Volume 21, Issue 19, Jim Carnegie, Publisher
Thursday Morning January 29th, 2004

Radio News ®

Citadel's stock plunges
on Forstmann Little sale
Less than six months after selling its IPO on Wall Street, Citadel is back with an add-on stock offering. The company has filed with the SEC to sell a total of 28M shares - - 8M newly-minted ones and 20M being sold by insiders, primarily Forstmann Little & Co. The news sent the company's stock plunging below its IPO price. RBR observation: What's the rush?
| Full Story Click Here
| RBR Observation |

San Antonio hearing wild affair
In a sometimes rowdy four hour hearing that had to be gaveled back into order several times, the five Federal Communications Commissioners got an earful Wednesday night about issues ranging from sex and violence on television to the perils of corporate ownership of radio and television stations.
| Full Story Click Here

Shockers and other indecent broadcasters put on notice
A House subcommittee held a session on broadcast indecency yesterday, and nobody, but nobody, came to indecency's defense. The closest anyone came was an attorney who cautioned that anti-indecency measures must be crafted carefully in order to pass First Amendment muster. A bill to increase indecency fines tenfold was said to be on the fast track, and members of both parties are joining a posse thirsty for a few license revocations. | Full Story Click Here |

Copps has set the tone
Democratic FCC Commissioner Michael Copps has clearly been the FCC's indecency hawk ever since his confirmation. He must have been gratified, as Copps-styled language rang out in the committee meeting room in the House's Rayburn Building in Washington.
RBR observation: Heads up! | Full Story Click Here | RBR Observation |

House panelists have their say
Panelists included FCC Enforcement Bureau Chief David H. Solomon, Parents Television Council President L. Brent Bozell, attorney Robert Corn-Revere of Davis Wright Tremaine LLP and William Wertz, co-owner of Kalamazoo-based Fairfield Broadcasting (and a constituent of Upton's). | Full Story Click Here |

Tribune ready to carry dereg fight to the Supreme Court
With so many issues in play and so many parties involved, its been considered likely that once the Federal Appeals Court in Philadelphia rules this year on the FCC's media ownership rules somebody will appeal the case to the Supreme Court. Now, Tribune has stated flat out that if the ruling goes against deregulation of broadcast-newspaper crossownership, the company will take its fight to the Supreme Court.
| Full Story Click Here

RBR Media Alert

RBR - TVBR - Media Mix Security Alert
Tis the season to be infected
Anything with a .bat, .cmd, .exe, .pif, or .scr extension is likely bad news in a plain brown wrapper.

| Full Story Click Here |

Conference Calls, Q4 2003

Sirius loss widens, subscribers grew
74% in Q4

Sirius Satellite Radio reported in its 1/28 conference call a wider Q4 loss, but said subscribers grew 74% in the period. Sirius posted a net loss of $147.8M, or 14 cents a share, compared with a loss of $134.1M, or $1.74 a share, a year earlier. The satcaster added 111,449 subscribers in the quarter, bringing its subscriber base to 261,061. 86K of the new subscribers came from aftermarket retailers. Year-end revenues increased from $805K in 2002 to $12.9M, with net loss narrowing from $468.5M to $314.4M ($6.13 to 38 cents/share). Sirius ended Q4 with $550M in cash. The company recently signed deals to put its radios in trucks leased by Penske, an install deal with dealership conglomerate UnitedAuto Group and has agreements with Ford, DaimlerChrysler and Nissan to offer Sirius radios as an option in new cars.

Broadcasting/Entertainment leads the way at Tribune
The Broadcasting/Entertainment division was the star performer as Tribune Co. reported Q4 earnings per share of $0.66 (excluding a special gain), up from $0.57 a year ago and beating the Thompson One Analytics consensus by two cents. Total revenues rose 2.8% for the quarter to $1.47B. | Full Story Click Here |

Adbiz ©

FootJoy launches "SignBoy" effort
FootJoy, the shoe and glove maker for the golfing industry, announced its latest TV effort via Arnold Worldwide, once again featuring "SignBoy," the wacky FootJoy fanatic. The 2004 campaign keeps SignBoy's antics as a sign bearer, enamored golf fan, "expert" on the Tour pros, and FootJoy's biggest admirer. In this year's campaign SignBoy appears off the golf course, wherever the Tour players are, traveling from tournament to tournament. SignBoy, played by Los Angeles actor Matt Griesser, was created by Arnold for FootJoy in 1998. The first spots premiered in the 1999 season. The campaign began with five spots premiering on FootJoy.com on 1/27 and on national TV 2/7 during the AT&T Pebble Beach National Pro-Am on CBS. A new website for SignBoy also launched. The TV spots are titled: "Scorer's Tent," "On the Road," "Leaderboard," "Driving Mr. Ernie" and "Golden Tee." Each of the spots showcases FootJoy products like the SciFlex glove and the new DryJoys golf shoes with P.R.O. technology.

Subway franchisees fund Super Bowl ad
The Subway Franchisee Advertising Fund Trust (SFAFT), the ad division of Subway, will air a 60-second spot during the Super Bowl on 2/1. The ad reinforces the "It's Ok, I had Subway" campaign which communicates that people can occasionally indulge in "bad" foods as long as Subway's healthier menu options are incorporated into their regular diet. "This is our fourth year advertising during Super Bowl coverage. This provides us with a perfect opportunity to speak to millions of consumers about what's great about Subway and talk about our new Atkins-friendly products," said Chris Carroll, marketing director for SFAFT. "Leveraging the humor of our existing campaign, we felt we could elaborate on the 'It's OK' concept." The commercial, entitled "Misunderstanding," will be the only ad to air in the post-gun segment of the game, just before the post-game report. Fallon Worldwide handled creative.

Media, Markets & Money tm

Queen for a day? First moves east
We can't remember Ron Unkefer and Gary Lawrence ever venturing this far east before. However, a pair of deals will put their First Broadcasting Investment Partners radio group into a three-FM superduopoly cluster in the Queen City (Cincinnati) area. According to broker Jim Hoffman of Explorer Communications, FBIP will pay a total of $9.7M for the stations. $5,637,500 is going to Balogh Broadcasting for its Alternative stalwart WOXY-FM, which Hoffman tells us has been in the format for 22 years. The other stations are Classic Country WAOL-FM and Modern Country WAXZ-FM, coming from Plessinger Holdings for $4,062,500. WOXY is licensed to Oxford, WAOL to Ripley ands WAXZ to Georgetown. The first two have recently had a small presence in the Cincinnati Arbitron charts.

Done deal as Lima bean counters work finished
The $7M acquisition of a quartet of Lima OH stations by Gary Rozynek's Maverick Media has been completed, broker Michael Bergner told RBR. The superduopoly cluster, which includes WZOQ-FM, WFGF-FM, WUZZ-FM and WLJM-AM, was sold by Forever Broadcasting.

Broadcast Electronics sold
Hoak Capital Corporation has sold Broadcast Electronics (BE) to its management team and Thompson Street Capital Partners, a private equity firm based in St. Louis. Terms of the sale were not revealed. "This is an important move for BE. We have enjoyed our successful 7-year relationship with the Hoak organization, and we believe that this acquisition reflects a high level of confidence by Thompson Street in both the future of BE and the growth of the radio market," said John Pedlow, President and CEO of BE. Broadcast Electronics is a leading manufacturer of RF transmission and broadcast automation systems for the worldwide radio market. BE's products include analog and HD Radio(tm) AM and FM transmitters, Marti(tm) remote broadcasting products and AudioVAULT(tm), the company's digital automation system.

Roy Disney takes anti-Eisner fight to shareholders
Ex-Disney directors Roy E. Disney and Stan Gold are turning up the heat on Disney CEO Michael Eisner. They're asking Disney shareholders to vote "no" on re-electing Eisner and three other directors - - former Sen. George Mitchell, Judith Estrin and John Bryson. RBR observation: The small guys roll with the punches but the big guys throw them. Now Roy Disney and colleague Stan Gold are throwing the punches at Disney CEO Michael Eisner. They're jabbing Disney shareholders to vote "no" on re-electing Eisner and three other directors - - former Sen. Geroge Mitchell, Judith Estrin and John Bryson. The real fight bell is set to ring on March 3rd and in the city of 'Rocky Balboa' - Philadelphia.
| Full Story Click Here |

Entercom rings the bell
Entercom marked the 5th anniversary of its IPO and listing on the New York Stock Exchange by having President/CEO David Field and Chairman Joe Field ring the closing bell yesterday at the NYSE.

Career Ads

The Management Opportunity of 2004
Hubbard Broadcasting's - KS95 in the Twin Cities is looking for an exceptional General Manager to run one of the best known and legendary stations in the country. Are you a strategic and visionary leader?

Sales Manager - KPNT
St. Louis' Alternative Rock Powerhouse THE POINT (KPNT) is seeking a new sales leader. Is it you? Do you love Alternative rock, Howard Stern? Would your sales staff walk through burning buildings for you? Excellent opportunity.

Editor's Note: These are two great radio companies. Plus, they are good to their people. Click on Radio Careers for details.

Need to find that career minded radio or television executive, use our Career Ad section read by 15,000 media executives every morning. To place your marketing position click on submit jobs and follow the easy instructions.

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Washington Beat

Reps take on CBS Super Bowl MoveOn.org turndown
Rep. Bernie Sanders (I-VT) and 26 co-signers have sent a letter to CBS honcho Leslie Moonves protesting his network's decision not to air a 30-second spot during the game, which advocacy group MoveOn.org attempted to buy. | Full Story Click Here |

CBS responds to Capitol Hill criticism
In response to the upset Representatives and an attack the previous day from the Senate floor by Sen. Dick Durbin (D-IL), who called the ad refusal "Exhibit A in the case against media concentration," CBS issued a statement setting forth its position on why it doesn't accept ads pushing a political agenda. | Full Story Click Here |


Progress Media names net Air America Radio
Al Franken's airwave home just got a name. The Progress Media distribution arm, which will carry Franken, Robert Kennedy Jr. and other presumably left-of-center (at least) hosts will be called Air America Radio. In a release, the nacent network noted its deal for an outlet (and probably, an eventual O&O) in Chicago, along with a reminder that is close to similar deals in New York, LA, and San Francisco, along with other unnamed markets. Further illumination on the net's kick-off date, said to be in March, was not provided.

Rush up 9% in Fall book, says Premiere
Premiere Radio Networks announced "The Rush Limbaugh Show" was up 9% in the Arbitron Fall 2003 survey for Persons 12+ when compared to similar data in the Top 10 DMA market grouping during the Summer 2003 survey. Within the Top 25 DMA market grouping, the show experienced a 3% increase when compared to similar Persons 12+ data in the Summer survey. When compared to the entire Fall 12-week survey, the program experienced a 3% decrease for Persons 12+ within the Top 25 DMA market grouping during those weeks that Rush was off the air.
| Full Story Click Here


$7,000,000 WRSI-FM Turner Falls MA, WPVQ-FM Greenfield MA & WRSY-FM Marlboroo VT from Great Northern Radio LLC to Saga Cmmunications of New England LLC.

$2,000,000 WSEM-AM/WGMK-FM & WBBK AM & FM Dothan AL (Donalsonville GA, Blakely GA) from Merchants Broadcasting Co./Seminole Broadcasting Co., Merchants Broadcasting System to Styles Media Group LLC.

$135,000 WTKN-AM Daleville AL from Joseph A. Adams to John H. Beebe.

| More Info Click Here

Stock Talk

Fed nuance sinks stocks
In simple terms, the Federal Reserve's Open Market Committee did nothing yesterday, leaving interest rates at the same low level they've been at for months. But Fed watchers detected a slight change in the panel's comments on the economy, indicating a tiny step toward moving interest rates higher. That interpretation sent stock prices lower. The Dow Industrials dropped 144 points, or 1.4%, to close at 10,465.

The Radio Index also fell, dropping 7.628, or 2.7%, to 277.552. Citadel led the retreat, falling 7.1% after announcing a big stock sale by its primary shareholder (see Radio News). Regent fell 5.9%. Of the 15 stocks in our index, only Beasley was up for the day, and not by much - - rising 0.2%.

Sirius Satellite Radio fell 5.4% after reporting its Q4 results. XM was off 2%.

Radio Stocks

Here's how stocks fared on Wednesday

Company Symbol Close Change Company Symbol Close Change













Journal Comm.




Citadel CDL $18.85 -$1.44

Radio One, Cl. A




Clear Channel




Radio One, Cl. D




Cox Radio




Radio Unica
















Saga Commun.








Salem Comm.








Sirius Sat. Radio








Spanish Bcg.
















Viacom, Cl. A








Viacom, Cl. B








Westwood One




International Bcg.




XM Sat. Radio




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We want to hear from you.
This is your column, so send your comments to [email protected]

This reader agrees with us and Clear Channel's
Mark Mays (1/28 RBR Daily Epaper #18) that the FCC needs to clarify its indecency standards, but he also advises broadcasters to take stock of just what they're putting on the air.

There is a book the FCC should read. It's called, "The Death of Common Sense".

Of course, in the interim, as we await the arrival of these consistent standards, the industry might consider giving it a peek, too, just to stay out of trouble.

I have another cheap solution.... I represented
Heidi Fleiss for syndication with a radio show on relationships. My initial problems before taking the deal? I had to get an attorney and I had to tell my mother. If you can't get past those two, whatever you are considering, you probably shouldn't do it!

Don Elliot
Los Angeles

(PS) Mom's advice? "She'd better be a modern-day Mary Magdalene or you shouldn't get involved!"


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Upped & Tapped

Comrex ads Crump
Comrex Corporation has named Chris Crump as its Director of Sales & Marketing. Crump most recently held the position of Director of Sales and Marketing for Klotz Digital America.

WDAS-AM Philly gets personnel changes
Clear Channel Philadelphia Director of Urban Programming Thea Mitchem has announced changes and additions to heritage gospel WDAS-AM. Mitchem says listeners will hear the best blend of Traditional and Contemporary Gospel alongside their favorite gospel records old and new. Joseph "Butterball" Tamburro will add PD of WDAS-AM to his duties as PD of WDAS-FM. Jo Ann Gamble will add APD and Music Director of WDAS-AM to her responsibilities. Ed Long has been hired full time as WDAS-AM Programming Coordinator. Ed will assist Butter and Jo Ann with the day to operations of the radio station as well has hold down the midday shift from 10 AM to 2 PM. Sandra Robinson will join the WDAS-AM family from 2-6 PM.

Robert J. Maccini, the court-appointed receiver of the assets of St. George Broadcasting, LLC, the licensee of radio stations WJOB-AM, Hammond, Indiana and WIMS-AM, Michigan City, Indiana is entertaining offers for both radio stations.
| More info click here |

RBR Radar 2004
Click on these issues for Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

FCC puts the $755K squeeze on Clear Channel’s Bubba ‘The Love Sponge’
It seems Bubba just chews through any rope leash and for it another blockbuster indecency action, the FCC has levied a total of $755K in fines on Clear Channel Communications for multiple indecency infractions emanating from its Bubba the Love Sponge show. Four Florida stations and 26 counts were cited in an assessment which also included $40K for public file problems. Editor's Note: No wonder Clear Channel and all their resources are crying for some set standard by FCC. Standard is needed but also put a chain leash on him. Or do as Infinity did with O&A! Next! 01/28/04 RBR #18

Happened on Hollander’s Watch
Andy Schuon pushed Out at Infinity
Some would say Schuon was ultimately responsible for the failings of WNEW-FM New York, post-Opie and Anthony. But he can't take all the blame. There were many involved and it seemed like a great idea. We had done a feature on it, in fact. However, WNEW is still a fish flopping out of water, with its latest incarnation being yet another attempt to grab share from WLTW-FM and WPLJ-FM in that market. Editor's Note: We think it should re-launch as an Indie Rock hybrid for "Hip New Yorkers," but that's a different story. Or, go All Christmas.. Now! RBR observation: The Sykes-Hollander relationship bears some resemblance to the Karmazin-Sumner Redstone dynamic. It's not nearly as complicated. 01/28/04 RBR #18

Clear Channel calls for clear indecency standards
On the same day, see above, it was hit with a $755K fine mainly for broadcasting indecent material, called for the FCC and the industry to come up with reasonable and clear indecency standards. RBR observation: Amen, brother!
01/28/04 RBR #18

San Francisco KRON-TV
fined for indecency
On the eve of Capitol Hill hearings on broadcast indecency, the FCC has announced a proposed fine of $27,500 for Young Broadcasting's KRON-TV San Francisco. The station aired a fleeting glimpse of male genitalia during a "KRON 4 Morning News" segment with the stars of the traveling stage show "Puppetry of the Penis." Editor's Note: Ok, fine…fine…fine...
01/28/04 TVBR #18

Strife hits NAB board
Chairman Phil Lombardo ruffled some feathers putting him at odds with some Radio Board members and straining relations with NAB President/CEO Eddie Fritts. Lombardo pushed through approval of a special payment of $400,000 to cover legal expenses of the Network Affiliated Stations Alliance in fighting against an increase in the 35% national TV cap. Editor's Note: Good for Lombardo - Next time, and there will be a next time, both boards best get on one Group Fly-In page. Like now! 01/27/04 RBR #17

Wonder Boy - Bob Pittman building own media empire
It appears Pittman is out to buy much more and build a sizeable media company, this time with himself at the top. The structure of Pilot is something to behold. Here's the flow chart of ownership interests from the FCC filing to acquire WEYI-TV. Editor's Note: We called and we are waiting for both Bob's to call back. Publisher Jim Carnegie remembers Pittman and once was known not as The Wonder Boy but The Hippie from Mississippi when at WPEZ, Pittsburgh when Carnegie was PD of KQV. 01/27/04 RBR #17

Voucher oucher!
Dean on campaign reform
Democratic Presidential candidate and former Vermont Governor Howard Dean clearly believes that campaign reform is a sorely needed item Editor's Note: Glad it was a scream not a yell like; “Go Baby!” 01/26/04 RBR #16

Analyst sees CBS
passing NBC 18-49
NBC set to lose "Friends" and "Frazier" after this season, analyst Tim Wallace at UBS is predicting that next season could be when. If that happens, it could also cut into NBC's $300-500M cash flow advantage over CBS. Editor's Note: If networks down load more of the Average Joe stuff … Cable programming like USA’s Monk will start moving up and pushing out. 01/26/04 TVBR #16

Publisher, Jim Carnegie
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Managing Editor, Dave Seyler
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