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Volume 22, Issue 220, Jim Carnegie, Editor & Publisher

Wednesday Morning November 9th, 2005

Radio News®

Cumulus boss satisfied with rep change
There was surprisingly little discussion of the pending 1.2 billion bucks buy of Susquehanna Radio in the Q3 conference call for Cumulus Media. Apparently Lew Dickey laid it all out clearly when it was announced (11/1/05 RBR #214). The surprise for Wall Street yesterday was an accounting charge for Cumulus' national rep switch back in May (5/24/05 RBR #102). Although Katz made the 14.4 million bucks payment to Interep, Earnst & Young has decided that Cumulus has to amend its Q2 numbers to take a charge for the payment, then amortize it back over coming years. That's the same way Radio One is treating its rep consolidation at Katz and apparently the way the big accounting firms have decided such moves should be dealt with. Cumulus officials emphasized that the company itself did not have to pay any cash out. While national sales were down 11.4% in Q3 from a year ago, Lew says he's satisfied with the rep switch and that the decline is all due to political and the loss of Home Depot business. Otherwise, he says national sales are up around 10% with Katz. As for Home Depot, he noted that the home improvement chain is sticking its toe back into spot radio with buys in selected markets, so he's hopeful that advertiser may be back significantly in 2006.

RBR observation: First, with no disrespect, recognize that Home Depot is not coming back into the National Spot business as it once was and time to get over it and move on. Judgment day for all public media companies is coming in 2006 when all report their fourth quarter earnings of this year.

Alarcon skewered for move into TV
Spanish Broadcasting System CEO Raul Alarcon remains upbeat about his decision to purchase the company's first TV station (7/14/05 RBR #137), but investors are more skeptical. More than once during yesterday's quarterly conference call the move into TV was criticized for dragging down the company's stock price. One irate money manager suggested that SBS should walk away from the 37.5 million bucks purchase, saying it had cost the company some 300 million in market capitalization on Wall Street. "You've gone in my book from a free cash flow generator after your refinancing really to an entity with unknown spending habits and potentially more spending down the road - - a real black hole," the investor said. "I would say you should either take the company private or cancel your TV deal and use the money you'd earmarked for that to buy back stock at these very depressed levels or remove the two-class share structure and either put the company up for sale or pair up with a much larger entity and then you could get the valuation you deserve," he continued. Alarcon's response: "I'll take all of your comments under advisement." But earlier in the call he had hailed the pending TV deal, which is expected to close in December, as a good move for SBS in its home market. "We know this market better than anyone," he insisted. Alarcon said programming would be revealed later, with a launch set for January. He also said the SBS Miami sales team had signed its first advertiser for the TV project - - the Toyota Distributors of South Florida.

RBR observation: RBR once touted Alarcon's secret weapon was radio top PD Bill Tanner. Seems Tanner and Alarcon were unable to come to a new contract agreement and Tanner is gone leaving the SBS boat with a shaky course. Trust SBS's solid board will deliver the guidance to Alarcon before he has to report his fourth quarter earnings as the words said above by financial critics will be even harsher. Next year is the year that Wall Street will also have to be held accountable - time to get tough. "...unknown spending habits and potentially more spending down the road - - a real black hole," Ouch! - That had to hurt.

Stevens on the hunt for a fifth
The FCC comes under the watchful eye of the Senate Commerce Committee, and according to Reuters, its head - - Ted Stevens (R-AK) is getting ready to do what the White House has not - - find a candidate to fill the fifth seat on the Commission, a piece of Republican furniture which has been empty since Michael Powell vacated it last spring. It is not unusual at all for legislators to put forth names for such positions. Both Democrats on the Commission were suggested by senators, Michael Copps by now-retired Ernest Hollings (D-SC) and Jonathan Adelstein by defeated former minority leader Tom Daschle (D-SD). Although several possibilities have surfaced on the rumor wire since last spring, there have been none lately, and the Republicans really need to find two warm bodies, since Kathleen Abernathy has made no secret of her desire to exit as soon as possible.

RBR observation: Republican FCC Chairman Kevin Martin has managed to push through a certain amount of his agenda despite the 2-2 vote he faces on contentious issues. The problem is, he's running out of those kind of issues. To say that polarized positions have already been staked out on the upcoming court-ordered reconsideration of media ownership rules would be the understatement of the new millennium. One final note to Senator Stevens - - is it healthy to throw yourself into FCC staffing recommendations? Hollings recommended a commissioner, and Daschle recommended a commissioner, and now both are out of work. Hmmmmm.....

Fox hit with EEOC suit
Fox News Network will be heading into the US District Court in Manhattan after being named in a sexual harassment suit by the Equal Employment Opportunity Commission on behalf of an ex-employee. According to the Associated Press, a number of problems were cited, including the use of obscenities by an FNN exec when discussing women, and an alleged statement in a staff meeting that men were preferable hires than women because the latter are likely to get pregnant and exit. EEOC also charges that women tended to be placed by FNN in free-lance positions, which provide less benefit and less opportunity. FNN says the allegations have already been dealt with internally, and the suit is without merit.

Q3 uptick in indecency complaints
Over 26K complainants contacted the FCC in Q3 2005 regarding alleged indecent or obscene broadcast programming. The vast bulk of the complaining was done in July, when over 23.5K of the total came in. Still, these numbers pale in comparison to those put up earlier. The four-quarter trend going back to Q4 2004 is 317.8K to 157.7K to 6.2K - - so Q3 represents a slight increase over Q2 and does not even approach the totals of the prior two quarters.

RBR observation: The big surprise is the latest complaint report is that there were only 13 complaints received concerning accessibility issues - - and only six of those came in September, when all the hurricane activity was wreaking havoc on broadcasting operations in the Gulf Coast area. The FCC is looking into expanding EAS requirements to make sure that non-English-speakers and disabled individuals are reached during emergencies. The lack of activity in this category is another indication that broadcasters once again did their level best to serve their communities in a time of crisis.

Perhaps the FCC doth want you to protest too much
The creation of a special FCC complaint form just to handle indecency broadcasts, along with the efforts to highlight its existence while a more general complaint form stays largely in the shadows, has raised the eyebrows on at least one Washington legal eagle. Attorney David D. Oxenford of Pillsbury Winthrop Shaw Pittman LLP, noting the spotlight in FCC Form 475B, specifically for indecency, and the background role assigned to the general purpose FCC Form 475, said, "Thus, the Commission seems to have focused its electronic broadcast complaint process on this single issue - - though, of course, complaints on other issues can be filed without using the form. Links to the Form 475B are already active on the FCC Homepage from any number of Consumer and Complaint headings on that page. Together with the webpage that the FCC announced last month, outlining for the public the elements of obscene and indecent speech, this action makes clear the FCC's continuing interest in, and focus on, broadcast indecency. Imminent Commission action on a multitude of pending indecency complaints is rumored, as is further Congressional action to raise the penalties for such speech. Thus, the broadcaster should beware.

Conference Calls 2005

Cumulus on target in Q3
Lew Dickey said he was pleased with the local execution of his sales staffs, with local ad sales up 4.4% in Q3. That overcome an 11.4% decline for national, due to the lack of political advertising and Home Depot, so total revenues were up 1.6% to 85.3 million. Lew noted that pro forma revenues were up 2.1% - - pretty much in line with the company's guidance of 2%. For Q4, he told analysts to expect revenues to be flat to slightly down on a pro forma basis. That was a little less than The Street had expected, so Cumulus' stock was down yesterday.

SBS below expectations
Spanish broadcasters continue to outpace their English peers, but Spanish Broadcasting System posted Q3 growth of only 5% to 43 million bucks, missing Wall Street expectations by a percentage point. Much of that growth was due to the addition of KRZZ-FM San Francisco, which added 1.3 million in revenues for the quarter. Same station revenues were up 3%. Looking to the current quarter, SBS said Q4 revenues should be up in the low single digits. Meanwhile, SBS expects to receive an additional 20 million installment from Styles Media on its pending sale of KZAB-FM & KZBA-FM in the LA and Riverside-San Bernardino markets. That will make a total of 55 million in non-refundable payments from Styles. Alarcon told analysts he remains confident that Styles will be able to complete the 120 million purchase, but he noted that there are other would-be buyers interested if not, or that SBS itself could again program the stations itself.

Adbiz©

Siemens and Disney sign sponsorship deal
Siemens and Disney worked a 12-year alliance expanding the technology infrastructure they already share to include marketing and promotional rights, attraction sponsorships and a promotional presence that features Siemens products and services at Walt Disney World Resort in Florida and Disneyland Resort in California. As part of the deal, Siemens will sponsor several rides and attractions at Walt Disney World Resort including the Epcot icon, "SpaceShip Earth," the nighttime Epcot fireworks show, "Illuminations: Reflections of Earth," as well as new attractions that will be incorporated into Innoventions both at Epcot and at Disneyland Resort. The Sylvania lighting division of Siemens will sponsor Disney-MGM Studio's holiday light show -- "Osborne Family Spectacle of Lights," as well as "Disney's Electrical Parade" and "Walt Disney's Parade of Dreams" at Disneyland. Siemens also will build on its existing relationship with Disney Media Network's and ESPN by sponsoring ABC's video board at Times Square.

"Blind Date" deal struck with Sony Ericsson, Bally's
NBC Universal Domestic Television Distribution's "Blind Date" is partnering with Sony Ericsson and Bally's Total Fitness to kick off the November Sweeps with "The Ultimate Blind Date Mobile Match-Up," announced today by Betsy Bergman, Vice President, NBC Universal Domestic Television Distribution Marketing. The campaign will take place across the nation in 15 top markets including Los Angeles, Chicago, Philadelphia, Boston and San Francisco. It kicks off with the show's new dating scenario, "Project Blind Date." Viewers will be able to watch five select daters (three women and two men) on their dating journeys as they come closer to finding their perfect Blind Date each week. The interactive dating events allow singles to record their own on-site video bios and share them with other potential daters at the events. Each person will also be given a coded lanyard, which they will use as a guide to finding matches by sending pictures or videos of themselves to other participating singles. In addition to these exciting and interactive dating events, there will also be a national in-show sweepstakes in which viewers will be directed to enter the contest on the show's website, www.blinddatetv.com. The grand prize consists of his and hers W600 Walkman Phones with 2 months pre-paid service on each phone, a six-month membership to Bally's Total Fitness and a trip for two to Florida. The contest will also be promoted at all Bally's Total Fitness locations nationwide.

Media Business Report

Circulation of U.S. weekday newspapers takes 2.6% hit
The average weekday circulation of U.S. daily newspapers fell 2.6% in the six months that ended in September, led by a 16.6% drop for The San Francisco Chronicle. The figures released Monday by the Audit Bureau of Circulation, which certifies the accuracy of sales figures, continues a long-term trend of flat to sinking readership, reported The Chronicle. The average Sunday circulation for U.S. dailies fell 3.1%, compared with September 2004, according to an analysis by the Newspaper Association of America. The Chronicle said its paid Sunday circulation declined 13.5% to 467,216 copies. On Monday through Saturday, it averaged sales of 400,906 copies during the six-month period. Chronicle Publisher Frank Vega said the newspaper's circulation declines - - nearly 80,000 weekday papers and just over 73,000 on Sunday - - were owed almost entirely to a deliberate strategy of trimming promotional distributions and giveaways. "We cut a lot of what you would call unprofitable circulation around the first of the year,'' Vega said. "We made a decision that we want quality, profitable circulation that better serves our advertisers." Among the nation's largest newspapers, the Atlanta Journal-Constitution and the Boston Globe each reported weekday circulation declines in excess of 8%.

MBR observation: Remember the thrilling days of yesterday when radio and TV both said Newspapers are the enemy because that is where the big ad dollars were going? Time to take this excuse off the table and time to think new business development for 2006 as newspapers have earned the titled of news and life printed yesterday. It is time to think of a possible joint Sales Management conference between RAB and TVB.

Washington Beat

Senate plans decency forum
Senate Commerce Committee Chairman Ted Stevens (R-AK) announced that the Full Committee is planning to hold an "Open Forum on Decency" on November 29, 2005. A specific time and location will be announced at a later time. According to the announcement, "representatives from wide variety of groups, including cable, broadcasting, and other content industries, are expected to attend to discuss the many issues surrounding decency." The forum will be open to the public and the press.

RBR observation: Stevens has been a key proponent of extending the FCC's regulation of indecency to basic cable channels as well as broadcast channels. That sort of level playing field appeals to many broadcasters, who think they're being unfairly held to a different standard than cable, even though most consumers don't recognize any difference in the types of TV delivery. Sen. Stevens is at odds with some others on Capitol Hill, who are also opposed to broadcast indecency - - and want to raise fines dramatically - - but fear that if cable is thrown into the mix, the courts might just strike down the indecency law altogether. We note that would also create a level playing field.

RTNDA goes to Hill to open SCOTUS
The ongoing battle to allow electronic coverage of federal court proceedings, including in the Supreme Court, goes into its next round before the Senate Judiciary Committee today. Although the idea is not popular with some of the justices - - Antonin Scalia is against it and David Souter has said it will only happen over his dead body - - newly-installed Chief Justice John Roberts has indicated that he's open to the idea. The Radio-Television News Directors Association has long pressed for cameras (and mics) in the courtroom, and President Barbara Cochran will be on hand to testify to that effect at the invitation of committee chair Arlen Specter (R-PA). She will be on the session's third panel, along with Brian Lamb of C-SPAN, Henry Schleiff of Court TV and representatives of the legal and academic communities. Sen. Chuck Grassley (R-IA) is soloing as Panel 1, and a pair of judges make up Panel 2. Grassley is co-sponsor of a Specter bill to open the courtrooms, along with Patrick Leahy (D-VT), Russ Feingold (D-NY), Charles Schumer (D-NY), John Cornyn (R-TX) and George Allen (R-VA).

Programming

Alan Colmes: Breathing
fresh air into late nights
Alan Colmes joined the Fox News stable in 1996 as the liberal co-host of Fox News Channel's "Hannity & Colmes." Since then, in 2003, he took his very experienced talk radio voice national with a newsdriven late-night talker syndicated by Fox News Radio, "The Alan Colmes Show." Here, Alan talks about America, the media and a bit about his particular brand of late night radio (from our September and October RBR/TVBR Solutions Magazine).

| Read More... |

Engineering

2006 budgets and capital expenditures:
VPs/Engineering discuss, Part I
In this two-part yearly RBR/TVBR series (from our September and October RBR/TVBR Solutions Magazine), we ask top engineers at the radio groups where 2006 budgets and capital expenditures are heading. What's tops on the list for projects and new equipment? This year, we asked the following:

Glynn Walden, Infinity SVP/Engineering
Milford Smith, VP/Engineering, Greater Media
Cris Alexander, Director of Engineering/Crawford Broadcasting
Norman Philips, VP/Director of Engineering, Susquehanna Radio
Steve Davis, CC Radio SVP, Engineering & Capital Management

| Read More... |

TVBR - TV News

Comcast, CBS; NBC Universal, DirecTV
strike VOD deals for hit shows
Both Comcast and CBS and NBC Universal and DirecTV struck major VOD deals for hit shows yesterday. Comcast and CBS will make four leading prime-time shows available. Beginning in January, Comcast Digital customers will be able to view episodes of CSI: Crime Scene Investigation, NCIS, Survivor and The Amazing Race on Comcast's On Demand service. The programs will be available as early as midnight following their broadcast on CBS. Each episode will cost 99 cents, and customers will be able to view the episodes, with commercials, anytime they want for up to 24 hours from the time they order them. Certain Comcast systems also may make CSI and NCIS available in high-def for customers with HD-enabled Comcast digital cable set-top boxes. Prior to the March debut of new episodes of Survivor and The Amazing Race, viewers will be able to order episodes of the fall 2005 editions (Survivor: Guatemala and The Amazing Race 8.) NBC Universal and DirecTV announced a VOD deal that gives consumers access to the top programs of NBC and its cable entertainment networks, USA, SCI FI and Bravo, within hours after they air, commercial free, for 99 cents. The programs will be available on demand through the new DirecTV Plus interactive DVR. This multi-year agreement will give the primetime on demand rights to NBC Universal TV programs, such as "Law & Order: SVU," "Law & Order: CI," "The Office," "Monk," "Surface" and "Battlestar Galactica." The programs will be available until the following week's episode airs. NBC Universal's movies and TV events will also be available through DirecTV Plus, and on pay-per-view. "The way people are consuming content is changing," said David Zaslav, President, NBC Universal Cable. "Through this agreement with DirecTV, consumers will be able to watch top NBC content on demand for just 0.99, when they want, without commercials. It's a huge sea change. This deal is the first of its kind and we value DirecTV 's partnership in rolling it out." The DirecTV Plus DVR will be available at retailers such as Best Buy and Circuit City this month.

TVBR observation: Note there are no opportunities for commercials in the NBC/DirecTV deal. Seems HBO has been so successful in the pay-TV network arena, the broadcast nets are going to give this avenue a try, just as some radio stations are experimenting with iPod downloads. We wonder how this might affect regular ratings for the TV programs and if it should have an effect on ad dollars going to these programs. We asked Jon Mandel, Chairman/MediaCom US and Chief Global Buying Officer MediaCom Worldwide for his thoughts:

"Here's the problem - - anybody who has studied pricing theory knows to jump to 99 cents with no advertising is either a badly-written press release or they didn't do enough study in pricing theory. Because to do it right, in part of the country you do 99 cents with no ads and in another part you do 49 cents with two ads and in another place you do 29 cents with four ads. That way you figure out how to maximize your revenue. But to immediately jump to cutting yourself off from two revenue streams and leaving adverting out of it I think is either a bad business judgment or, again, a badly-written press release."

What about this affecting regular ratings for these shows?
"It's not going to affect ratings at all. What's the most TiVo-proof programming there is? Friends. You've seen it before. You're watching it because you chose to watch it. If you've never watched it before, you're not going to pay to watch it."

Transactions

10.2M WDDW-FM Milwaukee-Racine (Sturtevant WI) from NM Licensing LLC, a subsidiary of NextMedia Group Inc. (Carl E. Hirsch, Steven Dinetz et al) to Bustos Media LLC (Amador S. Bustos). 750K escrow, balance in cash at closing. LMA 11/1/05. [File date 10/13/05.]

1,482,797.86 WNSY-FM Atlanta (Talking Rock GA) from Dorothy McClure and Dean Copelan/Suntrust Bank, co-executors for the Estate of C.A. McClure to Cherokee Broadcasting Co. Inc. (Charles A. McClure Jr, Joseph W. McClure, Margaret M. Moore). Note. Duopoly with WCHK-FM Canton GA. [File date 10/12/05.]

Stock Talk

Housing warning takes Toll on stock prices
Wall Street traders were unnerved by a 2006 sales forecast from home builder Toll Brothers, which sent stock prices skidding. The Dow Industrials dropped 47 points, or 0.4%, to 10,540.

Most radio stocks joined the retreat. The Radio Index fell 3.365, or 1.7%, to 190.526. Cumulus plunged 6.2% after giving Q4 guidance that disappointed the market. Likewise, the outlook from SBS was also soft and its stock fell 9.4%.

Note: Due to a production error, the stock prices in Tuesday's issue were incorrect.

Radio Stocks

**Here's how stocks fared on Tuesday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		37.48	+0.22	Jeff-Pilot	JP		54.24	-0.15
Beasley	BBGI		14.10	-0.11	Journal Comm.	JRN		14.03	-0.16
Citadel	CDL		13.83	-0.16	Radio One, Cl. A	ROIA		10.96	-0.10
Clear Channel	CCU		31.15	+0.03	Radio One, Cl. D	ROIAK		10.99	-0.14
Cox Radio	CXR		14.93	-0.06	Regent	RGCI		5.00	-0.05
Cumulus	CMLS		11.84	-0.78	Saga Commun.	SGA		12.95	-0.29
Disney	DIS		25.16	unch	Salem Comm.	SALM		19.42	+0.43
Emmis	EMMS		19.32	-0.54	Sirius Sat. Radio	SIRI		6.83	-0.08
Entercom	ETM		30.84	-0.33	Spanish Bcg.	SBSA		5.85	-0.61
Entravision	EVC		7.89	-0.12	Univision	UVN		28.86	+0.10
Fisher	FSCI		48.34	-0.65	Viacom, Cl. A	VIA		32.43	+0.13
Gaylord	GET		40.66	-0.47	Viacom, Cl. B	VIAb		32.33	+0.04
Hearst-Argyle	HTV		23.57	-0.62	Westwood One	WON		17.54	-0.30
Interep	IREP		0.41	-0.01	XM Sat. Radio	XMSR		28.76	-1.03
International Bcg.	IBCS		0.01	unch	-	-	-	-	-

Bounceback

Send Us Your Opinions We want to
hear from you.
This is your column, so send your comments and
a photo to [email protected]

Regarding Howard Stern's one-day suspension (11/8/05 RBR #219).

I am not getting this. In radio, if management knew an employee would be leaving at the end of the year to a competitor, would that employer let the person stay on the air? Of course Howard is going to talk about his new digs at Sirius, wouldn't you? I don't fault Howard. I fault Infinity and all the greedy execs who know Howard is still making them money every time he opens the mike. Howard should have been treated like everyone else in radio who leaves a station or market. Move on without him and don't let him out of his contract. If they had done this there would have been 6 months of no Howard radio, which could have helped everyone and hurt Sirius. But, instead, Sirius is getting more and more momentum on Infinity's dime.

Bill Schultz
Regional Marketing Manager
Cumulus Broadcasting- Appleton/ Oshkosh/ Green Bay

Stations for Sale

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For a description of all of our properties for sale go to
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W.B. Grimes & Company,
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Nevada 100kw
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Only $1M. Residential property available too.
Brett Miller MCH Enterprises, Inc.
(805) 237-0952

Below the Fold

Media Business Report
Circulation newspapers
takes 2.6% hit
MBR observation: It is life printed yesterday

Washington Beat
RTNDA goes to Hill
to open SCOTUS
Ongoing battle to allow electronic coverage of federal court proceedings...

TVBR - TV News
Comcast, CBS; NBC Universal, DirecTV strike VOD deals
for hit shows
If you think radio is having problems today - now just wait as the oxygen is being sucked out of the room...

November RBR/TVBR Digital Magazine

News/Talk
Franklin Raff, Radio America Executive Producer HR - Guerilla tactics for finding the right people, what can and can't be taught. New hiring challenges facing radio execs and how to get around the problem so you get the right people, for long term HR efficiency.

Read RBR/TVBR in 2 simple steps:
1.Create a simple account with Zinio and download the Zinio Reader.
2. You can then download the
November Issue of RBR/TVBR

RBR Radar 2005

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

Howard Stern gets a time-out
We all know what happened so look for more of the same.
RBR observation: While the suspension also resulted from a dispute with Stern and Chiusano, the bigger issue is we've still got some 23 more shows for Stern to bash terrestrial radio, launch salvos at his current employers and further promote Sirius. It will be amazing if a) he makes in on air to the end of his contract with Infinity and b) if this all concludes without some sort of lawsuit. Hope they make this into a TV movie.
11/08/05 RBR #219

VNU trying to get out of IMS merger
Has finally confirmed what we reported several weeks ago - the seven billion bucks acquisition of IMS Health is likely not going to get to closing. RBR observation: While it's pretty clear that the transaction is on life support with no hope of recovery, the debate now is about how to pull the plug. Once the planned merger is officially terminated, VNU will have to deal with a remaining problem - - dissatisfied shareholders and those major shareholders are likely to continue their united front and demand changes at VNU - - either a big stock buyback, sale of the publishing division or even putting the entire company up for sale.
11/08/05 RBR #219

Entercom has his eye on ABC Radio
CEO David Field is making no bones about wanting ABC Radio and spelled out in his quarterly conference call...but only if the terms and conditions of the deal make sense for our shareholders. Kicker: if there's no ABC deal, would he look at taking Entercom private? Field said management is looking at all options. RBR observation: Come on this barn door has been swinging so long and so hard it is about to fall off the frame. For the life of us, we can't see any reason for Iger to even consider selling or merging ABC Radio in such a soft market.
11/07/05 RBR #218

Cox's Neil sees HD multicasting
as "killer ap"
He's still waiting for research on how to number HD Radio multicasting channels, Neil is gung-ho on the new technology. multicasting is the "killer ap" for terrestrial radio's move to digital. If consumers can get twice as many channels with a new receiver - - and not have to pay a monthly subscription fee - - what's not to like? RBR observation: Still lots of talk on HD but radio as a business has many issues to face and it seems the business just keeps adding to the plate as many past issues still have not been resolved. But we like Neil's attitude.
11/03/05 RBR #216

VNU sale Or get some Street Smarts
The unpopular move by VNU management has motivated the big investors to demand change at the company, so pressure is on - either buy back stock, sell off assets or sell the entire company to the highest bidder. RBR observation: In either an asset sale or breakup scenario, it appears the piece of VNU most likely to be in play. Big investors don't see the division as a major growth vehicle and would be happy to see it sold off. Publisher observation: Big investors do not see it because they only see the color of money and do not plan a business model that brings synergy to a gorilla size companies. It takes street smarts to fix and improve valuable brands not a calculator
10/27/05 RBR #211

Moonves:
Stern loss is "slight concern"
future CBS CEO Les Moonves on the impact of losing 5% of Infinity's revenues, but Moonves insisted there was only "slight concern" about Stern's departure. Noting that Infinity recently announced 10 different replacements for Stern on various stations, Moonves said some will work and some won't. But he also noted that Stern's contract had gotten so expensive that Infinity wasn't making much profit on his show anyway. RBR observation: Stop and Please listen to Moonves audio clip above and you will not believe your radio ears. It is clear why some higher ups inside Infinity are not concerned - the new boss is not concerned as Radio to Moonves is just margins game. Not programming, content, branding, marketing, people - Just Margins - swell just swell.
11/02/05 RBR #215

Cumulus is radio's new #3
with Susquehanna acquisition at 1.2 billion bucks worth with some big equity funds. In fact, this deal is structured to be accretive to Cumulus, the public company.
RBR observation: Now time to plan a pro-active strategy to run them and not like radio is being programmed, managed and marketed today.
11/01/05 RBR #214

Is Clear Channel a "buy"?
After digesting last week's Q3 numbers and the company's outlook Wall Street analysts are divided on whether now is a good time to buy Clear Channel Communications stock. Declaring that "Less Down is Good," RBR observation: Analysts seemed to welcome assurances from Clear Channel Radio CEO John Hogan that local managers have "almost complete autonomy" over the mix of various length spots to meet their Less is More targets. RBR/TVBR soon heard from several of those managers who apparently never received that memo. Rather, they say, they are on a tight leash from San Antonio headquarters and closely monitored weekly. They tell us that if they aren't right in line with the national LIM limits, there is hell to pay.
10/31/05 RBR #213

Financial Challenges for Infinity
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). In today's environment no company has 12 to 24 months to turn around as the street demands faster results. 2006 will be the year of change and probably lots of heads rolling at the top down.
10/26/05 RBR #210

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