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Volume 22, Issue 189, Jim Carnegie, Editor & Publisher

Tuesday Morning September 27th, 2005

Radio News®

Make it two for Radio One in St.L.
Urban radio specialist Radio One isn't having as much 'FUN as it might with one station in St. Louis - - but a new 20M deal with Emmis will allow it to double up in the key midwest market. The station is "Red" WRDA-FM, which serves the market from across the Mississippi - - it's licensed to Jerseyville IL. Radio One's other station, Urban WFUN, is also on the east side of the river in Bethalto IL. "This acquisition is yet another example of our prudent approach to acquiring radio stations in an uncertain environment for the industry," said Radio One's Alfred Liggins. "Through this acquisition we will complement our current single station in St. Louis, thus greatly strengthening our competitive position in this large urban market." Radio One says it will likely flip the format and calls in the very near future - - an LMA kicks in 10/1/05. The Red format, characterized by Emmis as Modern Standards, certainly proved not to be a good fit with the rest of the group's local lineup, which includes three gradations of Rock - - AOR KSHE-FM, Alternative KPNT-FM and Classic Hits KIHT-FM, along with FM Talker KFTK-FM. Emmis Radio President Rick Cummings "Red was a novel format that our staff in St. Louis executed well. But after 18 months, the results have not been robust." Red will not completely abandon its loyal fans, however, carrying on both at www.red1041.com and on KFTK-FM over weekends.

RBR observation: This is a rarely seen event - - a major radio group with a substantial presence in a market deciding it would rather liquidate an FM station rather than take it back to stick status. In other words, Emmis is going to Radio One instead of square one. By any measure, this is an outstanding move for Liggins and Co. It's main Urban competitor in the market is Clear Channel, according to the BIA Radio Yearbook 2004, and this acquisition will make it a two-on-two FM battle.

ABC Daytime Direction Network wins RADAR 86
ABC's Daytime Direction Network has taken the top crown, scoring the highest rating P12+. Arbitron released RADAR 86 with the highest sample ever for a RADAR survey (90,032) and the most networks ever reported (51). RADAR 86 includes the first Hispanic targeted network, ABC Hispanic Advantage Network. In addition, Premiere FOX News also makes its debut in RADAR 86. Overall, network radio as a whole remained flat in terms of gross impressions (-1.5%). The only dramatic changes were mostly at Westwood One that had the network with the largest percentage increase and eight of its networks experiencing double-digit decreases.
| View the RADAR 86 Charts |

FCC repeats its expeditious hurricane response
The FCC is treating Hurrican Rita just as it treated Hurricane Katrina. It's pulling overtime at its DC digs to provide assistance to communications companies in the path of the storm, and its greasing the wheels to help those companies return to operational status. The FCC said, "In light of the possible extensive damage to businesses and homes in the Gulf Coast region, and the essential need for broadcast services to the residents of the region, the FCC will provide additional assistance on an expedited basis to MVPDs and broadcast stations in order to get the systems and stations back on the air as quickly as possible."
| List of FCC Emergency Provisions |

FTC smacks down
absurd Ab Force claims
The FTC likes to warn consumers that if a claim sounds too good to be true, it probably is too good to be true. Existence of an electrical stimulation belt which supposedly could produce sixpack abs is one such claim. The belt was touted on a series of multimedia advertisements. The FTC has issued a C&D. "This is a case about firm abs and phony ads. It illustrates how false and unsubstantiated claims can be communicated indirectly but with utter clarity - - to the detriment of consumers and in violation of the laws this Commission enforces." Charged in the case are Telebrands Corporation, TV Savings L.L.C., and their principal Ajit Khubani, which collectively reaped 19M in ill-gotten gains. In this case, Telebrands et al admitted it knew the product didn't do anything. From December 2001 through at least April 2002, it used four media venues to make its claims, including television, radio, the Internet, and print. Telebrands argued that it made no specific claims, but FTC disagreed, saying the TV ads in particular were suggestive enough, showing robust men and women, some relaxing with Ab Force, other strenuously working out, strongly implying Ab Force produced effortless results. FTC did not impose any monetary punishment, but did order a cease and desist and "...fencing-in provisions to prevent a recurrence of the same or similar violations."

Newspaper bucks concentrated within top companies
A report from Research and Markets (R&M) notes that there are some two thousand newspaper companies operating in the US, combining for about 50B in annual revenue. However, the lion's share - - 30B - - goes to the top 20 companies. The biggest companies are Gannett, Knight Ridder, Advance Publications, Tribune Company, Washington Post and New York Times. Gannett and Washington Post also have television properties, while Tribune and NYT have both television and a toehold in radio. R&M notes that 70% of the business revenue comes from advertising, and 20% from subscription and single copy sales. A handful of dailies - - Wall Street Journal, USA Today, Los Angeles Times, Washington Post, and New York Times, are said to reach 1M people a day, but most newspapers - - 85% - - have circulation of 50K or less.

RBR observation: We attended a session on competing with newspapers at the NAB Radio Show 2005 last week in Philadelphia. Radio Advertising Bureau sales gurus George Hyde and Lynne Anderson noted many of the ways newspapers distort their effectiveness - - our favorite was getting to report their own circ figures to the ABC, or Audit Bureau of Circulation. As Anderson said, wouldn't you like to tell Arbitron (or Nielsen) what your ratings are? Anderson was also delighted that stories about newspapers abusing ABC are usually broken in: newspapers. A brilliant piece of advice from Anderson was this: The newspapers will be very happy if you'll agree to run an ad for your station with them. So invite the paper over to make a presentation. Once you learn their pitch, and be able to better prepare your own counter-pitch.

The Word Network now suing Sirius
The Word Network, a broadcaster for African-American ministries and gospel music, sued Sirius Satellite Radio yesterday (remember the suit against XM?), alleging racial discrimination and breach of contract over its decision to cancel their contract. Sirius dropped The Word from its programming in mid-September. Among those who have spoken against Sirius' decision to drop The Word Network include Elijah Cummings (D-MD), Reps. Corrine Brown (D-FL), Albert Wynn (D-MD), and Joseph Pitts (R-PA), and Sen. Debbie Stabenow (D-MI); Rev. Jesse Jackson, Dr. Bobby Jones and Bishop Paul Morton. The suit alleges The Word Network was the only programming on Sirius that combined religious programming and ministry to an African-American audience, and Sirius does not now carry, and has no plans to carry, programming similar to it on its satellite. Sirius was therefore, the suit alleges, "motivated by racial and religious discrimination when it refused to renew its contract."

RBR Poll

NAB has announced plans to co-locate the September 2006 with the R&R convention, but some broadcasters are skeptical. Which would be best for radio?

1 - Co-located NAB Radio Show with R&R programming convention.
2 - Co-located NAB Radio Show with the RAB management conference.
3 - NAB Radio Show in its own hotel with the NAB spring convention in Las Vegas.
4 - A pure Radio Industry Convention completely apart from the NAB with focus thinking.

Adbiz©

GM Planworks taps Rosen, Shaw;
launches "Video Investment Group"
We told 'ya so (8/3 RBR #151): GM Planworks, a division of Starcom MediaVest Group and the media planning, buying and research unit dedicated to General Motors (GM), named Mike Rosen its Chief Investment Officer. Rosen will oversee investment in network, broadcast, cable and nationally-syndicated television and radio. Jennifer Shaw will also join the agency as SVP/Managing Director of the new Video Investment Group (VIG) unit, reporting to Rosen. Curt Hecht, formerly SVP/Managing Director, GM Planworks, will be EVP and Chief Digital Officer. They will operate out of GM Planworks' new offices in New York City, which will officially open on 10/3, when GM Planworks takes over responsibility for GM's entire media management services.
| Read More... |

Stern accuses K-Rock GM
of hiking rates, slashing commissions
Apparently, the ad department at WXRK-FM NY has been doing great business in the months before the King of All Media bolts for Sirius Satellite Radio. Howard Stern on-air last week accused his K-Rock WXRK-FM NY GM Tom Chiusano of jacking up its ad rates and slashing commissions at the same time: "I heard the sales department here are ready to revolt against Tom. Evidently, business has been so good this quarter. I'm not going to say we're all the reason, but we're all the reason. So the sales people went out and sold so much time...Evidently, Tom called them all into a meeting and said, 'I'm cutting back your commission' - like less of a percentage. Can you do that? That seems really wrong," reported The NY Post. Chiusano admitted to Stern on the air that it was his idea to cut the commissions. "There's a business reality here," he said.

RBR observation: Got to say it RBR has heard these rumors like many others on Infinity cutting sales commission but now getting it confirmed over the air and by 'The Howard' himself. We also have heard various other rumors but until those go from speculation to confirmation we say - keep talking Howard.

Media Markets & MoneyTM

Journal puts itself on the schedule
If you're looking for a one-stop-shopping experience for a pulse-taking of the financial well-being of American media, it's hard to do better than listen in to the Journal Communications quarterly conference. The company has a major daily newspaper, over 90 smaller papers, seven television stations and 38 radio stations. They're set to confab with analysts and other interested parties 10/18/05 at 11:00 AM to go over Q3 results. As usual, we'll tune in so you don't have to.

Close encounter in Tennessee
Broker Ed Henson tells us that the keys to WVHR-FM Huntington TN and 650K gave been exchanged, with the former going to Jim Freeland and that latter to seller Milan Broadcasting. Freeland has a trio of stations in the neighboring state of Kentucky.

Washington Beat

TV sticks for sale,
get 'em while they're hot
The FCC is putting 11 full-power television CPs on the block. Television Auction No. 64 will be held 3/15/06. Comments on the auction are being taken by the Commission through 10/14/05, and reply comments are due by 10/21/05. Ten of the CPs are open to all comers. The eleventh, for Channel 51 in Jackson MS, will resolve an allotment that's been pending for quite some time - - it's open only to applicants who filed before 7/1/97, and they must let the FCC know by 11/16/05 that they're still interested. The bidding unit/upfront payment/minumum bid for the station (all three numbers are the same) is 295K. The eligible group includes Edward I. St. Pe, Fant Broadcasting Development, George S. Flinn Jr., KB Communications, KM Communications, Marri Broadcasting, Natchez Trace Broadcasting, United Television and Winstar Broadcasting. The other ten stations are in various locations, with minimum bids ranging from 705K to 80K. The minimums listed are not set in stone - - that's one of the items for which the FCC is soliciting comments. A handful of applicants are already signed up - - Zavaretta Broadcasting for a Pueblo CO stick, Humberto Lopez for one in Victoria TX, and Davis Television for sticks in Duluth MN and Topeka KS.
| The FCC TV Shopping List |

FEC Nader nadir? Not
The Federal Elections Commission has cleared all involved in efforts to get presidential candidate Ralph Nader on various state ballots for the 2004 election. For a change, campaign finance or advertising are not at issue - - instead, the FEC was fielding complaints that groups hoping to re-elect Republican George W. Bush were collecting ballot petition signatures on Nader's behalf in hopes his presence would draw support away from John Kerry. Many believe this was a factor in the 2000 Bush v. Gore election, particularly in the hotly-contested Florida situation. Whatever one might think about such an effort, the fact is that it simply is not against the law.

Transactions

38M KVGS-FM & KOAS-FM Las Vegas (Laughlin NV, Dolan Springs AZ) from Desert Sky Media LLC (Bruce Buzil) to RBG Las Vegas Licenses LLC, a subsidiary of Riviera Broadcast Group LLC (Tim Pohlman, Chris Maguire). 2M deposit, 26.5M escrow, 1.5M post-closing escrow, 8M upon completion of KVGS upgrade. Existing duopoly. LMA 9/1/05. [File date 8/23/05.]

1.2M WRIX-AM, WROX-FM & WANS-AM Greenville-Spartanburg SC (Homeland Park, Honea Path, Anderson SC). 100% of AM 1020 Inc./FM 103 Inc. from Karen Small to Gary Bryant. 50K cash at closing, 1.15M note. Existing duopoly. [File date 8/22/05.]

Stock Talk

All quiet on the Wall Street front
Stocks were said to be up modestly even though oil went back up in the wake of Rita, and modest was the word of choice to describe the ups and downs of broadcast issues. Radio companies tended to go up slightly, balanced by TV plays which dropped a bit.

Radio Stocks

**Here's how stocks fared on Monday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		39.82	-0.01	Jeff-Pilot	JP		50.19	-0.02
Beasley	BBGI		14.49	+0.24	Journal Comm.	JRN		14.84	-0.03
Citadel	CDL		13.61	+0.27	Radio One, Cl. A	ROIA		13.35	+0.23
Clear Channel	CCU		31.90	+0.21	Radio One, Cl. D	ROIAK		13.36	+0.23
Cox Radio	CXR		15.04	+0.36	Regent	RGCI		5.23	+0.17
Cumulus	CMLS		12.46	+0.02	Saga Commun.	SGA		13.01	-0.13
Disney	DIS		23.26	+0.04	Salem Comm.	SALM		18.20	+0.04
Emmis	EMMS		22.78	+0.08	Sirius Sat. Radio	SIRI		6.63	-0.07
Entercom	ETM		31.30	+1.55	Spanish Bcg.	SBSA		6.90	+0.27
Entravision	EVC		7.80	+0.17	Univision	UVN		26.18	+0.06
Fisher	FSCI		46.12	+0.81	Viacom, Cl. A	VIA		33.25	-0.26
Gaylord	GET		46.44	-0.03	Viacom, Cl. B	VIAb		33.24	-0.12
Hearst-Argyle	HTV		25.14	+0.09	Westwood One	WON		19.28	+0.22
Interep	IREP		0.53	+0.01	XM Sat. Radio	XMSR		33.69	-0.74
International Bcg.	IBCS		0.01	unch	-	-	-	-	-

Bounceback

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Arbitrends

More News Headlines

WZZN-FM brings back
Oldies to Chicago

WRKO morning man leaving

AURN launching 4th
RADAR-rated net

Sherman Kizart receives
IBBA 2005 Leadership Award

September Digital Magazine Now Available

Media House 2005
Churn, baby, Churn - An inside look at the churn of satellite radio

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RBR Radar 2005

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

Publisher Perspective
NAB 2005 Overview
No time to either sing praise or be critical but the time is now to think the balance of the decade. Yes there is a need for a pure radio convention which is Management, Sales, Programming and Engineering driven with exhibit space for vendors to discuss their products. Many did not receive what they came for which was a quick fix answer because there is none. Not seen at all are the so dubbed the industry leaders. For the most part they were out of sight, or a no show, and people asked where are they, the talking heads of the business. You read their names in RBR, they plan meetings behind closed doors for the what is best for the radio business or just their business and they are a no show to talk the subject openly and collective with the radio broadcast community the every day broadcaster. Time for a pure radio convention and maybe with out these talking heads. It is your radio business you decide as there are more of every day radio people than the biggies collectively. 09/26/05 RBR #188

LIM means tighten up
Before Clear Channel initiated its Less is More effort, there was not even agreement within the company on how to count what listeners would regard as a commercial interruption. But no more. Veteran programmer Kevin Metheny, now a CC Radio Regional VP for Programming, told a Friday NAB Radio Show session that everything, including station promotions, is being counted toward LIM limits, which are being strictly enforced. RBR observation: Now remember one thing before you go and grab for that silver bullet to bite into and let it explode. The panel was 'Less is More...or Less' and it was strictly about Clear Channel with Clear Channel people except for Collins. Clear Channel used the NAB convention to continue to explain the LIM theory. NAB should have printed in their guide - Clear Channel Presents 'LIM.' Our theory on LIM is be local, use your own brains to make decisions and do not play follow the leader into 2006 or you could be getting Less as Clear Channel has More stations than anyone and also has the network content of Premiere as its finger tips.
09/26/05 RBR #188

Idol judge delivers his
assessment of radio
Randy Jackson comes from the record side of the world but what he had to say to the NAB Radio Show reflected much of what's being said inside the radio business - - new ideas have to be tried to interest people, particularly the young demos, in listening to radio. "When listeners are included in the music selection process, they're willing to spend millions of dollars to support their habit." RBR observation: Keying in on what Jackson emphasized - try new ideas. Remember local content is king and your best place to find talent is local. HD is a reality around the corner but still many questions have to be addressed. The best honest answer RBR heard about HD and programming came from FigMedia1's Bill Figenshu, "We are great at developing content but we suck at marketing ourselves." On HD Radio, again we liked Figs comments as RBR could not have said it any better: "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." Remember the fish stinks at head.
09/26/05 RBR #188

Last of the true Road Warriors:
Gary Fries delivers State of the Industry speech
"There are lots of positives in our business," In his first public speech since announcing he would not be seeking renewal of his contract at the end of 2006, Fries outlined a radio business that is on the precipice of a "repositioning" that could propel the medium forward into the future - if the industry acts. Electronic measurement a key topic in Fries' agenda, but he stressed that this was not an endorsement of any one device. "I don't care what it is," he said, "but we need electronic measurement and it must be right." RBR observation: Fries took on the EDI project in 2002 and this is one issue that needs addressed as we close out this first half of this decade. Agree 100 percent with Fries as 'Technology waits for no one.'
09/26/05 RBR #188

GSM Nations Capital
Washington DC Business Talk station has an immediate GSM opening. Must have proven experience in large to major market sales. Full benefits added incentives and extraordinary growth potential. AE positions also available.
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