RBR's Daily Morning Epaper

Volume 21, Issue 248, Jim Carnegie, Editor & Publisher

Wednesday Morning December 22nd, 2004

Happy Holidays

Radio Business Report will return Monday 12/27 in observance of the Holiday weekend. We wish everybody a happy and safe one!

Publishers Perspective

In few days we will be into 2005, and operators in the radio and television business would do well to consider what I call the Five C's as they get set to face the year ahead: Challenge, Commitment, Content, Cross-marketing and - - most of all using - - Common sense. We need to re-establish each medium and get back to the pattern of steady growth that has characterized broadcasting throughout most of its history. At the same time, we must consider new challenges which could very well threaten the extinction of our business. To deal with these challenges, we recommend an extra heaping helping of The Biggest C - - Common sense. That's what it will take to win in 2005 - - along with passion and heart - miles and miles of heart. Naples, FL called to some in 2004. | More... |

Merry Christmas

Jim Carnegie
Publisher & Editor (Sometimes called Mr. Naples or CMFIC)
RBR, TVBR, Media Mix

Radio News®

Susan Whiting:
Nielsen's PPM decision to be made by Q2
Nielsen Media Research announced it has until the end of Q2 '05 to decide whether to form a joint venture with Arbitron for a TV and radio audience measurement service based on Arbitron's passive PPM system, possibly breaking the in-house tether its current LPM measurement system requires. Nielsen CEO Susan Whiting detailed the announcement in a letter to Nielsen clients. | More... |

RBR observation: Ms. Whiting's letter which RBR has obtained is a must read and print out as she makes no bones on her decisions made by Nielsen before going forward as Whiting states, "This letter outlines the key open questions and Nielsen's plan to address them before deciding whether to join Arbitron in the launch and accreditation of Houston as the first commercial market of the PPM." It is hard ball time folks.

DOJ to SCOTUS: Give me just a little more time
To appeal or not to appeal, that is the question - - whether it be nobler to accept the remand of the Third Circuit or to take up appeals and strike the remand down. The Acting Solicitor General has already received permission from the Supreme Court to extend its should we/should we not ruminations until 1/3/05. Now it wants the rest of the month to continue jaw-rubbing. "The Acting Solicitor General, on behalf of the Federal Communications Commission and the United States, respectfully requests an additional extension of time, to and including January 31, 2005, within which to file a petition of certiorari to review the judgment of the United States Court of Appeals for the Third Circuit in Prometheus Radio Project v. FCC."

RBR observation: The ASG's statement pretty much tells you everything you need to know. The bottom line is that even if SCOTUS agrees to hear the case, it may simply agree with the Third Circuit's decision, thereby simply adding further delay to what was originally a biennial review, the infamous public revelation of which goes all the way back to the then already belated delivery day of 6/2/03. FCC Chairman Michael Powell recently went on record with the thought that the rules review is so tangled that it may take five to seven years to get it unraveled. The sitting FCC may be wise to do the Third Circuit's rewrite/rejustification project while it is safely in Republican hands, rather than risk further delay. Then again, private interests may challenge the Prometheus ruling regardless of what the government does. Stay tuned.

Washington Nationals beat: Stadium responds to CPR
To all appearances, Washington Mayor Anthony Williams and D.C. Council Chairman Linda Cropp have come to terms on a stadium for the Nationals nee-Expos which Major League Baseball will be able to live with. However, at this writing the Council vote has not taken place, leaving room for anything to happen. The big issue is the attraction of private investment in stadium construction. Part of the deal was the option to seek to allow such investment. The deal killer was turning private investment from an option into a requirement. Part of the new compromise is return of language restoring the status of private funding to a desire rather than a requirement. Local political analyst Mark Plotkin said on Bonneville's WTOP Radio that in his opinion Cropp was playing brinksmanship in order to extract concessions from MLB. And it appears she got a few items, perhaps the most important of which was limiting the liability for the city in the event of construction delays.

RBR observation: Those considering acquiring broadcast rights can go reconvene their back room huddles to figure out just how much they could be worth. Some in DC would certainly tune into Nationals games on TV and especially on radio, since many think that the Orioles have not managed their own radio network particularly well. First the Os sent ace broadcaster Jon Miller packing, and later they failed to find a first class radio outlet to serve the southern part of the Washington market after long-time rights holder WTOP decided it was too disruptive to its 24/7 News format. If earlier reports are correct, those same Orioles will have a hand in the presentation of the Washington Nationals, however, in the form of a regional telecasting network. The Orioles currently split their schedule between a Comcast regional cable net and over-the-air television stations. If Orioles owner Peter Angelos and MLB have indeed worked out a deal, the Orioles may have a great deal of say in how the Nationals' broadcast arrangements play out.

Holiday shopping 2005
gets the two-minute warning
According to a BIGresearch survey done at the behest of the National Retail Federation, 81.9% of the consumer legwork for the 2005 holiday shopping season is complete, and 72.9% of the money allocated by consumes has been spent. That still leaves a considerable chunk of change on the table. BIGresearch says that for the most part, the 190 dollars still in the budget is sitting there waiting for last minute bargains. "Consumers are waiting for bargains and the retailers who offer them will get the greatest share of unspent budgets," said BIGresearch's Phil Rist.

RBR observation: And the retailers with the best bargains who do the best job of letting people know about them will get the greatest share of the bargain-offered share. The best quickie spots could offer immediate ROI.

Disney, SEC see way to agreement
In what looks like the now familiar FCC consent decree, Walt Disney Co. and the Securities and Exchange Commission have come to an agreement concerning the matter of benefits bestowed upon board members and their relatives between 1999 and 2001. Such benefits were not disclosed, a violation of securities laws. Disney admitted to no wrongdoing, and the SEC did not hit it with any fines. The company did agree to refrain from such actions in the future.

Adbiz©

Shareholder sues Grey Global Group to stop takeover
Just as things were getting back on track after the snag at the EU, a shareholder sued the Grey Global Group, asking a judge to halt the planned 1.52 billion takeover by WPP Group that would give more than 50 million to Grey CEO, Edward Meyer. David Shaev, said in a lawsuit filed in Delaware Chancery Court that the sale was unfair because Meyer would get 86.9 million if the company was sold this year, and 54.5 million if the sale closed in 2005, reducing the amount shareholders would receive.

Astrata Group launches CNBC effort
Astrata Group, an international provider of location- based IT services and solutions, announced the launch of an ad campaign in North America to promote the introduction of its new product, the Astrata GeoLocation Platform (the "Astrata GLP"). This is the first GPS location and GSM/CDMA wireless communications device that includes an onboard computer operating system using MC Linux and can be programmed for custom applications over the air. The GLP combines a GPS receiver, a GSM cell phone, and a full computer operating system integrated into a single package approximately 50% the size of a cigarette pack. The built-in wireless communication options include quad-band GSM/CDMA, GPRS, SMS, circuit switched data (CSD), Bluetooth, and wireless LAN. The GLP is used to monitor and control fleets of virtually any equipment, vehicles, assets, shipping containers, or even individuals using real-time information and Astrata's GEO-IT system. Customers include government users for homeland security purposes and owners of large fleets of vehicles. The 30-second spots will initially appear on CNBC's "Squawk Box," from 8:00-10:00AM on the net's morning business program, and "Closing Bell," from 3:00-4:30PM. They are scheduled to run today and tomorrow and on December 27-30. Both these CNBC programs boast high ratings among business leaders of U.S. companies that own fleets of vehicles and remote assets that are ideal customers for the GLP.

Media Markets & MoneyTM

Guyann Corp. ties the KNOT in AZ
The Payne family has decided its time to get out of the radio biz in Flagstaff-Prescott, opening the door for long-time market player Guy Christian to expand, adding KNOT AM & FM Prescott to his Flagstaff trio for 1.7M dollars. Christian's Guyann Corp. already has KAFF AM & FM and KMGN-FM in Flagstaff, the flagship town in the far-flung market, according to Glenn Serafin of Serafin Bros., who represented the seller. KNOT brings in the population center of Prescott, to southwest of Flagstaff. The sale of Standards KNOT-AM and Country KNOT-FM bring to a close the ownership run of the Payne family, and puts them in the hands of Christian, who Serafin says has been plying Flagstaff airwaves since the early 60s.

Is Liberty looking to give Murdoch an heir cut?
Wall Street watchers are noting a move by John Malone's Liberty Media Corporation. It's trading non-voting shares in Rupert Murdoch's News Corp., a move which it was not expected to make until perhaps next spring, according to the New York Times. Malone's voting share presently stands at about 9%, a figure which he may be trying to take up to 17%. At risk for Murdoch may be an opportunity to turn the company over to his sons, Lachlan and James. Speculators have offered numerous theories as to what the ultimate plans are on both sides, but it remains just that - - speculation. Neither side is talking.

Washington Beat

Cheyenne 49ers err to air
Echonet Corporation has pulled off an amazing feat: It has been operating a TV translator since 1998 without an FCC license. The paperwork legitimizing K49AY Cheyenne expired 10/1/98. The station, however, continued to offer public interest, Spanish language programming and other fare not otherwise provided to viewers in the market. The illegal operation was finally uncovered by an FCC agent 10/22/02. Like its pirate radio brethren, TV pirates are subject to a base fine of 10K. However, the FCC agreed with Echonet that the failure to renew K49AY's license was more an act of clerical incompetence than one of piracy, and gave Echonet a 5K reduction on those grounds. Another 1K was knocked off for prior good behavior, resulting in a final fine of 4K.

Sales

Job Fit or Mis-Fit?
Jay Werth, First Sun Consulting

"I'm sorry, but this just isn't working, I think it's best that we part company." Have you ever been on the giving or receiving side of that statement? Do you recall the sense of regret, and no doubt the foreshadowing that led to those words? This scene plays itself practically every day at a radio station somewhere, particularly within the sales department. | More... |

Transactions

KEDO-AM/KBAM-AM, KLYK-FM, KRQT-FM Longview-Kelso WA (Longview, Kelso, Castle Rock WA) from Entercom Communications to Bicoastal Holdings Co.

KZTU-AM Eugene-Springfield OR from Pamplin Broadcasting-Oregon Inc. to Churchill Communications LLC.

| More... |

Stock Talk

Almost all boats float on buoyant Street
Wall Street was a happy place for broadcasters on Tuesday, for the most part, anyway. The black to red ratio was not nearly balanced enough to produce a decent checkerboard, with black ink clearly the dominant color of the day. Failing to go along for the ride, however, was Hispanic radio/TV giant Univision, which lost over a buck and a quarter by the end of trading.

Radio Stocks

**Here's how stocks fared on Tuesday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		38.51	+1.21	Jeff-Pilot	JP		52.03	+0.57
Beasley	BBGI		16.44	+0.21	Journal Comm.	JRN		17.59	+0.28
Citadel	CDL		16.43	-0.07	Radio One, Cl. A	ROIA		15.63	+0.17
Clear Channel	CCU		33.80	+0.43	Radio One, Cl. D	ROIAK		15.65	+0.20
Cox Radio	CXR		15.70	+0.11	Regent	RGCI		5.00	-0.32
Cumulus	CMLS		14.90	-0.27	Saga Commun.	SGA		17.25	+0.20
Disney	DIS		27.54	+0.12	Salem Comm.	SALM		24.66	-0.03
Emmis	EMMS		18.93	+0.32	Sirius Sat. Radio	SIRI		7.86	-0.11
Entercom	ETM		35.24	+0.51	Spanish Bcg.	SBSA		10.49	+0.08
Entravision	EVC		7.93	+0.05	Univision	UVN		28.65	-1.34
Fisher	FSCI		48.50	+0.86	Viacom, Cl. A	VIA		36.63	+0.43
Gaylord	GET		40.33	+0.69	Viacom, Cl. B	VIAb		35.95	+0.40
Hearst-Argyle	HTV		25.58	-0.09	Westwood One	WON		26.19	+0.26
Interep	IREP		0.73	+0.03	XM Sat. Radio	XMSR		40.45	+0.40
International Bcg.	IBCS		0.01	unch	-	-	-	-	-

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The 2005 Radio-Mercury Awards
call for entry begins

Hatfill filed bagfull of subpoenas

TVBR - TV News

AFI picks top ten
TV shows for 2004
A panel of anonymous (until recently) experts has come up the selections for the American Film Institute's 2004 list of top ten television shows. The 13-member panel met in secrecy and debated the selections over the course of two days, and while the overall criteria for making the list appears to be nebulous, excellence figures into the mix. Pay cable provided four of the selections, all from HBO. Broadcast had three (ABC two, Fox one) and basic cable another three (FX two, Comedy Central one). The shows were not ranked one-to-ten; rather, they are presented as ten ostensibly equal selections. Here the are, in alphabetical order: Arrested Development (Fox); Curb Your Entusiasm (HBO); Deadwood (HBO); Desperate Housewives (ABC); Lost (ABC); Nip/Tuck (FX); The Shield (FX); Something the Lord Made (HBO); The Sopranos (HBO); and South Park (Comedy Central).

TVBR observation: It probably goes without saying that the Parents Television Council will essentially despise this list.

RBR Radar 2004

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

Radio revs post up in November
RAB notes local revenue continued to hover around the break-even point, finishing November on the black side by 2%. National's second month in a row on the plus side of the mid-to-upper single digit range - - an uptick of 7% - - brought the monthly total to a positive 4%. But it may be too early to start popping champagne corks. RBR observation: Black ink is black ink, but there are a couple of factors graying November's positive if lackluster results. One is the fact that it reconfirms the notion that radio was largely bypassed by both national and local political campaigns. The other is the warning from analyst Jim Boyle that the modest November bump is but a prelude to a flattish December. In other words, it does not appear to be the start of a steady climb, merely another small rise before another drop on the revenue roller coaster. 12/21/04 RBR #247

Local TV broadcast ad revenues
Up 12.2% Q3
TVB notes Local broadcast television ad revenues jumped a healthy 12.2% in the third quarter of 2004 compared to the same period last year. The biggest percentage increase among the top 25 advertising categories for the quarter was posted by Government & Organizations, which is mostly political spending. The category was up 165.7% over the same period in 2003.
TVBR observation: Praise politics as The Bush for President Committee made it onto the list of the top 25 individual local advertisers for the quarter at No. 19 (the Kerry campaign ranked No. 41). But what are you gonna do now in first quarter 2005? Local the Year to Muscle Up - Radio & Television Business Report -Jan. '05 issue will have solutions for you. 12/21/04 TVBR #247

All but radio has to
adjust for the pain
...that has no pill to cure as first Vioxx and now Pfizer's Celebrex is under the microscope. Not in medical terms as in all the news bites focus on, but in ad dollars. Medicines & Proprietary Remedies are one of the top ten national ad dollars in the television business and Pfizer alone was estimated spending 88 million dollars last year on Celebrex and now it is gone. Poof. Now where will the cure be if this was budgeted into the New Year ad guru's forecasts? Radio doesn't get much relative Rx dollars even though it is always talked about inside the beltway of trying to ease the disclaimers. But the big loser in 2005 with these announcements is TV especially network. Wonder if this will affect stations' affiliation comps? 12/21/04 RBR #247

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 as Infinity CEO John Sykes 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. 12/20/04 RBR #246

VP/Programming for The Dr. Laura Show
Take On The Day, Inc., by Geoff Rich and Dr. Laura Schlessinger looking for an experienced PD to manage and market The Dr. Laura Show. Experience in talk radio programming, marketing and media relations. Based in L.A. Confidentiality respected. EOE

Major Market
Affiliate Director
Take On The Day, Inc. newly formed radio network producing and distribution of The Dr. Laura Show beginning 01/ 1/05. Candidate must have major market affiliate sales experience with Talk format. Cover letter, resume and salary requirements - Confidentiality respected. EOE

See Radio Careers for more info.

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