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Volume 23, Issue 24, Jim Carnegie, Editor & Publisher
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Friday Morning February 3rd, 2006
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Radio News ®
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 Rosen exits, Pugh upped
at CC Radio
Now there are two major New York City clusters in need of a market manager. Not only is Barry Mayo leaving Emmis at the end of this month (1/18/06 RBR #12), but now Andy Rosen (pictured) has resigned from Clear Channel. A memo sent to CC Radio managers from CEO John Hogan says Rosen, who joined CC Radio in the AMFM acquisition, has decided to pursue other opportunities and, "We wish Andy all the best for the future." While Hogan searches for his next NYC Market Manager, Senior VP Rob Williams will oversee the stations. Meanwhile, Hogan has filled the Market Manager opening in Washington, DC created when Bennett Zier left to run Dan Snyder's new Red Zebra Broadcasting. Dave Pugh has been named Regional VP of the DC market. He had been Clear Channel's Regional VP in Detroit - - so, yet another opening to fill.
Small drop in December yields flat year for radio
The Radio Advertising Bureau came out with its latest revenue stats yesterday. Combined radio revenues experienced a slight 1% decline in December 2005 over the same month in 2004, enough to pull Q4 into the red at -3% and to erase any gains for the year as a whole. The silver lining may be getting LIM to LIM comps in 2006. Local led the downward slide in December with a showing of -2%, matched by the results in non-spot revenue. National's flat showing was the best radio could do in the saving grace department. Q4 was weak generally, down 3% largely due to a 7% decline back in October. The internals for the quarter included a -1% showing in local, -9% in national and -3% in non-spot. For the year, a 1% gain offset a 2% decline in national and a 1% decline in non-spot to produce the overall flat result. Stats are provided by Miller, Kaplan, Arase & Co.
RBR observation: We'll be listening in to the upcoming round of quarterly conference calls for some previews of 2006. So far, a few birdies are chirping off the record, and it ain't exactly a chipper tune that they're chirping. Stay tuned.
| RAB 2005 numbers by month |
 Fries calls for radio industry
to embrace change
Speaking to his last RAB annual management conference as President and CEO of the organization, Gary Fries urged his audience of radio executives to look to the future and embrace change. "The biggest threat to our industry is wanting to stay the same. If you stay the same, you will have no success," Fries warned. Speaking on the same day that RAB announced flat radio revenue results for the past year, he pointed to some positive news to be found in the lackluster figures from 2005. "14% of our billing comes from automotive and they've been in a flux. That's one billion of our revenue and it's been down 1%. In spot TV, it's been down 10%. In fourth quarter '05, newspapers experienced between a 15 and 20% drop in automotive. Compared to other media, we're down only 1% in automotive. That means we did something. Give yourselves a pat on the back," Fries told the audience. Looking to the future, the outgoing RAB boss said the digital age is opening new doors for radio and urged his listeners to embrace change and take advantage of new opportunities. And he noted that the advertising community is changing as well. ""What are advertisers trying to do? They're trying to get ROI. The challenge to radio is to constantly move and progress. When my successor comes, that person will take the RAB to a new level. Constantly look for being part of the future - - part of the change. Do not get locked in the comfort zone," Fries said.
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Journal Broadcast pacing up after soft Q4
Q4 may have been a disappointment to Journal Communications CEO Steve Smith, but there's already solid evidence of better days ahead. December radio revenues were up 4.2% to 8.9 million and TV revenues rose 24.8% to 11.3 million. In the company's quarterly conference call, company President Doug Kiel said TV revenues are pacing up in the double digits for Q1. Radio is starting off more slowly, he said, but is expected to be up in the low single digits for all of 2006. Journal officials are also upbeat about prospects for the three TV stations added to the group from Emmis for 325 million. Journal closed in December on WFTX-TV Fort Myers-Naples, KGUN-TV Tucson and certain assets (but not yet the FCC license) KMTV-TV Omaha, which it now operates under an LMA. Like all TV owners, Journal is looking at what will happen with the merger of UPN and WB into CW this fall. Journal operates one UPN station under an LMA in Green Bay and hopes it will get the market's CW affiliation, but management says it won't have a material impact on Journal if that doesn't happen.
Gap in the next nominations hearing?
The Senate Commerce Committee will consider the qualifications of a number of candidates for jobs with the federal government next week. One is looking for a gig with the Department of Commerce and four more are looking to sign on with the Department of Transportation. Notably absent for the 2/7/06 roster of nominees is Robert McDowell, who is widely believed to be the choice of George W. Bush to fill the fifth and final 8th Floor office at the FCC, restoring the Republican majority which has been AWOL since the departure of former Chairman Michael Powell last spring.
RBR observation: Chairman Kevin Martin must be wondering what it's like to be the kind of majority leader who has an actual majority to work with. Stay tuned...
 DTV deadline goes into law
The House of Representatives took a major step forward toward the future of television when it passed, by a razor thin two vote margin, the budget reconciliation bill sent back its way by wily Democratic senators last fall. Passing along with it were provisions for a hard deadline for the television analog spectrum giveback. The deadline is now officially 2/17/09. House Energy and Commerce Committee chair Joe Barton (R-TX) said, "The DTV legislation brings needed certainty to allow consumers, broadcasters, cable and satellite operators, manufacturers, retailers, and government to prepare for the end of the transition. It includes a strong consumer education measure. And it helps ensure that all consumers have continued access to broadcast programming, regardless of whether they use analog or digital televisions, or whether they watch television signals broadcast by a local station or subscribe to pay-TV." The bill will allow some of the returned spectrum to go to emergency first responders, with the rest going on the auction block to help defray the federal deficit.
RBR observation: The deadline, a split-the-difference compromise between Senate and House versions of the bill, is largely non-controversial. Democrats, however, generally are of the opinion that the bill does not allocate enough money for digital-to-analog down-converters to assure continued ability to receive television signals over the air among poor households without an MVPD subscription. Other controversies remain unresolved, chiefly the arm-wrestling between broadcast and cable over multicast must-carry. Congress is budgeting for the auction to bring in 10B - - in reality it could be as much as three times that much.
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| Wall Street Media Business Report TM |
Q4 Conference Calls
Journal beat expectations, but CEO disappointed
 "Clearly, in 2005 we did not achieve our financial plan," Journal Communications CEO Steve Smith told analysts, even as the company slightly outperformed expectations for Q4. Earnings were down 26.5% to 16.7 million, or 22 cents per share, right in line with the Thomson/First Call analysts' consensus. But net revenues from continuing operations were down only 4.5% to 195.3 million, a bit more than the 191 million that analysts had expected. Part of the shortfall was due to closing a hurricane-damaged Louisiana printing plant, but, as you'd expect, broadcast revenues were down in the absence of political advertising, which affected both TV and radio - - but TV much more so.
 CEO Steve Smith told analysts that it was a tough quarter for TV, but that the radio group showed strength in some of its developmental markets. TV revenues were off 10.6% to 24.9 million. Excluding newly acquired stations, TV revenues were down 21%. Radio revenues fell 2.5% to 22.8 million. All in all, broadcasting revenues declined 6.9% to 47.7 million and operating earnings dropped 9.5% to 13.6 million. Publishing revenues were down 3.8% to 85.4 million, with operating earnings down 14.6% to 9.4 million.
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Ad Business Report TM
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Krispy Kreme cooks up TV, radio ads
Krispy Kreme Doughnuts has launched a TV and radio effort with the tag, "Share the Love" in the Raleigh-Durham, Springfield, MO and Savannah markets. The 30-second TV spot opens with doughnuts going down a conveyor belt, then being coated with the sugary glaze. The song "Sea of Love" plays in the background. At the end, the v/o says "Krispy Kreme. Share the love," after promoting Krispy Kreme valentines and the heart-shaped doughnuts. Krispy Kreme is also reportedly running radio ads in four other markets and placing inserts in Sunday newspapers in 50 markets. Marketing Drive Worldwide Wilton, CT handled creative.
 Secondhand smoke campaign to
kick-off during Super Bowl
On Super Bowl Sunday, when tens of thousands of Minnesotans will be watching the most talked-about sporting event of the year -- the Super Bowl -- they will also see the launch of a new advertising campaign that's expected to keep people talking long after the big game. No stranger to innovative and attention-getting advertising, the Minnesota Partnership for Action Against Tobacco is sponsoring the new campaign about the dangers of secondhand smoke. Sunday's commercial is set in a crowded sports bar. As a man lights up a cigarette and exhales a cloud of smoke, oxygen masks drop from the ceiling in front of each bar patron. Much as a commercial airline flight attendant would, a voice instructs the patrons on how to use the masks to protect themselves from secondhand smoke toxins that are filling the room. With a tagline of "Secondhand smoke - No one should have to breathe it," the Super Bowl commercial is the first in a series of television spots that will be unveiled during the next four months. The statewide campaign builds on the success of MPAAT's first secondhand smoke advertising campaign launched in 2000, and includes advertising on the sides of buses, at transtops, billboards and shopping mall displays. The Centers for Disease Control and Prevention reports that secondhand smoke contains a mix of more than 4,000 chemicals, of which 11 are considered cancer-causing. Exposure to secondhand smoke is responsible for up to 3,000 lung cancer deaths and at least 35,000 coronary heart disease deaths nationwide each year.
 Interep picks Strata for Azteca America
Interep and Strata Marketing announced a long-term agreement to use Strata's Broadcast TV sales software for all Azteca America national ad sales. For Interep's first television rep firm, Azteca America Television Sales, Strata will provide electronic sales solutions that will allow Interep to send and receive proposals and orders, and exchange real-time sales information with sales managers at all Azteca America stations nationwide. In addition, Interep will be able to connect immediately with Strata's existing clients in more than 800 media buying offices nationwide. Strata's TV sales software applications will be based at Interep headquarters in New York and accessible in Azteca America stations throughout the United States, including those owned by McGraw-Hill, TVC, Una Vez Mas, and Azteca America.
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| Media Markets & Money TM |
Las Cruces broadcaster on a 'ROL
Bravo Mic Communications is doubling up in an unrated portion of New Mexico not too far from El Paso TX and the Mexican border. It already owns KVLC-FM in Hatch NM, and now it's getting KROL-FM in Las Cruces. According to brokers Bill Whitley and Jody McCoy of Media Services Group, the price for the station will be 1.4M cash. Bravo Mic's Michael Smith handled the transaction for the buyers, Ned. W. Bennett and Sandra G. Zane. The seller is Rio Grande Christian Broadcasting of El Paso.
Price revealed in Helen GA
The acquisition of WHEL-FM in Helen GA by Sorenson Southeast Radio has hit the FCC database (1/31/06 RBR #21), and it's coming home at 705K. Sorenson will pay 620K to Clear Channel, closing Radio Seoul Georgia's acquisition of the station from radio's biggest group, and will then pay 85K to Radio Seoul to get the station in the resale. Radio Seoul is headed by Earl Kim.
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| Washington Media Business Report TM |
 Cumulus painted into a 10K corner
The environs of Savannah GA was the home of the tower for WBMQ-AM, a tower which the FCC said was in need of a paint job, but which owner Cumulus didn't want to paint since they were planning to tear it down. Subsequent inspections by the FCC revealed the tower both still standing and still unpainted. Cumulus cited more than its overall record of compliance when asking for reduction or withdrawal of the 10K fine it was hit with. It was trying to tear down the tower, it said, but that act required approval from a number of different agencies. According to the FCC, Cumulus stated that "...once it met the specific requirements of one agency, another agency imposed different and sometimes conflicting requirements." The FCC did not allow any relief. It said that Cumulus should have been aware of the problem with the paint job and should never have allowed it to fall below standard in the first place, and that the "exceptional circumstances" Cumulus claimed were not exceptional enough to allow it to violate a rule.
RBR observation: We suspect if we were an airplane pilot who did not see and subsequently crashed into a shoddily-painted tower, we would not be much interested in the bureaucratic headaches experienced by the tower owner.
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| Ratings & Research |
Scarborough: Sports listeners are active investors
Scarborough Research released a study that finds All Sports radio format listeners are 27% more likely than the average adult to live in a household that has a financial investment. Other radio formats that stand out to the investment set include Classical (investors* are 26% more likely than all consumers to tune into this format), All News (26% more likely), News/Talk/Information (25% more likely) and Educational Radio (24% more likely).
| Read More... |
Super Bowl viewers toughest
audience for advertisers
OTX (Online Testing eXchange), a leading global consumer research and consulting firm, released the results of a study testing whether consumers respond more favorably to Super Bowl ads than other TV advertising. Given the intense media attention on the Super Bowl advertising blitz, researchers expected to see a higher emotional response to Super Bowl advertising. Instead, respondents actually found the ads to be less informative, less factual, and less emotive.
| Read More... |
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| State Association News |
Jennings to "Think BIG" with MAB
Sales guru Jason Jennings, author of "Think BIG-Act Small," has been booked to deliver the keynote address for the Michigan Association of Broadcasters' (MAB) annual Great Lakes Broadcasting Conference & Expo March 13-14 in Lansing. Jennings speech, "The Five Leadership Secrets of the World's Best Performing Companies," will highlight the second day of the meeting. More than 1,000 broadcasters and related industry professionals are expected to attend the event, which will include presentation of the Broadcast Excellence Awards, The MAB Foundation Career Fair, the MAB Foundation's Michigan High Schools & College Broadcast Awards, and a luncheon speech on diversity issues and disability concerns by veteran Michigan Broadcaster and motivational speaker Ron Bachman, whose legs were amputated when he was four years old.
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| Transactions |
850K WFAY-AM Fayetteville NC from Colonial Radio Group Inc. (Jeffrey M. Andrulonis) to Norsan Consulting and Management Inc. (Norberto Sanchez). 42.5K escrow, balance in cash at closing. [File date 1/20/06.]
400K WEFG-FM Muskegon (Whitehall MI) from Unity Broadcasting Inc. (Donald James Noordyk) to Citadel Broadcasting Co. (Farid Suleman). 10 option payment, cash. Superduopoly with WODJ-AM Whitehall, WVIB-FM Holton, WCXT-FM Hart & WLCS-FM North Muskegon. LMA 11/29/04. Station was excised from larger deal due to petition to deny. [File date 1/23/06.]
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| Stock Talk |
Plenty of worries on Wall Street
A government report showing a drop in worker productivity and an unfounded terror alert rumor sent stock prices skidding on Thursday. The Dow Industrials dropped 102 points, or 0.9%, to 10,852.
Virtually all radio stocks were down. The Radio Index fell 2.592, or 1.4%, to 177.797. A notable exception to the down trend was Journal, which rose 2.6% after reporting improving pacings. The day's worst performer was Spanish Broadcasting System, which fell 4.2%.
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| Radio Stocks |
Here's how stocks fared on Thursday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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38.98
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-0.46
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Hearst-Argyle
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HTV
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23.83
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-0.13
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Beasley
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BBGI
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13.74
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-0.19
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Interep
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IREP
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0.37
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unch
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| CBS CI. B |
CBS |
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25.65
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-0.49
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Jeff-Pilot
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JP
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57.30
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-0.41
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| CBS CI. A |
CBSa |
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25.75
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-0.55
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Journal Comm.
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JRN
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12.48
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+0.32
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| Citadel |
CDL |
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12.09 |
-0.33 |
Radio One, Cl. A
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ROIA
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10.56
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-0.32
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Clear Channel
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CCU
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29.06
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-0.35
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Radio One, Cl. D
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ROIAK
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10.57
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-0.36
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Cox Radio
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CXR
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14.26
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unch
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Regent
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RGCI
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4.95
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-0.04
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Cumulus
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CMLS
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13.07
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-0.22
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Saga Commun.
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SGA
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9.94
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-0.20
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Disney
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DIS
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25.10
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-0.17
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Salem Comm.
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SALM
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15.23
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-0.15
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Emmis
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EMMS
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18.26
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+0.35
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Sirius Sat. Radio
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SIRI
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5.54
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-0.17
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| Entercom |
ETM
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30.29
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-0.06
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Spanish Bcg.
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SBSA
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5.46
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-0.24
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Entravision
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EVC
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7.01
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-0.28
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Univision
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UVN
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31.50
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-0.35
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Fisher
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FSCI
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42.62
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-0.01
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Westwood One
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WON
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14.86
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-0.08
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Gaylord
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GET
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44.35
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-0.67
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XM Sat. Radio
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XMSR
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25.04
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-0.91
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Bounceback
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 We want to
hear from you.
This is your column, so send your comments and
a photo to [email protected]
 I read with interest Bob Neil's comments about not reporting record adds to the trades anymore (2/2/06 RBR #23). About 20 years ago we at the CBS/FM Stations Group stopped reporting for the very same reason. R&R and the rest were not very happy with our decision, but it was the right thing to do. I applaud Bob Neil for taking this step.
Robert Hyland
President of Television
Una Vez Mas
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Below the Fold
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Ad Business Report
Krispy Kreme is cook'n
Doughnuts launching campain with a radio. Tag line is, "Share the Love"...
Media Markets & Money
Las Cruces broadcaster on a 'ROL
Bravo Mic Communications is doubling up...
Price revealed in Helen GA
Sorenson Southeast Radio has hit the FCC database...
Washington Media Business Report
Cumulus painted into a 10K corner
Tower which the FCC said was in need of a paint job...
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Radio Media Moves
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Cox names HD boss
Cox Radio has promoted Greg Lindahl to Vice President of Cox Radio Interactive and New Technologies, a move that is described as signifying the company's continued commitment bringing HD Radio to the broad marketplace and enhancing the radio listening experience. Lindahl was a Cox station GM before being named President of Cox Enterprises' mp3radio.com joint venture and then launching Cox Radio Interactive in 2000.
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Stations for Sale
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Suburban NYC AM
Time Leased, profitable.
Comes w. 14 acre T/studio
site. 1.6M firm.
[email protected] or
lv msg @ 781-848-4201
NYC Prime Radio
Time for Lease
7 days a week available p/t-f/t Business, Foreign language, religious, Health, Infomercials accepted. 212-769-1925 [email protected]
TV & Satellite time also available. Station Inquiries welcome
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More News Headlines
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J. Parker Connor
dead at 79
Long time DC communications attorney J. Parker Connor, who also owned radio stations in the Salisbury-Ocean City, MD market, has died at age 79. According to local obituaries, Connor succumbed to congestive heart failure. Connor built and owned WWTR-FM Bethany Beach, DE, bought two other stations and also put WSBY-FM Salisbury on the air. Although he retired from the law practice at Mullin & Connor (now Mullin, Rhyne, Emmons, & Topel) in the mid-1980s and sold the last of the radio stations in 1997, his son said Connor never retired and remained an active real estate investor, developer and entrepreneur in Bethany Beach right up to his death.
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RBR Radar 2005
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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Cox stops reporting record adds
Cox Radio has become the second major radio group to tell its stations to stop reporting record adds to trade publications. Just over a week ago Cumulus Media told its PDs to stop reporting adds to the trades. CEO Bob Neil says his company's move wasn't prompted by the Cumulus decision, but came about in the company's annual review of its payola and plugola policies. "It just eliminates one more possibility of something going on that we wouldn't want,"- While such information may have been valuable to record companies and station programmers years ago, Neil said it no longer seemed very important now that there is electronic tracking of airplay.
RBR observation: Neil is correct on this one issue even if that nasty word 'Payola' was not mentioned. It was just a few months back NY-AG Eliot Spitzer had shaken down two record companies for 25 million without having to prove in court but it did put a few radio people out of work and an embarrassment to their companies. Yep years and years ago it was a good tool but today with electronic tracking of airplay there is no need. RBR waits to see if others follow both Cumulus and Cox.
02/02/06 RBR #23
What have we done???
By Jean Pool
Just why is it that we're hell bent on irritating the very people that we are trying to sell our products and services to? Clutter is the death of the media. Early Saturday morning call... a telemarketer that instructs me to wait for the next available operator. What are they thinking? Another favorite is my Sunday New York Times stuffed full of inserts that usually end up scattered on my hall floor. Then there is radio... driving along listening to Dr. Laura berating a call-in when you're interrupted by a commercial. Or one hour of Howard Stern's show of 18 commercials ...38 units ran. Geez, that barely gives Howard time to get in the F word. For a reality check read the entire article
02/01/06 RBR #22
RBR First: Technology waits for No One; It moves 'Fig' fast forward
Bill 'Fig' Figenshu to accept the position of Chief Operating Office (COO) of Softwave Media Inc. 'Fig' told RBR "I quote you guys (RBR) always say that Time and Technology waits for no one and the front line field of battle is in technology and I want to be where the fight and action is.
RBR observation: Technology helping to sell unsold inventory or known as Remnant Radio is probably the best blessing radio can receive to help any local operator because once that unit is gone unsold it is gone. The key with the various young firms in this technology marketing unsold inventory business is the station operator is in total control by giving one a better opportunity to project budgets and maintain sales pacing. RBR recommends read, learn, educate yourself 'Technology waits for No One.'
02/01/06 RBR #22
Country music consumer profiled
Radio is still the king followed by music videos on TV and Word of Mouth, according to new findings from Tunecom and BIGresearch. Read it and see the findings of this valuable research.
02/01/06 RBR #22
Adam Carolla gets ire of 3AF, AAJC over Asian awards parody
How to Win Friends and Influence People is not CBS Radio KLSX-FM LA morning man Adam Carolla's strong area and has angered both the Asian American Justice Center (AAJC) and Asian American Advertising Federation (3AF) for mocking the Asian Excellence Awards show on his 1/24 show. Both groups are threatening boycotts. CBS Radio spokesperson Karen Mateo tells us the bit was meant to be humorous and they didn't mean to offend anybody with the comments. No word yet if there was an apology issued.
RBR observation: To Carolla - Open wide take out left foot and insert right. To CBS - now take that left foot and kick oneself on that vertical smile. Suggestion to all of your new Free talent read the book - How to Win Friends and Influence People.
01/31/06 RBR #21
CBS looks to buy, even as it sells
Although CBS Corporation is looking to sell Paramount Parks and perhaps a few of its smaller radio stations, CEO Les Moonves is also on the hunt for acquisitions. "We're looking into getting into new media. Obviously we're strong in content and if there's the right content acquisition that fits with what we do and helps our distribution properties, then we would look! at that. I wouldn't mind expanding a bit internationally if there's the right opportunity there."
01/30/06 RBR #20
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Retail Sales Manger
This is where the new money is today and for the future. Not selling spots that can be erased. Clear Channel- Minneapolis, top 20 market, has this unique opening and seeking a unique person to teach with leadership. This is not a spreadsheet position but one of growth to build a retail team.
See Radio Careers
National Radio Services
Arbitron seeking that unique individual to join them as Account Manager to their National Radio Services team in NYC. Key duties: On the national side of the business serving as principal contact with-Networks-Syndicators-Rep Firms. Have the experience and skills in the network or rep business then join the Arbitron team where 'People make the difference.'
See Radio Careers
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