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Radio News ®
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 Emmis cuts radio staff by 5%
Emmis Communications confirms that it has let go 46 staffers at radio stations in five markets, but says that is the end of payroll reductions for its US radio group. "Yesterday [Tuesday], a total of 46 positions were eliminated in our Los Angeles, New York, St. Louis, Austin and Chicago (1 position) radio markets. An additional dozen employees will have reduced hours or changed positions. Very few positions were in sales; many were part-time employees. Like many of our industry peers, Emmis took these steps as an expense reduction effort and to better position the company. Emmis provided a generous severance package and extended benefits to all the affected employees. No further eliminations are planned," the company said in a statement sent to RBR. Wall Street analysts say the cost cuts will help to counter a revenue decline from the relaunch of WQCD-FM NYC as Adult Rock WRXP-FM (2/6/08 RBR #25). "We believe that near term, the format change will have an impact to revenues of approximately 2.5 million for fiscal year 2009, reflecting some changeover in the advertising base. Assuming no change to station expenses, we are assuming a 2.5 million cash flow decline," said Bear Stearns analyst Vic Miller in a note to clients. But, he added, "The revenue reduction is expected to be offset by lower expense related to headcount reduction. Emmis eliminated approximately 46 positions (or roughly 4.6% of its domestic radio workforce) throughout the company. As a result, we are making no change to full year EBITDA."
According the analyst Marci Ryvicker at Wachovia, the reformatting should be taken as a sign that there is no imminent sale of the New York station. "We believe that this change in formats is a direct result of the station's significant share declines and Emmis' inability to sell the station in a stagnant M&A market," she said in a research note. "The two announcements today led to an overall reduction to our F'09 domestic radio operating expense growth assumption - to flat from +3%. We think that the staff cuts across the company's domestic radio portfolio will have a greater impact than the incremental promotional costs that are likely to result from the NYC format change. Our sense from talking to management is that there will not be the same level of spending in NY as there was in LA when KZLA flipped to KMVN in August'06. Furthermore, we think Emmis will make expense cuts in other markets to offset increases in NY," Ryvicker added. With revenues down, but costs down more, the analyst is looking for EBITDA to increase 6.9% in 2008 at Emmis.
 Obama used the most radio
for Super Tuesday
Media Monitors has compiled a special report, focusing on the National Political Spot Ten for the week leading up to Super Tuesday, then dissecting each Spot Light market to see the results and the radio spots involved in the contests. Barack Obama last week on national radio ran 4,842 spots. Ron Paul was #2 running 2,941 spots. The California Coalition to Protect the Budget was #3 and ran 2,326 announcements, while Hillary Clinton was #4 running 2,141 spots. The Vote Yes to Pinnacle Entertainment was #5 with 1,082 spots. California's Power PAC for Fair Education ran 981 spots and was the #6 advertiser with John McCain coming in #7 with 809 spots. A Power PAC for Barack Obama also ran spots for the candidate and came in 8th with 547 spots. There was a Power PAC ad group that was #9 with 498 spots with Yes on Prop. 93 running 449 spots. RCS- Media Monitors VP/Marketing Dwight Douglas tells RBR: "I hate to say anything bad about anybody working so hard to win an election to help America become a better place, but really, why not more radio? Radio is a powerful medium and the bang for your buck makes it a natural. When I see some of these candidates running 10 spots in a major city (a spot a day?), I have to ask, are you trying to get your word out, or are you just throwing some loose change our way? Radio can help you, why don't you use it right?"
| See the Super Tuesday report, state by state, on RBR.com |
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Primaries: What's left
With four Republican candidates still standing, despite the establishment of strong front runner status by John McCain (R-AZ), and with much heavy lifting ahead for two strong Democratic contenders, the states still in play in the 2008 presidential primary season figure to be money magnets. The good news is that the Democratic race is where the indecision is, because that also happens to be where most of the warchest cash is. Several campaign events are taking place this weekend. Two, in Louisiana and Washington, involve both parties; two are Democrat only, in Nebraska and Maine, and one, in Kansas, is Republican only. After that there is a tidy regional primary being held in and around the White House zone itself, including Washington DC, Maryland and Virginia. The District is a major market reaching parts of all three jurisdictions. Maryland's rated markets include Baltimore and Salisbury. Virginia, with the greatest amount of territory, includes capital Richmond, Norfolk-Newport News (the state's largest market), Roanoke-Lynchburg, Charlottesville, Harrisonburg, and a corner of the Bristol portion of the Tri-Cities market, which is mostly situated across the state line in Tennessee.
RBR observation: Republicans candidates have to face a sizable lead in delegates now held by McCain, but may pin their hopes on his potential failure to gain a plurality, leading to the possibility of a brokered convention. We saw one report indicating that Mitt Romney (R-MA) may consider hanging on at least until 3/4/08 when Ohio, Rhode Island, Texas, Vermont are up for grabs. Mike Huckabee (R-AR) shows no signs of dropping out, and Ron Paul (R-TX), who hasn't been able to translate his stockpile of cash into a significant stockpile of delegates, still has plenty of money to spend. The Democrats may wind up without a plurality as well. Both survivors are well-funded and figure to strongly contest the remaining states on the card.
| Remaining schedule here |
 Ad requirements for
dietary supplement marketers
Great American Products Inc., Physician's Choice and Stephen Karian have had their wrists slapped a little harder by the FTC after being charged for a second time with deceptive advertising. Usually when the FTC is on the dietary warpath, it is because unsubstantiated claims have been made about a product's benefits. Not this time: In this case, the defendants were using infomercials on both television and radio to market dietary supplements, sublingual sprays and other items, and failed to make clear that the programs were in fact paid advertisements. By court order, they must now do the following when running similar ads:
* The defendants must display a visual paid advertising disclosure continuously throughout the ordering instructions during television advertisements.
* The defendants must broadcast a supplemental audio paid advertising disclosure simultaneously with the initial visual disclosure (in the first 30 seconds of the advertisement, for a period of at least 10 seconds), clearly and audibly, in a cadence sufficient for the ordinary consumer to hear and comprehend, and in a volume as loud or louder than the loudest statement in the advertisement.
* The audio paid advertising disclosure for a radio advertisement must be as loud or louder than the loudest statement in the advertisement, and the defendants must make the disclosure immediately prior to ordering instructions.
RBR observation: The defendants appear to have gotten off without a fine, and as a benefit to all who run infomercials, the FTC and the court have provided a highly specific guideline on how to go about running one without running afoul of the rules. In particular, it is a rare look at the FTC's preferred procedure for radio infomercials -- so rare, in fact, that we cannot remember seeing anything like it before. Presented by RBR courtesy of the FTC for your own infomercial production safety.
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Ad Business Report TM
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7-Eleven launching radio campaigns
 The company that invented coffee-to-go some 40 years ago and sells at least a million cups a day is launching a multi-million-dollar "freshness guaranteed" ad blitz in February. With taglines like "Our coffee's fresher than your average joe" and "Guaranteed fresh or we'll brew it new," 7-Eleven, plans to educate coffee drinkers about the chain's commitment to quality. The new campaign includes radio, billboards, bus panels and posters at Long Island Rail Road stations. Signs inside and outside the more than 5,500 U.S. 7-Eleven stores will let customers know they can ask a 7-Eleven employee to brew a fresh pot on the spot. Local promotions will be a part of the marketing mix. 7-Eleven also is continuing the sales momentum of its January Supreme Breakfast Bite and coffee "meal deal" offer with additional radio advertising. The company will create a separate a radio spot for February promoting the new sausage, egg, cheese, peppers and onions roller grill product that's ready-to-eat and easy-to-consume along with any size cup of coffee for 1.99.
SCA Promotions to give away 25G at RAB
Attendees at this year's RAB have two chances to pocket 25,000, thanks to the big-money promotions being offered by Dallas-based SCA Promotions. To educate radio sales personnel on its revenue-generating promotions that pump up radio spot and remote sponsorship sales, SCA is giving attendees a turn at its JackPot Machine and Press for Cash kiosk game. To play for the 25 grand and other cash prizes and giveaways, RAB attendees need only to stop by SCA Booth 218 during the show. The JackPot Machine allows radio stations to incorporate multiple advertisers in their promotion, with up to 13 different prize levels. In addition, attendees who stop by the SCA booth have the opportunity to receive a free Promotions Idea Kit, filled with 60+ promotion ideas stations can incorporate to increase ad dollars.
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| Media Markets & Money TM |
Close encounter in Nebraska
Red Beacon Communications, headed by Michael Flood, is now in control of the control room, and all the other rooms, at a trio of stations it just acquired from NRG Media. The stations include KNEN-FM Norfolk NE and KTCH-AM/KCTY-FM Wayne NE. According to brokerage house Kalil & Co., the price was 3M. Flood already held a stake in nearby KUSO-FM Albion NE.
Wasatch noncom being shopped
A Park City UT non-profit broadcasting organization has decided to focus on its KPCW-FM flagship, and as such is putting sisters KCPW AM & FM up for sale. The group, Community Wireless, is said to be losing money on the stations, are Salt Lake City-oriented, and the owners think an ownership group based there would do better with the stations. According to the Salt Lake Tribune, they are taking offers through the middle of March, and will favor a competitive bid which promises to retain the stations News-Info format.
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| Media Business Report TM |
UM students win Braun MBA case study competition
Braun announced Emily Hoffman, Karima Holland, Mihira Patel and Holly Sharp of University of Michigan's Ross School of Business as the winners of "Create a Buzz for Braun," a case study competition that challenged the country's brightest business school students to create a marketing plan for its electric shaver business. Students from 14 of the country's top ranked MBA programs were eligible to enter the contest. The top three finalists presented their plans in Cincinnati on Monday before Jim Stengel, Chief Marketing Officer for P&G, Bracken Darrell, Braun's Global President, and Jeffrey Green, Clinical Associate Professor of Marketing, NYU Stern School of Business. The team will split the prize money of 40,000 which can be used to help pay business school tuition.
 Time Warner may split off AOL
access business, reduce cable stake
In his first quarterly conference call since becoming CEO of Time Warner, Jeff Bewkes indicated that he is looking to make some changes. He told analysts that the company is looking at splitting off the Internet-access business of its AOL unit to focus on increasing page views and ad sales for its AOL portal. Time Warner has already sold off AOL's Internet access businesses outside the US. In addition, Bewkes indicated that Time Warner might further reduce its current 84% stake in Time Warner Cable, whose stock also trades publicly. Time Warner itself reported that Q4 revenues rose 2.4% to 12.6 billion. Net income declined to 1.03 billion, or 28 cents per share, from 1.75 billion, or 44 cents per share, a year earlier. That previous year's quarter had included some one-time gains.
Adspace Networks adds major national advertisers
The Adspace Mall Network has attracted a group of blue-chip national advertisers that are buying commercial time on Adspace's nationwide out-of-home network. Major national advertisers using Adspace's digital mall network include AT&T, Ford, Coca-Cola, Verizon, New Line Home Entertainment and The U.S. Navy. Now reaching more than 100 million people each month, 1,300 Adspace Smart Screens are located in 102 malls nationwide. Viewing levels of the network are driven by content called "Today's Top Ten", which showcases a mall's top 10 sale items each week. The program allows the mall's retailers to compete to be featured on the screens by submitting their best deals including original prices and total savings. Adspace then chooses the 10 best deals and produces a free 12-second spot, for each, and incorporates the ten spots into its six-minute loop of content and advertising.
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| Washington Business Report TM |
 E&C hosts retail DTV event
The House Energy and Commerce Committee held an event demonstrating a number of digital-to-analog converter boxes to members of Congress and their staffs, in hopes of getting them to spread the word to their constituents back home. Committee Chairman John D. Dingell (D-MI) said, "With just one year to go until analog broadcasts cease, it is incumbent upon the government, industry and the public interest community to work together to ensure our nation leaves no viewer behind. This demonstration allowed my colleagues in Congress to get a firsthand view of the options their constituents will have before them when they upgrade their analog television sets for the digital television transition." The demonstration included products from Artec/Ultima Electronics Corporation, Best Buy/Insignia, Digital Stream, EchoStar, GE/Jasco, Max Media, RCA/Alco Electronics, Tivax, Zenith/LG Electronics and GXi International. The Committee now has hot links to online demonstrations of such products on the its homepage, accessible by anybody from a fellow Rep to an average citizen. The site also includes links to the NTIA converter box coupon program, the FCC and other key sites.
RBR observation: The links are extremely useful, no doubt. The problem is that the average citizen isn't going to say to himself, "Gee, what's with all that DTV stuff I keep hearing about? Guess I'll go the House Energy and Commerce Committee website and see what's what." For this list to be of any practical use, the Committee will have to find a way to make sure it is a prominent result of a search engine survey of the DTV transition, or find other ways to drive traffic to the list. We suggest that committee staff determine what sort of websites result when a relatively DTV-ignorant citizen initiates a search for information, and immediately negotiate with the resulting websites to carry an E&C DTV link and others that would be of use. Oh, and buy some ads.
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| Entertainment Business Report TM |
Mega Media Group launching "Pulse 87" in NYC
Pulse 87.7 FM (WNYZ-LP), a new rhythmic top 40 station will be launched by Mega Media Group, on 2/11 at 6am, the station will feature the popular Star & Buc Wild Morning Show which will debut on 2/18 weekdays. Former Jammin' 105 PD Joel Salkowitz will become the station's PD. WNYZ is actually a LPTV in the market, broadcasting in analog on VHF ch. 6. However, they have not been broadcasting video. Their signal reaches the five boroughs (Brooklyn, Bronx, Manhattan, Queens, Staten Island), most of Long Island, central and north New Jersey. Its transmitter is on top of the Citicorp Building in Long Island City, Queens.
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| Ratings & Research |
English-speaking Hispanics represent
two-thirds of Hispanic boomers
 Marketers and advertisers have recognized the importance of Hispanic consumers for some time but have segmented within the Hispanic community primarily on the basis of language -- creating Spanish language ads and communication for the unacculturated, Spanish-speaking population while relying on their mainstream communication to reach more-acculturated, English-speaking Hispanics. Recently, however, marketers have started to realize that messages aimed at the general market may not resonate with more-acculturated Hispanics. A new report from Focalyst focuses on the 7 million Hispanic Boomers in the US and examines whether marketers are missing important segments by using language as the defining characteristic.
There are more trailing Hispanic Boomers (64%) than in the General Market (57%), meaning that they have additional years before many will be reaching the age when critical insurance and financial decisions are made. Employment among Bicultural Hispanic Boomers is about equal to the General Market, however they earn 23% less income on average. Hispanic Boomers live in larger households (3.3 vs. 2.9 for the General Market), often made up of younger children, adult children, or older relatives. With extended families, Bicultural households have the largest household composition (3.6 people). Acculturated Boomers are the most likely to be a caregiver for a family member, with 14% recently taking on this role. Besides supporting larger households, a quarter of Hispanic Boomers are providing substantial financial support to someone outside of their homes. Acculturated Hispanic Boomers are more likely to aspire to continue their education (28%), while Bicultural Hispanics are almost twice as likely to desire to start a new business than the general market Boomer.
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| Transactions |
4.6M KVPW-FM Fresno CA (Kingsburg CA) from Pro-Active Communications-Fresno LLC (Gerald D. Clifton) to Macknificent Broadcasting-Fresno LLC (Greggory M. McMillion). 200K earnest money, balance in cash at closing. [File date 1/7/08.]
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| Stock Talk |
Fed talk spooks the market
Wall Street traders get nervous when a Fed official starts talking out loud about inflation worries. That's exactly what happened yesterday, as comments by Federal Reserve Bank of Philadelphia President Charles Plosser put an end to a min-rally sparked by a strong earnings report from Disney. The Dow Industrials ended the session down 65 points, or 0.5%, at 12,200.
Radio stocks were mixed. The RBR Radio Index gained 0.334, or 0.4%, to 81.556. That was nearly all due to Emmis rising 11.5% after announcing staff cuts. Citadel was the day's worst performer, down 6.7%.
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| Radio Stocks |
Here's how stocks fared on Wednesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron*
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ARB
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39.60
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-0.16
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Google
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GOOG
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501.71
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-5.09
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Beasley*
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BBGI
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5.68
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+0.14
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Hearst-Argyle
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HTV
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22.22
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-0.08
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| CBS CI. B |
CBS |
 |
24.12
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-0.13
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Journal Comm.
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JRN
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8.19
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+0.07
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| CBS CI. A |
CBSa |
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24.15
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-0.12
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Lincoln Natl.
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LNC
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52.39
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+0.98
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| Citadel* |
CDL |
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1.39 |
-0.10 |
Radio One, Cl. A
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ROIA
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1.68
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-0.01
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Clear Channel*
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CCU
|
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29.25
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-0.51
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Radio One, Cl. D*
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ROIAK
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1.69
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-0.03
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Cox Radio*
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CXR
|
|
11.98
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-0.02
|
Regent*
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RGCI
|
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1.19
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-0.01
|
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Cumulus*
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CMLS
|
|
6.25
|
+0.19
|
Saga Commun.*
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SGA
|
|
5.68
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+0.09
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Debut Bcg.
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DBTB
|
|
1.02
|
unch
|
Salem Comm.*
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SALM
|
|
4.01
|
+0.01
|
|
Disney
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DIS
|
|
31.50
|
+1.43
|
Sirius Sat. Radio
|
SIRI
|
|
3.13
|
+0.01
|
|
Emmis*
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EMMS
|
|
2.90
|
+0.30
|
Spanish Bcg.*
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SBSA
|
|
1.71
|
unch
|
|
Entercom*
|
ETM
|
|
11.64
|
-0.48
|
Westwood One*
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WON
|
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1.84
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+0.04
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Entravision
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EVC
|
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6.65
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-0.15
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XM Sat. Radio
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XMSR
|
|
12.00
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-0.05
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Fisher
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FSCI
|
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31.85
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-0.21
|
-
|
-
|
-
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-
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-
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*Component of the RBR Radio Index
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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]
More on overnight staffing
 Jon Hosford may be right about how station owners would deal with a federal mandate for 24/7 studio operation (2/1/08 RBR #22). But his assertion there is "no economic sense in paying someone of even marginal talent to be on the air when...nobody is listening" is based upon a false premise and is a shortsighted view!
| Read Stuart's full response |
Stuart J. Sharpe, President
Regional Reps Corp.
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Below the Fold
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Ad Business Report
SCA Promotions
To give away 25G at RAB...
Media Business Report
UM students win
Braun MBA case study competition...
Media Markets & Money
Close encounter in Nebraska
Red Beacon is now in control of KNEN-FM, KTCH-AM/KCTY-FM...
Ratings & Research
English-speaking Hispanics
Represent 2/3rds of Hispanic boomers...
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Stations for Sale
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 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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Klotz names
Xithalis DOS
 Klotz Digital announced Maria Xithalis has joined as Director of Sales - Americas. Key functions of her duties will be Business Development and the management of sales and customer relations. Xithalis will be based in Ontario, Canada, but will work closely with Klotz Digital's team in Atlanta.
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More News Headlines
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Midwest Television signs for PPM
Don't let the name fool you, Midwest Television Inc. also owns radio stations, and not in the Midwest either. Arbitron announced that the company is the latest to sign a multi-year contract for Portable People Meter radio ratings services. The agreement covering KFMB-AM & FM will take effect when Arbitron commercializes PPM service in the market. San Diego is scheduled to switch to PPM ratings in June 2009.
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RBR Radar 2008
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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One down; Can broadcast stocks endure 11 more months?
As bad as 2007 was for most broadcasting stocks, the first month of 2008 did not bring any improvement. Most radio stocks were down for the month of January, as were most TV stocks. Expectations of a political ad spending windfall this year did not counter investors' worries about the possibility, or perhaps probability, of a national recession. Television stocks had a somewhat better month than their radio brethren, but still the numbers were nothing to celebrate.
RBR note: See the Hot List if you can bear to view the carnage. The TVBR.com analysis and stats - hold on to your hair
02/06/08 TVBR #25
Emmis blows up CD 101.9 NYC
Emmis has blown up Smooth Jazz in NYC for Adult Rock. 101.9 WRXP, "The New York Rock Experience," merges New Music, Classic Rock, Alternative & Local Rock into a new adult blend. 101.9 RXP. Buyers are excited, as well. Rich Russo, JL Media's SVP/Director of Broadcast Services, tells RBR.com "It's about friggin' time...
RBR observation: With the return of CBS's K-Rock and now WRXP, we now have two Rock stations back in the market. Hopefully, WRXP will lean hard on Indie Rock and not play too many of the same old tired tunes. We congratulate Emmis on taking this to their main signal, rather than trying it as a multicast channel first-the market was starving for more rock. Letting the DJs pick their own music is a great idea, too. Bring back the original WNEW, so to speak. Full report in RBR.com
02/06/08 RBR #25
CC Katz Advantage expands
for multiplatform sell
The benefits of a multi-platform radio buy as well as implement national buys on behalf of specific brands. In addition to new staff for Atlanta and San Francisco, the company will add a couple new offices and business-development pros to each of its existing offices-from 22 to 40-45 folks on the street selling to agencies and advertisers. This is the biggest expansion in CC Katz Advantage's history. They will also be adding staff to their creative solutions group, which helps in the ideation and execution of concepts.
RBR observation: This may not be a bad move on behalf of CCKA's radio clients. While we mentioned the other day that GroupM's consolidation will mean less national spot sales folks because of less agency contacts and could hurt pricing (2/1/08 RBR #22), it appears the strategy is specifically addressing that issue and is heads directly to the clients-marketing directors, CMOs, brand managers, etc. That may make a difference-at least in educating the clients and driving that message back to the media agencies: that radio is a great multiplatform/integrated component to a campaign. The lone radio sale is getting tougher and tougher, but radio remains a fantastic reach and branding vehicle.
02/06/08 RBR #25
Analyst turns believer on CCU
SMH Capital analyst David Miller has turned bullish on Clear Channel, rating the stock a "buy" because he now believes the private equity buyout at 39.20 per share will go to closing, likely by the end of March. Miller notes four levels of concern which have been depressing the stock price for Clear Channel. "1) Weak December pacings, with the RAB releasing data showing December national radio business down 12% and local business down 4%; 2) The rumored collapse of the Alliance Data/Blackstone deal; 3) News flow suggesting that CCU has put itself on a company-wide austerity program; and 4) Concerns about financing, obviously the most important tenet and reflective of wider credit spreads since the deal was announced in late 2006." But with the price beaten down! so much, the SMH analyst has changed his call to "buy" for three reasons. These reasons in RBR
02/05/08 RBR #24
WGA Strike Central, Day 93
Chernin optimistic on strike settlement; Fox will have upfront
According to LA weekly, News Corp. President Peter Chernin did make it to Super Bowl XLII after all and was telling Hollywood folk that "the strike is over," according to emails coming "fast and furious" out of that venue. But when he spoke with Wall Street analysts, Chernin was more coy, refusing to declare an end to the strike at hand. WGA tells members: Deal not done and stay on the picket lines.
02/05/08 TVBR #24
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RBR Classifieds
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Hard finding that key person
to fill the important position at your organization? RBR Classifieds, Results with Service. Contact April McLynn at [email protected]
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