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Volume 22, Issue 199, Jim Carnegie, Editor & Publisher

Tuesday Morning October 11th, 2005

Radio News®

Jefferson-Pilot sold
to Lincoln Financial
Another broadcasting company is changing hands in a big deal, although Jefferson-Pilot Communications is but a small part of this 7.5 billion bucks cash/stock deal to merge Jefferson-Pilot Corporation into Lincoln Financial to create an insurance industry giant. While Philadelphia-based Lincoln hasn't been in the broadcasting business, it plans to keep the radio and TV group. "Beyond our strength in financial services, the new company will have an extremely attractive portfolio of broadcasting assets in Jefferson-Pilot Communications. This is a unique and strong franchise, which will provide earnings diversity to Lincoln and an additional outlet for publicizing the Lincoln Financial Group brand and remain a key part of the overall organization," said Lincoln Chairman and CEO Jon Boscia, who will keep those titles for the merged company. Jeff-Pilot President and CEO Dennis Glass will become President and COO of Lincoln, post merger. Under the deal, which still needs several regulatory approvals, Jeff-Pilot shareholders will receive 1.0906 share of Lincoln, or 55.96 cash for each Jeff-Pilot share. The cash portion will be limited to 1.8 billion and pro-rated if oversubscribed. The companies say that works out to a blended stock/cash consideration of 55.48 per Jeff-Pilot share, an 11% premium to the recent average price. The companies say they expect 180 million in pre-tax annual savings from combining the two insurance companies. As you would expect, Jeff-Pilot's stock price shot up yesterday to just below the merger value.

RBR observation: The value of the Jeff-Pilot Communications subsidiary wasn't broken out from the main deal. However, Jeff-Pilot supplies considerable financial data about the broadcast operation, although it doesn't separate radio and TV, so we can come up with a ballpark figure. The broadcast division had 239 million in revenues in 2004, about 6% of the company's total of 4.1 billion. Net income for broadcast was 54 million, about 10% of Jeff-Pilot's total of 563 million. Lincoln and Jeff-Pilot say broadcast will account for about 4% of the merged company's operating income. Jeff-Pilot Communications reported broadcast cash flow of 108 million for 2004. If we apply a blended 12 times multiple, the value of the broadcast stations in this deal is roughly 1.3 billion. After looking at BIA figures, out best guess is that radio accounts for about 63% of revenues and cash flow, so we're calling this deal 820 million for radio and 480 million for TV.

Clear Channel heating up Hispanic menu
Within the next year and a half, radio giant Clear Channel is planning to go Latin "...across a full range of market sizes." It plans Hispanic conversions for anywhere from 20 to 25 radio stations in markets where Spanish-speaking residents are currently underserved. Alfredo Alonso, who was once head of his own Hispanic group, Mega Communications, will spearhead the new CCU initiative. Alonso said, "My focus will be on identifying opportunities to bring Spanish language radio format to all-sized markets, with unique radio stations that are as diverse as the Hispanic market itself." CCU CEO John Hogan explained, "The Hispanic radio audience remains largely underserved, especially outside the largest markets. We have a unique chance to participate in this rapidly growing, important sector and are committed to creating the highest-quality offering in the market."

RBR observation: Clear Channel is under constant assault for having a political agenda, but this - - like its adoption of the liberal Air America network in many locations - - is further evidence that its primary political philosophy is the pursuit of profit, and it will go in whichever direction that pursuit takes it.

Democrats keep the heat on Bennett
Rep. Jesse L. Jackson Jr. (D-IL) has officially made a federal case out of the comments of Salem Radio Network personality and former Secretary of Education Bill Bennett. He's filed a complaint with the Federal Communications Commission attacking the language - - not as indecent - - but as profane. "The Federal Communications Commission can regulate content that is profane," said Jackson. "Mr. Bennett's comments were indeed profane, so we have prepared a formal complaint to the FCC, asking that Mr. Bennett and his show's parent network, Salem Radio Network, be sanctioned. The FCC has defined profanity as 'including language that denot[es] certain of those personally reviling epithets naturally tending to provoke violent resentment or denoting language so grossly offensive to members of the public who actually hear it as to amount to a nuisance.' Mr. Bennett's comments meet that standard." Meanwhile, Rep. John Conyers (D-MI) is continuing to his pursuit of Salem - - and has shifted his focus from letters to the network to pressure on Bennett's advertisers. On his blog, he wrote, "While Salem Radio Network has not provided us a list of their sponsors, I understand that a number of other radio stations have such a list and are encouraging people to make calls and send emails. A groundswell of grassroots activity encouraged the Bennett sponsors to shrink. It will be interesting to see what becomes of the pressure on Salem."

RBR observation: Jackson will no doubt have a very hard time pushing his definition of profanity at the FCC, with its primary focus squarely on the sexual and excretory. And in a media world where many rightly believe there is no such thing as bad publicity, a campaign such as Jackson's often backfires and actually raises the profile of the individual under attack - - just ask Howard Stern. Conyers' route, however, hits where it hurts - - the wallet. Although demographic targeting along lifestyle lines which mirror political lines can be beneficial in certain cases, as a general rule, America's advertisers of various goods and services do not check the politics of potential customers when they walk up to the cash register. If a particular show becomes too hot, there are plenty of other media outlets where they can spend their money. Stay tuned.

The grass isn't any greener
If you read our dismal report yesterday on how poorly radio stocks have performed through the first three quarters of this year (10/10/05 RBR #198), maybe you were thinking that things were better in radio. No way. If it's true that misery loves company, then radio execs will find it comforting to read these figures for TV stocks.
| View the Numbers |

Smulyan sees value in
baseball, ABC Radio
Wall Street may not like the idea of Emmis investing in Major League Baseball, but Jeff Smulyan remains committed. Elaborating on comments he made in last month's quarterly conference call, Smulyan noted in a Q&A posted on the Emmis website that investors didn't like him getting into TV either, but that's now been cashed out at a nice profit. Likewise, he thinks a potential 100 million investment in buying the Washington Nationals will pay off down the road. "While initially this was a possibility I was pursuing alone, it became clear that it made sense for Emmis to be involved. We looked at it, and we saw the total nature of the investment. Obviously the team is quite profitable, and on a cash-flow basis, the investment would be at a lower multiple than the TV assets we're in the process of selling. But we also believe there are some other opportunities that come with it - - cable TV rights, stadium-area development, participation in Major League Baseball's internet venture - - that are very attractive. People should also know that under the limited partnership we're organizing with DC investors, Emmis would not be liable for any debt from a purchase," Smulyan said. He also doesn't make any secret in his interest in acquiring ABC Radio - - put only if the price is right. So what happens if after stocking up with cash from the TV sell-off, neither of those deals becomes reality? "It's really hard to tell what Emmis will look like in the coming years. We have a vibrant company full of people who do great things. We want to grow, but we're not going to overpay to do it. We'll only do things that make sense for this company," Smulyan insisted.

AOL and Infinity extend marketing pact
AOL and Infinity Broadcasting have extended their marketing alliance, originally announced in April 2003. The agreement will bring cross promotional and programming opportunities to Infinity's 178 stations and to AOL, in support of its AOL.com portal. AOL will provide to all Infinity stations AOL.com daily programming suggestions, to entertain and inform listeners through on-air and online promotional opportunities. Online, Infinity radio station web sites will selectively offer leading AOL features including the AOL Instant Messenger service, AOL Expressions, AOL-hosted polls, alerts and reminders. Building on the relationship, select Infinity stations will feature on-air interstitial programming elements from the AOL.com portal including AOL CityGuide Buzzline, with local highlights targeted specifically to each station market, and Moviefone Minute, featuring the buzz on the hottest movies each weekend.

HD Radio 2006

RBR Observation:
How do you think HD Radio should be numbered?
We've run the numbers for you to look at. First there was the Cox Radio proposal to continue the current FM band numbering of 88.1 through 107.9 on into HD Radio multicasting as 108.3, 108.5, etc., which we extrapolated through eight multicast channels (10/10/05 RBR #198). We at RBR came up with our own proposal for both AM and FM HD Radio, which would scrap the whole "point-whatever" system for whole number channels running from 530 through 3009 (10/4//05 RBR #194). But we're still looking for more ideas and feedback on the various proposals. Please check them out, then send us your thoughts via [email protected].

Adbiz©

Omnicom acquires ipsh!
Diversified Agency Services (DAS), a unit of Omnicom Group, has acquired San Francisco-based ipsh!, a mobile marketing services/technology company. "This acquisition represents a unique partnership with the convergence of traditional corporate communications and wireless services," ipsh! CEO Nihal Mehta said. "This partnership highlights the growing importance of the mobile phone as a viable marketing medium." "At Omnicom, we recognize growth markets and exceptional business opportunities that support our existing businesses and clients, so this acquisition is a perfect fit," said Tom Harrison, DAS CEO. "ipsh!'s ability to successfully implement mobile marketing campaigns for a broad range of clients across industries will give us a leadership position in the marketplace."

AOL launches national
effort for AOL.com
AOL has launched a nationwide campaign for AOL.com leveraging both traditional and online media. The effort is designed to highlight specific features of AOL.com and is organized around four key themes: Entertainment (AOL Music, Moviefone, AOL Radio, AOL Sports, AOL Television and more); Finding news and information (AOL Search, Video News, VOD, Video Search and more); Convenience and getting things done (AOL CityGuide, AOL Living, inStore, MapQuest and more); and Connecting with others (E-mail, AIM, AOL Pictures and more). According to Kevin Conroy, AOL Media Networks EVP, "This campaign reaches web users where they are-online. With a changing media landscape, a multi-pronged approach, which also includes print, broadcast and outdoor billboards will more effectively reach today's consumer. And, by linking to our wide range of best-in-class programming and functionality, we're connecting consumers directly with the value that matters most to them within our new AOL.com portal experience." To create and implement the campaign, AOL is working with Carat Fusion on Search Engine Optimization and Search Engine Marketing; Atmosphere BBDO for online creative and OMD for online media; and The Martin Agency with Initiative on Offline advertising. This multi-faceted ad campaign is intended to attract new users to AOL.com and motivate AOL's existing audience to visit AOL.com websites. The online ads, via Atmosphere BBDO, began running in August and focus on specific content areas to build awareness and take viewers directly into AOL.com with one click. These ads will run through year-end on more than 100 websites, ranging from larger, integrated buys on websites like CNET or eBay to category specific buys on sites like theStreet.com or iFilm.

RAJAR news update
While we ponder the PPM here is the US, there is ongoing testing of numerous electronic measurement technologies for radio listening in the UK. According to the recent RAJAR (the UK's dominant radio ratings company) newsletter, RAJAR successfully issued its RFP in July for new listening gathering technologies and has delivered copies of the new specification to all interested parties.
| Excerpts from the newsletter |

Advertising Week 2005 facts & figures
The recent Advertising Week 2005 organizers have released some key preliminary facts & figures. More than 500,000 unique voters participated in the Yahoo!-administered poll for America's favorite icons and slogans, won by Juan Valdez, the GEICO Gecko, GE's "imagination at work" and Hallmark's "When You Care Enough to Send the Very Best." 14,000 users have tapped Infinity Broadcasting's pod casts of Advertising Week 2005 keynote & panel content . . . logging on for an average of 90 minutes.
| See more here |

Media Business Report

Kids/FCC in tug of war between programmers, watchdogs
FCC regulations on children's broadcasting, including weekly time requirements, additional requirements for multicasters, spot limits and the relationships between what's broadcast and what's on a related website, are under attack. From both sides. Watchdogs like the United Church of Christ and the Center for Digital Democracy don't think the rules go far enough. Big broadcast and cable networks, on the other hand, say the opposite, that they go too far, violate First Amendment rights and are beyond the scope of the FCC's authority. At issue are the three hours of educational children's programming broadcasters are supposed to air weekly, the extension of that requirement to all digital multicast channels (with some built in time-trade-between-subchannel flexibility built in), restrictions on minutes-per-hour which can be used for advertising, and prohibitions on using a program's characters as advertising "spokespersons." Linked websites will be required to have a clear intention of existing for reasons other than advertising and marketing. FCC rules approved in 2004 are scheduled to go into effect 1/1/06. However, appeals are in - - the nets have filed in the Washington circuit, and the UCC in the Sixth Circuit, which encompasses its Ohio digs. Stay tuned.

RBR/TVBR Special Salute to Radio & TV

Vigilance in a
Time of Crisis
In RBR/TVBR's November Solutions Magazine, we talk with WWL-TV GM Bud Brown and WWL-AM GM/Entercom Market Manager Phil Hoover about the importance of being two of the only stations that continued broadcasting throughout hurricane Katrina. These are great reads with touching stories about heroes, saving lives and helping those in need with information.

We all in the Radio and TV business have been trying to say - 'Thank You to the broadcast communities of New Orleans and Gulfport and everywhere else for upholding our end of the deal to the American public. May free broadcasting be forever.'

If you'd like to congratulate the broadcast community for showing what it does best, we still have a few ad positions available in this amazing 5-page feature.

Contact June Barnes at [email protected] at 803 731 5951or
Jim Carnegie at [email protected] at 813 909 2986

Media Markets & MoneyTM

Creek would Love to go to Lake
Adabeth Routt is getting out of the radio biz, and Jim Stansell is getting back in. Routt's two companies - - Love Radio Company and Cedar Creek Radio Company - - are selling KLVQ-AM Athens TX and KCKL-FM Malakoff TX to Stansell's Lake County Radio. According to Media Services Group broker Bill Whitley, who handled the deal, the price is 550K, 50K of which is going into the books as a consulting/non-compete agreement. The two Texas towns are just west of the western, or Tyler side of the Tyler-Longview Arbitron market.

Washington Beat

Viacom takes a file hit in New Orleans
WUPL-TV, a Viacom UPN O&O on its way out of the portfolio, will have to settle up with the FCC. The Commission granted a license renewal to the station, but found gaps in its public file regarding its observance of children's content regulations. The gaps were for a handful of quarters going back to the Viacom's acquisition of the station in September of 1997. The FCC could not find a "pattern of abuse," and decided that the maximum 10K fine was not warranted in this case. It did hit the station with a fine, however, setting the penalty at 4K. Viacom has contracted to sell the station to Belo Corp. for 14.5M (7/11/05 RBR #134).

RBR observation: The Public File is one of the most important documents and everyone inside any station needs to know where it is and keep it updated. The FCC requires every station to have it maintained as FCC regional inspectors monitor compliance. FCC views all obligations seriously, as shown by the one that just hit Viacom. Do you know what should be in your Public File? No? RBR/TVBR in conjunction with FCC Lawyer Gregg Skall has compiled the vital info needed for your station(s) to keep you in compliance. This FCC Public File Report will be emailed soon to RBR/TVBR members only.

Programming

Progressive Rocker planned for Northern VA?
It sure has been some time since the DC radio market had the original WHFS-FM - - a station that broke the mold for originality and proved progressive/free-form could be done well on commercial radio. Many of us would put up with static and a very weak signal 80 miles out while driving into the region, just to hear as much of it as possible. It was a magnet to many. After Infinity bought the station in 1996 and morphed it into a standard Alternative format, its ratings dropped yearly. It's now a Hispanic station with new calls. The HFS calls moved to Baltimore. Now, Alternative Broadcasting, a non-profit, wants to start a non-comm progressive rock radio station to serve the Northern Virginia area with the cooperation of Charlottesville's progressive rock WNRN, says DCRTV. Alternative hopes to launch an FM station in the Fredericksburg-Stafford, VA area within two years.
| From the website |

Ratings & Research

Scarborough names Hispanic consumer groups
Scarborough Research released an analysis of Hispanics in the US and key emerging local markets for Hispanic consumers. The study unveiled five key Hispanic consumer segments, and then applied their characteristics to a local market analysis to identify the "next tier" of Hispanic cities.
| The five key Hispanic consumer groups: |

RBR Stats

AOL: African Americans spend nearly double time online
African Americans are racing to the Internet in record numbers, according to the 2005 AOL African American Cyberstudy, conducted for AOL by IMAGES Market Research. They report spending more time on the Internet (5 hours a day vs. 2.9 hours a day for the general online population) and are closing the gap in Internet usage with nearly 80% of African Americans having access to the Internet (vs. 88% of the general population). And two-thirds of online African American households have a high-speed connection vs. 53% of the general population. Those currently not online are more likely to get connected within the next 6 to 12 months. The study also revealed that African Americans are embracing the Internet as an indispensable lifestyle tool and a tremendous resource. They are far more likely to use the Web to access a variety of information: news (68% vs. 56%), entertainment (55% vs. 26%), health related issues (72% vs. 53%), financial questions/needs (60% vs. 40%) and sports (39% vs. 26%). Other popular activities include: using a search engine (92%), communicating with family and friends (86%), using the Internet to get driving directions (85%), opening a bank account or online banking (62%) and listening to music online (62%). In addition, 62% of African Americans feel the Internet is helpful with individual career advancement and is a useful education tool (80%) for all ages. However, the study also found that an overwhelming number of African Americans say there isn't enough online content that "speaks" to them as a distinct culture with its own dynamic needs and values. The survey also found that almost three-quarters (73%) of African Americans were much more receptive to culturally diverse advertising. And 68% favor companies that benefit the African American community.
| See topline findings |

GM Talkback

What are the most critical issues facing you
the rest of this year and into 2006?

Bill Figenshu is the President/CEO of FigMedia1 LLC recently formed in July '05. His battlefield experience is in excess of 34 years and is still on the radio front everyday. 'Fig' offers frontline solutions to challenges posed by management across the nation. Do you have any challenges you need answers on? We may be able to help.
Send to [email protected].

Bruce Maduri, CEO, Genesis Radio Group:
(challenge) We are seeing a great deal of sales growth in all three of our Florida markets. Staffing up is always a challenge as we add to our sales, traffic and promotions departments. We have run out of office space and are in the market to move to a much larger facility in Tampa. Finding the right property for engineering and studio installation can be challenging as well.

(solution) The large groups may have extra space left over from consolidation. Check them out first. Studio instillation could be expensive. These guys may already have walls up there.

| Read More... |

Transactions

6M KNIT-AM Dallas-Ft. Worth (Dallas TX) from Salem Media of Illinois LLC, a subsidiary of Salem Communications Corp. (Stuart W. Epperson, Edward G. Atsinger) to JCE Licenses LLC, a subsidiary of James Crystal Enterprises LLC (James C. Hilliard). Tax-free like-kind exchange for WORL-AM Orlando (Altemonte Springs FL). Price is an RBR estimate. [File date 9/9/05.]

300K WSOS-AM Jacksonville FL (St. Augustine Beach FL) from 3 Point Media - Florida LLC (Bruce Buzil, Chris Devine) to Norsan Consulting and Management Inc. (Norberto Sanchez). 25K escrow, balance in cash at closing. De facto superduopoly, and superduopoly to be. Norsan holds LMA/option to buy WEWC-AM Callahan Fl from Hola Communications LLC, which in turn is buying station from Circle Broadcasting of America; and Norsan holds LMA/option to buy WNOJ-AM Fernandina Beach and WNNR-AM Jacksonville from Florida Sports Network LLC. [File date 9/12/05.]

Stock Talk

Chapter 11 is never good news
A bankruptcy filing by auto equipment maker Delphi put Wall Street traders in a sour mood, not to mention a warning by Northrop that Hurricane Katrina will hurt its earnings. The Dow Industrials fell 54 points, or 0.5%, to 10,239.

Radio stocks couldn't buck the trend. The Radio Index fell 1.373, or 0.7%, to 195.322. As you'd expect, the day's big gainer was Jefferson-Pilot, which is not a component of our index, but rather an insurance company that owns radio and TV properties. It rose 6% on announcement of a 7.5 billion merger with Lincoln Financial. Within the radio sector, Regent fell 3.7%, Entravision 3.1% and Saga 2.6%.

Radio Stocks

**Here's how stocks fared on Monday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		39.07	+0.38	Jeff-Pilot	JP		53.81	+3.02
Beasley	BBGI		13.89	-0.19	Journal Comm.	JRN		14.61	+0.10
Citadel	CDL		14.08	+0.29	Radio One, Cl. A	ROIA		12.70	-0.09
Clear Channel	CCU		31.86	+0.25	Radio One, Cl. D	ROIAK		12.72	-0.12
Cox Radio	CXR		14.79	+0.03	Regent	RGCI		5.02	-0.19
Cumulus	CMLS		11.75	-0.02	Saga Commun.	SGA		12.87	-0.34
Disney	DIS		23.88	-0.22	Salem Comm.	SALM		18.14	-0.07
Emmis	EMMS		20.39	-0.47	Sirius Sat. Radio	SIRI		6.59	+0.17
Entercom	ETM		30.52	+0.05	Spanish Bcg.	SBSA		6.93	-0.07
Entravision	EVC		7.80	-0.25	Univision	UVN		25.60	-0.39
Fisher	FSCI		46.03	+0.26	Viacom, Cl. A	VIA		31.90	-0.09
Gaylord	GET		46.99	-0.86	Viacom, Cl. B	VIAb		31.80	-0.09
Hearst-Argyle	HTV		25.35	+0.03	Westwood One	WON		19.25	+0.09
Interep	IREP		0.51	-0.01	XM Sat. Radio	XMSR		33.30	-0.21
International Bcg.	IBCS		0.01	unch	-	-	-	-	-

Bounceback

Send Us Your Opinions We want to
hear from you.
This is your column, so send your comments to [email protected]

Channel numbering isn't the
only thing yet to be determined
about HD Radio.

Editor: Here are some questions that I don't think anyone has addressed. Will the additional HD channels a station can operate be subject to the same identification rules that the analog and primary HD channels operate under, i.e. call letters and city of license? If so, this will determine how a subchannel can be identified. And will the other FCC rules such as lottery, political, pay-to-play and obscenity regulations pertain to the sub-channels?

Robert Conrad
President
WCLV 104.9 FM, Cleveland, OH

Clarifying a previous story.

In your story "Adelstein takes anti consolidation message to Iowa" (10/7/05 TVBR #197) a correction is needed. I'm Rick Sellers, owner of KMRY(AM) in Cedar Rapids, and you misquoted Mr. Keller, of KZIA(FM), also of Cedar Rapids. Mr. Keller said he was the only FM that is locally owned. (and that doesn't include the various public FM's) I'm one of two locally owned AM stations, the other is KCRG(AM) owned by the Gazette. There also is locally owned KCJJ, Iowa City. I know what Mr. Keller said as I was a panelist at this forum! I spoke of the pitfalls often occurring with consolidation: with consolidation often comes staff cutbacks. I spoke in specific about WMT AM/FM which once were regional powerhouses with dominant ratings. I was there for 23 years. Under CC, numerous positions and services were cut, and the ratings today are less than half of what they had been on both AM and FM. Meanwhile, I purchased my own standalone AM. I know WMT AM/FM's overall gross revenue has dropped, but also of course, have come expense drops with staff cuts. My point at the meeting was that the profits probably are roughly the same, so who loses? The public.

Rick Sellers
President-General Manager
Sellers Broadcasting, Inc - - KMRY-Cedar Rapids

Radio Media Moves

Sirius taps Sabean
for Stern channels
Sirius Satellite Radio has tapped Infinity programming vet Tim Sabean as programming director of Howard Stern's two Sirius channels. Stern is expected to start on in January. Sabean will report to Scott Greenstein, President of Entertainment and Sports. Sabean starts 10/17.

York goes Fish-ing
Veteran LA radio and TV personality Jennifer York has joined Salem Communications as co-host (with Billy Burke) of "The Family Friendly Morning Show" on KFSH-FM "The Fish."

Stations for Sale

AM Opportunities
Great AM's in, SC Tennessee and SW Virginia! There are wonderful smaller markets with lots of potential. Some terms possible for solid buyer.
Cliff at Clifton Gardiner & Co (303)758-6900
[email protected]

October RBR/TVBR Digital Magazine

Ad Biz
Buyers, sellers address the 2006 radio upfront - Part II

Radio Programming
The future of the Music Business

Read RBR/TVBR in 2 simple steps:
1.Create a simple account with Zinio and download the Zinio Reader.
2. You can then download the
October Issue of RBR/TVBR

RBR Radar 2005

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

Broadcast stocks still in doldrums
Three quarters of the way through 2005, investors remain sour on radio and TV stocks, with very few exceptions. The way to make Wall Street happy, it appears, is to sell assets. If you missed the total overview and all the Radio and TV stocks yet another quarter,
RBR observation: Read 'em and weep here
10/10/05 RBR #198

Susquehanna Radio
headed to Cumulus?
The writing is still in pencil - - there was said to be ample opportunity for either deal to fall apart, or for new 11th hour bids to emerge. Citadel is the only company mentioned to be on the outside looking in at this point. A formal announcement is said to be coming this week.
RBR observation: The Cumulus rumor had already been widely reported here and elsewhere in the trade and financial press. Maybe the deal is at hand now that the "Gray Lady" has even heard about it. Adding impetus to the focus on Cumulus is word received by RBR that UBS asked for additional bids on just Susquehanna's Kansas City stations - - the one market where a Cumulus-Susquehanna combination would run afoul of the FCC's ownership limits. Susquehanna's 30-station portfolio would definitely upgrade Cumulus' presence in the top 50 markets, and would give the group's HQ staff its first opportunity to tune in an O&O from corporate headquarters in Atlanta. We are hearing some concerns from Wall Street though about whether Mr. Lew can devote proper attention to running both a public company, Cumulus, and a private one in which Cumulus would have only a minority stake.
10/10/05 RBR #198

Mullen out at
Tribune Broadcasting
After several quarters of soft revenues for its TV group, which the company has been blaming on Nielsen's Local People Meters (LPM), Tribune Company Pat Mullen has resigned. RBR observation: Pat Mullen has been one of the most vociferous opponents of LPMs. He wrote the May letter co-signed by 16 other TV groups which succeeded in getting Nielsen to temporarily delay its LPM rollout in Washington, DC and Philadelphia, although not in getting the ratings company to put the entire project on hold until it got all of its LPM markets accredited by the Media Rating Council (MRC). Mullen also testified on Capitol Hill against LPMs and in favor of Sen. Conrad Burns' (R-MT) to make MRC accreditation mandatory for any TV rating service. It will be interesting now to see if Tribune continues to be a leader in the campaign against LPMs, or if Mullen's successor - - yet to be named - - will decide to deal with the new ratings currency as a fact of life. PS: Do not be surprised to see more TV Presidents and CEOs out of work between now and end of first quarter 2006.
10/10/05 RBR #198

HD Radio Bounce Backs
Readers Input to the Industry
We asked our readers for feedback on how to number HD Radio - AM radio dial position always ends in a zero - - 1560, 570, etc. FM radio dial position always ends in an odd number. I believe in both cases, it is easier for a person to remember the dial position that way. Maybe we should do something similar for the channel numbers for HD radio. Michael B. Levine, Director of Affiliate Relations at Matrix Media Inc. - Thank you for sharing the Cox proposal. If anything has driven home the absolute mistake of out of control deregulation (mega groups) it is the continuing saga of HD Radio. The amazing invention we call Radio once belonged to all the people. Open to creativity, community service, and innovation by all. Now it appears the very fabric of the industry can be shredded and rearranged for the express personal gain of a few mega groups behind closed doors. (Would it be wise to rearrange the English Language, then allow a corporation to patent it?) Tommy Lee from Ohatchee, Alabama
10/07/05 RBR #197

Praises gains in yield per minute
Harris Nesbitt analyst Lee Westerfield, using slightly different parameters, reports that inventory reductions held fast in September. What's different about Westerfield's monthly tracking and that of Wachovia's Marci Ryvicker is that he tabulates all stations, AM & FM, for drive time in the top 10 markets, while Ryvicker tracks FM stations only, also for drive time, in the top 12 markets. RBR observation: Less is More may be a nationwide effort for Clear Channel, but it appears to vary widely in its impact on individual markets. Houston appears to be a hotbed of :30 spots.
10/06/05 RBR #196

RBR Observation: HD Radio is a chance to re-brand radio
Radio is at an important crossroads with the launch of HD Radio multicasting and RBR is calling for some creative thinking to make sure this opportunity to re-brand radio isn't missed or muddled. We presented our channel numbering proposal. We want to hear from you by email via [email protected]. We want to facilitate an industry-wide discussion of this vital issue. See our first feedback in today's Bounceback section. For full HD details read
10/05/05 RBR #195

Mandel comments on Apollo issues
I think that the Apollo Project is a great idea. It's something that advertisers want. It will be, ideally, multimedia. And ideally, these things are paid for by the advertisers and the media companies and the advertising agencies - - all of the people that would use the information. And everybody has to put in equally. Everybody has the potential to get a benefit out of Apollo, so everybody should have some skin in the game..."
RBR observation: One thing we respect about Mandel puts his money where his mouth is - period - and you always know where you stand when you go toe to toe with him.
10/05/05 RBR #195

VNU is in a Dizzy -
Will Billboard go on the block?
VNU, parent company of Nielsen Media Research, is facing a revolt by major institutional shareholders over its pending seven billion bucks deal to buy IMS Health. One possible outcome is that VNU may look at selling its trade publishing unit, including Billboard and The Hollywood Reporter.
RBR observation: Will Perry Partners step up to bid for Billboard to combine with Radio & Records? Or has Rick Perry had enough of the trade publishing business? We also have to shake our heads at 7 billion as this is a heavy price to pay for a seat at the NYSE. The entire VNU company has a lot a risk going into 2006 and our recommendation to VNU bosses - Do not wear rose colored glasses because with out focus no company can have clear vision.
10/04/05 RBR #194

Post just Opened
Local Sales Manager
Twin Cities at KFAN-AM 1130, America's premiere Sports Talk station, home of the Minnesota Vikings and Timberwolves. LSM needed at Clear Channel Radio Minneapolis-St. Paul. Have first hand experience developing direct sales with an understanding of Sports marketing and what it can do for your clients? Can you build, lead and motivate a winning Sports sales team? Got Game? Bring your winning attitude and business savvy to KFAN. -- See Radio Careers

Keep Your PC Clean

With the ever growing importance of computers in our daily lives and our businesses, it is important to remember that software and hardware often need attention too.
Rules For The Road To 2006:

1. Windows Update
(run it every two weeks)
2. Microsoft is putting out "critical" updates every month. Turn Auto-Update On. When it asks you to install the new updates - say Yes!
3. Virus Protection (make sure your system is up to date) Norton, McAfee - all flavors of the same ice cream. We like ice cream right?
4. Application Updates - Office - Lotus Notes, all software typically has updates, make sure you update your software once per month.

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