| Carnegie's Observation |
Stop Talking the Talk - Start Walking the Walk
By engaging in the business environment that is now here - Digital Media. This is not a cheap shot but a wake up call. Last week I attended my umpteenth RAB and on a scale of 1 to 10 it was around a 4. I put it into perspective - the last 25 years I have seen five different Presidents at the RAB. A trade association president receives his or her marching orders from the board of directors and executive committee. The president's duty is then to execute the plan. Ok, lets look at this - executing a plan by a board of directors - if I am not mistaken the RAB board is made up in part by a number of CEOs running radio companies that are publicly traded, and they are having real tough times.
 Fact: Many of these groups have seen No growth, No shareholder value, No innovation in the last seven years. We have all read the RBR headlines and observations, and we can read the stark facts listed in the RBR stock chart. We also have read much of the analysis from Wall Street on their estimation of our radio business and many of these public companies - and watched as many of the analysts are pulled off the radio beat because increasingly their management doesn't think it's worth the trouble. The fish stinks at the head.
I say to myself - How can any marching orders be given to a president and more importantly, the organization's when they, the publicly- traded radio groups have not and cannot figure out the right marching orders for themselves. So do you shoot the messenger or put the target on the chest of those giving the marching orders? It is time to take back control of our radio business from Wall Street and get back to Main Street. For more on getting our radio business on track, a look see at Radio 2020, and a few industry quotes from key industry execs that tell it like it is and where we need to be now. Today's Radio Digital Media as we are Thinking out of the Box.
| If you dare, Read - Take control of our Radio Business |
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Radio News ®
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Localism comments solicited
The FCC's NPRM on enhancing broadcast localism has officially made it into the Federal Register under MB Dicket No. 04-233. The official publication date was 2/13/08, which sets the comment clock to a deadline of 3/14/08 and the reply comment clock to a deadline of 4/14/08. The proposed rule changes will strive "...to enhance broadcast localism and diversity, to increase and improve the amount and nature of broadcast programming that is targeted to the local needs and interests of a broadcast licensee's community of service, and to provide more accessible information to the public about broadcasters' efforts to air such programming."
RBR observation: This should be a fun one. While the goal of increasing localism is a noble one, this government-mandated effort is doomed to fail. For starters, who is to say that having access to programming from a distant source is not of local interest? Are the residents of Snakes Navel ID to be limited to the news and opinion generated by those in their local community? Are they to be limited to interviews with the local town council or rerun collections available at the one-bin DVD display at the local trading post? The answer to such questions is that there is indeed a need for information from the outside world to trickle, or pour, into Snakes Navel. Ideally, the best and brightest broadcasters in Snakes Navel are going to super serve their local residents because they want to attract the largest possible audience and sell as many commercials as possible. Other broadcasters may have to mix and match local programs and syndicated fare with an eye to their bottom line. We would hope that many of those stuck in this tier are biding their time and plotting ways to move up to the elite in the market. The sad fact is that many will simply plug the cheapest network it can find, hire a salesperson and a contract engineer, and milk what cash can be milked from a mundane station. Even in this case, however, if people are tuning in, this lackluster station is serving a portion of the public. It will be impossible to define what serving the public is, since there are countless ways to do so, and without an enforceable definition, this whole endeavor will turn into a tree-killing or byte-consuming exercise in futility with no endgame in sight.
 MIM avoids scapegoating
guns for gun violence
And in so doing, Morality in Media President Robert Peters decided instead to scapegoat television, music lyrics and video games. There are other items on the list that get to share this blame, but the fact that Peters and his boyhood friends never murdered anybody apparently lets guns off the hook. When Peters was young, he said there was already too much violence in film and movies, but "it was generally clear who the good guys (heroes) were and who the bad guys were. Good guys (heroes) didn't commit murder." He added, "Children today grow up in a popular culture saturated with deadly violence graphically portrayed -- not just in films and TV but also in videogames and RAP lyrics. The line between good and bad guys is often blurry; and in many TV programs, films, video games and RAP lyrics, mayhem is celebrated." The declining influence of Religion was another factor he cited. "This is not to say that media violence alone can explain the horrific incident that took place at NIU on Thursday. But it would be a mistake to make availability of guns a scapegoat of this and other similar mass murders. Availability of guns in North Central Illinois, and most of the rest of America, is nothing new. Widespread use of them to kill random strangers is."
RBR observation: It is so easy to pick a complaint about modern society and then blame it on the media. The bottom line is that Peters is just saying stuff. We've seen TV and movies from the 50s and 60s, and there was absolutely no shortage of violence. Remember back when cowboy shows had a prominent place on the dial, followed by detectives, PIs and various and sundry policemen? While most real policemen rarely so much as draw their firearm while on duty, as we recall, it seems that these people during this supposedly morally superior time almost always resolved each week's crime problem by shooting the crook to death. The bottom line is that as much as they would love to draw a straight line from media violence to real life violence, nobody has been able to do it, no matter how hard the matter has been studied. We do not pretend that we understand the reasons for the current spate of mass killings. The media probably is a factor, and at the very least it is a reflection of the society we live it. But we would guess that there are social, financial, mental health and other issues involved -- including religious issues, as was the case in one of the more recent tragedies. And the availability of firearms has to be considered as well, not swept under the rug because it's easier to blame TV, radio and video games.
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Radio prospects on the up and up
Finally, a ray of sunshine from revenue prognosticators, who say things look like they will finally begin picking up for the beleaguered radio industry. "[M]edia buyers are far more optimistic about the sector than they were a year ago," says a new report. Unfortunately, the report, "The Future of Radio," is referring to that little place across the pond know affectionately as Great Britain. But hey, maybe it is a sign of events that may be repeated here in the Western Hemisphere. According to UTalkMarketing.com, growing disenchantment with internet advertising results is fueling a new look at the older radio medium. The report says that UK internet advertising revenue is three times radio's income, but radio's ads attracts five times more consumer time than the internet. The report says, "This relationship appears unsustainable and suggests that advertising spend will swing back towards radio." The report notes that digital advertising is here to stay, and new digital revenue streams are on the rise. It says that radio must take advantage of digital synergies and tie its over air and internet platforms together. "As listeners migrate to digital platforms, new advertising revenue streams are opening up," the report notes. "We believe commercial radio should feel confident in its role as an advertising medium."
RBR observation: Many execs have predicting a US radio revenue upswing when the honeymoon with the internet gets stale. We think those execs were thinking that it should have happened already, but the fact remains that it still may be in store. It is critical for radio to cement its biggest natural advantage -- localism. No internet portal has the ability to get to a large block of people in one tightly-knit geographical area, and radio has traffic jams performing this invaluable service for it just about every business day. Do an effective job of tying this in with a fabulous internet presence and there's no reason radio can't turn things around. However, we caution: Every silver lining has a cloud. UTalkMarketing.com is talking about a potential radio rebound. They haven't pulled it off yet. But we'll hang onto any tiny little piece of optimism we can find, at this point.
Where will we find the
next generation of engineers?
 A new study that examines the number of engineering graduates coming out of our nation's engineering schools reveals a mixed picture of how prepared each state is for meeting the need for high-tech workers in the coming years. Greg Schuckman, Assistant VP of University Relations and Director of Federal Relations and Research Advancement at the University of Central Florida, authored the study after revisiting data that he had analyzed in 1998 while working for the American Association of Engineering Societies in DC. "Over the past 20 years, the number of students earning bachelors degrees in engineering has declined by almost 3% nationally," says Schuckman. "While that statistic may not seem significant by itself, the decline comes at a time when the number of students receiving bachelors degrees overall in the US has increased by more than 50%."
| Read more & view the chart |
Florida ad tax being reconsidered...again
Florida abolished the sales tax exemption on advertising 20 years ago after six months on the books and replaced it with a one-cent hike in the state sales tax. Now Florida's Taxation and Budget Reform Commission is proposing to give it another try to drum up funds for schools in the depressed state. The debate over the services tax has been renewed by a proposal from former Senate President John McKay, R-Bradenton, who wants the taxation and budget panel to approve a constitutional amendment that would wipe out 8 billion in school taxes while replacing the lost revenue by extending the sales tax to other goods or services. So any radio, TV or other ad contract could get a 6% tax surcharge tacked on. If backed by the commission, the measure would be on the November general election ballot and go into effect by 2012.
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Ad Business Report TM
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NYC advertising on a slide
After reporting a 13% drop in December ad revenue, The NY Times said last week that it would cut some 100 newsroom jobs over the course of this year. The paper isn't the only suffering media biz in the Big Apple, according to a Crain's New York Business story. Radio ad revenue for the marketplace took a slide in January, and television insiders predict a low-single-digit ad revenue drop in the first quarter for the local marketplace. Some magazines are seeing the bottom fall out of their ad page counts as well. Newspapers have been the most vulnerable to the ripple effect of the mortgage crisis and subsequent credit crunch and the long-running problems for U.S. automakers. Ad revenue is down at the Daily News and Newsday as well, said the story--driven by declines in automotive, financial services and real estate advertising. Radio and local television have been caught in the same downturn, with the WGA strike providing additional pain for both. Some big local advertisers have stayed out of television this quarter because they didn't want their spots to appear during the repeats or reality shows that have been substituting for scripted programming. And with no new high-profile shows to promote, TV has been spending less on radio ads. Ad revenue for the New York radio marketplace fell 7.5% in January to 43.3 million, according to a report from Miller Kaplan.
Buyers say that rates for radio airtime have become very competitive-a sure sign of a lack of business. "There's been nothing much going on-no political spending, no Olympics," observes Meredith Smulian, an SVP at R.J. Palmer, a local buying agency. "In the second quarter, you expect to have to pay more, but [rates] are not coming up." The only areas where worries about the economy have yet to take a significant toll appear to be cable television, network television and the Internet. TNS Media Intelligence has forecast 5% revenue growth this year for cable, 3% for network TV and 14% for the Internet. "The near term has been healthy," Aaron Cohen, chief negotiation officer for Horizon Media told Crain's. "But in the long term, there are possible negative effects from lack of consumer confidence, which may eventually impact marketing and advertising budgets."
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| Media Markets & Money TM |
Providence fires back
 Providence Equity Partners says it was "surprised and disappointed" by Clear Channel's decision to launch a lawsuit to force the pair's 1.2B television station deal to closure. And not only that -- it says that the litigation nullifies its requirement to pay a break-up fee of about 46M should the deal fail to go through. "We are surprised and disappointed that Clear Channel would suddenly bring this baseless lawsuit as we were trying to work out a mutually acceptable arrangement in difficult market conditions," said PEP in a statement." PEP went on to say that its only obligation, if all contract stipulations are satisfied, is to pay the break-up fee to get out of the transaction. And it believes that the litigation nulls and voids that plank.
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| Washington Business Report TM |
There's a new watchdog in town
The mission of the National Hispanic Media Coalition is to "advance Latino employment and programming equity throughout the entertainment industry and to promote telecommunications policies to include the Latino community." After taking on this task from its HQ in Pasadena, California, the and statewide chapters in California, New York, Illinois, Arizona, Georgia and Michigan, it is now setting up an office where the lawmakers and bureaucrats are, Washington DC. Inez Gonzalez, NHMC Vice President of Media Policy, will head up the new office. "Inez will be a tremendous asset for us in Washington," explained Alex Nogales, NHMC President/CEO, "her connections and vast experience in regional politics makes her the ideal person to manage this office and help us affect positive change for our community." Gonzalez has an inroad into Congress -- she was a District Director for sitting Rep. Bob Filner (D-CA). Nogales says a top-of-mind goal is counter negative language from "conservative talk show hosts," which is said to have contributed to a 25% upswing in anti-Latino crime since 2004. "Hate speech is not free speech," explained Nogales, "and the best way to ensure that hate speech is not tolerated, is to work closely with the policy makers. This is why we've opened an office in DC."
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| Internet Business Report TM |
"Idol" performances
 available via iTunes Store
Fox Broadcasting, Fox Interactive Media, 19 Entertainment, FremantleMedia and Apple have partnered to bring music fans all of the contestant performances from Season Seven of American Idol exclusively on the iTunes. Kicking off with the "American Idol" Top 24 semifinalists this week, customers can purchase music performances for 99 cents per song, and viewers will be able to purchase the full video of Top 12 finalist performances for 1.99, starting 3/11. In addition, fans can now pre-order performances of their favorite contestants from the iTunes Store, which will be automatically downloaded the day after the show airs. iTunes will also provide exclusive direct links from the free streaming performance videos on americanidol.com.
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| Engineering Business Report TM |
Avoiding a shattering experience
One of the problems with television sets ever since Atari entered our living rooms back in the 1970s is their hijacking by gamers, preventing the viewing of wholesome and intellectually stimulating commercial messages, particularly among the difficult to reach younger demos. A new, even more permanent assault on commercial viewing has recently been introduced: Wii. The problem: Not only are commercial messages missed during play, they are often missed for an extended period AFTER play, because a Wii remote has been hurled through the television screen. Panasonic has a new plasma offering on the way designed to sustain a Wiimote attack. It uses a special transparent coating to "absorb a four Joule kinetic energy impact," according to play.tm. There is as yet no word on pricing nor when the units will be available.
RBR observation: Tsk tsk tsk -- the environmental considerations you have to take into account these days...
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| TVBR TV News |
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Pick three
We're noticing that more than a few local television stations celebrated 2/17/08 by pointing out that it marks the official 366-day leap year countdown to the end of analog television. This can be taken as a strong sign that local television operators are not taking the transition lying down. To take just one example, CBS WTAJ-TV in Altoona PA explained the situation in a way that most of its viewers should be able to understand. It told viewers that if they have a cable or satellite subscription they have no worries; and antenna-users have three basic options. (1). Buy a new digital television set, starting at about 500 dollars a pop right now. (2). Buy a converter box for your analog television set, at about 50-70 dollars a pop, and used its website to direct viewers to the government 40 dollar coupon site; or (3) subscribe to cable or satellite.
TVBR observation: The Consumers Union is concerned that citizens who need to make a change will not fully understand the cost implications of their various options, and that profit-motivated players in the MVPD and retail businesses will be on the prowl for as many upsales as possible. On the other hand, WTAJ was able to put the dollars right on the table without much fuss. The trick will be to keep these messages coming, so that those viewers who avoid the news like the plague will also get the word.
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| Transactions |
5.2M WLEC-AM/WCPZ-FM, WTTF-AM & WMJK-FM Sandusky OH (Sandusky, Tiffin, Clyde OH); and WPFX-FM North Baltimore OH from Citicasters Licenses LP, a subsidiary of Clear Channel Broadcasting Inc. (Mark Mays) to BAS Broadcasting Inc. (James A. Lorenzen, Thomas W. Klein et al). 520K escrow, balance in cash at closing. Daisychain superduopoly with WFRO-AM Fremont OH, WOHF-FM Bellevue OH. [File date 1/18/08.]
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| Stock Talk |
First the writers strike, now this
Many television shows were forced to delve into their supply of reruns thanks to the absence of their creative staffs. The stock brokerage community did not go on strike, but they DID take the day off in honor of past presidents. So for your enjoyment, and to help you keep in touch you're your sense of déjà vu, we present a repeat of Friday's closing numbers.
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| Radio Stocks |
Here's how stocks fared on Friday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron*
|
ARB
|
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41.95
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-0.45
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Google
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GOOG
|
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529.64
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-2.61
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Beasley*
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BBGI
|
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5.42
|
+0.01
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Hearst-Argyle
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HTV
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21.86
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-0.14
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| CBS CI. B |
CBS |
 |
25.38
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+0.30
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Journal Comm.
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JRN
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7.57
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-0.19
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| CBS CI. A |
CBSa |
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25.32
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+0.20
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Lincoln Natl.
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LNC
|
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53.49
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+0.59
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| Citadel* |
CDL |
|
1.38 |
-0.03 |
Radio One, Cl. A
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ROIA
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1.58
|
unch
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Clear Channel*
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CCU
|
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32.35
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+2.22
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Radio One, Cl. D*
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ROIAK
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1.57
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unch
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Cox Radio*
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CXR
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11.96
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+0.20
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Regent*
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RGCI
|
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1.16
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-0.04
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Cumulus*
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CMLS
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5.75
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-0.06
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Saga Commun.*
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SGA
|
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6.00
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+0.02
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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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3.75
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-0.26
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Disney
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DIS
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32.49
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+0.17
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Sirius Sat. Radio
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SIRI
|
|
3.23
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+0.04
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Emmis*
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EMMS
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2.87
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+0.04
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Spanish Bcg.*
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SBSA
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1.61
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+0.01
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Entercom*
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ETM
|
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12.59
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+0.28
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Westwood One*
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WON
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1.96
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+0.09
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Entravision
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EVC
|
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6.58
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-0.14
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XM Sat. Radio
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XMSR
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13.56
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+0.15
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Fisher
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FSCI
|
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31.12
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+0.06
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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]
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Below the Fold
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Ad Business Report
NYC advertising on a slide
After reporting a 13% drop in Dec. ad revenue the NY Times cut 100...
Media Markets & Money
Providence fires back
Providence Equity Partners says it was "surprised and disappointed"...
Washington Business Report
There's a new watchdog in town
Mission of the National Hispanic Media Coalition is to "advance Latino employment and programming equity...
Internet Business Report
"Idol" performances
Available via iTunes Store It is a who's who involved...
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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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More News Headlines
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Sam's Club drops Savage ads
The Hate Hurts America Community and Interfaith Coalition (HHA) announced that Sam's Club has stopped advertising or refuses to place their ads on Michael Savage's "The Savage Nation" show. HHA is a group of religious and civic organizations seeking to challenge hate speech on talk radio. Coalition members are calling on advertisers nationwide to stop airing commercials on his nationally-syndicated program. Late last year, the Council on American-Islamic Relations (CAIR) called on radio listeners of all faiths to contact Savage's advertisers to express their concerns about the host's anti-Muslim stance. CAIR is a member of the Hate Hurts America Community and Interfaith Coalition.
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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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Inside the minds of the DOJ's antitrust lawyers
RBR/TVBR has now been able to look over the court filings by the US Department of Justice's Antitrust Division in its civil settlement with Bain Capital, Thomas H. Lee Partners and Clear Channel Communications which requires radio station divestitures in four markets to win a thumbs-up to close the 26.7 billion bucks transaction by the two private equity firms to take Clear Channel private.
RBR observation: If DOJ takes the view that Spanish radio in a given metro is a distinct market, we can't imagine how the department could justify a conclusion that satellite radio companies, of which only two exist, compete with a plethora of "audio" services, including AM & FM radio, Internet radio, iPods and what have you.
02/18/08 RBR #33
Four newspaper groups pact for online ad sales venture
Four large newspaper companies are joining forces to sell ads on the Internet, hoping the larger reach will get more ad dollars. Each of the four companies, reports The NY Times, is transferring a portion of its online ad space to quadrantONE,
RBR observation: This is a solid move by these four papers as the internet is all about PageViews. There is new language everyone has to learn not just talk the talk. Now time to walk the walk. It is Not - New Media - it has been with us for the last 10 years - it is just new to a few in the Radio business. Get hold of this added value to your station - it will bring rewards.
02/18/08 RBR #33
Less is: a) More; b) simply less
With Q4 radio revenues down from a year earlier at Clear Channel, it is obvious that they were once again down from the final quarter of 2004, before the company fully implemented the Less is More initiative to reduce commercial minutes, encourage advertisers to use shorter spots and, theoretically, boost rates. Three years of financial reports later, it's pretty clear that things didn't work out as planned. If you're keeping score, here's how the years have played out in terms of revenues for Clear Channel Radio.
RBR observation: Hey the smoke has cleared and see it for what it was worth. Remember when all the groups with applauding LIM? Humm, wonder if they are clapping today?
02/18/08 RBR #33
RBR Analysis: Some prime
radio properties on the market
Parting with some prime radio real estate is the price that Clear Channel must pay, but only six stations, under the DOJ antitrust decision that clears the way for the company's private equity buyout. So it's full steam ahead to a closing next month as buyers line up to pick up the castoffs in San Francisco, Houston, Cincinnati and Las Vegas. DOJ is requiring CCU to sell.
RBR observation: The true irony of this is that Clear Channel had led the charge by general market broadcasters to get into the fast-growing Hispanic radio market and create new competition. So, the DOJ's Antitrust Division is actually moving to decrease competition in the Spanish radio marketplace in three markets, by forcing a sale to either an existing competitor or a new entrant who will be a weaker, standalone competitor than Clear Channel was with its English-Spanish clusters. Your tax dollars at work. RBR.com Examines the Stations, Prices and Potential Buyers in each market see this page
02/15/08 RBR #32
After RAB: What about
Haley's promise of posting?
RAB president Jeff Haley unveiled a few new initiatives in Atlanta, including getting radio receivers on every mobile handheld device, phone and MP3 player within the next five years; how digital will open the doors for radio to deliver targeted ad messages; and a promise that the radio industry would adopt posting (common in the TV biz)--showing ratings a buy was based on vs. the audience it actually delivered. He said posting was simply a guarantee that radio will deliver what it promises to our advertisers.
02/15/08 RBR #32
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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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