Welcome to RBR's Daily Epaper
Volume 21, Issue 218, Jim Carnegie, Editor & Publisher
Monday Morning November 8th, 2004

Radio News®

"Less is More" is back to basics
That's the view of NextMedia Executive Chairman Carl Hirsch. Although he didn't mention Clear Channel or "Less is More" by name, Hirsch was obviously talking about his company's giant competitor when he told analysts that initiatives recently begun in radio will improve the "minute to minute excellence of our on-air product." In his view, what's happening isn't anything new, but rather getting back to basics "which made radio a compelling local medium." A day earlier, Citadel Broadcasting COO Judy Ellis told analysts that her company wasn't changing it's inventory loads, but would be making sure that local managers stuck with the limits - - and CEO Farid Suleman applauded Clear Channel's efforts to sell shorter spots, with the caveat that moving more advertisers to 30-second spots will only be a plus if stations really get 75% of the price of a 60.

Publisher Carnegie's Note: Said this last Friday that it will take everyone to make the 'Less is More' to work for the local radio and television business. All of us are under stressful times and grid it out every day. Look for guidance in the debut January issue of Radio & Television Business Report monthly magazine come January 2005. Look for - What is In and What is Out. Stay focused with us to increase business during the first two quarters in '05. We will see some tough times and your new road map is waiting for you with the debut of Radio & Television Business Report - The Real Business Magazine- so sign up below to - get it. From the editors that bring you RBR & TVBR - This is not your grandpa's fluff newspaper or other magazine - We are Business.

Burlington buy ushers in new era of oversight
White Park Broadcasting, a subsidiary of Northeast Broadcasting Company (NEBCO), is acquiring WVAA-AM Burlington VT from Radio Vermont for 400K dollars. While that amount is not going to cause any ripples on Wall Street, the broader outlines of this transaction point to where the nuts and bolts of station trading are no doubt headed. First, let's get the nuts and bolts of the deal out of the way. Kenley D. Squire is principal of the seller, and on the other side of the trading table are Steven A. Silberberg and Edward F. Flanagan. They've already put up 10K in earnest money, will pay an additional 90K at closing and will pay the rest over time pursuant to terms of a promissory note. Here's the problem: | More... |

FCC auctions FMs for 100K apiece
That's the average, anyway, as the fifth round of FCC Auction No. 37 proceeds. Roughly 28.5M dollars have been placed on the table for 288 available licenses. The biggest bid is from Community Radio Inc., which is putting up just under 1.5M to get a CP in Brewster MA on Cape Cod. Community Radio is also the standing high bidder overall, with over 2.5M committed to four stations - - the others are in Pacific Junction IA, Normal IL and Palisade CO. It has also bid on eight additional stations, which currently are in the control of higher bidders - - they are in states such as Arizona, Iowa, Illinois, Kansas, Mississippi, New York, South Dakota and West Virginia. At this point in the auction, the rest of the top ten standing bid holderws are (2) Visionary Related Entertainment (2 stations, 1.018M); (3) College Creek Broadcasting (10 stations, 997K); (4) Cumulus (4 stations, 942K); (5) Amanda Mintz (1 station, 937K); (6) Aurora Communications (2 stations, 926K); (7) CODO Group (2 stations, 717.1K); (8) Jesse Porillo (2 stations, 678K); (9) Bigglesworth Broadcasting (4 stations, 523K); and (10) Christopher Miller (2 stations, 467K).


Tauzin in run-off
Many of you probably thought Billy Tauzin was done in the House. And if you're thinking about the one with two "I's" after his name, you'd be right. But vying to take his seat is none other than Billy Tauzin III, who did not come particularly close to winning Louisiana's Third District seat in the US Congress. You must get over 50% of the vote under Louisiana's highly unusual system, and he only managed 32%, throwing him into a run-off with a Democrat with 24%. Six candidates were on the ballot, three from each major party, and if votes adhere to party lines established on Tuesday, Tauzin should win easily in the run-off. Republican held a 59%-41% advantage overall.

Yo ho ho and a bottle of rum
We call radio pirates pirates because, er, well, we do. But when one of them is operating from a room in the Rum Runner Caribbean Restaurant and Lounge, then they have truly earned the title Radio Pirate. This buccaneer is a member in good standing of the Orlando division in the burgeoning Florida pirate armada. His name is Everald Brown, and the action against his 95.9 mHz station has been kicking around the FCC for some time now (7/23/03 RBR Daily Epaper #143). As we wrote in the earlier item, Brown initially did not contest the FCC fine. We find out now that he thought it only a warning. Neither that nor his current plea of poverty have earned him a waiver or reduction of the fine. In the first instance, ignorance is no excuse. In the second, he didn't bother to document his poverty claim. So the fine sticks.

Remember any of these?
We're sure there are more, but in our recent office move, we came across media kits for a variety of radio-web companies that long ago bit the dust after the dot-com bust. Now that web streaming seems to be getting off the ground again, slowly but surely being recognized as a viable ad buy, here's a short list of those who couldn't convince the buyers before the VC ran dry (or for other reasons): | More... |


Conference Calls Q3 2004
NextMedia outperformed in Q3
The radio industry was up only 1% in Q3, so NextMedia was happy to report that pro forma radio revenues were up 3.4% and outdoor was up 6.5%. Including acquisitions, revenues were up 11.5% for the quarter to 31 million. The company is projecting that Q4 radio revenues will be up 4%. President Steve Dinetz told analysts that October, with political ads, was up 10%, November was pacing up slightly and December is currently flat. With all of the publicity that new audio technologies have been getting, Dinetz fired back in the company's conference call, stating that satellite radio and iPods aren't taking any listeners away from his company's radio stations.

Fisher revenues up 11.1%
Political revenues and local ads were the drivers for Q3 at Fisher Communications, pushing revenues up 11.1% to 40.3 million. The company's loss from operations decreased to 1.1 million from 11.8 million a year earlier. "Though the industry has seen a general softness in other national advertising, we are beginning to see positive signs that the Northwest economy is improving, and we are pleased that ABC television network programming is showing early signs of success this season," said President and CEO William Krippaehne. Fisher Broadcasting President Ben Tucker told analysts that while he welcomes the ratings improvement by ABC, the network isn't yet improving its lead-in to local late newscasts at Fisher's two big ABC affiliates in Seattle and Portland. Those two stations account for about half of the company's revenues. On the radio front, Tucker said the Seattle market was flat in Q3, but that the Fisher stations did better than that.


Adbiz©

MindShare gets Unilever's European account as well
MindShare has won Unilever's 1.25 billion European media account, adding to the current US deal with Mindshare NA. MindShare beat incumbent Initiative Media and Carat in the review. Mindshare already had Germany and Italy, but the new deal adds the rest of the EU.

Editor's Note: Be sure to read our interview with MindShare NA CEO Marc Goldstein in the Deubt January issue of Radio & Television Business Report - The Real Business Magazine, which mails mid-December. Sign up below for your copy or call April McLynn to subscribe, at 703-492-8191.

SC Johnson launches latest in family campaign
SC Johnson launched the next phase of its family ad campaign yesterday. Through these ads, consumers hear more about what makes this family-owned company unique and one that they can trust. SC Johnson is led by a fifth-generation family member, Dr. Fisk Johnson, who has been leading the company as Chairman since 2000. Last year, Fisk was featured in the company's television ads along with his father, Sam Johnson. This is the first time SC Johnson is airing its family campaign ads since Sam Johnson's passing in May 2004. The new ads designed to build upon the successes that SC Johnson experienced over the last few years in its "A Family Company" campaign. The company hopes the advertising spots will help consumers recognize SC Johnson's large family of brands while also identifying SC Johnson as a company that listens to and understands the demands of today's families. The first 30-second television spot, titled "You Listen" and featuring the Glade and Windex brands, debuted during ABC's "Extreme Home Makeover Home Edition". The campaign is also slated to appear during upcoming holiday specials including the Macy's Thanksgiving Day Parade and "It's a Wonderful Life" among other family-oriented programming. Foote Cone & Belding Chicago created the ads.

Benihana launches new commercial
Following up on its campaign featuring a tongue-in-cheek spoof of many martial arts box office hits, Benihana launched the latest TV spot featuring the magic of anime (Japanese version of animation) and guaranteed to capture the attention of younger diners who make up the new generation of Benihana loyal customers. The fast-paced thirty-second spot took over seven months to produce and included more than 9000 sketches developed in a collaborative effort of anime artists spanning two coasts and three continents. Audiences will experience an animated action adventure featuring a young couple in love, a dramatic motorcycle chase scene and eventually a surprise birthday party at Benihana. The end result is an esthetically powerful vision originally created by Gad Romann, creative director of The Roman Group. "This is the first generation in American history that is not European-influenced," said Romann.


Media Markets & MoneyTM
I've been workin' on the RR
RR Broadcast Group, comprised of Rex Palmer and Ross Secunda, is entering the Knoxville, Tennessee radio market with a standalone AM station in a 425K deal for Fred Westenberger's WITA-AM. It's a Religion-formatted station on 1490 kHz, part of the F.W. Robbert Broadcasting Group, and is not a big factor in the market's ratings battle.

Moody's upgrades Entercom
Improved financial have made Entercom Communications a better credit risk, according to Moody's Investor's Service. The rating service upgraded the senior implied rating for Entercom to Ba1 from Ba2, and the senior subordinated notes rating to Ba2 from Ba3. "The upgrade reflects the company's modest leverage and strong interest coverage, and cred!t metrics that have been maintained over time, despite acquisition activity and notwithstanding more aggressive debt financing assumptions. The ratings are balanced by management's willingness to continue to use some incremental amount of debt and correspondingly modest increases in financial leverage to effect acquisitions, potentially in large markets, and for share repurchases. The rating upgrades incorporate the impact of Entercom's recently announced additional $100 million stock repurchase program and Moody's belief that the company has more than adequate liquidity to fund the program,"" Moody's said. The rating outlook is stable.

Moody's took the following rating actions:
- Upgraded the $150 million of senior subordinated notes due 2014 to Ba2 from Ba3
- Upgraded the senior implied rating to Ba1 from Ba2
- Upgraded the senior unsecured issuer rating to Ba2 from B1
- Withdrew the former Ba1 ratings for the old senior secured credit facilities
- The rating outlook is stable.


2005: Year of Local Muscle

Publisher Perspective
I began my broadcasting career in 1967 as an on-air talent, then worked my way up to PD for ABC and then to GM. I liked creating as a PD, so I founded RBR in 1983 and have continued creating for the past 22 years.

We all have to create together to win. "Less is More" is not the total answer - we collectively are the answer. Consider this very intently and start your '05 with a clear focus - with real broadcasters at RBR and TVBR focusing on your issues.

RBR/TVBR is relevant news investigated and written by broadcasters for broadcasters. We know the issues; we know the language; and most of all we know how you feel and what you need to do your job.

If you want the January Debut issue at
No Charge, please register now. All orders must be in by Thursday November 18, 2004.



January 2005 Debut!
Radio & Television
Business Report
What Radio & TV both need to overcome in 2005 is the focus of the January Report. If you don't get it then you won't know what lies ahead - so Get It! It's Free!

Respect and success in 2005
Jim Carnegie
Publisher, Editor and Broadcaster

Washington Beat
Timing, confusion are no excuse
The 10K fine against American Family Association's KBMP-FM for a main studio violation and failure to respond to an FCC inquiry will stick. The station is licensed to Enterprise KS, and was being operated as a satellite of KCFN-FM Wichita. However, the operation took effect under those conditions on 3/6/02. Almost seven months prior to receiving an FCC waiver permitting the rebroadcast on 10/31/02. It was hit with a 7K fine for that, and then another 3K was tacked on when AFA failed to respond to FCC questions on the matter. The FCC refused AFA's appeal. The Commission noted that AFA was very familiar with the waiver rule, as it uses it all the time. It should have known that it was not permitted to set up such a situation prior to receiving the FCC's go-ahead. It had also been fined in the past for the exact same violation, at its KBKC-FM in Moberly MO. As for the response violation, AFA said "...it is sometimes confusing to the public to understand the status of a matter in one department that was previously resolved by a different Bureau..." The Media Bureau found this argument without merit, saying that AFA had been put on notice that it was under investigation for the main studio rule violation, which should have eliminated any confusion when it came to answering the FCC's questions. Bottom line: the 10K fine sticks.


Programming
WLS signs Don Wade and Roma for morning drive
After a brief intermission and down to the wire negotiations, Don Wade and Roma returned to morning drive on WLS-AM Chicago today. "We are extremely excited!" explains John Gallagher, President/GM WLS and WRDZ. "The return of Don & Roma allows us to move forward and continue to establish WLS as the dominant News-Talk station for Chicago and the Midwest. We appreciate the patience our morning listeners have shown during this process." Don Wade and Roma are Chicago's longest running morning drive radio team. Wade began at WLS in 1985 and was joined by his wife, Roma in 1986.

More 38th Annual CMA Awards details
Dolly Parton and Reba McEntire have been added to the list of presenters for 38th Annual CMA Awards, to be broadcast live from the Grand Ole Opry House in Nashville, 11/9 on CBS. As previously announced, CMA nominees Brooks & Dunn will host. "CSI Miami" Star Emily Procter, Randy Travis, Phil Vassar and Darryl Worley have also been added as presenters. Dolly Parton will present the night's top honor, Entertainer of the Year, an award she won in 1978. Country superstar Reba McEntire, who is nominated for Female Vocalist of the Year, will host Jim Foglesong's induction into the Country Music Hall of Fame. Foglesong, an educator and former music industry executive will join actor and country music icon Kris Kristofferson as the 91st and 92nd members inducted into the Country Music Hall of Fame. Faith Hill and Willie Nelson will perform during Kristofferson's induction segment. Previously announced presenters are Trace Adkins, Gary Allan, Lisa Hartman Black and husband Clint Black, Buddy Jewell, Lonestar, Joe Nichols, Jamie O'Neal, LeAnn Rimes, SHeDAISY and Blake Shelton. Previously announced performers are hosts Brooks & Dunn, Dierks Bentley, Big & Rich, Clint Black, Jimmy Buffett, Kenny Chesney, Billy Currington, Terri Clark, Sara Evans, Faith Hill, Alan Jackson, Toby Keith, Alison Krauss, Patty Loveless, Martina McBride, Reba McEntire, Tim McGraw, Montgomery Gentry, Willie Nelson, Brad Paisley, Rascal Flatts, Julie Roberts, George Strait, Josh Turner, Shania Twain, Keith Urban and Gretchen Wilson.


Monday Morning Makers & Shakers

Transactions: 9/27/04-10/1/04
The FCC freeze on station trading was fully in effect for commercial radio, where the bulk of trading usually takes place week in and week out, in volume if not in amount. There were no TV or noncom radio transactions this week to pick up any slack, making it the second week in three in which the station trading dollar value and stick count both stood at zero.


Transactions
KKCO-TV Grand Junction-Montrose CO (Grand Junction) from Eagle II Broadcasting LLC to Gray Television Licensee Inc.

WKAT-AM Miami-Ft. Lauderdale (North Miami FL) from Classical 1360 LLC to Salem Communications Corporation.

WRTG-AM, WRTP-AM Raleigh-Durham (Garner, Chapel Hill NC) and WGSB-AM Mebane NC from Radio Training Network Inc. to Estuardo Valdemar Rodriguez and Leonor Rodriguez.

| More... |


Stock Talk
Jobs growth boosts the Dow
A bigger-than-expected jump in employment for October gave a boost to the markets on Friday. The Dow Industrials rose 73 points, or 0.7%, to spend the weekend at 10,388.

Broadcast stocks, however, gave back some of their gains from earlier in the week. The Radio Index was off 1.115, or 0.5%, to 227.130. Univision, which is not part of our index, was the day's big mover, falling 12% after delivering tepid Q4 guidance along with strong Q3 results. Radio One's Class D stock was down 3.2% a day after its earnings report.


Radio Stocks

Here's how stocks fared on Friday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

38.40

+0.82

Jeff-Pilot

JP

49.17

-0.15

Beasley

BBGI

17.04

+0.24

Journal Comm.

JRN

17.05

+0.28

Citadel CDL
15.32 +0.10

Radio One, Cl. A

ROIA

14.12

-0.38

Clear Channel

CCU

33.46

-0.35

Radio One, Cl. D

ROIAK

14.07

-0.47

Cox Radio

CXR

15.95

-0.05

Regent

RGCI

5.81

-0.05

Cumulus

CMLS

16.34

-0.02

Saga Commun.

SGA

17.28

-0.33

Disney

DIS

26.43

+0.11

Salem Comm.

SALM

26.35

-0.25

Emmis

EMMS

19.09

-0.22

Sirius Sat. Radio

SIRI

3.93

+0.01

Entercom

ETM

35.25

-0.19

Spanish Bcg.

SBSA

10.14

-0.20

Entravision

EVC

8.36

-0.01

Univision

UVN

28.79

-4.01

Fisher

FSCI

47.76

-0.35

Viacom, Cl. A

VIA

36.95

-0.44

Gaylord

GET

34.40

+0.27

Viacom, Cl. B

VIAb

36.49

-0.51

Hearst-Argyle

HTV

26.05

unch

Westwood One

WON

23.03

-0.03

Interep

IREP

0.82

-0.03

XM Sat. Radio

XMSR

33.93

+0.81

International Bcg.

IBCS

0.01

unch

-

-

-

-

-



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Upped & Tapped

Powell joins
Clear Channel
No, not the FCC boss - - Kashon Powell has been named Assistant PD and Music Director at Clear Channel's WUSL-FM Philadelphia, with duties to include producing "The Wendy Williams Experience." Powell was previously R&B editor at Radio & Records.


Stations For Sale

AM Opportunities
Great AM's in Wyoming,
Tennessee, Alabama, Virginia,
Idaho and New Mexico
Cliff at Clifton Gardiner & Co (303)758-6900
[email protected]

Opportunities in the West for Groups or Owner Operators. Profitable combos. Major market move-ins (FM and LPTV). AM's, both Rated and Unrated. The Exline Team, Andy McClure, Dean LeGras, 415-479-3484, [email protected]


TVBR - TV News

Mullen sings praises
of consolidation
Media consolidation is being assailed everywhere you look, but Tribune Broadcasting President Pat Mullen isn't buying the claims of critics. "We don't think it stands up to scrutiny. Today's media environment is more robust and competitive than ever," Mullen said last week in the 2004 Quello Center Lecture at Michigan State University in East Lansing. Tribune has been one of the leading advocates for deregulation and now has the most of any company to lose with no final decision on whether the crossownership rule will be scrapped - - and several of its TV stations coming up for renewal in markets where it has daily newspapers (with either temporary waivers or no waiver at all because the newspapers were acquired during the current TV license period). "Scale has become absolutely essential to maintaining competitiveness," Mullen insisted. "It's a tough environment for media companies." The Tribune Broadcasting chief scoffed at the idea that a few giant companies are tightening their grip on the media landscape. Rather, he noted, the Big Three TV networks have seen their market share go from 92% in 1978 to about a third of that, with cable networks now claiming almost 50% of primetime viewing. "The risk of one voice dominating the world of ideas is virtually non-existent," Mullen said. At the local level, Mullen said fragmentation is making it more and more difficult to produce local news at a profit. He noted that WXMI-TV (Ch. 17, Fox) has the highest local news ratings of any of Tribune's stations (a six rating), but is only breaking even financially. "How long can we operate at a deficit?" he asked. In his view, local news is endangered in markets 100+ unless there is more deregulation, including allowing TV crossownership with newspapers. "Deregulation is absolutely necessary for the survival of some stations," Mullen told the university audience.


October Digital
Solutions Magazine

Who Will Sit on the Throne?
The election -What is in it
for Broacasters?

One On One
with PHD's Patrick McNew -
The man that over sees spot
for Chrysler Group.

Engineered For Profit
'05 budgets and capital expenditures, our close up look at who's planning to buy what next year.

October Zinio Solutions Magazine
Read RBR in 2 simple steps:
1.Create a simple account with Zinio and download the Zinio Reader.
2. You can then download the October Issue of RBR




RBR Radar 2004
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Competitors expect gains
from "Less is More"
Clear Channel's "Less is More" initiative is emerging as a hot topic on the quarterly conference calls of every radio group - - and they're all telling Wall Street that the move is going to give a boost to the entire industry, not just Clear Channel. RBR observation: For a company that used to be vilified by its competitors for being the rate whore that was dragging everyone else down, the "Less is More" initiative has really turned around Clear Channel's image in the radio industry. Now the key is to really make the inventory limits stick and put some rate integrity back into radio. The whole radio industry is watching to see if the notorious sinner has really gotten religion. Although the impact will be less direct, radio's attempt to cut clutter and boost rates should be good news for TV as well, helping to put some upward pressure on rates across the media landscape as TV stations again have more open inventory following the election cycle. Industry leaders are trying every way to make and push the positive of 'Less is More' and for the radio business future we trust it works or these words may be true spoken by WWII! Congressional Medal of Honor Recipient, Major Gregory 'Pappy' Boyington once said, "Just name a hero and I'll prove he's a bum." Take heed as we all have to make this work. 11/05/04 RBR #217

Murdoch eyes new business cable channel and could it mean a format spin into Radio
CNNfn is about to become history, but that doesn't mean that NBC Universal's CNBC is going to have the business news network business all to itself for long. Rupert Murdoch confirmed that he is looking at starting a financial news channel under the Fox brand.
TVBR observation: Hello world hit me over the head and say you did not see this coming. Rupert will push the button and go after that financial opening and will probably be the consistent line up of talent now on Fox News Channel (FNC) that will pull it off. TVBR outlook - Don't stretch the Content or the talent like the Neil Cavuto's too far off of FNC or what you built could crumble. Remember what has happened to radio with various spins on Formats and Voice Tracking. And we put money that there will be a Fox Financial News Radio format form this spin. Called Cross Platforming and Marketing. TV's goal in 2005- Time for Local to Muscle Up. See our January Solutions Magazine - Make sure you receive your copy - get it - Solutions Magazine.
11/05/04 TVBR #217

Rep settlement cost
Citadel 16.4 million in Q3
We now have at least partial price tag for Citadel's contentious jump from Interep to Katz as its national rep 13 months ago, which was finally settled in August. Although it's far short of the 65 million that Interep claimed it was owed, Citadel took a 16.4 million non-cash charge against its Q3 financials because of the settlement. Citadel isn't paying Interep any cash directly - - rather, Katz, which is owned by Clear Channel, has settled Citadel's obligations to Interep and Citadel has entered into a long-term contract with Katz which includes some provision to cover the settlement. Our sources indicate, though, that the 16.4 million is only part of the total settlement, so there's more yet to be learned from SEC filings by the companies involved.
11/05/04 RBR #217

RBR observation: Is there an election indecency factor?
There has been speculation in the press, notably up to and including the Wall Street Journal, that the tenor and enforcement of indecency regulations may hang in the balance, depending on who won the presidency. We now know who won, but we don't know the fallout. But we don't think anything was hanging in the balance at all. Truth told, FCC Commissioner Copps wants a license revocation in his scalp belt. The legislative process has continually saddled anti-indecency measures with excess baggage throughout 2004. That is the only thing which has kept a fine increase up to 500K per egregious offense from becoming the law of the land. Look for Congress to make it the law in 2005, if not sooner in its upcoming lame duck session. 11/05/04 RBR #217

Adieu, adios, Adelstein...
Is the name Adelstein going to be synonymous with good-bye? It sure looks like it. His renomination to the FCC has been held up by the White House despite the fact that he enjoys widespread bipartisan support. To top of the reluctance of the White House, he has now lost his sponsor, the defeated Tom Daschle (D-SD), removing what value he may have had as a bargaining chip. The makeup of the FCC in the near future is very much in question. RBR observation: Chairman Powell always answered the question about his job at the FCC with the answer on what the polls showed the President at the time. Now the Mr. Bush is 100% sure and now so is Michael's future either at the FCC or at a higher position. So the next spin is what throne will Michael Powell be sitting on come next year? For sure the throne is turning from porcelain to gold. 11/04/04 RBR #216


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