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Welcome to RBR's Daily Epaper
Volume 22, Issue 193, Jim Carnegie, Editor & Publisher
Monday Morning October 3rd, 2005

Radio News®

View Image Full SizeRBR Poll result
Convention Needs
or Melt Down
The RBR staff and attendees returned from NAB 2005 Philly with mixed emotions and questions on the future and direction of the radio business. RBR reported on the three day event with overview in 09/26/05 RBR #188 . In short - No time to either sing praise or be critical but the time is now to think the balance of the decade. Each of us in radio is facing the same problem no matter the size of market, our individual businesses as the issues are mirrored. 'How do we compete?' 'How and where can we gather to Communicate and Share Ideas?' RBR does not claim the poll to be statically accurate only the RBR readers responded with their observations by voting. It is obvious a pure radio convention is needed but an NAB-RAB joined effort would be logical. Unfortunately not in 2006 as RAB now locked in its new location Dallas and the NAB-R&R is also engaged. NAB members can voice their ideas to their board members since you elected them.

Rehr-ing to go?
Advertising, particularly as it relates to the beer industry, has been a prime area of concern for National Beer Wholesalers Association President David Rehr, as RBR reported first last Thursday 09/29/05 RBR #191, is widely expected to take over the office of Eddie Fritts at the National Association of Broadcasters. This is at least one area of overlapping concern from between the two associations, and Rehr's position at NBWA should dovetail easily with that commonly held by broadcasters - - that advertising is a form of free speech and should be under as little restriction as possible. There may be an overlap in the approach which each association must take - - both products, beer and broadcast programming, are fully integrated into the fabric of American society, and yet at just about all times are under attack by one segment of that society for various reasons. Rehr should have a great deal of experience reinforcing the positive aspects - - and minimizing the negative aspects - - of a sometimes controversial product. Another issue upon which NBWA took a stand was the McCain-Feingold Bipartisan Campaign Reform Act - - NBWA was strongly opposed on grounds that its own free speech was being compromised. NAB has pretty much stayed on the sidelines as far as the surviving aspects of BCRA go, but fought tooth and nail to make sure that free airtime was not a part of the final BCRA package.

RBR observation: Broadcasters key inside edge as one result of BCRA is that Rehr spent much of the 2003 Republican National Convention holding parties and tapping kegs for one group of convention attendees or another, according the USA Today. He complained that there was little else he could do with his "soft" money. Rehr's ties to the Republican Party are indeed extensive, and the roots run deep. According to New Republic, he was very much involved in the Tom Delay (R-TX) strategy to fill Washington's unofficial Lobbyist Row, otherwise known as K Street, with Republicans, and further achieved Pioneer status with the campaign of George W. Bush for bringing in 100K in contributions. For NAB an entirely red president could pose a problem - - red can be good for issues on the business side of the equation, but the blue, or Democratic side, is often necessary to when other issues, like free speech and reasonable indecency standards are on the table. And every vote on Capitol Hill is critical when it's industry v. industry time, or to put a fine point on it, NAB v. NCTA. Red? Blue? Forget them both. If Rehr takes the NAB gig, he may have to learn to play it considerably more Purple than perhaps he's had to up until now.

Arbitron diarykeepers remind radio of its power
Diary comments from Hurricane Katrina markets underscore the necessity of radio during a storm and, more importantly, when there is no power. As Americans throughout the Gulf region are putting their lives together following the ravages of Hurricane Katrina, it is apparent that residents throughout the region depended on the radio to stay informed about the storm. In a special examination of Arbitron Radio listening diaries that were kept during the week that Katrina hit the Gulf Coast, many listeners made it a point to acknowledge the hard work of local radio stations in the "comments" section of the diary. Others noted long listening spans with remarks such as "hurricane coverage." Katrina's power was such that the Summer '05 and Fall '05 Arbitron surveys for New Orleans and the Fall '05 Arbitron survey for Biloxi-Gulfport-Pascagoula will not be published. Katrina struck the Gulf Coast during the ninth week of the Summer survey; the comments listed below are from Week 9 diaries from Baton Rouge, Birmingham and Mobile radio markets.

RBR observation: Interesting sales and marketing edge for radio locally the next time you hear the complaint that radio does not work is to print the comments out and show a local advertiser and let them read for themselves. RBR recommendation for radio to get these comments tallied and circulated out to the total radio business now.
| Read more here |

Univision bolsters Fresno cluster
There will be one less television/radio cross-operator in Fresno after Pappas Telecasting seals the deal sending KVBE-FM to Hispanic giant Univision. Both have a pair of full-power television stations in the market. The buyer will go from two to three FMs, while the seller goes from one to none. The pricetag, according to brokers from Kalil & Company, is 10M. Univision will take over the station immediately in an LMA pending FCC approval and closing. In addition to its two Hispanic-formatted FMs, Univision has a pair of full power television stations broadcasting its Univision and Telefutura networks, with the latter supplemented by a low power TV also carrying Telefutura, according to BIAfn. Pappas remains in the market with its own full-power televison stations, carrying Fox and WB. Univision says it's aware of and will pounce on the cross-promotional possibilities present in the market. "We are thrilled to expand our presence in Fresno, a vibrant city with a thriving Hispanic population, with our purchase of KVBE," said Gary Stone, UNivision Radio COO. "This acquisition provides our listeners with an additional format offering of our cutting-edge programming and popular talent, again making Univision Radio their source for the most important information and best entertainment on the radio. In addition, we look forward to working with the Univision and TeleFutura television stations in Fresno on cross-promotional and community initiatives."

Bill Bennett comment
draws condemnation

On the Wednesday edition of his radio show, "Bill Bennett's Morning in America," syndicated by Salem Radio Network, a caller raised the theory that Social Security is in danger of becoming insolvent because legalized abortion has reduced the number of tax-paying citizens. Bennett said economic arguments should never be employed in discussions of moral issues. If it were your sole purpose to reduce crime, Bennett said, "You could abort every black baby in this country, and your crime rate would go down. That would be an impossible, ridiculous and morally reprehensible thing to do, but your crime rate would go down." The former secretary of education for President Ronald Reagan drew ire from many groups: "Republicans, Democrats and all Americans of good will should denounce this statement, should distance themselves from Mr. Bennett," said Rep. Jesse Jackson, Jr., D-Ill. "And the private sector should not support Mr. Bennett's radio show or his comments on the air." "I'm not even going to comment on something that disgusting," said Sen. Patrick Leahy, D-Vt. "Really, I'm thinking of my black grandchild and I'm going to hold (off)." One Hundred Black Men, Inc. President Luther R. Gatling also issued a statement, and Rep. John Conyers went further, writing to Salem Communications about the matter.
| Read statements here |

NABOB, DaimlerChrysler plant ownership seeds
The National Association of Black-Owned Broadcasters has teamed with DaimlerChrysler in a unique program designed to increase the ranks of minority broadcast owners. The pair has kicked in 50K dollars in seed money to "...put minorities on the track to broadcast media ownership." Two candidates have selected, and both will undergo a two-year program in which they will be "...learning the laws governing U.S. airwaves; learning the requirements of financial institutions for funding and understanding the nuances of running a media operation from on-air personalities to signal coverage to hiring engineers and training advertising sales staff." The first recipients of the fellowships are Alexis Snipe-Campbell and Bartt Horton. Snipe-Campbell, an 11-year veteran of the radio industry, is currently a radio sales rep at Glory Communications in Columbia SC. Horton, who is currently working as a consultant, is a one-time Station Manager for WBOT-FM/WILD-AM in Boston.

RBR observation: It's one thing to call for more minority ownership. It's another to put your money where your mouth is and actually do something about it. DaimlerChrylser is to be commended for teaming with NABOB to take affirmative action rather than just say it.


Wrigley taps BBDO for Life Savers
Wrigley announced it has awarded assignments for two of the newest brands in the Wrigley confectionery portfolio -- Life Savers and Creme Savers -- to BBDO Chicago. Advertising for both brands was previously handled by Foote, Cone & Belding, NY. Wrigley acquired Life Savers and Creme Savers from Kraft Foods in June, seeing significant potential for these brands under Wrigley's confectionery expertise. Shortly after the acquisition, Wrigley asked two of its long-standing strategic partners, BBDO and Leo Burnett, to participate in a review for the assignment. Both agencies handle brand assignments for the company in the U.S. and abroad.

Ogilvy and Hershey part ways
Ogilvy & Mather New York announced it is resigning the Hershey account after 35 years. The move relates to an emerging conflict with Hershey and other Ogilvy clients, possibly Kraft. Ogilvy has had responsibility for the Hershey Kisses and Reese's Peanut Butter Cup brands. "We have had a long and successful partnership with Hershey and have helped build some of their strongest and biggest brands. We are proud of our work, the longevity of our relationship and wish Hershey all the success in the marketplace," said Bill Gray, co-CEO of Ogilvy North America. Many of the account responsibilities will move to Arnold Worldwide, NY. Arnold will now handle communications programs for core chocolate brands including Hershey's, Hershey's Kisses and Reese's. Existing partner North Castle Communications will handle duties for refreshment and sugar confectionery brands, including Ice Breakers, Twizzlers and Jolly Ranchers. Hershey spent 136 million in advertising last year. Buying via OMD will remain unchanged.

TBWA Worldwide names Robert LePlae
as President TBWA\North America

TBWA Worldwide has appointed Robert LePlae, currently President and CEO TBWA\California, as President, TBWA\North America. LePlae, 45, will continue to report to Jean-Marie Dru, President & CEO of TBWA Worldwide, and will oversee TBWA's operations in North America including TBWA\Chiat\Day and TEQUILA offices in New York, Los Angeles, and San Francisco. LePlae will also oversee the management of the New York office and will become a member of TBWA's Executive Committee. Robert joined TBWA\Chiat\Day\LA in May 1998, as Managing Director with the assignment of moving the agency's Nissan account to the next level. In July '99, he assumed additional duties overseeing the Infiniti brand, as well as regional marketing for both divisions. In January 2000, Robert relocated to Tokyo as President and CEO of G1\Worldwide, where he had global authority for the Nissan brand. Robert returned to TBWA\Chiat\Day Los Angeles as President and CEO in 2001.

Media Business Report
Local Sales Edge
Top Ten searches in Yellow Pages
Restaurants, physicians, automobiles and lawyers are among the Top Ten categories searched by Americans when accessing the print and online Yellow Pages, according to research announced today by the Yellow Pages Association. The 2005 Yellow Pages Industry Usage Study, conducted by Knowledge Networks/SRI, reveals the top-referenced Yellow Pages headings in print, and for the first time ever, in Internet Yellow Pages. The 10 most frequently referenced print Yellow Pages headings are: 1) Restaurants, 2) Physicians-Surgeons, 3) Automobile Parts, 4) Automobile Repairing-Service, 5) Pizza, 6) Attorneys-Lawyers, 7) Automobile Dealers, 8) Dentists, 9) Hospitals and 10) Beauty Salons. For Internet Yellow Pages, the 10 most frequently referenced headings are: 1) Restaurants, 2) Hotels, 3) Physicians-Surgeons, 4) Automobile Dealers, 5) Florists, 6) Automobile Repairing-Service, 7) Automobile Parts-Supplies, 8) Schools, 9) Attorneys-Lawyers and 10) Insurance.

MBR observation: OK here is your local sales edge - If you were looking for local ad sales leads and did not know where to start the Yellow Pages Association just did the work for you so now use their findings against them. Gather your data or a marketing presentation and then get the client on your website. Always mention in the spot where to find out more about the advertiser, such as your stations website, used properly it brings the consumer in to get the information they want and need. Along with just your local numbers and ranking data quality data is important here also plus data if you have a counter on your website on people that are visiting your stations website. Internet research will be vital to your future as will quality research data. Yellow Pages Assoc. just gave you a little head start and RBR giving you a little edge by printing it.

Media Markets & MoneyTM
Close encounter in East Tennessee
Paul Fink's East Tennessee Radio Group has taken possession of WMTN-AM/WMXK-FM from seller Horne Radio LLC. According to American Media Services broker Todd W. Fowler, consideration for the station amounted to 1.1M. The stations are licensed to Morristown in the eastern portion of the state, though not so far east that they are a factor in the Johnson City-Bristol-Kingsport Arbitron market.

Washington Beat
FCC/EEO's fickle finger of fate strikes again
The FCC computer or dart board, or whatever it is they use to make random selections, has done its thing, and letters are in the mail to the lucky stations that get to participate in the next round of EEO audits. One out of every 20 stations and MVPD operators joins this group every year. Outreach is the name of the game, and accurate documentation of this outreach is the key to avoiding a fine. Whatever you do, make sure it is easily found in your public file. Otherwise, you may find yourself following the example of the Emmis Honolulu television stations, helping to defray the national debt by writing out a check at the behest of the FCC.

JRN to offer "Original Adult Hits" format
The original Adult Hits format famous for "playing whatever we want" is now available through Jones Radio Networks (JRN). The format has been made available for global distribution through a joint agreement with JRN and Mike Anthony of ResearchWorks. Beginning immediately, JRN will create and market to stations a fully produced and locally integrated broadcast of the Adult Hits "playing whatever we want" programming in a simple plug-and-play package. "Adult Hits has quickly become the most imitated radio format across the United States and Canada," said Ken Moultrie, senior director of programming for JRN. "Combining the resources of JRN and the track record of ResearchWorks with this proven format makes it easy for stations to get on the air quickly with the original 'whatever' brand for radio."

Monday Morning Makers & Shakers

Transactions: 8/22/05-8/26/05
The Emmis-LIN sale by itself would have made this the biggest trading week of the year thus far, and it was amplified by the Emmis-Gray transaction. A pretty good radio week almost pushed to total to a half billion. There were four TV deals all told. One was for one of those difficult-to-find stations outside all Nielsen DMAs. That's what happens when you build your TV station in Guam.



Total Deals







| Complete Charts |
Radio Transactions of the Week
Riviera in the desert
| More...
TV Transactions of the Week
Emmis sell-off begins
| More...

260M WALA-TV & WBPG-TV Mobile AL-Pensacola FL (Mobile, Gulf Shores AL); KRQE-TV, KBIM-TV & KREZ-TV Albuquerque-Santa Fe NM (Albuquerque, Roswell NM, Durango CO); WLUK-TV Green Bay-Appleton WI (Green Bay WI); and WTHI-TV Terre Haute IN from Emmis Television License LLC, a subsidiary of Emmis Communications Corp. (Jeff Smulyan) to LIN Television Corp. (Gary R. Chapman). 18.75M escrow, balance in cash at closing. Existing duopoly in Mobile-Pensacola. WALA is a Fox affiliate on Channel 10; WBPG is WB affiliate on Channel 55; KRQE is CBS affiliate on Channel 13; KBIM is CBS affiliate on Channel 10; KREZ is CBS affiliate on Channel 6; WLUK is Fox affiliate on Channel 11; WTHI is CBS/UPN affiliate on Channel 10. [File date 8/26/05.]

1.9M KCKN-AM Kansas City (Kansas City KS) from KCKN LLC (Michael O'Shea) to Davidson Media Station KCKN Licensee LLC, a subsidiary of Davidson Media Group LLC (Peter Davidson). 95K escrow, balance in cash at closing. Duopoly with KCZZ-AM Mission KS. [File date 8/26/05.]

750K WSEZ-AM/WUME-FM Paoli IN from Indiana Patoka Development Corporationp (William K. Reynolds) to Diamond Shores Broadcasting LLC (Blair W. Trask, Kelly O. Trask). Cash. [File date 8/26/05.]

Stock Talk
Nickel and Diming on Wall Street
Heavy oil-users benefited at both the pump and on Wall Street Friday following a drop in the price of a barrel of crude. Unfortunately, the only way crude figures into a broadcaster's bottom line is when it is referring to the language of wayward on-air talent, and the financial repercussion is generally the FCC hit if the language went too far over the line. Most broadcast issues stayed close to home, going up or down within the parameters of a dime or so.

Radio Stocks

Here's how stocks fared on Friday

Company Symbol Close Change Company Symbol Close Change













Journal Comm.




Citadel CDL
13.73 +0.13

Radio One, Cl. A




Clear Channel




Radio One, Cl. D




Cox Radio












Saga Commun.








Salem Comm.








Sirius Sat. Radio








Spanish Bcg.
















Viacom, Cl. A








Viacom, Cl. B








Westwood One








XM Sat. Radio




International Bcg.










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More News Headlines


Broadcast delivered
96 of top 100 programs
last week

In the first week of the broadcast season, which ended Sunday, Sept. 25, broadcast delivered 96 of the top 100 primetime programs in A18-49 and A25-54, and 95 out of 100 in households. Broadcast stations also outdrew local wired-cable MSOs in all seven LPM markets last week. Based on household ratings, "Desperate Housewives" on ABC took first place for the week, with a 17.34 HH rating, "CSI" was a close second with a 17.27 rating, and "Lost" was third with a 13.83 HH rating. Ad-supported subscription TV's highest ranking program was a match-up between The New York Giants and San Diego Chargers on ESPN's "NFL Regular Season," which delivered a 6.53 HH rating and finished in 34th place. TVB has adopted the term "subscription TV" for the video formerly known as cable programming. It will use the term "local wired-cable" in referring to MSOs.
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RBR Radar 2005
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

RBR First
Cox Radio has a dog in the HD Hunt

In the process of soliciting help for HD ID effort as Dick Ferguson, Cox Radio EVP, is spearheading the Cox project and is asking for help in putting together a research project to help identity the best way to go about labeling HD Radio side channels, as well as organizing a possible push (as we've reported) to get an expanded FM band for those side channels, instead of jeopardizing existing audio quality sharing with the main signal.
RBR observation: Some feathers were ruffled simply because RBR has a copy of the email and all the attachments to this report this morning which we highly recommend you print out and read as to gain knowledge of what is being kicked around on the HD level. RBR stands on the bases that information which is requesting broadcasters to think, ask for input, and possibly participate in should be shared by all and not just a select few. The radio medium has one shot at making HD work and it best be discussed with all and agreed on by all before you ask anyone to adopt a standard. RBR will establish an HD Bounce Back column send your thoughts and questions to [email protected] and Share in the Voice. 09/30/05 RBR #192

PPM ratings link Reality TV viewing and Morning radio listening
Arbitron released an analysis of the television and radio audience in Houston that details the link between viewers of reality TV shows to the morning radio shows they listen to the day after. Radio morning show personalities almost always talk about programs that aired on TV the night before. Reality TV shows, which feature unscripted outcomes or audience participation, are especially chat worthy for radio show hosts the morning after. View the details 09/30/05 RBR #192

Americans watch TV at record levels
Nielsen Media Research reported the average American home watched more television the past TV season vs. any previous season. During the 2004-05 TV season (which started September 20, 2004 and just ended September 18, 2005), the average household in the U.S. tuned into television an average of 8 hours and 11 minutes per day. This is 2.7% higher than the previous season, 12.5% higher than 10 years ago, and the highest levels ever reported since television viewing was first measured by Nielsen Media Research in the 1950's. During the Sept 2004-Sept 2005 season, the average person watched television 4 hours and 32 minutes each day, the highest level in 15 years. Good news so view and print the charts.
09/30/05 TVBR #192

RBR First
White Smoke at NAB, well, sort of
Confirmed - the committee's unanimous choice is David Rehr who currently is President of the National Beer Wholesalers Association. Yes, Rehr is the unofficial named successor to President & CEO Eddie Fritts. RBR has confirmed that Rehr has a contract and the committee is anticipating to make an announcement once the contract is approved by Rehr's lawyers and his signature on dotted line.
RBR observation: Trust we see White Smoke soon and for the better - give the guy a chance. Then watch and see who he surrounds himself with as this will point the course to the building of his structure of NAB. Just have to watch for the White Smoke.
09/29/05 RBR #191

Indecent descent?
Complaints way down
We thought indecency complaints were down in Q1 2005 over the final three months of 2004, over which time the total number received by the FCC was halved. Turns out that was nothing. RBR observation: FCC Enforcement Bureau's Kris Monteith said that numerous indecency decisions have made it most of the way through the pipeline and were almost ready to be released. It will be interesting to see how far back they go datewise. Otherwise, it would appear there is a major chill in the air, with broadcasters staying well clear of the gray area between the acceptable and the indecent. Also, look for the number of accessibility complaints to go up in Q3, and particularly in September, in response to problems getting emergency information to variously-challenged citizens during this particularly active hurricane season.
09/29/05 RBR #191

XM Satellite Radio surpasses
5 million subscribers

surpassed 5 million subscribers, increasing its lead as the nation's number-one satellite radio company. XM says they are on track to have more than six million subscribers by the end of this year.
RBR observation: RBR has been warning for years that churn-subscriber turnover-is the threat that should be of most concern to shareholders of XM and Sirius. Management at both companies report that their churn rates remain "low" at 1.4% or 1.5% per month. Never mind that that works out to 16.8-18%, which is well above the 15% annual rate that both companies projected would be their churn rate when their business is mature-something that's still several years away. While 17-18% churn looks worrisome to us for these early stage companies, XM for the first time disclosed a number that should really frighten investors. It proudly declared that six out of 10 people who buy new cars with XM receivers installed are continuing to buy the service once the trial period built into the sticker price expires. That's a 40% churn rate for OEM sales!
09/28/05 RBR #190

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