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Volume 23, Issue 177, Jim Carnegie, Editor & Publisher

Tuesday Morning September 12th, 2006

Radio News ®

Nielsen may enter
radio ratings competition
A few months after saying no-thanks to a Portable People Meter (PPM) joint venture with Arbitron, Nielsen Media Research confirms that it has been approached by the Next-Generation Electronics Ratings Evaluation Team about making a late entry in the radio ratings RFP competition. Nielsen Chief Information Officer Jack Loftus told RBR/TVBR that his company was approached by the Next-Gen group, not the other way around, so Nielsen is still assessing whether or not it is interesting in the radio competition, which would pit it against the existing entries of PPM from Arbitron and the Smart Cell Phone-based system from The Media Audit/Ipsos. "We haven't even seen the RFP yet," Loftus said. So, how interested is Nielsen? "We've agreed to look at it. That's all we've agreed to do," said Loftus. The Next-Gen group is also being tight-lipped. "As it relates to Nielsen and the RFP - I can confirm that the Evaluation Team is in discussions with Nielsen. But details of specific discussions with current or potential contenders are confidential," said Clear Channel Radio Senior Vice President/Research Jess Hanson, who is heading the Next-Gen team.

RBR observation: Since passing on a PPM joint venture, Nielsen has been working on its own passive meter options for measuring out-of-home TV viewing, which would be used in tandem with its set-top People Meters, currently used in 10 large markets (with more to come) and for its national audience sample. Nielsen sources say the company has been looking at an existing device and one it is developing in-house, reportedly based on Smart Cell Phones. Obviously, any audience measurement device based on either audio encoding or sound-matching (or both) can just as easily be used for radio as for TV. Nielsen provides diary-based radio ratings in several countries overseas, but has shied away from challenging Arbitron in the US radio marketplace after winning the battle for sole domination of US TV ratings.

New PPM to track non-encoding stations
Arbitron has moved to correct an obvious deficiency of the Portable People Meter (PPM) - its inability to produce any audience data for stations which refuse to encode their broadcasts. Arbitron announced yesterday that it is now field testing a PPM system which uses sound matching for non-encoding stations - a dual-function system much like that of the competing system by The Media Audit/Ipsos. While the main test panel in Houston is still using PPM devices that track only encoding stations, Arbitron said it has successfully downloaded software upgrades to current generations PPMs still held by 50 former panelists who are participating in the dual-function test. The software upgrade was delivered via home phone lines. Arbitron said it will now be testing to ensure that sound matching results are consistent with those already validated by encoded PPM data gathering. Arbitron should have no trouble finding non-encoding stations in Houston, since Cox Radio has steadfastly refused to have anything to do with the PPM test.

Jones Media Group buys TM Century
Three years after pulling its stock off the Nasdaq market to trade on the pink sheets (9/29/03 RBR #190), TM Century is being sold, lock, stock and barrel, to Jones Media Group for a total deal value of nearly 15 million bucks. Originally known primarily for its jingle packages, Dallas-based TM Century creates, produces and distributes music-based products for broadcast media use, with product lines that include music compilation libraries and services, production music, commercial jingles, radio and TV station imaging packages, morning show prep and comedy services along with numerous on-line imaging products. Jones Media Group syndicates radio programming and services, as well as selling ads for other syndicators. "We were looking for a partner to take TM Century to the next level and a partnership that would be a win-win-win, for our shareholders, our employees and our clients. With Jones, we got it all and then some. The Jones team gets it. They see the future of media more clearly, and more dynamically, than anyone else in the business. I haven't been this excited about going to work in a long time," said TM Century CEO David Graupner. He and other shareholders (over 70% of the stock is held by TM Century management) are to receive approximately 4.80 per share, depending on the exact number of shares at closing. When TM Century stopped SEC reporting in 2003, due to the expense associated with the then-new Sarbanes-Oxley law, it had a little less than 2.5 million shares outstanding, but that has now grown to nearly three million. This deal, including cash and marketable securities that current TM Century shareholders get to keep, is being valued at 14.7-15 million. While new owner Jones Media Group has its own sales organization, it won't be marketing the inventory from TM Century for a while yet - see Ad Business Report below.

RBR observation: Without having to deal with the pressures associated with having a listed stock, Graupner has been able to rebuild TM Century while flying below the Wall Street radar screen. Back in 2003 when the stock quit trading on Nasdaq it was around 60 cents a share. The last pink sheets sale price on Friday, before this deal was announced on Monday, was at 3.95. Trading over the past 52 weeks has been in a range of 2.00-4.75. The folks at TM Century have proven that leaving exchange-listed public stock trading is not always the kiss of death.

Analyst predicts CBS stock buyback
In its brief nine month history as a stand-alone company, CBS Corporation has already raised its dividend payment three times. Now Bear Stearns analyst Victor Miller thinks it is time for Les Moonves to announce a big stock buyback program - say, a billion bucks - as well. CBS is sitting on a pile of cash, some 3.5 billion, and Miller notes that the latest dividend increase (8/15/06 RBR #158) didn't even begin to make a dent in the more than one billion in proceeds from the sale of Paramount Parks. "We do not believe that CBS has any intention to invest in any large scale merger and acquisition opportunity," Miller told clients. So why does he think the time is ripe for CBS to announce a stock buyback program? Deals have been announced for six of the 10 radio markets that CBS put up for sale, making it clear that CBS is going for cash sales at strong multiples, rather than using a Reverse Morris Trust mechanism, the tax-avoiding approach that Disney is using to transfer ABC Radio to Citadel Broadcasting. That eliminates a hurdle which could have blocked any stock buyback until the radio transaction closed. The money is there, the path is clear and Miller now expects CBS to announce a big stock buyback program soon.

Kerry probing government use
of minority agencies
The US government is a big spender when it comes to buying advertising. John Kerry (D-MA) says seven government entities between them dropped 1.62B into advertising one way or another in the two-and-a-half years from 2003 to mid-2005. However, he is concerned that a Bill Clinton executive order issued in 2000 which requires federal agencies to "take an aggressive role in ensuring substantial minority-owned entities' participation...in federal advertising- related procurements" is not being followed by the Bush administration, depriving small and minority-owned advertising businesses of their fair share of government business. The Government Accounting Office dug up the 1.62B figure, and Kerry repeated his earlier request for an accounting of exactly where that money went. Speaking before the Congressional Black Caucus's 36th Annual Legislative Conference last week, Kerry also addressed the issue of media ownership regulation, currently under review by the FCC. "Without putting the proper safeguards in place,"" he said, "consolidating media markets would make it more difficult for minority entrepreneurs to own and operate media outlets. To foster the creation of a diverse, dynamic media, we need to fiercely promote opportunities for minorities, women, and small business ownership in the communications industry." He noted that the Senate Commerce Committee unanimously adopted his suggested provision of an amendment to Ted Stevens' (R-AK) telecom bill which would require an FCC study of minority and small business media ownership prior to evaluating further relaxation of the rules.

Latin groups examine media rules in Texas capital
If you can't wait for the first official FCC public forum on media ownership, booked for 10/3/06 in Los Angeles, another in a series of forums arranged by watchdog groups will be empaneled in Austin TX two weeks earlier. While the Los Angeles hearing figures to have Republican commissioners on hand, the Austin session will be typical of most other forums, which attract Democratic Commissioners Michael Copps, Jonathan Adelstein or both. The Austin session has booked Adelstein. Although watchdogs and frequent forum founders Free Press and Consumers Union are backing the Austin session, it has been set up by Hispanic watchdogs National Latino Media Council (NLMC) and the League of United Latin American Citizens (LULAC). NLMC's Estaban Torres, a former US Representative (D-CA), said, "During the spring, in major cities around the country we witnessed the power of the media to bring the community together during the peaceful immigration marches. If the current media ownership restrictions are dropped we will lose the little localism and diversity in the media that still exists today." The session will be held at 6:30PM local time at the University of Texas' Jester Auditorium.

Ad Business Report TM

Dial-Global will continue to handle
TM Century ad sales for full year
After checking into the deal of Jones Media Group (JMG) buying TM Century (see Radio News), we found it a little odd that competitor Excelsior/Dial-Global will continue to handle ad sales for TM for a full year after closing-not Jones MediaAmerica, the ad sales division of JMG. Said Excelsior CEO Spencer Brown: "We've been aware of the situation for a while and have been in the loop for the entire time. For us, the short of it is we have a contract to represent TM for a year after this deal is closed. We look forward to continuing to represent them as it comes to pass. All of the parties are aware of this exclusive representation." Dial-Global/Excelsior also had an interest in purchasing TM and were looking at the company as well. Dial-Global Co-President/CEO David Landau, pictured, tells RBR they've had a long-term relationship with TM that goes back to when Neil Sargent was the CEO of TM and Landau was a partner at Multiverse when Sargent was converting it from cash to barter in 1995. "We also put them in RADAR, so there's a long history here. We will continue to give them great service, based on the value of our relationship," he said.

We asked Bob Hampton, Jones Media Group President, how the Dial-Global contract played into his decision to buy TM: "Well, I don't want to speak for the lawyers here, but, yes, I believe Dial-Global has a representation agreement that has a provision for one year out. We certainly weighed that into consideration, because we will do our own representation, as I'm sure you are aware, when that time is up. We factored in the difference in the first year income from us and still felt like it was a reasonable deal." We also asked him about the unusual situation that the harder JMA works to help TM become more successful, the more it will benefit their ad sales competitor Dial-Global: "We will have time to gear up for the [transition] and to bring the inventory into us. We certainly are going to do everything we can to add affiliates, grow the subscriber base and to grow both the cash and barter portion of the business. If that allows Dial-Global to sell more advertising and to get more revenue for them and us, so be it." After the deal closes, Hampton said the additional major-market coverages for MediaAmerica's ad inventory and additional cash business from TM Century will give them a bit more income stream diversification. "For the rest of Jones-the syndication, music and format business-there are a lot of synergies involved. We both produce music libraries, we both have comedy networks and we both service-somewhat-the same clients. So this just gives additional opportunities for our clients to deal with one vendor to get sort of a turnkey operation. This is a natural extension of our business to have complimentary product lines to offer."

NAB Day Time Planner

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

BROKERS
Todd Fowler/David Reeder/Gene Ferry/Bruce Pollock, American Media Services, Hilton Anatole, 843-972-2200, [email protected], [email protected], [email protected], [email protected]

Jack Higgins/Dan Graves/
Joel Day/Denis LeClair, CobbCorp, LLC., Hilton Anatole, office 202-478-3737, [email protected]

Andrew P. McClure, The Exline Company, Hilton Anatole, Suite 353 office 415-479-3484, cell 415-497-3855, [email protected]

Frank Boyle, Frank Boyle & Co., Sheraton Suites Market Center, 203-969-2020, [email protected]

Cliff Gardiner, Clifton Gardiner & Co., Hilton Anatole, 303-758-6900, [email protected]

Gordon Rice, Gordon Rice Associates,
843-884-3590, Hilton Anatole, [email protected]

Ed Henson, Henson Media, Inc., Louisville, KY, 502-589-0060, Hilton Anatole, [email protected]

John L. Pierce,
John Pierce & Company LLC,
859-647-0101, cell 859-512-3015, Hilton Anatole, [email protected]

Jamie Rasnick,
John Pierce & Company LLC,
859-647-0101, cell 513-252-1186, Hilton Anatole, [email protected]

Dick Kozacko/George Kimble,
Kozacko Media Services, office 607-733-7138, cell 607-738-1219, Hilton Anatole,
[email protected]

Larry Patrick/Greg Guy/Susan Patrick/Summer Foust,
Patrick Communications, Hilton Anatole
Suite #1034, 410-740-0250, [email protected]

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

Terry A. Greenwood,
TAG Media Consulting,
Hilton Anatole, office 410-931-3362, [email protected]

LAWYERS
Gregg P. Skall,
Womble Carlyle Sandridge & Rice, PLLC 202-857-4441, Hilton Anatole, [email protected]

TRAFFIC SOFTWARE
Eric Mathewson, Founder and CEO; Wide Orbit; 415-675-6751; Booth 617 and Hilton Anatole Presidential Suite;
[email protected]

Media Markets & Money TM

Remaining CBS radio stations may have shelf life
Victor Miller and his crew at Bear Stearns are looking into the possibility that CBS may be thinking about a major stock buyback (see related story above). Noted in due course of that analysis are the three recent sales of radio station properties "...accounting for 432M of gross proceeds, 350M+ of net proceeds and 30.5M in sold cash flow." Bear Stearns had been looking for 40M in sold cash flow. Still on the table, however, are stations in four markets. Here's an RBR refresher: * Kansas City: KBEQ-FM, KMXV-FM, KCKC-FM, KFKF-FM; * Columbus OH: WAZU-FM, WHOK-FM, WLVQ-FM; * Greensboro-Winston Salem: WSJS-AM, WMFR-AM, WSML-AM; * Fresno: KFPT-AM, KMJ-AM, KSKS-FM, KOQO-FM, KWYE-FM, KMGV-FM, KFJK-FM. If Bear Stearns is correct, there may be time yet to put together an offer. The analysts wrote, "...we do not expect sales to occur in these markets in the near term."

Washington Media Business Report TM

Information company
questions decency policy
TechDirt, which says it is in the business of corporate intelligence (as opposed to being a tech or consulting company) has called the FCC's decency policy into question. Why is it, the firm wonders, that some weeks and/or months there are almost no complaints in the FCC's indecency box, then "...suddenly over 100K come in." The answer, it suspects, is that often 100K people are complaining at the behest and with the language of certain anti-indecency websites, who often take up the role of distributor of the questionable programming. TechDirt says, "Ironically, if the people sending in these complaints have seen the offending video at all, it's often because some of the 'family groups' post them to their own websites to stir up the outrage." Although it's unclear from the FCC's quarterly reporting just where the complaints come from, TechDirt says there's plenty of evidence to support the argument that most of the response is susceptible to the charge of complaint box "stuffing," which "...really does make you wonder what the FCC thinks it's doing. Considering that some studies have shown the vast majority of Americans think the FCC has no place censoring TV, it seems like maybe the FCC should focus on more pressing issues. Otherwise, we just get a chilling effect as affiliates refuse to run certain programs just in case groups gang up on them and the FCC declares the video indecent."

Internet Media Business Report TM

AOL to stream NBC programs
AOL announced it will exclusively offer two new NBC programs on its website a week before their broadcast TV premiere-"Studio 60 on the Sunset Strip" and "Twenty Good Years." Both are produced by Warner Bros. Television. The shows are available in their entirety on AOL.com for one week prior to their network broadcast, with "Studio 60 on the Sunset Strip" going live yesterday at 3 p.m. (ET) and "Twenty Good Years" on 10/4. CBS just teamed with TiVo where subscribers will be able to watch the pilot episode of CBS's "The Class" a week before the TV broadcast (9/6/06 TVBR #173).

Ratings & Research

Clear Channel increased spot loads in August
BMO Capital Markets analyst Lee Westerfield admits he was a bit surprised to find that Clear Channel Radio increased commercial time in the top 10 markets by 3.9% in August - the first time since the implementation of Less is More that there has been a monthly increase. Westerfield also notes that the increase was seen across nine of the 10 markets, so it was widespread. What does it mean? Westerfield says not to read too much into it right away. After all, one month does not a trend make. Also, that 3.9% increase works out to 21 additional seconds of commercial time per hour. After leading the industry in commercial time reductions for a year and a half, the analyst said the company had to reach a point of equilibrium. Going forward, Westerfield now sees a range of plus or minus 5% per month for Clear Channel Radio "as a reasonable monthly variance level."

Transactions

30M WILD-FM Boston (Brockton MA) from Radio One Licenses LLC, a subsidiary of Radio One Inc. (Alfred C. Liggins et al) to Entercom Boston License LLC, a subsidiary of Entercom Radio LLC (David J. Field). 5M escrow, balance in cash at closing. Superduopoly with WEEI-AM, WRKO-AM, WVEI-AM, WMKK-FM & WAAF-FM. LMA until closing. [File date 8/25/06.]

1.5M WIFX-FM Jenkins KY from Letcher County Broadcasting Inc. (G.C. Kincer, Ernestine Kincer) to AJSPD LLC (Paul Jacob Hans Schmoldt, Susan K. Schmoldt, Adam D. Gearheart, Paul D. Gearheart). 50K earnest money, 700K cash at closing, 750K note. Daisychain duopoly with WXKZ-FM Prestonburg KY and WXLR-FM Harold KY. LMA until closing @ 18K/month. [File date 8/25/06.]

Stock Talk

Once again: Market up, radio down
Most stocks were a bit higher on Monday, as the prices of oil and other commodities came down. The Dow Industrials crept up five points to 11,397.

But for the second straight session, radio stocks were down while the broader market was up. The Radio Index wasn't down much, but it slipped 0.418, or 0.3%, to 139.239. Salem had the worst day, down 1.9%. Saga fell 1.2%. CBS, which is not a Radio Index component, rose 2.8% (Class B).

Radio Stocks

**Here's how stocks fared on Monday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		36.76	+0.04	Hearst-Argyle	HTV		23.15	-0.22
Beasley	BBGI		7.20	+0.08	Journal Comm.	JRN		11.08	+0.01
CBS CI. B	CBS		29.26	+0.80	Lincoln Natl.	LNC		61.09	+0.16
CBS CI. A	CBSa		29.21	+0.75	Radio One, Cl. A	ROIA		6.18	unch
Citadel	CDL		9.00	-0.07	Radio One, Cl. D	ROIAK		6.22	-0.07
Clear Channel	CCU		29.67	+0.29	Regent	RGCI		4.05	+0.08
Cox Radio	CXR		15.51	+0.01	Saga Commun.	SGA		8.01	-0.10
Cumulus	CMLS		9.80	-0.07	Salem Comm.	SALM		11.08	-0.21
Disney	DIS		29.77	+0.19	Sirius Sat. Radio	SIRI		3.90	-0.03
Emmis	EMMS		11.77	-0.09	Spanish Bcg.	SBSA		4.23	+0.13
Entercom	ETM		25.15	-0.07	Univision	UVN		34.85	+0.22
Entravision	EVC		7.42	-0.01	Westwood One	WON		7.02	-0.04
Fisher	FSCI		42.22	-0.41	XM Sat. Radio	XMSR		11.92	-0.05
Gaylord	GET		43.83	+0.30	-	-	-	-	-

Bounceback

Send Us Your Opinions We want to
hear from you.
This is your column, so send your comments and
a photo to [email protected]

Below the Fold

Media Markets & Money
Remaining CBS radio stations
May have shelf life...

Washington Media Business Report
Information company
questions policy
TechDirt, has called the FCC's decency policy into question...

Internet Media Business Report
AOL to stream NBC programs
Exclusively offer two new NBC programs on its website a week...

Ratings & Research
Clear Channel increased
Spot loads in August...

Stations for Sale

AUCTION: Small market AM/FM in the mid-west.
Cash flow 200K. FM CP for 100KW which will provide city grade into rapidly growing top 200 market. For more information, photos and auction detail e-mail Jim Lakoduk, agent,
[email protected].
Pifer's Auction and Realty.

WANTED! FM CP's
(commercial or noncommercial)
John W. Saunders, Media Broker
713.789.4222
[email protected]

Nevada C1: Asking 900K
Possible Terms. Market Favorite
Good Sales-Motivated-Make Offer
Brett Miller - MCH Enterprises, Inc.
805.237.0952
www.mchentinc.com

Radio Media Moves

Thomas to LFM
Lincoln Financial Media announced the appointment of Barry Thomas as Vice President/Engineering of its radio division, effective October 2nd. Thomas replaces Tom Giglio, who is retiring after 45 years with Lincoln Financial Media and Jefferson Pilot Communications. Giglio will assist in the transition until the end of the year. Thomas comes to Lincoln Financial Media from Westwood One, where he served as VP/Engineering. Thomas currently serves as national treasurer to the Society of Broadcast Engineers.

New duties for Cunningham
Jacobs Media has given consultant Keith Cunningham the added title of Morning Show and Talent Development Specialist. He will be working with morning shows and other air personalities to develop their skills, approaches and ratings successes.

More News Headlines

Malara tribute September 26th
Mario Cuomo and Charles Osgood will be among those speaking Tuesday, September 26th as the Broadcasters' Foundation hosts a tribute to former CBS Television President Tony Malara, who died last month at 69 (8/25/06 TVBR #166). The event will be at 8:15 am at the 21 Club in Manhattan. Call 203-862-8577 if you wish to attend.

Imus and others
to roast Schieffer
Both Don and Deirdre Imus, former Sen. Tom Daschle and White House Press Secretary Tony Snow will roast CBS newsman Bob Schieffer October 3rd at the 18th Annual Roast for Spina Bifida in Washington, DC. The annual fund-raising roast was founded by Judy Woodruff and her husband, Al Hunt, whose son Jeffrey Hunt, now 24, was born with Spina Bifida.

RBR Radar 2006

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

The gripes of wrath: Q2 2006
For what it's worth, indecency complaints received by the FCC were way down in Q2 2006 compared to the first quarter, dropping from about 142K to 52K. Most of the action was in the month of May, when 40K complaints came in, with about 11K in April and less than 1K in June. If you're looking for dog-and-pony show-style year-to-year comps, the month's complaint total was fairly horrific, jumping up from only 6.2K complaints in Q2 of 2005.

RBR observation: It's almost impossible to figure out if there is any meaning to the numbers reported here. Perhaps you remember back when one complaint was lodged, acted upon, and later canceled, concerning an airing of the radio cut of Eminem's "The Real Slim Shady," after it had aired over 100K times before from coast to coast without incident. On the other end of the spectrum are massive click and send complaints fired off at the behest of anti-indecency watchdogs where citizens obliging impugn the contents of programming they did not see or hear. And the question remains: Who will be the lucky winner of the first new and improved 325K indecency NAL? If may be just one four-letter word away.
09/11/06 RBR #176

Different views of CCU buyback
Some Wall Street analysts are bullish on the move by Clear Channel Communications to buy back another one billion bucks of its stock. One analyst, however, is taking a different view and complains that stock buybacks haven't done anything to support the company's stock price.
09/08/06 RBR #175

Clear Channel buying more stock
If Wall Street keeps radio stocks beaten down, radio companies will just keep buying back more of their own stock - eventually paying off for the shareholders who remain. Clear Channel has announced a new buyback authorization of one billion bucks over the next 12 months. That comes as the company has bought back 582 million under its previous 600 million authorization.
9/7/06 RBR #174

XM facing SEC probe
To no one's surprise, XM Satellite Radio says it has received a staff inquiry from the Securities and Exchange Commission about how it counts subscribers and calculates the costs of achieving its subscriber targets. The company is already facing lawsuits over those very issues by investors who claim they were misled by XM's counting. XM says it is cooperating with the SEC inquiry.
9/7/06 RBR #174

Regent bulls into Buffalo
Another plank in the CBS Radio sell-off has been revealed, as Regent Communications makes off with the Buffalo herd which includes an AM and four FMs. The pricetag is 125M. The stations include WBLK-FM, WBUF-FM, WJYE-FM, WYRK-FM and WECK-AM. The deal follows the 262M sale of stations in Memphis, Rochester, Cincinnati and Austin to Entercom and the 45M sale of San Antonio properties to Border Media, and brings the total CBS take to 432M, with four more markets still on the shelf.
9/6/06 RBR #173

Sporting News sold, radio group next
Nearly two years after putting The Sporting News up for sale, Paul Allen's Vulcan Sports Media has announced a deal to sell the print publication, online operations and Sporting News Radio network to the American City Business Journals division of Advance Publications. Not included are the three O&O stations in New York, LA and Boston, which are also going to be sold soon, but to a different buyer.
9/6/06 RBR #173

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