Welcome to RBR's Daily Epaper
Volume 22, Issue 18, Jim Carnegie, Editor & Publisher
Wednesday Morning January 26th, 2005

Radio News®

Expect PPM station data in Q2
Arbitron CEO Steve Morris told Wall Street analysts that the Portable People Meter project made steps forward in 2004 and is on track. As previously reported, he's looking for a decision from Nielsen Media Research by mid-year on whether it will participate in this year's Houston test. "We have plans in place to move forward, preferably, of course, with them, but without them if necessary," Morris said. As for where things stand in Houston, the Arbitron CEO said about 1,000 PPM panelists now have the devices installed for the Houston test. The focus currently is on the quality of the panel, but look for some preliminary data this quarter and station-level audience data by the end of Q2. That means there will be some February sweeps data for TV, but "more accurate" data for comparison with the May sweeps. For radio, Morris says the "most critical" thing will be PPM ratings data that will be available for comparison to the spring book.

RBR observation: Keep your eye on Houston. Lots of TV groups are already pushing for PPM, or something like it, to replace set-top boxes - - and radio folks, Arbitron's traditional clients, are slowly warming to the idea (if not the price tag). Arbitron is already claiming success in improving response rates, which was a key concern from the earlier Philadelphia test. Next we'll all be watching to see how the dual panels match up with each other - - and against the current ratings reports from Nielsen and Arbitron. The February print issue of Radio and Television Business Report - The Real Business Magazine - features an in-depth report on the future of broadcast ratings, focusing on Arbitron's PPM and Nielsen's Local People Meter. For a free copy, call April McLynn: 703-492-8191.

Excusing Private Ryan
According to reports, the FCC is prepared to clear the ABC Television airing of "Saving Private Ryan" of any indecency charges. Although a full commission vote is said to be pending, the necessary three votes against such a finding are apparently in place. Perhaps outgoing Chairman Michael Powell telegraphed the decision last month in an New York Times editorial in which he wrote, "Words or actions might be acceptable as part of a news program, or as an indispensable component of a dramatic film, but be nothing more than sexual pandering in another context. That context and the specific facts of each program are reasons the government can't devise a book of rules listing all the bad stuff." (12/6/04 RBR #236) It is also noteworthy that the Parents Television Council, which usually takes a lead roll in organized anti-indecency campaigns, actually endorsed ABC's decision to air the movie with appropriate broadcast disclaimers and warnings issued beforehand. However, other organizations did organize protests, in particular organizations affiliated with the American Family Association (11/15/04 RBR #223).

RBR observation: It is now possible to handicap the voting on the current Commission. Chairman Michael Powell, fellow Republican Kathleen Abernathy and Democrat Jonathan Adelstein, while all decrying the content of much of the edgier programming hitting the airwaves, have been steering a course on the free speech side of the issue. Republican Kevin Martin and Democrat Michael Copps have been calling for stricter enforcement, higher penalties, and in Copps' case, possible license revocations. Noteworthy is the fact that the factions are not split along party lines. The makeup of the Commission after the upcoming wave of comings and goings is completed could radically change the balance of power on this critical issue. If sentiment on Capitol Hill is any indication, we'd bet that Martin and Copps are the ones who will be getting the reinforcements.

PTC less than thrilled with FCC
Parents Television Council reacted strongly to the FCC's decision to clear 36 television programs fingered by PTC for indecency content. The organization not only denounced the decision, it also took the opportunity to endorse a candidate to fill the seat of outgoing Chairman Michael Powell. "The FCC had 36 individual opportunities to provide clarity and direction - - both to families and to broadcasters, but they chose not to do so," said PTC Executive Director Tim Winter. "Instead, the FCC abandoned its public interest responsibility by lumping all 36 complaints into one great mish-mash of imprecision. Furthermore, it took the FCC over three years to rule on at least one complaint and almost two years to rule on several others. That's unacceptable. The FCC should be able to determine and rule within six months time whether a broadcaster has crossed the line." He concluded with a ringing endorsement of one of the frontrunners to assume Powell's seat, saying, "We must have an FCC Chairman who will take this issue seriously and we believe such a candidate exists with FCC Commissioner Kevin Martin. We strongly recommend the President nominate him to be Chairman of the FCC." The PTC statement was countered by blogger Jeff Jarvis, who has been staking out a position precisely the opposite that of PTC. "I have a theory that the people in the FCC - - including even lame prude Michael Powell - - are secretly embarrassed that they have turned themselves into the nation's chief...mouth-washers, that they have kneecapped the First Amendment, and that their tenure will be marked in history for the stupidity of following along with what they thought was a political movement but turned out to be only a few religious nutjobs with no lives."


Eddie Fritts: The year ahead, Part 3
As he looks ahead to the continuing battle in Washington over media ownership rules, in today's installment we asked NAB President & CEO Eddie Fritts to look back at where that issue has already been. This article appears in its entirety in the January debut issue of Radio and Television Business Report - The Real Business Magazine. For a free copy, call April McLynn: 703-492-8191.

What happened to the Congressional support for broadcast deregulation in the 1996 Telecom Act? It seems now that most members of the House and Senate want to pretend that they had nothing to do with that law and are trying to pin it on the FCC.
Media consolidation is a controversial issue - - there is no doubt about that. It is also true that Congress passed the 1996 Telecom Act and left it up to the FCC to fill in many of the details. When the FCC announced its intention to deregulate media ownership rules, I don't think anyone could have foreseen the amount of criticism that was generated. We had groups like Code Pink on the left and the National Rifle Association on the right all united against "Big Media." When you add to that the controversy that swirled over the
Janet Jackson indecency incident at the Super Bowl, it became a rallying cry for opponents of media deregulation. They are energized like never before, and FCC Commissioner Copps has skillfully tapped into that.

Apple Hip-Hopper makes waves
with tsunami slur
Emmis Communications is making amends for a production piece which aired on Hip Hop/R&B WQHT-FM New York which made fun of tsunami victims. Offended New Yorkers are reportedly asking the FCC to fine the station. The song was aired during the "Miss Jones in the Morning Show." "HOT97 regrets the airing of material that made light of a serious and tragic event," said the station in a website statement. "We apologize to our listeners and anyone who was offended. Both HOT97's program director and Miss Jones issued on-air apologies on Monday stating that the material was offensive and should not have been aired. HOT97 takes pride in its community involvement and in the last few weeks has joined with broadcasters nationwide to raise money for victims of the Tsunami. Our relief effort will results in a substantial cash donation."

RBR observation: Incidents like this are a recurring theme, especially in morning radio where competing teams of jocks are constantly trying to make the biggest splash in the market. No matter how obviously bad a bit is to most of us, someone somewhere is going push the envelope too far. The FCC probably has nothing to say here - - it cannot fine a station for bad taste - - but it's best to avoid this sort of situation. We commend Emmis for owning up to the mistake and doing something to atone.

Powell reaction Part 3: NAB/ex-FCC edition
Eddie Fritts has seen NAB Chairman come and go during his lengthy term atop the National Association of Broadcasters. Here are his thoughts on Michael Powell, who has been both an adversary and an ally to the NAB. (Unfortunately for broadcasters, it looks like Powell is set to dish out a heaping helping of adversary in his final weeks of service.) Also on tap today are a couple of watchdogs who also put in time on the FCC's 8th Floor. NAB President/CEO Eddie Fritts: "I have personally enjoyed working with Michael Powell for eight years. While we have shared occasional policy differences, I have nothing but the utmost respect for the intellect, passion, and good humor that he brings to the job. Michael will succeed in whatever endeavors are ahead, and we look forward to working with him as he transitions to his next challenge." MMTC Chair Henry M. Rivera: "Mr. Powell's greatest legacy may be his founding of the federal Advisory Committee on Diversity for Communications in the Digital Age, which is actively fostering minority ownership and career development in the media and telecommunications industries." United Church of Christ's Gloria Tristani: "With Michael Powell's impending departure as Chairman of the Federal Communications Commission, we urge President Bush to appoint an FCC Chairman that will represent the best interests of the American people. An FCC Chairman should be a staunch advocate for the public interest, ensuring that all Americans are served by a vibrant and diverse media. The leader of the FCC should promote a media that reflects the rich cultural diversity of our country. An FCC Chairman also must ensure that the media and telecommunications companies are accountable for their public interest obligations and that they provide affordable access so all Americans reap the benefits of evolving technologies."


Live from Las Vegas
Ad sessions at NATPE look at
branded entertainment, strategies
NATPE 2005 in Las Vegas hosted two hot ad panel sessions yesterday. The first, "Branded Entertainment: The 411 on ROI," examined new ad models using branded entertainment. How can their effectiveness be measured and how much is too much for the consumer? With the advent of DVR and the declining effectiveness of :30s, the use of branded entertainment has been increasing exponentially. Panelists included Rich Frank, Chairman, The Firm; Marc Goldstein, President/CEO, Mindshare North America; Stacey Lynn Koerner, Executive Vice President, Initiative Media; Tom Mazza, President, Madison Road Entertainment; and Robert Riesenberg, President/CEO, Full Circle Entertainment.

Currently, branded entertainment is starting to hit a crossroads: It can be extremely effective, as seen with Sears and "Extreme Makeover," for example, but agencies and advertisers are looking for a common currency to trade off of and a way to reliably measure ROI. Some advertisers have been able to capitalize on it; others feel branded entertainment amounts to nothing more than throwing money away with only a chance of success. Some find it most successful using other, traditional ad elements immediately following exposure. | More... |


Conference Calls Q3 2004
Arbitron outperformed in Q4
Arbitron's stock jumped Tuesday after Q4 earnings of 31 cents per share beat the Wall Street consensus by two cents. Revenues for the quarter were up 11.4% to 72.9 million. For all of 2004, revenues were up 8.4% to 296.6 million. Earnings per share for the year were 1.92, compare to 1.63 in 2003. Arbitron told Wall Street to expect revenue growth of 5-7% in 2005.

Broadcast up double digits at NY Times
The broadcast group (8 TV stations, 2 radio) was the shining star in Q4 at the New York Times Company, with revenues up 14% to 46 million and operating profit up 24.6% to 16.3 million. Political revenues were the main reason - - at 9.5 million, compared to 3.2 million a year earlier. For the total company, Q4 revenues were up only 2.5% to 903.9 million, with ad revenues up 3.2%. Earning per share were up two cents from a year ago to 75 cents. For 2005, the company is projecting that revenues will be up in the mid single digits. By the way, December revenues for the broadcast group were up 1.8%.

Broadcast powers Meredith growth
Q4 revenues for Meredith Corporation were up 5% to 294.6 million, but that included a drop in ad revenues for the publishing division. Tipping the scale the other way was the broadcast division, where revenues soared 22% to 89.9 million and operating profits shot up 64% to 32.2 million. Excluding recent acquisitions and political revenues, the company said broadcast revenues were up 3% for the quarter. "Broadcasting benefited from political advertising and improved ratings for its newscasts. We improved profit at every station in the group," said Meredith CEO Bill Kerr. The company said broadcast pacings are currently up in the low single digits. Meredith's broadcast group consists of 14 TV stations and one radio station.


Adbiz©

Forehead ad space goes for 37K+
We now know that a unique idea and a bit of chutzbah is worth at least 37,375 bucks. That's how much Andrew Fischer of Omaha, NE got from auctioning the advertising space on his forehead on EBay. Melody de Rivel won the bidding and has placed the logo of SnoreStop, a product of her family's company, Green Pharmaceuticals, on Fischer's forehead. It's only a temporary tattoo and it will come off after one month.

RBR observation: Both Fischer and SnoreStop are enjoying the free publicity from this stunt. But we won't be surprised to see the bidding drop dramatically if Fischer tries to auction his forehead space for a second month.

Super Bowl nets ROI for studios
Spending 2.5M on a Super Bowl ad is a pretty good bet for the big movie studios, according to experts at the University of Wisconsin-Eau Claire. Marketing gurus at UW has been studying the SB for five years. The simplest numbers tell the story: Movies with a Super Bowl presence have tended to double the first weekend and first week box office of non-Super Bowl movies. UW says this trend holds up under more rigorous study as well. UW professor Charles Tomkovick noted that 18 movies bought time during the game in 2002 and 2003, and of them, 15 earned top box-office honors on their opening weekend. Two of the others debuted at #2, with the final movie coming in at a still-respectable #4.

Putting golf sponsors in the spotlight
The equipment pro golfers use to put in a putt is very important - - generally, a golf equipment manufacturer has crafted the putter, and the golfer's attire makes him a walking billboard. Some 925M was spent on such sponsorships in 2004, up from 855M in 2003. Unlike regular, immobile billboards, however, the walking, talking, driving putting billboards of the PGA spend quite a bit of time on TV before a precisely-targeted home viewing audience - - 650 hours in 2004, according to Nielsen Sports. Now Nielsen's Sponsorship Scorecard and the PGA Tour have inked a deal in which the research giant will quantify the exposure received by sponsors, so they and the players can get the best return on their investment. The deal is good for two years.

Consumers a bit more confident
US consumer confidence, as measured monthly by the Conference Board, edged up slightly in January - - the second straight month of modest upward movement. The group's Consumer Confidence Index rose by 0.7 points in January to 103.4. The Present Situation Index, measuring how things look today, increased to 110.9 from 105.7. The Expectations Index, which looks to the future, however, declined to 98.4 from 100.7. "Despite the slight retreat in expectations, consumers' short-term outlook remains favorable and suggests the economy will continue to expand throughout the first half of this year. And, recent advances in the Present Situation Index, now at its highest level since May 2002, suggest consumers will not dramatically alter their spending in the months ahead," said Lynn Franco, Director of The Conference Board's Consumer Research Center.


March Radio & Television Business Report

2005 Technology Odyssey..
The Changing Landscape
Ipods, DTV, FCC, Technology, People Meters. If you are in Business to Do Business in today's New Environment, Position your Company, Technology, Programming and what you do that Radio and Television executives need to know as budgets are being put into action. The Landscape is Changing Fast - March 2005 report is ahead of the curve as first quarter is closing fast.

Advertising/Marketing Placement - Contact
Jim Carnegie - 813 909 2916
June Barnes - 803 731 5951

Not Receiving The Official Business Media Magazine? Then here is your Last Chance to a Trial - Read. Your order must be place by February 18th.


Media Markets & MoneyTM
Share and Sharon alike
Barbare and William Stanley are buying a pair of western Connecticut stations from Johnson Development. Their Willpower Radio is picking up WKZE-AM Sharon and WKZE-FM Salisbury for 2M - - 1.4M for the stations and 600K for associated real estate. The stations are in the northwest portion of the state, and although neither shows up in the ratings as near as we can tell, BIA is said to list the FM as part of the Poughkeepsie NY market.

Would Steve Morris sell Arbitron?
With the recent attention focused on the possibility of a takeover bid for Arbitron from VNU (1/25/05 RBR #17), you knew someone would ask the question of Arbitron CEO Steve Morris in yesterday's quarterly conference call. What would he do if someone tried to buy the company? "We do what is in the shareholders' interest," he replied. "If somebody makes an offer for the company and the board considers it a fair and reasonable offer - - the best thing to enhance shareholder value - - that's what we'll do," Morris said.


Washington Beat
Life in the DMZ
If it seems that there is a shooting war in progress between the forces of decency and the forces of free broadcast program content, then the television stations of Washington DC are precariously situated right in the line of fire. Of the 36 complaints cited by the Parents Television Council for indecent content, 35 were attached to Washington stations. Fox Television's WTTG 5 was hit with nine of the complaints. NBC/GE's WRC 4 picked up 12, Tribunes's WBDC 50 (WB) took 13 hits, and Allbritton's WJLA 7 (ABC) was nailed once. Only Hearst-Argyle's KMBC 90, which brings ABC programming to Kansas City, was in a location far removed from PTC's Washington-area HQ. Just as it is in real estate, when it comes to being named in an FCC indecency complaint, it appears that location is everything.


Transactions
KFON-AM, KKLB-FM, KTXZ-AM & KELG-AM Austin (Austin, Elgin, West Lake Hills & Manor TX) from Jose Jaime Garcia to BMP Austin License Company

WYTH-AM Atlanta (Madison GA) from Central Georgia Broadcsating Co. to Craig Baker and Debra Baker.

| More... |


Stock Talk
Earnings reports boost stocks
Strong earnings reports, including some from some publishing/broadcasting companies, gave stocks a boost and ended a four-day losing streak. The Dow Industrials rose 93 points, or 0.9% to 10,462.

Radio stocks joined in the advance. The Radio Index rose 2.267, or 1.1%, to 216.469. Arbitron shot up 8.2% on its strong earnings report. Disney gained 3%, although it isn't reporting earnings this week.


Radio Stocks

Here's how stocks fared on Tuesday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

40.36

+3.06

Jeff-Pilot

JP

50.03

+0.05

Beasley

BBGI

15.81

unch

Journal Comm.

JRN

17.01

+0.01

Citadel CDL
14.00 -0.11

Radio One, Cl. A

ROIA

15.99

+0.32

Clear Channel

CCU

32.32

+0.27

Radio One, Cl. D

ROIAK

15.98

+0.26

Cox Radio

CXR

15.85

-0.13

Regent

RGCI

5.30

+0.11

Cumulus

CMLS

13.76

-0.08

Saga Commun.

SGA

16.46

+0.31

Disney

DIS

28.80

+0.85

Salem Comm.

SALM

22.17

-0.01

Emmis

EMMS

17.79

+0.04

Sirius Sat. Radio

SIRI

6.24

+0.15

Entercom

ETM

31.66

-0.17

Spanish Bcg.

SBSA

10.38

+0.10

Entravision

EVC

7.62

+0.18

Univision

UVN

26.90

+0.30

Fisher

FSCI

49.40

-0.04

Viacom, Cl. A

VIA

38.06

-0.18

Gaylord

GET

39.30

-0.39

Viacom, Cl. B

VIAb

37.60

-0.12

Hearst-Argyle

HTV

25.52

-0.09

Westwood One

WON

24.97

-0.03

Interep

IREP

0.70

-0.02

XM Sat. Radio

XMSR

32.69

-0.54

International Bcg.

IBCS

0.01

unch

-

-

-

-

-



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On the PR campaign for radio.

Solid presentation and common sense basics could be logical keys to radio's next renaissance. Great sounding, well done radio doesn't have to add cost. Encourage the staff and promote their strengths.. Know the signal area and the fact that every station has a different set of circumstances, challenges, competitive arena and market opportunities. Local content, local connect. Listeners may not offer a concise explanation but they pick up on canned, non-local service and tune-out. Too much voice tracking and syndication hurts talent development. Overly researched playlists can build boring stations and alienate listeners starved to hear more tunes. Variety can be mass-appeal, rather than eclectic. Content is king and local, local, local will keep radio on top as the media's best one-on-one communicator and cost-efficient ad vehicle. Radio sells itself 24 / 7. When your station sounds great and appeals to clients and their customers, it makes money. Consider our mandate as coordination of clusters while making sure excellent material - programming, commercials, local services, enthusiasm - is properly packaged and consistently on the air that's licensed to us.

Clark Smidt
Broadcast Advisor
Boston, MA


Arbitrends

Arbitron
Market Results
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Upped & Tapped

Bisset to BE
Broadcast electronics has named long-time broadcast engineer and equipment sales manager John Bisset as its Northeast Regional RF Sales Manager. He will be based in Manchester, NH.


Stations For Sale

Top 100 SE Market
Powerhouse 50 KW AM and Class A LPTV with Full market coverage. Great opportunity for an aggressive, innovative operator!
Cliff at Clifton Gardiner & Co (303)758-6900
[email protected]


More News Headlines

Competing Media

Newspaper duopolies run into government scrutiny
The DOJ is said to be looking into the expansion plans of a pair of newspaper publishing companies, both of which also have broadcast holdings. Gannett Co. and The New York Times Co. are the two publishers/broadcasters. Gannett's proposed acquisition is Home Town Communications Network, which operates papers in Michigan, Ohio and Kentucky. The NYT deal being scrutinized is for daily giveaway Metro Boston, which would double up with its Boston Globe. The Wall Street Journal noted that these are relatively minor deals, and the fact that they are drawing the government's attention does not bode particularly well for bigger deals which may be coming down the pike. It could also have implications for the FCC's next step in its court-ordered reconsideration of media ownership rules, which address broadcast/newspaper cross-ownership. The FCC must either rewrite the rules, better justify them, or successfully overturn that Third Circuit order at the Supreme Court level. The Third Circuit indicated it did not have any philosophical objection to such combinations, but questioned the newspaper / television / radio ownership caps the FCC attached to them.






January Digital
Solutions Magazine

No more political money or more Olympics advertising. In '05 you're going to have to make money the old fashioned way - earn it. Keep up on trends and figuring new ways to earn ad dollars. The need is serious for a business-oriented publication. In radio or television, many of the challenges are the same -each industry can learn from the other.
No fluff. No hype. Just business.

November Zinio Solutions Magazine
Read RBR in 2 simple steps:
1.Create a simple account with Zinio and download the Zinio Reader.
2. You can then download the January Issue of RBR


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

BizWeek jumps on
Arbitron takeover talk
Inside the broadcasting industry, the possibility of Nielsen parent VNU someday making a takeover bid for Arbitron has been talked about for so long that there was no noticeable impact from BusinessWeek being the latest to report on such rumors. In fact, Arbitron's stock price fell when the story "The Dutch May Tune In Arbitron" was posted on BizWeek's website. RBR observation: A takeover bid by VNU has been expected since the day Ceridian announced plans to spin Arbitron off into a separate, publicly traded company. Steve Morris has staked the company's future on PPM, so he's not likely to be willing seller until he's established just how much PPM is worth. He also has the problem that there's only one logical buyer for Arbitron, so he wants to be able to deal from a position of strength when VNU comes calling to talk merger. 01/25/05 RBR #17

Publisher Observation: The End to a New Beginning for Broadcasters
Broadcasters have no time to waste and no time for a do over. Chairman Powell's resignation is not a surprise. Go back to Dreg-Day June 2nd 2003 to when Radio got Re-Reg and TV got de-Reg when the FCC, voting 3-2, reworked its ownership rules and then Sen. John McCain and crew wiped the smiles off their faces - Senators grilled Powell & Co. for Monday's vote - The scene resembled a carnival shooting gallery. RBR Observation then: Sen. McCain's borrowed prayer: "May the words we utter today be tender and sweet because tomorrow we may have to eat-them." This is just the first act! Think of what waits ahead and 2005 is the year for pro-active measures. 01/25/05 RBR #17

Eddie Fritts: The year ahead, Part 2
What are the biggest issues on Capitol Hill facing TV next year?
I think it's safe to say that the digital television transition and issues related to broadcasters' return of analog TV spectrum will be a priority in the next session of Congress. The fact is that broadcasters have done our part. The vast majority of TV stations are on air in digital, and there is an enormous amount of HDTV entertainment and sports programming on the air. Now it's up to consumers to go out and buy the DTV sets, which is something we can't control. 01/25/05 RBR #17

Country stars added
to radio campaign
Country artists have been added to the initial round of spots, which featured Hip-Hop, Urban and CHR acts. The new voices for the "Radio. You Hear It Here First" campaign are Lee Ann Womack, Brad Paisley and LeAnn Rimes. "I literally grew up at radio stations. My dad was a DJ," Hear her spot praising radio in this campaign that's supposed to show how terrestrial radio is battling back against satellite radio.
RBR observation: You knew we'd be Googling this trio. If you'd like to know more about Lee Ann Womack, tune in this Friday at 7:00 pm ET on Sirius Satellite Radio (New Country, channel 31) for the premiere of her new album "There's More Where That Came From." 01/25/05 RBR #17

Ferree following Powell out the door
Media Bureau Chief Ken Ferree is also on the way out, in the same time frame. Perhaps the greatest tribute to this outgoing chief is the fact that a blueprint to endow the latter effort with a date certain is widely known as "The Ferree Plan." RBR observation: The twin departures of Powell and Ferree are not all that surprising. As long as Powell has been on the bridge barking out orders, Ferree has been the officer most responsible for seeing that they were executed. They have always seemed to be closely intertwined. 01/25/05 RBR #17

A brief recap of the Powell FCC
Michael Powell was appointed to the FCC by Bill Clinton in 1998, and ascended to the chair under George Bush in 2001. A firm proponent of market forces, he generally pursued deregulatory policies during his time on the 8th Floor. His broadcast legacy is, to say the least, mixed. He attempted to extend the loosening of radio rules which took place in 1996 to television via the infamous rulemaking. RBR observation: Powell will forever be intimately tied to the issue of broadcast indecency.
01/24/05 RBR #16


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