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Volume 21, Issue 220, Jim Carnegie, Editor & Publisher
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Wednesday Morning November 10th, 2004
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Radio News®
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Hello DC - We have a Problem
NAB postpones battle with satellite radio
The National Association of Broadcasters has dropped an attempt to head off the inclusion of local content on satellite radio services XM and Sirius. The content in question is primarily traffic and weather reports at this time.
RBR observation: Best pour a hot strong cup of coffee this morning and read on. You're going to need that kick. | More... |
Auction average up to nearly 300K/FM
Auction No. 37 is into Round 13, and the total of all standing high bids now sits at over 81M dollars, pushing the average high bid within sniffing distance of $300K a pop - - the average is at 284K and change. College Creek is sitting on 28 high bids totally 7.11M, leading all comers. COCO Group has five highs, for 5.755M. Julie Epperson, with ties to Salem Communications, has four bids good for 4.895M, and Clear Channel subsidiary Citicasters has two bids good for 3.321M. Epperson has placed the #1 bid so far, 3.156M for a CP licensed to Pacific Junction IA. The early top CP, in Brewster MA, is now in 2nd place, with John J. Fuller's 2.95M bid standing on top.
 Will Bush win give broadcasters a Legg up?
Blair Levin of Legg Mason, who was a wheel in the office of ex-FCC chair Reed Hundt, has handicapped the likely impact on broadcasters now that it's known who will have the White House - - and equally significantly, the FCC - - for the next four years. The obvious answer is more of the same. Levin expects that most media issues will continue as backwater items within the White House itself, leaving the Republican majority on the Commission to move along the generally deregulatory path favored by the Bush administration. The fact that media ownership rules have been sent back to the FCC by the courts limit the chances of any immediate relief. Levin thinks the Bush win slightly increases the odds that the 3rd Circuit remand of the rules will be challenged, and even if that occurs, there is some doubt that the Supreme Court would even take the case. Another factor pushing against a court challenge is the very real possibility that, after a lengthy process, the rules could still simply go back to the FCC to be rewritten. Levin suggests it may be better to simply have the Republican majority on the Commission just go ahead and do the court-ordered rewrite now. Levin thinks indecency will continue to be a hot topic, and that the government is likely to step in and grease the wheels on the DTV transition. He also sees the likelihood of wholesale changes in the five commission seats. Unlike most who have handicapped this, he sees the poswsibility of Michael Copps exiting early to allow a pair of Democrats to weather the confirmation process together; meanwhile, he expects that Republican Kevin Martin most likely will stay on - - and acknowledges his inside track to the chairman's seat should Michael Powell move on as expected.
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 Petracom and get it
Paperwork has been filed to return most of a small market radio group to its financial backers. Two clusters, one in Arbitron-rated Joplin MO and the other in unrated Show Low AZ, may well be on the block. RBR/TVBR takes a look. The group is Petracom. It's case is in bankruptcy court, and the court has decided to send 10 of the group's 13 stations to FFD Holdings I, which is an holding company owned by Petracom lender Textron Financial Corp. The stations in Joplin are KQYX-AM Joplin MO, KBTN AM & FM Neosho MO, KMOQ-FM Baxter Springs KS, KCAR-FM Galena KS & KJML-FM Columbus KS. The other cluster includes KRFM-FM, KSNX-FM, KVWM-AM & KVSL-AM, all licensed to Show Low AZ. Petracom is keeping WMBH-AM in Joplin and KDJI-AM & KZUA-FM in Show Low. Petracom bought KQYX-AM, WMBH-AM, KGBZ-FM, KMOQ-FM, KJML-FM from Land Go Properties back in 2000 for 3.2M, and simultaneously acquired the other two Joplin properties, KBTN AM-FM, from KBTN Inc. for 1.3M. The four Show Low stations came in a 2.779M deal with Skynet Communications during 2001. The two Show Low stations were acquired from Navajo Broadcasting for 650K, but as we said, they're staying with Petracom. So there you have it: A financial company owns radio stations which it may well desire to spruce up for resale to an actual broadcasters. Eleven of the stations were acquired within the last four years at a total of 7.279M dollars. One of those stations, WMBH-AM, which has relatively low ratings in a very small market, did not convey into the current cluster lineup. So how much would you pay for two fixer-up clusters with no assembly required?
Viacom/SBS deal may be just the beginning
The computer gremlins got us again. To read yesterday's Epaper story - - in its entirety, including audio - - follow this link and learn how Spanish Broadcasting System CEO Raul Alarcon hopes to do more and bigger transactions with Viacom on top of his recent deal that made Viacom a 10% owner of SBS in return for KBAA-FM San Francisco. | More... |
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Adbiz©
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The Fitness Experience names Brokaw Advertising AOR
Brokaw Advertising announced that it has been named the new AOR for The Fitness Experience, a major specialty fitness equipment retailer with locations across the Midwest. "The Fitness Experience has redefined the specialty fitness equipment category by providing customers with unmatched knowledge and personal attention to help them achieve desired results," said Bill Brokaw, agency president and CEO. "We're delighted to be their partner and bring The Fitness Experience brand to life in a way that defies traditional advertising for this category." The new retail advertising campaign includes radio, print, direct mail and outdoor. The radio spots -- set to launch later this month -- will feature fictional fitness guru Stanley Fitko, who promotes The Fitness Experience as the answer to everyday problems like outdated fitness equipment, poorly informed department-store salespeople, love handles and the challenge of staying motivated.
New Jerseyans not negative about advertising
A survey of New Jersey-based consumers revealed that the majority (46%) generally have positive opinions about advertising, while only a small minority (12%) harbors negative opinions about advertising. Television advertising was the most preferred medium (28%), with magazines a close second (24%). Web banner and pop-up ads and email marketing were ranked low by New Jersey consumers, but the Internet scored highly as a tool for research. | More... |
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| Media Markets & MoneyTM |
EMF gets on the stick out west
Educational Media Foundation has struck a pair of deals with fellow noncom broadcaster Broadcasting for the Challenged, bringing it the right to build a pair of FMs in Arbitron-rated territory out west. Both CPs are going for 50K cash. KBIL-FM will be a Class A in Billings MT, with 6 kw @ minus 95'. KCPP-FM will be a Class C3 in Casper WY, with 25 kw @ 105'. Look for EMF's Contemporary Christian K-LOVE programming as soon as the sticks are up and the juice is flowing at each station.
Gray Lady's crib brings 175M
The New York Times Company announced an agreement to sell its old headquarters building in Manhattan for 175 million to a partnership led by Tishman Speyer Properties. The NY Times will lease back the building on West 43rd Street until its new 52-story headquarters - - appropriately back in Times Square - - is completed in 2007. The new owner then plans to renovate the old 15-story building.
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| Washington Beat |
MSRC sits in Washington next week
The Media Security and Reliability Council, established by the FCC to address homeland security issues as they relate to electronic communications, will meet at the FCC's southwest Washington digs next Tuesday, 11/16/04. The meeting will be called to order by MSRC chair David Barrett of Hearst-Argyle Television at 10:00 AM, and will run through 11:30 AM. It is open to the public. The purpose of the meeting is to hear interim reports from various work groups set up at the Council's previous meeting.
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| Programming |
 20th Television, CC Entertainment, XM
partner for major Malcolm promo
To promote the off-net syndication of its award-winning sitcom "Malcolm in the Middle," 20th Television has entered into a major relationship with Clear Channel Entertainment and XM Satellite Radio on the "Malcolm in the Middle 'With You' Sweepstakes." The promo is built around the production and distribution of a dedicated song and promo music video to differentiate the series and its five days a week run in syndication from other programs in the marketplace. "Malcolm in the Middle" made its debut into off-network syndication 9/13 M-F strip.
RBR observation: This may be one of the first large-scale cooperative ventures where traditional radio and satellite radio have been used together for a major promotion, each helping the other-and syndicated television as well in the process. Lesson for the day: Radio, satellite radio and television all may be competitors, but as we move forward in this ever-complicated, changing media environment, these different media are facing more similar challenges. The sooner they can effectively learn to use each others' assets to their advantages in a cooperative manner, the better. The above story is a prime example of why one media shouldn't always consider another as its competitor. Learn more along these lines in the January debut issue of Radio and Television Business Report - The Real Business Magazine, see above to receive it - or call April McLynn here to get your free copy: 703-492-8191. | More... |
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| Ratings & Research |
Arbitron sets 2006 & '07 survey dates
When will listeners be recording whether they are listening to your station in the next two years? Arbitron has released its survey dates for 2006 and 2007. There are four 12-week surveys per year.
Arbitron Survey Dates for 2006 and 2007
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2006
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2007
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Winter
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January 5 – March 29
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January 4 – March 28
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Spring
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March 30 – June 21
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March 29 – June 20
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Summer
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June 29 – September 20
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June 28 – September 19
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Fall
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September 21 – December 13
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September 20 – December 12
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Source: Arbitron
Navigauge Consumer Behavior Index
reveals 2004 election listening
Navigauge released its monthly Consumer Behavior Index?(CBI) results, detailing consumer in-vehicle listening behavior surrounding the 2004 Presidential Election. The CBI is the media industry's first independent and source of consumer in-vehicle radio listening behavior data and intelligence. This month's data reveals that at the conclusion of a hotly contested presidential election, consumers turned to their in-vehicle radios in greater numbers than usual, as illustrated by the Navigauge research.
November highlights (from the Atlanta market):
* During the 8 a.m. to 5 p.m. work day, FM radio listening showed a 13% increase in minutes tuned (48 minutes vs. 42 minutes).
* AM radio registered a 28% increase (48 minutes vs. 38 minutes) for up to the minute election information, results and coverage.
* On 11/3, tuning to news/talk stations was up 11% on a total day basis (6 a.m. to 7 p.m.), compared to the previous four-week average. The number of minutes tuned per person showed a 6% increase from 48-51 minutes.
* The audience tuned to news/talk stations increased 5% during morning drive (6 a.m.-10 a.m.) as the average minutes tuned to per listener to this category showed a 20% increase (24 minutes vs. 20 minutes)
* As people left their offices for lunch or went about their midday (12 p.m. to 5 p.m.) errands, news/talk stations showed additional appeal with the in-vehicle listener. Overall usage of news/talk stations by drivers increased by 30% with the average number of minutes remaining flat at 30 minutes.
News/Talk stations include WGST-AM, WSB-AM, WGKA-AM, WAFS-AM, WFOM-AM, WALR-AM, WAOK-AM, WSWK-AM and WABE-FM.
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| Transactions |
WBUT-AM, WISR-AM & WLER-FM Butler PA. 100% of Butler County Radio Network Inc.
WTTR-AM Westminster MD from Shamrock Communications Inc. to Sajak Broadcasting Corporation.
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| Stock Talk |
Another mixed day
Caution was the watch word on Wall Street Tuesday, with traders unwilling to make major moves until they hear what the Fed does at this week's meeting. But another drop in oil prices was encouraging to investors. Even so, the Dow Industrials slipped five points to 10,386. The S&P 500 was down a bit and the Nasdaq Composite up a bit.
Radio stocks had a good day. The Radio Index rose 2.535, or 1.1%, to 228.620. Emmis led the way, up 3.7%. Radio One was up 2%.
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| Radio Stocks |
Here's how stocks fared on Tuesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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38.55
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+0.04
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Jeff-Pilot
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JP
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49.05
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-0.11
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Beasley
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BBGI
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17.05
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unch
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Journal Comm.
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JRN
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16.93
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+0.01
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| Citadel |
CDL |
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15.38 |
+0.21 |
Radio One, Cl. A
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ROIA
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14.20
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+0.28
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Clear Channel
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CCU
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33.71
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+0.40
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Radio One, Cl. D
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ROIAK
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14.14
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+0.27
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Cox Radio
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CXR
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15.71
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+0.21
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Regent
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RGCI
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5.78
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-0.12
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Cumulus
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CMLS
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15.81
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+0.19
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Saga Commun.
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SGA
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18.00
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+0.32
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Disney
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DIS
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26.29
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+0.25
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Salem Comm.
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SALM
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27.05
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+0.41
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Emmis
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EMMS
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19.57
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+0.70
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Sirius Sat. Radio
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SIRI
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3.89
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-0.05
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| Entercom |
ETM
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35.33
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+0.28
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Spanish Bcg.
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SBSA
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10.70
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+0.14
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Entravision
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EVC
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8.34
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+0.16
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Univision
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UVN
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29.60
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+0.19
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Fisher
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FSCI
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48.00
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+0.03
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Viacom, Cl. A
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VIA
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36.65
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-0.17
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Gaylord
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GET
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35.72
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+0.22
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Viacom, Cl. B
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VIAb
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36.05
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-0.15
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Hearst-Argyle
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HTV
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25.77
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-0.11
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Westwood One
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WON
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22.58
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+0.10
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Interep
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IREP
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0.90
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+0.11
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XM Sat. Radio
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XMSR
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33.75
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+0.24
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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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__UNSUB__ to this email service.
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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]
This reader's take on "Less is More."
Did I just wake up after a thirty year nap or is this just a bad dream? With a plethora of radio executives hailing Clear Channel's "Less is More" initiative, I feel like throwing up when I read about the industry applauding "common sense." How many program directors lost their jobs as a result of protesting the unbelievably greedy level of spots that were mandated? How many program directors had to cut the guts out of their staffs while handling several stations themselves? Back in the 60's we knew that the more spots a station plays, the lower their ratings will be. This is not rocket science, nor should the companies who created the problem be applauded for waking up a millisecond before the train hits the wall. Let's applaud the small independent owners who refused to cave to corporate greed and those companies who had the vision to limit spots, regardless of what the competition did. Let's not glorify the biggest Wall Street players who would mortgage away the future of radio for an extra fifty cents.
Russ Oasis
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Upped & Tapped
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CC Radio ups
Michael Martin
Clear Channel Radio announced the promotion of programming exec Michael Martin to Regional Senior Vice President/Northwest and Sunbelt regions (Alaska, Arizona, California, Nevada, Oregon and Washington). He will replace Steve Smith, who has decided to pursue other music interests in the industry.
New home for Havens
Jonathan Havens is returning to radio after a stint in cable TV as Market Manager for Qantum Communications' six-station cluster in Southeastern Georgia.
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TVBR - TV News
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NFL: One TV deal to go
New six-year contracts worth about 25% more to the NFL will keep pro football on Fox and CBS on Sunday afternoons through the 2011 season, but negotiations are still continuing with Disney's ABC and ESPN for their primetime packages. Those negotiations could drag on for a while, since Disney has exclusive renegotiation rights remaining for nearly a year. The eight billion in renewals that have been announced will have News Corporation's Fox paying approximately 712 million per year for the NFC's Sunday afternoon games and Viacom's CBS paying approximately 622 million annually for the AFC's Sunday afternoon games. Each network will get two Super Bowls during the six-year period. The NFL also announced a 3.5 billion bucks, five-year extension of its contract with DirecTV for exclusive subscription TV rights - - extending the satellite company's NFL Sunday Ticket through 2010. "These agreements represent the NFL's premium position as the number one sports and entertainment attraction on television and in stadiums," said NFL Commissioner Paul Tagliabue.
RBR observation: The NFL is the marquee sports product for television, but deals still have to make some business sense. CBS claims it is making money on its football contract and will continue to make money under the new contract. Fox may be closer to break even, or maybe a slight loss, but it was the NFL contract it snatched from CBS in 1994 which catapulted Fox into TV's big leagues. (CBS got back into football by taking the AFC from NBC in '98.) But while "Monday Night Football" continues to be a big ratings draw for ABC, the network is reportedly losing as much as 170 million a year under the current contract, so it's not going to easily agree to the 25% increases that Fox and CBS signed for. Although Disney says its intention is to retain the primetime NFL packages for ABC and ESPN, there could be some tough negotiations ahead. And there's always NBC waiting in the wings...
Publisher observation: Now local Fox and CBS affiliates up your local spot rates, cross market with your local sports radio station and even put together a cross platform of live remotes on Tail Gate Sundays and both make money together. Just don't sit there in the stands - get on the damn field and play.
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October Digital
Solutions Magazine
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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.
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
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RBR Radar 2004
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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News Corporation adopts
a poison pill
Apparently alarmed by Liberty Media's move to expand its voting stake in News Corporation, Rupert Murdoch is making sure that Liberty's John Malone won't be able to threaten a takeover.
RBR observation: It doesn't look like John Malone has any takeover designs on News Corporation - - at least not yet. But Rupert Murdoch isn't taking any chances. Of course, his move to protect his kingdom is purely self-serving and doesn't serve his shareholders in the least. What we don't understand is why boards of directors routinely vote for such anti-shareholder measures - - and why government regulators don't move to outlaw such abuses.
11/09/04 RBR #219
Burlington buy ushers in
new era of oversight
By switching from contour overlaps, the FCC's new rules have changed how radio combinations can be created. While the intent was to cut back on consolidation, that won't always be the case. One example is the proposed purchase of WVAA-AM Burlington, VT by White Northeast Broadcasting Company. TVBR observation: This must-read story shows how the new Arbitron-market radio cluster rules, supposedly designed to clamp down on further radio ownership consolidation, could in fact lead to more. 11/09/04 TVBR #219
Tribune Broadcasting isn't buying the claims of critics
President Pat Mullen feels today's media environment is more robust and competitive than ever. 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!.
11/08/04 RBR #218
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Account Manager Arbitron Outdoor
Selling and servicing the Arbitron Outdoor products to outdoor media companies. 3-4 years media sales experience, Outdoor industry sales preferred.
General Sales Manager
Los Angeles need with 5 years radio sales management experience. EEO. Reply to: [email protected]
See Radio Careers for more info.
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©2004 Radio Business Report/Television Business Report, Inc. All rights reserved.
Radio Business Report -- 2050 Old Bridge Road, Suite B-01, Lake Ridge, VA 22192 -- Phone: 703-492-8191
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Publisher Perspective
If you want the January Debut issue, please register now. It's Free!. All orders must be in by Thursday November 18, 2004.
