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Welcome to RBR's Daily Epaper
Volume 22, Issue 170, Jim Carnegie, Editor & Publisher
Tuesday Morning August 30th, 2005

Radio News®

Broadcasters were well prepared
for Hurricane Katrina

Dealing with a hurricane is nothing new for New Orleans and broadcasters swung into action as Katrina came ashore as the strongest storm to hit the city in many decades. In this case, studios in the heart of the city were right in the hardest hit areas. Entercom VP/Engineering
Marty Hadfield gave us a run-down of what damage he knows of so far at Entercom's six stations in New Orleans. The main studios building downtown at the Hyatt Regency has been breached (studio and office windows blown out), but staffers remain in the structure's more protected core. 50,000 watt WWL went off yesterday morning, after simulcasting hurricane info to all six Big Easy Entercom stations. The company's FMs continued coverage, but have been on and off the air intermittently. As soon as the storm hit, the NAB and Red Cross asked stations across the nation to help with relief efforts. Radio PSAs can be downloaded from and TV stations can get a free overnight dub by contacting Sarah Roberts at [email protected]. "We salute local broadcasters along the Gulf Coast for their tremendous coverage in recent days tracking Hurricane Katrina and serving as a lifeline for citizens in need. Now as attention turns to the clean-up effort, we urge radio and TV stations to carry these timely Red Cross PSAs to help our citizens who were victims of the hurricane," said NAB President & CEO Eddie Fritts. RBR/TVBR was able to watch the live video streams of WWL-TV (Ch. 4, CBS) and WDSU-TV (Ch. 6, NBC), both of which had to use out of town studios to anchor part of their coverage. WWL-TV also reported that it was off the air from time to time, but kept delivering information via the Internet.
| More Details |

RBR observation: From what we could see and hear, local broadcasters did a terrific job of providing useful information to their local audience. Staffers pitched in and keep emergency information flowing, despite difficult conditions. But then, that's only what broadcasters are supposed to do - - and have been doing for many decades.

Emmis Honolulu TVs hit with EEO fine
For the first time since putting together a new EEO regimen, the FCC has issued a fine to a station licensee for failing to adhere to it. The stations are CBS KGMB-TV and Fox/UPN KHON-TV, both Emmis stations in Honolulu. They were among the latest random audit - - the FCC checks out 5% of all licensees annually. They had 51 vacancies over two years, and minority recruitment procedures were not used for 11, or 22% of them. Further, the station also failed to document the total number of candidates interviewed, and was cited by the FCC for not discovering the deficiencies for some 18 months. The fine was set at 18K. Attorney
David Oxenford of Pillsbury Winthrop Shaw Pittman LLP warned, "This decision demonstrates that the FCC views it's EEO obligations seriously, and should serve to alert stations to their need to keep accurate and complete EEO records, as another audit could be conducted at any time." A spokesperson for Emmis said, "We take all of our FCC obligations seriously. Through an internal audit, Emmis became aware of this situation. Once we realized the problem, Emmis took immediate steps to correct the situation, including better training of our hiring managers." The stations are on the trading block as Emmis is midway through selling off its TV group.

Market re-ranking won't affect
LPM roll-out; what about PPM?
Detroit may no longer be a top 10 TV market (8/26/05 RBR #168), but it's still getting Local People Meters (LPM) come January. Nielsen Media Research spokeswoman Karen Gyimesi tells RBR/TVBR that Houston's move into the top 10, displacing Motown, won't change the plan to complete the roll-out of LPM in 10 markets by adding Detroit and Dallas-Ft. Forth in January 2006 and Atlanta in June. "We're just going forward, for now, with the 10 markets that we had previously announced. We'll have to have talks with our clients about their needs," Gyimesi said. But she noted that Nielsen would have to have some level of support from clients to bring LPM to additional markets.

RBR observation: We're sure that Houston's move into the Nielsen top 10 didn't go unnoticed at Arbitron, which is in the midst of testing its Portable People Meters (PPM) there, even though Nielsen passed on participating. Arbitron has made no secret of its desire to follow the 2005 test with real ratings in Houston in 2006 as the first market to make PPM its ratings currency for radio - - and for TV and cable as well if Nielsen signs on for a joint venture. Nielsen's TV clients in Houston will now have to decide whether they want to join their top 10 brethren (plus #11 Detroit) in the LPM camp, or push for PPM. No doubt the ad buyers will be pressuring them to do one or the other, rather than sticking with the current meter/diary methodology.

Cox Radio sets 100M stock buyback
The latest broadcaster to declare that Wall Street is undervaluing its stock is Cox Radio, whose board of directors has authorized a 100 million bucks stock buyback. "Cox Radio's strong free cash flow generation has allowed us to de-lever and strengthen our balance sheet considerably over the last several years. This share repurchase program provides us with flexibility in the use of our free cash flow and an attractive vehicle for enhancing shareholder value," said CEO
Bob Neil.

FEC banking on en banc rehearing of BCRA
The primary forces behind the Bipartisan Campaign Reform Act have not been happy with the interpretation given their handiwork by the Federal Election Commission.
Christopher Shays (R-CT) and Marty Meehan (D-MA) sued to tighten the rules and won at the US Court of Appeals for the District of Columbia Circuit, before a three-judge panel. Now, FEC wants the full roster of judges to reconsider before it considers a SCOTUS appeal. Explained the FEC, "In deciding to request a rehearing by all the judges of the Appeals Court, the FEC was concerned that the earlier ruling introduces significant instability in the political process. The ruling effectively permits candidates for federal office to seek judicial review of any Commission regulation, even if the rules have not yet had any impact on the candidate or other regulated entities. Moreover, no evidence has been presented that the FEC rules in question have led to abuses, and in past decisions the D.C. Circuit has held that agencies are entitled to substantial deference in these circumstances. This deference is especially important when the rules in question touch on basic First Amendment rights of free speech and association."

RBR observation: A lot of critics, including Shays' and Meehan's Senate counterparts John McCain (R-AZ) and Russ Feingold (D-WI) were extremely disappointed in the FEC's handling of BCRA last year, particularly when it came to 527 groups. FEC, however, was probably correct in letting them go, saying that by the time they went through the usual cycle of comment, reply and challenge, it would be too late to get anything done for the 2004 election. All of which may not matter in the least. The cynical viewpoint of campaign finance reform is that the money will find its way into the system no matter what they do in Washington, a viewpoint which has yet to be proven wrong.

More names in NAB derby
After word leaked out that former Congressman/actor
Fred Grandy was in the running for President and CEO of the NAB (8/29/05 TVBR #169), the grapevine started shaking out more names. Rumors and reports cite David Rehr, pictured, currently President of the National Beer Wholesalers Association, as a contender, along with Disney's chief DC lobbyist Mitch Rose, who had been mentioned as a candidate almost from the day that Eddie Fritts announced his retirement plans.


Infinity to podcast, stream content
from Advertising Week 2005

Infinity Broadcasting announced that it will serve as the exclusive provider of streamed and on-demand audio content of Advertising Week 2005 allowing individuals not in attendance to hear broadcasts of select keynotes and panels. The content will be available for real time listening or download at beginning 9/26. Infinity will present a four-part series, "Infinity Innovators," as part of Ad Week, featuring groundbreaking thinkers whose ideas and influence have changed otherwise established industries.
Bob Greenberg, Chairman, CEO and Chief Creative Officer of R/GA has been confirmed for Tuesday, 9/27, 2005 at 9 AM. David Verklin, CEO of Carat Americas, will speak on Wednesday, 9/28, 2005 at 9 AM, Seth Godin, author of seven books, including the recently released All Marketers Are Liars, will speak on Thursday, 9/29 at 9 AM, and political consultant Joe Trippi will speak on Friday, 9/30 at 9 AM. The Series will be held at the Time Warner Center Screening Room.

Sony planning 140 million effort
for HDTV sets

Sony prepping for its biggest campaign for televisions in a decade: a 140 million effort to promote its HDTV sets in the US. At the center of the campaign is a rebranding of its entire liquid-crystal display line. The company plans to dump its longstanding "Wega" moniker for LCDs, which execs deemed "too old fashioned" and too closely tied to tube televisions. Its new LCD sets will be sold under the name Bravia, reported The Wall Street Journal. Bagby & Co. Chicago is handling creative. So far, there have been only a few print ads in gadget-enthusiast magazines - - for Sony's new Grand Wega rear-projection models and a big Bravia sign at Yankee Stadium. The first Sony Bravia TVs themselves won't be on view in the U.S. until the second week of September, when Sony is planning to unveil the sets, and their prices, at a major home-theater trade show in Indiana. The print and TV ad will ramp up when those sets-as well as a new type of Grand Wega rear-projection TV go on sale in the U.S. over the next few months. Sony is also planning to promote its HDTV models by setting up special tents housing its products at 1,000 retail stores, and by sponsoring HD broadcasts of Nascar and NFL events.

Beneficial launching national
TV, radio, print campaign

Beneficial Holdings announce it will start launching regional and national TV, radio, and print ads starting in September. The initial effort will include a mix of :30 and :60 second TV and radio spots, along with print in newspapers and magazines. Products that will be featured in these ads include WillpowerRX, EnjoyRX, EnduranceRX, and BedtimeRX. Beneficial Holdings is a nutraceutical company based in Salt Lake City that has developed several unique lines of dietary supplements marketed under the name of Beneficial Health Systems.

Media Business Report
Lexus, Zenith Media sign
with Nielsen Sports for US Open

Nielsen Sports announced that Lexus and its media agency Zenith Media signed on to receive Sponsorship Scorecard data for the 2005 US Open Tennis tournament. Sponsorship Scorecard is the first service to provide both a ratings currency and verification service for sponsored placed media in all televised sporting events. "Zenith is always looking for innovative ways to measure the effectiveness of our clients' marketing activities," said
Jon Cogan, Zenith Media, associate media director, strategic resources. "The Nielsen Sponsorship Scorecard service will be a useful tool that will help us quantify the impact of Lexus' investment in the US Open" Lexus is the "Official Vehicle of the US Open" and "Presenting Sponsor of Men's Singles Championship" for the 2005 tournament. Lexus will award an all-new 2006 Lexus GS 430 luxury performance sedan to the men's singles winner at the US Open, the first time such a prize will be awarded to a men's winner. Other on-site Lexus visibility will include net post signage for all men's single matches in Arthur Ashe Stadium, Louis Armstrong Stadium and the Grandstand. In 2004, a cumulative audience of more than 56 million viewers tuned into to live coverage of the 2004 US Open Tennis on CBS and USA Network combined.

Media Markets & MoneyTM
Sunburst bursts back into radio
After cashing out for around 200 million bucks at the turn of the century, John borders and Don Turner have reactivated Sunburst Media and are making their first buy in the Phoenix market. Broker Tom Gammon of Americom says they're paying his clients, Chris Devine and Bruce Buzil of 3 Point Media/Prescott Valley LLC, 26 million bucks for KKLD-FM Prescott Valley, AZ, which recently got FCC approval of an upgrade which will move it into the Phoenix market. But while the deal has been signed, and another is due to be announced soon, Turner says the new Sunburst is still recruiting financial partners. "We will be spending the fall of 2005 evaluating our various options for debt and equity partners for this transaction. Given the attractiveness of the Phoenix market, which continues to grow in both population and radio revenues, I am certain that we will be entertaining multiple offers from co-investors for this project. The fall NAB convention will be an excellent place to test that theory," he said.

MainQuad folds into Main Line
Dan Savadove is moving quickly to become a group owner. His first act with his brand new Main Line Broadcasting LLC was a move into Hagerstown MD-Chambersburg-Waynesboro PA, where he picked up a five-station cluster from Dame Broadcasting for 22.5M. Now he's heading south into Richmond with a 25M dollar deal for a quartet of FM stations. According to brokers Eddie Esserman and George Reed of Media Services Group, the primary seller is Dan Berman's MainQuad Communications, which will part with WARV-FM, WCUL-FM and WBBT-FM. Also included is Richmond Broadcasting's WJZV-FM, which MainQuad has been selling time for under terms of a JSA. Savadove indicated Richmond is just the latest move for his group. "Main Line is poised to continue to grow," he said, "and we anticipate adding additional markets this year."

Weston moves west into Roswell
Gregg Weston's 1 Chronicles 14 has recently entered the radio business in a pair of small-town Texas markets. Now its adding more of the same in New Mexico - - picking up KBIM AM & FM Roswell from King Broadcasting Company. According to broker Jim Hoffman of Explorer Communications, the price for the News/Talk and AC combo is 1.8M. In the southeast quadrant of the state, Roswell is unrated for radio, and is part of the Albuquerque-Santa Fe DMA for television purposes.

Clifton nails backing for new group
ProActive Communications, headed by veteran broadcaster
Jerry Clifton, has already filed for its first station purchase and has now announced completion of 50 million in first round station acquisition funding, so Clifton is on the hunt. Acquisition #1 is a 2M deal to buy KMJY-FM Spokane, WA (8/17/05 RBR #161). ProActive has retained Brett Miller of MCH Enterprises to assist it in pursuing acquisitions. Along with Clifton, ProActive is being managed by COO Greg Mack, who says other buys are in the works, with a company preference for distressed and turnaround situations in markets 1-150.

Mo' money for Cherry Creek
Fast-growing Cheery Creek Broadcasting has been refilling its coffers. GE Commercial Finance Global Media & Communications announced that it provided a 15 million bucks chunk of a new credit facility for Cherry Creek, along with serving as administrative agent for a six million facility for Long Island Radio, a subsidiary of Cherry Creek. Both are backed by Arlington Capital Partners. Cherry Creek owns 32 stations in 11 western markets and Long Island Radio owns four stations on, as you would expect, Long Island, NY. "Cherry Creek has an established management team with
Joe Schwartz as CEO. Further, Long Island Radio chairman Peter Ottmar is a recognized industry leader and is one of our long-time customers," said GE's Richard Varalla, Sr. VP of Media Origination.

Washington Beat
Pat Robertson - - miscreant?
"If Robertson himself were a judge (or prosecutor) reading this statute - - based on my reading of his book about how judges and justice should interpret the law - - he would be in a heap of trouble." These are the words of ex-Richard Nixon advisor and current "FindLaw's Legal Commentary" correspondent John Dean. The Title 18 statute he refers to says, "Whoever willfully - - (1) ...threatens...a foreign official...[or] (2) attempts to...threaten...a foreign official...shall be fined under this titled or imprisoned not more than six months, or both." The reason Dean thinks CBN icon Pat Robertson would be in trouble is that he is an adamant strict constructionist who espouses following the law to the letter, which also happens to be, in Dean's estimation, the prevailing legal attitude at the Fourth Circuit Court, where Robertson would likely wind up should the case of his Hugo Chavez remarks ever go to trial. Dean cites other cases tried at that venue where convictions for talk which could have been written off as mere macho posturing were upheld. He also notes that the call for the assassination of Chavez by a man who reaches the faithful worldwide would probably have to be taken into consideration by Chavez and his security contingent. Dean thinks therefore it should hold in this case, where the threat just might have teeth. "Robertson has Christian soldiers everywhere,' he concluded. "Who knows what some misguided missionary might do?"

Strong demand for good stations
After a long period of little trading, two big TV deals in one week have demonstrated that there's still great demand for cash-flowing properties. The multiples for these deals are impressive - - and good news for every one else in TV. First, Emmis sold nine of its 16 stations for 681 million, which worked out to about 12.5 times cash flow for the past fiscal year, or roughly 14 times what's projected for the current year. With eight of its 14 stations in markets 100+ (only one of the Emmis stations sold so far was 100+), Liberty Corporation brought a lower multiple. The company's SEC filings indicate that it had 91.9 million in cash flow for 2004 (on 21! 9M in revenues, including nearly 15M from its cable ad sales operation), working out to a 10.7 multiple, which likely would be more like 12 in this non-election year.

TVBR observation: Both private money (Raycom) and public (the three Emmis buyers) are aggressively chasing TV deals, so that's good news for the market. We'll soon get a gauge for radio as well, when Susquehanna gathers bids for its stations next month. This many not be a great year for advertising demand, but well-established local radio TV stations are still cash flow machines. We'll be watching closely to see where the multiples go on the two most valuable Emmis stations, WKCF-TV (Ch. 18, WB) Orlando and KOIN-TV (Ch. 6, CBS) Portland, OR. If they bring big premiums, it could signal big prices ahead for the Susquehanna Radio stations in San Francisco, Dallas-Ft. Worth, Houston and Atlanta.

210K WDRF-AM Woodruff SC from Wayne Brown to BJL Broadcasting (Betty Joyce Lewis). Cash. [File date 7/20/05.]

150K KWDF-AM Alexandria LA (Ball LA) from Educational Media Foundation to Opus Broadcasting Alexandria LLC (Richard Linhart, Jim Shea et al). 15K escrow, balance in cash at closing. Superduopoly with KBKK-FM, KLAA-FM & KEZP-FM. Seller retains KLXA-FM. [File date 7/20/05.]

Stock Talk
Weakened Katrina strengthens stocks
Oil prices pulled back from record highs as it became clear that damage from Hurricane Katrina would not be as bad as had been feared. The Dow Industrials rose 66 points, or 0.6%, to 10,463.

Radio stocks also rallied a bit. The Radio Index rose 2.516, or 1.2%, to 206.090. Saga had the best day, rising 3.9%. Regent gained 2.4%.

Radio Stocks

Here's how stocks fared on Monday

Company Symbol Close Change Company Symbol Close Change













Journal Comm.




Citadel CDL
13.47 unch

Radio One, Cl. A




Clear Channel




Radio One, Cl. D




Cox Radio












Saga Commun.








Salem Comm.








Sirius Sat. Radio








Spanish Bcg.
















Viacom, Cl. A








Viacom, Cl. B








Westwood One








XM Sat. Radio




International Bcg.










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Radio Media Moves

Patchen upped
at Arbitron
Veteran researcher Bob Patchen, who's been at Arbitron since 1986 and a VP since 1998, has been named to the newly created post of Chief Research Officer. He's now responsible for improving the performance of the radio diary used in the company's current ratings services; managing the research strategies for deploying the Portable People Meter (PPM) as a media and marketing research tool; and identifying and testing additional alternatives to current survey techniques.

MacLeash gets
AAA leash
Lauren MacLeash has been named National Adult Album Alternative (AAA) Liaison/Director for Clear Channel Radio. She will continue to serve as PD of KTCZ-FM Minneapolis-St. Paul.

ABCRN names
Joesten AE

ABC Radio Networks announced the appointment of
Blanche Joesten as an Account Executive in its New York City offices. Joesten was previously an Account Manager at Radio Disney for over two years, holding various accounts, including P&G, Nestle, and General Mills. Before joining Radio Disney, Joesten worked in the New York Hispanic radio market for Big City, Spanish Broadcasting System and Hispanic Broadcasting Corporation.

Stations for Sale

Suburban NYC AM
Good population coverage. Comes with studio/transmitter site. Fulltime station w. low night power, upgrade possible. 1.6M. 781-848-4201
[email protected]

More News Headlines

CMA names
new Country Music
Hall of Famers
The Country Music Association announced Alabama, legendary singer/musician/television host Glen Campbell and pioneering Grand Ole Opry star DeFord Bailey will become the newest members of the coveted Country Music Hall of Fame. Formal induction for the artists will take place during "The 39th Annual CMA Awards," which will be broadcast live on CBS 11/15 (8:00-11:00 PM/EST) from Madison Square Garden. Bailey will be inducted in the "Career Achieved National Prominence Prior to World War II" category; Campbell will be inducted in the "Career Achieved National Prominence Between World War II and 1975" category; and Alabama will be the first artist inducted in the new "Career Achieved National Prominence Between 1975 and the Present" category created earlier this year.

Klotz Digital taps HHB for Canadian sales
Klotz Digital Audio Systems recently appointed HHB Communications, Toronto, as its exclusive distributor in Canada. Headquartered in London, HHB founded its Canadian subsidiary in 1997. Effective immediately, HHB will be selling Klotz Digital's broadcast product range including the VADIS product family and the new AEON on-air console.

NAB Daytime Planner

The following brokers will be attending the NAB. Call or email to make your appointment in advance.

American Media Services,
Todd Fowler, David Reeder,
843-972-2200, Marriott,
[email protected], [email protected]

Clifton Gardiner & Company,
Cliff Gardiner, 303-758-6900,
Ritz-Carlton Hotel,
[email protected]

Force Communications,
Hal Gore, John Laurer, Stan Raymond,
770-329-2234, Hilton Garden Inn, [email protected]

Frank Boyle & Co.,
Frank Boyle,
203-969-2020, Marriott Courtyard, [email protected]

Gordon Rice Associates,
Gordon Rice, 843-884-3590,
Marriott Downtown, [email protected]

Henson Media, Inc.
Ed Henson,
502-589-0060, Loews Hotel, [email protected]

John Pierce & Company LLC,
John Pierce, Cell 859-512-3015,
Jamie Rasnick, Cell 513-252-1186,
859-647-0101 Hilton Garden Inn,

Kozacko Media Services,
Dick Kozacko, Cell 607-738-1219,
George Kimble, 607-733-7138,
Marriott, [email protected]

MCH Enterprises, Inc.,
Brett Miller, Cell 805-680-2265,
805-237-0952, Marriott Courtyard,
[email protected]

Patrick Communications,
Larry Patrick, Greg Guy,
410-740-0250, Marriott, [email protected], [email protected]

Schutz & Company,
Bill Schutz, Cell 757-880-9251,
757-258-8740, Loews Hotel, [email protected]

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

RBR Radar 2005
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

2005 the roll of the Dice;
Tracking of a Soft Year
Weak advertiser demand has kept a lid on radio revenue growth this year. And there's not much reason to think the rest of 2005 is going to be much better. Forecasts that seemed conservative six months ago are now looking overly optimistic. Universal McCann's Bob Coen started the year with a prediction that radio revenues would rise around 5% this year. He cut that aggressive view back to 3.5% last month for local radio, but held onto the 5% for network and national spot combined. Most Wall Street forecasters, though, are expecting much less. RBR observation: The bar is now set pretty low, but this is going to be one year when just about everyone can say that they outperformed the industry average - - and not be lying. That average is going to be held down by the giant of giants, Clear Channel, which is sticking to its Less is More plan and taking a big hit this year to set the stage for future growth. In their quarterly conference calls, group heads have been saying that each month out looks progressively better than the one before, so things are going in the right direction. It's just going to be a long, tough climb. The main key is focusing on being local with your content and sell local. RBR's advice - set your in-house tracking chart and then compare when we produce the overall national forecast. Break your in-house into local, national spot, network and other categories. This will become your road map for the balance of the year and get you pointed in the right direction for 2006. 08/29/05 RBR #169

Market Manager
To lead in Montgomery, Alabama our new Hallelujah 104 and our station group to new levels of success. Our three Urban stations now dominate the market and need this keep person to be community involved and provide leadership to a hungry sales staff. See our qualifications and if you have them you are encourage to joint our team at Clear Channel in Montgomery. In confidence contact us. See Radio Careers

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