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Volume 21, Issue 226, Jim Carnegie, Editor & Publisher
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Thursday Morning November 18th, 2004
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Radio News®
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 TRN signs Mancow;
TRN FM may go RADAR
Talk Radio Network's TRN FM network (a new network from the syndicator that is rumored to go RADAR-rated) has signed a deal with Eric "Mancow" Muller that is positioned as the antidote to 46 affiliates who may be losing Howard Stern sooner rather than later to Sirius Satellite Radio. TRN is pitching him as both "hip" and a "safe advertising environment."
RBR observation: The only quandary we see is for the 27 Infinity stations who are Stern affiliates. Is Hollander really going to do something "big" as a replacement for Stern--as he's been telling the industry? Would he bring on a big Hollywood star? Would he even bring back Opie and Anthony? We hear that is indeed possible - - remember how much O&A hated Stern and vice versa? Indeed, Viacom/Infinity is going to have to come up with a great replacement for Stern or Mancow may be the preferred choice at the station level. | More... |
 Will T.O. promo be a TKO for ABC?
It appears that someone in the promotions department at ABC was orbiting in the international space station for much of this year as those of us back on planet Earth were watching CBS be put through the wringer for having Janet Jackson flash her breast during the Super Bowl halftime show. What other possible explanation could there be for what aired during the pre-game show to ABC's "Monday Night Football' this week? The promo for the hit series "Desperate Housewifes" that had actress Nicollete Sheridan dropping her towel (apparently all she was wearing) and jumping into the arms of Philadelphia Eagles receiver Terrell Owens. Complaints are pouring into ABC and the FCC.
RBR observation: As you might expect, several complaints have been filed with the FCC. Even in the current hyper-sensitive environment, it's hard to imagine how the Commission could find that a bare back violates its decency standard - - but you never know. At the very least, the display of poor taste has been noticed by FCC Chairman Michael Powell. "I wonder if Walt Disney would be proud?" he said, when asked about the incident in a CNBC interview. If the American Family Association is correct, ABC may be able to breathe easy this time. It looks like the anti-indecency team has decided not to blitz, and to simply drop back into a zone defense. However, they are making it clear that they're watching, if not 24/7, than certainly during the hours between 6AM-10PM when safe harbor is shut down. | More... |
Lame duck session ducks indecency
It looks like the title of Sam Brownback's "Decency Enforcement Act of 2004" is going to have to get a new ending. It is not expected to be put forward until the next Congress is seated next year. The Los Angeles Times says Brownback is expected to resurrect the measure in January. Nevertheless, the Family Research Council is counseling its members to contact their senators now. "The American public, President Bush, the FCC and the US House of Representatives realize that only by greatly increasing FCC fines will these multi-billion companies get the message. Why can't the US Senate get the same message?" Meanwhile, BuzzMachine blogger Jeff Jarvis, who is working the opposition on the issue, said, "Protect the First Amendment. Write your senators and congressmen and urge them to find sanity at the last minute and block the indecency bill."
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The moguls meet again...this time at Interep
The industry heads continue to band together to try and take initiatives and everybody is working closer than they ever have to improve the industry and put radio in a better light. Yesterday afternoon Noon-4PM was the time. Interep NYC was the place where the quarterly meeting took place of the radio moguls. This time present: Joel Hollander, John Hogan, Peter Smythe, David Field, Bruce Reese, Dick Ferguson and David Kennedy. Industry issues were discussed, such as PPM (Steve Morris from Arbitron was there to make a presentation - - PPM is "still far away" was the gist), RAB, etc.
Infinity cans indie promoters
Infinity has confirmed that after a series of conference calls with GMs and PDs at its stations, the company will no longer be using the services of per-station independent record promoters, effective immediately. The promoters are being notified on an individual basis from each station. The move comes shortly after New York Attorney General Elliot Spitzer began handing out subpoenas to the record industry and the independent promoters who work to win radio airplay, signaling that he is probing new payola allegations (10/25/04 RBR Daily Epaper #208).
RBR observation: We repeat our advice. If your radio station is still accepting payments from the indies, or allows your employees to do so, this should be a wake-up call. Stop it now or face potential legal expenses far in excess of any cash, trips or merchandise you might get from the indies.
 Moody's give thumbs up to stock buybacks
Every time you turn around another broadcasting company is announcing plans to buy back a big chunk of its own stock with its free cash flow. Moody's Investors Service has taken note of that trend and declared it a good thing. In a teleconference for leveraged finance investors, Moody's analysts said that in the broadcast sector, many companies have recently been taking actions, such as share repurchases, that benefit shareholders at the expense of fixed income investors after shortfalls in advertising revenues prompted stock price declines. Even so, Moody's is not worried that the buybacks will harm bondholders. "Any negative impact from Moody's as a result of shareholder-friendly actions is likely to be muted. We continue to believe in the strength of the overall sector, mostly in respect to asset value-to-debt, and have assumed some excess valuation on the part of the stock market," said Moody's Vice President/Senior Credit Officer Christina Padgett. "Moreover, liquidity for most of the sector remains good, given the still-low interest rates." Looking towards 2005, she said, "Our revenue expectations are not lofty." For the most part, the weaknesses and strengths of the sector continue the same as before, Padgett told the investor group. On the one hand, credit negatives persist, such as a predisposition for debt-financed acquisitions, high leverage as measured by debt-to-cash flow, and continuing viewer fragmentation. On the other hand, companies usually hold diverse portfolios of monetizable assets, show high operating margins and relatively modest capital expenditures, and have the potential to generate free cash flow, the Moody's analyst said.
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This afternoon look for 1:00 Challenges into Digital '05 
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Adbiz©
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RAB produces RAEL study "playbook"
The Radio Advertising Bureau has produced extensive materials related to the recent WirthlinWorldwide Study from the Radio Ad Effectiveness Lab (RAEL) titled "Personal Relevance; Personal Connections: How Radio Ads Affect Consumers." Made available exclusively to RAB members at www.rab.com, the materials include two PowerPoint presentations, full presentation transcripts, and an accompanying Playbook that offers guidelines on successfully presenting this first new consumer research study from RAEL. The thirty-minute presentation is a clear-cut, easy to understand, and efficient way to communicate the results of the Wirthlin research to clients. To accommodate different needs and situations, the presentation is available with or without voice-over narration from Jim Peacock, President of Peacock Research and Consultant to RAEL. A transcript of the narration is also available for download. The Playbook is a primer to guide member stations through the presentation. The entire WirthlinWorldwide Study is available for download at the RAEL Website, www.radioadlab.org. In addition, RAEL White Papers and Case Studies are also available on the site.
 TiVo will no longer "skip" past advertisers
The LA Times reports when it debuted in 1999, TiVo revolutionized the TV experience by wresting control of screen time from advertisers, allowing viewers to record shows and skip commercials. Behind the scenes, though, TiVo was courting advertisers, selling inroads to a universe most customers saw as commercial-free. The result is a groundbreaking new business strategy, developed with more than 30 of the nation's largest advertisers, that in key ways circumvents the very technology that made TiVo famous. | More... |
 Staples makes digital imaging
easy this holiday season
Staples makes imaging easy for the many consumers purchasing digital cameras this holiday season. Already a trusted source for photo paper, ink and printers, Staples will launch a new holiday advertising campaign on 11/21 that highlights the retailer as a destination for digital cameras for the whole family. The holiday campaign is the first creative by Staples' recently selected AOR McCann Erickson, and includes TV and radio spots leveraging Staples signature empathetic humor to demonstrate that there is a digital camera for everyone on their holiday shopping list. The 30-second TV spot features a family preparing for the holidays and decorating the tree. Grandma gathers the family around for a photo and - click - snaps a stapler just like a camera. Grandma shakes her head as the announcer says, "Come on, take the hint. Staples has the digital cameras everyone wants this year." The spot also features Staples' expanded digital camera selection, camera accessories and trained associates. At its retail locations, Staples has specially-trained sales associates and has re-configured the digital imaging department to include a larger product selection and a "try before you buy" ability. Utilizing a new technology that allows the cameras to stay continually on without replacing batteries, consumers can try a wide assortment of cameras from Fuji, HP, Kodak, Nikon, Olympus and Sony without assistance. Online, consumers can choose from over 100 digital cameras and be guided through the process with helpful comparison charts, interactive product tours and helpful tutorials.
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| Media Markets & MoneyTM |
Norman won't have to Waitt for touch of Quass
Well, Norman Waitt will have to wait a little bit - - the merger of his Waitt Media with Mary Quass and her NewRadio Group (NRG) must get FCC approval. The two groups share a common MO - - running combos and clusters in small midwestern markets. The group will be anchored by Waitt's Omaha NE cluster. An LMA is expected to begin New Year's Day. The combined group will have 89 stations. Waitt, who will be chairman of the combined entity, brings 24 Nebraska stations, 15 from Iowa, 14 from Kansas, six from South Dakota and three from Minnesota. President/CEO-to-be Quass's NRG will contribute 20 Wisconsin stations and seven from Illinois. Principal shareholders will be Waitt Media and private equity firm Alta Communications. Waitt's Steve Seline told RBR that as yet, the new merged entity has not decided on a moniker. He said the group will be looking for expansion opportunities in small to middling midwestern markets, but will do so in a disciplined fashion. No pricetag is associated with the stock merger. However, if you look at this as being essentially a merger of NRG into Waitt, we can make a guess. NRG, which was formed largely but not exclusively via acquisitions from Marathon Media, cut different deals totaling about 27.84M dollars. Add a little for inflation, and give Quass credit for building the business, and you could put an RBR estimate of about 30M on this one.
 More bucks for Clear Channel coffers
Clear Channel Communications was back on Wall Street yesterday, raising 250 million bucks in a sale of five-year unsecured notes. The issue was priced to yield 4.579% with a coupon of 4.5%. The sole manager was UBS Investment Bank.
News Corp. to join S&P 500 Dec. 17th
There was never any doubt that News Corporation would have a place in the Standard & Poor's 500 stock index after reincorporating from Australia to the US - - just do the math. The only question was the timing. That's now been answered. S&P says the media giant will be added to the index after the close of trading on Friday, December 17th - - a date chosen because S&P futures and options contracts expire that day. The identity of the company to be booted from the 500 to make room won't be revealed until closer to the date. News Corporation's stock rose on the news, since many observers had thought that that S&P might wait several months to make the index change. When the stock is added to the index, mutual funds based on the S&P 500 and the AMEX-traded SPDRs will have to buy News Corporation shares to rebalance their portfolios.
Where are multiples these days? Still high - - Part 5
Every station owner who's even thinking about selling wants to know where multiples are these days. But brokers tell us that's not usually the key consideration for buyers in today's market. "I don't believe in multiples a whole lot anyway, at least as a pre-determiner of price," broker Brett Miller of MCH Enterprises told us. "I've been doing acquisitions and brokerage in the radio business for 15 years, and a couple of years before that in the cable television business. Multiples have always been after the fact analysis. That's the way we look at it. We know what the rules of thumb are. It's been two and a half times revenues and ten times cash flow - - that's been the after-the-fact analysis. It's a yard stick," he said. | More... |
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2005: Year of Local Muscle
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 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.
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| Washington Beat |
FCC FM auction seems to be losing steam
As of this writing, FCC Auction No. 37 is in Round 39, and the total of all standing bids has actually gone down 239K dollars to 184.595M and change. IN fact, only 275 of the 288 stations up for grabs even have a high bidder at the moment. 13 are listed as FCC-owned. College Creek Broadcasting remains in the lead among all comers, with 41 standing high bids amounting to 34.423M dollars. Bigglesworth Broadcasting has plunked down 24.268M for ten CPs. One of Bigglesworth's is the Pacific Junction IA stick, the top draw at 6.765M. Former #1 Brewster MA is still under the control of GBH Telecommunications, but has slipped to #4, behind Overton NV (Kemp Communications, 6.412M) and Mesquite NV (College Creek, 4.871M).
Singleton AM CPs ripening
Even while the auction of 288 FM CPs rages on, 184 AM station CPs have been cleared, if not for take-off, then at least to taxi in the runway. Licensees which found themselves applying for the CPs uncontested are a Form 301 away from step one toward official FCC approval - - being accepted for filing. The companies involved have from 11/18/04 through 1/18/05 to get their Form 301s filled out and into the hands of the FCC's Media Bureau. 21 of the stations involved are associated with nine different noncommercial licensees, which also must demonstrate their non-profit status. Not all of the CPs are for new stations - - 111 will be under construction for the first time. The other 73 are existing stations which have non-mutually-exclusive proposals for upgrades. As soon as the CPs are listed as being accepted for filing, the general public has 10 days to contest the application via a petition to deny.
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| Programming |
Black Enterprise Business Report
to air series on Damon Dash
The Black Enterprise Business Report will air three nights of excerpts from a recent interview with successful hip-hop entrepreneur Damon Dash. The first segment will air on 1/25, and the remaining segments will be broadcast on 11/26 and 11/29. The Black Enterprise Business Report can be heard daily in New York on flagship WRKS-98.7 FM, on www.blackenterprise.com, and on participating radio affiliates.
 ABC News Radio dishes Turkey Day programming
ABC News Radio will offer three one-hour specials over Thanksgiving weekend (11/24-11/28): "The ABC's of Shopping for Kids: Making the Best Buys for the Holidays," "Holiday Movie Guide 2004" and "Children at Risk: The ABC News/Court TV Safety Challenge." "The ABC's of Shopping for Kids: Making the Best Buys for the Holidays," hosted by ABC News correspondent Richard Davies, will profile the latest toys and trends for this year's holiday season, and how parents can get the best bang for their bucks at holiday time. "Holiday Movie Guide 2004," hosted by ABC News correspondent Chris Cuomo, will have an inside look at movies coming out this holiday season, and take a look back at some of the classic holiday movies from the past. "Children at Risk: The ABC News/Court TV Safety Challenge" will also be hosted by ABC News correspondent Chris Cuomo. This one-hour special will offer a detailed look at the safety aspect of childcare - and what parents and caregivers can do to keep their children safe.
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| Transactions |
KAWL-AM/KTMX-FM York NE from Prairie States Broadcasting Inc. to MWB Broadcasting LLC.
WSKV-FM Stanton KY from Parks Broadcasting to Moore Country 104 LLC.
| More... |
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| Stock Talk |
Mergermania boosts stocks
A surprise 11 billion bucks merger of retailing giants Sears and K-Mart excited Wall Street traders. The Dow Industrials moved up 62 points, or 0.6%, to 10,550.
Radio stocks also got a boost. The Radio Index rose 0.880, or 0.4%, to 229.104. Spanish Broadcasting System gained 1.8% as the day's leader. Westwood One rose 1.5% and Clear Channel moved up 1.3%.
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| Radio Stocks |
Here's how stocks fared on Wednesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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37.83
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-0.15
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Jeff-Pilot
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JP
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49.86
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+0.29
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Beasley
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BBGI
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17.66
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+0.19
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Journal Comm.
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JRN
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17.74
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+0.18
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| Citadel |
CDL |
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15.35 |
-0.03 |
Radio One, Cl. A
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ROIA
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13.66
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-0.08
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Clear Channel
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CCU
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34.55
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+0.45
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Radio One, Cl. D
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ROIAK
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13.66
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-0.06
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Cox Radio
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CXR
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15.89
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+0.14
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Regent
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RGCI
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5.71
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+0.02
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Cumulus
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CMLS
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15.46
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+0.01
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Saga Commun.
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SGA
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18.13
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-0.09
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Disney
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DIS
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26.56
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+0.03
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Salem Comm.
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SALM
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27.00
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-0.18
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Emmis
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EMMS
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19.25
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+0.11
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Sirius Sat. Radio
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SIRI
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4.95
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+0.24
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| Entercom |
ETM
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35.88
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-0.03
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Spanish Bcg.
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SBSA
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10.94
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+0.19
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Entravision
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EVC
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8.35
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+0.05
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Univision
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UVN
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30.37
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-0.06
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Fisher
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FSCI
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48.50
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+0.15
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Viacom, Cl. A
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VIA
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36.70
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+0.18
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Gaylord
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GET
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36.28
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-0.02
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Viacom, Cl. B
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VIAb
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35.84
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+0.14
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Hearst-Argyle
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HTV
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25.80
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-0.13
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Westwood One
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WON
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23.10
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+0.35
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Interep
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IREP
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0.87
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unch
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XM Sat. Radio
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XMSR
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35.48
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-0.65
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International Bcg.
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IBCS
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0.02
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unch
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-
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-
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- |
-
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-
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__UNSUB__ to this email service.
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Bounceback
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 We want to
hear from you.
This is your column, so send your comments to [email protected]
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Calling All Readers
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Can you help?
RBR/TVBR is looking for photos and/or scans of old ratings diaries and reports from the many radio and TV ratings companies which no longer exist - - Hooper, Pulse, Birch, Meditrend, Ram, just to name a few. If you have some of those historic artifacts, we would appreciate emails to [email protected].
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Upped & Tapped
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Entercom names
Indy GSM
Scott Rogers, formerly Local Sales Manager at Emmis' WIBC-AM and Network Indiana, has moved across town to be General Sales Manager of Entercom's newly-acquired WXNT-AM & WZPL-FM Indianapolis.
Lehanski upped at Katz
David Lehanski has been named VP/Associate Director of Creative Solutions with Clear Channel Katz Advantage in New York. He will supervise the development of compelling media and marketing programs and promotions and also oversee Advantage's Creative Solutions activation team in New York.
Goldfein takes the wheel
Adam Goldfein, a 12-year senior management automotive executive, has been named Director, Automotive Sales at Infinity. He will provide specialized training and detailed industry information to Infinity's account executives across the country with initial emphasis on the New York, Detroit and Atlanta markets.
Simpson to Navigauge
Navigauge, which is beta-testing GPS technology for ratings info in Atlanta, announced the appointment of Drew Simpson as the company's SVP/media. He was formerly with Tapscan Canada and Tapscan WorldWide.
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TVBR - TV News
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Murdoch targets summer launch of
biz channel
When Rupert Murdoch decides to do something, he doesn't waste time. It was just two weeks ago that the News Corporation CEO announced plans to launch a full-time business news channel to challenge CNBC (11/5/04 TVBR Daily Epaper #217). Now he's looking at a launch date in the summer of 2005. Asked about the competition, Murdoch told reporters "I think CNBC is a pretty disappointing channel at the moment."
TVBR observation: CNBC was a failure (we're talking about NBC's original product - - Consumer News and Business Channel) because it was too feature-oriented and lacked in hard data and tough opinions. NBC fixed that screw-up by buying its scrappy, low-budget competitor FNN and rebranding the FNN-style programming as CNBC, while tossing out the failed format it had spent so much money researching. It seems to us that CNBC has drifted back in the direction of its original format, perhaps leaving an opening for Murdoch to beat them at their own game.
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October Digital
Solutions Magazine
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Who Will Sit on the Throne?
The election -What is in it
for Broacasters?
One On One
with PHD's Patrick McNew -
The man that over sees spot
for Chrysler Group.
Engineered For Profit
'05 budgets and capital expenditures, our close up look at who's planning to buy what next year.
Read RBR in 2 simple steps:
1.Create a simple account with Zinio and download the Zinio Reader.
2. You can then download the October Issue of RBR
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RBR Radar 2004
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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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.
RBR observation: End result - "Millions of people watched the show. Three wrote letters of complaint." 11/17/04 RBR #225
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. RBR observation: We have heard and seen more guidance from radio companies this year and the phrase 'If wall street doesn't like us we will buy back our stock.' Those who got rich - great. Those have not - Go Private. TV - Next.
11/17/04 RBR #225
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
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."
RBR observation: Still comes down to Want vs Need to sell. Greed or Logwic. 11/15/04 RBR #223
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Account Manager Arbitron Outdoor
Selling and servicing the Arbitron Outdoor products to outdoor media companies. 3-4 years media sales experience, Outdoor industry sales preferred.
General Sales Manager
Los Angeles need with 5 years radio sales management experience. EEO. Reply to: [email protected]
See Radio Careers for more info.
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©2004 Radio Business Report/Television Business Report, Inc. All rights reserved.
Radio Business Report -- 2050 Old Bridge Road, Suite B-01, Lake Ridge, VA 22192 -- Phone: 703-492-8191
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