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Volume 22, Issue 177, Jim Carnegie, Editor & Publisher
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Friday Morning September 9th, 2005
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Radio News®
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 ABCRN to produce,
distribute Jack-FM format
Jack-FM is already in several major US markets - - including Infinity stations in New York, LA and Chicago, among other markets. Now it's going to be rolling out in smaller markets. ABC Radio Networks has struck an exclusive agreement with SparkNet Communications to develop and market the Jack-FM format for national distribution beginning 10/1. Jack-FM format is described as the fastest-growing format in North America and currently airs on 21 stations. ABCRN will have exclusive rights to create, market, and sell a fully produced and locally integrated broadcast of Jack-FM programming to stations across the country, focusing on markets 41+. Formed in July 2005 by Vancouver-based Bohn & Associates Media and Nashville-based Wall Media, SparkNet Communications is the exclusive US licensor and owner of Jack-FM positioning, imaging and the website jack.fm.
RBR observation: Remember the Lawsuit by SparkNet Communications saying CCU hijacked Jack 08/22/05 RBR #164 and is going after Clear Channel, charging it with cybersquatting and trademark infringement. SparkNet says it is the creator and rights-holder for the new Jack FM Format, and it's heading into a San Diego federal court to challenge Clear Channel's alleged trespass. Now that ABCRN will have exclusive rights to Jack wonder if ABCRN will join in this legal battle. There will be new battles in the coming year dealing with cybersquatting and trademarks. One thing is noted, SparkNet has common law of the trademark of Jack on its side.
 Rupert's 650M bucks Web play
News Corporation announced a 650 million bucks deal to acquire IGN Entertainment, whose Internet sites primarily attract video game players. IGN and its network of sites will become part of News Corporation's Fox Interactive Media unit. "With the acquisition of IGN and its 28 million unique users, we have gone a long way toward achieving two of our key strategic objectives in our efforts to become a leading and profitable internet presence. First, we have significantly enhanced our online reach, strengthening our position as the fifth most trafficked presence on the web. We also become the fourth largest network in terms of monthly page impressions. And second, we have furthered our strategy to leverage the unique competencies the company enjoys with its news, sports, and entertainment assets to create a leading internet destination. By acquiring IGN and its compelling sites, we now have top entertainment sites to go along with FOXSports.com, as well as our myriad news sites, headlined by FOXNews.com," said News Corporation CEO Rupert Murdoch. News Corporation said it is in the process of closing its acquisitions of Intermix, with its MySpace.com web site, and college sports destination Scout Media, which will further enrich FOXSports.com. With the addition of IGN, Intermix and Scout Media to the existing Fox-branded sites, News Corporation's US web traffic will increase to nearly 70 million unique monthly users and more than 12 billion page impressions per month.
Payola bomb lobbed at Citadel
You knew this was coming. In what appears to be the first of what are likely to be a number of FCC complaints based on the payola investigation of New York Attorney General Eliot Spitzer (7/26/05 RBR #145), WBMW-FM New London, CT owner Red Wolf Broadcasting has expanded its long-running feud with Citadel Broadcasting (2/3/04 RBR #24) by accusing Citadel of payola violations at 13 specific stations. The complaint filed by Red Wolf's attorney, Arthur Belendiuk of Smithwick & Belendiuk, doesn't appear to present any new evidence, but rather tries to steer the FCC to specific citations in Spitzer's settlement with Sony BMG. It claims that rather than Sony BMG bribing any individual Citadel programmers, "Citadel centralized the bribe taking" by accepting promotional support from the record label - - such things as vacations, concert tickets, sporting event tickets, airfare, hotel expenses, gift certificates, gift cards, musical instruments and equipment, athletic equipment and computer equipment, CDs and DVDs - - all described by Red Wolf as "giveaways and bribes." The complaint calls for the FCC to hold a hearing on Citadel's fitness to be a licensee. At the very least, it insists, Citadel should be required to account for every penny it ever received from a record label and pay those "ill-gotten gains" into the US Treasury.
RBR observation: Just because Eliot Spitzer says something is payola doesn't make it so. As we've noted previously, the New York AG (who's running hard for Governor and hunting for as much publicity as possible) apparently dug up some real payola in his investigation, but he also threw in a lot of stuff that doesn't appear to violate the federal payola statute - - an actual law that the FCC has to deal with - - and only by Spitzer's as-yet-untested theory violates some New York business law that doesn't specifically pertain to radio payola at all. Sony BMG copped a plea and paid a 10 million bucks fine to get off the hook, which doesn't amount to more than a traffic ticket for a company of that size. But other record labels appear to be standing up to Spitzer's bullying and haven't agreed to similar settlements. The FCC already has a copy of Spitzer's findings and we doubt that they need any instructions on how to read them. Now the Commission will have to sort through all of the chaff and find the actual wheat - - real payola violations that need to be pursued. Meanwhile, we wouldn't get in any rush to draw up applications for any of those Citadel licenses that Red Wolf wants the FCC to revoke.
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An indecent case against consolidation
The new report which purports to link broadcast ownership consolidation and heightened levels of indecency programming rests its case on the fact that a small group consisting of some of the largest radio groups has accounted for almost all of the FCC's anti-indecency action. "Ownership Concentration and Indecency in Broadcasting: Is There a Link?" was penned by Jonathan Rintels of the Center for Creative Voices in Media (CCVM) and Professor Philip M. Napoli of Fordham University. It notes that four groups, Clear Channel, Viacom/Infinty, Entercom and Emmis, with 12% of the nation's radio stations between them and an estimated 48.6% audience share, accounted for 96% of all indecency fines from 2000 to 2003. All other radio owners received a grand total of four fines. "Indecency on the airwaves and consolidation of station and program ownership are linked," said Rintels. "Our research suggests that increased indecency is an unintended consequence of the deregulation of media ownership."
RBR observation: The operative word here is "suggests." The executive summary of the report concludes with this line: "These results do not prove a causal link between ownership concentration and broadcast indecency. Additional research, accounting for the broad array of factors that may influence the likelihood of a station receiving an indecency violation, is necessary." Here's a factor, that we mentioned yesterday - - the factor of watchdog groups that mount effective and well-documented complaint campaigns which were beyond the capability of average citizens a few short years ago. And here's a question: How come radio continues to bear the brunt of the FCC's wrath while TV, time after time, gets off the hook?
 The return of La Camera
Less than three months after retiring from more than three decades as President and GM of Hearst-Argyle's WCVB-TV Boston, Paul La Camera is back in broadcasting and learning a new medium - - radio. He's been recruited to be General Manager of Boston University-owned WBUR-FM. Search committee chairman Peter Fiedler, a BU Assistant VP, was quoted in the Boston Globe as saying of La Camera: "He's a visionary who can take WBUR forward, and he can raise money." The top job at the public radio station had been vacant since October 2004, when Jane Christo resigned as GM amid allegations of mismanagement.
FCC by the numbers for those in the Katrina zone
The FCC is continuing its effort to stay on top of the communications situation in the wake of Hurricane Katrina. To that end, it has set up special phone lines for broadcasters in need of expedited government assistance in their efforts to remain on the air, or get back on the air. From 9:00 AM-5:00 PM eastern, radio and television stations can reach the Media Bureau at (202) 418-2180 or at [email protected]. Off hours, the FCC Communications and Crisis Management Center is available 24/7, at (202) 418-1122. Complete information on the FCC's Katrina initiatives is available on the front page of fcc.gov in a box called "Hurricane Katrina Emergency Information." The box can be accessed directly at fcc.gov/cgb/katrina.
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Adbiz©
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 Fidelity taps McCartney
Fidelity Investments said Paul McCartney will be featured as part of a national campaign. Fidelity also will co-sponsor McCartney's 11-week U.S. concert tour, which starts 9/16 in Miami. The ad takes viewers through events and accomplishments of the 63-year-old musician's life. Fidelity hired Arnold Worldwide to handle creative. "It is the first time he has given personal footage to an ad campaign," Fidelity spokesman Steve Austin told Bloomberg. The ad will debut today during the first half of the New England Patriots' football game against the Oakland Raiders on ABC.
Bassett Furniture launches
national TV, direct mail campaign
Bassett Furniture announced plans to promote its new West End Collection using national television advertising and direct mail. The West End commercials (30 seconds) will run throughout September on cable channels such as Style Network, E!, and HGTV. In addition, Bassett will be sending out nearly two million direct mail pieces. The company will also continue the same message on its website. Creative as handled by Bassett's Marketing Group in conjunction with Frederick/Swanston Atlanta.
 Unicast launches online video
campaign for Honda
Unicast announced Honda has chosen it to kick off an online campaign using multiple video ad formats. The campaign will take advantage of Unicast's newly-expanded publisher relationships that enable its Pre-Roll format to run across many of the highest-traffic websites. The deal establishes Unicast as Honda's premier provider of online advertising technology and service. "We chose Unicast for their best of breed technology and rich media execution," said Meridee Alter, SVP Media Director at Rubin Postaer and Associates, Honda's AOR. "We could have done one-off campaigns with dozens of sites, but Unicast handles all the production, encoding and reporting, and we have successfully worked with them since they began offering superior video advertising solutions in 2003." The list of sites relying on Unicast to deliver Pre-Roll video advertising includes About.com, ARTISTdirect, CBS SportsLine, Discovery, Forbes.com, iVillage, NBC.com, NYTimes.com, TheStreet.com, and Weather.com.
Ford reshuffles top management
Ford announced a management shuffle, including the appointment of Mark Fields to head North American ops. Ford said Fields, currently EVP in charge of Ford of Europe and Premier Automotive Group, will become EVP in charge of the Americas. He will succeed Greg Smith, who will become a Vice Chairman, overseeing corporate staffs. Fields will report to Ford President/COO Jim Padilla. Mark Schulz, EVP in charge of Asia-Pacific, Africa and Mazda, will become EVP/President of International Operations, reporting to Padilla. Schulz will have responsibility for all regions and brands based outside the Americas, including Asia, Europe, the Premier Automotive Group and Mazda, Ford said in a statement.
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| Media Business Report |
IPods coming in cars
Apple has outlined plans to expand its iPod music players into cars, raising some concerns that the dominant digital music company could sap growing demand for satellite radio. Apple, which previously joined forces with BMW, said it has teamed with Acura, Audi, Honda and Volkswagen to integrate iPod products into their car stereos for 2006s. Apple expects more than 5 million vehicles will ship with iPod support in the US in 2006. Apple also laid out plans that would allow users to more easily control their iPods. Kits, estimated from 150 to 400 dollars, would require professional installation and connect iPods through docking ports in cars.
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| Media Markets & MoneyTM |
Noncom moves in as Bravo ends Mission mission
KIRT-AM is exiting the ranks of commercially-driven radio stations. It's heading for the noncommercial programming of Le Iglesia del Pueblo Inc. in a stock deal valued at 1.3M. The station serves the McAllen-Brownsville market from its perch in Mission TX. The seller is Bravo Broadcasting Company, owned by Edward and Maria Teresa Gomez. Reverend Juan de la Garza is president of the buyer.
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| Washington Beat |
 AM Auction 84:
FCC resolves to extend resolution period
The repercussions and ripples of Hurricane Katrina continue to fan out. The latest piece of government work to be affected has to do with AM Auction 84. The deadline for working out mutually acceptable settlements for mutually exclusive applications has been changed. The settlement window was to expire next Friday, 9/16/05. The FCC notes that settlements, whether by means of negotiation or engineering modification, have been rendered either difficult or impossible by the storm, and as such is keeping the window open for about another month and a half. The new deadline is 10/31/05. Also, the FCC has been collecting commentary on its Second Further Notice of Proposed Rulemaking on The Commission's Cable Horizontal and Vertical Ownership Limits, with comments due 8/8/05 and reply comments due 9/9/05. Media Access Project has requested more time to file the latter, since it's tied up with its own Katrina-related work - - the deployment of community wireless and LPFM service in the Gulf area. FCC agreed to extend the reply period until 9/23/05.
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| Programming |
 "Air America Syndication" launches Thom Hartmann
Air America Radio has formed Air America Syndication, a separate division designed to offer additional programming and services to both Progressive Talk and other talk/music formats. In its first move, Air America Syndication will distribute the nationally-syndicated, "The Thom Hartmann Program," which is hosted by radio veteran and author Thom Hartmann and will expand its weekend network line-up of progressive talk beginning on Sunday, Sept. 11, at 10 a.m. EDT. Terrestrial network advertising sales will be handled by Jones/Mediamerica as part of Air America's current representation agreement. "The Thom Hartmann Show" will air weekdays from noon - 3 p.m. EDT on the Air America Radio Syndicate and also be carried on Sundays from 10 a.m. - 1 p.m. ET on WLIB-AM NY. Hartmann's show has been on terrestrial radio nationwide and on Sirius Satellite Radio for over two years.
Sirius to launch new channels
Sirius announced it will launch several new channels on 9/29 that will be reflected in a new channel lineup effective on that date. These include new music formats as well as talk/entertainment channels. The new channel lineup will include Howard Stern's new channels 100 and 101. Stern is expected to start on Sirius in January and these new channels will pave the way for that arrival. Another addition to the lineup is Martha Stewart Living Radio, which will be assigned channel 112.
| See Sirius' new music channels here |
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| Ratings & Research |
Arbitron begins new advisory council elections
Arbitron has begun the election process for its reworked Arbitron Radio Advisory Council (ARAC), which now has automatic seats for the five largest groups, Clear Channel, Infinity, Cox, Entercom and ABC Radio (8/22/05 RBR #164). Certification forms have been sent to radio clients, which is the first step in the election process for three format/market size representatives whose three-year terms begin January 1, 2006. The seats up for election are: Markets 1-50; Smaller Market Condensed; and Black/Urban - - Top 100 Markets. Arbitron subscribers who hold the title of General Manager or higher, and are involved in the daily operation of a station or group which meet the criteria in terms of format and/or market size, are eligible to run. Radio executives who qualify and are interested in standing for election should return the completed Certification Form to Ernst & Young LLP by September 23, 2005. All qualifying names will be placed on the Election Ballot, which will be sent to client radio stations in the three categories on October 11, 2005. However, employees of the big five are not eligible to run for an elected seat.
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| TVBR TV News |
 TVB sees 2006 growth of 6.1-7.9%
With a federal election year on the horizon, TVB President Chris Rohrs forecast Thursday that TV stations will see revenues rise 6.1-7.9% in 2006, with national spot outpacing local. Having projected that the spot TV business would be flat in 2005 (9/9/04 TVBR #176), Rohrs now says the actual results won't even be that good, since the core business growth that was supposed to counteract the lack of political advertising didn't materialize. TVB is now expecting 2005 to finish down 5% for total spot TV. Looking at 2006, Rohrs says oil prices will certainly be one of the factors driving the business climate in 2006, since the price of oil affects the price of just about everything else that consumers use. The TVB chief is "cautiously optimistic" about the automotive sector - - TV's biggest advertising sector. He expects fuel-efficiency to be a new selling point and he says auto makers will have to market heavily because "the supply of cars exceeds demand for cars." And, of course, 2006 is an election year, with 36 governorships up for grabs, along with House and Senate races. "So political will be a monster market driver in 2006," Rohr's said. What about the impact of Hurricane Katrina? Rohrs says that remains a wild card. "Over the past 10 days broadcasters have demonstrated once again the matchless ability of television to tell a story, serve our communities, and indeed reshape the national agenda. The impact of the hurricane on the ad economy and the overall economy in 2006 remains an open question," he said. Here's the TVB forecast.
2006 TV revenue growth forecast
| Local Spot |
+2.9 to +5.1% |
| National Spot |
+10.5 to +11.7% |
| TOTAL SPOT |
+6.1 to +7.9% |
| Network |
+3.0 to +5.0% |
Syndication
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+2.5 to +4.0%
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Network Cable
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+4.0 to +6.0%
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Local Cable
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+6.0 to +8.0%
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Source: TVB (more at TVB.org)
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| Transactions |
70K FM CP Lezxington OH from Hellinger Foundation Inc. (Mark Hellinger) to St. Gabriel Radio Inc. (Chris Gabrelcik, Allen Wagner, Andy Ware). 10K escrow, balance in cash at closing. Buyer is noncommercial entity. CP is for Class A on 89.5 mHz with 230 w @ 190". [File date 7/29/05.]
35K KPJC-AM Paris TX from Paris Junior College (Pamela Anglin) to Larry Ryan d/b/a/ Eifel Tower Broadcasting. 5K escrow, balance in cash at closing. [File date 7/29/05.]
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| Stock Talk |
Things don't go better with Coke
Coca-Cola disappointed Wall Street with its earnings guidance and sent stock prices lower. The Dow Industrials dropped 38 points, or 0.4%, to 10,596.
Radio stocks were down nearly across the board. The Radio Index fell 2.294, or 1.1%, to 204.106. Regent had the worst day, falling 3%. Salem dropped 2.3%.
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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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42.07
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-0.51
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Jeff-Pilot
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JP
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49.71
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-0.51
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Beasley
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BBGI
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14.90
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-0.11
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Journal Comm.
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JRN
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15.91
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-0.09
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| Citadel |
CDL |
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13.01 |
-0.14 |
Radio One, Cl. A
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ROIA
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13.55
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-0.09
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Clear Channel
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CCU
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32.12
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-0.37
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Radio One, Cl. D
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ROIAK
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13.56
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-0.02
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Cox Radio
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CXR
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15.06
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-0.18
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Regent
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RGCI
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5.21
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-0.16
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Cumulus
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CMLS
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12.54
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-0.07
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Saga Commun.
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SGA
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14.09
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+0.04
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Disney
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DIS
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24.95
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-0.27
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Salem Comm.
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SALM
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18.68
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-0.43
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Emmis
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EMMS
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23.57
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-0.10
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Sirius Sat. Radio
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SIRI
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7.20
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+0.21
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| Entercom |
ETM
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31.92
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-0.39
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Spanish Bcg.
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SBSA
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7.33
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-0.13
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Entravision
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EVC
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7.77
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-0.16
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Univision
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UVN
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26.00
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-0.21
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Fisher
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FSCI
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48.30
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-0.70
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Viacom, Cl. A
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VIA
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34.36
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-0.10
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Gaylord
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GET
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47.80
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-0.21
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Viacom, Cl. B
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VIAb
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34.35
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-0.09
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Hearst-Argyle
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HTV
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25.45
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-0.27
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Westwood One
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WON
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20.66
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+0.04
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Interep
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IREP
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0.60
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unch
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XM Sat. Radio
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XMSR
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35.07
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-0.16
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International Bcg.
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IBCS
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0.01
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unch
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-
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-
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- |
-
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-
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Bounceback
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 We want to
hear from you.
This is your column, so send your comments to [email protected]
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Radio Media Moves
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Promotion in
Palm Springs
Entravision Communications announced that Ray Nieves has been promoted to General Manager of its Palm Springs, CA radio and television properties including KLOB-FM 94.7 Super Estrella, Univision affiliates KVER-CA (Ch. 4) and KVES-LP (Ch. 28), and TeleFutura affiliate KEVC-CA (Ch. 5). Nieves has been part of the sales team for the stations for seven years.
Fresno GM named
Angela Navarrete has been promoted to General Manager of Univision's two Fresno stations, KZOL-FM and KOND-FM. She had previously been the company's Driector of Sales in McAllen, TX.
New head for
Radio Free Asia
Libby Liu has been named President of Radio Free Asia, which broadcasts news and information in nine languages to Asian countries under an annual grant from the US government's Broadcasting Board of Governors. She succeeds RFA founder Richard Richter, who retired in July. Liu was previously VP for Administration and Finance.
Promotion at Beasley
Beasley Broadcast Group announced that Colleen Jackson has been upped to Program Director (from Assistant PD) at WMGV-FM Greenville, NC. She will continue to host mid-days as well.
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Stations for Sale
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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]
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NAB Daytime Planner
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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]
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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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RBR observation Close-Up First - Clear Channel preparing HD Radio multicast Consortium
See the attached PDF, the PowerPoint presentation does a good job of laying out the pros and cons of each possibility. While it may seem arrogant to some to propose that Clear Channel and Infinity manage a national partnership, don't forget that the two already supply lots of programming to everyone else in radio, and even to each other, via Westwood One and Premiere Radio Networks. But would an industry-wide coalition pass muster with the DOJ's antitrust watchdogs? That question is raised in the document and we strong suggest you view it and print it out and read it carefully. See you at NAB Philly as HD is the hot topic and will be the buzz of future planning. Publisher Note: Look for RBR Staffers and read RBR Epaper on our 42" Plasma Screen - Location: On the Right Side entrance to the NAB Radio Store. Can't miss it and must read it. RBR will be at NAB Philly.
09/07/05 RBR #175
Katrina's cost: Too soon to count
With no word yet on when people will even be able to return to New Orleans, broadcasters say they can't project when they'll resume normal business or what the financial impact will be. Hearst-Argyle Television withdrew its Q3 guidance to Wall Street, and Entercom followed suit. Hearst-Argyle CFO Harry Hawks said Hearst is withdrawing our previously issued earnings guidance for the quarter ended September 30, 2005. RBR observation: No one is even projecting when life will return to anything resembling normal in these hard-hit markets, so projecting losses at this point is pretty much impossible. The only thing you can say for certain is that they will be big. According to BIAfn VP Mark Fratrik, New Orleans was expected to have 110.8 million in TV revenues in 2005 and 73.3 million in radio revenues - - those projections, of course, made before Hurricane Katrina. Estimates for Biloxi-Gulfport had been 21.4 million for TV and 12.5 million for radio. It's too early to try to estimate the storm's impact.
09/08/05 RBR #176
Why Radio One consolidated
its rep contracts at Katz
The news broke here in an alert early yesterday morning - - Radio One has consolidated its national representation at Katz Radio Group, leaving Interep out in the cold. It wasn't too hard to see this coming. After months of debate within Radio One, the decision all 69 Radio One stations in 22 markets would be repped by Katz. RBR observation: The loss of Radio One is also a blow to Interep's reputation as the top rep firm for stations targeting African-Americans, dating back to its acquisition of HNWH, the rep firm which pioneered national representation of black stations. The problem now for Interep is dispelling the public perception that its clients are jumping ship.
09/07/05 RBR #175
US advertising grows
4.5% in first half
Total US ad spend for the first half of 2005 increased 4.5%, compared to the same period in 2004, to 70.5 billion. The 4.5% first half growth follows a first quarter increase of 4.4%, indicating that the advertising market is maintaining spending. The Media Dollar Chart tells the story.
09/07/05 RBR #175
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Hey Talk Radio
Sales Managers
Remember last week this was on the QT? It is now out and it is Clear Channel's KTLK-FM Minneapolis-St. Paul needing GSM with a proven track record of success to take a new Talk station to record heights. If you are a direct "Animal" with the savvy to manage transactional business then we want to hear from you.
See Radio Careers
Market Manager
Montgomery, Alabama with our new Hallelujah 104 and our 3 Urban stations dominating the market and need this key person to be community involved and provide leadership to a hungry sales staff. See our qualifications and if you have them you are encouraged to joint our Clear Channel team in Montgomery. In confidence contact us.
See Radio Careers
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©2005 Radio Business Report, Inc. All rights reserved.
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