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Volume 23, Issue 243, Jim Carnegie, Editor & Publisher

Friday Morning December 15th, 2006

Radio News ®

Clear Channel set to spin
two dozen big radio stations
We said it nearly a month ago (11/21/06 RBR #227), but now Clear Channel-owned Inside Radio admits that the company will not be able to qualify to hold onto its non-compliant clusters when Clear Channel is taken private. The Clear Channel publication says company lawyers are estimating the ownership change will require the divestiture of as many as 24 radio stations in 19 markets - in addition to the 448 stations that the company is selling in smaller markets. The original story in RBR came after Clear Channel CEO Mark Mays told USA Today that he believed his family and their new partners, Thomas H. Lee Partners and Bain Capital, would be permitted to hold onto the grandfathered clusters. Our story demonstrated that was not the case, and that the only possibility was to ask the FCC for permanent waivers, which were unlikely to be granted.

RBR observation: As conceded by Clear Channel's Inside Radio, permanent waiver requests would have been fought tooth and nail by a variety of anti-consolidation groups. The company is following a prudent course in not taking on that battle. At the very least it would delay closing for many, many months - and the permanent waivers probably would not be granted anyway. This is good news for other operators who are anxious to grow in those markets where CC Radio is over the new limits. We look for several of the buyers to be minority broadcasters, just as in the Clear Channel-AMFM spinoffs, which will score PR points for Clear Channel at the FCC and on Capitol Hill. As noted previously, Univision has asked for temporary waivers of six months for its required divestitures, so it is unlikely Clear Channel could persuade the FCC to give it any longer than that.

Mo' money for Entercom
Entercom has increased its bank credit agreement by 100 million to a total of 900 million. The bank group is led by KeyBank National Association, as administrative agent and letter of credit issuer, Bank of America, N.A., as syndication agent, and JPMorgan Chase Bank as co-documentation agent. In addition to increasing the principal amount, the negative covenants under the credit facility, originally created in August 2004, were revised as follows: (A) the Leverage Ratio (as defined in the Credit Facility) shall not exceed 5.75x at all times; (B) the Interest Coverage Ratio (as defined in the Credit Facility) shall not be less than 2.25x through June 30, 2007, increasing to 2.50x on July 1, 2007; and (C) the Fixed Charge Coverage Ratio (as defined in the Credit Facility) shall not be less than 1.05x through June 30, 2007, increasing to 1.10x on July 1, 2007.

FCC takes up franchising
next week
The big dog on the FCC December open meeting agenda is the issue of video franchising. The Commission will consider a "...directive that local franchising authorities not unreasonable refuse to award competitive franchises." MIA from the agenda: The AT&T/BellSouth transaction. The absence of the AT&T plank is notable since the Commission has been so busy of late getting newest Republican Robert McDowell off the recusal hook in hopes of breaking what appears to be a perpetual 2-2 tie as long as an even number of commissioners minus one Republican remains the 8th Floor formula. The video franchising issue basically concerns one of many regulatory avenues being pursued by telephone companies as they move into competition with cable incumbents in the MVPD business. FCC Chairman Kevin Martin has discussed the possibility of putting LPAs on a 90-day clock to announce either a thumbs up or a reasonable reason for a thumbs down. This parallels efforts which have stalled in Congress, and efforts which have been proceeding at the state level. The meeting is scheduled for Wednesday, 12/20/06at 9:30 AM Eastern.

No facts, no license revocation
Third Coast Press had a bone to pick with the entire broadcast television lineup in the Chicago media market. It wanted licenses revoked from 18 stations (13 full-power, four Class A and one low power), and including an ownership lineup featuring the big four networks, all of whom have O&Os in the market, as well as Tribune, Univision and Paxson. At issue: public affairs and children's programming. In addition to the alleged lapses mentioned, the stations stood accused of "hypercommercialism," lack of "vigorous debate on important issues, particularly the Iraq War" and lack of any African American opinion show hosts or political reporters. In general, the stations fail "to serve the needs of African Americans and Latinos." The FCC wrote that the complainant needed to provide "...specific allegations of fact sufficient to show that granting the application would be prima facie inconsistent with the public interest." Instead, it received a series of unsupported opinions, leaving nothing to act on. With regard to news programming, the FCC noted the Section 326 of the Communications Act of 1934 and the First Amendment of the Constitution "prohibit any Commission actions that would improperly interfere with the programming decisions of licensees."

RBR observation: It didn't seem possible that the Third Coast complaint was going to go anywhere. The wonder of it is that it took over a year to come to resolution.

Faith-based forum set for NYC
Hey, you don't have to be a watchdog or the FCC to hold a forum on broadcasting issues. The United States Conference of Catholic Bishops, National Council of Churches of Christ and the United Church of Christ are banding together to discuss radio and television topics as they pertain to religion. Leaders from the Christian, Jewish and Muslim faiths are there, and the organizers say they have invited and expect attendance by unnamed FCC commissioners. The session is being held at the studio of Thirteen/WNET at 450 W. 33rd St. in New York City on 1/9/07 from 11AM to 1PM Eastern. In a statement, they organizers said, "The religious leaders believe that upcoming FCC decisions can benefit from commissioners hearing their views on the way in which broadcasters cover religious events in their news and public affairs programming and reflect the concerns of members of religious faiths in their overall programming."

2007 Writers Guild Awards Radio Nominees
The Writers Guild of America, West (WGAW) and the Writers Guild of America, East (WGAE) have announced nominations for outstanding achievement in television and radio writing during the 2006 season. The 2007 Writers Guild Awards will take place Sunday, February 11, 2007, in Los Angeles at the Hyatt Regency Century Plaza Hotel and simultaneously in New York at the Hudson Theater at the Millennium Broadway Hotel. Television dominates the award categories, but here are the nominees in the two radio categories.

Radio Nominees
News - Regularly Scheduled
1. World News This Week, Written by Maryanne J. Prior; ABC
2. World News This Week, Written by Jeffrey Veatch; ABC
News - Analysis, Feature or Commentary
1. America's Heroes: Triumph and Inspiration, Written by Stu Chamberlain; ABC
2. On My Son's Departure from Home, Written by Jerry Edling; KNX
3. Passages, Written by Gail Lee; CBS

Ad Business Report TM

Six Flags and Cold Stone Creamery
announce marketing alliance
Cold Stone Creamery and Six Flags announced a multi-year strategic relationship under which Cold Stone Creamery will become the fourth Six Flags Corporate Alliance Partner, Six Flags will open and operate Cold Stone Creamery locations in its branded parks, and the companies will collaborate on innovative marketing and promotional initiatives both in-park and at participating Cold Stone locations, including a special Cold Stone Creamery ice cream Creation named for Six Flags to be offered at stores nationwide. The two will also implement a number of co-marketing offers aimed at driving in-store and in-park sales, including the distribution of promotional offers in both Six Flags parks and Cold Stone stores nationwide. The alliance will include customer outreach via both companies' online and direct mail programs, as well as the development and branding of the new Six Flags ice cream Creation.

Media Markets & Money TM

Let the Three Eagles soar
Actually, there will be eight Eagles soaring in the Lincoln NE market once Rolland Johnson's radio group closes on a quartet of FM stations it's agreed to acquire from Clear Channel. According to the JournalStar.com, Three Eagles will add KTGL-FM, KZKX-FM, KIBZ-FM & KLMY-FM to a cluster that already includes KFOR-AM, KLMS-AM, KRKR-FM & KFRX-FM. The AMs will be kosher under FCC local cap rules, but two of the FMs will have to go. Although no decision has yet been made about which are staying and which are going, Dick Chapin's brokerage Chapin Enterprises is said to be providing a temporary home for whichever two Johnson puts on the block for resale. No price was announced.

RBR observation: If not for Chapin, this market would be a true radio duopoly, meaning there are only two commercial radio operators in town, according to the BIAfn 2006 Radio Yearbook. Triad Broadcasting is the other company, with an AM and three FMs. Triad doesn't have the cap room to buy both FMs even if such a deal could be tip-toed past regulators, and anyway, it will probably take both of them in a package to entice a new entrant into the market against two established and effective competitors.

Media Business Report TM

Journal Register announces
print ad partnership with Google
Journal Register Company announced its flagship newspaper, the New Haven Register, will participate in the Google Print Ads program. The initiative creates a new online marketing channel for the Register, which allows advertisers to purchase newspaper space and special themed section content. The Register joins more than 50 major newspapers across the U.S. that are currently participating in the program.

Washington Media Business Report TM

Balance of power
rests at GWU Hospital
Sen. Tim Johnson (D-SD) is recovering from emergency brain surgery for a "congenital arteriovenous malformation" which caused internal bleeding. His surgery has been described as successful and without complication, but any prognosis beyond that has been called premature. All of which means that the possibility of a Republican majority in the Senate is back on the table, if Johnson is unable to finish the two remaining years of his term. That would open the door for South Dakota's Republican governor Michael Rounds to appoint a Republican successor, resulting in a 50-50 tie with the tie-breaker vote going to VP Dick Cheney. Even if that scenario plays out, it would not necessarily give control of the chamber to the Republicans, however. An analysis in the Washington Post pointed out several possibilities which have occurred under similar circumstances in the past. There's not even a guarantee that Rounds will pick a Republican, and so far he's not talking. Stay tuned.

RBR observation: In any case, the Democrat's advantage in the House, which is not razor-thin, should go a long way toward ensuring that the general lack of Congressional achievement of late should continue to march in place, since marching forward appears to be out of the question. (We kid the Congress.)

Entertainment Media Business Report TM

Star Jones Reynolds to fill in for Dyson
Star Jones Reynolds famed television personality, attorney, author and social activist, will make her debut as a nationally syndicated radio talk show host on Syndication One beginning December 18th - 20th, sitting in for Michael Eric Dyson, who will be vacationing those days. From 10am to 1pm EST, Star will take calls from listeners; discuss inspirational thoughts, current events, and will feature guest interviews with leaders in politics, law, and media, as well as with entertainment personalities. The Michael Eric Dyson show is heard in 25 markets, including Chicago (WVON-AM), Boston (WILD-AM), Philadelphia (WHAT-AM), Atlanta (WAMJ-AM), Washington, DC (WOL-AM) and Detroit (WCHB-AM). Syndication One is a joint venture of Radio One and REACH Media. In addition to Dyson's show, Syndication One also airs The Al Sharpton Show and The Two Live Stews.

Laura Ingraham
gets Rummy interview
TRN Enterprises' The Laura Ingraham Show featured an exclusive live radio interview with Donald Rumsfeld, 12/12, believed to be his last radio interview as United States Secretary of Defense. Commenting on the unpopularity of the war in Iraq, Rumsfeld said, "It's not possible for the military alone to win the struggle, because it's a long struggle. It will take time. The revolutionary war was divisive and unpopular. The civil war was divisive and unpopular. They [the people] tend to find their way to right judgments over time." Among other topics covered, Ingraham questioned the defense chief on the validity of pursuing conversations with Iran or Syria asking, "How do you talk to Iran and Syria, when Iran itself is so much part of the problem in Iraq?" Rumsfeld replied, "The Iranian involvement is harmful...I can't figure out what exactly would make us think that they want to be cooperative and helpful." Noting that although Conservatives are generally suspicious of international organizations and international law, Ingraham asked, "Given the complexity of this war against terrorism, how could we go into another major conflict without the support of countries like Russia and China?" Rumsfeld replied, "The president has fashioned a coalition of some 80 plus countries in the global struggle against these violent extremists...In Iraq there are 28 other countries. In Afghanistan there are 38 other countries. In the Proliferation Security Initiative we've got 60 countries...this allegation that the president is unilateralist is a cop out..." In closing, Ingraham questioned the Defense Chief about lessons learned as he makes preparation to leave the Pentagon. "This first conflict of the 21st century is in a new century, and in a new media reality...as a result, the management of communication of information is entirely different...yet we're still tied to 20th century approaches towards print media and television."

Ratings & Research

Diaries go mobile
Having already gone electronic with its Internet-based eDiary, Arbitron yesterday unveiled a preview of a mobile electronic diary, a future "on-the-go" version of the PC-based electronic radio diary at the Arbitron 2006 Consultant Fly-In in Maryland. Arbitron said the mobile electronic diary will be tested on a wide array of mobile Internet-capable devices such the RIM BlackBerry, Palm Treo, Windows Mobile and Symbian smartphones. "Once you have the infrastructure for an Internet-based diary, adapting it for Internet-enabled mobile devices is a logical next step. To test the mobile electronic diary concept, we're working with UsableNet, a technology company that has developed Lift Mobile to create a dynamic, mobile-ready view specialized for any mobile device that accesses the Arbitron electronic diary," said Arbitron VP of Domestic Research Ed Cohen.

Music Media Business Report

Ahmet Ertegun dead at 83
Atlantic Records announced late yesterday that its Founding Chairman, Ahmet Ertegun, had passed away in New York City at the age of 83. He had been hospitalized with a head injury since October 29, when he fell backstage at a Rolling Stones concert at the Beacon Theatre in Manhattan. Ertegun will be buried in a private ceremony in his native Turkey. A memorial service will be conducted in New York after the New Year.

TVBR TV News

Double digit quarter for TV
TV station revenues shot up 10.4% in Q3. But TVB says it was not just political, that nine of the top 10 ad categories posted gains for the quarter. The biggest percentage increase among the top 25 advertising categories for local broadcast (national and local spot combined) in the quarter was posted by Government & Organizations, which is mostly political spending. The category was up 182.1% over the same period in 2005. "While the increase in political dollars has received much attention in the media, it should be noted that local broadcast television posted gains in many large ad categories," said Susan Cuccinello, Sr. VP of Research for TVB.
| Here are the numbers |

Transactions

1.4M WEMT-TV Tri-Cities TN-VA (Greeneville TN). 100% of Aurora License Holdings Inc. from Aurora Broadcasting Inc. (Jeffrey Trumper) to Esteem Broadcasting LLC (David L. Bailey). Station will remain in LMA with WCYB-TV. Station is Fox affiliate on Channel 39. [File date 11/29/06.]

300K WTOF-AM Mobile AL (Bay Minette AL) from Southern Media Communications Inc. (Walter J. Bowen) to Buddy Tucker Association Inc. (Theodore D. Tucker). 30K escrow, balance in cash at closing. Duopoly with WMOB-AM. LMA 12/1/06 @ 2,250/month. [File date 11/29/06.]

200K KQJZ-AM CP Kalispell MT from Advance Acquisition Inc., a subsidiary of Starboard Media Foundation Inc. (Mark C. Follett) to Anderson Radio Broadcasting Inc. (Dennis L. Anderson, Nyla Y. Anderson). 50K escrow, balance in cash at closing. Duopoly with KQRK-FM Ronan MT, KERR-AM Polson MT, KIBG-FM Wallace ID. CP is for Class C on 1340 KHz with 1 kw-D, 670 w-N, ND. [File date 11/29/06.]

Stock Talk

Record close for the Dow
Stock prices moved higher on Thursday as a number of major companies reported good earnings and the government reported that jobless claims fell to a two-month low. The Dow Industrials rose 99 points, or 0.8%, to close at a record 12,417.

Radio stocks were higher, though nowhere near record levels. The Radio Index gained 1.391, or 0.9%, to 152.535. Beasley rose 3.1% and Salem 3% as the best performers.

Radio Stocks

**Here's how stocks fared on Thursday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		44.63	+0.27	Hearst-Argyle	HTV		26.04	+0.02
Beasley	BBGI		7.98	+0.24	Journal Comm.	JRN		12.51	+0.17
CBS CI. B	CBS		31.60	+0.21	Lincoln Natl.	LNC		64.19	+0.59
CBS CI. A	CBSa		31.56	+0.21	Radio One, Cl. A	ROIA		6.71	+0.06
Citadel	CDL		9.65	+0.02	Radio One, Cl. D	ROIAK		6.66	-0.01
Clear Channel	CCU		35.47	+0.09	Regent	RGCI		2.79	-0.19
Cox Radio	CXR		16.67	+0.19	Saga Commun.	SGA		9.03	-0.07
Cumulus	CMLS		10.77	+0.07	Salem Comm.	SALM		11.19	+0.33
Disney	DIS		34.72	+0.27	Sirius Sat. Radio	SIRI		3.79	unch
Emmis	EMMS		8.05	-0.04	Spanish Bcg.	SBSA		4.41	+0.15
Entercom	ETM		28.00	+0.32	Univision	UVN		35.37	-0.02
Entravision	EVC		7.91	-0.03	Westwood One	WON		6.90	+0.17
Fisher	FSCI		42.74	+0.59	XM Sat. Radio	XMSR		15.15	unch
Gaylord	GET		50.50	+0.11	-	-	-	-	-

Bounceback

Send Us Your Opinions We want to
hear from you.
This is your column, so send your comments and
a photo to [email protected]

Regarding RBR's story of the NAB versus the FMC research revealing totally different outcomes (12/14/06 RBR #242), the last chapter of Statistical Analysis 101 always closes with the friendly reminder that after all of the mathematical calculations and definitions of the universal sample in the world of marketing research, the "interpretation of data" determines the correct answer to the survey questionnaire. Some interview questions are clearly planted (worded) in an effort to lead to the "correct answer". Looking at raw data, interview locations, times of day and specifically question prioritization usually show the "intent" of the survey, both advertised and buried. Our political leaders are the foremost example of groups offering leading questionnaires for their pet project research. High on that list has to be broadcasters looking for excuses and reasons for bad ratings and changes in direction. Going back to college days, prior to political correctness, I recall "does your momma know you are gay?" making its way to the classroom example of how to confuse a closed interview session on the street. Every interested broadcaster should attempt to duplicate his or her own ratings diary during every ratings period. Getting a taste of the complexity of filling out a fine-print cramped-for-space booklet, especially the TV ratings format, will totally frustrate the average person. Funny how everyone checks the emails looking for that first trend report from the research company. But very few broadcasters will risk asking their hairstylist or barber anything for fear of hearing a different tune. We owe a debt of gratitude to the select group of men and women investing in and paying for real research and sharing it with the rest of us as we observe their success in the ratings games.

Jerry Smith
Jacksonville, Florida

Below the Fold

Ratings & Research
Diaries go mobile
Arbitron has unveiled a preview of a mobile electronic diary, a future "on-the-go" version of its PC-based eDiary.

Media, Markets & Money
Let the Three Eagles soar
As Clear Channel sheds another market, the Nebraska capital is almost a two-company town.

Ad Business Report
Creamy marketing alliance
Cold Stone Creamery and Six Flags announced a multi-year strategic relationship which includes, yum!, ice cream.

Media Business Report
Another Google deal
The Journal Register flagship signs up for Google Print Ads.

Arbitrends

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Radio Media Moves

Upped in NYC
Emmis Communications New York announced that Brian D'Aurelio has been promoted to Director of Marketing for all three stations in the cluster, WQHT-FM, WRKS-FM and WQCD-FM. He was previously Senior Marketing Director for WRKS and WQCD.

Goldstein to RAC
Steve Goldstein, Exec. VP and Group Program Director of Saga Communications, has been selected to fill the seat on the Arbitron Radio Advisory Council created by the resignation of Ed Levine (12/1/06 RBR #233). Goldstein was selected by the RAC Chairman and Executive Committee to fill the remaining year of the term.

Carolina promotion
Beasley Broadcast Group announced that Jerry Wayne has been promoted to the position of Director of Programming of its Coastal Carolina six-station radio cluster. Currently Program Director of WNCT-FM, Wayne's promotion includes additional duties as Program Director of WXNR-FM as well as responsibility for managing all Beasley Coastal Carolina Program Directors.

Upped in Wichita
Journal Broadcast Group has promoted Carol Hughes to Assistant Program Director for KFDI-FM. Hughes is on-air daily on KFDI from 10am to 3pm and has worked at KFDI for six years.

Sornsen to SWMX
SoftWave Media Exchange announced Lynn Sornsen has joined the company as an AE based in Dallas providing sales and service support to SWMX's expanding roster of radio and television clients in the southwest. Prior to joining SoftWave, Sornsen was a senior account manager with XM Satellite Radio in Dallas.

RBR Radar 2006

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

RBR First
Broadcast lender reorganizing
RBR/TVBR has confirmed that a restructuring took place in the past few days at Wells Fargo Foothill, which is a major lender to radio, TV and other media. Our sources say the biggest change is that the company is shutting down the lending unit that dealt on the low end of the market, loans in the 1-10 million range, and will concentrate on the higher-margin business for larger broadcast loans. That is bad news for smaller operators, since Wells Fargo Foothill had been one of the very few nationwide lenders that would make media loans below 10 million bucks. Despite numerous contacts from RBR/TVBR, there is no official comment from the company yet on the reorganization. Wells Fargo Foothill made a major move to target the 1-10 million media loan market in late 2004 when it acquired Westburg Media Capital.

RBR observation: When one closes a door on business it opens the door of opportunity for another. Key, if any financial institution etc is open for business and conducting business for what they call Small Deals then let Broadcasters know. There are more looking to build in 2007 and if there are financial types conducting this business you will win over the big every time.

Carnegie note: RBR & TVBR has just started our 24th year in the business. Looking to grow so this small firm is seeking out these small financial firms that are conducting business in the 1-10 million range. Guess what, there are more companies that are smaller looking to grow as the big are selling as they are defining their core business. Never count out what some call the small people as I consider small the heart beat of our business. As for stability it is the small that grows into big as RBR & TVBR are the proof with 24 years in business and still growing. Small companies have no place to grow but up. Think about it.
12/14/06 RBR #242

Which medium is the
biggest eLoser?
A recent ZenithOptimedia forecast sees Internet advertising surpassing radio on a worldwide basis by 2009, but radio will only lose 0.4% of its share from 2006 through then. That matches the projection for magazines, and is not as severe as the drop for television. But the biggest loser is projected to be: Newspapers.
12/13/06 RBR #241

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