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Welcome to RBR's Daily Epaper
Volume 23, Issue 184, Jim Carnegie, Editor & Publisher
Thursday Morning September 21st, 2006

Radio News ®

No magic bullet for radio
Wall Street has a negative view of the radio business, but group heads in Wednesday's opening Dickstein Shapiro financial session at the NAB Radio Show in Dallas admit they don't see anything that will change that quickly. In the meantime, Clear Channel CEO Mark Mays says he is "trying to make lemonade out of lemons" by continuing to buy back stock. Greater Media CEO Peter Smyth, as the only private company represented on the panel, said even he has to answer to a board of directors that wants only accretive acquisitions, so he thinks the key is for everyone to focus on improving the growth rate for radio. For private companies looking to grow and would-be new entrants, the continued sluggish growth may be good news, since public companies who used to say they would never sell scarce station assets have now begun pruning their portfolios. Emmis CEO Jeff Smulyan credited that change in view to several years of low growth. The group heads disagreed a bit over why radio fell out of favor. "What happened to radio is that it lost its hipness," said Smyth. He said the industry has to get serious about marketing itself - and the RAB has to lead the effort. "I don't think that radio has lost its hip factor," said Cumulus Media CEO Lew Dickey, insisting that radio listening levels have not fallen precipitiously and that radio has not lost nearly as much of its audience as some other media. Several of the executives hailed HD radio as the key to the next renaissance for radio, allowing for the launch of many new formats to compete in an ever more fragmented media world. To that end, Mays cited satellite radio as justification for further ownership deregulation. The two satellite radio companies, he noted, offer the most diversified programming in radio but have the most consolidated ownership. Clear Channel has been active in pushing Washington for rules which would allow it to own more than eight stations in the largest market. Mays admits that deregulation may not come soon, but he thinks it is inevitable. In his view, most politicians hate their local newspaper because of some negative reporting about them at some point - and the same for TV - but he thinks "rationality" will triumph in the end to allow for more radio consolidation over the next 10 years.

Lenders still bullish on radio
The good news at yesterday's financial session to open the NAB Radio Show came in the panel with lenders, who say they still see plenty of reason to lend money for radio acquisitions, despite the difficulties of public companies on Wall Street. "We believe that even in a low growth or no growth environment such as this one, we can still make good loans," said John Brooks of Wells Fargo Foothill. Drew Marcus of Deutsche Bank noted that private equity investors have the opposite view of the public markets, preferring maximum debt leverage to maximize the potential rate of return from future profits. To that end, he noted that the pending deal by Haim Saban, with backing from a consortium of private equity funds, will use debt leverage amounting to 11 times EBITDA. That brought a gulp from Perry Steiner of Arlington Capital Partners, a private equity fund currently backing three acquisitive broadcast groups in medium to small markets, who noted that 11 times is what his firm looks for all-in for a deal, not just the debt component. Despite all the talk about equity money chasing deals, Steiner said low growth has reduced private equity interest in radio. So long as private market multiples are higher than those for public companies in radio, Steiner said equity funds will be increasingly worried about future exit multiples for their investments. In his opening comments, Bear Stearns analyst Victor Miller tracked the recent years of declining growth for radio and offered the explanation that part of it was due to an audience shift in the largest markets from traditional radio stations to niche specialists in Spanish, Urban and Religious programming. In his view, the unit costs for those fast-growing niche players tended to be lower than for companies such as Clear Channel and CBS Radio, so advertisers didn't have to spend as much. Miller said that created a 4% headwind at the same time that radio was trying to get back to "normal" from softness in ad sales resulting from broader factors such as the problems of the auto industry and new media competition. So, what about 2007? Miller says he is sticking with his forecast of 2% growth for radio revenues - so another slow growth year ahead.

FCC furthers the Further NPRM
As predicted, the deadline for comments on the Further Notice of Proposed Rule Making, the 2006 Quadrennial Regulatory Review of Ownership rules, built upon the wreckage of the court-stalled 2002 Review, has been backed up. Originally, comments were due tomorrow, 9/22/06 with a two-month window for reply comments ending 11/21/06. Based on numerous requests, the FCC has moved the due date for primary comments to 10/23/06 and the reply comment due date to 12/21/06. "We believe that the public interest and our goal of assembling a full record in this proceeding would be best served by granting an extension of the comment and reply comment deadlines so that parties may have sufficient time to conduct studies and compile data that will inform our decision in this proceeding," said the FCC.

RBR observation: The proceeding figures to stretch well beyond these dates, if we're any judge. For starters, FCC Chairman Kevin Martin has promised no less than six public forums in diverse locations, and so far, only one of those, a 10/3/06 session in Los Angeles, is on the schedule. There has not been a hint about any of the other sessions, other than hints not from but directed to Martin, such as Byron Dorgan's (D-ND) hint that at least one of these should be held in a rural state, like his, for example. There was never much hope that this proceeding would be wrapped up before the mid-term elections. This announcement makes it official. And it should not come as a surprise. At least one well-placed industry observer thinks that Martin will do everything he can to avoid a massive explosion such as the one his predecessor Michael Powell set off 6/2/03, and may well patiently go for what he thinks he can get (his most prominent on the record statements have pushed for relaxation of newspaper/broadcast cross-ownership restrictions). If he wishes to keep his reputation for political acumen intact, Martin will concede that the atmosphere is poisoned and the watchdogs are on full alert, and he may well decide that for the moment, stretching out the proceeding works in his favor.

The new EOE:
Exposure, outrage, email

First came the revelation from Barbara Boxer that a suppressed 2004 FCC localism study had been unearthed, followed by the revelation that it had somehow survived destruction orders. Then came cries of protest from all corners of the far-flung anti-media consolidation universe. Now comes the inevitable click-and-send email campaign, aimed at the FCC. Part three of the standard EOE equation comes courtesy of one of the more powerful watchdogs, the Consumers Union and its HearUsNow.org project. In hits call for protest participants, the group's Morgan Jindrich wrote, "Last week, the Associated Press revealed a secret study by FCC staff that suggested greater concentration of media ownership would hurt local TV news coverage. The FCC had ordered its staff to destroy all copies of this report!" He continued, "The newly found report contradicts the FCC's 2003 rationale for allowing media corporations to gobble up increased shares of the media market. Millions of comments from people like you stopped them back then, and can stop them again today." See below to view the suggested message. Jindrich asks each participant using the template to find a way to personalize it.
| HearUsNow Template |

RBR observation: All we know is the Willie Sutton theory, which holds that if you're going to rob something, rob something that has money. RBR has pointed out a pile of money which pharmaceuticals are going to spend. Perhaps their product is one which would benefit from awareness above and beyond the professional medical community. Maybe you won't get the entire budget. In fact, you probably WON'T get the entire budget. But maybe you can get into the mix.

House committees fundraising to a draw
Although a 50-state strategy has caused the Democratic National Committee to enter the final two months of the 2006 midterm campaign at a substantial financial disadvantage when compared to its direct adversaries at the Republican National Committee, the Capitol Hill based House fund-raising operations are on level turf. The National Republican Congressional Committee has done better bringing in cash lately according to the Associated Press, with 8.5M in August income put toward building a 36M cash on hand warchest. They say that's 10M more than they had at this point of the 2004 election. The Democratic Congressional Campaign Committee pulled in about 5M in August and is sitting on 35M for the stretch run, 15M ahead of its position in the 2004 race. The RNC pulled in 7.6M in August for an on hand total of 39M, compared to 6.7M in income and 10.9M cash on hand for the DNC.

RBR observation: House battleground races seem to be everywhere, and many of these will be best fought over the radio airwaves.

Can you become a choice of drugs?
Pharmaceutical companies labor long and hard to have their products declared legal. Once that critical obstacle is hurdled, they are ready to go into marketing overdrive. According to research firm Cutting Edge Information, such a company is prepared to drop anywhere from 1M-50M on marketing in the first year, and for a potential "blockbuster" item, the top end of that range may continue intact for two more years after that. Advertising regulation has made it easier in recent years to advertise new drugs, even those which require a prescription, on the air. However, radio and television are not necessarily a typical part of the mix. Advertising in medical journals, provision of free samples to doctors and investments in medical education typically eat up large portions of the promotional budget.

RBR observation: All we know is the Willie Sutton theory, which holds that if you're going to rob something, rob something that has money. RBR has pointed out a pile of money which pharmaceuticals are going to spend. Perhaps their product is one which would benefit from awareness above and beyond the professional medical community. Maybe you won't get the entire budget. In fact, you probably WON'T get the entire budget. But maybe you can get into the mix.

From the NAB Radio Show in Dallas...
NAB Radio Show notebook
...It was a blast from the past as Jim & Cathy Carnegie, Jack Messmer and June Barnes from RBR caught up with Eddie Fritts in Dallas. The former NAB head honcho is pressing the flesh this week for Global Security Systems (GSS), which is demonstrating an emergency alerting system that meets Department of Homeland Security standards using FM subcarriers. The system has already been tested on 30 stations in Mississippi and talks are underway with other states. Oh, by the way, there is also a commercial component which will let GSS and the stations make some money along with serving the public good.

...No need for HD Radio listening booths this year. The issue now is getting receivers into the market so people can actually hear the hundreds of HD and HD-2 stations already on the air. The folks at iBiquity showed RBR three new receiver models which are going to be sold at 99 bucks each through radio station partners to get receivers into the hands of consumers to build buzz. Tens of thousands should be delivered before this year is out.

...Was it NAB honoree Dave Kennedy or former football great Troy Aikman who was responsible for the over-sold Radio Luncheon on Wednesday? Folks who arrived late found all of the seats and food were taken, so they were told they could use their tickets as vouchers at other hotel restaurants. Those who still wanted to hear Aikman, or perhaps Kennedy, were told they could go on in and eat later.

Ad Business Report TM

Lehman Bros. looks at implication of Yahoo! commentary on
radio advertising

Just after Sue Decker, Yahoo's CFO, said Tuesday at a Goldman Sachs conference in NYC that over the last few weeks, Yahoo was starting to see some advertising weakness in some of the most economically sensitive categories (9/20/06 RBR #183), Lehman Broadcasting's Anthony DiClemente issued the following statement: "We believe investors must ask the question: if Yahoo - which is steadily taking advertising share from traditional media outlets - is witnessing an advertising slowdown potentially driven by economic issues, what could be the impact of an advertising slowdown on other traditional media companies? As it pertains to the broadcasters, automotive and financial services represent 2 of the top 5 verticals for radio advertising spending, or about 18% of radio industry advertising revenues. While a slowdown for automotive spending may be occurring more dramatically at the national level, we believe there could be a trickle-down effect to local domestic auto dealerships. While it is likely too early to acknowledge a U.S. advertising slowdown, on 7/26, we published a detailed report entitled "How Cyclical are Broadcasting Stocks?", an analysis of broadcasting stock price performance in relation to the economic cycles of the past 20 years, finding that broadcasting stocks are in fact cyclical, if not 'hyper-cyclical.' We reiterate our cautious outlook on the Broadcasting sector and continue to expect a Y/Y decline in radio advertising in 2006 (versus 27% Y/Y growth for Internet). Broadcasting stocks have traded down 21% on average (as compared to the SPX up 4%). Our coverage universe is currently trading at 10X EBITDA multiple and fully-taxed FCF yield of approximately 8% based on 2007E estimates, a 15% premium to fair value, in our view. Specifically we highlight Clear Channel, Cox Radio and Emmis as broadcasters trading at the highest premium valuation."

RBR observation: Lehman estimates radio advertising to be down 0.6% this year. The mention of a trickle-down effect from a national slowdown in advertising from domestic automakers to local advertising from dealerships is valid. While a slowdown in local car sales usually means an uptick in local radio advertising, after a while-after the cars are still sitting on the lots-hard decisions have to be made. Keep the dealership open or advertise. Eventually, advertising has to be cut. If the current domestic automaker woes don't turn around soon, the local ad market will likely be slowing too. The sell now has to be smarter, more efficient and more effective.

CC Radio airing campaign for NBC's "Heroes"
Clear Channel Radio has launched a national radio campaign that builds anticipation for NBC's new hero adventure series "Heroes," which premieres on 9/25. The campaign consists of a :60 spot that asks a series of thought-provoking questions followed by three Blinks/adlets that introduce the characters' incredible abilities and wrapped up with a :15 spot with show information.
| Listen here |

The campaign broke yesterday during morning and afternoon drives on CC Radio stations in the top 25 markets. CC Radio's Creative Services Group and The NBC Agency developed. Adlets have also been used successfully by NBC to support the premiere of its adventure/mystery reality series "Treasure Hunters."

Media Markets & Money TM
Clear Channel deal wheel starts spinning
Radio giant Clear Channel Communications is paring down in two Appalachian markets, sending a pair of AMs in Roanoke-Lynchburg VA and an AM and FM in Chattanooga TN to Gary Burns' 3 Daughters Media Inc. In Chattanooga, Burns gets WNGA-FM South Pittsburg TN and WUUS-AM, licensed across the state line in Rossville GA. He also gets an AM in each of the principal cities of the far-flung southern Virginia market, including WGMN-AM in Roanoke and WVGM-AM Lynchburg. Burns has one station in the Virginia market, WBLT-AM out of Bedford VA. The Chattanooga stations represent a territorial expansion for the group. He'll pay 2.6M cash for the two-market quartet. Clear Channel will still have three FMs in Chattanooga and six in Roanoke-Lynchburg.

Washington Media Business Report TM
FCC to take up DTV children's obligations
The next FCC Open Meeting is scheduled for next Tuesday 9/26/06. Among four agenda items is one of special interest to television broadcasters in the pre-dawn hours before the conversion to digital. The title says it all: "Children's Television Obligations of Digital Television Broadcasters." The FCC's original idea was to mirror the main-channel obligation of broadcasters in regards to children's programming on any multicast channels they choose to operate under digital operation. The Commission and representatives from the networks have reportedly been working behind the scenes to work out some of the details, with issues such as associated websites and program reruns among the issues on the table. The session kicks off at 9:30 AM Eastern.

One On One
New Captain on deck at the NAB
Radio & Television Report Managing Editor Dave Seyler sat down with National Association of Broadcasters President/CEO David K. Rehr early in March. After briefly discussing children, Dr. Seuss and the truth of the story "Too Many Daves" in "The Sneetches and Other Stories," we moved on to the state of the broadcasting industry as he found it after three months on the job.Yesterday, David spoke about the interview for the job (9/20/06 RBR #183).

Are there any plans, any movement in the efforts to get CBS, NBC and FOX back in?
We're actually reaching out to them. You know I can't give you a time that they're going to come back in but what I've told everybody here is let's anticipate that they will be back in which I believe they eventually will but let's also ensure that we're creating value for them.

As far as TV duopoly it doesn't seem like there's a real problem with it in general except for the small markets which is where we happen to think it's most needed anyway. Any hope that you can get regulators and Congressmen to see that?
Yeah we initiated a letter to Kevin Martin on cross ownership in duopoly expressing the position of the joint Board of Directors. I've been in some of the smaller markets and I think, I've met with all the FCC Commissioners already and several of them got into the issue of duopoly with me. The point I made to them is rather than causing less diversity it actually causes more diversity because as the market, you know if you have a duopoly you still have two brand identities, you still have two businesses that you have to build and people aren't just going to make everything vanilla and just change the brand logo on the screen because that's not going to be an effective business model. They are going to look for ways to kind of maximize their reach into the local communities.

Tomorrow: What are the biggest radio issues on the horizon right now?

Entertainment Media Business Report TM
WW1 to syndicate NBC's "NFL Sunday"
Westwood One and NBC Sports announced the launch of a new NFL program "NBC's NFL Sunday on Westwood One," which airs nationally Sunday nights from 7:30 - 8:00PM ET throughout the NFL season and can be streamed live from nbcsports.com. NBC's NFL Sunday on Westwood One will immediately precede Westwood One's 8:00 PM ET national broadcast of NFL Sunday Night Football. Hosted by Al Trautwig, the show takes a look at the week's Sunday Night NFL match-up, the premier primetime game of the week. The show also reviews the NFL Sunday day games and has a featured web page on nbcsports.com.

Internet Media Business Report TM
Weekday audience for
online radio nets up 38%

Arbitron and comScore Media Metrix released the online radio ratings for June 2006 whose findings observed a sharp increase in AQH audience compared to the same month last year. The weekday AQH audience for the measured online radio networks for June is 1,031,368 people age 12+ listening Monday-Friday 6AM-7PM. The June 2006 audience to the five networks that were measured in the June 2005 report increased 38 percent, growing from an AQH audience of 743,500 in 2005 to an AQH audience of 1,022,400 persons age 12 and older in June 2006. More than six million different people, age 12+, tuned to the online radio networks measured by comScore Arbitron during an average week in June, Monday to Sunday from 6AM-Midnight. The midday cumulative audience (Mon-Fri 10AM-3PM) for the six measured networks in June 2006 reached 3,279,400 listeners. The June report of the comScore Arbitron Online Radio Ratings service rated America Online's AOL Radio Network; Yahoo! Music; Microsoft's MSN Radio and WindowsMedia.com; Live365; ESPN Radio; and Clear Channel Online Music and Radio during an average broadcast week in the month of June. Ronning Lipset Radio represents all the networks, with the exception of ESPN Radio.
| View the Chart |

Ratings & Research
Listener confusion on HD Radio addressed
A new research study from Mark Kassof & Co. reveals that 5% of 18-64 year olds think they are receiving HD Radio from at least one of the FM stations they listen to, but have not actually purchased an HD-capable radio. Among these listeners who say they are receiving HD but haven't purchased an HD radio, 46% say it is "about the same" as regular FM radio, while 12% of them characterize HD as "a lot better" than regular FM. One percent of listeners say they have purchased an HD-capable radio. While a small subcell, two-thirds of them say HD is "a lot better" than regular FM. These findings are based on 752 phone interviews completed from September 13-17 in the U.S. Saud Mark Kassof, President of the firm: "Stations contribute to confusion when they say they are 'broadcasting in HD' without offering an explanation of what HD provides and what is required to receive it. As a result, some listeners wrongly think they are receiving HD." This survey was the second HD-related study conducted by Mark Kassof & Co. this year. A May survey revealed that only 1% of 18-64 year olds said HD Radio provides more stations or programming choices.

RBR observation: These are dismal numbers. The lack of an effective campaign for HD is partly to blame. Again-play samples of the music found on HD-2 stations. Very few people are disappointed with FM's current sound quality, so "digital quality" and "crystal clear" are not big sellers. Commercial-free, non-mainstream formats is. Go straight up against satellite and Internet: "Want free satellite radio formats? Want Internet radio formats in the car?-get and HD Radio today at Best Buy......"

BIGresearch ranks influence
of in-store media on
purchase decisions

As marketers seek new ways of increasing marketers' ROI by reaching and influencing consumers, In-Store media becomes a viable alternative, according to the latest Simultaneous Media Usage Survey (SIMM VIII) by BIGresearch. BIGresearch surveyed 15,167 consumers in June and July and found product sampling topped the list as the most influential of stored media options, followed by reading product labels and shelf coupons. BIGresearch has been measuring the influence of In-Store media over the last 4 years through SIMM surveys of over 135,000 consumers. -- "The store is a medium of communication. Customers consume In-Store media. They are not merely exposed. The old type of marketing was to slip in gross rating points as a surrogate for purchasing. Today consumption of media means the media has relevance and influence on a purchase decision," said Joe Pilotta, VP of Research. How do each of the following In-Store promotions influence you to buy certain brands or products? (Percent influenced or greatly influenced by media) In rank order: In-Store Media / % Of 18+; Product Sample 52.4%; Product Labels 43.2%; Shelf Coupons 39.5%; Special Displays 35.5%; Store Loyalty/Card 33.1%; Coupon on Register Tape 28.4%; In-Store Events/Contests 28.1%; Parking Lot/Sidewalk Events 18.2%; Floor Graphics 12.5%; In-Store TV 10.9%; In-Store Radio 7.5%. "Even though In-Store TV and Radio trail with only 10.9% and 7.5% of respondents saying they're influenced, it is still very significant when taking that number as part of overall weekly store traffic," said Pilotta.

Engineering Business Report TM
Dielectric holds first FM executive engineering conference
Dielectric Communications held its first FM Executive Engineering Conference in late August, giving key engineering executives from leading Canadian and U.S. radio broadcasters the opportunity to gain in-depth knowledge of Dielectric products. In addition, the executives had the opportunity to provide input on new Dielectric product development projects. Representatives from CC Radio, Cox Radio, CBS Radio, CHUM Radio Network, Cumulus Media, Entercom, Harris Broadcast, Richland Towers, and Radio magazine were in attendance. After a tour of Dielectric's plant in Raymond, ME, attendees were hosted at the popular Sebasco Harbor Resort on Casco Bay. The radio executives participated in a series of presentations on the company's products and how they can most effectively be used to address issues that are currently affecting the industry. A major highlight of the event was a round table discussion on ideas for new products and services for the growing IBOC market. As a result of the universally positive comments received from attendees, Dielectric plans to hold the conference annually, with another scheduled for next year.

575K WPDD-FM CP New Orleans LA (Norco LA); KHBQ-FM CP Lake Charles LA (Sulphur LA); KAHJ-FM CP Alexandria LA (Bunkie LA); KFLL-FM CP Susanville CA; WSMM-FM CP Selmer TN; KCWV-FM CP Brownfield TX; and WQNN-FM CP Brownsville TN from Broadcasting for the Challenged Inc. (George S. Flinn Jr.) to Educational Media Foundation (Richard Jenkins). 250 cash at closing, 325K note. KFLL-FM CP is for Class A on 88.1 mHz with 30 w @ 1,142'; WSMM-FM CP is for Class A on 90.5 mHz with 6 kw @ 236'; KCWV-FM CP is for Class A on 90.7 mHz with 2 kw @ 220'; KHBQ-FM CP is for Class A on 89.1 mHz with 3 kw @ 197'; KAHJ-FM CP is for Class C3 on 89.5 mHz with 15 kw @ 131'; WPDD-FM CP is for Class A on 91.1 mHz with 1 kw @ 56'; and WQNN-FM CP is for Class A on 88.3 mHz with 500 w @ 125'. [File date 9/8/06.]

333K KIND AM & FM Independence KS from Central Broadcasting Inc. (William H. Kurtis) to Tallgrass Broadcasting Inc. (Joseph E. Walker, William H. Kurtis). Cash. LMA until closing. [File date 9/7/06.]

Stock Talk
A good day on Wall Street
...usually means a good day for radio stocks-and yesterday was no exception. Buoyed by the Feds holding interest rates down, low gas prices, and strong earnings from Oracle, winners beat losers by a big margin yesterday in radio. The biggest losers, in fact, only lost pennies.

Radio Stocks

Here's how stocks fared on Wednesday

Company Symbol Close Change Company Symbol Close Change













Journal Comm.







Lincoln Natl.







Radio One, Cl. A




Citadel CDL
9.63 +0.27

Radio One, Cl. D




Clear Channel








Cox Radio




Saga Commun.








Salem Comm.








Sirius Sat. Radio








Spanish Bcg.
















Westwood One








XM Sat. Radio














Send Us Your OpinionsWe want to
hear from you.

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

Below the Fold
One On One
NAB CEO David Rehr
Part 2 as the new chief has plans for the future...

Ad Business Report
Lehman Bros. looks at implication
Of Yahoo commentary on radio advertising...

CC Radio airing campaign
For NBC's "Heroes" with a national radio CC campaign...

Media Markets & Money
Clear Channel deal wheel
Starts spinning by paring down in two Appalachian markets...

Ratings & Research
Listener confusion
On HD Radio addressed...


Market Results
| Baltimore |
| Fredericksburg |
| Monterey |
| San Francisco |
| San Jose |
| St. Louis |
| Washington, DC |

NBA Minute

Stations for Sale

Alaska 5 Station Cluster
All from same building
Great Group at 8X trailing BCF
Cliff at Clifton Gardiner & Co
(303)758-6900 [email protected]

Radio Media Moves

CC Radio ups Remkiewicz in Boston
CC Radio announces the promotion of Susan Remkiewicz to Director of National Sales for Boston and the Boston Suburban Network. She'll will be responsible for national sales for Boston's Kiss 108, JAM'N 94.5, and Progressive Talk, WKOX-AM. In addition, Remkiewicz will continue to manage national sales for the 10 radio stations that comprise CC's Boston Suburban Network in Manchester and Portsmouth, NH and Worcester, MA.

More News Headlines

Global Security Systems opens mobile devices as ad platform
In today's mobile society, consumer brands are interested in using wireless devices as an advertising channel. Global Security Systems' (GSS) FM- based geo-targeting solution lets advertisers reach their audiences whenever and wherever they are. As part of the company's GSSNet solution set, the new geo-targeting capability leverages the powerful and far-reaching FM signal. Advertisers can deliver targeted advertising based on the location of a consumer's mobile device. By offering advertisers a way to reach potential customers via stations' FM subcarrier or HD side channel spectrum, local broadcasters across the country can offer a targeted marketing channel for advertiser. In addition, stations can now realize an additional revenue stream at the point of sale.

Digital Magazine

In August's RBR/TVBR Solutions Magazine:
* Hispanic media managers on ratings and audience trending.
* The explosion of Hispanic formats and networks.
* Denuo CEO, Publicis Media CIO Rashid Tobaccowala.
* Beth Comstock, President/Digital Media and Market Development, NBC Universal.
* One on One with David Kennedy.
* Magna Global CEO Bill Cella's days at WXYZ-TV.
* Jim Yager is out to do it all again.

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
August Issue of RBR/TVBR

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

Boxer receives another
suppressed study
...and FCC Chairman Kevin Martin has already ordered an internal investigation into the matter of the media ownership studies which seem to have been shelved while the FCC considered directly related rulemakings. Josh Silver of watchdog Free Press said, "This is a scandal. Apparently, FCC officials are willing to deep-six any research that contradicts industry's pro-consolidation claims. They can't be trusted...However, Martin, Powell and former Media Bureau Chief Ken Ferree have denied any knowledge of the reports (the first one, anyway), let alone having a role in their suppression.

RBR observation: We believe Martin when he said he had no clue as to the existence of these documents, and his swift action to address Boxer's concerns would also bear that out. He has expressed in the past a desire to clear the way for more local newspaper/broadcast combos, but we haven't heard any specific opinions one way or the other on the topic of upping local broadcast caps. This is definitely a stay tuned item.
09/20/06 RBR #183

Yahoo sees weakness
in online ad market
Sue Decker, Yahoo's CFO, said due to softness in online advertising, she expected Yahoo would report Q3 sales in the lower side of guidance that the company gave in July. Yahoo stock has fallen 24% over the last year. One industry analyst said the impact could be broader. "It feels and smells like a macro problem, rather than something specific to Yahoo or the Internet industry,"
09/20/06 RBR #183

Howard - The return to the Dial?
The hype is on, again, about the self-proclaimed "King of All Media" Howard Stern returning to terrestrial radio. Just so happens today the annual NAB Radio show is underway and what a good way to get a buzz going. The bottom line on the self proclaimed "King of All Media" - his crown has slipped and now most likely is just a prince of a small island with lots of money. So Howard, you got your press - now we in radio have to get to work during this NAB show and make terrestrial radio better and get a proactive strategy for success. For the total Publisher Perspective see
09/20/06 RBR #183

Powell unaware of localism report
Many watchdogs thought they saw the fingerprints of former FCC Chairman Michael Powell in the case of the not-so-dead FCC report on the relationship between local news programming and the proximity of station ownership. Powell told RBR/TVBR that he knows nothing of the report, and the fact that it's available everywhere is clear proof that it wasn't destroyed.

RBR observation: Powell, former Media Bureau Chief Ken Ferree and current Chairman Kevin Martin are pleading both innocence and ignorance. We're not sure who we'll need to get to the bottom of this one, Sherlock Holmes or Inspector Clouseau. Two things are clear, however. First, Martin exhibited a great deal of wisdom in shuffling this hot potato right into the public domain before any of his fingerprints could find their way onto the whole mess. Second, the bottom line is that it will make it just that much more difficult to edge the current redo of media ownership rules toward the deregulatory side.
09/19/06 RBR #182

Emmis handing out cash
Rather than another Dutch auction, Emmis Communications has elected to make a cash payout of four bucks per share to shareholders as a special dividend. Emmis says the special dividend combined with last year's Dutch auction tender will have returned almost 550 million to shareholders. Emmis CEO Jeff Smulyan has 37.2 million shares outstanding, so the special dividend will total 149 million. Nearly 20 million will go to Smulyan, who is the biggest shareholder.

RBR observation: This special dividend move did not please Wall Street, which had been hoping for another Dutch auction stock buyback round. Why not do that? One reason might be the current stock price. Having already rejected a 15.25 per share buyout offer from Smulyan to take the company private, it could have been embarrassing for the board of directors to turn around and do a big stock buyback at an even lower price.
09/19/06 RBR #182

"Sell" call for Cox Radio
Goldman Sachs analyst Mark Wienkes has lowered his "Neutral" rating on Cox Radio to "Sell." Wienkes says the stock appears to have been trading up on expectations of being taken private by Cox Enterprises, but he thinks that is unlikely to happen. Year-to-date (as of 9/14) Cox Radio shares are up 15% vs. a 25% decline for the radio sector. While the fundamentals for the company are stable, Wienkes says there is nothing about its performance to justify such a run up, so buyers must be banking on a takeout by its private parent.

RBR observation: In the current environment, every public radio CEO would like to go private. No one enjoys getting beaten up quarter after quarter by analysts and big money managers. But it takes money to go private and the deal has to make sense to the people supplying the money. We doubt that Cox Enterprises would pay off the public shareholders of Cox Radio at a huge premium in a soft market just to be rid of them.
09/18/06 RBR #181

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.
09/15/06 RBR #180

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Marketing Director
WFAN is looking for an experienced Marketing Director. Responsibilities will include overseeing the promotions staff, development and execution of overall station marketing and promotions strategy and working with sales on creative approaches to sales materials. Experience in NY Metro area a plus. CBS owned station and is an EOE.
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Local Sales Manager
Are you going to be at the NAB Radio Show in Dallas? KPLX 99.5 The WOLF, Texas Country in Dallas a Premier Country station in Top 5 market. Focus with Responsibilities: Achieving local sales goals, maintaining reputation and integrity of sales operation with clients while recruitment and retention of Account Managers with in-field coaching. Minimum 3 years large market Sales/Management, NTR, Interactive Media experience. Cumulus Radio Dallas is EOE.
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Talk Radio Network
Seeking professionals in three areas to join our TRN team. First: Executive Producer on topical subjects, Second: Board Operator with 2 years experience with Telos call-screening software and Third: Staff Engineer that can take initiative. This is a fast paced high pressure environment, must be able to think and act professionally in emergency situations. EOE. For complete details on all three positions
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