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Volume 24, Issue 198, Jim Carnegie, Editor & Publisher
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Wednesday Morning October 10th, 2007
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Radio News ®
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 Westwood One
spells out CBS deal
Westwood One executives got into the nitty gritty financial deals of their new deal with CBS Radio (10/4/07 RBR #194) in a conference call yesterday with Wall Street analysts. The bottom line is that Westwood One is in a better financial position under the new agreement and CBS Radio stations have strong financial incentives to continue to clear WW1 spots. One analyst raised the question of what would happen if a CBS O&O station just quit clearing WW1 spots? That is, indeed, covered in the new agreement. Not only would WW1 save on its network comp payments, but would also receive liquidated damages if any CBS O&O station fails to clear 75% of the WW1 commercials it is supposed to broadcast for three consecutive months or four out of 12 months. If CBS Radio companywide would just quit carrying WW1 spots, WW1 estimates that it would keep about 40 million a year in comp payments, plus be owed over one billion by CBS. In other words, that ain't gonna happen.
Back to the basic agreement, here's how the finances play out, assuming the new deal is approved by WW1 shareholders. WW1 no longer has to pay CBS Radio some 19 million in cash annually under the current representation and management agreement, nor some 10 million from amortizing stock warrants. Going the other way is about 16.3 million of additional station compensation payments to CBS Radio stations, assuming they carry 100% of WW1 spots. WW1 will also have to pay its own CEO and CFO, who are now provided by CBS. There is nothing to report yet on the search for a successor to Peter Kosann, who will exit as WW1 CEO when the CBS management contract is terminated. If the new agreements had been in effect for the year 2006, WW1 calculates that it would have come out about eight million bucks ahead of its actual results.
RBR observation: One other interesting aspect is that CBS Radio has the right to veto certain candidates for CEO of WW1 once the new deal goes into effect. Those are the people who served as CEO during the time that CBS Radio managed the company: Mel Karmazin, Joel Hollander, Shane Coppola and Peter Kosann. It will be interesting to see who next fills the chair.
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 Emmis sues CBS
for snatching Berger
Walter Berger's exit from Emmis Communications to join CBS Radio (then known as Infinity) as CFO (12/7/05 RBR #238) was not entirely amicable. We note from Emmis' quarterly report filed with the SEC that it has a lawsuit pending against CBS Radio, seeking damages for snatching Berger away. The lawsuit claims that CBS Radio knew that Berger had a "valid and enforceable" contract with Emmis when it recruited him and that, despite objections from Emmis, "CBS Radio encouraged Berger to breach his contract by leaving Emmis in January 2006, more than three years before the contract was set to expire." In addition to suing CBS Radio, Emmis has filed an arbitration action against Berger, seeking damages for breach of contract and repayment of some of the payments made to him under his Emmis contract.
CBS has a different recollection of the events. In its response to the lawsuit, it said that when Berger informed his employer of the CBS Radio offer "Emmis advised Berger that it would not stand in the way of Berger's opportunities." In any case, it looks like the dispute has been resolved. The court documents state that a settlement conference last month produced an agreement and that all that remains now is "the execution of the documents and/or delivery of funds, if so required, in accordance with their agreement." Emmis also revealed in its quarterly report that SJL Acquisition is demanding a 10 million bucks refund from its purchase of KHON-TV Honolulu, claiming that Emmis violated the terms of its Fox affiliation. Emmis denies that any such thing occurred. SJL, better known by its corporate parent name Montecito Broadcast Group, bought KHON from Emmis in 2005 as part of a four station (plus five satellites) package for 259 million. Montecito, backed by the Blackstone private equity group, already has a profit locked in, having recently filed to re-sell the package to New Vision for 330 million. Exactly how Emmis allegedly violated its Fox affiliation agreement is not spelled out in the SEC filing. Emmis says it will "defend itself vigorously in the matter," but at this point no lawsuit has been filed - just a letter from SJL demanding the 10 million.
AT&T says Aloha to 2.5B worth of spectrum
A major chunk of repurposed former television spectrum is going to telco giant AT&T in a 2.5B deal with Aloha Partners. The high quality beachfront spectrum covers "196M people in 281 markets...including 72 of the top 100 and all of the top 10 markets in the United States." AT&T intends to use the capacity to meet increasing demand for mobile services, "including voice, data and video," said AT&T's Forrest Miller. Aloha has been amassing the spectrum for several years, both via auction and acquisition. It recently bought a large chunk of it from LIN Television, which itself benefited from some nice ROI after acquiring pieces of the spectrum at auction in 2002 and 2003. The spectrum covers the space once allocated for UHF channels 54 through 59.
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Radio One is NOT pulling the plug on Syndication One
RBR has checked out a report by the online Redding News Review claiming that Radio One/REACH Media-owned Syndication One is scheduled to be shuttered at year's end. "Producers for Syndication One were told last week that they would not have jobs at the end of the year, and that changes would be forthcoming on the company's XM 169 The Power" (a joint venture of Radio One and XM), said the story. Syndication One airs Al Sharpton, "The 2 Live Stews," a sports show, and a legal show hosted by Warren Ballentine. The three shows are also heard on The Power. Not entirely true, says an industry source. In fact, two more shows are being added very soon. 2 Live Stews (They will continue locally in Atlanta) and Ballentine are being cancelled, as affiliates were notified they will end in December. However, Syndication One will continue, with Radio One and REACH Media as co-owners. Sharpton stays as well. Radio One will have an official statement soon.
RBR observation: Note that Mr. Redding does news on XM 169. So maybe he heard some of this there but got some of it wrong.
 SCHIP veto spurs ad buys
According to polls, nearly three fourths of US citizens support a bipartisan bill to increase funding to a children's health insurance program known as SCHIP (State Children's Health Insurance Program). The veto it drew from President Bush became a call to action to various public interest groups backing the legislation, who are using the veto as a basis for television and radio advertisements in the districts of Republican congress members considered to be vulnerable in 2008. The early ads will be focus on getting the members to help override the veto. If the override effort fails, then a whole new round of ads will be launched specifically at vulnerable members who did not support the override.
RBR observation: This may well go on all the way up to Election Day next year. Every time something controversial happens in Washington, an interest group can either spend cash it has on hand or appeal to its membership for enough small donations to run an ad flight, and can take the campaign right to where it thinks it will have the greatest affect. While candidates themselves may make more strategic use of the airwaves, keeping powder dry for the final few weeks, the tactical methods of interest groups will continue to be tied to current events, and may well keep the political category hopping at least to some extent between the primaries and the general election, as well as enhancing the spending during those two periods.
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Ad Business Report TM
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D&R Radio signs Entercom Indianapolis
Interep's D&R Radio Sales has signed an agreement with Entercom to rep three stations in Indianapolis: WZPL-FM, WNTR-FM and WXNT-AM. With the addition of Indianapolis, D&R now represents Entercom in 19 of the station group's 21 markets. Kevin Cassidy, President, D&R Radio Sales, said, "We are delighted to expand our relationship with Entercom and look forward to working closely with Phil Hoover and his team to grow their Indianapolis stations' share of national dollars."
ANA and RAB launch "KANA"
The RAB, in conjunction with Association of National Advertisers (ANA), is launching KANA Radio, a radio station dedicated to serving the Masters of Marketing Conference. KANA Radio will be heard throughout the Biltmore Resort & Spa in Phoenix during the entire ANA Conference, 10/11-10/14, at 95.9 FM and Channel 7 on in-room TVs. Live broadcasts of general sessions and one-on-one interviews will be featured. Additional highlights include daily updates, on-the-scene reports from special events, and the chance to win an HD Radio every day.
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| Media Business Report TM |
 AP sues web publishers
The Associated Press announced that it has sued Moreover Technologies Inc. and VeriSign Inc., asking a federal court to stop the two companies from accessing and electronically publishing AP's proprietary news reports without permission and infringing on the news organization's copyrights and trademarks. The lawsuit, filed in US District Court for the Southern District of New York yesterday, seeks unspecified damages and a permanent injunction against Moreover and VeriSign. The AP says it filed suit after Moreover Technologies and VeriSign failed to comply with the directives in a September 11th cease-and-desist letter. "The Associated Press spends hundreds of millions of dollars every year gathering and reporting the news, providing original coverage of vital breaking news that cannot be obtained anywhere else. We've done this for more than 160 years, often under tremendous time pressure and often at great risk to our journalists. When someone uses our content without our permission, they are free riding on our newsgathering and our reporting of news from around the world," said Tom Curley, AP President and CEO.
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| Media Markets & Money TM |
Regent exits a market
Regent Communications announced that it has entered into an agreement to divest its four-station cluster serving the Watertown, NY market. The buyer, for 6.25 million, is KXOJ Inc. The cluster includes WFRY-FM, WCIZ-FM, WTNY-AM and WNER-AM. Closing is expected in Q1 of 2008. "This transaction reflects our focus on maximizing the value of our portfolio to the benefit of our shareholders. The proceeds from the sale of our smallest market cluster will strengthen our financial flexibility as we continue to build on our leadership position in the nation's mid-sized radio markets. We would like to thank all of our employees in Watertown for their dedication and service," said Regent CEO Bill Stakelin. Richard A. Foreman Associates was the broker in the transaction for Regent Communications, while John Pierce & Co. represented the buyer.
Fort Worth AM sold
Siga Broadcasting is getting a Spanish religious station. Jose Vasquez's Garden City Broadcasting is selling KFJZ-AM to Siga for 1.8M. It'll be Siga's fifth AM station in the Lone Star State. None of the other stations are within 200 miles of Dallas-Ft. Worth. Siga is owned by Gabriel and Sylvia Arango.
Archway sells Little Rock stations
Archway Broadcasting Group announced a deal to sell KHTE-FM, KKSP-FM and KOLL-FM Little Rock, AR to Crain Media Group. Terms of the deal brokered by Media Venture Partners were not immediately disclosed. Crain Media Group is owned by Larry Crain and operates several stations in Arkansas: KCNY-FM Conway, KWCK-FM and KWCK-AM Searcy, KAPZ-AM Bald Knob, KMDS-FM Pangburn, and KAWW-FM and KAWW-AM Herber Springs.
Fairbanks company gets a double/cross DIY
That's as in a double FM duopoly and a cross-ownership pairing. Once it's built, KDJF-FM Delta Junction AK will pair with Tanana Valley Television Company's KYSC-FM in Fairbanks, and will be part of a cross-ownership cluster with Fox KFXF-TV Channel 7. But the Class C CP won't be licensed to Delta Junction. According to the FCC database, it will be in nearby Ester AK on 93.5 MHz. The price for the station is 173K (seller Scott Powell and Amy Meredith will likely have to return a 25% bidding credit to the FCC). Tanana Valley is headed by William St. Pierre. Fairbanks is part of the Nielsen DMA universe, but is not an Arbitron market. However, it does receive radio ratings from Eastlan.
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| Washington Business Report TM |
 Working on DTV
The FCC is planning a series of workshops which will address what it believes are special needs groups regarding the switch to digital television 2/17/09. Dates have been announced for two of them. On 11/8/07, a session will be held addressing the needs of senior citizens, and on 12/4/07, a workshop will address the needs of minority and non-English speaking citizens. The groups "have been identified as likely to be disproportionately impacted by the transition and least aware of it." Other groups, which include those with disabilities, low-income households and people in rural areas, will be scheduled for 2008. While individual citizens from each group are welcome to attend the events, which are being held at FCC headquarters in Washington DC, the real benefit will be attendance by advocacy and consumer groups that can spread the word directly to the at-risk citizens.
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| Entertainment Business Report TM |
NABJ to Citadel and Fox: End Imus Talks
The National Association of Black Journalists urges Citadel CEO Farid Suleman and Fox News Chairman Roger Ailes to halt negotiations to return Don Imus to the radio and television. "Recent reports that Imus is in informal talks with Fox Chairman Roger Ailes and is finalizing contractual details with Citadel Broadcasting are unimaginable," said Barbara Ciara, NABJ president. "NABJ remains outraged after the racially inflammatory insults made by Don Imus last spring. He used his free speech to broadcast hate speech. To put him back on the air now makes light of his serious and offensive racial remarks that are still ringing in the ears of people all over this country." Imus was fired last April after the shock jock called members of the Rutgers women's basketball team 'nappy-headed hos.' "It is our hope that Citadel Broadcasting and Fox News will put decency and good broadcast practices ahead of a dysfunctional alliance," Ciara added.
RBR observation: When (and if) Citadel brings Imus back to WABC it will likely be just that for starters - not ABC Radio Networks syndication; not Fox News. It will be a toe in the water to see how the ad market and listeners respond. We can't imagine his return will not be accompanied with a Black co-host or at least some sort of regular African American guests to talk about racial issues, including what Imus did. The move right now for Suleman would be to tell NABJ this is the case - if it is.
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| Ratings & Research |
Project Apollo study shows price
sensitivity can be affected by exposure
 Project Apollo pilot data indicates that marketers can identify consumer groups whose sensitivity to price depends on their exposure to advertising. Project Apollo, is the pilot for a new single-source marketing research service under development by Arbitron and The Nielsen Company. In the study, "Brand X" users were separately analyzed as heavy, medium and light category purchasers. These users were further analyzed by their exposure to TV advertising, resulting in three groups: no exposures, low exposures, and high exposures. The study revealed that TV exposure has a substantial impact on price sensitivity of households that frequently shop the category. An analysis that segments brand users and media exposure is an approach not possible in the conventional marketing mix modeling, which must attempt to discern marketing effects by examining the total, undifferentiated marketplace for an advertiser's product.
The analysis found that exposure to advertising appears to decrease a consumer's tendency to react to price changes. Pricing sensitivity is reduced even at low TV exposure levels compared to no exposures. The results of the study also indicated in the aggregate that advertising and price elasticity are inversely related. This relationship was observed across various levels of TV exposure. Purchasers of "Brand X" who had not been exposed to TV advertising were the most sensitive to price. Those with low exposure to TV ads were less sensitive to pricing. Audiences with high exposures showed the least sensitivity to price change. In related news, Arbitron and Nielsen have agreed, along with the seven members of the Project Apollo Steering Committee, to extend the pilot period for Project Apollo into Q1 '08.
For mobile TV, technology is no longer the issue
As recently as 2001, some mobile communications experts were saying that mobile television might be a reality within 20 years, but would probably arrive much later because the technical problems were so difficult. Yet only six years later, according to a new study from ABI Research, successful mobile video technologies are largely in place. As questions about business models, distribution, and content are resolved, the mobile TV industry will take off in earnest. ABI Research director Michael Wolf says, "Just a year ago, there was a lot of discussion in the industry about whether unicast or broadcast distribution models would prevail, and it seemed possible that unicasting would soon disappear. The new research suggests that while the major top-ranked channels will follow a broadcast model, unicasting is here to stay as a conduit for the 'long tail' of other content that consumers will desire."
Unicasting also has the advantage of an unequalled intimacy between service providers, advertisers, and their "captive" audiences. It's a time of experimentation. Most of the formats and distribution models under consideration have both pros and cons, and the effort is to find the right mix for each type of content and each target audience. Pricing is a good example. There are at least half a dozen proposed models for pricing access to mobile video content, reflecting the medium's origin in the collision between the entertainment and wireless communications industries. Some will find the "sweet spot" that will attract and hold consumers; others will not.
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| Music Business Report |
Artist breaks free of labels
There was a time when getting a contract with a major record label was one of the most important milestones in a musician's career, if not the most important milestone. Now it seems more and more simply want to get away. The latest to do so is Trent Reznor, founder of Alternative outfit Nine Inch Nails. "Hello everyone," he told fans in a post on his website. "I've waited a long time to be able to make the following announcement: As of right now Nine Inch Nails is a totally free agent, free of any recording contract with any label. I have been under recording contracts for 18 years and have watched the business radically mutate from one thing to something inherently very different and it gives me great pleasure to be able to finally have a direct relationship with the audience as I see fit and appropriate. Look for some announcements in the near future regarding 2008. Exciting time, indeed." Reznor's now former label was InterScope.
RBR observation: The Internet is changing the intertwined recording and broadcasting industries in numerous unpredictable ways. Artists work for one, provide content for the other and seem to be rebelling against both. With multiple competing business interests, considerations of artistic merit, freedom of speech issues, FCC licensing and public interest elements and a high level of consumer interest, it's hard enough to craft legislation in this arena during stable times. These days, the difficulty is compounded, and a piece of legislation may well be completely out of date before it even makes it to the Oval Office for a presidential autograph. Stay tuned.
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| Transactions |
700K KYSM-AM Mankato-New Ulm-St. Peter MN (Mankato MN) from Three Eagles of Lincoln Inc. (Rolland C. Johnson) to Minnesota Valley Broadcasting Company (Donald Linder, John Linder, Thomas Linder, Douglas Linder). 350K deposit, balance in cash at closing. Superduopoly with KXLP-FM New Ulm MN, KTOE-AM Mankato MN, KDOG-FM North Mankato MN, KNSG-FM Springfield MN & KXAC-FM St. James MN. Buyer also takes over LMA of KXRP-FM Vernon Center MN. Additional overlap with KOWZ-AM/KRUE-FM Waseca MN & KOWZ-FM Blooming Prairie MN. LMA until closing. [File date 9/24/07.]
N/A WRON-FM Ronceverte WV from Michael D. Kidd dba Greenbrier Radio to WVJT Inc. (Todd P. Robinson). Swap for WKCJ-FM Lewisburg WV. Combo with WSLW-AM White Sulphur Springs WV. [File date 9/24/07.]
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| Stock Talk |
Wall Street cheers the Fed
Minutes of the last Fed meeting had traders convinced that another rate cut is likely. That sent the Dow Industrials surging 121 points to a record close of 14,165.
Radio stocks were generally higher. The Radio Index, however, was down 0.191, or 0.2%, primarily due to a 5.3% drop by thinly traded Beasley. Westwood One also declined 3.4%. Entravision was the best performer, up 4%.
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| Radio Stocks |
Here's how stocks fared on Tuesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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47.53
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+0.81
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Google
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GOOG
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615.19
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+5.57
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Beasley
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BBGI
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7.60
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-0.42
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Hearst-Argyle
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HTV
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25.44
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-0.11
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| CBS CI. B |
CBS |
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30.73
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-0.12
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Journal Comm.
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JRN
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9.95
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+0.03
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| CBS CI. A |
CBSa |
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30.71
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-0.15
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Lincoln Natl.
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LNC
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69.20
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+1.47
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| Citadel |
CDL |
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4.38 |
+0.11 |
Radio One, Cl. A
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ROIA
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3.89
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+0.03
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Clear Channel
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CCU
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37.28
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+0.08
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Radio One, Cl. D
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ROIAK
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3.88
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+0.02
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Cox Radio
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CXR
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13.29
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-0.14
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Regent
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RGCI
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2.72
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unch
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Cumulus
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CMLS
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10.51
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+0.01
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Saga Commun.
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SGA
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7.97
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-0.07
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Debut Bcg.
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DBTB
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0.85
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unch
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Salem Comm.
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SALM
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8.28
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-0.15
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Disney
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DIS
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35.45
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+0.18
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Sirius Sat. Radio
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SIRI
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3.58
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+0.13
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Emmis
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EMMS
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5.21
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+0.08
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Spanish Bcg.
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SBSA
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2.54
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-0.01
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Entercom
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ETM
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21.12
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-0.12
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SWMX
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SMWX
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0.04
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-0.02
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Entravision
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EVC
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10.50
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+0.40
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Westwood One
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WON
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2.85
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-0.10
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Fisher
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FSCI
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50.14
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+0.15
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XM Sat. Radio
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XMSR
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15.24
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+0.98
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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]
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Below the Fold
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Ad Business Report
D&R Radio signs
Entercom Indianapolis after Emmis booked over to Katz ...
Media Business Report
AP sues web publishers
Suing Moreover Technologies Inc. & VeriSign Inc., asking a federal court to stop the two companies...
Media Markets & Money
Regent exits a market
Entered into an agreement to divest its four-station cluster...
Ratings & Research
Project Apollo
Study shows price sensitivity can be affected by exposure...
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Stations for Sale
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 Market your Stations For Sale
in our daily epapers.
Contact
June Barnes
[email protected]
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Radio Media Moves
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Norfolk promotions
Entercom has named Jeff Brown Vice President/Market Manager of its four radio stations in Norfolk, VA, WPTE-FM, WVKL-FM, WWDE-FM and WNVZ-FM. He had been the company's Director of Sales in Denver. Also in Norfolk, Don London has been promoted to Vice President of Operations. He had been Operations Manager.
He's a Big Talker
Ed Palladino has been named Assistant Program Director of CBS Radio's WPHT-AM "The Big Talker 1210AM" Philadelphia. He joins the station after previous stints at Nassau Broadcasting as Operations Manager/Program Director of WHWH-AM Princeton, NJ and WPHY-AM Trenton, NJ.
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More News Headlines
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Google AdSense network to run ad-backed videos
Google is expanding the market for ad-supported online video beyond its YouTube site by letting its client website publishers run videos on their own sites. Google will be linking these affiliated websites in its Google AdSense network with YouTube video creators. Google is calling new ad-supported video service as "video units," reported Reuters. "Video unit ads dedicate a small companion banner at the top of the screen to run graphical banner ads, taking up around 20% of the small rectangular box in which the video runs. A text ad appears on the bottom portion of the video once a user clicks the play button and the video begins showing," the story said. The ads within the video unit are targeted based on a combination of the video content and the publisher's site content.
Google is working with video content partners including TV Guide Broadband, Expert Village, Mondo Media, Extreme Elements, and Ford Models to supply the content. Around 100 YouTube video content partners are taking part in all, representing thousands of video clips, the story said. Meanwhile, a new online health service (likely one of the 100) was unveiled that allows physicians to embed YouTube-hosted video into their iHealth practice Web sites. Videos are being used by physicians to educate patients, explain treatment plans or procedures and introduce their practices to new patients. The new integrated service connects consumers to their doctors in new and more interactive ways. Over 70,000 U.S. physicians have Medem Network's iHealth practice websites.
Journal changing auditors
Journal Communications says in an SEC filing that the Audit Committee of its Board of Directors has decided to dismiss Ernst & Young at the completion of its services for this year. There has been no dispute with E&Y, but the Audit Committee determined that it was an opportune time to issue an RFP to engage a new auditor.
Book looks at media use for small businesses
Ronald Geskey has a new book out called "David vs. Goliath, Guerrilla Media Buying for Small Business," which purports to teach small business operators who to defeat larger competitors through efficient and smart use of the media. He aims to provide step-by-step methods to increase media efficiency, and covers everything from "television, print, radio, internet, direct mail as well over 60 non traditional media approaches." The publisher says the book "provides clear steps on how to negotiate traditional and non traditional media buys to get substantially more media exposure for the budget."
RBR observation: We thought maybe it wouldn't hurt to know how small businesses may want to use your services and how they might approach negotiations. Geskey's book is available at various online bookstores.
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TVBR - TV News
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FCC kicking off
another round of
white space tests
Earlier FCC tests of unlicensed devices designed to operate in the open spectrum between operating television stations have not yet yielded satisfactory results. But the FCC says it is set to plug away on another round of testing. "The Commission is committed to working with all parties to continue the process of investigating the potential performance capabilities of TV white space devices in an open and transparent manner," said the FCC in a release. "To that end, the Laboratory will be conducting additional laboratory and field testing of prototype devices." It says that companies wishing to submit a device for testing should make their desire known ASAP. Further details will be forthcoming.
TVBR observation: Test away! And keep right on testing, especially under the new all-digital broadcast conditions that will be in effect in this portion of the spectrum. Meanwhile, perhaps other, safer ways to utilize the spectrum between stations can also be considered.
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RBR Radar 2007
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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More doubts about radio groups
Several Wall Street analysts came out with updates cutting their estimates for Emmis, following last week's quarterly conference call. One also reduced estimates for Radio One. The reaction from Wall Street was hardly surprising. Bear Stearns, Victor Miller has reduced his full year revenue estimate for the entire company to 351.1 million, down from the previous projection of 354.8 million. And he seed EBITDA of 66.6 million, rather than 69.1 million. In miller's view, Emmis' stock is "fairly valued&! quot; and he maintains his "Peer Perform" rating. Mark Wienkes of Goldman Sachs maintains his "Buy" rating, despite reducing his financial projections for Emmis. The upside, he says, is the asset value. Bank of America analyst Jonathan Jacoby questions the likelihood of investors realizing the spread between the stock price and the break-up value, given Smulyan's voting control and has lowered his target for the stock to six bucks from 10 and maintains his "Neutral" rating.
RBR note: RBR agrees with Wienkes believing there is some probability that shareholders could receive either a tender offer or share in an equity distribution if any one or two of the stations in New York, Los Angeles, or Chicago are sold.
10/09/07 RBR #197
Emmis projects another down Qtr
CEO Jeff Smulyan says he sees encouraging signs, but the guidance from Emmis for the current quarter is that it will again underperform a sluggish domestic radio industry, with KMVN-FM Los Angeles cited as the culprit. Emmis' radio stations would have been in line with the markets, except for WRKS-FM New York and KMVN LA. For the current quarter, he says the Emmis stations will be in line with their markets except for KMVN. "We're actually very encouraged by the things we've seen this quarter," Smulyan insisted as he began his quarterly conference call with analysts. He pointed to switching national representation to Katz, said ratings are up for most Emmis stations and that sales are improving.
RBR observation: Emmis going forward has three issues that may be challenging. 1) Emmis has Urban in NYC. PPM has not been kind to Urban. 2) WKQX is still suffering from the loss of Mancow. It is 25th in the market 12+, plus the Alternative format is where technology is hitting first. Classic Rock WLUP is 16th 12+ and losing to Bonneville's "Drive." 3) 'Movin' in LA has not caught on. Rick Dees is miscast and there are plenty of stations duplicating the music they play. When you are challenged in New York, Los Angeles and Chicago, it doesn't matter how your stations in Indianapolis are doing. Smulyan must execute formats better in 2008 or face another long year of little or no growth.
10/08/07 RBR #196
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©2007 Radio Business Report, Inc. All rights reserved.
Radio Business Report -- 2050 Old Bridge Road, Suite B-01, Lake Ridge, VA 22192 -- Phone: 703-492-8191
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