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Welcome to RBR's Daily Epaper
Volume 23, Issue 239, Jim Carnegie, Editor & Publisher
Monday Morning December 11th, 2006

Radio News ®

CBS could go a Googling?
The Google train of speculation keeps on chugging-this time Bank of America's Jonathan Jacoby says in a research note that Google might be viewing CBS as an attractive partner: "During an investor presentation this week, CBS CEO Les Moonves acknowledged discussions with 'Google and others.' It also recently hired former Allen & Co. banker Quincy Smith to oversee CBS's interactive strategy. Mr. Smith was involved in YouTube's recent sale to Google. CBS is the only major media company with a presence in each of the remaining traditional media where GOOG, for example, doesn't yet have a large footprint - TV, radio, and outdoor," Jacoby speculates.

RBR observation: Bottom line, Google is still for the most part in the remnant inventory biz and just announced official beta testing. The new Google Audio Ads are being sold just like Google's keyword search ads are sold-advertisers determine their campaign criteria and bid on the online marketplace. We can see Google being involved in YouTube ads for CBS content, but only facilitating a deal already announced in the CBS Brand Channel there. Westwood One, which has been hurting as of late, may offer up more prime inventory, but with Google taking 50% of the revenue in inventory deals with their 800 client stations, WW1 may be better off just dropping their rates. Now, let's say Google does buy a percentage of Westwood One's inventory to get more prime. According to RADAR, their most listened to network is WW1/CBS Primetime, with 4.9 million listeners. Take that, add in WW1/CBS Mix Weekend Network with 3.5 million, throw in a couple traffic networks, you might add 2.5 million. Even if they scored that much inventory, it still doesn't equal what arch competitor SWMX has in reach-11.9 million. In the real world, Google is talking to everyone. That is what their business is and that's where they're looking to go. They want to make inventory deals with traditional media. And yes, CBS has spoken with Google, just as Moonves has stated. RBR just does not see huge blocks of prime inventory going to them, anytime soon, that's all. Broadcasters want and need to control their inventory and pricing along with producing great content. Again, as you get into 2007 do your own research on the companies that are offering internet buying. Some are much better than others.

Industry groups petition Congress to bag the flag
The National Association of Broadcasters and the Consumer Electronics Industry fired off a joint letter to leaders in the Senate and House trying to head off "...any mandated, legislative approach on the audio flag," arguing that stakeholders intimately familiar with the nuances of this difficult issue are working on it. NAB's David Rehr and CEA's Gary Shapiro signed the letter. The two associations contend that 11th hour legislation in the 109th Congress "would jeopardize the rollout of HD Radio" just as it's beginning to gain traction. "During the course of the year, broadcasters have worked with the recording industry toward a private, voluntary agreement on content protection and combating piracy," they wrote. "While those discussions have been very productive, these meetings must ultimately involve other interested stakeholders. Broadcasters and manufacturers remain committed to finding a voluntary solution that balances the rights of consumers, protects copyright holders, and preserves the continued rollout of HD Radio channels and products."

Anti-consolidation forces
organize for Nashville forum

Although we'd suspect that anyone from the casual observer all the way up to alert media watchdogs such as RBR/TVBR could not help but notice that media ownership forums tend to attract only those members of the public vociferously opposed to media ownership consolidation, a wide-ranging coalition of groups is working to make sure they're well-represented in the audience at the Nashville forum on today. Free Press's Josh Silver made the call, saying, "This hearing is a long overdue opportunity for the public to weigh in on the crucial decisions that shape our media. Before letting Sinclair, Gannett or Clear Channel gather up more local media outlets, FCC Chairman Kevin Martin and the other commissioners need to hear how these Big Media firms are serving - or failing to serve - local communities in Tennessee and throughout the South." Consumer Union's Gene Kimmelman also weighed in, saying "If you already think local newspapers and TV news provide biased coverage, just imagine how much worse things will get if the government lets your local newspaper and biggest TV stations combine operations and dominate local news."

RBR observation: This coalition would be a mortal lock to own the audience if they didn't bother to lift a finger. There is no group called the 4Fs (Fear Factor Fanatic Foundation). There is no organization calling for an end to playlist variety so that only their favorite hits are played (although Arbitron regularly seems to find millions who apparently believe just that). We believe that there are arguments to be made for and against media consolidation within the broadcast community. The one thing we will never hear at one of these forums is a strong endorsement of the programming that people, of their own volition, tune into every day.
| Anti-consolidation coalition here |

Hollywood scripts approaching diverse reality
Advocates for the Hispanic community applauded television networks for improving ethnic diversity in casting their on-air fare. However, they were quick to point out that there is still a long way to go to bring casts on par with the make-up of the population. Asian-Pacific advocates were more lukewarm in their assessment and Native Americans found little to be happy about. "With the population of 14% and a purchasing power of over 700B dollars a year, the efforts of the networks to include Latinos points to an understanding of the importance of our community," said National Latino Media Council's Esteban Torres. "We thank the four networks for their continued commitment to the diversity initiatives, but expect better numbers in the next reporting period. Remember, this is our seventh annual report and although the overall grades at all four networks are encouraging, performance still lags way behind in proportion to our population and purchasing power. In other words, there is still much to be done and the process has to be accelerated." The Hispanic diversity report card awarded ABC an A-, gave CBS a B+ and presented both NBC and Fox with a respectable B. According to the Associated Press, CBS received the best grade from the Asian Pacific American Media Coalition, but it was only a C. The other three each received a C-. The American Indians handed out mostly Ds and Fs. A report from the NAACP is expected in January.

RBR observation: Radio is subject to what EOE statutes are on the books, but is largely immune from casting concerns. Formats and target audiences have a great deal to do with the ethnic makeup of the talent package, and in any case, since it takes to the air without pictures, the ethnicity of many is not readily discernible.

Executive Comment
Emancipate AM radio
I read the article with Frank McCoy about the proposed changes in allocations. As you know, we're still operating successful AM stations in our small markets. We were very disappointed that the FCC didn't allow AM stations to make frequencies changes beyond a minor change...three clicks either side of the present channel...outside of a major change filing window. I can appreciate that the FCC doesn't want AM stations to be able to pick up and move across the country as happened in the last major change AM window but what's wrong with allowing existing AMs to change to any channel as long as they don't change city of licenses? Years pass before a major change window opens and during that time the public could be better served. For instance, in four of our markets we could move from a high end dial position to a low dial frequency....tripling our nighttime coverage and more than double our daytime coverage in every instance. Some might say the old Ashcroft doctrine could be applied but the spectrum for a new frequency has been sitting there for years and no one has filed. Besides, if I file for a new channel on the other end of the dial, I leave my old frequency wide open for someone else to go after. It should also be considered that the days of new multiple tower directional AM facilities are over. You can't justify the cost in a small market and in the larger markets, there isn't the land available to build them if you could buy it. So, why hamper existing AM stations from improving their facilities and better serving the public? I hope others will join our company in asking the FCC to not stymie AM improvements and allow AM stations to change to any channel as a minor change as long as the present city of license is maintained.

Art Sutton
GA-Carolina Radiocasting

Wall Street Media Business Report TM
Street stuff
Hearst-Argyle is getting set to pay seven cents a share in dividends to shareholders of record as of 1/5/07. You need to have either Series A or B Common Stock. If you qualify, the payment will be delivered 1/15/07.

Emmis Communications is also paying out a dividend on 1/15/07 to shareholders of record on 1/1/07. The amount is .78125/share on its 6.25% convertible preferred stock, one share of which can be converted to 2.44 shares of Emmis Class A Common Stock at a conversion price of 20.495 a share.

Gannett said it enjoyed a 3.5% pro forma revenue gain for the month of November, with both its newspaper and broadcasting segments contributing to the positive result. Television was up 18.5% due to the hot political category, with a huge national/local divide of +48%/+1.4% respectively.

Tribune Company saw Political also good in their television division, which gained 9.4% in November. The entire broadcast/entertainment group, including the company's lone radio station, was up 6.9% for the month, to 107M.

Ad Business Report TM

RBR exclusive
Julie Roehm speaks out
on Wal-Mart agency review
Former Wal-Mart SVP/Marketing Communications Julie Roehm, who led the Wal-Mart agency review that chose DraftFCB and Carat and was abruptly fired from the mass retailer (12/6/06 RBR #236), with the review now opened again (12/8/06 RBR #238) explains her side of the story in an RBR exclusive: "At the end of the day an agency is a service provider not a product. It is not like buying a piece of software or a computer, it is the discovery and identification of a thought partner. To properly vet the correct partner requires that you get to know them as people. There is always a chemistry check in any agency review. It is standard practice. It allows you to get to know the people that will be a part of your team and to find out how well the two organizations might work together. In fact, one of the biggest negotiating points in a well executed agency contract is who will be part of that team. Another route of course is possible. That is the way of the procurement model which would require that you only understand the overhead, cost per hour and specifics of a service. It is my opinion that finding the proper agency partner requires that the former approach is taken. In the course of this pitch, we had meetings both formal and casual with all of the agencies involved, we had phone calls, breakfasts, lunches and dinners. We got to know each other as professionals and as people. I am proud to say that I have new friends from these agencies as a result of our time together. There are reams of books on companies who seek change and reams more of those who decide that there is either too much change or the change is not what they wanted after all. I cannot say what the situation is in my case but I can attest to the fact that as an agent of change, and a professional in my field, this review was done well, by a team of people that worked diligently to find the right partner for this effort. Cultural concerns or strategic changes are a reality that often can impact the final outcomes of any project."

RBR observation: There were plenty of rumors and accusations made off the record against Julie as reasons behind her termination. Some of which implied she became too personally involved with folks at DraftFCB. Who knows if all or some of them are true, or if they were to a degree comments made without really knowing the facts or as a scapegoat for other purposes. Some reports say she did not fit in with the "culture" of Wal-Mart. RBR asks, "Why hire a progressive marketer when what you really want was a conservative one?" Nonetheless, these are very strong accusations that have harmed her career and likely her personal life. In RBR's professional observation: Some of the folks who have made these accusations might need some proof someday soon.

Media Business Report TM
Food for thought from the chocolate wars
Both Hershey Co. and Mars Inc. are always looking way to grow, grab share and increase revenues. According to a recent Reuters report, Hershey's growth has been sluggish, resulting in a reduced expectations for 2006 revenues. Part of the blame fell on disappointing results from experiments with new products and utilization of spin-offs from the existing product line. Also, an analyst said top rival Mars was "increasingly assertive and changing the competitive landscape." We note that a lot of factors figure into this, but this note grabbed our attention. Part of the blame for the downturn at Hershey is said to be "a bare-bones advertising budget." Part of the credit for the success at Mars is said to be "increased advertising."

RBR observation: Hmmmmmm... guess advertising does work.

NYMRAD Introduces new ad campaign at Holiday party
New York Market Radio (NYMRAD) ignited the holiday season with its 23rd annual gala at the Marriott Marquis, December 1st. This year New York Market Radio's association introduced its new outdoor campaign, supported by Radio advertising, to promote the power of the medium. NYMRAD is spending a substantial amount of money to advertise the value and power Radio has to reach New Yorkers. Executive Director, Deborah Beagan says, "Radio has a lot to brag about. We serve over 14 million people a week and counting!" This is one of many figures NYMRAD will be marketing in the new year. Photo - From top left: Carat's Fred Coady, WNEW's Joe Kenavan; Spanish Broadcasting System's Frank Flores; Emmis NY's Dan Halyburton; Carat's Connie Betro; WNEW's Maire Mason and OMD's Liz Russo.

Media Markets & Money TM
Marra vows to buy WWOW
John Marra's Cause Plus Marketing LLC is going to enter the ranks of radio ownership with Oldies WWOW-AM in Conneaut OH. According to broker Ray Rosenblum, the pricetag for the standalone facility is 200K. Marra is acquiring the station from Larry Weiss's Developing Radio LLC. Conneaut is on Lake Erie in the extreme northeast corner of Ohio, about halfway between Cleveland and Erie PA.

InterMedia bags some game
Primedia Inc. has flipped 17 magazines and related radio and television programming to InterMedia for 170M. The titles include Guns & Ammo, Fly Fisherman, Game & Fish, In-Fisherman and other outdoor titles. The buyer will keep them together in a corporate package to be called InterMedia Outdoor.

RBR observation: Yep we can see radio and television publications programming content in Guns & Ammo since many in the biz shoot with blanks. Or we do the see the sign out on some companies like Gone Fishing. No apologies as it was just too good to pass up.

Washington Media Business Report TM
A Commission complaint if it ain't got that paint
Jamie Patrick Broadcasting Ltd. is yet another company caught up in the most recent FCC licensee compliance dragnet. The Bastrop, Louisiana company was cited for "...failure to register its antenna structure, failure to repaint or clean the antenna structure to maintain good visibility, and failure to exhibit required obstruction lighting." This laundry list of towering objections resulted in a notice of apparent liability to the tune of 13K. Meanwhile, the FCC found another Section 301 violator - that's the part of the code which is used to nab spectrum pirates - down at Okeechobee FL. Adam Troy Venters was hit with the standard 10K fine for unlicensed operation on an unspecified frequency.

Internet Media Business Report TM
CBS Interactive offering
"Top Model" mobile game

CBS Interactive and Hong Kong-based Artificial Life, Inc. will launch the first avatar-based mobile game tied to a major TV show for The CW's "America's Next Top Model." The mobile game, which lets avatars -- or virtual characters -- live on user's cell phones, will be available in the U.S. immediately and shortly thereafter in Hong Kong and in many other countries as well. In the U.S., the game will be available to Cingular and Sprint users depending on their cell phone. These consumers can download the game by going to either www.cwtv.com, www.botme.com or by sending a text message to a five-digit number advertised via commercials on The CW network. As part of the agreement with CBS Interactive, Artificial Life will develop several mobile games over a license period of two years. To play the "America's Next Top Model" game, players select a virtual representation of his/her favorite and least favorite contestants from the show. The main task is for users to interact with these selected virtual characters -- known as avatars -- as if they were real participants of the TV show. This means players must foster their avatar's modeling career through training and various challenges. The selection of the least favorable character allows players to play tricks on her. The game for the upcoming 2007 season will also have a viral, player-to-player component where users must send their avatar "on vacation" to a friend's cell phone, thus ceasing to take care of their own character for a while. When sent, the friend will see the character knocking on his/her cell phone screen with a suitcase in hand. If they welcome the avatar in, they will take on the responsibility of taking take care of her for a set amount of time. This send-a-character-on-vacation-to-a-friend option is likely to serve as a teaser to bring new players into the game. In the U.S., the "America's Next Top Model" mobile Avatar game will be available for an initial price of 5.99 to download the game. The game will be compatible with most mobile phones though some features of the game, storylines and general functionality will vary among wireless devices.

Entertainment Media Business Report TM
CC Radio launches on-demand
lifestyle programming

Clear Channel Radio's online division announced the latest addition to its on-demand content: lifestyle programs aggregating related content elements, available on demand. First up are programs serving fans of auto racing and the gay/lesbian community. "Race Day," launching in early January to coincide with the start of the NASCAR racing season, is expected to be available across the country on more than 500 radio station websites. A preview of the program's content starts tomorrow with the debut of Rascal Flatt's exclusive stripped performance on over 215 of the company's radio station Web sites. "Pride on Demand" launched 11/28 in its first 12 markets, including Miami, New York, Chicago and Honolulu.
| Read More... |

Monday Morning Makers & Shakers

Transactions: 10/23/06-10/27/06
All it takes is one transaction to make it look like a reasonably good week, and this was one of those weeks. Another plank in the CBS Radio sell-off hit the Commission's database, good for seven top-50 market FMs and almost 140M in value. Ten other agreements also came home to roost, and although three of them involved top-50 turf, it was marginal top-50 turf. None of the ten got into seven digits and combined they didn't make it to 5M.



Total Deals







| Complete Charts |
Radio Transactions of the Week
Wilks fattens up on CBS spinners
| More...
TV Transactions of the Week
Remains dormant one more time

14M KFGO-AM/KKBX-FM/WDAY-FM, KDAM-FM, KVOX-AM, KRVI-FM & KFAB-FM Fargo ND-Moorhead MN (Fargo ND, Hope ND, Moorhead MN, Barnesville MN, Kindred ND) from Capstar TX LP, a subsidiary of Clear Channel Communications Inc. (Mark Mays) to Radio Fargo-Moorhead Inc. (James D. Ingstad). 1.4M escrow, balance in cash at closing. Existing superduopoly. Buyer is spinning KFAB-FM to Northwestern College. [File date 11/24/06.]

1.5K KPHL-FM Pahala HI from Broadcasting for the Challenged Inc. (George S. Flinn Jr.) to Vineyard Christian Fellowship of Honolulu Inc. (Fali Tualaulelei et al). Cash. [File date 11/20/06.]

N/A KMAS-TV Denver CO (Steamboat Springs CO) from NBC Telemundo License Company, a subsidiary of NBC Universal Inc. (Jay Ireland) to Rocky Mountain Public Broadcasting Network Inc. (James Morgese). Donation. NBCU retains right of first refusal RMPBN decides to sell to commercial entity. Duopoly with KRMA-TV/DT. Station is on Channel 24 (DTV 10). [File date 11/22/06.]

Stock Talk
A mixed bag for radio stocks
Winners and losers were evenly matched on Friday with mostly minimal changes. A couple of standouts included Fisher, up 0.58 and Disney, up 0.25.

Radio Stocks

Here's how stocks fared on Friday

Company Symbol Close Change Company Symbol Close Change













Journal Comm.







Lincoln Natl.







Radio One, Cl. A




Citadel CDL
9.76 +0.08

Radio One, Cl. D




Clear Channel








Cox Radio




Saga Commun.








Salem Comm.








Sirius Sat. Radio








Spanish Bcg.
















Westwood One








XM Sat. Radio














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

Below the Fold
Ad Business Report
RBR Exclusive
Julie Roehm speaks out on Wal-Mart agency review...

Media Markets & Money
Marra vows to buy WWOW
Entering the ranks of radio ownership with Oldies WWOW-AM...

Entertainment Media
Business Report
CC Radio launches
On-demand lifestyle programming...

Makers & Shakers
All it takes is 1 transaction to make it look like a reasonably good week...

Stations for Sale

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Radio Media Moves

Bonneville to draw Drew for front office
Drew Horowitz is being upped to Executive VP, retaining oversight of operations in Chicago, Phoenix and St. Louis, and adding oversight of the transistion to HD and PPM for the entire company. His radio career stretches all the way back to an AE slot at WFYR Chicago in 1976.

More News Headlines

Power 105.1
shot in Manhattan

CC Radio's WWPR-FM (Power 105.1) NYC DJ Carl Blaze is in critical condition after being shot at least 13 times outside an apartment building in Manhattan. He was robbed, including his jewelry. Blaze airs Friday and Saturday nights there.

Interep offering Cumulus employees jobs
Interep CEO Ralph Guild noted as a follow-up to our story Friday (12/8/06 RBR #238) that Interep is offering employment to any Cumulus employees who prefer to stay at Interep: "That's our company policy and we standing by it. We are encouraging them to consider all opportunities, but know that they are not under pressure to make a poor decision."

Ideas Working Now TM

Start your new business year with our upcoming 2007 January
RBR-TVBR Magazine.

In January report Look For:
Media Association Presidents forecast their competitive media.
Like Cable - CAB's CEO
Sean Cunningham:

Q: What is your industry facing that needs to be overcome in 2007?
A: The call for greater accountability by clients can't be addressed by rushing questionable measurement products into the TV/Video advertising marketplace...

Contact & Discuss how you can Partner with RBR/TVBR

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

Ideas Working Now TM
View '07 Content Focused
Reports Calendar

TVBR - TV News

Saying something
that sticks

The last time we heard someone say "Heeere's Johnny," it was Jack Nicholson, who was trying to get to his wife for questionable purposes in Stanley Kubrick's film of Steven King's "The Shining." But Ed McMahon said it thousands of times, and it was the winner in basic cable channel TV Land's look at TVs Top 100 catch-phrases. A program is built around the list, airing tonight at 10 P.M. ET/PT, called "The 100 Greatest TV Quotes & Catchphrases." It has a little bit of everything. Neil Armstrong is on the list, as are ex-presidents John F. Kennedy and Richard Nixon. We list it here in case you want to use it to burnish your schtick or go over it with your audience. TV Land is a Viacom property.

TVBR observation: We note the presence of Don Adams' character Maxwell Smart who seemed to generate a new catch-phrase every week. "Would you believe..." made the list. The first thing we thought of and searched the list for, however, was "Sorry about that, chief." How that failed to be included is beyond us, which is of course half the fun of playing with this sort of list.
| Take a look here |

Time Warner Cable files suit against DirecTV
Time Warner Cable filed a lawsuit in the U.S. District Court for the Southern District of New York last week against DirecTV, claiming deceptive business practices and false advertising regarding The NFL Network. The complaint says said DirecTV ran newspaper ads in NYC, Green Bay and Cincinnati claiming some local market NFL Network games would be unavailable and that viewers wouldn't be able to see them unless they signed up for DirecTV. The ads didn't mention, however, that NFL games are available on local broadcast affiliates. TW Cable is asking for a permanent stop to the ads, damages and attorneys' fees. "These ads are blatantly false," the lawsuit claimed, citing ads claiming the 12/30 game between the NY Giants and the Washington Redskins will not be available to 4.4 million people in New York unless they join DirecTV. While DirecTV did agree to correct the ads, the suit says DirecTV still ran subsequent ads with the same claims in the NYC edition of USA Today that reiterated those same bogus claims.

RBR Radar 2006
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

More fallout at Interep
Cumulus Major Market Sales (CMMS), home to the former Susquehanna radio group, has closed their doors. Interep Chairman and CEO Ralph Guild was more upfront by stating Cumulus was made an offer it could not refuse. Dickey told RBR that Guild was correct that the offer made was very compelling and that it was good for the company and shareholders. Meaning money talks and everything else walks. So Interep again will be paid by KRG in a buyout that is in the double-digits or RBR estimates 3 times CMP's EBITDA it was brining in for Interep.

RBR observation: Why does it seem nobody or almost nobody is crying in their holiday eggnog? Well, it is called Guaranteed Money, green back dollars. Interep, which is consistently under pressure, saves by closing Cumulus Major Market Sales and the overhead that goes with it, namely people. Plus, Interep will receive steady income from the buyout of the contract which should give Interep cash flow to keep their bondholders happy. Cumulus Media Partners, like many, receives the mystical one year money revenue guarantee with a few perks from KRG. Remember reps will tell you they do not do deals of guarantees, but we all know it is there as this revenue is never seen at the station level, it all goes to the corporate piggy bank. For the most part everything remains the same at the station level demonstrating once again that money talks and everything else walks. Details and the line up of stations that booked out over to KRG see this report in RBR
12/08/06 RBR #238

Will internet advertising
eclipse radio?
That's what online market research firm eMarketer.com is saying. It predicts that internet use will continue its upward trajectory while overall advertising dollars remain relatively flat, making it only a matter of time before the category vaults over radio. It expects internet's total take to come in at 16.4B this year, which would amount to a 30.8% gain over 2005's 12.5B total and would represent a 5.8% stake in the total US advertising pie.

RBR observation: We've heard broadcast executives attributing current internet advertising as an example of experimentation, and that after advertisers realize its inherent weaknesses they'll be back. If broadcasters are going to make that a reality, they will have to saddle up their most reliable steed - one that the internet isn't particularly well suited for - and ride it until it's ready to drop, then ride it some more. The steed's name is Local.
12/08/06 RBR #238

Media coalition
petitions Commissioners
"Technological and marketplace developments - especially the growth of multichannel programming distributors and the Internet - have fundamentally altered the landscape in which the Commission's ownership rules were originally adopted." This statement is from a letter to all five FCC commissioners asking for regulatory relief. The NAB, NAA, all four big networks and numerous radio, television and newspaper groups both large and small are participating in the coalition.

RBR note: The Text of letter can be reviewed in RBR. Read the letter and if you Agree or Disagree send your comments along with photo to [email protected] as this is your column and you can and should share in the voice.
12/07/06 RBR #237

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