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Radio News ®
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Battle continues over far-flung Arbitron metro
 Manhattan Broadcasting is still pressing the FCC to disband the newly created Salina-Manhattan, KS metro, which it claims was created to exaggerate ratings for stations owned by Morris Communications and exclude much of the area around Manhattan, where Manhattan Broadcasting's stations have many listeners (12/28/07 RBR #250). The FCC has been gathering arguments from the parties, but has not issued any ruling. First, though, the Commission will have to resolve the key issue of whether it even has jurisdiction.
| Read more here |
RBR observation: Arbitron has modified the Salina-Manhattan Metro to add one additional county near Manhattan as of next month, but that isn't likely to change Manhattan Broadcasting's opposition, since it contends that there is no commonality between the two cities, noting that they are even in separate DMAs for Nielsen's TV ratings. We will be interested to see whether the FCC decides to pick up this hot potato. If the Commission does assert that it has authority over Arbitron metro definitions, it will no doubt have to defend that position in court at some point.
 Alarcon under attack
Spanish Broadcasting System is the latest public media company to have a disgruntled major shareholder issue a demand that the company sell itself or buy out the public shareholders. Discovery Group, a hedge fund known for actively pressuring company management to take action, charges the SBS CEO Raul Alarcon, whose super-voting stock gives him control of the company, is shortchanging other shareholders by refusing to talk with a potential buyer. Discovery, which owns 9.8% of SBS' publicly traded Class A stock, is appealing to the company's board of directors to form a special committee of independent directors and hire an investment banker to investigate three alternatives for enhancing shareholder value: 1) cash out the public shareholders as "fair value" and go private; 2) sell SBS to a strategic buyer; and 3) remain public but end the dual-tier voting structure and make Alarcon give up either the Chairman or CEO post to someone else. The letter to the board charges that Alarcon has paid himself over 10.1 million in salary, 7.3 million in bonuses and over two million in perks since SBS went public in 1999, while the company's market capitalization has plunged from 1.5 billion to about one-third that. The dissident shareholder claims to know that a major media company, identified in the letter by code as "XYZ," is interested in acquiring SBS for at least twice its current stock price, but that Alarcon refuses to discuss the proposal.
RBR observation: Might the mysterious "XYZ" be CBS? We understood back when Mel Karmazin was running Viacom/CBS that he very nearly cut a deal to acquire a majority stake in SBS and give CBS a foothold in the growing US Hispanic media market. However, that deal reportedly blew up because Alarcon insisted on retaining control.
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The well-connected pirate
Just like the pirate Jean Lafitte, a pirate with possible connections to Napoleon Bonaparte and Andrew Jackson, this privateer of the electromagnetic spectrum in the Philadelphia area claimed at least a loose connection to one of his US senators. In the end, although Lafitte may have helped Jackson win New Orleans, he was eventually chased out of town. And the Philly guy, despite sending a letter to Sen. Arlen Specter (R-PA), is being chased off the air. Michael Stone Campbell stands accused of operating a station on 97.7 MHz in Philadelphia. He claimed that he has been operating since December 1994, and that it was OK, because he filed a CP for it, only to have the FCC lose it. The FCC, for its part, has no clue where the application is, no record of ever receiving it, and points out that it doesn't matter since the Commission never granted anything. The FCC says that Campbell never responded to a notice of apparent liability, but he did write a letter to Specter, which Specter's office then forwarded to the FCC. However, this correspondence was not seen as adequate authorization for operating an FM radio station without a license. The price for the buccaneering station: The usual 10K.
 House panel tees up Thomas H. Lee
Actually, it'll be Thomas H. Lee Partners (THL) Managing Director Richard J. Bressler, pictured, in the hot seat in the meeting room of the Subcommittee on Telecommunications and the Internet this morning. Bressler can be expected to hog the spotlight -- whether he wishes to or not -- at the expense of the PUC exec and pair of academics who will be joining him to discuss the "Role of Private Equity in the Communications Marketplace." THL is one of the equity groups trying to close the 26.7B cash-plus-debt privatization of Clear Channel. Many things have complicated that deal. Among them are THL's interests in Cumulus Media Partners and Univision, both of which had to be restructured to make them unattributable. Bressler also sits on the board of Nielsen, and THL has a chunk of that company as well. Bressler's resume includes stints at Viacom and Time Warner, among other things. Joining him on the board will be Carlito P. Caliboso, Chairman, Public Utilities Commission of Honolulu HI; Josh Lerner, Jacob H. Schiff Professor of Investment Banking at Harvard Business School; and Eli M. Noam, Director, Columbia Institute for Tele-Information and Professor of Finance and Economics, Columbia Business School.
RBR observation: All kinds of investors have had a role in financing broadcasting companies. The fear some have with private equity is that it views ownership as a temporary matter -- it either swoops in to liquidate an acquisition, hoping that the sum of the parts is greater than the whole (particularly if the whole was acquired at fire sale prices), or it looks to quickly build value and sell. Either way, it is assumed that the special public interest responsibilities particularly incumbent on broadcast enterprises will be a mere afterthought. FCC Chairman Kevin Martin has explained that the requirements and obligations of being a licensee are the same for a standalone owner like Jerry Lee as they are for a big investor like Thomas H. Lee Partners. That means that if THL runs the companies in a manner detrimental to the public interest, the public has the right to formally protest. But that runs headfirst into the limited jurisdiction the government has in telling any licensee how to run their business, as well as the common complaint from public interest quarters that the complaint process is broken and meaningless. It makes for a tangled mess in Washington, but it may well at the very least make for an entertaining hearing today.
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| Wall Street Business Report TM |
 Moody's turns negative on Univision
RBR/TVBR wasn't the only one to notice that Univision is coming up well short of its projected 500 million bucks from divestitures (see TVBR.com). Moody's Investors Service affirmed its debt ratings for the Hispanic media giant, but changed its rating outlook to negative. "The change in the rating outlook reflects the likelihood that projected proceeds from the music business and other planned asset sales will be lower than Moody's had anticipated at the time of the initial rating assignment in February 2007. The asset sale shortfall and more difficult advertising market conditions could challenge Univision's ability to reduce debt-to-EBITDA (estimated at 12.3x for FY 2007 incorporating Moody's standard adjustments) to the 9.0x level for 2008 anticipated in the B1 rating and fund the maturity of the $500 million second lien asset sale bridge in March 2009. Downward rating pressure will result if liquidity weakens or if Moody's determines that Univision is not making steady progress in reaching the 9.0x leverage level," the ratings agency said.
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Ad Business Report TM
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Nielsen to launch image campaign with NYT
The Nielsen Company announced its inaugural global brand awareness campaign via a partnership with The NY Times Co., including the first exclusive ad arrangement ever offered for any editorial issue of The NY Times. Nielsen will be the sole advertiser for a special August issue of The NY Times sports magazine, PLAY, which will be dedicated to the 2008 Olympic Games in Beijing. The campaign will also include print, online, radio and mobile as well as targeted newsstands and mailings. Nielsen was re-branded in 2007 as a reflection of its commitment to creating an integrated, streamlined global organization of marketing and media services. Today, the company is aligning the breadth of its resources to deliver the most complete understanding of global consumers and bring real clarity to today's complex markets. The campaign is expected to launch this summer while the special, Nielsen-sponsored, Olympic issue of PLAY will be distributed in the Aug. 3 Sunday edition of The New York Times as well as the International Herald Tribune in Asia. The campaign also includes print ads in The New York Times and in the International Herald Tribune; online banner ads on NYTimes.com and IHT.com; radio spots; and ad support in the mobile PLAY newsletter.
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| Media Markets & Money TM |
Debut takes its next expansive step
One of radio's newest groups is making another move. In a pair of deals with Holladay Broadcasting, it is acquiring WBBV-FM in Vicksburg MS, and inking an LMA/option on sister KLSM-FM. The agreement will actually catapult the company to group status, giving it its second small market both in the state of Mississippi and on the banks of the Mississippi River. Its first market consists of a five station cluster 90 miles to the north in Greenville. Debut called the agreement a significant step in its plans to expand in the region. For its part, Holladay is happy to be able to focus on its stations in larger markets.
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| Washington Business Report TM |
 Resolution impacted by balancing act
When Byron Dorgan (D-ND) announced he was reviving his Resolution of Disapproval tactic to block execution of the FCC's new acceptance of broadcast/print cross-owned groups in the top 20 Nielsen DMAs, he noted 13 co-sponsors. It should be noted that this baker's dozen has been increased by one, and it's a big one. Commerce Committee Ranking Member Ted Stevens (R-AK), pictured, is also on board as an original co-sponsor.
RBR observation: The other two Republicans on the list -- Olympia Snowe (R-ME) and Susan Collins (R-ME) -- are generally seen as part of the dwindling moderate wing of the party. Stevens, much more a stand-up conservative, adds a considerable amount of balance to the list, particularly in light of the recent departure of Trent Lott (R-MS) from Dorgan's posse.
Reagan/Bush 41 AG attacks satmerger
Discussing XM/Sirius, former Attorney General Dick Thornburgh wrote, "To say that this proposed merger is problematic is an understatement." Using the OpEd space in the Washington Times, he noted that there are widespread opponents of the merger, "...pointing out that it is a two-to-one merger creating a harmful effect on other firms and consumers."
| Read more here |
RBR observation: So there you have it, ladies and gentlemen. It's one thing for left-oriented activists to oppose a merger. This wholly Republican viewpoint comes down on the anti side in order to prevent new government regulation made up on the fly in a back room of the FCC. We have nothing to add at this time, your honor.
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| Entertainment Business Report TM |
World News Roundup celebrates 70th anniversary
America's longest running broadcast happens to be on network radio. CBS News Radio's The World News Roundup forged broadcasting history when it launched on March 13, 1938. This was the first broadcast to bring the voices of correspondents stationed around the world together for a live news broadcast. World News Roundup marks its 70th anniversary on Thursday.
Univision Radio adding Enrique and Joe in Miami, Fresno
Univision Radio announced their popular NYC duo Enrique Santos and Joe Ferrero will debut "The Enrique and Joe Show" in Miami with syndication in Fresno. The duo will begin airing daily from their new home, La Kalle 98.3 FM Miami, on Thursday from 6:00-11:00 a.m. In Fresno, the show will air on La Kalle 107.9 FM from 2:00-6:00 p.m. Their morning show has been broadcasting in NYC on La Kalle 105.9 FM for the past year.
 Envision announces "Think Green Radio"
Envision Radio Networks announces the launch of Think Green Radio, a new 60 second infotainment segment hosted by LA radio personality Harrison. Think Green Radio marks the national celebration of Earth Month throughout April with special "green" content geared towards making a positive difference for the continued benefit of Planet Earth.
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| Ratings & Research |
NY TV station subscribes to PPM
Strictly speaking, WYNZ-LP is a low-power television station on channel 6, but it operates as a commercial radio station, promoting its dial position as 87.7. It won't be reported in the regular radio ratings, but Arbitron is selling it station-specific custom PPM listening estimates. The station's owner, Mega Media Group, is also subscribing to the market's regular PPM ratings as well, presumably to show how its station stacks up to the competition. "PPM makes it possible for Arbitron to provide custom reports of the audience of Pulse 87 FM, a new station specifically targeted to the multi-racial and diverse mosaic of the five boroughs of New York City. Radio is increasing its offerings through non-traditional channels and the PPM system was designed with the flexibility to provide custom solutions for all audio platforms," said Arbitron President of Sales & Marketing Pierre Bouvard.
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| More News Headlines |
Crystal Awards finalists named
NAB announced the 50 finalists for the 2008 Crystal Radio Awards competition, which recognizes radio stations for their outstanding year-round commitment to community service. Finalists will be honored and winners announced at the Radio Luncheon on Tuesday, April 15th, during the NAB Show in Las Vegas.
| See the list of finalists |
Spitzer apologizes, but doesn't resign
New York Governor Eliot Spitzer read a brief statement apologizing to his family and the public yesterday after he was identified by the New York Times as being involved as a client of a high-priced prostitution ring during a recent visit to Washington, DC. However, Spitzer, whose administration has already been damaged for misusing state police to target political enemies, did not resign and did not take questions from reporters.
RBR observation: Watching this jerk's political career implode has been quite a show, but his self-destruction won't undo the damage he did to broadcasters with his phony payola crusade that got him headlines and helped him make the move from New York's Attorney General to Governor. Now, won't he please leave the stage?
Circuit City woes: A cautionary tale
 The Associated Press headline reads, "Circuit City tries to reinvent itself." The electronics retailer is losing its head-to-head battle with Best Buy, and is looking for ways to put the red ink bottle away and use that black one for a change. It's looking to concept stores, cost cutting and new services to turn things around.
RBR observation: We don't really have a dog in this fight, but we would observe that Circuit City began reinventing itself last year with it lopped off the cream of its sales crop to cut employee compensation expense. Besides generating a barrage of negative press, the company rid its sales floors of its most knowledgeable employees precisely at the moment in history when the DTV transition -- the largest and most complex government-forced consumer upgrade in home electronic equipment ever -- is poised to take off. When consumers most need knowledgeable point of purchase information, the company's most knowledgeable employees are out on the street, or likely in many cases, have caught on with and are moving product for the competition. The lesson applies to all types of businesses. You cannot save your way to prosperity; you cannot kiss your top talent good bye and expect the remaining kids to pick up the slack. We admit that we don't know all the ins and outs of Circuit City v. Best Buy, but we would venture that Circuit City's decision to concede the talent factor to its competition has more than a little to do with the current situation.
Imus adds Atlanta
Imus in the Morning joined the True Oldies 106.7 Altanta lineup on this week. WYAY brings the total affiliate count for Imus in the Morning to 36 since the show launched on Dec. 3 from flagship WABC in New York.
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| Transactions |
125K WCQV-AM Moneta VA from Perception Media Group Inc. (Ben M. Peyton) to Smile Broadcasting LLC (Frank Ernandes). 12K escrow, balance in cash at closing. [File date 2/11/08.]
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| Stock Talk |
Another gloomy day on Wall Street
Higher oil prices and more companies reporting financial fallout from subprime mortgage investments were dark clouds over Wall Street on Monday. The Dow Industrials fell 154 points, or 1.3%, to 11,740.
Radio stocks were spared. The RBR Radio Index moved up 0.113, or 0.2%, to 76.841. That was almost all due to Beasley gaining 6.1% and Citadel 3.6%. Entercom was down 3.1%, Regent 2.6% and Westwood One 2.5% as some of the day's poorest performers.
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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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42.20
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+0.26
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Google
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GOOG
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413.62
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-19.73
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Beasley*
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BBGI
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5.74
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+0.33
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Hearst-Argyle
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HTV
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21.19
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+0.10
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| CBS CI. B |
CBS |
 |
21.62
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-0.37
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Journal Comm.
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JRN
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6.39
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-0.09
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| CBS CI. A |
CBSa |
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21.63
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-0.33
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Lincoln Natl.
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LNC
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48.65
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+0.10
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| Citadel* |
CDL |
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1.46 |
+0.05 |
Radio One, Cl. A
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ROIA
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1.22
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+0.02
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Clear Channel*
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CCU
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33.96
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-0.18
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Radio One, Cl. D*
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ROIAK
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1.21
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-0.01
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Cox Radio*
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CXR
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11.52
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+0.23
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Regent*
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RGCI
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1.10
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-0.03
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Cumulus*
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CMLS
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5.21
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-0.13
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Saga Commun.*
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SGA
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5.49
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-0.03
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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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2.94
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-0.03
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Disney
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DIS
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30.46
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-0.30
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Sirius Sat. Radio
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SIRI
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|
2.66
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-0.07
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Emmis*
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EMMS
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3.04
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+0.05
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Spanish Bcg.*
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SBSA
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1.57
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+0.03
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Entercom*
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ETM
|
|
10.11
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-0.32
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Westwood One*
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WON
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1.55
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-0.04
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Entravision
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EVC
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5.91
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-0.03
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XM Sat. Radio
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XMSR
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10.81
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-0.38
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Fisher
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FSCI
|
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30.08
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-0.41
|
-
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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]
Send the "suits" packing
The Citadel debacle is the latest example of what happened when Radio was taken over by the "suits" on Wall Street who did not have a clue as to what the Radio business is about. Does anyone except me to remember when TV was supposed to destroy the Radio industry? It survived and thrived!
| Read the full response |
Mike Mitchell
Retired (by Suits!)
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Below the Fold
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Wall Street Business Report
Moody's turns negative on
Univision, RBR wasn't the only one to notice that Univision is coming up well short...
Ad Business Report
Nielsen to launch
Image campaign with NYT including the first exclusive ad arrangement ever offered for any editorial issue...
Media Markets & Money
Debut takes its next
Expansive step. One of radio's newest groups is making another move...
Washington Business Report
Resolution impacted
By balancing act, Byron Dorgan announced reviving his Resolution of Disapproval tactic to block execution of the FCC's new...
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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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 Honored for achievement
2005 Bayliss Radio Scholarship recipient Dan Henning, has been selected to receive this year's Bayliss Horizon Award. Since graduating from college Henning has become Associate Producer for the nationally syndicated radio program, The Bill Press Show, based in Washington, DC. In addition to co-hosting, Dan books guests, produces imaging, screens call-ins and maintains the web site. He is also a part-time on-air personality for Citadel Broadcasting's stations, WRQX/WJZW.
Switch for Anthony
Paul Anthony is joining Cox Radio as General Sales Manager of WBAB-FM on Long Island, effective April 11th. The veteran Long Island broadcaster had most recently been General Sales Manager for Clear Channel's WALK-FM.
Michigan election results
The Michigan Association of Public Broadcasters (MAPB) has elected Steve Schram of Michigan Public Media, as its President for the next year. The Michigan Public Radio Network (MPRN) has elected John Sheffler of Central Michigan University Public Broadcasting as its President for the 2008-2009 term.
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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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Week of learning and planning
What I saw and learned at Annual 4A's conference was excellent and lived up to their theme of 'Digital changes everything' but if you snooze you lose. Put your thinking helmet on it is time to do battle.
Carnegie observation: Take it to the streets and engage into the digital business. Snooze you lose. Digital changes everything - We all are into the buzz word but the key to making digital work is three words I have been saying for 25 years - 'Content is King.' Your Presentation of your content is the pair of Aces needed in this digital poker play.
03/10/08 RBR #48
Chicagoans sound off on Citadel cuts
Chicago Sun-Times columnist Robert Feder struck a nerve with radio listeners when he struck out at Citadel CEO Farid Suleman for staff cuts at WLS-AM and WZZN-FM (3/6/08 RBR #46). "Words cannot describe my outrage"..." What are those jackasses thinking?"
RBR observation: Could not agree with Feder more than right this minute. What CEO will get the axe first? There is more to Feder's rage and RBR observation in this report page.
03/10/08 RBR #48
CBS Radio teams with AOL
Calling it a combination of "two of the largest online radio networks," the deal will have CBS Radio integrate AOL's streaming channels with its own and make them all available for free to listeners. Ronning Lipset Radio will expand from repping AOL Radio's streaming ad inventory to the CBS Radio online radio properties as well.
RBR observation: Sounds like a win-win for AOL and CBS Radio. Does anyone lose out? That would be XM Satellite Radio, whose music channels will come off of AOL Radio as of May 1st. Read more here of the analysis to this deal.
03/10/08 RBR #48
Credit where credit is due
A coalition of 47 state broadcaster associations was responsible for winning an extension of the comment and reply period on the FCC's NPRM on encouraging broadcast localism (or coercing it, or paradoxically hindering it, depending on your point of view). The NAB supported the state group's filing.
RBR observation: Now get out there and comment. Refer your remarks to MB Docket No. 04-233, the 12/18/07 Report on Broadcast Localism and Notice of Proposed Rulemaking.See Carnegie's webcast at TVBR Media Center
03/10/08 RBR #48
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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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