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Welcome to RBR's Daily Epaper
Volume 22, Issue 179, Jim Carnegie, Editor & Publisher
Tuesday Morning September 13th, 2005

Radio News®

Susquehanna bids due today
Five months after officially hanging out the "for sale" sign, Susquehanna Pfaltzgraff Company and its investment bankers at UBS will accept bids today for all of the company's assets, including the two parts of Susquehanna Media - - radio and cable TV. On the radio side, Susquehanna has primo properties in big markets that are expected to draw hefty price tags. RBR/TVBR last month raised its estimate for the radio sale, projecting that it is likely to bring a total of 1.5-2 billion bucks. The cable TV systems don't have the same cache, since they aren't in any big markets. Our estimate all along has been that they'll bring over 600 million.

| Here's another look at what's on the auction block |

RBR observation: Who's expected to bid? Although we'd originally tabbed Cox Radio and Entercom as the best fits, since they could use a stock buy to cut the tax bill for Susquehanna's founding Appell family, both insisted they wouldn't overpay and seem to have been left on the sidelines as the price tag moved higher. That pretty much eliminates the possibility of a public company buying all of Susquehanna Media for stock and then spinning off the cable TV systems (which Cox Radio could have done to Cox Communications). The buzz lately has been about a buyout by Susquehanna Media's current and former management (including current CEO David Kennedy and predecessor Peter Brubaker) with venture capital backing, a radio bid by Farid Suleman's Citadel Broadcasting with Forstmann Little putting in more cash to increase its investment in radio, and a bid for the radio group by Cumulus Media CEO Lew Dickey with some new venture capital backing. But don't forget that aggressive bidding for individual stations could force a breakup of the radio group. Viacom's Infinity, in particular, is very interested in those Houston and Atlanta stations, although FCC limits won't let it buy the entire radio group. Our previous analysis of who can and cannot acquire the Susquehanna Radio stations in each market still stands. As for the cable TV side, there's no obvious buyer, but any MSO with existing operations near one or more of the Susquehanna systems is likely to bid to add a few more subs to a hub.

Bonneville wins "playing what we want" suit
from SparkNet

A US District Court has ruled in favor of Bonneville International in an infringement suit brought on by SparkNet Communications over the use of slogans like "playing what we want" and "whatever we feel like" - - all taglines for the ever-popular Jack-FM format. SparkNet, a joint venture with Vancouver-based consultant Pat Bohn and Nashville-based consultant Garry Wall, sued Bonneville in May for infringing that trademark on stations in St. Louis, Phoenix, Chicago and San Francisco. Sparknet licenses the slogan and the "Jack FM" trademark to 15 stations in the US. The Chicago-based court wrote that Bonneville's slogans fairly described the music it plays and its slogans are used in connection with its own radio frequencies and station names. That may be good news for Clear Channel Radio. SparkNet has similar cases pending in San Diego, Columbia, SC and Des Moines.

Ft. Myers stations battle captioning fines
Waterman Broadcasting Corp. and Montclair Communications, which own WBBH-TV (Ch. 20, NBC) and WZVN-TV (Ch. 26, ABC) Ft. Myers-Naples, FL, respectively, have asked the FCC to rescind the proposed fines of 24,000 bucks for each, based on a determination by the Commission's Enforcement Bureau staff that each failed to provide three specific items of emergency information to hearing impaired viewers during their coverage of Hurricane Charley in 2004. The licensee's response wasn't quite as critical of the staff ruling as RBR/TVBR's observation last month (8/10/05 RBR #156), but called on the Commission to call its staff out of bounds on this one. The response said the proposed fines would discourage stations from providing full coverage of storms and other emergencies by levying fines for "good faith, reasonable judgments." It cited the RBR/TVBR observation and a number of emails from viewers, including some who were hearing impaired, as demonstrating that the stations had done an exemplary job of covering the storm and providing vital information. The three instances cited by the FCC staff, it said, concerned 44 seconds out of 223 hours of storm reporting over eight days. In fact, the response said one of the three cases in which the stations were cited for not providing information to hearing impaired viewers that was broadcast aurally turned out not to have been factual - - that the causeway from Sanibel Island was not completely closed. In the other two cases, the licensees told the FCC that similar warnings were given visually and that there was no basis for fining the stations for not repeating in text form warnings for specific communities when warnings were being given for wider areas which included those communities.

RBR observation: What a waste of resources for these stations to have to have lawyers or paralegals review hours and hours of videotape to determine that a text warning was issued at such-and-such a time and an aural warning at such-and-such a time, while the real story was an heroic effort by both stations to provide emergency information to their communities to save lives. As you'll note from today's Bounceback, the cynics among us are now waiting for the FCC to start handing out fines in the aftermath of Hurricane Katrina - - at least to those few stations that managed to stay on the air in New Orleans and Biloxi-Gulfport.


FCC stresses making emergency info available to disabled
The FCC says it recognizes the enormous challenges faced by broadcasters trying to provide vital information to the public during a crisis. At the same time, it is stressing that this is exactly the time it is most necessary to provide that information to people with hearing or sight loss. For television stations in particular, it is important to remember that there are likely to be visually impaired people in the audience, so pictures or text alone cannot be used to impart information - - make sure appropriate narration goes along with visuals. That generally is taking place on most occasions. The trickier part is keeping the hearing disabled up to date. The FCC has indicated that it is not fussy about how this is accomplished. "We also remind video programming distributors that they are not required to close caption this emergency information, and may make the information accessible through the use of 'crawls,' 'scrolls,' or other methods of visual presentation, including such simple methods as handwriting on a blackboard." In the immediate case, the FCC stresses that the emergency area extends beyond those areas physically damaged by Katrina, to places where large evacuees are being housed. Another reminder - - make sure that impositions of emergency information or insets of any kind do not block out closed captioning content.

Appeals court ends Fish expedition
Freedom of information took another hit in court, this time at the Texas Court of Appeals in Dallas. Russell Fish, an education activist, has been trying to get data on the general performance of students on certain standardized tests in order to study the effectiveness of the schools administering the tests. The origins of the suit go all the way back to 1997. His initial request was turned down because it is against school rules to provide such information about any individual student or teacher. Fish said fine, obliterate any identity references, so the information is not "personally identifiable." Although the jury that delivered the first outcome agreed that under terms of the second Fish request for data the information was not "personally identifiable," they still somehow came to the conclusion that it was nevertheless "easily traceable." The appeal pointed out that if condition one was in place, condition two was impossible. The higher court turned down the appeal because Fish should have established all applicable definitions the first time around, before the jury deliberated. Among those aiding Fish's cause was then-Texas AG and current US Senator John Cornyn (R-TX).

RBR observation: There must have been some fine lawyering on this one. We aren't attorneys, but it would seem that Fish lost round one because his opponents were able to successfully get a jury to buy a simple perversion of the English language. Then the appeals court, instead of taking steps to correct the finding, seems to agree that Fish should never have allowed the jury to be hoodwinked the first time, so it's his own fault, end of story. And another part of the government of the people, by the people and for the people gets to hide from the people.


Adbiz©

GWIN announces campaign
with Hooters Casino

Publicly traded sports handicapping company GWIN Inc. announced it has entered into a multi-year promo deal with Hooters Casino Hotel Las Vegas to help hype its opening in February. The campaign will include all of the company's "WinningEDGE" media properties including CEO "Wayne Allyn Root's WinningEDGE" television show (airing on WGN Superstation; and on Comcast SportsNet Chicago); "Wayne Allyn Root's WinningEDGE" radio show airing in selected local markets on Fridays and/or Saturdays; and the www.WinningEDGE.com website. The TV and radio shows air for 13 consecutive weeks beginning 9/10. Hooters Casino will be a co-title sponsor of both the TV and radio shows, as well as a segment sponsor within each show. In addition to the promotional exposure Hooters Casino will receive on television and radio, it will participate as a sponsor of the www.WinningEDGE.com "Win Your Dream Job" Football Handicapping Contest where the grand prize winner will win a contract with GWIN and The WinningEDGE to become a pro sports handicapper. Hooters will also provide 16 weekly winners with an expense-paid trip for two to Vegas and a three-day stay at the casino The grand prize winner will receive a six-day stay and 5,000 in casino chips/slot play. WinningEDGE's TV and radio sponsors now include Hooters Casino, BOSPoker.net, Vegas.com, and ScoreRunner.com. Several more gaming-oriented television shows under development.

USA Today highlights new trend:
product placement in other products' ads

USA Today took a look at how product placement is now being seen in commercials, with marketers pushing products in other marketers' spots. Marketers see it as a smart way to leverage promotional spending bucks. Consider: Music and iPods. Getting a new release featured in the snappy, dancing ads for the hot Apple digital music player is much sought after by music labels, and for good reason. Pop songs featured in the commercials quickly became popular downloads at iTunes. -- Mazda and NBC. The car company helped foot NBC's bill to hype new shows for the fall season with the network's "First Look" campaign. Mazda cars star in promos for the NBC shows. -- Carl's Jr. and more. Whether it's a Bentley getting a sultry wash by Paris Hilton or the movie trailers, video game promotions and Motorola cell phone ads at the Carl's Jr. Web site, cross-promotions are hot with the burger brand. -- Warner Music Group landed its recording star Michael Bublé in an ad for ready-to-drink Frappuccino, distributed by Pepsi and marketed jointly by Pepsi and Starbucks. The ad, by Fallon, shows an office worker stressed out by colleagues, computers and tasks. She feels refreshed when she pops open a bottle of Frappuccino and is swept away by Bublé, who appears in the ad, and his music.

Jim Beam launches TV effort
Jim Beam has, after 210 years, has joined the bandwagon of liquor brands being advertised on television. The Jim Beam bourbon brand began appeared 9/11 on cable CMT, Comedy Central, Discovery Channel, FX, Fox Sports Network, OLN and Spike TV (ABC, CBS, Fox, NBC, UPN and WB continue to refuse to run liquor ads). Previously, Jim Beam Brands had sponsored commercials that promoted drinking responsibly, using the theme "Drink smart," but did not include product pitches. Those spots have been sent to stations to run as PSAs, reported the NY Times. The new spot, via BBDO Worldwide Chicago, is a television incarnation of the print campaign for Jim Beam that BBDO introduced last year, carrying the theme "The stuff inside matters most." The Jim Beam Brands budget is estimated at 8-12 million.


Media Business Report
Are telcos making local access an endangered species?
The Boston suburb of Malden MA is proud of its local programming provided over Comcast cable wires under the auspices of Malden Access TV. The town is sounding the alarm, however. If telephone companies are allowed into the MVPD game, and aren't required to get a local permit, where will the leverage come from to keep local access on the channel card? According to an article posted by TownOnline.com, Malden officials expect a downward spiral if telcos get to compete with cable as a provider of home video service. The phone companies already have their wire systems set up, and are not beholden to local communities the way cable companies are. The town figures that competition will lead to lower prices, but also lower levels of service, and the first thing likely to be cut is local access. Malden is also worried about the loss of income from franchising fees.

MBR observation: Malden should be worried whether telcos get into the MVPD business or not. They probably will get in, first of all. And part of the wheel-greasing already in the works is the elimination of the entire local franchising regimen for all players, cable included, if Sen. John Ensign (R-V) gets his way (6/23/05 RBR #123). The Commerce Committee member has been given the point on a planned rewrite of Telecom 1996 by Chair Ted Stevens (R-AK), and chief among his goals is to federalize the relationship between MVPDs and the government on grounds that there should be only one set of rules for them to track and follow, not one per local political jurisdiction.


Media Markets & MoneyTM
Norsan heeds E. Fla. 'SOS
Norberto Sanchez's Norsan Consulting and Management is picking up a fourth AM station in the Jacksonville FL area. It has a 300K deal with one of Bruce Buzil's license companies for WSOS-AM, just south of the Jacksonville in St. Augustine Beach. The seller is 3 Point Media - Florida LLC, headed by Bruce Buzil and Chris Devine. Norsan already has an LMA to buy with WEWC-AM in Callahan FL, coming in somewhat of a fire sale from Circle Broadcasting of America, and perhaps fittingly, circuitously at that, coming through another prospective buyer - - Hola Communications. Broker Stan Raymond handled both the sale of WEWC and the current WSOS deal. And that's not all. Norsan also has am LMA/acquisition with Florida Sports News Network for WNNR-AM Jacksonville and WVOJ-AM Fernandina Beach. That deal's valued at 2.1M, putting Norsan's total area AM investment just north of 3M. WVOJ-AM, with a wide north-south signal that hugs the beach and beams into the ocean, overlaps all three remaining stations. WEWC-AM and WNNR-AM share coverage in and around Jacksonville proper, with WSOS-AM serving coastal areas to the south.


Washington Beat
Powell gets into the video business
Recently departed FCC Chairman Michael K. Powell has found a job that would seem to combine elements of his old job with elements of his Dad's old military and State Department gigs. According to Information Week, he's joining the board of directors of ObjectVideo Inc. The object of this video company is not news and entertainment, however, as was the case with most of the companies formerly under Powell's oversight. Well, news, maybe, but not for general consumption. The company is currently supplying the US Marine Corps with video surveillance software in Fallujah, Iraq, and has a project in the fire with Lockheed Martin.


Programming
JRN launches "The Bill Press Show"
Jones Radio Networks has added The Bill Press Show to its talk roster. This informative, high-energy morning show mixes politics and popular culture in a progressive potpourri. Hailing from KFI-AM LA, Press is also known as the go-to guy for progressive commentary on network and cable. He is, of course, also the former co-host of MSNBC's Buchanan and Press and CNN's Crossfire. A noted author, Press also writes a twice-weekly column syndicated nationally by Knight-Ridder. His forthcoming book, How The Republicans Stole Christmas, will be published in October. Press is joined each morning by Christy Harvey, the editor of The Progress Report - - a leading daily online progressive publication - - and a regular commentator on The Al Franken Show. The Bill Press Show can be heard each weekday from 6:00-9:00a.m. ET.

XM in 100M hockey deal
As the satellite radio companies battle to attract sports junkies, XM Satellite Radio announced a 10-year, 100 million bucks agreement that makes XM the exclusive satellite radio network of the NHL beginning with the 2007-2008 season. XM will begin broadcasting NHL games with the launch of the new 2005-2006 season on a non-exclusive basis and will become the League's exclusive satellite radio broadcast partner in 2007. In addition to play-by-play coverage, XM will create a dedicated NHL radio channel featuring original programming that will focus on all aspects of the sport. NHL games and the NHL channel will be available in Canada through XM's partner, Canadian Satellite Radio (CSR), which is funding a portion of the agreement. "XM and its Canadian partner CSR are excited to participate in the resurgence of this great sport," said XM CEO Hugh Panero. XM's coverage of the NHL will include games from every team, as well as the NHL All-Star Game, the Stanley Cup Playoffs and the Stanley Cup Final.


Engineering
Continental to show off 811HD FM and HD transmitter
Continental Electronics will highlight its new 811HD IBOC transmitter at this year's NAB Radio show, Booth 513. The 811HD is a cabinet-mounted, low-power, HD-only linear transmitting system that includes an IBOC exciter to provide the company's customers with a "special combined" FM/IBOC solution. Additional options include a CEC IBOC importer for multicasting and surround-sound broadcasting, and the Audemat-Aztec GoldenEagle IBOC monitoring system. The new 811HD is a 250-watt HD radio transmitter for separate, special combined antenna systems, or for use in common antenna systems. The 811HD is the perfect complement to any existing analog transmitter up to 25-kilowatt analog TPO.


International

Canadian Cabinet OKs satellite radio
The Canadian Federal Cabinet has upheld a controversial Canadian Radio-Television and Telecommunications Commission (CRTC) decision to issue new satellite radio licenses. But the CRTC will hold more hearings to get public input on issues surrounding the decision and the licensee's promises to increase Canadian content and French-language services. The licenses were first awarded 6/16, but lobbying efforts and calls for the CRTC decision to be reversed were made by some 30+ organizations. The decision opens up the service for Sirius Canada and Canadian Satellite Radio (affiliated with XM) to launch before year's end. Sirius and CSR will provide 10% Canadian content, compared to as much as 35% required from terrestrial broadcasters. The new licenses also call for eight new Canadian channels and 72 American channels. Sirius Canada was formed by Sirius Satellite Radio, Standard Broadcasting and Canadian Broadcasting Corp. Canadian Satellite Radio, is owned by John Bitove, former co-owner of the Toronto Raptors basketball team. CSR has partnered with Washington-based XM Satellite Radio. "With the Canadian government's decision to uphold the CRTC's original ruling allowing Sirius Canada to begin broadcasting, we will work with our Canadian partners to bring the very best in satellite radio programming to Canada," said Scott Greenstein, President of Entertainment and Sports for Sirius. "Soon, Canadians will be able to experience the variety of programming and quality entertainment that Sirius offers...This is a great decision for Canadians, and we look forward to launching this service as soon as possible later this year."


Transactions
650K WCVJ-FM Jefferson OH from Agape School Inc. (Myron Hubler Jr.) to Educational Media Foundation (Richard Jenkins). 225K cash, 425K note. Station is noncommercial. [File date 8/1/05.]

320K KDJW-AM Amarillo TX from Avondale Operating INc. (Thomas W. Pauken) to Catholic Radio of Texas High Plains (John W. Uanta, Dale Artho, Jake Richards, John Doucete, Steve Thomas, Thomas W. Pauken). Buyer is noncommercial. [File date 8/1/05.]


Stock Talk
A day of going nowhere
Wall Street trading essentially moved sideways on Monday. A couple of big mergers created excitement in the tech sector, but the broader market was pretty much flat. The Dow Industrials ended the day up four points at 10,683.

Radio stocks were also little changed. The Radio Index edged up 0.137, or 0.07%, to 204.496. The best performers were Clear Channel, up 2%, and Emmis, up 1.4%.


Radio Stocks

Here's how stocks fared on Monday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

42.28

+0.20

Jeff-Pilot

JP

50.07

+0.08

Beasley

BBGI

14.72

-0.18

Journal Comm.

JRN

15.97

+0.10

Citadel CDL
13.22 +0.08

Radio One, Cl. A

ROIA

13.60

unch

Clear Channel

CCU

33.08

+0.65

Radio One, Cl. D

ROIAK

13.55

-0.02

Cox Radio

CXR

14.81

-0.19

Regent

RGCI

5.29

-0.01

Cumulus

CMLS

12.47

+0.01

Saga Commun.

SGA

14.00

unch

Disney

DIS

25.12

+0.08

Salem Comm.

SALM

18.69

-0.02

Emmis

EMMS

23.96

+0.34

Sirius Sat. Radio

SIRI

7.35

-0.04

Entercom

ETM

31.68

-0.17

Spanish Bcg.

SBSA

7.31

unch

Entravision

EVC

7.75

+0.04

Univision

UVN

25.95

-0.10

Fisher

FSCI

48.64

+0.14

Viacom, Cl. A

VIA

34.77

+0.18

Gaylord

GET

47.75

+0.15

Viacom, Cl. B

VIAb

34.63

+0.01

Hearst-Argyle

HTV

25.57

+0.07

Westwood One

WON

20.56

-0.17

Interep

IREP

0.56

-0.02

XM Sat. Radio

XMSR

36.12

+0.12

International Bcg.

IBCS

0.01

unch

-

-

-

-

-



Bounceback

Send Us Your OpinionsWe want to
hear from you.

This is your column, so send your comments to [email protected]

Now that the bulk of the Hurricane Katrina coverage has died down, broadcasters everywhere should send a special "thanks for a job well done" to our brethren in New Orleans and on the Gulf Coast of Mississippi, especially to the staff at WWL-TV in New Orleans and WLOX-TV in Biloxi. However, one wonders how soon it will be before the FCC issues forfeiture notices to TV stations that failed to include closed-captioning text as they were airing this fast-developing story?

Larry Fuss, President
Contemporary Communications LLC
Las Vegas, NV


Radio Media Moves

Rosenblatt
driving Route 81

Former Tele-Media Broadcasting VP/COO Ira Rosenblatt has been named President/CEO of Route 81 Radio LLC. The privately held company currently owns 12 radio stations in New York and Pennsylvania.

Stehney to Nashville
Jared Stehney has been named National Sales Manager for the Nashville Trading Zone of Clear Channel Radio. He was previously GSM for Keymarket in Pittsburgh.

Fitzgerald promoted
ABC Radio Networks announced ESPN Radio Director of Sponsorship Sales John Fitzgerald has been upped to VP/ESPN Radio Sales. He'll be based in NYC and lead all ad sales for ESPN Radio's 24/7 programming.

Addition at SSI
Jennifer Hodlick has joined Syndicated Solutions Inc. as Senior Director. She was previously with Creative Broadcast Syndication.

TM Century
adds Spanish

Madeline Montano has joined TM Century as Regional Manager for its newly created Domestic Spanish Division. Also, Steve Knoll has joined the company as an Affiliate Relations Manager-Comedy.

Regan to lend at GE
GE Commercial Finance Global Media & Communications has named Thomas Regan Managing Director, Origination, making him responsible for generating and overseeing client relationships in the large cap media sector. He was previously with Gefinor Mezzanine Management.


Stations for Sale

Oregon Coast:
Two Class A FMs, $900K/Terms
Washington State:
C-2 FM, Spanish, $1.1M Eastern Nevada:
Class C-1, $1M. Call 805.237.0952
MCH Enterprises, Inc. www.mchentinc.com


More News Headlines

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]





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Media House 2005
And what a food fight we have going into 2006! The Cover alone is worth the download!


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

RBR Analysis
The challenge for Interep
National business has been rebounding this year, but Interep has had to deal with a number of issues that all have to be resolved for the company to get back on track for future growth. The most recent bit of bad news for CEO Ralph Guild and his staff was the loss of Radio One. It was the third major defection in 2004 and 2005, following moves by Citadel and Cumulus to Katz, adding to a public perception that Interep's client base is eroding.
09/12/05 RBR #178

RBR Analysis part 2 - Interep has been dealing with pressure
From its largest bondholder (and 2%+ stockholder), Oaktree Capital Management, which proposed a financial restructuring that would give it control of the company and bring in a new CEO to succeed Guild. Interep's board rebuffed Oaktree and with employees of the rep firm owning voting control, there's not much Oaktree can do so long as Interep stays current on its bond payments. There's no dispute that Interep needs to be recapitalized, but Guild and CFO Bill McEntee are pursuing their own plan that would not give up employee control of the company.
09/12/05 RBR #178


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