Volume 21, Issue 27, Jim Carnegie, Publisher
Tuesday Morning February 10th, 2004

Radio News ®

Competing committees:
McCain scores full Commissioner lineup -
Karmazin and Tagliabue to testify

Wednesday's double-trouble indecency investigations in the Senate and the House features simultaneous hearings from all or part of each branch's Commerce-related committees. In the competition for witnesses, it would appear that the Senate's upper house status has carried the day - - it'll play host to all five FCC commissioners.
RBR observation: Will Congress need a portable Green Room?
| Full Story Click Here
| RBR Observation |

Big City offers entry into Entravision
Big City Radio, which is now a stationless entity on its way to non-existence, has announced another step toward that end. It is liquidating its primary remaining asset, a 2M share stake in Hispanic radio and TV station group Entravision.
| Full Story Click Here
|

PastieGate update:
Mixed decision for Viacom
We're not sure what the other 53% would pick, but Reuters is quoting a Time/CNN poll which has 47% of Americans agreeing that the Janet Jackson/Justin Timberlake incident at the Super Bowl halftime show represents "a new low in bad taste." However, the same poll said that 68% did not believe that the act warranted punishment for CBS Television, the network which brought the incident into the homes of America (it says unwittingly). As reported in TVBR, the FCC is receiving a record number of complaints about the incident. All five FCC Commissioners have been booked by the Senate Commerce Committee to discuss broadcast indecency tomorrow, 2/11/04 (see related story).


Drudge: Michael Powell threatened to pull CBS licenses
The Drudge Report says yesterday that FCC Chairman Michael Powell considered holding a dramatic license revocation hearing against CBS after last week's Super Bowl breast mess: | Full Story Click Here |

LPFM launches in FL as "Hometown Radio"
The Jupiter, FL Courier reports fans of music from the '50s, '60s and '70s have a new place to tune on their radio dials -- WJTW, 100.3-FM in Jupiter. The new "hometown" radio station fired up and sent its sounds out over a five- to six-mile broadcasting range last week, said station owner Tom Boyhan. The station's signal is sent out via an antenna perched atop a 70-foot palm tree planted behind the office. As the tree grows, Boyhan quipped, the station's range will spread. "We would like it to be about 100 feet tall." With the existing antenna the station will be heard primarily in Jupiter, Tequesta and Juno Beach. | Full Story Click Here |

J-P jacks up its dividend rate
Jefferson-Pilot, which mixes radio and television in with its bread-and-butter insurance operations, has announced a 15% increase in its dividend rate. It'll be available to shareholders of record as of 5/21/04 and will be paid out 6/5/04. In per share terms, the dividend rate will be rising from 33 cents to 38 cents. J-P has also upped its share repurchase authorization to 5M. "These actions highlight Jefferson-Pilot's strong financial performance, demonstrate our commitment to shareholders, and recognize the more favorable tax treatment of dividends," explained J-P Chairman/Chief Executive David A. Stonecipher.


Excecutive Perspective

Time to Merge RAB with NAB?
Coming off the annual RAB 2004 there are always rumbles of discontent. The gossip has started again because of the buzzword 'accountability' and the cost of running effective numerous trade associations. The rumbles of RAB merging into NAB are not new, and the question remains: Is it practical, due to conflicting mission of each of these associations? RAB is sales and marketing. NAB is legislative and lobbying. NAB has both radio and television arms and to some in radio, this is a logical potential merger.

Talking trade association merger, few have more first-hand experience than our guest in Executive Perspective:
Peter Ferrara, Senior Vice President, Clear Channel Radio Mid-Atlantic Region. (Note: The perspective is the professional, personal experience and views of Ferrara and not of Clear Channel Communications.)

Ferrara states: Well...Since you asked, rewind to 1984. The NRBA (The National Radio Broadcasters Association) was a well respected and broadly supported radio trade association. The time came though when the NRBA's useful function as an independent organization became diluted, even unnecessary.

Publisher's Note: Agree to some extent of a possible merger but it would seem logical that RAB merger with TVB? | Full Story Click Here |


Adbiz ©

Anheuser-Busch looking at old US ads/branding
for foreign markets
Anheuser-Busch is updating some of its past US campaigns and seeing if they fit the tastes of audiences overseas. For example, Busch's "Ants" campaign, not seen in the US since the late '90s, is being shown in China and has proven to be a hit, reports the AP. Reincarnations of the beer maker's campaigns also are popping up in the UK, Ireland and Canada. | Full Story Click Here |

Super Bowl advertisers complaining to NFL
Knight Ridder Newspapers reports some of America's biggest marketers are mulling whether to return to the Super Bowl. Longtime big spenders such as Pepsi and Gillette have communicated in harsh words to NFL Commissioner Paul Tagliabue that if the league does not clean up the halftime act, they might take a pass in 2005. The buzz from advertising sponsors has centered mostly around a "wardrobe malfunction'' that result in a brief baring of Janet Jackson's right breast. But the problems started long before Jackson and Justin Timberlake took the stage, according to a letter to Tagliabue from James M. Kilts, chairman of Gillette. | Full Story Click Here |


Media, Markets & Money tm

Swap shop: Regent and Citadel work out trade
At deadline, RBR received word that Regent Communications and Citadel Broadcasting had worked out a station swap which would put Regent into the Bloomington IL market with five stations. In exchange, Citadel will get a foursome in Erie PA and a pair in Lancaster PA. The two sides figure that Regent is getting the better of the deal on a station-by-station basis. They have agreed to a formula based on the performance of the Bloomington cluster over the 12 months leading up to 1/31/04, which will result in an additional cash payment to Citadel. Regent also announced the closing of another deal. It received four stations in Duluth MN and $2.7M cash from Clear Channel in exchange for a five-station Evansville IN cluster.

Hearst-Argyle tees up earnings report
Television station group owner Hearst-Argyle is set to announce its Q4 and full year resuts via teleconference at the end of the month. It's execs will release figures, make comments and take questions 2/26/04 at 9:30 AM Eastern. It'll be available additionally at the company's website. The company owns 24 and manages two mostly-network-affiliated TV stations reaching 17.7% of total US TV households, and also runs a AM-FM radio combo in Baltimore.


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Washington Beat

Clear Channel VA foursome nailed for file failure
Four stations in the Clear Channel Roanoke-Lynchburg cluster have been hit with NALs (notice of apparent liability) for problems with their public file. However, the bottom line is that it pays to deal with the FCC in full candor. RBR observation: Good news from Washington, for a change | Full Story Click Here | RBR Observation |


Programming

Hockey hiatus looking more and more likely
If your station fills any programming holes with broadcasts of National Hockey League games, it isn't too early to start making plans for an alternative programming option. A lengthy labor action appears to almost be a given, probably beginning next season. The big stumbling block issue is implementation of a team salary cap. The owners want one, and the players don't. Both sides have been making plans to weather a work stoppage. Despite the fact that the loss of a full season or more of NHL play is routinely mentioned, the two sides are not even in serious negotiation as yet, according to an AP article.


Transactions

$7,000,000 WFNR-AM/WBRW-FM, WFNR-FM, WFNR-AM/WWBJ-FM, WPSK-FM & WBWR-FM Blacksburg-Christiansburg VA (Blacksburg, Christiansburg, Radford, Pulaski & Bedford) from New River Valley Radio Partners LLC to Cumulus Media.

$1,000,000 KRVA-FM Campbell TX and KRVF-FM Kerens TX from First Broadcasting Investment Partners LLC to LKCM Radio Group LP.

$55,000 WLYC-AM Williamsport PA from Williamsport Communications Inc. to James R. McKowne.

| More Info Click Here
|


Stock Talk

Whatever floats your boat
Almost everybody in the radio business with stocks to sell saw their price go up yesterday. Although most of the gains were of the modest variety, there was reason to celebrate at a couple of companies (see Fisher and Emmis). Viacom, which trades A and B versions, had the worst day, a double downer which included the worst loss. Still, it wasn't all that bad, at minus 42 cents.


Radio Stocks

Here's how stocks fared on Monday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

$43.50

-$0.20

Jeff-Pilot

JP

$52.98

+$0.25

Beasley

BBGI

$18.15

-$0.16

Journal Comm.

JRN

$19.75

+$0.45

Citadel CDL $18.60 -$0.10

Radio One, Cl. A

ROIA

$18.47

+$0.19

Clear Channel

CCU

$44.95

+$0.45

Radio One, Cl. D

ROIAK

$18.37

+$0.17

Cox Radio

CXR

$22.98

+$0.58

Radio Unica

UNCA

$0.69

unch

Cumulus

CMLS

$20.82

+$0.61

Regent

RGCI

$7.00

+$0.11

Disney

DIS

$23.77

+$0.42

Saga Commun.

SGA

$18.71

+$0.11

Emmis

EMMS

$25.93

+$0.82

Salem Comm.

SALM

$25.70

+$0.04

Entercom

ETM

$47.65

+$0.50

Sirius Sat. Radio

SIRI

$2.90

+$0.10

Entravision

EVC

$11.00

+$0.25

Spanish Bcg.

SBSA

$12.19

+$0.04

Fisher

FSCI

$51.45

+$1.79

Univision

UVN

$35.71

+$0.06

Gaylord

GET

$29.69

+$0.04

Viacom, Cl. A

VIA

$40.39

-$0.27

Hearst-Argyle

HTV

$27.39

+$0.27

Viacom, Cl. B

VIAb

$39.98

-$0.42

Interep

IREP

$2.25

unch

Westwood One

WON

$31.40

+$0.15

International Bcg.

IBCS

$0.02

unch

XM Sat. Radio

XMSR

$23.30

+$0.44


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Publishers Perspective

RAB 2004
'Accountability'
A Melting Pot
boiling over...
President Fries spoke on accountability and EDI but it was delivered a little awkward. It was the 'State of the Industry' speech to an audience that not all were on the same verbal or intelligence level of the issues facing radio that have been long discussed behind closed corporate board meetings, ad agency and client world doors. At the opening breakfast I sat with four first timers to an RAB conference who work in small markets from Washington State and their first reaction was: "Where are the eggs? The ticket said breakfast!"
| Full Story Click Here |


Bounceback

We want to hear from you.
This is your column, so send your comments to [email protected]

We received yet another response to Managing Editor
Dave Seyler's Editorial Perspective piece from last week.

I have to agree with Mr. Seyler's observations on the Super Bowl fiasco. The fiasco seems to have a life of it's own now and in my opinion, the fiasco is not the "act," but the over the top reaction of politicians getting on the band wagon, political groups and the "outraged" citizens who now file class actions....like always they are out for their own agendas, not our protection. This was not that big a deal. What we see on VH1, MTV and televised rock concerts are as bad or worse. Do you mean to tell me that the Victoria's Secret fashion show does not compare to this for it's prurient interest and obvious philosophy of blatent sale of sex? The uproar over that was far less. Give me a break. Chill out.

Stan Elgart


More News Headlines

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RBR Radar 2004
Click on these issues for Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Belo chief: Broadcasters
own enemy on indecency
With five CBS affiliates among his 19 TV stations, it's not surprising that Belo CEO Robert Decherd was asked for his take on the Janet Jackson incident and Washington's current focus on indecency. Editor's Note: A classic example of how we, the media, are our own worst enemy! 02/09/04 RBR #26

House subcommittee schedules indecency markup
All of the House Telecommunications and the Internet Subcommittee members who joined Rep. Fred Upton (R-MI) declared that H.R. 3717 was on the legislative fast track weren't kidding. RBR observation: The squeaky wheel gets the grease, and all the wheels in Washington are squeaking. Everyone wants to get their licks in. Indecency is like the hysterical woman in the movie "Airplane." The entire Congressional roster is lined up, ready to smash it. There's Upton with a baseball bat; then comes Markey with a truncheon; there's Tauzin wielding a revolver; here comes Dingell with a cutlass; and hey - - here comes McCain with a bazooka!
02/09/04 RBR #26

Viewer sues Viacom
over Super Bowl flash
You knew this was coming. A woman in Tennessee has filed a federal lawsuit against Viacom and everyone involved in last Sunday's Super Bowl halftime show, claiming she was injured by the broadcast image of Janet Jackson's breast.The lawsuit claims that Carlin, a Knoxville bank employee, and millions of other Americans were injured by "sexually explicit conduct" during the halftime show. Editor's Note: Humna Human Humna! 02/06/04 RBR #25

Senate jumping into
indecency game as well
Unwilling to let members of the House hog the spotlight for attacking broadcast indecency, the Senate is launching its own review of Janet Jackson's bare breast and other allegedly indecent broadcasts. Sen. John McCain (R-AZ) has scheduled a hearing. Editor's Note: Set your VCR’s. 02/06/04 RBR #25

Carlin case lawyer see
FCC impotent on indecency
Although he lost the Supreme Court case on a narrow 5-4 vote, the lawyer who represented Pacifica Foundation's WBAI-FM New York in the famous George Carlin indecency case doesn't think the FCC is going to get anywhere with its current effort to crack down on indecent broadcasts. Rather, David Tillotson sees the Commission racing toward actions which it will be unable to defend in court. RBR observation: With the current FCC hell-bent on compounding the problems with its indecency rules, rather than fixing them, it appears that the courts are the only hope for eventually straightening out this mess. Unfortunately, we don't see than happening in the foreseeable future. Editor's note: You can hear the actual Carlin piece here, but be warned, these are the actual 7 banned words. 02/05/04 RBR #24


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