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Volume 22, Issue 205, Jim Carnegie, Editor & Publisher

Wednesday Morning October 19th, 2005

Radio News®

Infinity launches Jay Severin, not Free FM
Don't look for Infinity to launch 22 "Free FM" FM talk stations across the country, as was the rumor printed yesterday by Inside Radio, owned by Infinity's rival Clear Channel. Rather, Infinity CEO Joel Hollander told RBR the rumor had much more to do with launching Jay Severin from WTKK-FM Boston on four more stations. Yes, Infinity has registered website URLs for "Free FM," but that was apparently just for protection - - not for any imminent launch of stations using that moniker. Former political advisor Jay Severin's three-hour weekday talk show will add KRLD-AM Dallas, WPHT-AM Philadelphia, WJFK-FM Washington, D.C., and KMOX-AM St. Louis beginning Tuesday, January 3, 2006. The show will be a smart, fast, thoughtful, provocative, high-energy insight and opinion program on the hottest issues of the moment, including challenging one-on-one discussions with listeners. For 20 years, Severin was in private practice as a national political and media consultant, advising candidates and incumbents in major campaigns for Governor, US House, U.S. Senate, and President. Severin is a former MSNBC political advisor, appearing frequently on various NBC News programs, and also was a featured columnist for MSNBC.com. His extensive media work also includes contributions to the BBC, CBS, ABC, PBS, CNBC, CNN, and foreign television networks.

RBR observation: The big issue that Infinity still needs to deal with is what its 22 stations are going to run come January 3rd in the morning drive slot where they now carry Howard Stern. There have been plenty of rumors, but so far no official announcements. Advertisers are already making Q1 buys and sales execs for those stations can't even tell potential ad buyers what's going to be on the air. But with Severin on key stations mentioned above this also brings the speculation and talk around the water coolers that Infinity will launch a new Hot Talker network. Seems the talk or the game plan with Infinity is getting out of the starting gate first as again the speculation has Clear Channel ready to toss the switch on a similar Hot Talk FM network. Ah, don't touch that dial - Stay tuned with us as this is in RBR's power rotation.

Radio holds up, TV soft at Journal
Radio managed a tiny revenue gain in Q3 at Journal Communications, inching up 0.8% to 22 million. But that black ink could soon be replaced by red, since CEO Steve Smith says Q4 is softer. He was, however, enthusiastic about the company's developing clusters, with growth continuing in Tulsa, Springfield (MO), Knoxville and Boise. Meanwhile, the triple whammy of no political, no Olympics and lower NBC ratings drove TV revenues down 16% to 18.5 million, with more of the same expected in Q4. Journal Communications President Doug Kiel noted in the company's conference call that the TV group reduced costs by 6% in Q3, with more cost-cutting planned in Q4. Without political and Olympics-related advertising to put pressure on inventory, Kiel said the company had less ability to drive rates. Meanwhile, he says Journal is focused on developmental revenues - - bringing in new business at the local level. Although Journal doesn't have any broadcast properties in the areas hit by Hurricane Katrina, it took a financial hit. The company recorded a pre-tax cost of 1.6 million related to uncollectible receivables, operating losses and building damages to its Journal Community Publishing Group's businesses in Louisiana. One printing facility was so badly damaged that the company plans to close it and relocate its equipment elsewhere. That's expected to lead to a further write-off of 2.9-3.4 million in Q4.

RBR observation: One analyst wanted to know why Journal's TV revenues were being impacted more negatively by NBC's woes than its peers. Kiel said that was easy to explain - - WTMJ-TV (Ch. 4) Milwaukee is so much larger than Journal's other stations that it has a disproportionate impact on overall TV numbers. And since it is an NBC station, the network's falling ratings and the lack of last year's Olympics ad sales have had a big impact. That will change a bit with Journal's pending purchase of three stations from Emmis (Fox, ABC & CBS affiliates), which will increase TV group revenues by about 50% and dilute the impact of WTMJ, although it will still be the group's top biller. By the way, even with the pending 235 million bucks purchase, Smith says Journal will be able to continue its share buyback program.

Viacom speeds up split
Having previously said it expected its split into two companies - - CBS Corporation and New Viacom - - to occur in Q1 of 2006, Viacom has now speeded up the time table. The company said yesterday afternoon that it now expects the split to take place by the end of Q4 2005. As previously described, CBS Corporation will consist of the CBS Television Network, UPN, Infinity Broadcasting, Viacom Outdoor, Viacom Television Stations Group, Paramount Television, King World, Simon & Schuster, Showtime and Paramount Parks. The new Viacom will include MTV Networks (MTV, VH1, Nickelodeon, Nick at Nite, Comedy Central, CMT: Country Music Television, Spike TV, TV Land and many other networks around the world), BET, Paramount Pictures, Paramount Home Entertainment and Famous Music.

Up quarter for NextMedia
Other broadcasters may be crying about soft ad revenues, but with its smaller market and suburban focus, NextMedia saw pro forma radio revenues rise 4.9% in Q3 to 2.16 million and broadcast cash flow (BCF) was flat at 8.8 million. Outdoor did even better, with revenues jumping 19.4% to 12.3 million and BCF up 18.6% to 5.1 million. For the company as a whole, pro forma net revenues were up 9.7% to 33.9 million and BCF rose 6.1% to 13.9 million. NextMedia is privately owned, but has public bonds.

Pence makes defense for federal shield
"Our liberty cannot be guarded but by the freedom of the press." Those are not the words of Rep. Mike Pence (R-IN), but he did bring them up in an address to attendees at an event during National Freedom of Speech week. The words were spoken by Thomas Jefferson, and were pertinent since Pence is one of the two bipartisan House sponsors of a federal shield law which would put into law a reporter's right to protect a confidential source. Pence called the bill "...an opportunity for Congress to repair a hole in the fabric of the First Amendment in America today." Noting that most states have such a law, he said that for the longest time the First Amendment itself was thought sufficiently strong to cover source confidentiality, but a Supreme Court ruling back in the 70s weakened it. SCOTUS's ruling at the time was partly because there was nothing specifically on the books, and Pence said the Court, in its opinion, practically said, "Congress could certainly create that - - hint, hint." He said his Indiana delegation colleague and Senate co-sponsor of similar legislation, Richard Lugar (D-IN). They are joined in sponsorship by Democrats Chris Dobb (D-CT) in the Senate and Rick Boucher (D-VA) in the House. He said that the issue was not a matter of liberal or conservative, but that as a conservative he believes the only check on the use and/or abuse of government power is a free and independent press. The Senate Judiciary Committee takes up the issue today. The event was sponsored by the National Association of Broadcasters Education Foundation and The Media Institute.

McCain in the neck?
Senator wants to speed DTV
John McCain (R-AZ) has long been a proponent of forcing television broadcasters to return spectrum being used for side-by-side analog/digital over-the-air operation. The current moral reason for such a stance is the rapid provision of much-needed spectrum for America's emergency first responders. However, it goes deeper than that - - he has seen the spectrum as a boondoggle under which broadcasters have free use of a national resource belonging to the American public. He is former Chairman of the Senate Commerce Committee - - and still a vocal member of that committee. It is taking up establishment of a hard deadline for the return of spectrum, with current Chairman Ted Stevens (R-AK) has tentatively set at 4/7/09. Word is that McCain may press for a date in late 2006 or early 2007, and may use Thursday's (10/20/05) mark-up as a platform to introduce an earlier date.

RBR observation: McCain's claim that the double spectrum regimen is some sort of scheme dreamed up by the NAB and sold to the politicians he thinks it has in its back pocket has always been absurd. It was absolutely necessary to introduce the new technology while preserving the old during the transitional period, just as it's ludicrous to expect that every citizen in a market would run right out and buy a digital receiver the minute the first DTV station was operational. What broadcasters got was a second overhead outlay without the compensation of opening a corresponding revenue stream. The dual operation was an expense borne by broadcasters to make the transition possible. And if Stevens is right in his assertion that the equipment doesn't yet exist for first responders to begin using their earmarked spectrum, then moving up the deadline for that reason is also absurd.

Conference Calls 2005

Journal by the numbers
Here's what Journal Communications reported for Q3.

**Journal Communications, Q3 2005**
($ in millions)
Segment	Revenues	Change	Operating earnings	Change
Radio	22.0	0.8%	6.2	4.9%
TV	18.5	-16.3%	1.0	-83.1%
Broadcast total	40.5	-7.8%	7.2	-39.0%
Publishing	81.9	0.0%	10.4	-5.3%
Telecommunications	33.8	-5.4%	4.9	-43.3%
Printing services	17.3	-3.9%	0.6	*
Entire company	184.6	-2.5%	24.2	-22.6%

* up 1.3M from a loss of 0.7M

Adbiz©

Readers respond to Home Depot-spot radio issue
Our readers chimed in with opinions on Home Depot's switch from spot radio to network radio and the effect it and other similar moves may have on radio's bottom line.
| Read the first set here |

Jeep launches "The Mudds"
interactive marketing campaign
Jeep brand announced today it will launch an interactive advertising campaign for the all-new 2006 Jeep Commander called "The Mudds." The new campaign will begin on October 24, and coincide with the arrival of the Jeep Commander into dealerships nationwide. To meet the Mudds, go here. The Mudds are an active, well-adjusted family of five that enjoys an adventurous Jeep lifestyle. Mr. Brock Mudd and Mrs. Tracey Mudd have three children -- Summer (age 17), Victoria (age 13) and Clay (age 11). They appear to be a quintessential family of five, except for the fact the entire family is ... yep you guessed it ... covered in mud. Consumers will get to know the family as they travel through humorous situations in their all-new 2006 Jeep Commander. The Mudd's story will elaborately unfold over several weeks with bi-weekly Webisodes, biography pages, screensavers and wallpapers. Consumers also will have the opportunity to learn about the Mudd's adventures by reading Victoria's own blog. In addition to getting to know the family in a virtual world, the Mudds also will make appearances at various events across the country.
| Read More... |

Media Business Report

All the news that sings...
Salem Publishing, a division of Salem Communications, announced a deal to acquire The Singing News Magazine and its related Internet properties. The acquisition is expected to close in January of 2006. Founded in 1969 by gospel music legend J.G. Whitfield, The Singing News Magazine is known as "the printed voice of southern gospel music" and is regarded as the most widely read monthly magazine in Christian music. Jim Cumbee, president of Salem Publishing, said "The acquisition of The Singing News strengthens Salem's position as the nation's preeminent publisher of Christian music magazines. The Singing News fits perfectly into our family of titles, including Homecoming Magazine and CCM Magazine." Terms of the sale were not disclosed. Maurice Templeton, publisher of The Singing News Magazine, has been majority owner of the monthly magazine since 1986.

Media Markets & MoneyTM

Close encounters all over
Considering that we are in somewhat of a lull when not all that many station transactions are being forged, there sure do seem to be a lot of deals going to closure. Here's a batch we've just heard about. * Greg Guy of Patrick Communications and Mark Jorgenson of Jorgenson Broadcast Brokerage got together to help sell WMVO-AM/WQIO-FM from Clear Channel to Tom Klein's BAS Broadcasting. The deal was valued at 2M. * Frank Boyle's efforts to help Inner City Broadcasting sell its Miami AM, WSRF-AM to Niche Broadcasting have come to fruition. The 1.75M deal give Niche an AM duopoly with WAVS-AM. * Jody McCoy and Tom McKinley of Media Services Group report that keys have been exchanged for KIOD-FM & KSWN-FM in McCook NE. G.I. Family Radio paid 1.3M to Austin McCook LLC for the duo. * John Piece checked in to tell us that Educational Media Foundation has closed on its 650K acquisition of WCVJ-FM Jefferson OH from Agape School Inc. The station is on the outskirts of Cleveland in the northeast corner of the state. * Jimmy Swaggart's Family Worship Center has closed on its 500K acquisition of KQUJ-FM Ada OK and KSSO-FM Norman OK from the Sister Sherry Lynn Foundation, according to David F. Reeder of American Media Services, who handled the deal.

Washington Beat

Busy day at the Senate Judiciary Committee
The Senate Judiciary Committee has a full plate today - - a plate full of implications for many of our readers. In the morning, the committee will hold a hearing called "Reporters' Privilege Legislation: An Additional Investigation of Issues and Implications," complete with a star witness, the recently unincarcerated Judith Miller of the New York Times. Joining her on the panel will be ABC News President David Westin, Joseph E. diGenova of diGenova & Toensing LLP, Philadelphia Inquirer Managing Editor Anne Gordon, The Patriot-News (Harrisburg PA) Editorial Page Editor Dale Davenport, and Steven D. Clymer, Professor of Law at Cornell Law School. They make up Panel 2. Chuck Rosenberg, United States Attorney for the Southern District of Texas will solo on Panel 1 on behalf of the DOJ. Chairman Arlen Specter (R-PA) will preside. * Then at 2:00 in the afternoon, the Subcommittee on Antitrust, Competition Policy and Consumer Rights, with Mike DeWine (R-OH) on the gavel, with consider "Video Competition in 2005 - - More Consolidation, or New Choices for Consumers?" Witnesses have been culled from the MVPD community, with Consumer Federation of America's Dr. Mark Cooper representing the watchdog community. Joining him on the panel will be NCTA President and CEO Kyle McSlarrow, Glenn Britt or Time Warner Cable, Walter McCormick, Jr. of the United States Telecom Association, Doron Gorshein of The America Channel, Peter Aquino of RCN Corporation and Scott Cleland of Precursor.

Programming

XM to offer Fox News Talk channel
XM Satellite Radio will expand its talk radio programming with the launch of FOX News Talk Channel in January 2006. The new channel will offer news, analysis and commentary from FOX News personalities Bill O'Reilly, Tony Snow, John Gibson, and Alan Colmes, among many others. FOX News Talk is the latest addition to XM's robust line-up of talk radio programming, which offers a broad variety of news, information and opinion. Additionally, it will give listeners another chance to hear the primetime FOX News Channel programs, including The O'Reilly Factor, Hannity & Colmes and On The Record with Greta Van Susteren.

Transactions

97.5M WDWB-TV Detroit from WXON License Inc., a subsidiary of Granite Broadcasting Corporation (W. Don Cornwell) to AM Broadcasting WDWB Licensse LLC, a subsidiary of AM Media Holdings (Kenneth R. Brotman). 96.25M cash at closing, 1.25M stock. Includes non-compete. Station is WB affiliate on Channel 20 (DTV 21). [File date 9/21/05.]

82.5M KBWB-TV Detroit from KBWB License Inc., a subsidiary of Granite Broadcasting Corporation (W. Don Cornwell) to AM Broadcasting WDWB Licensse LLC, a subsidiary of AM Media Holdings (Kenneth R. Brotman). 81.25M cash at closing, 1.25M stock. Includes non-compete. Station is WB affiliate on Channel 20 (DTV 19). [File date 9/21/05.]

26M KKLD-FM Flagstaff-Prescott Valley AZ (Prescott Valley AZ ) from 3 Point Media - Prescott Valley LLC (Bruce Buzil) to Sunburst Media - KKLD LLC (John Borders). 1.5M escrow, balance in cash at closing. [File date 9/22/05.]

Stock Talk

Inflation fears deflate stocks
A jump in the government's index of inflation at the wholesale level cast a dark shadow over Tuesday's stock trading. The Dow Industrials declined 63 points, or 0.6%, to 10,285.

Radio stocks fell as well. The Radio Index hit another year-to-date low, falling 1.781, or 0.9%, to 187.405. Wall Street didn't like the Q3 report from Journal Communications, which fell 3.4%.

Radio Stocks

**Here's how stocks fared on Tuesday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		37.90	-0.60	Jeff-Pilot	JP		52.79	-0.11
Beasley	BBGI		13.81	+0.01	Journal Comm.	JRN		13.40	-0.47
Citadel	CDL		13.66	-0.14	Radio One, Cl. A	ROIA		11.59	-0.15
Clear Channel	CCU		31.41	-0.09	Radio One, Cl. D	ROIAK		11.60	-0.16
Cox Radio	CXR		14.10	-0.08	Regent	RGCI		5.02	-0.03
Cumulus	CMLS		11.00	-0.25	Saga Commun.	SGA		12.36	+0.04
Disney	DIS		23.39	-0.10	Salem Comm.	SALM		17.69	-0.30
Emmis	EMMS		19.36	-0.50	Sirius Sat. Radio	SIRI		5.97	-0.18
Entercom	ETM		28.21	-0.46	Spanish Bcg.	SBSA		6.63	+0.03
Entravision	EVC		7.33	-0.10	Univision	UVN		24.93	-0.32
Fisher	FSCI		45.10	-0.23	Viacom, Cl. A	VIA		31.04	-0.12
Gaylord	GET		43.30	-1.31	Viacom, Cl. B	VIAb		30.90	-0.15
Hearst-Argyle	HTV		24.04	-0.06	Westwood One	WON		18.53	-0.06
Interep	IREP		0.52	+0.01	XM Sat. Radio	XMSR		30.75	-0.87
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]

Radio Media Moves

Gerberding
to access Access.1
Former Arbitron and Nassau Media Partners/Nassau Broadcasting Partners executive Joan Gerberding has joined Access.1 as Director of Radio Operations. She'll be in charge of daily operations and strategic growth at Access.1's soon to be 28 radio stations, including seven being acquired from Nassau Broadcasting Partners.

Cocker to Twin Cities
Long-time Chicago air personality Ken Cocker is relocating to Minneapolis-St. Paul to host mornings on Infinity's WLTE "102.9 Lite FM."

WPEN signs
a team player
Former Philadelphia Eagles and Denver Broncos wide receiver Vaughn Hebron is joining the on-air staff of Greater Media's WPEN-AM Philadelphia. Hebron also has media experience, having been a sports analyst on Comcast Sports Net.

McGuinn goes to school
Former PD of the defunct Philadelphia modern rock station WPLY (Y-100) Jim McGuinn has joined Drexel University to teach music industry students about the radio business. McGuinn also serves as faculty advisor for Drexel's student-run radio station WKDU-91.7 FM. At Drexel, McGuinn will also assist in the promotion of MAD Dragon Records, the University's student-run record label.

Stations for Sale

New Listing:
California Central Coast
Class A FM. Rated Market.
Asking $1.5M w/terms available.
Brett Miller, MCH Enterprises, Inc
(805) 237-0952 www.mchentinc.com

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]

More News Headlines

Bill O'Reilly hires bodyguards, may retire?
"Now it's so bad that I spend an enormous amount of money protecting myself against evil," declares Fox News Channel's Bill O'Reilly, who says his enemies have become so vicious that he's mulling retiring from his top-rated TV show, reported Newsmax yesterday. He has also hired bodyguards to protect himself. The liberal media establishment is mostly behind the rising tide of hatred because "it can't marginalize me," O'Reilly told Newsday's Verne Gay in a rare interview published Tuesday. Gay writes: "Almost exactly a year since he settled a sexual harassment lawsuit with former Fox News producer Andrea Mackris, the embattled life of O'Reilly has become an increasingly strange and scary one." O'Reilly told Newsday that he receives death threats and has to hire bodyguards. He can't check into hotels with his family. People on the street take his picture with their cell phones and then post it on the Web. "Who wants to live like that?" he complains. As a result of the lawsuit settlement, O'Reilly must have a third person present whenever he conducts an interview or speaks to someone on the phone. "Anyone can accuse me of anything and it's on a Web site," he said in the interview. Gay writes: "So little wonder that when Bill O'Reilly is asked about his future after his current contract ends a little more than two years from now, he blurts out one word even as the question is asked: 'Retirement.'" But then O'Reilly backpedaled somewhat: "I might. I might. There's only so much aggression you can absorb."

OFFICIAL COURT NOTICE OF INTENDED RESCISSION OF SALE OF WBIX (1060 AM) RADIO STATION

A hearing to consider the proposed rescission of WBIX has been set for October 24, 2005. All objections must be raised at the hearing, which shall be held at the U.S. District Court in Boston, Massachusetts.

Important:
You must act by October 24, 2005

| Go here for official court notice |

RBR Radar 2005

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

Affiliates fret about iPod deal
Disney/ABC may be embracing new media with last week's deal to sell video downloads for Apple computer's new video iPods, but what' in it for ABC Television affiliates? Nothing, apparently, and the affiliates are letting the Mouse House know they are none too pleased about it. A letter to Disney management from its affiliate association board of governors complained that the affiliates weren't even consulted about the deal, let alone included in a share of the proceeds. TVBR observation: The dollars, at this point, don't amount to much, but the affiliates know that will change in time. It's hard to imagine that large numbers of people will want to watch half hour or hour shows on tiny iPod screens after shelling out big bucks for a plasma set at home. But iPod downloads now could lead to hi-def downloads for full-size screens in the future. The affiliates are correct in deducing that if they're going to get a share of the proceeds, they're going to have to act now. Otherwise, the value of their network affiliations will gradually erode. Can not say RBR/TVBR did not warn you well in advance.
10/18/05 RBR #204

Stern blasts CBS
Sirius Media Blitz begins
As the countdown begins for his New Year's move to Sirius Satellite Radio, Howard Stern has charged that his current employer, Viacom's Infinity Radio, has it in for him.
RBR observation: The two rejected Sirius ads apparently went afoul of CBS rules for different reasons. Only one was turned down because it promoted offensive language. The other was bounced because it was overly disparaging of terrestrial radio. That's not because CBS's parent company also owns radio stations. The network's standards and practices rules forbid one company in any field from overly disparaging a competitor in its advertising. Howard is grabbing the Press and look out as Stern hits the TV talk show circuit.
10/18/05 RBR #204

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.

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