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Volume 23, Issue 188, Jim Carnegie, Editor & Publisher
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Wednesday Morning September 27th, 2006
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Radio News ®
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 Univision buyout vote today
The suspense ended earlier this month when Televisa said it would not be making a new bid for Univision (9/19/06 RBR #182), so acceptance of the buyout bid from a consortium headed by Haim Saban is pretty much in the bag. Shareholders of Univision vote today on whether to accept 36.25 per share, which values the US Spanish media giant at 13.7 billion, including debt assumption. Saban made his fortune from music for US television and then the mega-hit cartoon series "Mighty Morphin' Power Rangers." He has previously been involved in network/station ownership overseas, but this marks Saban's entry into the US market as an owner of station and network assets. He is starting out pretty big. Univision is far and away the biggest player in US Spanish television and radio. Its TV network regularly comes in #5 overall in the Nielsen ratings, beating not only its Spanish competitors but the smaller English nets as well - and it frequently beats one or more of the big four TV nets in selected time slots and demos. At the station level it is also a big player in US TV, with its O&O stations ranked by BIAfn as the #9-billing group last year, at 626.8 million. Meanwhile, Univision Radio is the 8th highest-billing US radio group, according to BIAfn, with 382.3 million in billings last year.
RBR observation: It will still take some time for this deal to get to closing. Saban and his equity fund backers will have to pay more than the 36.25 per share bid if the deal closes after April 26, 2007, so that is the target date to have this wrapped up. Then we will see whether Saban wants to sell any assets to reduce the debt load going forward. There has been lots of speculation about radio, since Saban has no radio background, but Univision Radio produces lots of cash flow for the company and is also important for promoting the TV/cable networks (Univision, TeleFutura and Galavision). The most likely unit to be sold is Univision Music Group, the poorly performing record labels. Of course, the problem with selling poorly performing assets is that no one will pay you a premium price for them.
 Arthur Liu expands
radio empire into TV
E.W. Scripps has found a buyer for its five-station group of local home-shopper television stations. Brokered multicultural radio specialist Arthur Liu is getting the TV group for 170M. His appropriately named Multicultural Radio Broadcasting will now make room at the board room table for sister Multicultural Television Broadcasting. The deal will result in radio/TV combinations in two of the markets. Brian Cobb and his crew at CobbCorp assisted Scripps in the sale after getting the assignment in June (6/2/06 TVBR #108). Multicultural is getting KCNS-TV in San Francisco, which clusters with KATD-AM, KIQI-AM & KEST-AM; WMFP-TV Boston, which will join WLYN-AM & WAZN-AM; and standalones WRAY-TV Raleigh-Durham NC; WSAH-TV Bridgeport CT (just outside New York, where Multicultural has five radio stations); and WOAC-TV Cleveland. Scripps previously sold the related Shop at Home Network to Jewelry Television for 17M, bringing its total take on the divestiture to 187M. It continues to own 10 broadcast network affiliate television stations, in Detroit, Tampa, Phoenix, Cleveland, Baltimore, Cincinnati, West Palm Beach, Tulsa and two in Kansas City.
RBR observation: Multi-ethnic video programming has pretty much been the domain of cable TV up until now. We are not sure if that's the direction Liu is going, but we'd have to expect that's what he has in mind. And if anybody can figure out how to transfer the concept from radio to television, Liu would be the one we'd bet on. He's been doing this for years now, working his niche in the nation's largest markets, flying beneath Arbitron's radar screen but making money nonetheless. Ethnic population enclaves lacking the critical mass to warrant their own full-time channel can at least rent a must-see-TV niche on one of Liu's niche operations, just as they've been creating must-hear radio, and pay for it any way they like. The tenant sells the ads or passes the hat, and Liu gets steady, predictable income from an operation relatively immune to the ups and downs of the volatile advertising business. Don't be surprised to see more down-on-their-luck indies wind up with this group if Liu can make the concept work with this starter set.
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BDS expands to 190 markets
Nielsen's BDS monitoring service for radio airplay of music is adding monitoring of more than 140 stations in 11 new markets to expand its total coverage to 1,680 stations in 190 markets. The data is used to produce record charts for both Billboard and Radio & Records, both, like Nielsen, owned by VNU. "The music industry relies on Nielsen BDS as its source for comprehensive performance information from key radio stations. This expansion is in keeping with our commitment to provide our clients with the marketing information they need to make critical business decisions," said Rob Sisco, President Nielsen Music. A BDS spokesperson told RBR that the additional markets were chosen on the basis of "need to know" by the record labels and to better serve broadcasters through R&R, which was recently acquired by VNU and switched its charts from Clear Channel-owned Mediabase to new sister company BDS. As for which stations are included within a market, the BDS website says they are evaluated based upon signal strength and reception quality at the monitoring location, with priority then determined by the station's format and audience rank in the market. In addition to radio stations, BDS monitors music video channels BET, CMT, Fuse, Great American Country, MTV, M2, MTV Espanol, MTV Hits, VH1, VH1 Country, VH1 Soul, and seven Canadian MUCH video channels, as well as 16 Sirius and 23 XM Satellite Radio channels, 24 hours a day, seven days a week, and detects more than one million songs weekly.
 FCC leaders join coalition obesity
The media has been under assault for some time for its role in promoting childhood obesity. It does this two ways: by encouraging children to develop sedentary habits while they interact with media, and by selling them unhealthy food items while they are engaging in this sedentary behavior. FCC Chairman Kevin Martin and colleague Deborah Tate Taylor (who has taken a strong interest in children's issues which come under the FCC's purview) are joining Senate Majority Leader Sam Brownback (R-KS) and others in the formation of a task force called "Media and Childhood Obesity: Today and Tomorrow." The task force will study "...the impact of media and advertising on children's health in a series of meetings with representatives of children's programming and the food marketing industry, consumer advocates, children's health experts and government officials." Among the other participants are Lanier Swann of the Beverly LaHaye Institute, Patti Miller of Children Now, Susan Fox of Disney and Tim Winter of the Parents Television Council.
 FCC adopts compromise
DTV children's regimen
The big four networks, cable channels, producers and watchdogs saw an agreement on new DTV children's television rules accepted unanimously by the FCC today. Broadcasters accepted without challenge the extension of the three-hour weekly children's educational/informational rule to all multicast side-channels, and received some favorable modifications and clarifications. The new report and order on "Children's Television Obligations for Broadcasters" * clarifies that Internet sites are essentially unregulated if there is no advertised website address during the program or its promotions; allows flexibility for related websites, allowing product sales to be tied in if that portion of the site is sufficiently separated from the program; modifies the definition of "commercial matter" to allow broadcasters more flexibility; * replaces a cap on pre-emptions with a case-by-case regimen; * clarifies rules on reruns; * clarifies the status of PSAs, station IDs and emergency announcements. Chairman Kevin Martin said, "Recognizing the important issues involved, children's advocates and media companies came together to discuss their concerns with the rule changes. Working together, they developed recommendations designed to ensure that the interests of children are well protected." Democratic Commissioners also signed on to the measure, although Jonathan Adelstein said he had "lingering concerns" and Michael Copps noted there was much work to do on general public interest requirements. Republican Deborah Taylor Tate praised the measure while pledging to continue to push for more and better children's programming. Robert McDowell said he was delighted by the item, saying, "I applaud this diverse coalition of children's advocacy groups, broadcast networks, children's programming networks, cable companies and advertisers for their efforts to forge a private sector solution to this challenge. It is no secret that I prefer private sector solutions over government intervention whenever possible."
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| Wall Street Media Business Report TM |
DG FastChannel previews Q3 growth
Having merged on June 1st, Q3 will be the first full quarter of joint operations for the former Digital Generation Systems and FastChannel Network. DG FastChannel gave Wall Street a preliminary preview, saying it expects consolidate revenues of 18.6-19 million. That is up significantly from combined revenues of 13.1 million a year ago. DG FastChannel said it expects to report year-over-year growth in pro forma core Ads revenues forQ3. Core Ads revenues are comprised of video, audio and print distribution, Source TV/Creative Channel and related services, and exclude the company's StarGuide Digital Networks division. "The anticipated third quarter results indicate that the DG FastChannel business model is progressing at a healthy pace. Increased on-line video traffic, implementation of next-generation technologies to improve the advertising workflow and increasing demand from advertisers for HD deliveries all bode well for the Company's future," said CEO Scott Ginsburg. DG FastChannel previously said it expected nine million bucks in annual operational synergies from the merger. It now says that figure will be more like 12 million.
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Ad Business Report TM
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 Arbitron releases RADAR 90
network radio ratings
Arbitron released its September RADAR radio network audience reports (RADAR 90) covering the June 30, 2005 - June 21, 2006. The sample size for RADAR 90 has been increased to 112,519 diarykeepers, up from 106,299 in RADAR 89. By the release of RADAR 92 in March 2007, the RADAR radio network service will be based on an annual sample size of 125,000 diarykeepers. The Market-by-Market Analysis report now includes the Top 50 DMAs, such that users can choose among any of the Top 50 DMAs as well as the top 10, 25 and 50 DMAs.
| Read More... |
WW1 announces new RADAR lineup
Speaking of reconfigurations, Westwood One announced the evolution of its RADAR rated programming into 14 new consumer-targeted networks, which will debut in RADAR 91. Not reflected in today's RADAR 90 numbers, the new networks will appear in the RADAR 90 Special Tab to be released in two weeks. The enhanced lineup, will offer advertisers better clarity, more options and will allow for better consumer targeting by day-of-the-week, daypart and demographic. "While America has been listening to us, we've been listening to our advertisers and affiliates" adds Paul Gregrey, EVP/Westwood One Sales. "This exciting new lineup features more RADAR rated news programming than any other network, three individual networks specifically targeting women and several ROS networks. More choice, more targeting and better clarity." Westwood One's new 14-network RADAR line-up will feature: three Adult-targeted news intensive networks, three broad reach networks, three young-adult-targeted networks, three Female targeted networks and two 10-second Traffic-Sponsorship Networks.
| See the new WW1 RADAR network lineup for 2007 here |
 Buffalo Wild Wings announces
expansion of national advertising
Buffalo Wild Wings announced its first national network advertising deal with CBS Sports. The company will air ads during CBS Sports' coverage of regular season NCAA Men's basketball, including the network's exclusive broadcast coverage of the NCAA Men's Division I Basketball Championship. The Company also has signed its first national radio partnership with Westwood One, the exclusive network radio home of the NFL, airing all Sunday night and Monday night NFL football games. Buffalo Wild Wings also will move one of its traditionally local market spot media campaigns exclusively to national cable television. "As we continue our expansion across the United States it is important for us to have media exposure nationally to support our growth in new and existing markets," commented Kathy Benning, SVP/Marketing and Brand Development for Buffalo Wild Wings. "Our partnerships with CBS Sports and Westwood One will allow us to reach the homes in every one of our markets, as well as all markets that we plan to enter over the coming years."
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| Media Business Report TM |
 SpotXchange -
auction-based, video ad
serving platform launches
Booyah Networks announced the beta launch of SpotXchange, its auction-based video ad serving platform at The IAB's Mixx Conference this week. The SpotXchange self-service tools are now publicly available to both publishers and advertisers. Publishers in the initial beta launch phase include blip.tv, VideoEgg, Pricefish.com, Vmix.com, Panjea.com, LSN Productions, Jambotv.com, JamboVideoNetwork.com, 365JokePlace.com and more. By connecting publishers and advertisers, SpotXchange allows video ad spots to be purchased and published more cost effectively than traditional ad networks or fixed price contracts. "We've all watched the phenomena of YouTube and MySpace. Users are consuming professionally-produced and user-generated videos online at increasingly significant rates," said Booyah CEO Michael Shehan. "We are making it easier for advertisers and publishers to navigate this new marketing channel. The self-service tools and real-time performance statistics provide advertisers the same control, ease and flexibility of campaign management that direct response marketers get with sponsored search. SpotXchange also creates a more competitive marketplace by aggregating advertisers into an auction-based platform, which increases revenues for publishers."
Wal-Mart Mexico and Televisa
launch digital signage network
Grupo Televisa and Wal-Mart de Mexico ("Wal-Mex") have launched an in-store media network covering 292 Wal-Mex stores across Mexico. Consisting of over 5,000 digital signage displays and touchscreen kiosks, the network is centrally managed using FireCast software and media player hardware from WireSpring Technologies. Televisa creates original, retail-specific programming for the Wal-Mex network, combining informational segments and advertising spots. For shoppers, the content enhances the store experience and helps them make smart purchasing decisions. For advertisers, the network provides an additional opportunity to highlight key selling points, complementing traditional point-of-purchase advertising. Content is delivered through large-screen LCD displays in key store locations, as well as touchscreen kiosks in the pharmacy and other areas. For Televisa, the Wal-Mex network provides new out-of-home ad inventory that can be sold to Wal-Mex product suppliers and other advertising clients. The Wal-Mex network rollout began in July and will be completed by early November, in preparation for the holiday shopping season. Key facts about the network: 292 stores under the Wal-Mart Supercenter and Bodega Aurrera brands. 21-28 large-screen LCDs per store (over 5,000 total), plus touchscreen kiosks. Content is customized by store type, with multiple channels per store - including a dedicated channel for the pharmacy in Supercenter locations. Products used include WireSpring's FireCast OS, FireCast ClientCenter, and FireCast Media Appliance, as well as IBM's Anyplace Kiosk.
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| New Owners |
 What makes them tick? New entrants just venturing into radio and/or TV-why are they getting into it? What do they see that others that are bailing out don't?
Yesterday we discussed seeing large companies actually divest stations, rather than invest in new additions to their portfolios (9/26/06 RBR #187).
New owners taking the broadcasting plunge
One of the more intriguing new groups on the scene is Armada Media Corp. How many new entrants into the broadcasting business can boast the former governor of Wisconsin as their nominal head? Tommy Thompson is the ex-gov in the lineup, along with Jim Coursolle, Chris Bernier, John R. Larson, John Lynch and Terry Shockley, has announced a $9.25M acquisition of a six-station cluster in Aberdeen SD and an $8.5M deal to get seven more stations in two markets along the Wisconsin-Upper Peninsula Michigan border. It has also had some unusual press, for a new small-market group. We can't remember the last time a broadcaster was getting ink for staying out of a race for the US Senate, but that's exactly what happened with Thompson. He decided not to headline the Republican electoral ticket as the candidate to take on Herb Kohl (D-WI). The group has also gotten some bad ink because of one final name on the ownership roster. Nicholas Hurtgen is under indictment in an influence-peddling scheme involving the construction of an Illinois hospital. Before the group can get around to closing its pending acquisitions, it'll have to get around from watchdog groups which are trying to block the deals.
| Read More... |
RBR observation: What's interesting about the four radio groups we've looked at is any one of them is capable of striking anywhere. But it is not surprising that they are finding opportunity in smaller rather than large markets. After Telecom 1996 passed, the buying and selling spree that followed began at the top and worked its way down. In the large markets, the inventory of stations is pretty much picked through. Expanding radio groups are succeeding by thinking small.
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| Media Markets & Money TM |
EMF moves into Wilkes Barre
Actually, WPGP-FM Tafton PA is closer to the Scranton pole of the dual-city market in Northeast Pennsylvania. Educational Media Foundation is acquiring the station from Sound of Life Inc., headed by Thomas Zahradnik. According to broker George W. Kimble of Kozacko Media Services, the price tag is 675K, 425K of which will be paid pursuant to terms of a promissory note. Rather than follow the LMA route commonly used in the world of commercial radio, EMF is using its own standard procedure, which involves installing its K-LOVE Contemporary Christian format on the station via a network affiliation agreement which kicks in 10/1/06. Non-profit EMF feeds on both sides of the noncommercial/commercial divide. This station is well down in the reserved portion at 88.3 mHz.
Close encounter in Omaha
The brokers at Kalil & Co. have checked in with another done deal. This time it is KBBX-FM, going from a slimming-down Journal Broadcast Group to a bulking up Connoiusseur Media. Jornal is making room for its acquisition of KMTV-TV from Emmis, and retains six other radio stations in the market. Connoisseur, on the other hand, is getting an FM partner for its do-it-yourself FM Auction No. 37 construction permit for a stick to be built at Pacific Junction IA. The pricetag for KBBX-FM was 7.5M.
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| Transactions |
45M KTSA-AM/KJXK-FM San Antonio TX from Texas CBS Radio Broadcasting KLP, a subsidiary of CBS Corporation (Les Moonves) to MBP San Antonio License Company LP, a subsidiary of Border Media Partners LLC (Thomas Castro). 3.5MK escrow, balance in cash at closing. Superduopoly with KZDC-AM, KFNI-AM, KSAH-AM, KTFM-FM, KRIO-FM & KLEY-FM. [File date 8/31/06.]
1.75M WSSA-AM Atlanta (Morrow GA) from South Atlanta Broadcasting Inc. (Anthony St. Cyr) to McL/McM Georgia LLC, a subsidiary of Sheridan Broadcasting Corporation (Ronald P. Davenport Jr.). Cash. Includes non-compete. Pursuant to LMA/option of 2/17/04. [File date 9/1/06.]
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| Stock Talk |
Wall Street nearing record territory
You would hardly notice it, since there hasn't been a strong bull market this year, but the Dow Jones Industrial Average is just 53 points away from its all-time high. The Dow closed at its second-highest level ever yesterday, rising 94 points, or 0.8%, to 11,669. The market's strength came as the Conference Board reported a rise in its monthly Consumer Confidence Index.
Radio stocks were up slightly. The Radio Index is not even close to its all-time high of 289.720, set on December 29, 2003. Rather, the Index crept up 0.094, or 0.1%, to 140.768. Disney was the best performer in our daily list, up 3%. Beasley had a down day, falling 2%.
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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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37.44
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+0.12
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Hearst-Argyle
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HTV
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23.19
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+0.14
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Beasley
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BBGI
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7.00
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-0.14
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Journal Comm.
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JRN
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11.15
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+0.13
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| CBS CI. B |
CBS |
 |
28.76
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+0.11
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Lincoln Natl.
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LNC
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62.82
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+0.36
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| CBS CI. A |
CBSa |
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28.82
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+0.14
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Radio One, Cl. A
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ROIA
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6.31
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-0.03
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| Citadel |
CDL |
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9.53 |
+0.05 |
Radio One, Cl. D
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ROIAK
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6.31
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-0.02
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Clear Channel
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CCU
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29.52
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+0.15
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Regent
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RGCI
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3.88
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-0.02
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Cox Radio
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CXR
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15.28
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+0.09
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Saga Commun.
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SGA
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7.82
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+0.02
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Cumulus
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CMLS
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9.68
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-0.06
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Salem Comm.
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SALM
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11.49
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-0.05
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Disney
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DIS
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31.07
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+0.91
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Sirius Sat. Radio
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SIRI
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3.94
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-0.01
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Emmis
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EMMS
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12.10
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-0.07
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Spanish Bcg.
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SBSA
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4.26
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+0.03
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| Entercom |
ETM
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25.27
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+0.32
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Univision
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UVN
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34.44
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+0.03
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Entravision
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EVC
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7.50
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-0.04
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Westwood One
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WON
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7.27
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+0.14
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Fisher
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FSCI
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42.54
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-0.66
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XM Sat. Radio
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XMSR
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13.58
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+0.16
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Gaylord
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GET
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44.51
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+0.23
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Bounceback
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 We want to
hear from you.
This is your column, so send your comments and
a photo to [email protected]
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Below the Fold
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Ad Business Report
Arbitron releases RADAR 90
Biggest story was all the larger audience growth but from...
Media Business Report
SpotXchange
Auction-based, video ad serving platform launched...
Media Markets & Money
EMF moves into Wilkes Barre
Acquiring the station from Sound of Life Inc...
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Radio Media Moves
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 Burke to Vegas
In conjunction with Beasley's launch this week of News/Talk KDWN-AM Las Vegas, 22-year radio veteran Charlotte Burke was named Program Director of the station. She was most recently Vice President/General Manager of Sirius' Martha Stewart Living Radio, which she launched in September of 2005.
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More News Headlines
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Sillerman ex-employee sued by SEC
CKX Inc. says a former domestic employee of its CEO, Robert F.X. Sillerman, has been sued by the SEC for alleged insider trading. The New York Times reports that the ex-employee is Graham Leffort of Waxachachie, TX, who is accused of misusing information he acquired from working for Sillerman and violating a confidentiality agreement with Sillerman under which he agreed not to use any information he obtained for personal profit. The former Sillerman employee is accused of improperly profiting to the tune of 49,525 by trading in CKX stock based on inside information. CKX owns the rights to the names and likenesses of Elvis Presley and Mohammad Ali and the "Idols" television brand.
Anthrax scare at California stations
The studios of KSCO-AM & KOMY-AM in Santa Cruz, California were under quarantine after a station employee opened an envelope that arrived by mail, which was found to contain nothing but a white powder. There is no word yet on whether the powder was anthrax or anything else dangerous, but three people who were exposed to it underwent decontamination procedures. County authorities have ordered the building to remain closed while tests continue. According to the stations' website, owner Michael Zwerling has been keeping them on the air via computer from a site 80 miles away.
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TVBR - TV News
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Katie's streak ends
at two weeks
There wasn't really any suspense, since Brian Williams at NBC won each of the five nights last week, but now the official full-week tally is out from Nielsen. After two weeks at #1, the "CBS Evening News with Katie Couric" dropped to #2. For the week of September 18-22, the NBC "Nightly News" had an average audience of 8,182,000. CBS did not return to its traditional #3 ranking, but held onto #2 with 7,694,000. The ABC "World News" anchored by Charlie Gibson was not too far behind at 7,556,000. In touting its return to the top, NBC noted that the audience for CBS was down 24% from Couric's debut week, while NBC was up 15% and ABC gained 10%.
TVBR observation: CBS CEO Les Moonves and CBS News & Sports President Sean McManus have insisted all along that they weren't banking on Couric to jump the network's evening newscast to #1 and stay there. Rather, they said, the objective was to be competitive, which, quite frankly, CBS had not been for a number of years. It is still early, but it appears the "CBS Evening News with Katie Couric" is making this a three-way horse race. Ironically, after years of battling with Charlie Gibson for morning ratings, Couric is now going toe-to-toe with him on the evening newscasts. All in TV will now likely be watching the battle for second place - then the winner can set their sights on knocking off Brian Williams.
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Download Now
August '06 RBR/TVBR Solutions Magazine
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RBR Radar 2006
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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Political spending on radio taking off
Bear Stearns investment clients, Evan Tracey, COO of the TNS Media Intelligence/Campaign Media Analysis Group, said one fallout from the McCain-Feingold campaign finance law is that campaigns are able to raise more hard money - with donors now being able to write checks for 2K rather than 1K. So while there may be less soft money elsewhere, the official campaigns have more cash to spend that ever before. TV inventory is tightening in some markets, plus just because of the amount of cash available, some campaigns are spending more on media apart from broadcast TV - primarily cable and radio. Republicans, in particular, said Tracey, are spending on radio to reach maximum saturation.
RBR observation: Hello Radio did you read this report that Republicans, in particular are spending on radio to reach maximum saturation. RBR has stated before and again, Look for Political be to a full Ad Category in 2007. Get your sales marketing team in place and start now to cultivate those dollars for 2008 when the Big cash will be spent.
09/26/06 RBR #187
Newspapers use newspapers
to push newspapers
Newspaper Association of America has enlisted over 400 of its members in an advertising campaign designed to bolster advertising in its members' publications.
RBR observation: As much as we love our newspapers, we still have difficulty remembering the last time we were struck by an ad. We can't remember one, much less remember a time one motivated us to go buy something. DA radio how much more do you need so add this info in your marketing presentations.
09/26/06 RBR #187
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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.
See Radio Careers
Local Sales Manager
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.
See Radio Careers
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
See Radio Careers
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