Volume 20, Issue 225, Jim Carnegie, Publisher
Monday Morning November 17th, 2003

Radio News ®

RBR Exclusive
The demise of Clear Channel in the rep business was devised over 1-1/2 yrs. ago
As told to RBR/TVBR Publisher Jim Carnegie by Interep Chairman/CEO Ralph Guild Sunday afternoon (11/16/03 2:20pm) that the plan unveiled last Friday with Steve Shaw, Tucker Flood and Mark Gray leaving Katz Radio Group (Katz and Christal) to form a new rep firm and secure the client base from the grips of Clear Channel Communications was initially devised by Katz Media CEO Stu Olds 1-1/2 years ago. Olds first brought the deal to Guild on Monday, August 13, 2001. The plan by Olds, according to Guild, was "He (Olds) could bring the core management team over to Interep, plus [he] controlled enough stations that they would follow." | Full Story Click Here | RBR Observation |

Days of thunder roll over rep business;
Katz Radio and Christal Radio, where are you?
Early Friday morning (11/14/03) Steve Shaw, Tucker Flood and Mark Gray - - the three top executives at Katz Radio Group - - resigned and walked across the street to Interep to establish two soon-to-be-named national radio rep firms. The major bolt came shortly after, as up to 130 Katz Radio and Christal Radio staffers also walked and may have possibly begun to dismantle a major piece of Clear Channel Communications (CCU) organization. According to sources, the reasons varied but in short it boiled down to how Clear Channel's various executives conducted business and the lack of good human relations skills. | Full Story Click Here | RBR Observation |

Lack of good human relations skills,
or was this an orchestrated coup?
As reported Friday afternoon in the RBR/TVBR afternoon Media Mix (11/14/04): Interep CEO Ralph Guild told RBR this all came together in about a week, with Steve Shaw contacting him after becoming frustrated with Katz Media Group owner Clear Channel steering business to its own Clear Channel Radio Sales, at the expense of clients repped by Katz and Christal. Clarification note: A simple line of miss communications, Shaw clarified this statement telling RBR/TVBR Publisher Jim Carnegie, "Not so, we never steered any business from Katz or Christal clients into Clear Channel Radio Sales." Shaw also highly praised the staff at Katz Radio stating, "I've never been more proud of a group of people in my life on the level of commitment they have to their clients and to the radio business." RBR observation: Now it's about the clients.
| Full Story Click Here
| RBR Observation |

RBR Exclusive
Old responds to ugly mess via email to all clients
Last night at 6:40pm, RBR received a copy courtesty of Stu Olds of the letter sent to client stations. This was sent out last night outlining details of what happened and were Katz is going forward. “Regrettably, those individuals lied and misled their employees about the very nature of their employment. They told their staff that because management was leaving, the Katz Radio Group would no longer exist and therefore they would be on the street with no job or health insurance.” Click here to read the full memo:

Boston Ventures rides the white horse;
cash infusion fuels Interep expansion

The mass migration of Katz Radio Group management and staffers to Interep apparently happened quickly, but Interep had been working for some time on lining up new money for expansion. Now it's being put to use. | Full Story Click Here |

Reaction to rep moves is mostly shock and surprise
Client stations and ad buyers were caught unawares Friday when mass defections occurred at Katz Radio Group and former staffers headed to Interep to start two new reps. | Full Story Click Here |

Agencies react with shock as well
At Mediacom, Matthew Warnecke, VP of Network and Local Radio Services and one of the nation's biggest radio ad buyers, told RBR he had lots of questions yet to be answered. "There are tons of questions. What about the Interep/Citadel/Katz suit? If Katz AE's are gone, what about KATZ Dimensions? What about all of those contracts? What about competition from individual station groups that are now housed at one big rep firm?" Warnecke, along with the rest of us, may get answers to some of those questions this week. Stay tuned.

RBR Exclusive
Citadel returns to Interep
No Contract with Katz? Yep, even though Citadel is being represented by Katz for the past few weeks since leaving Interep (10/2 RBR Daily Epaper #193), according to various key sources close to the situation Citadel has not yet signed a contract. It plays out, as told to RBR by sources, that last Wednesday (11/12/03) there was a meet-and-greet party in New York City held by Katz executives for the Citadel executives to say welcome to their new home. Again, according to sources, the next day, Thursday (11/13/03), Chairman/CEO Farid Suleman instructed COO Judy Ellis to examine the contract one last time to see if anything was overlooked and then that it be presented for his signature Friday (11/14/03). RBR observation: Better look out for your own station. | Full Story Click Here | RBR Observation |

Conference Calls, Q3 2003

Big gains at Fisher
Fisher Communications doesn't have quarterly conference calls, but it has reported its Q3 financial results - - and they are better than most other companies, particularly for radio. Radio revenues rose 70.1% to $14.3M, due primarily, the company said, to its new contract to broadcast Seattle Mariners games. TV revenues were up 0.3% to $20.6M. Fisher said Seattle TV revenues were up 1.4%, while Portland was down 1.1%. Including its other operations, total revenues were up 20% for the quarter to $36.2M. Income from operations for radio turned positive to the tune of $6K, compared to a loss of $818K a year earlier, and TV's income from operations was in the plus column for $324K, compared to a loss of $1.1M. On the bottom line, Fisher reported a loss from continuing operations of $3.3M, or $0.38 per share.

Adbiz ©

Center for Science in the Public Interest:
Stop taking money from alcohol advertisers

The Center for Science in the Public Interest has kicked off a campaign aimed at getting colleges and universities, athletic conferences, and the NCAA to stop taking money from alcohol advertisers. | Full Story Click Here |

Tobacco companies agree to drop ads
Four tobacco companies have agreed to not place ads in weekly newsmagazines that are distributed in middle schools and high schools as part of classroom programs. The companies, responding to a request from a committee of the National Association of Attorneys General, are: Brown & Williamson, Philip Morris, R.J. Reynolds and U.S. Smokeless Tobacco. The attorneys general, in a letter to the companies, said the ads, which have appeared in Newsweek, Time and U.S. News & World Report, violate an agreement prohibiting marketing tobacco products to children.

Ohio Education Association launches
"Great Public Schools for Every Child"
The Ohio Education Association will launch a statewide advertising campaign to highlight the importance of public education during American Education Week, November 16-22. OEA's campaign "Great Public Schools for Every Child" includes spend on television, radio and newspaper. The ads call on citizens to value public education while focusing on the need for greater parental involvement to enhance their children's education.

Another media mouth to feed in DC?
Radio, TV, cable, newspaper and all the other advertising media in Washington DC may face a new competitor as early as this summer, according to an article in the Washington Post. It's the entire Metro transit system - - buses, subway cars, parking garages, even the subway tunnels themselves may be in the mix. | Full Story Click Here |

Hanes launches effort for
"Most Comfortable Underwear Ever"
Hanes announced their latest innovation in men's comfort -- the new ComfortSoft Waistband, a cotton-wrapped, tagless waistband for men.| Full Story Click Here |

Media, Markets & Money tm

Final curtain for Big City
Big City Radio says holders of a majority of its voting stock have voted to approve a plan of liquidation and dissolution that was approved by its board of directors in August. | Full Story Click Here |

Cluster buster? Big Island deal dismissed
The FCC has put the brakes on a $2.9M deal which would have given the buyer its second big cluster deal on the Big Island of Hawaii. | Full Story Click Here |

Forking over the green brings in Green Valley
Hispanic broadcast giant Univision has closed on its second full powered television station in the Tucson, Arizona market. According to deal broker Kalil & Co., $12.3M is bringing KXGR-TV Channel 46 into the Univision fold. | Full Story Click Here |

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Washington Beat

Fine stuff: Do not fold, Spindale or mutilate
Noncommercial WNCW-FM in Spindale NC was found by the FCC to have gone a little overboard during a fund-raising contest, and has been hit with a $4K Notice of Apparent Liability by the FCC. The station is licensed to Isothermal College.
| Full Story Click Here

Biennial reports: Your next!
The FCC is continuing to cycle through the states and territories as it collects biennial ownership reports and processes license renewals. The next set reports are due by 12/1/03. This time around, the lucky states include Alabama, Colorado, Connecticut, Georgia, Maine, Massachusetts, Minnesota, Montana, New Hampshire, North Dakota, Rhode Island, South Dakota and Vermont. FCC Form 323 of Form 323-E are available electronically from the Consolidated Database System (CDBS) maintained by the Media Bureau. Paper filings are not accepted without a waiver.


Blink goes Christmas
The new 102.7 Blink (WNEW-FM) kicked-off the holiday season with non-stop holiday music beginning today and continuing through midnight on Christmas Day, Thursday, December 25. 102.7 is New York's first station this season to present continuous holiday favorites.

Sun-Sentinel and WFTL-AM launch talker
The Ft. Lauderdale Sun-Sentinel Company and the new WFTL-AM "Live 85" launched a new one-hour live daily news/talk show from the Sun-Sentinel newsroom in Fort Lauderdale. "Live from the Sun-Sentinel" is hosted by "Live 85" Program Director and News Host Bob Christy and will air daily at 11 a.m. It will feature live discussions of breaking news and developing stories with Sun-Sentinel staffers and other guests. Each Friday show will include a "Fun Friday" theme, showcasing entertainment ideas, including movie and festival information. WFTL is owned and operated by the James Crystal Radio Group; the Sun-Sentinel is a subsidiary of Tribune.

Blair Garner's 10th Anniversary celebration brought together the best in Country music
Pictured left to right at the Premiere Radio Networks studios 11/13, Reba McEntire, Patty Loveless, Blair Garner, Amy Grant, and Vince Gill. Throughout different points in the special broadcast, each of these artists and many others performed live on the nationally syndicated "After MidNite."

Monday Morning Shakers & Makers

Deals: 10/13-17
Arthur Liu and his Multicultural Broadcasting filed this week to buy the entire O&O portfolio of Radio Unica, paying $149,525,000. That, ladies and gentlemen, is more than the grand total of the biggest week we've recorded since the FCC lifted the transaction freeze in August. Five more radio deals carried price tags between $56.9M and $20M, plus there was a $10M TV deal. The ultimate tally of $344,763,500 is well more than double the total of that previous big week (8/25-29, if you're keeping score). Three other weeks have topped the total of 53 stations moved (the record so far is 60), but none have come close to the total of 21 stations in the top 50 markets - - no more than five such stations have moved in any week since the thaw until Multicultural's blockbuster.



Total Deals







For Complete Charts, Click Here |

Radio Deal of the Week
Multicultural scores a big market group | Full Story Click Here |
TV Deal of the Week
Paxson finds a Wray of sunshine
in Shreveport
| Full Story Click Here |


$6,500,000 KGWN-TV & KSTF-TV Cheyenne WY-Scottsbluff NE (Cheyenne WY, Scottsbluff NE) from Chelsey Broadcasting Companyh of Cheyenne LLC to Sagamorehill Broadcasting of Wyoming/Northern Colorad LLC.

$3,750,000 WLVG-FM Nassau-Suffolk (Center Moriches NY) from Way Broadcasting, related to Multicultural Radio Broadcasting Inc. to IW Limited Liability Company, a subsidiary of Barnstable Broadcasting Inc.

$2,100,000 WVAM-AM & WPRR-FM Altoona PA from Vital Licenses LLC to Vital Broadcasting Licenses LLC, a subsidiary of Forever Broadcasting.

| More Details Click Here

Stock Talk

Retail woes sink stocks
A day after Wal-Mart warned about Q4 sales, the Commerce Department reported that consumer spending fell in October. Not good news for stocks, and particularly not for broadcasting stocks. The Dow Industrials ended the session down 69 points, or 0.7%, at 9,769.

The Radio Index was off slightly more, falling 2.334, or 0.9%, to 253.654. Interep, a penny stock, was the day's big winner - - shooting up 74% to $2.70 on news of Katz defections and a major cash infusion (see Radio News). Entravision and Univision were each up 4.2%. Both had reported strong Q3 earnings after the markets closed on Thursday. Beasley was the day's biggest loser, down 4.3%.

Radio Stocks

Here's how stocks fared on Friday

Company Symbol Close Change Company Symbol Close Change












Journal Comm.




Big City YFM $1.34


Radio One, Cl. A




Citadel CDL $19.13 -$0.36

Radio One, Cl. D




Clear Channel




Radio Unica




Cox Radio












Saga Commun.








Salem Comm.








Sirius Sat. Radio








Spanish Bcg.
















Viacom, Cl. A








Viacom, Cl. B








Westwood One








XM Sat. Radio




International Bcg.




- - - -

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Click on these issues for Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Liggins expects wide acceptance
for TV One
More details are being filled in as Radio One and Comcast prepare for January's launch of TV One. RBR observation: We see a trend.
11/14/03 RBR #224

Rewriting before it's history?
It's one thing to rewrite history. The FCC, however, may be in the odd position of rewriting history that hasn't been made yet. That's because the myriad challenges to its historic (pending) ruling on broadcast ownership regulations is under so many challenges, that by the time everything is settled, it'll have been forced in its own right to settle into its next biennial review! RBR observation: Not again - - so soon! 11/14/03 RBR #224

NBC pulling Pax investment
Paxson Communications says NBC has exercised its right to redeem, for about $550M in cash, all of NBC's investment in Paxson's convertible exchangeable preferred stock. So, it appears that NBC won't be acquiring Paxson, regardless of whether FCC rules would ever permit the combination - - and that's just fine with Paxson, which has already been looking for another buyer.
11/14/03 TVBR #224

Radio One still pushing its reps
Three months after RBR broke the story that Radio One was calling its national reps on the carpet to demand better performance, the radio group says there's been some improvement, but it's not yet satisfied. COO Mary Catherine Sneed says talks are ongoing with both Interep and Katz, since Radio One has its stations split between the two rep firms.
11/13/03 RBR #223

Broadcasting continues to be an expanding universe
They say the universe is expanding, and that's certainly true of the American broadcasting part of it. In particular, a mini-surge in FM construction more than made up for the loss of yet another AM station. 11/13/03 RBR #223

Mixed results from
early October reports

A couple of TV groups associated with newspaper chains have reported on October revenues, but the information doesn't provide a clear trend - - except that revenues were down this year, absent last year's political spending. TVBR observation: The good and bad of political. 11/13/03 TVBR #223

Analyze this: Battle of the ...steins
Financial analysts from CIBC (Jason Helfstein) and Goldman Sachs (Richard Rosenstein) have taken their magnifying glasses to the recently-released RAB radio revenue figures and come up with some comments. 11/12/03 RBR #222

Dereg uncertainty stalls dealmaking
It seems the only thing worse than dealing with government regulations is trying to deal with uncertainty about government regulations. Group owners may find it frustrating to deal with the battles being fought out in court and on Capitol Hill over the FCC's June 2 attempt at new ownership rules, the situation is even worse for TV groups. RBR observation: Not knowing is the worst situation. 11/12/03 RBR #222

We ask GMs-How involved are you in making programming decisions for your station(s)? Why?
Darren Smith, Cumulus Broadcasting/Lexington-Fayette, KY 11/12/03 RBR #222

Analyst weighs TiVo impact
Looking down the road, SG Cowen analyst James Marsh is out with a warning to investors that digital video recorders (DVR - - TiVo and its cousins) pose a long-term threat to the ad-supported business model of TV companies, and, of course, to their stock prices.
11/12/03 TVBR #222

NBC attacks Nielsen Methodology
The skirmish between the networks and Nielsen just got hotter, as NBC charged that large declines among young viewers this season are partly attributable to changes in Nielsen's statistical sample.
11/12/03 TVBR #222

Radio enjoys a black September
The Radio Advertising Bureau reports that total radio revenue for the month of September was up 4% over the same month in 2002. The gain was produced by a modest 2% gain in local sales and a robust double-digit jump of 13% in the national category. 11/11/03 RBR #221

Belo cuts to the Quick in Dallas
Another pair of forks are digging into the elusive 18-34 advertising pie in Dallas, according to the Associated Press. Both are tabloid print offerings, and both will be distributed free of charge. RBR observation: Ouch! 11/11/03 RBR #221

We ask GMs-How involved are you in
making programming decisions for your station(s)? Why?
Roy Robertson, Somar Communications/La Plata, MD:
11/11/03 RBR #221

Payola stays on the front burner
Two high profile players on the government side of broadcasting went out of their ways to keep payola-related issues, if not on the front burner, then at least percolating away on the stove somewhere in the back. RBR observation: Movement of the green produces an area of gray 10/11/03 RBR #220

Deals: 10/6-10
Boys and girls, can you say SLOW? The brakes screeched on so hard on station trading this week you'd almost think the FCC put another freeze in place! 10/11/03 RBR #220

At last, an honest man
You have to give Saga Communications CEO Ed Christian credit. While other group heads have been complaining about rate cutting by others, they've generally been claiming to be virgins in an industry full of rate whores. But Christian admits that Saga may have sinned a bit. 11/7/03 RBR #219

RBR was there... FCC's Michael Copps meets the press
Convened a press conference in his office Thursday morning, holding forth on a number of topics. One of the big ones, of course, was the ongoing battle over broadcast ownership regulation.
11/7/03 RBR #219

What recovery?
As radio groups report their quarterly results, Wall Street analysts have been asking when the recovery is going to take hold for radio. A couple of radio CEOs suggested yesterday that the so-called recovery may not really have taken hold yet.
11/7/03 RBR #219

Saga Communications
stations leave Interep

Used to have its national rep contracts split between Katz and Interep - - but no more. It is all a Katz ballgame. RBR observation: Another major blow to Interep. First Greater Media then Citiadel, now Saga. Big name groups and quality stations over to Clear Channel's - Katz.
11/7/03 RBR #219

I AM, I said: Major thaw at the FCC
The FCC has announced a window which will open the AM airwaves to new stations and to allow major modifications to old ones. The window opens 1/26/04 and closes promptly 1/30/04. 11/7/03 RBR #219

Late ad buys aren't a long-term trend
Radio group heads have been complaining all year that visibility has been limited because advertisers have been waiting to place business right before air dates. That prompted Credit Suisse First Boston analyst Paul Sweeney to ask, during Cox Radio's quarterly conference call, whether that might become a long-term trend. 11/6/03 RBR #218

WFLA-TV Tampa makes
a disclaimer

Issued a statement saying that it will take extra steps to ensure that paid on-air interviews between guests and the station's air staff are so-labeled. This comes after the station was named in a letter from Sen. John McCain (R-AZ) to FCC Chairman Michael Powell. McCain said the station and others had apparently found a new way to profit from a form of pay-for-play.
TVBR observation: Roll that beautiful small-type footage.11/6/03 TVBR #218

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