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Volume 22, Issue 180, Jim Carnegie, Editor & Publisher
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Wednesday Morning September 14th, 2005
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Radio News®
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 Randall Mays: Resistance to :30s is illogical
Clear Channel CFO Randall Mays told a Merrill Lynch conference that what's surprised him about Less is More (LIM) is that demand for :30s is less than expected, but he expects that to change over time. "It's ironic to me that we even have an issue with this. The fundamental issue is with the advertising agencies, rather than with our actual advertisers. If you look at the 15-second commercials, we have 90% more 15-second commercials [than a year ago] and average unit rates for 15-second commercials are up substantially. So, it's ironic and somewhat illogical today that you can talk to an advertising agency and they'll say 'I love 60-second commercials and I love 15-second commercials, even at the types of prices that you're [charging], but a 30-second commercial doesn't make sense.' It's really hard for me to understand why they can get their message across in 60 seconds and they get it across in 15 seconds, but they can't get it across in 30, especially with a :30 being at a price point that is far more attractive than the 15," Mays said. The slide he displayed showed that compared to a year ago, Clear Channel Radio is selling over 30% less :60s, nearly 50% more :30s and nearly 90% more :15s. Another slide showed that CC Radio's yield per minute is up 39% from the beginning of the year through June. With ratings rising, TSLs rising and yield per minute rising, Mays sounded confident about the long-term gains to come from LIM, despite the current drag on revenues.
RBR observation: Mays was also upbeat on HD Radio and multicasting, noting that it is a "chicken and egg" situation, so broadcasters have to put new formats on HD2 channels to build demand. Mays didn't mention the HD Radio programming consortium proposal we recently disclosed (9/6/05 RBR#174), but did say that with its large number of stations, CC Radio can import a new format into a market for "virtually nothing." He mentioned as one possibility putting a Country station on HD2 in New York. Rather that fragmenting current audiences, Mays said multicasting should increase the number of formats and attract more listeners to terrestrial radio.
Sparknet to appeal
A day after the US District Court in Chicago ruled against Sparknet in its infringement lawsuit with Bonneville over the use of its Jack-FM trademarked slogans (9/13 RBR #179), Sparknet says it will file for an appeal today on the case in the US Court of Appeals, 7th Circuit. The company says as well that [alleged] infringers of its intellectual property should beware that the decision has no affect on its ongoing anti-infringement campaigns.
 Viacom and Comcast
preparing joint venture?
Multiple reports say Viacom and Comcast will soon announce a major joint venture to create several new cable networks, plus video-on-demand and other offerings. However, Tom Freston, who'll be CEO of Viacom after its split from CBS Inc., denied at a Merrill Lynch investor conference in California that any such deal is imminent. He said the company is considering various options and has talked with different outside partners - - "But we haven't made any decision yet." The rumored joint venture would link Viacom's MTV Networks, one of the leading cable programmers, with Comcast, the biggest MSO. According to the New York Post, which broke the story yesterday, the joint venture would be headed by John Sykes, who was formerly CEO of Viacom's Infinity radio operation, but whose experience is mostly in cable. Once Viacom splits in the next few months, MTV Networks will remain with the new Viacom, so the joint venture with Comcast would not have any ties to the broadcast operation, to be called CBS Inc.
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 McCain, Feingold
face down PAC attack
A rider has been attached to H.R. 3058, an appropriations measure meant to keep several government agencies up and running for FY 2006. It would create a loophole in the campaign finance law which would benefit one group of Americans, and one group only - - incumbent senators and representatives. The co-authors of the Bipartisan Campaign Reform Act want it stricken from the bill. The rider would allow what appears to be a legalized money-laundering scheme - - sitting federal legislators would be permitted to give unlimited cash to their national party committee, which could then give it right back to the candidate, "...effectively subverting individual and PAC donor contribution limits...," wrote John McCain (R-AZ) and Russ Feingold (D-WI) in a letter to their colleagues. "These campaign finance laws and contribution limits have been enacted by Congress to protect citizens against corruption and the appearance of corruption," the duo wrote. "Let's be very clear on another point - - this provision benefits no one but incumbent Members of Congress by allowing them to circumvent those same contribution limits by which their opponents will be forced to abide." They continued, "At a time when so many citizens of our country are in dire need of our assistance, why should we seek to create a new incumbent protection program on an appropriations bill?" The conclude saying any such measure deserves full debate - - anything else "...is a poor way to legislate and sets a dangerous precedent."
RBR observation: They should call this MOD - - the Mockery of Democracy Act of 2005. We live in a time when the science of gerrymandering is so refined that incumbents are safer than at any point in our history - - in the House, they're practically invulnerable. Further, there is a seemingly universal belief that there is no way to write campaign finance law that will be able to effectively stem the tide of cash flowing into the electoral process. Given that incumbents generally have a cash advantage, don't need the money as desperately as a challenger, and probably can get it anyway, it therefore seems incredible that anyone would attempt such a blatant and patently unfair power grab as this. We also hope, should this rider make it into law, that the courts will quickly shoot down a rule which throws such an extreme advantage toward incumbents. But we hope McCain and Feingold are successful in their attempt to shame their colleagues into preventing it from ever getting that far.
 Sirius Music Channel debuts on Sprint
Sprint customers will be the first wireless customers to get Sirius Satellite Radio programming via their mobile phones. Sprint announced the availability of Sirius Music, which offers unlimited access to 20 commercial-free music channels, plus a channel devoted to exclusive artist interviews and performances. Formats include Pop, Hip Hop/R&B, Rock and Country; Jazz, Blues, Broadway, Electronic and Dance; '60s & '70s/Vinyl; '70s & '80s/Rewind; '80s Glam/Hair Nation; '80s Alt/First and Alt Rock/Alt Nation. Customers can purchase Sirius Music by typing in channel 23 in the Sprint Media Player or by going to the Music & Radio folder and selecting the new channel; the cost is 6.95 per month for unlimited access.
RBR observation: Indeed, the cell phone is becoming the multimedia device for both current and new generations. Boomboxes will become simple docking stations for the phones, with amplified speakers and a quick battery charger. Maybe the same for OEM car radios, unless they offer their own web screen and interactive wireless connection. Sirius is smart in realizing it should enter the mobile wireless game ASAP, because when all broadband Internet streaming and surfing becomes available for 6.95 a month on cell phones (or car "radios"), satellite radio overall may become obsolete.
The great outdoor?
Revenue growth reports don't lie: Billboards are where it's at. As television audiences continue to fragment and radio struggles with LIM and fresh competition from space, the venerable roadside sign is enjoying an infusion of fresh cash. And broadcasters are among those contributing to the medium's success. According to AdAge.com, various scorekeepers have pegged outdoor growth at between 7%-9% so far this year. TV, in particular, is said to be snapping up prime outdoor locations, on billboards, public transit, and wherever else a sign can be posted, touting their new fall shows. One expert said that clients, concerned about audience diffusion on TV, have demanded a change from the old-fashioned 90-10 media mix, where 90% of the budget goes to television with the rest spread around whatever's left. The 10% side of that equation is increasing at TV's expense, and outdoor is a prime beneficiary.
RBR observation: We drive home past a billboard every day which has an eye-catching headline to the effect that a woman will be president of the USA this fall. It refers to some new network show starring, we think, Geena Davis, but we can say without any doubt that these particular roadside billboard impressions are a complete waste in this community - - we don't watch anything here except local access cable. (Right.)
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Adbiz©
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CBS enlists Valpak for primetime push
CBS' Monday primetime comedies will be promoted by direct marketer Valpak in a 43-million mailing and Internet streaming video. The campaign represents the eighth promotional partnership with CBS and the first weaving of moving images and audio by the media brand and company's Internet extension www.Valpak.com. The King of Queens headlines the promotion and sweepstakes, Live Like a King, appearing in artwork on the Valpak envelope. Streaming video of CBS's Monday night comedies is directly linked via the sweepstakes entry page at Valpak.com. Within the envelope is the programming schedule promoting the stars of CBS Monday. Blue envelopes mail to households over four weeks to every region of the U.S. in 110 DMAs through 9/23. The CBS campaign carries the tag "Comedy is King on CBS Monday" and highlights the return of the show. Joining it is Two And a Half Men and the new shows, How I Met Your Mother and Out of Practice. Envelope messaging directs consumers to tune in on Monday night and enter the sweepstakes for the chance to "Live Like a King." One grand prize winner will be awarded first-class airfare for two to Hollywood, luxury hotel accommodations, $500 spending cash and will attend a taping of The King of Queens.
 Lowe's moves to BBDO
Lowe's has reportedly moved its account to BBDO NY, after a review that began in early May. Lowe's was previously with McCann Erickson Worldwide NY, which also took a hit recently, losing Bank of America. Buying has also moved from Universal McCann to OMD. Lowe's spent 366.5 million on media in 2004, according to TNS Media Intelligence. The review included TBWA Worldwide, Deutsch and its in-house media department; and the incumbents.
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RBR Epaper LIVE at NAB Philly
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Read it on a 42" Plasma Screen
Location:
On the Right Side of the NAB Radio Store Entrance.
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| Media Markets & MoneyTM |
Bill Press gets backing
 Bill Press has gained financial backing for The Bill Press Show
(9/13 RBR #179), his new radio program distributed by Jones Radio Networks. Pharmaceutical executive Milan Panic and money manager Richard Blum, the husband of Sen. Dianne Feinstein (D-CA), are among the investors. The former co-host of CNN's Crossfire and The Spin Room, Press is trying to raise 2 million for JRN to distribute his show. He has currently raised 450,000 from 11 investors, according to an August filing with SEC.
RBR observation: Seems this model is becoming more common - - shows go to national syndicators to get the distribution, manpower, contacts and infrastructure, but need to bring the financial support as well. Advertising dollars aren't enough for many new national debuts.
ESP noncom is non-starter
Did the FCC head-off a new broadcast TV competitor in the Wichita-Hutchinson KS DMA? Probably not, but the attempt of ESP Technology Community Broadcasters to enter the market with a new Channel 19 facility out of Colby KS has been shot down. ESP claimed it was non-commercial, making it eligible to apply for the NCE allocation. The FCC countered that ESP has to do more than simply claim noncom status. It must prove noncom status. "Under the Commission's basic eligibility requirements, non-profit television organizations that are not governments or schools that seek to operate on a reserved channel must establish their basic eligibility by demonstrating that a majority (more than 50%) of their governing board is composed of representative community elements (e.g. businesses, civic groups, professions, religious groups, schools, government). All ESP had, apparently, was a pair of directors in Abilene. And not even the Kansas Abilene, but rather the one in Texas. With no demonstrated link to Colby, the application for the CP was turned down.
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| Washington Beat |
Katrina figures to keep DTV on track
Capitol Hill already faced a major distraction thanks to the pair of seats on the Supreme Court bench when Hurricane Katrina entered the picture. Katrina figures to be an even bigger drain on Congressional attention than the SCOTUS situation, and certain legislative items will be tabled, or even eliminated. That does not apply to upcoming legislation aimed at keeping the transition to digital television on track. If anything, Katrina should have the effect of keeping DTV on the stove, and at least very near to the front burners. The biggest reason is not to bring the benefit of digital television the masses - - that probably ranks third right about now. The #1 Katrina-highlighted reason to complete DTV is to free up communications spectrum for first responders. #2 is to use spectrum auctions to enrich a national treasury that was running in the red even before Katrina laid on what figures to be minimum hit of 100B dollars. According to National Journal's Technology Daily, the Commerce Committees in both houses plan on conducting DTV business next month. Ted Stevens (R-AK) expects to have legislation teed up by 10/7/05, and his House counterpart Joe Barton (R-TX) expects to hit the issue by mid-month.
RBR observation: The storm did one thing - - it gave NAB and NCTA a whole extra month to conduct their toe-to-toe PR slugfest on multicast must-carry.
SHVERA, unamended
The FCC has accepted public commentary and analyzed its rules, as ordered by Congress, as pertain to the Satellite Home Viewer Extension and Reauthorization Act of 2004. Specifically, the FCC was asked if there need be any changes in the existing body of statutory provisions "...regarding the impact of competition in the multichannel video programming distribution market of the current retransmission consent, network non-duplication, syndicated exclusivity, and sports blackout rules, including the impact of those rules on the ability of rural cable operators to compete with direct broadcast satellite (DBS) industry in the provision of digital broadcast television signals to consumers." The short answer is no, the FCC does not believe any changes are necessary.
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| Programming |
 CC's Spanish-language programming
initiative upped ratings
Clear Channel Radio announced its Spanish-language formatted stations have achieved significant increases across a number of audience metrics, according to the Arbitron Spring 2005 book. Highlights include:
* KSJO-FM San Jose, CA, registered a 130% increase in AQH Share.
* Las Vegas-based KWID-FM, increased its AQH share by 83% versus last year
* The first station to flip its format under Clear Channel's Spanish-language format initiative, WWVA-FM serving Atlanta, increased its AQH share by a whopping 312.5% over last year.
* KLOL-FM Houston, an Hurban-formatted station, increased its AQH audience share by 42% after introducing the format in November 2004.
* Albuquerque's KABQ-FM rises from #15 to #6 in the market, after achieving an increase of 126% in AQH share among adults 18-34
* WMGE-FM Miami posted a 24% increase in AQH share over the past year.
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| Transactions |
1.425M KBHT-FM Crockett TX from Nicol Broadcasting Ltd. (L. Tom Nicol) to Weston Entertainment LP (Gregg Weston et al). 25K escrow, balance in cash at closing. [File date 8/2/05.]
1.25M KDJR-FM DeSoto MO from Serendipity Ventures II LLC (Harold S. Vogt) to Family Worship Center Church Inc. (Jimmy Swaggart). Cash less option and LMA payments. LMA/option dated 1/28/04. [File date 8/2/05.]
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| Stock Talk |
Consumer spending worries Wall Street
Best Buy reported earnings which fell short of expectations, making investors worry that consumers are cutting back on spending. The Dow Industrials fell 86 points, or 0.8%, to 10,597.
If there are worries about retailing, you can bet that it will hurt broadcasting stocks. The Radio Index fell 3.080, or 1.5%, to 201.416. A couple of niche players got hit the hardest. Salem dropped 4.2% and Spanish Broadcasting System fell 4.1%.
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| Radio Stocks |
Here's how stocks fared on Tuesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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41.66
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-0.52
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Jeff-Pilot
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JP
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49.98
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-0.09
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Beasley
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BBGI
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14.60
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-0.12
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Journal Comm.
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JRN
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15.79
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-0.18
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| Citadel |
CDL |
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13.12 |
-0.10 |
Radio One, Cl. A
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ROIA
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13.60
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unch
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Clear Channel
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CCU
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33.22
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+0.14
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Radio One, Cl. D
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ROIAK
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13.53
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-0.02
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Cox Radio
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CXR
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14.78
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-0.03
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Regent
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RGCI
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5.15
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-0.14
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Cumulus
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CMLS
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12.20
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-0.27
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Saga Commun.
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SGA
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13.81
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-0.19
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Disney
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DIS
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24.81
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-0.31
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Salem Comm.
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SALM
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17.91
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-0.78
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Emmis
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EMMS
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23.60
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-0.36
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Sirius Sat. Radio
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SIRI
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7.22
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-0.13
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| Entercom |
ETM
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31.14
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-0.54
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Spanish Bcg.
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SBSA
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7.01
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-0.30
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Entravision
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EVC
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7.68
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-0.07
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Univision
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UVN
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25.75
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-0.20
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Fisher
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FSCI
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48.36
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-0.28
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Viacom, Cl. A
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VIA
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34.41
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-0.36
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Gaylord
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GET
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47.55
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-0.20
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Viacom, Cl. B
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VIAb
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34.36
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-0.27
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Hearst-Argyle
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HTV
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25.35
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-0.22
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Westwood One
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WON
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20.31
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-0.25
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Interep
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IREP
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0.56
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unch
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XM Sat. Radio
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XMSR
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35.59
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-0.53
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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]
On the fight over multicast DTV must-carry (9/8/05 RBR #176).
So what's all this arm waving about? A simple word change in the current must-carry rule solves the problem: Cable should be required to carry a six megahertz signal from local the broadcaster, and the broadcaster should choose which six megahertz is to be carried during the transition period. After the transition period, which six megahertz to be carried is a moot point. Cable's capacity is in no way affected by this simple re-wording of the rule.
Martin Jackson
President
MARCOM
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Radio Media Moves
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Trio to head
CBS DC lobbying
As the Viacom split approaches, Les Moonves has named Martin Franks Exec. VP of Planning, Policy and Government Relations for CBS Corp. He had been a Viacom Sr. VP (and once in the running for head of the NAB). In turn, Franks named Gail MacKinnon to be Sr. VP, Washington, for CBS Corp. She has been a Viacom VP of Government Relations. Joining them is Anne Lacy as Sr. VP for Regulatory Policy. She is a Capitol Hill and FCC veteran and a Viacom VP of Regulatory Affairs since 1998.
A Lady in Boston
Veteran Boston radio personality Lady D has joined Infinity's WBMX-FM to host evenings.
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Stations for Sale
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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
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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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September Digital Magazine Now Available
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Media House 2005
Churn, baby, Churn - An inside look at the churn of satellite radio
Read RBR/TVBR in 2 simple steps:
1.Create a simple account with Zinio and download the Zinio Reader.
2. You can then download the
September Issue of RBR/TVBR
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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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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."
09/13/05 RBR #179
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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ABCRN Producer
ABC Radio Networks needs a motivated, creative, talk radio producer for a nationally syndicated daily talk show targeted to women. Must have a love for news and current events, possess superb writing skills, a terrific sense of humor, and work well under pressure. No Calls. EOE
See Radio Careers
GSM Nations Capital
Washington DC Business Talk station has an immediate GSM opening. Must have proven experience in large to major market sales. Full benefits added incentives and extraordinary growth potential. AE positions also available.
See Radio Careers
Account Executive
Radio People of Jackson, MS (WUSJ, WYOY, WJKK and WIIN) are interested in talking to any displaced sales executives from the Gulf Coast area. Nancy Fletcher 601-956-0102 EOE
See Radio Careers
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