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Volume 24, Issue 245, Jim Carnegie, Editor & Publisher
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Tuesday Morning December 18th, 2007
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Radio News ®
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 Martin front and center?
The center we're thinking about is the one in the center of a dart board commonly called a bullseye. FCC Chairman has an Open Meeting agenda on sunshine notice which promises a little something to deplore no matter where one stands on the watchdog-legislator-stakeholder continuum. No matter what happens, it won't go far enough, or it'll go too far. Today's meeting will likely feature a vote on Martin's proposal to eliminate cross-ownership restrictions in the top 20 markets. Beyond that, other items on the docket include: * minority/female/SDB media ownership; * a look at localism with the strong possibility of new measures aimed at broadcast programming and reporting requirements; * and national ownership caps for cable MSOs. Martin resisted direct calls from senators at last week's Commerce Committee FCC oversight hearing to postpone the vote, citing his belief that there is no possibility of building a political consensus on the cross-ownership issue. Enactment of a Byron Dorgan (D-ND)-Trent Lott (R-MS) bill to delay today's vote appears to be tardy, but Dorgan may well bring back his Resolution of Disapproval tactic for a return engagement, this time without Dennis Hastert (R-IL) nor Tom DeLay (R-TX) available to kill it in the House. And past and present Democratic presidential candidates John Kerry (D-MA) and Barack Obama (D-IL) have promised to put legislation in place to deny the funding necessary to implement the easing of cross-ownership restrictions if, as expected, Martin gets his 3-2 party-line victory.
RBR observation: This meeting is almost a mortal lock to produce howls of protest from all corners of the debate, a flurry of legislative activity and a visit to the nation's judiciary system. As such, if you have any plans that hinge on any of the issues before the Commission today, we'd write them down in pencil for the time being.
Don't fire until you see th...Oh, go ahead and fire
Byron Dorgan (D-ND) is not waiting around to see what FCC Chairman Kevin Martin has up his sleeve before going public against it. In fact, he's rounded up a 24-member bipartisan posse of senators, including four Republicans and one independent, informing Martin that if he goes ahead with his plan to remove cross-ownership restrictions in the top 20 markets, they will "immediately move legislation that will revoke and nullify the proposed rule. We are notifying you and others of this proposed action in order to make certain you understand the consequences of ignoring the need for and the right of the American people to play a constructive role in attempts by a federal agency to change rules that have substantial impact on the American people. In light of this, we request and expect that you will postpone the action scheduled for December 18, 2007." The letter cites lack of proper window for citizens to read, understand and comment on the proposed rule change, only 28 days from the proposed rule's unveiling on 11/13/07 until 12/11/07. Martin has said that to the contrary, the public has been given ample time to discuss the issue of cross-ownership, and that his decision to release the proposal in advance was an extraordinary and unnecessary act done in deference to the many requests the FCC has had to see the proposed changes prior to an open meeting vote.
Joining Dorgan in signing a letter to Martin stating their intentions are Commerce Committee Chair Daniel Inouye (D-HI) and Ranking Member Ted Stevens (R-AK); current presidential candidates Barack Obama (D-IL), Chris Dodd (D-CT) and Hillary Clinton (D-NY); and Olympia Snowe (R-ME), Trent Lott (R-MS), John Kerry (D-MA), Ron Wyden (D-OR), Maria Cantwell (D-WA), Kent Conrad (D-ND), Claire McCaskill (D-MO), Mark Pryor (D-AR), Blanche Lincoln (D-AR), Bob Casey (D-PA), Diane Feinstein (D-CA), Jack Reed (D-RI), Bernie Sanders (I-VT), Russ Feingold, (D-WI) Jon Tester (D-MT), Barbara Boxer (D-CA), Larry Craig (R-ID), Joe Biden (D-DE), and Bill Nelson (D-FL).
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Analyst worries about PPM delay
Although shares of Arbitron have fallen double digits since announcing a nine month delay of its Portable People Meter (PPM) rollout, Lehman Brothers analyst Anthony DiClemente is more concerned about the impact of the PPM rollout delay on radio companies, saying "we see this primarily as yet another hurdle for the radio industry to confront." In a note to clients, says the delay of commercialization of PPM means that "another year will pass with the majority of radio audiences being measured using a methodology that is subpar to other media competing for the same advertising dollars, pushing back the time horizon for radio to gain the benefit of credible audience measurement." DiClemente notes that the 2005 Forrester Research study on the impact of radio switching to passive electronic measurement estimated that not having PPM will cost the radio industry 40-50 million in 2008. "We continue to remain of the view that radio is challenged by the fact that it is currently not as credibly measured as other major media, and that the delay in the PPM rollout has only extended the horizon for the radio industry improving its measurability," the analyst wrote. Even if Arbitron is able to resume PPM commercialization in September, as planned, DiClemente is skeptical. "We note that the shift from a more gradual rollout of two to three markets per quarter to eight markets in all in September 2008 is aggressive and we believe there is a risk of further delay until at least December 2008," he told investors.
 RBR/TVBR expands;
Kaufman on board
Moving faster every day in the electronic business, the skills of key executives become more precise and focused. RBR/TVBR has been searching for the past year to find the right quality of broadcasting executive with front line experience, plus a strong passion for the radio and television medium, to join our team. Today, RBR/TVBR publisher Jim Carnegie announces that Dave Kaufman has joined the RBR/TVBR staff in our Sales/Marketing department. Kaufman, a 36-year front line broadcast executive, most recently spent the past five years as VP of Affiliate Relations for ABC Radio Networks and, prior to ABC, seven years with Westwood One as VP/GM and VP Affiliate Relations Metro Networks/Shadow Broadcast Services. His experience also includes 25 years on the station rep side, 23 of which were with Major Market Radio Sales, a rep firm of Interep.
Kaufman says, "Over the past 20 years if you have spent any time in the radio business you know who and what RBR is. Also, the high level of integrity RBR, TVBR and the company represent. What is exciting today is having the opportunity to take my years on the front line and apply this experience to the next level with the RBR & TVBR team. It is the ultimate for any broadcaster today to be a part of the electronic media evolution. Knowing that I can help to make a difference and RBR/TVBR gives me this shot to do just that, make a difference," said Kaufman.
"RBR/TVBR always attempts to bring on broadcasters with a key level of experience that adds depth to our company team roster. Dave Kaufman, with his network and rep knowledge, will be valuable to any company doing business with RBR/TVBR. The saying of 'Been There Done That' is what best describes what RBR & TVBR needed and I am glad Dave is with us," said RBR/TVBR publisher Jim Carnegie. "Today, more than ever, our Radio & TV business needs experienced broadcasters as we all face new challenges in this electronic media world - and I state this emphatically - Experience, there is No Substitute," added Carnegie.
For many of you that know Dave Kaufman, he can be reached at [email protected] or at 973-839-8151. He is in the saddle and hits the ground running when RBR & TVBR begins another new and interesting broadcast media publishing year on 01/03/08. RBR/TVBR: First - Fast - Factual + Independently owned for 25 years.
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Ad Business Report TM
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Arbitron releases RADAR 95
Arbitron announced the release of its December 2007 RADAR radio network audience reports (RADAR 95), which now include PPM respondents from the Houston-Galveston and Philadelphia metro markets combined with diary respondents from all other markets. RADAR 95 marks the addition of PPM respondents as well as an increase in sample size to 200,083 respondents--exceeding Arbitron's sample size goal of 200,000 respondents for this report. By 12/08, the sample will increase to 300,000 respondents. Overall, RADAR 95 had 10 networks up; 27 were flat; and 19 were down between 3-10%, two networks were down greater than 10%. Jones MediaAmerica's Adult Power radio network tops the list among P12+ and Adults 25-54. Dial Global showed some impressive ranker movement in prime target demos. For Adults 25-54, its Digital 24/7 was up 65.7% and its News & Information was up 23.7%. For 25-54, DG is now ranking 2nd and 3rd. On the flip side, Westwood One's Traffic II Sponsorship was down 7.4% in that demo. "Our RADAR rated inventory continues to be an important category for our company. We are pleased and excited by the latest results and are committed to growing these offerings for our advertiser clients." Charles Steinhauer, DG EVP/ Operations tells RBR. For Adults 18-49, DG's Contemporary was up 18.5%. DG now holds 1st and 2nd place for that demo, in fact. Other big movers included ABCRN's Advantage--up 10.5%; their Young Adult was down 10.9%. For Gross Impressions, Dial Global offset an otherwise flat change for Network Radio and edged ahead of AURN to rank 4th in Total Gross Impressions after ABC, PRN, and WWO.
| See the chart | See the main RADAR 95 charts here |
Sima Birach, Jr. taps Castleberry for "Twin Star"
Sima Birach, Jr. tells RBR Red Zebra Broadcasting's (Redskins Radio) Vice President of Operations, Tod Castleberry, has resigned his position to be Chief Operating Officer of Twin Star, a new emerging media startup from Sima (he's the CEO) that incorporates radio and TV properties with a major ad agency component/division. Twin Star CMO Lisa Wynne tells RBR it's a completely separate company from Birach Broadcasting, but is still rooted in traditional media-TV, radio. More details will be given in a few weeks, but we can say that Sima has hired a few strong execs for this new venture. Tod's last day at Red Zebra will be 12/28.
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 Major advertisers and agencies
take center stage at RAB2008
As part of its new format, the Radio Advertising Bureau will give Investment & Activation for marketers, advertisers, and agency representatives center stage at RAB2008. Representing some of advertising's biggest spenders, Rex Conklin, Media Director, Wal-Mart Stores; Kim Vasey, SVP/Director, Radio, mediaedge:cia; Maribeth Papuga, SVP/Director, Local MediaVest, and Laurie Clark, Coca-Cola, Atlanta, will participate in a panel discussion that will give attendees insight into what clients and agencies are looking for from their media partners, and how radio can meet those needs. Winning strategies for maximizing the multicultural marketplace will be discussed on a panel of major advertisers that includes David Rodriguez, Multicultural Market Manager, Hispanic, Ford Motor Co.; Rosa Serrano, SVP Multicultural, Initiative Media; Caleb Windover, Managing Director, 42 Degrees/MediaVest; and Ken Rye, Multicultural Marketing for Home Depot. The importance of the 800 billion African American market will include panel participants Carol Sagers, Director, African American & Asian Marketing, McDonalds USA; Kristyn Page, Multicultural Marketing Specialist, The Macy's Company; Gwendolyn Kelly, Senior Manager, African American Marketing, Wal-Mart; and Clifford Franklin, CEO, Fuse Advertising.
IPG shuttering Media First; Bill Cella to leave
Interopublic Group (IPG) has decided to move its Media First International, a media agency acquired in 2002, into Initiative NA, effective 1/1. Also on that day it has been announced Bill Cella will step down as CEO of its Magna Global Worldwide unit and as vice chairman of DraftFCB. Cella has led Magna Global since its formation in 2001. Said Cella in a statement: "Throughout my career, I have always been motivated and attracted to working on world-class brands with world-class people and delivering significant results. At Magna, I believe my job is done and I am proud of my accomplishments. I am looking forward to the next chapter which will include the opportunities that a combination of traditional and digital media represent for the future." Media First will be shut down and CEO Ed Weiner will reportedly become a group account director at Initiative handling former Media First accounts. Media First clients include Cablevision Systems, Vtech, Delta Dental, Northwest Airlines, and Fuse.
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| Washington Business Report TM |
Markey complains about FCC data
Subcommittee on Telecommunications and the Internet chair Ed Markey (D-MA) has a preview of a GAO report in hand noting a dearth of minority and female broadcast owners. He further notes GAO's difficulties in completing the study due to the lack of pertinent ownership information at the FCC. GAO said that information was often incomplete or not readily available. "It is past time for the FCC to address our nation's abysmal record on female- and minority-owned broadcast media," said Markey. "The FCC should work diligently to address this important public policy matter soon. Further, the FCC must take action to improve its data collection and management program so that in the future, better and more comprehensive data are available upon which to base policy decisions." Markey also cited stakeholder positions on cross-ownership based on the GAO study. It found that 21 of 30 business stakeholders were in favor of repealing the rule restricting such combinations, but only one out of five stakeholders representing newspapers were looking for a repeal. The full GAO report is expected to be completed early next year.
 FEC goes local with new feature
Are you wondering how much money is being stored up for the 2008 battle for Congress in your state's senatorial contest (of contests if you're in Wyoming or Mississippi)? How about your own Congressional district? A new campaign map available at the Federal Election Commission's website puts these facts a few mouseclicks away. The baseline information on the front page of fec.gov shows that Democratic House candidates have raised 142.5M and spent 70.4M, compared to Republicans who have raised and spent 97.2M and 52.2M, respectively. Democratic Senate candidates have raised 117.2M and spent 35.2M, compared to Republicans, who have raised and spent 47.6M and 13.6M, respectively. However, the outstanding feature is the associated map. Just click on your state to check out the fundraising prowess of the senate candidates in your state as well as each candidate in each congressional district. Then make sure you do what's necessary to get your fair share.
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| Media Markets & Money TM |
Close encounter in Wisconsin
Magnum Communications has the keys and the deed to a trio of stations in Reedsburg WI, according to brokerage firm Kalil & Co., which handled the deal. Magnum acquired WBDL-FM, WNFM-FM & WRDB-AM from NRG Media for 1.1M. It brings Magnum's group of stations up to eleven total, all located in Wisconsin.
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| Media Business Report TM |
Talkers back to the news megaphone
The biggest news story during the week of 12/2/07-12/7/07, according to the Project for Excellence in Journalism, was the 2008 campaign with a 19% share of the news hole, followed by the situation in Iran, which grabbed 11%. Talkmeisters were obviously paying attention to the coverage of those two sagas, and upped their share of the talk hole to 34% and 18%, respectively. After that, topics of interest between the journalists and talkers began to diverge. Both thought domestic terrorism was a 5% topic, but newsers placed it #4 behind a 7% focus on the Omaha mall shooting, while talkers were putting it slightly behind immigration, which got 5% of their attention. Meanwhile, Talkers took a look at one of their own: Don Imus came in #8 with 2%, but was absent on the news top ten chart.
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| Entertainment Business Report TM |
 ABC News Radio details
year end programming
ABC News Radio is offering a full slate of 2007 Year End Programming. The special programming includes long form and short form offerings. The long form programs will include: "Playback 2007" - a look back at the top stories from this past year. This hour-long program is hosted by ABC News Radio correspondents Aaron Katersky and Cheri Preston. Other programs include two special year-end editions of "Perspective," ABC News Radio's weekly news magazine. The is a compilation of ABC News' John Stossel material, and the second will include a recap of 2007's big stories. The short-form programs are 60 second pieces include: "Law and Justice 2007 in review" which takes a look at look back at some of the most important and interesting court cases and judicial actions from 2007. It's hosted by ABC News Senior Law and Justice Correspondent Jim Avila. ABC News Business Correspondent Betsy Stark also hosts "Year-End Tax Tips" a helpful guide to year-end financial and tax planning.
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| Internet Business Report TM |
Online holiday retail spend up 18%
comScore released an update of holiday season e-commerce spending for the first 44 days of the November - December 2007 holiday season (November 1 - December 14). More than 22 billion has been spent online during the season-to-date, marking an 18% gain vs. the corresponding days last year. Monday, December 10 reached 881 million in sales (up 33% versus last year), registering as the heaviest online spending day of the season and the heaviest online spending day on record. This year's 18% online retail spending growth rate stands well below the 26% rate at the same time last year. An analysis of online spending by household income reveals that slower growth among lower income households is weighing on the overall season-to-date growth. While households earning at least 100,000 have increased their online spending 28% versus year ago, households making less than 50,000 have increased their spending by just 10%.
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| Transactions |
3M WAMD-AM Baltimore MD (Aberdeen MD) from First Broadcasting Investment Partners LLC (Hal Rose et al) to Salem Media of New York LLC, a subsidiary of Salem Media Corporation (Stuart W. Epperson, Edward G. Atsinger III). Cash. Salem is buying to downgrade, enabling upgrade of its WWDJ-AM Hackensack NJ in the New York market. [File date 11/29/07.]
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| Stock Talk |
How low can they go?
Continued worries about the economy, not helped by former Fed chairman Alan Greenspan giving a speech on "stagflation," sent stock prices lower yet again on Monday. The Dow Industrials were down 173 points, or 1.3%, to 13,167.
Most radio stocks joined the down trend. The Radio Index dropped 1.269, or 1.3%, to another nine-year low of 95.940. Regent, a penny stock, plunged 5.8%. Beasley dropped 5%.
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| Radio Stocks |
Here's how stocks fared on Monday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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40.86
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-0.74
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Google
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GOOG
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669.23
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-20.73
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Beasley
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BBGI
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6.41
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-0.34
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Hearst-Argyle
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HTV
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21.68
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-0.12
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| CBS CI. B |
CBS |
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26.14
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-0.18
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Journal Comm.
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JRN
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8.44
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-0.07
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| CBS CI. A |
CBSa |
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26.29
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+0.14
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Lincoln Natl.
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LNC
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56.16
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-1.07
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| Citadel |
CDL |
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1.99 |
-0.06 |
Radio One, Cl. A
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ROIA
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2.06
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-0.06
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Clear Channel
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CCU
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34.75
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unch
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Radio One, Cl. D
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ROIAK
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2.10
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-0.01
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Cox Radio
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CXR
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11.20
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-0.25
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Regent
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RGCI
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1.45
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-0.09
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Cumulus
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CMLS
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7.27
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-0.09
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Saga Commun.
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SGA
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6.38
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+0.01
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Debut Bcg.
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DBTB
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0.55
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-0.01
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Salem Comm.
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SALM
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6.72
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+0.02
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Disney
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DIS
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32.99
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-0.02
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Sirius Sat. Radio
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SIRI
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3.15
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-0.16
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Emmis
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EMMS
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4.54
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+0.08
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Spanish Bcg.
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SBSA
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1.82
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-0.03
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Entercom
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ETM
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14.03
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-0.47
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SWMX
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SMWX
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0.01
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unch
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Entravision
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EVC
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7.25
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unch
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Westwood One
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WON
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2.08
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unch
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Fisher
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FSCI
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35.90
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-0.35
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XM Sat. Radio
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XMSR
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12.91
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-0.64
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Bounceback
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 We want to
hear from you.
This is your column, so send your comments and
a photo to [email protected]
FCC commissioner Michael Copps says "...help overcome the "catastrophic "results of radio consolidation..."
To define "catastrophic" I believe we have to go back to January 1996, the month before deregulation. What was it like? Every FM station had a manager and a staff dedicated to that FM. The FCC wasn't thinking about redefining localism rules. Jocks were hired on talent not just the sole ability to voice track. Christmas was a good thing, not the time of the year to fear a batch of pink slips coming down the chimney. When you heard the term "regional director" you thought of a person employed by a large insurance company, or McDonalds, but not radio.
You could air fun station promotions and it wasn't a sin if it wasn't sponsored. You could run something up the flagpole by just talking to the guy in the big office (without him/her having to call three people who had to get approval from three other people). All the radio executives we read about today, we didn't know who they were in January '96 and could have cared less. If you wanted to buy a radio station, you didn't have to buy 6, nor did you have to be concerned that the person you were competing with had an advantage because he was buying 15 others markets. The list of differences is nearly endless. Comparing radio January '96 to January '08...perhaps Mr. Coops' term "catastrophic" is understated.
Fran Maze
FM Consultants
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Below the Fold
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Ad Business Report
RADAR 95
Release of its December 07 which now include PPM from Houston...
Media Markets & Money
Close encounter in WI
Magnum Communications has the keys and the deed...
Washington Business Report
FEC goes local with new feature
Wondering how much money is being stored up for the 08 battle for Congress...
Internet Business Report
Online holiday retail
Spend up 18% more than 22B has been spent online...
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Stations for Sale
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Silver City, NM
Powerful Hispanic FM
Lovington, NM
Heritage AM/FM Combo
Explorer Communications
E-mail: [email protected]
 Market your Stations For Sale
in our daily epapers.
Contact
Jim Carnegie
[email protected]
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Radio Media Moves
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In like Finn
 Dan Finn, skipper of Greater Media's armada of New Jersey radio stations, has a little extra embroidery on his business card with his promotion to SVP/Regional GM. Finn oversees three AMs and four FMs and is a board member of the New Jersey Ad Club, and is the immediate past Chairman of the New Jersey Broadcasters Association.
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More News Headlines
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UMG and XM
settle dispute
Universal Music Group and XM Satellite Radio announced they've resolved the lawsuit brought by UMG against XM over its Pioneer Inno, a portable satellite receiver with advanced recording functionality. As part of the agreement, UMG becomes the first music company to reach a multi-year deal covering all XM radios with advanced recording functionality, including both those currently available as well as future product releases. In addition, UMG will withdraw as a party to the complaint filed by the major record companies against XM in May, 2006.
WPLR's Chaz & AJ raise 76,000 in cash and toys for needy kids
This past Friday morning was the 5th Annual Cox Radio's 99.1 FM PLR Chaz & AJ Toy Drive for the Kids of Connecticut. The event raised nearly 76,000 dollars in cash and toys for needy children in Connecticut. Chaz & AJ collected new unwrapped toys for the children at the Rushford Center in Middletown, Children's Center in Hamden, The Boys & Girls Village in Milford, AIDS Project New Haven and countless families across Connecticut. Special guests that appeared included AG Richard Blumenthal performing his rendition of Santa Baby and "The Political Choir" with Secretary of State Susan Bysiewicz, The Mayors of New Haven, East Haven, West Haven , Shelton and Ansonia. There was also music provided by The Smithereens' Pat Dinizio. Live from LA, Bill Cosby, RC Smith from the Rachel Ray Show, local media stars, Santa, Mrs. Claus, Scrooge and more.
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International
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Bulking up in Bulgaria
Emmis Communications announced that it has acquired Inforadio, a national radio chain broadcasting in 13 Bulgarian cities. Inforadio is Emmis' third national radio brand in Bulgaria; the company also operates Radio FM+ and Radio Fresh there. "This acquisition demonstrates our belief in the growth of the Bulgarian economy, especially since its accession to the European Union this year," said Paul Fiddick, president of Emmis International. The price was not disclosed, but Bear Stearns analyst Vic Miller estimated that it was "in the high-single/low-double-digit range of millions."
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RBR Radar 2007
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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Multicultural fined
for contest violations
Demonstrating once again that the FCC is very serious about enforcing its rules about running on-air contests, Multicultural Radio's KAZN-AM Los Angeles (Pasadena, CA) has been fined 12,000 bucks for what the Commission notice of apparent liability calls its "repeated and willful violation" of the rules requiring a station to fully and accurately disclose the terms of contests and conduct the contest as advertised.
RBR observation: This is not the first time that we've seen a licensee get tripped up by a sponsor not delivering on a promised contest prize. At least in this case it was only a few TV sets and, at least by our reading of the FCC's notice of apparent liability, the station doesn't have to deliver the missing three sets because no prize winners were ever announced for them.
12/17/07 RBR #244
Broadcasters, Associations Strike Back at micromanaging from DC
No one knows yet what will be in the Proposed Rulemaking on Broadcasting Localism that FCC Chairman Kevin Martin will unveil at tomorrow's meeting, but based on what's been leaking from the Commission into press reports, broadcasters are worried that Martin wants to bring back the bad old days of excessive regulation and micromanaging by Washington bureaucrats.
12/17/07 RBR #244
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RBR Classifieds
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New Positions
Available in RBR Classifieds.
See Radio Careers
Additional Positions
Available in RBR Classifieds.
See Radio Careers.
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©2007 Radio 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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