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Welcome to RBR's Daily Epaper
Volume 24, Issue 190, Jim Carnegie, Editor & Publisher
Friday Morning September 28th, 2007
From NAB2007
Martin opposes public
interest time requirements

Democrats on the FCC have been pushing the idea of spelling out specific public interest programming requirements for broadcasters, tying it to the addition of DTV multicast channels, but perhaps including minimum time requirements for all radio and television licensees. But FCC Chairman Kevin Martin was having none of it yesterday at the NAB Radio Show in Charlotte. "I actually believe they are doing a lot," Martin said of the service broadcasters already provide to their local communities. He suggested that the FCC needs to modify its survey forms to better quantify the public service efforts of broadcasters. "I don't think people are aware of how much the broadcasters are doing," Martin said. As for any time requirement, he warned that any regulatory minimum might not be just a floor, but also a ceiling, discouraging stations from doing even more. So while he does support the children's television rules enacted in recent years, the Chairman said he does not see the need to impose any additional program time requirements on broadcasters.

FCC open now for FM translator waivers for AM
Only half-joking, NAB Radio Board Chairman Russ Withers asked FCC Chairman Kevin Martin whether it is necessary to get a Congressman to ask the FCC for a waiver allowing an AM station to get an STA (special temporary authority) for an FM translator. The rare STAs issued thus far have been granted at the behest of the local US Representative, which has had some broadcasters grumbling about special treatment, while other owners of signal-handicapped AMs have to wait for the FCC to act on the pending rulemaking which would spell out procedures for AMs to qualify for FM translators. But they may not have to wait after all. Martin said it never hurts to have a Member of Congress in your corner, but the Commission is ready now to consider waiver requests, even while still working on the pending rulemaking. By the way, Martin sounded very supportive of adopting such a rule. (Don't open the floodgates, though. Peter Doyle, Chief of the Audio Division of the FCC's Media Bureau, later clarified for RBR that Martin was referring only to an AM station acquiring use of an existing FM translator, which was the case with the STAs which have been granted, but that no applications will be considered for AM stations seeking to create new FM translators.)

Withers was pointedly critical of the proposed merger of XM and Sirius, but didn't get Martin to show his hand on whether or not the deal will win FCC approval. Martin noted, though, that the satellite radio companies face a high threshold since the Commission adopted a rule banning such a merger when it created the satellite radio service, with two nationwide licenses. Withers and Martin got into an interesting exchange on whether the "New York Minute" hosted by Cousin Brucie that Sirius has announced for its NYC traffic and weather channel is in keeping with its license for a strictly national service. Martin insisted that it did, since the channel is offered nationwide, although there might be less interest in it by subscribers in Phoenix. Withers said he could understand why Sirius would "waste" its spectrum elsewhere to target such a large market, but noted that the satellite companies would never be willing to provide local traffic and weather for Mt. Vernon, IL. Well, Martin said, that means that Withers has nothing to worry about in Mt. Vernon. Withers finished up with a softball question for the Chairman: What is the future of radio broadcasting? Martin noted that while people do now have the opportunity to use many other media platforms, "radio's ability to provide highly localized information will be important for a long time."

RBR observation: A tip of the hat to Russ Withers. His gentle grilling of Chairman Martin was great fun. They covered a lot of territory and Martin provided a lot of insight into his thinking about issues near and dear to radio broadcasters, but Russ injected a good bit of humor and Martin responded in kind. We in the audience hated to see the jovial and informative chat come to an end.

Radio 2020 launched in Charlotte
The joint effort by NAB, RAB and the HD Digital Alliance was kicked off this morning by NAB President David Rehr, calling it "our roadmap to building radio's future." One key goal is to make sure "broadcast signals are available on every gadget, everywhere." The 13-year effort to re-brand and reignite radio as the industry reaches its 100th anniversary was built on research commissioned from Kelly O'Keefe, a noted expert in brand strategy. Focus groups found that more than 80% of people believe radio is important, but Rehr noted that many participants admitted that they take radio for granted.

"Listeners also believe that many stations could do a better job of playing a wider variety of music. And some perceive a trend towards less format diversity. We must correct these misguided perceptions about radio and share the real news that will excite America," Rehr said in announcing Radio 2020. Along with the push to have radio included on new devices, Rehr said a second goal will be launching new formats, expanding playlists and increasing local control. "But, we need to do a better job of informing listeners about the great variety that radio already provides," he also noted.

Other primary goals of Radio 2020 include innovation to meet changing consumer demands and reigniting consumer interest in radio. "Radio's value lies in the fact that it's accessible - it's everywhere and portable. It's a medium where everyone can freely and easily connect to a diverse world of entertainment and information, anywhere and everywhere. If we don't tell this story, we let our critics voice their negative opinions about radio," Rehr said.

RBR observation: Early in his speech, Rehr noted something we've heard from many of our readers. Why use the term "terrestrial radio?" As he correctly noted, that doesn't mean anything to consumers and doesn't accurately describe radio anyway. It is important for radio to frame the debate when radio broadcasting is discussed on Capitol Hill. That's Rehr's job and he seems to be the right guy for the job. But reigniting consumer excitement about radio is up to you, operating in your community. The first awards for HD Radio programming, to KBCO-FM Denver's "The Studio C Channel" and WRIF-FM Detroit's "Riff2," were presented following Rehr's speech. Such innovation is still rare, but it sounds to us that the opportunity is much like the early days of FM's assent. Want a new channel that will appeal to the hard to attract 18-25 demo? Why not give some of the 18-25 year olds at your station free-rein (within FCC rules, of course) to program an HD2 channel? What they come up with might surprise you. And it might even make you some money down the road as enough HD receivers get into the market to reach critical mass.

Charlotte convention a strong draw
NAB officials are clearly happy with the attendance for this year's NAB Radio Show, the first ever held in Charlotte. The official attendance tally released yesterday was 3,127, up from 3,021 last year in Dallas. The 2008 NAB Radio Show, by the way, will be September 17-19 in Austin, TX - also a first time location.

Radio News ®

FCC hits Comcast four more times
FCC Commissioner Jonathan Adelstein (D) and Watchdogs Center for Media and Democracy and Free Press are having their wishes fulfilled by the FCC. They were hoping that the 4K fine leveled at Comcast's CN8 channel for airing an unsourced video news release (VNR) was the beginning, not the end, of the FCC's action along this line. They did not have long to wait. The Enforcment Bureau has cited four more instances, and at 4K a pop has levied an additional 16K shot at Comcast's wallet. All four were the result of complaints filed by the aforementioned watchdogs. The VNRs in question were from one for General Mills concerning "Wheaties Fit to Win Challenge," one about Allstate life insurance, another for Trend Micro Software which concerned laptop security and its own security software, and another General Mills item on the 75th anniversary of Bisquick. All four incidents came during items on a program called "Art Fennell Reports." The FCC said, "We do not believe that this type of promotional material, furnished by a product manufacturer, can or should be considered within the scope of the proviso, which is directed to material that contains only fleeting or transient references to products or brand names. We conclude this material falls within the exception specifically set forth in the proviso to the rule and that a sponsorship announcement was required." It says the fact that Comcast received no direct compensation was irrelevant.

RBR observation: Obviously, it is now less likely that the first Comcast finding was an isolated incident, and we are moving toward the increasing likelihood that this is a new trend in enforcement. Can a broadcast outlet be far behind on the list of released FCC VNR actions?

Solicitor wants to air bad words before the Supremes
The Second Circuit Court in New York shot down the FCC's attempt to reverse its own long-standing policy and penalize broadcasters for allowing fleeting expletives over their airspace. Solicitor General Paul D. Clement, on behalf of the Bush administration and the FCC, is going to try for a Supreme Court appeal. The battle was between the FCC and Fox over incidents occurring on live awards programs. FCC Chairman Kevin Martin reacted swiftly, saying, "I am pleased that the Solicitor General will be seeking Supreme Court review of the Second Circuit's decision. I continue to support the Commission's efforts to protect families from indecent language on television and radio when children are likely to be in the audience."

The Solicitor General's decision follows an attempt led by Rep. Chip Pickering (R-MS) to use legislative instruments to make fleeting expletives actionable, an effort that was opposed recently by the ACLU. Discussing Pickering's effort, First Amendment Legislative Counsel Marvin Johnson said, "Now is the time for common sense not new unworkable regulations. It is likely that any regulations will violate the First Amendment rights of adults who watch television. If Uncle Sam wants a role in America's living rooms, then Congress should consider funding media literacy education for parents and not go down this path that will only lead to more lawsuits. No children will be helped by this legislation."

RBR observation: This case represents a very narrow lane in the entire broadcast indecency issue. At the beginning of his chairmanship, Michael Powell put out indecency guidelines that clearly reaffirmed the fleeting and inadvertent standard. The Bono incident at the heart of the Fox case was dismissed by the FCC Enforcement Bureau on fleeting grounds. Then came Nipplegate, and Powell suddenly changed the rule for certain words, including the "f-bomb." Part of the problem is that the FCC did it without going through the usual procedure of 8th Floor debate and the accumulation of public comment. Pickering is trying to get around that by making it legal to punish certain fleeting expletives regardless of circumstances. The problem is that it makes any live broadcast a risk. It'll be interesting to see how the relatively new Supreme Court lineup looks at this, if they decide to take the case.

It's not easy being green
American consumers may be accused of being jaded, or perhaps they have learned over many, many years to take whatever they hear in advertisements with a very large helping of salt. For example, in the case of products or services marketed as being "green," consumers might not disagree that "green" is the ultimate goal of the marketing campaign, but they would be thinking of green in terms of dollars, not the beneficial environmental effects the campaign is striving to promote. This cynical result was turned up by researcher Ipsos Reid, which found that 70% of Americans believe that green is more a marketing tactic than it is a genuine attempt to be environmentally friendly. That number is comprised of those who hold the belief either strongly or somewhat. On the flip side, only 4% strongly believe that the green efforts are completely altruistic efforts to save the environment. The survey respondents appear to have much in common with the marketers they disparage, however. Only 10% of Americans would be willing to ante up more cash for green building supplies. 46% would consider it, at least, giving the strong/wishy-washy greens in the country a plurality over the 44% who would either be unlikely to pay more or who would flat out refuse to pay more for environmentally-sound building products.

RBR observation: In certain categories, a 10% share of the market might be a very good thing, and if going green provides that kind of edge, then go for it. And over half the country is at least mildly receptive to green promotional arguments. In general, it would appear that special care must be taking with such marketing messages to make sure the sincerity of the advertiser is strong enough to cut though America's natural in-born skepticism.

Dorgan, Stevens team to extend DNC
Byron Dorgan (D-ND) has noted that membership on the Do Not Call registry is scheduled to expire 9/30/08, an automatic expiration date built into the rules when the FCC and FTC implemented the program in 2003. "That was not what Congress intended," said Dorgan. "As things stand today, 52M Americans will either have to re-register on 10/1/08, or get ready to hear their telephones ringing during supper time again with unwanted, commercial solicitation calls." Dorgan proposes instead the mechanism should work in the opposite, so that consumers are removed from the registry by the FCC/FTC if, and only if, they specifically request removal. His call was quickly echoed from across the aisle by Ted Stevens (R-AK), who said, "The federal 'Do-Not-Call' registry is a tool used by millions of people who do not want to constantly receive unwanted telemarketing calls. Consumers should not have to mark their calendars every five years to remind them to re-register their numbers on the 'Do-Not-Call' list." Dorgan has introduced the "Do-Not-Call Improvement Act of 2007" (S. 2096), with a co-sponsor roster which in addition to Stevens includes Charles Schumer (D-NY), John Ensign (R-NV), John Kerry (D-MA), Herb Kohl (D-WI), Russell Feingold (D-WI), Hillary Clinton (D-NY), Dianne Feinstein (D-CA) and Bill Nelson (D-FL).

RBR observation: It's impossible to predict the trajectory of any bill in Congress. No matter how popular or sensible it may be, you never know when someone will attach a poison pill or put an anonymous hold on a piece of legislation for reasons which are completely irrelevant to the thrust of the legislation. However, we suspect this bill to have a better than even chance of moving forward, and even though the co-sponsor list may be currently a little light on the Republican side, we doubt that Stevens' colleagues will want to allow Democrats to produce an ad for 2008 saying "This dinnertime telemarketing interruption was brought to you by the Republican caucus of the US Senate."

Berman tosses a bone to small and Religious broadcasters
As radio broadcasters gathered in Charlotte were exhorted to fiercely oppose efforts to introduce a new performance tax on radio to benefit record companies, Rep. Howard Berman (D-CA) sought to blunt opposition to his coming bill by offering a discount to small stations and Religious stations. "I recognize that granting artists and sound recording copyright owners the right to be compensated for music played on the radio presents a change. But current law presents an inequity that is neither fair nor right. Artists deserve compensation for the use of their music and this gap in the law must be addressed," Berman insisted. "I am confident that we can do this in a way that is sensitive to the legitimate concerns and economic realities of broadcasters. My intention is to ensure that small and religious stations - and, indeed, all stations - will not be unduly burdened and that any new payment requirement will not be excessive. In fact, under the legislation that we are crafting, a large majority of all radio stations will receive special accommodations. This is the right thing to do," the Congressman said. Berman plans to introduce his bill next month.

RBR observation: Who wants a discount when you shouldn't have to pay anything in the first place? We've heard a lot of concern about the performance tax this week in Charlotte. NAB is working to rally heavy broadcaster opposition to the Berman bill. As David Rehr noted in his speech to the convention, the RIAA wants everyone to believe that making radio stations pay up would benefit artists, when in fact the artists would receive very little, with most of the windfall going to line the pockets of record company executives.

Independent directors say no to Hearst-Argyle buyout
The offer from Hearst Corporation to buy out other shareholders of Hearst-Argyle Television has been rejected by the special committee of independent directors at Hearst-Argyle. They say the offer of 23.50 per share (8/27/07 TVBR #167) is not enough. The statement released after the market closed yesterday states that the special committee unanimously determined that the offer is "inadequate and not in the best interests of Hearst-Argyle Television stockholders, other than The Hearst Corporation and its affiliates." The independent directors advised public shareholders to reject the offer and not tender their shares. "The Special Committee made its determination and recommendation based upon various factors, including, among other things, the belief that the offer undervalues the shares of Series A Common Stock of Hearst-Argyle Television, and does not adequately reflect the prospects and value of the Company," the statement said. Hearst-Argyle Television owns 26 television stations and manages three others. It also manages two radio stations which are owned by Hearst Corporation.

RBR observation: Hardly a surprise. Investors had been pressing for a higher price since the Hearst Corp. offer was made and the stock has consistently traded well above the 23.50 offer since the day it was issued. Hearst-Argyle closed yesterday at 26.05.Now we wait to see if Hearst Corp. comes up with a better offer to acquire the 27% of Hearst-Argyle that it doesn't already own.

Wall Street Media Business Report TM
Moody's upgrades Block
Moody's Investors Service upgraded Block Communications' corporate family rating to Ba3 from B1 and revised its outlook to stable. In addition, Moody's upgraded Block's 150 million in senior notes due 2015 to B1 from B2. Ratings on other issues were confirmed. In all, Moody's has ratings on 340 million of Block's debt. "The upgrade reflects Moody's expectation that Block's favorable union contract resolution at both The Blade (Toledo, OH) and Pittsburgh Post-Gazette will result in significant cost savings and substantial improvement in the company's credit metrics," Moody's said. Privately owned Block has operations in cable television, telecommunications, newspaper publishing and television broadcasting.

Ad Business Report TM

Brand experience and loyalty leaders
Advertising and marketing are all about moving products and services, but the ideal is to build a relationship between provider and consumer that is measured in terms of decades rather than single transactions. RTC Relationship marketing has surveyed companies in a number of categories to determine which brands are doing the best job of this. "This study clearly demonstrates how brand experience can be leveraged as a major differentiator, even among leading brands," said RTCRM CEO Barry Kessel. "While marketers spend billions on brand awareness and acquiring new customers, it's equally important and highly profitable to keep customers happy and committed by delivering a positive experience. It just makes good business sense," said Kessel. Financial services giant ING and automaker Honda were awarded the top slots under this criterion. The top three in a selection of industries are:

* Airlines: Southwest, JetBlue and Continental
* Auto: Honda, Toyota and General Motors
* Banking: ING, Wachovia and Wells Fargo
* Internet: Verizon, Google and AT&T
* Hotel: Radisson, Hyatt and Westin
* Specialty Retail: Home Depot, Bath & Body Works and Best Buy
* TV Programming: Sesame Street, Wonderful World of Disney and Oprah
* Mobile: Verizon Wireless, AT&T and Motorola
* Honorable mentions not ranked due to low base sizes included: Mercedes, BMW, Lexus, Volkswagen, Apple iPhone, Virgin Atlantic Airlines and Four Seasons Hotels and Resorts.

The survey was based on Young & Rubicam's BrandAsset Valuator(TM) and was conducted over the internet by Penn, Schoen and Berland Associates.

What America's most influential
marketers say about radio

At the NAB Radio Show yesterday, the super session, "What America's Most Influential Marketers Say About Radio," featured commentary from Frank Cooper, Vice President Marketing, Pepsi-Cola North America, and Tony Ponturo, VP of Global Media & Sports Marketing/President & CEO, Anheuser Busch/Busch Media Group. Ray Warren, former Carat USA President and currently a consultant for an out of home 3D network and brand integration/placement company, moderated. Warren asked, "What the heck happened to radio?! Stations used to be social networks. They were the fabric of our lives. Today radio doesn't have much of a social life functions, especially among college students." He mentioned a college station he used to DJ on is no longer even in existence. The solution voiced by all three was basically that radio has to evolve fundamentally to increase ad spend. Radio and advertisers need to partner more to work on ways to add value to the listeners' experience.

"Young adults are born into a world of interactivity. Radio needs to find a way to tie into those trends," said Cooper. "What alarms me is I don't hear people talking about radio ads. There's no word of mouth. If my ad becomes background noise, that's concerning." Ponturo brought up the "Real Men of Genius" radio campaign (to applause) and its success, citing creative is key. "If you can get the DJs saying positive, reliable, credible information about your product, that's good," he stated. "We'll give you an appointment-bring us your ideas. Efficiency of time is important. Expect no more than 30 minutes. If you're in here for an hour, then we're interested." Cooper mentioned they are all about experimenting with new ideas to deepen the connection with consumers. "Tie something in with text messaging...we're letting consumers design the marketing extensions of Mountain Dew for 2008 themselves."

Media Markets & Money TM
Mid-America adds to its chain
David C. Keister's Mid-America Radio of Logansport-Peru is taking a regional radio station cluster in an unrated portion of Indiana north of Indianapolis from six to eight stations. It's picking up WSAL-AM/WLHM-FM in Logansport from Jack Jenkins' Logansport Radio Corporation. According to broker Ed Henson of Henson Media, the price is 1.1M, which has a 240K non-compete built in. The resulting eight station cluster forms three distinct radio markets under the old contour definition. WSAL-AM is in all three, along with WIOU-AM Kokomo and WMYK-FM Peru. Also in the first are WLHM-FM, WARU-AM Peru and WHZR-FM Royal Center. The second cluster includes the three universal stations, WARU-AM and WARU-FM Roann. The third cluster is comprised of the three universals and WZWZ-FM Kokomo.

Washington Media Business Report TM
Station hops EEO violation charge
License renewal challenges continue to roll in to the FCC. This time the subject is noncommercial KUYI-FM Hotevilla AZ, licensed to The Hopi Foundation, which found itself subject to an informal objection from Rosanda Suetopka Thayer. She charged that the station engaged in discriminatory hiring and management practices, and failed to issue issue-responsive programming. She claimed the station hired a station manager without consulting the Hopi community and treated volunteer DJs abusively, among other things. The Hopi Foundation pointed out that as an entity with less than five employees, it is not subject to EEO regulations. Since the other charges were submitted without substantiation, the objection was denied.

RBR observation: We've seen a steady trickle of these cases of late, and most are being shot down easily due to utterly inadequate challenges. The mystery in some cases, though, is why it seems to take so long to filter through the bureaucracy. This case dates back to 9/29/05. Is there any way to build in a mechanism in which an appropriate FCC staffer opens the challenge, sees its obvious deficiencies and sends it on its merry way to the rejected pile without letting months and years slip by?

Entertainment Media Business Report TM
Where is Kraig Kitchin heading?
Most know that Premiere Radio Networks President Kraig Kitchin is leaving at the end of the year and Charlie Rahilly is taking over. Many were asking at the show-what will he be doing? We asked Kraig directly-"I will be managing a select group of talent." That's about as much as he'll tell anyone. Speculation ranges from running Westwood One or ABC Radio Networks to managing/representing Delilah, Hannity, or Rush. "Who's contracts are up soon?-add them to the list," said one industry vet.

Engineering Business Report TM
HD multicast programming
ideas examined

At the NAB Radio Show yesterday, "HD Programming: The New Frontier" featured Michael Albl, Vice President/General Manager - Format Lab, Clear Channel Radio; Don Kelly, Director of Broadcast Marketing, iBiquity Digital; Cynthia Morgan, SVP - Corporate Development, Delmarva Broadcasting and Andy Mussaw, Managing Partner, Graffiti Radio, Wilmington, DE. The session was moderated by Charlie Cook, VP/ Country, Cumulus Media. Right off the bat, it was mentioned there are two classes of HD multicasts: Those that offer formats complimentary to the main signal and those that offer totally different formats. The overall recommendation was to offer something different-to offer listeners more choices in each market, for one.
| Read More |

RBR observation: Graffiti Radio is a good example of putting radio back into the hands of younger folks. You want them back in radio? Let them be involved in it-program it with their new music. Let them see the local reach radio has. If each market has a few indie/Alternative/techno/free-form channels programmed by a bunch of college age (or high school) locals in the community, both listeners and advertisers will take notice. Promote it with the main signal! The channels can be block programmed-look at Sirius 26's Blog Radio for a great example from noon-2PM weekdays. We used to have college stations that did that in many markets, but most of them now just play NPR news 24/7 and Classical. Commercial radio has a great opportunity here-a wide open opportunity. Let's take it.

Ratings & Research
Nielsen taking LPM to 38 more markets
As Arbitron works to roll out its Portable People Meter (PPM) to all of the top 50 radio markets by 2010, Nielsen is moving to expand its Local People Meters (LPM) to 38 additional markets by 2011. That will put LPMs in 56 of the top 63 markets, including all of the top 38. "This is a tremendous step forward for television measurement in these markets. Nielsen is committed to continuous improvement in its measurement services and converting markets to our electronic Local People Meters will significant improve the quality of our local measurement. As a key part of this process, we are also committed to working closely with the clients and stakeholders in every market to make the transition as smooth as possible," said Susan Whiting, Executive Vice President, the Nielsen Company, and Chairman, Nielsen Media Research. LPMs are tied to TV set-tops and measure only in-home viewing, but report viewing daily for quick ratings statistics. Nielsen is also working on its own device, similar to Arbitron's PPM, to report strictly on out-of-home TV viewing. When LPMs are introduced into the full 56 local markets, about 70% of US households will be measured by People Meters. Eight markets were already scheduled to switch to LPM ratings yet this year or next, completing the roll-out in the top 18 markets. The 38 additional markets just announced are to go live with LPMs from January 2009 through October 2011.
| See the list |

RBR observation: Back in March 2006 (3/2/06 RBR #43), Nielsen made two important decisions. Decision 1: Turned thumbs down on a joint PPM venture with Arbitron. It would sure be a different world today if that decision had gone the other way! It was definitely a corporate culture clash, though, and we understand that Arbitron was reluctant to disclose a lot of data to Nielsen without a formal joint venture deal because the two companies, who once battled fiercely in the TV ratings business, just don't trust each other. Decision 2: Was told that it needed to be able to measure video viewing from new sources, such as the Internet and iPods, with the same quality by which it measures television. "Basically, follow the video." So, it has been doing just that with refined technology, new services and projects still in the works. Got to give Nielsen guys some credit 17 months later through buyout, restructuring they have stayed focused to that now great branding phrase: Nielsen - Follow The Video.

Addressable ads
coming to HD Radio

It's only a matter of time, and NDS is working on it now. At The NAB Radio Show in Charlotte, RBR sat down with Tom Rucktenwald, NDS Director of US Data Applications Delivers to discuss NDS's technology which is being licensed by the major equipment manufacturers for their Conditional Access offerings. Conditional Access allows broadcasters to limit content on HD streams to those which have paid for them or have special access to the content. Everything from live concerts to reading for the blind services. Rucktenwald told us the process for conditional access technology in the receivers is still being rolled out. The first step-the "security chip"-has already been developed by LG Electronics and is moving into new receivers soon. The second stage will be a single chip with the encrypted conditional access ability. Receivers already out there today will not notice the conditional access channels. They just won't be able to receive the content. Remember, an HD multicast channel can be free all day long and kick in a conditional access program anytime. If you're addressable receiver is one that's authorized, the content will come through. Speaking of addressable, yes, Rucktenwald says the technology is here for HD Radio, just like for local cable ad inserts. They are currently working on getting it into the hardware for future radios. Other than that, all we need is the user to provide opt-in information; a small amount of memory space in the receiver and HD signal; and the industry needs a supplier to step up with an advertising service to tag the ads.

RBR observation: When addressability becomes available to advertisers and agencies, it will put HD Radio on par with internet and television-no waste of messages being heard by the disinterested. Zit cream ads will go to the 12-18 years olds on an Alternative station; an insurance ad will be delivered to a 40-year-old who's listening. The south side of a market will hear their local Toyota dealer ads; listeners on the north end of town will hear about a different set of dealerships.

4.5M KODY-AM/KXNP-FM North Platte NE and KUVR-AM/KMTY-FM Holdrege NE from NRG License Sub LLC., a subsidiary of NRG Media LLC (Mary Quass) to Armada Media-McCook Inc., a subsidiary of Armada Media Corporation (Jim Coursolle, Christopher A. Bernier, John R. Larson, John Lynch, Terry K. Shockley et al). 200K, balance in cash at closing. LMA until closing. [File date 9/10/07.]

4.4M KCKK-AM Denver CO (Littleton CO) from People's Wireless Inc. (Timothy Brown) to Mile High Sports Radio LLC (Nathan W. Drage et al). 200K escrow, 2M cash at closing, 2.2M note. LMA 8/1/07. [File date 9/10/07.]

Stock Talk
Mixed data yields mixed results
Wall Street analysts noted that buyers and sellers were having a tough time sifting through economic info that seemed to point in many different directions. But nobody seems to doubt the trouble in housing and credit. The end result was a mixed day of trading, and broadcasting stocks fell right in line with that.

Radio Stocks

Here's how stocks fared on Thursday

Company Symbol Close Change Company Symbol Close Change




















Journal Comm.







Lincoln Natl.




Citadel CDL
4.15 -0.03

Radio One, Cl. A




Clear Channel




Radio One, Cl. D




Cox Radio












Saga Commun.




Debut Bcg.




Salem Comm.








Sirius Sat. Radio








Spanish Bcg.
















Westwood One








XM Sat. Radio





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Below the Fold
Ad Business Report
Brand experience
And loyalty leaders but the ideal is to build a relationship between...

Media Markets & Money
Mid-America adds to its chain
Taking a regional radio station cluster in unrated portion of Indiana north of Indy...

Washington Media Business Report
Station hops EEO violation charge
License renewal challenges continue to roll in to the FCC. This time the subject is noncommercial KUYI-FM...

Ratings & Research
Nielsen taking LPM
to 38 more markets
Arbitron works to roll out PPM to top 50 by 2010, Nielsen moving to expand its LPM...

Stations for Sale

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

3 Station SW Cluster
Excellent 2 owner market.
Priced to Sell. [email protected]

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

Market your Stations For Sale
in our daily epapers.

June Barnes
[email protected]


Radio Media Moves

Westwood ups Salvatore
The new Senior Director of Affiliate Sales is Michelle Salvatore. She'll be focusing on building distribution for sports and entertainment features, including items from late night television shows including "Satuday Night Live," "David Leterman," "Jay Leno," "Conan O'Brien" and "Jimmy Kimmel."

More News Headlines

GM/UAW pact
seen as template

There is even more good news tied to the agreement between General Motors and United Auto Workers after a very brief strike. That is the observation of industry analysts that the pact will likely inform the union's negotiations with Ford and Chrylser. Negotiations were suspended 9/13/07 to focus on the GM contract, but are expected to resume at the beginning of October and are further expected to follow the trail blazed by the GM agreement.

RBR observation: The happier the automotive industry is, the happier broadcasters are likely to be.

Dial Global nets
get special tabs
for RADAR 94

In the RADAR 94 survey, Dial Global Complete FM remains one of the most effective choices to reach young men and women. The network maintains the No. 1 ranking among all networks for Adults 18-49. Dial Global Contemporary, Dial Global News & Information and Dial Global Digital 24/7 will all receive special tabulations on RADAR 94 from Arbitron for 2008 sales. "We are pleased with the consistency and the performance of our networks in this latest survey. We are excited to receive the results of the Special Tabulations which will continue to deliver growth to our networks and advertising partners in 2008." said Charles Steinhauer, EVP.

Dial Global and Short Bus Radio strike deal
Short Bus Radio and Dial Global announced at NAB a multi-year partnership. Beginning 10/1 DG will distribute the Short Bus service to existing affiliates and handle affiliate sales for its production and imaging services. All current station affiliate license agreements for the Short Bus service remain in effect, unchanged. As part of the agreement, Jones MediaAmerica will represent Short Bus as its ad sales rep in 2008. DG becomes Short Bus' exclusive sales rep in 2009. Short Bus, a leader in pre-produced imaging provides services in nine formats, including News/Talk, CHR, Rock and Urban. Subscribers receive sweepers, music beds, SFX, and work parts updated every week. Short Bus is heard on hundreds of stations including WABC in NY, KLOS Los Angeles, WJLB Detroit and WXKS Boston.

Martha Stewart makes live appearance on WADV Radio
Martha Stewart will make a special guest appearance on WADV Radio, the streaming Radio station of Advertising Week 2007, on Thursday morning. At the heart of all the action of Advertising Week, WADV Radio has been streaming live from the Paley Center for Media all week with streams of keynotes, up-to-the-minute news, behind-the-scenes highlights, and interviews with luminaries such as Keith Reinhard and now Martha Stewart. Hear it at

TVBR - TV News

NAB kicks of DTV education program
"DTV Action" spots have been distributed throughout the US in both English and Spanish as the NAB kicks off its DTV transition consumer awareness program. The package sent to television stations includes ready-made spots and ample material for use by local news departments. NAB says this is just the first salvo in a program that will continue right up until the transition deadline of 2/17/09. The current program is designed to promote the following points: * Digital television provides numerous benefits to viewers; * All broadcast television will be digital in 2009; * Some consumers will need to upgrade or they will lose their TV signals; * More information is available by visiting or calling 1-888-DTV-2009. The news package includes * Footage of a DTV converter box, including a consumer hooking up her analog television to a box; * Footage of transmission towers and antennas; * Interviews with FCC Robert McDowell and U.S. Secretary of Commerce Carlos Gutierrez; * An additional interview with Secretary Gutierrez in Spanish. The spots can be viewed at

"This video package is only the first step in NAB's multifaceted media plan to educate consumers about the DTV transition," said NAB President/CEO David K. Rehr. "Our spots are informational and drive general awareness that the DTV transition is a good thing for consumers, but that they may need to take action to upgrade. Our stations have already received and will continue to receive educational materials from NAB by February 2009 to educate consumers about DTV."

TVBR observation: The news package is a prime example of a video news release (VNR), and is further an excellent demonstration of the benevolent use of such PR devices. They are not necessarily a tool of the devil. They aren't all about getting us to try a certain product or service on the sly, or a product of an under-the-table compact between broadcaster and advertiser. Many times their intent is purely educational, as in this instance.

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

2008 looking very different
for Radio and TV
Is 2008 "a year in the balance" for radio? Bear Stearns analyst Victor Miller asked that question at the financing session that kicked off the NAB Radio Show in Charlotte. For the first time since radio deregulation in 1996, TV stocks now trade at a higher average EBITDA multiple than radio stocks. That's come about because the average pure-play TV stock is up 35% this year, while the average radio stock (excluding Clear Channel and Cumulus, who have buyout deals to go private) is down 30%. The best Miller could say for radio, though, is that it may have to deal with fewer negatives in 2008. Satellite radio is dealing with its own problems. Mainstream operators who have seen ratings and revenues shift to radio groups focused on Hispanic and Urban formats stand to bounce back as PPM rolls out to more markets.
09/27/07 RBR #189

No immediate return to easy credit
There was optimism at the financing session in Charlotte that the current credit crunch will moderate, but no one was predicting a quick return to the type of market that we saw a few months ago before problems in the sub-prime mortgage market spread out and made credit tighter for everyone.

RBR observation: For those of who were around for the HLT credit crunch in the early 1990s, this credit tightening, though painful for many, is nowhere near as devastating as what happened then. No one is rushing to sell radio and TV stations for deeply discounted prices. Lenders aren't fleeing the broadcasting business. There are differences of opinion on how quickly investor money will flow back into the market to back mega deals, but for routine deals it's business as usual, with perhaps less generous terms. Life goes on.
09/27/07 RBR #189

Ford to offer HD Radio
across most product lines
Ford became the first automaker to offer HD Digital Radio across multiple product lines. The dealer-installed HD radio option is now available nationwide on nearly all 2008 model year Ford, Lincoln and Mercury vehicles. Additionally, HD Digital Radio can be installed on many earlier models from 2005, 2006 and 2007. As with SYNC, the extensive availability of HD Digital Radio furthers the company's ongoing efforts to deliver new entertainment technologies to automotive consumers....Beginning immediately, HD Digital Radio will be available as a dealer-installed option on new, pre-owned and currently-owned vehicles. Price points will vary by dealership.

Phil Cowdell, WPP's Global Media Director CEO of Ford Media Services, tells RBR about Ford's SYNC in an upcoming interview in our SmartMedia magazine: " will allow you to use your mobile phone through the car's hi-fi system. You can drive hands free. SYNC basically provides a software operating platform in the car that means whatever devices you've got as a consumer, when you get in your car you can use them seamlessly. (For the full report on HD and Ford see RBR)

RBR observation: This is what we've all been waiting for-the last piece of the HD Radio puzzle. Hopefully the dominoes will start falling as well with GM and Chrysler. Now the real push begins against satellite's 12.95 a month price tag. Now AM stations can offer music again as well. Congratulations Radio-this is some real icing on the cake for the NAB in Charlotte.
09/26/07 RBR #188

Houston PPM in-tab falling
Another problem for Arbitron in Houston? Looks like its turnover, as the Houston PPM in-tab is falling, falling, falling. The Houston September week 2 sample dropped significantly and the weekly in-tab dropped to a record low, losing 70 in-tab. Conversely, Philadelphia is up slightly and continues to be traveling in the right direction. Said Cox Radio CEO Bob Neil: "Once again, a quick mention in a conference call about Holidays doesn't cover a big drop in sample. The majority of the drop appears to be caused by people dropping out of the panel after two years. Where is the memo to clients before this kind of thing happens? More in RBR.
09/26/07 RBR #188

Executive Comment
Rock (or is it Roll) to
(NAB President) David Rehr
It's about broadcast radio remaining the Dashboard Dominator. True NAB will be forced to repudiate all the hyperbolic praise related to the HD radio roll-out. After all, unlike Sirius and XM, Ibiquity didn't do such a great job of super-charging market penetration by cutting lucrative equity deals with OEM's. And why when offered the opportunity, didn't Bob Struble and his many radio company investors just give Steve Jobs a fee-free license to include HD radio reception...

RBR observation: Some times it has to be said and by someone other than RBR. We let broadcasters speak and this Open Letter to NAB's Rehr worth another to Radio's competitive future and the future is NOW. Take a read in this special page report.
09/25/07 RBR #187


Affiliate Sales Rep
WOR Radio Network's (WRN) needs an exec with Passion for Talk Radio. Self-starter w/ 2-5 yrs experience. Work independently and achieve goals to increase market coverage and audience delivery for our Nationally Syndicated programming. Business is about relationships and candidate with strong database in Talk Radio will win big time. Offering competitive salary + commission plan, health insurance and 401K. WRN is the place to be to succeed with stability. Details & Apply see Radio Careers

General Manager
Midwest & Life is good with this Small-Medium cluster in rated market. Top Aggressive, community minded GM needed. We're reentering ownership so don't be concerned that you're already working for us. Have a track record of performance, strong on sales and ideas. Ability to get the most out of a talented staff. Tired of the corporate jungle and want to work in real radio. This GM post for the person with Radio Passion. Details where to apply see Radio Careers

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

Hard finding that key person
to fill the important position at your organization? Media HeadHunters is the place that key media firms use to get results. See Media HeadHunters and get results with service.

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