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Volume 22, Issue 207, Jim Carnegie, Editor & Publisher

Friday Morning October 21st, 2005

Radio News®

Rehr is the man for NAB
This should come as no surprise, since RBR/TVBR reported nearly a month ago that David Rehr had won the contest to succeed Eddie Fritts as President and CEO of the National Association of Broadcasters (9/29/05 TVBR #191). It took a while to get a unanimous recommendation from the selection committee, but once that came about members of the NAB Joint Board received the Rehr thumbs up from the committee in a telephone conference call yesterday afternoon. As previously reported, there had also been some details to work out with Rehr's lawyer on the contract. But that's all been settled and the official announcement came from NAB late yesterday. "We conducted an exhaustive search to locate the absolute best person we could find to retain NAB's leadership as one of the preeminent trade associations in Washington. David Rehr fits that description in every way," said Phil Lombardo, CEO of Citadel Communications, who co-chaired the selection committee with David Kennedy, CEO of Susquehanna Media. "David's track record of success is well-documented, and we are confident that he has the talent to represent over-the-air broadcasting inside the Beltway and around the world with distinction. Just as the Search Committee rallied around this selection, I'm convinced that all of our industry colleagues will also find David Rehr the right person to lead NAB," said Kennedy. Rehr, who's 46, has signed a multi-year contract and will begin his new post at NAB on December 5th. "It is an honor to be selected to serve as President and CEO of the National Association of Broadcasters. I know that I have big shoes to fill, and I am anxious to hit the ground running. I look forward to continuing the great work of radio and television broadcasters on Capitol Hill and in the public arena," Rehr said. People in radio and TV may not know him yet, but Rehr is already a well known face on Capitol Hill, where he was once a congressional staffer. He's been President of the National Beer Wholesalers Association since 2000, after previously being Sr. VP of Government Affairs. By the way, should we call him "Dr. Rehr?" He does have a PhD in economics from George Mason University.

RBR observation: The best of Rehr's qualifications is his age - 46 years young and can go the distance for a good 15 years. Much has changed in Washington since the last time there was a change at the top of the NAB. Eddie Fritts himself said the organization needed a Washington insider to succeed him. There's no more time for on-the-job training in today's fast-paced world of inside-the-beltway politics. Rehr is as connected as you can get in DC without being an actual Member of Congress. He's particularly well connected to top leaders on the GOP side, which currently controls the House, Senate and White House, but he no doubt has folks who'll take his calls on the Democratic side as well. After all, he needed their votes too on beer legislation. What we've heard is that virtually everyone on the selection committee was really impressed by the guy, but that one member held out. We hear it was Russ Withers. And we hear that David Field was the main one who convinced the holdout that the committee had vetted the candidates thoroughly and that Rehr was the best man for the job. Neither Withers nor Field were returning our phone calls yesterday.

Morris bullish on PPM
Arbitron is preparing to soon release information on its twin-panel comparison in the Houston Portable People Meter (PPM) test and CEO Steve Morris says he also expects the Media Rating Council (MRC) to wrap up its PPM audit. Then, he says, the company will get serious about getting radio groups to sign contracts for a PPM rollout. He's also working closely with Nielsen and expecting a decision on whether the TV ratings company will enter a PPM joint venture to use PPM for radio, TV and cable ratings, which would lower costs for each subscriber. Of course, Arbitron has already been touching base with major radio groups on a potential roll-out schedule and pricing for PPM. "Nobody grabbed a pen and said 'let me pre-sign.' But I think the responses of the people involved in the test were essentially positive, and yet holding open the fact that there are milestones in front of us, particularly the MRC audit and there is the Clear Channel RFP in which all submissions from around the world will come in and be looked at," Morris noted. But the Arbitron CEO tried to spin the Clear Channel request for proposals as a positive to push the radio industry toward accepting PPM. Morris estimated it would take at least three years for any other passive measurement system to be ready for deployment in the US, while PPM is ready to go. And he called Clear Channel the "most impatient" to move away from diaries. The way Morris sees it, the radio industry is unlikely to want to use PPM first, then start rolling out a different electronic measurement system a few years later.

RBR observation: The word we hear is that Aribtron has yet to or not willing to share the Houston TV data with Nielsen. If there is an anticipation factor of an Arbitron - Nielsen agreement real soon, then share the data and RBR will report on what the out come is. Radio support - Picking up a pen and signing on the dotted line it will come down to price. Not that most broadcasters are not willing but most are not willing to the point of an increase where no ROI can be obtained. On an alternative service - If broadcasters are waiting for a contender your best bet is wait for Rocky VI next year because the financial toll is next to impossible for any new service duplicate what Arbitron has accomplished to date. Find common ground like maybe revenue sharing. Calling Clear Channel the "most impatient" - No argument from RBR. Last word of advice - Technology waits for no one.

Spitzer demolishes
"Freedom Tower" mint
National Collector's Mint has been ordered by the New York's Supreme Court to pay nearly 370K in civil penalties and to honor all requests for refund or order cancellation as a result of accusations brought forward by New York AG Eliot Spitzer, according to the Associated Press. At issue as "2004 Freedom Tower Silver Dollar" commemorative coins, advertised as being created with ".999 pure silver recovered from ground zero." The company was charged with fraud, false advertising and deceptive business practices. Spitzer was looking for a 2M civil penalty, and NCM was trying for a reduction all the way down to 11K. It's said to have already given refunds and canceled orders valued at a total of 2.2M. The deception was the claim that the coins were a "legally authorized government issue silver dollar." They weren't. The issue of whether of not the silver in the coins was actually from ground zero was not broached in court. Spitzer said, however, that the coins - - priced at 39.95 and sold at 19.95 - - had a raw metal value of about a cent and a half.

More Commerce Committee Action
In addition to the DTV bill, the Commerce Committee sent to other bills on their way to the Senate floor, both without objection. S. 1753 "The Warning, Alert, and Response Network Act" will cause all possible forms of communications, all the way down to sirens, to be utilized in the event of a natural or man-made disaster. Television warnings are now commonly in use. Work will begin to add terrestrial and satellite radio, the Internet, cell phones and blackberries into the mix. The other bill is S.967, "The Truth in Broadcasting Act of 2005." It requires that all government-produced video or audio releases are so identified, and that the infamous "Karen Ryan reporting from Washington" tagline be replaced by "Karen Ryan speaking for the Department of Health and Human Services" or whatever is applicable. The bill establishes as a point of law that responsibility for identifying the source of such communications rests with the government and not with broadcasters.

DTV-Day moves toward a date certain
The Senate Commerce Committee read out a DTV bill which establishes the deadline for the return of analog spectrum by television broadcasters of 4/7/09, as expected. An amendment from John McCain (R-AZ) which would have moved the date forward two years, to 4/7/07, was defeated. The bill is based on CBO estimates that the auction of that spectrum will bring in 10B (although many private estimates place the windfall much higher, to as much as 30B). The first 4.8B will go to budget resolution. After that, up to 3B will be allocated to providing set-top boxes for analog televisions - - and although reports prior to today's session had suggested that total may be challenge, no amendments to the figure were offered. Another $200M will be allocated to converting TV translators and LPTVs to digital, with further money headed for various emergency communications programs. As it stands, any cash taken in over and above 10B will go to deficit reduction. Committee Chairman Ted Stevens (R-AK) was able to defuse the McCain amendment, promising along with Ranking Member Daniel Inouye (D-HI) to set in motion a plan under which first responders could borrow against the anticipated 10B take to begin developing and purchasing new equipment so that they are ready to take advantage of new spectrum the instant it becomes available.

RBR observation: Stevens made no bones about the fact that the committee was considering a stripped-down bill. Many contentious issues were set aside for separate consideration, not the least of which is the issue of multicast must carry. Stevens promised to get into the next round of DTV legislation as early as next week. As for the DTV bill part one, it's on to the Senate floor, then conference committee, then the White House.

Oregon stations airing warnings about "Katrina" cars
New and used cars that sat in stagnant Gulf floodwaters might create the latest victims of Hurricane Katrina. That's if flood salvaged cars make their way to Oregon for sale to unsuspecting consumers. Members of the Portland Metro New Car Dealers Association expressed their concern in a recent meeting with Portland Radio broadcasters. As a result, all of the members of the Portland Area Radio Council (PARC) agreed to broadcast messages alerting the public about this potential consumer fraud. While it might appear fine initially, eventual problems are inevitable, from diminished wear of engine parts, failing electric systems, compromised computers and recurring mold and mildew. According to Greg Remensperger, executive director of the Metro Portland New Car Dealers Association, Oregon is often a target for auto consumer scams because, in part, the lack of sale tax makes it easier for shady businesses to sell a product and move on. A series of :30 and :15 spots are running now on 24 local Portland stations, alerting listeners to the potential problems of "Katrina" cars. Additionally, 15 stations of the NW Radio Network, reaching communities from Longview to Eugene, Central Oregon and the coast, are also broadcasting the consumer warnings. Spanish versions of the commercials are running on Bustos Media Radio stations.

Conference Calls 2005

Arbitron cuts '05 revenue estimate
The soft ad market's effect on radio is spilling over to Arbitron, which has reduced its revenue estimate for 2005. The ratings company now expects an increase of only 4.2-4.9%, which would put full year revenues at 309-311 million, not the 5-7% gain previously projected. However, expense projections have come down, in part because of cutting back the size of the Project Apollo test, so earnings per share are expected to be 2.06-2.10, up from the previous estimate of 1.99-2.03. For Q3, Arbitron's revenues rose 4.5% to 85.6 million. Increased spending for the Houston PPM test and Project Apollo increased costs and reduced EBIT (earnings before interest and income taxes) by 1.8% to 33.1 million. Net income fell 13.7% to 24.2 million, or 66 cents per share, down 11 cents from a year ago. CEO Steve Morris told analysts the company is seeing steady pricing gains, but less new business than had been expected.

Adbiz©

Carat Fusion and Lifetime partner
for Human Trafficking miniseries
Carat Fusion announced an interactive campaign as part of Lifetime Television's largest marketing campaign ever behind an original movie. The program will promote the network's first ever miniseries, "Human Trafficking," which will premiere 10/24. Mira Sorvino, Donald Sutherland and Robert Carlyle star in the two-parter original - - an uncompromising drama about the brutal realities behind the international trafficking of women and children for sex, and the battle to rescue its victims enslaved in America. The campaign, which included planning and creative began 10/5, and will run on both entertainment sites such as Yahoo! and news sites including Washingtonpost.com and Newsweek.com leading up to the premier. The campaign creative also features broadband video in a fresh new format. The ads begin with self-propelled video of the haunting movie trailer, and when viewers roll over the unit, it shows the expanded trailer with sound. In addition to the video, viewers have access in the expanded unit to character sketches, "true cases" of human trafficking in the U.S., a "take action" button, and an email reminder -- all without leaving the ad. "These ads are truly a first," said A.J. Vernet, VP of Sales, Pacific Northwest for Klipmart, who provided the back end technology for the streaming video. "No one has ever combined self-propelled video and a mini-site level of depth into a single ad unit, such that the viewer never has to leave the ad itself."

Macy's dumps Lowe
Macy's has ended its AOR relationship with Lowe, the latest in a string of losses for the agency. "We are not using an agency of record any longer. We are going to work with different agencies on different projects," Ronnie Taffet, a spokeswoman for Macy's, told WSJ. "There are so many creative minds out there we wanted to have the ability to pick the best of the best as needed." Lowe, which has handled Macy's national advertising since 2003, is now finishing up a holiday ad campaign for the retailer, Macy's told the paper. The retail giant adds it is evaluating whether to give the agency more work. In the meantime, Macy's has hired Work Lab, an agency in Virginia, to handle an ad assignment. Spending on Macy's TV ads last year was 61.7 million, according to TNS Media Intelligence.

More response to Home Depot-spot radio issue
Another reader 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 More... |

Media Business Report

PTC issues best/worst top 10 lists
The Parents Television Council has published its latest list of the best and worst on television for the current 2005-2006 season. ABC's "Extreme Home Makeover" gets the nod for #1. Fox's "The War at Home" gets credit for being the worst show. PTC was particularly disturbed to find that its three worst shows are being marketed as "family-friendly." Along with "The War at Home," PTC lists "The Family Guy" (Fox) and "American Dad" (Fox) in this notorious group. PTC's Brent Bozell said, "Families should not be deceived. The top three worst shows all contain crude and raunchy dialogue with sex-themed jokes and foul language. Even worse is the fact that Hollywood is peddling its filth to families with cartoons like The Family Guy and American Dad. These two shows have contained scenes in which characters are shown having sex and topics such as masturbation, incest, bestiality, and necrophilia are routinely discussed." Fox was the source of the top four shows on the Worst list, and took six of the ten slots. CBS had three and ABC's "Desperate Housewives" claimed the other. PTC selected only nine shows for its best list, and the shows were much more evenly distributed amongst the networks. ABC, Fox and WB had two each, with one apiece from CBS, NBC and UPN.
| See the lists here |

Media Markets & MoneyTM

Two moons over Visalia
Abel de Luna's aptly-named Moon Holdings radio group has struck a deal to double up in the Visalia-Tulare-Hanford market in California. It'll pay 2.2M dollars to add KSLK-FM to its portfolio, giving it an Hispanic twosome in the market. The Spanish AC station will team with Mexican KMQA-FM. Actually, it's been teamed with KMQA since 11/1/03 via an LMA, so there should be no noticeable changes in the market's format lineup. The seller is Robert Eurich's New Visalia Broadcasting. In a rather unusual payment package, Moon has put down 200K on deposit and will plunk down another 1M at closing. That's pretty normal, but the unusual clause has another 1M going from Moon to brokerage house Media Services Group, payable to Eurich on the first January 10th to occur after closing. MSG will get its compensation from the seller. 800K of this package is being allocated to a non-compete.

Washington Beat

Clamor's clamor for relief partially successful
Noncommercial Clamor Broadcasting Network, licensee of WJVP-FM in Bayamon PR, was hit with dual fines back in 2004 (in a case with roots reaching as far back as 2000). There was an 8K EAS violation and a 7K main studio violation. Part of the problem stems from the fact that the station had once been operated, under waiver, as a satellite of WKVN-FM Levittown PR. WKVN was sold, nullifying the waiver, but studios within the legal radius of WJVP's city of license were not built, and the 7K fine for that violation is sticking. It is skating on the EAS violation, however. At the time of inspection, the station had operational equipment at its auxiliary location. The chief engineer knew this, but happened to be out sick that day. Since there was no true violation, that fine was canceled.

Programming

Entravision Radio launches
"Play What We Want" format
Entravision Radio announced the launch of 'Jose: Toca lo que Quiere,' the first Spanish-language "Play What We Want" radio format. 'Jose,' who personifies everything heard between the music on the new format, made his debut yesterday on KRCX-FM Sacramento, KCVR-FM Modesto, CA, KCVR-AM Stockton, CA, KRZY-AM Albuquerque and KMXA-AM Denver. 'Jose: Toca lo que Quiere (he plays what he wants)' targets Hispanic adults 25-54. Featuring a mix of Spanish AC hits from the late 1970's to today, 'Jose' will air a wide variety of music from an array of artists, such as Los Bukis, Juan Gabriel, Los Yonics, Rocio Durcal, Los Tigres del Norte, Vicente Fernandez, Los Angeles Negros, Mijares, Alejandro Fernandez and more. Entravision Radio's programming team is also responsible for creating the Super Estrella, Cumbia, Radio Tricolor and El Gato formats.

iRadioNow.com to deliver talk radio podcasts
Syndicated Solutions (SSI) announced an expansion of its core operations to include radio podcasting/audio downloads. SSI's platform is subscription based and will be independently branded as www.iRadioNow.com. The web portal will feature nationally syndicated and locally produced talk radio programs. SSI's objective is to associate as many longform talk programs as possible with the podcasting domain and position www.iRadioNow.com as the preeminent destination for consumers seeking nationally syndicated and locally produced talk radio podcasts/audio downloads. The website debuts officially 10/24.

Ratings & Research

Nielsen clarifies
Fusion vs. Apollo pitch issue
In a media industry report yesterday, a story claimed VNU's Nielsen in the past several weeks has begun pitching clients on a "new research product designed to provide similar data as Apollo, but using a controversial method known as Fusion." We asked Nielsen Chief Research Officer Paul Donato and SVP/Client Insights Howard Shimmel if this was true and to clarify.
| Read More... |

Sales

RAB and Media Monitors
present sales training workshop
The Radio Advertising Bureau will present two free sales training workshops on Breaking The Daily Habit: Winning New Radio Dollars From Print in NYC on 11/17. Sponsored by Media Monitors, the sessions are part of an ongoing free nationwide sales training series that began earlier this year. Endorsed by the New York State Broadcasters Association, both New York City sessions are offered free of charge to the first 100 Radio station sales managers and account executives in the area to register. The training session will be offered twice at The Algonquin Hotel in Manhattan, in the morning from 8:30 a.m. to 12 noon, and repeated that afternoon from 1 to 4:30 p.m. Applicants may register by phone at 1-800-67-MEDIA, or by e-mail at [email protected]. Conducted by RAB SVP/Training, Lynn Anderson, Breaking The Daily Habit: Winning New Radio Dollars From Print reveals how to position radio's strengths against newspapers and exposes the inequity that exists between newspapers' dwindling circulation figures and its share of local ad budgets.

Marketing

Ford plans significant plant closures
Ford's Q3 quarterly loss, the first for Ford since Q4 '03, follows a protracted decline in the company's U.S. market share and deepening financial woes. U.S. sales of Ford vehicles are down 1.3 percent so far this year despite a massive discount program. Ford and GM, which reported a 1.6 billion quarterly loss earlier this week, have seen their margins squeezed by intense competition in the U.S. market and by a dramatic slowdown in sales of mid-size and large SUVs, due to high gasoline prices, reported Reuters. Bill Ford said on a conference call that Ford was delaying until January a long-awaited restructuring announcement for its North American vehicle operations, which have lost more than 1.4 billion before taxes so far this year. "That plan will include significant plant closings where facilities don't fit our strategy moving forward," he said. Ford reported a third-quarter net loss of 284 million, or 15 cents per share, compared with a profit of 266 million, or 15 cents a share, a year earlier.

Transactions

25M KLMG-FM Sacramento (Jackson CA) from Golden Gate Broadcasting Company Inc., a subsidiary of Salem Communications Corp. (Stuart W. Epperson, Edward G. Atsinger III) to Bustos Media of California License LLC, a subsidiary of Bustos Media Enterprises LLC (Amador S. Bustos). Trade for KKLF-FM Sacramento (Lincoln CA). Value is RBR estimate. Superduopoly with KTTA-FM Esparto, KBDB-FM Placerville and KBAA-FM Grass Valley, coming in separate deal with same seller. KLMG-FM is the former KSFS-FM; KKLF-FM Lincoln is the former KXCL-FM Yuba City, and KBAA-FM is the former KCEE-FM. [File date 9/26/05.]

25M KKLF-FM Sacramento (Lincoln CA) from Bustos Media of California License LLC, a subsidiary of Bustos Media Enterprises LLC (Amador S. Bustos) to Golden Gate Broadcasting Company Inc., a subsidiary of Salem Communications Corp. (Stuart W. Epperson, Edward G. Atsinger III). Trade for KLMG-FM Sacramento (Jackson CA). Value is RBR estimate. Duopoly with KFIA-AM Carmichael, KTKZ-AM Sacramento & KTKZ-FM Dunnigan. KLMG-FM is the former KSFS-FM; KKLF-FM Lincoln is the former KXCL-FM Yuba City, and KBAA-FM is the former KCEE-FM. [File date 9/26/05.]

500K KBAA-FM Sacramento (Grass Valley CA) from Golden Gate Broadcasting Company Inc., a subsidiary of Salem Communications Corp. (Stuart W. Epperson, Edward G. Atsinger III) to Bustos Media of California License LLC, a subsidiary of Bustos Media Enterprises LLC (Amador S. Bustos). Trade for KKLF-FM Sacramento (Lincoln CA). Value is RBR estimate. Superduopoly with KTTA-FM Esparto, KBDB-FM Placerville and KLMG-FM Jackson, coming in separate deal with same seller. KLMG-FM is the former KSFS-FM; KKLF-FM Lincoln is the former KXCL-FM Yuba City, and KBAA-FM is the former KCEE-FM. [File date 9/26/05.]

Stock Talk

Bitter pill from Pfizer
Pharmaceutical giant Pfizer sent stocks tumbling by withdrawing its profit forecasts for 2006 and 2007 after reporting Q3 results below expectations. Even a drop in oil prices didn't help stock prices on Thursday. The Dow Industrials fell 133 points, or 1.3%, to 10,281.

Almost all radio stocks joined the retreat. The Radio Index fell 3.644, or 1.9%, to 187.132 - - a year-to-date low. Arbitron was one of the very few gainers, rising 0.8% after reporting Q3 earnings. Beasley fell 5.7% as the day's biggest mover.

Radio Stocks

**Here's how stocks fared on Thursday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		38.90	+0.32	Jeff-Pilot	JP		53.07	-0.43
Beasley	BBGI		14.08	-0.86	Journal Comm.	JRN		13.49	-0.23
Citadel	CDL		13.57	-0.19	Radio One, Cl. A	ROIA		11.26	-0.23
Clear Channel	CCU		31.26	-0.79	Radio One, Cl. D	ROIAK		11.27	-0.22
Cox Radio	CXR		14.09	-0.24	Regent	RGCI		4.94	-0.11
Cumulus	CMLS		11.15	+0.02	Saga Commun.	SGA		12.51	-0.34
Disney	DIS		22.96	-0.48	Salem Comm.	SALM		18.00	-0.08
Emmis	EMMS		19.26	-0.33	Sirius Sat. Radio	SIRI		5.97	-0.11
Entercom	ETM		28.06	-0.44	Spanish Bcg.	SBSA		6.41	-0.14
Entravision	EVC		7.37	-0.33	Univision	UVN		23.66	-0.93
Fisher	FSCI		45.63	-0.98	Viacom, Cl. A	VIA		30.40	-0.53
Gaylord	GET		43.35	-1.04	Viacom, Cl. B	VIAb		30.32	-0.54
Hearst-Argyle	HTV		24.31	-0.01	Westwood One	WON		18.16	-0.27
Interep	IREP		0.47	+0.01	XM Sat. Radio	XMSR		30.42	-0.52
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]

As a former radio salesperson, and now sitting on the other side of the desk, I hope whomever ends up running the RAB (10/20/05 RBR #206) understands what a problem radio sales people really have. Namely, they don't know how to sell radio. Their general managers, sales mangers, and market managers and the RAB are pushing everything but RADIO SALES. Instead of teaching radio and radio sales, there seems to be a huge emphasis on teaching NTR. Time after time we receive calls from salespeople at radio stations saying the entire sales department has been locked in, doing the phone bank selling NTR ideas. Golf tournaments, pet shows, and everything other than radio time.

Today's radio sales people and managers just don't get it...
| Read More... |

Howard F. Price
President / Multi-Net Marketing, Inc.

Radio Media Moves

Moore heading N/T
Infinity Broadcasting has named Steve Moore as Vice President, News/Talk Format. He will continue to also be Director of Programming and Operations at KMOX-AM St. Louis.

Stations for Sale

AZ C2 - 60 DBU
covers 2.1M in Phoenix Metro
plus N. Tucson. #1 growth metro new freq. and facilities.
Call Linda Corso, Tri-Media, Inc.
928-473-4390, 928-425-4800 or [email protected]

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

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.

RAB starts CEO search
Hired the Spencer Stuart Executive Search Firm to identify candidates for the post of President & CEO, succeeding Gary Fries who announced in August that he would not seek a renewal of his contract when it expires at the end of 2006. RBR observation: Big shoes to fill after Fries' 15 years at RAB. This traditionally has been a job for a "radio guy." But with all of the challenges facing the radio industry for accountability, ROI, EDI and such, it would be a good thing for RAB to also look at candidates from the marketing side who have a perspective on radio from the buy side, rather than the sell side. Publisher note: Last but not least consideration for the future, which is today, it would be worth breaking bread over for both the Executive Committees of RAB and TVB to talk about how each others business is performing and does anyone see a potential plan working together. I can now state that it will be one year that RAB's Gary Fries, TVB's Chris Rohrs and I had a dinner to discuss this issue of problems within the radio and television business. Nobody knew except us three, as both only knew one another from business events. Now they know one another and this dinner was productive. Fall 2006 NAB Radio convention now has R&R merged into their fold but where does this leave the Management, Sales, and Marketing arms of our business? Come on RAB - TVB we should become stronger allies at least once a year and compare notes and business ideas with joint strategy. Worth a try for RAB and TVB to do a joint conference together as it would be good for everyone to network for our free Radio and TV business.
10/20/05 RBR #206

It is Not Free, Here is Jay Severin
Don't look for Infinity to launch 22 "Free FM" FM talk stations across the country, as was the rumor printed 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 -AM Dallas, WPHT-AM Philadelphia, WJFK-FM Washington, D.C., and KMOX-AM St. Louis beginning Tuesday, January 3, 2006. 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 Business power rotation.
10/19/05 RBR #205

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

RBR - Radio News
Infinity update: research and Stern
An industry source tells RBR Infinity is in the midst of replacing the three "corporate research" folks that were let go. And official announcements about Stern replacements will come mid-November. RBR observation: There is no Mr. Smile face you can put on the cutting of the research executives and with saying we will be replacing them soon. Retired Roy Shapiro is a top line broadcaster and has seen it all going back to his days at Westinghouse Broadcasting then renamed Group W Radio and Group W Radio Rep firm and all know the end to the story - Westinghouse sold out. As for Shapiro he has seen all forms of audience measurement over the last 30 some years and if he is giving 100 percent to improve Infinity's research department we say good. But the man is retired and early this year RBR spoke with Mr. Shapiro at the RAB and he was enjoying retirement. When Shapiro's address changes from Florida to 1515 Broadway, NYC with a phone extension then believe it. On Stern - face it there is only one Stern and we doubt there could be any one talent or talents who could replace him as a whole. It might be a prudent move to develop local talent to fit the market and build with the markets over time. Developing a local morning program that will build the rest of each stations day parts instead of an entire station's ratings and revenues are hooked to just one person like Stern. Those days are gone and so is the revenue. Infinity and Hollander have had what - 12 to 14 months to get this Stern stuff out of the way. Na, something just does not smell right.
10/15/05 RBR #203

Sirius' fuzzy math makes
no difference to Mandel
While Sirius added 359,000 new users in Q3, nearly doubling its year-ago increase, news had it that not all of those new Sirius subscribers are actual people. Where XM waits until a car buyer activates the service to add to its new-user tally, Sirius sometimes starts counting as soon as a car with a factory OEM radio arrives at the dealership. Jon Mandel views it different - "I'd like to point out that when Mel was at CBS, and I followed him because I used to have an analyst job, we always made sure we checked Mel's data points...Some us are used to a variety of sellers tending to cook numbers, and someone else's numbers, so what else is new? We saw it for a few years at CBS. It's not like they're selling, or will be selling a whole bunch of advertising anyway on Sirius. Most of the channels-the music channels-that people listen to are commercial free. 10% of nothing is still nothing." He adds, "It does affect advertising in a sense that they may be overstating numbers by 10%, but I think it's more of an effect on overstating for Wall Street. When you buy a new car, with either Sirius or XM, if you buy it with that option, they give you three months free. So he doesn't have that revenue for three months and you're making the assumption that everybody that does it is going to pay the 10 or 12 bucks a month." RBR observation: Agree with Mandel and TVBR is finally glad someone else views satellites' churn without wearing rose colored glasses. But one thing is for sure - next to Apple's iPods this Christmas ad season, the satellite ads that will be pumping the TV, Cable and Print will be XM vs. Sirius of Biblical Proportion. Christmas is when people buy crazy things as technology waits for no one especially the younger generation.
10/15/05 RBR #203

Local Sales Manager
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