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Volume 21, Issue 246, Jim Carnegie, Editor & Publisher
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Monday Morning December 20th, 2004
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| RBR Exclusive |
 Spinning into '05
Joel Hollander In - John Sykes Out
It was just a question of when and according to various record industry sources this past weekend, Infinity CEO John Sykes, who was appointed in 3/15/02, will be leaving to pursue other opportunities sometime after the first of the year which also comes with a generous golden parachute. Intelligence gathered over the weekend with the assumption the announcement will be coming within a few weeks by Viacom Co-COO Les Moonves. Look for - Infinity President/COO Joel Hollander to be then anointed to CEO adding to his day-to-day ops man responsibilities at Infinity, so not much will change in that respect. Surprised? No, since at the recent UBS Media Week conference he spoke from the heart of a CEO outlining the vital issues that need fixing inside the radio group - like all the necessary capital expenditures needed to grow. There were eight (8) stations NYC, LA, Boston, Detroit, plus Dallas all seeing fresh money in marketing where Moonves and Hollander spent 14 million in various marketing promotions as a test which should show an ROI by the end of first quarter '05. Example: WCBS-FM, NYC is back on bus sides for the first time in seven (7) years. How the company was previously managed was positive for shareholders but today the radio businesses are facing new challenges and Infinity needs food to grow. It's also obvious that Moonves is going to give more than lunch money to fix and improve key Infinity radio assets and problems. RBR foresees Infinity in '05 about to shed itself of a lot of old clothing and clean the closet time. (Editor's note: All individuals were unavailable for comment.)
RBR observation: Sykes, a TV guy tapped from VH1, will likely end up back in that arena. Hollander is part of the next new young generation and by young we mean not an AARP card holding member but young with experience and the passion needed to bring radio back into the new competitive media arena. Many radio CEOs these days can't claim similar radio experience--Hollander rose up the ranks at the Infinity/CBS/Viacom chain first as WFAN-AM NY GM, where he took it to #1 in billing; then at Westwood One as CEO, where he ran it up to its highest stock price and now his current position.
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Radio News®
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November revenue boost may be head fake
With the RAB expected to report November radio revenues figures in a few days, Wachovia Securities analyst Jim Boyle is warning clients not to jump for joy if the number is good. He thinks the RAB number may be +4%, but he thinks it may indicate a monthly "see-saw" for radio ad sales, not an up trend. "We expect December to be flattish, exhibiting the up-down behavior that radio growth has shown thus far in the second half of 2004. Plus, the industry inventory-reduction is just around the corner and should significantly disrupt Q1, we believe," Boyle warned, referring to Clear Channel's "Less is More" initiative, which officially kicked in last week.
 PPM costs could lead to two-tiered ratings
Radio group heads are choking on the 40-65% price hike that Arbitron is telling them will be needed to move to Portable People Meters (PPM) from diaries (12/17/04 RBR #245). But with advertisers and ad buyers demanding more accountability, there's pressure from the people who write the checks to move to PPM measurement. At Mindshare, Kathy Crawford, President of Local Broadcast, tells RBR that the radio industry has to make a decision. "Here's the thing, radio is at a very interesting crossroads in its life as a business. And it has to decide as an industry what it wants to be when it grows up. Or is it what it wants to be when it grows up? Is this it? I mean is this where radio is? Because they could do that too, and not invest in the PPM and not move ahead and just be a sleepy little media on the map there," she said of the decision to implement PPM or not for radio ratings. And, she noted, it's primarily up to the big players, Clear Channel and Infinity, whether to make the investment and lead radio into passive metering for ratings. "To be perfectly honest with you, I met with a major broadcaster who has stations in smaller markets rather than larger markets who made it very clear to me that only a small percentage of their business came from companies like Mindshare and, as a result, for them to be spending money on certain things for a small percentage of their business may not be prudent," Crawford said. So, she can envision a scenario where radio splits into different tiers - - with some markets using PPM (the grown-ups, so to speak) and the others sticking with low-tech diaries and, presumably, getting less interest from major ad buyers.
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 Religious broadcasters:
No free pass for "Private Ryan"
FCC Chairman Michael Powell's reported efforts to get his fellow commissioners to OK the use of the F-word in ABC's primetime broadcast of "Saving Private Ryan" (12/15/04 RBR #243) is being assailed by the head of the National Religious Broadcasters. NRB President Dr. Frank Wright complains that Powell's reliance on "context" ignores another key element - - whether children are in the audience. "In one important aspect, FCC Chairman Michael Powell's assessment of ABC's handling of the indecent elements in 'Saving Private Ryan' missed the mark. Chairman Powell asserts that context is crucial in deciding whether a show is indecent. While that is certainly true, it is incomplete. Another part of the standard for evaluating indecent expressions or depictions on television is simple but equally important: Are there children likely in the viewing audience? This matter was settled before the U.S. Supreme Court decades ago (FCC vs. Pacifica Foundation, 1977). When there are children likely in the viewing audience, indecency must be restricted," Wright said. "We at NRB have great admiration for Chairman Powell. We hope his remarks do not open the door to a new standard for evaluating indecency that ignores the interests of children," the NRB President said. Since the FCC has not yet announced a decision on whether to fine the ABC affiliates who aired the movie (and many refused, citing the likelihood of being cited for indecency), the NRB boss is hoping that other members of the FCC won't go along with Powell's "context" reasoning. "I encourage the other four commissioners to consider their vote on this matter very carefully. What they decide will have far-reaching ramifications for what our children will see on television in the years to come," Wright said.
RBR observation: Most broadcasters would just be happy to get a clear indication, one way or the other, what the FCC is using as its guidepost to what is and isn't indecent. The fear that many ABC affiliates had about airing "Saving Private Ryan" (which had been broadcast twice previously without anyone being fined) was based on the increasingly erratic decisions of the FCC regarding indecency. It appears that Chairman Powell is currently on a course to make the FCC's already indecipherable indecency policy even less clear (if such a thing is possible).
PTC/NRB say networks ignore Americans' faith
With most Americans professing a belief in God (90% according to a 2003 Harris Poll) and moral values apparently playing a decisive role in this year's elections, it appears that the people who produce network television programming may be out of touch with many people in the audience. According to a study commissioned by the Parents Television Council (PTC) and National Religious Broadcasters (NRB), network television mostly ignores religion or casts it in a negative light - - with NBC cited as the worst offender.
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Plane crashes into KFI-AM LA tower; two dead
A small plane taking off from Fullerton, CA Airport struck one of CC Radio's KFI-AM LA radio towers in La Mirada, CA yesterday morning, exploding and killing both people aboard. The fire department says a man and a woman on board the small Cessna aircraft are confirmed dead, reports the AP. The plane knocked the 50-kW station off the air for an hour, KFI was back on the air shortly after. An F-A-A official in Los Angeles says the single-engine Cessna 182 struck the K-F-I Radio tower and the tower tumbled to the ground. The NTSB is investigating the cause of the crash.
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Adbiz©
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More comments on LIM
David V. Nola, Director of Sales/Morris Desert Media, Morris Communications Palm Springs, CA, writes us with comments regarding CC Radio's Less is More initiative (12/17 RBR #245): "After reading [some of the] comments regarding the Clear Channel's "Less Is More" initiative, I believe [some are] right on point but miss some other reforms that need to take place from the agency side. | More... |
 CBS to pull three taste-test spots
from SABMiller
CBS has agreed with Anheuser- Busch that SABMiller Brewing's taste-test claims in its ads are "unsubstantiated" and three will be pulled from the air. The three ads are part of SABMiller's ongoing attacks against Anheuser-Busch and Bud Light. On 11/2, Anheuser-Busch filed formal challenges with all four national TV networks against SABMiller's ad series on the basis that the commercials are misleading. CBS concurred with the challenge to three spots, which alleged SABMiller's taste-test studies comparing its brands to those of Anheuser-Busch used flawed testing that biased results in SABMiller's favor. The results of the study were the foundation of an ad campaign that has aired since June. CBS concluded that these ads are "unduly disparaging of Budweiser and Bud Light," and two of the ads in which people are shown to be using a bullhorn outside an Anheuser-Busch brewery "convey an unsubstantiated preference claim." In addition, before SABMiller can again air two other discontinued ads that make claims about on-premise taste challenges in Chicago and St. Louis, the company would need to resolve the issues raised by Anheuser-Busch before CBS would again air those spots. The formal challenges asked each network to review a number of SABMiller- produced ads that aired on the networks. In addition, Anheuser-Busch asked that the networks withhold approval for any future spots that are based on the same flawed taste-test study.
 Four finalists in Dish Network review
Four shops are awaiting a decision from EchoStar Communications on its Dish Network creative account, after the conclusion of final presentations, according to AdWeek: Publicis Seattle, TBWAChiatDay New York, Campbell Mithun Minneapolis and DiNoto NY. The client previously used agencies on a project basis, including The Romann Group NY. Last year, EchoStar spent 120 million in measured media on Dish.
Capital One Financial moves to DDB
The Wall Street Journal reports Capital One Financial moved U.S. ad duties to Omnicom Group's DDB. Omnicom's Element 79 continues to work with Capital One. Work had been handled by Interpublic Group's McCann Erickson. Capital One spent about 192.1 million on media in 2003, according to TNS Media Intelligence/CMR. Publicis Groupe's MediaVest continues to handle media duties.
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| Media Markets & MoneyTM |
Infinity finally spins Baltimore AMs
Viacom/Infinity may finally be able to kick WBMD-AM and WBGR-AM Baltimore out of the house. A 5.4M dollar deal to sell the pair in 2000 never came to fruition, but this time, maybe Family Stations can get the deal closed. Honcho Harold Camping is certainly planning a more substantial investment - - the price tag is now up to 7.5M. With Family Stations on the buyers' side, it's a sure sign that the stations are going to get Religion. Camping's group is already operating in the market with WFSI-FM Annapolis, which like its commercial and similarly-situated neighbor WHFS-FM, gets into both Baltimore and Washington. It's located on the uppermost perch of the FM dial, at 107.9 mHz, far removed from the reserved portion of the band. Family Stations, which was represented by Media Venture Partners, is planning to apply for a license modification stipulating noncommercial operation for WBGR, but has not yet, decided that question one way or the other for WBMD. The Y2K deal sending the stations to Jeanell Hines' Expanse Communications (RBR 11/20/00) was never consummated.
Close encounter in Albuquerque
Bugs Bunny famously said "I should've toined left at Albakoykee." However, according to broker John Pierce, Religious specialist Jack Mortenson doesn't share that sentiment. In a one-Religious specialist-to-another deal, Mortenson is spinning KXKS-AM Albuquerque to Bob Wilkins and his Wild West Radio for 775K. It marks a nice and rapid return in investment for Mortenson. It was almost at the end of February when we got wind of his $650K deal to acquire the station from Clear Channel.
We're Raleigh sorry about that, Charlotte
Alert reader Ben Avery notes that Charlotte is not the capital of North Carolina, as stated in Friday's issue. Nonetheless, Noberto Sanchez is now the owner of WGSP-AM, which continues to be in Charlotte. Perhaps some day he'll expand to Raleigh as well.
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| Programming |
JRN's Lia hosting "Christmas in Nashville"
Jones Radio Networks' Lia is bringing country's biggest and brightest stars to her radio show this holiday season as she celebrates 'Christmas in Nashville' all next week. Beginning today, Lia will celebrate the season every weeknight through Christmas with special celebrity guests every hour, lots of holiday music, and a few surprises from Music Row! Tim McGraw, Dierks Bentley, Martina McBride, Joe Nichols, Terri Clark, Blake Shelton, Brooks and Dunn, SHeDaisy and more are lined up to spend the holidays with Lia and her 3 million listeners, via 175 radio stations nationwide.
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| Engineering |
WFAE-FM Charlotte orders Tomorrow Radio package
WFAE, Charlotte's NPR news station, placed an order for Broadcast Electronics' complete HD Radio solution, including BE's XPi 10 exporter for generating HD Radio at the studio in preparation for Tomorrow Radio. The public broadcaster is targeting a February 2005 HD Radio air date. Using second-tier HD Radio funds by the Corporation for Public Broadcasting, the NPR station will acquire two BE Fmi HD Radio transmitters with BE FXi 60 digital FM exciters for HD Radio conversion of WFAE 90.7 FM in Charlotte and its repeater station, WFHE 90.3 FM in nearby Hickory, NC. Each station also will get a new BE XPi 10 exporter unit in anticipation of secondary audio services becoming available at a later date. "We're trying to get as many steps down the road toward NPR's Tomorrow Radio as we can," said WFAE/WFHE Director of Engineering Jobie Sprinkle. BE's XPi 10 exporter has built-in HDC codec and signal generation for multiplexing main and secondary audio at the studio. Instead of transporting analog audio and both digital channels separately at full bandwidth, the broadcaster will use XPi 10s to multiplex all programming content into a single transport from the studio and over STL to the transmitter site. For transmission, WFAE has on order a BE FMi 201 HD Radio transmitter and BE FM 35T single-tube transmitter for a dual-input configuration of both analog and digital signals into a panel antenna. On order for its repeater station is a BE FMi 703 HD Radio transmitter to transmit the analog and digital signal into an existing antenna. In anticipation of new datacasting services, the public broadcaster also plans to upgrade its existing AudioVAULT for compatibility with ContentDepot, a new content delivery system to be implemented in 2005 by NPR's distribution division that is expected to be a primary source of program text data.
 Audiovox to acquire Terk
Audiovox Corporation announced that its subsidiary, Audiovox Electronics Corp. has signed a letter of intent to acquire certain assets comprising the business of Terk Technologies for 13.6 million plus a debenture based on achieving future revenue targets. Terk is a provider of satellite radio receivers and digital antenna products, with an agreement in place to provide car stereo aftermarket products for XM. Some of the Terk's other products include TV, HDTV and AM/FM antennas. Terk's Net Sales for the year ended 12/31 will be approximately 50 million. Said John Shalam, Chairman, President and CEO of Audiovox: "The proposed acquisition of Terk marks our first transaction since the sale of our Wireless business to UTStarcom. Terk brings significant expertise in the specialized satellite radio industry, which we have identified as a fast growth high tech market and we believe it will serve to strengthen our position for future growth in that segment."
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| Monday Morning Makers & Shakers |
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Transactions: 11/8/04-11/12/04
If station traders didn't get religion in the second week of November, one of them brought religion to both sides of the table. Salem Communications was in a nine-figure swap with Univision and bought a high-dial-position noncom FM in Omaha for 10M. And there was a fairly big TV deal in the Santa Barbara area.
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Total
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Total Deals
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10
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AMs
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7
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FMs
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11
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TVs
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1
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| Value |
307.2M
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| Complete Charts |
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Radio Transactions of the Week
Univision/Salem's multimarket swap meet
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TV Transactions of the Week
New owner for New Vision CA TV
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| Transactions |
WRBZ-AM Raleigh-Durham (Raleigh NC) from Alchemy Communications LP to NC Sportsnet LLC.
TV CP Flint-Saginaw-Bay City MI (Bay City MI) from Vista Communications Inc./Pelican Broadcasting Co. Inc. to ACME Television LLC.
WICE-FM, WSHV-AM/WKSK-FM Clarksville VA (Clarksville, South Hill VA) from Joyner Radio Inc. to Birch Broadcasting Corporation.
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| Stock Talk |
Another drug debacle on Wall Street
Broadcast stocks bucked a down trend as Pfizer's surprise announcement of possible health risks connected with Celebrex sent the market lower. The Dow Industrials fell 56 points, or 0.5%, to end at 10,650.
The Radio Index, however, moved up 1.378, or 0.6%, to 226.199. Spanish Broadcasting System rose 3.5% and Regent gained 3.4% to lead the way.
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| Radio Stocks |
Here's how stocks fared on Friday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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38.03
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+0.09
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Jeff-Pilot
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JP
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51.44
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-1.20
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Beasley
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BBGI
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16.50
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+0.43
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Journal Comm.
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JRN
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17.60
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+0.10
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| Citadel |
CDL |
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16.22 |
-0.17 |
Radio One, Cl. A
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ROIA
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15.60
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+0.31
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Clear Channel
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CCU
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33.72
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-0.91
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Radio One, Cl. D
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ROIAK
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15.54
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+0.34
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Cox Radio
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CXR
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15.50
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-0.12
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Regent
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RGCI
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5.54
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+0.18
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Cumulus
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CMLS
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15.47
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-0.12
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Saga Commun.
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SGA
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17.00
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+0.10
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Disney
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DIS
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27.37
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-0.18
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Salem Comm.
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SALM
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25.14
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+0.15
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Emmis
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EMMS
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19.01
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-0.04
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Sirius Sat. Radio
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SIRI
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7.68
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+0.50
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| Entercom |
ETM
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34.98
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-0.02
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Spanish Bcg.
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SBSA
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10.63
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+0.36
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Entravision
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EVC
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7.81
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+0.16
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Univision
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UVN
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30.23
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+0.60
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Fisher
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FSCI
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47.73
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+0.04
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Viacom, Cl. A
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VIA
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36.13
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+0.33
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Gaylord
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GET
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38.92
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+0.32
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Viacom, Cl. B
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VIAb
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35.30
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+0.19
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Hearst-Argyle
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HTV
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25.58
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-0.14
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Westwood One
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WON
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25.68
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-0.11
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Interep
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IREP
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0.72
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unch
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XM Sat. Radio
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XMSR
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40.20
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+1.41
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International Bcg.
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IBCS
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0.01
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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
ABC Radio Networks /EXPN Radio - Walter "W" Price
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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]
This lawyer says FCC Chairman Michael Powell has changed his tune.
Harry F. Cole
Fletcher, Heald & Hildreth, P.L.C.
Arlington, VA | More... |
Indecency is always a hot topic...
Mike Padgett
Soft Rock 98.5 WTFM RADIO
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Upped & Tapped
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Cox Radio Interactive promotes Craig Hahn
Cox Radio Interactive (CXRi) announced Craig Hahn has been promoted to Vice President, Sales Development, responsible for training, facilitating, idea generation and sales development for the company's 76 websites. Hahn will continue to report to Gregg Lindahl, Vice President, CXRi. Hahn previously served as Director of Sales Development for CXRi. Hahn joined Cox Radio Interactive from mp3radio.com where he was VP/Sales.
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TVBR - TV News
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Syndication sweep:
A ratings leader
every weekday
A study from the SNTA on the recently completed November 2004 Sweeps period revealed that syndicated television programming is ranked among the top 10 television shows every weekday. On average, syndicated programming had 4 of the top 10 rated programs every weekday across the key demos. The performance of syndicated vehicles remained strong across all major demographic groups with 13 different syndicated programs making at least one top 10 list. "The fact that syndication performed exceptionally well during sweeps, the time when broadcast networks program their heavy hitters, demonstrates that television should be bought program by program," said Mitch Burg, President, Syndicated Network Television Association. "And many of the programs - both original and off-network that will bring results for advertisers are syndicated."
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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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News Years Media Resolution
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. In few days we will be in 2005 and the radio and television business are facing the new 5C's - Challenge yourself, Commitment, Content, Cross marketing and plat forming, and most of all using Common sense to re-establish each medium that has seen and is about to see its fare share of issues next year that are improved or like various species of animals become extinct. The key C that must be use in 2005 - (The Big C) - Common sense. 12/17/04 RBR #245
Broadcast rights owners
ready to play hard ball
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."
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. 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.
12/17/04 RBR #245
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? 12/17/04 RBR #245
RBR First Reported
Katz re-opening Eastman Radio
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 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. 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
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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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