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Volume 24, Issue 30, Jim Carnegie, Editor & Publisher
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Tuesday Morning February 13th, 2007
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Radio News ®
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 Tribune choice:
None of the above
Hardly surprising. Tribune Company is likely to reject all bids and embark on a "self-help" restructuring plan, according to the Wall Street Journal. One possible outcome is that the TV group will be split off into a separate company. As previously reported, the special committee of the board of directors at Tribune was not swept away by any of the bids for the company, none of which constituted a straight out purchase of the company and none of which offered current shareholders a sure premium valuation. But the WSJ story said the board may borrow an idea from one bidding group, that of billionaires Eli Broad and Ron Burkle, to take on more debt for a one time cash dividend payment to shareholders. Some of the debt from the special dividend would end up on the balance sheet of the spun-off television company. Shareholders would then end up with stock in two public companies. Spinning off the TV group would be tax-free, avoiding the big tax bite that would have come from selling the stations to The Carlyle Group, which is believed to have offered about 4.2 billion for them. The so-called self-help plan would have Tribune management chart its own course to improve profitability, rather than having the Broad/Burkle duo or fellow billionaire Sam Zell come in as new investors to call the shots. It would also appear to keep the Chandler family as the largest shareholder of each company, rather than accepting their proposal to take most of Tribune private, while spinning the TV group off to all current shareholders except the Chandlers. Meanwhile, Tribune yesterday announced one minor divestiture - a deal to sell its Spanish daily in NYC, Hoy, to ImpreMedia LLC, which already publishes El Diario/La Prensa in New York. Terms were not disclosed. Tribune will continue to publish Hoy in its two other largest markets, but they will now be more closely aligned with the Los Angeles Times and Chicago Tribune.
RBR observation: Where would WGN-AM Chicago, the one and only Tribune radio station, end up in this latest scenario? We doubt that anyone has yet given that much thought. A case could be made for putting it with WGN-TV Chicago in the TV company. But you could also argue that it belongs with the Chicago Cubs where it is right now, in the Radio/Entertainment division, which would keep it attached to the larger company, anchored by the newspaper properties and the Cubs.
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Beasley dipping toe in online spot sales
Amid all the hubbub of the founders of dMarc leaving Google, which is still trying to reach critical mass for its venture to sell radio inventory online, and with several other companies also trying to attract radio companies to their systems, Beasley Broadcast Group COO Bruce Beasley was asked by one analyst yesterday what he thinks of the whole idea. Beasley disclosed that his company is preparing to do a test with one company, which he was careful not to name, in one of Beasley's mid-size markets. "We want to see how it works first, before we make decisions on where we're going to go with that," Beasley said. He was then asked how he would evaluate the results. "I want to see how rates evolve. I want to see particular clients. And I want to see how it affects our inventory - in a positive way, by driving demand," he explained. But Beasley doesn't see the new online services replacing the old national sales model using rep companies. He praised the selection of David Kennedy as the new CEO of Interep, saying he expects Kennedy to lead the firm to a higher level.
 CBS Radio in the
middle of a R.I.O.T.
CBS Corp. has created a new cross-platform unit that bridges its radio, Internet, outdoor and television sales ops. CBS RIOT will combine the assets of CBS Radio's 147 stations, CBS Interactive's local websites, CBS Outdoor's billboards and display faces, and the 39 O&O TV to give advertisers big reach on a local scale. CBS RIOT will be run in unison by Richard Lobel, EVP/Altitude Group, CBS Radio; Jon Camera, SVP/Business Development, CBS Television Stations; and Brigg Hyland, SVP/Business Development, CBS Outdoor. The first multi-platform sales deal to come out of RIOT is a multi-million dollar promotion for Dodge Ram targeting males. The campaign, scheduled to begin 2/14, will create customized spots on local TV and radio stations in more than 100 markets designed to lead male viewers and listeners to a co-branded website on CBS SportsLine.com, where users can partake in a new interactive game tied to Dodge Ram's "Rock 'Em, Sock 'Em" theme. For the TV element, customized vignettes featuring Janelle Pierzina from CBS's popular "Big Brother" series, as well as Boxing Legend Smokin' Joe Frazier and CBS Sports announcer Gus Johnson will air on the company's 17 O&O CBS stations across the country, as well as 73 CBS affiliates during time periods with the most male viewers, specifically late night TV. CBS Radio stations around the country will incorporate the "Rock 'Em, Sock 'Em" interactive element into their programming, with hosts actively encouraging listeners to play the game on CBS SportsLine.com, and regular interviews with winners during morning and evening drive time. The RIOT sales deal also includes promotional time on the CBS during its late night programming. Over the course of one month, it's estimated that the combined CBS media will create 400 million new impressions on CBS SportsLine.com. Throughout the promotion, CBS and Dodge will give away close to 10,000 prizes, including Dodge Rams, VIP boxing trips to Vegas and Atlantic City, Apple iPods and other merchandise. Winners will be selected from those participants who have a correct code from nearly 13 million Instant Win tickets that are distributed within major sports magazines and at key Dodge locations, or by winning each round of the interactive game.
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 Specter of television
haunts the Supremes
Senate Judiciary Committee ranking member Arlen Specter (R-PA) is making another attempt to get television cameras into the Supreme Court. He noted that some of the current members of the nation's highest bench seem more than willing to take center stage when the film (or digital stream) is running. This is not the first time Specter has introduced such legislation, but according to the Washington Post he's increasingly hopeful he'll get it through the Senate, noting this time around the ever-increasing media sightings of the current justice lineup. Chief Justice John Roberts in particular seems open to the concept. While undergoing the Senate confirmation process in the fall of 2005, he noted that his Capitol guide, former senator and actor Fred Thompson had assured him that the cameras do not bite. And according to WAPO, the justice's opinion on the matter is not tied to ideology, with conservative Antonin Scalia and liberal Ruth Bader Ginsburg both open to the idea. The leading opponent still appears to be David Souter, who welcomed cameras into the chamber as long as it's over his dead body.
RBR observation: The citizens of our democracy have a right and a need to know what the Supreme Court is doing. The press is expected to cover the activities of the Supreme Court, and it should not matter whether they are taking notes with pen and paper, or with a tape recorder, or with a camera. Open the chamber.
Bush taps DRTV veteran for international post
Lenny Sands, CEO/founding partner of Alchemy Worldwide, has been named to the President's Export Council but George W. Bush. The Council promotes US goods and services abroad, as well as creating stronger international trade relations in general. Sands began in the position last month, with an open-ended term of service other than "the will of the president." Sands said, "I look forward to using my extnesive global business experience and vast knowledge of the Southeast Asian marketplace to tackle trade-related issues that impact American exporters." Alchemy Worldwide takes products forward from the idea stage and, utilizing infomercials on a global scale, tries to turn them into viable brands within 12-18 months. It claims at least one major homerun with the Magic Bullet blender, which is said to have amassed 500M in revenue in three years.
RBR observation: Will American business soon be marketed like this: "We'd have to be crazy to let US trade relations go at this low, low price, but believe it or not, there's more. We're willing to throw in trade relations with three developing US allies at no extra charge. But act now - this offer is only good while supplies last."
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| Wall Street Media Business Report TM |
Strong quarter for Beasley
A couple of new stations, KDWN-AM Las Vegas and WJBR-FM Wilmington, DE, helped Beasley to a 13.9% revenue jump in Q4 to 34.8 million, but that would still have been 6.7% on a same station basis. CFO Caroline Beasley noted that the company took in 700K in political revenues, with 42% of that coming from the two newbies. Station operating income rose 17.4% for the quarter to 11.3 million. Beasley is expecting same station revenues to be up 2% in Q1. COO Bruce Beasley noted that the Miami market is improving and the cluster in Philadelphia is outperforming its market. Outside of those two very large markets, Las Vegas and Augusta, GA are both enjoying double digit gains this quarter.
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Ad Business Report TM
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CC Radio debuts adlet campaign for "Lovely"
A new radio campaign airing now for Coty's Lovely by Sarah Jessica Parker makes use of :05 adlets, listen below, to count down to Valentine's Day. Integration of both CC Radio's on-air and online assets are being used. Th e national promotion (150 markets) builds brand interaction for a Coty fragrance among women aged 18-49. The radio spots entice target demo to enter the contest to win a 2,500-dollar trip for two to New York to shop with Sarah Jessica Parker and her stylist. On air formats include AC, CHR and Country. The :05 adlets air once per hour (from 6:00 a.m. - 7:00 p.m. yesterday and today) and count down to Valentine's Day. The adlets are used in combo with :15 promotional mentions of the contest with instructions for entering online at www.lovelysweepstakes.com, and :30 branding spots. The full campaign airs February 9th through February 13th. Clear Channel Radio's Creative Services Group and OMD handled.
|  Listen Here |
Radio generates millions in donations
for Generous Nation Campaign
Radio stations throughout the country have donated millions of dollars in advertising time for the Ad Council's Generous Nation campaign, which is designed to encourage listeners to help those in need. Since the beginning of the radio industry roadblock, which began the second week of December and ran through the end of January, web traffic to the Generous Nation site increased over 60 percent. The Ad Council's Generous Nation campaign delivered a simple message: "Don't almost give -- give." The Radio PSAs encourage listeners to visit the campaign's website, www.DontAlmostGive.org, where they can conduct a search by zip code to find volunteer opportunities in their communities and to donate to more than one million charities at the local or national levels. Generous Nation is designed to bolster the efforts of the nonprofit community by galvanizing the many Americans who are inspired to give, to give more frequently and to help those who are most in need.
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| Media Markets & Money TM |
A floating RAFFT gathers no Moss?
There's a proverb somewhere in this deal, or maybe not. Anyway, the sale of KTON-AM Belton TX from Gary Moss's M&M Broadcasters to Jerome Friemel's RAFTT Corporation is officially in the books. The station serves the Killeen-Temple Arbitron market. According to broker Sandi Bergman of MyMediaBroker.com, the pricetag was 900K. If the station rolls again to a new buyer, Moss stands to gather an additional 3% of the total gross value of such a resale, provided Friemel retains less than 51% interest in any future ownership lineup.
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| Washington Media Business Report TM |
The fines keep on coming
Here are some more cautionary tales from Washington. In one case, Boone Biblical Ministries Inc., licensee of KFFF AM & FM Boone IA, neglected to keep quarterly issues/programming records in its public file for the entire eight-year term of its license period, resulting in a double file fine of 20K, 10M for each station. The FCC called the violation "extensive," but noted that the licensee otherwise "served the public interest, convenience and necessity," and had no other serious violations, and therefore granted renewal. Inland Empire Broadcasting Corporation, licensee of KOLA-FM San Bernardino CA and KCAL-FM Redlands CA, was hit with a 5K EEO fine. The FCC said that for four out of 10 job openings between 8/1/03 and 7/31/05, it relied on referrals from "advertising clients, salespeople and other people," and did not follow established recruitment procedures. 4.5K was for the failure to recruit, and 500 dollars for the evidence this failure provided of the company's lack of EEO self-assessment.
RBR observation: Heads up! Another platoon of radio and television stations just was named for random EEO auditing for the month of February 2007.
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| Entertainment Media Business Report TM |
 Mark Levin Show celebrates
first year with 100 affiliates
Mark Levin has a lot to celebrate on his first anniversary in syndication. As the host of The Mark Levin Show, Levin has experienced incredible growth in just one year and is generally recognized by the Talk industry as one of its brightest rising stars. The program has just hit 100 affiliates and is in 19 of the top 25 Metros. "Congratulations to Mark on an outstanding first year in syndication, said Jim Robinson, President ABC Radio Networks. Regardless of format, on either side of the dial, he's had one of the biggest years in radio. Mark signifies everything that is right about the power of radio. He resonates with listeners and advertisers. I wish him continued success." In the Fall 2006 Arbitron ratings, Levin scored big gains in virtually every market including New York City, Detroit, Washington, Chicago, Los Angeles, Tampa, Indianapolis, and his first network affiliate, WBAP in Dallas.
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| Ratings & Research |
CBS Radio gets its own PPM trainer
Arbitron announced that CBS Radio is the first broadcaster to be assigned a dedicated in-house Arbitron Portable People Meter (PPM) trainer to educate advertising executives on use of PPM data for their sales efforts. Jon Miller, who remains on the Arbitron payroll, has been promoted to the newly created position of CBS Radio PPM Account Manager and, along with a five-person PPM Implementation team, will provide extensive hands-on PPM training to CBS Radio advertising executives. Miller, who will work under the supervision of Scott Herman, EVP, Eastern Region, CBS Radio, will head the two-year training program, which begins this month. Miller and his team will focus on the top 10 CBS Radio markets. Prior to this promotion, Miller served as a regional training service consultant in which he was responsible for training radio customers on Arbitron's RSS software in 15 markets.
Carat USA, Tango Media, Yahoo!
analyze women's consumer behaviors
A ground-breaking research study conducted by Carat USA, Tango Media, and Yahoo! Personals reveals that the "love stage" a woman is in - single, dating, engaged, married, or starting over - greatly affects her consumer behavior, from media consumption to purchasing decisions. The national study yielded several results:
| Read More... |
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| Internet Media Business Report TM |
 MySpace offers way to block copyrighted videos
YouTube take note: MySpace is now offering free software tools to let media companies block the uploading of unauthorized video clips, adding to an earlier program to block unauthorized music. MySpace licensed audio fingerprinting technology developed by California-based Audible Magic, which helps identify the digital audio signature in a video file. Videos whose audio tracks match those in its database will be blocked, according to Reuters. The move comes a week after Viacom ordered the removal of more than 100,000 clips from YouTube and criticized the Google-owned service for dragging its heels to offer reliable ways to block unauthorized clips of top shows.
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| Transactions |
4.2M KZSR-FM & KKYY-FM Sioux City IA (Onawa, Whiting IA) from NRG License Sub LLC, a subsidiary of NRG Media LLC (Norman W. Waitt Jr., Mary Quass) to Powell Broadcasting Company (Thomas J. Spies et al). 1M escrow, balance in cash at closing. Includes non-compete. Superduopoly with KKMA-FM, KSUX-FM, KLEM-AM, KSCJ-AM. LMA 1/1/07. [File date 1/12/07.]
50K WXOL-AM Delaware OH. 100% of The Fifteen Fifty Corporation from Robert G. Casagrande to Patricia Casagrande. Debt assumption. [File date 1/10/07.]
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| Stock Talk |
Street in the dumps over deal rejection
Shareholders of the London Stock Exchange said no to a merger with the Nasdaq stock market, which put US traders in a blue funk on Monday. The Dow Industrials fell 28 points, or 0.2%, to 12,553.
Radio stocks went with the flow - lower. The Radio Index was down 0.280, or 0.2%, to 158.749. Citadel dropped 3.5%, with nothing new to account for the move. Cox Radio was off 2.2%.
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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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46.30
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+0.30
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Journal Comm.
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JRN
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13.47
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+0.08
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Beasley
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BBGI
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9.09
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-0.08
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Lincoln Natl.
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LNC
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68.95
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-0.10
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| CBS CI. B |
CBS |
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31.31
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-0.37
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Radio One, Cl. A
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ROIA
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7.40
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+0.04
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| CBS CI. A |
CBSa |
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31.28
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-0.35
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Radio One, Cl. D
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ROIAK
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7.40
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+0.03
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| Citadel |
CDL |
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10.34 |
-0.38 |
Regent
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RGCI
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2.99
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-0.01
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Clear Channel
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CCU
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36.43
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-0.03
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Saga Commun.
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SGA
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9.26
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-0.05
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Cox Radio
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CXR
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15.36
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-0.34
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Salem Comm.
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SALM
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12.26
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+0.20
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Cumulus
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CMLS
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10.29
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-0.06
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Sirius Sat. Radio
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SIRI
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3.57
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-0.06
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Disney
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DIS
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33.92
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-0.44
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Spanish Bcg.
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SBSA
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4.03
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+0.01
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Emmis
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EMMS
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8.72
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+0.26
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SWMX
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SMWX
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1.25
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unch
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| Entercom |
ETM
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29.55
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-0.32
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Univision
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UVN
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35.89
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+0.07
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Entravision
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EVC
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8.09
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+0.04
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Westwood One
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WON
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6.95
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+0.01
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Fisher
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FSCI
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43.13
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-0.07
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XM Sat. Radio
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XMSR
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13.03
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-0.41
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Hearst-Argyle
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HTV
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26.06
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unch
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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]
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Below the Fold
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Ad Business Report
CC Radio debuts
adlet campaign for "Lovely"...
Media Markets & Money
A floating RAFFT gathers no Moss?
There's a proverb somewhere in this deal the sale of KTON-AM Belton TX...
Washington Media Business Report
The fines keep on coming
More cautionary tales from Washington. Heads up! More fines coming...
Ratings & Research
CBS Radio gets its own PPM trainer
1st broadcaster to be assigned a dedicated in-house (PPM) trainer...
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Stations for Sale
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Central CA Coast FM: $1.5M
Pacific Northwest FM: $750K
Terms Available
MCH Enterprises: 805.543.3466
www.mchentinc.com
 Market your Stations For Sale
in our daily epapers.
Contact
June Barnes
[email protected]
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Radio Media Moves
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Koon to Orlando
 Salem's Atlanta Sales Manager, David Koon, is heading south to become General Manager of Salem Orlando, consisting of WORL-AM, WLTN-AM & WHIM-AM.
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More News Headlines
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NAB renews
satellite recall call
NAB President David Rehr has set a letter to the FCC repeating his request for the agency to order a recall by Sirius and XM of all non-compliant satellite radio receivers which might disrupt FM reception by nearby vehicles. The devices most often interfere with reception on the low end of the FM dial, resulting in many reports of such fare as "The Howard Stern Show" interrupting Religious and public radio programming. Rehr's latest letter noted that Sirius and XM have refused to make voluntary recalls, so he said "it is left to the Commission to take corrective action."
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International Media
Business Report
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Radio up 4.6%
in January
Pretty good, except we're talking Australia. Down Under radio stations pulled in 41.9M for the month and got off to a good start in 2007 after picking up only a 1.4% gain for the full year in 2006. An article in The Australian said that the gains reflected an impressive turnaround in Sydney, which as Australia's largest market accounts for about 40% of total business. It has been operating in the red since April 2006, but this time posted a black number of 4.7%, slightly ahead of the nation as a whole.
RBR observation: Part of the increase was credited to increasing monetization of online and podcast radio station adjuncts, mirroring the steady increase in what the USA's Radio Advertising Bureau terms non-spot revenue. Also, it's interesting that the Australian situation is mirroring the current US trend under which it is the larger markets which seem to be facing the most challenging conditions.
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RBR Radar 2006
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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Radio groups to back TMA/Ipsos test
Clear Channel, Cox, Cumulus, Entercom and Radio One - have agreed to put up millions in cash for a test in Houston of the TMA/Ipsos competitor to Arbitron's PPM. recruiting will begin in late May or June for 2,500 participants. Once data collection is up and running, TMA/Ipsos expects to have the first data released by October 2007 and run the test through January 2008. No ad agencies have committed to any funding. Once the Houston test results are known, TMA/Ipsos will be looking to the radio industry for a nod to go ahead and deploy, or to abandon the project.
RBR observation: It will still come down to money and the need for more money. All good intensions but it seems radio keeps going in one direction as the other side of the media world is heading in another. The guys from Media Audit should be given credit for trying but the real world will be much further advanced by the time the results are released in 2008. Re-read the information above, again: Results in January 2008 and by the time the results are in all media will be in heated battle for as much political money as they can take on their stations as they world revolves around money. 2007 may be the year that is dubbed 'Taking the Wrong Fork in the Road.'
02/12/07 RBR #29
dMarc founders leave Google
Chad and Ryan Steelberg, founders of automated remnant ad inventory monetizer dMarc Broadcasting that Google bought last year, have left the company. Chad was CEO and Ryan was President. The brothers resigned over issues between dMarc and Google, likely created over not getting Google Audio top inventory to sell as quickly as anticipated-the blame game ensued.
RBR observation: Every industry has its culture, relationships, nuances and subtleties. For radio, there is local spot, national spot, network radio and satellite radio. Even within those subsets, there are differences within the businesses and how business is conducted. It's the same with broadcast TV and cable. Here these folks came in from the internet without much radio experience and maybe tried to impose their will and vision a bit too early on the radio owners. Maybe they didn't understand the terrain. For more RBR observation see
02/12/07 RBR #29
Haley delivers first
State of The Industry speech
Jeff Haley, the new Radio Advertising Bureau CEO, delivered his first state of the industry speech in Dallas at RAB2007. He defined radio as sponsored audio content and cited current misperceptions as the only obstacle to the medium's growth. Haley assured attendees that radio would speak with one voice and announced RAB would collaborate with the NAB and the HD Radio Alliance to establish a consistent and positive message about radio.
RBR observation: HD-RAB-NAB alliance nice but again radio groups are putting the emphasis on HD when they should be investing their money in the internet and streaming. Smaller market broadcasters RBR spoke with at the RAB came to learn more about the internet and a few in their words, 'Disappointment.' One key phrase that a broadcaster from Iowa stated that rings true as she quoted Yogi Berra - "When you come to a fork in the road, take it" but why is it Radio always is taking the Wrong Fork?" To prove this point RBR suggests you read Internet Media Business Report, RAEL: Ad recall increases Significantly when Radio and Internet used together, in this issue of RBR.
02/12/07 RBR #29
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* New Listing *
General Sales Manager
Independent Aggressive Radio is Great Radio. Like that ring of Independent Aggressive Radio? Then add in a great city like Tampa and you never leave. GSM post is open for that aggressive radio pro that likes independent thinking. Like getting local direct business and working with and for your clients? Thinking out of the box the way radio must be to succeed. View our check list.
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