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Welcome to RBR's Daily Epaper
Volume 23, Issue 240, Jim Carnegie, Editor & Publisher
Tuesday Morning December 12th, 2006

Radio News ®

Arbitron breaks into the 300s
With the announcement that four new measured markets are on their way this spring, ratings giant Arbitron takes its total over the 300 benchmark. One of the newbies, Aspen CO, will occupy the lowest rung on the ranking ladder at #301 with a 12+ population of 55.8K. The others are #234 Twin Falls (Sun Valley) ID (pop. 142.7K), #264 Grand Island-Kearney NE (pop. 111.3K) and #290 Hot Springs AR (pop. 82.6K). They join a pair of markets which are in the process of being measured for the first time as members of the Fall 2006 survey: #227 Las Cruces NM (pop. 159.2K) and #262 Kalispill-Flathead Valley MT (pop. 115.5K). Arbitron SVP Carol Hanley, pictured, underscored the company's commitment to serving smaller markets, saying, "The long-term trend among small-market broadcasters has been to work with Arbitron to create new, measured markets, even for towns in which the entire 12+ population could fit into the Rose Bowl with seats to spare." She noted that Arbitron's market roster has grown from a total of 262 at the time of the 1996 spring survey.
| Here are the rated markets to be |

RBR observation: This is good news for many and trust Arbitron will deliver the marketing necessary to put these radio markets and those stations on the radar screen in 2007. So much attention this year has been dedicated to PPM that many, including RBR, have to get refocused on all of radio and their needs to succeed. Not matter the size of the market or station owner, everyone needs ideas that work in today's competitive environment.

Publisher note: A new year will be here in two weeks so RBR and TVBR brand's 2007 the year to Work Smarter Not Harder. Stay tuned.

Former Commissioner attacks ownership rules
Harold Furchtgott-Roth wrote in the New York Sun that recent transactions, whether rumored, announced or filed, prove that broadcasting is just like any other industry and that it is in need of no more regulation than any other industry. Citing the deal between Liberty and NewsCorp. and radio sell-offs from CBS and Clear Channel, he said that ownership motivation is to "make a reasonable profit," and that gigantic size may be an impediment to that goal. Why, he wonders, will the transactions spark detailed time-consuming regulatory review while the recent Google/YouTube transaction is allowed to move forward quickly? He blames heritage regulation affecting the older media. He argued that the perceived need to protect against bias in the news does not apply, because no one company can control the market, and because the news, like other programming, "is most profitable when it reflects the interests and tastes of audiences." He argues that "rational business decisions" are driving the recent spate of transactions, and that customer demand drives broadcast quality, and that neither are driven by regulation. He concludes, "The media ownership rules, if they ever had a useful purpose, should now be abolished."


McDowell freed to vote on telco merger
FCC Commissioner Robert McDowell has laid off the FCC vote on approval of the pending AT&T acquisition of BellSouth, due to his prior employment with telecommunications lobbying firm CompTel. The result has been a party-line deadlock among the other four Commissioners. Now, Samuel L. Feder of the FCC Office of the General Counsel has given him the go-ahead to cast a vote. McDowell said he is reviewing Feder's eight-page opinion and a response Feder sent to Rep. John Dingell (D-MI), who believes McDowell's recusal should remain in effect. McDowell also urged his colleagues to relieve him of the need to make a decision while he studies the matter, saying, "In the meantime, I strongly urge the participating parties and my four colleagues to resolve their differences in the same amicable and unified manner they did in the similar merger between SBC and AT&T just last year." Feder cited as precedent an FCC decision to allow former Chairman Bill Kennard to participate in a proceeding on personal attack/political editorial rules despite the fact that he had previously been an advocate in the proceeding. He said concerns about the Kennard case should be seen as stronger than in the current McDowell case, so that McDowell's participation would be acceptable. "Regardless of precedent, however, you are free as an FCC Commissioner to abstain from participating in and voting on any proceeding," concluded Feder. "This authorization allows you to make your own decision. If you feel appearance concerns outweigh the Government's interest here or you have any other reason to abstain from participating, you are free to do so." Sen. Ted Stevens (R-AK) hailed the decision and prodded for a final vote on the merger ASAP.

Fritts signs on to WARN America
Former NAB President/CEO Eddie Fritts has signed onto an FCC panel to help administer the Warning, Alert and Response Network (WARN) Act. Called the Commercial Mobile Service Alert Advisory Committee (CMSAAC), it will work to disseminate emergency information to mobile devices, something his current place of employment - Global Security Systems (GSS) - specializes in. GSS's First Alert System used FM infrastructure and a chip implanted into mobile receivers to disseminate information. "I am honored to be selected to serve on the committee to help the FCC implement the WARN Act," said Fritts. "In today's mobile society, keeping first responders and citizens informed is more important than ever. The Committee's goal of working with mobile service providers on this initiative will lead to a more informed public. Radio has and will always be the reliable way to communicate during times of crisis. Local broadcasters have always been at the forefront of public service. The communities they serve depend on receiving timely information wherever and whenever they need it."


Media giants face the YouTube quandary
What's a media company to do? Do you sue YouTube for copyright infringement, work with YouTube and parent Google to promote your content or create a competing site? The Wall Street Journal says four media heavyweights are in discussions to band together to do the latter, although a deal is still far off. According to the WSJ, News Corp./Fox, Viacom, CBS and NBC Universal are talking to each other about the possibility of creating their own video website to compete with YouTube, which was recently acquired by Google for 1.8 billion. One option reportedly proposed by News Corp./Fox early in the year was to have the media companies post video content on MySpace, which just happens to be owned by News Corp./Fox, but that idea was shot down by the others. Even so, the basic idea is still alive and the WSJ said NBC revived talks among the four companies this fall. If they create their own video website, the giant media companies would control the revenue it generates. On the other hand, they are reportedly being offered big bucks - well over 100 million for Fox, for example - to willingly place their content on YouTube.

RBR observation: The problem with starting a competitor to YouTube is that YouTube already exists. Is a second one needed? Could a newbie ever catch up to the original? Even if the companies creating the site have their own content, would they have to pay big to attract good content from other sources to build buzz? Part of the mystic of YouTube was that it was not too slick and was not created by a big media company. A copycat created by a group of big, slick media companies could be a hard sell, no matter how much money you throw at it.

Sir Elton to be honored
The NAB Education Foundation has previously given its highest honor, the Leadership Award, to former presidents and a queen, among others. This time it goes to a knight - Sir Elton John, who is being honored for his fundraising to fight HIV/AIDS worldwide, His philanthropic efforts have raised 120 million bucks so far, with the count continuing. "Sir Elton John has served as a beacon to the world in the fight against AIDS. The NAB Education Foundation is proud to honor Sir Elton for his extraordinary dedication to eradicating this insidious disease," said NAB President and CEO David Rehr. The singer/songwriter launched the Elton John AIDS Foundation in 1992, saying he had been inspired by Ryan White, an Indiana teenager who died in 1990 after contracting AIDS from a blood transfusion. As a recipient of the NABEF Leadership Award, Elton John joins such notables as former President Bill Clinton, Queen Noor of Jordan, First Lady Laura Bush, former New York Mayor Rudy Giuliani, boxing legend Muhammad Ali, former President Jimmy Carter and First Lady Rosalyn Carter, and former First Lady Nancy Reagan. The award will be presented June 11th at the 9th annual Service to America Gala, sponsored by NABEF with support from Bonneville International.


Wall Street Media Business Report TM
Clear Channel sets record date
Now that December 7th passed without anyone stepping forward with a higher bid, Clear Channel Communications is moving ahead with preparations for a shareholder vote on the offer that is on the table from Thomas H. Lee Partners, Bain Capital and the Mays Family, officially known as BT Triple Crown Merger Co. Clear Channel has set 5:00 pm Central Standard Time on December 18th, next Monday, as the record date for the merger vote. Shareholders of record at that time will be eligible to vote on whether to approve the 26.7 billion buyout.


Ad Business Report TM

Carat ups 2007 forecast to 5.8%
Carat has raised its forecast for growth in global ad spend on advertising in 2007 to 5.8%, thanks to an improved outlook in Japan and the US. Carat's previous forecast for 2007 was for 5.5%. It also raised its forecast for 2006 growth to 6% from 5.7%. The most significant change comes from Asia-Pacific, the report said, expecting 7.4% growth for the region in 2007, up from the 6.8% it forecast in June. The biggest contributing factor is improvement in the Japan market, with a near doubling of spend for traditional and mobile Internet. US growth is being driven by this year's elections and the Internet, with online advertising growing by 20%. Carat lowered its growth forecast in Europe to 4.1% in 2007 and 4.4% in 2006. That's down from 4.2% and 4.5%, respectively.

RADAR now reports top Black, Hispanic DMAs
Arbitron announced that beginning with RADAR 91, audience estimates in the Top 50 Black and Top 50 Hispanic DMAs will be available via the RADAR PC2010 software suite. The Top 10, 25 and 50 Black and Hispanic DMAs are available as qualitative categories to be reported on their own or in combo with other socio-economic demo. On 12/18, Arbitron will release RADAR 91, with a sample size increased to more than 118,000 diarykeepers.

Diamonds, dogs
and dobros on radio

As radio enters its second week of the holiday season, a number of specialty advertisers hit the airwaves, according to the Spot Ten National chart this week from Media Monitors. Besides the usual year-round ad campaigns from radio's power advertisers like Geico (#1), McDonald's (#2), Verizon (#3), Home Depot (#4), AT&T (#5), Kohl's (#6) and RadioShack (#7), some other unique and heavy ad categories on radio are worthy of note this holiday season:
| Read More... |


Media Business Report TM
Gannett denies UK print sale report
Following the sale of Knight-Ridder, unwelcome overtures to buy the Boston Globe and the ongoing discussions to sell Tribune Company, rumors are swirling about other potential newspaper sales. Gannett, however, has moved quickly to quash a report that it has put its UK subsidiary, Newsquest, on the auction block. The Sunday Express in London, which is not a Gannett paper, reported that the US newspaper giant was reviewing its UK holdings, including some 18 dailies and hundreds of smaller newspapers, and might sell the unit for nearly three billion bucks. Not so, says Gannett. "There is no truth to the report in London's Sunday Express that Gannett is considering selling its UK subsidiary Newsquest. Newsquest is a valuable part of the Gannett Company," it said in a statement.


Media Markets & Money TM

EMF shaves one off Montana State U.
We're not sure what Montana State University - Billings is doing with an FM station in Gillette WY. They were playing Yellowstone Public Radio fare as KYPR-FM not so long ago, but why Wyoming? At any rate, the Class A at 88.9 MHz is headed for frequent buyer Educational Media Foundation for the modest price of 55K. A format switch to Contemporary Christian is no doubt in the immediate future if it hasn't happened already. Gillette is in unrated territory in the northwest quadrant of Wyoming.


Washington Media Business Report TM
Telecommunications nominations move forward
The full Senate seconded the recommendation of the Commerce Committee and gave unanimous approval to John M. Kneuer to continue in the job he's been doing, but now in an official capacity. That job - and he's going to need a particularly wide business card - is Assistant Secretary of Commerce for Communications and Information, National Telecommunications Information Administration (NTIA). Meanwhile, equipment manufacturer/distributor Harris Corporation will apparently be donating its Chairman/President/CEO to the Bush administration. The company says Howard L. Lance is expected to be named to the National Security Telecommunications Advisory Committee (NSTAC), where he will work on communications issues in the areas of national security and emergency preparedness.


Internet Media Business Report TM
Palm debuts Treo
Smartphone campaign

Palm, Inc. launched a 25 million worldwide marketing campaign to generate mainstream awareness of and attract new users to the Treo smartphone line. The six-month effort highlights Palm's new Treo 680 smartphone and encompasses a fully integrated media mix consisting of print, out-of-home, online, mobile and viral-marketing. AKQA developed the campaign. Palm believes that accessing the web while on the go is the next killer application. Palm is working with Fandango, Google, The Onion, Orbitz and Yahoo! in its new ads to demonstrate what makes a Treo smartphone unique and support its new tag, "Not just a cell phone. A Treo." The co-branded ads will run primarily in the US and Europe in print and online lifestyle publications including GQ, Lucky and Real Simple. The campaign includes Palm's first-ever SMS-activated kiosks, which enable people to select and view category-specific content on larger-than-life Treo smartphones. The kiosks are located at bus stops and window fronts in major metros, including Los Angeles, New York and San Francisco. The campaign is also tagged with the new URL www.onTreo.com. Palm street teams wearing bright-colored Treo clothing will be deployed in major metros to stimulate buzz and excitement in the viral marketing component. The street teams will interact with passersby and offer services such as making a dinner reservation; checking their eBay accounts; ordering tickets to a show; and getting the weather, news and directions, among other things - all on a Treo smartphone.


RBR Stats
NNN releases study of food media usage patterns
A new study released by the Newspaper National Network reveals that 53% of women who read the food section of their newspaper identify it as their single most useful source for food info. The study was conducted for NNN by Gallup & Robinson using a national web panel. 85% of respondents said that ads are of more practical value when found in newspaper food sections, versus 15% in women's magazines. 56% of respondents visit their local paper's website and identify the food section as their favorite content area after local news.
| See more findings here |


TVBR TV News
VNU begins streamlining
Nielsen Media Research Chief Information Officer Jack Loftus confirms that parent company VNU is seeking to cut costs companywide by 10%, but beyond that there is no detail on any cuts to be made at the TV ratings company. Loftus noted that VNU's savings will come through "a combination of cutting costs and people." Pink slips went out last week at many of the trade publications owned by VNU, which include such US titles as Billboard, The Hollywood Reporter and AdWeek. That job cutting across the VNU print publications was first reported December 1st by Folio magazine, which follows the magazine business. A number of jobs had been previously eliminated when VNU acquired Radio & Records and combined it with the now-defunct Billboard Monitor. While not providing any details of how savings will be made, Loftus said all of the reorganization will be completed by the end of 2007.

TVBR observation: You don't cook the goose that lays your golden eggs, so don't look for a lot of cutbacks at Nielsen Media Research, the most profitable part of VNU. The cuts at the trade publication division were easy to predict, since it is not a big profit center and there have been repeated rumors that VNU will look to sell more publications once it divests its European computer magazines. There is also room for streamlining at ACNielsen, the consumer data arm, which accounts for a major portion of VNU's workforce of 41,000 people. We note that the 10% total cost-savings goal is for the entire company, so some divisions will see cuts of more than 10%, while reductions at the cash cow, Nielsen Media Research, will be well below that and probably not even noticeable to clients.


Transactions
54M WKBN-TV Youngstown OH from Piedmont Television of Youngstown License LLC, a subsidiary of Piedmont Television Holdings LLC (Paul Brissette) to NVT Youngstown Licensee LLC, a subsidiary of New Vision Television LLC (Jason Elkin). Price is RBR/TVBR estimate, from contract stipulating base price of 46,932,500 plus assumption of obligations not to exceed 7.05M. Station is CBS affiliate on Channel 27 (DTV 41). Deal also includes WYFX-LP 62 Youngstown OH and WFXI-CA Channel 17. Both LPTVs are Fox affiliates. [File date 11/24/06.]

665K WHNR-AM Lakeland-Winter Haven FL. 100% of G.B. Enterprises Communications Corporation from Frankie Grover to Martin Santos. 165K advance payment, 500K to pay down debt. LMA 8/1/06. [File date 11/24/06.]

N/A WIMS-AM Michigan City IN from Vazquez Development LLC (Alexis Vazquez Dedelow) to Gerard Media LLC (Scott Federighi, Ric Federighi, Marc Federighi). Gerard returns 49% interest in Vazquez to Dedelow (WJOB-AM Hammond IN) and receives full stake in WIMS-AM plus 335K cash. LMA 10/9/06. [File date 11/24/06.]


Stock Talk
A day of modest gains
Stock prices edged up on Monday, but investors are waiting to see what the Fed does about rates. The Dow Industrials were up 21 points, or 0.2%, to 12,328.

Radio stocks were higher as well. The Radio Index gained 1.430, or 1%, to 151.901. Thinly traded Beasley was the big mover, up 7.3%. Entravision gained 2.1% and Cumulus was up 2%.


Radio Stocks

Here's how stocks fared on Monday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

44.32

-0.12

Hearst-Argyle

HTV

26.00

+0.10

Beasley

BBGI

7.67

+0.52

Journal Comm.

JRN

12.15

+0.03

CBS CI. B CBS

31.32

+0.39

Lincoln Natl.

LNC

63.31

+0.24

CBS CI. A CBSa

31.33

+0.44

Radio One, Cl. A

ROIA

6.70

-0.01

Citadel CDL
9.71 -0.05

Radio One, Cl. D

ROIAK

6.70

-0.01

Clear Channel

CCU

35.43

+0.10

Regent

RGCI

3.02

+0.01

Cox Radio

CXR

16.48

+0.17

Saga Commun.

SGA

9.16

+0.13

Cumulus

CMLS

10.66

+0.21

Salem Comm.

SALM

11.33

-0.15

Disney

DIS

34.52

+0.13

Sirius Sat. Radio

SIRI

3.81

+0.02

Emmis

EMMS

8.19

-0.10

Spanish Bcg.

SBSA

4.25

+0.10

Entercom

ETM

27.57

+0.42

Univision

UVN

35.42

+0.03

Entravision

EVC

7.94

+0.16

Westwood One

WON

6.77

+0.01

Fisher

FSCI

42.28

+0.14

XM Sat. Radio

XMSR

15.18

+0.33

Gaylord

GET

50.44

+0.03

-

-

-

-

-


Bounceback

Send Us Your OpinionsWe want to
hear from you.

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

Here's another report from
the field on HD availability

I too went in to a Best Buy yesterday and asked about seeing the HD Radios. Initially, I was in the area of the store that sold XM and Sirius receivers. The Best Buy salesman said he didn't know anything about HD Radio and sent me over to the wireless area of the store where portable analog AM & FM receivers were sold. The salesman in this area of the store said Best Buy didn't carry HD radio receivers. When I asked if he knew where I could purchase one, he told me Radio Shack. I went in to a Radio Shack and found they carried 2 models: a $250 (after $50 rebate) Bose model and a $125 (after $25 rebate) model. I wanted to purchase 3 of the $125 models for Christmas gifts and found out the store only had 1 in stock. The salesman told me I could order the HD Radio receivers and Radio Shack would ship the order to me within 2 business days without incurring any additional shipping costs. So I placed my order. This experience made me realize how much work needs to be done by the NAB and the Digital Radio Alliance to market HD Radio, increase manufacturing, establish distribution and retail channels and educate the U.S. that HD Radio is now available and the benefits of this new technology.

Ted Bartley
RTV Ventures
Irving TX




Below the Fold
Ad Business Report
Carat ups 2007 forecast to 5.8%
For growth in global ad spending...

Media Business Report
Gannett denies UK print sale report
Rumors are swirling about other potential newspaper sales...

Media Markets & Money
EMF shaves one off Montana State U.
We're not sure what is doing with an FM station in Gillette WY...

Arbitrends

Arbitron
Market Results
| Hamptons |
| Middlesex |
| Nassau |
| New York |
| Riverside |


Stations for Sale

2 College Town FM's NEast
Unrated market, 8x BCF @ 950K
Rated market stick @ 1.25M
[email protected]
or 781-848-4201 anytime


Market your Stations For Sale
in our daily epapers.
Contact June Barnes
[email protected]



Radio Media Moves

Scarborough to Houston
Cox Radio announced that Ed Scarborough has been named Program Director of KLDE-FM "K-Hits" Houston. He was previously PD at Clear Channel's KQXT San Antonio.

Holmes home at Jacobs
Eric Holmes will join Jacobs Media on December 18th to support the company's consultants and contribute to services provided to clients. Holmes has been on the staff of WWCD-FM Columbus, OH.

Roberts gets new
sleep schedule

Evan Roberts will no longer have to work while most of us are sleeping. Fresh from handling the 1:00-5:30 am shift at CBS Radio's WFAN-AM New York, Roberts is joining Joe Benigno as co-host of the mid-day show, 10:00 am to 1:00 pm.

DMR appoints new CIO
DMR, a provider of strategic marketing consulting and services for the broadcast industry, appointed Grant Szabo as Chief Information Officer. Prior to joining DMR, Szabo directed Macromedia's Professional Services Division and most recently managed enterprise application integration projects for H&R Block and the City of Calgary. Szabo will be leading DMR's next-generation database development initiative in preparation for the PPM roll-out.


More News Headlines

AURN realigns nets
for RADAR 92

American Urban Radio Networks announced new enhancements to its RADAR-rated networks, to debut in RADAR 92. Prior to that time, AURN will be using a RADAR 91 special tab to convey its new audience delivery. The STRZ Weekend Entertainment Network will be adding new programming and new affiliates to its lineup, which up ratings in the adult 18-34 and adult 18-49 demos. In January, AURN will be adding the weekend show "On the Air with Russ Parr" to its repping of Russ Parr Morning Show. In addition AURN's Pinnacle Network will be adding a number of new major market FM affiliates. Both Pinnacle and Renaissance will be increasing their inventories.

Prince gets Super
Bowl halftime gig

Most people agree that the artist once-again known as Prince has toned down his act in recent years, and the NFL and CBS are banking that he will be safe pick to headline the upcoming Super Bowl half time show. The entertainment spectacular has been a matter of great concern since the infamous Janet Jackson/Justin Timberlake wardrobe malfunction in 2004.

RBR observation: If for some reason Prince decides to perform without a shirt it would not be considered indecent, given his status as a bona fide male performer. He would have to have a wardrobe malfunction of epic proportions to get in trouble. Of course, CBS and the NFL would have to be deemed out of their minds if they do not put some sort of delay mechanism on the audio.




Ideas Working Now TM

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

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


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

RBR observation
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: 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. RBR sees 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.
12/11/06 RBR #239


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