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Welcome to RBR's Daily Epaper
Volume 24, Issue 185, Jim Carnegie, Editor & Publisher
Friday Morning September 21st, 2007

Radio News ®

Markets re-ranked for Fall
When you arrive in Charlotte next week for the NAB Radio Show, you will be in a Top 25 market, up from #33 following an expansion of the metro. Another big change in the latest re-ranking of Arbitron markets - Boston is back in the Top 10, Detroit is out. Arbitron demographer Dan Estersohn notes that the Charlotte-Gastonia-Rock Hill, NC metro will be almost 30% larger than before, which had a major impact on its ranking. In the Top 10, fast-growing Atlanta market has jumped ahead of Washington, DC, into the #8 slot. The difference between Boston and Detroit is only 8,100 people, but the slight decline in Detroit and slight increase in population estimates for Boston pushed Beantown back into the Top 10. Post-Katrina, New Orleans is coming back. The population estimate increased by 7.5% and raised the Big Easy to #55, up from its previous #57 ranking. Where is your market now? Here's the complete list of 302 Arbitron markets, from New York, NY to Aspen, CO.
| View the List |

Election day approaching fast
Clear Channel shareholders vote next Tuesday on whether to sell the company to private equity and go private. With ISS now onboard (9/19/07 RBR #183), Bear Stearns analyst Victor Miller predicts the deal will get the required two-thirds shareholder support. Once the deal has gotten shareholder approval, Clear Channel can file for antitrust regulatory approval, and Miller figures closing could come as soon as Thanksgiving. At Wednesday's closing stock price of 37.72, he calculates the radio take-out multiple at 10.5 times 2007 EBITDA, compared to his earlier estimate of 9.4 times in May. Under the going private deal, shareholders will be able to choose whether to take 39.20 per share in cash, or convert their shares to new shares in the private company, which will not be listed on any stock exchange. What, then, is the value of that equity "stub," Miller asked, then provided clients with an answer based on his observations of the market. "At 37.72, and assuming a 20% minimum return on deal stocks, a mid-November to mid-December close and a 20% pro-ration, we believe that the value of the 'stub' ranges from 36.96 to $40.06, a 6% discount to 2% premium to the proposed 39.20 cash price," he wrote.


Arbitron execs herald
NYC launch of PPM

Arbitron Sr. VP of Ratings Services Jay Guyther proudly told reporters that the company's Portable People Meter (PPM) ratings service launched at its in-tab goal for New York, as pre-currency measurement began yesterday. As with previous markets, the problem demo is Persons 18-34, which is at 66% of target in the core New York market (excluding the embedded Nassau-Suffolk and Middlesex-Somerset-Union markets), compared to 91% for Persons 6+. Those figures were as of August 29th and Guyther said the in-tab numbers had grown by over 200 since then, so he declared the launch to be on target.

Meanwhile, Arbitron President of Sales and Marketing Pierre Bouvard was upbeat on soon getting back to the company's PPM targets in both Houston and Philadelphia. As of the week of 8/23-29, Houston remained 140 under target for in-tab and Philadelphia 56 under. In addition to the New York launch, this week also brought the first appearance of ads from Arbitron in advertising trade publications to guide buyers on the conversion from diary measurement to PPM, along with more detailed brochures. Some readers had asked RBR why Arbitron is saying that 70 GRP under PPM "can equal" 100 GRP diary, rather than stating flat out that the two are equal, so we put the question to Bouvard.

"As you look at the brochure, one of the first things you're struck by is that the conversion ratios differ by daypart and by demo. So, depending upon your demographic - I'll give you an example. Let's say you had a male buy, and you were using a lot of nights and weekends, as you play with that chart you might discover that all of the conversion is probably around 80-85. However, if you had a female buy and were using heavy morning drive allocations, you might have a conversion that might actually be 65. So what we tried to do, the rule of thumb is you take the average. And, on average - we looked at the total 12+ rating listening in Philly and Houston - on average, it varied by month, but typically if you had a 1.0 average quarter hour rating in the diary, you have a 0.7 in PPM," Bouvard explained.

Revenues down 5.2% in August for Tribune
Radio/Entertainment revenues gained 0.9%, with credit for that given to Tribune Entertainment, but otherwise August was a down month for Tribune Company. Television revenues were down 4.6% and newspaper ad revenues dropped 7.2%. All in all, company revenues fell 5.2% to 391.2 million. Since Tribune doesn't break out its lone radio station, WGN-AM Chicago, we don't know how it did in August, but it apparently didn't have much impact on the larger numbers. For the Radio/Entertainment unit, Tribune said a decline in revenues from the Chicago Cubs was offset by higher revenues from Tribune Entertainment. Thus, Radio/Entertainment revenues rose 0.9% to 36.6 million. TV station group revenues declined 4.6% to 83.9 million. That is slightly worse than the minus 4.2% showing year-to-date. Those two units combined constitute the Broadcasting & Entertainment division, where August revenues were down 3% to 120.5 million. In publishing, the killer this year has been classified advertising, down 16.6% year-to-date and off 20.1% in August to 71.8 million. Otherwise, newspaper ad sales improved for Tribune in August. National gained 2.8% to 46.7 million and retail inched up 0.6% to 91.7 million. Newspaper advertising overall declined 7.2% to 210.1 million. Circulation was also down, so total newspaper revenues declined 6.1% to 270.6 million.


House FDA bill
steers clear of ad ban

The House of Representatives overwhelmingly passed a bill permitting the Food and Drug Administration to collect cash from users seeking drug approval and increases the FDA's tools to regulate drugs already on the market. But what was notable to the media community was the absence of a three year ban on direct-to-consumer advertising for newly approved pharmaceuticals. A clear victory for pharmaceutical companies, it was actually sealed over the summer when the ban was stricken from the bill in the House Energy & Commerce Committee's Subcommittee on Health and the bipartisan behest of Edolphus Towns (D-NY) and Steve Buyer (R-IN). Also surviving from the committee session, however, was a plank calling for a first-offense fine of 250K for any false or misleading advertising, which will rise to 500K for any further violations within a three-year period. According to Advertising Age, the legislation will also bulk up the FDA staff responsible for reviewing pharma ads. The bill is expected to have a similarly easy ride through the Senate and the Oval Office.

RBR observation: The onus for advertising content is on the advertiser, not the medium, so broadcasters need not worry about becoming a traffic cop for the FDA when it comes to pharmaceutical advertising. That said, a station is not serving its constituency when it allows sham products into its advertising mix. The FTC has guidelines for common false claims. It's a good idea to be familiar with them, and to view potential pharmaceutical clients with a healthy amount of skepticism with an eye to maintaining the credibility of your own station.

Watchdog launches another assault on Wal-Mart
Wal-Mart is one of the few companies big enough to have a watchdog entirely devoted to it and nothing else. WakeUpWalMart.com has been sparring with the retail giant for quite awhile, and its latest attack will badger the company for its China connection. A new :30-second TV spot called "Wal-Mart and China: How America's #1 Company is Putting America's Safety Second" will air in 32 markets.

RBR observation: That means there are 32 markets in which Wal-Mart may be interested in buying some time to defend itself.


Ad Business Report TM

Content Factory's "Web Buz" taps
Dial Global for ad sales

Jimmy deCastro's Content Factory has signed Dial Global for exclusive ad representation of its 'Web Buz" product-a 60-second, on-air and online audio and video news feature catered to a specific radio station's format and audience. Web Buz is a multimedia solution for terrestrial, satellite and HD radio, which continues to explore ways to integrate on-air and online relationships with listeners. Content, developed by Ken Kohl's Acquaint Media LLC, is based on the "MOST" concept, which notes the most searched, viewed, downloaded and e-mailed items on the web. Using that data, each Web Buz feature is not produced on the basis or whims of editors, anchors or journalists. Instead, target listeners will find the topics interesting because the news is chosen based on their likings. DeCastro tells RBR: "It's one of the most exciting executions of terrestrial on-air, as well as online content. Advertisers will be especially pleased because of its multiplatform appeal. We're very excited to usher in a new era of combining radio and the internet broadcasting. We're breaking new ground." Added David Landau, Co-President/CEO of Dial Global: "We all have great expectations and look forward to adding Web Buz to our RADAR lineup shortly."

HD Radio receivers to debut on QVC
The HD Digital Radio Alliance announced three popular HD Radio receiver models will premiere on QVC, 9/26 at 10 PM ET. The QVC show will feature the I-Sonic Audio Entertainment System from Polk Audio (QVC Item #E01896); the HD Pulse HD Radio Tabletop Clock Radio from Visteon, available with a cherry cabinet (QVC Item #E04071) or black cabinet (QVC Item #E04073); and the affordable Radiosophy HD 100 Receiver (QVC Item #E04093). In conjunction with the QVC offer, the HD Digital Radio Alliance will promote the upcoming HD Radio show on QVC with a national radio campaign reaching 100 markets.


NAB Daytime Planner

The following will be attending the NAB.
Call or email to make your
appointment in advance.

BANKERS
Peter H. Ottmar; Dover Capital Partners, LLC; Westin Charlotte; 401/723-1063 x103; cell 401/639-4958; [email protected]

Jacob J. Barker; Barker Capital; Hilton Charlotte City Center; (212) 332-4312; [email protected]

Brian Eick/Dave Meier; The Gladstone Companies; Omni Charlotte Hotel; Brian cell 847-612-3002, Dave cell 847-650-1735; [email protected], [email protected]

BROKERS
Todd Fowler/David Reeder; American Media Services; Westin Charlotte; 843-972-2200; [email protected]; [email protected]

Cliff Gardiner; Clifton Gardiner & Co.; Hilton Charlotte City Center; 303-758-6900; [email protected]

Andy McClure/Erick Steinberg, The Exline Company, Westin Charlotte, office 415-479-3484, Andy cell 415-497-3855, Erick cell (415) 209-4890, [email protected]. [email protected]

Frank Boyle; Frank Boyle & Co.; Residence Inn Charlotte Uptown; 203-969-2020; cell 203-249-7818;
[email protected]

Gordon Rice; Gordon Rice Associates; 843-884-3590; Westin Charlotte; [email protected]

John L. Pierce/ Jamie Rasnick; John Pierce & Company LLC; office 859-647-0101, John cell 859-512-3015; Jamie cell 513-252-1186, Westin Charlotte; [email protected]; [email protected]

Dick Kozacko/George Kimble;
Kozacko Media Services; office 607-733-7138; cell 607-738-1219; Westin Charlotte; [email protected]; [email protected]

Media Services Group; Westin Charlotte; www.mediaservicesgroup.com

Elliot Evers/Greg Widroe/Brian Pryor/Patricia Carberry-Harris;
Media Venture Partners;
415-391-4877; Hilton Charlotte City Center;
[email protected]

Larry Patrick/Susan Patrick/Greg Guy/Todd Wirth; Patrick Communications; 410-740-0250; Westin Charlotte; [email protected]

Glenn Serafin; Serafin Bros., Inc.;
office 813-885-6060; cell 813-494-6875; Westin Charlotte; [email protected]

Bill Schutz; Schutz & Company; Westin Charlotte; office 757-258-8740, cell 757-880-9251; [email protected]

Zoph Potts; Snowden Associates; Omni Hotel; office 252-940-1680, cell 252-717-3772; [email protected]

CONSULTING ENGINEERS
Richard Mertz, Dan Ryson; Cavell, Mertz & Associates, Inc.; Main Office 703-392-9090; [email protected]

TRAFFIC SYSTEMS
Shane Harris/Susie Hedrick; Marketron Broadcast Solutions; Booth #530; www.marketron.com; 208-788-6800; [email protected]; [email protected]


Media Markets & Money TM
Crawford to Crawford
A pair of Albany NY stations are moving from Donald B. Crawford to Donald B. Crawford. The seller, using licensee name Kimtron Inc., has a Sr. after his name and the buyer, using DJRA Broadcasting LLC, has a Jr. The stations are WDCD-AM, licensed to Albany and Clifton Park NY's WPTR-FM. The price is 4.05M. It becomes the third market for the junior Crawford, along with Dallas and Colorado Springs.

Sweet Home at home in Media One Group
The deal sending WFUN-AM, WYBL-FM, WREO-FM, WFXJ-FM and WZOO-FM in the Ashtabula OH market from Clear Channel to Sweet Home Ashtabula actually incorporates them into the Media One Group, which establishes its grouphood by combining the cluster with another five-station cluster of stations in Jamestown NY. Media One is headed by President/Managing Member Jim Embrescia and brother Tom, who is a member of the corporation, and includes Tom's son Matt as Executive VP. The Ashtabula operation is being headed up by VP/GM Dana Schulte.


Washington Media Business Report TM
FCC addresses DTV next week
Washington is exhibiting signs of heightened anxiety over the upcoming DTV transition almost every day lately. With any luck, the FCC will be able to soothe some nerves next week at its Digital Television Consumer Education Workshop, running all day Wednesday 9/26/07. Early arrivals at the session held at the FCC's HQ in Southwest Washington will be able to see demonstrations, including converter box use, digital televisions and comparisons to analog use. The rest of the schedule and a list of panelists is provided a click away.
| FCC DTV agenda here |

RBR observation: The list of panelists attending this session should allay some fears. It is a seemingly well-thought-out and comprehensive roster of VIPs (very interested parties). While we recognize the potential for disaster in the DTV transition, we also remember the disaster that didn't happen: anybody else remember the night our computer network was going to shut down because of Y2K? It seems that the appropriate individuals are taking the appropriate steps to make sure no analog TV owners are left behind on 2/17/09.


Entertainment Media Business Report TM
Dave Ramsey gets FBN TV gig
Nationally syndicated radio talk-show personality and personal finance expert Dave Ramsey has joined Fox Business Network (FBN) as the host of a primetime program, announced Kevin Magee, EVP/Fox News. The show's title and time slot are to be announced. The Dave Ramsey Show has been on the air for more than 15 years and can be heard on over 325 affiliates. In addition to his new responsibilities with FBN, Ramsey will continue to broadcast his radio show. FBN is set to launch next month.


Ratings & Research
NRF forecasts Holiday sales gain of 4%
The National Retail Federation released its forecast for the upcoming 2007 holiday season, predicting that sales will rise 4% this year to 474.5 billion. The 2007 holiday sales increase is expected to fall below the ten-year average of 4.8%. It would represent the slowest holiday sales growth since 2002, when sales rose 1.3%.

Radio continues to hold its audience
According to a nationwide poll from American Media Services, the latest AMS Radio Index found that 63% of American adults listen to the radio one or more times a day, which was consistent with AMS polls performed in August 2006 and April 2007. Listening was strongest within the key age group of 25-34, with nearly eight out of 10 (79%) saying they listen to the radio at least once a day. Nearly three out of four (74%) Americans say they are listening to the radio as much or more now than five years ago, a finding that was also consistent with prior AMS surveys. Similarly, 74% of Americans say they turn on the radio when they get into their car. That includes 72% of young adults ages 18-24 and 80% of those ages 25-34. On the other hand, subscribing to satellite radio remains flat at 11%. Those who have it like it, but among non-subscribers, 89% said they were unlikely to subscribe in the next 12 months - which was even higher than the 81% who said they were unlikely to subscribe in last April's survey.


HD RADIO 2007
AM HD Radio DXing
a whole new dimension

For those who were concerned AM nighttime HD Radio signals would interfere with existing "clear channel" nighttime reception of the classic analog 50-kW stations, rest easy (yes, there are lawsuits pending over this). It's all about directionalism with the antenna. Checking this all out recently in Northern Virginia with the Polk iSonic receiver (using the included external AM antenna), it was discovered that if your AM antenna is facing New York, for instance, HD signals from WOR (710) and WABC (770) will interfere with the analog signals of WGN Chicago (720) and WJR Detroit (760)-all as predicted. But if you turn the antenna, the opposite will happen and those analog signals from WGN and WJR will be quite clear. Yes, there is more interference on the dial overall, but it just makes the DXing hobby a bit more challenging. Of course, if you're driving in the car with no directional antenna capability, that all goes out the window.

Overall, the HD signal interference was less than expected. The only station so far (trying only once and not very late) to come in HD via skywave was WLW-AM Cincinnati. It came in very well and stable. What a difference digital makes! Perhaps it was because 690kHz had only a weak Canadian station airing and the left side HD signal was able to be received, analog interference-free? The switch back-and-forth from HD to analog on WLW was very minimal, but when it did, the broadcast timing was definitely off a few seconds-it does not seamlessly blend as with the FM side.

Big 100 getting upgraded
We've got an answer why CC Radio's Big 100 (WBIG-FM DC) has been all over the map lately, RF-wise (9/19/07 MBR). Said Jeff Littlejohn, CCR EVP/Distribution Development: "We're doing some major electrical upgrades to our transmitter site which has us operating on the backup at [sister] WWDC-FM. Unfortunately there is no HD at our backup site."


Transactions
17.5M KBBK-FM/KLNC-FM/KLIN-AM, KFGE-FM & KWBE-AM Lincoln NE (Lincoln, Milford, Beatrice NE) from Monterey Licenses LLC, a subsidiary of Triad Broadcasting Company LLC[ (David J. Benjamin) to NRG Licenses Sub LLC, a subsidiary of NRG Media LLC (Mary Quass). 1.75M escrow, balance in cash at closing. [File date 9/4/07.]

2.2M KBLO-FM Visalia-Tulare-Hanford CA (Corcoran CA) from Mapleton Communications LLC (Adam Nathanson) to Moon Holdings LLC (Abel de Luna). 110K escrow, balance in cash at closing. [File date 9/4/07.]


Stock Talk
A day to retrench
Stocks gave up some of their recent gains as companies reported a mixed bag of earnings results. The Dow Industrials declined 49 points, or 0.4%, to 13,767.

Radio stocks were lower. The Radio Index was off 1.638, or 1.3%, to 124.560. Salem reversed course and dropped 8.7%. Radio One Class D was down 5.4% and Class A 4.7%. Citadel dropped 4.9%. Giant CBS was among the losers, with its Class B down 4.1% and Class A 3.5%.


Radio Stocks

Here's how stocks fared on Thursday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

46.22

-0.48

Google

GOOG

552.83

+5.98

Beasley

BBGI

7.20

+0.52

Hearst-Argyle

HTV

25.60

+0.08

CBS CI. B CBS

31.39

-1.35

Journal Comm.

JRN

10.24

-0.24

CBS CI. A CBSa

31.52

-1.15

Lincoln Natl.

LNC

64.88

-1.44

Citadel CDL
4.28 -0.22

Radio One, Cl. A

ROIA

4.05

-0.20

Clear Channel

CCU

37.58

-0.14

Radio One, Cl. D

ROIAK

4.03

-0.23

Cox Radio

CXR

13.69

-0.12

Regent

RGCI

2.73

+0.05

Cumulus

CMLS

10.60

+0.01

Saga Commun.

SGA

7.36

-0.09

Debut Bcg.

DBTB

1.01

unch

Salem Comm.

SALM

9.04

-0.86

Disney

DIS

34.04

-0.52

Sirius Sat. Radio

SIRI

3.37

+0.02

Emmis

EMMS

6.16

-0.17

Spanish Bcg.

SBSA

2.61

-0.04

Entercom

ETM

19.74

-0.50

SWMX

SMWX

0.06

+0.01

Entravision

EVC

9.59

-0.01

Westwood One

WON

2.55

+0.05

Fisher

FSCI

49.76

-0.99

XM Sat. Radio

XMSR

14.25

+0.25


Bounceback

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
Ad Business Report
Content Factory's "Web Buz"
Taps Dial Global for ad sales...

HD Radio receivers
To debut on QVC /26 at 10 PM ET...

Media Markets & Money
Sweet Home at home in
The deal from CC actually incorporates them into the Media One Group...

HD Radio 2007
AM HD Radio
DXing a whole new dimension, for those concerned AM nighttime HD signals...




Stations for Sale

Florida Resort FM
Immediate ownership opportunity; partner retiring. Sale or equity investor, terms available. Rated market, high growth area. Excellent facility. Meet at NAB/Charlotte
E-mail: [email protected]

NewEng Collegetown FM
Highly profitable AC station w. Red Sox rights, owned tower, only signal in market. Asking 8.5x trailing BCF: 950K. Inquiries 781-848-4201 or
e-mail: [email protected]
WEB: radiostationsforsale.net

Market your Stations For Sale
in our daily epapers.

Contact
June Barnes
[email protected]


Arbitrends

Arbitron
Market Results
| Buffalo |
| Cincinnati |
| Dallas |
| Denver |
| Minneapolis |
| Pittsburgh |




TVBR - TV News

A royal to-do
over royalties

Ken Osmond is better known as Eddie Haskell, the iconic friend of Wally Cleaver on the "Leave It to Beaver" television show. He wants to know why he hasn't seen a penny of the 8M dollars showbiz union Screen Actors Guild is said to have collected from foreign royalties. According to the Associated Press, Osmond claims SAG has been collecting foreign royalties for over ten years for various uses of television and movie properties, supposedly on behalf of the actors who made them, but is simply sitting on the pile of cash. His complaint is in the form of a class action suit on behalf of himself and 30K other actors/stakeholders. SAG is said to have stated that coming up with a payout system is "complex" and hasn't been worked out as yet.

TVBR observation: All of which begs the question: Who really benefits when royalties are collected, the artists who are trotted out in front of congressional committees as compelling victims, or the organizations getting them to trot out there? If a union is having trouble compensating its own members with the royalties it collects, what can we expect from giant recording conglomerates? Are these companies, who often have an adversarial relationship with their own roster of artists, going to make sure the artists receive maximum benefit of new royalty collections from over-the-air and high priced Internet levies? Makes you wonder.




RBR Radar 2007
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

PPM heads to Broadway
Today's the day. Arbitron's Portable People Meter (PPM) begins pre-currency radio listening data gathering in the biggest US market, New York, after launching previously in Houston and Philadelphia. Anxious to avoid the in-tab shortfalls encountered recently in Houston and Philly, Arbitron over-installed the New York metro.

RBR observation: There is more in this issue of RBR. But, RBR will stay on PPM's progress in all shapes and forms. Reporting the Good, Bad, and Ugly as Technology Waits for No One.
09/20/07 RBR #184

Nielsen getting into
spot monitoring biz for radio
The Nielsen Company is launching a new spot monitoring system for radio called Nielsen SpotScan. It's an entirely new and separate product designed for local radio. SpotScan provides detailed ad tracking reports at the market and radio station level and offers exclusive expenditure data by specific advertisers; including the number of spots aired in each market, total ad spend across media (radio, local TV and newspaper), market share information, and month-by-month trends.

RBR observation: One thing for sure about Nielsen they believe in Technology and are the King of media research. Data is valuable and SpotScan will be strong Sales, Marketing, and Programming tool.
09/19/07 RBR #183

Big future seen for
Dow Jones assets

At the Goldman Sachs Communacopia XVI Conference in New York, News Corporation CEO Rupert Murdoch said people thought he was an idiot for starting Fox News Channel and buying MySpace, so it's no wonder they think he's an idiot for buying Dow Jones & Company. He sees a big future in demand worldwide for financial information as more and more people come out of poverty and begin to participate in world economic markets.

RBR observation: Rupert would do well to look at the history of CNBC if he thinks "Main Street" consumer news is the way to go with FBN. That was the original plan for CNBC - Consumer News and Business Channel. If failed miserably. NBC only made CNBC a success by throwing out all of its research on what consumers supposedly wanted, buying its spunky chief rival, Financial News Network (FNN), which didn't have the money for fancy research, and substituting the successful FNN format for the original failed CNBC format. People will tell researchers they want "consumer information." In truth, there is plenty available and they don't watch it. The stock market addicts watch CNBC religiously.
09/19/07 RBR #183




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General Sales Manager
America's Legendary CHR station, KDWB, looking for a world class GSM to lead a talented sales team! We have 5 questions for our next GSM to answer. If you can say Yes to some or all then lets talk. A college degree is preferred with two years related experience and/or training, or equivalent combination of education/experience. Clear Channel's KDWB, EEO--Hey, it doesn't get any better than this. Complete requirements, where to apply see Radio Careers

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