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Welcome to RBR's Daily Epaper
Volume 25, Issue 229, Jim Carnegie, Editor & Publisher
Friday Morning November 21st, 2008
RADIO NEWS ®
www.google.com
A past Arbitron competitor's take on the new competitor
Tom Birch knows what it's like to compete with Arbitron. He founded Birch Radio and ran the radio ratings company until 1990, two years before it was shut down by then-owner VNU, a company now known as The Nielsen Company. Birch tells RBR/TVBR that Nielsen will be a tough competitor in the US radio ratings business, but he also doesn't think Arbitron will be easy to knock off as the dominant player.

RBR observation: Read all of what Birch has to say because RBR agrees with most of his analysis, due to his experience on the ratings side of the radio business. Nielsen has the name brand and technology to compete against Arbitron if they desire to do so and see a full monetary reward. And you know this is not about trying to be second best.

Black Friday study offers sliver of hope

Consumer Reports says that despite forecasts of a bleak holiday shopping season, turnout at the nation's retail outlets on Black Friday. In fact, 26% of consumers are planning to brave the crowds on 11/29/08, compared to only 21% in 2007. Only 3% of all consumers have completed their shopping, and only 38% have even started - that compares to 43% early starters in 2007. If you're looking to reach Black Friday shoppers, Consumer Reports says the 18-34 demo will be the one overpopulating the malls.

RBR observation: If retailers can at get people in the door, they at least have a chance. And broadcasters can get them in the door - make sure they remember that.
www.talkradionetworks.com

Mixed month for Journal Communications
Combined October revenues for the publishing and broadcast operations of Journal Communications were down 2.8%. Publishing was down 10.6%. Journal Broadcast Group saw revenues gain 6.3%, with radio down 2% and TV up 11%, with a big boost from political. But political will be done with once the November numbers are released and year-to-date tallies are all in negative territory.

SoCal residents protest KRLA towers
The Pasadena Star-News reports Covina, CA residents are upset over Salem's KRLA-AM plans to install five 285-foot radio towers in their hillside community. The towers would be built on a 73-acre plot owned by Salem. Residents recently launched five weather balloons about 285 feet in the sky to give neighbors a first-hand look at the space the towers would take up.

Congress finds a drive through for auto firms
Although the Republican contingent in the Senate figures to shrink, it is still sized at its 110th Congress level, and Democrats have been unable to slip a significant chunk of change out of the $700B general financial bailout fund to aid automobile companies. However, Minority Leader Mitch McConnell (R-KY) found a compromise. Under its terms, $25B already approved for the development of fuel-efficient vehicles will be diverted to get past the current crisis. Certain elements favored by Democrats will be worked into the bill, which will likely be considered in December.

RBR observation: Suggested amendment: Each automaker will allocate a significant portion of its emergency funding to broadcast advertisements for the purpose of enhancing product sales and cash flow.

espnradio.com

ONLY ON RBR.COM
Ideas Working Now
Indecency and The Supreme Court
By Gregg Skall, Womble Carlyle Sandridge & Rice, PLLC
We recently talked about what we can say on the air. You probably think the FCC has not been very helpful in guiding broadcasters. Well, that seems to be the view of the courts, too, as the cases establishing those standards will now get further review. The Supreme Court has accepted the appeal of the famous "fleeting expletive and spontaneous utterances" cases...
 

AD BUSINESS REPORT

Next Project Reinvention meeting set
AAAAs EVP Mike Donahue tells RBR/TVBR the Project Reinvention Committee will be meeting in early January or before to decide what to do about a number of industry issues the Committee has been addressing, on a united front. The consensus of those issues will be presented at a session in March at the first day of the AAAAs in New Orleans. He says they will be specifically be presenting agreements on what needs to be changed; what needs to be kept. "And these agreements will have been vetted with the sales side, not just the buyer side-this is not unilateral." Read more by clicking on the headline....

What's the future with Nielsen in radio?
We recently spoke with a buyer who wanted to remain anonymous, but had a lot to say about Nielsen’s entrée into radio this week for 50 markets. Said the buyer: "I believe that Nielsen is throwing up a balloon to see if the entire radio industry wants them to get in to the radio ratings game. They are all pretty mad at Arbitron. This is just a portent of things to come. If Nielsen is in the radio business clients and agencies would be able to figure out what media works for them, combined, and they would have a potential single source. Nielsen could figure out quickly that they will have to use electronic measurement for radio, maybe based off of their LPM system with TV." We asked Nielsen: Is there a bigger picture here? No word back yet. But MRC Chairman George Ivie responded…..click the headline to read his comments on the issue.

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MEDIA MARKETS & MONEY

University will linger in Lingle
An unusually high percentage of recent station transactions has involved CPs, and here is yet another DIY project that is about to change hands. It is also not unusual in that it involves the non-profit sector. The FM CP in question is licensed to Lingle WY, in the Southeast corner of the state on the Platte River and not far from the Nebraska border. The station is going from Calvary Iowa City to the University of Wyoming form $32K cash. The buyer will seek a main studio waiver. When constructed, it'll be a Class C3 on 90.5 MHz with 18.5 kw @ 249'.

 

TRANSACTIONS

$175K FM CP Ginger TX from Iglesia Cristiana Ebenzer (Jose I. Pineda) to Hispanic Family Christian Network (Antonio Cesar Guel). Cash. CP is for Class A on 91.5 MHz with 200 w @ 180'. [FCC file date 10/29/08]

$105,998.73 WHZN-FM & WWDL-FM Indianapolis IN (New Whiteland, Plainfield IN) from Horizon Christian (Mike MacIntosh) to Horizon Christian Fellowship of Indianapolis (William Goodrich et al). Cash, prepaid. [FCC file date 10/29/08]

www.wcsr.com

WASHINGTON BUSINESS REPORT
Waxman defeats Dingell
The seniority system in the House of Representatives took a hit as Henry Waxman (D-CA), pictured, claimed the Chair of the Energy and Commerce Committee at the expense of John Dingell (D-MI). The in-caucus vote was 137-122. The effect on broadcasters is likely minimal. The vote hinged on environmental and energy. Both can be tough on business interests in the communications arena. One thing that will not change much is the traffic running through the committee. Both are not afraid to fill up the schedule of any panel they are in charge of.

RBR observation: Waxman is the more liberal of the two, and has joined in from time to time with one of the more rabid House members when it comes to media issues, Maurice Hinchey (D-NY). On the other hand, Waxman was one of the very few to oppose the $325K fines that go along with the Broadcast Decency Enforcement Act.
 

RATINGS & RESEARCH

Eastlan signs long-term deals
Galaxy Communications and GAP West have reached long-term agreements with Eastlan Ratings to provide audience measurement research to their companies. "Stop laying off your hard-working radio staff and hire Eastlan to be your ratings provider," said Galaxy Communications CEO Ed Levine, who has been a strong promoter of the service since he quit the Arbitron Radio Advisory Board in 2006 and brought Eastlan into the Syracuse market.

Canada gets first PPM data
Yesterday marked the delivery of the first pre-currency Portable People Meter (PPM) data to broadcasters in Montreal. The first eight weeks were delivered by BBM Canada, which licenses PPM from Arbitron, to prepare broadcasters for December 10th, when PPM becomes ratings currency, including 13 weeks of data back to September 1st. The data is being produced with both French and English speaking PPM panels. BBM, the member-owned ratings consortium, plans to also deploy PPM next year in Toronto, Vancouver, Calgary and Edmonton.

 

PROGRAMMING BUSINESS REPORT

ABC Radio Networks launches Curtis Sliwa LIVE
ABC Radio Networks announced that Curtis Sliwa will hit the airwaves on Dec. 1 with Curtis Sliwa LIVE - a three-hour program featuring an interactive discussion of the top news stories of the day. Sliwa, who founded The Guardian Angels community safety organization, has been broadcasting on 77 WABC in New York since 1990 and has most recently delivered his message of empowerment and activism to weekday early-morning audiences in the New York/New Jersey market. The new syndicated program will air Monday-Friday from 10 p.m. - 1 a.m. ET and several affiliates including WTKK in Boston, KABC in Los Angeles and WMAL in Washington, DC have already signed on.

www.abcradionetworks.com

INTERNET BUSINESS REPORT

Isobar and Carat honored by Mobile Marketing Association
Aegis Media North America announced that its units Isobar and Carat have received the Award for Overall Excellence by the Mobile Marketing Association for its work on the adidas Brotherhood campaign. Isobar and Carat partnered to develop this award-winning mobile campaign, designed to build the adidas brand and drive traffic to adidasbasketball.com. The agencies worked with adidas to record a series of personalized text messages and phone calls from NBA stars. The campaign included print, outdoor and TV.

Cutting edge kids heading online
A new report from MultiMedia Mentor (MMM)/ Knowledge Networks says that 11% of the 18-34 demo is now watching television content online at least once a week; they consume 16% more media than the general population; and their internet use is just about equivalent to time spent with television, with each getting about three and a half hours of use daily. Further, they are more likely to own a video game system and iPod/MP3 device; they're more likely to go to a movie theater; and they're less likely to eat fast food.

RBR observation:
A web presence is so important to the future of all broadcast companies. Content is king, but you have to be able to deliver it where the kids are if you wish to have a future.

Interactive ad revenues in
Q3 '08 at nearly $5.9 billion

The Interactive Advertising Bureau and PricewaterhouseCoopers announced that Internet ad revenues reached almost $5.9 billion for Q3, representing an 11% increase over the same period in 2007. The Q3 2008 figures, published in the IAB Internet Advertising Revenue Report, are 2% higher than the Q2 2008 results.

Advertise with RBR/TVBR/MBR

WALL STREET BUSINESS REPORT
New York Times Co. slashes dividend 74%
Shareholders of the New York Times Company are now going to be paid a quarterly dividend of six cents per share, down sharply from the previous 23 cents. "This was a difficult but necessary decision that will provide us with greater financial flexibility in these uncertain economic times. Most industries are feeling the need to conserve cash and ours is as well, particularly given the secular challenges we face," said Chairman Arthur Sulzberger Jr.
 

RADIO STOCKS
Another day, another year backward
On Wednesday major stock indices fell to levels not seen since 2003. On Thursday they retreated back to 2002 levels. The day's sell-off was promoted by a jump in jobless claims and indications that no bailout for the auto industry is coming soon. The Dow Industrials plunged 445 points, or 5.3%, to 7,552.

Radio stocks had another bad day. The RBR Radio Index dropped 1.433, or 6.6%, to another record low of 20.236. Salem fell 29.6%, Cumulus 28.3%, SBS 22.7%, Emmis 15.2% and Beasley 12.4%. The biggest move, however, was to the up side, with Radio One gaining 30%.

Here's how stocks fared on Thursday

Company
Symbol
Close
Chng
Company
Symbol
Close
Chng

Arbitron*

ARB

15.06

-1.32

Fisher

FSCI

16.86

-2.08

Beasley*

BBGI

1.70

-0.24

Google

GOOG

259.56

-20.62

CBS CI. B
CBS

4.51

-0.88

Hearst-Argyle

HTV

7.96

-1.64

CBS CI. A
CBSa

4.58

-1.00

Journal Comm.

JRN

1.51

-0.26

Citadel*
CDL
0.21
0.00

Lincoln Natl.

LNC

5.07

-2.24

CC Media

CCMO

2.50

-0.50

Radio One, Cl. A

ROIA

0.46

+0.08

Cox Radio*

CXR

4.25

+0.05

Radio One, Cl. D*

ROIAK

0.26

+0.06

Cumulus*

CMLS

0.33

-0.13

Regent*

RGCI

0.13

0.00

Debut Bcg.

DBTB

0.27

0.00

Saga Commun.*

SGA

2.67

-0.03

Disney

DIS

18.73

-1.21

Salem Comm.*

SALM

0.62

-0.26

Emmis*

EMMS

0.28

-0.05

Sirius XM

SIRI

0.14

-0.02

Entercom*

ETM

0.75

0.00

Spanish Bcg.*

SBSA

0.08

-0.02

Entravision

EVC

0.57

+0.02

Westwood One*

WON

0.08

0.00

*Component of the RBR Radio Index
 
Bouncebacks

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Below the Fold

Only on RBR.com
Indecency and

The Supreme Court

Media Business Report
What's the future

With Nielsen in radio?
Nielsen is throwing a balloon

Internet Business Report
Interactive ad revenues

In Q3 '08 at nearly $5.9 billion

Wall Street Business Report
New York Times Co.

Slashes dividend 74%


www.patcomm.com

Media Moves

J.R. Ammons returning
as Star 94's PD

Lincoln Financial Media says J.R. Ammons has accepted the post of Program Director at Atlanta CHR WSTR-FM (Star 94). He succeeds Dan Bowen, who left the company in August. Ammons returns to Star 94 after serving in various positions as its Music Director, Assistant Program Director and Promotions Director from 1995-2006. He left Atlanta to program KMXV-FM, Kansas City and was later named Program Director at WAPE-FM, Jacksonville.

Still rockin' in Nashville
Troy Hanson has inked a multi-year deal to remain with the Cromwell Group in Nashville. Troy Hanson, PD of Active Rock outlet WBUZ "The Buzz" was promoted to Operations Manager in September concurrent with the launch of WPRT "The Party" and charged with programming responsibilities for the pop CHR format resurrecting the former party moniker.


www.eastlanratings.com


More News Headlines

NBC News launches "What's your iCue?
NBC News announced the launch of "What's Your iCue?," a social media application for Facebook. Built incorporating the archives of NBC News and developed by NBC Learn, the educational arm of NBC News that produces www.icue.com, "What's Your iCue?" is a video trivia game that allows players to test their knowledge on a wide range of topics.


FOX News Radio

Media Links
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Radars
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Wall Street dumps Arbitron's stock
Stock traders beat down Arbitron's stock price by more than 24% on Wednesday, following downgrades by two analysts. It had fallen only 10% the day of the Nielsen announcement.
11/20/08 RBR #227

Arbitron vs. Nielsen
on recruiting

Arbitron has resisted calls to expand its address-based recruitment.. Consultant Randy Kabrich, long an Arbitron critic, contends that Nielsen will have a better sample in 50 small radio markets than Arbitron has in any of its PPM markets, save Houston.
11/20/08 RBR #227

Clear Channel still pushing for bigger local cap
The HD issue should have been dealt with when the monopoly was granted. Ed Markey bill that would require HD capability on satellite receivers, but only when they already have analog AM/FM tuners. We suspect that would lead to a lot of 100% satellite/0% terrestrial receivers. It's a loophole we think needs to be fixed.
11/20/08 RBR #227

Reed Elsevier publishing sale in doubt
May be near an end - and the end could be no sale.

RBR observation: The print trade business is tough and getting tougher. Just ask our publisher, Jim Carnegie. He took the leap and made RBR/TVBR all electronic just about a year ago. It's a difficult transition, but it's where print publications have to go to survive. (And not all will.)
11/20/08 RBR #227

Nielsen radio ratings service begins test next month
First sweep of all 50 markets won't come until the spring of 09, but The Nielsen Company is jumping right into the US radio ratings business with a test next month in one of those markets.

RBR observation: Neither we nor anyone else thinks Nielsen will be content with a service for 50 smaller markets. This is the starting point of a head-to-head competition with Arbitron. In our view, that's good for radio - more choice.
11/19/08 RBR #226

Arbitron vows to fight Nielsen head-to-head
Despite the loss of nearly all revenue from the 50 markets where Nielsen plans to launch Arbitron says it will continue to measure all 50 of those markets and defend its turf.

RBR observation: How many years Arbitron will be willing to keep generating ratings in markets where it is getting little or no revenue. A long and bitter fight has been launched in the radio ratings business.
11/19/08 RBR #226


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