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Volume 23, Issue 41, Jim Carnegie, Editor & Publisher
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Tuesday Morning February 28th, 2006
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Radio News ®
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 Citadel bondholders
claim default over ABC deal
Citadel Broadcasting has notified the SEC that an attorney claiming to represent holders of 31% of one of its bond issues has sent the company a letter claiming that its deal to acquire ABC Radio (2/7/06 RBR #26) constitutes a default. Citadel denies that's the case and says it will fight the claim that the ABC deal constitutes a "fundamental change." If that were to be the case, it could be required to cash out all or a portion of its 1.875% convertible subordinated notes due 2011 at 100% of the face amount, plus interest accrued. According to Citadel's latest annual report, it sold 330 million bucks worth of the convertible subordinated notes in a private placement on the same day it sold its IPO in February 2004.
Entravision buying back stock
You can forget the rumors about Entravision trading more radio stations to Univision in exchange for Entravision stock. The companies have announced that Entravision will pay 51.1 million in cash for the stock that Univision has to divest under a Department Of Justice (DOJ) agreement to get its ownership of Entravision below 15%. Although Univision's stake in Entravision was not attributable as far as the FCC was concerned, so long as it was converted to non-voting stock, the antitrust folks at the DOJ didn't see it that way when Univision sought approval of a 3.5 billion bucks deal to acquire Hispanic Broadcasting Corporation, now Univision Radio, back in 2002. DOJ gave the merger a green light in 2003, but required Univision to reduce its stake in Entravision from 27% to no more than 15% by March 26, 2006 and 10% by March 26, 2013. Univision previously reduced its stake by trading 90 million worth of stock for KLOK-AM & KBRG-FM San Jose, CA. The newly announced stock purchase, which is set to close Thursday (3/2), will sell seven million shares back to Entravision for 7.30 per share. According to Wachovia Securities analyst Marci Ryvicker, the stock buyback will be accretive to Entravision and she has adjusted her estimates accordingly.
 Radio news lags behind other sources
News is an important facet of radio programming, but it is not the source of first choice for most Americans. 54% of Americans have a daily local broadcast TV news habit, and more than three out of four go there for news, if not every day, then several times a week. The total with a weekly habit is 77%. Only 6% say they never ever watch local TV news. The information is from a new HarrisInteractive poll. Radio news is a daily experience for 32%, with 54% going there several times a week. Talk radio, at 22%/37%, is another rung down the news media ladder. The poll combined broadcast and cable national networks, with 49% going there daily and 71% going daily or several times weekly. Other categories are newspaper (41%/63%), online (40%/60%), national newspaper (10%/18%) and satellite radio (12%/19%). Only about one in ten completely avoid network, newspaper and online year round; two in ten avoid radio news, a third avoid talk radio, and four in ten avoid the national papers. Not surprisingly, with it's as-yet limited subscribership, satellite radio was never used by almost seven in ten. Although in general, the older the form of media, the older the age group using it, there are a few surprises in HarrisInteractive's demo chart. Even the 59-and-older crowd was more likely to go online for news than what HarrisInteractive calls Echo Boomers - - however, that seems to be partly a results of the younger group's distate for news in general.
| Read demographic results here |
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Parties look for mansion expansion
There are 435 seats in the House of Representatives, but thanks to the continued improvements in the science of gerrymandering, few are expected to seriously contested this year. According to one Reuters report, as few as 33 may be in legitimate doubt at this point. However, their are only 50 individuals who lay temporary claim to residency in a governor's mansion. 36 are in play this year, and about half of them will be party to a spirited competition. The Republicans have the most to lose, defending 22 states to the Democrat's 14. Another way to look at it is in terms of races where an incumbent is exiting due either to retirement or term limits. In nine such cases, Republicans are defending eight to only one for the Democrats. Both sides have big state targets - - Republicans are hoping to snatch Pennsylvania and Michigan, and the Democrats have even bigger targets, including California and New York.
RBR observation: It all boils down to cash. The national party organizations have a stake in this, which means that national cash could be flowing into 2006 hot spots. Democrats think they have a real chance to pick up a lead, and Republicans will do all they can to see that the Democrats fail in this endeavor. It all means more cash headed to broadcast outlets.
 Field and Panero
hailed as "Best CEOs"
Entercom head honcho David Field and XM Satellite Radio boss Hugh Panero may not see eye-to-eye on where the radio industry is heading, but according to Institutional Investor, they're among "The Best CEOs" in the country. The publication's annual list was based on a survey of more than 1,700 investment professionals. Field and Panero were the only CEOs selected in the category of Radio & TV Broadcasting.
Casino ad rules clarified
Several readers have written to point out that the article regarding Casino advertising in the last issue (2/27/06 RBR #40) required clarification. Since the advertisement of casino gambling could have federal and state criminal consequences please review the following, before making any decision regarding casino advertising.
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Ad Business Report TM
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TNS: U.S. as spend increased 3% in 2005
Total ad expenditures in 2005 increased 3.0% to 143.3 billion compared to 2004, according to data released by TNS Media Intelligence. Total ad spend during Q4 '05 also advanced 3% against the same period in 2004. The majority of 19 media measured by TNS MI experienced growth during 2005. Internet display advertising registered the largest gain, up 13.3% to 8.3 billion on the strength of accelerated spending from dot-com brands. For the year, these online brands accounted for 49.7% of total internet expenditures, the highest level since the dot-com bust.
| Read More... |
 J.L. Media signs for PPM
Arbitron announced today that J.L. Media has signed an agreement for the company's Portable People Meter ratings service when deployed in the Houston and Philadelphia markets. J.L. Media is one of the top advertising firms in the country with accounts approaching 600 million in annual billing. Some of J.L. Media's clients include Old Navy, Tempur-pedic, Modell's, Subaru and Fox and Tribune TV Stations. Stan Gerber, executive vice president, Chief Marketing Officer, J.L. Media stated, "J.L. Media is proud to be among the first media agencies to embrace the PPM measurement technology. We believe the PPM will significantly enhance the measurement of radio audiences, enabling us to plan and purchase even more effective advertising campaigns on our client's behalf."
Coors Light launches new advertising
to support NASCAR No. 40 car
Coors Light, the primary sponsor of the No. 40 car, driven by Chip Ganassi Racing with Felix Sabates (CGRFS) rookie David Stremme, announced new programs to support its 2006 sponsorship and bring the excitement of racing to consumers. Coors Light is creating and distributing "Trackside Chats" in conjunction with four races throughout the season, giving race fans a behind-the-scenes look at the world of NASCAR through the eyes of rookie driver David Stremme. During these interviews, Stremme will comment on what it's like to race in the NEXTEL Cup series and his experiences on and off the track. Stremme's first streaming audio file will be available for download in conjunction with the Golden Corral 500 at the Atlanta Motor Speedway on March 19th. Other new Coors Light programs supporting the 2006 NEXTEL Cup season include:
| Read More... |
 Heineken launches Heineken Premium Light
Heineken USA is inviting domestic light beer drinkers to "succumb to smooth" with the national launch of Heineken Premium Light. Within the U.S. beer market, light beer accounts for nearly 50% of total volume, with the import specialty and light beer segments driving growth (Beverage Marketing 3Q 2005). Heineken Premium Light was tested in Phoenix, Dallas, Providence and Tampa during the summer and fall of 2005. It quickly became the #2 imported light beer brand across these four markets and continues to gain momentum. The launch of Heineken Premium Light will be supported by a national 50 million campaign, and is headlined by a simple. Elegantly simple layouts of a Heineken Premium Light bottle, with compelling taglines such as "Succumb to Smooth," entice consumers to re-examine their "relationship" with their current domestic light beer. The ad campaign breaks 3/1 with a massive interactive and viral campaign to engage consumers. Print breaks 3/3 with a full-page ad in USA Today, supported by national print including an impact unit in Maxim Magazine. Out-of-home begins 4/1 for the off-premise phase supported by television kicking off later that month. In addition, 11 major kick-off events are slated for March.
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| Media Markets & Money TM |
This is where we used to live...
"We are excited to be back in Champaign-Urbana and look forward to continued growth and increased service to our listeners and advertisers." These are the words of Jim Glassman and Jack Taddeo, respectively President and EVP of RadioStar Inc., which is acquiring an four-on-the-floor FM cluster from Peter Ottmar's AAA Entertainment. The duo owned the cluster from 1995 to 2000. The stations include WEBX-FM and WEVX-FM, doing double-duty as The Rock, Contemporary WQQB-FM Q96, and Classic Rock WGKC-FM. Glassman currently has publishing interests up I-74 in the Peoria area, and Taddeo is still running his long-standing program consultancy. Terms were not immediately released.
Close encounter in Boise
Amador Bustos has the keys to his second Boise ID FM station. KQTA-FM (the former KBNH-FM) came from Leo Ramos's R&S Media for 2.25M. It pairs with KDBI-FM, which came in an earlier 3.25M deal. Eddie Esserman of Media Services Group and David Honig of the Minority Media & Telecommunications Council handled brokerage chores on the agreement.
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| Washington Media Business Report TM |
Food for thought
The Federal Trade Commission has opened up an inquiry, as required in order to get its funding for HY 2006, into the "marketing activities and expenditures of the food industry targeted toward children and adolescents." You know the drill - - watchdogs are convinced that we can solve the problem of childhood obesity if we can just rein in objectionable advertising. Interested parties are free to submit commentary and evidence to support their own particular take on the topic. The initial deadline for comments is 4/3/06.
All quiet on the Southwestern front
The rumor mill has it the FCC is ready any day now to release landmark decisions on various cases of alleged indecency pending before it, up to and including the infamous 2004 Super Bowl incident. As of deadline today, no sound or print on the topic of indecency has emerged from the FCC's SW Washington digs. They say it's the waiting that's the hardest...
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| Entertainment Media Business Report TM |
 Senator Robbins' "Truth in Musical Advertising Act" signed into law
From Keymarket Communications' WPKL-FM and WKPL-FM Pittsburgh simulcast (Oldies "The Pickle"), which had interviewed the Senator a few weeks ago: Senator Bob Robbins (R-50) is pleased to announce that legislation he authored, Senate Bill 929, also known as the "Truth in Musical Advertising Act," has been signed into law.
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| Ratings & Research |
January Webcast Metrics ratings
Ando Media has released its monthly Internet Radio Top 20, a listing of the top-performing Internet radio stations and networks measured by the Webcast Metrics audience measurement platform. Making a strong Webcast Metrics debut in January is SomaFM.com a listener-supported, commercial-free internet radio station. SomaFM.com was founded in 1999 and has since grown from one channel to its current offering of 7 distinctly different, full-time music channels. " We're excited to be part of Webcast Metrics since all broadcasters are rated with consistent metrics using actual log data." states Rusty Hodge, SomaFM's General Manager. Topping the ranker is the Net Radio Sales Network, with a Monday to Sunday 6a-mid AQH of 101,687. According to Webcast Metrics actual data, the Net Radio Sales Network is the third largest online radio network.
| View the Chart |
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| TVBR TV News |
Competition douses Olympic flame
The February sweeps don't end until tomorrow, but they pretty much wrapped up for NBC over the weekend as the Torino Winter Olympics concluded. And while the Peacock net is crowing about winning three weeks in a row for primetime viewership, with an average 20.5 million viewers in primetime through Saturday, it's clear that the Olympics is no longer a guaranteed ratings bonanza. Rather than roll over and schedule reruns, as had been the practice in past Olympic months, ABC and Fox saw a ratings weakened NBC and decided to battle the Olympics head-on. Fox's "American Idol," which no one had heard of four years ago, proved its strength and handily beat NBC's Olympics coverage in the key 18-49 demo each night it aired - - including a special edition last Thursday. And ABC went full bore, scheduling "Dancing with the Stars" for the February sweeps and airing new episodes of hits "Desperate Housewives," "Lost" and "Grey's Anatomy." So, while NBC will likely win the sweeps in Household ratings and total audience delivery, ABC is on track to win the 18-49 demo and Fox is nipping at NBC's heels for 2nd place, with two more episodes of "Idol" to air tonight and tomorrow before the books are closed on the February sweeps.
 TVBR observation: Would it have made a big difference for NBC if popular figure skater Michelle Kwan hadn't been injured (2/14/06 TVBR #31) and skier Bode Miller had delivered even a single medal after all the hype he had going into the Winter Games? Perhaps it would have helped NBC's ratings somewhat. But we think there's really been a shift in how Americans relate to the Olympics. Big fans of specific sports are being drawn more and more to the Internet and to NBC Universal's own telecasts of Olympic events on multiple cable channels - - as shown by NBC Uni's own figures that viewership was up 18% from four years ago (and that was a US event in Salt Lake City) on its cable nets and page views on NBCOlympics.com more than doubled from four years ago. Devoted fans aren't willing to wait for a primetime package of the day's highlights, so they leave that to the casual viewers who are attracted to the glamour of the Olympics more than any particular sport. Fortunately for NBC, there are still many millions of such viewers, so it appears that the network hit its guarantees to advertisers and won't have to deliver any makegoods for its Olympics primetime coverage. But it's clear that having the Olympics is no longer a free ride to several weeks of ratings domination.
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| Transactions |
940K WITK-AM Wilkes Barre-Scranton (Pittston PA) from Robert C. Cordaro Inc. to Holy Family Communications (James N. Wright, Joanne Wright, Mary Ellen Capece). Cash less LMA fees. LMA 6/1/05 @ 5K/month. [File date 2/6/06.]
411K WVXA-FM Rogers City MI from Cincinnati Public Radio Inc. (Richard Eiswerth) to WATZ Radio Inc., a subsidiary of Midswestern Broadcasting Co. (Ross A. Biederman et al). 41.1K escrow, balance in cash at closing. Duopoly with WATZ AM & FM Alpena MI. [File date 2/6/06.]
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| Stock Talk |
Oil drops, stock gain
It's a repeat of an often-seen scenario - - oil prices declined on Monday, so stock prices moved up. The market was also helped by an upbeat outlook from Verizon. The Dow Industrials gained 36 points, or 0.3%, to 11,097.
Radio stocks joined in the advance. The Radio Index rose 0.885, or 0.5%, to 168.025. Disney gained 1.4% on a Barron's report that Apple Computers might be contemplating a takeover bid. Regent rose 2.2% as the day's best performer. Westwood One fell another 0.9% after Friday's disappointing guidance.
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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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39.37
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+0.57
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Hearst-Argyle
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HTV
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24.00
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-0.09
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Beasley
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BBGI
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13.72
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unch
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Interep
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IREP
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0.24
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unch
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| CBS CI. B |
CBS |
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24.83
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+0.30
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Jeff-Pilot
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JP
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60.95
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+0.04
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| CBS CI. A |
CBSa |
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24.80
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+0.26
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Journal Comm.
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JRN
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12.45
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-0.07
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| Citadel |
CDL |
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11.30 |
unch |
Radio One, Cl. A
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ROIA
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8.86
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+0.01
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Clear Channel
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CCU
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28.27
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+0.12
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Radio One, Cl. D
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ROIAK
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8.86
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+0.05
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Cox Radio
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CXR
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13.83
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-0.09
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Regent
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RGCI
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4.60
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+0.10
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Cumulus
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CMLS
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11.78
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+0.26
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Saga Commun.
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SGA
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9.87
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-0.01
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Disney
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DIS
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28.38
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+0.40
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Salem Comm.
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SALM
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14.12
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+0.12
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Emmis
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EMMS
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16.66
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+0.11
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Sirius Sat. Radio
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SIRI
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5.23
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+0.05
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| Entercom |
ETM
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28.11
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+0.11
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Spanish Bcg.
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SBSA
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5.70
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-0.01
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Entravision
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EVC
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7.50
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+0.10
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Univision
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UVN
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33.83
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-0.08
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Fisher
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FSCI
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42.70
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+0.06
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Westwood One
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WON
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11.20
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-0.10
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Gaylord
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GET
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46.00
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+0.68
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XM Sat. Radio
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XMSR
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21.69
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-0.45
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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
Total ad expenditures
2005 increased 3.0% compared to 2004 of 19 media measured...
J.L. Media signs on
PPM gets another on the line...
Media Markets & Money
Close encounter in Boise
Amador Bustos has the keys to his second...
Washington Media Business Report
Rumor mill has it the FCC
Ready any day to release landmark decisions...
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Radio Media Moves
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Roderick Powers up
Clear Channel's WWPR-FM "Power 105.1" New York has promoted Kristin Roderick to General Sales Manager. She had been Local Sales Manager.
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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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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.
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.
02/27/06 RBR #40
A reader writes in with a poser
Q: When Citadel takes over the ABC stations, do they have to get new call letters for the stations? A: 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.
02/27/06 RBR #40
 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.
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.
 RBR observation: Too bad the ads are only going into newspapers and online. Maybe they'd be more effective if they used broadcast to get the word out. We personally read the newspaper yesterday, part of it anyway (some minor travel prevented as thorough a reading as usual). Hmmmmm...(chinstroke chinstroke)... we can't remember a single ad, though. What was that on the sports page, tires? Yeah, probably - - there are usually some tires there. But we're not sure. Certainly no clue which tires, if any... Don't get us wrong - - we love the newspaper. It just doesn't often get us into a particular store to buy a particular item. How about you?
02/21/06 RBR #36
If Ya Need One, Just For Laughs
Sent to the editors of RBR/TVBR a song all about the FCC. So we share, if you need a laugh this morning, FCC Family Guy
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Companies Looking
1. Arbitron Account Manager
2. Sales Rep in Washington, DC
3. Sales Manager for Reno Reps
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