Welcome to RBR's Daily Epaper
Volume 21, Issue 225, Jim Carnegie, Editor & Publisher
Wednesday Morning November 17th, 2004

Radio News®

First Reported
ABCRN's Traug Keller leaving for ESPN
ABC Radio Networks President Traug Keller is stepping down to move over to Disney sister company ESPN. Beginning 12/6, his title (a new position) will be SVP/ESPN Radio and cable net ESPN Deportes, reporting to Mark Shapiro, EVP Programming and Production for ESPN. Keller will oversee ESPN Radio, including coordinating with ABC Radio for ad sales and affiliate relations. Bruce Gilbert, GM ESPN Radio, will report to Keller. On the TV side, reporting to Keller will be Lino Garcia, ESPN Desportes GM. ABC Radio President John Hare will name a new ABCRN president in the next few weeks. Possibles are ABCRN SVP/Affiliate Relations and Business Administration John Rosso, ABCRN EVP/GM Darryl Brown, ABCRN SVP Programming John McConnell and ABCRN SVP/Advertising Sales and Marketing Jennifer Purtan. Keller tells RBR: "This is bittersweet for me. It's hard leaving a business that I love so much. At the same time, one of the great things about working for a company like Disney is it affords all kinds of opportunities under its tent. And the Hispanic business is one that I'm very passionate about, as can be seen by our recent SBS deal [syndicating its talent-11/11 RBR Daily Epaper #221]. I believe this is a business that's only in its infancy and I look forward to having a hand in its growth."

Radio up 14% in October at Journal
What a month October was for Journal Broadcast Group. Radio revenues were up 14% to 7.4 million - - and that paled in comparison to the TV group, where revenues shot up 51.4% to 9.5 million in a month of heavy political spending. Note, however, that the monthly figures released by Journal aren't adjusted for any stations acquired since the same month a year ago. Total broadcast revenues were up 32.4% to 16.9 million. For the publishing unit of Journal Communications, newspaper revenues were up 4.2% to 27 million, with ad revenues up 5.7%.

WISN puts Mark Belling back on the air
WISN-AM Milwaukee has reinstated Bob Belling's afternoon show 11/15 after being taken off the air for using the word "wetback" on his 10/27 show about potential voter fraud in Wisconsin. WISN took Belling off the air last week amid continued protests and the withdrawal of several advertisers. On Monday, he devoted the third hour of his three-hour program to talking about the issue, which he said he won't address again: "The comment that I made was an aberration, and everyone who listens to the program knows that. This does not mean I should get a pass for it. I don't believe in passes. I am a strong advocate of personal responsibility and I should be held responsible." Belling added, however, he won't change the tone of his program: "I cannot make any promise to the audience other than this: This show ain't changing at all. I can't promise that I won't say something that will be truly offensive to many, as my comment that created this entire situation was." The coalition that formed to protest Belling said it intends to target CC Radio and still seeks to have Belling permanently taken off the air.


AOL head of music and radio Evan Harrison
joins Clear Channel
AOL's head of music and radio, Evan Harrison, is leaving the company to run the online radio division at Clear Channel. CC executives say they would like to recreate much of the content that has made AOL Music so successful, including songs that debuted on AOL before hitting radio or television, and concerts exclusive to AOL music subscribers. 200 CC Radio stations currently stream their programming on and hope to use the Internet to create stronger national brand identities for several formats with Harrison, who will remain based in NYC and report to CC Radio CEO John Hogan.

RBR observation: CC Radio shouldn't necessarily jump at the chance to send listeners to online streaming sites, but if Harrison can recreate the formats AOL Music has via its Radio@Netscape Plus for example, this could be a chance to gather listening stats, data and feedback on format and music trending. | More... |

Blogger uncovers molehill under Fox's mountainous fine
BuzzMachine, by blogger Jeff Jarvis, is reporting the basis for the recent 1.2 million indecency hit suffered by Fox Network for its airing of "Married by America" back in April 2003. Using the Freedom of Information Act, Jarvis asked "...to see all of the 159 complaints the FCC cited in its complaint against Fox." Jarvis found out first that there were in fact only 90 complaints, and that thanks to photocopying and email copying technology, the number of US citizens who actually took the time to express themselves originally on the topic was far less than that. "So in the end, that means that a grand total of three citizens bothered to take the time to sit down and actually write a letter of complaint to the FCC," wrote Jarvis. "Millions of people watched the show. Three wrote letters of complaint." | More... |

Reid takes over for Daschle in Senate
As expected, Sen. Harry Reid (D-NV) has been selected by his Democratic colleagues as the new minority leader in the Senate. According to the Associated Press, he'll be in charge of the smallest number of Democratic senators since Herbert Hoover was in office. Reid has not been at the forefront of issues concerning broadcasters. His committee assignments, Appropriations, Environment & Public Works and Indian Affairs, are at most only peripherally involved in such matters. A fairly detailed rundown of Reid's positions on the issues available on his website make no mention of broadcasting, not even the hot button issues of indecency, ownership consolidation and campaign reform, nor was there any mention of such an issue on a list of press releases going back to June.

RBR observation: A position of partisan leadership in Congress tends to make one a generalist anyway. Look for Byron Dorgan (D-ND) to continue to take the lead Democratic role in the broadcasting arena, particularly with the exit of Ernest Hollings (D-SC). Ted Stevens (R-AK) will hold sway as chair of the all-important Senate Commerce Committee, as will two other interested Republicans, former broadcaster Conrad Burns (R-MT) and John McCain (R-AZ). It is important to remember that broadcast issues have tended to cut across party lines, except for broadcast indecency. Almost everyone is one record against that.


Conference Calls Q3 2004
TV behind Q3 growth at Liberman
Liberman Broadcasting, with its proposed IPO in limbo indefinitely due to current Wall Street conditions, is still reporting quarterly results because of the public bonds of its parent company, LBI Media. Q3 was pretty good for the Hispanic specialist's TV group, but not so for radio. TV revenues were up 20% to 12.1 million, which was attributed to growth at the company's Los Angelwes and Houston stations, along with the acquisition of KMPX-TV Dallas-Ft. Worth. Radio revenues slumped 5% to 12.1 million. "The decline in revenue can be primarily attributed to a decrease in demand for Spanish-language advertising by national advertisers and strong results posted in the third quarter of 2003, when revenue growth reached 20%," Liberman said. Companywide, operating income for Q3 remained flat at 4.7 million and adjusted EBITDA rose 6% to 5.5 million.


Adbiz©

FDA tells Pfizer to pull
"Wild Thing" Viagra ads

The FDA has told Pfizer its "wild thing" television commercials for Viagra are a little too wild. The commercials, which started airing in August, feature a balding middle-age man and an attractive blonde woman shopping. The spots don't explicitly say what Viagra is for, but they leave little room for doubt: "Remember that guy who used to be called 'Wild Thing'?" the voiceover asks and then adds, "He's back." The man smirks, and the V in Viagra forms devilish horns behind his head. In a written warning sent to the New York drug maker last week, the FDA asked Pfizer to pull the spots because they fail to disclose what condition Viagra treats and what the drug's major side effects are. Drug ads generally are required to disclose side effects if they state the condition a medicine treats. The "wild thing" spots are the first produced for Viagra by McCann-Erickson, which won the million account this year.

WPP scores Samsung account
Samsung Electronics will reportedly announce that WPP Group's J. Walter Thompson and Berlin Cameron/Red Cell (and media unit Group M) has won Samsung's 700 million global account after a nine-month review that also included Publicis Groupe and incumbents Foote Cone & Belding and Initiative.

Revlon to put 120 million account in review
AdAge reports Revlon has informed incumbent Deutsch that its contract will not be renewed, but invited the agency to participate in the review. It is not known which other agencies will be invited to pitch the business. Revlon reported last week that overall Q3 sales fell 7% to 294.4 million and combined shares of Revlon and its Almay brand in its largest category, color cosmetics, fell 1.2%. Deutsch was first assigned media responsibilities for Revlon and AOR status for Almay in 2001 and added creative duties for Revlon in 2002. Revlon spent 122 million in measured media in 2003 and 61.4 million from January through July of this year, according to TNS Media Intelligence/CMR.

Heineken USA and FEMSA Cerveza
name AORs

Heineken USA and FEMSA Cerveza, part of the largest beverage company of Mexico and Latin America, announce the selection by Heineken USA of Euro RSCG Worldwide NY and Grupo Gallegos (Long Beach, CA) as the respective AORs for the Dos Equis and Tecate brands in the US. Additionally, MediaVest will operate buying and planning for the Dos Equis Brand. The accounts were awarded after an extensive search was launched earlier this summer. Euro RSCG Worldwide will handle brand advertising for Dos Equis beer and will provide marketing strategy and creative execution for a new campaign. The assignment was awarded to Euro RSCG after a review. Media buying and planning for the Dos Equis brand has been awarded to MediaVest. Grupo Gallegos will become the AOR for the Tecate brand of beers. The decision culminates a three-month review, in which five agencies competed for Tecate's U.S. Hispanic strategic planning, creative advertising, media planning and buying responsibilities. Earlier this year, Heineken USA and FEMSA Cerveza reached an agreement that made Heineken USA the sole and exclusive importer, marketer and seller of FEMSA's beer brands in the US. Under the terms of the agreement, Heineken USA will assume responsibility for the marketing, sales and distribution of the beer brands Dos Equis, Tecate, Sol, Carta Blanca and Bohemia.


Media Markets & MoneyTM
Close encounters east and west
In Charlotte NC, Radio One has taken the keys to WPZS-FM, a recent move-in acquired from Susquehanna Radio. Out west, a pair of FM movers has gone from AGM to Regent, after an FCC red flag was tossed and then picked back up. In the Charlotte deal, Radio One picked up the former WABZ-FM from Susquehanna for 11.5M dollars (7/30/04 RBR Daily Epaper #148), after the latter company received permission to move the station to Indian Trail NC and into the Charlotte market. Radio One has been operating the station in an LMA, during which time it flipped its format to Gospel. It pairs in the markwet with Adult Urban WQNC-FM. Broker Michael Bergner told RBR that the deal sending KKPL-FM Cheyenne WY and KARS-FM Laramie WY to Regent Communications for 7.75M is now done. Despite appearances suggested by the cities of license, the two stations operate as part of the Fort Collins CO market, where they are part of a Regent superduopoly. The deal dates back to early 2003, but was slowed down by an FCC flag.

Where are multiples these days? Still high - - Part 4
There really hasn't been a major deal based on cash flow in a large market since Citadel's purchase of a four-station Memphis cluster from Barnstable for $100 million very early this year. "That multiple was probably 20 times. We haven't seen a deal yet that reflects the downward trend in multiples for the publicly traded stocks," said broker Elliot Evers of Media Venture Partners. | More... |


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
Jonathan "I Get Around" Adelstein?
You cannot underestimate the value of networking. The seat on the Federal Communications Commission which went to Jonathan Adelstein late in 2002 was largely a result of the sponsorship of Senate Minority Leader Tom Daschle (D-SD), for whom Adelstein is a former employee. When Daschle went down to defeat 11/2, it was widely predicted that Adelstein would go down with the ship. The White House had balked at his renomination despite widespread support for Adelstein among Senate Republicans precisely because of his Daschle relationship, or so most believed. RBR and others thought that a new candidate offered up by the White House would also be calculated in terms of political bargaining value. As it turns out, Adelstein has had a relationship with the new minority leader, Harry Reid (D-NV). According to Reuters, he was once a liaison to Reid. At any rate, Adelstein will have ties to Reid and favorable reviews from Republican senators when he goes before the Senate Commerce Committee for confirmation Thursday 11/18/04.

FCC CAC convenes Friday
The Consumer Advisory Committee of the FCC has a full day planned for Friday, 11/19/04 at the Portals in Southwest Washington. Headed by Call For Action's Shirley Rooker, the group will spend the bulk of the day listening to reports from its various committees, including a 45-minute presentation by the BroadBand DTV Working Group, chaired by Larry Goldberg, which kicks off at 3:00 PM.


Engineering
Arbitron looking at RFID technology for PPM
Arbitron has selected Octave Technology, an Auto-ID software and technology company, to explore the possible integration of passive auto identification technology - - such as radio frequency identification (RFID) functionality - - into Arbitron's Portable People Meter (PPM) system. The two companies expect to gain a greater understanding of the capabilities of passive RFID readers and chipsets for media and market research applications as well as develop insights into the likelihood, costs and challenges in integrating these technologies. "Our goal is to keep PPM on the cutting edge of 21st century technology. Octave Technology's expertise in the field of auto ID communication and hardware design will help Arbitron enhance its research systems to make smarter connections between media experiences of today's busy consumers and their activities in the marketplace," said Ron Kolessar, vice president of technology for Arbitron. "Combining our knowledge of media and research with the Auto-ID expertise of Octave Technology will help enhance the PPM's capabilities and its implementation in the media and marketing industry." "Auto-ID is an enabling technology," said Rick Morani, senior vice president and co-founder, Octave Technology. "When used with more robust and mature systems, like those created by Arbitron, it can provide organizations with tremendous insight into consumer behavior."


Transactions
KTTA-FM Sacramento (Esparto CA) and KBBU-FM Modesto CA from Aztec Media Inc./Maya Media LLC to Bustos Media of California LLC

KHBQ-FM CP Kalispell MT from Broadcasting for the Challenged Inc. to Educational Media Foundation

| More... |


Stock Talk
A sluggish day for stocks
An unexpectedly large jump in wholesale prices made traders cautious on Tuesday. The Dow Industrials finished with a loss of 63 points, or 0.6%, at 10,488.

Radio stocks also fell. The Radio Index was off 0.202, or 0.1%, at 228.224. There were no big losers, however. Regent was off 2%. There were even some gainers, with Citadel up 1.7% and Cox gaining 1.6%.


Radio Stocks

Here's how stocks fared on Tuesday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

37.98

-0.22

Jeff-Pilot

JP

49.95

-0.20

Beasley

BBGI

17.47

-0.24

Journal Comm.

JRN

17.56

+0.07

Citadel CDL
15.38 +0.26

Radio One, Cl. A

ROIA

13.74

+0.09

Clear Channel

CCU

34.10

-0.27

Radio One, Cl. D

ROIAK

13.72

+0.09

Cox Radio

CXR

15.75

+0.25

Regent

RGCI

5.69

-0.12

Cumulus

CMLS

15.45

-0.05

Saga Commun.

SGA

18.22

+0.02

Disney

DIS

26.53

-0.20

Salem Comm.

SALM

27.18

+0.18

Emmis

EMMS

19.14

-0.11

Sirius Sat. Radio

SIRI

4.71

+0.26

Entercom

ETM

35.91

+0.25

Spanish Bcg.

SBSA

10.75

-0.05

Entravision

EVC

8.30

unch

Univision

UVN

30.43

-0.02

Fisher

FSCI

48.35

-0.35

Viacom, Cl. A

VIA

36.52

-0.15

Gaylord

GET

36.30

-0.30

Viacom, Cl. B

VIAb

35.70

-0.28

Hearst-Argyle

HTV

25.98

+0.20

Westwood One

WON

22.75

-0.15

Interep

IREP

0.87

unch

XM Sat. Radio

XMSR

36.13

+1.86

International Bcg.

IBCS

0.02

unch

-

-

-

-

-



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Send Us Your OpinionsWe want to
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This is your column, so send your comments to [email protected]

Another reader has taken on the "Saving Private Ryan" controversy.

What is the big deal? I began my career in radio in 1974. We couldn't say squat then. But now we should be allowed to say anything and everything? Why could they not bleep out the more offensive words? I don't want to subject my children to the seven no-no words on network TV. And I can use those words with the best of them. I just think there is some line in the sand we should draw to have civilized society.

Mike Pursel,
Mike Pursel Advertising
Nine Mile Falls, WA


Arbitrends

Arbitron
Market Results
| Bakersfield |
| Detroit |
| Philadelphia |
| San Diego |


Upped & Tapped

CC Radio
gets Hispanic sales chief
With Clear Channel Radio expanding its portfolio of Hispanic stations, Raul Calvo has been named Vice President/Director of Sales for Clear Channel Radio Sales Hispanic. In this newly created position, he will manage and oversee CCRS Hispanic sales efforts.

Paragon Media names Davis Director/Music Research
Radio vet Steve Davis joins Paragon Media Strategies as Director of Music Research. Davis will be responsible for the management of all international and national music testing for Paragon's radio clients.

Four upped at Viacom
Viacom Chairman and CEO Sumner Redstone announced the promotion of four key members of the company's senior management team to Executive Vice President, including Carl Folta, head of Corporate Relations; Carol Melton, in charge of Government Relations; William Roskin, who oversees Human Resources and Administration, and Martin Shea, head of Investor Relations. They are all Executive Officers of Viacom, and report directly to Redstone.

New CFO for Liberman
Steven Gramer, formerly of MatchNet Plc, has been named CFO of LBI Media, the parent company of Liberman Broadcasting, succeeding Brett Zane who is leaving for a "non-broadcasting media opportunity."


More News Headlines

RBR - Radio News

CEA petitions FCC
for faster digital
tuner mandate

In a filing with the FCC last week, the Consumer Electronics Association and the Consumer Electronics Retailers Coalition urged the FCC to accelerate the digital television (DTV) tuner mandate timetable. Pointing to the unintended consequences of the 50% requirement, CEA and CERC requested that the 100% deadline for DTV tuners in television screen sizes 25" to 36" be accelerated to 3/1/06, thereby speeding the consumer migration to DTV. The current DTV tuner mandate timetable calls for 50% of the TV receivers in the 25" to 36" screen size range to have a digital tuner by 7/1/05. CEA and CERC are petitioning to exchange the 50% requirement for advancing the 100% requirement in this size category up from 7/1/06 to 3/1/06. The associations argue the modification will expedite the planning for and implementation of 100% incorporation of DTV tuners, in providing for a clear date for universal reliance on the DTV technology and components. "The current 50% requirement is antithetical to the Commission's goal of building marketplace demand for broadcast DTV receivers when applied to popular, 25 to 36 inch, screen sizes," said CEA President/CEO Gary Shapiro. "Although initially conceived as a phase-in for the benefit of manufacturers and retailers, in reality it creates uncertainty in the marketplace for each group and slows the ramping up of volume production necessary to bring costs down.

TVBR observation: This is good news, because for years we've been reporting many of the DTV sales numbers issued by CEA weren't really true DTV sets. Most of the sales were digital monitors that had no DTV tuner built in. People would bring the sets home and find they needed to spend even more on a separate DTV tuner set top box. This filing could help accelerate the closing of that gap.


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.

More fun with
radio markets: Part III
"Will grant of this application result in the applicant or any party to this application having a cognizable interest in more than one commercial or noncommercial full-power radio station located in (i.e., having its community of license within) or 'home' to the same metropolitan area (Metro), as defined by Arbitron and reported by BIA?" Thus begins the multiple ownership worksheet for radio on FCC Forms 301, 314 and 315. RBR observation: Our exploration of the new radio market definition regime is not a witch hunt. We are not trying to identify any villains - - not at Arbitron, not at BIA, not at the FCC, not on Capitol Hill, not among station group owners. What we're trying to do is figure out how the new rules are going to play out in real life, after the catalytic multiple ownership filing for a Burlington AM station. Now if you are a fan of Reality programming - this is reality.
11/16/04 RBR #224

Where are multiples these days? Still high - - Part 3
With almost no deal flow in the top markets, it's hard to say what multiples are for cash flowing stations in really large markets - - except that they're high. Most big radio transactions lately have been for sticks, with the buyers having plans that aren't dependent on cash-flow multiples. 11/16/04 RBR #224

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, we strongly advise that you RBR through this maze daily. Your stations, ywour future and your problem. RBR stand by our radio business. 11/15/04 RBR #223


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