Volume 20, Issue 26, Your Morning Radio Industry E-Paper tm
Jim Carnegie, Publisher
Thursday Morning February 6th 2003
RBR Office 703.719.9500

Radio News ®

Copps sets up two more
public ownership confabs
FCC Commissioner Michael Copps isn't backing down on battling ownership deregulation. The Democrat member of the Commission announced that he is setting up "two official FCC media concentration hearings - - one in Seattle in early March at the University of Washington; and a second in Durham, North Carolina later in March at Duke University." Copps has requested the attendance of each of his fellow commissioners. | Full Story Click Here | RBR Observation |

Radio Unica misses bond payment
Radio Unica (O:UNCA) failed to make a $9,287,670 interest payment that was due Monday (2/3) on its 11.75% senior discount notes. The Spanish radio group owner says in an SEC filing that it is in talks with its bondholders. | Full Story Click Here |

Mayor fights station sale
Hammond, IN Mayor Duane Dedelow Jr. has been in Washington, DC this week trying to stop the sale of WJOB-AM to Starboard Broadcasting, a Catholic radio group that already owns several stations in the Midwest (1/16 RBR Daily Epaper). Dedelow, who is himself Catholic, told the Northwest Indiana Times that the proposed sale would leave the area with no source of local programming. | Full Story Click Here |

Myers sees silver lining in war clouds
Advertising forecaster Jack Myers is bullish on advertising prospects for 2003 and 2004, regardless of whether or not the US goes to war with Iraq. In fact, he says, a war could be a plus for ad spending. | Full Story Click Here |

Brokerage nixes Sirius recommendation
Salomon Smith Barney analyst Armand Musey has been shown the door and the brokerage has rescinded his "outperform" recommendation for Sirius Satellite Radio (O:SIRI). The firm has also dropped coverage of XM Satellite Radio (O:XMSR).

Musey had recommended Sirius to investors even after the company said it might have to file Chapter 11 if a pending refinancing wasn't completed. In announcing the analyst's departure, Salomon Smith Barney parent Citigroup said the report on Sirius "should not be relied upon going forward."

Hey, everybody into the poll pool!
According to numerous reports, the six members of the now defunct Voter News Service (VNS) (1/14 RBR Daily Epaper) - - ABC, CBS, NBC, Fox News Channel, CNN and the Associated Press - - have reformed themselves as a consortium to engage a replacement service. | Full Story Click Here |

iBiquity announces another HD Radio licensing incentive
Following up on its Early Adopter Program which waived HD Radio licensing fees for stations that signed up on or before 12/31/02, iBiquity Digital announced 2/5 a new incentive program for broadcasters to convert to digital broadcasting for 2003. In 2002, more than 130 stations in 40 markets spanning 26 states signed licenses to convert to digital (1/14 RBR Daily Epaper). | Full Story Click Here |

Who will head the AP?
With the coming retirement of Lou Boccardi as President and CEO of the Associated Press (2/5/ RBR Daily Epaper), the rumor mill is beginning to focus on a successor - - with the name of Jim Williams, VP and Director of Broadcasting, being mentioned. Jonathan Wolman, who appeared to be the heir apparent to Boccardi, reportedly sent AP colleagues an email taking himself out of contention, saying he wanted to stay in the newsroom. Wolman is EVP and Executive Editor of the AP. If Williams were to become the head of the AP it would mark a milestone for the news cooperative, whose leaders have always before come from the print side.

New mag for Salem
Salem Communications (OSALM) has added another magazine to its print division. In a joint venture with Country Gospel artists Bill and Gloria Gaither, Salem has launched "Homecoming Magazine" as a bi-monthly title.

Clarification: WRR already Arbitron subscriber
Our story yesterday (2/5 RBR daily Epaper) indicated that WRR-FM Dallas was preparing to subscribe to Arbitron (N:ARB) to assist city officials in deciding which swap deal to accept for the Class C signal. In fact, the Dallas City Council authorized the funding several months ago as members began to consider what to do with the Classical station and WRR has been an Arbitron subscriber since last fall.

Columbo called to Launch
No murder has taken place, but Columbo has been called. RBR has learned that Charlie Columbo of United Stations Radio Networks will be announced as the Executive VP/GM of Launch Radio Networks. USRN bought Launch Radio Networks last November (11/18/02 RBR Daily Epaper). The business is the descendant of the former SW Networks, which was rolled into Launch Media. The rest of Launch Media - - an online music site - - remains with Yahoo! (O:YHOO).




RBR News Analysis

Miller, Kaplan reports on reporting;
Clarifies verification procedures
The Nationwide Market Revenue Measurement Advisory Committee verification program is now underway, as Miller, Kaplan, Arase & Co. (MKA) goes down to the market level to verify the revenues being reported by radio stations. As we reported this week (2/5 RBR Daily Epaper), 2% of the reporting stations will be randomly verified each quarter - - or approximately 40 stations. It turns out to be a two-tiered verification process, with Tier Two allowing for you to pick the market and station cluster.
| Full Story Click Here | RBR Observation |


Adbiz ©

Audible Magic completes Phase I deployment to VMS
Audible Magic Corporation, a provider of content management services for media industries, announced that Video Monitoring Services of America (VMS) has completed the initial phase of a nationwide deployment of the new Audible Magic ad detection system. One of the nation's leading media monitoring companies, VMS' initial deployment involves the top 8 U.S. cities and 24/7/365 coverage of 72 AM and FM radio stations. | Full Story Click Here |

20 Portland stations join for giant auto show promo
To showcase the unique relationship between cars and Radio, 20 Portland, OR radio stations came together at Pioneer Courthouse Square in downtown Portland to kick off the Portland International Auto Show. The Portland Area Radio Council (PARC) developed the 1/29 promotion to support the Metro Portland New Car Dealers Association, producers of the Auto Show. | Full Story Click Here |

Porter Novelli names Bill Kolberg GM of LA office
Porter Novelli announced the promotion of Bill Kolberg to GM of its LA office. He replaces Steve Jursa, senior partner and global convergence practice leader, who was serving as the acting GM there. He will continue to head the consumer and food practices in the office, serving clients such as The Jim Henson Company, Weider Nutrition, Danone Waters of North America, Mattel and Oral-B Laboratories.
| Full Story Click Here |

X-Rays to be featured in GOT MILK? ad
To celebrate the launch of its new 'X-RAY' spot, the California Milk Processor Board (CMPB) is inviting Californians to enter its GOT BONES? promotion. Consumers submitting their x-rays will have a chance to have their bones featured in an upcoming GOT MILK? ad. | Full Story Click Here |

BBD&O study: African American viewing
A new study from BBD&O shows many of the differences in African Amercian viewing preferences vs. whilte viewers. For example, not one reality show is found among the top 20 most-watched programs in Black homes--although some reality series, like "Survivor" and "Fear Factor," are popular among black teens. | Full Story Click Here |




Media, Markets & Money tm

Cod Squad:
Group of Franks banks its future on the Cape
Frank Osborn, Frank Washington, Michael Mangan and friends in the capital community have made good on their threat to re-enter the world of radio ownership (7/31/02 RBR Daily Epaper). Qantum Communications Corp. has announced a deal to acquire an intact three-FM cluster in Cape Cod MA from Makkay Group Broadcasting. The deal is valued at $32M. | Full Story Click Here | RBR Observation |

Viacom Outdoor makes Puerto Rico its heart's devotion
Viacom Outdoor (N:VIA), sister company to CBS Television and Infinity Radio, has ventured into the Caribbean Sea to score 800 billboard faces. The signage space is coming from Outdoor Media Displays Posters for an undisclosed sum.
| Full Story Click Here | RBR Observation |


Washington Beat

Commissioners get another Hill invite
Representative Billy Tauzin (R-LA) is following in the footsteps of his compatriot in the other chamber, Senator John McCain (R-AZ) by inviting the commissioners of the FCC over to Capitol Hill for a hearing (1/15 RBR Daily Epaper). The get together will be held 2/26 at the Rayburn House Office Building at 10AM eastern before Tauzin's Subcommittee on Telecommunications and the Internet. The subcommittee is part of the House Energy and Commerce Committee. | Full Story Click Here | RBR Observation |

The write stuff: FCC brightens the line for underwriters
Underwriting announcements on noncommercial KAYH-FM in Fayetteville AR came under attack from KERM Inc., which operates a number of commercial stations, including KURM-AM Rogers in the immediate area. KERM claims that the station, licensed to Family Vision Ministries, was running underwriting announcements which amounted to commercial messages. | Full Story Click Here | RBR Observation |




March 2003 Business Solutions Magazine in-depth look

Arbitron Ratings Company and the bomb it dropped on Hispanic radio.
Vets at RAB 2003 realize it is not Hispanic radio that is going to be affected but all radio. The scales of ratings justice are out of balance and these vets want it corrected now not in 2006. RBR perspective of Arbitron is simple: It was a service invented for television not radio. (see RBR 2/3 report:)

This major issue will be investigated for its total impact on our radio business, advertising revenues, and sliced and diced for total comprehension.

Advertising space limited and for reservations contact:
Jim Carnegie -- [email protected],
Ken Lee -- [email protected]
June Barnes -- [email protected]
Advertising reservations deadline February 14, 2003.

RBR Observation: The number 1 issue that is affecting not just Hispanic Radio but the entire radio business. Your business. Time is now to support radio's cause with one voice: Radio Business Report, 20 years and counting.


Sales

Report from the trenches
In this report from the frontlines of radio sales, Roger Dodson, Sr. VP of Training for the Radio Advertising Bureau, looks at which makes sense for advertisers today - - target marketing or mass marketing? | Full Story Click Here |

NTR Tip of the day
Standardized sponsorship/NTR packages are counter productive to your objectives. Rather, meet with the potential sponsor, determine his/her objectives, and then tailor a program to achieve those objectives. One sponsor may want signage ... the other hates signage. When you go in with an "off the shelf" offering you open yourself to more difficult negotiations and potentially losing the sale. If you liked this tip, you will love Sylvia's training tools. Click here for information on her book, or click here for information on her video. Source: Sylvia Allen, Allen Consulting Inc., [email protected], (732)946-2711


More News Headlines

* Charles Jaco gets mornings on KFTK-FM St. Louis
* Michael Alford named Sports SM, ESPN Radio 710
* SAG, AFTRA may merge
* AWRT considering new chapter
* Stern buys Hamptons house for $5.5M
* DG Systems unveils DG Online 5.4
* Doug Stephan auctioning Valentine's Day announcements on ebay
* Parsons unveils top exec meeting next week
* Former WNEW AE John Geddes passes
* Vancouver sports station fires one of morning team
* Barry O'Brien joins XM


Radio Stocks

War worries linger
Stock prices didn't move much on Wednesday, but the direction of the market was nonetheless downward. Traders remain concerned about the likelihood of a war with Iraq.

The Dow Jones Industrial Average slipped 28 points, or 0.4%, to 7,985 - - back below the 8,000 threshold.

The Radio Index was also off slightly, off 0.659, or 0.3%, to 223.890 - - another year-to-date low.

Hispanic Broadcasting and Cox Radio led the retreat, each with a 1.7% loss.

Cumulus had an up day, gaining 2.2%, and Emmis was up 1.7%.

Here's how stocks fared on Wednesday

Company Symbol Close Change Company Symbol Close Change
Arbitron

ARB

$31.21

-$0.09

Jeff-Pilot

JP

$38.24

+$0.33

Beasley

BBGI

$12.23

-$0.10

NBG Radio Nets

NSBD

$0.07

unch

Big City YFM $1.15

unch

Radio One, Cl. A

ROIA

$14.31

-$0.03

Clear Channel

CCU

$37.65

unch

Radio One, Cl. D

ROIAK

$14.07

-$0.07

Cox Radio

CXR

$22.99

-$0.39

Radio Unica

UNCA

$0.25

-$0.15

Cumulus

CMLS

$14.69

+$0.32

Regent

RGCI

$5.97

-$0.06

Disney

DIS

$16.90

unch

Saga Commun.

SGA

$17.40

-$0.10

Emmis

EMMS

$21.61

+$0.35

Salem Comm.

SALM

$22.20

-$0.12

Entercom

ETM

$48.26

+$0.09

Sirius Sat. Radio

SIRI

$0.95

-$0.08

Entravision

EVC

$10.10

+$0.05

Small Town

STWI

$0.11

-$0.02

Fisher

FSCI

$50.00

-$1.25

Spanish Bcg.

SBSA

$7.10

-$0.11

Gaylord

GET

$20.03

+$0.04

Viacom, Cl. A

VIA

$37.25

+$0.22

Hearst-Argyle

HTV

$24.32

-$0.34

Viacom, Cl. B

VIAb

$37.11

+$0.36

Hispanic Bcg.

HSP

$20.54

-$0.36

Westwood One

WON

$35.85

-$0.14

Interep

IREP

$1.80

-$0.06

XM Sat. Radio

XMSR

$3.95

-$0.20

RBR Celebrates 20 Years
1983-2003

RBR Take a Bow
Jim and all who have contributed to RBR, your publication stands tall among your peers.

Congratulations!..and keep delivering those "RBR Observations."

From your friends and readers at Premiere Radio Networks


Publisher's Perspective

Talking the talk of radio and accountability?

Has a nice ring to it and the process is painful, honest, and has spectators in the stands roaring like it was a gladiator contest. If radio executives and chiefs of groups, associations want accountability then we all have to suck it up and not sweep it under the carpet. According to Miller, Kaplan, Arase & Co. LLP's George Nadel Rivin the process is quick and it doesn't hurt. It is the waiting that kills ya.

| Click Here for full perspective |


RBR Bounceback

We want to hear from you.
Speak out to your colleagues in radio on any subject affecting this business.

This is your column, so send your comments to [email protected]

This Clear Channel competitor claims revenue reporting problems seen in one market (2/4 RBR Daily Epaper) are not unique.

Great story outlining the Miller Kaplan "mistake" made in Houston by Clear Channel. "Mistakes" like this seem to be common practice in many other markets. In which markets will we next hear about contaminated reporting?

Dean Snyder
General Sales Manager
Infinity Broadcasting


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Upped & Tapped
Fletcher joins Entravision in LA
Former KFI-AM & KZLA-FM AE Kimberly Fletcher has jumped to Entravision (N:EVC) to become Sales Manager of its new Dance CHR simulcast in LA on 103.1 mHz (KDLD-FM & KDLE-FM). She will report to Tom Bell, GSM of Entravision Radio-Los Angeles.

"We're thrilled to have Kimberly join our Entravision team. She will be a valuable contributor to the rapid revenue growth of our newly launched dance stations," said GM David Haymore.

New name at CRB: Chastity Crouch
Chastity Crouch has been named Assistnat to CRB Executive Director Ed Salamon and Event Support Director. She replaces Celeste Irvin.

Transactions
$200,000,000 KPLR-TV St. Louis & KWBP-TV Portland OR (Salem OR). 100% of Acme Television Licenses of Missouri LLC from Acme Television LLC (Patrick J. Mullen), a subsidiary of ACME Communications (O:ACME) to Tribune Broadcasting Co. (N:TRB) (Dennis FitzSimons). $1M escrow, balance in cash at closing. A portion of the purchase price will be in the form of a tax-free like-kind exchange involving third-party Entercom (N:ETM), which is acquiring KQMT-FM Denver from Tribune. Broker: Deutsche Bank Securities Inc. (seller).

$3,250,000 WJOB-AM Chicago (Hammond IN) from St. George Broadcasting LLC (Robert J. Maccini, receiver) to Starboard Broadcasting Inc. (Mark C. Follett, Robert Atwill, John Cavil). Deposits of $150K and $93K, balance in cash at closing. Duopoly with WWCA-AM Gary IN. LMA since 12/31/02. Brokers: Robert Maccini, Media Services Group and Dick Kozacko, Kozacko Media Services.

$75,000 KAXG-FM Gillette WY and KOHR-FM CP Sheridan WY from American Family Association (Donald Wildmon) to Hi-Line Radio Fellowship Inc. (Dean Hodges, Brent Schellin, Roger Lonnquist, Jerry Waltari, Charles Stewart, Ed Matter, Alec McIntosh, Ron Upham). Buyer already owes seller $22.5K from a separate transaction. that sum will be added into $75K consideration for these two stations. $15K cash at closing, $82.5K note ($65K for KAXG-FM, $10K for KOHR-FM CP). Buyer will make six quarterly payments of $5K, and a final $52.5K lump payment 21 months after closing. All parties to the contract are non-profit.

N/A KQMT-FM Denver from Tribune Broadcasting Co. (N:TRB) (Dennis FitzSimons) to Entercom (N:ETM) (Joseph M. Field et al). Station is part of $162M deal between these two entities. This portion is being treated as a third-party, tax-free like-kind exchange in Tribune's acquisition of KPLR-TV St. Louis & KWBP-TV Portland OR form Acme Television. Superduopoly with KALC-FM, KOSI-FM & KEZW-AM. LMA since 12/24/01. Broker: Deutsche Bank Alex Brown (seller).

RBR Radar 2003
Keeping the eyes on issues on a need to know basis.

Industry Jobs

General Sales Manager
Naples, Fl. News/Talk AM looking for GSM. Can you build and lead team selling, O'Reilly and Hannity? Will consider AE with proven record ready to move up to management.
E-mail resume to [email protected].
Equal Opportunity Employer.

More jobs..


Contacts
MANAGEMENT
Publisher, Jim Carnegie
[email protected]
VP/GM, Assoc. Publisher, Ken Lee
[email protected]
VP, Cathy Carnegie
[email protected]
Admin. Assistant, April McLynn
[email protected]

EDITORIAL
Executive Editor, Jack Messmer
[email protected]
Managing Editor, Dave Seyler
[email protected]
Senior Editor, Carl Marcucci
[email protected]

SALES
Account Executive, June Barnes
[email protected]

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