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Radio News ®
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 Arbitron, Nielsen
shutter Project Apollo
Arbitron and The Nielsen Company announced they have terminated the development of "Project Apollo," the proposed single-source, national research service measuring consumer purchase behavior. The two companies had been working on the pilot project since early in 2005. Nielsen spokesman Jack Loftus tells RBR/TVBR it is as simple as there were not enough clients. Loftus said the clients that were participating-[including Kraft, Pfizer, Wal-Mart, Procter & Gamble, Unilever and SC Johnson]-and evaluating the data were not necessarily signed on to the service. "We had asked them to look at the data, evaluate the price-value proposition and tell us if you will agree to support the service, financially," said Loftus. "And we did not get the clients that we needed to sustain a business." Some companies, like P&G had put in some money for the testing, but no confirmation if they had signed on for the service or not. Arbitron CEO Steve Morris said in his quarterly conference call (2/15/08 RBR #32) that a "go - no go" decision on Apollo was coming soon. So, the decision was no go.
Like we've heard before, agencies liked the granular data and the one-stop shop for consumer purchase behavior, but voiced the price was a bit too high. What they wanted was a la carte pricing options. MPG COO Steve Lanzano tells RBR/TVBR: "Regarding, Project Apollo I think it was an ambitious and interesting study that was ultimately shuttered due to lack of long-term funding and commitments by the initial set of participants. It was very expensive and many these companies already use similar (although not as comprehensive) modeling either from an outside company or from within their current Agency network." Susan Whiting, The Nielsen Company EVP, plans on using what they've learned in the trials to improve their own product offerings: "We have learned a great deal from 'Project Apollo,' and I am confident that this work will enable us to provide even higher levels of quality service to our clients."
Westwood One gets cash infusion
The Gores Group LLC, a private equity firm, has committed to investing up to 100 million in Westwood One. The company's long-depressed stock price jumped on the news yesterday, so Gores is already ahead on its deal to buy shares at a buck-75. "This investment is a key element of our strategic process to enhance shareholder value and an important component in satisfying the conditions to closing our proposed agreements with CBS Radio. The investment by The Gores Group in Westwood One represents a significant vote of confidence in the future of our business. Coupled with the new long-term arrangement with CBS Radio recently approved by our shareholders, this transaction enables us to position an independent Westwood One for future growth and success," said WW1 President and CEO Thomas Beusse.
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RBR observation: News of this deal was well received on Wall Street. WW1's stock had been beaten down severely as the company went through a succession of tough quarters. Right now WW1 needs a cash cushion and Bear Stearns analyst Chris Ensley noted that the 100 million from Gores will help alleviate credit concerns as WW1 moves to stand on its own without CBS Radio management. But Ensley is not thrilled with the terms. "Issuing equity at 1.75 is not a great sign, in our opinion.
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 NAB v. RIAA:
Who's best for musicians?
A recent lawsuit is pitting some very big vintage artists (and their estates) against one of the biggest international record companies, Universal Music Group. The lawsuit, according to the Associated Press, seeks a total of 6.7M plus legal costs, and includes Patti Pate and the estates of Sarah Vaughn, Woody Herman, Count Basie, Les Brown, The Mills Brothers and Benny Goodman. The plaintiffs charge they've been cheated for years. The issue arises as bills kick around Capitol Hill on the issue of performance royalties on broadcast outlets. Some on the Hill think the age old symbiotic relationship between broadcast and musicians where content is traded for promotion is not enough, and that a fee to musicians should be added. Other legislators are supporting the Local Radio Freedom Act, which would prevent such a move.' "We welcome the debate over which side has been more 'fair' to artists -- radio stations or RIAA-member companies. America's hometown radio stations expose and promote musicians to 232 million listeners every week. Contrast that with decades-long exploitation of artists by foreign-owned record labels, demonstrated just this month in a $6 million lawsuit against Universal Music Group for 'cheating' artists like Count Basie and Benny Goodman out of royalties."
RBR observation: Would a performance tax directly benefit musicians or would it be a subsidy for conglomerates who were asleep at the switch while the internet was making off with their business model? Obviously this group of artists has no reason to believe they will be treated fairly by the record companies. And if such a royalty is enacted, record companies will likely drive more and more stations to some kind of talk format while others treat playing music as a commercial and charge by the spin. Maybe musicians do deserve a better shake -- a performance tax isn't the way to make that happen.
Watchdogs respond to recent indecency actions
Regarding fines on just now levied against ABC and Fox for shows that aired back in 2003, network-sponsored TVWatch says that the FCC is stepping into territory that should be the domain of parents -- and says it has stats to prove it. Meanwhile, the executive director of the Center for Creative Voices in the Media argues that the FCC is broadening the so-called "gray area." "Americans continue to believe that parents -- and not the government -- should control television programming in the home," said TV Watch Executive Director Jim Dyke. "And, in fact, parents do take charge of their children's television-viewing -- by monitoring programs, observing ratings, setting parental controls and using technology like DVRs and products like DVDs. Meanwhile, our government continues to usurp the role of parents by responding to activists' 'astroturf' campaigns intended to inflate complaints using duplicate submissions and recruiting people who don't even bother to view the programs they complain about. The result is millions in fines against local TV stations and reduced programming choices for all Americans." The organization says 60% of Americans oppose government intervention in program content. Jonathan Rintels of CCVM says that use of imprecise language in the forfeiture orders is what opens the door to increased enforcement. He notes the use of words like "graphic," "repeated pandering," "titillating" and "shocking" that offer no substantive definition of exactly what is or is not offensive.
RBR observation: Allow us to pile on. When considering the phrase "arbitrary and capricious," what could be more so than taking the fine levied at ABC for 2003 "NYPD Blue" and charging each and every originally-indicted affiliate 27.5K, and then turning around to Fox's 2003 airing of "Married by America," charging only 7K a pop for that one, and then reducing the hit from 169 to 13 stations? Does this mean that the fare for a bare butt is 27.5K, while pixillated strippers are priced at 7K for the bargain shopper? And how come almost all of the Fox affiliates were let go, but none of the ABC affiliates were? Producers trying to stay out of trouble and constitutional scholars want to know.
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Ad Business Report TM
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Debut partners with Boswell and MJI Interactive
Debut Broadcasting Corporation may specialize in small market radio, but it announced deals with two new partners that it says will bring top 100 market technologies to its Debut Broadcasting network to increase revenue producing capabilities. Boswell Media, a broadcast, Internet and events marketing company, will provide an integrated advertising platform for the Web sites of Debut-owned radio stations. Additionally, MJI Interactive's Mobile Xpress Messenger service will allow Debut to enhance listener interaction with two-way text messaging between radio stations and listeners, and improving advertiser/consumer interaction. "Through these new agreements Debut gains access to new media enhancements, namely Internet and short message services (SMS), which allow us to integrate new media into our existing sales model. This makes us the first media sales organization in our markets to offer this level of integration to our advertising partners," said Steven Ludwig, CEO of Debut Broadcasting. Publicly traded Debut currently owns stations in the Greenville, MS market and has said it will be announcing further acquisitions. It also owns Impact Radio Networks.
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| Media Business Report TM |
 One less afternoon newspaper
For the second time in recent months, E.W. Scripps Company has shut down a struggling afternoon newspaper. The Albuquerque Tribune published its last issue on Saturday after Scripps failed in efforts to find a buyer. The death of the 86-year-old daily did not go unnoticed. Gov. Bill Richardson had declared Saturday (2/23) "Albuquerque Tribune Day" in New Mexico. At least one group of local investors had tried to raise cash to buy the Tribune after Scripps announced last August that it would either be sold or shut down, but no deal ever came together. Circulation had fallen to less than 10,000 and any potential buyer would have had to try to survive without the joint operating agreement with much larger morning newspaper, the Albuquerque Journal, which was due to be dissolved. In a similar move, Scripps shut down the Cincinnati Post on New Year's Eve, after also failing to find a buyer who wanted to own an afternoon newspaper running a distant second place to the dominant morning daily (1/3/08 RBR #1).
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| Media Markets & Money TM |
Salem spins out of Youngstown
The station, WHKZ-AM, is actually in Youngstown's little sister city, Warren OH. Top Religious radio group Salem Communications is sending it into the noncommercial realm via a deal with Pentecostal Temple Development Corporation. Headed by Rev. Loran E. Mann, it is acquiring the station for 550K, according to broker Jamie Rasner of John Pierce & Co., who handled the transaction.. It will mark the second location for Pentecostal, and the second time it has bought from Salem -- it already owns WGBN-AM, just outside of Pittsburgh, the market just to the south and east of Youngstown-Warren.
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| Washington Business Report TM |
Honig calls for multilingual EAS DH
Natural disasters don't care what language its victims speak, making it all the more necessary for the nation's communications system to take into account non-English speaking communities when disasters strike. At an EAS summit in Washington, Minority Media and Telecommunications Council Executive Director called for a system of "designated hitters" -- stations broadcasting in a language spoken by significant portions of the local population. Advance plans would name a DH for all such groups. This would be part of a multilingual universal emergency broadcast plan, or UEB. Additionally, Honig would not wait for the President or a Governor to activate a local EAS system -- rather, a UEB coordinator would be named at the local level with the power to activate a local EAS system without waiting for a situation to get the attention of authorities far from the action. Honig suggested such plans should be drawn up voluntarily by local broadcasters, for FCC certification, but would have the FCC impose such a system if necessary. "Multilingual emergency broadcasting isn't rocket science or inter-carrier comp, and it isn't expensive," he concluded. "For our part, MMTC will help you meet the challenge of multilingual emergency broadcasting. Just apply the same can-do spirit that the broadcasting industry has shown in efficiently transitioning to DTV, in avoiding indecency fines, and in preventing the FCC from proposing onerous localism regulations. Oh wait."
 PTC's Dear FCC letter
Perhaps a moment of indecency took place in the electromagnetic spectrum surrounding your very own home, but you didn't notice because you were watching something else or the television set wasn't even turned on. Not to worry. You need only go the Parents Television Council website, where everything you need is right at hand to express your outrage and righteous indignation. We certainly wouldn't want to let people who actually watched the program determine whether it is decent or not. "This is a formal COMPLAINT of indecency on broadcast television," reads a click-and-send form available at the PTC website. "My complaint concerns the PROGRAM ON:" At that point, the offending network, programming, date and time is plugged in. In the case of the 2/15/08 episode of NBC's "Las Vegas," there is a video clip under the heading "Documentation." The complainant can watch it, or not, before sending it in to the FCC.
RBR observation: To get the true measure of public outrage over a given television or radio show, the FCC needs to hire a viral bloodhound who can track down the source of various form complaints -- this goes for viral click-and-send campaigns on media ownership and any other issue as well. For indecency, there should be a tally. It's not that PTC members do not have a right to their opinion -- they certainly do. But we want to know how many complaints trace to PTC, how many to AFA, how many to MIM, and how many are original communications written out of actual concern by a private citizen.
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| Internet Business Report TM |
Interactive ad revenues to reach 147 billion by 2012
The global ad market grew to just over 600 billion in 2007, according to The Kelsey Group. The firm expects global ad revenues to grow at a compound annual growth rate (CAGR) of 2.7% and reach 707 billion in 2012, propelled in large part by considerable growth in the interactive segment. According to "The Kelsey Group's Annual Forecast (2007-2012): Outlook for Directional and Interactive Advertising," interactive ad revenues will increase yearly from 45 billion in 2007 to 147 billion globally in 2012, representing a 23.4% CAGR. Interactive advertising, which comprises search (including local search), display advertising, classifieds and other interactive ad products, grew its share of global advertising revenues from 6.1% in 2006 to 7.4% in 2007. By 2012 Kelsey Group analysts expect the interactive share of global ad spending will reach 21%. During the forecast period (2007-2012), the US will see interactive advertising revenues grow from 22.5 billion to 62.4 billion (22.6% CAGR).
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| TVBR TV News |
 Clear Channel TV sale
reportedly resolved...almost
There's no official confirmation yet from either side, but both the Wall Street Journal and New York Times websites reported yesterday that Clear Channel Communications has settled its dispute with Providence Equity Partners over the sale of the Clear Channel Television group, reducing the price by 100 million to 1.1 billion bucks. That would let the transaction, which already has FCC approval, go to closing and then Providence can go ahead with deals it has already cut to sell some of the stations to other parties. The new problem, though, is that one of the three lenders, Wachovia, is trying to back out. The New York Times reported that the bank sued Providence last Friday in a North Carolina court, contending that the renegotiated deal negated its previous financing commitment. Will this long-pending deal finally get to the closing table or not? Stay tuned.
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| Transactions |
850K WQLA-FM La Follette TN. 100% of La Follette Broadcasters Inc. from Cherokee Communications Corporation (Clifford Jennings) to Momentum Broadcasting LLC (Norman R. Alpert). 42.5K escrow, 457.5K cash at closing, 350K note. [File date 1/28/08.]
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| Stock Talk |
Up day on Wall Street
Wall Street traders were relieved as S&P reaffirmed credit ratings for two bond insurers. That renewed confidence boosted stock prices, with the Dow Industrials gaining 189 points, or 1.5%, to 12,570.
Radio stocks were helped by good news from Westwood One of a major investor. The RBR Radio Index rose 1.692, or 2.1%, to 80.925. Radio One Class D jumped 9.7% and Class A 8.2%. Westwood One was up 7.8%. Citadel gained 5.6%.
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| Radio Stocks |
Here's how stocks fared on Monday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron*
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ARB
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41.78
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-0.21
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Google
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GOOG
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486.44
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-21.36
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Beasley*
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BBGI
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5.68
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+0.06
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Hearst-Argyle
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HTV
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22.59
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+0.06
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| CBS CI. B |
CBS |
 |
25.00
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+0.24
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Journal Comm.
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JRN
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7.35
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-0.04
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| CBS CI. A |
CBSa |
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24.92
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+0.15
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Lincoln Natl.
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LNC
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54.33
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+0.41
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| Citadel* |
CDL |
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1.50 |
+0.08 |
Radio One, Cl. A
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ROIA
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1.45
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+0.11
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Clear Channel*
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CCU
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32.14
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-0.24
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Radio One, Cl. D*
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ROIAK
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1.47
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+0.13
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Cox Radio*
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CXR
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11.76
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+0.23
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Regent*
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RGCI
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0.95
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-0.08
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Cumulus*
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CMLS
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5.82
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+0.25
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Saga Commun.*
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SGA
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5.97
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+0.02
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Debut Bcg.
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DBTB
|
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1.02
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unch
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Salem Comm.*
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SALM
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3.53
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+0.07
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Disney
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DIS
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32.89
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+0.32
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Sirius Sat. Radio
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SIRI
|
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3.04
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+0.12
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Emmis*
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EMMS
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2.99
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unch
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Spanish Bcg.*
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SBSA
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1.63
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+0.07
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Entercom*
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ETM
|
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12.30
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+0.17
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Westwood One*
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WON
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1.94
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+0.14
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Entravision
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EVC
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6.09
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+0.21
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XM Sat. Radio
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XMSR
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12.96
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+0.51
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Fisher
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FSCI
|
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31.77
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-0.07
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-
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-
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-
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-
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-
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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]
Saving Radio? This reader thinks that is the wrong approach
 EXCELLENT content! Wrong title! When you get the mindset you are in it to save it you play to "not lose." When you are in it to EVOLVE, you "play to win"! Stop the negative selling of radio as a retracting, shrinking, losing industry or we will succeed. Vision radio evolving, growing, expanding and we will win! One other thing: when we talk to ourselves in the above negative terms, what do we think we are doing to any opportunity we have for positive perception within the larger and more important advertising services? I swear we're like Wyatt Earp shooting himself in the foot. Some gunslingers!
Mike Ginsburg, GM
KLBN-FM/KXOB-FM/
KGST-AM/KOQO-FM
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Below the Fold
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Ad Business Report
Debut partners with
Boswell and MJI Interactive says will bring top 100 market technologies...
Media Markets & Money
Salem spins out of Youngstown
Station, WHKZ-AM, actually in Warren, is sending it into the noncommercial realm...
Washington Business Report
Honig calls for
Multilingual EAS DH, natural disasters don't care what language it speaks...
Internet Business Report
Interactive ad revenues
To reach 147 billion by 2012...
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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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Radio Media Moves
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Upped in PA
Entercom has named Ryan Flynn Vice President and General Manager of its four-FM cluster in Wilkes-Barre/Scranton, PA. He has been with the operation since 1998, most recently as Director of Sales.
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More News Headlines
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Mark your calendar
The week of March 3, 2008 has been officially proclaimed "Country Radio Week" by the Mayor of Nashville, Karl Dean. His Honor will present the signed and sealed official document to Country Radio Broadcasters Inc. Executive Director Ed Salamon and President Becky Brenner when Mayor Dean welcomes attendees to the 39th Country Radio Seminar on March 5th.
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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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Saving Radio - Part 2
It's time to think out of the box, as radio cannot live by analog alone. But if you do, and if you must, then fall on your sword now and end it quickly. If you want to fix the box then think outside of it with technology and the internet...Final points recommended to Save Radio - see point 10 entitled: This one is for consolidators - "You don't need seven stations in a market to make money.... If you want to do seven things at one time, the recommendation is to join the circus and become the side show juggler."
02/25/08 RBR #38
Ancient McCain
FCC dealings dredged up
The flap over a New York Times story alleging a possibly improper relationship between presumptive Republican presidential nominee John McCain (R-AZ) and a communications lobbyist has sent reporters to the archives, where McCain's fingerprints have been found on FCC issues involving a block of FM CPs and a Pittsburgh television station.
02/25/08 RBR #38
XM/Sirius has 'em chattering
Another analyst thinks it's crazy that the DOJ/FCC have not welcomed the pending merger of XM/Sirius with open arms. Meanwhile, the American Antitrust Institute filed against the merger, calling for an injunction to stop it. It said this that satellite radio is clearly a relevant standalone market, that "this is a merger to monopoly," and that it will ultimately result in higher prices, more commercials, less innovation and decreased choices for consumers.
02/25/08 RBR #38
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RBR Classifieds
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Director of Sales
Are you tired of working for corporate radio? Are you ready to control your own destiny by leading our sales team to success? Do you thrive on helping people meet their goals? We are a privately-owned radio cluster in the Northeast. We need a top-notch DOS with the vision and ability to create the ideal sales environment and strategically guide the efforts of sales management & staff. Details on benefits etc., and to send your resume, in confidence see Radio Careers below.
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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