Welcome to RBR's Daily Epaper
Volume 21, Issue 223, Jim Carnegie, Editor & Publisher
Monday Morning November 15th, 2004

Radio News®

Burlington Part II:
New rules more whacked than we thought

RBR has argued against the new market definitions for radio since they were first publicly pondered. Contours are real and measurable. Markets, as defined by Arbitron and BIA, are fluid, invented - - often by the station owners - - and often quite arbitrary. The new definition, which is supposed to clamp down on excessive ownership concentration and promote localism, incredibly, may in fact do the opposite.

RBR observation: If you have an interest in the rules of the road for radio ownership, this article and the articles on this topic in the coming days are a must read. We strongly advise that you follow this link. | More... |

AFA going after Ryan airing
Donald Wildmon's American Family Association is apparently going to put the Veterans Day ABC TV Network airing of "Saving Private Ryan" to the indecency test. Although many affiliates decided to duck the issue by preempting the uncut presentation of the movie, most aired it as scheduled. AFA-affiliates OneMillionMoms.com and OneMillionDads.com are encouraging members to go after ABC. By Friday, the FCC had already received a number of complaints about the Thursday broadcast. "It's important that families, especially our children, recognize the sacrifices made by our loved ones during wartime," said AFA's Randy Sharp. "However, airing excessively profane language during primetime hours is not necessary to convey that sacrifice." Both of the websites mentioned above are carrying mechanisms for members to send indecency complaints to the FCC. ABC, trying to limit the number of affiliates pre-empting the movie, had gotten support for Vietnam vet Sen. John McCain (R-AZ), who said the violence and profanity in the movie were not gratuitous, according to Reuters. Anti-indecency crusader Parents Television Council also signaled its support for airing the movie. Despite the lack of nearly a third of ABC's usual affiliates, Nielsen overnight data showed that the movie drew an average of 7.7 million viewers to the network during the 8-11 pm (ET) airing - - a better-than usual showing for ABC on a Thursday night, but well off the audience numbers for previous airings of "Saving Private Ryan" in 2001 and 2002. CBS won the night with an average 23.4 million viewers, led by "Survivor" and "CSI," with NBC second at 15.9 million.


Q3 revenues down at Susquehanna
Total revenues for the radio industry may have been up 1% in Q3, but Susquehanna Radio was a laggard. Its parent company, Susquehanna Media, reports that radio revenues were down 1% for the quarter to 61.3 million bucks. Operating income was flat at 17.3 million. "Softness in the Dallas stations was offset by growth in the Atlanta and Kansas City stations," the company said. Cable revenues were up 33% to 46.2 million, including 8.2 million from a system recently acquired in Carmel, CA. Operating income for the cable division decreased 7% to 6.5 million. Officials of Susquehanna Media will discuss the results today in a conference call with Wall Street bond analysts. The company is privately owned, but has public bonds.

Davis new Prez/COO at Pappas
Dennis Davis, who came up through the ranks at Pappas Telecasting, has been elevated to President and COO, putting him in charge of all of the company's radio and TV stations. "For more than two decades, Dennis has served Pappas Telecasting with distinction. He has proven his unique value to the company time and time again. Dennis is an utterly fair and thoughtful executive. He has the energy and stamina for this demanding role. Moreover, he is one of the most capable and trustworthy professionals with whom I've had the privilege of associating. After long consideration, I feel comfortable turning over this level of control of our assets," said Chairman and CEO Harry Pappas in announcing the promotion. Pappas himself had been covering the duties of President and COO since last December, when Peter Chrisanthopoulos exited after only three months in the post (1/14/04 TVBR Daily Epaper #8). Davis noted that when he began working for Pappas Telecasting, the company had only one station. It now has more than two dozen TV stations, plus two radio stations (and a third under construction).

Where are multiples these days? Still high - - Part 2
After consulting with a number of brokers, we can tell you this with assurance - - the market for radio and TV stations is not softening. "The really good quality stations are getting more than 10 times cash flow, and in some cases if the market is a really good market it will get a number with no cash flow," said Ron Kempff of Kempff Communications, who agreed that multiples really haven't changed in five years. "It's still a 10 times cash flow market," Kempff said of the floor for decent markets. "There are exceptions to it," he added. This article appears in its entirety in the November issue of RBR Solutions magazine. To subscribe to the all new January debut issue of Radio and Television Business Report - The Real Business Magazine, see below to receive it - - or call April McLynn here to get your free copy: 703-492-8191.


Adbiz©

October sales early Christmas present for retailers
Retail sales are continuing to gain momentum in time for the busiest shopping season of the year. According to the National Retail Federation (NRF), October retail sales in the GAFS category (general merchandise stores, clothing and clothing accessories stores, furniture and home furnishings stores, electronics and appliances stores, and sporting goods, hobby, book and music stores) increased 6.2% from the same period last year and rose 1.1% month-to-month. | More... |

The Gap taps Sarah Jessica Parker
for holiday effort

This holiday season, Gap introduces a new TV campaign featuring actress Sarah Jessica Parker along with a cast of star-studded actors and musicians. An evolution of Gap's fall "How Do You Wear It?" campaign, the holiday ads evoke the giving spirit of the season by asking customers "How Do You Share It?" | More... |


Media Markets & MoneyTM
Religious specialist doubles in Memphis
CPT&T Radio, which is related to Religious specialist F.W. Robbert Broadcasting (FWRB), is getting a second FM in the Memphis TN area. The 400K acquisition comes just after the announcement that the group is selling a Knoxville AM for 425K. The new station, coming from Alton R. Williams' World Overcomer Outreach Ministry, is WLRM-AM out of Millington. It'll double up with WMQM-AM in Lakeland TN. The Knoxville station which FWRB just sold is WITA (11/8/04 RBR Daily Epaper #218). FWRB also has AM stations in New Orleans and Nashville, and maintains a worldwide presence with a Nashville-based shortwave station.


2005: Year of Local Muscle

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!

If you want the January Debut issue, please register now. All orders must be in by
Monday December 6th, 2004.




Washington Beat
Broadcaster wants DARS pre-chilled for Stern
California radio company Mount Wilson FM Broadcasters (MWFMB) has petitioned the FCC in hopes of getting a rulemaking which would extend the coverage of indecency regulation imposed on terrestrial broadcasters to their competitors in space - - digital audio radio satellite services. MWFMB makes several points to support its premise. It suggests that the FCC has authority to impose public interest conditions on satellite radio equal to those regulating terrestrial radio, noting that the Commission already has imposed EEO and political programming obligations on DARS, and reserved the right at that time to add other obligations at a later date. It further argues that, unlike cable and satellite video services, DARS relies on its network of terrestrial repeaters. "The FCC should not allow DARS to become a 'safe harbor' for the audio broadcast of obscene and indecent programming," wrote MWFMB. For one thing, "...Blockage (a defense relied upon by cable and television subscription services) would be an unreliable, inept method of protecting children from undesirable audio content." It would also work against a level playing field. MWFMB concludes, "The FCC has the authority to adopt an indecency rule applicable to the DARS service; the FCC should utilize that authority in order to protect the public interest; the 'later date' has arrived."

McCain wants to take softness out of 527s
Sen. John McCain (R-AZ) is claiming that the McCain-Feingold Shays-Meehan Bipartisan Campaign Reform Act was largely a success in 2004. However, there was one glaring loophole, large enough for 527 organizations to drive the proverbial truck through, which he will attempt to close. He expounded on this issue in an op-ed piece in the 11/4/04 issue of "USA Today." McCain did not see the record amounts spent on political campaigns as a flaw. "Our law was not designed to lower spending in elections because the reality is that it costs money to communicate political views. It was, however, designed to ensure that the money political groups spend in federal elections is limited to reasonable, small contributions from individuals to prevent corruption and the appearance of corruption." So McCain wants soft money out of campaigns. Hard political contributions must stay under a 2K dollar ceiling, and he noted the success both parties had getting large numbers of voters to make contributions at that level or less. However, 78M dollars came from only four individuals exploiting the 527 loophole. And it wasn't a loophole to begin with, argued McCain. "This new problem is not because of any deficiencies in McCain-Feingold. The loophole for 527 groups was created solely by the Federal Election Commission (FEC), which is responsible for enforcing the nation's campaign finance laws." He noted that the sponsors of BCRA have challenged the FEC interpretation both in the courts and legislatively.


Programming
Dial-Global signs Rick Dees
As we mentioned in Friday's Media Mix: Dial-Global and X Radio Networks announced an agreement with Rick Dees to syndicate "Rick Dees Weekly Top 40" across the nation, effective 1/1/05. Dial-Global will be the exclusive ad sa!es rep and X Radio Networks will be the exclusive distributor. The program, the longest continuously-running countdown show out there, is offered in separate versions for both CHR and Hot AC formats. Rick is leaving Premiere Radio Networks after six years and is currently heard on over 300 affiliates. The new arrangement is really the culmination of a 20-year personal and business relationship between Dees, Dial-Global Co-President/CEO David Landau and Co-President/CEO Ken Williams - - a reunion, if you will. "This is a dream come true for me to get back with these guys," said Rick Dees. "Their marketing plan is so far above the curve and their ideas for sponsorships and how to actually serve the buyers and the advertising community really cuts through the clutter. And my particular experience with them is they are the most original thinkers of any company I've had the privilege of working with." "Rick is considered one of the elite heritage broadcasting talents in the United States," said David Landau. "My friendship dates back with him over 20 years. This is a great privilege to be partnering up with him again."

Yet another college station going NPR?
The Hartford Advocate reports Wesleyan University in Hartford, CT is considering getting into the NPR business: "They call it free-form radio, which station manager Jesse Sommer describes as "more of a philosophy than anything else. The DJs and the talk show hosts have complete reign over what they play and say." | More... |


Ratings & Research
Sun rises on mid-PA radio ratings
The ever-expanding pantheon of Arbitron will grow yet again next spring with the addition of ratings for Sunbury-Selinsgrove-Lewisburg, bringing twice-a-year ratings for the first time to the section of central Pennsylvania north of state capital Harrisburg and south of Little League Baseball capital Williamsport. Ratings for the new market, which straddles the Susquehanna River, will measure the radio preferences of 168K 12+ individuals, good for #211 status out of some 290+ total markets. Sunbury Broadcasting Corporation's Roger Haddon is hoping the upgrade in the area's visibility will attract new business. "The sometimes torturous process of getting clients to pressure planners to allocate money to an undefined market would be circuited and our local advertisers will also be able to make better-educated decisions with their marketing dollars," he said.

Simmons signs multi-year
agreement with Sirius
With the recent buzz around satellite radio and the latest announcement of the Howard Stern deal, one might say satellite radio is becoming more mainstream among American adults. In recent months, Simmons, an Experian Company, the oldest and most respected authority on the behavior of the American consumer, has announced the signing of Sirius Satellite Radio to a multi-year agreement for the Simmons National Consumer Survey (NCS). "With the rapid growth of satellite radio, we are extremely excited that Sirius has chosen Simmons to help them grow their subscriber base," says Chris Wilson, president and COO, Simmons. "Simmons' NCS will empower Sirius to better understand and identify the behavioral portraits of their clients and prospects and determine the most effective branding and marketing strategies. Our goal is to help them paint a comprehensive picture of their targets' behaviors, lifestyles, attitudes and psychographics." Simmons Spring 2004 Unified Hispanic and National Consumer Survey reveals over 3 million adults 18+ already subscribe to satellite radio and over 5.5 million plan to subscribe in the next 12 months. The study also examines the demographics of consumers who plan to subscribe to satellite radio in the year and finds that men are 9% more likely than the average consumer to plan to subscribe; potential subscribers are 30% more likely to be age 25-34; they are 38% more likely to be single and the mean household income of adults planning to subscribe to satellite radio is $74,066 (7% above the national average).


Monday Morning Makers & Shakers

Transactions: 10/4/04-10/8/04
The last full week of the freeze was, in a word, slow. A tiny-market TV and a pair on noncom FMs - - a CP and one on the one-buck donor plan - - weren't enough to even get to the 2M mark.

10/4/04-10/8/04

Total

Total Deals

3

AMs

0

FMs

2

TVs

1
Value
1.75M
| Complete Charts |
Radio Transactions of the Week
Austin CP in hand for Hand
| More...
|
TV Transactions of the Week
Casper the friendly affiliate
| More...
|


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

KGMZ-FM Honolulu (Aeia HI) from Honolulu Broadcasting Inc. to Cox Radio Inc.

KGMZ-FM Honolulu (Aeia HI) from Cox Radio Inc. to Salem Communications Corporation.

KHNR-AM, KHCM-AM Honolulu (Honolulu, Waipahu HI) from Salem Communications Corporation to Cox Radio Inc.

| More... |


Stock Talk
Broadcast stocks miss out
Stock prices were mostly higher on Friday as the government reported strong retail sales for October. The Dow Industrials rose 69 points, or 0.7%, to 10,539.

You'd think that good news in retailing would be good news for broadcast stocks. Not so. The Radio Index fell 0.280, or 0.1%, to 227.431. Regent and Spanish Broadcasting System led the decliners, with each down 2.1%.


Radio Stocks

Here's how stocks fared on Friday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

38.45

+0.14

Jeff-Pilot

JP

49.70

-0.70

Beasley

BBGI

17.25

+0.08

Journal Comm.

JRN

17.43

+0.24

Citadel CDL
15.15 +0.18

Radio One, Cl. A

ROIA

13.84

-0.06

Clear Channel

CCU

34.23

+0.31

Radio One, Cl. D

ROIAK

13.80

-0.09

Cox Radio

CXR

15.39

-0.15

Regent

RGCI

5.66

-0.12

Cumulus

CMLS

15.52

-0.18

Saga Commun.

SGA

18.30

+0.05

Disney

DIS

26.80

+0.21

Salem Comm.

SALM

26.98

+0.23

Emmis

EMMS

19.36

-0.18

Sirius Sat. Radio

SIRI

4.17

+0.32

Entercom

ETM

35.37

+0.18

Spanish Bcg.

SBSA

10.72

-0.23

Entravision

EVC

8.32

+0.04

Univision

UVN

29.93

+0.13

Fisher

FSCI

49.00

+0.75

Viacom, Cl. A

VIA

36.74

+0.22

Gaylord

GET

35.88

+0.03

Viacom, Cl. B

VIAb

36.05

+0.29

Hearst-Argyle

HTV

25.79

+0.09

Westwood One

WON

22.41

+0.16

Interep

IREP

0.95

+0.05

XM Sat. Radio

XMSR

33.88

-0.13

International Bcg.

IBCS

0.01

unch

-

-

-

-

-



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Arbitrends

Arbitron
Market Results
| Hamptons |
| Middlesex |
| Nassau |
| New York |
| Riverside |


Upped & Tapped

Strategic move
for Trusty
David Trusty has been named Regional Director of Strategic Marketing for Clear Channel Radio's Louisiana-Biloxi region. He was most recently Director of Sales in Baton Rouge.

Two upped at
CC Katz Advantage
Julie Lane has been named Vice Pres/Associate Managing Director with Clear Channel Katz Advantage's Marketing Business Development team in Dallas, making her responsible for overseeing business development initiatives in the southern tier. Pamela Godfrey has been named Vice Pres/Associate Managing Director for Clear Channel Katz Advantage's Marketing Business Development team in New York, putting her in charge of business development initiatives in the New York metropolitan region.

Zepeda heads to Tucson
Andrew Zepeda, formerly of WIOG-FM Saginaw, MI, has joined Journal Broadcast Group's KZPT-FM Tucson as morning co-host, joining Meredith Teplitz.


More News Headlines

TVBR - TV News

Meredith two-parter equals a KC double up
Meredith Corp. has announced a unique deal with Sinclair Broadcast group which will effectively give it a new TV mate for its Channel 5 CBS KCTV-TV. The new broadcast kin will be Channel 62 WB KSMO-TV. For its part, Sinclair is selling as part of its "asset rationalization program," according to President/CEO David Smith, which is designed to monetize non-core properties. Meredith will pay 26.8 million for the non-license assets of KSMO and strike up a JSA. 6.7 million remains on the table for the license should the regulatory regime change, particularly as proposed by the FCC 6/2/03. That's a total price tag of 33.5 million. KCTV VP/GM Kirk Black is looking to pull some younger viewers into the mix offered to advertisers by Meredith, and he'll look at upgrading the station's programming. "We sill seek opportunities to offer local news, sports and specials on KSMO, subject to applicable FCC rules."


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.

RBR Observation: Hello Houston you now have a TX size PPM problem
Big time as Fran Kennish, Chairman, AAAA Media Research Committee, Senior Partner, Director of Media Research, Strategic Planning, Mediaedge:cia has fired off a message to all radio in the market and especially the hold out groups of Infinity, Cox and Radio One or anyone that are not participating in the Aribtron PPM trial. Bottom line radio people: The advertisers want the test and the hold outs are making radio look like obstructionists to progress and better ratings. In three words to the radio business with PPM and Houston hold outs - Suck It Up - and! get on board no matter what the results. Can't fix it if you don't know what is broken. Kennish email tells the whole story. Ps: This is not just a radio issue it is also a TV - PM issue called People Meter. 11/12/04 RBR #222

FCC's Adelstein may
return in package deal
Republicans in the Senate are looking to get anywhere between 80-100 names confirmed in the current lame duck session, mainly judicial nominees. The speculation is that Jonathan Adelstein's return to the FCC may be offered as a deal sweetener to get the package through before year's end. RBR observation: Some, including those of us here at RBR, have speculated that the Bush administration would look for a FCC candidate which could be used for political purposes. We thought they possibly would discuss it with the next minority leader, which at this point looks like it will be Harry Reid (R-NV). But the talk we see that at least one Republican Hill staffer thought that offering Adelstein up in exchange for 80 or so judges was more than fair. 11/12/04 RBR #222

Where are multiples these days?
Still high - - Part 1
If you've been waiting years for cash flow multiples to go down so you can go out and buy a few radio stations - - you can keep waiting. Brokers on the market's frontlines tell us that Wall Street worries about the radio business haven't hurt pricing and multiples remain at the heights where they've been since 1999. If anything, prices have firmed for smaller markets, which is where a lot of the transaction activity is these days. What's keeping prices high is a lack of inventory. Consolidators, for the most part - RBR observation: Sellers have to answer this - What do you want or what do you need to sell? Well just wait and see the forecast in January debut issue of Radio and Television Business Report - The Real Business Magazine. Sign up to Get It - Got It. -- Sign up here - 11/12/04 RBR #222

Look for Radio's morning drive
to get longer
Commute times are getting longer and longer everywhere and quite a few stations nationwide already have their morning drive talent beginning work at 5:00 am. But since Arbitron officially measures drive time as beginning at 6:00, advertisers often won't pay top rates for that first hour. People Meters: 800 of the devices deployed in Houston for the next PPM test set in Houston, TX but Arbitron is still negotiating with hold-out radio groups Infinity, Cox and Radio One. Ex. VP of Saga Communications Steve Goldstein is outgoing Council Chairman as VP of Operations for Rubber City Radio Group Nick Anthony is in. is also looking into ways to improve the look of the PPM device. Major issue with young men, age 18-24, remains a sore spot, no matter what the methodology. RBR observation: Hate us for saying this and it also applies to TV, get on with life and test the People Meters. Work with it and do the necessary work in progress. Or live with the paper diary as our world and business in radio and television are now more paperless. You are reading this observation on your computer not a paper fax. Get It? By the way, the three hold outs should suck it up and get on board no matter what the results. Can't fix it if you don't know what is broken.
11/11/04 RBR #221

LPMs welcomed at Granite
Other TV group owners may be grousing about lower ratings under Nielsen's Local People Meters, now deployed in five markets, but LPM is being greeted like manna from heaven at Granite Broadcasting as COO John Deushane told analysts that the company's KBWB-TV San Francisco is getting a boost from LPM measurement, due to its skew toward younger demos as a WB affiliate, while the big four affiliates with their heavy news orientation have been taking hits under LPM.
RBR observation: What did we say above with the Arbitron PPM? People get on with life with the People Meter. 11/11/04 RBR #221


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