Welcome to RBR's Daily Epaper
Volume 22, Issue 36, Jim Carnegie, Editor & Publisher
Monday Morning February 21st, 2005

Radio News®

Spitzer subpoenas radio groups
The probe of independent record promoters that New York Attorney General Eliot Spitzer began last fall by serving subpoenas on the big record labels (10/25/04 RBR #208) has now led to subpoenas being issued to several radio groups. It was already known that Spitzer's office was looking at Entercom, after WKSE-FM Buffalo (1/13/05 RBR #9) fired its Program Director in a company probe of whether he improperly accepted travel packages and other gifts. Now there's word that other groups have received subpoenas. Clear Channel confirms that it received one and Reuters reported that Infinity was also a recipient. Although there's a federal law against payola, there's no specific state statute in New York relating to the practice. A spokeswoman for Spitzer's office wouldn't discuss specifics of the ongoing investigation, but she told RBR/TVBR that the AG is trying to build a case that payments and gifts from indies to radio stations or their employees violate New York state statutes on deceptive business practices.

RBR observation: We're all for putting the indies out of business - - a position we've advocated for years. But the credit for doing that goes to Sen. Russ Feingold (D-WI), who pushed and pushed the issue on Capitol Hill long before Spitzer took notice. First the radio groups tried to clean up their dealings with independent promoters by forcing them to stop under-the-table payments to PDs and MDs and sign formal contracts with the groups. When that still didn't pass the smell test, most groups announced within the past couple of years that they would end all dealings with the indies once their contracts expired. It seems to us that Spitzer is late to the game. A few indies are holding on, but their dubious business as the "don't ask, don't tell" cover for the big record labels has been virtually obliterated. And good riddance, we might add. Whatever scraps are left for Spitzer to probe may help fuel his publicity machine as he campaigns for Governor of New York, but the cleanup had already taken place before he got involved.

SEC probing Sirius stock trading
It looks like the SEC is investigating whether anyone cashed in by having advance knowledge that Howard Stern was going to sign with Sirius Satellite Radio. Frequent Stern guest Chaunce Hayden has been subpoenaed to appear before an SEC investigator this Wednesday to answer questions about what he may have heard prior to Stern's October 6th announcement that he would jump to Sirius in 2006 when his current contract with Viacom's Infinity ends. Hayden tells RBR/TVBR that he's never owned any Sirius stock and never had any inside information about the negotiations with Sirius. Yes, he predicted the Sirius move on ABC News On Demand, but Hayden says it "didn't take a rocket scientist" to figure it out.

RBR observation: Although Sirius' stock was in a general climb that took it up about 40% in the two weeks prior to Stern's announcement, it looks like the SEC is likely to focus on trades made on September 29 and 30. The price jumped 15% to 3.02 on the 29th and trading volume nearly tripled to over 105 million shares. Volume was nearly 95 million on the 30th and the price moved up modestly to 3.20, before both the price and volume fell back (although still above ordinary levels) the next day. When Stern made the actual announcement on October 6th, the stock price shot up 15% for the day to 3.87 and volume skyrocketed to nearly 344 million shares. | More... |

Payola firing in Chicago
WGBR-AM "Gospel Radio 1390" Chicago Program Director and afternoon talk host Sandra Robinson was fired last week for violating the company's payola policies, Clear Channel Radio Regional Vice President John Gehron told RBR, confirming a story first reported Friday by the Chicago Sun-Times. Unknown to her employer, Robinson's husband, Nelson Robinson, was working as an independent record promoter to get songs played on the station. The pay-for-play scheme was discovered when Sandra Robinson was off work for medical reasons and someone called the station to find out why a song that had been paid for wasn't getting airplay.


Radio kicks off 2005 in the black
The Radio Advertising Bureau's monthly revenue results are in for January, and the good news is that we're starting the year out with a dip of the quill into the black inkwell. The bad news is we're not dipping in that far - - only 3% worth, as compared to the same month in 2004. Still, it beats last year, when radio started the year off flat compared to 2003. National was the category leader for the month. The 3% gain was the product of a 2% uptick in local, a 6% gain in national and a 2% gain in non-spot.

RBR observation: This marks the first industry pulse-taking in the recently kicked off "less is more" era. If nothing else, it shows that the sky definitely isn't falling. At least not yet. Stay tuned.

Point-counterpoint: Watchdogs on indecency
We have two more takes on the House of Representatives resounding vote to dramatically increase the penalties for broadcast indecency, up to a possible 500K per incident, plus imposition of additional liability on performers and establishment of a three strike rule. Today we'll check out comments from the Parents Television Council (PTC) and the Center for Creative Voices in Media (CCVM). For its part, PTC has initiated a campaign in which it is urging its constituents to pressure their senators into taking reciprocal action to the House measure. | More... |

Fee for all, 2005 edition
The good attorneys at Womble Carlyle Sandridge & Rice, PLLC have taken the time to put together a look at the regulatory fee proposals recently put forth by the FCC for 2005. It represents only a modest increase over 2004 levels, in keeping with a 2.6% increase mandated by Congress. The Commission has announced a proposed schedule of annual regulatory fees to be assessed and collected this summer. Although it has requested comments to be filed by March 8, 2005, in all likelihood the Commission will adopt its proposal, as it has done consistently in the past. Here is the law firm's take on the new 2005 charts | More... |


RBR News Analysis
Three year licenses: The road to better political coverage?
Today we discuss a very complicated problem, but we promise to keep it brief. For openers, we don't remember the name, but one of the laws in the original "Murphy's Law" book goes like this: "For every complex question, there is a simple, easy to understand wrong answer." We don't think the proposal from Sen. John McCain (R-AZ) to change the broadcast license cycle from eight to three years even rises to the level of "wrong" implied by the quote. That's because we think he's so wrong that we don't understand his proposal at all. How will shrinking the license cycle improve campaign coverage? | More... |

RBR Poll Question
Senator John McCain has proposed legislation which he claims will improve radio and TV coverage of local issues and political campaigns.

Which of his proposals do you think has the most merit?:
1 - Reduce the broadcast license renewal period from eight to three years.
2 - Require public hearings on how well public interest obligations are met.
3 - Require licensees to post their public interest obligations on their website.
4 - None of the above.


Adbiz©

Lowe Worldwide CEO unveils
''Next Generation Growth Network''
Tony Wright, Lowe Worldwide President and CEO, revealed his plans to create what he calls the "next generation growth network." "Anyone who's kept an eye on what's happening in the client world is aware that years of relentless cost-cutting are reaching their natural conclusion. The new focus must be on top line growth. This must change how we think about adding value to client businesses," says Wright. "The only thing that clients really demand from their agencies is the delivery of breakthrough, multi-media, creative ideas which can be executed globally. We live in a 24/7, interactive, globally-connected world and we believe that in a time of media clutter the power of engagement will win every time." | More... |

Grey Global Group announces merger date with WPP
Grey Global Group announced that the anticipated effective date of the previously announced merger with WPP Group is 3/7, subject to the approval of the stockholders of Grey Global Group.

Zenith Media busy with new business; radio may benefit
Matt Feinberg, SVP/National Radio, Zenith Media Services, may be delivering some good news for radio soon, based on recent client scores that include Nestle's global assignment, Hewlett-Packard, and Chase. There have been lots of transition meetings and radio strategy sessions. With his background, he's able to look at the entire landscape and develop strategy from a more global perspective, which is the right way to plan radio. Under his guidance, their radio campaigns should indeed fare well. "We look at radio from a global perspective and are using our vast resources to help with each brand's objective," Feinberg tells RBR/TVBR.

WSJ taps Berlin Cameron/Red Cell
The Wall Street Journal announced that it has hired Berlin Cameron/Red Cellto to create advertising to support the launch of the Journal's Weekend Edition, scheduled for a 9/17 launch. "We are delighted to have the opportunity to work with an agency the caliber of Berlin Cameron to create a campaign for the launch of the Weekend Edition," said Karen Elliott House, publisher of The Wall Street Journal and SVP/Dow Jones & Company. "This agency has a track record of successful work for brands such as Coca-Cola, Pfizer and New York Life, and we look forward to working with them on this bold initiative at The Wall Street Journal."


Media Markets & MoneyTM
Mouse learns the Truth about Greensboro
WCOG-AM in Greensboro NC is being sold. Stuart Epperson's Truth Broadcasting is selling the station to Radio Disney Group for 1.675M bucks. Folks on the ground won't notice too much of a difference at the station, however. It's already an affiliate of the Radio Disney children's network. Disney does not have a true presence in the Greensboro-Winston Salem-High Point radio market, other than its business relationship with WCOG. However, there is minor overlap with its ABC Television Network WTVD-TV O&O in Raleigh-Durham. That shouldn't pose any regulatory barriers which can't be easily hurdled. Epperson is a top executive at Salem Communications. The nation's biggest Religious radio company does not have an interest in Truth, however, which Epperson runs on his own with his wife Nancy. Truth will continue to own and operate several other AM stations in the area.


Washington Beat
FCC OKs 33 more from Auction 37
33 more winning bidders from last fall's FM Auction No. 37 have been cleared for takeoff pending final payment. This group's payment is due 3/7/05, and with the grace period taken into account, they actually have until 3/21/05. Once that detail is taken care of, the FCC says its prepared to grant the necessary CP. Clear Channel's Manson IA FM is included in this group. Radioactive picks up 12 sticks, World Radio Link picks up nine, and White Park Broadcasting three. Here are the latest batch of approved winners: Alma Vision Hispanic Network at Hawthorne NV; Clear Channel at Manson IA; Delta Media at Simmesport LA; William C. Doleman at Lake Crystal MN; Fisher Radio Regional Group at Alberton MT; Icicle Broadcasting Co. at Manson WA; Will Payne at Soper OK; PFRE at Sepulator NY; Radioactive at Sac City IA, Watseka IL, Cimarron KS, Hays KS, Lindsborg KS, Powers MI, Walhalla MI, Vernon Center MN, Ingam TX, Two Rivers WI, Richwood WI & Ridgeley WV; Track 1 Media of Sterling at Eckley CO; White Park Broadcasting at Chygwater WY, Lovell WY & Mills WY; and World Radio Link Inc. at Sterling AK, Fagaitua AS, Yuma CO, Newell IA, Bunker MO, Valier MT, Sarles ND, Sargent NE & Coahoma TX.

Three new AMs head for the runway
Three applications for AM Auction No. 84, which dates back to 1/26-30/04, have been determined not mutually exclusive with any other applications and are cleared to take the next step in the process toward construction. That would be filing of Form 301, including a demonstration that the stations, once built, will not interfere with any existing facilities. If the applications are deemed technically sound, the FCC will open up a period for comment, during which petitions to deny will be accepted. Up for Form 301 submissions are the proposals of noncom Better Life Ministries for 1240 kHz in Green River UT, and two proposals for Agana GU - - Management Advisory Services for 1350 kHz and Powell Meredith Communications for 1020 kHz.


Ratings & Research
Nielsen delaying DVR ratings
As speculated previously, Nielsen announced last week it is delaying measurement of DVR households until early 2006. It will also create an independent industry consortium (and spend 2.5 million in the process) responsible for suggesting and overseeing improvements in audience measurement methodology. This, after a recommendation by the Media Rating Council (MRC) in a letter to Congress and the FTC that was signed by more than 60 leaders of research at agencies and TV companies. When Nielsen originally unveiled plans to measure DVR households last year, penetration of the devices was estimated to be about 5%+ percent of US TV households. By the time Nielsen begins installing meters in DVR homes in '06, that figure is expected to be 10%+.


Monday Morning Makers & Shakers

Transactions: 1/10/05-1/14/05
After going begging for the entire month of December, TV finally made a reappearance in the FCC deal database - - two deals for three stations went well over the 200M mark, accounting for almost all the value in a week that also featured 10 respectable but relatively small radio deals.

8/30/04-9/3/04

Total

Total Deals

12

AMs

8

FMs

7

TVs

3
Value
237.74M
| Complete Charts |
Radio Transactions of the Week
Citadel buys in Muskegon to build in Grand Rapids | More... |
TV Transactions of the Week
TV dealing resumes...offshore
| More...
|


Transactions
WPXS-TV St. Louis (Mount Vernon IL) from Equity Broadcasting Corp. to Word of God Fellowship Inc.

WXLW-AM Indianapolis IN from Pilgrim Communications LLC to Raven Broadcasting Inc.

WKZE-AM & WKZE-FM Poughkeepsie NY (Sharon CT, Salisbury CT) from Johnson Development Inc. to Willpower Radio LLC.

| More... |


Stock Talk
Stocks mixed before 3-day weekend
Inflation fears from a government report showing a jump in wholesale prices kept a lid on stock prices on Friday, although a decision by regulators to keep certain pain killers on the market gave a boost to drug stocks. The Dow Industrials (which includes both Merck and Pfizer from the drug sector) rose 31 points, or 0.3%, to 10,785.

Radio stocks were basically flat. The Radio Index was off 0.070, or 0.03%, to 220.913. There were no big movers. Regent was up 1.8% and Viacom was down 1.3%.

US stock markets are closed today in observance of Presidents Day.


Radio Stocks

Here's how stocks fared on Friday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

41.36

unch

Jeff-Pilot

JP

48.80

-0.34

Beasley

BBGI

17.11

+0.12

Journal Comm.

JRN

16.38

+0.10

Citadel CDL
13.87 -0.04

Radio One, Cl. A

ROIA

13.92

-0.07

Clear Channel

CCU

34.20

-0.05

Radio One, Cl. D

ROIAK

13.88

-0.07

Cox Radio

CXR

16.00

-0.17

Regent

RGCI

5.15

+0.09

Cumulus

CMLS

14.81

-0.10

Saga Commun.

SGA

16.17

-0.10

Disney

DIS

29.06

-0.29

Salem Comm.

SALM

23.15

-0.29

Emmis

EMMS

19.05

+0.02

Sirius Sat. Radio

SIRI

5.87

-0.12

Entercom

ETM

33.27

+0.12

Spanish Bcg.

SBSA

10.18

+0.02

Entravision

EVC

8.41

+0.11

Univision

UVN

27.54

-0.16

Fisher

FSCI

50.52

-0.47

Viacom, Cl. A

VIA

36.58

-0.48

Gaylord

GET

42.80

-0.59

Viacom, Cl. B

VIAb

36.19

-0.50

Hearst-Argyle

HTV

25.79

-0.06

Westwood One

WON

24.76

-0.11

Interep

IREP

0.65

unch

XM Sat. Radio

XMSR

32.62

-0.63

International Bcg.

IBCS

0.01

unch

-

-

-

-

-



__UNSUB__ to this email service.
Bounceback

Send Us Your OpinionsWe want to
hear from you.

This is your column, so send your comments to [email protected]

This reader reacts to Clear Channel Radio LA's oversold debacle
| More... |

John C. Halford
Vice President - Market Manager
Triad Broadcasting
West Virginia / Virginia


Promotion & Marketing


How about some spots promoting free radio?
You've heard the spots from NAB and a few big radio groups with recording artists saying that they like radio. But they really don't say anything that tells consumers why they should prefer AM and FM over satellite radio or any other competitor. At Genesis Communications' WWBA-AM Tampa, Production Director "Tool" (Matthew Ternes) took up a challenge from his GM and created this spot pitching free radio against all of the costs associated with satellite radio. The spot is also running on Genesis' WAMT-AM Orlando and the company is making it available for other broadcasters to download from RBR. The voice artist, by the way, is John Young in Atlanta. Genesis refuses to air any spots for XM or Sirius and has its stations cover any satellite radio spots scheduled in syndicated programs that air on its stations.

Download the Spot: To save the mp3 for your stations use, just right click on the audio link above and select "Save Target As"

RBR's challenge: What have you got? There are lots of other creative people out there at radio stations. Create your own spot to promote terrestrial radio and sending us an email ([email protected]) letting us know about it. Then we'll upload your mp3 file and share it with the rest of radio.


Upped & Tapped

Promotion in Philly
Greater Media Philadelphia has promoted Bob DeBlois from General Sales Manager to Station Manager at WPEN-AM.


International

British viewers the most to illegally download US shows
According to a report from web tracking firm Envisional, 18% of illegal downloads of US TV shows were from within the U.K. It estimates 80,000 to 100,000 people in the U.K. downloaded TV shows from the web. The report also said illegal TV downloads increased by 150% in the last year. Envisional said in its report: "in effect, the Internet is now a global video recorder - - perhaps more accurately, a free global PVR or TiVo."


More News Headlines





RBR Radar 2005
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Problem returns: Advertisers avoiding black radio
If you thought the era of "no-Urban" dictates was over, think again. Radio One's COO Mary Catherine Sneed says she's seen growing instances in the past six months of advertisers excluding black-formatted stations from ad buys, although the discrimination is now more subtle than telling buyers not to place the ads on Urban stations. CEO Alfred Liggins now concedes that trying to make the two big rep companies compete for his business by having Radio One's stations split roughly 50/50 between Katz and Interep hasn't worked out as he'd hoped, and may actually be costing Radio One some national business. But he also notes that he has limited options. He sees a built-in negative from Katz being owned by a major Urban radio competitor, Clear Channel, but there's also the negative that Interep is a smaller player in the national rep business. "We're gonna do something," Liggins said.
02/18/05 RBR #35

Q1 pacings strong for Entravision
You may be hearing complaints about softness from mainstream broadcasters, but the Spanish sector is still growing by leaps and bounds. In his quarterly conference call, Entravision CEO Walter Ulloa said that Q1 pacings are strong, with TV revenues expected to be up 7-8% and radio 10-11%. Asked about the likelihood of English radio giants Clear Channel and Viacom/Infinity flipping more stations to Spanish formats, Ulloa said he anticipated more flips of underperforming English stations, but he also noted that the two companies seem to be focused on just a couple of Spanish formats, so he didn't sound particularly worried about the new competition. 02/18/05 RBR #35

CC Radio/LA apologizes for oversold problem; agencies not happy
Less is More a big problem in LA? Less is making a mess there, say some. The Clear Channel Radio LA cluster was "wildly oversold" to clients in January. A corporate letter went out to all the advertisers, apologizing. And they blamed it on everything, including the heavy rains and electrical blackouts for avails systems malfunctions. Said an RBR/TVBR source: "I heard they completely knotted up the market, I heard through May. I heard they wildly oversold January. A letter went out from one of the cluster managers, I think it was Charlie Riley, there to all the clients, two pages with a full page letter of apology, explaining why they oversold and what they're doing to correct it and what was the reason for it. ,,, I think they have less credibility than...I don't remember anybody with less. Their salespeople, their agendas are so obvious. It's all about them. They don't listen to advertisers, they don't listen to agency needs. They've got big, big Cxxky people at the very top here who walk around with a frickin' entourage like Kobe. CC Radio CEO John Hogan didn't return request asking for comment.
02/18/05 RBR #35

Fritts confirms early exit
Although RBR/TVBR published his early retirement plans weeks ago the NAB's Executive Board let Eddie Fritts pick his own time to announce that he would be stepping down early. Rather than staying through to the end of his current contract, which runs through April 2006, Fritts will leave just as soon as his successor as President and CEO is selected - - allowing the formal search to begin in earnest. The question is will the new NAB chief come inside or outside the beltway. Fritts recommends inside the best avenue since you got to know where the bodies are buried. When we reminded Fritts that he was not from inside the beltway when he got the job 23 years ago, he laughed. "Yeah, they made a bad hire back then," Fritts quipped.
05/17/05 RBR #34


Visit MediaHeadHunters.com
Deal Maker
W.B. Grimes & Company is seeking a "deal maker" to head up its Broadcast Brokerage Division. You must have passion for sales, solid broadcast background, and an active rolodex. Commission-based position with exceptional earnings potential. Relocation not required.

News Director
WLPO/WAJK/WKOT, LaSalle, IL - Established stations in the Midwest looking for the journalist of integrity and understands what local means to a news department with experience to encourage others on staff. LaSalle is a great market and excellent company benefits. EOE.

See Radio Careers for more info.
Find Your Radio Career

Post Your Companies Job Openings


Other Links
©2005 Radio Business Report/Television Business Report, Inc. All rights reserved.
Radio Business Report -- 2050 Old Bridge Road, Suite B-01, Lake Ridge, VA 22192 -- Phone: 703-492-8191