Welcome to RBR's Daily Epaper
Volume 21, Issue 233, Jim Carnegie, Editor & Publisher
Wednesday Morning December 1st, 2004

Radio News®

PPM cost laid out...soon
Arbitron's Portable People Meter (PPM) is going to cost clients more than its diary-based radio ratings currently cost - - but if you're looking for more specific numbers, you're not going to get them today. Arbitron CEO Steve Morris has promised to give radio groups a price range - - and it could be a pretty wide range - - in early December. What we're hearing is that the public announcement won't be today, but it will be soon. Meanwhile, the company has begun briefing a few top group heads on what to expect in PPM pricing. The big variable in setting a price for PPM service is whether or not Nielsen Media Research says yes to a joint venture with Arbitron to use PPM for TV and cable ratings, as well as radio - - which would lower the cost per subscriber tremendously. As we reported yesterday (11/30/04 RBR #232), Nielsen is being pressured by its clients to be a full partner in Arbitron's upcoming PPM test in Houston as it was in Philadelphia, but Nielsen is resisting such a commitment - - while still evaluating PPM as a possible successor to its current set-top People Meters.

RBR observation: If all goes as Steve Morris hopes, the PPM test in Houston will, at some point, cease to be a test and become the first market to use PPM data for real-world buying and selling of advertising on radio, broadcast TV and cable. But a lot of chips have to fall into place for that to happen. Radio broadcasters, who have been more skeptical than TV and cable about the passive meter technology, have to be convinced that PPM ratings are valid - - and that ratings won't plunge for their all-important morning shows because people aren't taking their PPMs out of their docking stations until they're ready to head out the door. Nielsen has to be convinced that it is to its own advantage to stake its future on PPM, which was developed by another ratings company. And subscribers at radio, TV and cable companies have to be convinced that PPM is worth the additional cost, whatever that may be. It seems the only ones who are absolutely certain they want PPM ASAP are ad buyers, but then, they're not going to be paying the bill. Bottom line: Sources report that yes a meeting was held, believe on 11/16/04, and seven to nine group heads were in attendance. RBR will confirm before we name - names but you probably could assume who they are from our past reports on meetings of this nature. Since mum's the word the percentage of increase being tossed around is expected to be between 40 and 65% and the big but is depending on Nielsen's participation. Sources report these figures and Nielsen participation was met with a "Cool" reception.

Where will Tavis Smiley land?
After three years of hosting a daily talk show on National Public Radio, Tavis Smiley announced that he won't renew his contract. His departure statement made it clear that there were some conflicts with the pubcaster's management. "I am grateful for the opportunity NPR gave me to bring a broader range of viewpoints on life in America to the public airwaves. It is my hope that in the future, NPR will make a greater effort to use its full resources to make this vision a reality," Smiley said. "The Tavis Smiley show" will air for the last time December 16 on NPR. Smiley will continue to host his late night TV show, "Tavis Smiley," on PBS. For its part, NPR VP Bruce Drake said the network considered Smiley's show as a building block for expanding its service to minority listeners. Drake said NPR and the consortium of African-American-programmed stations that launched Smiley's show are immediately beginning "an aggressive search for a new host who can build on the success of the show."

RBR observation: There were immediate indications that Smiley isn't leaving radio, just NPR. So, where might he go? We note that he got his first national break by appearing on "The Tom Joyner Morning Show" and that Joyner's Reach Media just added Radio One as a major investor with plans to expand network radio programming aimed at African-Americans (11/23 RBR #229).

Do we have clearance, Clarence?
Clarence Thomas and the rest of the Supreme Court justices have extended the clock for a number of big media companies and the DOJ as they consider whether or not to take the Third Circuit to court over its delay of new looser media ownership regulations passed by the FCC. The DOJ is filing on behalf of the FCC. The Third Circuit ruling on the controversial 6/2/03 FCC ownership rulemaking approved many aspects of it in principle, but found that the ownership caps specified were not backed with sufficient evidence, and sent them back to the FCC for modification or better justification. Relaxation of broadcast/newspaper crossownership restrictions are of particular interest to companies currently running TV/print combos under waivers which are soon to expire. The Third Circuit did allow some of the 6/2/03 ruling to go into effect. The new Arbitron-geographical market definition regime, and the addition of noncommercial stations to the station count, are now in effect, replacing the old overlapping contour method. Meanwhile, according to the Associated Press, the court has rejected for consideration a challenge by religious radio networks as to the fairness of the broadcast license allocation process. It has also refused to hear an appeal of a lower court ruling which disallowed an attempt by the city of Albuquerque NM to put a cap on political campaign spending. The lower court called the cap a violation of free speech.


Alex Langer to take the reins at WBIX-AM Boston
Alex Langer, the former owner of WBIX-AM, has agreed to assume management of the station, effective today. The agreement between Langer and Atty. David Vicinanzo of Nixon Peabody LLP, the court-appointed receiver for the assets of Brad Bleidt and his investment advisory firm, is intended to maximize the value of the station in preparation for a partnership or sale. A portion of the proceeds would then be used to compensate individuals who were allegedly defrauded in an investment scam that Bleidt, who purchased WBIX in January, admitted to carrying out for a number of years (11/29/04 RBR #231). Langer had only received partial payment for the station and has held a security interest in WBIX pending full payment. Langer will now assume financial responsibility for operating WBIX. Langer said he would not continue the station's business format which was losing considerable money for WBIX. Instead he said he would offer a talk format: "By taking immediate steps to make WBIX profitable, the station's value will be substantially increased. That, in turn, will create value that, in part, can be used to compensate those who have suffered financial losses. There are a number of parties who have already expressed interest in purchasing or partnering with the station, and now the station will be even more valuable to a potential buyer."

Does Limbaugh have time for the Times?
There presumably will be an opening for a conservative columnist on the New York Times OpEd page when William Safire retires next month. At least one radio icon is considering whether or not to apply for the job. "It's not as though I don't have enough on my plate as it is. But as a service, I'll go ahead and throw my hat in the ring, make it official here," said Rush Limbaugh. Limbaugh may be interested in the job, but he's not on the short list of candidates if New York magazine contributor Kate Pickert is correct. She listed a group thought to be up for the job including David Frum, Charles Krauthammer, Christopher Caldwell, Richard Brookhiser, Fred Barnes, Robert Kagan and John Tierney.

:60s vs. :30s: The pros and cons of
"shortening the standard" - - Part 4

As a key element of its "Less is More" initiative, Clear Channel Radio is trying to migrate advertisers from 60-second spots to 30s. Is it fair play to ask radio advertisers to pay more money for less than what they've been getting in :60s? Will they pay? | More... |

Dec. 6th, Only 4 biz days left to sign up


Adbiz©

JWT/Detroit Co-President
Tom Cordner speaks on
"American Dreams"/Mustang film

Ford sent consumers a heartfelt family message this holiday season with a special episode of NBC's hit drama "American Dreams." The show's 11/21 episode, which aired without commercial interruption by Ford, featured the homecoming of JJ Pryor -- a lead character in the show who has been away at war -- and concludes with a nearly five-minute short film titled, "Homecoming." The short film, from Ford's AOR J. Walter Thompson Detroit, captures the anticipation of a young serviceman's return home from war -- and the parallel experiences of his father who had undergone a similar series of events in Vietnam. It mirrors the storyline in "American Dreams" but brings the events into the modern day to communicate the continued importance of celebrating today's homecoming experiences for our servicemen and servicewomen. We interviewed Rich Stoddart, Ford Division marketing communications manager (11/24 RBR #230), (11/30 RBR #232).

Today we interview J. Walter Thompson/Detroit Executive Creative Director/Co-President
Tom Cordner on the effort: Tell us a bit about how JWT worked with Ford and "American Dreams" in getting this done. | More... |

Market-by-market analysis report
added to latest RADAR report
Arbitron announced that with the December release of its network radio service - RADAR 83 -subscribers will be able to go beyond the national data currently offered to access radio network information for the Top 10 U.S. local markets. Access will be available for the RADAR radio networks measured through the Market-by-Market Analysis feature being added to RADAR's PC2010 software. This change makes RADAR the only radio ratings service to offer audience-to-cleared-commercial data at the local market level. By using the Market-by-Market Analysis report feature, advertisers will be able to evaluate the key markets or groups of markets that will best help them achieve their goals. The tool will also aid media planners and buyers with their spot fill scheduling. Radio network subscribers can use the report to demonstrate to advertisers how network radio enables them to reach their primary targets more efficiently. "As clients are increasingly looking at ROI, local data delivery of network schedules is an essential component of our analysis and investment," said Natalie Swed Stone, OMD Director of National Radio Investment. "Arbitron has delivered on the promise it made when it partnered with RADAR. The sample size has been expanded to a point where market-by-market data can finally be offered through this enhancement. This will undoubtedly be a great benefit to the media planning and buying industry." For each of the local markets, clients will be able to assess the value of network radio delivery by taking a closer look at DMA rank, average audience, average audience rating, gross impressions, gross rating points, population, reach and frequency.


Media Markets & MoneyTM
Galli gee whiz: Veteran picks up some Dames
Nicholas Galli, who plied the radio waves not so long ago with his Burbach Broadcasting group, is back, picking up stations from Dame Broadcasting in two small Pennsylvania markets. Galli's new company, 2510 Associates Inc., will get five stations in State College and another foursome in Johnstown for eight million bucks. The State College stations are WRSC-AM, WBLF-AM, WBUS-FM, WQWK-FM & WJHT-FM. In Johnstown, the lineup includes WCCL-FM, WGLU-FM, WQKK-FM & WYSN-FM. Michael Bergner of Bergner & Co., who brokered the deal, told RBR that Galli was using this as a starting point for building a new group. He will be shopping in small-to-middle Mid-Atlantic markets for more stations. Dame still has a hand in the business, with a superduopoly in the Hagerstown-Chambersburg-Waynesboro market.

Price revealed, and then some
The essentially retiring station owner Tom Joyner has found a way to keep his hand in while not exactly getting it dirty. He'll sell three small-market Virginia stations for 1.5M, and go with the flow of a fourth. The acquisition of WICE-FM Clarksville VA and WSHV-AM/WKSK-FM South Hill VA by research veteran Tom Birch (11/22/04 RBR #228) has an option built in. 150K goes into escrow, but once that happens, the deal can be consummated with either cash or a promissory note. Joyner is hanging onto nearby WFXQ-FM in Chase City, but Birch will run it in an LMA. Instead of the usual monthly rental fee stipulated in most such arrangements, Joyner is tying his fortune to Birch's ability to effectively run the operation - - he will scoop off 30% of the station's monthly net revenue. Dick Kozacko handled the sale of the cluster, which Birch considers to be in the far northern fringe of the Raleigh-Durham market.

Castro strikes again on the Mexican border
Tom Castro is getting another Rio Grande radio station along the Texas-Mexico border. The latest acquisition for his aptly-named Border Media Partners is KBMI-FM in Roma, about halfway between Laredo and McAllen. Seller Horizon Broadcasting Inc., headed by Douglas Smiley will rake in 340K cash in exchange for the station. Although Castro's group has a presence in both of the markets mentioned, this station splits the difference. It's a true fill-in acquisition, overlapping no stations in either market.

Another bill-and-a-half for Rupert
A News Corporation subsidiary, News America Inc., has been back on Wall Street raising cash. It's sold 1.5 billion in new bonds to be used for "general corporate purposes." The new issues consist of one billion of 6.2% senior notes due in 2034 (when Rupert Murdoch will be 103) and 500 million of 5.3% senior notes due in 2014. The latter issue may be increased to 750 million if demand in the private placement exceeds supply.


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Monday December 6th, 2004.


Washington Beat
Another buccaneer bites the dust
A member in good standing of the radio pirate armada, suburban NYC fleet, has been brought to justice by the FCC. Angelo Avena was operating just to the far left of the standard radio FM dial at 87.9 mHz. His operation was based in Linden NJ, which is just west of Staten Island and a bit south of Newark. An FCC field agent caught the station in operation at least four times. Avena admitted to only two of these violations, and although the FCC did not buy his denial of the third and fourth charges, it did reduce the fine from the standard 10K to 1K based on Avena's demonstrated inability to pay the larger amount.

Media General wins appeal for more time
Multimedia operator Media General has been granted an extension by the FCC to defend itself from petitions to deny filed by watchdog organizations Common Cause and Free Press. At issue is the license of WBTW-TV in Florence SC. Media General owns a newspaper in Florence as well, and was counting on relaxed FCC rules allowing the pairing to be in place by now. Instead, the rules were remanded to the FCC for modification or better justification. Media General would like to hang on to both properties until the rules are resolved; the watchdogs want the combination split up now. The answer to the denial petitions was due today, but Media General's legal staff has been tied up with various license renewals and DTV compliance. The FCC has allowed it until 12/15/04 to deal with the WBTW-TV situation.


Programming
Fox News Radio clears Tony Snow, Alan Colmes in DC
Fox News Radio's nationally syndicated shows, The Tony Snow Show and Fox News Live with Alan Colmes will begin broadcasting on IDT's WMET-AM DC on 12/6. Both shows will air live. The Tony Snow Show will air weekdays from 9:00 AM-Noon and Fox News Live with Alan Colmes will air weeknights from 10:00 PM -1:00 AM.

American troops get 1 million
phone minutes from Glenn Beck
For the Thanksgiving Holiday, Glenn Beck went on the air and encouraged his listeners to call the USO of Metro New York and purchase 15-dollar AT&T calling cards for U.S. Troops overseas. The USO/NY reported that more than 26,000 33-minute phone cards were sold in just two days and an additional 150,000 was raised for the organization. When announcing the results on his program yesterday, Glenn said to the troops, "America has not forgotten you."


Ratings & Research
Arbitron to survey
Chinese listeners
In a first move to measure the radio listening of Chinese-American consumers, Arbitron is going to do a special survey in the LA and New York markets using bilingual Chinese-English diaries. The ground-breaking study during the Winter 2005 survey (January 6-March 30, 2005) is being done for Multicultural Radio Broadcasting. Each survey will have in-tab samples of 500 Chinese-speaking individuals. "Similar to the Hispanic market 20 years ago, the Asian population in this country is growing at an extraordinary rate with unparalleled education and income levels. For the first time, broadcasters and advertisers will be able to quantify the size, composition and listening habits of the Chinese-language audience through this study," said Multicultural CEO Arthur Liu. According to Arbitron, there are currently 407,800 Chinese-Americans age 12+ in Los Angeles, or 3.8% of the population, and 564,500 in New York, 3.7% of the metro. Although the special survey is being conducted during Arbitron's regular Winter survey, data from the special Chinese-American survey will not be included in Arbitron's normal radio ratings calculations for the two metros.


Transactions
WMBP-FM Parkersburg WV-Marietta OH (Belpre OH) and WVRP-FM Ripley WV from Lower Ohio Valley Educational Corporation to Educational Media Foundation.

WALH-AM Atlanta (Mountain City GA) from Valley Communications Co. to Mountain City Broadcasting Inc.

| More... |


Stock Talk
Consumers glum, stocks fall
A drop in consumer confidence, reported by the Conference Board, sent stocks dropping as well. The Dow Industrials were off 48 points, or 0.5%, to 10,428.

Radio stocks joined in the retreat. The Radio Index fell 3.239, or 1.4%, to 223.135. Cumulus was off 3.4%, Citadel 2.8%, Saga and SBS 2.4%, and Clear Channel 2.3%.


Radio Stocks

Here's how stocks fared on Tuesday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

37.42

-0.18

Jeff-Pilot

JP

49.19

-0.98

Beasley

BBGI

17.55

+0.05

Journal Comm.

JRN

17.54

+0.04

Citadel CDL
15.42 -0.44

Radio One, Cl. A

ROIA

13.88

-0.21

Clear Channel

CCU

33.68

-0.80

Radio One, Cl. D

ROIAK

13.95

-0.10

Cox Radio

CXR

15.90

-0.27

Regent

RGCI

5.71

unch

Cumulus

CMLS

15.28

-0.53

Saga Commun.

SGA

16.99

-0.42

Disney

DIS

26.88

-0.18

Salem Comm.

SALM

24.56

-0.29

Emmis

EMMS

18.49

-0.23

Sirius Sat. Radio

SIRI

6.63

-0.06

Entercom

ETM

36.02

-0.57

Spanish Bcg.

SBSA

10.69

-0.26

Entravision

EVC

8.20

+0.05

Univision

UVN

30.10

-0.42

Fisher

FSCI

47.03

+0.02

Viacom, Cl. A

VIA

35.57

-0.18

Gaylord

GET

35.24

-0.03

Viacom, Cl. B

VIAb

34.70

-0.10

Hearst-Argyle

HTV

25.70

-0.30

Westwood One

WON

22.42

-0.35

Interep

IREP

0.80

+0.01

XM Sat. Radio

XMSR

36.91

+0.01

International Bcg.

IBCS

0.01

unch

-

-

-

-

-



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Bounceback

Send Us Your OpinionsWe want to
hear from you.

This is your column, so send your comments to radionews@rbr.com

On the issue of :30 vs. :60 spots.

The only time to use a 60 is when you can't say what you need to say in a 30. That being said, what happens if you do need more time? The point here is...focus on the client and the listener's needs. Do you really think your average listener even knows it's a 30 or a 60? No way. We live in our own world...we need to live in the audience's world if we are ever going to be successful. If we could just get away from the mentality of focusing on stock shares and focus on listeners, then amazingly stock shares would increase. Go figure??

Mike Padgett, CRMC
Soft Rock 98.5 WTFM Radio
Kingsport, TN

And regarding indecency.

Couldn't help myself after reading your article on indecency - - if you ever do a story on "decency pays" here's a little trivia for you. Seattle's Adult Contemporary Christian Music Station, KCMS-FM, the "safe for the whole family" radio station, came in a solid #1 mid-days with Women 25-44 in the Summer Arbitron (#2 in both drive times). One notable stunt during the summer survey was when KCMS aired an occasional Christmas song over the hottest weekend of the year (July 23-25), cooling off and reminding listeners that KCMS is Seattle's Christmas Music Station during the holidays. Kind of a "Christmas in July" theme that caught the audience off guard, but certainly didn't hurt! By the way, as you may already know, the state of Washington is regarded as the second lowest state (Oregon is #1) in church attendance in the nation. Don't look for Washington to turn to a "red" state from a "blue" one anytime soon, but the Governor's race is in court with the Republican candidate leading the Democratic candidate by a mere 47 votes after nearly 3 million were cast! The hand re-count will cost the Democratic party 25 cents per ballot. Thank you for your time and best wishes for a happy and prosperous New Year to all!

Warmest regards,

Jim Barker,
Senior Account Executive
Spirit 105.3 FM KCMS Seattle


Arbitrends

Arbitron
Market Results
| Austin |
| Jacksonville |
| Louisville |
| New Orleans |
| Tulsa |


Upped & Tapped

New PD in Omaha
Darla Thomas, formerly with KLSY-FM Seattle, has been named Program Director at Journal Broadcast Group's KSRZ-FM Omaha. Erik Johnson, who had been programming two stations, will return to devoting his fulltime attention to KQCH-FM as PD and afternoon talent.

BSW promotes Tom Roalkvam to VP/Sales
Broadcast equipment vendor BSW today announced the promotion of Tom Roalkvam to VP/Sales. Roalkvam has been Sales Manager of BSW since 1998.


More News Headlines

TVBR - TV News

Brokaw goes out on top
The advice to quit while you're ahead is seldom heeded, but Tom Brokaw is bowing out while he's still #1 in the network news rating race. Months after announcing that he would step down following the 2004 election cycle, Brokaw hosts "The NBC Nightly News" for the last time tonight. For his last full week in the anchor chair, Brokaw posted a Nielsen rating of 7.7 and a 15 share, keeping him in the familiar #1 spot. ABC's Peter Jennings was next at 6.9/13 and CBS's Dan Rather at 5.4/10. Beginning tomorrow, Brian Williams will take over as the regular anchor of NBC's main newscast - - trying to maintain that lead over Jennings and getting several month's jump on whomever CBS picks to succeed Rather as he steps down next March.


October Digital
Solutions Magazine

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.

October Zinio Solutions Magazine
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




RBR Radar 2004
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

RBR exclusive
BTRN says give me Liberty
Just a little over a month after IDT Corp. indicated that it wanted to sell most of Liberty Broadcasting Network the transaction is done and the buyer is Business TalkRadio Network (BTRN). IDT will also become a minority shareholder in BTRN, which will launch a new 24/7 network, the Lifestyle TalkRadio Network. The list of talent includes such hosts as Bruce Williams, Mort Crim, Heloise and Doug Stephan, as well as all affiliate agreements. All affiliate contracts are included in the transaction and BTRN says affiliates of the Liberty shows will continue to receive the programs as in the past. Operations and studios will be moved to BTRN's broadcast facility and corporate offices in Greenwich, CT. RBR observation: Makes sense in today's already over crowded pack - stack - racked programming. Now two small suppliers get a little bigger and consolidation this time for the better. Shall we see more of this in 2005? Get the January debut issue of Radio & Television Business Report - The Real Business Magazine - as all Major Advertising Bureau CEO's go head to head with their punches and counter punches why their medium is the best. You be the judge- it is your business. 11/30/04 RBR #232

Bear Stearns bullish on Stern,
bearish on radio
What happens when Howard Stern departs earth-bound radio for the satellite high life? Bear Sterns analyst Victor Miller has been crunching some numbers - - and they're not good for the affiliates who are losing the "King of all Media."
RBR observation: Back on planet earth, those terrestrial stations that currently carry Stern take in about $110 million in ad revenues from his show, with $90 million of that at Infinity's stations. Read on - Ouch! That hurt. 11/30/04 RBR #232

Nielsen customers pushing for Houston PPM participation
TV and cable have been nearly unanimous in willing participation in Arbitron's upcoming test of its Portable People Meters (PPM) in Houston - - more so than radio, where three major groups are holdouts (Infinity, Cox and Radio One). Nielsen Media Research is now getting pressure from broadcasters and ad buyers to participate in the Houston test as a full partner, just as it did in Philadelphia. Television Bureau of Advertising (TVB) President Chris Rohrs tells us that the Nielsen Customer Alliance, which he co-chairs, unanimously passed a resolution calling on Nielsen to participate in the Houston PPM test, but that the group has not received a response from the TV ratings company. Nielsen spokesman Jack Loftus told RBR/TVBR Nielsen is still in a test phase as far as the PPM technology is concerned and still has questions that need to be resolved before it commits to another joint test with Arbitron. RBR observation: If you want to know who is really pushing PPM, look to the big advertisers and agencies. They want passive audience measurement as fast as possible. We've heard from them time and again that they want radio to move out of the diary dark ages - - and they're not much more pleased with Nielsen's set-top People Meters, which are a step forward from diaries, but still require people to take action to record their TV viewing. 11/30/04 RBR #232

:60s vs. :30s: The pros and cons of "shortening the standard" - - Part 3
Is it fair play to ask radio advertisers to pay more money for less than what they've been getting in :60s? Will the buyers accept it? The marketplace will decide. Says Natalie Swed Stone, US Director, National Radio Investment, OMD: "If they do not price at 50%, the transition will take longer - - advertisers will not support the change as readily."
11/30/04 RBR #232


Visit MediaHeadHunters.com
Senior Sales Executive
Sunshine, no snow here, plus the market leaders in Gainesville-Ocala at two of the leading radio stations in N. Central FL, WOGK-FM (K-Country) and WIND-FM (classic rocker). Two years sales experience a must. Please send resumes to rkassi@windwogksales.com fax to R. Kassi 352-622-7822. No calls. EEO

GM & Equity
Tired of the rat race? New England radio group seeks self-starter to captain turnarounds. Community radio is still alive and well in this Central New England combo. Equity participation available Letter and Resume to: Worldradiotheatr@aol.com

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