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Welcome to RBR's Daily Epaper
Volume 22, Issue 208, Jim Carnegie, Editor & Publisher
Monday Morning October 24th, 2005

Radio News®

Windy City Radio icon
John Gehron quits Clear Channel
Late Friday, 10/21/05, Clear Channel Chicago four year cluster manager John Gehron announced his own departure to his staff in a short email saying he was leaving "to pursue new goals," but would continue as a consultant for Clear Channel. No replacement was named - - sources report it took a few by surprise but at the same time was really no surprise. Over the weekend RBR spoke with Gehron and he was true to his professional nature, saying "They have treated me well and are honoring my contract." RBR emailed Clear Channel's CEO John Hogan and EVP of Operations Charlie Rahilly - - no replies as of this morning. Gehron would not get into any dirt but RBR has heard from credible sources that there were issues or personality conflicts, but our sources state that Gehron was doing his job above standards. Sources view it as politics trumping performance, which has a number of Clear Channel cluster managers waiting for the other shoe to drop.

RBR observation: If you are going to leave then do it on your time frame as Clear Channel reports their earnings today. Gehron has been in the Chicago market since the early '70's as PD of the infamous 89 WLS. He has a strong programming mind and is one of the few today in the radio business that earned his way to the top, and understands that each station must perform for the cluster to succeed. So here it is again - "Departing over philosophical differences." You fill in the rest. RBR bottom line is easy - forget philosophical differences if an executive is performing and brings more knowledge and skill to the table. No matter what the politics do not let that person out the door. Radio can not afford to lose any more front line experienced pros like Gehron. Remember one thing about experienced PDs in top positions. They will almost always fight for product, knowing that is what revenue ultimately flows from--but often that passion gets them in trouble.

Publisher note: I personally know John's character - mild mannered, programming focused and even if a station sounded bad would find one good thing that he could praise and build upon. With John the theory was 'The Glass is always one-half full.' We both worked for ABC in early '70's or what some call the great days of Top 40 Gehron at WLS and I at KQV. We talked with our boss the late Rick Sklar on conference calls and shared problems, solutions, ideas and intelligence. One thing for sure - Gehron knows Chicago radio, media and business by understanding the key to success in business is also building plus maintaining solid relationships with clients and ad agencies. Chicago is the third largest market in the country and no corporation can afford to lose a pro with this much working knowledge and experience. Any media company should jump at the chance to get this man on their team.

(The photo is of a young Gehron back at WLS only thing that has changed is the hair is just a touch lighter.)


Clear Channel on deck today
Are they turning the corner with Less is More? We'll find out after the market closes today. After reporting radio revenues down 6.5% in Q2, the company is still expected to trail the industry in Q3 as it tries to push up rates while holding down inventory. For all of CCU, including TV, outdoor, etc. in addition to radio, analysts surveyed by Thomson/First Call expect revenues to be about flat with last Q3's 2.64 billion, but for bottom line earnings to be down about four cents a share to 38 cents. CEO Mark Mays will also give an update on plans to spin-out Clear Channel Entertainment to shareholders and sell an IPO of 10% of Clear Channel Outdoor. Analysts will likely have lots of questions about what the company will do with its cash hoard, since the company has backed off from its original plan of distributing 1.6 billion to shareholders in a special dividend.

RBR observation: Just wonder how they will answer the questions on the departure of John Gehron the cluster manager in the third largest radio market in the country.

Bargain shopping time?
Radio stocks have been beaten up for some time now on Wall Street. Noting that Radio One is trading at a three-year low, Wachovia Securities analyst Marcia Ryvicker calls that poor performance "illogical" and is advising clients that there is a "significant buying opportunity" before the company reports its Q3 results on November 4th. Year-to-date, Radio One's stock is down 30%, she notes, making it the second worst performer in the radio sector (SBS is worst). The analyst notes that Radio One has "outperformed both its large market peers and the overall industry for the past 14 quarters" and says that out performance should continue, since the company has indicated that its Q3 revenues will be up 4-6% - - well ahead of the industry. "We believe that the market is ignoring the potential value provided by Radio One's investments in TV One and Reach Media, its newly implemented share repurchase authorization, and its efforts to become the No. 1-rated African American multi-media company," Ryvicker told clients in a note. Thus she thinks it is illogical that Radio One trades at a discount to the average multiples for radio stocks, but rather should command a premium. In her view, the stock should be worth 17-18 bucks a share.

Census bad news is good news for radio
The Census Bureau has put out a study which tales what to most people is a tale of woe. It details how many of America's largest cities get even larger during the day, as people stream in from suburban and exurban homesteads to earn a living. Among cities with populations over 500K, TVBR's home market of Washington is far and away the biggest daily gainer, going from 572K to 983K, an increase of 71.8%. The only city with more people commuting in is New York, but with its huge 8M population base, the 563K commuters only amount to a 7% increase. 500K plus cities with at least a 10% surge include Boston (41.1%), Seattle (28.4%), Denver (28%), Portland (23%), San Francisco (21.7%), Charlotte (21.2%), Houston (20.6%), Nashville (19.5%), Austin (19.4%), Dallas (19.1%), Oklahoma City (18.7%), Memphis (15.8%), Indianapolis (15.6%), Baltimore (14.2%), Fort Worth (14%), San Diego (11.6%) and Columbus OH (11.6%). In the 250K-499K population tier Atlanta (62.4%), Tampa (47.5%), Pittsburgh (41.3%), Miami (37.3%) and St. Louis (35.1%) are all big gainers. If you want to hunt for your own area findings, you can go to the Census Bureau chart here.

RBR observation: Many of these people are trapped in their cars are sitting ducks for AM and PM drive programming. Washington is in between two rivers, so area commuters, like those in many cities, have bridges to contend with, limiting access to the city. The car-strangled spanners of Our Nation's Capital are great news for radio, and any other medium which can get itself noticed out-of-home.


Hello Mr. Rupert,
We say Welcome to America

News Corporation's first shareholder meeting as a US-incorporated company on Friday was a bit of a circus, with shareholders berating CEO Rupert Murdoch for such things as poor returns, refusing to let them vote on the company's poison bill and his own not having to stand for election until 2007. For the most part he just stood and took it, then invited everyone to enjoy refreshments after the meeting adjourned. A spokesman representing a group of institutional investors chastised Murdoch and the News Corp. board for refusing to let shareholders vote on whether to extend the poison pill designed to keep John Malone and Liberty Media from increasing their stake in the company. The representative of the big investors insisted that Murdoch's promise to put the matter to a vote had been a factor in their voting in favor of the company's reincorporation in the US. Since the original poison pill wouldn't have expired until next month, why didn't the board simply put it on the agenda for Friday's shareholders meeting? Noting that the issue is now the subject of litigation (10/10/05 RBR #198), Murdoch at first said he wouldn't comment. But then he went on to say that the company is continuing to have "friendly" talks with Malone "We did not want to poison those waters by having it up for a vote," Murdoch said. Later, in an exchange with another investor, Murdoch defended the need for the poison pill. "I'm not going to be tricked into giving up control at a low point," he insisted. Although some institutional investors had indicated that they were going to withhold their votes for directors up for re-election to protest the failure to put the poison pill to a vote, the impact was nowhere near the magnitude of the protest vote two years ago at Disney. News Corporation reported during the meeting that a preliminary count showed all of the directors being re-elected with over 80% of the shares voted in favor.

Watchdogs hail VNR bill,
call for more of the same

Free Press and the Center for Media Democracy were pleased to see the Frank Lautenberg (D-NJ)/John Kerry (D-MA) Truth in Broadcasting Bill make it through the Senate Commerce Committee. The bill forces clear labeling on government PR communications, and puts the onus on attribution on the government rather than broadcasters. "In response to hundreds of thousands of concerned citizens, a bipartisan group of elected officials has moved us a step closer to ending this form of covert propaganda once and for all," said Josh Silver, executive director of Free Press. "The full Senate and House should move quickly to pass this bill and permanently shutter the government's fake news factory." The watchdogs consider this to be only the beginning, however. "The Commerce Committee's passage of the Truth in Broadcasting Act is an important but small step forward in the fight against fake news," said Diane Farsetta, senior researcher at CMD. "With this vote, the committee supported the American public's right to know when news programs air a government-produced video or audio 'report.' However, the vast majority of fake news comes from private sources - - pharmaceutical companies, car companies, other product manufacturers. The public should also have the same right to know when these sources are trying to influence them through supposedly independent news broadcasts."

RBR observation: Farsetta's concerns are similar to those expressed by FCC Commissioner Jonathan Adelstein and others. The laws requiring disclosure of a compensatory relationship in exchange for on-air or in-print mentions are pretty much already in existence. We've seen recent calls for disclosure in word-of-mouth campaigns. As more and more advertisers utilize product placement, and more news segments feature "experts" who tout a particular brand of something or other, we can look for louder and louder efforts to strengthen the rules and buck up enforcement.


Adbiz©

Russo, others on Home Depot
spot vs. network issue

And the hits keep comin' 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. This time we hear from Rich Russo, JL Media's SVP/Director of Broadcast Services and WJTH-AM Calhoun, GA's Sam Thomas
| Read More Here |

US Polo Association and Jordache
win case against Ralph Lauren

The United States Polo Association and Jordache won a victory in a New York Federal Court where a jury awarded them the right to use the three horsemen logos. The USPA and Jordache intend to launch a major advertising and marketing campaign using the logos that have been awarded to them. In a unanimous jury verdict before Judge George Daniels of the US District Court, the jury ruled in favor of the USPA and Jordache in a lawsuit Polo Ralph Lauren filed against the USPA and Jordache in 2000. "We believe that our victory in Federal Court will create enormous opportunities in the retail market place for Jordache's division of the USPA. We are extremely happy with the Court's ruling in the long-fought battle with PRL," said Cliff Lelonek, President and Chief Executive Officer, USPA Division of Jordache Limited.

EPIC and over 100 groups seek end
to DOD recruiting database

The Electronic Privacy Information Center (EPIC) and more than 100 local, state, and national organizations have urged Secretary of Defense Donald Rumsfeld to end the "Joint Advertising and Market Research Studies" Recruiting Database. The groups cited the broad exemptions to federal privacy laws that would allow the Defense Department to disclose personal information to others without an individual's consent or knowledge. The database would include name, date of birth, gender, address, telephone, e-mail address, Social Security Number, ethnicity, high school, education level, college, and intended field of study for more than 30 million Americans who are 16-25 years old.

The Beanstalk Group
joins Omnicom

Omnicom Group and senior management of The Beanstalk Group, the world's leading brand licensing agency and consultancy, have joined together to acquire the agency from the Ford Motor Company. "The addition of Beanstalk to the Omnicom network will further expand the services that we offer clients to meet their changing marketing needs," said Thomas Harrison, Chairman and CEO of the Diversified Agency Services division of Omnicom Group. "This is believed to be the first acquisition of a licensing agency by a global communications group. Beanstalk's founding principals, Michael Stone and Seth Siegel, are two of the most respected professionals serving the branded licensing industry. Together, they have built one of the most successful licensing firms in the world." The Beanstalk Group will operate as part of Omnicom's Diversified Agency Services group. It will maintain its existing offices in the United States and the UK. Beanstalk will draw upon Omnicom's worldwide resources and global relationships to offer clients strategic counsel on the use of licensing to leverage brand image. The Beanstalk Group will continue to represent many of Ford's key brands.


Media Markets & MoneyTM
Hymn to WHIM? Salem trips in Orlando
That's trip as in triplet. Religious specialist Salem Communications has announced a 10M deal in which it will get WLTN-AM and WHIM-AM from Alton Rainbow Corporation/TM2 Inc., headed by Tom Moffit. This is on the heels of the group's recent swap for WORL-AM. The earlier deal was valued at about 6M, with Salem getting the Orlando AM in exchange for one of its Dallas-Ft. Worth AMs. WORL is getting Salem's line-up of conservative Talkers, along with news content. The stations coming from Moffit are already primed for Salem's Christian Teaching/Talk. According to Salem's Edward Atsinger, "The Moffits are respected broadcasters who have provided a platform in Orlando to some of the best national ministries and speakers, a tradition we plan to continue. This transaction strengthens Salem's position in one of the nation's top markets, allowing us to broadcast two of our three strategic formats in Orlando."

RBR observation: That said, look for Salem to try and pry loose an FM from somebody as a platform for its Contemporary Christian format.

Buckley doubles up on CA coast
Hector Villalobos and his aptly-named Wolfhouse Radio aren't exactly exiting the Monterey-Salinas-Santa Cruz market, but they are paring down their cluster. The beneficiary is Buckley Communications, which is buying KEXA-FM Salinas for 3M cash. For Buckey, it'll be its second FM and third station in the market, joining KIDD-AM & KWAV-FM, both licensed to Monterey. Wolfhouse, meanwhile, will still have an AM, KTGE-AM Salinas, and three FMs, KHDV-FM King City, KMJV-FM Soledad and KRAY-FM Salinas, all of which, like KEXA-FM, are broadcasting Hispanic formats.

RBR observation: We can safely say that KEXA-FM will be flipping to a new format. Why? It's the law (in a sense, anyway). The contract for sale of the station features a highly unusual reverse non-compete, under which Buckley has promised to stay out of the Hispanic radio business in the market for at least two years. Wherever it decides to go, it will be combining with Nostalgia on the AM side and AC on the FM side.

Q3 Earnings On deck
This week with a Mr. Happy face are: Monday, today Meredith Corporation and Clear Channel Communication. Thursday, 10/27/05 LIN TV Corp, Hearst-Argyle and XM Satellite Radio and Friday, 10/28/05 Jefferson-Pilot Corporation.


Washington Beat
Another broadcaster bitten by public file bugaboo
The FCC has handed down a number of license-renewal related case resolutions revolving around children's programming. Mostly, they are in regard to the 10.5 minute-per-hour advertising limit on weekends and 12 minute-per-hour advertising limit on week on weekdays. Eight stations were caught in the dragnet, including five from Liberty which are on their way to Raycom. All were granted a license renewal. In five cases, the violations were deemed minor and/or inadvertent, and on balance with generally proper station operation, were simply excused. Two received admonishments due to public file irregularities. One, however, had an empty public file, insofar as its children's programming records are concerned, resulting in a 10K fine.
| Case by case compendium here |

In praise of David Rehr;
NAB's new President

"He'll do a sensational job," is what Entercom CEO David Field (pictured) told RBR/TVBR after the NAB board's selection committee, of which Field was a member, picked David Rehr to be the new President and CEO of the organization (10/21/05 RBR #207). "The bottom line is that we really picked a terrific guy." Field declined to discuss the committee's deliberations, but noted, "We have unanimity on the eight-member search committee." It appears that Rehr is also leaving his previous employer on good terms. "David K. Rehr has provided great leadership to the National Beer Wholesalers Association during his tenure over the past 13 years, and the members of NBWA wish him all the best in his new capacity as president and CEO of the National Association of Broadcasters," said a statement issued by NBWA board chair Phillip Short, President and CEO of Short Distributing Co. in Hollis, VA. "The mark of a great leader is that he builds a great staff, and NBWA is lucky to have wonderful, talented people advocating on behalf of wholesalers in Washington, DC. Over the past year the Association hit record numbers in membership dues revenue and political action committee contributions. Just recently, NBWA had the best attended Convention and Trade Show in more than 20 years. That is a great testament to this organization and the people that it represents," Short said.

Senate converter subsidy likely trimmed in House
The Senate Commerce Committee yesterday gave thumbs up to Ted Steven's (R-AK) DTV bill, which set a hard deadline of 4/7/09 for the return of analog spectrum by television broadcasters, and allocates up to 3B to subsidize digital-to-analog set-top converters for older television sets - - a number which may be at odds with a similar proposal in the House. According to a staffer at the House Commerce Committee, a subsidy has been added to a draft version of the bill, which they were working to get out to the public at press time, but it would be funded at less than a third of the Senate total, somewhere under 1B. The hard deadline is likely to be a less contentious intramural issue - - the House version is likely to retain its earlier announced goal of 12/31/08. Stevens was originally working with that same basic date, but moved it back a few months to make sure it happens while Congress is in session, and according to many reports, to get the March Madness college basketball tournament out of the way. It's been widely reported that both committees are set to continue working on the DTV transition, but at this point neither has announced a schedule for the week of 10/24-28. However, our House Commerce Committee source said it is likely to hold a session on the topic this week.


Monday Morning Makers & Shakers

Transactions: 9/12/05-9/16/05
Raycom and Liberty struck a deal for 15 television stations valued at 987M, and there was just enough action on the radio side to produce the first billion-dollar trading week of 2005. In fact, it was the largest total since we began keeping this chart back in August 2003.

9/12/05-9/16/05

Total

Total Deals

7

AMs

5

FMs

2

TVs

15
Value
1.00027B
| Complete Charts |
Radio Transactions of the Week
Crystal to Salem deal shuffles
Orlando, Dallas AMs
| More...
|
TV Transactions of the Week
Raycom liberates 15 stations
| More...
|


Transactions
14M WLQV-AM Detroit from Christian Broadcasting System Ltd. (Jonathan R. Yinger, Ralph Van Luven, Elma S. Van Luven) to Caron Broadcasting Inc., a subsidiary of Salem Communications Corp. (Stuart W. Epperson, Edward G. Atsinger III). Trade for WTSJ-AM & WBOB-AM Cincinnati (Cincinnati OH, Florence KY), with Salem also paying 6M cash. Duopoly with WDTK-AM. [File date 9/26/05.]

10M WBIX-AM Boston (Natick MA). 100% of WBIX Corp. from David A. Vicinanzo, receiver for Bradford C. Bleidt to Alexander GT. Langer. 1.5M cash, 433K assumption, remainder in forgiveness of debt. Duopoly with WSRO-AM Ashland MA. Langer originally sold station to Bleidt. [File date 9/26/05.]


Stock Talk
Mixed news = mixed market
Wall Street had good earnings news on Friday from Google, but disappointment from Caterpillar. The result? A mixed market. The Dow Industrials fell 66 points, or 0.6%, to 10,215, but the Nasdaq Composite and S&P 500 were up for the day.

Radio stocks were up slightly. The Radio Index rose 1.084, or 0.6%, to 188.216. Univision shot up 4.4%, Beasley rose 3.3% and Entravision gained 3.1% as the day's best performers.


Radio Stocks

Here's how stocks fared on Friday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

38.37

-0.53

Jeff-Pilot

JP

53.12

+0.05

Beasley

BBGI

14.55

+0.47

Journal Comm.

JRN

13.86

+0.37

Citadel CDL
13.57 unch

Radio One, Cl. A

ROIA

11.28

+0.02

Clear Channel

CCU

30.93

-0.33

Radio One, Cl. D

ROIAK

11.19

-0.08

Cox Radio

CXR

14.20

+0.11

Regent

RGCI

5.06

+0.12

Cumulus

CMLS

11.18

+0.03

Saga Commun.

SGA

12.48

-0.03

Disney

DIS

22.98

+0.02

Salem Comm.

SALM

18.03

+0.03

Emmis

EMMS

19.51

+0.25

Sirius Sat. Radio

SIRI

5.95

-0.02

Entercom

ETM

27.98

-0.08

Spanish Bcg.

SBSA

6.35

-0.06

Entravision

EVC

7.60

+0.23

Univision

UVN

24.70

+1.04

Fisher

FSCI

46.89

+1.26

Viacom, Cl. A

VIA

30.14

-0.26

Gaylord

GET

43.58

+0.23

Viacom, Cl. B

VIAb

30.06

-0.26

Hearst-Argyle

HTV

24.28

-0.03

Westwood One

WON

18.34

+0.18

Interep

IREP

0.47

unch

XM Sat. Radio

XMSR

30.44

+0.02

International Bcg.

IBCS

0.01

unch

-

-

-

-

-



Bounceback

Send Us Your OpinionsWe want to
hear from you.

This is your column, so send your comments to [email protected]

Howard, I am in total agreement with you (10/21/05 RBR #207). Hi, my name is Pete Stassi. I am a 40 year local buying negotiator, retired, most recently running BBDO New York's local broadcast department.

The RAB has been, over my career, a non existent organization. Reactive rather than Pro-Active. There are so many ways radio can be sold correctly however all the pros are gone. What's left are sales people who don't know the strengths of their stations or the medium, as weak as they are. Radio in my opinion has alienated the advertiser. Quotes like "20 minutes without commercial interruption" conveys an image to the consumer that radio advertising is a negative element on there stations. Without it there would be no station. So it starts with the owners and trickles down to the sales force. Radio will never be a bigger element in media plans as long as it continues to deal in sixty-second currency. There so much room for radio to grow, however with the old regime they did not see beyond their next sale and were not equipped to see the future. Thanks for reading,

Pete Stassi
PLP Creations


Radio Media Moves

Seeking profits
for Prophet

Diana Stokey has been promoted to Marketing Manager at Prophet Systems Innovations. Stokey joined the company in 2000 and was previously Marketing Coordinator and then Assistant Marketing Manager.


Stations for Sale

Now Available
Prime Stations -- TX, NM, CA, MI, IN, NC, VT, ME, TN, FL
For a description of all of our properties for sale go to
www.mediamergers.com

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]


Below the Fold

Ad Biz
JL Media's Rich Russo
on Home Depot

Media Markets & Money
Buckley doubles up on CA coast
RBR observation: KEXA-FM will be flipping

Washington Beat
Another broadcaster bitten
by public file bugaboo

Makers & Shakers
Crystal to Salem deal shuffles Orlando, Dallas AMs






RBR Radar 2005
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

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. As for the Clear Channel RFP submissions from around the world 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" 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. As for when any decision from Nielsen and Arbitron do a deal - Do Not expect anything until first quarter next year.
10/21/05 RBR #207

Nielsen clarifies
Fusion vs. Apollo pitch issue
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." RBR needed this clarified so we asked Nielsen Chief Research Officer Paul Donato and SVP/Client Insights Howard Shimmel if this was true and to explain to the entire media business and take the Confusion out of Fusion. RBR observation: Worth a read and get your personal business insight and learn. It is One on One detailed.
10/21/05 RBR #207

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


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