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Volume 22, Issue 185, Jim Carnegie, Editor & Publisher
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Wednesday Morning September 21st, 2005
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Radio News®
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 Wachovia points its arrow further down
If Wall Street watchdog Wachovia is correct, radio companies should no longer expect a 3% uptick in Q4 this year. Try 2%, based on "continued lack of pricing power" and uncertainties imposed by the bad weather in the Gulf of Mexico. The latter, in Wachovia's estimation, will have the greatest effect on Entercom, due to losses at its six-station cluster in New Orleans, which accounts for about 6% of its total group net revenue. (Billboard purveyor Lamar was trimmed slightly due to NO holdings, but has a good outlook nevertheless due to the general upbeat picture in the billboard business.) Citadel and Emmis received trims from Wachovia "due to ratings challenges in key market." Wachovia is sticking to its guns on predictions for Cox, Cumulus, Entravision, Radio One, Saga and Univision. Wachovia says niche groups, including Hispanic Entravision and Univision, along with Urban Radio One, are in the best position for year-over-year gains, and it also likes Entercom due to low debt leverage and its "disciplined acquisition strategy."
RBR observation: The tragedy in New Orleans as a market and the stations in the tri-states in the south will all have a difficult time during the next year. One way the billing can pick up if the reps toss more national on the books as local will be hurting. Sure nobody will turn down business. With that said - OK, we have heard the Wall Street guru's all year with the 'wobble' forecasting so lets put it to rest as we approach the fourth quarter - Some groups, niche or not, are just managed, programmed and old fashioned run better than others. There is no formula for success except knowing the business one is in and in the case of the mentioned above they are radio last we looked. The good ones consistently perform with local content being king. Also a little hard work does not hurt.
 Arbitron touts PPM
Houston demo successes
Yesterday in Houston, PPM President Pierre Bouvard presented some very positive findings to broadcasters, agencies, advertisers, the Arbitron Advisory Council and the RAB's PPM Task Force-including: PPM has much less statistical bounce-it showed very consistent data across weeks and months; PPM liberates radio PDs from programming to top of the hour; PPM captures twice as many stations and listening occasions per person resulting in doubling of weekly reach. The PPM service also brings a new demo to radio, children 6-11. Over 100 media properties in Houston were recorded-all 16 TV stations, 40-50 cable nets and 40-50 radio stations. Cox and Radio One were not encoding and were not included. "We're very pleased with the sample performance," said Bouvard. "We are in Houston as the confirmatory market prior to commercializing and launching PPM. We really wanted to put PPM through its paces in a highly diverse ethnic market. [We found] very good metrics for SPI-sample performance indicator-across sex, age, race, ethnicity. People complied with the task. They carried the device to the in-tab. We're very pleased with the compliance metrics."
| More... |
RBR observation: Almost all of the findings suggest what most at Arbitron and the buying community have told us-PPM is a more accurate measurement than diaries. Everything from the changes to top of the hour listening to number of stations listened to, to out of home viewing are all bearing out the realities of consumer (listener, viewer) behavior. If the measurement system for listening and viewing is more accurate, then planning and buying will be better targeted. What happens next? Higher ROI. Higher ROI will lead to more trust in radio, television and cable mediums. You want to compete more effectively against online? Strong, reliable data and higher ROI are the way.
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 FEC looks to trim Club for Growth
The Federal Election Commission declined to hit the brakes on soft-money spending groups known as 527s during the 2004 election. At the time, they pleaded lack of time to go through the full regulatory cycle before Election Day. Now the FEC has had time, and Club for Growth is under suit for 'failing to register as a political committee." FEC says that CfG's "major purpose is to influence the election of candidates to federal office..." and as such it is required to register as a political committee and abide by Federal Election Campaign Act (FECA) donation rules and regulations. FEC wrote, "The complaint alleges that the Club, having met the threshold for political committee status, received more than $4M in 2004 alone in contributions that exceeded limits contained in the FECA. The Club also accepted nearly $350K in 2000 and 2001 from corporations who are prohibited from making contributions in federal elections. The complaint also alleges in the alternative that if the Club were treated as an ordinary corporation rather than a political committee, its spending in connection with federal elections would constitute illegal corporate expenditures." FEC is asking that a court ruling "require that the Club register and file reports with the Commission, disgorge the excessive and prohibited contributions and pay an appropriate civil penalty." The suit is being filed in the U.S. District Court for the District of Columbia. In a statement, Club for Growth called the charges nonsense, saying they are an organization which simply strives to promote "pro-growth policies."
RBR observation: The 527 groups were used first by the Democrats, who saw it as a way to narrow the traditional cash gap between them and the generally-more-well-heeled Republican constituency - - the Republicans did not return 527 fire until their efforts to get the FEC to put an end to them failed. At that point, they did their best to make up for lost time. The Democratic groups are not off the hook, and the names George Soros and MoveOn.org are sure to come up before this is all over. If FEC is successful, it will be a wish come true for Senators John McCain (R-AZ) and Russ Feingold (R-WI) and Representatives Chris Shays (R-CT) and Marty Meehan (D-MA).
 American Samoa
contributes to Katrina relief
American Samoans and 93 KHJ's "Samoan Sunrise" team (Scott Edwards & Lupe Lu), led by General Manager Joey Cummings, architect Joe Weilenman and attorney Diane Roy, helped raise 30,000 for the relief of vicitms of Hurricane Katrina on the Gulf Coast. The Samoan Sunrise team broadcast live from 6 a.m. to 5 p.m. on the day of the radiothon as community volunteers collected money at various donation points on the island of 60,000 people.
Photo: Samoan Sunrise co-host Lupe Lu, 93KHJ General Manager Joey Cummings, McDonald's VP Larry Sanitoa, and Samoan Sunrise host Scott Edwards. Sanitoa presented a $3000 check to the relief fund on behalf of the local McDonald's franchise.
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Watchdogs want public input into new Telecom law
A group of 22 public interest watchdogs want the public interest to be taken into account when Congress gets around to its update of the 1996 Telecommunications Act. The coalition said, "Telecommunications legislation has for too long been negotiated behind closed doors with key industry heavyweights and major media conglomerates, which spend hundreds of millions of dollars on campaign contributions and lobbying in Washington. The last major telecommunications bill enacted in 1996 largely reflected their priorities, and did not respond to the needs of the public. Since then, cable rates surged by more than 50 percent, local phone rates went up by 20 percent, and scores of media companies merged, denying consumers choice and competition, and depriving our democracy of diverse viewpoints. These mistakes should not be repeated." The coalition is calling for "...an open and transparent legislative process that involves the public in meaningful ways."
| Legislative laundry list |
 Arbitron acquires Integrated Radio Systems
Only days after it set up an office in Houston (9/1 RBR #172), Arbitron has acquired the assets of New Orleans-based Integrated Radio Systems for 4.5 million in cash. IRS provides automated sales software that combine a customer relationship management system with scheduling and research applications and with inventory/pricing management tools. "The Integrated Radio Systems software solutions are an ideal addition to the current portfolio of software services that Arbitron offers our radio station clients," said Owen Charlebois, president, U.S. Media Services, Arbitron. "By combining the talent and resources of both organizations, Arbitron will be better able to develop new software solutions, based on a common platform, that will give to our station customers powerful tools to manage their advertising sales and their commercial inventory." "Arbitron is the perfect company to take Integrated Radio Systems software to the next level," said John Poche, president and owner, Integrated Radio Systems. "We look forward to being an integral part of the Arbitron team. The increase in resources, training and support we gain with Arbitron will be a huge benefit for our clients." Poche is joining Arbitron as Vice President, Sales Management Software.
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Adbiz©
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PPM demo: Radio is a Reach medium
The PPM demo results presented in Houston yesterday by Arbitron PPM President Pierre Bouvard (see Radio and TV News) determined radio is a Reach medium: "For decades, many in media have called radio a frequency medium-the ability to get to people repeatedly," said Bouvard. "But this data clearly says that is actually a misconception. Radio is actually a reach medium...In Houston, Clear Channel with the diary is reaching one out of five people. With PPM, it is reaching nearly one out of eight P12+ consumers." The same with the other groups there-significant increases. KODA-FM went from 15% of the market with diaries to 40% with PPM. With their visits with advertisers and agencies, Bouvard mentioned this is the point they really emphasized: "Radio is a reach medium and it doesn't now it. But now it does. Whether it's a Jon Mandel or a Kathy Crawford, this is the story they kind of focused on-radio's ability to be used as a reach medium in the medium mix. Hour by hour, throughout the day, you can see the PPM showing higher cumes. It starts out with 5-7 AM M-F showing virtually identical cumes to the diary. And then, literally beginning at 8AM you see far more cume throughout the entire day and on to the evening."
 Zubi resigns Masterfoods account
Miami-based Zubi Advertising has resigned the U.S. Hispanic account for Masterfoods after six years, citing the companies declining interest in the Hispanic market. The marketer's longtime head of Hispanic marketing, Ethnic Marketing Manager Roberto Garcia, left the company in March to join Cingular in a Hispanic marketing role, and has not been replaced at. Although most marketers are paying more attention to the fast-growing Hispanic market, Masterfoods started out as a 4 million account when Zubi won the business in 1999 and is now reportedly spending less than 1 million. Zubi did campaigns for Snickers, M&M's, Skittles, Starburst and Twix, and helped Masterfoods develop and test a short-lived product, Dulce de Leche M&Ms, a caramel flavor popular in the Hispanic market.
Mini Cooper taps Hasan for review
Hasan + Co. Raleigh, NC has reportedly been hired by BMW's Mini Cooper to oversee the review for its 25 million account. Crispin Porter + Bogusky Miami resigned the business for the Volkswagen of America account (9/7 TVBR #175).
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| Media Markets & MoneyTM |
 Can Snowe melt regulatory expense?
Senator Olympia Snowe (R-ME), Chair of the Senate Committee on Small Business and Entrepreneurship, thinks she has a way to find a nice pile of cash for US businesses in general and small businesses in particular. Business won't get back all 1.1B spent annually just to assure compliance with federal rules and regulations, but she does hope that a chunk of that amount stays with the business. According to an SBA Office of Advocacy Report, big companies - - those with 500 or more employees - - spend an average of over 5.2K per employee on regulatory costs. Small, 20-employee-or-less companies face a 45% greater hit, averaging over 7.6K per employee. "Once an idea becomes a regulation, it never seems to change - - even when the times change or technology modernizes, and the regulation no longer makes sense," said Snowe. "The goal of my legislation is to ensure agencies don't impose unnecessary burdens on small businesses that hinder their ability to create and retain jobs. Small businesses that drive our economy should be free to focus on creating jobs. That's why we must remain committed to regulatory reforms that allow our small businesses to excel and grow." Snowe has several bills on the table to this end.
RBR observation: A lot of broadcast companies qualify as small businesses, and due to the nature of the business, they face a greater regulatory burden than most. Snowe is also on the Commerce Committee, so it may be useful to remind her to make sure she ropes in the FCC when putting through reforms to benefit small businesses.
Bible gains Gainesville outlet
Lowell Davey's Bible Broadcasting Network is moving into the Ocala, or sourthern side of the Gainesville-Ocala market in central Florida. It has a 250K deal with Walkier Information & Education Institute for WWKO-FM, which itself if on the south side of Ocala in Belleview FL. The noncom station was already using a Religious format.
Salem raises Q3 guidance
With CEO Ed Atsinger and CFO David Evans due to make a presentation today at a Deutsche Bank conference, Salem Communications announced that it is raising its guidance to Wall Street for Q3. The Religious/Conservative Talk radio specialist is now projecting quarterly revenues of 50.3-50.8 million - - an increase of 300K from its previous guidance issued in August. Salem continues to project same station net broadcasting revenue growth in the mid-single digits.
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| Washington Beat |
 We can stop those phone calls...for 99.95
If you are like us, you put your name on the FCC's Do Not Call registry at your earliest opportunity - - we got our family's phone number listed on the very first day. But if you were a customer of Telephone Protection Agency, you started receiving "protection" from unwanted telemarketing calls before there even WAS a list. And you almost certainly bought this protection from: a telemarketer. TPA said they would provide this "service" for as much as 99.95. Further, it said it would send a monthly list of its clients to "companies nationwide" indicating that the client did not want to be contacted by telemarkers, a promise that TPA allegedly did not make good on. TPA has already been dealt with. The current FTC action bars two former TPA employees, both of whom are barred from telemarketing any similar services. One, a former VP with the firm, is also required to pay a monetary judgment of almost 673K; another will have to pay the same amount if it turns out his claimed inability to pay is false.
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| Programming |
 Fox News Radio adds Shepard Smith
Shepard Smith will anchor a signature five-minute newscast, The FOX Report with Shepard Smith, on FOX News Radio beginning Monday, September 26th, announced Kevin Magee, Senior Vice President, FOX News Radio. In making the announcement, Magee said, "We are pleased Shep will become a permanent fixture on FOX News Radio. He is a star anchor and reporter and listeners will now be able to hear his familiar voice on both television and radio." Broadcasting at 5PM/ET each day, the newscast will wrap up the day's events and the latest news in the familiar FOX News style and will be offered to all five-minute FOX News Radio affiliates.
Jack-FM NYC drops 2.5 to 1.7
in latest Summer Arbitrends
Infinity's move to blow up Oldies WCBS-FM NY to Jack-FM still seems to be a bad move, this time according to the Phase II (the first survey period with the new format) vs. Phase I Summer Arbitrends. The station is down to 22nd from 17th place to a 1.7 P12+, below sister WNEW at a 2.1. However, Infinity's other two big-market Jacks did better in Phase II Trends-KCBS-FM LA and former Oldies WJMK-FM Chicago.
RBR observation: It will be interesting to see if a question is asked of Mr. Hollander at the NAB Super Group Session Thursday of not only the fall off the planet of WCBS-FM but the justification of that 31 million bucks and counting that went with it just to be first in NYC with Jack which in this case only Jack could turn out to be just the first one-half of the format descriptive.
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| Transactions |
500K KSSO-FM CP Norman OK & KQUJ-FM CP Ada OK from The Sister Sherry Lynn Foundation Inc. (Sherry L. Austin) to Family Worship Center Church Inc. (Jimmy Swaggart). 50K escrow, balance in cash at closing. KSSO-FM CP is for Class A on 89.3 mHz with 4.5 kw @ 164'; KQUJ-FM CP is for Class C2 on 88.7 mHz with 31 kw @ 240'. [File date 8/12/05.]
400K WMVA-AM Martinsville VA. 100% of Martinsville Broadcasting Company from Billy D. & LInda R. Wilson to William D. Wyatt Jr. 20K cash at closing, 20K six months thereafter, 360K note. Duopoly with WHEE-AM. LMA 7/22/05. [File date 8/9/05.]
N/A WZFB-AM Fair Bluff NC from Good Samaritan Communications of Pioche Inc. (Michael Augustus) to Solomon Radio Partners Inc. (David Solomon). Station being transferred in exchange for an FM transmitter and unspecified stock in Good Samaritan. [File date 8/11/05.]
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| Stock Talk |
Interest up, stocks down
Mr. Greenspan is down on inflation, and added another quarter percent to the prime rate, upping it to 3.75%. The result was that it pretty much didn't matter what business you were in - - your stock was going down. If you got to use black in and pocket a nickel per share, you had a good day.
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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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40.91
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-0.39
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Jeff-Pilot
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JP
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50.32
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-0.36
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Beasley
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BBGI
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12.77
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-0.74
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Journal Comm.
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JRN
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14.90
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-0.01
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| Citadel |
CDL |
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13.28 |
-0.24 |
Radio One, Cl. A
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ROIA
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13.33
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-0.13
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Clear Channel
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CCU
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32.74
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-0.24
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Radio One, Cl. D
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ROIAK
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13.36
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-0.09
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Cox Radio
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CXR
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15.11
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-0.04
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Regent
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RGCI
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5.02
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-0.06
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Cumulus
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CMLS
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12.56
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-0.04
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Saga Commun.
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SGA
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13.50
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-0.14
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Disney
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DIS
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23.77
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-0.13
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Salem Comm.
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SALM
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16.99
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-0.18
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Emmis
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EMMS
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22.85
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-0.25
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Sirius Sat. Radio
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SIRI
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6.69
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-0.01
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| Entercom |
ETM
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30.04
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-0.50
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Spanish Bcg.
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SBSA
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6.80
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+0.05
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Entravision
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EVC
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7.37
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-0.07
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Univision
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UVN
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25.74
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+0.36
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Fisher
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FSCI
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46.09
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-2.15
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Viacom, Cl. A
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VIA
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33.70
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-0.40
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Gaylord
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GET
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46.68
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-1.08
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Viacom, Cl. B
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VIAb
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33.60
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-0.44
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Hearst-Argyle
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HTV
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25.20
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+0.04
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Westwood One
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WON
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20.00
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-0.06
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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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35.48
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+0.63
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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 "Post-Katrina broadcasting was radio at its finest"
(9/20 RBR #184):
I normally would not reply but I was horrified by the e-mail you printed from Peter Stormquist today. He must be the ONLY person in Washington Parish that thought WWL did a great job for them. Now I'm not trying to bash their efforts. They were wonderful for New Orleans and once or twice a day they made a passing mention of Washington or St Tammany Parish. What Mr. Stormquist did not mention was during that entire time, Jack Seymour was on WUUU, the ONLY station broadcasting in Washington Parish. Each day from 8AM until his voice died, Seymour manned the station.
| More... |
Sincerely,
Michael R. Schutta,
VP/Pittman Broadcasting
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More News Headlines
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TBS decides to
grin and Berra it
Turner Broadcasting System has settled out of court with baseball Hall of Famer Yogi Berra. The issue was a widely-displayed print ad plugging reruns of "Sex and the city" on TBS, which used Berra's name without his permission (his name was a wrong answer to a multiple choice question asking the definition of a Yogasm). Berry wanted 10M. According to ESPN.com, what he got was "substantial." And undisclosed. TBS will not use the promo any more, which last appeared in August 2004.
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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
Engineered For Profit - Budgets and Capital Expenditures: VPs/Engineeing say it straight up
Read RBR/TVBR in 2 simple steps:
1.Create a simple account with Zinio and download the Zinio Reader.
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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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NAB Radio and R&R
Conventions team up
After years of rumors about NAB consolidating its Radio Show with someone else they are now true. 2006 Radio Show will "co-locate" with the Radio & Records Convention September 20-22, 2006 at the Wyndham Anatole Hotel in Dallas. "There's no money changing hands here at all," noted NAB spokesman Dennis Wharton. All the PR was the blah blah on collective energies and fantastic celebration of radio.
RBR observation: We'd heard rumors that talks had been taking place for a couple of years on this (a timeframe confirmed now by Farber), with Farber and Bonneville International CEO Bruce Reese, now Chairman of the NAB Joint Board, as the principal proponents. After consolidation of the radio industry following the 1996 Telecom Act took its toll on attendance at the NAB Radio Show, it was inevitable that NAB would also have to consolidate. We don't see much synergy, though, with a programming/record convention. It would have made more sense to co-locate the NAB Radio Show with the RAB convention or to have an expanded Radio Show at its own hotel in Las Vegas alongside the spring NAB Convention. As for no money changing hands who is kidding whom or will NAB and R&R both charge the same price tag for admission. Money happens to be one of the oldest motivating factors so this one RBR can not swallow. At this point, NAB and R&R are committed to each other for only one year, so we'll see how this engagement progresses along. PS: It is called survival of conventions and many forget NAB had a Programmers convention in the '80s which built into the current show. Don't buy the one year test the milk before the cow theory either.
09/20/05 RBR #184
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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
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