Welcome to RBR's Daily Epaper
Volume 21, Issue 171, Jim Carnegie, Editor & Publisher
Wednesday Morning September 1st, 2004

Radio News ®

More outrage at Forbes from broadcasters
We're continuing to hear from radio broadcasters who are boiling mad over the cover story in Forbes magazine that depicts broadcasters as "bullies" who've used their Capitol Hill clout to erect unfair barriers to hold back competition from satellite radio operators. Quite the contrary, says Whitney Radio President Bill O'Shaughnessy, who says it's XM Satellite Radio that has "run rings" around the NAB in Washington.

RBR observation: If you haven't read the Forbes story, here are a couple of examples of the more questionable claims in the article. The first isn't just questionable, it's downright false. The article accuses broadcasters of fighting against the licensing of satellite radio companies, then getting regulators to impose restraints to protect terrestrial radio. "The FCC's license forbade free, advertiser-supported satellite stations, instead requiring firms to sign up paying subscribers," the article states. It's hard to blame the NAB for such a provision, since it doesn't exist. Both satellite radio companies have chosen subscription-based business models, but nothing requires them to do so. At another point, author Scott Woolley states that, "In 1995 lawmakers slapped down digital newcomers by passing a law backed by the NAB and the Recording Industry Association of America" - - referring to the law that required performance royalty payments by satellite, Internet and other new digital media, while exempting terrestrial broadcasters. That makes it sound like the NAB and RIAA were in cahoots in drafting the law. In fact, broadcasters vehemently opposed the RIAA proposal, but the NAB withdrew its objections after winning the exemption for its members, taking no position on whether other media should have to pay royalties that broadcasters had fought against for decades. | More... |

Limbaugh snares Bush interview
As Democrats sought to make political hay of President George Bush telling NBC's Matt Lauer of the war on terror, "I don't think you can win it," the Republican President used an appearance on the "Rush Limbaugh Show" to clarify his position. "This is not a conventional war. It is a different kind of war," Bush said. He went on to say that terrorism can't be completely eliminated, but that the US can "win" by battling back against the terrorists and spreading democracy around the world to make it more difficult for terrorists to find support.

Media giants focus of NYC protests
Activists in the Big Apple for the Republican National Convention have more on their plate than the four-day festival to renominate George W. Bush. Some, led by broadcast watchdog Fairness and Accuracy and Media, have made time to pay a visits to some of America's largest media companies. Today (9/1) is the day for the "March on the Media," which will be carried live on Pacifica's WBAI-FM. At 7:00 PM, protesters will meet in front of Viacom/CBS headquarters, move on to Time Life/CNN at 8:00 PM and wind up at News Corp./Fox at 9:00 PM. "For the past few years, the mainstream media have marched in lockstep with the Bush administration. Now it's time to march on the media," reads a flyer advertising the event. "The corporate news outlets have become lapdogs rather than watchdogs, and we come to challenge their domination of the public discourse." Groups participating in the event include Paper Tiger TV, Prometheus Radio Project (famous for its challenge to the FCC rules in the 3rd Circuit), Reclaim the Media, Media Super Villain and others.


New York streets mostly peaceful so far
News organizations prepared staffers for the worst, expecting that street demonstrations this week in New York during the Republican National Convention could turn violent. But so far there have been no major disruptions, despite the presence of many more protesters than were seen during the Democrat's confab in Boston. For one thing, the NYPD are credited with doing an amazing job of keeping protesters separated from credentialed GOP delegates - - not just outside Madison Square Garden, but at Manhattan hotels and other locations where Republicans have gathered for convention-related events. According to one NPR report we heard, the cops tricked protesters who'd planned to confront delegates outside special Broadway matinees by changing the curtain time. There have certainly been more arrests than in Boston, but those have mostly gone smoothly, as has processing at a special holding facility set up on a Hudson River pier. Nevertheless, reporters, camera crews and others aren't letting down their guard. According to Newsday, some news organizations have gone so far as to have back-up satellite newsrooms ready to go in case a terrorist attack forces a shutdown at Madison Square Garden. Many journalists have been equipped by their employers with emergency packs with such things as flashlights and "escape hoods," although many appear to be keeping them in their hotel rooms, rather than carrying them at all times. Some news organizations even hired military experts to provide employees with survival training, much like that given to journalists who covered the Iraq war. So far, though, such preparations have proven unnecessary.

Media orgs pool for polls
Knight Ridder and MSNBC are pooling resources with pollster Mason-Dixon to keep a finger on the pulse of likely voters in key swing states as the 2004 elections cycle toward an early November conclusion. The polls will follow the national political advertisements into key battleground states, and will be timed to gauge reaction to key campaign events, such as the conclusion of the Republican National Convention and debates. Florida, Michigan, Ohio, Pennsylvania and Missouri are on the short list of states on the polling map. Other battlegrounds will be included as well. Most observers identify the "battleground" as states decided by about 6% of less in the 2000 presidential election. 18 qualify under that definition. Others have been added as events warranted, mainly by Democratic candidate John Kerry in reaction to perceived gains in strength in places like North Carolina (home of his running mate John Edwards), Louisiana, Virginia, Colorado and Nevada.

In Noam man's land, consolidation is academic
Columbia University professor Eli Noam has been tackling the problem of media consolidation for some time now - - long enough to have a book on the topic almost ready for distribution. "Media, Ownership and Concentration in America" takes a statistics-based approach to the problem. The professor does more than just enter bytes onto his hard drive - - he offers nothing less than an alternative way to measure media consolidation. | More... |


Adbiz ©

Nielsen signs Zenith for new product placement service; Hamilton comments
Nielsen Media Research announced it has signed a multi-year agreement with ZenithOptimedia Group for its new product placement service "Place*Views." ZenithOptimedia is the first major media specialist to subscribe. Nielsen launched the service earlier this year. Place*Views, a web-based application, provides data on brand occurrences that appear on broadcast TV. Place*Views allows users to identify which brands are featured, what type of placement is being used, when and where the placement has occurred, and the audience size and demo composition for the program minute at the time of placement. Product placement data is currently available beginning 9/03 for the 2004 broadcast season. Users are able to search the database by brand, advertiser, product category, program, and/or network. RBR/TVBR asked Richard Hamilton, CEO, Zenith Optimedia Group/The Americas about the move: | More... |

Worldwide Partners media directors meet in Philly
Media directors from 25 of the 37 regional agencies that comprise the American component of Worldwide Partners recently met in Philadelphia to figure out ways of improving accountability from local electronic media-with a heavy emphasis on cable and radio. Worldwide Partners (www.worldwidepartners.com) is a global membership org of independent agencies that collectively represent more than 3.6 billion in annual revenues. TVB, CAB and RAB were invited to make presentations. We tried TVB's Chris Rohrs for any details, but haven't heard back yet. The central focus of the meeting was reportedly to improve follow-up on clients' concerns about ROI and how to do comparable post-buys for local cable and radio. Worldwide agency personnel are frustrated that the local market measurement tools they're seeking from those media aren't being developed quickly enough.


Media, Markets & Money tm

North East AM, with a ribbon
The broadcast operation of Mercyhurst College of Erie PA currently consists of a standalone FM station. However, it's about to get an AM sister, courtesy of William H. Hammond's Corry Communications. WEYZ-AM, licensed to North East PA, is being sold to the college in a deal valued at 110K dollars. Mercyhurst is going to pay a small portion of that - - 15K will be paid before the deal closes, and another 15K will be paid within a year of closing. The remainder - 80K - - will be a matter between Hammond and the tax man. He is presenting that portion of station value to the college as a gift. Mercyhurst already owns WMCE-FM.

To sell, or not to sell? Is that your question? Part 8
If you've thought of selling your radio or TV station(s), how do you know if now is the right time to sell? If you sat tight and missed out on consolidation - - and the big players in your market are already full up - - do you still have an opportunity to get a good price out of your station? The brokers tell us there's an art to selling at the right time and the right price. | More... |

Mortenson goes into fifth gear in Dallas
Broker John Pierce tells us that Mortenson Broadcasting has closed on its fifth AM station in Arbitron's #5 radio market, getting KRVA-AM from Entravision for 3.5M dollars. Mortenson provides the Metroplex with a variey of Religious programming in both English and Spanish. Pierce says to expect more of the same on KRVA.


Washington Beat

Veteran's veteran speaks out
against taping regime
The FCC's look at requiring stations to record and store program tapes has sparked a firestorm of protest from all corners of the industry. And we mean all corners - - we have a filing from a gentleman who is closing in on his 70th year as an active FCC licensee. Vern Kasper finds plenty to object to in the scheme, not the least of which is that fact that it effectively punishes every broadcaster in the USA, all for the actions of a tiny minority. Here are Kasper's thoughts on the matter, as sent to the FCC (and RBR). | More... |

Waive bye-bye
A deal for a Michigan AM station roughly between Lansing and Grand Rapids has been dismissed by the FCC. The $100K acquisition of WION-AM Ionia by Stafford Broadcasting would have formed a small cluster with two other Michigan radio stations, WSGC-AM Greenville MI and WSGC-FM Lakeview MI. But that's not all - - the deal required a rule waiver due to another of Stafford's holdings - - The Daily News, a Greenville-based newspaper. However, it wasn't necessarily the waiver requirement which caused the deal to be called off. According to the FCC, seller Agricultural Resource Group asked that the deal be terminated.


Programming

Premiere's loss is Westwood's gain?
Looks like Westwood One has its answer to Premiere's Delilah: Nary a day after Premiere Radio Networks announced it was dropping "Leeza Gibbon's Hollywood Confidential" (8/31 RBR Daily Epaper #170), Westwood One announced it is offering "Leeza at Night," a new daily, five-hour music program debuting 11/8 on Hot AC stations across the country, including 12 Infinity O&Os. The show will feature Gibbons' sharing her unique take on entertainment news and the trends shaping American culture today, as well as taking call-ins from listeners nationwide.

Big sports names aid
WEEI radiothon
Boston's top sports brass came together 8/27 at Fenway Park for the 3rd Annual WEEI Jimmy Fund Radiothon. Pictured (l-r) are Boston Celtics Executive Director of Basketball Operations Danny Ainge, New England Patriots Vice President of Player Operations Scott Pioli, Red Sox General Manager Theo Epstein and Boston Bruins General Manager Mike O'Connell. WEEI Sports Radio, together with the Red Sox and New England Sports Network, raised more than 1.5 million dollars during the annual event. Proceeds benefit the Dana Farber Cancer Institute. WEEI notes that some of the donors were also notable - - Seth Myers of Saturday Night Live donated 100,000 and New York Yankees Manager Joe Torre 25,000.

WPEN gets younger with Oldies
Greater Media's WPEN-AM Philadelphia is leaving the '40s to play music from the late '50s and early '60s under the new moniker "Oldies 950 WPEN." As the station tries to bring back memories of Philly's great AM Top 40 stations of the past, such as WFIL and WIBG, it will feature legendary local jocks, including Charlie Bennett, Jim Nettleton, Jerry Blavat and Kim Martin. "The Oldies format is a natural evolution for WPEN," said Station Manager Brett Beshore. "WPEN as an Adult Standard format has a loyal listening that bridges the Oldies format. Our goal would be to continue to satisfy the musical tastes of our current listeners and introduce this format to a whole new available audience that we believe is being underserved by Philadelphia radio."


Transactions

KCBU-TV Salt Lake City (Prove UT) from Gary M. Cocola Family Trust to Univision Television Group Inc.

KNWX-AM Seattle-Tacoma (Auburn-Federal Way WA) from Entercom to Bustos Media.

WTRI-AM Brunswick MD from JMK Communications Inc. to Tricaster Communications.

| More Details |


Stock Talk

A mixed day on Wall Street
With the Republican Convention in town and a holiday weekend coming up, trading is light this week, making for a directionless market. It looked like a negative report on consumer confidence from the Conference Board was going to make it a down day, but some bargain hunters jumped in late in the day and pushed the Dow Industrials to a gain of 51 points, or 0.5%, to 10,174. But the S&P 500 and Nasdaq Composite finished lower.

Radio stocks were also mixed. The Radio Index finished with a tiny loss of 0.032 to 233.490. Clear Channel hit a 52-week low, dropping 2%. Cox Radio was down 2.2%. But going the other way were Salem, up 3.6%, and Beasley, up 2.8%.


Radio Stocks

Here's how stocks fared on Tuesday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

38.76

+0.49

Jeff-Pilot

JP

47.90

+0.18

Beasley

BBGI

15.16

+0.41

Journal Comm.

JRN

16.79

-0.06

Citadel CDL
14.40 -0.10

Radio One, Cl. A

ROIA

15.66

-0.11

Clear Channel

CCU

33.51

-0.69

Radio One, Cl. D

ROIAK

15.60

-0.02

Cox Radio

CXR

16.81

-0.37

Regent

RGCI

5.76

+0.01

Cumulus

CMLS

15.10

-0.13

Saga Commun.

SGA

17.95

+0.02

Disney

DIS

22.45

+0.05

Salem Comm.

SALM

26.60

+0.92

Emmis

EMMS

19.25

-0.12

Sirius Sat. Radio

SIRI

2.32

-0.06

Entercom

ETM

37.70

-0.20

Spanish Bcg.

SBSA

8.76

+0.10

Entravision

EVC

8.10

-0.07

Univision

UVN

33.00

-0.24

Fisher

FSCI

48.30

-0.46

Viacom, Cl. A

VIA

33.86

-0.47

Gaylord

GET

29.04

-0.07

Viacom, Cl. B

VIAb

33.31

-0.44

Hearst-Argyle

HTV

24.25

-0.37

Westwood One

WON

22.44

-0.20

Interep

IREP

0.75

-0.05

XM Sat. Radio

XMSR

27.47

+0.07

International Bcg.

IBCS

0.02

unch

-

-

-

-

-


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Stations For Sale

10 Station Cluster
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Upped & Tapped

Tami Honesty
named LSM
Anita Genes, General Sales Manager of WGCI-FM, WVAZ-FM and WGRB-AM named Tami Honesty as Local Sales Manager of Clear Channel's Urban "Trombo." In 2001, Honesty joined ABC Radio Networks in Dallas, Texas as Brand Manager and quickly moved up the ladder to Marketing Director of The Doug Banks Show and other Urban brands.


More News Headlines

Competing Media

Analyst applauds
broad core growth
in TV revenues
It's not just political advertising that's fueling television's strong growth. After going over the Q2 figures reported by the TVBR, Wachovia Securities analyst Jim Boyle is telling investors that TV is enjoying growth over a broad core of its major advertisers. He likes Hearst-Argyle and Gray Television because they have lots of leading news stations - - and news leaders get the lion's share of political spending. | More... |




August Digital Magazine

Complimentary Report
No more Forward Pacing Reports.
We have the economic, political, and close up look at your 4th quarter of business
and what must be done to hit budget by year's end.

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tells it like it is on where he
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RBR Radar 2004
Click on these issues for Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Now, Forbes attack has
broadcasters riled
Barron's on Monday, see below, now Forbes paints terrestrial radio station owners as "Broadcast Bullies" holding back satellite radio via Capitol Hill muscle has some broadcasters fighting mad. President and CEO Eddie Fritts has accused the author of regurgitating "satellite radio industry propaganda."
RBR observation: It's one thing to criticize radio with factual information. You've certainly seen some strong words from this publication, such as Publisher Jim Carnegie's "Naples is calling" treatise. Barron's has a largely negative story on radio which, while painful to many in this business, was well researched. Not so the Forbes story and sidebar, which took at face value the claims of terrestrial radio's critics and seemed to devote no effort whatsoever to determining whether those claims were true.
08/31/04 RBR #170

Barron's digs at radio
Is a scathing attack on radio stocks as a place to invest. After noting the skyrocketing values that followed the 1996 deregulation of radio, the article notes that "the stocks came back to earth with a thud." RBR observation: Sound familiar? Then you've probably read Jim Carnegie's "Naples is Calling" Publisher's Perspective in May RBR Solutions Magazine, if not, here's your chance to read the infamous article that set the ball rolling. Check it out here. Clear Channel's "More is Less" campaign is a step in the right direction, but there are some deeper problems that the big groups aren't addressing. Unless local managers are given the tools and time to refocus on making their stations relate to their local listeners and creative people are encouraged to get into radio and experiment with new ideas, radio is going to continue to fade away into the dull, lifeless medium that critics accuse it of already having become. 08/30/04 RBR #169

McCain viewed as winner
in attack ad debate
Press accounts hailed Sen. John McCain (R-AZ) as the winner for persuading President George W. Bush (R) to join in efforts to shut down the 527s via the courts or legislation and Sen. John Kerry (D-MA) to withdraw one of his ads. TVBR observation: Give us a break! Why is McCain emerging as some sort of hero in this mess? He's the one who created it! Shame on Sen. McCain for creating this mess. Rather than claiming credit for trying to make Bush and Kerry play nice, he and Sen. Russ Feingold (D-WI) ought to have the cohones to admit that they screwed up big time a! nd sponsor new legislation to repeal their badly-flawed campaign finance law. 08/30/04 RBR #169

Clear Channel's "Less is More"
gets feedback
we've been hearing a bit more from folks in the industry - - again off the record, of course: "Quick observation on 'Less is More.' The sales managers and AEs aren't so worried about the spot count. What's scaring everyone is the limitation on 'promos.' Promos have become a euphemism for the 21st century version of the old Bonus Spot. They're a big part of schedules nowadays. 08/27/08 RBR #168

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


Dir. Affiliate Relations
Waitt Radio Networks seeks Leader to Manage Affiliate Sales Team plus handle a regional territory. GM experience required. Must relocate to Omaha, NE Office. Competitive compensation and benefits. Contact Rod Schmidt.

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