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Volume 23, Issue 40, Jim Carnegie, Editor & Publisher
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Monday Morning February 27th, 2006
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Radio News ®
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 SBS signs for PPM
Arbitron announced Spanish Broadcasting System has entered into a multi-year, multi-market agreement for Portable People Meter audience measurement services when deployed in its New York, Los Angeles, Chicago, San Francisco and Miami markets. Said Raul Alarcon Jr., SBS CEO, "We are willing to make this commitment to PPM as the new currency for radio in order to provide our advertisers with the most accountable measures possible of our growing audiences. We are counting on the PPM to enhance the credibility of our programming and the value of these audiences in the eyes of our advertisers. "Should PPM come to Miami as part of Arbitron's 'radio-first' initiative, we also intend to encode our TV station to uncover important opportunities for cross-promotion with our radio stations in that market." "I commend the forward thinking of Spanish Broadcasting System for signing for PPM and embracing change for the future," said Kathy Crawford, president local broadcast, Mindshare. This is the second announcement of a radio broadcaster signature on a contract for PPM ratings services (Beasley Broadcasting signed on 1/31). Arbitron has been working to secure a critical mass of stations and agencies to allow it to go forward with PPM. To date, they've announced national agency signings by Zenith Optimedia, Havas MPG, Starcom MediaVest, Mediacom, Carat USA, WPP and Interpublic. Among local and regional agencies, we announced Harmelin Media, FogertyKleinMonroe, Love Advertising, Mediagraphix, Mayo Seitz Media, and The Star Group. These agencies account for 75% of national radio ad dollars.
 Ulloa pleased with Entravision's 2005
With Entravision's net revenue increasing to 73.2 million from 68 million in Q4 and to 259.1 million for the year, an increase of 21.9 million, Chairman and CEO Walter Ulloa had a lot to be happy about: "For fourth quarter and full year 2005, once again we have outperformed the industry. We ended the year with solid growth. Both our radio and television divisions exceeded our fourth quarter guidance; our outdoor division hit the top of our range. We continue to benefit from strong, increased interest from both new and current advertisers." All three of the businesses recorded impressive for the year, outperforming their respective industries. "During the year, we took steps to further strengthen our operating management, our content and our sales and marketing resources. We are benefiting from a vibrant Hispanic market that continues to expand in terms of population, purchasing power and importance to advertisers. While these trends are fueling our growth, we have continued to convert our revenues into improving cash flows and margins through an efficient operating structure and commitment to cost discipline." Bear Sterns' Victor Miller agreed, "Entravision Revenue/Cash Flow Ahead Of Estimates: Revenue of 73.2 million was 7.5% or 5.1 million higher than the $68.0 million reported in 4Q 2004 and 4.4% ahead of our 70.1 million estimate Revenues outperformed guidance across all segments. EBITDA of 24.9 represented growth of 11.9% or 2.6 million, also ahead of our 23.0 million estimate. 4Q TV revenues were up 8%, compared to a 6% decline for the industry. EVC's radio stations also outperformed with revenues up 5.6%, versus a decline of 3% for the industry. We attribute this outperformance to ratings improvements for both TV and radio. So far, World Cup sales are going well and EVC estimates that 56% of the World Cup revenues booked are incremental. Also, political should be strong in 2006, with states including California, Texas and New Mexico seeing hot races."
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 Finding young males where they live
Double Fusion has a job to do - - it's going to be selling ads for video gamemaker Midway Games. The ads will not be permanent - - they'll be built into on-line versions of games mostly in development, and one that's already out, called "Stranglehold." There are all sorts of options, starting with a one that nods to one of the most primal forms advertising still in use - - the billboard. Signs and billboards can be placed in the virtual landscape. Also on the sales menu will be audio mentions and actual 3D depictions of products. An interface between Midway and Double Fusion means that these ads will have a term limit, and can be replaced with others. Midway also can write permanent ads into the game code.
RBR observation: It's the missing demo - - young males. Manufacturers would love to find them, figuring that this is exactly the time to establish brand habits that may well last a lifetime. Broadcasters often seem to have trouble finding these guys, but they're right there in front of the TV - - it's just that they'd rather hold a controller than a remote; they don't want to watch, they want to do it. Radio still has a good shot at them once they get a drivers license, but TV may have to wait until they outgrow the games, or until it figures out how to be a less passive experience. These young bucks should definitely be kept top-of-mind for all broadcasters as upcoming improvements offered by the conversion to digital are developed.
Law & Order comes to ABC News Radio
Speculation goes to truth and justice as RBR previously reported 02/13/06 RBR #30
with former Sen. Fred Thompson, R-Tenn, to the post of special program host and senior analyst starting this spring. His first case will be hosting a Memorial Day report on American’s brave service men and women. The move will see Thompson in a slow turn to replace Paul Harvey. Thompson knows his way around Capitol Hill and Hollywood. Thompson has been a figure on the national political stage since the 1970s, when he served as minority counsel to the Senate Select Committee on Presidential Campaign Activities, more commonly known as the "Watergate Committee," from 1973 to 1974. In November 1994, Thomson was elected as a Republican to the United States Senate from Tennessee. He served until 2003. In Hollywood with film credits in films of ‘In the Line of Fire’ and ‘Die Hard II’ and today serving as DA on Wednesday evenings on NBC’s Law & Order.
RBR observation: What do Paul Harvey, Casey Kasem, Howard Stern and Rush Limbaugh have in common? Each is such a unique radio personality that they can't be replaced. Thompson has a unique voice for radio and style but also has access to the press and to political leaders as well. RBR sees Thompson being utilized more than just a Harvey replacement as all know TV programs do get cancelled or stars do get replaced as Thompson is the third DA on the Law & Order series. ABC you done good and the rewards to the affiliates an easy sell as Thompson is a known face and voice in the place.
Three out of four favor a la carte
More than three out of four Americans, if they had their druthers, would elect to cherry-pick their own personal cable television channel lineup, rather than have bundled channels as assembled by the cable operator, according to an AP/Ipsos poll taken last December. Two thirds also think there is too much sex on TV; and two thirds think there is too much violence. As to the cost, only 5% said they weren't sure, what's clear from the results is that, as a mass, Americans aren't sure. 27% though a la carte would be more expensive than bundled options (that's what the cable industry is trying to explain), 42% think it would be cheaper, and 26% think it would cost the same. As for paying 1.99 to download a specific show to an MP3 of iPod, 19% were somewhat or very interested, compared to 81% not very interested or not at all interested. If a possible download business received a lukewarm reception, the entrance into the business of competitive telco offerings was well received, with 65% interested, 34% not so interested.
RBR observation: The question that wasn't asked is this: Would you rather pay more money for less options under an a la carte system or would you rather go to the minimal trouble to learn to operate existing channel blocking and V-Chip technology and as a reward get more channels for less money? The a la carte movement is gathering steam on Capitol Hill and at the FCC, and the public is somewhat more than casually inclined to go along for the ride. The cable industry obviously has its work cut out for it as it tries to head off a la carte at the pass.
 Let the gaming ads begin, conditionally
Are you thinking about accepting ads for a casino in your area? Or do you have a casino operator looking to buy time on your station? In general, such a flight is an FCC no-no, but there are exceptions when the client is an Indian tribe with an operation sited on tribal lands. Attorney Gregg P. Skall of Womble Carlyle Sandridge & Rice explains:
| Read a legal eagle view of gaming ads here |
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| Wall Street Media Business Report TM |
Entravision Q4 revenue up 8%
Entravision Communications' had a fantastic Q4, with net revenue increasing to 73.2 million from 68 million in Q4 '04, an increase of 5.2 million, or 8%. The overall increase came mainly from the company's television side, which was up 3 million. The increase was due to increased local and national ad sales, primarily due to an increase in rates.
| Read More... |
 Off-Olympics year blamed
for Westwood One decline
The Summer Olypmics of 2004 were good to radio network operator Westwood One (WON). They were, of course, MIA in 2005, and the net said that's the reason for an 0.8% decrease in revenues for the 2005 compared to 2004. The web of webs brought home 557.8M, 4.4M less than the previous year. Fourth quarter was down 3.1%, from 151.6M to 147.0M. WON said a business surge which the company enjoyed during the final fourth of 2004 failed to materialize as expected this time around. Net income for the year went from 165.6M down to 155.3M and from 51.1M to 44.3M for the quarter. WON blamed marginal revenue declines coupled with increased programming costs and other business expenses. Looking ahead, WON is expecting revenue loss coupled with outlay increases tied to upgrade strategies, which will likely result in double-digit losses for Q1 2006.
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Ad Business Report TM
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Cramer-Krasselt wins EFFEN Vodka
Planet 10 Spirits has awarded its estimated 4million dollar EFFEN Vodka business to Chicago independent Cramer-Krasselt. Planet 10 Spirits is a joint venture between Barton Brands and jstar Brands. The fastest growing luxury vodka in the U.S., EFFEN Vodka has achieved cult status over the past three years through word of mouth and grass roots marketing. The EFFEN Vodka account will include brand planning and research, advertising and media. Additionally, CKPR, C-K's PR subsidiary, will manage additional ways to generate buzz by amplifying promotions and personalities associated with EFFEN Vodka, including an official sponsorship of IMG Fashion Weeks. Cramer-Krasselt was selected for the EFFEN Vodka business based on its award-winning spirits work and an expertise with personal discovery brands. The agency is known for its breakthrough work for brands like Steve Madden, Victor Hotel and Corona.
 Advertising fun
Here are some stories from around the nation that point out some of the travails broadcasters may run into simply trying to run the business. * Actor/director/activist Mike Reiner is under attack in California. He is head of the California Children and Families Commission, and concurrently was pushing a ballot initiative in the state to promote preschool for four-year-olds. The problem is the expenditure of 23M in state tobacco settlement funds to pay for television ads. The ads promoted preschool, and coincided with activity from plugging "Preschool for All," Proposition 82. According to the Associated Press, some say it was improper, Reiner says it wasn't. The jury is still out on this one. * In Wyoming, according to the Jackson Hole Star Tribune, local Rawlins WY radio stations did what radio stations do all the time. It filled a hole in the clock by running some :30 PSAs. However, they were from the Marijuana Policy Project and were pushing legalization of the controlled substance for medical purposes. A DJ put them on; a higher up at owner Mount Rushmore Broadcasting put an immediate stop once the complaints started to roll in. * This didn't happen on a broadcast facility, but it could have. A retailed in Massachusetts is red-faced after offering a steal of a deal for sleeveless undershirts - - three for 5.98 is a good price, right? Unfortunately, according to the Associated Press, the store used display space in a local flier to advertiser the merchandise for sale as "wife beaters." The store certainly got attention - - and as a result is now spending its time offering apologies.
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| Media Markets & Money TM |
Davidson soups up Louisville cluster
Fast-growing Davidson Media Group already had deals in the fire for a pair of Louisville AMs. It turns out that was just the beginning as another pair of deals will take the cluster up to superduopoly status. According to Todd Fowler of the brokerage division of American Media Services, the total paid will be 2.1M. The stations are WTMT-AM Louisville KY, coming from Jefferson Broadcasting Company, which, according to documents filed with the FCC, accounts for 1M of the total, and WTSZ-FM Eminence KY, coming from Metro East CBC for 1.1M. Both stations have been in an LMA/option with LB Radio of Louisville since the summer of 2003. Davidson's other acquisitions are WLOU-AM and WLLV-AM, coming from Mortenson for 2.65M.
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| Washington Media Business Report TM |
 FCC on the warpath,
but other shoe undropped
The ongoing battle being waged by the FCC to make sure regulations governing children's programming on television are being followed continued late last week, but the Commission was silent on the bigger battle over protecting children from improper programming. Five television stations were caught up in the smaller-scale kiddy dragnet. One was let off the hook entirely, two received cash-free admonishments and two were fined in excess of 10K for various infractions and oversights regarding children's commercials and program reporting. The other shoe is indecency, and widespread reports indicate the FCC is finally ready to put some pending cases before the public, all the way up to the infamous Jackson/Timberlake Super Bowl 2004 incident. Friday came and went with no word. Stay tuned...
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| Internet Media Business Report TM |
 Arbitron and comScore Media Metrix
releases Dec. online radio ratings
More than seven million different people, age 12 and older, tuned to the online radio networks measured by comScore Arbitron during average week in December, Monday to Sunday from 6AM - 12 midnight. This is the first time the Cume audience for the five measured networks surpassed seven million listeners during an average week in a given month. The midday AQH audience - listening Monday through Friday from 10AM-3PM - for the online radio networks in the comScore Arbitron Online Radio Ratings service reached a new high of 1,832,300 people, age 12+. The December report of the comScore Arbitron Online Radio Ratings service rated America Online's AOL Radio Network; Yahoo! Music; Microsoft's MSN Radio and WindowsMedia.com; Live365; and Clear Channel Online Music and Radio during an average broadcast week in the month of September. All the networks are represented by Ronning Lipset Radio.
| View the Chart |
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| Monday Morning Makers & Shakers |
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Transactions: 1/16/06-1/20/06
The biggest deal filed during the young year was basically an estate settlement rather than a traditional transaction. Otherwise, the action has been sparse and modest so far. Only six documents hit the FCC transaction database in the year's third week, with none at all on the TV side.
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Total
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Total Deals
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6
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AMs
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8
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FMs
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2
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TVs
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0
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| Value |
17.17M
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| Complete Charts |
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Radio Transactions of the Week
Closing the book on Chapter 11
| More... |
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TV Transactions of the Week
TV took a break this week. |
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| Transactions |
19.5M WFXB-TV Myrtle Beach-Florence SC (Myrtle Beach SC) from GE Media Inc, (James M. Everett) to Springfield Broadcasting Partners, a subsidiary of Bahakel Communications Ltd. (Cy N. Bahakel, Beverly B. Poston). 1M escrow, balance in cash at closing. 15K allocated to non-compete. LMA 1/23/06. Stn is Fox affiliate on Channel 43. [File date 2/7/06.]
4.75M WTJS-AM/WTNV-FM & WYNU-FM Jackson TN (Jacksoin, Milan TN) from Capstar TX LP, a subsidiary of Clear Channel Broadcasting (Mark Mays et al) to Forever South Licenses LLC, a subsidiary of Forever Communications Inc. (Kerby Confer, Donald J. Alt, Christine Hillard et al). Cash. Incidental overlap with buyer's out-of-market WFGE-FM Murray KY. LMA 3/1/06. [File date 2/6/06.]
2M WQLV-FM Harrisburg-Lebanon-Carlisle (Millersburg PA) from Hepco Communications Inc. (James F. Hepler) to Richard L. Cooper d/b/a Cooper Communications. 100K escrow, 1.3M cash at closing, 600K note. LMA if not closed by 3/31/06. [File date 2/6/06.]
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| Stock Talk |
Steady as she goes, boys
After trying to plough forward in a sea of red ink on Thursday, most broadcast stocks managed to stay above water as the week closed out on Wall Street. Unfortunately, every silver lining has a cloud, and in this case, the stabilized stocks measured their good fortunes in pennies, while the handful of losers generally had to reach into their pocket for some silver to get a 3-D representation of their own Wall Street travails.
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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
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ARB
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38.80
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+0.17
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Hearst-Argyle
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HTV
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24.09
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unch
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Beasley
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BBGI
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13.72
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+0.12
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Interep
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IREP
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0.24
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+0.04
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| CBS CI. B |
CBS |
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24.53
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-0.51
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Jeff-Pilot
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JP
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60.91
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+0.28
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| CBS CI. A |
CBSa |
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24.54
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-0.46
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Journal Comm.
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JRN
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12.52
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-0.03
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| Citadel |
CDL |
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11.30 |
-0.10 |
Radio One, Cl. A
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ROIA
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8.85
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-0.17
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Clear Channel
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CCU
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28.15
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+0.05
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Radio One, Cl. D
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ROIAK
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8.81
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-0.28
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Cox Radio
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CXR
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13.92
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+0.02
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Regent
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RGCI
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4.50
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-0.01
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Cumulus
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CMLS
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11.52
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+0.04
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Saga Commun.
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SGA
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9.88
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-0.01
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Disney
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DIS
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27.98
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+0.27
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Salem Comm.
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SALM
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14.00
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-0.09
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Emmis
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EMMS
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16.55
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+0.04
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Sirius Sat. Radio
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SIRI
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5.18
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-0.04
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| Entercom |
ETM
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28.00
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-0.69
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Spanish Bcg.
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SBSA
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5.71
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-0.07
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Entravision
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EVC
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7.40
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+0.30
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Univision
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UVN
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33.91
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-0.07
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Fisher
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FSCI
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42.64
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+0.04
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Westwood One
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WON
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11.30
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-2.65
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Gaylord
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GET
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45.32
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+0.09
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XM Sat. Radio
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XMSR
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22.14
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-0.10
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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]
A reader writes in from Michigan with an idea...
 I hope I find time to act on a commercial I can hear on every radio station in America - - it would sound something like this. "Close your eyes and imagine that you are holding this tiny little box. Don't worry, your little box can go where you go - - to the beach, to the office, in the car - - even on your walk with the dog. And, this little box will provide entertainment no matter your taste. Be a part of a talk show, or sing along with your favorite format because your choices will be endless. And, here's the best part, it's free!! Listen as long as you want, wherever you want, to whatever you want. This tiny box is called a radio. And, if it were invented today, you would be just as impressed and marvel at all radio can do and does do every single day. And, it's free." Perhaps that should be our "industry" message. The truth about radio and what a fabulous invention it truly is.
Trish MacDonald Garber
MacDonald Garber Broadcasting
Traverse City, Michigan
A reader writes in with a poser...
When Citadel takes over the ABC stations, do they have to get new call letters for the stations, or will the TV that ABC Disney will retain keep the calls? Good one, eh?
Dwight Douglas
Ok, Dwight to the best of our knowledge it's a matter of negotiation. There is nothing saying that the calls can't stay with the radio and the TV stations at the same time, even though they are no longer co-owned, and for all we know, Disney might like the idea of keeping the ABC name out there on the radio dial, even if the stations aren't theirs any longer. If either of the two companies wants separation, then it'll probably be in the contract that one or the other will have a certain amount of time to switch calls, most likely Citadel. The contract may also stipulate that ABC will set the FCC wheels in motion to get them changed before closing. - - Editor
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Below the Fold
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Wall Street Media Business Report
Entravision Q4
Revenue up 8% had a fantastic Q4, with net revenue increasing to...
Off-Olympics year
Blamed for WW1 decline...
Media Markets & Money
Davidson soups up
Louisville cluster adds another pair of deals...
Washington Media Business Report
FCC on the warpath
Ongoing battle being waged over children's programming...
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Stations for Sale
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Alaska Gold Mine!
13 Stations with excellent cash flow - 8X Trailing BCF!
Cliff at Clifton Gardiner & Co
(303)758-6900
[email protected]
Power Increased...
Price Reduced!
Nevada C1. Booming economy, expanded market, growing sales.
MCH Enterprises, Inc.
[email protected]
(805) 237-0952 Direct
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RBR Radar 2005
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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 FCC and/or CBS ready to
sound off on indecency?
According to numerous reports, the long-awaited next round in the indecency wars is about to commence. Decisions on 40-some separate cases are ready to be unveiled. The big enchilada will be the refusal of the Commission to back down from its 550K action against CBS Television for the infamous 2004 Super Bowl incident featuring Janet Jackson.
RBR observation: After getting hit with a number of FCC fines, then-CBS honcho Mel Karmazin vowed to comply and fight but Karmazin is long gone but the fight of this incident continues.
02/24/06 RBR #39
Entercom looking ahead
Things are starting out very slowly in Q1 of 2006, a fact he was not happy about. One of the biggest stories Entercom President/CEO David Field had to tell was a tale that never happened - the acquisition by the group of ABC Radio. A sober disciplined decision deciding to go ahead and blink when Citadel put an extra 100M on the table. Entercom thought that took the deal out of the sensible range. Part of the current difficulties are attributable to tough comps due to prior strong Q1 performance, along with continued woes in New Orleans.
RBR observation: So what categories sell in a disaster zone? As we've said in the past, ladies and gentlemen, this ain't necessarily rocket science. And last the slow first quarter we are hearing from many broadcasters so Entercom is not alone they are in good company. Think it is going to be a long year.
02/23/06 RBR #38
Profiles MP3 Users
Who is listening to the over 50 million MP3 players sold last year? a look at the users of MP3 players and the picture is a good one. The basic demographic profile of MP3 users is: Male 64.4%; Female 35.6%; leisure time preferences of MP3 users include: details for your sales department see
02/23/06 RBR #38
Clear Channel says
corner has been turned
Has weathered the tough year of 2005. The loss of inventory due to its less is more (LIM) initiative caused a 6% loss in radio revenue over the course of 2005, but the positive effect has been an increase in ratings, thanks to stations with less commercials and fewer breaks. Outdoor did well but there's more on the CCU drawing board - - or to put it another way, there will be further stress placed on items already on the drawing board. In particular, CCU execs noted the increased reliance by the automotive category in the Internet.
RBR observation: Weathered the tough 2005 is correct and now the hard work begins as all clear eyes will be on 'LIM' by comparing the apples to apples. The radio medium waits for the Q1 2006 conference call results as many report that pacing for first quarter is way off in many markets and second quarter as of today is so-so.
Publisher note: Wednesday begins the annual 4A's ad agency conference which always brings interesting talk and various road map courses of where and what the agencies will be focusing on beside key issues they are facing in their media world. A special panel on "How to be a Media Mogul : 2006" is scheduled at the up coming 4A's, and Mark Mays will be sitting on this panel but not with other radio executives. This time co-panelists are of the like of Stephen Burke of Comcast Corporation - Mike Shaw from ABC Television Network -Tim Armstrong at Google. The moderator: Randall Rothenberg from Booz Allen Hamilton. This should be lively discussion and yes RBR will report the out come as we will be there and reporting to you - stay with us.
02/22/06 RBR #37
 NAA investing 50M to push newspaper advertising
Not surprisingly, newspaper publishers think that newspapers are the most effective vehicle for advertisers to gain some ROI. The Newspaper Association of America is spending 50M to get that message out.
02/21/06 RBR #36
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Companies Looking
1. Clear Channel RSM in Twin Cities
2. Arbitron Account Manager
3. Sales Rep in Washington, DC
4. Sales Manager for Reno Reps
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