RBR's Daily Morning Epaper

Volume 24, Issue 242, Jim Carnegie, Editor & Publisher

Thursday Morning December 13th, 2007

Radio News ®

FCC tees up media, cable issues
for December meeting
Numerous elements of the 2006 Quadrennial Regulatory Review and other dockets, scrubbed from the FCC's November Open Meeting, are back on the agenda for the December meeting, pegged for next Tuesday 12/18/07. Some hot cable issues are expected to be dealt with as well. FCC Chairman Kevin Martin has indicated that the only change to the media ownership rules he is going to try to push through is elimination of broadcast/print cross-ownership restrictions in the nation's top 20 markets. Legislation to block any action whatsoever is pending in the Senate after clearing the Commerce Committee by unanimous voice vote last week. Martin and his four colleagues are to appear before that committee today. It is further expected that the Commission will put a national subscriber cap of 30% on cable multiple system operators. Other agenda items concern the promotion of diversified broadcast ownership, a report on broadcast localism, and a look at sponsorship identification requirements for embedded advertising.

RBR observation: The Sunshine Notice on this event says 10:30. Given the Commission's recent track record on Open Meeting punctuality, it remains to be seen if the relevant suffix to 10:30 should be AM or PM.

MMTC asks FCC to get it right
before moving on diversity
Without a solid definition of the type of companies which would stand to benefit from regulatory measure to increase diversity, MMTC has asked the FCC to do nothing at all, for now. "It is better to have no package at all until the Commission can agree upon a package that will neither confuse the public nor cause considerable harm to minority entrepreneurs," it wrote in a letter to FCC commissioners. MMTC's David Honig wrote, "While it appears unlikely that a race-conscious SDB (socially-disadvantaged business) definition could be adopted at this time, it is our hope that as the Commission completes the task of developing an SDB definition that can satisfy strict scrutiny, it can craft an interim classification that will include substantial numbers of minorities and women while also being race-neutral both in concept and implementation."

MMTC suggests using the Commission's Advisory Committee on Diversity in the Digital Age to set up a review process "which would naturally yield diversity of information and viewpoints and would be predictive of success in a challenging environment." It counsels against adoption of a simple "small business" classification, citing the low percentage of SDB owners in such businesses already in existence. Honig also pushes for further consideration of several proposals, including must-carry rights for LPTVs and Class A TVs, repurposing television channels 5 and 6 for FM radio, repeal of radio subcaps, and others.

Tribune expects Cubs sale
in first half of '08
Look for sales of the Chicago Cubs, Wrigley Field, related real estate and the company's stake in Comcast SportsNet Chicago to close in the first half of 2008, Tribune Company said in its latest update to investors, although no buyers have yet been announced. Before that happens, though, the company should be shed of its outside investors anyway. Tribune recently got the needed FCC crossownership waivers to allow it to complete the final phase of its going private buyout by Sam Zell and an Employee Stock Ownership Plan. Tribune reported that November was a down month, with total company revenues off 3.3% to 413 million. Broadcasting and Entertainment group revenues in November were 104 million, down 2.6%, due to decreases in television group revenue, partially offset by increases in radio/entertainment revenues. Television revenues fell 4.8% to 96.7 million due to the absence of political advertising, partially offset by strength in several categories including retail, corporate, health, food/packaged goods, telecom and restaurant/fast food. Radio/entertainment revenues rose 40.1% to 7.3 million, with no specifics offered by the company.

Sinclair fights payola/plugola charge
Television group owner Sinclair Broadcast Group is fighting an FCC Notice of Apparent Liability related to an appearance by pundit Armstrong Williams on at least one of its stations. Williams was found to have accepted cash from agencies in the Bush administration to use his television appearances to plug the No Child Left Behind program. The television show in question, says Sinclair, is not one of theirs, but rather is a program they aired via a syndication arrangement. They actually paid the producer of "America's Black Forum," Uniworld Group Inc., for the rights to air the program. That would be the opposite of benefiting from Williams' arrangement with the government.

Sinclair VP/General Counsel Barry Faber noted that this matter and the precedent it may set should be of concern to all broadcasters. "To our knowledge the FCC's political disclosure rules have never before been used to fine a television station for airing a public affairs program because a paid guest on the program may have received payment from a third party with an interest in what that commentator had to say," said Faber, adding "It is simply unworkable and unreasonable to expect broadcasters to interrogate every guest who appears on a public affairs show produced by a third party in attempt to determine whether the views expressed were in any influenced by consideration received by the guest. We are hopeful that once the FCC understands the impossibility of avoiding the situation complained of in the NAL, the lack of knowledge by Sinclair about the underlying facts which prompted the NAL and the erroneous factual assumptions which apparently underlay the issuance of the NAL, that it will be rescinded."

Tracking the candidates
Nielsen Company has to scoop on where the presidential candidates are making their early expenditures, and how frequently. Democrats as a group are spending more than Republicans, but nobody is spending like Mitt Romney (R-MA), and he's bought almost four times as many spots as the rest of the Republican field combined. The spending on the Democratic side is much more evenly distributed. The Nielsen figures combine television and radio spots. Iowa has been the prime beneficiary of most of the spending, with New Hampshire coming in a distant second. Very little cash has gone to other states, and only a small amount has thus far been invested in national cable.

On the Democratic side, the leading advertiser is Barack Obama, pictured, (D-IL, 10,311 spots); followed by Hillary Clinton (D-NY, 7,839 spots); Bill Richardson (D-NM, 7,305 spots); Chris Dodd (D-CT, 4,064 spots); John Edwards (D-NC, 2,642 spots); and Joe Biden (D-DE, 681 spots).

As we mentioned, Mitt Romney (R-MA) blows away the competition with 17,849 spots; followed by Ron Paul (R-TX, 1,454 spots); Fred Thompson (R-TN, 1,111 spots); John McCain (R-AZ, 945 spots); Rudy Giuliani (R-NY, 881 spots); Duncan Hunter (R-CA, 88 spots); and Tom Tancredo (R-CO, 9 spots).

Ad Business Report TM

Premiere looking for new DOS
We've confirmed with agency sources that Premiere Radio Networks EVP/Director of Sales Rhonda Munk Scheidel (pictured), not long after moving to Dallas, has lost the DOS title and is now in charge of the Dallas ad sales office only. No official confirmation yet from Premiere, but we did confirm Premiere President Charlie Rahilly and SVP/CFO Dan Yukelson were both in Dallas yesterday in meetings. Of course, Scheidel was also in meetings all day in The Big D yesterday.

RBR observation: This is a pretty big deal-it completes the Premiere changing of the guard. They went outside of Premiere to replace Kraig Kitchin and there's a good chance they'll go outside the company to replace Rhonda. This is a change that may affect their whole approach to staff and their business dealings. They don't have much of sales management bench there now. Kraig was really a one-man-band with Rhonda. They still have Cathie Mongarella who handles Eastern Sales out of NYC and Dan Metter who handles Talk. He's very strong with Talk and they won't likely move him away from that spot. There's too much money at stake with Rush, the new Glenn Beck contract and guarantees to mess with him at this point. So they may replace Rhonda with someone from outside Premiere and network radio as well. But chances are, Rahilly will go with someone who he trusts and believes in outside of Premiere, but within the CCU family. Nonetheless, remember, network radio is not spot and the learning curve is a lot steeper.On keeping Rhonda with the company, it’s a win-win situation--a win for CC Radio because it avoids any litigation (they haven’t closed yet) and they keep her experience. It’s also a win for Rhonda because she gets to stay in her home market.

TNS looks at ad spend by advertiser; category
According to data released by TNS Media Intelligence, during the first nine months of 2007, the top 10 advertisers spent a combined total of 13.3 billion in measured media, a reduction of 2.3% from last year. The pace of spending for this select group picked up in Q3, advancing by 3.1%. Extending outwards to the top 50 marketers, a more diversified group representing one-third of the measured ad economy, expenditures were down 2.2% YTD, to 34.3 billion. Outside the top 50, the segment which has been principally responsible for industry growth in recent years, spending rose 1.4% versus last year.
| Read More |

Strongest network radio upfront since Y2K
A network radio executive tells us we're in the largest network radio upfront since Y2K. Why? As we've said before-the WGA strike and lack of makegood inventory in the broadcast networks is causing the networks to have to rebate dollars back to advertisers. That money is going to network radio for its reach. And now cable network television is sold out as well, as many advertisers first scurried there.

Media Markets & Money TM

I don't think we're in Ohio any more
When we see cities like Cleveland and Dayton on a multi-station transaction list, we're thinking Buckeyes. But Volunteers would be more appropriate for a deal combining AMs in these two Tennessee towns with an AM-FM combo in Spring City. The stations are WBAC-AM Cleveland TN, WDNT-AM Dayton TN, WXQK-AM Spring City TN and WAYA-FM, also from Spring City. J.L. Brewer Broadcasting of Cleveland is selling the quartet to Paul Fink's East Tennessee Radio Group. The ultimate purchase price is 2.7M, and an LMA was scheduled to kick off 12/1/07. None of the AM stations overlap, so the cluster is a collection of AM-FM combos, and even that will undergo a shift. WAYA-FM is moving a few miles south to Decatur TN, and will at all times overlap WDNT. As a Spring City station it overlaps WQNT-AM, but that overlap will cease when it moves to Decatur, at which point it will overlap WBAC-AM in Cleveland.

Media Business Report TM

Classmates.com pulls IPO
Well, we won't find out after all just how much Wall Street thinks the social networking craze is really worth. Citing "current market conditions," Classmates Media Corporation has pulled its IPO, which had been scheduled for pricing this week (12/11/07 RBR #240). Actually, you can still own stock in Classmates Media and its Classmates.com website - just not directly. It is and will continue to be a wholly owned subsidiary of United Online, which trades under the Nasdaq ticker symbol UNTD. In addition to Classmates, major operations of United Online include NetZero and Juno. United Online said it expects to record transaction-related costs of approximately 4.5-5.5 million during Q4 in connection with its decision to withdraw the IPO, which had been expected to sell 20% of the company for an estimated 120-144 million.

Entertainment Business Report TM

Radio gets Retro
Retro Television Network has expanded into radio, launching RTN Radio, a syndicated radio service featuring chart-topping songs primarily from the '70s. RTN, which is owned by publicly traded Equity Media Holdings, is offering RTN Radio as a 24-hour per day satellite feed with no subscription fees or charges. The format allows for local inserts. "RTN Radio is the perfect mix for baby boomers, with a whole lot of the 70s and a dash of the 60s and the 80s," said Jeff Timpa, Director of Programming for Equity Media. As you have probably guessed, the Retro Television Network offers classic TV shows. It is designed for the digital multicast channels of full-power TV stations.

Ratings & Research

Another black eye for Arbitron
Subscribers to Arbitron's County Coverage service got a notice yesterday that they should download revised estimates to replace the electronic and printed versions already received. "We have discovered that some estimates reported in Arbitron's 2007 Radio County Coverage Service were averaged based on broadcast hours that did not fully include weekend hours. Monday-Friday audience estimates were not affected in any way for any station," Arbitron told its clients.

Transactions

100K KFIO-FM Wenatchee WA (East Wenatachee WA) from Douglas County Educational Radio Association (Thomas W. Read) to Educational Media Foundation (Richard Jenkins, Michael Novak). 10K escrow, balance in cash at closing. [File date 11/23/07.]

N/A KPSM-FM/KBUB-FM Brownwood TX from Living Word Church of Brownwood Inc. (Duane Sheriff) to BLM of Brownwood Inc. (Angela Kay Schum et al). Donation. Notes Buyer is non-profit. KPSM-FM is a commercial station, KBUB-FM is noncommercial. [File date 11/23/07.]

Stock Talk

They hate the Fed, they love the Fed
A day after traders sold off shares because they thought a rate cut by the Fed was too small, traders applauded a move by the Fed and other world central banks to try to ease the credit crisis. But the rally faded and major market barometers ended with only modest gains. The Dow Industrials rose 41 points, or 0.3%, to 13,434.

Radio stocks were mixed. The Radio Index declined 0.146, or 0.2%, to 97.544, another nine-year low. Saga and Regent each rose 5.3%. Beasley fell 4.8% and Radio One Class D dropped 4.4%.

Both satellite radio companies took a hit on word that key Members of Congress had taken the DOJ to task for trying to rush through merger approval. Sirius was down 6% and XM 9.9%.

Radio Stocks

**Here's how stocks fared on Wednesday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		41.22	-0.07	Google	GOOG		699.35	+0.15
Beasley	BBGI		6.09	-0.31	Hearst-Argyle	HTV		21.44	-0.56
CBS CI. B	CBS		26.26	-0.25	Journal Comm.	JRN		8.78	+0.04
CBS CI. A	CBSa		25.87	-0.67	Lincoln Natl.	LNC		58.62	+0.33
Citadel	CDL		2.07	+0.01	Radio One, Cl. A	ROIA		2.18	-0.08
Clear Channel	CCU		34.49	-0.45	Radio One, Cl. D	ROIAK		2.18	-0.10
Cox Radio	CXR		11.54	-0.02	Regent	RGCI		1.59	+0.08
Cumulus	CMLS		7.54	-0.18	Saga Commun.	SGA		6.91	+0.35
Debut Bcg.	DBTB		0.60	-0.05	Salem Comm.	SALM		6.94	+0.22
Disney	DIS		32.28	+0.52	Sirius Sat. Radio	SIRI		3.29	-0.21
Emmis	EMMS		4.15	-0.03	Spanish Bcg.	SBSA		1.85	+0.02
Entercom	ETM		14.95	+0.01	SWMX	SMWX		0.01	+0.01
Entravision	EVC		7.39	unch	Westwood One	WON		2.14	+0.04
Fisher	FSCI		37.47	-0.38	XM Sat. Radio	XMSR		13.21	-1.45

Bounceback

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Below the Fold

Ad Business Report
Premiere looking for new DOS
Confirmed with agency sources Rhonda Munk Scheidel no longer holds DOS post...

TNS looks
At ad spend by advertiser; category top 10 spent a combined 13.3 billion...

Media Markets & Money
We're in Ohio any more
Seeing cities like Cleveland & Dayton on a multi-station transaction list, we're thinking Buckeyes. But...

Entertainment Business Report
Radio gets Retro
Retro Television Network expands launching RTN Radio...

Stations for Sale

Silver City, NM
Powerful Hispanic FM
Lovington, NM
Heritage AM/FM Combo
Explorer Communications
E-mail: [email protected]

Seller Financing Available
Mississippi FM
Buy or Lease Studios, Tower
Gordon Rice Associates
(843) 884-3590
or E-mail Gordon Rice

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Contact
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Radio Media Moves

Austin to KABC
Former Katz Radio Group sports marketer Jim Austin will join Citadel's KABC-AM Los Angeles next week as Director of Sports Sales. Austin will be involved in marketing the return of the LA Dodgers to KABC.

Upped at News Corp.
News Corporation has named Teri Everett its chief spokesperson as Andrew Butcher returns to his native Australia after 20 years with the company. Everett retains the title of Sr. VP of Corporate Affairs and Communications, but will relocate from LA to HQ in NYC. Julie Henderson has been promoted to Sr. VP of Corporate Affairs and Communications, based in LA. She was previously Sr. VP of Communications for the company's Fox Interactive Media unit.

Out the door
SWMX Inc. reported in an SEC filing that it has received the resignation of James Caci from his position as CFO, effective January 4, 2008.

More News Headlines

XM targets businesses
XM Satellite Radio has contracted with PlayNetwork to manage commercial business sales and service on behalf of XM. The new "XM for Business" service will be marketed by PlayNetwork's specialized direct-sales workforce.

40M judgment
against CCU
The Knoxville News Sentinel reports that a federal jury in Tennessee has ruled in favor of a local Internet streaming company and ordered Clear Channel Communications to pay it 40 million bucks. Eonstreams, which once provided streaming for some CCU stations, claimed that a 2004 letter agreement made it the "preferred streaming service partner" for CCU stations for a three year period. But CCU denied that the letter was a binding contract and went with a competing service in 2005. The jury, however, ruled in favor of Eonstreams, now owned by VitalStream Holdings.

Dielectric signs
with Sutro Tower
in San Fran
Dielectric Communications announced that Sutro Tower, Inc., has selected Dielectric as the provider of antennas, combiners, and transmission lines for its tower site in San Francisco. Sutro Tower's purchase, scheduled to be installed over the next three years, will complete the facility's transition to digital broadcasting, improve the systems coverage area, and allow the television broadcasters who use the tower to provide maximized DTV service to Bay Area customers. The new installation will benefit the 11 television, five FM radio, and 20 other commercial companies who lease space on the tower.

From the FYI dept.
We receive all forms of interesting email but late last night this email came to the editor's desk and had to share it with all. FYI - Look for likely fireworks tomorrow (today) when Senator Byron Dorgan (D-ND) questions FCC Commissioners tomorrow (today) (12/13/07) at the Senate Commerce Committee's oversight hearing for the FCC at 10:00 AM tomorrow. Dorgan is the author of legislation that would require the FCC to delay, and open up to meaningful public comment, its plan to revise media ownership rules. The hearing takes place in the Senate Commerce Committee's hearing room, 253 Russell SOB.

RBR note: Ok see anything that stands out? How about the where it will be held. 254 Russell SOB. Got to get a chuckle out of it and only from inside the beltway.

RBR Radar 2007

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

'Tis the season to CYA
Technically, it's always the season to CYA in Washington, but the looming DTV transition is making some of the natives inside the Beltway very nervous. Ed Markey (D-MA) went viral today with news of a new Government Accountability Office report on the FCC/NTIA preparations for the DTV transition in which it "...found no comprehensive plan or strategy to measure progress or results," he said. The FCC fired right back with a 99-page report noting that it has "been planning for the DTV transition for more than 20 years."
12/12/07 RBR #241

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