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Volume 22, Issue 212, Jim Carnegie, Editor & Publisher
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Friday Morning October 28th, 2005
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Radio News®
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 Goldman cuts radio estimates
Goldman Sachs analyst Mark Wienkes says the repeatedly reduced Wall Street consensus on radio revenues is still too optimistic. He's cut his 2005 and 2006 earnings projections for Cox Radio, Cumulus, Entercom and Westwood One. At this point, the analyst is looking for Q3 revenue growth in the low to mid single digits for most radio broadcasters, offset by the decline already reported by Clear Channel (10/25/05 RBR #209) - - resulting in a flat quarter for radio overall. Although Wienkes' fellow analysts have reduced their earnings estimates for radio companies significantly and consistently over the past two years, he thinks the current consensus, which works out to 18% earnings growth in 2006, is still much too high. For the four companies mentioned above, he's now reduced his earnings estimates by 3-6%. The Goldman Sachs analyst says his projections for radio companies are now about 7% below the Street consensus - - but he expects the others to join him soon. "Stay on the sidelines until consensus estimates decline, which we expect in late 4Q, as the group offers too little growth for growth investors & not deep enough value for value investors," Wienkes advised clients.
 Fox News off Sirius
Fox News Channel jerked its programming from Sirius Satellite Radio yesterday in a contract dispute. While Fox News would only confirm the split, Fox News last week signed a new deal with XM for a new "Fox News Talk Channel," scheduled to debut in January. XM's new channel will feature Fox News Radio shows and audio replays of Fox News Channel TV shows, including Hannity & Colmes, The O'Reilly Factor and On the Record with Greta Van Susteren.
RBR observation: One thing Fox and Roger Ailes does - play hardball no matter who they dealing with including the 'Zen Master'.
Rehr-ing to go
Incoming NAB President/CEO David Rehr admitted in an address to the NAB Board that he has much to learn about broadcasting. That said, he doesn't come to the job empty-handed. "What I do know is lobbying. I know how to make a message simple to communicate with a busy policymaker; I know how to form lasting relationships with members of Congress and ask for support when I need it. As beer wholesalers can tell you, I don't take no for an answer when it comes to advocating on behalf of my association on Capitol Hill." He had kind words for his predecessor, Eddie Fritts, and promised to "build on Eddie's legacy." And he promised that you won't necessarily have to venture to Washington to meet him - - he will be getting out and about the country to meet with NAB members from the state association on down to the individual station level. Answering a question that may be on the minds of some, he said, "Some of you may be thinking - - what does this beer guy know about radio and television. Well, in all honesty, more than I knew about beer when I went to the National Beer Wholesalers Association. And if you ask beer wholesalers, they will tell you that I was a very passionate advocate for their interests."
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FCC to consider low power AM
The FCC is accepting comments on a proposal which would establish a new low power AM radio service. Unlike its FM counterpart, it would be a commercial-supported license class, and an initial national cap of 12 O&Os would be set, to establish a new class of owner somewhere between the large national groups and small, single-station niche operators. According to Peter Gutmann of law firm Womble, Carlyle, Sandridge & Rice, the owners would have to live near at least one of these stations - - within 25 miles, in fact. Five proponents have put forth proposals which offer competing rule structures in some cases. Although all agree on a "safety margin" which will protect existing AM full-power stations, they go on to offer differing proposals on power ceilings and other technical matters. Licenses would be awarded in a non-auction proceeding, with an unspecified public interest standard applied to choose between competing applications. However, bonus points would go to a prospective licensee who proposes to air "worthwhile" programming currently unavailable in the market. The justification for the service is to open up a window for local programming, particularly in areas where the FM dial is two cramped to allow LPFM service. Those areas would be among the first considered in a series of application filing windows.
 Harkin wants AFRTS self-monitor
Tom Harkin (D-IA) has introduced legislation which would require the American Forces Radio and Television Service (AFRTS) to monitor the politics expressed on its airwaves via establishment of an Office of the Ombudsman. Harkin has previously introduced legislation to require balanced programming on the network, occasioned by the presence there of one Rush Limbaugh. The issue has re-emerged due to claims from liberal Talk show host Ed Schultz that AFRTS was going to add his show to its lineup, then reneged. Schultz claims that he was critical on air of Deputy Assistant Secretary for Defense Allison Barber, who was caught on videotape coaching soldiers in preparation for a supposedly spontaneous satellite-chat with President George W. Bush - - and that she is the one who pulled the plug on his show just before it was to begin. Harkin's Ombudsman would report annually to the Secretary of Defense and Congress with suggestions to present balanced political programming on the network. Watchdog Media Matter for America praised the legislation, and while not mentioning the Schultz situation, renewed the call for Limbaugh's banishment from the network, in particular because his alleged trivialization of Abu Ghraib prisoner abuses possibly made military operations in Iraq even more dangerous for soldiers there by inflaming insurgents.
 Coalition latches onto
MRC report (in part)
The Independent Task Force on Television Measurement is on record as opposing Sen. Conrad Burns' (R-MT) bill to make Media Rating Council (MRC) accreditation mandatory for TV ratings companies. Nevertheless, the Don't Count Us Out Coalition has found one section of the Task Force's most recent report on suggested MRC reforms (10/25/05 RBR #209) as justification for passage of the Burns bill. "The Nielsen Taskforce's suggested addition of advertisers, consumer groups, and small or minority owned companies to the MRC board show the Taskforce understands that the status quo is not acceptable," said Don't Count Us Out Executive Director Cynthia Rotunno. "More diverse voices on the MRC are a positive step, but will ultimately be irrelevant if those voices have no real power or authority. Legislation pending in the House and Senate is the only way - - short of Nielsen's voluntary agreement to submit to mandatory accreditation - - to empower the MRC to ensure that all television viewers are counted accurately and equally," she insisted.
RBR observation: Funny how Don't Count Us Out, which gets most of its funding from News Corporation, failed to endorse the most controversial reform proposal from the Task Force - - giving advertiser reps equal voting power with media companies - - a topic that's being debated fiercely in RBR/TVBR's Bounceback section. News Corporation is actually an MRC weakling, votewise - - it only has two votes. The Task Force report notes that Viacom/CBS, GE/NBC and Univision have five votes each via various subsidiaries.
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| Conference Calls 2005 |
 XM widens Q3 deficit
on higher revenues
XM Satellite Radio reported a wider loss in Q3 despite more than doubling revenue on subscriber growth. XM's Q3 loss grew to 134 million, or 60 cents per share, from 120.1 million, or 59 cents per share, the year before. Before dividend payments, net income amounted to 131.9 million. Analysts expected a steeper loss of 66 cents per share. XM reported an EBITDA loss of 73.8 million for Q3 compared to a Q3 '04 loss of 62.9 million. Revenue totaled 153.1 million, more than twice the 5.4 million from a year earlier and beating analysts' target of 148.1 million. XM added 617,152 net subscribers in the latest period, a 48% increase over the 415,671 net subscribers added in Q3 '04. Subscriber acquisition costs fell to 53 dollars per user from 57 dollars last year. Given its performance in the first three quarters, XM reaffirms its guidance of exceeding 6 million subscribers by the end of 2005. However, increased operating costs doubled to 105 million, and higher marketing costs expanded 49% to 99.2 million. In September, GM announced the production of its 3 millionth vehicle with a factory-installed XM radio. GM also announced it plans to manufacture 1.55 million vehicles factory-installed with XM in 2006. Honda announced its plans to produce 550,000 XM-equipped vehicles in the 2006 model year, compared to a 2005 target of 400,000. XM's OEM partners represent 61% of the U.S. auto market. Also in September, the Canadian Federal Cabinet gave final regulatory approval to XM's Canadian partner XM Canada, which plans to offer service there in time for the holiday season. With the Christmas gift-giving season approaching, XM says it plans a comprehensive media campaign in Q4, which CEO Hugh Panero says is "designed to attract the next million of XM subscribers." The cost of acquisition per subscriber in Q3 was 89 bucks, unchanged from a year ago. The monthly churn rate remains unchanged at 1.4% (16.8% per year). The conversion rate for moving OEM trial subscribers to paying subscribers got slightly worse in Q3, the first quarter for the full impact of XM's price increase. The conversion rate moved from 58% in Q2 to 56% in Q3, but company officials insist that will now begin to tick back up.
RBR observation: Are we the only ones who remember that up until last year both satellite radio companies were sticking with the claim that four million subscribers was the magic number that would make them cash flow break-even? Of course, XM modified that this year and pushed its CF break-even target to late 2006. But let's see what really happened in Q3, the first full quarter for which XM was over the formerly magic number of 4M subs. Well, EBITDA was nowhere near break-even, but rather a negative 73.8 million bucks. How much closer was XM to break-even than a year ago? In fact, it was further from break-even. Its EBITDA loss for Q3 a year ago was only 62.9 million. We wait to see if the new target date sticks.
 Hearst-Argyle revenues down 15.4%
You can blame Hurricane Katrina for a big chunk of that, since Hearst-Argyle's WDSU-TV New Orleans went for quite a while with no revenues after the storm devastated the city. Company officials told analysts they do have business interruption insurance to cover part of the loss, but they're not yet able to figure that into their financial statements. Total revenues for Q3 were 164 million, down from 194 million a year ago not only because of Katrina, but also due to last year's 22.1 million in political revenues (only 2.4 million this year) and 19 million in Olympics revenues (zero this year). Look for revenues to be down in the teens again for Q4. Hearst-Argyle is projecting revenues of 186-190 million, compared to 221 million a year ago, which included 42.5 million in political advertising. But brighter days are ahead. "The outlook for 2006 is positive. During the first quarter our 13 ABC affiliates will broadcast the Super Bowl and our 10 NBC affiliates will air the Winter Olympics. Also, political revenue is expected to be strong in 2006, with 15 Senate races and 18 gubernatorial races to be contested in our markets," said CFO Harry Hawks.
Jeff-Pilot broadcast revenues up
Q3 wasn't so bad for Jefferson-Pilot Communications, compared to some other broadcasters. Revenues for its radio and TV stations grew by 1.8% to 59.2 million bucks. But expenses also rose, so broadcast cash flow decreased 1.3% to 27 million. For all of Jefferson-Pilot Corporation, Q3 net income per share was 97 cents per share - - exactly the same as a year ago. Jefferson-Pilot officials will conduct their quarterly conference call with analysts today and you can bet that most of the questions will concern the company's pending merger with Lincoln Financial (10/11/05 RBR #199).
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Adbiz©
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EVB names Cary Savas to head San Francisco office
EVB, an online agency, announced it has appointed Cary Savas as president. The move comes on the heels of EVB's four new consumer client wins: BestBuy, CardStore, Kashi and Sunkist. Cary will oversee account service, planning and media for EVB's new and existing clients. Cary brings over 15 years of advertising experience to EVB having previously held executive positions at Goodby, Silverstein & Partners, Anderson & Lembke, Saatchi & Saatchi and Foote Cone & Belding. "Cary's experience in interactive advertising is perfectly aligned with EVB's vision. We build brands by creating marketing experiences that engage and connect with consumers on an emotional level," said EVB founder Daniel Stein. "Cary's interactive expertise will be instrumental in fueling EVB's expansion." Prior to his EVB appointment, Cary served as senior vice president and director of interactive services at Publicis Dialog where he led the interactive practice for HP and Sprint.
 Google may extend ad-brokering system to television spots
Google may try its hand at buying and selling TV ad time, reports The NY Post. Google, already working with print ads, confirmed it is considering ways to extend its ad-brokering system to television spots as well. Certainly, the complicated, research-driven model of selling TV time will be tough to change. Most sellers don't want to put their inventory in someone else's control, as well. So far, network execs have resisted most efforts to resell their ad time or allow it to be controlled by outside entities. But technology waits for no one, and buyers and planners enjoy the freedom other media allows with unlimited electronic purchasing. One vocal supporter of such an idea is Julie Roehm, Chrysler Group's Director of Marketing Communications. As she mentioned in RVR/TVBR's Solutions Magazine this month, regarding the television upfront: "...I do think the process by which we buy and sell is broken...I think if I were to ask you to go out and try to find any other market-driven plan in the world you wouldn't find one quite as outdated as the upfront process...
| Read More |
 City National names
M&C Saatchi AOR
City National Bank announced that it has chosen M&C Saatchi as its new AOR, after a review. M&C Saatchi will be responsible for the development of an integrated advertising and marketing program, expected to roll out in the first quarter of 2006. "We are thrilled to be working with City National Bank," said Huw Griffith, chief executive officer, M&C Saatchi. "We look forward to bringing our Brutally Simple Thinking approach to this competitive and crowded market. Our team also includes Carat USA, who will handle the media planning and buying." City National retained Select Resources International for the review. M&C Saatchi was selected from an original list of over 30 agencies that was eventually culled to four finalists during the three-month search.
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| Media Markets & MoneyTM |
Bicoastal rises as Moon sets over NorCal
Ken Dennis's Bicoastal Media is getting an unusually composed four station superduopoly cluster in unrated northern California. "KUKI-FM is one of the leading stations in Mendocino County with a rich history of community service," explained Dennis. The oddity is that the other three stations are all on the AM side, KUKI-AM, KDAC-AM and KLLK-AM. However, the group already has several other stations in the area, so the move is an add-on to an existing cluster. According to broker Chuck Lontine of Marconi Media Ventures, seller Moon Broadcasting will get 2.2M. An LMA is already in effect.
New England group on the block
Charles River Broadcasting Company announced that it has retained Media Services Group to explore the sale of some of all of its radio stations and tower properties: WCRB-FM Boston, WFCC-FM & WKPE-FM Cape Cod and WCNX-AM & WCRI-FM Providence, RI, along with the World Classical Network and various real estate holdings. Herb McCord will act as the company's Managing Director to coordinate the sale process. Noting that Charles River Broadcasting has been broadcasting Classical music since 1950, Chairman Mary Marshall said terms of the sale of WCRB will require any purchaser to continue Classical programming on an HD Radio channel. As for the reason to sell, Marshall said it has become increasingly difficult to operate a small group of radio stations in light of general industry consolidation.
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| Washington Beat |
Panel takes on minority ownership issues
The Leadership Conference on Civil Rights Education Fund (LCCREF) is sitting in the US Capitol next week, Tuesday 11/1/05, to look at the tangled history of minority ownership of broadcast properties in the US. LCCREF notes that the FCC has long tried to promote diversity only to be thwarted by a conservative judiciary; then, ironically enough, the FCC's plan to loosen ownership caps at the expense of diversity of ownership was shot down, at least temporarily, by Congress and the courts. New efforts at the FCC are in the cards, making this "...a timely moment to examine the role of minorities in the mass media." United Church of Christ's Gloria Tristani, herself an ex-FCC commissioner, will moderate a panel which will include Mark Lloyd, Senior Fellow, Center of American Progress and member, LCCREF board; Andrew Schwartzman, President and CEO, Media Access Project; David Honig, Executive Director, Minority Media and Telecommunications Council; Katherine Grincewich, Associate General Counsel, U.S. Conference of Catholic Bishops; and Chellie Pingree, President and CEO, Common Cause.
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| Programming |
 ABC News Radio
offers Thanksgiving specials
ABC News Radio will offer three one-hour specials over the Thanksgiving holiday weekend. The series of programs, airing between 11/23 and 11/27, include:
The ABCs of Shopping for Kids: Making the Best Buys for the Holidays: ABC News Correspondent Richard Davies will report on the latest toys and trends this year. Speaking with parents, kids and toy experts, the one-hour program will explain how shoppers can maximize value when making purchases for young people. The program will also look at techno-toys and specialty products for children.
The ABC News Radio/Consumer Reports Holiday Buying Guide 2005: ABC News National Correspondent Gil Gross will reveal the best-rated electronic and computer products, from plasma televisions and digital cameras to the latest MP-3 players. Additionally, 53 top-rated red wines will be evaluated.
Holiday Movie Guide 2005: The one-hour program will provide an inside look at the movies hitting theaters this holiday season. The special will also feature a critic's corner segment discussing likely Oscar(r) contenders from the past 12 months.
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| Ratings & Research |
 August Webcast Metrics ratings
Ando Media has released its monthly Internet Radio Top 20, a listing of the top-performing Internet radio stations and networks measured by the Webcast Metrics' audience measurement platform. The audience of the top rated network, Net Radio Sales, jumped significantly in August helped in part by the addition of several large broadcast companies, including Cox Radio, to the network. Other top Internet radio stations increased their audiences, as well, with AccuRadio.com, Club977.com and BroadcastUrban.net all reporting over 30% increases.
| View the Numbers |
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| Engineering |
WQED-FM reups with Continental for HD transmitter
Continental Electronics announced that two of its 816HD transmitters are being used by WQED-FM Pittsburgh in a combined configuration to for the station's conversion to HD broadcasting. The transmitters, each of which is a unique one-box solution for simulcasting analog and digital signals, are being used together to achieve the station's required 24.5-kW target output. The new system goes live in early 2006. The 816HD was identified as the best solution to replace WQED's existing Continental Electronics analog transmitter, which had been deployed successfully by the station for more than 20 years. "We originally considered purchasing separate digital and analog transmitters and combining them at our antenna, which is equipped to accept dual feeds," said WQED Director of Engineering Paul Byers. "But because of the high reject load involved in combining the two signals, we found the expense in power losses to be unacceptable. As a one-box solution for HD radio broadcasting, the 816HD spares us from those power losses, plus it eliminated the need for messy connections, extra transmission lines, and antenna tower modifications." The 816HD is a new solution for implementing analog and digital simulcasting with no need for a second IBOC transmitter, separate HD antenna, or lossy combiner. It utilizes a simple RF path and does not require tower or HVAC modifications, providing stations broadcasting analog signals with an easy transition to HD radio broadcasting.
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| Transactions |
1.025M KTFX-AM Tulsa (Sand Springs OK) from K95.5 Inc. (William H. Payne) to Davidson Media Station KTFX Licensee LLC, a subsidiary of Davidson Media Group LLC (Peter Davidson). 51,250 escrow, balance in cash at closing. LMA 10/14/05. [File date 9/30/05.]
775K KDLS AM & FM Des Moines IA (Perry IA). 100% of Perry Broadcasting Company from Chester P. Coleman to Latin Broadcasting Corporation (Pedro Zamore, Jorge O. Hernandez-Angulo, Raul Ortal). Forgiveness of debt. [File date 9/30/05.]
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| Stock Talk |
How low will they go?
Stocks dropped again as the government reported a decline in durable goods orders and worries about GM's financial health sent its stock down 6.8%. The Dow Industrials dropped 115 points, or 1.1%, to 10,230.
Nearly all radio stocks were lower. The Radio Index declined 3.770, or 2%, to a year-to-date low of 183.644. The biggest declines were for Saga and Beasley, 3.5%, and Entravision, 3.4%.
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| Radio Stocks |
Here's how stocks fared on Thursday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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37.41
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-0.41
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Jeff-Pilot
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JP
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53.28
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-0.50
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Beasley
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BBGI
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13.63
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-0.49
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Journal Comm.
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JRN
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13.70
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-0.28
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| Citadel |
CDL |
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13.41 |
-0.11 |
Radio One, Cl. A
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ROIA
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11.43
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-0.24
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Clear Channel
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CCU
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30.14
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-0.48
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Radio One, Cl. D
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ROIAK
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11.51
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-0.16
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Cox Radio
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CXR
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14.00
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-0.37
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Regent
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RGCI
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4.75
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-0.14
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Cumulus
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CMLS
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10.85
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-0.27
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Saga Commun.
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SGA
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12.04
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-0.43
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Disney
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DIS
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23.42
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-0.16
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Salem Comm.
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SALM
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17.64
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+0.15
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Emmis
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EMMS
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19.11
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-0.39
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Sirius Sat. Radio
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SIRI
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5.86
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-0.44
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| Entercom |
ETM
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27.77
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-0.59
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Spanish Bcg.
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SBSA
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6.12
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-0.14
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Entravision
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EVC
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7.44
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-0.26
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Univision
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UVN
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24.94
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-0.56
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Fisher
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FSCI
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46.52
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-1.17
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Viacom, Cl. A
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VIA
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30.92
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-0.32
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Gaylord
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GET
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39.30
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-4.15
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Viacom, Cl. B
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VIAb
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30.92
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-0.17
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Hearst-Argyle
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HTV
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23.55
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-0.26
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Westwood One
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WON
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18.23
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-0.19
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Interep
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IREP
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0.44
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unch
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XM Sat. Radio
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XMSR
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28.07
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-3.14
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International Bcg.
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IBCS
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0.01
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unch
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-
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-
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- |
-
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-
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Bounceback
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 We want to
hear from you.
This is your column, so send your comments to [email protected]
Regarding the prominent anonymous person's comments on MRC reform (1/26/05 RBR #210)...
I agree with this writer with the parity issue and sharing costs for ratings services. There is also another issue regarding technology and current TV audience measurements, media buying and planning that may flip this ship over. Recently GM announced it was moving all its television advertising over to "measurable response." The implication is that GM is very concerned with what the advertising is doing... response to the money invested. They are going to use Direct Response concepts, maximize results and minimize costs. This is something many are thinking about, but GM is the one who stepped up and questioned current buying strategies and most importantly, the value of ratings. Seems ratings are more questionable these days when results are not forthcoming. The question is how do I get more bang for my buck which I can measure, not guess at? The answer is new technology data platforms being put into place in the Direct TV industry. It's not enough to measure the audience... who is measuring the results??
Stan Elgart
President
Felsgart Communications
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Below the Fold
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Ad Biz
Google may extend ad-brokering system to television spots, Considering ways to extend its ad-brokering
Washington Beat
Panel takes on minority ownership issues, Look at the tangled history of minority ownership of broadcast properties
TVBR - TV NEWS
Barrett to Iger: We're in this together, Disappointment was that I think the affiliates should be participants
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Radio Media Moves
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Bailey to NextMedia
NextMedia has hired Kevin Bailey as General Sales Manager for WSSR-FM; WRXQ-FM; WJOL-AM and WCCQ-FM in Joliet, Illinois. He had previously worked for Three Eagles and Clear Channel.
Upping the Piper
NextMedia has promoted Roger Piper to General Sales Manager for WERV-FM Aurora, IL, part of the company's Suburban Chicago operation.
PromoSuite
grows sales team
Radio broadcast software provider PromoSuite announced the promotion of Rachel Field to Senior Account Executive and the addition of Christyna Ogonis as its newest AE. Field joined PromoSuite in April, 2000. Ogonis joins PromoSuite after gaining hands on experience at Syracuse University's WJPZ-FM.
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TVBR - TV News
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Barrett to Iger:
We're in this together
Hearst-Argyle Television CEO David Barrett says Disney's ABC was pretty smart to sign up first with Apple to provide programming for its new video iPods (10/13/05 TVBR #201), but he has a bone to pick with Disney CEO Bob Iger. "I don't fault them for being creative and being aggressive in how they want to exploit some of the content that they own. My disappointment was that I think the affiliates should be participants in that business. We're the ones who are airing the shows in 75% of the country that ABC does not own [the local stations]. We're doing the marketing and promotion and contributing to the value creation of those shows, which enabled them to be exploited on another platform," Barrett told analysts in his quarterly conference call. He compared the iPod repurposing of ABC content to the situation several years ago when the network affiliates secured an economic participation in SoapNet when ABC wanted to repurpose its soap operas on cable. There have been concerns that making downloads available for purchase will diminish the syndication value of ABC's shows, but Barrett said the particular shows chosen to go first on the video iPods - - "Desperate Housewives" and "Lost" - - have ongoing story lines and don't do nearly as well in reruns as some other shows where each episode stands alone, so their syndication value may not be as great either.
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More News Headlines
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New deal for Farid
The compensation committee of the board of directors at Citadel Broadcasting has approved a new pay package for CEO Farid Suleman. He'll now get a base salary of 1.25 million bucks a year, plus a bonus of 1-2 million. He was also granted 1.25 million restricted shares of stock which will vest in three installments.
American Biker Minute adds WKLC
Envision Radio's American Biker Minute added WKLC-FM Charleston, WV as its newest affiliate to the daily radio vignette. American Biker Minute is a 60-second motorcycle lifestyle segment that can be played as a stand-alone feature in mornings and throughout the day.
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RBR Radar 2005
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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Pressure grows for
VNU sale or spin-off
If you're placing a bet on whether of not VNU will carry through its seven billion bucks deal to acquire IMS Health, the smart money now is on the deal being dropped (even though it cleared US antitrust review yesterday). Reports in the European financial press say institutional investors holding more than 40% of VNU's shares have made it clear to CEO Rob van den Bergh that they are dead-set against the transaction. But while the IMS deal is likely to be called off, the unpopular move by VNU management has motivated the big investors to demand change at the company, so pressure is growing for VNU management to either buy back stock, sell off assets or sell the entire company to the highest bidder. This week's news of a buyout bid being put together by KKR and Blackstone Group makes the latter a real possibility and adds to the pressure on management.
RBR observation: In either an asset sale or breakup scenario, it appears the piece of VNU most likely to be in play is its Business Information division (magazines and trade shows). It includes such well known names as Adweek, Billboard, Brandweek, Editor & Publisher, Mediaweek and The Hollywood Reporter, but also such obscure titles as EMB (Embroidery/Monogram Business Magazine), Progressive Grocer, Watercolor and Watch Aficionado. Big investors don't see the division as a major growth vehicle and would be happy to see it sold off. 10/27/05 RBR #211
Get it in the file or file 10K
You will be filing up to 10K dollars with the US Treasury at the behest of the FCC, if your station's public file is found to be not up to snuff. Soon-to-be-sold Liberty Corp., which recently had a few stations excused or admonished for irregularities in its children's advertising, or the records of same, will have to cough up some dough this time. NBC WALB-TV 10 in Albany GA and ABC KAIT-TV 8 in Jonesboro AR are the guilty parties. FCC waved both through to their renewals, but the public file violations were warranted serious enough for fines to be levied. WALB is liable for 10K, KAIT for 4K.
RBR observation: Who is responsible for making sure the public file at your station is properly maintained? If you cannot instantly answer that question, you may want to put 10K in there right now so you'll have it when it's your turn to pay a fine. Publisher note: RBR will be emailing a full eight page 'What you need to know in your public file' during the end of November written by FCC attorney Gregg Skall just for RBR / TVBR - Members only. Think what you would pay an FCC attorney for this vital information - again RBR Members Only.
10/27/05 RBR #211
Bounce Back on Howard
Stern's replacements
Your observations today have been amazing. Like anyone who dares to speculate, you are right some of the time. Regarding accountability. Accountability will be the operational word-of-choice when Wall Street does what baseball teams do when the team loses - - Fire the Manager. Editor's note: We agree and this case and in the future or 2006 do not fire the GM but Fired the CEO who made the decision without the GM's or PD's input at the local level. Wall Street guys have to get tougher on the CEO and accountability and stop laughing on conference calls.
10/27/05 RBR #211
Stern leaves financial
challenge for Infinity
With an unprecedented task of re-launching 27 radio stations all at once (it wasn't so long ago that a single company couldn't even own that many), Infinity is in line for a financial hit. The question, though, is how much of a hit? RBR observation: The 100 million in annual advertising that Infinity's stations book for Stern's show may not even tell the whole story. Some of those stations are so dependent on Stern that a considerable amount of their ad sales for other dayparts come from package deals that advertisers have to take to get their spots on the sold-out morning show. At least now sales staffs at those 27 stations know what it is they're supposed to be selling for January (and some even sooner). And then there are the syndication revenues. Some of that will be replaced by syndication of the new shows to non-Infinity stations by Westwood One (Hollander says to expect announcements soon). But all of that will take time and, for now, no one can predict what audience numbers Roth, Carolla and Rover will generate for Infinity's stations or anyone else's. What is certain is that the biggest revenue hit will ! come in Q1 of 2006, coincidentally the first quarter for CBS Corp. to fly solo from Viacom. CEO Les Moonves and CFO Fred Reynolds are soon going to have to have some real numbers from Hollander in order to give guidance to Wall Street on Q1 for their new company.
10/26/05 RBR #210
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