Welcome to RBR's Daily Epaper
Volume 21, Issue 192, Jim Carnegie, Editor & Publisher
Friday Morning October 1st, 2004

Today is moving day!

RBR/TVBR is moving to new offices today (Friday, 10/1) and our main office is closed. Effective Monday (10/4) here's where you'll find us:

2050 Old Bridge Road, Suite B-01 Lake Ridge, VA 22192
Phone: 703-492-8191 News fax: 703-997-8601

If you have breaking news today, call our Bradenton, FL bureau at 941-792-1631.


Radio News ®

Moonves out to fix Infinity
He may have spent his career in television, but Les Moonves is working to get up to speed on radio now that Infinity Broadcasting is part of his portfolio as Co-President/COO of Viacom. He says the company is going to spend more money on its radio stations and cross-promote them with its TV and outdoor platforms. But he's also looking to sell some stations in its smaller markets. Read on to see what is up Moonves sleeve like Hispanic market place. | More... |

Clear Channel warns of tough times ahead
It's no secret that the radio ad market remains sluggish, so Clear Channel CFO Randall Mays had a rather sober outlook yesterday at the Merrill Lynch conference in LA. He repeated what the company said in its July conference call - - that Q3 will be flat (7/26/04 RBR Daily Epaper #144). "We believe that business will be essentially flat - - and we think that will hold up. The fourth quarter is going to be a challenging environment, more challenging," Mays said. Even so, he insisted, "radio is still alive and healthy, contrary to a lot of the opinions out there." As you would expect, Mays pitched Clear Channel's "Less is More" initiative to the investor conference, which is supposed to cut ad clutter. "If we can improve the medium and make it better for listeners and advertisers, we'll make more money," Mays said. And he insisted that Clear Channel won't take a revenue hit in 2005 because of its plan to cut back on ad inventory.

RBR observation:
Will there be a ratings merger?
Back when Arbitron was spun-off from Ceridian there was widespread speculation that VNU, which owns Nielsen Media Research, would swoop in to buy the radio ratings company just as soon as a one-year tax penalty deadline passed. That milestone was passed long ago and nothing happened. The pot was stirred again this week when VNU sold its directories business for 2.5 billion dollars, saying to wanted to focus on its core businesses. That prompted a Reuters reporter to speculate that VNU might have its eye on Arbitron, although the news service then threw water on its own fire by saying such a deal was unlikely because of antitrust problems. So, is such a merger likely to ever happen? | More... |


ABC Radio Networks to market Mediaguide's "StationMonitor" nationwide
ABC Radio Networks and Mediaguide announced a major marketing agreement that establishes ABC Radio Networks as the exclusive national sales agent to U.S. radio stations for Mediaguide's "StationMonitor" music monitoring and reporting services. This, just after MediaGuide's announcement it will offer a suite of new products.

RBR observation: Could a spot monitoring product deal be far behind? Stay tuned. We know that ABC Radio's recent announcement it signed with RCS's Media Monitors to provide broadcast monitoring services to its stations in 10 markets is not a long-term deal. Hmmm... | More... |

Santa Cruz pirate FM scuttled
"On Wednesday, September 29 at 9:20 AM armed federal marshals and FCC agents served a warrant at the studio of Free Radio Santa Cruz. They have confiscated equipment and shut down the broadcast." That's the story from FRSC from its freakradio.org website. The station's been bringing its own brand of anti-establishment radio to its community, it says, for nearly 10 years over 101.1 mHz. FRSC calls itself a microradio station. An article in the Mercury News pegged its power at 35-40 watts. Were the station operators aware they were operating outside the law? You decide. From freakradio.org: "Free Radio Santa Cruz has been on the air for almost ten years without a license. We broadcast 24 hours a day, 7 days a week, 365 days a year, in defiance of federal regulations." The station published its philosophy: "We go on the air to protest corporate control of the airwaves, to bring local control and local accountability to our community media, to produce and broadcast a diversity of programs that are simply unavailable on corporate controlled stations. We do not air advertisements, we do not do pledge drives, we do not have sponsors or underwriters."

RBR observation: C'mon, gang, it's not about suppressing and/or oppressing the people, it's about interference in scarce spectrum. If, for example, Southland Corp. came in and put "The People's Slurpie Choice Channel" on 101.3 mHz across the street from FRSC, then perhaps you'd understand.

Emmis: The missus is now an author
Heather Hill, a/k/a Mrs. Jeff Smulyan, is the latest author in the Emmis Books stable. She's written about a topic she knows quite well - - relationships. Hill has matched more than 30,000 couples and still runs her own matchmaking company, Reservations for Two. Her book, co-authored by John B. Thomas, explains why people may sabotage their own relationships and then provides checklists and other helpful dating tips. "Baby It's You: What You Can Do to Find True Love" retails for 14.99 (and Jeff might be able to get you an autograph for an extra five-spot).


Adbiz ©

Steve Grubbs comments on
Arbitron-VNU, P&G alliance
We asked Steve Grubbs, PHD CEO, what he thought about the announcement about Arbitron and VNU are jointly exploring the possible development of a new, national marketing research service using Arbitron's Portable People Meter (9/30 RBR Daily Epaper #191): "This is a project that's been on the table between Arbitron and VNU for a while. The only new news is P&G is stepping up and endorsing it, and I imagine contributing some funding for it and helping to test it as well. I think this is something that we certainly advocate as an agency. Any kind of data that will give us a better indication of how the consumer is influenced by multiple media will enable us to make better decisions about how we allocate our media spend."

Charles Schwab narrows it to four
Charles Schwab has reportedly narrowed its review four finalists for the creative portion of its 100 million+ account. In the loop are Euro RSCG NY, Grey Worldwide NY, Wieden + Kennedy Portland and Publicis & Hal Riney San Francisco. Eliminated were Hill, Holliday, Connors, Cosmopulos Boston, Saatchi & Saatchi New York and Gardner Nelson & Partners NY. Select Resources International Santa Monica, CA is handling the review.


Media, Markets & Money tm

Entravision cashes out preferred shares
Entravision says it has bought back all 3,323,096 outstanding shares of its Series A convertible preferred stock from TSG Capital Fund III for approximately 73 million dollars. That eliminates any Wall Street concerns about what might happen in April 2006 when the holders would have had the right to force redemption for cash or Entravision stock - - not to mention eliminating the company having to pay 8.5% interest. The company said the buyback amounted to a small premium to the liquidation value.

Close encounter in Detroit
Salem Communications is now a member of an elite club: The top-to-bottom-top-ten-market club, along with Clear Channel, Infinity/Viacom and ABC/Disney (3/30/04 RBR Daily Epaper #62). It achieved that status with its 4.75M dollar closing on WQBH-AM Detroit from Queen's Broadcasting Corp. Salem announced that it will be changing the calls to WDTK and installing a News-Talk format anchored by talent from its Salem Radio Network, including Bill Bennett, Mike Gallagher, Hugh Hewitt, Michael Medved and Dennis Prager. The lineup will be rounded out with Larry Elder and Laura Ingraham.


Washington Beat

Should we or shouldn't we? BCS wants to know
Are broadcasters facing a fined if you do, fined if you don't situation? The FCC says you're not allowed to send out unsolicited faxes. And it says you have to. Broadcast Compliance Services is seeking a clarifying ruling to find out one way or the other. Faxes are a key component of broadcaster compliance with the FCC's EEO requirements. It is an important way to notify relevant constituencies of job openings. However, according to BCS (whose business it is to help stations meet their EEO compliance obligations), anti-faxing rules kick in 1/1/05, and companies found to be in violation "...are subject to federal criminal and civil penalties." BCS wants FCC confirmation that EEO help wanted faxes are not prohibited by the new rules.

Senate frees up spectrum, with a loophole
Broadcasters using certain analog channels on the high end of the dial will be asked to turn their spectrum back over to the government earlier than everyone else, for use by public safety organizations, if a Senate provision is seconded by the House (and the White House). The spectrum would be free by 1/1/08, a year earlier than would be required under the Ferree plan. The loophole is that the broadcast stations may be allowed to get a waiver if there is no alternate lower-channel station available for it to use prior to completion of the transition to digital broadcast. The aim is to prevent a disruption of service. Niche television groups Paxson Communications and Univision have the most to lose. The waiver may only be available, however, if there are no public safety groups in the area on the lookout for spectrum. The bill, which also provides for 1B dollars to buy some form of digital equipment for low income households, was attached to pending intelligence reform legislation. It still needs to gain approval from House members, who according to reports do not seem to have the same sense of urgency to get a spectrum-return measure on the books by year's end. The Ferree plan, named for FCC Media Bureau Chief Ken Ferree, calls for the return of all analog television spectrum by 1/1/09. It is being actively forwarded by FCC Chairman Michael Powell.


Engineered for Profit

CC Radio reducing AM audio bandwidth;
to suggest others do same
Clear Channel Radio SVP Engineering Services Jeff Littlejohn has reportedly begun a quest to reduce the bandwidth of the company's AM stations to match the bandwidth of available receivers to 5 kHz for AM talk stations and 6 kHz for AM music stations. Why? To reduce first-adjacent channel interference, not to help IBOC implementation. Littlejohn, co-chairman of the AM Subcommittee of the NRSC, will discuss at next week's NAB Radio Show. He plans to propose that all AM licensees follow suit. He says it serves no purpose for AMs to continue broadcasting 10 kHz audio on the AM band when the average receiver has an audio response of less than 4.5 kHz. In a memo, Littlejohn says benefits of the move also include increased modulation efficiency: "AM modulation that falls outside of a receiver's usable bandwidth ends up increasing the noise floor within the audible bandwidth." Although IBOC is going to require AMs reduce their audio bandwidth to 5 kHz. He reportedly said the AM bandwidth reduction was separate from the digital conversion of CC stations.

BE debuting 50kW AM transmitter at NAB Show
BE's new 4MX 50 AM transmitter is based on a patent-pending Fourier Modulation (4M) technique designed by Broadcast Electronics. It features duty cycle modulated RF to produce optimum efficiency over the entire 250 watt to 55kW power range, eliminating the need for an additional low power transmitter during nighttime operation. "This is a huge departure from the usual modulation techniques, and it all started with a 'what-if' question: What if we modulated RF devices directly and independently, so we didn't need a modulator stage or to turn PA modules on and off?" commented Richard Hinkle, Broadcast Electronics' Director of RF Engineering, who led the development team. The result is a product with improved efficiency in a lightweight, ultra-small package one-third the size of competitive products, according to Hinkle. The new 4MX 50 AM transmitter features: | More... |


Transactions

KBCR AM & FM Steamboat Springs CO from KBCR Inc. to Cool Radio LLC.

WEWC-AM Jacksonville (Callahan FL) from Circle Broadcasting of America Inc. to Norsan Consulting and Management Inc.

KQAA-FM Aberdeen SD from Aberdeen Radio Ranch to Educational Media Foundation.

| More Details |


Stock Talk

Stocks move every which way
If there was a pattern to Thursday's stock trading, it's hard to say what it was. The Dow Industrials dropped 60 points, or 0.6%, to 10,077, largely because drug giant Merck recalled Vioxx, one of its major products. The S&P 500 fell less than 0.1%, but the Nasdaq Composite was up 0.1%. Meanwhile, crude oil hovered around 50 dollars per barrel, keeping a lid on most stock prices.

Radio stocks edged up, however, for no discernable reason except that they'd been beaten down so much recently. The Radio Index rose 1.580, or 0.8%, to 211.122. Spanish Broadcasting System was the star performer, up 4.2%. Perhaps that had something to do with Viacom's Less Moonves talking about wanting to buy a Hispanic media company.


Radio Stocks

Here's how stocks fared on Thursday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

36.61

+0.58

Jeff-Pilot

JP

49.66

+0.79

Beasley

BBGI

15.70

+0.10

Journal Comm.

JRN

17.54

-0.04

Citadel CDL
12.82 +0.11

Radio One, Cl. A

ROIA

14.29

+0.06

Clear Channel

CCU

31.17

+0.17

Radio One, Cl. D

ROIAK

14.23

+0.12

Cox Radio

CXR

14.92

+0.15

Regent

RGCI

5.62

-0.06

Cumulus

CMLS

14.39

-0.12

Saga Commun.

SGA

16.95

-0.05

Disney

DIS

22.55

-0.25

Salem Comm.

SALM

25.32

-0.02

Emmis

EMMS

18.06

+0.43

Sirius Sat. Radio

SIRI

3.20

+0.18

Entercom

ETM

32.66

+0.24

Spanish Bcg.

SBSA

9.84

+0.40

Entravision

EVC

7.61

-0.01

Univision

UVN

31.61

+0.52

Fisher

FSCI

48.00

+0.78

Viacom, Cl. A

VIA

34.00

+0.78

Gaylord

GET

31.00

unch

Viacom, Cl. B

VIAb

33.56

+0.70

Hearst-Argyle

HTV

24.45

+0.35

Westwood One

WON

19.77

+0.23

Interep

IREP

1.08

+0.31

XM Sat. Radio

XMSR

31.02

+0.72

International Bcg.

IBCS

0.02

unch

-

-

-

-

-


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Bounceback

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Arbitrends

ArbitronMarket Results
| Charleston |
| Chattanooga |
| Columbia |
| Des Moines |
| Grand Rapids |
| Jacksonville |
| Johnson City |
| Lansing |
| Orlando |
| Tulsa |


Upped & Tapped

Premiere names new Marketing SVP
Premiere Radio Networks announced that Hosea Belcher has been appointed SVP/Marketing and Creative Services. He replaces Marty Raab who is leaving and will be announcing his plans shortly. Belcher comes to Premiere with 16 years of marketing experience in the entertainment industry, as well as in consumer packaged goods, most recently as SVP/Marketing for Artisan Entertainment.

Zeo Radio Networks ups affiliate relations director
Zeo Radio Networks announced the immediate promotion of Affiliate Relations Director Rico Garcia to the position of VP/Operations for the network, with responsibilities that include management of the company's programming and growth strategies, along with overseeing the company's production department.

New sales team
member at USRN
Peter Dakish joins the United Stations sales team with 15 years of expert sales experience with companies ranging from Campbell's Soup to Westwood One.

New director for Citadel
Kate Brown has been elected to the board of directors of Citadel Broadcasting, increasing the board to 10 members. Brown is Senior VP at Time Warner for mergers and acquisitions.


More News Headlines

International

Consolidation
crosses the pond

What's happening in Great Britain today is something like what we in the US experienced in 1996. Two of the biggest radio groups in the UK, GWR and Capital Radio, have announced an agreement to merge, creating a company valued at 1.3 billion dollars. The combined company will be by far the largest in UK radio, claiming 36% of the audience and 40% of the 1.2 billion dollar radio ad market. Even before the merger was officially confirmed, there was widespread speculation that the new radio giant could itself be a target for a buyout bid - - by Clear Channel International.


NAB Day Time Planner


The following brokers will be attending the NAB. Call or email to make your appointment in advance.

American Media Services,
Todd Fowler, Office 843-972-2200, Manchester Grand Hyatt, [email protected]

Cobb Corp.,
Denis LeClair [email protected]
Joel B. Day
[email protected]
Office 202-478-3737,
Manchester Grand Hyatt

Gordon Rice Associates,
Gordon Rice,
Office 843-884-3590,
Manchester Grand Hyatt,
[email protected]

Kozacko Media Services,
Dick Kozacko,
Office 607-733-7138,
Cell 607-738-1219,
Manchester Grand Hyatt, [email protected]

Patrick Communications,
Larry Patrick, Greg Guy
Office 410-740-0250,
Manchester Grand Hyatt, [email protected]




September Digital Magazine

Complimentary Report
One on One
PHD's
Patrick McNew
The man who controls
the Chrysler Group auto bucks

Quarterly Deals:
4.1 Billion spent on broadcast properties since the thaw
RBR/TVBR Observation:
Where is action? We got it.

Less is More
CCU's already meaning less with syndicators and nets.

Read RBR in 2 simple steps:
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RBR Radar 2004
Click on these issues for Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Arbitron, VNU sign marketing research deal; P&G to collaborate
A deal to jointly explore the possible development of a new, national marketing research service, using Arbitron's Portable People Meter (PPM), which collects multi-media and purchase info from a common sample of consumers. big advertiser is on board - - Procter & Gamble. RBR observation: One thing this deal is NOT is part of the PPM collaboration between Arbitron and Nielsen Media Research, even though the latter is owned by VNU. So don't go ballistic.
09/30/04 RBR #191

Analysts see Emmis guidance as soft
Reaction is coming in from Wall Street at Wachovia Securities, Jim Boyle says the company's guidance of 7.8% total revenue growth was below The Street's consensus of 8.3% and domestic radio growth guidance of 3.1% was 2.3 percentage points below Boyle's projection for the industry over the same time period. SG Cowen & Co. analyst James Marsh sees about the same. TV remains a solid performer, but it isn't enough to move the stock. 09/30/04 RBR #191


General Sales Manager
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