the Associated Press, the two towns join 14 in Texas and one each in Florida and Virginia in the telco's MVPD portfolio. It's offering 180 basic channels for just under 45/month.
RBR observation: Advances in technology increase the options for receiving entertainment content, Internet access and phone service. But it doesn't increase the number of available customers - - America's maternity wards and immigration services are the only way to keep the supply of new viewers and listeners coming, and they move at their own pace. So everybody in the media seems to be trying to grab a chunk of everybody else's pie. One tail bites another in an endless circle. Telcos go after cable operators, who go after Internet providers, who go after phone companies. Terrestrial radio may risk its entire mass audience m.o. with microtargeted HD formats as it dukes it out with satellite radio. We've said it before and we'll say it again - - it is time to fasten your seatbelt, because nobody knows where all this is headed.
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| Media Markets & Money TM |
Sanchez on a spree
Norberto Sanchez stories are becoming a daily item. We reported yesterday that his Norsan Broadcasting and Management had reached agreement to acquire WFAY-AM Fayetteville NC for 850K. Now, we hear from Todd Fowler of American Media Services' brokerage department that he's got another 500K to spend, this time in Knoxville TN. The station is WKGN-AM, and Triple S. Enterprises, headed by Robert L. Stewart, is the seller. And we're not done with Sanchez today - - read on...
Close encounter in Jacksonville NC
Stan Raymond says that Norberto Sanchez and his Norsan Broadcasting and Management have taken the keys to WSOS-AM, operating on the southern edge of the Jacksonville market out of St. Augustine Beach. Sellers 3 Point Media, headed by Bruce Buzil and Chris Devine, have pocketed 300K in exchange for the station.
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| Washington Media Business Report TM |
 Fireside fails to extinguish Auction No, 62
Fireside Media tried to get the FCC to slam on the brakes for FM Auction No. 62, which kicked off on 1/12/06. The fact that it waited until 1/10/06 to do so probably did not help, but the request was probably doomed regardless. At issue are high bid withdrawals by Fireside during Auction No. 37. It pulled out of four high bids, three of which went unsold, leaving it liable for withdrawal payment obligations, which it would like relief from. The FCC seems disinclined to honor the request since the rules are clearly specified. It challenged Fireside's assertion that proceeding with Auction No. 62 would "irreparably harm" it's attempt to apply for relief from its obligations (particularly since it waited so late, even after the auction had been postponed over two months due to Hurricane Katrina). The FCC was particularly unwilling to throw the bidding plans of 214 potential licensees just to accommodate Fireside.
RBR observation: Fireside, which is not participating in the current auction, does have reason to stand on the sidelines and cheer on the bidders. The three sticks if jilted are back on the block, and if buyers emerge for them with bids exceeding Fireside's, then its obligation will be nothing and its petition for relief will be moot.
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| RBR Stats |
ACNielsen:
U.S. consumers still most strapped for cash on globe
The US and Portugal top 42 markets for the most cash-strapped consumers according to a recent global online survey from ACNielsen, the world's leading provider of consumer and marketplace information. Nearly one-quarter (22%) of U.S. respondents said that once they have covered their essential living expenses, they have no money left over.
| Read More... |
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| TVBR - TV News |
 Commerce Committee raises the flag
If we're any judge, there is a good chance that the Senate Commerce Committee will get the ball rolling on legislation to give video content providers the anti-piracy broadcast flag they desire. Flag technology was adopted by the FCC, only to be shot down in the courts on what was, according to Fox's engineering guru Andy Setos, jurisdictional grounds. Committee Chair Ted Stevens (R-AK) appears ready to grant the necessary jurisdiction via legislation. The technology is designed to allow fair-use copy-making by consumers, much as they are able to do with analog equipment now, while attempting to prevent widespread dissemination - - or piracy - - over the Internet or by other means. Thomas B. Patton of Philips Electronics also testified on its behalf, saying that while the system on the table isn't perfect, the FCC basically "got it right" in its attempt to balance the rights of copyright holders with those of consumers. Two witnesses pointing out flaws almost seemed resigned to adoption of the flag, and argued for codification of rightful use into any legislation. Jonathan Band of the American Library Association agreed that providers had a right to protect their material but wanted to assure that exceptions are installed into any legislation to promote limited academic use. Leslie Harris of the Center for Democracy and Technology wanted to assure that there was room for innovation, allowances for use of news clips, and other consumer rights issues. She argued that the FCC was being forced into the position of being both a tech and copyright arbitrator, neither being a role to which it is suited and warned Congress to be as clear as it possibly can be on what it wants the FCC to actually do. Don't call up Congressional Quarterly and have them list the broadcast flag as law of the land just yet. Sen. John Sununu (R-NH) questioned whether it was needed, noting that there have been other sea changes in the media world prior to the transition from audio to digital. He thought perhaps the open market would function best to determine the course for the future. Stevens said the Committee is looking to start marking up media legislation in late March. [See related story on audio flag under RBR - - RADIO NEWS]
TVBR observation: We're not so certain that Sununu is right. Issues of compatibility, interoperability, etc. require a traffic cop somewhere along the line. Even more basic things like determining how consumers receive product and producers get paid are still being sorted out. Competing interests were able to lock horns today on Capitol Hill - - but there still needs to be someone in the zebra shirt to maintain order. The Committee should proceed cautiously and thoroughly, and spell out as much as it can - - but after that, the zebra suit will probably default to the FCC since, as imperfect a result as that may be, it's difficult to think of any better option.
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| Transactions |
900K WANO-AM Pineville KY, WFXY-AM Middlesboro KY & WXJB-FM Harrogate TN. 100% of Cumberland Media Group/County-Wide Broadcasters/JBD Inc. from Estate of Warren A. Pursifull, Brent W. Pursifull, admin. (Beulah Pursifull) to Cumberland OmniMedia (Joshua R. Wilkey). 45K escrow, 705K cash at closing, 250K directly to retire debt owed by companies to Beulah Pursifull. WXJB-FM was spun off immediately to a third party. AMs form an existing duopoly. [File date 1/5/06.]
220K WECM-AM Pensacola FL (Milton FL) from Worldlink Technologies Group Inc. (Michael Pfoot) to Professional Humor Inc. (Baroness Maxine Ann Agasim-Pereira of Fulwood, Lady Sarah of Fulwood, Lay Yaalit of Fulwood and Lord Elio of Fulwood). 11K escrow, balance in cash at closingm including retirement of note owed by sellers to Faith Baptist Church. [File date 1/6/06.]
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| Stock Talk |
Mickie D boosts stocks
Stock prices were modestly higher on Tuesday after McDonald's posted better-than-expected results. The Dow Industrials rose 23 points, or 0.2%, to 10,712.
Radio stocks were slightly higher. The Radio Index edged up 0.055, a mere 0.03%, to 177.384. The day's big mover in broadcasting was CBS, up 4.2% for its Class B stock and 4% for Class A after announcing its deal to merge UPN with The WB network. Disney gained 1.8% before announcing its anticipated deal to acquire Pixar.
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| Radio Stocks |
Here's how stocks fared on Tuesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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40.30
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+0.26
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Hearst-Argyle
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HTV
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23.96
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+0.26
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Beasley
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BBGI
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14.00
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-0.03
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Interep
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IREP
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0.40
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-0.20
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| CBS CI. B |
CBS |
 |
26.90
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+1.08
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Jeff-Pilot
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JP
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56.80
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-0.13
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| CBS CI. A |
CBSa |
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26.89
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+1.04
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Journal Comm.
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JRN
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13.23
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+0.09
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| Citadel |
CDL |
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12.33 |
+0.08 |
Radio One, Cl. A
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ROIA
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10.34
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+0.03
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Clear Channel
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CCU
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29.95
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-0.05
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Radio One, Cl. D
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ROIAK
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10.39
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+0.07
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Cox Radio
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CXR
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13.59
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+0.04
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Regent
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RGCI
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4.73
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+0.08
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Cumulus
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CMLS
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12.75
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+0.04
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Saga Commun.
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SGA
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10.09
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-0.14
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Disney
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DIS
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25.99
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+0.47
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Salem Comm.
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SALM
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15.55
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-0.12
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Emmis
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EMMS
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17.39
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-0.17
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Sirius Sat. Radio
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SIRI
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5.90
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-0.21
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| Entercom |
ETM
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30.06
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-0.03
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Spanish Bcg.
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SBSA
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5.37
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+0.05
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Entravision
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EVC
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7.30
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+0.06
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Univision
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UVN
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31.08
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-0.22
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Fisher
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FSCI
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42.74
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+0.07
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Westwood One
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WON
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14.96
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-0.25
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Gaylord
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GET
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40.43
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+0.14
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XM Sat. Radio
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XMSR
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27.30
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+0.08
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Bounceback
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 We want to
hear from you.
This is your column, so send your comments and
a photo to [email protected]
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Below the Fold
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Ad Business Report
"CW" reaction from Jack Klues
On behalf of our clients' money, it isn't a good thing...
Media Business Report
Cable may have to hold the phone
Technology doesn't increase the availability of customers...
Media Markets & Money
Sanchez on a spree
Has agreement to acquire WFAY-AM...
Ratings & Research
Consumers still strapped
Can pay bills but nothing left over, problem...
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Radio Media Moves
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 Hill rises in Phoenix
Russ Hill has been named Program Director for Bonneville's KTAR-AM and KMVP-AM Phoenix, effective February 13th. He had been News & Program director at Bonneville's KSL-AM Salt Lake City.
New Louisville slugger
Todd Schumacher has been named Vice President and Market Manager of the Cox Radio Louisville cluster, effective in late February. He had been Director of Sales for Susquehanna's Indianapolis cluster.
 SMAC goes
to the Max
Bob Davis, Director of Sales for Max Radio's four station cluster in the Elizabeth City/Nags Head market has been named to the Radio Advertising Bureau's Small Market Advisory Committee (SMAC). Davis has been with Max Radio of the Carolinas since 2002.
New role for Gaines
Salem Communications VP Ken Gaines has moved to the new post of VP, Church Relations, helping the Religious broadcaster's stations strengthen their partnerships with local churches.
Coyote nabs O'Neal
Kevin O'Neal has been named Program Director of Beasley's new country station, KCYE-FM "104.3 The Coyote" Las Vegas. He returns to Beasley after being Operations Manager as Cumulus' WSM-FM Nashville.
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Stations for Sale
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Northern NewEng
AM & FM stations. Separate
operations. Gross 450K+-.
Good upside. 850K.
[email protected] or
lv msg @ 781-848-4201
NYC Prime Radio
Time for Lease
7 days a week available p/t-f/t Business, Foreign language, religious, Health, Infomercials accepted. 212-769-1925 [email protected]
TV & Satellite time also available. Station Inquiries welcome
Santa Fe Market #237 FM
New market FM entrant ready to go!
SW Virginia AM
Small market gem!
Cliff at Clifton Gardiner & Co
(303)758-6900
S.E. AM/FM $700 K.
Outdoorsman's Delight
Fish, Hunt & Work
Ken Hawkins 334-514-2241
[email protected]
NE Utah Profitable FM
Rated Market Upgrade Potential!
NE Louisiana FM
Great stand alone market!
Cliff at Clifton Gardiner & Co
(303)758-6900
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RBR Radar 2005
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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Citadel's inside lane for ABC Radio
Sometimes money isn't the only factor in deal making, and in the case of Disney's potential sale of ABC Radio it appears that Disney CEO Bob Iger prefers Citadel CEO Farid Suleman and the resume he brings to the table. But -
RBR observation: No offense to Farid, but he didn't build Infinity himself - - he was the right hand man to the guy who did build it, Mel Karmazin. The real problem with all of the bidders for ABC Radio - - Citadel, Entercom and KKR - - is that none of them have any management experience in network radio, and that's where the upside potential lies with ABC - - as well as the potential for a financial disaster. The ABC radio station group is doing just fine - - good ratings and strong cash flow. But ABC Radio Networks is quite weak as a cash flow generator - - and a lot of what it does have is dependent on one 87-year-old man, Paul Harvey. Farid is terrific on the financial side, but who does he have on his team to drive sales and juice up programming at ABCRN, while also fixing the cost structure at the network operation?
01/24/06 RBR #16
Cumulus not reporting music adds
It won't make any difference in what you read in RBR, since we don't have any music charts, but Cumulus Media has decided that, effective next week, its programmers won't be reporting music adds to trade publications.
RBR observation: Exec. VP John Dickey, who heads programming at Cumulus, told RBR there just wasn't any business reason to help the trade pubs put together their charts - - except that it had been done that way for a long time. Note that record labels will still be able to find out what his company's stations are playing from BDS and Clear Channel owned Mediabase, which gather airplay data electronically. Part of it makes sense to us at RBR as you have to remember which or both services stations report to.
01/24/06 RBR #16
Senate challenged to up
the rate for indecency
Rep. Fred Upton (R-MI) has reiterated his call for action on a bill to dramatically increase the fine ceiling for broadcasters found guilty of putting indecency content on the air. Despite widespread bipartisan support, attempts in both 2004 and 2005 to put such a law on the books have failed. 11 months ago, the House overwhelmingly passed bipartisan legislation to raise the fines for indecent material broadcast over the public's airwaves.
RBR observation: Why are the fines always tied to the price of Super Bowl ads? Comparing a fine on a broadcaster doesn't apply to income going to a network, which, as a non-licensee is not directly liable for what goes out over local air. We're sure the local guys aren't pulling down 86K per second for their leftover avails, especially those operating radio stations. And the vast majority of local broadcasters will not be carrying the Super Bowl this year. Indeed, most will NEVER carry it. 500K is more than some stations are worth, period. Further, Upton may be certain that a 500K hit for an on-air slip will stand up to court scrutiny, but we aren't so sure. The inherent difficulty in defining the crime makes fair enforcement particularly difficult, and the high price tag of a notice of apparent liability, should such legislation pass, would almost certainly inspire someone, somewhere! to wage a bitter court battle.
01/23/06 RBR #15
Sporting News fines
for radio/print gambling ads
Paul Allen's The Sporting News has become the first US media company to be fined for running ads for offshore Internet gambling sites. The company, which owns both The Sporting News print publication and The Sporting News Radio Network (Allen also owns five stations), agreed to pay a 4.2 million bucks fine and run three million bucks worth of public service ads that will try to discourage people from gambling over the Internet or telephone.
RBR observation: Although they've been cooperating with the government and have dropped the ads in question, such major media companies as CBS and Clear Channel could still have to pay fines just as The Sporting News did. That, of course, will leave them open to challenges when their licenses come up for review at the FCC
01/23/06 RBR #15
HD Digital Radio Alliance on its way
They accelerate the rollout of HD digital radio, announced the initial 28 markets that will begin broadcasting HD2 multicast programming under the Alliance's format-selection program. Complete markets and formats see
01/19/06 RBR #13
Google jumps into radio
with dMarc buy
Internet giant plans to integrate dMarc's RevenueSuite inventory buying technology into the Google AdWords platform, "creating a new radio ad distribution channel for Google advertisers." The companies put the cost of the deal at 102 million in cash maybe an 800-lb. Gorilla in the making. Google sees radio as 14,000 candy stores spread out all over the country. This technology makes the buys automated for advertisers. The thinking may be there's no reason to have national sales organizations like Interep or Katz going forward. Meanwhile radio seems happy about the move: Said Val Maki, SVP/Market Manager/Emmis LA and Emmis Radio Division VP: "Emmis Radio has signed an agreement for the automated advertising platform by dMarc, which announced earlier today it was being acquired by Google. On the Ad Agency side - Kathy Crawford, MindShare President/Local Broadcast, says she understands why one might think this might curtail the need for the reps, however, "I'm not convinced we're going down an inevitable path today. I think we all have to take a deep breath and say, 'Where are we really going?'
01/18/06 RBR #12
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Retail Sales Manger
This is where the new money is today and for the future. Not selling spots that can be erased. Clear Channel- Minneapolis, top 20 market, has this unique opening and seeking a unique person to teach with leadership. This is not a spreadsheet position but one of growth to build a retail team.
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National Radio Services
Arbitron seeking that unique individual to join them as Account Manager to their National Radio Services team in NYC. Key duties: On the national side of the business serving as principal contact with-Networks-Syndicators-Rep Firms. Have the experience and skills in the network or rep business then join the Arbitron team where 'People make the difference.'
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Sales Representative
Experienced Radio Sales Rep specializing in direct selling to join a talented team effort in high growth of Washington, DC. Our format is Talk Radio and what a better place to be selling talk than in our nations capital.
See Radio Careers
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