Welcome to RBR's Daily Epaper
Volume 21, Issue 238, Jim Carnegie, Editor & Publisher
Wednesday Morning December 8th, 2004

Radio News®

Hollander spending to fix Infinity stations
While applauding Clear Channel's "Less is More" initiative to cut clutter, Infinity Broadcasting President & COO Joel Hollander says that's just one of the problems that radio needs to address. A couple of others are spending on promotion and up-to-date equipment, where he says Infinity was negligent in recent years. While not blaming Mel Karmazin, Hollander says "That was then, this is now." | More... |

Infinity thumbs up boosts Houston PPM test
RBR's exclusive report yesterday, which was later confirmed by Infinity President and COO Joel Hollander at the UBS Securities Media Week conference in New York, means that Arbitron faces only two radio holdouts from encoding for the upcoming Portable People Meter test in Houston. We reported last July that with Infinity, Cox Radio and Radio One all refusing to encode, Arbitron would have only 52.1 commercial radio share points participating in the test, with 30.7% boycotting. Those figures were based on the Winter 2004 Arbitron ratings. Using the same ratings book, the count is now 60.6 in and only 22.2 out. Using the most recent book, Summer 2004, the numbers are only slightly different - - 60.3 in and 22.4. Meanwhile, participation by broadcast TV and cable MSOs in the market is said to be essentially unanimous, despite Nielsen's refusal to be an active partner in the test. Here's our updated radio chart of who's in and who's out.

RBR observation: Even with most radio groups participating in the test, there are bigger obstacles for Arbitron to deal with. As Hollander noted yesterday when speaking of the PPM test - - "which is not going to cost us any money right now." Cox Radio CEO Bob Neil is dead set against the PPM technology, even if Arbitron were offering it for free (which it isn't), but cost is a major factor for other radio groups and they're finding the idea of a 40% price hike for ratings hard to swallow - - and that's IF Nielsen signs onto a joint venture to use PPM for TV and cable as well, which is still a big IF. Otherwise, a 65% hike for radio-only PPM is going to be really hard to sell to the industry. | More... |

Research shows: Less really is more
"Less is More" - - what else? - - was the hot topic for Clear Channel CFO Randall Mays yesterday as he spoke to the UBS Securities conference. Although he admitted that the clutter-cutting program may not be the answer to all of radio's problems, he said Clear Channel is committed long-term to LIM because it can't be wrong to service advertisers and listeners better. Noting that the question being repeatedly asked is whether advertisers can be persuaded to switch from 60s to 30s, Mays said Clear Channel can prove its case to anyone who will listen. "Our research has clearly shown that the efficacy of a 30 second spot is equally as good as a 60 second spot, especially in those instances where it has very strong creative behind it. The research does not show that there is any greater recall on an aided or unaided basis between a 15, a 30 and a 60 second spot, and so what we have said very clearly to advertisers is, look, you can take the exact same amount of money that you were spending in 60s and spend that in 30s and you increase your reach and frequency by almost 33%. That's a great value proposition to make to advertisers. And what we're finding is that we can get with the advertisers and show them that, we're having an overwhelming response," he said.

RBR observation: Mays references "Our research has clearly shown that the efficacy of a 30 second spot is equally as good as a 60 second spot..." well if memory serves us correctly this is the first request and concern from Kevin Gallagher, Chairman, AAAA Local TV/Radio Committee and Starcom SVP/Director of Local Investment Group in his memo sent to Hogan 12/03/04 RBR # 235, " Lack of Research. Currently, there is little or no research that documents either the potentially higher recall of either the first pod position, or a stand-alone "island" position. Therefore, it is difficult to recommend...." We hear ya Randall but can't see ya - light a match - so along with Mr. Gallagher's request everyone can see this research. Then the issue can move on with Less talk and More research.


Big changes at Susquehanna
Susquehanna Radio is getting a new boss, with Nancy Vaeth-DuBroff, currently VP/Regional Manager in Houston, moving to headquarters as President and COO. David Kennedy is moving up to President and CEO of the parent company, Susquehanna Media, as Pete Brubaker retires in February. "It's a wonderful company. We've got a lot of great people," Vaeth-DuBroff told RBR, saying she has no plans for making big changes - - and besides, the hand-over won't take place until February. She should know the company pretty well - - she's spent 24 years at Susquehanna - - but that's less than Kennedy, who's been with the company for 31 years. In addition to Susquehanna Radio, Kennedy will oversee Susquehanna Media's cable television systems and on-line applications development division.

Broadcasting down at Tribune
Tribune's television group was never a big beneficiary of the political ad bonanza, so it's a bit surprising that its TV revenues were down 2.4% in November to 109.6 million. The company said weakness in movie advertising was partially offset by increased in telecom and education. Radio/entertainment revenues dropped 20.9% for the month to 6.6 million, which was blamed on fewer syndicated shows being produced. Overall, the Broadcasting and Entertainment group saw November revenues decline 3.7% to 116.2 million. Newspaper ad revenues rose 4.2% to 269.3 million, with retail up 5.3%, national up 1.1% and classified up 5.5%.

TV's - DTV vote moves briefly to back burner
FCC Chairman Michael Powell has decided to postpone a vote on critical decisions pertaining to the transition to digital television, keeping it off of the agenda for the Commission's December open meeting. The reason: some equally important business on the telecommunications side. DTV will be on the agenda as early as January and almost certainly in Q1 2005. Spokesperson David Fiske told RBR that Powell did not think he could burden the Commissioners with two big ticket items at the same time. As important as the DTV transition is, it simply is not as pressing as is the telecom issue, and Powell wants to make sure neither gets short shrift. RBR note: The January debut issue of Radio & Television Business Report - The Real Business Magazine- has a close up look at what DTV really means. The report filed by TVB President Chris Rohrs entitled: 'Taking a look at Digital TV' - states in part - "....This can't be. What's going on here? In a word: Disappointment." Contact April McLynn 703-492-8191 ext 200, to get the DTV report.


Adbiz©

WPP, Interpublic cautious on 2005
Two of the world's largest advertising groups sounded a cautious note on the coming year at this week's UBS and CSFB conferences, even as their clients are expected to keep budgets robust in 2005. WPP Group, the world's second-largest advertising and marketing company, said it expects 15% earnings growth in 2004, but noted its growth could slow in 2005 and 2006 due to U.S. economic conditions. Interpublic Group said it had assumed a conservative model for organic revenue growth, excluding the impact of currency fluctuations and acquisitions, through mid-2006 as it works through an overhaul of its disparate businesses. "A negative factor next year will be what's happening in America, whether the economy will be under control," WPP Chief Executive Martin Sorrell said at the Credit Suisse First Boston media conference in New York, adding "when America sneezes, we all catch a cold." Sorrell expects WPP's earnings per share to grow between 10 to 15% annually in 2005 and 2006, excluding currency fluctuations. WPP's organic revenue, a closely watched industry benchmark of growth, was expected to rise 3 to 4% in 2004, Sorrell said. Interpublic CEO David Bell said the company's internal model assumed it could reach an operating margin of 12 to 15% by the end of the overhaul even if organic revenue growth trailed the U.S. economy. "We have not assumed anything other than low single-digit, sub-GDP organic growth," Bell said at the CSFB conference. "If we beat that, it becomes easier, but that's how we see the turnaround," Bell said later at a UBS media conference. At the same time, he expects to narrow the organic revenue gap with rivals as the overhaul comes to a close.

Stoli unveils first TV effort on Spike TV
Allied Domecq Spirits and Stolichnaya vodka, announced the launch of the genuine Russian brand's first-ever television marketing campaign. Complimenting the recently unveiled multi-million dollar "Frozen" print advertising program, the new Stoli TV campaign will include product integration and commercials that will first be viewed on Spike TV. Created by Publicis Worldwide NY, Allied Domecq's AOR, the new spot, called "Frozen Neighbors," depicts the effects a totally frozen apartment has on the neighbors of the surrounding flats. We see the man who lives upstairs put his feet on the floor and is surprised to find that it is coated with a layer of ice. A neighbor on the other side discovers that the contents of her bathroom cabinet are frozen solid. The man in the apartment below is shown on a stepladder, fiddling with icicles on a ceiling fixture. The spot ends by cutting to the Stoli apartment, which is completely and utterly frozen. The tag is, "Stoli Genuine Russian Vodka: Best Chilled." "Stoli vodka's 'Frozen' print, radio and television advertising, as well as our point-of-sale and on-premise promotions, are all crafted to deliver our core consumer proposition - that Stoli vodka is best enjoyed ice cold," said Simon Hunt, EVP/Marketing for Allied Domecq NA. "We are able to take this idea all the way through the line, conveying a consistent message and image for the brand." The spot will first be seen on the new hit reality show "The Club" beginning in December. Airing at 9 pm on Wednesdays, the show follows the pressures and demands of the people behind the scenes of one of the newest nightspots in Las Vegas. The show will also feature another first for the iconic vodka brand -- television integration. In a step beyond product placement, Stoli vodka will actually be integrated into a January episode storyline, having the onscreen characters interact with the brand in a natural fashion, in a natural setting.


Media Markets & MoneyTM
Be all that you can Beebe
John Beebe's New Mind Broadcasting is doubling in size, going from two to four stations, and upping its state total from two to three. He's getting WPFA-AM Fort Payne AL and WWON-AM Waynesboro TN from two companies owned by Gerald Dilts. The first station is going for 115K, the second for 92K. In both cases, Beebe has begun an LMA and will start making payments, of 500/month and 250/month respectively, all of which will count toward the total come closing day, when Dilts will receive the balance. Beebe filed to acquire WGTX-AM DeFuniak Springs FL back in the spring of 2003 for 220K (5/27/03 RBR #103) and followed with a 135K deal for WTKN-AM Daleville AL in the waning days of the same year (1/29/04 RBR #19). The current double deal will bring his total investment up to 552K.

Hawaii AM CP moves
If you find yourself saying that the station you are listening to sounds like KRUD, you are probably in or around Honolulu. However, you can't say it yet, because it isn't built, and by the time it is it'll probably have a new owner and, perhaps, new calls. The 1130 kHz stick-to-be is going from George S. Flinn Jr. to Hochman-McCann Hawaii Inc. for 60K cash. It'll go into an AM duopoly with the more pleasant sounding KORL-AM (we wouldn't mind being somewhere which features a heaping helping of coral as winter sets in here in the DC 'burbs). George Hochman and Byron McCann are principals of the buyer.


Washington Beat
House Dems urge DTV slowdown
A group of six Democrats in the House of Representatives have fired off a letter to FCC Chairman Michael Powell urging him to apply the brakes to the DTV transition process. They are concerned about the potential loss of service to poor Americans, particularly in rural areas. | More... |

Another pirate walks the plank
Rony Richard Louis, a radio pirate in the burgeoning Florida armada, Orlando fleet, low-dial squad, has been hit with the standard 10K fine. His 89.5 mHz operation was busted 1/4/03 by FCC agents, who nonetheless found it in operation again 1/15/04. Louis denied the second event, and further stated "I promise you that this kind of behavior will never take place anymore." The FCC noted that the first instance of violation was enough to warrant the full fine, and that a promise not to break the law in the future was not sufficient to get out of paying the piper for the break already committed.


Programming
Who'll succeed Howard Stern?
"We're gonna do something big at the right time," Infinity President Joel Hollander told UBS Securities conference attendees when asked about how he's going to replace Howard Stern's morning show on 27 Infinity stations. Hollander told the investors they'd be surprised if he named the big stars who've contacted him about getting into radio as Stern exits. But he warns that radio isn't as easy as it looks. He expects Stern to work through the remainder of his contract, but Hollander is "feverishly" looking for new talent to fill the void. "He won't be easy to replace, but everybody's replaceable," Hollander said. The Infinity boss also said that the company is looking closely at sports play-by-play deals as they come up for renewal and, with sports rights prices going ever higher, he says Infinity won't sign any contracts unless he's sure they'll make money. Hollander said the money saved from dropping sports contracts will be redeployed to other programming.

WCBS-FM NY taps Micky Dolenz
for morning drive
Micky Dolenz has been named the new morning show host for Infinity's WCBS-FM. Dolenz will debut on CBS-FM on 1/10 as host of the 6:00-10:00AM show Monday-Friday. The famed television star, musician, Broadway performer and director previously co-hosted the station's morning show on 10/7. "Mickey is a renowned entertainer whose diverse background and overall upbeat view of life makes him the perfect person to host morning drive on the station," said Chad Brown, VP/GM. "Following his October appearance we immediately realized that Mickey had a special connection with our listeners. The phones never stopped ringing and people were still reminiscing about him days later. We knew we had something special that day and we're thrilled to add Micky to our lineup permanently." He is most well known for his role as a member of The Monkees and star of the series of the same name. Dolenz, along with Peter Tork, Davy Jones, and Mike Nesmith, starred in the hit television show about a rock 'n roll band from 1966-68. Between 1966 and 1970, The Monkees released nine albums plus a greatest hits compilation.


Transactions
KAIR AM & FM Atchison/Horton KS from KNZA Inc. to Mark V Media Group Inc.

WKXL-AM Concord NH from Embro Communications LLC to New Hampshire Family Radio LLC.

| More... |


Stock Talk
News mixed; stocks down
A drop in oil prices wasn't enough to boost stock prices, as traders also looked at a government report showing slow growth in worker productivity. The Dow Industrials dropped 106 points, or 1%, to 10,441.

Radio stocks went along for the ride. The Radio Index was off 2.495, or 1.1%, to 219.537. Spanish Broadcasting System had a tough day, dropping 5.5% for no discernable reason. Beasley was down 3.5%. Sirius Satellite Radio shot up 11.4% after announcing a factory installation deal with Toyota. XM said it was expanding its own Toyota deal, but it rose only 1.8%.


Radio Stocks

Here's how stocks fared on Tuesday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

36.94

-0.52

Jeff-Pilot

JP

49.81

-0.83

Beasley

BBGI

16.20

-0.58

Journal Comm.

JRN

17.10

-0.17

Citadel CDL
15.06 +0.01

Radio One, Cl. A

ROIA

13.96

+0.04

Clear Channel

CCU

33.20

-0.43

Radio One, Cl. D

ROIAK

13.93

-0.07

Cox Radio

CXR

15.60

-0.09

Regent

RGCI

5.80

-0.10

Cumulus

CMLS

15.17

-0.05

Saga Commun.

SGA

17.00

-0.06

Disney

DIS

27.10

-0.22

Salem Comm.

SALM

24.45

-0.52

Emmis

EMMS

18.28

-0.03

Sirius Sat. Radio

SIRI

9.01

+0.92

Entercom

ETM

34.68

-0.18

Spanish Bcg.

SBSA

10.08

-0.59

Entravision

EVC

7.67

-0.08

Univision

UVN

28.55

-0.40

Fisher

FSCI

46.40

-0.08

Viacom, Cl. A

VIA

36.36

-0.51

Gaylord

GET

37.39

-0.71

Viacom, Cl. B

VIAb

35.80

-0.37

Hearst-Argyle

HTV

25.33

-0.16

Westwood One

WON

23.86

+0.28

Interep

IREP

0.80

+0.12

XM Sat. Radio

XMSR

38.41

+0.68

International Bcg.

IBCS

0.02

+0.01

-

-

-

-

-



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Send Us Your OpinionsWe want to
hear from you.

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

This reader responds to our WHFS observation from the AdBiz story, "Ad execs say US radio business diminished" (12/6 TVBR #236).

WHFS Had It All Right- Just Ask XM and Sirius

It is interesting that you single out WHFS-FM, Baltimore/Washington as a prime example of "format tweaking going wrong" for Infinity Broadcasting. Prior to its sale, WHFS was indeed a prime example of independent formatting going right. Disc jockeys were given the liberty to do their own programming, to move off the "top 40 playlist" and to utilize thematic formatting...There was much more than "album rock." It was the norm to hear a "block" of songs along a particular theme...Mississippi Delta blues, rockabilly, songs of protest, etc. etc. WHFS built an incredible listenership and really became the platform for the development of alternative music throughout the country. Radio companies could learn a great deal from studying what made WHFS tick. And yes, I understand the short- and even medium-term "economics" behind the formatting change. Then again, I'd challenge station management to track where their listeners have migrated over the last ten years. Some I guess, to Clear Channel's watered down "Classic Rock top 40" formats. Around Baltimore, perhaps to upstart WRNR in Annapolis (founded by former HFS management). Maybe more to satellite radio.

Larry Grimes
President
W.B. Grimes & Company
Gaithersburg, MD


Arbitrends

Arbitron
Market Results
| Albuquerque |
| Baton Rouge |
| Charleston |
| El Paso |
| Greenville |
| Jackson |


Upped & Tapped

Abernethy heading
Fox O&O group
The man that brought you Fox News Channel and then Fox News Radio from the ground up is now upped himself. If you work at a Fox O&O station, meet your new boss. Jack Abernethy, who was formerly Executive Vice President of Fox News, has been named CEO of Fox Stations Inc., overseeing all of the company's 35 television stations. More in today's TVBR
For a One-On-One Close Up Look see RBR/TVBR Solutions Magazine Sept. '04 issue.
Read the interview in PDF format here.

Rose is picked
Arbitron has appointed Bill Rose to Senior Vice President, Marketing, US Media Services. In this newly created position, Rose will head-up all marketing efforts for the US Media Services division, which now includes Radio, Advertiser/Agency, Outdoor and the Product/Customer Services groups. | More U&T |


More News Headlines

November Digital
Solutions Magazine

Cutting inventory and the effects--GM Talkback
Larry Wert,
Pres/Gm NBC's - WMAQ-TV,
Tom Bender,
GM Greater Media/Detroit,
Mike Mazursky,
GM 4M Communications
page 6

Laying the Hits down -
Boom Boom Boom
Listen to past great air checks of
George Michael
WFIL-AM
Fred Winston's classic
NewYears Day Hangover Club &
Bob DeCarlo with Tommy Turntable
page 12

November 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 November Issue of RBR




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

RBR Exclusive: Infinity COO Joel Hollander Said to be a Go
Now confirmed: Infinity will join in the Houston market ranks of radio and television encoding leaving Radio-One, which, is in contract extension negotiations so it is logical to use encoding as a little leverage. The other and firm no participation is Bob Neil at Cox Radio. Now the question - will Nielsen join in the Houston process which has been encouraged by TVB President Chris Rohrs and the Nielsen Customer Alliance. RBR observation: It's Accountability Time - This is good a sign that Hollander is willing to step out of the box or the group head meeting room that includes Arbitron's Steve Morris and how many anti-trust lawyers. Bottom line - The group heads meet with Arbitron but lawyers have to be in the room. Morris leaves and nobody in the meeting can open their mouth to say a word - or it is anti-trust. So the meetings in many ways are just that - a meeting to have a meeting with no end result insight. As we look back just two years ago, October 2003, the RAB board meeting in Atlanta - RAB Pres/CEO Gary Fries was Dead Right then and now on Accountability. Believe us he showed with his lungs full of steam and the crowd then and many now are deer in the headlights. 12/07/04 RBR #237

Coen bullish on 2005
Radio was one of the disappointments in 2004, while TV outperformed his forecast, but Universal McCann ad guru Bob Coen is expecting 2005 to be a growth year for US ad spending, even though TV won't look very impressive against 2004 numbers inflated by the Olympics and political ads. He's forecasting the total ad spending will be up 6.4% next year, with national outperforming local.
RBR observation: Don't break out the bubbly just yet. See the full overview first. We have the charts and the full outline inside but TV "won't look good" and Radio growing somewhat slower than competing media in 2005. Internet advertising is a big Wow. You best start learning how to use this business model like what you are reading right this minute, RBR is not your normal email.
12/07/04 RBR #237


Visit MediaHeadHunters.com
Radio Professionals
Salem Communications, the leading U.S. radio broadcaster focused on religious and family themes programming, seeking experienced candidates in Radio Sales, Programming, and Management for pending acquisitions in Miami and Omaha, EOE. Forward resumes to: Allen Power, VP Operations
2970 Peachtree Rd. NW, Suite 700 Atlanta, GA 30305

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 [email protected] 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: [email protected]

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