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Volume 22, Issue 243, Jim Carnegie, Editor & Publisher

Wednesday Morning December 14th, 2005

Radio News®

"Live Nation" set for debut
That's the new name for Clear Channel's spin-out of CC Entertainment, which will likely begin trading "when issued" today on the NYSE. The concert/live entertainment business will actually become independent from Clear Channel later this month. So, once we have a market price for "LYV" (the ticker symbol), do we just divide by eight (CCU shareholders will get one share of LYV for each eight of CCU) and subtract that from CCU's current price to get the effective value? No, it's not that simple. Bear Stearns analyst Victor Miller is expecting LYV to trade around 10 bucks - - he gives a range of 8-12. He says the knee-jerk reaction is likely to be to drive Clear Channel's stock price down a buck or so, but he calculates that the real impact should be much less. Miller's 11-step analysis, which he issued yesterday, then walked investors through on a conference call, takes into account all of the financial factors for CCU, including such things as the actual EBITDA impact, tax breaks from the capital loss associated with spinning out LYV at far less than the 4.4 billion acquisition cost and sheltering of future capital gains. All in all, Miller figures the actual impact on CCU's stock price should be around 20 cents per share, if even that.

RBR observation: Miller has been critical of CCU management in the past - - in fact, he urged an outright sale of CC Entertainment as a better course - - so he's not one to look at the company through rose-colored glasses. As we indicated, his 11-step analysis is too complicated to review in-depth here, so you'll have to contact him, [email protected], if you want to see for yourself. In any case, it will be interesting to see how the "when issued" shares price today.

Copps, Tate nominations
heading for Senate floor vote
The Senate Commerce Committee was short a quorum yesterday after hearing from sitting Democratic FCC Commissioner Michael Copps and nominated Republican Debi Tate, so there was no committee vote on their nominations. But both apparently made a good impression, so Chairman Ted Stevens (R-AZ) went straight to the full Senate and got unanimous consent to discharge the nominations from committee. That means that the full Senate will now vote on the nominations and both could be taking their oath of office before Senators head home for the holidays. Both candidates drew praise from Stevens at yesterday's hearing. Copps, of course, has made numerous appearances before the committee, and was once an employee of former Chair and Ranking Member, and now retired Ernest Hollings (D-SC). Sen. Lamar Alexander (R-TN) made a guest appearance before the committee to introduce newcomer Tate, who also hails from Tennessee. "In addition, Debi finds time to volunteer for numerous organizations with a particular emphasis on children and women's issues," he noted. Mentioning how the walls between different modes of electronic communications are becoming "blurred," he said, "Debi's breadth of experience across a wide range of issues and her insight at both the national and state and local level will make her an invaluable asset to the FCC as it navigates these increasingly complex issues."
| Copps, Tate statements here |

Cromwell gives CCU a buzzcut
If your radio station is trying to create market buzz by using the trademark BUZZ, it looks like you'll have to follow in the footsteps of Entercom, Regent and Cumulus and deal with Nashville-based The Cromwell Group. That's per an agreement between Cromwell and radio giant Clear Channel, settling a dispute which had made it all the way to the US Federal District Court for the Middle District of Tennessee. Clear Channel has agreed that it will license the trademark in "certain specified markets." Cromwell's Bayard Walters announced his intention to continue and defend the trademark, and invited any company contemplating its use to be proactive in contacting Cromwell.

S&P sees 2006 as a tough year for media
Standard & Poor's analyst Heather Goodchild is out with a 2006 outlook for the media sector - - and it's not an upbeat one. Other than the hot online advertising sector, she doesn't see much to get excited about for media companies. In fact, she's worried that a negative surprise could come along and neutralize the positive impact of the Winter Olympics and political advertising for broadcast companies. S&P is forecasting overall a 5% rise in US ad spending in 2006. Cable networks are expected to continue graining strength, with gains in the mid-teens, while broadcast networks aren't expected to do much more than keep pace with GDP growth, which is forecast at 3.3%. As far as TV station groups are concerned, S&P's forecast simply recounts the forecast from TVB of 6-8% growth next year. Goodchild says radio advertising will likely be up only in the low single digits. Meanwhile, online advertising is expected to soar more than 20%. The S&P forecast notes that Ford has allocated 15% of its marketing budget to online initiatives as just one example of ad budgets being moved online.

BET founder back in the game
Bob Johnson announced a letter of intent with the Carlyle Group to develop co-investment opportunities, share private equity deal flow and execute private equity deals. In other words, after stepping down from all positions at Viacom, which bought BET from him for three billion in 2001, Johnson is teaming up with big money to go hunting. The joint announcement from Carlyle and The RLJ companies, Johnson's personal investment vehicle, said they will be looking for investments in the media, financial services and business services industries.

RBR observation: We've heard Johnson more than once mention an interest in broadcast investments - - radio and TV - - but he never got around to doing anything in that regard while he was busy building BET. Now we figure he might have the time and inclination to take a closer look at the broadcasting business.

WIBA-AM sells newsroom naming rights
The move brings concern that advertisers could influence news coverage. The WIBA-AM newsroom in Madison will be known as the Amcore Bank News Center beginning Jan. 1, a bank spokeswoman told The AP. "What listeners will hear on air is something like, 'Now from the Amcore Bank News Center, here's WIBA's Jennifer Miller,'" said Jeff Tyler, vice president of Clear Channel Radio-Madison, which owns WIBA-AM 1210 and FM 101.5. The deal's financial terms weren't disclosed. Tyler said there are many other examples of selling naming rights in broadcasting. Clear Channel Milwaukee's WISN-AM sold its newsroom naming rights to Pyramax Bank last year, for one. Pyramax's SVP/Marketing, Monica Baker, said the Milwaukee-area bank has sponsored the newscasts of six CC Radio stations in Milwaukee since February 2004. She said the bank is not allowed to advertise any products during its on-air mention. "We're not able to put a tag line in the actual sponsorship because they want to protect the integrity of the news," Baker told The AP. Tyler said producing news is getting expensive and the sale had to be done. He insisted it won't affect news content.

RBR observation: We see absolutely no problem with the move. If it means WIBA keeps its news-gathering staff up to snuff, more power to them. It's really no different than having an anchor mention the sponsor of a newscast. Too many stations have lost their local news departments. If naming them after a bank can keep a few more going, good for them - - and the listeners.

Adbiz©

Julie Roehm on Jeep's MobiTV deal
RBR/TVBR asked Julie Roehm, Chrysler Group Marketing Director of Marketing Communications about the deal with MobiTV that dedicates a channel to Jeep (12/13/05 RBR #242).

What are the top three goals this accomplishes?
"This accomplishes our goal of testing new technologies, our goal of finding ways to take video to a more personalized level, and our goal of creating more complete measurement. On the latter we are not quite where we ultimately want to be with MobiTV but as the first advertiser and partner, MobiTV is eager to work with us to make the offering even more measurable than it is today."

Gay and lesbian groups meet with Ford over ad pullout
Gay and lesbian organizations asked Ford to reinstate advertising for its Jaguar and Land Rover brands in gay publications and to distance itself from an anti-gay group which had boycotted the automaker's vehicles (12/7/05 RBR #238). Ford officials met with leaders of the Human Rights Campaign, the Gay & Lesbian Alliance Against Defamation (GLAAD) and other organizations in Washington, D.C. on Monday, after the automaker said last week its luxury brands would no longer advertise in gay publications, reported The AP. The move came nearly a week after the Tupelo, MS-based American Family Association canceled its boycott of Ford vehicles, which started in May amid criticism that the automaker was too gay-friendly. Ford told gay rights leaders that it had not made any deal with the AFA to end advertising of Jaguar and Land Rover in gay media, the groups said. Joe Solmonese, president of the Human Rights Campaign, told The AP Ford was asked to "make a very strong statement" disassociating itself from the AFA while reinstating the Jaguar and Land Rover advertising in the gay press. Ford has said it did not make the decision because of the boycott or pressure from conservative Christian groups. It said Jaguar and Land Rover, part of Ford's Premier Automotive Group, cut back on its marketing across-the-board because of difficult market conditions. Ford said in a statement it was "always willing to engage in constructive conversation with those interested in our policies, even with those who don't always agree with them. But only Ford Motor Company speaks for Ford Motor Company. Any suggestion to the contrary is incorrect." Said Ford CEO Bill Ford said in a statement: "We value all people - - regardless of their race, religion, gender, sexual orientation and cultural or physical differences."

Media Markets & MoneyTM

Lazer beams into El Centro
Alfredo Plascencia's Lazer Broadcasting Corp. is entering the Yuma AZ-El Centro CA DMA with a standalone FM. The Hispanic group will be on the northern extremity of the Mexico-border DMA (Nielsen's there but Arbitron isn't - - Eastlan provides radio ratings on the Yuma side), licensed just on the southeast side of the Salton Sea in Calipatria. The station is KSSB-FM, and seller Philip J. Plank will ultimately get 925K plus for it. 125K has been plunked down for an option to buy, another 125K has been plunked down as a deposit, and the remaining 675K will be paid pursuant to terms of a promissory note. The whipped cream on top of that will be LMA fees of 30K for every six months which has been in effect since 4/1/05. Lazer has 14 other stations in California, the nearest of which is some 90 miles north in the Palm Springs market.

Entercom ups stock buyback
Wall Street continues to disrespect radio stocks, so the companies continue to buy back shares of their own stock at what management considers to be bargain prices. Entercom announced yesterday that its board has approved an additional 100 million bucks buyback. Since last year Entercom has bought back 7.6 million of its own shares under three previous buyback programs totaling 300 million bucks.

Washington Beat

Stevens clueless about fate of fifth Commissioner
Senate Commerce Committee Chairman Ted Stevens (R-AK) has voiced his frustration with the White House for its failure to timely fill the offices on the FCC's 8th Floor, and it seems to go beyond the obvious desire to restore Republican majority rule to a Commission facing numerous critical issues going into 2006. He has sent two candidates for the spot vacated just last week by Kathleen Abernathy, and has yet heard only silence in return. "I think I'll be the first Chairman of Commerce that was denied the opportunity to recommend someone for appointment," he said. He declined to identify his picks, in order to save them personal embarrassment if they do not go forward to nominee status. While he hasn't received a White House nod on either candidate, neither has he been denied. "I said I haven't gotten any notice at all."

Programming

Bob Dylan signs with XM
XM announced that Bob Dylan will host a new music show exclusively for XM, marking the first time the music legend has hosted a radio show. The weekly hour-long music show will feature an eclectic mix of music hand-selected by Dylan. In addition, Dylan will offer regular commentary on music and other topics, host and interview special guests including other artists and will take emails from XM subscribers. The show will debut in March on XM's deep album rock channel Deep Tracks (channel 40).

Sirius reups with the NBA
The multi-year agreement expands upon their current broadcast arrangement and makes Sirius an official NBA partner. The partnership makes Sirius the broadcaster of more live NBA games than any other radio outlet. Sirius'NBA programming package features more than 1,000 regular season games, plus every game of the NBA Playoffs and The Finals

Transactions

300K WBCU-AM Union SC. 100% of Union-Carolina Broadcasting INc. from Doulas M. Sutton Jr. to James C. Woodson. 240K for station, 60K for real estate. [File date 11/17/05.]

68,160 FM CP Questa NM. 100% of West Waves Inc. from David Noll (100% to 0%) to David Rahn (0% to 50%), John Bradley (0% to 50%). Cash. Duopoly with KTAO-FM Taos NM. CP is for Class C1 on 103.7 mHz with 51 kw @ -211'. [File date 11/17/05.]

Stock Talk

Stock up as Fed finally signals a halt
Wall Street celebrated, though not too much, as the Federal Reserve indicated that it was abut to end its string of rate hikes - - even as it announced another one. The Dow Industrials rose 56 points, or 0.5%, to 10,824.

Radio stocks were slightly higher as well. The Radio Index gained 0.011, or 0.01%, to 186.462. Spanish Broadcasting System again led the way, rising 3.2%. There's been no news about the company, but it's been strong the last two days, rising out of penny stock territory on Monday and gaining further on Tuesday. Sirius Satellite Radio plunged 6% after being downgraded by BofA Securities.

Radio Stocks

**Here's how stocks fared on Tuesday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		40.03	+0.44	Jeff-Pilot	JP		55.58	+0.03
Beasley	BBGI		13.81	+0.05	Journal Comm.	JRN		13.95	+0.10
Citadel	CDL		13.45	+0.08	Radio One, Cl. A	ROIA		10.78	-0.20
Clear Channel	CCU		32.75	+0.25	Radio One, Cl. D	ROIAK		10.78	-0.23
Cox Radio	CXR		15.07	+0.01	Regent	RGCI		4.64	-0.08
Cumulus	CMLS		13.10	+0.04	Saga Commun.	SGA		11.47	+0.17
Disney	DIS		25.13	-0.02	Salem Comm.	SALM		18.83	-0.07
Emmis	EMMS		20.01	+0.12	Sirius Sat. Radio	SIRI		7.01	-0.45
Entercom	ETM		29.27	-0.68	Spanish Bcg.	SBSA		5.21	+0.16
Entravision	EVC		7.15	-0.10	Univision	UVN		30.50	+0.21
Fisher	FSCI		45.13	-0.13	Viacom, Cl. A	VIA		34.78	+0.07
Gaylord	GET		44.80	-1.02	Viacom, Cl. B	VIAb		34.80	+0.15
Hearst-Argyle	HTV		24.26	+0.04	Westwood One	WON		16.36	-0.10
Interep	IREP		0.40	+0.02	XM Sat. Radio	XMSR		29.95	-0.01

Bounceback

Send Us Your Opinions We want to
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Arbitrends

Radio Media Moves

Manager for Backyard
Brett Beshore, who was formerly Director of Local Sales for Infinity in Philadelphia, has joined Backyard Broadcasting as VP/Market Manager for its seven-station radio cluster in East Central Indiana.

From pulpit
to GM office
Since 2002 Joe Gonzalez has been serving as pastor of Grace Baptist Church in Hermiston, OR, but he's now returning to radio to serve as General Manager of Salem's WORL-AM, WLTN-AM & WHIM-AM Orlando, FL.

Upped in Raleigh
Karen Cates has been promoted to General Sales Manager of WCMC-FM Raleigh by Capitol Broadcasting Company. She had been Sales Marketing Manager for co-owned WRAL-FM and in her new position will also be responsible for strategic marketing for both stations.

A Classical choice
Jenny Northern has been promoted to General Manager of WCLV-FM Cleveland and its associated companies, Radio Seaway and Cleveland Classical Radio. She had previously been Vice president of Sales and Syndication.

Morrison and Abraham adds brand strategist
Interep's Morrison and Abraham division announced that Pam Malone will join the company as a field consultant for its radio, television and newspaper clients. Prior to joining Morrison and Abraham, Malone was a Senior Director of Communications and Development for the Baltimore Ravens.

Below the Fold

Ad Biz
Chrysler's Julie Roehm
On Jeep's MobiTV deal...

Washington Beat
Stevens clueless about fate
Of fifth Commissioner...

Media Markets & Money
Lazer beams into El Centro
Yuma AZ-El Centro CA DMA with a standalone FM...

Stations for Sale

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

KWAM 990AM Memphis
Heritage full-time station with great coverage. Station and transmitter site for sale by owner.
Mark Jorgenson
Concord Media Group, Inc.
(828) 859-6982
[email protected]

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RBR Radar 2005

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

Cox study says expanded band
better than HD designation
Found that members of the public would rather see HD Radio multicasts numbered like existing FM stations (108.1 and beyond), rather than HD-2, HD-3, and etc. Offered only those two choices, the national study found that people overwhelmingly preferred the "expanded band" over the "layered approach."
RBR observation: Were they asking the right questions? It looks to us like people were offered two bad choices and they chose the one they found least objectionable. Can't we find something more consumer friendly than perpetuating the existing one-oh-whatever-point-thingamajig system? We think the radio industry needs to hire branding experts to try to come up with a more consumer-friendly way of numbering HD Radio channels.
12/13/05 TVBR #242

Agencies chime in on
HD Digital Radio Alliance
RBR asked a few agency folks about the recently announced HD Digital Radio Alliance, a coordinated industry effort to compete with the format variety of satellite radio. Rich Russo, JL Media's SVP/Director of Broadcast Services -".. I'm not comfortable with the word HD, because.." RBR observation: Indeed, it may take a while to get HD-2 in the hearts, minds and then hands, of listeners. Another issue, they've marketed a whole generation of HD receivers that didn't have the HD-2 capability. It's going to take a whole new cycle of manufacturing, retailing and purchases. It's almost like starting all over again. Thankfully, some HD receivers can be updated to HD-2 by a software download.
12/09/05 RBR #240

Account Executive - Suburban, NYC
It is Star 99.1, NYC's only Contemporary Christian music station. We look for overachievers with significant radio sales experience and offer base salary, commission, benefits and a positive environment. Giving you the tools to do your job to succeed. See Radio Careers

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