Volume 21, Issue 31, Jim Carnegie, Publisher
Monday Morning February 16th, 2004

Radio News ®

Nebraska Republican pushes
Dorgan measure in the House
Rep. Tom Osborne (R-NE) took to the public airwaves Friday night to urge House consideration of the Byron Dorgan (D-ND)/Trent Lott (R-MS) Resolution of Disapproval which passed the Senate last fall and would repudiate the FCC's 6/2/03 ruling on media ownership. RBR observation: As we have seen in the recent indecency flap, Republicans and Democrats have found a rare patch of common ground. The most liberal and the most conservative members of Congress have been link arms in the assault against objectionable broadcast programming. Then there's the little matter of the 3rd Circuit ruling, due later this summer. | Full Story Click Here | RBR Observation |

Republican Reps targeting election ad ban
Rep. Roscoe Bartlett (R-MD) has introduced legislation which would repeal the part of the McCain-Feingold/Shays-Meehan Bipartisan Campaign Reform Act which bars organizations from running political ads for a period before primary or general elections. Like many recent episodes in the media political wars, this one has created some strange bedfellows - - this time it's the NRA and the ACLU. McCain-Feingold prevents corporations, labor organizations and other groups from buying advertisements which constitute "electioneering communications" in the 30 days prior to a primary election and the 60 days before a general election. Bartlett has a dozen fellow Republicans signed on as co-sponsors, including Todd Akin (R-MO), Roy Blunt (R-MO), Phillip Crane (R-IL), Barbara Cubin (R-WY), John Doolittle (R-CA), Jeff Flake (R-AZ), Donald Manzullo (R-IL), Marilyn Musgrave (R-CO), Butch Otter (R-ID), Ron Paul (R-TX), Mike Pence (R-IN) and Sam Johnson (R-TX)

Give me Liberman or give me debt?
Liberman Broadcasting, a Hispanic specialist with broadcast properties in California and Texas, is taking steps toward an initial public offering (IPO) of stock. It plans to use proceeds to pay down debt. The IPO is being managed by Credit Suisse First Boston LLC and Deutsche Bank Securities Inc. The offering of Class A common stock, for now, is available only as a prospectus. Initial documentation has been filed with the Securities and Exchange Administration. Liberman has fifteen radio and four television stations, all in markets with large Hispanic populations, including Los Angeles and San Diego in California, and Dallas and Houston in Texas. It also operates television production facilities in those markets, except for San Diego.


Comcast "wooing" Pixar
to motivate Disney shareholders
In the wake of the Comcast bid to acquire Disney, Comcast CEO Brian Roberts is said to be wooing Pixar Animation Studios CEO Steve Jobs to his side of the brewing battle for control of Disney. Comcast execs, of course, believe they will have an easier time convincing Disney shareholders to accept their buyout proposal if it is likely to come with a renewed animation deal with Pixar. RBR observation: This changes things with Time-Warner. This deal would first of all counter News Corp.'s buy of DirecTV in the distribution game. If Comcast wins it could leverage to its added bargaining power of the Disney / ABC TV family of products. And of course, putting more programming into the hands of a large MSO can only hurt further smaller cable operators and independent programmers. | Full Story Click Here | RBR Observation |

Salem sets rates for 2004 blocks
Religious radio giant Salem Communications, which realizes significant income from renting blocks of time to local religious organizations, has completed its annual rates negotiations with its airtime tenants. On average, it is going to be banking a 5% increase over 2003 rates. RBR observation: Salem is definitely a different type of animal. Salem is the one broadcasting company of national scope with a sizable revenue stream which is not held hostage to conditions in the overall advertising environment. It sticks close to the knitting. Salem has managed to find an expansive approach.
| Full Story Click Here
| RBR Observation |

Dog and pony shows to add to the schedule
We have announcements from a few more public companies which are getting set for their quarterly conference calls to go over recent financial results. Mostly, they are reporting on Q4 2003 and 2003 as a whole, although not all companies have matching calendar and fiscal years. Clear Channel is set to trot out its execs 2/24/04 at 9:00 AM Eastern. Besides television and outdoor properties, CCU operates the largest radio group in history (but you already knew that, right?). Salem Communications, the nation's leading Religious radio broadcaster, will hold its session 2/26/04 at 5:00 PM Eastern. Beasley Broadcast Group, which concentrates strictly on the radio side of the business, will hold forth 3/3/04 at 10:30 AM Eastern.


Publishers Perspective

4A's "Staying In Touch
With The Consumers"
Forecast & insight on ad dollar future
The American Association of Advertising Agencies (4A's) is the national association of the advertising agency business with 1,245 member agency offices it serves in the USA and employ's 65,000 people. These ad agencies executives place more than 80% of all national advertising. People, we are now talking the real world of our MONEY! The buzz word at the convention was 'Accountability' - be it on broadcasters in actually running commercials as purchased, Nielsen - getting the numbers right, and agencies in what they do. The second buzz word to watch is 'ROI'. Is the money spent actually driving purchases by the consumer. Jim Stengel, Global Marketing Officer of Procter & Gamble Company (P&G) presented some successes with new media mixes that used reduced broadcast TV weighting. Consumers are now in charge - "They want, what they want, when they want it."

Most of the chatter was about broadcast TV and the viability of the :30 spot. Is it dead as a way to communicate? Don't think so - yet. There are several things converging all at once. First off consumer consumption of media is changing and the definition of media too. Who would ever think a rolling Coke truck is now considered "outdoor advertising" - and the McDonald's bag you get when you get your drive through meal is now considered "print".
RBR observation: There is good news out and about. The uncertainty in this entire means that those "big ideas" have currency in this environment. The challenge is to not give away those ideas but leverage them but help all reach their goals. AWOL at the 4A's were the TV chiefs of many if not most of the groups plus a few others from key trade associations. TV best watch out for the '04 up front season. (Note: In this report connect with Stengel's entire remarks and the 4A's On-Demand TV Metrics Guidelines.) | Full Story Click Here | RBR Observation |


Conference Calls, Q4 2003

Entravision reports ups and downs
Entravision increased net revenue in both Q4 2003 and for the year as a whole, rising 7% over 2002 Q4 and 9% of 2002 in its entirety. However, Q4 net income was in the red, at minus $1.266M. Still, that was better than Q4 2002, when net income was $1.915M in the red. For the year, net income as up $2.267M. The net revenue total for the quarter was $61.118M, and it came in for the year at $237.956M. Broadcast cash flow was up 5% for the quarter, to $20.78M, and up 12% for the year, to $80.904M. "In 2003, we recorded strong revenue growth that significantly outperformed the broadcasting industry as a whole," said Entravision Chairman/CEO Walter Ulloa. "The exceptional performance of our television and radio stations, which represent 80% of our total revenues, highlights our leadership position in the nation's most densely populated Hispanic markets."


Adbiz ©

AAAAs: Recommended guidelines
for on-demand advertising

From the AAAAs conference last week in Orlando: The AAAAs Advanced Television Committee released recommended Guidelines for On-Demand Television Metrics.
RBR observation: Kudos to the 4As. Technology is moving so quickly that advertisers and agencies are struggling to put terminologies and systems in place to quantify new media and placement criteria. All estimates say VOD is and will continue to grow quickly. The industry needs to get the best handle on it to make the most of ROI.
| Full Story Click Here
| RBR Observation |

P&G'S Jim Stengel keynotes 4As, calls for more cooperation between agencies and advertisers
Nothing like a dramatic entrance to underscore an issue: When Renetta McCann, CEO Starcom North America and Chair of the AAAAs Media Policy Committee announced that the Conference's keynote speaker-Jim Stengel, global marketing officer at Procter & Gamble-would be televised rather than live because of travel delays, the audience was none too happy. Stengel's image showed up on what appeared to be a TiVo screen, but his speech was interrupted due to technical difficulties. Soon, however, Stengel surprised the audience by taking the stage. RBR observation: He's a genius, willing to help.
| Full Story Click Here
| RBR Observation |

Matching active voters to the media
The Media Audit has produced a report, based on analysis of the responses of over 120K adults, which compares active voters and heavy media use. Although there are significant differences based on demo and party affiliation, radio emerged as a clear winner over newspaper and TV, prompting Media Audit's Phillip Beswick to recommend the medium to campaign ad buyers. | Full Story Click Here |

Republicans attack Kerry in first campaign offensives
Republicans attacked Senator John Kerry of Massachusetts on an array of fronts last week. On Thursday night, Bush's campaign posted on its website an ad-style video juxtaposing Kerry's promises to stanch the influence of lobbyists in Washington with news articles about large numbers of donations to Mr. Kerry from lobbyists. The video gave a hint of the television advertising war to come between the two men.
| Full Story Click Here
|


Media, Markets & Money tm

Close encounters in TX, ND
Jody McCoy, one of the brokers toiling under the Media Services Group banner, tells RBR he's brought a pair of deals to completion, one in the commercial sector, and one moving from there to the noncom world. Clear Channel is the buyer in one of the deals. It's solidified its Beaumont-Port Arthur TX superduopoly cluster with the acquisition of KCOL-FM for $4.5M. The seller was Voice in the Wilderness Broadcasting. Noncom Contemporary Christian specialist Educational Media Foundation is the other buyer. It's taking KDJZ-FM into the non-profit realm, bringing its K-Love network to the Fargo ND market. Seller Tom Ingstad of North Dakota Broadcasting will bank $750KK in that one.

A penny saved...
Multimedia juggernaut Tribune Company is sharing the wealth with its shareholders. But don't conference call your stock broker just yet - - the increase is one cent per share, from $0.11 to $0.12. To get in on this bonanza and get your own copper medallion featuring a representation of the great Abraham Lincoln, you must be a shareholder of record at close of business on 2/26/04. The share will be paid a couple of weeks after that, on 3/11/04.

Sirius sells $250M convertible notes
Sirius on Friday said it privately sold $250M of five-year convertible notes, one day after increasing its forecasts for 2004 subscriber growth and revenue, and announcing its sales and distribution deals with Radio Shack and Dish Network. The notes carry a 2.5% coupon and are convertible into Sirius stock at $4.41. Sirius said it plans to use proceeds for general corporate purposes, and may sell an additional $50M of the notes to meet demand. Shares in both Sirius and XM slid Friday, though, with Sirius dropping 15 cents to $2.96 and XM sliding 70 cents to $21.69.


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Washington Beat

Be Still my bleating heartie?
"Access denied" was the theme of the day as the FCC dealt recently with a trio of complaints regarding local cable access. Two of them were from would-be cablecasters who objected to a requirement that they procure "general comprehensive and errors and omissions liability insurance." | Full Story Click Here |


Programming

Radio America adds
"News You Can Use" with Jane Silk
Radio America announced the addition of "News You Can Use with Jane Silk" to its daily talk lineup Feb. 16, 1:00-2:00 PM EST. The new program will air M-F, covering the daily news that affects consumers most, including an aggressive "Washington Watch" and weekly features on technology, health, automobiles, entertainment and investing. This one-hour interview and report driven show will deliver topics that affect all of us, ranging from consumer fraud and identity theft to the latest info on new technology and new film releases.

Rick Dees hyping syndicated show
Rick Dees was chatting with WKSC-FM Chicago on-air personalities recently, as part of a bit of a tour to reiterate that he's still syndicated across the country ("Rick Dees Weekly Top 40") after the recent headlines said he left after a long stint at flagship KIIS-FM LA.

Radio America expands "Battle Line with Alan Nathan"
As of today, Radio America's "Battle Line with Alan Nathan" will be increased by one hour making its timeslot 10am-1pm ET. While maintaining its aggressive panel-driven, dialogue and debate format, Battle Line now will be inviting callers to join the panelists in their heated discussions--the first time in its four years on the air.


Monday Morning Shakers & Makers

Deals: 1/12/04-1/16/04
TV dominated the action this during this week. In particular, there was an eight-station merger in which BlueStone Merger put the Lamco television group in the hands of Sandy DiPasquale for over $133M. On top of that, there were two deals for three stations filed by Barrington which came in just a little shy of $50M. Radio was relatively quiet.

1/12/04-1/16/04

Total

Total Deals

11

AMs

6

FMs

6

TVs

11
Value
$202,166,005
For Complete Charts, Click Here |

Radio Deal of the Week
Susquehanna tends its KC Garden
| Full Story Click Here
|
TV Deal of the Week
BlueStone goes on the Lamco
| Full Story Click Here
|

Transactions

$23,500,000 WHOI-TV Peoria IL and KHQA-TV Hannibal MO-Quincy IL (Hannibal MO) from Chelsey Broadcasting Company LLC (Paul S. Goodman) to Barrington Broadcasting Corporation, related to Pilot TV Acquisition Corp. (K. James Yager et al). $1.2M escrow, balance in cash at closing. Includes a Management Services Agreement between Chelsey and Barrington under which Barrington will provide services for the two stations to be acquired, as well as KGWN-TV Cheyenne WY, WYTV-TV Youngstown OH and KDLH-TV Duluth MN. [File date 1/14/04.]

$4,200,000 KNUJ-AM & KNUJ-FM Mankato-New Ulm-Saint Peter MN (New Ulm, Sleepy Eye); KCHK-AM/KRDS-FM New Prague MN; and KYMN-AM Northfield MN from Radio Southern Minnesota LLC and Radio Bismarck Mandan LLC (James D. Ingstad) to Ingstad Brothers Broadcasting LLC (Thomas E. Ingstad, Tor Ingstad, Randy K. Holland). $500K escrow, balance in cash at closing. LMA since 6/1/03. [File date 1/14/04.]


Stock Talk

Slip-sliding away
It was another gloomy day on Wall Street, and radio stocks did their bit to spread the gloom around. Only five out of 30 issues were up (while the all-but-out-of-business Radio Unica was flat), and one other one, while increasing 50%, did so buy going from one to three cents per share. If you want to read something nice in this space, wait until next week.


Radio Stocks

Here's how stocks fared on Friday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

$43.70

-$0.20

Jeff-Pilot

JP

$53.52

-$0.22

Beasley

BBGI

$18.84

+$0.23

Journal Comm.

JRN

$20.10

+$0.20

Citadel CDL $18.87 -$0.13

Radio One, Cl. A

ROIA

$18.57

-$0.42

Clear Channel

CCU

$45.30

-$0.71

Radio One, Cl. D

ROIAK

$18.48

-$0.41

Cox Radio

CXR

$22.38

-$0.37

Radio Unica

UNCA

$0.69

unch

Cumulus

CMLS

$20.95

-$0.52

Regent

RGCI

$7.35

+$0.13

Disney

DIS

$26.99

-$1.01

Saga Commun.

SGA

$18.31

-$0.04

Emmis

EMMS

$26.14

-$0.47

Salem Comm.

SALM

$24.68

-$1.16

Entercom

ETM

$47.22

-$0.43

Sirius Sat. Radio

SIRI

$2.96

-$0.15

Entravision

EVC

$10.49

-$0.27

Spanish Bcg.

SBSA

$11.39

-$0.42

Fisher

FSCI

$50.00

-$2.00

Univision

UVN

$36.71

-$0.39

Gaylord

GET

$29.10

-$0.25

Viacom, Cl. A

VIA

$39.51

-$0.65

Hearst-Argyle

HTV

$26.83

-$0.43

Viacom, Cl. B

VIAb

$39.30

-$0.65

Interep

IREP

$2.29

+$0.03

Westwood One

WON

$30.78

-$0.27

International Bcg.

IBCS

$0.03

+$0.01

XM Sat. Radio

XMSR

$21.68

-$0.71


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Media Mix Guidelines

4A's recommended Guidelines for On-Demand Advertising Guidelines are designed to facilitate discussion among video program distributors, cable/satellite operators, technology enablers, and research intermediaries, with the goal of defining generally acceptable on-demand performance metrics. | Click Here |

RAB - 4A's Radio's universal spot radio buying and selling terms. Jointly presented by 4A's and RAB.
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RAB's - 4A's Communication Guide to clarify the language, and shift perceptions associated with the local radio buying and selling process | Click Here |

TVB - 4A's On-Demand Television Metrics Guidelines. The Advanced Television Committee of the 4A's hopes to begin formalizing this dialogue with an initial set of desired guidelines that will enable advertisers and their agencies to begin judging the effectiveness of ad messaging in on-demand television environments.
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More News Headlines

Upped & Tapped

Jacqui Rossinky
named VP/Sales for
Progress Media
Former D&R President Jacqui Rossinky has been named VP/Sales for the new Liberal net Progress Media/Air America Network. Reed Haggard also joins as Director of Sales. The two will first be aggressively marketing The Al Franken show.

WWZZ-FM DC names Mike Edwards PD
Bonneville's Hot AC WWZZ-FM DC has tapped ABC WJZW-FM and WRQX-FM DC Marketing and Promotions Director Sammy Simpson as its new PD, replacing Mike Edwards who left last month. Simpson was also WWZZ's Marketing Director from 1996-1999 when the station was CHR.


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

FCC Chairman Michael Powell on a letter-writing binge
Takes it upon himself to make sure that top broadcasting and cable industry executives are aware that the FCC is on the indecency warpath. "...I challenge the broadcast community to reinstate a voluntary code of conduct. A code of conduct would offer effective guidance and best practices to local broadcasters to address the needs and concerns of parents, children and local communities - - particularly in the areas of indecent, profane and violent programming." He has asked all recipients to respond within 30 days with proposals to address this problem. Editor's Note: Now he starts to include Cable. It’s called CYA and a little extra sugar of PR of the Chairman Himself.
02/13/04 RBR #30

Sen. John McCain hosted Indecent chatter on Capitol Hill
All five FCC Commissioners for a discussion, while Rep. Fred Upton (R-MI) held a session with Viacom's Mel Karmazin and the NFL's Paul Tagliabue which went into overtime and then some. RBR observation: At least the FCC commissioners didn’t get drilled as in the past on indecent or anything else. Remember last June 4,’03 6/5/03 RBR #110. Chairman Powell noted that the FCC was planning to begin issuing fines for repeat indecent incidents within a single program. Wow – some how this reads indecent!
02/12/04 RBR #29

Karmazin: Indecency rules
too vague to be followed
You can't obey what you can't understand, and Viacom President/COO Mel Karmazin told the Telecommunications and the Internet Subcommittee that current indecency laws and regulations are so vague, and enforcement so inconsistent, that broadcasters have no chance to figure out how to comply. RBR observation: Rules too vague to be follow? – Ah, come on guys how about some common sense as it comes with the driver’s license. Maybe when new rules are written a mandatory vision test will also be required. Bravo ‘Zen Master’ as your bus pulls away from the curb glad to know the bus hasn’t hit anyone – yet, just a few minor fender benders. Bad news is your insurance rate just went up…. May want to call that insurance company with the lizard! 02/12/04 RBR #29

Comcast makes bid for Disney
Got immediate response from FCC Chair Michael Powell. He announced a promise of close scrutiny if Comcast succeeded in purchasing Disney. "I don't know if Comcast will get Disney or not...if it does, a merger of that magnitude will unquestionably go through the finest filter at the commission, I can assure you, as possible," RBR observation: Ok fine but remember when we stated Roy Disney was taking on an anti-Eisner fight to shareholders. Remember we said, ‘The small guys roll with the punches but the big guys throw them.’ The real fight bell is set to ring on March 3rd and in the city of 'Rocky Balboa' - Philadelphia. 01/28/04 RBR #19. Well, Comcast has Eisner in the corner and punching his lungs out. Comcast says “We want to make this as friendly as possible.” Anyone ever see the movie Rocky? 02/12/04 RBR #29

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. Editor's Note: Those oldies but goodies remind me of you!
02/11/04 TVBR #28

Super Bowl advertisers
complaining to NFL
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. Editor's Note: Remember, in an election year – everyone is looking for a deal deal! 02/11/04 TVBR #28

The Dees Tease leaves KIIS-FM
What many in the biz feel could have been an on-air stunt in that 22-year KIIS-FM, LA morning legend Rick Dees leaves or has left the building at KIIS is true. Rick Dees has said bye-bye, buy bonds and don’t forget to play his only hit record ‘Disco Duck’. Editor's Note: Clear Channel could have made it an exit with a little more class. 02/11/04 RBR #28

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. Publihser Note: Puzzling or pathetic department deals with the press themselves…Pathetic!
02/10/04 RBR #27

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. Publihser Note: Puzzling or pathetic department deals with the press themselves…Pathetic!
02/10/04 RBR #27

FCC’s Michael Powell
threatened to pull CBS licenses
Considered holding a dramatic license revocation hearing against CBS after last week's Super Bowl breast mess. "A furious Powell vocalized the "license revocation" option against CBS-owned broadcast outlets to senior staff at the FCC in the hours and days after the event, a top source said from Washington. Several FCC commissioners believe CBSVIACOM has repeatedly violated indecency rules. Editor's Note: The way these FCC commissioners are stumping you thing they are running for re-election. Hello… you are appointed to the position you have. 02/10/04 RBR #27

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. Editor's Note: And the Beat Goes On.. Ta Dum! 02/10/04 RBR #27

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


Contacts
MANAGEMENT
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EDITORIAL
Executive Editor, Jack Messmer
[email protected]
Managing Editor, Dave Seyler
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[email protected]

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