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Radio News ®
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 Analyst turns believer
SMH Capital analyst David Miller has turned bullish on Clear Channel, rating the stock a "buy" because he now believes the private equity buyout at 39.20 per share will go to closing, likely by the end of March. "In our opinion, the current arb spread of 23% represents an opportunity too ripe to ignore," the analyst said in his upgrade announcement. Miller notes four levels of concern which have been depressing the stock price for Clear Channel. "1) Weak December pacings, with the RAB releasing data showing December national radio business down 12% and local business down 4%; 2) The rumored collapse of the Alliance Data/Blackstone deal; 3) News flow suggesting that CCU has put itself on a company-wide austerity program; and 4) Concerns about financing, obviously the most important tenet and reflective of wider credit spreads since the deal was announced in late 2006." But with the price beaten down so much, the SMH analyst has changed his call to "buy" for three reasons. "1) Bain Capital does not want to pay sky-high break-up fees; 2) CCU's austerity initiative was likely influenced by the sponsors themselves; and 3) CCU is still tremendously FCF generative, and should produce enough free cash in order to service 'consensus' terms. Yes, there is downside risk. Miller sees CCU shares falling to 25-26 if the buyout craters. But his call is that the deal is probably going to close in Q1 and anyone who buys the stock now will be richly rewarded with the 39.20 per share payout.
FCC set to place placement on agenda?
Watchdog Commercial Alert has been trying to get both the FTC and FCC to come up with new rules governing the advertising practice of product placement. The group taking a wide-ranging cross-media approach to the topic, and according to one report, the FCC may be ready to open an NPR on the topic. "We're running a campaign to require disclosure of product placement in all media, including TV, movies, videos, video games, books and 'adversongs,'" says Commercial Alert, which fired off a letter back in 2003 on the topic. The FTC, in a 2/10/05 reply, declined to do anything more than follow its existing case-by-case protocols. In an example, it saw no problem with judges on "American Idol" drinking out of Coca-Cola-labeled containers, since they made no comments about the quality of what they were drinking, and would therefore not require any special disclosure of a business arrangement between the soft-drink manufacturer and the network.
FTC did find a problem with a 30-minute infomercial which purported to be an investigative report but was in fact a commercial for a specific product. The FCC has still not responded to its letter, says Commercial Alert. But a report at tvweek.com notes that the FCC was prepared to put the issue on the table back during the 12/18/07 open meeting, tabling it due to a full agenda, and is now ready to try again. It is expected that FCC Chairman Kevin Martin (R) will join with Michael Copps (D) and Jonathan Adelstein (D) in moving the ball forward. The likely votes of the remaining two Republicans, Deborah Taylor Tate (R) and Robert McDowell (R) are unknown.
RBR observation: The FTC noted Commercial Alert's request that a product placement event we noted prominently with the word "ADVERTISEMENT" scripted onto the page. We aren't quite sure how you'd work disclosure into an adversong playing on a radio station somewhere. Perhaps you have to have a disclaimer, like "the second stanza was brought to you by Product X, and the modulation during the bridge was sponsored by Service Z." And if Product X happened to be a pharmaceutical, both video and audio services would have to work in a standard disclaimer on side effects and whatnot. It would probably drive sales departments right back into the business of selling spots.
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Democrats dominate Super Duper air wars
At this point in the 2008 presidential race, the biggest warchests have been amassed by Democrats, and it has been showing in the run-up to the critical multi-state Super Duper primary battle. The Democrats are spending freely, while the Republicans are picking their spots. New York Times reports that Barack Obama (D-IL) began hitting the airwaves in Super Tuesday states on 1/12/08 and has spent just shy of 11M. Hillary Clinton (D-NY) started a bit later, on 1/17/08, and has spent a bit less, 8M. Obama also bit on the Super Bowl, according to the Associated Press. Although no campaign bit on a national ad during the marquee televised event of the year, Obama bought 30-second spots out of local inventory in selected markets. NYT said its numbers on Republican candidates was less specific, but that it appeared Mitt Romney (R-MA) has sunk 2M into the Super Tuesday states, about double the 1M spent by John McCain (R-AZ).
RBR observation: Conventional wisdom has McCain in the driver's seat by Wednesday morning. The picture on the Democratic side isn't as clear, and if it continues to lack clarity as of Wednesday morning, that will be a major boon to the economies of the states lined up next on the calendar.
 Ed Wilson heading
Tribune Broadcasting
"There is tremendous upside at Tribune," declared Ed Wilson as he jumped to the company as President of Tribune Broadcasting. Wilson was previously President of the Fox Television Network and his resume also includes important executive titles at NBC and CBS. His appointment is the highest executive change since Sam Zell took over as CEO of Tribune. He succeeds John Reardon, who had held the post since late 2005 (11/14/05 RBR #223). So, what's the new challenge for a guy whose career has already been marked by major achievements? "The company has great stations in large, diverse markets where there is a constant demand for local news, information, and entertainment-and that plays to our strength. The combined resources of our TV stations, newspapers and web sites, give us a distinct advantage over our competitors in providing the most reliable, relevant, and interesting coverage of local news and events whenever and wherever viewers want it. We'll also be the first big media company that doesn't take itself too seriously. With Sam Zell in charge, we have a lot of rope to break the rules and do TV differently," Wilson said. Effective February 11th, he will be overseeing Tribune Broadcasting's 23 television stations, Superstation WGN, Tribune Entertainment and WGN Radio. "Ed is the most energetic and creative executive in broadcasting. Most people are too full of themselves to learn anything new before they ever get to the level of success Ed has achieved. As anyone who has ever been to the bar at a broadcasting convention knows, Ed is a great guy, who just happens to come out on top," said Randy Michaels, CEO of Tribune Interactive and Broadcasting.
RBR observation: Now that we know how Randy does his hiring, everyone looking for a job with the new Tribune Company will be hanging out at the bar at The Bellagio in Las Vegas during the April NAB Convention.
Arson blamed in NC station fire
Arson is being blamed for the Friday fire that destroyed a Morganton, NC radio station WCIS-AM (2/4/08 RBR #23). John Whisnant Jr., a three-time winner of Southern Gospel DJ of the Year award, tells The Charlotte Observer investigators told him the fire was possibly set to cover up a burglary at the station. A charred foundation and two walls are all that remain at the site, which was insured, he says. "The building was ransacked, with drawers pulled out of file cabinets and desks," says Whisnant. "Whoever did it was looking for cash. When they didn't find what they were looking for, they torched the place. It's heartbreaking. Fifteen years of work up in flames."
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| Wall Street Business Report TM |
Lincoln Financial posts down quarter
 Lincoln Financial Group reported that Q4 net income was 113 million, or 42 cents per share, down from 381 million and EPS of 1.36 a year earlier. A big factor in that decline was a net realized loss on investments of 71 million after tax relating to the sale of some of its media assets. The insurance company put all of its media properties up for sale a few months ago, but sold only its TV group and its radio stations in Charlotte. What remains of Lincoln Financial Media is being reported under "other operations" in the parent company's quarterly reports. For Q4 communications revenues were down 6.4% to 26.5 million and communications expenses rose 1.5% to 13.5 million.
Meredith boosts dividend
The board of directors at Meredith Corporation has approved a 16% increase in the company's dividend. The quarterly dividend payout will increase by three cents to 21 and a half cents per share. The higher dividend will be paid March 14th to shareholders of record on February 29th. Meredith owns 12 television stations, one radio station, 25 subscription magazines and many other special interest publications.
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Ad Business Report TM
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ASA named Hispanic AOR by Compass Bank
Anita Santiago Advertising (ASA) has been appointed Hispanic Advertising Agency of Record by Compass Bank, providing several campaigns for the bank's Hispanic outreach initiatives in seven states it operates. ASA's assignment in 2007 included creative, planning and buying, as well as select PR efforts, all of which will continue in 2008. ASA recently completed Compass Bank's first ever Spanish-language TV campaign promoting the bank's Build-to-Order Free Checking account. Compass also entrusted ASA with shooting the same campaign in English to run in markets where the Hispanic audience is consuming general market media. The TV spots started airing throughout Texas, New Mexico and Arizona on 1/21 and include buys on Univision, Telemundo, Telefutura, Azteca America and cable. The Build-to-Order Spanish effort also includes radio and print, as well as development of out-of-home, online and collateral materials.
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| Media Markets & Money TM |
Close encounters in upstate New York
The Watertown area is just about as upstate as you can get. We have word from brokers John Pierce and Dick Foreman that a pair of deals have achieved closure. David Stephens' KXOJ Inc./Stephens Family LP is the buyer in both. It's paid 6.25M for Regent Communications stations in Watertown, and 5.095M for Martz Group stations in nearby, unrated portions of the state. Pierce was on Stephens side of the negotiating table; Forman represented both sellers. The Regent Watertown properties included WFRY-FM, WCIZ-FM, WTNY-AM & WNER-AM. Coming from Martz were WMSA-AM Massena, WVLF-FM Norwood, WRCD-FM/WNCQ-FM Canton, WYSX-FM Morristown and WPAC-FM Ogdensburg, all in New York.
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| Washington Business Report TM |
 LPFM app shot down
with 3rd adjacency rule
The battle over allowing LPFMs to shoe-horn onto the dial by being able to occupy frequencies in the 3rd-adjacent slot to existing full-power stations has been going on for some time. The FCC has even recommended to Congress that such allocations can be done without interference, and efforts on Capitol Hill to shoot down 3rd-adjacency protection have largely been able to get enough support to acquire the force of law. However, it hasn't become law yet, so the application of Iglesia Pentecostal Cristo Missionera to put an LPFM on 93.7 MHz in Lorain OH (near Cleveland) has been denied. The station would be too close to 93.1 MHz WZAK-FM Cleveland. The FCC agreed that granting the station would be in the public interest, and stated in testimony to Congress that in its opinion it could operate safely from the channel requested. It remains, however, bound by the law and therefore cannot grant the CP. Commissioner Michael Copps (D) issued a concurring statement noting that the denial was completely proper given the current state of the law. He said he hoped, however, that it would be the last time that an LPFM CP was shot down for this reason. "Hopefully Congress will act soon to amend the statute," and that applicants such as Iglesia get a second chance to build a station.
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| Entertainment Business Report TM |
CBS Radio News Super Tuesday coverage
added on C-SPAN 2
CBS Radio News coverage of Super Tuesday will be heard live on C-SPAN 2 tonight. Coverage is scheduled to begin on C-SPAN 2 at 8:00 PM, ET (pending the conclusion of the Senate's business that day), and continue until 12:00 midnight, ET. This marks the first time that C-SPAN 2 has simulcast CBS Radio News' continuing coverage of a major news event.
 Don Geronimo to quit
Don & Mike Show
Don Geronimo (left), half of Westwood One-syndicated afternoon drive "The Don and Mike Show," said yesterday on the show he's quitting and his last day will be 5/30. "I'm quitting...My heart is just not in this...This is a decision that I came to about a year ago...I made this decision not because I was defeated by loss, but because I am rejuvenated by life. So, Dan Mason, Michael Hughes and the rest of the jolly gang have been nice enough to allow me to take a hiatus, to see what else is out there. Radio is not something I can get out of my blood. I just don't know where I fit in right now. I need to get some down time, and see what happens next. Maybe on air, maybe off air. But for a while, no air." Geronimo has been through some rough times, including the death of his wife in a car accident in 2005. Other half Mike O'Meara (right) will continue the show with show regulars Buzz Burbank, Joe Ardinger, and Rob Spewak.
Adult Hits web content debuts from MJI Interactive
MJI Interactive announced the launch of its web content service for stations in the Adult Hits format. SiteFuel Adult Hits is syndicated web content, including daily music news, weekly artist profiles, and video selections relevant to listeners of Adult Hits radio. The service is produced automatically on station websites by MJI Interactive's editorial team and is available on a market-exclusive basis. SiteFuel benefits stations through increased website impressions and brand engagement. CBS' Jack FM in Dallas and Nine-FM in Chicago are among the first affiliates of MJI's new service. SiteFuel Adult Hits is MJI Interactive's 12th format-specific content service for station sites.
Lincoln Financial now programming WAXY-AM
Lincoln Financial Media - owners of South Florida stations WLYF-FM, WMXJ-FM and WAXY-AM - announced it has resumed programming and operations of WAXY-AM ("Sports Talk 790 The Ticket") from Primetime Media Group, LLC. The company is retaining the staff during the transition. Lincoln also owns or operates sports stations in Atlanta (WQXI-AM) and Denver (KKFN-AM, KEPN-AM).
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| Internet Business Report TM |
Nielsen Online updates online race to the White House
In the weeks leading up to Super Tuesday, from 1/1st to 1/29 Barack Obama drove the largest share of blog discussions among the remaining presidential candidates, with 0.59%. Democratic rival Hillary Clinton ranked a close second, with 0.51% of discussion. The three Republican contenders were evenly matched; John McCain and Mike Huckabee each garnered 0.29% of discussion, while Mitt Romney accounted for 0.28%.Obama's surprise upset in Iowa on 1/3 provided excellent fodder for online discussion, as did Clinton's comeback in New Hampshire and John McCain's emergence as the Republican frontrunner.
| See the tables here |
 WFAN.com gets major boost with NYG win
WFAN, the flagship of the 2008 Super Bowl Champion New York Giants, saw pageview increases of more than 80% on wfan.com. For each Sunday of the playoffs, www.wfan.com increased its daily traffic by double digits over the prior week's performance with peak periods immediately following the conclusion of the Giants' game winning showing. Among the myriad of content on wfan.com was live video streaming, audio blogs, and chats with a number of station personalities; podcasts from WFAN's morning, midday and afternoon drive shows; audio clips of player and coach interviews and soundbites from the press conferences held throughout the week in Arizona; as well as interactive features that allowed users to create their own call and submit predictions on the outcome of the game.
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| Ratings & Research |
Super Bowl advertisers "fumble" in search, social media
Reprise Media released its 4th annual Search Marketing Scorecard (SMS), which ranks Super Bowl advertisers based on the level of integration between their television commercials and presence in search and social media - essentially measuring how prepared each brand is to capture online interest and buzz.
| Among this year's key findings: |
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| Transactions |
N/A KMMJ-AM Grand Island NE from Mission Nebraska Inc. (Stanley A. Parker) to The Praise Network Inc. (Herbert P. Roszhart Jr., Gene W. Hansen et al). Unspecified debt assumption. Both parties are non-profit entities. [File date 1/4/08.]
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| Stock Talk |
A day for profit-taking
Traders locked in some profits on Monday after last week's stock market gains. After all, the economy is still an iffy proposition. The Dow Industrials were down 108 points on Monday, or 0.9%, to 12,635.
Radio stocks were lower as well. The RBR Radio Index declined 1.683, or 2%, to 82.002. Volatile Beasley dropped 16%. Regent was down 3.8%. Radio One had an up day, with its Class A gaining 5.6% and Class D 4.2%.
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| Radio Stocks |
Here's how stocks fared on Monday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron*
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ARB
|
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40.13
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-0.87
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Google
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GOOG
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495.43
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-20.47
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Beasley*
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BBGI
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4.75
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-0.90
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Hearst-Argyle
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HTV
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22.41
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+0.05
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| CBS CI. B |
CBS |
 |
25.55
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+0.04
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Journal Comm.
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JRN
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8.27
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+0.01
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| CBS CI. A |
CBSa |
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25.57
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+0.05
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Lincoln Natl.
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LNC
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55.30
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-0.79
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| Citadel* |
CDL |
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1.53 |
-0.06 |
Radio One, Cl. A
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ROIA
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1.70
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+0.09
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Clear Channel*
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CCU
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30.78
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-0.99
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Radio One, Cl. D*
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ROIAK
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1.72
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+0.07
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Cox Radio*
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CXR
|
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12.13
|
unch
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Regent*
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RGCI
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1.28
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-0.05
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Cumulus*
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CMLS
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6.34
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-0.25
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Saga Commun.*
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SGA
|
|
5.65
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-0.08
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Debut Bcg.
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DBTB
|
|
1.02
|
unch
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Salem Comm.*
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SALM
|
|
4.05
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+0.07
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Disney
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DIS
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30.90
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+0.24
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Sirius Sat. Radio
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SIRI
|
|
3.27
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-0.04
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Emmis*
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EMMS
|
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2.84
|
unch
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Spanish Bcg.*
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SBSA
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1.70
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-0.04
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Entercom*
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ETM
|
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12.20
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-0.28
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Westwood One*
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WON
|
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1.81
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+0.07
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Entravision
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EVC
|
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6.80
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-0.19
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XM Sat. Radio
|
XMSR
|
|
12.45
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-0.40
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Fisher
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FSCI
|
|
32.46
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-0.56
|
-
|
-
|
-
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-
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-
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*Component of the RBR Radio Index
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Bounceback
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 We want to
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Below the Fold
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Ad Business Report
ASA named...
Hispanic AOR by Compass Bank...
Media Markets & Money
Close encounters
In upstate New York a pair of deals have achieved closure...
Washington Business Report
LPFM app shot down
With 3rd adjacency rule, battle over allowing LPFMs to shoe-horn...
Internet Business Report
Nielsen Online...
Updates online race to the WH...
WFAN.com
Gets major boost with NYG win. Power of the web today...
Entertainment Business Report
Don & Mike Show
Don Geronimo, half of the long standing teams says, it quit...
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Stations for Sale
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 Market your Stations For Sale
in our daily epapers.
Contact
Jim Carnegie
[email protected]
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Radio Media Moves
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Davidson signs
Hispanic vet
Felix Perez, who boasts stops at ESPN Desportes, Univision and Katz Hispanic, is the new EVP at Davidson Media Group, Peter Davidson's rapidly expanding Hispanic radio organization. Perez will work with the groups GM and sales execs. Perez commented, "The blazing fast growth of such emerging Latino markets as Charlotte, New Orleans, Nashville, Louisville and Providence, among others, in which DMG has built market leading radio stations, is extraordinary." He plans to build on the head start DMG has in serving the Hispanic population in these markets.
Dicken to M2O Media
Mass 2 One Media, a leading on-air, on-line marketing and research company specializing in listener engagement, has named veteran broadcaster Jamie Dicken Vice President of Sales. Dicken brings 16 years of radio sales experience to the position, most recently NSM at KFMB AM/FM in San Diego for six years. M2O with sales partner Triton Media provides radio stations, clusters and groups the [eco] platform for driving ratings on air and extending the brand off air, online, attracting new local and national non-spot revenue.
TargetSpot adds Schnur
Streaming media ad platform TargetSpot announced Roger Schnur has joined the company as Senior Vice President in charge of sales. Schnur has worked at top traditional and online media outlets, including serving as a co-founder and SVP/Premiere Radio Networks, which he helped launch from a start-up to an IPO to its eventual 190 million sale to Jacor in 1998.
Foote adds
NABEF duties
The NAB Education Foundation has tapped veteran media executive Cornelius "Neil" Foote Jr. as the editor of its diversity business quarterly newsletter BroadReach. In addition to editing the business quarterly, Foote is an assistant professor of journalism at the University of North Texas specializing in electronic media, and also runs Foote Communications, a public relations and multicultural marketing firm.
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More News Headlines
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Bayliss roasters named
Greater Media CEO Peter Smyth will be roasted to a turn by an employee, a competitor and a politician. The John Bayliss Broadcast Foundation announced that this year's Bayliss Radio Roast will feature Rick Feinblatt, VP/Radio at Greater Media, Emmis CEO Jeff Smulyan and Smyth's friend Tom O'Neill III, CEO of O'Neill and Associates, but best known as a former Lieutenant Governor of Massachusetts. As is always the case, Smyth will get an opportunity to get in his own licks after hearing what they have to say on April 2nd. Keeping order at the black tie event will be Regent Communications CEO Bill Stakelin.
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RBR Radar 2008
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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CCU takes "body blows,"
still standing
Bear Stearns analyst Vic Miller says Clear Channel has taken some "body blows," such as the leaked cost cutting memo first posted on RBR.com and troubles with station sale deals, but he thinks the company can withstand some body blows because 2007 BFC could come in ahead of expectations. That's largely due to stronger-than-expected performance at Clear Channel Outdoor, owned 89% by CCU, which fellow Bear Stearns analyst Chris Ensley has upgraded to "Outperform." Miller believes the buyout by Thomas H. Lee Partners and Bain Capital at 39.20 per share will likely go to closing. If it doesn't, he sees CCU shares falling to a range of 25-26, but if his financial estimates are on target, he sees the real value around 34, which is still above where they have been trading lately. We've posted more of the thinking from these two analysts for you at RBR.com.
RBR observation: For a perspective in time RBR recommends you take a few minutes to scan and digest the Archives on RBR.com. Example: 5 years ago 2003 issue 24 - Clear Channel stock fared at 40.08 and by Friday that week issue #27 down to 37.70. Review CCU this week 2007, RBR issue # 24 - 36.43 and by Friday issue #28 - 36.65. After hard body blow last week, CCU closed Friday at 31.77. Patterns paint a picture and for complete analysis see RBR.com's the HOT LIST report #1
02/04/08 RBR #23
Pushing radio's PPM CUME story
Fans of Arbitron's Portable People Meter (PPM) have said the most important thing coming out of the new ratings system is that radio should adjust the way it sells advertising to promote the much larger CUME audiences reported under PPM. In Friday's monthly PPM update for reporters, Arbitron brought out figures from New York, where PPM is still in test phase, showing that radio stations in the market collectively have a daily CUME of 11.9 million, more than double the circulation of 5.6 million for all daily newspapers in the market combined. The data run had been suggested by Citadel CEO Farid Suleman. Indeed, although Citadel has only two stations in New York, they still out-CUMEd the New York Times and every other daily except the Wall Street Journal. The larger clusters of Clear Channel, CBS Radio and Emmis even topped the WSJ, with Clear Channel all by itself beating all of the dailies combined. More details from Arbitron on monthly PPM update in RBR
02/04/08 RBR #23
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RBR Classifieds
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Hard finding that key person
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