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Volume 24, Issue 214, Jim Carnegie, Editor & Publisher
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Thursday Morning November 1st, 2007
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Radio News ®
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 No announcement
on Lincoln sale
One analyst yesterday pressed Lincoln Financial Group CEO Dennis Glass for an answer about the status of Lincoln Financial Media - "is this thing for sale, or not?" CFO Fred Crawford, who is handling the strategic review of the radio and TV properties, stepped in to supply this answer: "What I would tell you is that we're very deep into the process and I would expect to be making further comments, updating you more specifically on the outcome of our media project and where we stand, over the course of the coming weeks - perhaps sooner, it depends on how things develop. So, at this point in time I'm not ready to give you a specific update on that, other than to say we're deep into the process." Lincoln Financial Group had issued its Q3 results a day earlier (10/31/07 RBR #213).
RBR observation: A non-answer answer if ever we heard one. So, we wait. As reported previously, our sources say Raycom has the inside track to buy the TV group for about 500 million, but that the radio stations will be sold in pieces for a total of about 650 million. The other piece, the sports broadcast operation, is expected to bring about 50 million.
 FCC gets an earful on localism
NAB's Marcellus Alexander pointed out at yesterday's FCC Localism Forum that broadcasters cater to their local audience or they go out of business. Eleven other witnesses, including Capitol Broadcasting's Jim Goodmon agreed, at best, in part, or not at all. Goodman asked that no changes in ownership rules be made until the new realities of digital broadcasting are fully understood. He said in the new paradigm, his two Raleigh television stations could well be the equivalent of eight, and that one FM station could equal three. Why would anyone loosen the rules until that situation is sorted out? He said the thing to do is finish the regulatory framework necessary to get the digital switch done. Also, he openly acknowledged the withering criticism leveled at broadcasters and did something you rarely hear management do -- he volunteered for more paperwork. He said he'd welcome the opportunity to provide a quarterly report detailing exactly what his stations do for their local community, and asked only that a proceeding be initiated to define just what public interest means in real terms.
| Read More |
RBR observation: This is the second time in two weeks that we have heard a prominent regional broadcast owner refuse to take a bullet for the big consolidated broadcast companies that seem to be the cause of most of the heat being directed at the business. Goodmon followed Russ Withers, who declined to defend his competitor Clear Channel under questioning from Byron Dorgan (D-ND) at a 10/14/07 Senate Commerce Committee hearing. To underscore, Goodmon said no to deregulation and yes to public interest standards and reporting requirements. Extraordinary.
| Testimony summaries here |
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Commissioners sound off
FCC Democrats Michael Copps and Jonathan Adelstein are treating the upcoming court-ordered review of media ownership rules with extreme skepticism. Republican Deborah Taylor Tate, on the other hand, seems ready to bring the matter to a conclusion. Robert McDowell (R) is as noncommittal on the topic as he was when he first met with the press just after moving into the 8th Floor. Finally, Kevin Martin (R) had proposals to mitigate problems of competition, localism and diversity, including reinstatement of the minority tax certificate program, leasing of digital side channels and getting more LPFMs up and running.
| Here are highlights of their testimony |
 Toyota to launch first XM factory-equipped models
XM Satellite Radio announced that the all-new 2009 Toyota Corolla and Matrix will be the first Toyota brand vehicles to offer XM Radio as a factory-equipped feature. The models will also offer XM NavTraffic as an option with the available GPS navigation systems. XM also announced the additional expansion of XM Radio as a factory-installed standard feature on the 2009 Elantra Touring, a concept revealed at the 2007 SEMA Show. While this will be the first time that Toyota has offered XM factory-installed on vehicles with the Toyota nameplate, it already offers the receivers as factory installed features on the Lexus LS 460 and 600h models, and they will be available factory installed on the upcoming 2008 LX 570. Toyota says its annual factory production of XM-equipped vehicles is expected to exceed one million by 2010. Every Toyota and Lexus vehicle equipped with factory-installed XM comes with a three month trial subscription.
Another assault on radio license rebuffed
Marsha Farley believed that the license renewal for WQXR-FM New York should have been denied, not necessarily for what it did or didn't do, but because of what it's licensee didn't do. A story Farley wanted to see in the New York Times was never written, nor was a version aired on the station, leading her to conclude that the company is not fit to be a licensee. Farley says that one Frederick Lembeck operates a website which has "documentary proof" that NYT is in possession of "evidence of dishonesty in the casino industry" which it is suppressing in order to protect its own advertising revenue. Farley says that Lembeck sent a letter to an NYT exec back in 1997 detailing corruption in the gaming industry, but there has not yet been a story in the New York Times newspaper. The FCC said, "Viewed in its most tolerant light, Petitioner makes the implied suggestion that the gaming industry information should have been broadcast on WQXR-FM." However, there are no specific allegations, and even if there were, the FCC would have very little or no jurisdiction over the matter "in the absence of evidence that the licensee has falsified, distorted or suppressed the news." The First Amendment, and the licensee's judgment on what is newsworthy for its facility, carry the day.
RBR observation: A radio station goes on trial because of a story a newspaper didn't write? It is probably but a matter of time before a broadcaster accidentally cuts someone off in traffic and is then subject to a Petition to Deny on grounds that their careless driving renders them unsuitable to operate a broadcast license.
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Ad Business Report TM
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Potential WGA Strike: radio may benefit
With Writers Guild of America writers poised to strike as early as today, we asked media agencies: If this strike happens, what would it mean to buying, planning, make-goods, etc. How would this affect business in general in the first month, second month and beyond? Might this flow dollars into radio for clients and agencies that aren't thrilled with the options presented by the networks?
Steve Lanzano, MPG COO, tells RBR they are already giving clients some contingency plans, but the bottom line is what the length of the strike is going to be. Most don't think it will last a month, but if it does, indeed, there will be really no big hits. Late Night will take a bit of a hit, but it won't be great. But a lot of the shows have stockpiled their scripts. "But when you start to get into Jan-Feb and there's no new programming...already that marketplace is looking at significant premiums in terms of scatter," Lanzano admits. "...there is going to be so much less inventory in the marketplace and clearly the market is going to get tighter. There are going to be more and more make-goods."
 Word has it the Daytime soaps are poised to hire scab writers. As Carat's Shari Anne Brill pointed out yesterday in our TVBR epaper (10/31/07 TVBR #213), the Teamsters (set crews, etc.) may stage a solidarity strike with the WGA-scab writers increase the chances of that happening ten-fold. Jason Kanefsky (pictured), MPG SVP/National Broadcast, says if there is a unity strike, "You might as well turn the key off. Cable becomes primetime. And it really becomes about acquisitions." What NBC can do is move inventory from their cable networks like Project Runway or Burn Notice, onto the broadcast network. Fox is a global company as well and can move stuff over from FX, etc. Broadcast nets have plenty of show archives they can move into primetime as well. But as Kanefsky pointed out, when he starts to see "Love Boat" airing, he's going to be worried.
If all this goes down, we're going to see some real creative stuff come down from the programming folks on the fly to create momentum. They will, in essence, become DJs of the TV airwaves. An Aaron Spelling theme night, etc...But what will advertisers pay-especially the top-tier ones? All upfront deals will go out the window. It's very important that the broadcast TV networks treat the agencies and advertisers with kid gloves if this goes down-because it will come back to haunt them in the next upfront. Overall, a strike may help all other forms of media-especially radio broadcast-with its reach, frequency and immediacy options for advertisers.
IPG acquires Translation Consulting + Brand Imaging
Interpublic Group has acquired Translation Consulting + Brand Imaging, a branded entertainment agency. Translation creates high-visibility promotions for marketers in youth and urban markets. Translation will operate as a standalone unit and will be a shared resource for all IPG companies. The unit will continue to be led by Steve Stoute, the company's founder and COO. Translation has built programs for Reebok and General Motors, and has worked with celebs like Beyoncé, Justin Timberlake, Jay-Z and Gwen Stefani.
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| Media Business Report TM |
 AOL will allow users
to opt out of targeted ads
AOL announced it will give consumers enhanced notice and info about behaviorally targeted advertising. When fully implemented, a new program will deliver millions of public service banner ads across AOL's O&O and third-party networks. The move is timed to coincide with FTC meetings on consumer-protection issues related to online advertising, which starts today. "Our goal with this program is to engender greater trust for targeted advertising by communicating with consumers in a more visible way, and by providing them more information about their choices," said Curt Viebranz, President of Platform-A. "AOL believes that doing more to explain to users the choices they have over the way their data is used, and helping them exercise those preferences will help them feel more in control." Banner ads providing enhanced notice and choice are already appearing on sites in the TACODA network. When fully implemented by the end of this year, the program will extend to AOL's entire display advertising network by the end of 2007. AOL's display ad network is the largest in the world, with a combined reach of more than 91% of online consumers in the U.S. across more than 7,000 websites. The network includes AOL's owned-and-operated sites as well as Advertising.com's and TACODA's third-party networks.
AOL and Campbell Soup launch food features
AOL and Campbell Soup have launched "Dinner Tonight" and "Play With Your Food" on AOL Food (food.aol.com). "Dinner Tonight" features new daily recipes for successfully preparing great evening meals, the site will provide the ability to store, update and customize favorite recipes. AOL also will incorporate Campbell's comprehensive database of more than 2,000 easy-to-make recipes that are kid-friendly and great for both everyday meals and special occasions. After dinner, it's time for dessert with "Play with Your Food," the newly-created area that will launch next month whose overarching theme is that food equals entertainment. Bringing generations closer together through fun-filled activities in the kitchen, "Play with Your Food" includes articles, quizzes, food trivia, polls and user-generated photo galleries and videos. The Campbell sponsorship will also include the integration of many of Campbell's market-leading brands, including "Prego" pasta sauce, "Pace" Mexican sauce, "Swanson" broth and "Campbell's" condensed soup, throughout AOL.com as part of banner and pre-roll ads.
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| Media Markets & Money TM |
Close encounter in Santa Fe
Hutton Broadcasting is now in control of KLBU-FM, serving the Santa Fe market. Ted Hutton has been an active acquirer during the year, and when all the dealing is done he'll have a one-AM, four-FM cluster in the market. According to broker Michael J. Bergner, who handled the KLBU-FM acquisition, the price was 450K. The seller was Blu Media LLC, headed by Robert Brahms.
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| Washington Business Report TM |
 FCC expands franchising guideline
When the FCFC established "rules and guidance" to prohibit local franchise authorities "from unreasonably refusing to award competitive franchises for the provision of cable services," it left incumbent cable companies subject to the old rules. Today, it extended the new provision to incumbents over the objections of the two Democratic commissioners, who objected to the measure in the first place. The thrust of the earlier order was to make sure local governments did not hinder provision of competition, primarily from telco entrants into the MVPD business, by asking for too much money, too much channel capacity for local government/access channels, or other perks for the local community. It now is saying that cable incumbents should also be free from such "unreasonable" local demands.
RBR observation: The Democrats believe the Commission has gone so far past its jurisdiction that it is legislating rather than regulating in defiance of the very principles of federalism. But if the new rules are going to exist, it is only fair that all competitors, new or old, are playing on a level field. Meanwhile, a national franchise regime has stalled indefinitely in Congress, statewide franchise regimes are being put in place here and there, and telcos are expanding their businesses community by community just the way cable started out for the time being.
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| Entertainment Business Report TM |
 Westwood One Presents "A Tribute to Porter Wagoner"
Westwood One announced a specially produced radio program remembering Country music legend Porter Wagoner, October 30 - November 4, 2007. Hosted by Rowdy Yates, host of Westwood One's "Country Gold", A Tribute to Porter Wagoner looks back at the life and legacy of this Country Music Hall of Famer featuring his greatest hits and rare audio from Wagoner himself. The special will also include remembrances from Wagoner's friends including Grand Ole Opry star Trisha Yearwood and Marty Stuart, producer of Wagoner's last album.
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| Transactions |
850K WTMM-AM Albany-Schenectady-Troy NY (Rensselaer NY) from Regent Licensee of Albany Inc., a subsidiary of Regent Communications Inc. (William L. Stakelin) to Capital Broadcasting Inc. (Paul Vandenburgh, James Giorvin, Salvatore D. Ferlazzo, Brian Crowley et al). 45K escrow, balance in cash at closing. LMA 11/1/07. [File date 10/26/07.]
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| Stock Talk |
Rate cut, stocks up
The Fed delivered another rate cut and stock traders celebrated. The Dow Industrials rose 138 points, or 1%, to 13,930.
Radio stocks went along for the ride. The Radio Index rose 0.577, or 0.5%, to 118.822. Emmis rose 2.4% and Saga 2.2%. Lincoln Financial Group, which is primarily an insurance company, plunged 5.9% after announcing its Q3 results.
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| Radio Stocks |
Here's how stocks fared on Wednesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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50.62
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+0.62
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Google
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GOOG
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707.00
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+12.23
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Beasley
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BBGI
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7.53
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-0.12
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Hearst-Argyle
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HTV
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22.30
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-0.46
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| CBS CI. B |
CBS |
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28.70
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+0.32
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Journal Comm.
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JRN
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8.91
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+0.12
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| CBS CI. A |
CBSa |
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28.74
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+0.32
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Lincoln Natl.
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LNC
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62.37
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-3.89
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| Citadel |
CDL |
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4.40 |
+0.05 |
Radio One, Cl. A
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ROIA
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3.49
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+0.01
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Clear Channel
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CCU
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37.77
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+0.06
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Radio One, Cl. D
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ROIAK
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3.49
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+0.03
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Cox Radio
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CXR
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12.08
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-0.02
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Regent
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RGCI
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2.30
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+0.02
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Cumulus
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CMLS
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10.31
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-0.06
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Saga Commun.
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SGA
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7.30
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+0.16
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Debut Bcg.
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DBTB
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0.85
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unch
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Salem Comm.
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SALM
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8.00
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-0.03
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Disney
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DIS
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34.63
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+0.34
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Sirius Sat. Radio
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SIRI
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3.36
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+0.07
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Emmis
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EMMS
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5.19
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+0.12
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Spanish Bcg.
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SBSA
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2.60
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+0.02
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Entercom
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ETM
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18.55
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unch
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SWMX
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SMWX
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0.03
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unch
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Entravision
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EVC
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9.10
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+0.14
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Westwood One
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WON
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2.14
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+0.01
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Fisher
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FSCI
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48.27
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-0.34
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XM Sat. Radio
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XMSR
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13.28
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-0.21
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Bounceback
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 We want to
hear from you.
This is your column, so send your comments and
a photo to [email protected]
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Below the Fold
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Ad Business Report
Potential WGA Strike
Radio may benefit as inventory in heavy Winter Season with Holiday's could mean windfall...
Media Business Report
AOL will allow
Users to opt out of targeted ads as move is timed to coincide w/ FTC meetings...
Media, Markets & Money
Close encounter in Santa Fe
Hutton Broadcasting is now in control of KLBU-FM...
Washington Business Report
FCC expands franchising guideline
Extended the new provision to incumbents over the objections of the 2 Dem commissioners...
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Radio Media Moves
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 WBEB-FM reups with Patrick
B101, WBEB-FM Philadelphia announced the successful relationship with veteran radio broadcaster Terry Patrick is being extended. This will mark Patrick's 10th consecutive year with the top-rated AC station. Affirming the strong bond with Patrick, Blaise Howard, Vice President and General Manager of B-101 commented, "We're very happy to have Terry continue with us here at B101," "His innovative "hands on" creative approach to our station and staff has been instrumental in moving B101 forward. We're very lucky to have him!"
Joining the board
Javier Escobedo has been elected to the board of directors of Public Radio International. Escobedo is managing partner of the advertising agency OLE.
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More News Headlines
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Skip Holmes dead at 68
The Macon Telegraph reports that police found veteran DJ Skip Holmes dead in his home, apparently of natural causes. He was 68. Holmes began and ended his radio career in his hometown of Warner Robbins, GA, with a successful big market career in between that included major stations in Atlanta and Miami.
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RBR Radar 2007
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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Sirius hoping for holiday joy
Wall Street is concerned about soft retail sales of satellite radio receivers, but Sirius CEO Mel Karmazin says his retail partners say they're expecting a good holiday sales season In his conference call, Karmazin remained optimistic about winning merger approval for a closing before the end of the year. How long will it take to close the merger once the approval comes, one analyst asked? Karmazin said if the approval comes on Monday, the closing will be on Tuesday.
RBR observation: Here are some numbers we found really interesting in the report from Sirius. In Q3 the company had 999,284 gross subscriber additions, but it deactivated 474,346 previous subscribers. They are almost to the point of losing one subscriber for every two new ones added.
10/31/07 RBR #213
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RBR Classifieds
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New Listing
Regional Sales Manager
JonesTM in Dallas, home of the Cowboys and the opportunity to work with the best talent in the business today as we need a top RSM with 2-5 yrs pro sales experience; with heavy outbound e-mail and phone prospecting; solid presentation, computer skills. Drug screening is a condition of employment. EOE. There is a lot more to this opening. See Radio Careers
New Listing
Ad Sales Rep
Imagine Media Ad Sales Without - Long Commutes, 8:30 Sales Meetings, Bonus Spots, or selling Print in an Electronic medium. More Reasons to consider Selling Advertising with RBR. Honestly, we are so busy we can not service all the accounts. Can you help us? Our Budgets Are Realistic. Compensation plan is good. If you are good, our Compensation plan is Great. If you are Great, our Compensation plan is Unbelievable! In confidence, contact Publisher Jim Carnegie at [email protected].
New Listing
Associate Web Editor
Ideal candidate will work with our News Team developing / delivering quality web & e-paper content on a daily basis requiring a tremendous amount of creativity, flexibility and an ability to work on a deadline. Skills: Intermediate understanding of how websites, web pages are constructed and ability to write "News" ready copy. Plus, important, must be a strong communicator both Verbal / Written and able to manage multiple tasks. See Radio Careers
Additional Positions
Available in RBR Classifieds.
See Radio Careers.
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