Volume 20, Issue 23, Your Morning Radio Industry E-Paper tm
Jim Carnegie, Publisher
Monday Morning February 3rd 2003
RBR Office 703.719.9500

Radio News ®

Judge throws out SBS's antitrust lawsuit
against Clear Channel & HBC
A federal judge in Miami has tossed out the $1.5B antitrust lawsuit that Spanish Broadcasting System (O:SBSA) had filed last July against Hispanic Broadcasting Corp. (N:HSP) and its 26% non-voting shareholder, Clear Channel Communications (N:CCU). After hearing oral arguments on 1/9, Judge Patricia Seitz ruled that SBS had not presented any allegation which, even if true, would constitute a violation of law by either HBC or Clear Channel.
| Full Story Click Here | RBR Observation |

SBS vs. CCU & HBC: Follow the story
Here are links to our past reports on this long-developing story between the giants of US Spanish radio - - a blood feud that's not going to end with Friday's (1/31) court ruling. | Full Story Click Here |

On the mend - - radio revenues jump 6% in 2002
According to the Radio Advertising Bureau, A 9% gain in total ad dollars concluded a strong Q4 performance for the radio industry which brought the full-year total gain to 6%. The pick-up in business made up for a sluggish beginning of the year, which in particular featured a major speed bump during the month of February, when the Winter Olympics effectively wiped out on of radio's strongest categories - - network television.
| Full Story Click Here |

Shuttle disaster shifts nets into high gear
Routine Saturday morning broadcasting was interrupted as radio networks scrambled to provide affiliates with live coverage of a disaster - - the explosion of the space shuttle "Columbia" in the skies above East Texas. For local stations in Dallas-Ft. Worth and a half dozen nearby counties, the story was local - - with listeners being urged to contact local law enforcement authorities if they found pieces of the wreckage and warning them not to touch anything. | Full Story Click Here |

S&P cuts XM's credit ratings
Standard & Poor's has skewered XM Satellite Radio (O:XMSR), following the company's recently-completed $475M refinancing. As far as S&P is concerned, the refinancing was really a "selective default" - - forcing bondholders to wait additional years for the interest payments they're due. | Full Story Click Here |

Sirius launches debt exchange tender - Margolese Out
Sirius Satellite Radio (O:SIRI) has launched a tender offer to exchange its outstanding bonds as part of the $1.4B recapitalization effort it announced last October (10/18/02 RBR Daily Epaper). Under the deal, holders of Sirius' bonds and other long-term debt are being asked to exchange their debt securities for stock. Creditors also removed David Margolese the Chairman and former CEO. Fellow board member Joseph Vittoria former Avis CEO resigned. Creditors will name their replacements. | Full Story Click Here |

Opie & Anthony coming to Sirius?
This could be a longshot, but one RBR editor was the recipient of a recent Harris online poll. From what he read, we wonder if Opie & Anthony may be resurfacing, possibly on Sirius Satellite Radio (O:SIRI). | Full Story Click Here |

RAB2003 good kick off to new year
As RBR left New Orleans to return to our homes, the RAB staff gave us an estimate of nearly 1,700 attendees at RAB2003. What was even more encouraging was the real quality of the sessions overseen by Peter Smyth of Greater Media. No same old same old, but great panels and how-to sessions. The true indicators were the size of crowds that attended and secondly hardly anyone got up and left. | Full Story Click Here |

What will a war mean?
Gary Fries
As America inches closer to a war with Iraq, RAB President and CEO Gary Fries said some interesting things to saw in New Orleans about what he believes we might be in for. First off, over the last two weeks the industry has already seen a little slow down. And going forward, he warned, the radio business might not be able to rely on history.
| Full Story Click Here

Adbiz ©

How many $s will be lost to Hispanic weighting delay?
Now that Arbitron (N:ARB) has said it will take three years to re-engineer its software systems to apply weighting to diaries on a language-preference basis (1/30 RBR Daily Epaper), RBR asked Spanish broadcasters how much more money could be lost in ad buys. | Full Story Click Here |

ANA holding Marketing Innovation Workshop
ANA is holding a Marketing Innovation Workshop in Chicago 3/19. This proven, practical, peer-to-peer driven presentation grew out of a successful recently held ANA Advertising Committee Meeting held in New York. | Full Story Click Here |

Church group launches anti-war media campaign
Reuters reports a bishop from President George W. Bush's own Methodist church voiced opposition to a U.S.-led war on Iraq in television ads airing on 1/31, part of a church coalition's publicity campaign urging peace. Christian religious groups are divided on the Bush administration's stance that Iraq must disarm or face a U.S.-led war.
| Full Story Click Here |

Anti-smoking group can be sued for ads
A Delaware judge ruled Friday (1/31) that Lorillard Tobacco Co., which is owned by Loews Corp., can sue an anti-tobacco group. Lorillard contends that it has been wrongfully defamed by the anti-smoking "The Truth" advertisements run by the American Legacy foundation. | Full Story Click Here |

Media, Markets & Money tm

WLEZ sale filed; Bomar total is $4.55M
Frank Bove's Bomar Broadcasting has now filed the other half of its station sell-off with the FCC. WLEZ-FM Terre Haute is selling for $2,092,000, so the total for Bomar's three stations is $4,550,775 - - a bit short of its cratered deal to sell all three to Joel Hartstone (12/13/02 RBR Daily Epaper) for $4.65M - - but only $99,225 from the mark.
Full Story Click Here | RBR Observation |

Max meets minimum to make group owner status
To be considered a proper radio group, you need more than just multiple stations - - they must also be in clearly different radio markets. Max Media, a company which became sole owners of a group of stations in and around North Carolina's Outer Banks area (known as Elizabeth City-Nags Head to Arbitron) (10/28/02 RBR Daily Epaper) is taking step #2 and becoming a full-fledged, beyond-any-dispute radio group owner.
| Full Story Click Here | RBR Observation |

Mapleton continues coasting in coastal California
Michael Menery's Mapleton Communications just announced a deal to pick up a pair of AM stations along the California coast area about halfway between Los Angeles and San Francisco. The other deal, for KUHL-AM and KTME-AM (1/27 RBR Daily Epaper) focused on Arbitron's Santa Maria-Lompoc market. This deal, for KGLW-AM, focuses on the overlapping San Luis Obispo market to the north. KGLW is coming from Rocglo Communications, owned by Gloria and Edward Rivera. The price will be $370K. All told, Mapleton will be investing $1.67M in the market - - it's paying $1.3M for the other stations. Broker: Clifton Gardiner & Co. LLC (seller) | RBR Observation |

Washington Beat

McCain and Feingold target broadcasting with legislation
Senator Russell Feingold (D-WI) and Senator John McCain (R-AZ) are both putting potential legislation before the Senate. Feingold's "Competition in Radio and Concert Industries Act" is aimed pretty much directly at Clear Channel, and specifically at alleged abuses of the company's vertical integration of the radio and concert industries (1/29 RBR Daily Epaper), while McCain is putting tax credits back on the Hill legislative plate with reintroduction of a bill he proposed last fall (10/16/02 RBR Daily Epaper).
| Full Story Click Here |

Radio pirate rebuffed by appeals court
A federal appeals court in Washington, DC has ruled against former pirate radio operator Greg Ruggiero and ruled that his lifetime ban from obtaining a low-power FM license is constitutional. The eight-member court voted 7-1 to reverse a three-member panel which had ruled a year ago (2/11/02 RBR.com) in Ruggiero's favor. | Full Story Click Here | RBR Observation |

Two more pirates walk the plank
The FCC has determined that two alleged pirates that were apparently liable for punishment on charges of FM radio piracy are, in fact, liable, and has hit each with a $10K assessment. Josue Alusma of Naples FL was nailed for unlicensed broadcast on 100.5 mHz. Ian R. Walker of Jacksonville FL was nailed for unlicensed broadcast on 95.5 mHz. In neither case did the FCC specify from where the broadcasts originated. Also in neither case did the accused dispute the charges.

Florida citizen renews attack on Clear Channel
Douglas Vanderlaan has sent a third complaint to the FCC targeted at mega radio station group owner Clear Channel (N:CCU). In the new filing, Vanderlaan repeats earlier charges that CCU is promoting the use of illegal drugs, particularly marijuana, to children, a charge he made last summer. A second complaint concerned CCU's alleged failure to properly maintain its public inspection file. Vanderlaan supplies new evidence in his new filing, which has nine exhibits spread over 60 pages attached.
| Full Story Click Here | RBR Observation |

Providential prediction:
FCC's red flag flies again
As we predicted, a deal in which Citadel Communications is trying to buy some stations from AAA Entertainment, two of which are in the Providence market, has drawn a red flag from the FCC
(1/10 RBR Daily Epaper). The stations are WWKX-FM out of Woonsocket RI and WAKX-FM out of Narragansett Pier.
| RBR Observation |


Finding the Radio Ad Lab
RBR readers were interested in our story Friday (1/31 RBR Daily Epaper) about the first White Paper from the Radio Ad Effectiveness Lab. However, they also found that our story included the wrong Internet address for the lab's site. The correct address is www.radioadlab.org. Meanwhile, the site for WNYC-AM New York's weekly program "Radio Lab" apparently got some additional web traffic.

NTR Tip of the day
We have received several calls from frustrated radio salespeople. The reason? HR Directors are not buying 13-week packages. Here's the reason: RECRUITMENT IS NOT RETAIL! HR Directors don't have to use Radio 13-week packages. In fact they usually get the results they're looking for in two weeks. You want to sell 13-weeks? Break it up into smaller increments and use it during times of the year that are traditionally used for your client's recruitment programs. Source: John Mitton, RAS Recruitment Sales Training,
[email protected], (713)867-3290

More News Headlines

* ESPN Radio providing NBA All-Star Weekend coverage
* AURN, Skylight, add AP Radio audio
* Alex Bennett returns to KNEW-AM
* Delphi confirms SKYFi distribution plans
* USRN announces "Country Giants" lineup
* Music Choice, others settle with RIAA, AFTRA, AFM
* Russian Press ministry: US needs to allow Russian radio
* Boortz to return to Donahue show
* UCLA Internet Report: Internet use eating away at TV viewership
* Verizon requests stay on DMCA ruling

Radio Stocks

Stocks up slightly in ho-hum session
An up day is an up day, but it was hard to find anything to get excited about on Wall Street Friday. Stock prices pushed up a bit as a survey of Midwest purchasing managers found increased demand for manufactured goods.

The Dow Industrials rose 109 points, or 1.4%, to 8,054 - - but still ended the week down nearly 1%.

The Radio Index rose 3.986, or 1.7%, to end at 229.550.

Emmis was the day's big gainer, up 5.3%. Arbitron rose 4.6% and clear Channel 4.1%

The only index stock to lose was Beasley, but it lost big on no apparent news. It plunged 7.2% for the day.

Here's how stocks fared on Friday

Company Symbol Close Change Company Symbol Close Change












NBG Radio Nets




Big City YFM $1.15


Radio One, Cl. A




Clear Channel




Radio One, Cl. D




Cox Radio




Radio Unica
















Saga Commun.








Salem Comm.








Sirius Sat. Radio








Small Town








Spanish Bcg.








Viacom, Cl. A








Viacom, Cl. B




Hispanic Bcg.




Westwood One








XM Sat. Radio




RBR Celebrates 20 Years

RBR Take a Bow

Jim and all who have contributed to RBR, your publication stands tall among your peers.

Congratulations…..and keep delivering those “RBR Observations.”

From your friends and readers at Premiere Radio Networks

Publisher's Perspective

Everyone has been certified by RAB-Special Forces for hand-to-hand combat

We; Cathy Carnegie, Ken Lee, and myself Jim Carnegie, felt it when we rode the escalator up to the third floor and saw faces, the volume of talk was high and red coats running everywhere at a fast pace this was going to be a high energy conference. What ever I had in my minds eye from last year’s RAB getting de-fleaed at Disney World was 180 degrees improvement.

Enthusiasm and seasoned fighters gathered in New Orleans and if you were not there, you missed one hell of a conference. In twenty years publishing RBR this one will stand out in my mind for a number of years. But with seasoned veterans you heard experiences of their battles of victory and defeat. This translates into people that are now confronting the inevitable of how business must be conducted to win and gain a larger portion of the advertising pie. Not just a piece of it. I have ten points of interest that stand out in my mind what was discussed and what these radio veterans are doing about it. In other words they are not taking a back seat from anyone.

| Click Here for full perspective |

RBR Bounceback

We want to hear from you.
Speak out to your colleagues in radio on any subject affecting this business.

This is your column, so send your comments to [email protected]

This reader read Lowry Mays' defense of consolidation on Capitol Hill (1/31 RBR Daily Epaper), but he's not buying it.

Hi Jim;
The word "consolidation" has been the hottest water cooler topic in most radio stations over the past several years. The basic solution is no solution and idea of it's "just the way it is," or "it's a new world - - get use to it" have resounded from top to bottom, but is it right? It's basically big business against an arts & science medium.
| Full Story Click Here |

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Upped & Tapped
Tom Rivers
named WUSN-FM Chicago OM
Tom Rivers, current VP/GM at WQYK-FM and WYUU-FM Tampa, will reportedly become WUSN-FM Chicago's OM in Marc. He takes over for Eric Logan, who was promoted to Infinity VP/Programming last November. Rivers will also run Infinity's Country formats.

Winston named Infinity LA SVP/Sales
Robert Winston, Metro Networks Western Regional VP/GM, has been upped (2/10) to SVP/Sales at Infinity's LA cluster of seven stations. He will report to SVP/Market Manager Tim Pohlman.

$7,600,000 KBIE-FM Phoenix (Fountain Hills AZ), KYBN-FM CP Bend OR and KXLJ-FM CP Grand Island NE from American Family Association (Donald E. Wildmon et al) to Educational Media Foundation (Richard Jenkins et al). Buyer will give seller $7.5M plus WKVW-FM Waynesboro MS. $375K escrow, additional $1.125M cash at closing, $6M note. RBR is estimating the value of WKVW-FM at $100K. KBIE is on 89.1 mHz; KYBN-FM CP is for 90.5 mHz; KXLJ-FM CP is for 88.3 mHz.

$475,000 WHHK-FM & WGEN-AM Gelva/Geneseo IL from Hoscheidt Broadcasting Inc. (John Hoscheidt) to Virden Broadcasting Corp. (Randal J. Miller). $10K escrow, balance in cash at closing. Duopoly between WHHK and WKGI-AM & WJRE-FM Kewanee IL. WGEN-AM overlaps WJRE-FM only and does not overlap WHHK-FM.

$100,000 WKVW-FM Waynesboro MS from Educational Media Foundation (Richard Jenkins et al) to American Family Association (Donald E. Wildmon et al). Swap for KBIE-FM Phoenix (Fountain Hills AZ), KYBN-FM CP Bend OR and KXLJ-FM CP Grand Island NE. Buyer will also receive $7.5M. $375K escrow, additional $1.125M cash at closing, $6M note. RBR is estimating the value of WKVW-FM at $100K.

RBR Radar 2003
Keeping the eyes on issues on a need to know basis.

On Capitol Hill, Lowry Mays says radio is not McDonald’s 1/31 RBR #22

Henley accuses Clear Channel of pay-for-play 1/31 RBR #22

Feingold and McCain push new legislation 1/31 RBR #22

Top researcher weighs in on Hispanic weighting 1/31 RBR #22

Arbitron at war with Spanish owners; weighting three years away 1/30/03 RBR #21

Hispanic station owners fire back at Arbitron 1/30/03 RBR #21

Agencies impatient for Hispanic weighting 1/30/03 RBR #21

Mega spins a station in Philadelphia 1/30/03 RBR #21

Mega also sells in DC 1/30/03 RBR #21

Feingold bill back on the docket 1/29/03 RBR #20

Bidding in final stretch for Fisher and we are down to 2 players 1/29/03 RBR #20

Johnson and Johnson do a deal 1/29/03 RBR #20

AOL/TW board wants Case gone altogether 1/29/03 RBR #20

Hispanics going online in record numbers 1/29/03 TVBR #20

Infinity Chairman/CEO John Sykes looking for women 1/28/ RBR #18

Biondi predicts Karmazin will leave 1/28/ RBR #18

Industry Jobs

General Sales Manager
Naples, Fl. News/Talk AM looking for GSM. Can you build and lead team selling, O'Reilly and Hannity? Will consider AE with proven record ready to move up to management.
E-mail resume to [email protected].
Equal Opportunity Employer.

More jobs..

Publisher, Jim Carnegie
[email protected]
VP/GM, Assoc. Publisher, Ken Lee
[email protected]
Admin. Assistant, April Olson
[email protected]

Executive Editor, Jack Messmer
JMessme[email protected]
Managing Editor, Dave Seyler
[email protected]
Senior Editor, Carl Marcucci
[email protected]

Account Executive, June Barnes
[email protected]

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