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Volume 22, Issue 201, Jim Carnegie, Editor & Publisher
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Thursday Morning October 13th, 2005
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Radio News®
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 Who got the boot at Clear Channel?
Corporate headquarters is keeping mum about who were the two employees fired as Clear Channel completed its payola probe (10/12/05 RBR #200), but RBR/TVBR sources confirm that Michael Saunders is out the door at WWPR-FM New York, where he had been Program Director. Documents accompanying Sony BMG's settlement with New York Attorney General Eliot Spitzer said record label reps had agreed to send a plasma TV and entertainment system worth several thousand dollars to Saunders, but that Sony BMG lawyers nixed the deal before the goods were delivered. Folks at WWPR weren't commenting yesterday, but were referring all calls to Clear Channel headquarters, which, as noted, wasn't divulging the names. While Clear Channel may not be naming names, stories in both the New York Times and Los Angeles Times noted that three Clear Channel employees were named in the Sony BMG documents. In addition to Saunders, KHTS-FM San Diego Program Director Diana Laird was listed as having received a flat-screen TV and Donnie Anderson, known on the air as Donnie Michaels, was listed as having received a trip to Las Vegas and a laptop computer - - however, that was while working for a previous employer, before his current job as Assistant PD and mid-day host on WHYI-FM Miami. Both Laird and Michaels still have working voice mail accounts at the Clear Channel stations, but neither returned phone calls from RBR/TVBR.
A silver lining from a cloud...or, rather, a hurricane
Not much good came out of Hurricane Katrina for anyone. But Media General CEO Marshall Morton did manage to find a couple of bright spots to mention in his quarterly Wall Street conference call, despite the significant financial loss the company suffered and the damage to some of the communities its TV stations serve. First, he noted, all of Media General's employees were uninjured by the storm. Marshall then said that the aftermath of Katrina led to establishment of some new relationships in the communities that Media General's stations serve, including some co-operative relationships with radio stations that he expects to continue into the future - - to the benefit of all parties.
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 Apple unveils Video iPod
As anticipated, Apple unveiled yesterday an iPod capable of playing videos, evolving the ubiquitous music player into a multimedia platform for everything from TV shows to music videos. Videos will now be sold alongside songs on Apple's iTunes Music Store - - including ABC-TV and Disney Channel shows. Citing the groundbreaking deal with ABC, Apple CEO Jobs said the companies will start with five shows, including ABC's "Desperate Housewives" and "Lost," as well as the new ABC drama "Night Stalker" and the two most popular shows on Disney Channel, "That's So Raven" and "The Suite Life of Zack & Cody." Current season episodes of the ABC series will be available for download from Apple's iTunes Music Store the day after they are broadcast, while the entire first season of "Desperate Housewives" and "Lost" will be available for download immediately. Current season episodes of Disney Channel series will be available for download on an ongoing basis, with selected past episodes of "That's So Raven" and "The Suite Life of Zack & Cody" available beginning immediately. Customers can purchase and download current episodes or past season episodes with just one click and view them on their PC or Mac, and Auto-Sync them onto the new iPod for viewing anywhere. "This is the first giant step to making more content available to more people online," said Robert Iger, Disney CEO. "It is the future as far as I'm concerned. It's a great marriage between content and technology and I'm thrilled about it." The new video iPod, available in black or white, will be able to play video and podcasts. A 30-gigabyte version will sell for 299 bucks and a 60-gigabyte, 399. Extra features on both versions include a clock, a calendar, a stopwatch and a screen lock. In the last fiscal quarter, the iPod accounted for nearly a third of Apple's revenue; Macintosh computers, accounted for about 44% with 1.2 million units sold.
RBR observation: First the iPod was a threat to radio listening. Now it's a threat to TV viewing. At least Disney/ABC had the foresight to step up and grab a financial stake in this new challenger to its own video programming delivery system. Publisher note: For how the iPod Grinch is about to steal more than this years TV Christmas read today's perspective at 'Carnegie Cuz Network'
 Dobson's choice: Explain on the radio
Focus on the Family honcho and radio commentator James Dobson has been trying to calm conservative misgivings over the SCOTUS nomination of Harriet Meirs, saying he had been given top level assurances - - however, they were assurances which he was unable to share in public. That is, apparently, until be did yesterday's radio show. On "Focus on the Family Commentary," an ABC Radio Networks offering carried by some 300-plus affiliates, Dobson said that he was told by White House Chief of Staff Karl Rove that President George W. Bush had a short list of candidates. However, many asked that their names be removed "...because confirmation hearings have become utterly vitriolic, bitter and undignified."
RBR observation: In the music performance biz, we'd call this a clam - - a clanking loud wrong note. Many of the questions concerning Dobson's secret were emanating from Capitol Hill, and the crux was why Dobson was getting special insider information which was not being made available to members of the Senate Judiciary Committee who will give the nominee thumbs up or down. And what Dobson seemed to be doing was whispering to his constituency that she'd be alright on issues of concern. The was no reason for anybody to even remotely deduce that he was attempting to telegraph that she was Bush's first choice or his 20th choice. The biggest clam of all is the suggestion of a horrific confirmation process after the orderly, polite and entirely dignified hearings on the Roberts nomination. Dobson is under no obligation to explain himself, but for all these reasons we believe that far less than the full story went out over Dobson's slice of radio spectrum.
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The Wall Street view on PPM
It appears Wall Street investors have pretty much the same questions as broadcasters about Arbitron's Portable People Meters (PPM) - - how much will it change ratings, who gains, who loses, and when might it be implemented? Bear Stearns hosted Arbitron Sr. VP Jay Guyther on a conference call yesterday to discuss the data obtained thus far from the ongoing PPM test in Houston. With radio ratings down in morning drive and TV viewership up, in part because PPM measures out-of-home viewing as well as in-home, one investor wanted to know whether Arbitron would pursue using PPM only for TV if radio broadcasters resist - - pretty much the opposite of the "radio first" strategy that Arbitron is currently pitching to major radio groups. But Guyther stuck to the company line, declaring that Arbitron is committed to pursuing a joint venture with Nielsen for measurement of TV.
RBR observation: Nielsen may be hesitant about PPM, but some of its clients are pushing hard for it to adopt Arbitron's passive measurement system. Even some of the most vehement critics of Nielsen's Local People Meters (LPM) have told us good things about what they've seen in the PPM data for TV in the Philadelphia and Houston tests.
 Lots of candidates for
Arbitron council seats
It appears the reorganization of the Arbitron Radio Advisory Council has sparked a lot of interest in running for one of the open seats. With the big five groups excluded from the balloting (they each get a designated seat), lots of candidates from smaller companies have filed to run for the three seats to be filled in this month's election - - one for Markets 1-50, one for Smaller Market Condensed and one for Black/Urban-Top 100 Markets. Ballots which have just been sent out must be faxed back or postmarked by October 21st to be counted.
| Here are the 24 candidates |
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Adbiz©
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ABCRN details ABC Hispanic Advantage RADAR net
The debut of ABC Hispanic Advantage in RADAR 86 reinforces ABC Radio Networks' commitment to bring to advertisers this valuable consumer group via a strong national platform. ABC Hispanic Advantage commercials reach over 5.4 million Hispanic consumers ages 12 and over in an average week. The network features a line-up of Spanish-language stations in 13 of the Top 16 Hispanic markets, including KLAX-FM Los Angeles, WSKQ-FM New York and WXDJ-FM Miami. The net has a growing list of affiliates from Spanish-language station group owners including Spanish Broadcasting System and Entravision Communications. According to the RADAR 86 survey released recently, 79% of U.S. Hispanic consumers ages 12+ listen to a RADAR network affiliate in an average week. RADAR network affiliates reach: 80% of Hispanic Adults 18-34; 79% of Hispanic Adults 18-49; 79% of Hispanic Adults 25-54.
ABC Hispanic Advantage Network RADAR 86 Results:
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Mon-Sun 6a-12mid
Avg. Rtg. (%)** |
Mon-Fri 6a-7pm
Avg. Rtg.(%)** |
| Hispanic Persons 12+ |
4.7 |
5.9 |
| Hispanic Adults 18-34 |
5.4 |
7.0 |
| Hispanic Adults 18-49 |
5.2 |
6.7 |
| Hispanic Adults 25-54 |
5.5 |
7.0 |
Lucas Group: Advertising, Marketing
and PR industries bouncing back
Lucas Group, a professional recruiting agency, reports employment in the advertising, marketing and public relations industries is regaining strength with the rise of the economy. "In the wake of 9/11, many marketing budgets were slashed," said Jamie McCann, executive senior partner and advertising recruiter for Lucas Group, Irvine. "Since then, the economy has recovered and so has our industry. Advertising and marketing companies are now looking for candidates that embrace integrated marketing approaches." Integrated marketing consists of traditional advertising, marketing and PR avenues, such as broadcast and print, as well as more recent forms of messaging, including direct response mail and more interactive, online approaches. Effective marketing today means being able to measure and track results, which means knowing the right target audience. "Candidates that are in highest demand are the ones who appreciate all mediums and know how to match the medium with the market," said McCann. "One form of marketing will not suffice. Employees must understand, appreciate and see the benefit of combining traditional approaches with surfacing interactive methods." Similarly, mid-level PR positions are opening on both the corporate and agency side because they were the positions let go first during the economic downturn. The public relations industry is gaining momentum and mirroring the same.
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Nielsen Outdoor releases
Chicago Ratings to charter clients
Nielsen Outdoor released the first-ever GPS-based outdoor ratings data measuring the Chicago market. Initially the data have been delivered to a group of advertisers, agencies, and media owners who are the charter clients who have helped design this new innovative service. After an initial period when the charter clients will be able to uniquely use the data for planning and marketing, Nielsen Outdoor will release the data to new industry subscribers. Earlier, Nielsen Outdoor formed the Global Outdoor Advisory Committee (GOAC) whose mission was to enable charter clients to effectively co-develop this new service so it met all the disparate needs of advertisers, media owners, and advertising agencies. The GOAC included industry leaders such as the Starcom MediaVest Group, Universal McCann, Mindshare, Mediacom, Clear Channel, JCDecaux, Lamar, Viacom, Van Wagner; the Outdoor Advertising Association of America and the Traffic Audit Bureau.
 "It is now time for the outdoor industry to have a comparable currency with the other measured media to enable us to seriously consider outdoor in our media planning schedules and marketing mix models" says Kate Sirkin (pictured), EVP global research director, Starcom MediaVest Group. "We welcome this early planning period for the GOAC members and encourage the industry to embrace outdoor ratings by actively pursuing not only the general Chicago data release in a couple of months, but a commitment to encourage the accelerated rollout of additional markets with Nielsen Outdoor." Nielsen Outdoor and its technology partner, RDP Associates, developed the Npod, which about the size of a cell phone. Measurements are drawn from people who carry the Npods in their pockets, purses or wear them on a belt clip while they travel on foot or in cars. The continuous GPS satellite linkage enables Nielsen Outdoor to identify where the people are located relative to the location of outdoor advertising messages; their speed and direction of travel; and the exact time of day when they passed the outdoor ad locations.
Kellogg buying in review
Kellogg has put its 500 million U.S. media buying business in review. The account is handled by Publicis Groupe's Starcom.
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| Media Business Report |
Readers think advertisers rig mag copy
The dawn of product placement in the print world has been noted of late in the trade press, but for magazine readers, apparently, it's already happened. Starcom USA has released a study of consumers which found that 65% believe advertisers are paying their way into editorial copy. According to an AdAge.com article, this is considered a no-no by an editor's trade group, but the consumers themselves don't seem to mind. Just about 83% said such mentions were appropriate. The concept is deemed more appropriate for articles on topics other than hard news.
MBR observation: There is no Greater Media than the one RBR/TVBR calls home: print. Many are just as good, like Radio; One other is television. You could go on Forever, from here to Infinity, under nimbus or Cumulus clouds, and not find a more Clear Channel to profitability. But you could travel from Salem to the Susquehanna, and whether you're a Young Fox or Gray as Granite, and you'll never catch us gratuitously mentioning radio and television companies, for pay or otherwise. Heh heh.
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RBR/TVBR Special Salute to Radio & TV
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 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
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| Media Markets & MoneyTM |
Communicom's plans Crystalize to 20M tune
Religious specialist Communicom, owner of WLNO-AM New Orleans, is adding two markets in a 20M deal with Jim Hilliard's James Crystal Enterprises. According to broker John Pierce, it's getting WLVJ-AM, on the Ft. Lauderdale side of Miami-Ft. Lauderdale FL, and senior band duopoly KXXT-AM/KXET-AM in Phoenix. Hilliard remains an active owner in Florida, and has a station in New Mexico. Piece notes that the deal marks the return to grouphood for Communicom, which formerly had stations in places like Boston, San Antonio, Philadelphia and New York.
Fetzer gets investors to pass the Sault
Wade Fetzer has struck deals with four partners which will take his stake in upstate Michigan radio group Northern Star Broadcasting from about 44% to about 92%. He'll pay almost 4.3M to grow his share in the company to lion-size. When the dust clears, he'll hold 91.7%, and W. Palmer Pyle will have 7%. Almost 45% of the company is coming from Charles F. Knight for about 3.58M; Albert E. Suter will give up about 4.5% in exchange for about 358K; Louis A. Smith and Lester B. Knight will each get about 179K for about 2.24% each. The group consists of three clusters in unrated portions of Michigan. There are two AMs and three FMs in a daisy-chain loosely based at Sault Ste. Marie; an AM and two FMs around Iron Mountain; and a two AM-three FM cluster anchored in Marquette.
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| Washington Beat |
 On the Martinized FCC
Kevin Martin returned to his roots this week, speaking at an event held in Charlotte NC, not far from where he was raised. He gave a few hints as to where he was going to be heading the Commission in the coming months. He has been an indecency hawk alongside Democrat Michael Copps (Martin is a Republican), he has long favored stiffer penalties and surer punishment for transgressors in the indecency front. However, according to the Charlotte Observer, he is now taking a closer look at using technological tools which allow parents to block objectionable or otherwise undesired programming. He also expressed an interest in further pursuing mandated regulatory tools, in particular the institution of a la carte channel menus from cable and satellite MVPD operators. Also, look for yet another attempt to allow more local co-ownership broadcast/newspaper. This is an item from the stalled 6/2/03 ownership rulemaking that Martin favored, and which the 3rd Circuit ruling only partially condemned (the court found the concept to be OK, but not the rationale for caps proposed by the FCC at the time). According to the Observer, he may begin to pursue this before year's end or early in 2006. Other FCC items on his agenda include promoting broadband and improving the public safety communications infrastructure.
Do you have a blog in this fight?
Events of the past year, highlighted by the jailing of New York Times reporter Judith Miller for refusing to revealing a source, and the coercing of testimony from other reporters on threat of jailing, has put a new focus on legislation to protect the reporter/source relationship. A federal shield law in on the docket, mirroring similar legislation in many states, with bipartisan sponsorship on both sides of the building on Capitol Hill. It seems to cover the journalistic gamut - - check this out from the Free Flow of Information Act of 2005 - - see the attachment. But key senate sponsor Richard Lugar (R-IN) told a gathering of journalists that bloggers may not be covered under the measure, according to Editor & Publisher.
RBR observation: Despite a definition that includes the dissemination of information via "print, broadcast, cable, satellite, mechanical, photographic, electronic, or other means," it seems there's still some defining going on. Might want to be careful about what you put up on your website, and who you let put it there.
| Bill language here |
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| RBR Stats |
60% of mobile ringtones driven by "realtones"
Telephia, a provider of performance measurement info to the mobile industry, reports 60% of mobile ringtone revenues are generated by realtones [a ringtone with MP3 quality sound and vocals]. Traditional mono and polyphonic ringtones comprised nearly 33% of the revenue share, while callback tones accounted for 7% of the total revenues. Telephia debuts the first ever actual audience measurement report for ringtones in its new Mobile Audio Report, which tracks purchase activity for mobile ringtones, including traditional ringtones, realtones, callback tones [the sound the caller hears when calling someone vs. the tone the caller hears on their device], and voicetones from a panel of more than 30K wireless subscriber bills. According to the Telephia Mobile Audio Report, realtones from pop divas Gwen Stefani, Destiny's Child, and Mariah Carey were favorites among mobile users. Gwen Stefani's Hollaback Girl, Cater 2 U by Destiny's Child, and We Belong Together by Mariah Carey were three of the leading realtones in July 2005. The Rap/Hip-Hop, Pop, Soul/R&B, Voice, and Alternative/Punk categories led realtone genres, comprising 76% of all realtone revenues. Rap/Hip-Hop alone accounted for a quarter of realtone revenues, with Pop and Soul/R&B posting 17% and 14%, respectively. Voicetones snatched 11% of realtone revenues, while the Alternative/Punk genre posted a 9% share.
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| Engineering |
 It was Cuba, says Ray
In a recent conversation with Tom Ray, Buckley Broadcasting VP/Corporate Director of Engineering, we asked if the FCC had ever determined what station is causing all of the nighttime Spanish language broadcasting interference to 50-kW WOR-AM NY (2/22 RBR #23) and so many others as well. It was Cuba, says Ray. The FCC was able to trace the actual interfering stations to a location in Cuba. The same for WLS-AM in Chicago. Ray is going to draft a letter to the right US Senators to see if anything can be done. "The FCC noted from one of their monitoring stations that there is a short period of interference from WAQI-AM Miami, but that goes away after a couple minutes when they power down for the evening. Then Cuba comes in. They actually pinpointed it right to the geographic coordinates. The estimated its power at a half million to a million watts. It's impacting at WOR's fringe areas, but still within the market."
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| 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].
 Rick Guest, Market Manager, East Texas Radio Group,
Tyler-Longview-Marshall, TX:
(challenge) Arbitron. The exorbitant rates they charge us for two surveys a year for questionable data. We pay Arbitron over 10,000 a month for ratings data that national & regional agencies use as the absolute truth when we know it's problematic. Looking forward, Arbitron estimates that PPM will cost 40-65% more than diaries. Do you think the agencies are going to pay for this? If Arbitron plans to gouge Radio Broadcasters even more in the future, then we may just have to pass on their dubious service. Local retailers don't care about Arbitron and we don't do enough National business to justify spending 120K+ a year. If we eliminate Arbitron we can immediately increase the total worth of our Radio Group by increasing BCF by that amount. In our market that converts to about $1.8 Million in value.
(solution) Well, depending on your market and the competition, you may be able to live without Arbitron. But, the time to find out is NOT when the contract expires. You must start weaning the sales department/national off the drug starting NOW! Here's a test. Spring book out? DON'T USE IT FOR 120 days. Can you live without it? Only your bottom line and the sales department knows for sure. (many have tried and failed)
| Read More... |
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| Transactions |
3.8M WDOS-AM & WSRK-FM Oneonta NY from Ultimate Broadcasting Network Inc. (Janet Laytham) to Double O Central New York Corporation, a subsidiary of Pilot Group LP (Robert Pittman, Robert Sherman, Terry Bond et al). 190K escrow, balance in cash at closing. Daisy-chain superduopoly with WCHN-AM/WKBT-FM/WKXZ-FM Norwich NY; WZOZ-FM Oneonta NY; WDHI-FM/FM CP Delhi NY; WDLA AM & FM Walton NY; and WIYN-FM Deposit NY, forming nine separate markets. [File date 9/15/05.]
10K WSFB-AM Quitman GA from Jim Chion to Scott Matheson. 500 escrow, balance in cash at closing. 2.5K allocated to non-compete. LMA until closing. [File date 9/15/05.]
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| Stock Talk |
Down, down, down we go...
Apple announced its new video iPod, but also lower-than-expected earnings, so the tech sector dragged the stock market lower. Media stocks were also hit, as Deutsche Bank lowered its rating on Gannett and JPMorgan dropped its rating on Tribune. The Dow Industrials dropped 36 points, or 0.4%, to 10,217.
The Radio Index fell to another year-to-date low, dropping 2.128, or 1.1%, to 189.246. Spanish Broadcasting System was down 3.3%, Journal 2.3% and Cumulus 2.2%.
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| Radio Stocks |
Here's how stocks fared on Wednesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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38.25
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+0.20
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Jeff-Pilot
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JP
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52.49
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+0.12
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Beasley
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BBGI
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13.74
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+0.08
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Journal Comm.
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JRN
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13.83
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-0.32
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| Citadel |
CDL |
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13.97 |
-0.17 |
Radio One, Cl. A
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ROIA
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12.24
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-0.18
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Clear Channel
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CCU
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31.11
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-0.62
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Radio One, Cl. D
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ROIAK
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12.21
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-0.19
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Cox Radio
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CXR
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14.33
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-0.20
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Regent
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RGCI
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4.98
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+0.03
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Cumulus
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CMLS
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11.13
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-0.25
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Saga Commun.
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SGA
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12.22
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-0.16
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Disney
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DIS
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23.34
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-0.43
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Salem Comm.
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SALM
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17.84
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-0.21
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Emmis
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EMMS
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19.64
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+0.02
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Sirius Sat. Radio
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SIRI
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6.30
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-0.12
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| Entercom |
ETM
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29.65
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-0.41
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Spanish Bcg.
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SBSA
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6.51
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-0.22
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Entravision
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EVC
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7.36
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-0.14
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Univision
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UVN
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25.09
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-0.40
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Fisher
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FSCI
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45.91
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+0.05
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Viacom, Cl. A
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VIA
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30.93
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-0.51
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Gaylord
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GET
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44.86
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-1.14
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Viacom, Cl. B
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VIAb
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30.80
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-0.55
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Hearst-Argyle
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HTV
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24.09
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-0.17
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Westwood One
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WON
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18.75
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-0.26
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Interep
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IREP
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0.52
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-0.03
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XM Sat. Radio
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XMSR
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31.32
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-1.10
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International Bcg.
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IBCS
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0.01
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unch
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-
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-
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- |
-
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-
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Bounceback
|
 We want to
hear from you.
This is your column, so send your comments to [email protected]
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Share The Voice
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'Today's Perspective'
Christmas Marketing of Biblical Proportion -
iPod now with Video.
www.jimcarnegie.com
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Stations for Sale
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Western Colorado Powerhouse
100,000 watt C1, Scenic high growth area, new RF plant & coverage, Positive CF, big upside potential, $1.5m -- Call 970 250 9611
[email protected]
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]
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More News Headlines
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NJ broadcasters help hurricane-damaged brethren
State broadcaster associations across the nation are stepping up to help small market stations in Louisiana and Mississippi rebuild their facilities destroyed by Hurricanes Katrina and Rita. In once such move, the New Jersey Broadcasters Association (NJBA) has made a contribution of 10K bucks, to be split between the two states. "We feel it's crucial to assist these small market gulf-area broadcasters not affiliated with any larger group in getting back on their feet, so they can continue doing what they do best, serve their local communities. Without local news that's immediately accessible in emergencies, school closings, weather and traffic, communications breaks down totally," said NJBA President Philip Roberts.
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October RBR/TVBR Digital Magazine
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Engineered For Profit
2006 budgets and capital expenditures examined.
Media Markets & Money
Has the bid/ask gap narrowed?
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
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RBR Radar 2005
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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Learn from Gannett's admission
Double digit quarter for Gannett that's not a positive. We're talking TV division revenues down 19.3% to 166.4 million and operating cash flow down 35.2% to 69 million. There was no positive movement in the vital auto sector for either TV or newspapers. Gannett is in the hunt for any TV and newspaper properties that come on the market. However, he said paying 16 times broadcast cash flow for a well run TV station just doesn't make sense.
RBR observation: While Gannett doesn't own radio stations any more, folks in radio should also be concerned about Dubow's comments on the lack of momentum in the auto sector. Until auto gets back in gear, it's going to be tough to grow core revenues significantly in radio or TV. We would note that one group owner recently noted that dealers' used car lots are overflowing as a result of trade-ins from the automaker's employee-pricing campaigns. If your station isn't working the "pre-owned" sector, that's one area worth looking into.
10/12/05 RBR #200
Infinity cans corporate
research staffers
Infinity Broadcasting has fired its corporate research department, including Tony Jarvis, EVP/Research; Cindy Rosenblum, Research Director/Programming and Marketing; and Pixie Seth, Research Analyst. No comment from Infinity on why. RBR observation: Can only speculate - Money and Margins.
We all knew what to expect after reading Gannett's monthly reports. What's of most concern, though, were Dubow's comments on the lack of momentum in the auto sector. Until auto gets back in gear, it's going to be tough to grow core revenues significantly in TV. We would note that one group owner recently noted that dealers' used car lots are overflowing as a result of trade-ins from the automaker's employee-pricing campaigns. If your station isn't working the "pre-owned" sector, that's one area worth looking into. We have seen two TV Presidents out of work due to what we assume similar problems - and TVBR sees more heads rolling because someone has to take the bullet.
10/12/05 RBR #200
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. 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. 10/11/05 RBR #199
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. 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. But we're still looking for more ideas and feedback on the various proposals.
10/11/05 RBR #199
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. RBR observation: 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? Look for a special Your Public File report that you need to have inside your station soon from RBR but for members only. RBR's job is to cover your back and do the hard work for ya.
10/11/05 RBR #199
The grass isn't any greener
If you read our dismal report on how poorly radio stocks have performed through the first three quarters of this year, 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. RBR observation: Now the air is getting shorter to inhale in TV as radio has been short of breath since 2002. If you can not run them then you can not expect to see growth. Eventually the public will be the judge and jury.
10/11/05 RBR #199
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
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
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