Volume 20, Issue 230, Jim Carnegie, Publisher
Monday Morning November 24th, 2003

Radio News ®

The Bold Three,
Shaw, Flood & Gray,
go back to 125 West 55th Street.

It's long been a standard practice in the rep business to buy out client contracts - - when a group jumps reps or a group buys a new station not with their usual rep - - but now it appears that there may be a new twist coming - - buying out rep company executive contracts. No one will officially confirm it, but numerous RBR sources say that the three Katz Radio Group executives who led the mass defection to Interep - - Steve Shaw, Tucker Flood, Mark Gray - - have been seen back at the Katz offices at 125 West 55th Street since last Wednesday (11/19) and want to stay there, even though they have contracts with Interep. RBR Observation: If there is any redeeming factor from all of this cab fare back and forth, plus hotel food, is the status of the everyday sales person. | Full Story Click Here | RBR Observation |

I'm on the Mexican - - woe-ohh - - radio
The DOJ is looking into the Clear Channel radio station cluster in the San Diego market. In a nation where the legal single-market limit on stations is eight, this cluster indeed appears to be quite bloated. Clear Channel's own website lists no less than 15 stations. Clear Channel says it will do what it must to stay within the law.
RBR observation: This investigation may be premature.
| Full Story Click Here
| RBR Observation |

Magnum preparing political bid
The FCC rule change that killed his deal to sell six of his radio stations to Mid-West Family Radio also derailed Dave Magnum's plans to run against Sen. Russ Feingold (D-WI) in 2004. But Magnum, pictured with his two sons, tells RBR he still has political plans and is getting Magnum Radio in shape to allow him to run for office. RBR observation: Well, Arnold pulled it off.
| Full Story Click Here
| RBR Observation |




One more voice says things are looking up
The Conference Board has cranked out another set of numbers, and it is saying that the economic worm seems to have turned. It's Composite Index of Leading Economic Indicators rose 0.4% in October after experiencing a flat September.
| Full Story Click Here
|

Filling the filing requirement: Time is on our side
The FCC has been doing maintenance on, and upgrading, its Consolidated Database System (CDBS). As such, it has not always been possible to get through to it - - at various times during the past several weeks it has been whipped into outageville.
| Full Story Click Here
|

Broadcasters among big givers
BusinessWeek is out with its second annual list of the nation's top contributors to charity - - and the list of the giving 50 includes a few names from broadcasting.
| Full Story Click Here
|


Adbiz ©

Mandel, Hamilton, Grubbs speak out on G&J revelation
While buyers have been preaching as of late that radio needs to get its accountability act in order, it seems the magazine industry has now sunk to the lowest face in the totem pole in that regard. Gruner & Jahr Publishing is under fire from buyers and advertisers following its courtroom battle with Rosie O'Donnell, where testimony about alleged misstated circulation numbers has raised a bunch of red flags.
| Full Story Click Here
|

AOL puts interactive unit in review
AOL has launched a review for its $55M interactive creative and media duties. 15 requests for proposals were sent to East Coast shops that have interactive creative or media capabilities or a combination of both. Doner Direct, Detroit, which has handled AOL's online media buying and planning for less than a year, has declined to participate. AtmosphereBBDO, the online creative incumbent, is defending. The review is being handled by John Lane, AOL VP/Online Advertising.



Old Navy launches Hispanic effort with Erik Estrada
Old Navy is launching its first Spanish-language TV campaign this holiday season. The ads are a part of the brand's growth strategy to speak directly to its key customer segments. The "Fiesta" campaign, featuring Erik Estrada and Walter Mercado, officially introduces Hispanics to the brand and touts affordable and fashionable holiday gifts for the entire family. The two 30-second spots debuted on 11/23 and air until 12/24 on Telemundo, Univision, Galavision and Telefutura. In "Fiesta Hooded," Erik Estrada opens the door to a colorful world featuring Old Navy performance fleece graphic hooded sweatshirts for the entire family. At the unbeatable prices, Erik exclaims, "Not getting it would be a crime!" In "Fiesta Half-Zip," the adored astrologer and psychic Walter Mercado takes viewers on a magical journey featuring Old Navy half-zip pullovers for the entire family. Walter predicts, "I see it in your future."


Media, Markets & Money tm

Sea-Comm makes it a six-pack lite in Wilmington
Sea-Comm Inc. has a $2.3M deal to buy WWTB-FM Topsail Beach NC. That's in the Wilmington market. And the deal is right on the fault line of the potential new way of defining radio markets. It'll only overlap two other FMs, which is perfectly legal. But Sea-Comm will have six FMs in the market, which might not be.
RBR observation: Def jam? A gamble of a deal.
| Full Story Click Here
| RBR Observation |


Career Ads

News Director
WCBI-TV, CBS affiliate, seeks experienced News Director to take the helm of an award winning news department. Applicant should have the ability to manage daily operations of newsroom with four hours of newscasts. Candidate must be able to motivate and teach. Mail resume to: News Director Search WCBI-TV P.O. Box 271 Columbus, Ms 39703 WCBI, an Equal Opportunity Employer

Note: Go to TV Careers for other opportunities. KOMO-TV Seattle needs DOS and Nexstar Broadcasting is looking for a big gun.


Need to find that career minded radio or television executive, use our Career Ad section read by 15,000 media executives every morning. To place your marketing position click on submit jobs and follow the easy instructions.

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Washington Beat

Hinchey vows to carry media fight forward
"Assuming this measure stays in the omnibus, it's a solid victory for opponents of the FCC's rule changes," said Rep. Maurice Hinchey (D-NY), commenting on the 35% television audience cap provision included in pending legislation. "But it's only the beginning of the fight," he continued. "If it passes into law it will be a one-year ban on increasing the national ownership cap. The remaining FCC rule changes would still create a scenario in which a single corporation would be able to acquire in one city up to three television stations, eight radio stations, a cable television system, numerous cable television stations and the only daily newspaper. We need to permanently repeal all of the Powell Rules in order to preserve independence and diversity in the media." Hinchey has been leading the fight against the 6/2 ruling in the House, and is currently pushing for House ratification of the Resolution of Disapproval pushed though the Senate primarily by Byron Dorgan (D-ND) and Trent Lott (R-MS).


Programming

Magnum shuffles formats in Wisconsin
At first glance, going Country in the La Crosse, WI market wouldn't appear to be a logical choice. La Crosse (once an Arbitron-rated metro, but no more) already has three stations in the format - - WCOW-FM, WQCC-FM and KQYB-FM. Nevertheless, Magnum Radio Group has been moving formats around on its La Crosse-Tomah, WI cluster, with the biggest change being its 94.5 mHz station. What was previously Oldies WBOG-FM is now country WTMB-FM. The Oldies format and WBOG calls have moved to what had been Adult Standards WTMB-AM. | Full Story Click Here |


Engineered for Profit

Crawford's WSRB-FM Chicago adds HD Radio;can HD radio simulcast?
Crawford Broadcasting's WSRB-FM (prev. WYCA-FM) Chicago (106.3) has added an HD Radio digital signal, via BE's FMi-703 digital/analog transmitter. The crosstown simulcast station, WYRB-FM is also on 106.3. No word if it will add a digital signal as well. Analog simulcasting in a market is somewhat of an engineering feat as is; digital could be even more complicated. We asked iBiquity CEO Bob Struble about it: "We haven't done any testing with simulcasting. We know that it's theoretically possible. We're working on the problem with Harris, but to our knowledge it hasn't been actually done yet. But there's no reason to believe it shouldn't be-we've just got to figure out how to do it."


Monday Morning Shakers & Makers

Deals: 10/20-24
This was basically another slow week, but it featured one deal which accounted for 50% of the stations moved and 80% of the cash moved - - the deal in which Cherry Creek Radio entered the business by buying out Dex Allen's Commonwealth group. Only three other deals made it into seven figures.

10/20-24

Total

Total Deals

13

AMs

17

FMs

24

TVs

1
Value
$51,160,000
For Complete Charts, Click Here |

Radio Deal of the Week
Cherry-picking? New group makes big western splash | Full Story Click Here |
TV Deal of the Week
Can Max maximize its east Texas investment? | Full Story Click Here |

Transactions

$41,000,000 24 stations in nine markets from Commonwealth License Subsidiary LLC to Cherry Creek Radio LLC.

$4,000,000 KLSB-TV Tyler-Longview (Nacogdoches TX) from KLSB Television LLC to Max Media.

N/A WLIE-AM Nassau-Suffolk (Islip NY). 65.6% of Long Island Multimedia from Stan Henry and Tom Rohr to Stuart Henry.

| More Details Click Here
|


Stock Talk

Market ekes out small gains
Fears of more terrorist attacks are still keeping a lid on Wall Street optimism. Nevertheless, traders pushed stock prices up a bit on Friday. Good earnings reports from two big department store chains, Nordstrom and Dillards, renewed hopes that a real recovery is taking hold. The Dow Industrials rose nine points, or 0.1%, to 9,629.

Broadcasting stocks moved up on the favorable retailing news, with the Radio Index rising 2.222, or 0.9%, to 251.386. Cumulus led the parade, up 3.2%. Salem was up 2.6% and Radio One (Class A) 2.5%.

Entravision was down 8.2%. A large block of Entravision stock had crossed right before the end of trading on Thursday, perhaps signaling more selling by Big City Radio, which is in the midst of liquidating its assets to shut its doors.


Radio Stocks

Here's how stocks fared on Friday

Company Symbol Close Change Company Symbol Close Change
Arbitron

ARB

$41.00

+$0.80

Jeff-Pilot

JP

$47.43

+$0.27

Beasley

BBGI

$14.52

+$0.22

Journal Comm.

JRN

$16.84

-$0.12

Big City YFM $1.43

+$0.02

Radio One, Cl. A

ROIA

$16.75

+$0.40

Citadel CDL $18.90 +$0.30

Radio One, Cl. D

ROIAK

$16.53

+$0.36

Clear Channel

CCU

$40.60

-$0.03

Radio Unica

UNCA

$0.66

+$0.01

Cox Radio

CXR

$21.93

+$0.46

Regent

RGCI

$6.12

+$0.07

Cumulus

CMLS

$18.51

+$0.57

Saga Commun.

SGA

$17.60

+$0.20

Disney

DIS

$22.58

-$0.10

Salem Comm.

SALM

$24.10

+$0.60

Emmis

EMMS

$21.83

+$0.43

Sirius Sat. Radio

SIRI

$1.99

-$0.03

Entercom

ETM

$45.26

+$0.06

Spanish Bcg.

SBSA

$9.51

+$0.14

Entravision

EVC

$9.05

-$0.80

Univision

UVN

$33.58

+$0.43

Fisher

FSCI

$47.44

+$0.32

Viacom, Cl. A

VIA

$37.79

-$0.12

Gaylord

GET

$28.50

+$0.48

Viacom, Cl. B

VIAb

$37.80

-$0.02

Hearst-Argyle

HTV

$24.58

-$0.01

Westwood One

WON

$30.05

+$0.05

Interep

IREP

$2.20

+$0.05

XM Sat. Radio

XMSR

$22.10

+$0.66

International Bcg.

IBCS

$0.02

unch

- - - -

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11/24 - Listen to this morning's RBR Audiocast to start your morning as you scroll through today's Epaper.

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with Bob DeCarlo'
"In Da Morning"


Bounceback

We want to hear from you.
This is your column, so send your comments to [email protected]

A while back, we were honored to get a chance to help out our military men and women serving in Iraq, at the request of MSgt Erik G. Brazones (11/13 RBR Daily Epaper #223). He's starting up an Armed Forces Network radio station, and requested content from American radio stations. We were most gratified to receive this letter, and so, dear readers, should you be. (Note: we were not the only trade to spread the word for MSgt Brazones.)

Gentlemen,
I wanted to let you know that since you've started spreading the word, we've been receiving greetings from Alaska to Florida and Hawaii to Maine. We've over 60 greetings so far and there are a bunch more on the way. I want to thank you for helping us with this initiative. It means the world to those of us over here in Iraq to know that the people back home are supportive of what we're doing. If I were there, I'd buy you all a round.

Erik
ERIK G. BRAZONES, MSgt, USAF
AFN Iraq Detachment Chief, CPA/CJTF-7
PAO, Baghdad


Arbitron

Arbitrends
| Albany |
| Austin |
| Jacksonville |
| Louisville |
| New Orleans |
| Tulsa |


Competing Media

National ad spending continues to lead newspaper growth
Newspaper advertising expenditures for the Q3 totaled $10.9B, an increase of 1.5% over the same period last year, according to preliminary estimates from the Newspaper Association of America. Total ad spending in newspapers for the first nine months was $31.8B, up 1.6% from the same period last year.
| Full Story Click Here |


More News Headlines

Stations for Sale

California Coastal
Profitable FM with growth potential.
Call Andy McClure at The Exline Company. 415-479-3484
or e-mail [email protected]

Own at the Beach
2 Profitable AM Stations
Southeastern Coastal Market
call Gordon Rice (843) 884-3590
or e-mail me here


RBR Radar 2003
Click on these issues for Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Current pacings "unimpressive"
for ABC O&Os
"Both of those climates are unimpressive, in terms of advertising," Disney President Bob Iger told a Wall Street
11/21/02 RBR #229

Analyst sees a bargain at Citadel
In case you haven't noticed, Citadel Broadcasting has been trading below its $19 IPO price 11/21/02 RBR #229

TVB reports
Q3 revenues up a fraction
For broadcast television were up 0.8%. Network was up 5.3% and syndicated 17.8%, but local stations were down 6.3% against last year's tough comps from political advertising… TVB President Chris Rohrs explains. Editor’s note: The Stats and chart best click on this and print out. 11/21/02 TVBR #229

Everybody's in the holiday spirit
All-Christmas music formats are breaking out everywhere this year - - and unusually early. Greater Media's WMWX-FM sent out this greeting card to celebrate the season. Editor’s note: Got to see this one!
11/21/02 RBR #229

The gripes of wrath: Q3 2003
We thought that there was a lot of indecency activity in Q2. "Indecency complaints were way up compared to Q1, going from 124 to 351, a total more than twice as much as in any of the last four quarters. Editor’s note: The Stats tell the story file them.
11/21/02 RBR #229

Revolting reps return; but will Clear Channel spin off rep firms?
The coup is over. But while defecting staffers have returned to Katz Radio and Christal Radio, RBR has learned that Clear Channel is in talks to exit the independent radio rep business by spinning its Katz Radio Group off to a new company controlled by client station groups. RBR observation: Lots of losers. Did anybody win? Will Clear Channel sell? Probably sooner if greed is not involved but common sense.
11/20/03 RBR #228

Buyers react to Katz "rep rewind"
Rich Russo, pictured, JL Media's SVP/Director of Broadcast Services: "..It upset all these radio groups, all these ad agencies. At this point, since their plan didn't work, they should go down with it.
11/20/03 RBR #228

Taking the An and Shell
out of AnShell

The much-talked about liberal radio network, which has yet to emerge from the drawing board, has been sold. RBR observation: Think there's a name change in the works?
11/20/03 RBR #228

RBR Exclusive
Rep revolt goes into reverse - -
Katz defectors return
What was touted as a major coup - - over 130 Katz Radio Group and Christal Radio executives from upper management to account executives who took a hike to Interep's 100 Park Avenue digs last Friday (11/17/03, RBR # 225), to set up two new firms - - has ended. RBR Observation: Set up? If it walks like a duck, quacks like a duck, it must be a duck. No matter now, it has to make one truly wonder who to trust. Remember Katz CEO Stu Olds was offering big bucks for people anywhere from $50,000 to $250,000 signing bonuses.
11/19/03 RBR Bulletin 12.23pm

35% cap lives on Capitol Hill?
The Associated Press is reporting that the 35% national television ownership cap which was appended to a government agency funding bill by both the Senate and the House of Representatives will survive.
11/19/03 RBR #227


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