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Volume 23, Issue 191, Jim Carnegie, Editor & Publisher
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Monday Morning October 2nd, 2006
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Radio News ®
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 Radio revenue up, if not revved up
Here's the good news from the Radio Advertising Bureau's latest tally of radio revenue results: August comes home as radio's best overall month of 2006. Here's the bad news: The gain was a mere 2%, and local business was down. A surge in national and non-spot results fueled the foray into the black ink zone. For those of you keeping score at home, local was down 2%, but the industry was buoyed by double-digit gains in the junior categories, including a 12% gain in national and a 10% gain in non-spot. It all added up to a 2% gain overall. YTD, local is down 2%, national is up 2%, and there's just enough non-spot surplus - it stands at 9% to the good - to produce flat results thus far.
RBR observation: Local business, radio's bread-and-butter, bring-home-the-bacon category, has been limping all year. Monthly local results have beaten 2005 totals only once thus far, a scant 1% increase back in May. Every other month has been at least slightly off (though never worse than minus 4%). August was easily the best month for national. Radio has demonstrated great creativity in the non-spot category, perhaps proving the adage that necessity is the mother of invention. Non-spot has only been in the red only once and has exhibited double-digit growth in five out of eight months measured thus far. Radio must get local back to restore robust health.
Nielsen unlikely to challenge Arbitron in US radio
Nielsen Media Research has not yet closed the door, but the possibility of Nielsen entering the Next-Generation RFP for electronic radio audience measurement in the US was dismissed Friday as "extremely unlikely" by parent company VNU CFO Rob Ruijter. Nielsen confirmed last month that it was approached by the Clear Channel-led group about entering the competition with the passive device it is developing for measuring out-of-home TV viewing (9/12/06 RBR #177) "We don't really have any intention to go into radio measurement. I know that it was both rumored and, yes, we were approached by a number of parties about whether we would be interested in doing radio measurement, but I don't really think that that is our space. Therefore it is extremely unlikely that we would go there," Ruijter said in answer to analyst's question about whether Nielsen was going to compete for the US radio ratings market.
RBR observation: VNU is putting their act together with a new CEO who has been only on the job for a short period of time. It is just a logical decision at this time to stay focused and Nielsen will follow the video as currently in the hottest debate in the Television Business is Commercial Ratings which is extensively reported in TVBR (09/28/06 TVBR #189).
 FTC moves to curb
false Hispanic advertising
Deceptive and just plain false advertising is nothing new. The Federal Trade Commission regularly busts advertisers who promise more than they can deliver. It is now launching a special campaign to combat the same problem in the Hispanic media universe, where language barriers make it much more difficult for enforcers to even be aware of the crime. The FTC spent a day surfing Hispanic media and found 166 advertisers on 77 media outlets which were treading on dangerous ground. Media categories with "potentially deceptive" ads included newspaper, magazine, Internet, radio, and television. "This snapshot reveals that the Hispanic community is bombarded with ads offering false information and often false hope for disease cures or a better lifestyle," said Chairman Deborah Platt Majoras. "Together with our partners, we can shine a spotlight on these frauds and work to put an end to them."
RBR observation: The FCC has had a problem discovering indecency violations when they occur on Hispanic radio and television stations. Enforcement there usually comes at the behest of an offended citizen, but the language barrier does put up an extra hurdle for regulators to clear. Both the FCC and FTC are probably going to have to make a special effort to have bilingual staffers on hand to effectively police this exponentially-growing media category.
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 Stevens lauds Valenti
parental control effort
Ted Stevens (R-AK) took to the floor of the Senate to discuss a media topic. We'll bet he was wishing the topic was his telecom update designed to promote competition in the MVPD business which was hung up by the dispute over network neutrality. That battle has been put off until another day. Instead, Stevens had kind words for Jack Valenti's (pictured) parental TV control campaign, called "Be the Boss of What Your Kids Watch". Noting attention to the indecency effort by the Senate Commerce Committee, Stevens said, "In July, Jack Valenti and Peggy Conlon, the president of the Ad Council, kicked off this 'Be the Boss' campaign when they showed our Committee their first two public service announcements. Thanks to these announcements, and the campaign web site, www.thetvboss.org, parents now have information about the V-chip, cable and satellite controls, and television ratings. The 'Be the Boss' campaign is one of the noteworthy initiatives which has developed from these efforts. Surveys show that only three percent of Americans know how to use the V-chip, a feature in every television set which enables parents to block programs based on ratings. This 300M ad campaign seeks to teach parents how to use this and other blocking technologies and will help them better monitor television programs."
RBR observation: Stevens has often expressed his dismay with some of the content available over the airwaves. However, he has almost as often expressed his firmly held belief that any legislative overstepping will surely be shot down in the courts, potentially leaving those most offended by broadcast content worse off than they are now. At best, he realizes the issue will could spend years in litigation. Practical tools for parents, and simple use of the channel changer by offended adults, will go a long way toward avoiding an unnecessary battle on First Amendment turf.
106.9 mHz San Diego: The garage band
A bargain basement pirate has been busted in the San Diego market. Joni K. Craig argued that she was a passive FM pirate, and it wasn't the basement, it was the garage, which she allowed the real pirates to use for their unlicensed operation of a station on 106.9 mHz. Agents first traced to the Craig garage back on 10/4/04 (Craig refused them entry, said she knew of no radio station and that other people were working on some kind of project in there), and again on 11/10/04 and other times thereafter. She was threatened with the traditional 10K fine 7/26/05, and on 8/3/05, the station was silent. But it was back by 8/26/05. She was hit with the 10K fine officially on 12/19/05. Craig said she should not be liable, because of her mere passive interest in the station. The FCC believed otherwise, particularly since she provided venue and electricity and admitted she could have turned off the station if she wanted. Craig did have one thing going for her: poverty, as substantiated by three years worth of tax records. Taking that into account, the FCC gave her a reduction all the way down to 500 dollars.
 Great minds met in Dallas
"Now you're the new guy," said NAB President and CEO David Rehr, right, as he was introduced to RAB President and CEO Jeff Haley, center, by Haley's predecessor, Gary Fries, left. For his part, Haley thanked Rehr for blazing the trail for an "outsider" to take a top position in a radio trade association. The encounter was at the NAB Radio Show in Dallas at the Interep suite. As luck would have it, RBR Publisher Jim Carnegie, VP/Administration Cathy Carnegie, Executive Editor Jack Messmer and Marketing/Sales Director June Barnes were on hand at that magic moment and requested this photo from the folks at Interep.
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| Wall Street Media Business Report TM |
Up quarter for VNU
Although its new private equity owners have bought out the former public shareholders, VNU is still reporting its operating results. Pro forma results for Q2 show a 6% gain in revenues on a constant currency basis to 943 million euros. Pro forma operating income was up 11% to 114 million euros. The company said it continues to see good growth from expanded retail measurement, consumer panel and television audience measurement services, from new client initiative and new products, and from US trade shows and certain print and online media in Europe. So, what it not doing so well? VNU said business was soft for ACNielsen in the US and that its trade magazines continue to face a tough advertising climate in the US and Europe. The Media Measurement & Information division, led by Nielsen Media Research, saw revenues rise 11% to 268 euros. Business Information, which includes such US publications as Billboard, The Hollywood Reporter, Adweek (and recently acquired R&R) saw Q2 revenues rise 2% to 170 million. That was primarily due to growth in recruitment media in the Netherlands and US trade shows, while the US print publications were down 3%. Marketing Information revenues rose 4.5% to 505 million euros.
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Ad Business Report TM
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John Hancock launches multi-million branding campaign
John Hancock Financial Services announced a major multi-million dollar campaign that illustrates the evolution of the John Hancock brand following the successful completion of its merger with Manulife Financial. Included will be the launch of the company's first new brand platform in a decade. The campaign positions John Hancock as empowering Baby Boomers Plus to fulfill their life promises, assuring them that "The Future Is Yours." The ads build on prior work - intimate vignettes of people telling their personal stories. The move away from fear-based to positive, upbeat messaging underscores how far the John Hancock brand has evolved. Boston-based Hill, Holliday, Connors, Cosmopulos crafted 30-second TV spots that will debut on cable, specifically lifestyle and news programming on stations including MSNBC, ESPN and Discover, among others, beginning today. The company will also advertise during college football on network television. Spots will be heard on both XM and Sirius Satellite Radio. Print publications such as Kiplinger's, Money Magazine, and Conde Nast Traveler will feature full-page, four-color ads. Also included are ads in The Wall Street Journal, which will appear on the front page of the Personal Journal section. Online is also a part of the mix and initially will run on Yahoo! Finance's "Opening Bell." Initial ad spend will be in the 25-35M range, beginning in Q4 2006 and running through 2007, which in effect doubles the ad spend of the same timeframe a year ago. The campaign will place greater emphasis on the new company's line of investment products and services, including 401(k) plans, variable annuities and a renewed focus on mutual funds -- products geared toward helping the Baby Boomer Plus population, in particular, manage accumulated assets.
RBR observation: Note there are XM and Sirius in this buy, but no traditional radio. We called to find out why, but didn't get an answer. This may be the first large scale campaign we've seen that uses most forms of major media and specifically excludes traditional radio for satellite radio. Hopefully not the beginning of a trend.
 Woo Agency breaks records with Dish Network
Culver City, CA-based Woo Agency has just staged the world record-breaking "The Ultimate Football Fan Contest" for their client Dish Network in which eight sports fans hunkered down to watch TV for the longest consecutive hours to date. The previous record was 69 hours and 48 minutes. Radio station contests identified the craziest sports fans to be contestants representing the following markets: Dallas, Denver, Green Bay, Indianapolis, Charlotte, St. Louis, Kansas City and Cleveland. The contest took place in Denver at Wynkoop Brewing Company in front of individual 37" flat panel TVs with a live feed of Dish Network's football-focused programming. Each contestant received a La-Z-Boy recliner as well as the TVs they viewed throughout the contest, which were provided by Radio Shack. Grand Prize was a trip for two to the Pro Bowl in Hawaii. Charlotte's contestant was the first to bow out. The seven remaining sports fans then banded together to break the world record as a team, even though there was just one Grand Prize. In a surprise move, NFL Network and Dish Network gave each of the seven contestants a Pro Bowl Grand Prize because of their camaraderie and sportsmanship. "The Ultimate Football Fan Contest" started Sunday, 9/24 at 11:07am, and ended exactly 70 hours later, making these seven individuals unofficial Guinness Book of World Record holders. Food was provided, as well as Monster energy drinks, which helped keep the contestants awake. The contest was the culmination of a series of guerilla events that included street teams and tailgate parties as part of an integrated marketing launch that Woo Agency created for Dish Network's total football package. The campaign featured prominent NFL players, championing the rallying cry "I want football 24/7." Woo was responsible for all creative duties on this project, including television, radio and print. Media was also bought by the agency.
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| Media Markets & Money TM |
 R&R price tag was 18.5 million
As a result of VNU publicly filing its quarterly financial results, we now know how much it paid for Radio & Records, which it merged with Billboard Monitor, keeping the R&R name. The purchase price was 18.5 million USD. Nielsen Entertainment LLC, an indirect wholly owned subsidiary of VNU, acquired all of the capital stock of Radio & Records from Perry Capital. The deal was announced in early July (7/7/06 RBR #131) and closed on August 15th.
Return engagement in Fargo
Clear Channel's seven-station Fargo ND-Moorhead MN radio cluster is on the way out the door. The buyer is from the long-time Midwest radio operating Ingstad family. This time, it's Jim Ingstad Broadcasting. The cluster includes two AMs: Full Service KFGO-AM and Sports KVOX-AM; and five FMs: Active Rock KDAM-FM, Country KFAB-FM, Classic Rock KKBX-FM, Soft AC KRVI-FM and CHR WDAY-FM. Jim Ingstad is already familiar with most of them. He and brother Tom sold six of them, all but KDAM, to Clear Channel for 46.3 million in 2000. The price tag on the buyback deal was not immediately disclosed.
RBR observation: Clear Channel announced that it was going to tighten up its portfolio, after years of being the most aggressive station buyer in the history of the world. We're sure there are multiple criteria for determining which stations are going to be sold, and spin-offs won't necessarily be intact clusters. For example, the group recently pared stations off clusters in Roanoke-Lynchburg and Chattanooga while retaining a strong presence in both markets. However, in terms of sheer headache excision value, the obvious choice for a spin-off would be the cluster in another North Dakota market. We refer of course to Minot, currently the most famous small radio market on Capitol Hill. If you don't believe us, just ask Byron Dorgan (D-ND).
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| Washington Media Business Report TM |
How much is that stick in the window?
The 124 sticks going up for auction next spring in FM Auction No. 79 are a geographically diverse collection of broadcast opportunities, not one of which is located in a recognizable Arbitron or Eastlan market, although we'd guess that many are in reasonable proximity. There are a few scattered about the huddled masses in the Eastern portion of the country, but the vast majority, as usual, are in the wide-open spaces of the West. Arizona and Colorado have quite a few, but the hands-down winner, beyond challenge, is the state of Texas. Minimum bids range from the top-drawer price of 200K, down to a bargain basement sticker of a mere 1.5K. Interested in what's on the block? Have a look.
| Auction No. 70 sticks |
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| Ratings & Research |
 NFL season is here: Pittsburgh fans #1
in the country
According to The Media Audit National 2005 Report, Pittsburgh is now the number one market in the U.S. for professional football fans, up from third place a year ago. The study, conducted among adults in 85 markets between January 2005 and March of 2006, indicates that 81.3% of adults in Pittsburgh follow professional football regularly on television or radio, a figure that is 40% higher than that of the national average. With this type of fan support, it comes as no surprise the Steelers went on to win their fifth Super Bowl title in this year's Super Bowl. Other top markets for NFL fans include Milwaukee-Racine (76% of adults regularly follow professional football on television or radio), Indianapolis (75.3%), Madison (74.3%) and Boston (73.9%). Noticeably missing from the top market list is Seattle, who competed against Pittsburgh in last year's Super Bowl. Adults in this market are 12% less likely than the national average to regularly follow football on television or radio. According to the study, nearly 80 million adults in the 85 measured markets regularly follow professional football on television or radio. Among professional football fans, nearly 43% are women and 57% are men. The study also indicates that professional football fans out-number other fans of professional sports in key planned purchase and heavy usage categories. For example, nearly 70% of adults who plan to purchase a new vehicle follow pro football compared to 58% who follow baseball, 50.7% who follow basketball, and 19.1% who follow hockey. Football fans also out-number fans of other professional sports in heavy consumption of beer. Nearly six million drink beer six or more times in a two week period, compared to 5.1 million who follow baseball, four million who follow basketball, and 1.7 million who follow ice hockey.
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| Monday Morning Makers & Shakers |
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Transactions: 8/14/06-8/18/06
It was another slow week, but what it lacked in quantity it made up for in quality. Two major top-10 market radio agreements (and another little one) combined with two dual-market television transactions to get all the way past 276M on a volume totaling only 14 stations. Part of that is because the three-way Boston/Philly swap between Greater Media, Nassau and Charles River was filed a week behind the other two stations involved for some reason.
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Total
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Total Deals
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8
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AMs
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3
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FMs
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7
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TVs
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4
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| Value |
276.05M
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| Complete Charts |
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Radio Transactions of the Week
Spanish flavor retained in Dallas deal
| More... |
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TV Transactions of the Week
Nexstar bags a pair in PA
| More... |
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| Transactions |
47M WUPV-TV Richmond VA (Ashland VA) from Bell Broadcasting LLC (David A. Hanna) to Southeastern Media Holdings Inc., a subsidiary of Community Newspaper Holdings Inc. (Donna Barrett). 2.3M escrow, balance in cash at closing. Station is CW affiliate on Channel 65 (DTV 47). [File date 9/7/06.]
294K KBVL-FM Pawhuska OK from Kurtis Media LLC (William Kurtis) to Tallgrass Broadcasting Inc. (Joseph E. Walker, William H. Kurtis). Cash. LMA until closing. [File date 9/7/06.]
35K AM CP Jackson WY from Evangelical Broadcasting Group Inc (Stephen Gajdosik) to Ted W. Austin Jr. 1K deposit, balance in cash at closing. Combo with KCHQ-FM Driggs ID. CP is for 1490 kHz with 420 w-D, 1 kw-N, ND. [File date 9/6/06.]
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| Stock Talk |
Retreat from record territory
A drop in consumer spending and a rise in core inflation brought a cloud of gloom over Wall Street to end an upbeat week. The Dow Industrials fell back from challenging the all time high for the blue chip index and closed down 39 points, or 0.3%, at 11,679.
Radio stocks were also a bit lower. The Radio Index fell 0.251, or 0.2%, to 139.582. Spanish Broadcasting System, which is a penny stock (and therefore not part of the index) jumped 4.1% as one of the few gainers. Among the day's losers, Fisher fell 2.6% and Emmis was down 1.9%.
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| Radio Stocks |
Here's how stocks fared on Friday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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37.01
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-0.29
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Hearst-Argyle
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HTV
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22.95
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-0.04
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Beasley
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BBGI
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7.03
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-0.05
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Journal Comm.
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JRN
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11.27
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-0.03
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| CBS CI. B |
CBS |
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28.17
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-0.04
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Lincoln Natl.
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LNC
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62.08
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-0.46
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| CBS CI. A |
CBSa |
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28.22
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-0.09
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Radio One, Cl. A
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ROIA
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6.24
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+0.06
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| Citadel |
CDL |
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9.40 |
+0.07 |
Radio One, Cl. D
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ROIAK
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6.25
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+0.03
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Clear Channel
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CCU
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28.85
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-0.07
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Regent
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RGCI
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3.79
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-0.04
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Cox Radio
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CXR
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15.35
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unch
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Saga Commun.
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SGA
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7.74
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+0.09
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Cumulus
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CMLS
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9.56
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-0.13
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Salem Comm.
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SALM
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11.31
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+0.03
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Disney
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DIS
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30.91
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-0.02
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Sirius Sat. Radio
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SIRI
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3.92
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+0.03
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Emmis
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EMMS
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12.26
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-0.24
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Spanish Bcg.
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SBSA
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4.37
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+0.17
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| Entercom |
ETM
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25.20
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-0.13
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Univision
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UVN
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34.34
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-0.02
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Entravision
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EVC
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7.44
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-0.01
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Westwood One
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WON
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7.08
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+0.01
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Fisher
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FSCI
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41.55
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-1.09
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XM Sat. Radio
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XMSR
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12.90
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-0.65
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Gaylord
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GET
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43.85
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-0.35
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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]
 My view of Radio
at NAB 2006.
I was happy to see many of the old faces and new blood there, even though some of the new blood was old blood, like Allen Shaw and Jim Leven. I was asked repeatedly if I thought the challenging (even difficult) environment today was cyclical or fundamental. I think it is both. Certainly the cyclical environment relative to automotive and other like industries has a real impact on radio advertising. But, fundamentally, the allocation of ad revenue to the Internet is real and has to be considered. Of all traditional media, I think radio has been the least impacted. We are resilient, local and content driven. I think radio gets it now, at all levels. I see we are adjusting. You can quote me.
Thanks.
Glenn Serafin
President
Serafin Bros., Inc.
Tampa FL
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Below the Fold
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Wall Street Business Report
Up quarter for VNU
VNU still reporting its operating results. Not doing so well, Business Information...
Ad Business Report
John Hancock launches
Multi-million branding campaign. Note there are XM & Sirius in this buy No traditional Radio...
Media Markets & Money
VNU price paid for R&R
For the record it was in US dollars…
Return engagement in Fargo
Clear Channel's 7 station Fargo radio cluster is on the way out the door...
Washington Media Business Report
How much is that stick in the window?
The 124 sticks going up for auction Take a closer market by market look...
Ratings & Research
NFL season is here
Pittsburgh fans #1 in the country...
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Stations for Sale
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WANTED! FM CP's
(commercial or noncommercial)
John W. Saunders, Media Broker
713.789.4222
[email protected]
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More News Headlines
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AURN re-launches website
American Urban Radio Networks unveils its newly redesigned website this morning. The new site, at www.aurn.com, features info about the company's four RADAR rated networks and their programs and SPM Urban Network and; its marketing division. In addition, the site offers visitors the opportunity to see AURN's array of programming. Advertisers, agencies, media planners, clients, brand managers and affiliates may also subscribe online to receive e-mail updates about programming and company news.
Foundation takes
a new name
In its 50 years of existence, the Twenty Year Club founded by HV Kaltenborn has gone through a series of named changes - to the Broadcast Pioneers in the 1950s and the Broadcasters' Foundation in 1995. Now it has dropped the apostrophe and added its nationality. "Our new name, the Broadcasters Foundation of America, will place even greater emphasis on making sure that broadcasters everywhere in America who need our help will be aware of the mission of our organization," said foundation chair Phil Lombardo, CEO of Citadel Communications.
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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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What about Hannity's
change of control clause?
CC Radio announced that it has renewed Sean Hannity's contract for another three years on 80 of its stations.
RBR observation: This is a big announcement - much more than an affiliate story. Hannity is a huge star in network radio now with a big future ahead of him. But where will that future be? According to a Bank of America report, Hannity has a change of control clause in his contract. One interpretation is that the clause would allow him to depart immediately after deal closes to combine ABC Radio with Citadel Broadcasting. That is a murky area, because the Reverse Morris Trust mechanism being used will have current Disney shareholders wind up with slightly more than 50% ownership of Citadel. If there is a change of control for ABC Radio, there will likely be a big bidding war for Hannity. This 80-affiliate move by Clear Channel only helps their position and solidifies their interest in Hannity, should he become a free agent. Hannity does about 25 million dollars gross in ad sales. We wo! uld assume he would get a significant signing bonus for any new deal he struck. Who will bid be bidding? Clear Channel? Fox News Radio? Google? What will Citadel do? If Hannity leaves, what happens to the ABC Radio Network? Citadel boss Farid Suleman has already said he intends to keep Hannity in the fold. Should get interesting.
09/29/06 RBR #190
Can Stolz stall Entercom CBS buy?
There's plenty of bad blood between Edward Stolz's Royce International Broadcasting and Entercom, going back to a long-term dispute over the acquisition of KWOD-FM in Sacramento. Stolz is writing the next chapter with a petition to deny Entercom's acquisition of CBS radio stations in four markets, charging it with over-leveraging and malfeasance.
RBR observation: Far be it from us to play the roles of either judge, jury or legal expert. We will play the role of experienced broadcast journalist, however, and note that we have seen petitions such of this on numerous occasions. For awhile, filing claims against Clear Channel on both technical and character charges was practically a cottage industry. Belendiuk should know, because he worked on many of them himself. We do not remember many, if any, going very far. Will this petition get any traction? Stay tuned. But we wouldn't advise any wagering.
09/29/06 RBR #190
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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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Upped to CIO
Promotion 
Double duty for Miller
