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Volume 23, Issue 231, Jim Carnegie, Editor & Publisher

Wednesday Morning November 29th, 2006

Radio News ®

Ad vet Jon Mandel joins VNU
After 32 years in on the agency side, Jon Mandel, former Group M chief of strategic solutions and MediaCom Chairman, has joined VNU as CEO of NielsenConnect, a newly formed business unit. The announcement was made by David Calhoun, VNU Chairman/CEO, to whom Mandel will report. NielsenConnect is much more than multimedia ROI analysis. It follows the consumer and what drives them to action, connecting all of the different information resources across VNU so clients can move more quickly to maximize relationships with their customers.

We asked, how did this move come about?
"[VNU] had evidently talked about this for some time. Then a few weeks ago Dave Calhoun called and sent an emissary in Susan Whiting. We went out to dinner and she said, 'Look, this is what we're kind of bouncing around, what do you think?' I thought it was interesting and I said I always thought you guys should do that. She said, 'Well, I want you to talk to Dave Calhoun.' I met with him and the guy is like scary smart. He has this vision of how to take this company forward that I totally, totally am in to. He asked if I was interested and I said let's see what we can work out. They worked it all out and I had to sit there for a bit, because it's a big move after 32 years."

And looking back on the decision, Mandel describes it as if you were a medical researcher trying to find the cure for something, you would try and put yourself in the university or hospital that had the absolute best research library and facilities in the world: "And I am very interested in how you cure and fix marketing. I just got into the best facility in the world for that." He adds, "One of the things that I really love about the marketing and advertising business is I consider a lot of those people close personal friends in addition to business friends. Same with the client and media side - the stations and networks - I thoroughly enjoy them and I think there are some great people there I've worked with through industry things. One of the things that's so appealing to me about the VNU world is I still get to work with all of those people, but even more of them. I'm in a place where I can actually impact in a positive way, information that they need to look at their businesses going forward. So it's sort of the best of all worlds."

RBR observation: It will be interesting to see Mandel's transition from buyer side to supplier side. Indeed, he's got a huge number of contacts and friends in the agency, advertiser and broadcaster communities. His mission will be to offer up the most advanced data solutions in what drives consumer action - the Holy Grail of marketing. Currently, media agencies provide such data, but perhaps not on a level all of VNU can offer if the products were completely integrated. Remember, agencies have to crunch data from a variety of different sources - time and labor-intensive. It should be interesting to see what offering NielsenConnect rolls out and how it can expedite and complement current analyses from the agencies and clients. Meanwhile, it is sort of fun to watch as the pieces fall in place to rebuild VNU into a new company. After the buyout, the private equity owners recruited Calhoun from GE as a Wall Street heavyweight to run the company. Now he has recruited Mandel, a Madison Avenue heavyweight (who is no stranger to Wall Street, either), to play a key role in making the parts of VNU work together. We hear that Nielsen Media Research CEO Susan Whiting, already running the main profit center, is in line for a bigger role as well. Meanwhile, VNU is working to sell its European computer magazines, which don't fit with anything else it does, and will likely shed a few other non-core assets as well. Still to do: reincorporate from The Netherlands to the US and rename the company - we expect something that includes Nielsen in the title. The new, improved and renamed former VNU could be ready for an American IPO as soon as 2007, but that will depend on market conditions.

Tribune may be back to package sale
Based on the experience of a Baltimore group trying to buy their local newspaper, the Tribune Company may be back to focusing on a sale of the entire company, rather than the pieces. According to the Washington Post, the would-be buyers of the Baltimore Sun have been put on hold, told that Tribune is not taking bids for individual properties. A group of investors led by Ted Venetoulis, a local politician who also has experience in the newspaper business, had approached Tribune Co. last week asking to see financials for the Baltimore paper broken out from the larger company and to begin performing due diligence for a formal bid. But Venetoulis told the Post he heard back from Tribune HQ that they would not let him look at the Sun's books because the company is continuing to seek a single buyer for all of Tribune Company and is not ready to bargain for individual pieces. Venetoulis isn't giving up, telling the Post he has been contacting the players rumored to be bidders for the entire company to let them know he is a willing buyer if they want to sell the Baltimore newspaper.

RBR observation: This seems to update the timeline for what is going on at Tribune Company. After the initial bids from private equity buyout groups came in below expectations, Tribune and its advisors began actively shopping the individual pieces. Now, though, it seems they have changed course again and are dealing for the entire company. Does that mean that the bid from Eli Broad and Ron Burkle (11/9/06 RBR #219) was aggressive enough to move them to the top position to bargain for all of Tribune Company? If so, is anyone else back in the bidding? Tribune issued a statement late yesterday that didn’t clarify the situation. It did say, though, that a sale decision was no longer expected by the end of this year. Rather, it said a final recommendation to the Tribune board is not expected until Q1 of 2007.

Muslim watchdog applauds spoof
Over Washington DC airspace, WMAL-AM personality Jerry Klein suggested that all Muslims in America should have some kind of "identifying marks," up to and including tattoos. He then took calls, and some of the callers chastised him for not going far enough. This on a station that fired a personality in the summer of 2005 for a perceived Muslim slur. The earlier incident was Michael Graham's assertion that all Muslims are terrorists. Graham was suspended, then released after protests led by Muslim watchdog CAIR (Council on American-Islamic Relations) flooded the station. That same watchdog group is applauding the Klein bit. After letting the calls come in for about a half hour, he said that all his statements were "baloney," and said, "I can't believe any of you, any of you, are sick enough to have agreed for one second with anything that I have said in the last half hour." CAIR thanked Klein for bringing it to light. CAIR Communications Director Ibrahim Hooper said, "The public reaction to Mr. Klein's courageous parody should be a wake-up call for American religious and political leaders who remain silent in the face of growing anti-Muslim bigotry in our society." WMAL is owned by ABC/Disney.

RBR observation: Talk about walking a tightrope. The chances for a bit like this to go awry are big anywhere. It's especially true in Washington, where various ethnic groups not only have enclaves, but embassies as well. It's a place where such a thing can truly become an international incident. It wouldn't have been a surprise if the WMAL's studio had been surrounded by protesters before the bit was half over. We have to admire Klein's bravado, and CAIR's restraint in letting the piece play through to its anti-prejudicial end.

Networks get an assist
from creative community
The Center for Creative Voices in Media has submitted a brief to the Second Circuit US Court of Appeals regarding the FCC's recent decisions on indecency charges involving broadcast networks. In making the document public, CCVM wrote, "The results of the FCC's campaign against broadcast indecency are clear. Much of the programming that is being censored, pushed back to a late hour, or dropped entirely by broadcasters is the very programming that Americans overwhelmingly want to see - some of the highest-quality programming available on television." The filing is divided into three main sections, which deal with these topics: The Commission's action is vague and arbitrary (the orders fail to establish consistent standards under which creators can accurately deliver programming permissible under the indecency standard); the Commission's decision is chilling speech and stifling creative expressions; and the Commission violated the rights of viewers and listeners to access diverse information from a diversity of sources. The oft-cited claim that indecency regulation was about protecting children was countered by Action for Children's Television President Peggy Charren, who said, "Many parents want to watch this programming together with their children. By causing quality television to disappear, the FCC has taken a powerful tool out of the hands of parents who use television to open up a dialogue with their kids about controversial topics like violence, poverty, racial disparity, and cultural diversity."

Elective body ratifies media resolution
The Seattle City Council has voted to endorse the Media Bill of Rights. The panel stated that "...a free and vibrant media...is the lifeblood of American democracy..." and that it is threatened by diversity-squashing corporate consolidation. It stated that a "small number of large media conglomerates" are minimizing competition in order to maximize profits. A major casualty is "an uninhibited marketplace of ideas in which the truth will prevail" and states that "it is the right of viewers and listeners, not the right of broadcasters, which is paramount." The action comes just days before interested parties in the city, including Sen. Maria Cantwell (D-WA) and Rep. Jay Inslee (D-WA) will be participating in an unofficial forum on media ownership, with FCC Commissioners Michael Copps and Jonathan Adelstein adding it to their record of road show stops.

RBR observation: We're sure that the make-up of the Seattle City Council is not exactly the same as the make-up of the US Congress, but the US Congress took a big step toward Seattle's end of the spectrum 11/7/06. If the Democratic success turns out to be a trend rather than a one-time event, events like this one may become more and more common. Stay tuned.
| See the Media Bill of Rights here |

Why Do We Bring
Radio & TV Together?
Right this minute Radio & TV are more closely tied together than ever before. Both regulated by the FCC, we are being Challenged by New forms of Media from the likes of: iPods, Mobile Services and do not forget internet giants like Google and Yahoo. Contact & Discuss how you can Partner with RBR in the January report.

June Barnes: 803 731-5951
Carl Marcucci: 703 492-8191 ext 202
Jim Carnegie: 813 909 2916

January 2007 report:
* Engineering & Technology: Steve Davis, CC Radio SVP/Eng. on HD Radio
* 3M: TV deal making outlook, Mark Fratrick, Brian Cobb, Kalil, others with insight '07
| View '07 Content Focused Reports Calendar |

Ad Business Report TM

Carat Fusion lands West Marine
Digital marketing agency Carat Fusion has won new business from West Marine, the leading retailer in the North American recreational boating industry. Carat Fusion will provide a suite of search marketing and affiliate marketing services for the company. Carat Fusion's search team in San Francisco will lead search marketing efforts, while the agency's LA office will manage affiliate marketing. Both offices will collaborate in helping the retailer increase online conversion for its e-commerce channels. "This is a great opportunity for our California offices," said Paul Santello, SVP, Managing Director of Carat Fusion's LA office. "West Marine is the dominant retailer in this category, and we're looking forward to working closely with them on an expanded search and affiliate marketing program."

TiVo launches "Program Placement"
TiVo unveiled "Program Placement," its latest ad solution that offers an opportunity through the TiVo service to insert an ad after a program has played, when there is nothing left to fast forward through. For the first time, advertisers will be able to reach their target DVR audience by purchasing enhancements against specific shows. Burger King, General Motors, MasterCard, The Weather Channel and Court TV are the first companies to sign up. GroupM's MindShare, Norwalk, CT-based Media Storm and GSD&M, worked with TiVo to have their clients be the first to use the solution. Program Placement advertising can be matched to multiple programs, television series and genres. Burger King is allowing viewers that interact directly with Program Placement to view entertaining, long-format content such as promotional videos for the company's exclusive Xbox 360 game series featuring the King and Subservient Chicken. "TiVo now can help advertisers effectively engage a target demographic audience while substantially countering the impact of fast-forwarding commercials," said President and CEO of TiVo, Tom Rogers. "This new product allows advertisers to reach the most desired viewers by presenting tags prominently on the TiVo screen displayed at the end of a recorded program." Clients that use Program Placement will have access to TiVo's audience measurement reporting, including program and commercial viewership research.

Media Markets & Money TM

Breaking up on Lake Michigan
WIMS-AM Michigan City IN and WJOB-AM Hammond IN are breaking up. Alexis Vazquez Dedelow of Vazquez Development is sending WIMS to Gerard Media, headed by Scott, Ric and Marc Federighi in exchange for their 45% interest in the licensing company, and hanging on to WJOB. Hammond is located in the more populous of the two locations, just west of Gary IN and southeast of Chicago. Michigan City, true to its name, is much closer to its namesake state than it is to Gary. Perhaps as a result, the Federighis will be relieved of their responsiblity for 187K of Vazquez Development debt and will also receive 335K in cash to seal the deal. An LMA began back in October.

Washington Media Business Report TM

Close caption proceeding extended
No less that 494 program producers, mostly of the small variety, have petitioned the FCC for relief from closed captioning requirements. Getting an "undue burden" exemption is the goal for most. The types of companies in question generally produce small, local shows, often featuring religious material, local hunting/fishing topics, etc. Without closed captioning embedded in their production, local broadcast and cable outlets also facing closed captioning requirements are less likely to carry the programs. Given the large number of related petitions, the FCC asked for comments 11/7/06 and put a 20-day clock on the proceeding. It has now added another 120 days, in recognition of the impossibility of wading through the massive stack of petitions within the constricted framework of the short original window. It has also waived the requirement that participants in the process serve all other participants with their submitted documentation. All submitted documents will be available at CG Docket No. 06-181 at fcc.gov.

Internet Media Business Report TM

YouTube goes mobile
YouTube announced in early December, its video entertainment service will be available to on mobile devices. In its first strategic mobile distribution agreement, YouTube will enable Verizon Wireless V CAST consumers to access a selection of YouTube videos from their mobile phones exclusively for a limited time. YouTube will deliver a sampling of the most popular videos to Verizon Wireless' V CAST subscribers. "We are excited to launch our new mobile service and to partner with Verizon Wireless to bring YouTube videos to a new audience," said Steve Chen, chief technology officer and co-founder of YouTube. "People want to be entertained in a way that fits their individual lifestyle. This service offers our community and Verizon Wireless subscribers a new opportunity to connect and engage with their favorite videos. We will continue to roll out more exciting partnerships and features for the mobile user over the coming year."

Music Media Business Report

Buyout bid for EMI Group
The record industry is the latest target for the private equity buyout business. EMI Group announced yesterday that it has received a takeover bid. Although EMI did not identify the suitor, the announcement came just hours after the Financial Times reported that Kohlberg Kravis Roberts & Co. and Goldman Sachs Group were preparing an offer for EMI. But they may have been beaten to the punch. The Wall Street Journal reported that the bid announced yesterday by EMI came from Permira, a private equity fund based in the UK. The bids are expected to approach five billion bucks. As you would expect, EMI saw its stock price jump yesterday on the news.

Transactions

75K WCHM-AM Clarkesville GA from Brian Rothell to SB Communications (Michael J. Sbuttoni, Robert S. Bierman). 35K to assume note, 30K loan to seller to settle debts, new 10K note. [File date 11/8/06.]

N/A WKRT-AM Ithaca NY (Cortland NY) from Saga Communications of New England LLC, a subsidiary of Saga Communications Inc. (Edward K. Christian) to Bible Broadcasting Network Inc. (Lowell P. Davey). Donation. BIA Financial Network will appraise, BBN will supply tax certificate at closing. [File date 11/8/06.]

Stock Talk

Small gains, despite Fed talk
Fed Chief Ben Bernanke worried Wall Street by indicating that rates won't be coming down anytime soon. Nevertheless, the broad stock market was up modestly. The Dow Industrials rose 15 points, or 0.1%, to 12,136.

Radio stocks were mostly lower as Citigroup cut ratings on many media stocks. The Radio Index was off 0.904, or 0.6%, to 148.436. Cumulus, one of those who had their rating cut, fell 3.9%. Cox Radio, ditto on the rating cut, fell 2.5%.

Radio Stocks

**Here's how stocks fared on Tuesday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		44.39	+0.12	Hearst-Argyle	HTV		25.24	+0.13
Beasley	BBGI		7.01	-0.03	Journal Comm.	JRN		11.80	unch
CBS CI. B	CBS		30.05	-0.24	Lincoln Natl.	LNC		63.49	+0.09
CBS CI. A	CBSa		30.06	-0.26	Radio One, Cl. A	ROIA		6.65	-0.05
Citadel	CDL		9.37	-0.02	Radio One, Cl. D	ROIAK		6.67	-0.05
Clear Channel	CCU		35.30	-0.05	Regent	RGCI		3.12	-0.04
Cox Radio	CXR		15.93	-0.40	Saga Commun.	SGA		8.94	+0.03
Cumulus	CMLS		10.09	-0.41	Salem Comm.	SALM		12.16	+0.16
Disney	DIS		32.89	+0.30	Sirius Sat. Radio	SIRI		4.17	+0.05
Emmis	EMMS		8.47	-0.05	Spanish Bcg.	SBSA		3.96	+0.02
Entercom	ETM		27.30	-0.17	Univision	UVN		35.47	+0.03
Entravision	EVC		7.16	-0.12	Westwood One	WON		6.56	+0.06
Fisher	FSCI		44.24	+1.41	XM Sat. Radio	XMSR		14.28	-0.16
Gaylord	GET		48.60	+0.07	-	-	-	-	-

Bounceback

Send Us Your Opinions We want to
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This is your column, so send your comments and
a photo to [email protected]

RBR wrote "Jeff Haley can't become a member of American Women in Radio and Television (AWRT) for obvious reasons..." (11/28/06 RBR #230)

Thank you for announcing our newest AWRT Foundation Trustee, Jeff Haley. I do have one correction to the posting. In actuality, Jeff Haley can be and is a full voting member of American Women in Radio & Television, as well as one of our newest esteemed Trustees. In fact 8 percent of our members are male. Why?, you may ask...because many of our benefits are not gender specific - but rather industry specific. In addition, some men chose to join as a show of support and solidarity. Far be it for us, a diversity-based group, to discriminate based on gender. Thank you for posting this correction. And for more about us, please visit our website at www.awrt.org.

Best regards,
Maria Efantis Brennan, CAE
Executive Director
American Women in Radio & Television

Below the Fold

Ad Business Report
TiVo launches "Program Placement"
Latest ad solution to insert an ad after a program has played...

Media Markets & Money
Breaking up on Lake Michigan
WIMS-AM Michigan City IN & WJOB-AM Hammond IN are breaking up...

Washington Media Business Report
Close caption proceeding extended
494 program producers,have petitioned the FCC for relief from requirements...

Music Media Business Report
Buyout bid for EMI Group
Record industry is the latest target for the private equity buyout business...

Arbitrends

Stations for Sale

Southern Market w/PCF
Near Major University
Owner finance - $950K
Ken Hawkins 334-514-2241
Satterfield & Perry
[email protected]

5 FM / 1 AM station NEast
2 markets, 3 station clusters.
Revenue @ 2.5M, CF pacing at
1M in 06, Asking 12.3M,
[email protected]
or 781-848-4201

Upgradeable Albany AM
License, equipment, and engineering study for upgrade, all available now. Includes property and new solid state transmitter. $240k, owner will finance. NO cash flow.
877-541-5250 (NO BROKERS)

Market your Stations For Sale
in our daily epapers.
Contact June Barnes
[email protected]

Radio Media Moves

Shaw heads to the beach
And he won't have to go far, having spent the last 46 of his 50 years in radio on the air in Miami. Rick Shaw announced yesterday on his WMXJ-FM "Majic 102.7" morning show that he will retire in early 2007 after a successor is found for the Lincoln Financial Media station. Shaw celebrated his 50th anniversary on radio this past June, having started in 1956 at age 17 (you do the math) on a small station in East St. Louis, IL. He departed the Midwest for sunny Miami in 1960.

RBR Radar 2006

Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

"Selling radio ads in new ways"
Bear Stearns broadcast analyst Victor Miller and Internet analyst Bob Peck hosted a conference that discussed and provided updates on the online ad selling model of SoftWave Media Exchange (SWMX). SoftWave CEO Josh Wexler and COO Bill Figenshu were present for the presentation. Miller opened by mentioning as Google's up to 1 billion dollar potential acquisition of dMarc grabbed headlines months ago, it is apparent that the radio companies and investors are increasingly focused on new ways for traditional media to capture new ad dollars.

RBR note: This analysis is worth another read as it is your revenue internet stream and gateway to understanding this business media environment. Then you decide as RBR brings Ideas Working Now (tm) see RBR Ad Business Report section in
11/28/06 RBR #230

Not so happy satellite holidays
Last year Howard Stern grabbed lots of media attention and drove big holiday sales for Sirius Satellite Radio, with the hype even spilling over to help rival XM as well. But that set the Q4 bar very high and neither company appears able to reignite the holiday hype and hoopla this year. But there is some buzz being generated. Sirius CEO Mel Karmazin hinted broadly in an interview with SmartMoney magazine that he has approached XM about a merger, but demurred, saying he really couldn't talk about it, but then added that he had used mergers quite successfully to build shareholder value at Infinity/CBS/Viacom.

RBR observation: Mel is just dreaming. No way in the world such a deal could win regulatory approval in 2007. We are hard-pressed to see the FCC ever allowing the only two providers in a particular communications sector to merge unless one is in bankruptcy. And as much as we disparage the so-called business plans of the satellite radio companies, we don't see either having to file Chapter 11 in the next couple of years. But Mel has to find some way to talk up his stock - and he certainly can't cite current subscriber figures as something to brag about.
11/28/06 RBR #230

RBR Observation
Growth or Cut and Run?
"We believe that in our business we can never save ourselves into prosperity. We must manage expenses, but the only road to success is to raise revenues through the culture and system we describe." That is one of the 10 commandments of the Cherry Creek Radio sales culture. What do they know that the people running the largest broadcasting companies in America just can't grasp? Another of those 10 commandments notes that "when you turn out the lights, the assets go home" - in other words, growth is based on recruiting and holding onto good employees. Meanwhile the largest radio company in the country and one of the TV big four have been trying to save themselves into prosperity by ditching their most valuable assets, People. Clear Channel Radio has been axing people. NBC Universal has been doing the same thing with a reorganization dubbed NBCU 2.0. Or would it be better called NBCU -5% for the 700 people being cut from the workforce? As the saying goes - The Lights are On - But thinking short-term may help Clear Channel and NBC pay the light bills in 2007 - But is anyone at either company looking ahead to 2008 and beyond?
11/27/06 RBR #229

Research Director
TVB (Television Bureau of Advertising) New York City Experience in media sales research/market research. Knowledge of: Nielsen NTI & NSI, TNS, Polk, Scarborough, MRI, Excel/PowerPoint. EOE
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Account Executive
KUVN TV 23 Univision Dallas looking for a bright and dynamic advertising executive. Must have Bachelor's deg. in Marketing or related field and at least 3 years of experience in electronic sales. EOE.
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Account Executive
KSTR TV 49 TeleFutura Dallas Join a fast growing sales force. Ideal executive will have Bachelor's degree in Marketing/related field and or at least 1 year's experience in advertising electronic sales. Spanish-English is preferred, but not req. EOE.
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