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Radio News ®
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 Connoisseur team
sees growth opportunity
With former Westwood One CEO Peter Kosann (left), on board as COO, Connoisseur Media CEO Jeff Warshaw (right) says the current state of the radio industry makes it a "landmark opportunity" to grow his company. Warshaw told RBR that operations are still important and the radio industry has "dropped the ball," so it is a good time to grow his company. "We think that people have overpaid and are overleveraged and undermanaged - and they've underspent and underinvested. We think this is why the industry is in the position it is in. We've put ourselves financially, and now from a personnel perspective, into a position to capitalize on the situation that the industry is in," Warshaw said. In his new position, Kosann will be focusing on extracting more revenue from Connoisseur's markets, investing in the company's people, marketing, and launching radio stations in additional markets. He also said a high priority will be developing strategies for growth in the digital arena. Connoisseur Media currently owns 22 stations in six markets, with stations pending launch in three other markets. Given his professional history, RBR asked Kosann the question that many of our readers may have thought of as well: Is Connoisseur looking to get into the radio syndication business? "We have enough on our plate," Kosann said, with Warshaw agreeing that the company has plenty of opportunities for growth without trying to get into another business.
FCC kicks off localism NAL
The multipronged Notice of Proposed Rulemaking which may well build on the new program reporting requirements just imposed on broadcast television has been officially kicked off. In point of fact, it's been kicked to the Federal Register, which will get its publishing operation in gear. Once the NAL is officially in print there, those wishing to comment on the proceeding will have 60 days to fire away, with a 30 day reply period directly following. A number of specific issues are in the docket, including: * communication between licensees and their communities; * the nature and amount of community-responsive programming; * political programming; * underserved audiences; * disaster warnings; * network affiliation rules; * payola/sponsorship identification; * license renewal procedures; and * additional spectrum allocations.
Some of the ideas still on the table would have significant costs for broadcasters. One proposal would revert to the pre-1987 main studio rule, essentially forcing many radio clusters and even some TV duops to have multiple studio buildings. The Commission did, however back off on the idea of banning "national playlists" or requiring radio stations to play music by local artists. Still on the "to do" list is requiring every radio and TV station to have a formal community advisory board. The Commission said, "...in written comments and testimony received during six related field hearings, many other commenters have raised serious concerns that broadcasters' efforts, as a general matter, fall far short from what they should be. Specifically, the record indicates that many stations do not engage in the necessary public dialogue as to community needs and interests and that members of the public are not fully aware of the local issue-responsive programming that their local stations have aired."
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Kaiser finds non-profits want more PSA time
The average amount of time allocated to public service announcements on video distribution entities is 17 seconds per hour, according to a new Kaiser Family Foundation study of a week in 2005. It repeated a study conducted in 2000. The further breakdown showed 18 second from English-language broadcast stations, 15 seconds from basic cable outlets and 29 seconds from Spanish-language Univision. The results were roughly equivalent to those from the earlier study -- Prof. Walter Gantz of Indiana University, who worked on the study, said the differences were statistically insignificant -- showing that while there were no gains made, neither was there a particular erosion of PSA service. Nevertheless, non-profits seeking to get a message out are looking at ways to get hold of more broadcast inventory. If it cannot be negotiated directly with networks and local stations, they wonder if the public interest planks in a broadcast license can be expanded to include PSAs.
FCC Commissioner Michael Copps, one of three commissioners in attendance, said, "Breathing new life into the public interest standard is on my 'bucket list' before I leave the FCC." However, he noted that providing time for PSAs was not the most important part of pub-int. Jonathan Adelstein, noting that most PSAs are aired between midnight and 6AM on broadcast outlets -- some 60% -- said that insomniacs may be well informed, but that some of the important info needs to be aired when people are actually watching. Deborah Taylor Tate defended the good works broadcasters are already doing and warned against the possible negative results from adding layers of regulation.
RBR observation: We gather that any sort of PSA obligation would be a matter far down the regulatory pike at this point. Public comment would need to be gathered just for starters. It's place in a clear definition of public interest would need to be determined, and a clear definition of what actually constitutes a PSA would be needed. This won't happen tomorrow. But we'll have more on this topic next week.
DC mayor to bring Radio One back to DC
DC Mayor Adrian Fenty has signed a Land Disposition Agreement with Broadcast Center One Partners that will bring Radio One to the District's Shaw neighborhood. The ceremony took place yesterday. Radio One O&Os WKYS, WMMJ, WYCB, WOL and LMAs WPRS with Bonneville, Its HQ and studios are currently in suburban Lanham, MD. The D.C. Council has approved a 23 million subsidy for the mixed-use Broadcast Center One development. The deal is slated to bring 103,000 square feet of office space, nearly 25,000 square feet of retail, 180 rental apartments and a 195-spot underground parking garage. Fenty reached the deal with developers Four Points, Ellis Development Group and the Jarvis Co. on 11/13/07.
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| Friday Intelligence Brief |
Who needs HD Radio Conditional Access?
 In this Friday's Intel Brief, RBR/TVBR, in conjunction with Thomas Rucktenwald, Director, Data Applications Sales and Hugo Latapie, Chief Technology Officer, NDS Americas, discuss Conditional Access and addressable advertising technologies. We also offer up new info from The HD Radio Alliance and much more.
Information and entertainment is undergoing a revolution. Just as digital video recorders, internet-based video distribution and the proliferation of video-capable mobile devices have changed our expectations concerning television, radio is now undergoing a similar transformation. Terrestrial radio is free and always will be. Although the options of pay-for subscriptions and pay-per-listen scenarios are emerging, they will always be just that - options. Conditional Access (CA), the encryption of programming and entitlement of authorized receivers, is a term normally associated with pay entertainment services like satellite or cable TV. However, as radio continues to evolve, entitlement and encryption are becoming more important. Why would an encryption technology be important to terrestrial digital radio?
| Read this brief at RBR.com |
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Ad Business Report TM
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Cabo Wabo now available via Skyy Spirits;
campaign to follow
Skyy Spirits is now the official marketer and distributor of the Cabo Wabo Tequila line in the US. The tequila portfolio, originally created by rocker Sammy Hagar, consists of Cabo Wabo Blanco, Reposado, Anejo, and ultra luxury Cabo Uno, and is now available through Skyy Spirits' nationwide network of distributors and wholesalers. In the coming year, Skyy Spirits will support the growing Cabo Wabo Tequila super-premium brand with sales and distributor incentives; radio advertising and consumer promotions; and a full line of premium merchandising items. The company will also launch a consumer relationship program to develop a meaningful dialogue directly with Cabo Wabo's fan base, in addition to supporting Hagar's nationwide 2008 concert tour.
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| Media Markets & Money TM |
 Clear Channel approval released
RBR reported over a week ago that the FCC had voted unanimously to approve the sale of Clear Channel Communications to Thomas H. Lee Partners and Bain Capital for 26.7 billion, including debt assumption, but the paperwork finally came out yesterday. Although they both voted for the license transfers, Commissioners Michael Copps and Jonathan Adelstein, the FCC's two members from the Democratic Party, expressed some misgivings.
Copps applauded the de-consolidation effect of Clear Channel having to divest 42 radio stations in the top 100 markets and its ongoing effort to sell hundreds of smaller market stations. So, he said, there might be some public interest benefit. "But there is another side to this transaction, and it's one that concerns me greatly. I have repeatedly called for the Commission to examine the potential impact of private equity on our ability to ensure that broadcast licensees protect, serve and sustain the public interest. Unfortunately, that has not happened, and nothing in today's Order indicates that the Commission has had a change of heart. Instead, we once again close our eyes and pretend that nothing has changed-as if these new entities are no different than our traditional broadcast licensees. And there are those who accuse me of living in the past!" Copps railed in his statement accompanying the formal approval.
For Adelstein, his concern is whether the FCC should investigate further claims by Mt. Wilson FM Broadcasters that Clear Channel had required some advertisers in LA to devote 100% of the radio advertising budgets to Clear Channel stations - a claim that Clear Channel denied. "Approval of this transaction will result in less consolidation in the radio industry. While I support this Order generally, I concur in part to highlight my concern regarding alleged anticompetitive practices with respect to advertising in the radio industry. I agree with the Order's conclusion that, in this case, Mt. Wilson has failed to establish a prima facie case that Clear Channel has engaged in specific anticompetitive sales practices. I am not convinced, though, that the Commission's inquiry should stop there," Adelstein said in his statement.
RBR observation: Will Commissioner Copps ever wake up and realize that private equity firms have been radio and TV group owners for decades? In fact, Commissioner, these buyers that you refer to as "new entities" are, in fact, "no different than our traditional broadcast licensees" because entities structured and funded exactly the same way have long been among the traditional broadcast licensees.
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| Washington Business Report TM |
Lost in the translation
It seems like the frequency of license renewal challenges is picking up. The novelty of some them certainly is, like the informal objection filed by Robert Schore to the renewal or Polnet Communications' WRKL-AM New City NY. Schore says the station does not serve the residents of New City (a community up the Hudson River from the more famous New York City). That's because most of the citizens of New City do not speak Polish, which is the predominant language used on the station. Schore said that the need for better local service is paramount due to the town's proximity to the Indian Point nuclear power plant. The FCC reiterated its stance that licensees have "broad discretion to choose, in good faith, which issues are of concern to the community and to choose the best way to address those issues."
RBR observation: If there are enough Polish-speaking individuals in the vicinity of New City to warrant their own radio station, we'd say they have the right to know if the Indian Point plant has gone China Syndrome on them (if that's not readily apparent via the use of the normal senses nature has allocated to the human organism). Polnet is in fact honoring the diversity portion of the FCC mantra "localism, competition and diversity." By the way, Schore lives in an area where the rarest thing on the radio is an empty frequency slot. If he cannot find something to listen to just upriver from NYC, he's not likely to find it anywhere.
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| Entertainment Business Report TM |
 Rascal Flatts to host Westwood One's Country Countdown USA
Westwood One announced top-selling group Rascal Flatts will fill-in for Country Disc Jockey Hall of Fame inductee, Lon Helton as host of CMT's Country Countdown USA, for the weekend of January 26-27, 2007. Band members Gary, Jay, & Joe Don count down the week's Top 30, and share stories about a lot of their friends, including Kenny Chesney, Carrie Underwood, Brooks & Dunn, and more. Discussions about the launch of their Still Feels Good tour and new hit song, "Winner at a Losing Game" which is in the Top 5 of the countdown will happen as well.
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| Internet Business Report TM |
New Indie & Classic Rock sites for 98 Rock
Hearst's WIYY-FM (98 Rock) Baltimore's has unveiled new websites for its Indie Rock and Classic Rock audio streams, which simulcast its multicast channels: Indie979.com (HD3) and Classic98rock.com (HD2). Interestingly, the Indie979 logo resembles the same for world-renowned Indie 103.1 in LA.
RBR observation: There should be at least one Indie Rock multicast stream in every market-this is where the youth are migrating to on their iPods, online and on satellite. "Alternative" is today and tomorrow's Classic Rock...and is stale.
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| Ratings & Research |
 Nielsen Company's 2008 Guide to the Super Bowl
The Nielsen Company released its annual Guide to the Super Bowl which showcases a wide range of consumer and media information about the most notable marketing event in the U.S. - the NFL's Super Bowl - scheduled for 2/3 in Phoenix. As usual, the Super Bowl is the highest rated TV show in the U.S. for the year, attracting an average of 93.1 million Americans to CBS to watch the Indianapolis Colts beat the Chicago Bears last year. The event averaged a 42.6% household rating, up from the 2006 match-up between the Pittsburgh Steelers and the Seattle Seahawks, which was watched by 90.7 million viewers and an average of 41.6% of U.S. homes. The most-watched Super Bowl of all time was in 1982 with a 49.1% rating, which also happened to be the fourth-highest rated television program since 1961 just behind the final episodes of M*A*S*H, Dallas and Roots Part VIII. Of the top-40 sports telecasts since January 1961, all but four telecasts were Super Bowls.
In local markets, the highest overall local rating in 2007 - at nearly 56% -- was in Indianapolis, home of Super Bowl XLI champions. The second largest local TV audience, with an average of 50.4%, Orlando-Daytona Beach, while Chicago, home of the Bears, ranked third with an average of 50.2%. Kansas City, Minneapolis and Milwaukee followed respectively as the next three markets with the largest Super Bowl audiences (see table). As expected, men watched the 2007 Super Bowl the most (41.1% rating, or 43.2 million viewers), yet a significant number of women, Hispanics and African Americans also tuned into the televised game. Approximately 36.4 million women over the age of 18 watched the 2007 Super Bowl for a 32.2% average rating. Among women viewers, those age 25-54 had the highest interest, with a 32.9% average rating. An average of 28.5% of African Americans (appr 10.1 million viewers), and an average of 15.5% of Hispanics (appr 6.2 million viewers) tuned into Super Bowl XLI. Tomorrow: Detail for online sector and more.
| See table here |
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| TVBR TV News |
Form for substance?
The FCC's "Standardized Television Disclosure Form" is officially available, and it's a doozy. We clock it in at eight pages. It asks for all kind of information. What market are you in? Are you a network affiliate? Publicly owned? Independent? Commercial/noncommercial? It asks for information on primary and non-primary programming streams, the amount of time weekly for different types of programming, and how much is in high-definition. It wants total time for national news, locally news produced by the station, local news from elsewhere, total time spend on local civic affairs and local electoral affairs. It also asks for total programming that is independently produced, total PSAs, total paid PSAs and total closed captioned programming. It then provides space to go into more depth on the news, public affairs and PSA areas. It asks it you run programs aimed and under-served communities in your license area, and it asks about religious programming. It asks how your station goes about meeting community needs and serving the disable. It seeks information of performance during emergencies, and whether the station participates in an LMA, JSA or similar agreement. Then it asks for a signature.
| Go to TVBR.com to see the entire form |
TVBR observation: This form is going to be a great deal of fun to keep up to date. And we can see where it would be fun to go to a station's public file and dig into this stuff, especially for the watchdog community. It may not be a bad thing for every station, either. As Capitol Broadcasting's Jim Goodmon has pointed out, it gives strong full-service stations a chance to shine. The obvious question is on the flip side. Take a 24/7 syndicated home shopper in an LMA. It's perfectly legal, but it's going to result in a lot of zeros on the program tally page. Should it just go ahead and turn in the license now? We have to believe that the FCC would have no authority to revoke a license based on program content, because of the First Amendment, and more to the point, because if somebody is tuning in, the station is in fact serving somebody in the local community. And if there is nothing the FCC can do, short of wagging a finger and shaming a particular station, then this whole thing becomes an essentially pointless exercise.
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| Stock Talk |
Stocks gain again
Traders celebrated as the White House and Congress agreed on a tax rebate plan to stimulate the economy. The Dow Industrials rose 108 points, or 0.0%, to 12,379.
Radio stocks were also higher. The RBR Radio Index gained 1.596, or 2%, to 82.449. Clear Channel rose 4.7% as the FCC issued official approval for its pending buyout. Beasley jumped 10.2%, Entercom 5.8% and SBS 5.5%.
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| Radio Stocks |
Here's how stocks fared on Thursday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron*
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ARB
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40.31
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-1.10
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Google
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GOOG
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574.49
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+25.87
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Beasley*
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BBGI
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4.98
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+0.46
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Hearst-Argyle
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HTV
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20.57
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-0.06
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| CBS CI. B |
CBS |
 |
23.96
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+0.86
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Journal Comm.
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JRN
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7.95
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+0.17
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| CBS CI. A |
CBSa |
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23.91
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+0.89
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Lincoln Natl.
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LNC
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51.46
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-0.63
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| Citadel* |
CDL |
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1.63 |
+0.02 |
Radio One, Cl. A
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ROIA
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1.68
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-0.02
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Clear Channel*
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CCU
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33.72
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+1.51
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Radio One, Cl. D*
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ROIAK
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1.71
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-0.03
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Cox Radio*
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CXR
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11.14
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+0.24
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Regent*
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RGCI
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1.47
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+0.04
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Cumulus*
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CMLS
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5.87
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+0.02
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Saga Commun.*
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SGA
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5.74
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-0.05
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Debut Bcg.
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DBTB
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0.95
|
unch
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Salem Comm.*
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SALM
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3.90
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unch
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Disney
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DIS
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29.23
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+0.71
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Sirius Sat. Radio
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SIRI
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2.95
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+0.08
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Emmis*
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EMMS
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2.91
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-0.07
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Spanish Bcg.*
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SBSA
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1.74
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+0.09
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Entercom*
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ETM
|
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11.90
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+0.65
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Westwood One*
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WON
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1.71
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+0.05
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Entravision
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EVC
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6.45
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+0.26
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XM Sat. Radio
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XMSR
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11.30
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+0.10
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Fisher
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FSCI
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32.75
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-0.88
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-
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-
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-
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-
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-
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*Component of the RBR Radio Index
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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]
A reader presses the issue
 The RBR/TVBR story "Clinton leads the pack in press coverage" (1/24/08 RBR #16) didn't seem right to this broadcaster.
Should our industry say "press?" Isn't news better? Seems like press means paper/print to me, and doesn't include broadcast coverage.
Thank you!
Julie Hein
KZIA-FM Z102.9 and KGYM-AM 1600ESPN
Cedar Rapids, IA
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Below the Fold
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Washington Business Report
Lost in the translation
Seems like the frequency of license renewal challenges picking up...
Media Markets & Money
Clear Channel approval released
RBR reported over a week ago the FCC had voted unanimously to approve the sale. - Will Copps ever wake up...
Internet Business Report
New Indie & Classic Rock
Sites for 98 Rock, there should be one, multicast stream in every market...
Ratings & Research
2008 Guide to the Super Bowl
Nielsen's annual Guide which showcases wide range of consumer & media info...
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Stations for Sale
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 Market your Stations For Sale
in our daily epapers.
Contact
Jim Carnegie
[email protected]
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RBR Radar 2008
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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National business isn't tanking
After reading our report yesterday, which you can still find on www.RBR.com, Bear Stearns analyst Victor Miller told clients that national spot sales for radio are not really tanking. "Perception: RBR Suggests 1Q National Advertising 'Tanking'-Down 17%. This AM, RBR, an influential radio trade, suggested that 1/7/08 national ad pacings for one major radio rep firm were 'tanking'; down 17.2% for the top 100 markets," Miller wrote. But he said the reality is better.
RBR observation: We hope he's right. While a high-single-digit decline in national business is better than a double-digit one, it is still hardly anything to cheer about. Miller concluded by telling clients not to expect much for the first half of 2008, but he thinks increased political and online spending will offset a decline in core advertising dollars, resulting in a flat year. Last time we look up the word Flat we read no air in the tire. We hope you have a spare in the trunk.
01/24/08 RBR #16
Feedback on Pacings and PPM
Bob Michaels writes - If radio moves to electronic measurement (PPM), they will have more confidence in the data - regardless what it shows - and put money into radio in those markets. As you indicated, I believe there is a strong correlation to Philadelphia being the only market in the top 10 that is pacing ahead of last year, and Houston is only 7% behind last year's Q1. Did anyone else notice that Philadelphia's 11.0M is also only 600K behind Los Angeles? How much more evidence do we need to move forward with PPM? Bob Michaels' MediaSense, LLC
01/24/08 RBR #16
WGA Strike Central, Day 81
NBCU also quashes pilots
It's a cost-cutting frenzy over at NBCU - anything to please the Jolly GE giant! Jeff Zucker, NBCU CEO, just days after confirming their upfront presentations are done, said Tuesday NBC was moving to save as much as 50 million a year by reducing its reliance on pilots of new series. The decision was made as the company looked for ways to cut costs in response to the WGA strike and slowdown in the economy.
01/24/08 TVBR #16
National pacings dismal for Q1
RBR has obtained data generated by one of the national rep firms showing just how soft national spot pacings for radio are in Q1. The numbers are pretty shocking. As of January 7th, when the data was generated, the top 10 markets were pacing 18.6% behind where they were at the same date a year earlier. Only one of those top 10 markets was in positive territory - Philadelphia. Markets 11-25 were about the same, down 16%. For the entire top 100 markets, pacings were down 17.2%.
01/23/08 RBR #15
Fred Jacobs assesses
Jim Boyle's P1 advice to radio
Jacobs Media President Fred Jacobs (pictured) was intrigued by the comments for CL King analyst Jim Boyle published a few days ago in RBR (1/18/08 RBR #12) on new ways that radio stations might look to monetize the value of their P1 listeners. "These are indeed the people who are loyal, engaged, and emotional about Radio stations. We need them - badly. But for the most part, Radio continues to look past them, trolling for diarykeepers and possible PPM cooperators."
01/23/08 RBR #15
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RBR Classifieds
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Hard finding that key person
to fill the important position at your organization? RBR Classifieds, Results with Service. Contact April McLynn at [email protected]
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Legendary DJ "Cousin Brucie" Morrow, pictured, is to be honored with one of the 2008 Ward L. Quaal Pioneer Awards by the Broadcasters Foundation of America, along with a bunch of broadcast CEOs: Robert "Doc" Fuller of Bob Fuller Broadcasting; Ed Christian of Saga Communications; Larry Bentson of Midcontinent Media; Stan Hubbard of Hubbard Broadcasting; and Thomas Oakley of QNI Broadcast Group. The presentations will be made April 16th at the foundation's annual breakfast at the Bellagio hotel in Las Vegas during the NAB convention. Ward Quaal will also be present for the first presentation of the annual awards recently renamed in his honor. 
Jones heads to Boston
Legal beagle promotion
Ifrah 
