RBR's Daily Morning Epaper

Volume 21, Issue 244, Jim Carnegie, Editor & Publisher

Thursday Morning December 16th, 2004

Radio News®

RBR First Reported
Katz re-opening Eastman Radio
An old name in the radio rep business is coming back. RBR/TVBR sources confirm that Eastman Radio Reps will be back in business, with Tucker Flood running the show. The move by Katz Radio Group is designed to placate some key clients - - including Saga, Cox, Citadel, Fisher and Nassau - - who've had some issues with the way Christal is being run within the Clear Channel/Katz Media empire. Some of the discontented groups had been pressuring Clear Channel to sell the independent reps to them, but as we reported a year ago, Mark Mays is resisting that idea. The official line from KRG spokesperson Anne Kenney: "Katz is considering a third radio rep firm at this time, but nothing has been determined."

RBR observation: Now the brouhaha. We have found out about this and told you, our readers, about it in yesterday's afternoon Media Mix - - apparently before KRG honcho Stu Olds had contacted all the groups involved. Next, we learned from sources that the Eastman reopening will happen, but what is slowing down the second part of the process is an internal fight over people - - just what managers and sales people will go to Eastman. After all, the clients have demands on these people at Cristal who are performing for them and bringing in the dollars every day. Remember, back in the great rep walkout of 2003, it was the frontline people who walked over to Interep from Katz in the first place that got the radio industry's attention, not the top managers - - because the people working in the trenches are the day to day producers for the rep firms' clients.
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RBR Close Up
Hogan responds to Mandel comments
on AAAAs letter, continued
You read some pretty hot comments here yesterday, as Jon Mandel, Chairman of MediaCom US and Chief Global Buying Officer MediaCom, elaborated on the recent AAAAs letter sent to Clear Channel Radio CEO John Hogan, pictured, regarding the "Less is More" initiative. Today, Hogan responds issue-by issue.

RBR observation: CC Radio has managed to put themselves on the radar screens of the AAAAs and important media people like Jon Mandel because of Less is More. Called - Accountability. We just wish the top-of-mind awareness had produced more ad buys. TVBR Recommendation to CCU: Better Talk, More Action, and Quality Marketing. Read inside because this is your 15 minutes of fame. | More... |

Newsers want government to operate in broad daylight
Broadcast and print journalists are banding together to keep the pressure on government to operate in the open. Beginning 3/13/05, the group will kick off Sunshine Sunday/Sunshine Week, during which it will encourage journalists of all stripes to focus attention on tools necessary for the press to perform its critical watchdog function. The American Society of Newspaper Editors is spearheading the 2005 effort, after the concept was established in 2002 by the Florida Society of Newspaper Editors. The Radio-Television News Directors Association is also taking an active role. Broadcast and publication of news articles, editorials, commentaries and cartoons on the topic are being encouraged during the week, especially on topics like the need for confidential sources, the importance of the Freedom in Information Act and other similar topics. RTNDA President Barbara Cochrane said, "Open government is vital to everyone, not just journalists. We hope to increase public awareness about the importance of First Amendment rights through the Sunshine Week initiative."

Olympics: 203M viewed, nine complained
A Freedom of Information Act request made of the FCC by the New York Post concerning an investigation into possible indecent programming in NBC's coverage of the Summer Olympics revealed that there were nine complaints about the appropriateness of the material. To put that in perspective, ladies and gentlemen, we will spell in out numerically. Not complaining to complaining scorecard looks like this: 202,999,991 to 9. Parts of the opening ceremonies are believed to have triggered the complaints. Actors depicted what the Post calls "anatomically correct ancient Greek art," which apparently included at least partial nudity. But you wouldn't know it from NBC's coverage - - those parts are said to have been edited out. The complaints trickled in nonetheless.

RBR observation: We can only repeat what we said Monday. Sure, the FCC needs only one complaint to trigger an investigation. But does every complaint get one? Are there none that can be "laughed out of court?" Maybe we should start complaining every time programming we think is indecent makes it on to the air - - something like a John Tesh concert. Make them think twice before giving that fuzak stuff exposure before a wide audience. [Editor's note: If you're a John Tesh fan, don't write in to protest. Simply substitute the words Motley Crue for John Tesh in the previous sentence.]

Satcast indecency
not up for regulation
Howard Stern won't have to worry about being muzzled at Sirius Satellite Radio as well. FCC Media Bureau Chief Ken Ferree has turned down Mt. Wilson FM Broadcasters honcho Saul Levine, who asked for a rulemaking which would put satellite audio services on equal indecency regulatory footing with terrestrial broadcasters (11/15/04 RBR #223). Ferree quoted existing code in responding, "The Commission has previously ruled that 'subscription-based services do not call into play the issue of indecency'...and that 'consistent with existing case law, the Commission does not impose regulations regarding indecency on services lacking the indiscriminate access to children that characterizes broadcasting." There has long been a regulatory divide on the video side between ubiquitous broadcast TV programming and that available from cable and satellite services, since broadcast comes into the home unbidden while cable and satellite come as a result of a conscious consumer decision. Levine had argued that in the case of the audio services the FCC had put them in play via its imposition of other regulatory regimes, such as EEO compliance. Further, he felt they should be in play due to their use of terrestrial repeaters to fill in black holes in primarily urban areas. However, Ferree has decided Levine did not make enough of a case to warrant review of the broadcast/subscription divide.

RBR observation: This has come increasingly into question, particularly on Capitol Hill, where it is noted that to a child home alone, the only difference between regulated programming from ABC, CBS, PBS and the like, and raunchier fare from MTV, the Comedy Channel and their ilk is the number you punch into the remote. Still, content regulation on a subscription service would face a much dicier reception in the court system than over-the-air, which may itself be in for a rude awakening should a challenge to the rules ever get so far.

Adbiz©

Google wins trademark suit from Geico over ads
Google won a legal victory yesterday when a federal judge said the search engine could continue to sell ads triggered by searches using trademarked company names, says the AP. U.S. District Judge Leonie Brinkema rejected a claim by auto insurance giant Geico, which argued that Google shouldn't be allowed to sell ads to rival insurance companies that appear whenever Geico's name is typed into the Google search box. Geico claimed that Google's AdWords program, which displays the rival ads under a "Sponsored Links" heading next to a user's search results, causes confusion for consumers and illegally exploits Geico's investment of hundreds of millions of dollars in its brand. "There is no evidence that that activity alone causes confusion," Judge Brinkema said, in granting Google's motion for summary judgment on that issue. But Brinkema said the case would continue to move forward on one remaining issue, whether ads that pop up and actually use Geico in their text violate trademark law. Google contends that its policies expressly forbid advertisers from using trademark names in the text of their ads. The search engine says it does its best to prevent ads that violate the policy from sneaking in, and that the advertisers would be liable for any trademark violation, not Google. Judge Brinkema said she would halt the trial at this point to put a decision in writing and she encouraged both parties to try and settle the remaining issues.

GM consolidates European media accounts
AdAge reports General Motors Europe has consolidated its 700 million pan-European media planning and buying account with Universal McCann, according to a statement from the marketer. Universal McCann will handle the buying and planning in all 45 European markets where GM's brands -- Opel, Vauxhall, Saab and Chevrolet -- do business. The end of the four-month review marks a significant victory for Universal McCann, which along with Interpublic sibling Initiative controlled much of the business. GM said it plans to release 45 new models and variants in Europe over the next five years.

Media Markets & MoneyTM

Close encounter on the Jersey shore
The exit of Nassau Broadcasting from the Atlantic City market has been completed, according to brokers from Star Media Group and Serafin Bros. The group's final deed was turning over the deed to WSJO-FM to Millennium Radio Group, which earlier closed on the acquisition of WCHR-FM from the same seller. The stations together were valued at 40M dollars. This is not the first time the two groups sat across the trading table to discuss the acquisition of Jersey shore properties - - Nassau sold Millennium a Monmouth-Ocean five-pack back in 2002. Millennium recently announced the sale of WKOE-FM to Press Communications, making room in the local portfolio for the Nassau stations (12/10/04 RBR #240).

Washington Beat

Tauzin becomes drug dealer
We don't know yet who will succeed Eddie Fritts as President and CEO of the National Association of Broadcasters, but it won't be retiring Rep. Billy Tauzin (R-LA), who had been a key Capitol Hill player on broadcast issues. Tauzin has accepted a new job as President and CEO of the Pharmaceutical Research and Manufacturers of America (PhRMA), beginning January 3, 2005. That means that Tauzin, who is a recent intestinal cancer survivor, will be lobbying for the drug industry.

Pity the lowly LPTV
Gainesville Channel 61 Associates has duly taken note of the fact that the allocation of a facility on Channel 61 is quite useless in face of the fact that Channels 60-69 have gone bye-bye as far as the television industry is concerned. It found an option, though - - Channel 29. Never mind that in the Gainesville-Ocala area, Channel 29 is already home to W29AB, which despite being a low power TV, has big-time programming from CBS TV Network, and big time ownership in the form of Post-Newsweek Stations. Faced with forced competition from the full-power permittees, "all the king's horses and all the king's men," to say nothing of CBS and Post-Newsweek, are not sufficient to put W29AB together again. Post-Newsweek, which has been using the LPTV to extend its WKMG-TV Orlando into the market, will have to rely on cable to do the job.

Programming

Salem realigns in Houston
The conservative News/Talk offerings of Salem Radio Networks now have an outlet in Houston, with the Religious Talk/Teaching format of KKHT moving to the FM band - - the 100.7 spot of KOBT, which Salem is getting as part of a multi-station swap with Univision (10/6/04 RBR #195). News/Talk 1070 KNTH-AM now features SRN's Bill Bennett (5-8 AM), Mike Gallagher (8-11AM), Dennis Prager (11AM-1PM), Dave Ramsey (1-3PM), Michael Medved (3-5PM), and Hugh Hewitt (5-8PM), plus local news, weather and traffic.

CC Radio/Charleston
launches Air America
Today Clear Channel Radio of Charleston, SC is launching WSSP-AM "Progressive Talk Radio 730." "There was a lot of "blue" in the Charleston area during the recent Presidential election! Progressive 730 will not only speak to those views, but will open up a great dialogue for listeners seeking news and views from a different perspective. Clear Channel Charleston is among the first to put a station on the air to satisfy the desires of a growing audience for progressive radio! Progressive 730 will be unlike anything ever heard in this market before!" said Richard Bachschmidt, Program Director Programs for Progressive 730 will come from The Air America Radio Network and other sources. Shows in the line up will include Morning Sedition with Marc Maron and Mark Riley, Stephanie Miller, The Al Franken Show, The Ed Schultz Show, The Randi Rhodes Show and The Lionel Show.

Engineering

Broadcast execs to unveil
accelerated HD Radio rollout plans
Broadcast industry leaders from Bonneville, Clear Channel, Cox, Entercom and Radio One will disclose nationwide HD Radio conversion plans during a press conference 1/5 at 2:00pm (PT) at the International Consumer Electronics Show in iBiquity Digital's booth #4823. Also at the International CES, iBiquity will showcase its latest supplemental audio services and enhanced navigation features as well as new HD Radio receivers in many product categories: automotive, table top, custom home.

Present from the broadcast industry will be:
1. David Field, president and CEO, Entercom
2. Neil Johnston, chief financial officer, Cox Radio
3. Jeff Littlejohn, chief technology officer, Clear Channel
4. Bruce Reese, president and CEO, Bonneville and Chair of the NAB Radio Board
5. Scott Royster, chief financial officer, Radio One
6. Linda Vilardo, chief administrative officer, Radio One

GM Talkback

VCI Addresses Sarbanes-Oxley
By W. Lowell Putnam, President and CEO Video Communications, Inc. (VCI)

Because it requires personal sign-off by top level officers and allows them to become individually liable, Sarbanes-Oxley (SOX) has forced many companies to review all their financial systems and practices to a degree that has not been done for years, if at all. Much of this review has been done by outside auditing firms to a cost of millions of dollars in billable hours, so it is not surprising that some companies are now considering going private to save those costs. SOX also has no clear guidelines- each auditing firm interprets it differently. If you change firms, you can expect that the new firm will find a new set of compliance issues that the other did not. | More... |

Transactions

WLCS-FM, WHSN-FM, WUBR-AM/WEFG-FM & FM CP Muskegon MI (North Muskegon, Holton, Whitehall, Newago) from Noordyk Broadcasting Inc./Unity Broadcasting Inc. to Citadel Broadcasting Company.

KZZR-AM/KQHC-FM Burns OR from SS Radio LLC yo Action Radio LLC.

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Stock Talk

Good news from Wall Street boosts stocks
Despite a rise in oil prices, stock prices were slightly higher Wednesday after Lehman Brothers reported better-than expected earnings. The Dow Industrials rose 15 points to close at 10,691.

Radio stocks were also slightly higher. The Radio Index moved up 1.192, or 0.5%, to 226.567. Top honors of the day went to Univision, up 3.4%, Viacom Class A, up 3.1%, and Radio One Class D, up 3%.

Radio Stocks

**Here's how stocks fared on Wednesday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		38.79	-0.08	Jeff-Pilot	JP		52.64	+0.34
Beasley	BBGI		16.44	+0.11	Journal Comm.	JRN		17.66	-0.02
Citadel	CDL		15.91	+0.37	Radio One, Cl. A	ROIA		15.20	+0.41
Clear Channel	CCU		34.67	+0.41	Radio One, Cl. D	ROIAK		15.17	+0.45
Cox Radio	CXR		15.93	-0.07	Regent	RGCI		5.44	-0.07
Cumulus	CMLS		15.80	+0.11	Saga Commun.	SGA		17.04	-0.14
Disney	DIS		27.60	-0.06	Salem Comm.	SALM		25.19	-0.01
Emmis	EMMS		18.98	+0.38	Sirius Sat. Radio	SIRI		7.65	-0.30
Entercom	ETM		35.95	+0.05	Spanish Bcg.	SBSA		10.35	+0.11
Entravision	EVC		7.74	-0.14	Univision	UVN		29.53	+0.98
Fisher	FSCI		47.55	+0.38	Viacom, Cl. A	VIA		35.90	+1.08
Gaylord	GET		39.30	+0.30	Viacom, Cl. B	VIAb		35.00	+1.00
Hearst-Argyle	HTV		26.00	+0.13	Westwood One	WON		25.80	+0.38
Interep	IREP		0.73	unch	XM Sat. Radio	XMSR		39.51	+0.34
International Bcg.	IBCS		0.01	unch	-	-	-	-	-

__UNSUB__ to this email service.

Urgent Request

Now many that know Cathy and me personally, know we go the distance. This request for your assistance is from two people who have a vehicle of RBR & TVBR and are trying to help and bring a Merry Christmas to 40 lonely soldiers in a far away place and seeing the worst of war. Will you help us to help the medics & soldiers during this Holiday Season?

Ship (via US mail only) to:
SFC Melick.
325th Field Hospital
APO AE 09355

Thank you and Merry Christmas
Jim & Cathy Carnegie

Bounceback

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

On Jon Mandel's comments re: the AAAA's letter to John Hogan

Did Jon Mandel really accuse Clear Channel of being greedy? Where is the greed in cutting clutter and commercial loads? Where is the greed in trying to give advertiser's messages a better chance of being heard and where is the greed in trying to give our listeners a better listening experience? Jon must have a different definition of greed than I have.

John Gehron
Regional Vice President
Clear Channel Radio Chicago

Arbitrends

Upped & Tapped

Double duty
in Philly
KYW-AM Philadelphia National Sales Manager Michael Berkowitz has added Infinity sister station WPHT-AM to his portfolio. "Michael's exceptional relationships and strategy will allow us to build on the natural synergy between KYW's All News and WPHT's Talk formats," said KYW/WPHT GM David Yadgaroff.

New Tribune tech boss
Darko Dejanovic, who has been VP/Chief Technology Officer for Tribune Publishing since 2002, has been promoted to VP/CTO for the entire company, overseeing technology strategy, development and operations for broadcasting and all other units, as well as publishing.

RBR Radar 2004

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

RBR Close Up: Mindshare's Jon Mandel comments on AAAAs letter to John Hogan; Hogan responds
It turns out that there's a bit more to our exclusive on the AAAAs letter to CC Radio CEO John Hogan regarding concerns on his Less is More initiative according to Mandel who states: he wanted to "do [quite a bit] more with that letter. I'm a member of the AAAAs Board of Directors [the first time a media person has ever been a member]. Literally this morning [yesterday] in this meeting we talked about instead of that letter coming from that committee, in truth that letter should have come from the board, because it affects more than just media. There are a lot of problems with what they're doing at Clear Channel. Let me give you just one-and we may ramp it up, we may not: In a car ad, where you've got to have, by law, 20 seconds of disclosure on certain details, you can't do it in :30. You need :60s for car ads. So right away, there are all kinds of issues, I believe...there might be even restraint of trade issues. But the lawyers wouldn't let me say that [in the letter]. RBR observation: When we said this was just the tip of the iceberg we were not just kidding. This problem has taken years to grow now it is the process of being addressed. Mandel on the other hand tells RBR & TVBR - "I think there are some severe problems with it. If Clear Channel weren't so greedy-it's typical of them--in trying to dress up something that's good for them as being good for us when in fact it isn't (it is, but marginally)."
12/15/04 RBR #243

Powell Pardoning Private Ryan?
Numerous reports proposing that the use of the F-word in the airing of "Saving Private Ryan" by a majority of ABC TV affiliates be excused. It's expected that he will get his way when his four colleagues on the Commission cast their votes.
RBR observation: So you roll the dice and take your chances. Roll snake eyes now and pay up to 32.5K. If Congress ever gets around to it, the price will be jacked up to as much as 500K.To clarify, use the F-word under any circumstances planned or inadvertent and you will be fined. Or maybe not, if you have context. Is that clear? Indecent issue not going away. See January Radio and Television Business Report - The Real Media Business Magazine.
12/15/04 RBR #243

Grading the guru:
How'd Bob Coen do?
before we embrace his 2005 projections, shouldn't we take a look at his track record for 2004? As Coen noted, he did pretty well - - underestimating overall national ad spending a bit, while being a bit too bullish on local. The total increase in ad spending now projected for 2005 is now 7.4%, outpacing his forecast of 6.9% a year ago, but up only one tenths of a point from his June revision. His worst call, though, was radio. He was much closer to the mark on TV, with national spot, syndication and local all coming in even RBR observation: Print the charts attached for pacing.
12/14/03 RBR #242

Wal-Mart a win for radio;
Auto not so hot
Long hold-out Wal-Mart finally used radio advertising - - and it worked. But the important auto sector is still soft, which is depressing radio ad sales figures. After admitting that it had miscalculated and was losing market share, retail giant Wal-Mart accelerated ad spending and added radio to its usual TV-newspaper mix. That followed an experiment in radio advertising by Wal-Mart a few months ago, which had long been sought by the RAB. "It must have worked," stated Wachovia Securities analyst Jim Boyle. RBR observation: Agree and keep it up radio. RAB's hard work paid off. Now its local. 12/14/03 RBR #242

Did FCC set 'em up
to knock 'em down?
That's what Peggy Charren of Mediachannels.org and Action for Children's Television is saying. Her argument is that media ownership consolidation is the cause of indecency programming. So when FCC Chairman Michael Powell resorts to extreme punishments for purveyors of indecency, he's going after the very same people he empowered in the first place.
RBR observation: Charren says Powell is inflating the complaint total. At the same time, PTC's Brent Bozell says he's under-reporting complaints. If we can't even agree on the basic 1st grade arithmetic of indecency, how close do you think we are to an overall solution? 12/14/03 RBR #242

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