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Volume 22, Issue 186, Jim Carnegie, Editor & Publisher
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Thursday Morning September 22nd, 2005
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Radio News®
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 No perfect storm to sink radio values
Despite sluggish revenue growth that's depressed stock valuations on Wall Street, panelists at the opening financial session of the NAB Radio Show said they're still strong private market demand for good radio properties, so no repeat of the "perfect storm" of the early 1990s when a revenue decline hit at the same time as a credit crunch. Rather, there was a new face on the lending panel for the annual Dickstein Shapiro-sponsored event - - Ivan Zinn of HBK Investments, the first representative of radio's newest money source, hedge funds. He said hedge funds are looking for new opportunities due to a lack of opportunities in their traditional investments. "Hedge funds are willing to make the bet on the value of FCC spectrum," he said. Traditional lenders on the panel said they were not concerned so much about Wall Street beating down radio stocks, but rather on a borrower's ability to repay the loan, so they still like radio buyers with good management teams. "Radio has always come back," noted Saga CEO Ed Christian in the group head panel. Don't look to see the double-digit revenue gains of the dot-com period, but he thinks growth of 4-5% a year is sustainable. Indeed, Bear Stearns analyst Victor Miller had led off the session by detailing how radio companies had added inventory around 2001 because they were so highly leveraged after billions of dollars of consolidation transactions, leading to a situation now where satellite radio companies, who have yet to produce a penny of cash flow, command much higher valuations from investors. "There's still a stigma out there that the terrestrial radio business trajectory is going the wrong way," Miller said.
 Group heads back
HD Radio fast track
"God bless the Detroit broadcasters," said Saga CEO Ed Christian as group heads on the opening financial panel of the NAB Radio Show gave a unanimous thumbs up to HD Radio. In Christian's view, convincing the auto makers that HD is viable and should be put into their cars is key to making terrestrial digital radio a success. Sitting just a few seats away was a recipient of that blessing, Greater Media CEO Peter Smyth, whose company has its three Detroit FMs not only broadcasting in HD, but each with an HD2 channel as well. "Content and HD Radio are going to work hand-in-hand together," he said of the challenge to get the public to embrace the new technology. Smyth also noted the advantage of offering the public an advertiser-supported digital service, free to the consumer. "With gasoline at 3.50 a gallon, do you think people are going to pay 12 dollars to listen to the radio?" he asked, referring to the satellite pay radio services? While TV has been moving slowly through its digital conversion, Christian said radio is moving much faster to digital because of the industry consortium that came together to back Ibiquity Digital in developing what's now called HD Radio.
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Radio groups advised to innovate, go private
"We are great at developing content," said FigMedia1's Bill Figenshu said at an NAB Radio Show session on the future of radio, but then added, "We suck at marketing ourselves." He sees promise in HD Radio, but says the industry has about two years to get its act together and speak with one voice to make consumers want HD receivers - - "Otherwise, this is going to smell like AM stereo." Figenshu also said that broadcasters shouldn't "cheap out" content for HD multichannel after spending hundreds of millions to install HD equipment. "The web is our entre to the future," was the view of Jon Coleman of Coleman, who criticized radio stations for putting lots of self-promotional material on their websites, rather than finding out what users would really like to have - - what would make them come to the site regularly. "If radio becomes a website medium and an in-car medium, then it's got a shot," said John Parikhal of Joint Communications. All three called for radio companies to start encouraging innovation, reward employees for developing new ideas (even those that don't work out) and look at ways to repurpose content into new media opportunities. But how do you do new things without upsetting corporate bean counters? Figenshu said a market manager could focus on one station at a time, rather than the entire cluster, for something like developing a destination website. But Parikhal had a more extreme suggestion: "Take your company private. Everyone will be so much better off."
 Think tranq? FDA looking at pharma ads
The Food and Drug Administration's Division of Drug Marketing, Advertising and Communications has a meeting set for the beginning of November which will address issues which could have far-reaching implications for pharmaceutical direct-to-consumer (DTC) advertising. How does getting FDA pre-approval for a TV ad grab you? And that's just part of it. FDA is concerned about a number of issues. One is the balance struck in an ad between user benefit and risk - - the nature of advertising is to show a drug-user enjoying a positive result. Meanwhile, it's unthinkable that a person would be portrayed in the grip of an unwanted side effect. FDA is concerned that the non-expert targets of DTC advertising may not have the background knowledge to make an informed decision. Also under question are audience-targeting practices, comparison advertising (again focusing on the lack of expertise of the audience), inclusion of medical devices under regulation, and use of new media. FDA also wants to look at possible actions against violators. It also is looking at current regulation which requires that advertisements be made available at the time they are released to the public - - FDA says that's obviously too late, and wants material submitted for approval before going public. The two-day meeting, which will solicit commentary from "individuals and groups most affected by DTC promotion, including consumers, patients, caregivers, health professionals (physicians, physicians' assistants, dentists, nurses, pharmacists, veterinarians, and veterinarian technicians) managed care organizations, and insurers, as well as the regulated industry," is scheduled for 11/1-2/05.
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Emergencies are bilingual
A trio of public interest groups have noted yet another problem exposed by the onslaught of Hurricane Katrina. When KGLA-AM was knocked off the air, it left the New Orleans market without its one and only Hispanic broadcast facility, and left the market's Spanish-speaking population in an emergency information black-out. The groups have filed a petition with the FCC seeking to redress this problem in New Orleans and elsewhere by requiring the Emergency Alert System (EAS) announcements be made on a multilingual basis. The petitioners include the Minority Media and Telecommunications Council, The Office of Communications of the United Church of Christ and the Independent Spanish Broadcasters Association. They said, "Many Latinos, Vietnamese, and other minorities in these communities had little to no advance warning that this country's worst natural disaster in recent history was at their doorstep." They ask that Presidential level messages be aired in English and Spanish; that state and local EAS planning designate a Local Primary Spanish (LP-S) and Local Primary Multilingual (LP-M) station, and that each has a backup in the event it is forced off air. Further, it would ask that other local broadcasters do what they can to return the LP-S and LP-M stations to operability in that event.
 FM Auction on ice?
Some 170 FM CPs were to go on the block 11/1/05. It looks like that won't happen now, and the buzz is that the auction will be delayed until after the new year kicks in. If that happens, of course, the upcoming upfront payment deadline of 9/30/05 will also be moved back. A source says that the FCC will make a public announcement on the situation shortly. On the plus side, it's said that the FCC will publish the status of submitted Form 175s - - the application window closed back in mid-August - - and will give filers a chance to spruce up any which are incomplete or otherwise unacceptable. Hot properties include Class A on 95.5 mHz at Indian Springs CA; a Class A on 98.5 mHz at Satellite Beach FL; and a Class C on 105.5 mHz at Vale OR - - all of these have carry a minimum opening bid of 200K. The second tier, with openers set at 150K, includes a Class A on 106.3 mHz at Jenner CA; a Class A on 106.9 mHz at Nanakuli HI; a Class A on 99.7 mHz at Westwood KY; a Class C on 101.5 mHz at Drummond MY; a Class C1 on 92.7 mHz at Ocracoke NC; a Class C1 on 94.5 mHz at Enderlin ND; and a Class A on 100.1 mHz at Brandon SD.
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Adbiz©
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 Emmis signs multi-year deal
with Media Monitors
From the NAB Radio Show: Media Monitors has signed Emmis Radio to provide its PaperVue ad tracking service of major newspapers in addition to its radio monitoring service. Emmis will be using this service at its New York, Los Angeles, Chicago, St. Louis, Phoenix, Indianapolis and Austin clusters. Users of can view newspaper ads, the ad's page number and a visual of the ad itself. This information can then be directly viewed against radio spot placement and frequency for the same advertiser, or compared with similar advertisers. Rick Cummings, President of Emmis Radio, says, "We're pleased to continue our relationship with Media Monitors," and explains his company's interest in adding newspaper ad results to their radio ad analysis capabilities: "To succeed in radio sales, prep work is more important than ever. The new PaperVue service from Media Monitors will help our sales teams learn about newspaper ad campaigns in their markets."
Ad spend grows faster than economy
According to data recently released by TNS Media Intelligence, total advertising expenditures for the first half of 2005 increased 4.5%, compared to the same period in 2004, to 70.5 billion.
| Read More... |
 Westwood One now repping
all Dow Jones programming
Dow Jones & Company and Westwood One announced an extension of their current marketing alliance to include ad representation for all Dow Jones radio programming. Since 1999, Westwood has distributed and marketed the MarketWatch Radio Network, part of Dow Jones' recently acquired MarketWatch subsidiary. Under the new agreement Westwood will provide advertising representation for The Wall Street Journal Radio Network whose programs include The Wall Street Journal Report, Dow Jones Money Report, The Wall Street Journal This Morning and The Wall Street Journal This Weekend. The combined Dow Jones radio programs air on more than 453 affiliates with a total weekly audience of over 19 million people.
CC Radio taps Ronning Lipset for online ad sales
Clear Channel Radio's Online Music & Radio unit has named Ronning Lipset Radio as its exclusive, national third-party rep firm for its online properties. Ronning Lipset will focus on national sales for CC Radio's network of 1,200 radio station websites and exclusive, on-demand programming. Also under the agreement, Ronning Lipset will consult on the creation of systems that will quantify the value of national advertising on the Online Music & Radio network as well as be housed at the Katz Radio offices in NYC. "The market has been eagerly awaiting a traditional radio company to jump into the online radio space with both feet," said Andy Lipset, managing partner of Ronning Lipset Radio. "Clear Channel's innovative approach to online content and massive audience reach bring tremendous credibility to the market in general and greatly increases the unduplicated audience reach of online listeners." Clear Channel Radio's online streaming audience ranked third in the most recent Arbitron/comScore ratings of online streaming radio, with some 850,000 unique visitors for July.
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| Media Business Report |
 Trouble in printville
Two major newspaper companies are trimming staff in an effort to deal with weak advertising and declining readership. The New York Times Company is said to be cutting some 500 jobs, representing 4% of its total workforce. That will include newsroom cuts at two of its most important publications, the New York Times, which will shed about 45 positions, and the Boston Globe, which will lose about 35. Meanwhile, two Philadelphia newspapers owned by Knight-Ridder, the Philadelphia Inquirer and the Philadelphia Daily News are going the same route, cutting 15% (500 to 425) and 19% (130 to 105) respectively. In addition to weak advertising and decreasing circulation, the failure to attract young readers was cited - - they seem to be heading to online sources for their news and information.
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| Media Markets & MoneyTM |
Hazlet FM gets religion
WDDM-FM, which serves the Monmouth-Ocean market from its perch in Hazlet NJ, is going to a non-profit organization which will put the station on Eternal Word Television Network's Global Catholic Radio net. The organization is Domestic Church Media Foundation, which has as a goal the provision of Catholic radio programming to parts of Pennsylvania, New York and New Jersey - - and this acquisition will get it into the parts of the latter two state, including the northern Jersey shore, Staten Island and Brooklyn. Seller WVRM Inc. will get 500K cash, less LMA payments which will amount to 7K/month.
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| Washington Beat |
Commerce hearing delayed
The Senate Commerce Committee has moved back the second session of its hearing entitled "Communications in a Disaster" a little over a week. It will now take place Thursday 9/29/05, instead of next Tuesday 9/20/05. They've also announced the two witness panels. The first panel will be a solo outing for FCC Chairman Kevin Martin. Following him on Panel #2 will be Bill Smith, Chief Technology Officer, BellSouth; Paul Roth, Executive Vice President, External Affairs and Public Relations, Cingular Wireless; Jeffrey Citron, Chairman and Chief Executive Officer, Vonage; and Hossein Eslambolchi, President, AT&T Global Networking Technology Services and AT&T Labs CTO & CIO, AT&T. Obviously, they're mainly interested in phone service this time around.
Correction: Feingold still a Democrat
Thanks to the alert reader who noted our inadvertent publication of the following in our story on FEC v. Club For Growth: Russ Feingold (R-WI). It should have read Russ Feingold (D-WI). We apologize to both parties, which were no doubt equally shocked.
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| Programming |
 Programming exec super session
highlights talent, music, technology
At the NAB Radio Show Programming Executive Super Session yesterday moderated by consultant and former Infinity Radio President Dan Mason, five panelists touched on some very valuable tips in recruiting talent, working with PDs, the future of terrestrial formats with HD-2 and what PPM will bring to the table for programmers. The panelists included:
Beverlee Brannigan, Operations Manager, Journal Broadcast Group
Bob Moody, Vice President of Programming, Regent Communications
Jimmy Steal, pictured, Vice President of Programming, Emmis Communications
Bill Tanner, consultant and former Executive Vice President of Programming, Spanish Broadcasting Systems
Doc Wynter, Vice President, Urban Programming, Clear Channel Communications
Answering the question, How do you recruit talent?, Steal noted, "Often times, Emmis has found a lot of success outside of radio...It's easier to teach somebody to be disc jockey than to teach them to be funny or compelling...Big Boy at Power 106 in LA had never cracked a microphone in his life. Our all-night crew aren't even disc jockeys, they're mixers. If you're at a party or a mall or a club and you see someone successfully holding court in front of people who are congregating, that's a talent and skill we need in radio."
| Read More... |
 X Radio signs
Jefferson Pilot Radio Network
X Radio, Excelsior Radio Networks' program/services syndication division, announced it will now provide affiliate sales and marketing for Jefferson Pilot Radio Network. Jefferson Pilot Radio Network is anchored by Marconi nominees Bob & Sheri, who currently air on over 60 affiliates including Jefferson Pilot's WLNK-FM/Charlotte. The network also distributes WLNK's Matt & Ramona and Pam Stone. Bob & Sheri and company will be X Radio's anchor properties in Personality Talk. "The women-skewed, high-value demographics that are attracted to this brand of radio match up beautifully with advertisers' targets," commented Kirk Stirland, President of X Radio. "JP has a leg-up on what is truly the next money format." X Radio and Jefferson Pilot will employ extensive lifestyle research to develop the Personality Talk format. "We've discovered through diary analysis a surprising and powerful fact, that is very convincing for the viability of this format," said Stirland. "We'll have specific market presentations finished very soon." Excelsior's advertising sales division Dial Communications-Global Media (Dial-Global) will continue as Jefferson Pilot Radio Network's exclusive ad sales rep.
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| Transactions |
90M KLOK-AM & KBRG-FM San Jose CA from Entravision Holdings LLC, a subsidiary of Entravision Communications Corporation (Walter F. Ulloa) to Univision Radio License Corporation, a subsidiary of Univision Communications Inc. Buyer will stock to seller equal to announced value of the deal. San Jose is embedded in nearby San Francisco radio market by Arbitron. In San Jose, Univision owns KVVF-FM Santa Clara. In addition, in San Francisco, Univision owns KSOL-FM San Francisco & KVVZ-FM San Rafael. There will also be cross-ownership with KDTV-TV San Francisco & KFSF-TV Vallejo. LMA until closing. [File date 8/15/05.]
600K KTEO-FM Wichita Falls TX from Cornerstone University (Lee A. Geysbeek, VP/bcg) to Educational Media Foundation (Richard Jenkins). 30K escrow, 120K cash at closing, 450K note. LMA until closing. [File date 8/16/05.]
350.1K KOCR-AM Joplin MO from Ozark Christian College (David R. McMIllin) to ZRG Tower Company Inc., a subsidiary of Zimmer Radio of Mid-Missouri Inc. (James R. Zimmer, John P. Zimmer, James L.Zimmer). 15K escrow, balance in cash at closing. Superduopoly with KWAS-AM, coming in separate concurrent transaction, and KJMK-FM, KXDG-FM, KIXQ-FM & KSYN-FM. [File date 8/12/05.]
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| Stock Talk |
Oily to bed, oily to drop
Yesterday it was interest up, stocks down. Today its oil up, with Mexico Gulf refineries in the path of yet another hurricane, and stocks down. Words to live this week have pretty much been "look out below."
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| Radio Stocks |
Here's how stocks fared on Wednesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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39.99
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-0.79
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Jeff-Pilot
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JP
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49.60
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-0.67
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Beasley
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BBGI
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12.76
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-0.05
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Journal Comm.
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JRN
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14.86
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-0.01
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| Citadel |
CDL |
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13.15 |
-0.17 |
Radio One, Cl. A
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ROIA
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13.16
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-0.19
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Clear Channel
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CCU
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31.88
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-0.73
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Radio One, Cl. D
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ROIAK
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13.15
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-0.17
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Cox Radio
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CXR
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14.74
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-0.30
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Regent
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RGCI
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5.04
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+0.01
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Cumulus
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CMLS
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12.16
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-0.37
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Saga Commun.
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SGA
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13.08
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-0.47
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Disney
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DIS
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23.33
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-0.42
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Salem Comm.
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SALM
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17.34
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+0.27
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Emmis
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EMMS
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22.12
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-0.73
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Sirius Sat. Radio
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SIRI
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6.59
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-0.09
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| Entercom |
ETM
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29.14
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-0.86
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Spanish Bcg.
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SBSA
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6.60
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-0.23
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Entravision
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EVC
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7.26
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-0.11
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Univision
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UVN
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25.84
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+0.06
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Fisher
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FSCI
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45.00
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-1.33
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Viacom, Cl. A
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VIA
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33.02
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-0.73
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Gaylord
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GET
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46.00
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-0.87
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Viacom, Cl. B
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VIAb
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32.90
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-0.64
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Hearst-Argyle
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HTV
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24.88
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-0.31
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Westwood One
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WON
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19.49
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-0.50
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Interep
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IREP
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0.53
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-0.03
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XM Sat. Radio
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XMSR
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35.37
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-0.11
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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]
Frank Boyle a Broadcast Hall of Famer and never one to mix words had a few on the NAB successor to Eddie Fritts. As our report in short stated 09/16/05 RBR #182 - Talk about POing The Senator - Stevens, it would seem, is not someone that broadcasters would want to piss off. He chairs the Senate Commerce Committee, which oversees the FCC and pretty much all legislation dealing with radio, television and cable. RBR observation: As Chairman of the NAB Joint Board last year, it was Lombardo who set this whole process in motion by giving Eddie Fritts a none-too-subtle nudge to retire. RBR/TVBR 1st broke the story during the April 2004 NAB Convention in Las Vegas
(4/20/04 RBR #77).
 James:
When you're right -you're right. How about frequent editorial on same?? Or better yet - do interview - with pix - with Eddie Fritts and Bruce Reese--ask all the tough questions..?? Where are the gutsy--hard drinking--hard playing pioneers who got us here--with damn little money but a plethora of balls and dreams? They'll tell you that NAB loses money on Fall Radio NAB. My rebuttal on that is--please get out of the way--let the NAFMB & NRBA Rifle Assn take it back and do pure balls out radio. We don't need the NAB infrastructure to run up unnecessary expenses. Let Dick Ferguson be President-Exec Director--or Carl Brazell--Bill Hogan--Bud Stiker--George Hyde..hell, I'll be on the Board. You (RBR) could be the spearhead of the most important all radio org of this century--exactly what the business needs.
| Read More... |
Frank Boyle,
President,
Frank Boyle & Co.
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Radio Media Moves
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Robbins goes digital
Dave Robbins has been named Director, Digital Programming at Infinity Broadcasting, overseeing Infinity's HD radio efforts and strategy, primarily the development and expansion of the company's multicast stations. He will continue in his current position as Vice President and General Manager of WUSN-FM & WJMK-FM Chicago.
Go West to the library
Donald West, longtime Editor-in-Chief of Broadcasting and Broadcasting & Cable magazines and former assistant to the president of CBS Inc., has been elected President and CEO of the Library of American Broadcasting Foundation, effective September 15th. He has been an active member of the LABF board for the last three years.
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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
Media Markets & Money - Halfway through 2005, Viacom, Univision register top deals. We cover them all with the analysis you expect.
Read RBR/TVBR in 2 simple steps:
1.Create a simple account with Zinio and download the Zinio Reader.
2. You can then download the
September Issue of RBR/TVBR
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RBR Radar 2005
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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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. Citadel and Emmis received trims from Wachovia but sticking to its guns on predictions for Cox, Cumulus, Entravision, Radio One, Saga and Univision saying niche groups, such as these are in the best position for year-over-year g! ains, and it also likes Entercom due to low debt leverage and its "disciplined acquisition strategy."
09/21/05 RBR #185
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ABCRN Producer
ABC Radio Networks needs a motivated, creative, talk radio producer for a nationally syndicated daily talk show targeted to women. Must have a love for news and current events, possess superb writing skills, a terrific sense of humor, and work well under pressure. No Calls. EOE
See Radio Careers
Account Executive
Radio People of Jackson, MS (WUSJ, WYOY, WJKK and WIIN) are interested in talking to any displaced sales executives from the Gulf Coast area. Nancy Fletcher 601-956-0102 EOE
See Radio Careers
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