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Radio News ®
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 CCU getting ducks in a row
Clear Channel Communications reports its Q4 earnings this Thursday, with the Thomson/First Call analysts' consensus that the company will report revenues down 4%, but earnings per share flat. But more important is how the company is moving toward a Q1 completion of its going private buyout. FCC approval has already been received. Bear Stearns analyst Vic Miller believes Clear channel filed for antitrust clearance from the Department of Justice on January 14th. If so, he says DoJ approval could come as soon as Wednesday if Clear Channel, as it hopes, gets early termination of the waiting period.
With Clear Channel stock still trading well below the 39.20 buyout price, Miller sees a chance for Thomas H. Lee Partners and Bain Capital to do some buying on the cheap. "After the DOJ gives approval, we believe that THL and Bain may be able to 'average down' their equity contribution by buying shares in the open market to the extent the shares are less than 39.20. CCU's largest 'stub equity' participant, Highfields, seem to take this route in the last two weeks. We will look for evidence of this potentiality from Bain and Lee," Miller said in his latest note on the long-pending buyout. He still thinks the deal will close at the target for closing is in the March 1-15 range. Although closing the sale of Clear Channel Television for 1.225 billion to Providence Equity Partners' Newport Television LLC, is not a prerequisite for closing the deal to take Clear Channel Communications private, that transaction is moving along as well. Newport has now filed with the FCC to put nine of the 35 stations in the hands of a trustee, pending sale, as required by the FCC action approving the acquisition.
RBR observation: Hardly a day goes by without some Wall Street money manager calling RBR to try to find out if we have any behind-the-scenes information on whether or not this deal is going to closing. Sorry, but we don't work that way. What we know is what we've published. And when we find out anything new, you, our readers, are the first to know. As we've noted repeatedly, nether Clear Channel management, Thomas H. Lee Partners, nor Bain Capital has done or said anything which would indicate that this deal will not close as scheduled this quarter. But the CCU stock price still shows a lot of nervousness on Wall Street.
 Key performer plugs airplay
The age old symbiotic relationship between recording companies and radio stations also received a plug from from Grammy-winner Alicia Keys, who used her acceptance speech to thank "every DJ, every radio guy..." (among others) who helped her along the path to success as a musician. Meanwhile, NAB reports that another group of lawmakers have signed on to the bipartisan Local Radio Freedom Act being championed in the House of Representatives by Gene Green (D-TX) and Mike Conaway (R-TX). The bill would head off attempts to impose performance royalties on broadcasters in recognition of the promotional value of free airplay of recorded music. The newcomers, who bring the total number of backers to 148, include Charles Rangel (D-NY), Barbara Cubin (R-WY), Ginny Brown-Waite (R-FL), John Linder (R-GA), Spencer Bachus (R-AL), Jon C. Porter (R-NV), Greg Walden (R-OR), Rodney Alexander (R-LA), Zach Wamp (R-TN), Thelma D. Drake (R-VA), Henry Cuellar (D-TX), Roscoe G. Bartlett (R-MD), Bill Pascrell, Jr. (D-NJ), Marilyn N. Musgrave (R-CO), Silvestre Reyes (D-TX), Gary G. Miller (R-CA), Tim Holden (D-PA), Frank D. Lucas (R-OK), Jim Gerlach (R-PA), Jim Matheson (D-UT), Thaddeus G. McCotter (R-MI) and Devin Nunes (R-CA).
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Immigration to drive population trends
By the year 2050, Hispanics will account for 29% of the US population, and just about one out of five Americans will be an immigrant or the child of an immigrant, according to new projections put out by the Pew Research Center. According to the report, which covers trends from 2005 to 2050, total population will soar from 296M to 438M during that span, with 82% of the increase coming from the immigrant category. Hispanics will largely fuel that increase, arriving at the 29% figure noted from their 2005 standing at 14%. During this period the total elderly population will increase vastly as baby boomers enter into traditional retirement years, and the non-Hispanic white population will dip below the halfway point for the first time, to 47%. Pew said these would be the results if current trends continue to prevail. If the trends change, the results will change. Admitting to the uncertainties in making such predictions, Pew said, "...projections offer a starting point for understanding and analyzing the parameters of future demographic change."
RBR observation: This obviously bodes well for Hispanic media. It is also a call for mainstream radio and television to make sure and hang onto that late-60s/early 70s music, along with ample reruns of Star Trek, Gilligan's Island and whatever else is in the baby boomer wheelhouse -- we happen to have boomers on staff, and it looks like we're going to be around for awhile.
 NAB's purple
shading toward blue
The National Association of Broadcasters traditionally hands out cash to members of both political parties -- a key factor isn't necessarily which side of the aisle you're as what committee meetings you attend. So far this cycle, Democrats have been the recipients of NAB's 243K in donations, according to data filed 1/7/08 and made available at website Opensecrets.org. On the House side, 116K has gone to Democratic incumbents, compared to 87.3K for Republicans. Prominent on the list are Energy and Commerce Committee chair John Dingell (D-MI) and his Telecommunications and the Internet Subcommittee colleague Ed Markey (D-MA). Markey's counterpart Fred Upton (R-MI), the Subcommittee Ranking Member, is on the list, but MIA is Dingell's counterpart, E&C Ranking Member Joe Barton (R-TX). The NAB also fed cash to most prominent broadcaster in Congress until just last year when he sold off a small radio group -- we refer to Greg Walden (R-OR).
On the Senate side, NAB is spending on Democrats on a two-to-one basis, handing 26.7K to Democratic candidates compared to 13K for Republicans. Although the list, which includes 14 incumbents and one candidate looking to move from the House to the Senate -- Heather Wilson (R-NM) -- is prominently populated with Commerce Committee members, although since only about a third of the Senate membership is up for re-election, the list is far from comprehensive. For example, Commerce Chair Daniel Inouye (D-HI) is absent, but he doesn't have to run this year. Ranking Member Ted Stevens (R-AK), on the other hand, is up for re-election, and did receive a donation from the NAB.
RBR observation: Communications issues in general and broadcasting issues in particular have a way of crossing traditional party line voting patterns. Further, on particular issues where positions hew more closely to a party line, sometimes it is the Republican opinion that is more favorable to the industry, and sometimes it's the Democratic opinion. The key for the NAB is to make sure it has access to all concerned parties on Capitol Hill, since sooner or later almost any one of them may hold a key vote on one issue or another.
Triton Media Group realigns;
launches Triton Digital Media
Oaktree Capital Management-powered Triton Media Group, the leading independent radio network operator and supplier of digital products and services to local media brands, announced at RAB the re-alignment of its business units into two distinct operating entities: Triton Digital Media (including its MJI Interactive, Stream the World, Music To Go and Mass to One/M2O divisions) and Triton Radio Networks (encompassing Dial-Global and Excelsior Radio Networks).
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RBR observation: We here at RBR are pleased to report this move in particular, it deals with two key words - Digital Media - which was they key focus of yesterday's Carnegie's observation and RBR's first webcast. The digital business environment is here so grab hold and get on board. For a review on RBR's position on digital view Carnegie's Webcast at RBR Media Center.
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Ad Business Report TM
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Media Monitors to link with Arbitron PPM Ratings
They've signed an agreement that allows Media Monitors to link PPM minute-level audience data with Media Monitors airplay info in a new service called "Audience Response." It analyzes PPM data and Media Monitors airplay data to help programmers hear what was playing on the air when they observe changes in the audience. Audience Response complements GSelector, RCS' music scheduling program, to complete the loop from listener to music rotation in a faster way. Philippe Generali, Media Monitors CEO, says the service will take the number of listeners listening every minute in every PPM market and superimpose their airplay information. So programmers will be able to hear what's playing on the air when they observe changes in the audience, song by song. "This is a groundbreaking way to see what PDs have in the past have just guessed at what's happening. This is great to gauge the behavior of the audience when stations do contesting, features, morning bits, special programming, etc." The service doesn't currently track audience behavior during advertising. Monitoring in current PPM markets Houston and Philly will be done on encoded stations rating a 2.0 AQH share and above. If the station is part of a cluster they're monitoring, but below a 2.0 share, that station will be included. Generali says 85-90% of stations in each market, on average, will be monitored.
Regional Reps adds BAS Broadcasting
Regional Reps has signed an exclusive representation agreement with BAS Broadcasting to handle national sales for its newly acquired stations in Sandusky, Tiffin, Fremont, Bellevue and Mount Vernon, OH. Regional Reps will handle all regional and national sales for WCPZ-FM, WLEC-AM and WMJK-FM in Sandusky and WTTF-AM in Tiffin. The partnership also extends previous representation WFRO-FM Fremont, WOHF-FM Bellevue and WQIO-FM and WMVO-AM in Mount Vernon (all in Ohio). With sales offices in Cleveland, Cincinnati, Atlanta, Chicago and Dallas, Regional Reps Corp. has enjoyed more than 52 years of Radio sales representation.
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| Media Markets & Money TM |
Close encounter in Somerset
WTLO-AM in Somerset KY is now under the care and feeding of Terry Forcht's F.T.G. Broadcasting, according to broker Ed Henson of Henson Media Inc. Forcht's Key Broadcasting/Forcht Group subsidiary picked up the station for 300K. Henson says the AM will be part of a traditional AM-FM combo later this summer when Forcht anticipates construction of WYJY-FM, scheduled to be built in nearby Science Hill KY.
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| Media Business Report TM |
 Harbinger names
its NYT Co. nominees
The Harbinger hedge fund and its partner in putting pressure on the New York Times Company management, Firebrand Partners, have named the four people they've nominated to the company board to challenge sitting directors. They've also nearly doubled their stock holding in the company. That tally is now 9.96% of the company's public stock, up from just under 5% when the two teamed up to battle for seats on the board of directors. Harbinger and Firebrand have insisted that their actions should not be called "hostile" and they disclosed in an SEC filing that they met with New York Times Co. Chairman Arthur Sulzberger and CEO Janet Robinson on Friday. No word on how those talks went. Harbinger and Firebrand have nominated Scott Galloway, a Clinical Associate Professor at the New York University Stern School of Business; James A. Kohlberg, a co-founder of the Kohlberg & Company private equity firm; Allen L. Morgan, a General Partner/Managing Director of Mayfield Fund, a venture capital fund; and Gregory Shove, co-founder and CEO of Helium Group LLC, an Internet media company. Harbinger/Firebrand said in their SEC filing that they will seek reimbursement from the New York Times Company for the costs associated with their proxy battle to put their candidates on the board in place of those backed by management. Such reimbursements typically occur only when such a proxy fight is successful. The Harbinger/Firebrand candidates are seeking the board seats elected by the holders of the New York Times Company's publicly traded stock. The majority of the board seats are elected by the super-voting shares held by the Ochs-Sulzberger Family, which are not publicly traded.
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| Washington Business Report TM |
DTV Speakers Bureau fans out
A 50-state educational campaign featuring almost 1,000 knowledgeable broadcasters will be running this week straight through 2/17/08, the t-minus one year and counting date for the end of analog television. The goal is to make local citizens more knowledgeable about the transition. The speakers represent about 600 television stations, and will be meeting the public at planned gatherings throughout the week. To date, the DTV Speakers Bureau has put 1.2K such meetings on the schedule on the way to a target of 8K sessions. NAB President/CEO David K. Rehr said, "We believe that face-to-face contact is one of the most effective ways to communicate details about the DTV transition to viewers on both a local and national level." Just about any type of community gathering place, from a nursing home to a public school to a service club, is being targeted for a DTV session. NAB is encouraging officials of such organizations to schedule an event. Information is available at DTVAnswers.com.
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| Entertainment Business Report TM |
 Entercom Boston announces
Play by Play for 2008 Red Sox season
Veteran play-by-play man Joe Castiglione is set to begin his 26th season of calling Red Sox games, and will be joined for a second year by Dave O'Brien. O'Brien, who is also a play-by- play announcer for ESPN's Baseball Coverage, will work more Red Sox games this season calling a minimum of 135 games. WEEI-AM Boston mid-day host Dale Arnold will fill in for a majority of the games missed by O'Brien, while Jon Rish, Entercom's Studio Host for the broadcast, will take over on the others. The Red Sox Radio Network carries 15 pre-season and every regular season and post-season game. The Red Sox and Entercom Communications announced a new 10-year agreement for 2007-2016 in May 2006. WRKO returned as the network's flagship. WRKO airs all regular season games except Wednesday nights and weekday afternoons, which can be heard on sister station WEEI. A network of over 60 stations broadcast Boston's games throughout the New England area.
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| Internet Business Report TM |
New technology thwarts streaming "hijackers"
StreamAudio, a provider for streaming radio stations' signals on the Internet, announced it has released a new software feature that detects when a listener's request for a stream is coming from an unauthorized source; that is, from a "hijacking" site. There are lots of Internet sites worldwide that link to radio station streams and intercept the listener's request to "Listen Live" to an Internet broadcast. Once the listener connects, the audio and advertising content is streamed to the listener from a player of the hijacker's choice, not the radio station's official player. This way, the hijacker gets the advertising impressions and corresponding revenues, but the radio station still gets the streaming bill and pays for all royalties (i.e., they play, you pay).
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| Ratings & Research |
 Radio TSL rose in Super Bowl cities
Arbitron released findings from a custom sports study that profiles how adults aged 18 and older in Boston and New York listened to and watched Super Bowl XLII on radio and television. Two-thirds of Bostonians and 51% of New Yorkers followed the media coverage of the Super Bowl in the week leading up to the game. Sports/talk radio was a big beneficiary of the run up to the game. Half of the adults in Boston and 29% of New Yorkers said that they listened to sports/talk radio in the week before the game. Time spent listening was up the week prior with a third of New York adults and more than half (56%) of Boston adults listening "a lot more." People are less likely to switch radio stations while listening to the game: 52% of New Yorkers and Bostonians were less likely to switch stations while listening to the Super Bowl than they are when they are listening to something else Local radio time spent listening increased for 56% of Bostonians and one third of New Yorkers leading up to the NFL classic Most of Super Bowl radio listening was done out of home: 49% of Bostonians and 45% of New Yorkers who listened to the radio on the day of the Super Bowl, listened in a car or truck. 9% of Boston adults and 8% of New York adults listened to pre-game, game or post-game coverage on the radio.
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| Transactions |
350K WPYR-AM Baton Rouge LA from 6 Johnson Road Licenses Inc., related to Pamal Broadcasting Ltd. (James J. Morrell) to Michael B. Glinter. 50K escrow, balance in cash at closing [File date 1/10/08.]
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| Stock Talk |
Up day, but not for broadcast stocks
Rising hopes for retailers and the housing industry gave stock prices a boost on Monday, but only a modest one. The Dow Industrials rose 58 points, or 0.5%, to 12,240.
Radio stocks were left behind. The RBR Radio Index was off 0.309, or 0.4%, to 79.908. SBS was the worst performer, down 4.7%. Clear Channel rose 3.2% as some traders placed bets that its going private deal would get to closing. Emmis had an up day, rising 4.9%.
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| Radio Stocks |
Here's how stocks fared on Monday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron*
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ARB
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39.56
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+0.02
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Google
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GOOG
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521.16
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+4.47
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Beasley*
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BBGI
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5.50
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-0.23
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Hearst-Argyle
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HTV
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21.70
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-0.32
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| CBS CI. B |
CBS |
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24.52
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-0.06
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Journal Comm.
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JRN
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8.08
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-0.19
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| CBS CI. A |
CBSa |
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24.48
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-0.08
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Lincoln Natl.
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LNC
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49.94
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-1.60
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| Citadel* |
CDL |
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1.38 |
unch |
Radio One, Cl. A
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ROIA
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1.58
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+0.01
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Clear Channel*
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CCU
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29.71
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+0.92
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Radio One, Cl. D*
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ROIAK
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1.59
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unch
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Cox Radio*
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CXR
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11.45
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+0.19
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Regent*
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RGCI
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1.15
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-0.02
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Cumulus*
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CMLS
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6.10
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+0.03
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Saga Commun.*
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SGA
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6.00
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+0.03
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Debut Bcg.
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DBTB
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|
1.02
|
unch
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Salem Comm.*
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SALM
|
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3.91
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+0.05
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Disney
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DIS
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31.93
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-0.19
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Sirius Sat. Radio
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SIRI
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|
3.14
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-0.05
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Emmis*
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EMMS
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2.76
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+0.13
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Spanish Bcg.*
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SBSA
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1.63
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-0.08
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Entercom*
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ETM
|
|
11.34
|
-0.35
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Westwood One*
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WON
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1.80
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-0.07
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Entravision
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EVC
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6.73
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-0.06
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XM Sat. Radio
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XMSR
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12.72
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-0.40
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Fisher
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FSCI
|
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31.21
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-0.20
|
-
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-
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-
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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]
A reader wrote in with comments about going through a license renewal challenge.
With regard to your story concerning the license renewal of WGCH Radio (2/8/08 RBR #27), which is owned by our company, Businesstalkradio.net, Inc., we feel the FCC acted in a judicious and responsible manner. The objections to our license renewal were filed by a handful of disgruntled listeners who were upset over the termination of an employee of ours who they were friendly with. Since purchasing WGCH in June, 2003, we have significantly increased the amount of local news, community information, traffic and weather reports. Our listenership and advertising revenue has increased dramatically as well which would reflect the positive nature of our programming on a local level. Additional live broadcasts, regardless of weekday or weekend, day or night, were added to serve the community during snow or ice storms. We remain committed to serving the communities in our listening area.
Jeff Weber
Executive Vice-President
Business TalkRadio Network
Lifestyle TalkRadio Network
Greenwich CT
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Below the Fold
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Media, Markets and Monday
Kentucky closing time
WTLO-AM in Somerset KY is now under the care and feeding of a new owner.
Washington Business Report
Evangelists for DTV
A 50-state educational campaign featuring almost 1,000 knowledgeable broadcasters is proclaiming the coming of the DTV transition.
Ad Business Report
Another use for PPM
Arbitron cuts a deal with Media Monitors.
Internet Business Report
Thwarting stream thieves
New software to keep you from paying for them to play.
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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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Seeking new biz
Spanish Broadcasting System and SBS-Interep announced the appointment of Asha Olivia to New Business Development Director. She will be tasked with targeting advertisers directly who have yet to tap into the burgeoning potential represented by Hispanic consumers. She'll dual-report to Joe Mackay, VP of National Sales for SBS and Barry Fischer, GM for SBS-Interep, the rep division within McGavren Guild Radio that is dedicated to Hispanic sales. Most recently, Olivia served as VP/Latino Business Development, Eastern Region for CBS Outdoor Latino.
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More News Headlines
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Vanessa Williams to serenade broadcasters
February 25th's Broadcasters Foundation of America Golden Mike Awards gala is drawing some top talent. The latest word is that "Ugly Betty" co-star and hit recording artist Vanessa Williams will perform live. The foundation had previously announced that Tom Bergeron, another ABC star, would host the event. Yes, indeed, it is a top ABC exec who is being honored this year - Anne Sweeney, Co-chair of Disney Media Networks and President of the Disney-ABC Television Group.
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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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Battle of the Talk Conventions:
Lots of rubber chicken dinners
First, I don't have a dog in this fight, but I have been asked which one should be considered if anyone is budgeting for it. If you haven't noticed there is a three-way match in the making and I am not talking WWE. It is between three contenders vying to be king of the Talk Radio convention, seminar, whatever. Contenders are...I ask what are they vying for? Who has the best rubber chicken dinner? Who can give out the best award? Please, not another gathering of Talkers giving each other awards and otherwise living up to that Talker moniker, but with all the words ultimately boiling down to just three letters: SOS. Real issue - We face a recession - the real key issue that Talk Radio and Radio overall is facing is getting recognition and ad dollars in the real business media world.
Carnegie note: Don't get the point? Read my full observation at RBR.com and view the Carnegie webcast at the Media Center
02/11/08 RBR #28
Backfire: St.L. jock shoots off mouth
J.C. Corcoran of Emmis' Hits KIHT-FM in St. Louis was not happy when a power outage cost himself and his neighbors a chance to watch a portion of the Super Bowl 2/3/08. But his comments about power company AmerenUE ricocheted right back.
02/11/08 RBR #28
Headcount falling at CBS Radio
CBS Radio is the latest major group to make staff cuts to get costs in line for what promises to be another tough year for the radio business, and likely the US economy as well. RBR received word, Thursday, of restructuring in several markets as CBS Radio CEO Dan Mason continued the streamlining process that he began a few months ago. The company confirmed that changes were made in multiple markets, but declined to say just how many positions were eliminated or what the cost savings would be.
Publisher note: To CBS, Emmis or any employee that has lost their position and wishes to continue to receive RBR, send your name, email address and phone to Jim Carnegie at [email protected] we will keep you reading as long as you wish.
02/08/08 RBR #27
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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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