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Howard Stern moving to Sirius in 2006
As he's been vowing since the FCC crackdown on indecency, Howard Stern, the "King of All Media" is moving to satellite radio--Sirius--beginning 1/1/06. The five-year contract signed two days ago has him program three channels--two basic, one premium--after his Infinity deal expires. The Sirius deal expires 12/31/10. In an 8-K filing, Sirius estimates that Stern only would need to generate approximately one million incremental subscribers in order to cover the costs of the deal. Aggregate fixed obligations under the deal are 100 million per year. These costs include production and operating costs for the show, including compensation of show cast and staff, overhead, construction costs for a dedicated studio, a budget for the development of additional programming and marketing concepts, and payments to Stern and his agent Don Buchwald Associates. "It has been my dream to have the top-rated show in radio since I was five years old," said Stern. "Sirius - the future of radio - will take this dream to a whole new level as I bring my fans my show my way. It will be the best radio they will ever hear." Stern brings Infinity 175 million in annual ad revenue and 27 million in profits, syndicated on 45 affiliates. Infinity issued the following statement: "We at Infinity have enjoyed our years with Howard. We wish him well in his new foray into the world of pay subscription radio, beginning in 2006." Shares of Sirius shot up nearly 18% on the news.

RBR observation: This is a shot in the arm for both satellite firms. Stern is the first big national talent to cross over the air waves. At this point it is it doesn't matter if Sirius stock moves the key is having the talent and content with the potential for all the cult listeners of Stern to follow with the purchase of satellite radio. Like in real-estate it only takes that right one to walk through the door and say sold. Stern is the first part of the issue of here comes da satellite. The next factor is seeing who and or what Infinity and affilates will follow with when Stern is off the air. Bets are now being placed on: Will Infinity pull Stern immediately or leave him on the air to pump his move? This is not going to be an easy replacement.

Judge rules Rush's medical records were properly seized
Rush Limbaugh's medical records were properly seized by investigators seeking information on alleged illegal drug use, an appeals court ruled Wednesday. State investigators had raided the offices of Limbaugh's doctors seeking info on whether he illegally tried to buy prescription painkillers. Limbaugh still hasn't been charged with a crime and the investigation had been put on hold pending this decision. | More... |

Compromise reached: Indecency fines to 500K
Sen. John Ensign (R-NV) was able to get senators and representatives working on the DoD authorization bill to agree to a new FCC indecency fine cap of 500K dollars. He had attempted to get the matter our of the DoD bill entirely, but changed his tune when other items tied to the indecency measure were stripped out. The compromise measure, which received a stamp of approval from the bill's Senate shepherd, Sam Brownback (R-KS), and members of the House Committee on Energy and Commerce, also allows fines against individual performers, sets a timeline for FCC action on indecency complaints, mandates an annual FCC report to Congress on the matter, and urges the National Association of Broadcasters to adopt program standards. "This is a necessary response to the ever-increasing amount of indecent material over the airwaves to which our children are subjected," said Ensign. "We need a new era of responsibility from broadcasters and performers alike." He added, "Parents should be able to watch primetime television and events like the Super Bowl without fear that their children will be subjected to indecent material." The measure still needs approval from each house of Congress.

RBR observation: Members of the Senate voted nearly unanimously this summer not only to up the indecency fines, but to attack gratuitous broadcast violence and repudiate the 6/2/03 FCC ownership ruling. These last two items figured to hit some speed bumps in conference. But now senators such as Ensign can have it both ways - - they've come down against excessive media ownership concentration and have a vote to prove it if they so desire, while not doing anything at all to thwart excessive media ownership concentration. The phrase "double-edged sword" is supposed to mean thawt you may as easily be harmed as inflict harm with your own double-edge. In this case, however, it means that most senators can be pro- or anti-consolidation as it fits their needs. A double-edged sword, indeed.

Scott Studios sells to dMarc Broadcasting
Like Jay Leno letting Conan take over "The Tonight Show" in 2009, Dave Scott-founder and CEO of Scott Studios-announces his retirement in three years. His Scott Studios Corp., Computer Concepts Corp. and Scott Concepts Corp. have been sold to dMarc Broadcasting of Newport Beach, CA (Parent is dMarc Networks). Dave Scott remains President. For the rest of his tenure, he promises no operational changes in products supported, employees or location/phone numbers of Kansas and Dallas offices. dMarc Broadcasting is a newly formed technology and media company providing market-leading digital solutions and media services to the broadcast industry. | More... |

Campaign ad watch
More cash is going into Campaign 2004. Here's a look at a few more examples. Focus on the Family is launching a major campaign urging Hispanics to take the values with them into the voting booth. A multi-pronged ad campaign will use radio, TV, print and the Internet. The organization says it already has a Spanish-language program which is carried on about a third of US Hispanic-formatted radio stations. A new 527 called Americans for Coal Jobs Voter Fund is taking to the airwaves in Pennsylvania, Ohio and West Virginia with an ad flight critical of John Kerry, pointing out his pro-environmental voting record has hurt the coal industry. The National Taxpayers Union Foundation is running a four-part radio series in Alaska focusing on tax issues and their effects on residents of the state. It's started already in Anchorage and Fairbanks, and will hit most rural areas of the state as well. But don't get too excited - - the total ad budget is said to be 25K dollars.

Adbiz ©

Captain D's radio campaign
named best in industry
Captain D's Seafood Restaurants announced that it has been awarded a 2004 Excellence in Radio Advertising Award from the restaurant industry's weekly news publication, Nation's Restaurant News. This is the only award that specifically recognizes advertising excellence in the restaurant industry. The 580-unit chain won "Best Radio Campaign" in the over 500 million sales category for its "Louise" radio spots. Captain D's SVP/Marketing, Charles Bruce, picked up the award 10/4 in front of 800 restaurant industry leaders at the Multi-Unit Food Service Operators show in LA. "We are very pleased to have our radio spots be recognized as some of the best work from 2004 in front of the restaurant industry," says Bruce. "Not only was the Louise campaign funny and memorable, but it was also effective as it helped us set record sales levels in our last fiscal year. But, just like everything in the restaurant industry, our creative work continues to evolve as we strive to make it even better." The radio spots were created and produced by the Kansas City office of Sullivan Higdon & Sink, Captain D's advertising agency.

Ford signs deal for on-air car giveaways
In an echo of Oprah Winfrey's wildly successful car giveaway promotion stunt with Pontiac's G6 (we interviewed Pontiac marketing chief Mark-Hans Richer-Part I, Part II, Part III, Part IV), AdAge reports Ford Motor Co. has signed a deal to give away free vehicles to families appearing in ABC TV's Extreme Makeover: Home Edition show.

Ogilvy wins Delta account after review
Delta Air Lines has handed its $25 million creative and media account to Ogilvy & Mather and MindShare, according to executives close to the matter. The last review stage also included BBDO Worldwide and OMD. Brighthouse Atlanta and Starcom were eliminated from the review in August. Brighthouse had the account for just over a year, after winning it from Leo Burnett, which had it from 2000-03. Saatchi & Saatchi held the account from 1997-2000.

Arbitron signs multi-product
Scarborough deal with Discovery
Arbitron announced today that it has signed a contract with Discovery Communications to provide the global real-world media and entertainment company with local and national consumer insights from Scarborough Research. Under the agreement, Arbitron will provide Discovery's Affiliate Sales and Marketing division with national and local consumer research for 75 markets from Scarborough Research, a leader in consumer patterns and media usage. The agreement also includes Scarborough's custom Hispanic studies for 10 markets. "Increasingly, cable networks use consumer research to quantify the appeal of their programming and to better match network offerings with marketing priorities," said Carol Edwards, VP/Cable Sales, Arbitron. "Through Scarborough's data, Arbitron provides valuable national and local market intelligence that enables cable networks to strategically demonstrate their value to affiliates and advertisers." "Scarborough's consumer research is a tremendous resource for cable networks seeking to understand their audiences, gain carriage and increase their market share." Discovery joins Arts & Entertainment TV Networks, Fox Sports Network, MTV Networks, NBC Cable Networks, and The Weather Channel-in utilizing consumer research from Scarborough.

Media, Markets & Money tm

Washington Beat

Transactions

WPHB-AM & WUBZ-FM Philipsburg PA from Moshannon Valley Broadcasting Network Inc. to Magnum Broadcasting Inc.

KKXO-AM Eugene-Springfield OR (Eugene) from McKenzie River Broadcasting Company Inc. to Churchill Communications LLC.

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