|
|
|
|
|
Volume 24, Issue 32, Jim Carnegie, Editor & Publisher
|
Thursday Morning February 15th, 2007
|
|
|
Radio News ®
|
 Radio growth continuing at Journal
Journal Communications is telling investors to expect radio revenues to be up modestly in Q1, reflecting continuing growth at its developmental radio properties, partially offset by the recent sale of KBBX-FM Omaha. That follows a strong Q4, with radio revenues up 9.1% to 24.8 million. Since Journal uses a newspaper industry calendar based on weeks, Q4 had one more week in 2006 than in 2005. Adjusted for that extra week, radio revenues were up 3.5%. Operating earnings for radio were 9.1 million in Q4, up 18.1%, or an even 18% after adjusting for the extra week. "Overall, Journal Broadcast Group delivered an exceptional financial performance, with every television and radio market posting increases in both operating earnings and margin," said Journal Communications CEO Steven Smith.
Commissioners get a reprieve
No, the governor didn't make a last minute phone call, nor did Mother Nature intervene on their behalf. But an unfortunate event did cause the cancellation of the hearing at Ed Markey's (D-MA) House Subcommittee on Telecommunications and the Internet which will prolonging the pending status of the grilling of the five the five FCC commissioners. The incident was the passing of Rep. Charlie Norwood (R-GA), who was diagnosed with a recurrence of cancer just after winning election to a seventh term last November. His funeral has prompted postponement of the meeting between the commissioners and the subcommittee. According to one report, the commissioners were told to prepare for grilling on the topic of NSA wiretaps, the AT&T/BellSouth merger, broadband deployment. Oh, and excessive ownership concentration and the 2009 transition to DTV. So they'll be plenty of interest to broadcasters when this is put back on the schedule.
NYT examines radio's use of video
Radio may be in a stagnant period. It certainly is in no danger of going away, but neither is it growing very much, not a happy situation for a business which used to crank out high-single digit black ink comps on a regular basis. The New York Times notes devoted a significant amount of ink to take a look at radio's use of one of the tools of the enemy: video. As with most other modern aspects of business, the key is the Internet. And the uses of video by radio station are as wide-ranging as the imagination of radio employees. It can be used to let listeners see who's talking via live streaming. It can make videographers of the listeners themselves a la YouTube and MySpace. At least one station is loaning cameras to listeners and sending them to local venues to capture "bootlegs" of local talent. Video news, weather, sports and other clips are other examples of the type of content that can be put on a station's website. The bottom line is turning video content into a new cashflow stream for the station.
RBR observation: One obvious use of video on radio is to fill the gap left by MTV's virtual abandonment of such content on basic cable. But there's much more to it. One of the keys to maximizing a station's website is to bring your core audience in as a member of the family, and what better way than to elevate them to a participant in the station's community and make them a contributor to its content. Perhaps best of all, it's a great way to demonstrate community service and public interest at renewal time.
|
|
|
 Hinchey interjects FCC
into labor negotiations
CBS and the Writers Guild of America are currently locked in negotiations over a new contract, and at least one member of Congress isn't happy with some of the goals CBS is said to be pursuing. FCC Chairman Kevin Martin has honored the request of Maurice Hinchey (D-NY), Diane Watson (D-CA) and Jan Schakowsky (D-IL) to look into the matter. Hinchey's staff said, "Hinchey and his colleagues asked the FCC to look into CBS's desire to consolidate newsrooms, terminate workers in the event of mergers, and remove news producers from bargaining units, thus enabling corporate interests to infiltrate the newsroom. Since then, CBS has conceded and taken the issue of removing news producers from bargaining units off the table in negotiations, but the consolidation issue remains." Martin has promised to look into the matter and "report to you on its findings once we have heard from both parties."
RBR observation: So the FCC can ask some questions and write up a report. But whether the FCC winds up agreeing with Hinchey or not, we can't imagine that it has the slightest ability to intercede in this matter short of somehow tying it to CBS license renewals, and we just don't see it going there. Other than stepping up to the bully pulpit and urging good faith negotiations between CBS and the WGA, this looks like an exercise in windmill tilting to us.
XM sets satellite leaseback
Why own a satellite when you can rent one? Moving to enhance its financial liquidity, XM Satellite Radio has sold the transponders of its XM-4 satellite for 288.5 million to a trust owned by Satellite Leasing (702-4) LLC. XM is then leasing them back for the next nine years. The sale price was based on a third-party appraisal. XM said it used the cash to pay off 44 million in outstanding mortgages and will have the remainder available for corporate purposes. It has buyout options to take the transponder ownership back in house at year five and at the end of the nine-year lease term.
RBR observation: So, you may wonder, what if the satellite fails before the nine years are up? Is this investment trust stuck holding the bag? This gets rather complicated. XM isn't actually selling the satellite, which was launched last October and placed into service in December. It still owns the satellite, but has sold the transponders. The contract requires XM to buy back the transponders in certain circumstances, including the failure of the satellite. No doubt it would then be dealing with its insurers.
|
|
|
|
| Wall Street Media Business Report TM |
Strong finish for Journal
TV, with three new stations and heavy political revenues, led the way as Journal Communications reported a 15.3% increase in Q4 revenues to 186.6 million. Earnings from continuing operations shot up 51.5% to 20.5 million. Journal Broadcast Group, including both radio and TV, saw revenues increase 47.2% to 70.2 million, with 15.3 million coming from the three new stations and 3.6 million from having an extra week in the quarter, since the company uses a newspaper industry calendar based on weeks. Broadcast operating earnings shot up 69.9% to 23.1 million, a 68.1% gain after adjusting for the extra week. That extra week gave the publishing division a 4.7% revenue gain for the quarter to 89.4 million. But if you take out the extra week, that becomes a decline of 3.1%.
Double digit gains for Fisher
 Fisher Communications reported that Q4 revenues were up 23% to 8.4 million, due to heavy political revenues, but also improved local advertising initiatives for both its English and Spanish stations. Q4 income from operations was 12.1 million, compared to a loss of 228K in Q4, which included a non-cash charge of 4.3 million from its decision to change national reps for its TV stations. Fisher looked a bit different at the end of Q4 than at the beginning. During the quarter it completed the sale of 18 of its 24 small market radio stations in Montana and Eastern Washington for 26.1 million. The other six are awaiting sale once FCC approval is obtained, leaving Fisher with only its big market radio stations in Seattle. Also in Q4, Fisher closed on the purchase of two Oregon TV stations for 19.3 million, structured as a like-kind exchange transaction with the divestiture of the radio stations.
|
|
|
|
|
Ad Business Report TM
|
GroupM names Rupert Day Global COO
GroupM CFO Rupert Day was named Chief Operating Officer, a new position at the media investment management company. The announcement was made by Irwin Gotlieb, CEO of GroupM, a unit of WPP that serves as a parent company to the four media agencies: MindShare, Mediaedge:cia, MediaCom, and MAXUS: "Rupert has been the defacto COO of GroupM for quite some time now while also carrying the heavy responsibilities of chief financial officer, but it's simply too much of a load for one person," said Gotlieb. "This move recognizes the great work he's been doing for us as well the need for a deeper management structure at GroupM." As COO, Day will report to Gotlieb and be responsible for a wide range of strategic, administrative, and operational duties involving all GroupM operating agencies. He will also work with WPP to explore and develop new business opportunities, acquisitions, and joint ventures worldwide. Day, who is based in NYC, was named GroupM CFO in 2003 after working for more than 10 years in a variety of WPP subsidiary companies covering advertising, market research, and media in Europe, Asia Pacific, and North America. He was part of the original management team that launched MindShare globally.
Editor's note: Be sure to read our interview with Irwin Gotleib in the March issue of RBR/TVBR's SmartMedia Magazine.
 JCPenney launches new branding
J. C. Penney announced the launch of its new brand positioning, "Every Day Matters," which aims at a deeper, more emotional and enduring relationship with current and new customers. For the first time in the retailer's 105-year history, JCPenney has created an overarching brand positioning that will be inherent to every customer touch point, including inspiring lifestyle merchandise; enhanced customer service across all shopping channels; an integrated marketing campaign, featuring print, broadcast and online components; an updated store environment with new graphics and signage; and training for employees. The new positioning be unveiled at the Company's analyst meeting in April. JCPenney developed its integrated marketing campaign with its new advertising AOR Saatchi & Saatchi.
|
|
|
|
| Media Markets & Money TM |
A look at Great Eastern's CCU deal
The documents for the deal in which Jeffrey Shapiro's Great Eastern Radio is getting a number of Clear Channel stations on the New Hampshire/Vermont border was filed last month, but a closer inspection reveals an interesting plank tied to it. To recap, for 4.8M, Great Eastern is getting stations in Lebanon NH-Rutland-White River Junction VT, including WTSL-AM/WGXL-FM Hanover NH, WVRR-FM Newport NH, WXXK-FM Lebanon NH, WMXR-FM Woodstock NH and WTSM-FM Springfield VT. The market is a relatively new addition to the Arbitron list, and as such the cluster is grandfathered under old contour definitions. Generally, grandfathered clusters cannot be transferred intact, but the two parties are trying to have the FCC declare Great Eastern ab "elligible entity," that is, a small business which would could buy it intact to further ownership diversity. Failing that, the parties are also filing for license modifications which would move WTSM-FM and WVRR-FM out of the market.
|
|
|
|
| Washington Media Business Report TM |
 FCC set to take on violence
According to numerous reports, the FCC is getting close to releasing a study on media violence. Both Republican Chairman Kevin Martin and senior Democrat Michael Copps are said to be promoting it. Finding a legislative tack toward limiting broadcast violence was long a pet project of prominent Senate Commerce Committee figure Fritz Hollings (D-SC), variously the committee's Chairman or Ranking Member. He's retired, but at the 2/1/07 committee hearing featuring the five commissioners, the baton was clearly passed to Jay Rockefeller (D-WV), who mentioned the topic prominently in his five minutes in the spotlight.
RBR observation: Like indecency, this is another topic that politicians like to use to score cheap "protecting children" points, but which is vexingly (or blessedly) difficult to turn into legislation that can get through the courts. The First Amendment is clear on the topic of free speech, while the link between childhood personality disorders and seeing Daffy Duck get blasted by Elmer Fudd is not. But it looks like we're in for another serious go-around on the topic this year. Stay tuned.
|
|
|
|
| Entertainment Media Business Report TM |
The TV Boss kicks off campaign
Television and radio broadcasters are being asked to assist in getting the word out to parents about the many tools at their disposal to control what their children see on television. The 300M effort is backed by a wide coalition of industry stakeholders and is spearheaded by former MPAA head Jack Valenti. Available now are video commercials, available in HDTV, from the Ad Council showing parents as "boss" of, variously, a prison gang, a dominatrix and a slasher. There are also PSAs for radio, directing parents to TheTVBoss.org and showing parents as boss of the pool boy, rude cartoon, mob and music video. Both types are available in English or Spanish and are downloadable. The overriding goal of the campaign is to provide alternatives to head off any attempts by Congress or the FCC to get into the business of controlling program content.
 Alan Colmes Show replaces
Franken on AFN radio
With the departure of Al Franken from Air America yesterday, The Al Franken Show will no longer be available to AFN for broadcast on AFN|radio. Starting today, AFN welcomes FOX News and FOX news Radio's Alan Colmes to the AFN political talk radio line up. The Alan Colmes Show airs on AFN|radio, Monday-Friday at 5:06pm PT.
|
|
|
|
| Ratings & Research |
ABC Radio's Evans to Receive Beville Award
The National Association of Broadcasters and the Broadcast Education Association will award the 2007 Hugh Malcolm Beville, Jr. Award to Dr. Thomas Evans, senior vice president of research for ABC Radio Networks. The Beville Award, which recognizes the memory and life's work of broadcast research pioneer Mal Beville, is presented annually in honor of outstanding contributions to the field of broadcast audience research. Evans will receive this year's Beville Award during NAB2007 and BEA2007 in Las Vegas. Having served on numerous industry research boards and committees, Evans is the immediate past chairman of the Media Rating Council, and is the current chairman of the Audio Council of the Advertising Research Foundation, where he serves on the ARF Board of Directors. He is also a member of the NAB Committee on Local Radio Audience Measurement and the Research Committee of the Radio Ad Effectiveness Lab, among others. Previously, Evans chaired the Network Radio Research Council, the New York Radio & TV Research Committee and the RAB GOALS Committee. A veteran of the industry, Evans' career has included stints at the Southwest Center for Urban Research, the Institute of Urban Studies, NBC, Westwood One, Arbitron and Nielsen Media Research.
|
|
|
|
| Engineering Business Report TM |
RCS - Prophet Systems announces
NAB2007 new products
At NAB2007 booth N6511, the newly-combined RCS and Prophet Systems announced they'll be showcasing the following new/newer products, along with the rest of their lines.
* RCSnews is a state-of-the-art radio newsroom system, providing solutions for your entire news operation from newscast gathering, writing and editing to actual on-air broadcast and story archiving. This software enables reporters to write newscasts, receive and revise wire copy and digitally record, edit and playback audio.
* GSelector is the world's first goal music scheduler perfect for the diverse ways radio programmers deliver their stations to the audience: Satellite, HD, DAB or Internet. Create a better log: virtually eliminate unscheduled song positions with GSelector as it considers every song for every position, so the best song lands in the best slot every time. GSelector
* NexGen Digital 2007 adds new features that make running a shift, doing production and managing easier than ever. New features include: Improved control room experience with new information available on the button bar. DRR module has been revised to make its logs work more like station logs, allowing staff to transition between tasks faster.
* PrizeWatch easily creates station contests, tracks prize inventory, and is a central location for winners and their electronic confirmation signatures.
|
|
|
|
| Transactions |
N/A KLHI-FM Honolulu HI (Lahaina HI) from Pacific Radio Group Inc. (Richard Charles Bergson) to Hochman Hawaii-three Inc. (George Hochman, William S. Poorman, William G. Mays). Swap for KORL-FM CP Kaului HI. PRG also pays 520K. Duopoly with KORL-AM, KRUD-AM CP. KLHI has CP to move to Waianae HI, Class C on 101.1 MHz with 100 kw @ 1,942'. [File date 1/17/07.]
N/A KORL-FM CP Kaului HI from Pacific Radio Group Inc. (Richard Charles Bergson) to Hochman Hawaii-three Inc. (George Hochman, William S. Poorman, William G. Mays). Swap for KLHI-FM Honolulu HI (Lahaina HI). PRG also pays 520K. Superduopoly with KMVI-AM, KNUI-AM, KJKS-FM, KPOA-FM, KJMD-FM. CP is for Class C2 on 92.5 MHz with 1.7 kw @ 2,211'. [File date 1/17/07.]
|
|
|
|
| Stock Talk |
Big Ben fuels black ink
Federal Reserve Chairman Ben Bernanke did not see good things happening in the housing market. But nevertheless, in his estimation the economy as a whole is going to enjoy modest growth while simultaneously keeping a lid on inflation. This was said to have caused much rejoicing - and investing - on Wall Street. Did your favorite stock participate in the upswing? See below.
|
|
|
|
| Radio Stocks |
Here's how stocks fared on Wednesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
|
Arbitron
|
ARB
|
|
46.64
|
+0.03
|
Journal Comm.
|
JRN
|
|
13.36
|
+0.06
|
|
Beasley
|
BBGI
|
|
9.20
|
unch
|
Lincoln Natl.
|
LNC
|
|
70.86
|
+0.61
|
| CBS CI. B |
CBS |
 |
31.99
|
+0.11
|
Radio One, Cl. A
|
ROIA
|
|
7.50
|
+0.03
|
| CBS CI. A |
CBSa |
|
32.00
|
+0.15
|
Radio One, Cl. D
|
ROIAK
|
|
7.51
|
+0.01
|
| Citadel |
CDL |
|
10.56 |
-0.04 |
Regent
|
RGCI
|
|
3.00
|
unch
|
|
Clear Channel
|
CCU
|
|
36.55
|
-0.05
|
Saga Commun.
|
SGA
|
|
9.67
|
+0.12
|
|
Cox Radio
|
CXR
|
|
15.73
|
+0.04
|
Salem Comm.
|
SALM
|
|
12.27
|
-0.17
|
|
Cumulus
|
CMLS
|
|
10.31
|
-0.06
|
Sirius Sat. Radio
|
SIRI
|
|
3.59
|
+0.02
|
|
Disney
|
DIS
|
|
34.75
|
+0.16
|
Spanish Bcg.
|
SBSA
|
|
4.13
|
+0.04
|
|
Emmis
|
EMMS
|
|
8.73
|
+0.05
|
SWMX
|
SMWX
|
|
0.95
|
-0.10
|
| Entercom |
ETM
|
|
30.40
|
+0.20
|
Univision
|
UVN
|
|
35.89
|
unch
|
|
Entravision
|
EVC
|
|
8.27
|
+0.05
|
Westwood One
|
WON
|
|
7.01
|
-0.04
|
|
Fisher
|
FSCI
|
|
43.85
|
+0.20
|
XM Sat. Radio
|
XMSR
|
|
13.22
|
+0.16
|
|
Hearst-Argyle
|
HTV
|
|
26.25
|
+0.16
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
Bounceback
|
 We want to
hear from you.
This is your column, so send your comments and
a photo to [email protected]
|
|
|
Below the Fold
|
|
Ad Business Report
GroupM names Rupert Day Global
COO a new position at the media investment management company...
Media Business Report
Trump Super Premium Vodka
Will begin its media and marketing plan featuring the poster version of the artwork...
Media Markets & Money
Great Eastern's CCU deal
Filed last month, but a closer inspection reveals an interesting plank tied to it...
Washington Media Business Report
FCC set to take on violence
Getting close to releasing a study...
|
|
|
Stations for Sale
|
Pacific Northwest
2FM & 1AM
$795K and $650K w/terms
Two markets, discount for all-cash
MCH Enterprises: 805.543.3466
www.mchentinc.com
 Market your Stations For Sale
in our daily epapers.
Contact
June Barnes
[email protected]
|
|
|
Radio Media Moves
|
 Webbing on Long Island
Shawn Novatt has joined Barnstable's Long Island Radio Group as Internet Program Director, responsible for the websites of the six radio stations and liradiogroup.com. Novatt was previously morning show producer at WOR-AM New York.
Entercom names
Walker VP/MM
in San Francisco
Entercom announced Dwight Walker has been named Vice President/Market Manager of KOIT, KDFC and KMAX San Francisco, which will soon be run by Entercom under a brokerage deal with Bonneville as part of Entercom's agreement to purchase these stations. Walker was previously VP/Sales for Cumulus/San Francisco's KNBR, KFOG and KSAN.
|
|
|
More News Headlines
|
Trump Super
Premium Vodka
campaign detailed
Drinks Americas announced it will begin its media and marketing plan for Trump Super Premium Vodka, featuring the poster version of the artwork of the product created by designer Milton Glaser. The campaign, utilizing images of Trump Super Premium Vodka and its related artwork, will focus on print and outdoor. The "Success Distilled," "World's Finest Super Premium," and "Trump Vodka" phrases and artwork will be seen in Wine Spectator Magazine, Cigar Aficionado, The Wall Street Journal and USA Today, as well as Hampton's Magazine, Ocean Drive, Georgia Peach 944, XXL Magazine and numerous other national publications. The artwork and images will also be seen in outdoor posters and on bus shelters. J. Patrick Kenny, CEO of the company, says the advertising will also be featured on the electronic marquee of Madison Square Garden for the next 12 months.
|
|
|
RBR Radar 2006
|
|
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
|
Reps want DARS to keep it national
Gene Green (D-TX) and Chip Pickering (R-MS) are once again going to bat for local radio. Trumpeting its importance its importance to the immediate communities in times of emergency, they are offering legislation to make sure satellite radio doesn't encroach on their territory. The "Local Emergency Radio Service Preservation Act of 2007" marks a return engagement for a bill originally offered during the last Congress.
RBR observation: Broadcasters have long been suspicious of terrestrial repeaters being installed by DARS services. Unless the satellite services are willing to put boots on the ground in every community in the country to provide the same kind of emergency information that broadcasters do, they have no argument. Caveat: Broadcasters must continue to excel in this area. And while we've all heard about Minot ND over and over again, we believe the fact of the matter is that 99% of the time, broadcasters shine brightest when conditions are at their worst. And it is a vital service provided by no other medium, period.
02/14/07 RBR #31
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.
RBR observation: This is taking and using all assets of the media to their fullest extent, Period. For more details see this issue of RBR.
02/13/07 RBR #30
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
|
|
|
|
 |
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.
See Radio Careers
Hard finding that key person
to fill the important position at your organization? Media HeadHunters is the place that key media firms use to get results. See Media HeadHunters and get results with service--Period.
|
 |
|
|
|
|
Help Desk
|
__EMAIL__ :
Having problems with our epapers?
Please send Questions/Concerns to:
[email protected]
If you wish to remove your name completely from our database use this link __UNSUB__
RBR Epaper -- 108 annual
or just 9 a month
|
|
|
|
©2007 Radio Business Report, Inc. All rights reserved.
Radio Business Report -- 2050 Old Bridge Road, Suite B-01, Lake Ridge, VA 22192 -- Phone: 703-492-8191
|
|
