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Volume 21, Issue 245, Jim Carnegie, Editor & Publisher
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Friday Morning December 17th, 2004
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Publisher Appointment
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 Jim Carnegie, Owner/Publisher & Editor has promoted and added responsibilities of Managing Director to Carl Marcucci of Radio & Television Business Report - The Real Business Magazine.
Besides maintaining his Sr. Editor position of RBR & TVBR morning E-Papers and afternoon Media Mix, Carl will stand by my side in the direction and execution of our monthly Print and Digital Magazines for our continued growth with the new and next generation of young aggressive passionate broadcasters. I am of the 55+ demo, not retiring, - But - we all in this media business must teach, help, push and encourage those of the new generation with the willingness to learn and who demonstrate with the passion for our broadcast medium the opportunities for self growth. We who must teach must also have patience and 55+ this is not easy but the will is there for tomorrow.
For the past six years Carl has always risen to the occasion with ample passion for radio, TV and all areas of our media business. Needless to say this is not a prop your feet up position but in the trenches out front point post and hope each of you will today extend congratulations to him because Monday - "Carl we start school to future your education and work together for the success today."
Ps: Fact - Carl's travel radio is larger than your carry on luggage. Passion, he prefers to drive to business events rather than fly so he can scan the dial and listen to what happens in a local market. That's passion.
Respect,
Jim Carnegie
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Radio News®
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 Broadcast rights owners
ready to play hard ball
If you thought terrestrial radio rights owners were just going to roll over and let Major League Baseball re-sell the same rights to XM Satellite Radio for 650 million bucks (10/20/04 RBR #206), think again. RBR/TVBR has heard and confirmed that broadcast station owners have gathered to form their own major league team to fight back and not let MLB just take its bats and balls over to XM. One broadcast rights owner told RBR/TVBR "Look for us to fight back early next year as MLB is in for a very big surprise." Having paid millions for the exclusive local radio rights, the broadcasters are not about to let satellite radio broadcast the same game into their local market, even if receiver penetration is still minuscule. The broadcasters are not even close to coming to terms with MLB on this issue, so we expect to see Broadcasters vs. MLB hit the courts right after the dawn of the New Year.
RBR observation: MLB has a lot to learn, especially the owners, that their marketing strategy is not hitting anything out of the park. The local city name is always before the teams. Pittsburgh Pirates, New York Yankees. Not Sirius Pirates or Yankees - MLB American League. We already know how Infinity COO Joel Hollander feels about broadcast rights and the fees - they have to make financial sense and a profit or you are out of here. We agree with Hollander. The key if local broadcasters that really want MLB to be apart of their local programming content, which is always king, then best remind these owners and MLB of the facts of local radio and local TV does local promotions, local news, and local on air talent in radio and TV are the cheer leaders to put the local fans in the stands. The stations aren't going to toss out millions without MLB getting their act together. The guy you may want to consult is Jeff Smulyan, once owner of the Seattle Mariners - ah sorry to bring it up Jeff.
No baseball for DC
Radio and TV general managers in the Washington, DC market will be able to spend some quality time with their families this holiday season, instead of crunching numbers to decide how much to bid for local broadcast rights to the Washington Nationals baseball team. There won't be any. Team President Tony Tavares had just hired a staff and was getting ready to start soliciting bids for the broadcast rights when a bombshell exploded this week - - the DC City Council nixed plans for public financing of a new stadium, which had been a cornerstone of Mayor Anthony Williams' agreement with Major League Baseball to win relocation of the former Montreal Expos. Now, the team is offering refunds to people who'd made deposits for season tickets and suspended operations. "We don't try to pursue radio agreements. We don't try to pursue television agreements. We just basically shut down," Tavares told the Washington Post. What happens next is anyone's guess. A rival baseball group in DC's Virginia suburbs may renew its bid, as may some other cities. But for now, the team formerly known as the Montreal Expos has nowhere to play ball next season.
RBR observation: See MLB with all the Bull Durham you can't even back up a Baltimore Colts moving van for the Montreal Expos. Ah, there is that cities first name again. MLB strike two. MLB learn local and local marketing. Or it will be - up in the sky, it's a plane, no it's a bird Expo with no local identity and no fans in the stands.
Broadcasters cool to PPM price hike
We're hearing from broadcasters about the 40-65% price hike that Arbitron has said will be needed to move from diaries to Portable People Meters (PPM), but nobody is telling RBR that they're ready to write the check. Will the radio industry buy in? One broadcaster tells us PPM could just be another tool for ad buyers to drive down rates.
Editor's note: Radio and Television Business Report - The Real Media Business Magazine - will have full eye close on the PPM and LPM in our February issue. It's an issue you will not want to put down and read the whole thing. See right hand column for what to expect. The Lights are On, BUT. Contact April McLynn to reserve your copy of this report 703 492-8191.| More... |
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 Legal eagle-eye view of satellite indecency
The decision of the FCC not to impose the indecency regulatory regime on satellite audio services was remarkably swift. Swift, too, is the reaction of communications legal veteran John King, owner of law firm Garvey Schubert Barer. He notes not only the speed of the FCC inaction, but the Commission's interesting choice of messengers. For anyone interested in a sneak peek into the internal workings of Washington, this is a must read.
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Sinclair, watchdogs trading salvos
A watchdog organization called SinclairAction.com, itself comprised of watchdogs, has asked for balance in editorial opinion expressed on the newscasts of television stations belonging to Sinclair Broadcast Group. Sinclair and one of the watchdogs are now trading broadsides. MoveOn.org, noting that Sinclair had offered to take the watchdogs up on their offer if MoveOn.org emails and posts Sinclair opinion its own resources, gladly agreed to the exchange. "If Sinclair will agree on a way to share its license to broadcast into millions of homes, we'll gladly send our members an email with a Sinclair message," said Eli Pariser, executive director of MoveOn.org. Media Matters for America President/CEO David Brock also weighed in. "The largest owner of television stations in the country is now equating itself with an advocacy organization, rather than a media outlet." He argued that the equation is inappropriate. "The real issue is that Sinclair Broadcast Group is abusing its stewardship of the public airwaves by not providing airtime for opposing viewpoints."
Another hat going into the TX gubernatorial ring?
Word is out that Kinky Friedman, author, musician, humorist, columnist and collector of frequent flyer miles on "Imus in the Morning," is all but a shoo-in to announce his candidacy for governor of Texas. That would make him the second individual of peripheral yet special interest to broadcasters, joining Senate Commerce Committee stalwart Kay Bailey Hutchison (R-TX) in that category (12/14/04 RBR #242). Friedman plans to make his announcement in early February on the Don Imus show, both over the radio and with video content courtesy of MSNBC. Unlike Hutchison, Friedman will not have to go through the rigors of a primary campaign - - he plans to run as an independent. Also unlike Hutchison, he is not apparently in any great danger of having to actually perform the job of governor. While she enjoys a commanding presence in a recent poll, Friedman told the San Antonio Express-News that his candidacy will be a long shot. "One thing is for sure:," it says on the Friedman website, "this is not going to be politics as usual and Kinky's campaign, or anti-campaign, is not expecting to have a massive war chest from which to buy the Governor's office. Rather, 'coin of the spirit' will sweep Kinky into the Governor's office. If he is elected, he promises to make Will Nelson the head of the Texas Rangers, and Laura Bush is in line to be the state's top educator.
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Adbiz©
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 Natalie Swed Stone comments on Less is More
I would like to comment on the hoopla surrounding the Less Is More Initiative
1) It is an initiative in a medium that sorely needs revitalizing
2) Clear Channel is responding to widespread press and criticism about the rampant clutter on terrestrial radio
3) Clear Channel is attempting to prepare for the future - - both as it relates to minute by minute ratings and PPM as well as the threat from commercial free music on satellite radio and others
4) Clear Channel has the right to program its stations for maximum audience and attentiveness
5) Advertisers have the right to buy or not buy and negotiate price and position
6) Why is Clear Channel the target of all of this scrutiny while others and their policies, clutter and positioning go left unchallenged? | More... |
Viacom creates CBS Marketing Group
And has named George Schweitzer President of the new full-serve marketing unit that will manage advertising and media for CBS and UPN, as well as collaborating on marketing with Paramount Television, King World, Infinity and Viacom Outdoor. The new unit will also be responsible for sales promotion, affiliate promotion, network creative services and special events including affiliate meetings and upfront presentations, as well creating and executing ad based promotional partnerships. Schweitzer was most recently CBS EVP/Marketing and Communications. Anne O'Grady and Ron Scalera, both SVPs/Marketing at CBS, will now serve as EVPs of the new group.
IPG names Steve Blamer CEO and President of Foote Cone & Belding Worldwide
The Interpublic Group announced it had named Steve Blamer as CEO and President of its Foote Cone & Belding unit. He'l assume these responsibilities from Brendan Ryan, who continues in his role as FCB's Chairman. Blamer, 48, joins FCB from Grey Worldwide, where he had most recently been CEO of Grey North America, following highly successful stints at the head of Grey's three largest agencies, in Los Angeles, London and New York. Mr. Ryan, 62, has served as CEO of FCB Worldwide since 1996 and had been working with Interpublic for the past year to identify and recruit a successor. "This is a very significant move for us. Steve Blamer is a tremendous talent and the kind of leader who has consistently proven that he can take an agency to new heights in terms of its growth and overall financial performance. He will also add to the overall management bench strength at Interpublic. I am pleased that we now have new CEOs in place at FCB and Lowe as we head into 2005," said Interpublic Chairman Michael Roth.
 Gap hires Crispin Porter & Bogusky
for men's line
Gap has tapped Crispin Porter & Bogusky Miami for its men's line business in North America. The agency said it will work with Gap's in-house marketing team to develop print and TV creative, as well as non-traditional marketing campaigns. Gap will continue to work with Laird & Partners NY on campaigns for Gap women's, GapBody, and babyGap, as well as the Gap men's business overseas.
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| Media Markets & MoneyTM |
Sillerman buys Elvis
No, we're not kidding. Robert F.X. Sillerman is back in action with a 100 million buck agreement to buy an 85% majority stake in the assets of the Elvis Presley Estate (although Lisa Marie will get to keep Graceland). Sillerman's new company, CKX Inc., will control the name, likeness and image of Elvis, along with the music catalog, Graceland visitor center complex, Heartbreak Hotel, etc. The new enterprise will conduct all of the business activities concerning Elvis Presley Enterprises, Graceland and tour operations. You, dear reader, and everyone else will have the opportunity to own a piece of this new venture. Sillerman is acquiring an inactive public company, Sports Entertainment Enterprises Inc. (OTC Bulletin Board symbol SPEA), through which to operate CKX. The stock had been trading for 10 cents a share recently, but jumped above 40 cents yesterday. Some names you know are coming on board, as Sillerman reaches back to associates from SFX Broadcasting and SFX Entertainment to staff the management suite: Michael G. Ferrel, Mitchell J. Slater, Howard J. Tytel, D. Geoffrey Armstrong and Thomas P. Benson will all be involved.
 Citadel spins on the
Providence fringe
While it remains to be seen if Farid Suleman is selling his radio group, Citadel Broadcasting, there can be no doubt that he is selling two of the group's FM properties in the Providence market. WAKX-FM and WKKB-FM are going to the rapidly-growing Davidson Media Group. For his 7.5M dollar cash outlay, Peter Davidson will be getting two of Citadel's lesser lights in the market - - the FMs generally manage to break the Arbitron one-share threshold only if their 12+ ratings are added together. What are Davidson's plans? "The Providence market fits very nicely with our plans to expand multicultural programming and offer both listeners and advertisers greater opportunities," he said. "For the first time the Providence area will have full market coverage Spanish radio on the FM dial, 24 hours a day, seven days a week."
RBR observation: How does this all fit in to the Citadel tea leaf pattern? Under the new radio transaction/market definition rules, you cannot sell a grandfathered cluster intact. The BIA database used to determine FCC compliance finds 48 stations in Providence, supporting an eight-station cluster. Citadel claims two AMs and five FMs there. No problem, right? Wrong. It also has an AM and two FMs in New Bedford-Fall River MA, an Arbitron market embedded in Providence. So the real total is three AMs and seven FMs - - two FMs too big. So the evidence is in place for those who may wish to interpret this as a house-cleaning maneuver prior to a sale.
Pembroke doubles up in Olean
Robert Pfuntner' Pembroke Pines radio group is expanding its holdings in upstate New York, and getting duopoly into one of Arbitron's newer markets, Olean NY. Pfuntner already has Country WZKZ-FM there. Now he'll be adding HOt AC WMXO-FM and Nostalgia WOEN-AM, according to broker Richard A. Foreman. The sellers are Bruce Danziger and Jeffrey Shapiro. The price of the stations was not disclosed.
Close encounter in Charlotte
Broker Stan Raymond informs RBR that Norberto Sanchez has become the first the first Hispanic station owner in the North Carolina capital. His Norsan group has completed its 2M dollar acquisition fo WGSP-AM. The deal works out as one minority to another: the seller is Willis Broadcating, which has been selling off a portion of its portfolio pursuant to a consent decrees with the FCC (6/28/04 RBR #125).
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| Washington Beat |
Political leaders, telecom execs look at taxes
Executives from Verizon and AT&T were among those sitting with a group of political leaders representing jurisdictions at the state level or smaller. The subject: taxes. Verizon's Thomas Tauke explained those on his side of the table see a "...new world in telecommunications, not bound by jurisdictional lines. We want something that is predictable, workable, easy to administer and fair to all in the industry." Political leaders, however, want to keep open a lucrative source of income. Whatever the outcome of talks and/or court action, members of the National League of Cities, led by Washington mayor Anthony Williams, stipulate that they want to retain a piece of the pie. Also participating on the government side in what will be an ongoing dialogue are National Governors' Association President and Virginia Gov. Mark Warner, as well as other mayors and governors and representatives of the National Association of Counties, Council of State Governments and National Conference of State Legislatures. Broadcasters are not subject to the talks, but cable operators are.
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| Programming |
Ed Schultz leaves KFGO-AM flagship
KFGO-AM Fargo, ND announced Jones Radio Networks' Ed Schultz, host of KFGO weekday morning show "News and Views," will leave that post Monday, instead focusing on his national radio show, which will now run on KFGO from 2-5 p.m. weekdays. To accommodate that change, the "Jack and Sandy Show" now heard from 2-6 p.m. weekdays, was immediately discontinued. KFGO is conducting a national search for Schultz' replacement on "News and Views," stated a noon-hour release from the station. The talk show also airs in the North Dakota cities of Bismarck, Minot and Dickinson.
 Dr. Laura takes on a new day
Dr. Laura Schlessinger and former Radio Today Entertainment founder, Geoff Rich, have teamed up once again to produce and syndicate The Dr. Laura Show, effective January 1, 2005. Joining Dr. Laura and Geoff Rich as COO will be veteran radio broadcaster, Jake Russell, most recently COO of Pamal Broadcasting. The new name of the company will be Take On The Day, Inc., with offices located in New York, Los Angeles and Santa Barbara. Premiere Radio Networks will handle the satellite distribution of the program and oversee the national ad sales. Take On The Day will be responsible for all affiliate relations.
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| Transactions |
WLEE-AM/WVNZ-AM/WREJ-AM & WTOX-AM Richmond (Richmond VA, Glen Allen VA) from 4M Communications Inc. to Davidson Media Group LLC
KKHR-FM Abilene TX from Radio Layne LLC to Canfin Enterprises Inc.
WHAP-AM Richmond (Hopewell VA) from 4M Communications Inc. to MainQuad Communications Inc.
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| Stock Talk |
Let's go sideways
Profit-taking after a couple of good days sent the stock market to a mixed close. The Dow Industrials managed to gain 14 points to 10, 706, but other major indices were down.
Radio stocks were lower. The Radio Index dipped 1.746, or 0.8%, to 224.821. The biggest drop was 2.6% by Entercom, while Citadel rose 3%.
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| Radio Stocks |
Here's how stocks fared on Thursday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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37.94
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-0.85
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Jeff-Pilot
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JP
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52.64
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unch
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Beasley
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BBGI
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16.07
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-0.37
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Journal Comm.
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JRN
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17.50
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-0.16
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| Citadel |
CDL |
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16.39 |
+0.48 |
Radio One, Cl. A
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ROIA
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15.29
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+0.09
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Clear Channel
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CCU
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34.63
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-0.04
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Radio One, Cl. D
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ROIAK
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15.20
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+0.04
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Cox Radio
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CXR
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15.62
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-0.31
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Regent
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RGCI
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5.36
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-0.08
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Cumulus
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CMLS
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15.59
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-0.21
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Saga Commun.
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SGA
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16.90
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-0.14
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Disney
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DIS
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27.55
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-0.05
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Salem Comm.
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SALM
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24.99
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-0.20
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Emmis
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EMMS
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19.05
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+0.07
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Sirius Sat. Radio
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SIRI
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7.18
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-0.47
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| Entercom |
ETM
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35.00
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-0.95
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Spanish Bcg.
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SBSA
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10.27
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-0.08
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Entravision
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EVC
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7.65
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-0.09
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Univision
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UVN
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29.63
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+0.10
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Fisher
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FSCI
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47.69
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+0.14
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Viacom, Cl. A
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VIA
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35.80
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-0.10
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Gaylord
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GET
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38.60
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-0.70
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Viacom, Cl. B
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VIAb
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35.11
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+0.11
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Hearst-Argyle
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HTV
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25.72
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-0.28
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Westwood One
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WON
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25.79
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-0.01
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Interep
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IREP
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0.72
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-0.01
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XM Sat. Radio
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XMSR
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38.79
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-0.72
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International Bcg.
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IBCS
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0.02
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unch
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-
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-
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- |
-
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-
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__UNSUB__ to this email service.
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Urgent Request
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 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
Many thanks for helping on this holiday request and you still have time:
325th Honor Roll
TM Century - Dave Graupner
Interep - George Pine and crew
10 WABC-TV - Pat Liguori
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Bounceback
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 We want to
hear from you.
This is your column, so send your comments to [email protected]
On Less is More comments from MediaCom's Jon Mandel
Perhaps you should be asking Mr. Mandel about the advertising world's plans of branching out creatively to new audiences. "Free-form Indie Rock," "Classic Alternative," and "Reggae Roots" are all great ideas, but how in the world do you expect these formats to profit on the commercial band without the support of the advertising agency world?...
| More... |
Scott Winchell
Account Manager,
Clear Channel Radio's WUBT-FM Nashville
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Upped & Tapped
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Tony Jarvis named Infinity SVP/Research
Tony Jarvis has been named SVP/Research, Infinity Broadcasting, overseeing all radio research for Infinity, including audience measurement and demographic and advertising research. Jarvis joins Infinity from MediaCom where he was SVP/Director Strategic Insights Group since 2000.
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International
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Peruvian reporter arrested with
phony bomb
If you think American reporters have pulled some pretty stupid stunts over the years, they've got nothing on a TV reporter in Peru. Heidi Grossman from the news magazine program "Cuarto Poder" on America Television was arrested this week as she tried to deliver a black ball with a wick to Peru's President, Alejandro Toledo. Her news director explained that Grossman and her cameraman were filming a segment based on a survey which found that a majority of Peruvians would like as a Christmas present to have the president explode. Grossman has been charged with attempted terrorism.
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RBR Radar 2004
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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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.
RBR observation: Now the brouhaha - - apparently KRG honcho Stu Olds had not contacted all the groups involved. Next, what is slowing down the second part of the process is an internal fight over people - 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. 12/16/04 RBR #244
RBR Close Up:
Hogan responds to Mandel comments on AAAAs letter, continued
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 and as we reported Mandel said in short - There are a lot of problems with what they're doing at Clear Channel.
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. RBR Recommendation to CCU: Better Talk, More Action, and Quality Marketing. Read inside because this is your 15 minutes of fame. 12/16/04 RBR #244
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. Ferree quoted existing code in responding, "The Commission has previously ruled that 'subscription-based services do not call into play the issue of indecency'. 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. 12/16/04 RBR #244
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. TVBR 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.]
12/16/04 TVBR #244
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Radio Professionals
Salem Communications seeking experienced candidates in Radio Sales, Programming, and Management for pending acquisitions in Miami and Omaha, EOE.
See Radio Careers for more info.
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©2004 Radio Business Report/Television Business Report, Inc. All rights reserved.
Radio Business Report -- 2050 Old Bridge Road, Suite B-01, Lake Ridge, VA 22192 -- Phone: 703-492-8191
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