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Welcome to RBR's Daily Epaper
Volume 23, Issue 180, Jim Carnegie, Editor & Publisher
Friday Morning September 15th, 2006

Radio News ®

All the news that's fit to deep-six?
Senator Barbara Boxer (D-CA) apparently was on to something at the Kevin Martin FCC re-nomination hearing earlier this week. She wondered who "deep-sixed" a draft study on localism which showed results tending to support an anti-consolidation position. According to the Associated Press, a former FCC attorney says that "every last piece" of the report was to be destroyed without question. The orders were said to come from senior management. The study found that stations with local ownership included five minutes of local news coverage on average than market counterparts owned by distant corporations; and that local stations had three-and-a-half more minutes of local on-the-spot reporting. Martin told Boxer, who received the report from an anonymous FCC source, that he had no idea the report even existed. Martin had it made public before the day was out. It's based on data fro the Project for Excellence in Journalism, a database of nearly 4.1K separate news stories, on five days, on 60 stations, in 20 DMAs. Among its finding, the report notes that "Economies of scale in program distribution favor non-local content. Simply, given a fixed cost of producing news content, multi-station owners can spread those fixed costs over more stations by distributing the same content across many localities. This content will be non-local for most localities."

Streaming revenues sparse
Internet streaming may be a natural brand extension for radio companies, but Lehman Brothers analyst Anthony DiClemente says efforts so far just aren't generating much in revenues. Meanwhile, those online efforts are further fragmenting the listening audience. Thus, DiClemente continues his "Negative" view for the radio sector. "With Internet radio usage growing at just a 7% pace, Internet radio growth is not likely to have a meaningful impact on current broadcasters' topline growth, as a coherent monetization effort has yet to emerge," DiClemente said in his analysis. He thinks it will be difficult for radio companies to derive significant revenues from Internet streaming unless they switch to a subscription-based business model, or ad revenues pick up. He notes that some Internet radio alternatives are offering unique advertiser positions on exclusive content. Some Internet-only audio competitors are charging for subscriptions to some of their channels, such as LaunchCast on Yahoo!, AOL Radio (including XM) and MSN Radio. Broadcasters have so far stuck with the advertising model, although he notes that Clear Channel recently announced a cellular phone deal to deliver content from WHTZ-FM New York for 2.99 a month. DiClemente thinks Clear Channel and CBS are on the right track by offering Internet streams from many of their stations, along with unique off-air content, on a single site - and promoting it uniformly across their station websites. Such consistent branding, he says, could help drive ad sales.

RBR observation: Pay radio is still a tough sell, even if it is a lot cheaper to send audio out over the Internet than via expensive satellites. We wonder how many people actually pay the subscription fees for the "premium service" that takes you beyond the free channels of the online audio sites. Don't forget, there are costs associated with collecting 3.99 a month from a subscriber, so a subscription model actually makes it harder to get to the break-even point.


Another down month for Tribune
Once again, Tribune Company saw revenues decline for both its publishing division and the broadcasting and entertainment group in August. TV revenues fell 1.2% to 90.7 million, with the stable of mostly WB-soon-to-be-CW affiliates not benefiting from the political ad windfall being enjoyed by other TV groups. One bright spot was higher Chicago Cubs ticket sales, which gave radio/entertainment a 1.2% boost to 36.3 million. Only a small portion of that comes from the company' lone radio outlet, WGN-AM Chicago. Newspaper ad revenues fell 2.3% to 229 million. Retail crept up 1.3%, but national fell 10.9% and classified was off 1%. Circulation was also down, off 6.2%, so total publishing revenues fell 2.1% for the month to 291.5 million.

Sulzberger cuts own compensation
New York Times Co. Chairman Arthur Sulzberger Jr. has sent employees a letter announcing that he and cousin Michael Golden, Vice Chairman, will not be getting any stock-based compensation for 2006 or 2007. Instead, the roughly two million bucks each year will be distributed to employees for "exceptional performance." As the two members of the founding Ochs/Sulzberger family in senior management, Sulzberger and Golden, who is Publisher of the International Herald Tribune, said "it is our turn" to rise to the challenges facing the company as previous generations of their family had done. The new bonus pool will be for employees who do not qualify for the company's annual bonus plan for executives. The stock and options will be distributed across all units of the New York Times Co., based on their relative size, with the recipients to be selected by senior management of each unit. The move comes as The NY Times Co., like many other newspaper groups, is attempting to adapt to a changing media landscape by focusing on expansion in online and other new media areas. The company announced plans this week to sell off its TV group as part of that refocusing
| Read the letter |

RBR observation: In a time when the directors of public companies are being criticized for awarding ever higher compensation to top executives, regardless of whether their performance is good, mediocre or poor, Sulzberger and Golden deserve credit for putting the good of the company ahead of pumping up their own already sizeable fortunes. No matter how many times we have heard the truism that you can't really achieve growth by cutting payroll and other overhead costs, it seems most companies are trying to do just that. Small wonder, since Wall Street encourages just that sort of short-sighted behavior.


BIAfn acquires DIN in first move to consumer desktop
BIA Financial Network is well known within broadcasting for its databases, mapmaking, appraisals and investment funds, but now it is making its first move to the consumer computer desktop - albeit via radio and TV station websites. BIAfn has acquired Digital Information Network (DIN), which already delivers its custom-branded desktop weather and alerting applications via the websites of 85 TV and radio stations. BIAfn expects to grow that number and will unveil the newest version of the software, called ActiveAccess, at next week's NAB Radio Show in Dallas. "In our core practice, we see the need for media companies to aggressively capitalize on their digital assets, which makes ActiveAccess a perfect compliment to our clients' existing business strategies. What we are offering our media clients is prime real estate on the most viewed device of our time, the computer desktop. With the acquisition of DIN and the continuing development of ActiveAccess, we are positioned to help our clients achieve their goals in this emerging digital environment," said BIAfn CEO Tom Buono.

Dems hope to cash in
on last minute list

A former aide to President Bill Clinton is getting set to pass the hat in an effort to bolster Democratic prospects, both to take advantage of a seemingly favorable electoral environment and to try and counter the Republicans' own spending plans. Among his target contributors is the brother of radio's own Norman Waitt Jr., Gateway founder Ted Waitt. The Clinton aide spearheading the effort is Harold Ickes. His plan is to re-enlist wealthy democrats who contributed cash during the 2004 race but have yet to be heard from this year. Ickes is aiming for 25M to earmark for close races and ballot initiatives. According to most indicators, Democrats have been much more competitive with Republicans this election cycle when it comes to fund-raising, and have outpaced the Republicans in some categories. However, the Democratic National Committee has spread its cash around in an effort to build the party and contest races in all 50 states, while the Republican National Committee has been able to save its fire for the key races. Ickes' organization is called the September fund, and is planning to use the loophole for 527 groups, allowing it to buy ads favoring one party over another but not one specific candidate over another. September Club will join organizations like MoveOn.org on the Democratic side, and will be countered by Republican groups like Club for Growth and Progress for America.

RBR observation: It looks like the cash will keep on coming right up until the last second, adding bulk to what already is shaping up to be a banner political year, especially if you're in hotly contested territory. The cautionary lesson from 2004 is a reminder to politicians are the most seasonal of customers. Be sure to take care of key clients who are there for you year-in, year-out and year-round.


Ad Business Report TM

CBS Radio will stream Advertising Week 2006 events
CBS Radio will serve as the exclusive provider of streamed and on-demand audio content of Advertising Week 2006. Beginning on /25, several of the five-day event's mix of keynotes and panels, conferences, awards shows and special programs will be made available via www.cbsradio.com. In addition, CBS Radio will present a four-part keynote speaker series, "Radical Connections," which will highlight industry visionaries and innovators whose ideas are on the forefront of today's consumer market. Each speaker presentation will be held at 8:30AM at the famed Museum of Television and Radio, and followed by a question and answer period with attendees. The "Radical Connections" Speaker Series lineup includes: Tuesday: Robert Kennedy Jr., environmental activist; Wednesday: Jon Kamen, President and CEO, @Radical Media; Thursday: Matt Freeman, President and CEO, Tribal DDB; Friday: Mike Murphy, Chief Revenue Officer, Facebook. CBS Radio's KLSX-FM LA Morning Man Adam Carolla will help kick off Advertising Week 2006 9/25 as host of AOL's Amp'd Up concert at the Nokia Theatre featuring chart-topping act Gnarls Barkley.


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]

REG.-NAT. SALES/STATION REPRESENTATION
Stuart J. Sharpe/Kevin S. Adelstein/Gail F. Lawing/Beth L. Lesser, Regional Reps Corp., office 216-781-0035, Stuart 216-272-8442, Kevin 216-702-2569, Gail 404-307-3194, Beth 214-621-5353, Hilton Anatole, [email protected], [email protected], [email protected], [email protected]


Media Business Report TM
111 take Belo buyout offer
Belo Corporation reports that 111 people took the company up on its voluntary severance offer and most will exit the newsroom of the company's flagship Dallas Morning News at the close of business today. The payouts, based on the number of years of employment, will cost the company 6.7 million bucks, but save 9.9 million a year going forward. "Thus far in 2006, Belo has eliminated more than 200 positions company-wide, with approximately 30 of these reallocated to more Internet-centric roles. We've reduced overall employment and other operating expenses by more than 21 million on an annualized basis, including The Morning News' projected savings related to the voluntary severance program," said Belo CEO Robert Decherd.


Media Markets & Money TM
Radio One trades in its wife
for some mojo

Radio One's WIFE-FM hasn't even quite moved in yet and already is being dumped. The FM move-in, coming to Radio One from Rodgers Broadcasting as it moves from Connorsville IN to Norwood OH and the Cincinnati market will have some established intellectual property waiting for it in the form of Jammin' Oldies WMOJ-FM, known locally as Mojo. The station was bought for 18M, and Radio One will add 5M to that total for the Mojo calls and format, which are coming from Cumulus Media Partners. Cumulus picked up the station, along with two other Queen City FMs, in its big buy of the Susquehanna Radio Group last year. "This acquisition is a fantastic strategic move for us," said Liggins. "First, it enables us to hit the ground running with our new Cincinnati station. Second, it should provide us with a rapid revenue and cash flow ramp for this new station. Finally, this acquisition further solidifies our urban competitive position in the Cincinnati market." Radio One already owns and operates Urban WIZF-FM in the market.

Kansas City Catholic group adds turf
The acquisition of KFEH-AM in Pueblo CO will provide expanding AM group Kansas City Catholic Network (KCCN) with its third AM station, in its third market, in its third state. Jim O'Laughlin's group is getting the Pueblo station from Allen Bickle's Wellsprings Harvest Ministries. According to broker Jamie Rasnick of John Pierce and Company, the price tag is 475K. KCCN's other stations are KEXS-AM Kansas City (Excelsior Springs MO) and KAHS-AM Wichita (El Dorado KS).

Mapleton adds two in San Luis Obispo
Adam Nathanson, President and CEO of Mapleton Communications, is picking up a pair of FMs in the San Luis Obispo market to add to the one-AM, three FM cluster his group already has there. Coming from Salisbury Broadcasting are KWWV-FM San Luis Obispo and KXTY-FM Morro Bay. They will join KYNS-AM, KXTZ-FM, KXDZ-FM and KPYG-FM. "We are thrilled at the opportunity to expand our presence in the San Luis Obispo community with the acquisition of KWWV-FM and KXTY-FM" said Nathanson. The value of the deal, which is expected to close before the year is out, was not immediately disclosed.


Washington Media Business Report TM
Small producers get waiver
Do you put together a show that is "locally produced and distributed non-news programming with no repeat value?" If so, and if you're financial means are severely limited, you may be able to duck closed-captioning requirements. "Christian Angler Outdoors Television Show," and its related kid-hosted segment "Reel Kids in the Outdoors" managed to get an exemption. It's from a non-profit organization, made strictly by volunteers and the organization receives absolutely no compensation when it's aired. Adding the expense of closed-captioning, Anglers successfully argued, would be likely to put it out of production. New Beginners and its "In His Image," a 30-minute religious program, has a national footprint via Christian Television Network, but it actually pays 750 dollars to get on the air once a week. It also received an exemption over the protests of unnamed opposing comment filers, on a showing of significant hardship without an exemption.


Music Media Business Report
Singer selected; Band name in doubt
Canadian Lukas Rossi won over viewers of the CBS reality series "Rockstar: Supernova" and will be the vocalist for a new band featuring Motley Crue drummer Tommy Lee, former Guns N' Roses guitarist Gilby Clarke and ex-Metallica bassist Jason Newsted. Now all the band needs is a new name. A few hours before the final competition show on Tuesday, a judge in San Diego granted an injunction sought by the California punk band Supernova which will bar the future use of the name Supernova by the new rock group. By whatever name, the group was busy in the studio prior to Wednesday night's series finale, recording two singles which are already being offered for purchase and download at Yahoo! Music Unlimited: "It's All Love" and "Be Yourself & 5 Other Cliches." A 27-city tour kicks off December 31st in Las Vegas. Stand by to see what name will appear on the tickets.


Engineering Business Report TM
Cambridge SoundWorks
expands HD Radio line

Cambridge SoundWorks announced an introduction of five new radio models-the first of which may help overcome some of the reception problems noted with HD and HD-2 radios. The SoundWorks Radio 820HD is a stereo table radio specifically designed to ensure the best reception possible of HD Radio and HD-2 broadcast. A unique telescoping antenna supports the FM band, while a generously large internal ferrite antenna supports the AM band. Retail price: 299.99. Available: November. The SoundWorks Tuner 850HD comes configured for rack mounting and features 3 signal outputs (2 digital and 1 analog) for maximum installation versatility. An easy-to-use infrared remote control is included. The tuner features a vocabulary of commands to support remote user interface panels common in custom installation. In addition to its "F" connector input for FM, the SoundWorks Tuner 850HD includes a sensitive external AM antenna on a generously long signal lead. The SoundWorks Radio 735 and SoundWorks Radio CD 745 offers the capability of attaching a dock for iPods, ZENS or other MP3 players, an AM/FM radio, CD/MP3-CD player (745 only), and more. The monaural SoundWorks Radio 705 offers an AUX in jack for playback of MP3, CD, DVD players, PC playback and more. It is also bedroom friendly; easy to use in the dark and can turn off on its own with its 30 minute SLEEP timer feature. Retail price: 119.99. Available: October.


Transactions
2.2M WGSM-FM Greensburg PA from McL/McM-Inc., a subsidiary of Sheridan Broadcasting Corp. (Ronald P. Davenport) to The St. Pier Group LLC, related to Renda Radio Inc. (Anthony F. Renda). Cash. Duopoly with WCCA-AM Homer City, WLCY-FM Blairsville PA. [File date 8/28/06.]

25K New AM Eureka CA from Starboard Media Foundation Inc. (Richard I. Lyles) to IHR Educational Broadcasting (Douglas M. Sherman, Janet B. Sherman, Charles W. Day, Margaret Day). 2.5K escrow, balance in cash at closing. Duopoly with KCIK-AM Eureka CA. CP is for 1400 kHz with 1 kw-U, ND. [File date 8/25/06.]


Stock Talk
The up streak ends
With the Fed meeting next week, investors are starting to get nervous, even though low oil prices have been boosting stocks of late. But not yesterday. The Dow Industrials slipped 16 points to 11,527.

Radio stocks also retreated. The Radio Index dropped 1.645, or 1.2%, to 141.392. Salem plunged 7.9% and Cumulus dropped 5.6%.


Radio Stocks

Here's how stocks fared on Thursday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

37.96

-0.37

Hearst-Argyle

HTV

23.77

+0.06

Beasley

BBGI

7.30

+0.16

Journal Comm.

JRN

11.43

-0.13

CBS CI. B CBS

28.54

-0.23

Lincoln Natl.

LNC

61.26

-0.25

CBS CI. A CBSa

28.57

-0.26

Radio One, Cl. A

ROIA

6.40

+0.09

Citadel CDL
9.12 -0.09

Radio One, Cl. D

ROIAK

6.35

-0.06

Clear Channel

CCU

29.50

-0.13

Regent

RGCI

4.00

unch

Cox Radio

CXR

15.92

-0.23

Saga Commun.

SGA

7.99

+0.12

Cumulus

CMLS

10.00

-0.59

Salem Comm.

SALM

10.92

-0.93

Disney

DIS

30.39

-0.06

Sirius Sat. Radio

SIRI

4.03

unch

Emmis

EMMS

12.03

-0.25

Spanish Bcg.

SBSA

4.27

-0.03

Entercom

ETM

25.30

-0.07

Univision

UVN

34.77

-0.28

Entravision

EVC

7.69

+0.06

Westwood One

WON

7.09

-0.10

Fisher

FSCI

42.42

-0.31

XM Sat. Radio

XMSR

13.69

+1.18

Gaylord

GET

44.63

-0.40

-

-

-

-

-


Bounceback

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Below the Fold
Ad Business Report
CBS Radio will stream
Advertising Week 2006 events...

Media Business Report
111 take Belo buyout offer
Took the company up on its voluntary severance offer...

Media Markets & Money
Radio One trades
In its wife for some mojo...

Washington Media Business Report
Small producers get waiver
You may be able to duck closed-captioning requirements...

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

Tom Bigby retires
Veteran programmer Tom Bigby has announced his retirement. Since October 2005, Bigby has served as Operations Manager for WYSP-FM Philadelphia, where he was instrumental in developing the Free-FM format featuring Opie and Anthony, Barsky and Kidd Chris. Bigby will continue to work with CBS Radio stations consulting on programming strategy and development. "Leaving a company that I have loved deeply for the past 17 years is difficult. I'm humbled by the company's support and want to thank Joel (Hollander), Scott (Herman) and Peter (Kleiner) for making it possible for me to remain at CBS Radio in this new capacity," Bigby said in a statement.

NAB builds
government team

The National Association of Broadcasters has two more hires who will join government relations EVP Douglas Wiley. Kelly Cole is coming aboard as VP. She has been in a great position to keep tabs on broadcasting issues as majority counsel to the House Energy and Commerce Committee. And coming on as director of government relations is Jamie Gillespie, exiting a post as a Democratic staff member of the Senate Commerce Committee.

KTAR signs quarterback
Before tossing the football each weekend, Arizona Cardinals rookie quarterback Matt Leinhart will be talking football Friday evenings on Bonneville's KMVP-AM "ESPN 860" Phoenix. "The Matt Leinart Show" will be co-hosted by Paul Calvisi. The quarterback will also appear Friday mornings on co-owned KTAR-AM.

Rumor has it...
...that Bruce Demps, having just parted with Clear Channel (9/14/06 RBR #179), has already nailed a major gig with another publicly traded radio company. The announcement could come as soon as Monday.






RBR Radar 2006
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Analyst urges Clear Channel
to sell more stations
Marci Ryvicker at Wachovia says Clear Channel has been doing a lot of things right lately, reorganizing management and making deals that expand beyond traditional radio. And while the company has sold off a few stations, she says Clear Channel would improve its ratings and margins if it sold off more non-core radio assets.

RBR observation: We hear there is a list being circulated, though tightly controlled, of a few hundred stations in smaller markets that Clear Channel might be interested in selling. Not that all are going to be sold, but CCU is willing to deal if potential buyers are willing to pay a decent price. We expect to see a slow but steady stream of sales over many months to come.
09/14/06 RBR #179

Forecasting growth for radio
The annual Communications Industry Forecast by Veronis Suhler Stevenson (VSS) sees total spending on radio growing by 5.3% in 2006 to 22.01 billion bucks. But there is a hitch - that includes not only traditional radio, but also satellite radio and online radio. The latter two, though still small, are growing rapidly, while VSS sees much slower growth for traditional radio, which saw growth of only 0.3% last year while satellite radio jumped 156.9%. For all of radio - traditional, satellite and online - VSS is projecting average annual growth of 5.4% from 2005 through 2010 to a total of 27.19 billion "as growth in satellite and online radio will augment slower growth in broadcast radio."

RBR observation: All forecasters think they have this crystal ball when some truly do not have a clue except crunching a number. Crunch away but the real distribution of ad dollars will vary within the next 6 to 12 months with using technology as the key tool. Few companies are out there but only the company that understands the radio business will be the winner. And as for satellite radio lets get real and satellite radio is not yet a solid business. Satellite is a competitor but the real competitor is any hand held device that the consumer controls which includes iPods.
09/13/06 RBR #178

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.

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.
09/12/06 RBR #177


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