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Welcome to RBR's Daily Epaper
Volume 25, Issue 193, Jim Carnegie, Editor & Publisher
Thursday Morning October 2nd, 2008
RADIO NEWS ®
HipCricket

It's all about attitude and leadership
Russ Withers has been a station owner for a long time and while he's facing the same challenges as other broadcasters at his radio and television stations, he's not worried that the sky is falling. When RBR/TVBR spoke with him at the NAB Radio Show in Austin, Withers said he was keeping a positive attitude. After all, how can you lead if the people who are supposed to follow you think that you've given up?

RBR observation: Even if you are in a large market, the lesson is the same. You can't change what national advertisers do. Maybe your rep can. Maybe your corporate CEO can. But you can't. So focus on what you can do. Find creative ways to drive business to local advertisers with your broadcast signal, Internet site and whatever other tools you have. Click the headline for more and to see our NAB video interview with Withers.

Gaping hole in the digital receiver proposal
The "Radio All Digital Channel Receiver Act" introduced by Rep. Ed Markey (D-MA) makes room on digital receivers designed to be interoperable between newly merged satcasters XM and Sirius. But there's a catch. The receivers have to already include regular old analog terrestrial AM and FM. Here's the wording that would amend Section 303 of the Communications Act of 1934, contained in new subsection (z): "Require that apparatus shipped in interstate commerce or manufactured in the United States that is designed to receive signals broadcast in both the satellite digital audio radio service and the terrestrial AM or FM broadcast service be equipped with technology that is capable of receiving and playing digital radio signals as transmitted by terrestrial AM or FM stations." A Markey staffer confirmed that the requirement to provide for reception of digital AM-FM only applies if the receiver in question is already designed to receive analog AM-FM.

RBR observation: So if you're Mel Karmazin, how do you keep HD radio off of your digital interoperable satellite radio receiver? DUHHHHH. One of the FCC merger conditions was that third party manufacturers be allowed to build receivers with as many bells and whistles as they wish. But this bill, should it be passed, may inspire cost-conscious manufacturers to provide an MP3 port or some such thing and simply bypass terrestrial radio altogether. If the goal is to assure that all receivers have access to local broadcasting so they are a can tune into information sources during an emergency, there needs to be a terrestrial carriage requirement, digital AND analog, period.

www.rlradio.com

Jewel credits radio for breakthrough
We're not sure if Jewel is mainly a folk, country or pop act, but she says she'd be an unknown act were it not for radio. In fact, in her case, it rescued her from homelessness. She told NBC's Today Show, "I was homeless for about a year and I went back to singing, 'cause that's what I grew up doing with my dad as a child...after about a year of being homeless and doing that, a radio station played one of my songs on the air -- a bootleg. I didn't have any demos. I wasn't trying to get signed. But a record label heard it, and all the sudden it was like being Cinderella. Limousines started showing up." "Jewel joins a chorus of entertainers who recognize the value of radio airplay in boosting their careers," said NAB EVP Dennis Wharton. "That's a point that should not go unnoticed as RIAA wages its war against the number one promotional platform for musicians."

WorldSpace finances unresolved
September 25th passed without WorldSpace paying the $19.97 million plus interest due on its bridge loan notes. According to an SEC filing, the note holders have not agreed to a new forbearance agreement, but neither have they taken any action against the satellite radio company. Talks continue.
Company founder Noah Samara is still Chairman and CEO, at least for now. He had offered to step down if WorldSpace was not able to make the payment and the note holders asked him to resign his posts as Chairman and CEO, but remain as a director.

RBR observation: Can you imagine a worse time to be trying to restructure the debt of a company that has a long history of cash burn and is not even close to profitability? The note holders are in a quandary, though. Their choices are to help Samara keep WorldSpace running and find new capital or toss him overboard and bring in new management - and also have to find new capital. And then there's the extremely painful option of forcing the company into bankruptcy and probably having to write off the entire loan if no buyer is found and the company is simply liquidated.

wffoothill.com

ONLY ON RBR.COM

Viewpoints
New battles in the new frontier require new strategies

by Steve Passwaiter
What's more revealing to me is the developments in the online marketplace in local markets. For a very long time, all of us on the electronic side of the media ledger have found ourselves casting an evil eye at our main competitor: the local newspaper. I can remember sitting in meetings where our sales management went through the local paper ripping out ads for Clients that we believed should be spending more in radio and television spots. When the internet came along, our focus once again centered on the local daily as the main competitor for these "new media" dollars. While newspaper websites continue to take large shares of digital dollars in local markets, a new and perhaps more formidable competitor has/is/or will be staffing up in your town: the pure play internet firm. More at RBR.com

Ideas Working Now
Fear is overrated
By Chuck Francis
Perhaps one of the most famous quotes regarding the subject of fear is the one that was delivered by Franklin D. Roosevelt: "The only thing we have to fear is fear itself..." We've heard that phrase so many times that it now floats in one ear and out the other. But if you take a moment to actually reflect on the phrase, it's amazing how powerful that statement truly is... powerful because of the truth behind it... in almost every situation we encounter throughout our lives and careers.


AD BUSINESS REPORT
TracyLocke, LatinWorks launch branding effort for Texas Lottery
TracyLocke and LatinWorks have launched a new branding campaign this week for client Texas Lottery Commission, featuring a brand platform that will extend across the next 12 months and campaign elements that include television, radio, out-of-home, point-of-sale, online, print, and sponsorships and promotions with street teams. While TracyLocke developed and managed the general market strategy and advertising development, the agency partnered with LatinWorks, Austin, for development of ethnic advertising.
www.dial-global.com

MEDIA MARKETS & MONEY
Hutton rents to buy in Santa Fe
Hutton Broadcasting already has an AM and four FMs in the Santa Fe NM market. It is now announcing a deal with American General Media which will put it in charge of another AM station with a formal acquisition to come later this year or sometime in 2009. The station is KTRC-AM, which brings Air America hosts to the market. Managing Partner/GM Scott Hutton said they'll be looking for local talent to add to the lineup. Hutton's other stations include KVSF-AM, KBAC-FM, KBLU-FM, KVSF-FM & KQBA-FM.
 

TRANSACTIONS

$280K WJEP-AM Ochlocknee GA from Lifeline Ministries Inc. (Horton Friggin) to Doreen A. Blood dba Georgia Triangle Broadcasting. $14K earnest money, balance in cash at closing. LMA until closing. [FCC file date 9/2/08]

$50K WQLS-AM Dothan AL (Ozark AL) from Horizon Broadcasting Company (Wayne North) to Hughey Communications Inc. (Randall Hughey, Debra Hughey). Cash. [FCC file date 9/2/08]

 

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www.goviero.com

WASHINGTON BUSINESS REPORT
Webcaster Settlement Act headed for White House
Negotiations between web streamers and SoundExchange will be allowed to continue, as the Senate seconded the House on a bill to extend the deadline until 2/15/09. Tim Westergren, honcho of internet service Pandora has been in the forefront of the issue, and thinks a resolution satisfactory to all parties is close. SoundExchange's John Simson isn't quite as optimistic, noting that the two sides have been close before, but also indicated his organization was hopeful that a satisfactory arrangement is at hand. The National Association of Broadcasters also signaled its support. EVP Dennis Wharton (pictured) said, "With this legislation now headed to the White House for President Bush's signature, NAB looks forward to sitting down quickly with SoundExchange to craft equitable streaming rates that enhance the online music experience and expose more artists to our listeners."

RBR observation: If the involved parties in these negotiations fail, we could have quite a media party in February, as the plug is pulled on internet audio and analog television in the space of four days.
 

RATINGS & RESEARCH
Breaking down fans in Sports towns
Did you know that Columbus, OH is the Number One Sports Town in the U.S.? The analysis aggregated the avid fans* of the 29 sports measured by Scarborough Sports Marketing--including the major leagues, motor sports, college sports, minor leagues, the Olympics and more. Two-thirds (66%) of adults in Columbus are avid sports fans*. Boston, Buffalo and Pittsburgh round-out the top markets.

RBR observation: So how do you use this sports research to your advantage? First see where your city is and then the key for every station is merchandising tie-ins. We are now in football season and whether it is pro or college, the tie-in merchandising with advertising works especially when you bring in programming and promotions.

Consumers list top 50 online retailers
Online retail may be a bright spot in this year's retail landscape, but learning which websites customers prefer over others can be an interesting challenge. To understand which websites really catch consumers' attention, STORES magazine and BIGresearch have compiled their annual Favorite 50 list, which ranks customers' favorite online retail companies. The list is published in the October edition of STORES magazine. Once a start-up internet book store, Amazon.com has grown to become the world's largest online retailer and consumers' favorite for the second year in a row.

www.themediaaudit.com

INTERNET BUSINESS REPORT
Sprint launches WiMax network in Baltimore
The AP reports Sprint Nextel opened its new wireless network to customers in Baltimore on Monday, offering Internet service for laptops for $45 per month. It's the first commercial network in the U.S. to use so-called WiMax technology for mobile customers. "Sprint's network carries the "Xohm" brand and provides download speeds of 2 to 4 megabits per second, slightly more than twice as fast as the current cellular broadband networks of Sprint, Verizon Wireless, T-Mobile USA and AT&T Inc.," said the story.
 

RADIO STOCKS
Calm returns to Wall Street
With the Senate voting last evening on the revised financial bailout bill, many stock traders stayed on the sidelines yesterday. Activity was not as frenzied as the week's previous two sessions and the Dow Industrials ended the day down 20 points, or 0.2%, at 10,831.

Radio stocks were lower. The RBR Radio Index fell 1.294, or 2.3%, to 53.915. There was still volatility in the sector. Westwood One plunged 31% and SBS dropped 21%. Beasley, however, shot up 24.3%.

Here's how stocks fared on Wednesday

Company
Symbol
Close
Chng
Company
Symbol
Close
Chng

Arbitron*

ARB

43.89

-0.80

Fisher

FSCI

38.25

-1.15

Beasley*

BBGI

2.10

+0.41

Google

GOOG

411.72

+11.20

CBS CI. B
CBS

14.43

-0.15

Hearst-Argyle

HTV

21.80

-0.46

CBS CI. A
CBSa

14.37

-0.26

Journal Comm.

JRN

4.74

-0.14

Citadel*
CDL
0.71
-0.07

Lincoln Natl.

LNC

41.21

-1.60

CC Media

CCMO

13.25

-0.35

Radio One, Cl. A

ROIA

1.42

+0.01

Cox Radio*

CXR

10.59

+0.03

Radio One, Cl. D*

ROIAK

0.82

+0.07

Cumulus*

CMLS

4.24

-0.02

Regent*

RGCI

0.88

0.00

Debut Bcg.

DBTB

0.20

0.00

Saga Commun.*

SGA

5.70

0.00

Disney

DIS

30.68

-0.01

Salem Comm.*

SALM

1.18

-0.07

Emmis*

EMMS

0.98

+0.01

Sirius XM

SIRI

0.65

+0.08

Entercom*

ETM

5.20

+0.18

Spanish Bcg.*

SBSA

0.30

-0.08

Entravision

EVC

2.60

-0.09

Westwood One*

WON

0.38

-0.17

*Component of the RBR Radio Index
www.oasispreview.com
Bouncebacks

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Below the Fold

Only on RBR.com
New battles in the new frontier require new strategies

Time for a pure play internet firm

Media, Markets & Money
Hutton rents to
buy in Santa Fe

Already has an AM and 4 FMs

Washington
Business Report

Webcaster Settlement Act

Headed for White House

Ratings & Research
Breaking down fans

In Sports towns &Columbus is
Number 1 Sports

www.cavellmertz.com


www.patcomm.com

Media Moves

Krampf jumps to CBS
Ed Krampf has been named Sr. Vice President/Market Manager for CBS Radio in Tampa. He was previously Sr. VP/Western Region for Clear Channel Radio.

Motor City promotion
Mark Pennington has been promoted to Program Director at Greater Media's WRIF-FM Detroit. He was previously Music Director. Pennington succeeds Doug Podell, who was recently promoted to Director of Rock Programming for both WRIF and WCSX-FM in the Detroit cluster.

Memphis
Market Manager

That triple M title goes to Michael Oppenheimer, who is now managing the six-station cluster that Clear Channel Radio has in Memphis. He was previously CC Radio's Market Manager in Tulsa. Oppenheimer succeeds Tim Davies, who recently left the post to join Radio One in Atlanta.

EMF Change
Dick Jenkins, who founded EMF Broadcasting two decades ago, has stepped down as CEO of the religious non-profit radio giant. He leaves the organization under the management of Mike Novak, who was promoted to President a year ago.

Cox reorganized
Cox Enterprises announced that Tim Hughes will retire at the end of this year as Exec. VP of Administration. He will not be replaced at HQ, but his duties will be reassigned to other Cox executives. Cox Enterprises is the parent company of Cox Radio, Cox Television, Cox Communications, Cox Newspapers and several other businesses.


www.eastlanratings.com

More News Headlines

Cause-related marketing can exponentially increase sales
As the term "cause-related marketing" reaches its 25th anniversary and a sea of pink ribbons washes over the U.S. this month, a new consumer behavior study confirms that cause-related marketing can exponentially increase sales, in one case as much as 74%, resulting in millions of dollars in potential revenue for brands. The 2008 Cone/Duke University Behavioral Cause Study, released today by Cone and Duke University's Fuqua School of Business, validates for the first time that cause-related marketing can significantly drive actual consumer choice.


Media Links
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Radars
News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Media buyers
weigh in for PPM

Two of the filings - mailed in, rather than filed electronically - came from media buying firms who made it clear that they are strongly in favor of the PPM rollout and against any further delay.
10/01/08 RBR #192

Arbitron rejects
call to delay PPM

We don't recall that Obama has had much to say about radio issues in the past, while Durbin has long been deeply involved in issues affecting broadcasting. It is interesting that the Obama-Durbin letter makes no mention of the FCC and its pending proceeding on whether it has authority to investigate PPM and, if so, whether it should do so.
10/01/08 RBR #192

PPM measurement
of Internet radio

In order to be eligible for measurement, stations have to be encoding the stream for their measurement standards which include certain sample and bit rates. According to this report, 395 AM/FM streaming stations were ready for reporting. Of those, 11 made the .495 weekly Cume Rating minimum reporting requirements. So what does this mean?
10/01/08 RBR #192

NAB applauds
Markey HD bill

It was amazing enough that both the DOJ and the FCC allowed XM and Sirius to become a government-sanctioned monopoly, even though the pair had flaunted many conditions of their licenses, including - amazingly -- the failure to provide interoperable receivers so they could effectively compete with one another as intended, and of course even more amazingly, the condition that they never ever be allowed to merge.
09/30/08 RBR #191

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and more...see and bookmark www.RBR.com

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