Welcome to RBR's Daily Epaper
Volume 22, Issue 5, Jim Carnegie, Editor & Publisher
Friday Morning January 7th, 2005

Radio News®

Court orders CC Radio to give feed to Sirius
The first court battle has begun over terrestrial radio stations defending their play-by-play sports turf from new competitors - - satellite radio. The first round goes to satellite, with a judge in Louisville, KY ordering Clear Channel Radio to provide a feed to Sirius Satellite Radio of University of Louisville football and basketball games. The order means that WHAS-AM, the school’s flagship station, will be providing Sirius with a feed of tomorrow’s football game pitting the Louisville Cardinals against Texas Christian University. Clear Channel was sued by the university and Nelligan Sports Marketing, which holds the radio broadcast rights to Louisville games. Although Nelligan and the school had struck a deal to allow Sirius to carry Louisville games, Clear Channel had insisted that it had no contractual obligation to provide a feed to the satellite outlet.

RBR observation: Look for much more litigation of this sort - - particularly over terrestrial radio station’s market exclusive rights to pro sports broadcasts, following recent league deals giving nationwide play-by-play broadcast contracts to Sirius and XM.

Emmis: LIM impact minimal so far
Clear Channel's "Less is More" (LIM) initiative continues to be a top focus for Wall Street analysts, who are trying to discern what impact the clutter-cutting move is having on radio ad demand and pricing. But with LIM underway for several weeks now, Emmis Radio President Rick Cummings said in the company's conference call that the overall impact has not been great so far - - and he's hopeful the long-term effect will be to improve pricing for the entire radio industry. Cummings indicated that Emmis had no need for a formal companywide edict such as LIM to control inventory, but said he'd probably do the same thing if he had to manage as many stations as Clear Channel had.

Pacings up at Emmis; satellite radio no threat
Wall Street isn't yet convinced, but Emmis Communications CEO Jeff Smulyan told a CNBC interviewer that there are signs that radio has begun its upward climb. He's hoping to see radio revenues grow by the mid single digits in 2005, rather than the low single digits seen the past two years. Earlier, in the company's quarterly conference call, the heads of both major Emmis divisions said pacings have improved in just the past few weeks. TV President Randy Bongarten said there had been an expected post-election regrouping by advertisers, but that there had been noticeable improvement in the past three weeks. Radio President Rick Cummings said sales had improved in the past two weeks and January looks much better than December. For its fiscal Q4, running through next month, Emmis is projecting that radio revenues will be up 3%, with local leading the way, and TV also up 3%, although broadcast cash flow for TV will be down, due to some expense timing issues. However, CFO Walter Berger noted that TV cash flow margins for the full fiscal year will be above 40% - - a record for the company. Back to the CNBC interview, where the interviewer was less interested in how well Emmis was doing, than whether satellite radio was about to eat Smulyan's lunch. "We have two radio stations that have more audience than the entire satellite radio industry," the Emmis CEO noted, downplaying the threat of satellite radio. Earlier, in the conference call, he had repeated previous comments that iPod devices pose a greater threat to radio listening than satellite radio. But Smulyan isn't completely dismissing satellite radio, saying that if anyone can make it work, new Sirius CEO Mel Karmazin can. Karmazin himself was also on CNBC yesterday, saying that satellite radio is likely to grow to 60-70 million subscribers, not just the 20-30 million that some analysts have suggested.

They said it in 2004: June
As the old year exits stage right and the New Year makes its way to center stage, we thought we'd string together a compendium of quotes which appeared in RBR/TVBR during the past year. Today: June 2004 when Viacom CEO Sumner Redstone laid the ground work to what we shall probably see - "We probably will sell some of those stations to others who are more avaricious about radio than we are. Radio is growing, but not as fast as we would like." | More... |

Senate Commerce adds four new members
Each party is adding a pair of new members to the Senate Commerce Committee. On the Democratic side, however, the new duo is replacing a trio of former members, leaving the Republicans with a 12-10 advantage - - it had been 12-11 in the last Congress. On the other hand, maybe not much has changed - - campaigning John Kerry (D-MA) was rarely in attendance during the 108th Congress - - we don't cover everything the Committee does by any means, but we never saw him there even once. | More... |

How come JSAs don't have a grandfather?
Monterey Licenses is competing in a market where the switch from contour- to Arbitron-based market definitions has lowered the ceiling on what constitutes a proper-sized station cluster. However, the cluster of the market's dominant owner has been grandfathered into permanent existence, while Monterey faces a divestiture deadline...of sorts. Why is there a difference in treatment? According to David Oxenford of Shaw Pittman LLP, his client, Monterey, has entered into a JSA in the Fargo-Moorhead ND-MN market to better compete with Clear Channel. Since Clear Channel owns its stations, they are grandfathered. At the same time, Monterey has been given two years to discontinue its JSA. A petition to reconsider the JSA death sentence has been filed.

RBR observation: Instead of clearing up market anomalies, the new rules simply replace one set of anomalies with another. The evidence is just starting to trickle in, and we expect it to continue to build. Hey TV, get ready. You're next! | More... |

Home Depot Marketing Chief John Costello
to deliver RAB keynote

The RAB announced that John Costello, EVP/Merchandising and Marketing for The Home Depot, radio's number-one "national brand" advertiser, will deliver the Saturday morning keynote during RAB2005, the Radio Sales, Management & Leadership Conference in Atlanta, February 10-13. According to TNS/CMR 2004, The Home Depot is the top-ranked "national brand" advertiser in Radio, having spent over 100 million in national spot and network in 2003. Costello joined The Home Depot in 2002 from Yahoo! where he served as Chief Global Marketing Officer.

At deadline: Krippaehne out at Fisher
Fisher Communications announced late yesterday that William Krippaehne has resigned as President and CEO of the company. Ben Tucker, President of Fisher Broadcasting, has been named acting President and CEO of the parent company. "With the corporate restructuring and refinancing work behind us, it is appropriate for the company to seek new leadership with more direct operating experience in the broadcasting business. After 23 years of service to the company, it is time for me to move on and I wish the employees, management and the Board continued success," Krippaehne said in a statement.

Tsunami Disaster: Radio Responds
Chicago broadcasters raise 1.7M in one day
Wednesday's all-day, all-station effort by Chicago radio and TV stations to aid Asian tsunami victims (1/6 TVBR #4) was an overwhelming success. With 45 radio and TV stations promoting a call-in pledge number all day long, the American Red Cross of Greater Chicago raised over 1.7 million for tsunami relief efforts.

All-day telethon today in Detroit
Scripps' WXYZ-TV (Ch. 7, ABC) Detroit and three of Infinity's Detroit radio stations - - WOMC-FM, WYCD-FM and WVMV-FM - - are teaming up today for an all-day telethon to raise funds for tsunami relief. WXYZ is airing live segments throughout the day from a telethon phone bank set up at the station to handle pledge calls for the American Red Cross relief effort, while the radio stations will be promoting the pledge number as well. Air personalities from the radio stations will also be making guest appearances during the TV segments, along with local singing star LaShelle Griffin, who will perform during the Action News Noon newscast. The telethon was set to begin at 5:00 am today.

Equity Broadcasting announces tsunami effort
Equity Broadcasting Corp. announced plans to donate at least 100,000 bucks worth of air time to help the Christian Children's Fund raise money to aid Asian tsunami victims. "The air time will be divided among all EBC stations in more than three dozen markets. This is an opportunity for us to utilize our stations to help the Christian Children's Fund expand its base to raise more money for the needy," said Steven Soldinger, VP of Television.

What's happening in your market to aid tsunami victims?
Let us know by emailing [email protected].

Conference Calls Q3 2004
Do the numbers: Emmis beat its guidance
At first glance, it might look like Emmis missed Wall Street expectations for the most recent quarter. Not so, said CFO Walter Berger, who had analysts take out their calculators to determine that Emmis beat expectations and its own guidance to The Street. That's because accounting rules require Emmis to treat the three Phoenix station's that it's swapping for Bonneville's WLUP-FM Chicago (10/5/04 RBR #194) as discontinued operations, even though the actual swap is still pending. So, if you subtract 7.3 million in revenues from those three stations from the 171.2 million revenue guidance that Emmis issued just a few days before the deal was announced, you come up with 163.9 million. Actual results for fiscal Q3 were 169 million, beating guidance by more than five million. Likewise, station operating income was nearly five million ahead of guidance, after subtracting 3.1 million for Phoenix, at 71.7 million. Emmis handily beat the Thomson First Call consensus for earning per share, with 31 cents, vs. the expected 28 cents. Domestic radio net revenues for fiscal Q3 were up 3% to 69.8 million, while CEO Jeff Smulyan noted that Emmis' markets were flat to down slightly. TV revenues shot up 24% to 78.4 million, since the fiscal quarter included the period leading up to the November elections.


A&E getting MediaCom's Peter Olsen; Mandel comments
Mediacom EVP/Director of National Broadcast Peter Olsen is moving to A&E Network and The Biography Channel to be SVP/Ad Sales. The news comes as part of an announcement that A&E divided its ad sales division into three teams under Mel Berning, EVP/AETN Ad Sales. | More... |

ABC, ESPN reject three Anheuser-Busch ads
Reuters reports ABC and ESPN have rejected three Anheuser-Busch spots that spoof two campaigns of rival SABMiller Brewing, a source familiar with the situation told the news org. The rejection comes shortly after the four major broadcast nets pulled some Miller Lite commercials when Anheuser-Busch filed a 26-page complaint about the spots, which poked fun at the company's Bud Light brand (12/21/04 TVBR #247). Anheuser-Busch's rejected spots include one that parodies Miller's referee campaign, which contain football referees penalizing Bud Light for various offenses. The network rejected the ad because it features an actor "performing an action that is criminal, dangerous" and easy to imitate, the source said. St. Louis-based Anheuser-Busch is currently running other commercials insinuating that the Miller referees are confiscating Bud Light so they can drink it themselves. The other rejected spots lampoon Miller commercials that feature actors portraying former Anheuser-Busch drinkers talking through a bullhorn at an Anheuser-Busch plant, saying that Miller brands taste better than Bud Light or Budweiser. ABC said that since the Miller commercials that the Anheuser-Busch ads mock were pulled from the air, Anheuser-Busch could not use the parodies. Miller Brewing has not filed any complaints with any networks about Anheuser-Busch's advertising, spokesman Pete Marino said. "Anheuser-Busch is trying to play it both ways," Marino added.

Olympus goes to the Super Bowl
A wild blend of digital music, photographs and extreme alternative dance will appear on Super Bowl XXXIX, as Olympus launches m:robe 500, the first digital music player with a built-in digital camera. The company announced plans to run two 30-second TV spots promoting m:robe on the big game airing on Fox. With m:robe users can create personalized dynamic "remixes" that blend music and pictures together to, as the Super Bowl commercials' tag suggests, "Let Your Pictures Groove." The campaign was created by The Martin Agency Richmond, VA. The ads are scheduled to run during the first and third quarters of the Super Bowl telecast. This is the first time that Olympus has advertised on the Super Bowl since 1981. The Super Bowl commercials are part of a 10 million campaign to launch m:robe. The campaign begins this week at the Consumer Electronics Show in Vegas, where Olympus is celebrating its new digital music player with a series of live concerts on the trade show floor.

Coke re-jiggers management
in wake of marketing boss resignation

Coca-Cola announced several management changes and the resignation of its North American marketing boss Wednesday as it continues revamping its executive ranks under CEO Neville Isdell. In a memo to employees, Donald Knauss, the head of Coke's North America unit, said Javier Benito was resigning to pursue other interests after 10 years at the company. For the past year, Benito has been president of U.S. retail and chief marketing officer for Coca-Cola North America. Knauss said the company is splitting Benito's job in two. As such, the world's largest beverage maker is separating its U.S. retail division and its North America marketing unit. Melody Justice, who previously worked in strategy and planning, was named president of the U.S. retail division and John Hackett, who previously was general manager of Coca-Cola NA's hydration business unit, was named SVP/Marketing for the NA unit. Both will report to Knauss. Chief Creative Officer Esther Lee will lead a team charged with developing a new advertising and brand communications model.

February Radio & Television Business Report

"The Pros and Cons of Nielsen's Local People Meter and Arbitron's proposed Portable People Meter service"
After a rocky start, it's roll-out time of LPM & PPM. Will there be cooperation or more talk?

Engineered for Profit: "New tower standards coming: are you ready?" Did you know existing standards is currently in the midst of the biggest revision in years?

GM talkback: "How has LPM ratings changed selling in your market?" TV GMs say what they think-the good, bad and the ugly.

Media, Markets, and Money: Only one place tells it like it is with a run-down and overview of the biggest quarterly Radio and TV deals and outlook to 2005.

Media Markets & MoneyTM
Regent lets one 'RUN away
Bill Stakelin's Regent Communications is going to spin off one of its Utica-Rome radio stations, but it won't be faced with competing with it in the traditional sense. It is selling WRUN-AM to WAMC Northeast Public Radio for 275K. The buyer will take the station noncom. Jim Richards, a broker with John Pierce & Co., handled the deal for Regent, and told RBR that WAMC is active a number of upstate New York locations, including Albany, as well as one just across the state line in Great Barrington MA. WRUN will be its ninth station. WAMC is headed by Alan Chartock. Regent retains an AM and three FMs in the market, per the 2004 BIAfn Radio Yearbook.

Washington Beat
FCC reports on cable/satellite competition
For some time now, cable-rate foe John McCain (R-AZ) has been lamenting the fact that although cable and satellite competition is ubiquitous, it also isn't much of a competition (3/26/04 RBR #60). He says that from a consumer perspective, the only truly useful competition for a cable operator is another cable operator - - a rare occurrence because of the physics of stringing the cable in the first place. Now the FCC has produced a study which seems to bear the Senator out. It says there is potential for some movement by subscribers from cable to satellite as a means of gaining access to better programming, particularly when the local cable system has a limited offering of premium and high-def channels. It is also an option in the event of a severe increase in cable rates. Movement the other way is said to be limited, most likely by the long-term contracts subscribers enter into with the satellite operators. In either case, costs associated with moving from one service to the other limit the number of individuals who find it worthwhile to make a switch.

XM to air Dr Laura, G-Man, Kornheiser and Kennedy
XM Satellite Radio announced that Dr. Laura Schlessinger and Westwood One's (soon to be Radio America's) political talker G. Gordon Liddy will be joining the XM lineup in February. Also, former major league baseball manager and Fox baseball anchor Kevin Kennedy and acclaimed sports journalist Tony Kornheiser have joined XM's Sports, Talk and Music programming lineup for 2005.

Country music enjoyed double digit sales increase in 2004
The CMA announced early predictions of increased album sales of Country Music in 2004 proved true with 77,912,000 units sold from Jan. 5, 2004, through Jan. 2, 2005 - a 12 percent increase over 2003, which had sales of 69,311,000 units, according to figures released today by Nielsen SoundScan. | More... |

KZBS-FM CP Saint George-Cedar City (St. George UT) from Casper Learning FM Inc. to Nevada Public Radio.

WZOT-AM Rockmart GA from Triple J's Broadcasting LLC to Woman's World Broadcasting Inc.

| More... |

Stock Talk
Finally, an up day
Wall Street posted its first up session of 2005 on Thursday, despite an unexpected rise in weekly claims for unemployment benefits. A more important monthly report on the nation's job situation is due out today. The Dow Industrials rose 25 points, or 0.2%, to 10,623.

Radio stocks were also modestly higher. The Radio Index rose 1.248, or 0.6%, to 221.820. Regent rose 4%, Entravision 2.8% and Salem 2.3%. There was little reaction to Emmis' quarterly report. Its stock was up 0.8%.

Radio Stocks

Here's how stocks fared on Thursday

Company Symbol Close Change Company Symbol Close Change













Journal Comm.




Citadel CDL
15.00 0.00

Radio One, Cl. A




Clear Channel




Radio One, Cl. D




Cox Radio












Saga Commun.








Salem Comm.








Sirius Sat. Radio








Spanish Bcg.
















Viacom, Cl. A








Viacom, Cl. B








Westwood One








XM Sat. Radio




International Bcg.









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More on NOW's bashing of Clear Channel for giving away breast implants.

I've been in radio long enough to know that stations can pull off great promotions without sinking to childishness, as did Clear Channel with the "Breast Christmas Ever". A truly disappointing performance from an industry leader. On the other hand, I'd like to thank Clear Channel for not being PC on this one and calling it the "Breast Happy Holiday Ever".

Roger Lonnquist
KJJC-TV, Helena, MT


Market Results
| Albuquerque |
| Baton Rouge |
| Charleston |
| El Paso |
| Greenville |
| Jackson |

Upped & Tapped

iBiquity adds
retail industry vet
iBiquity Digital announced it has hired Bernie Sapienza to spearhead a nationwide retail program supporting the rollout of HD Radio technology. As VP/Retail business development, Sapienza will coordinate efforts with manufacturing sales/training teams, distribution channels and retailers to promote the sale of HD Radio receivers, with an initial focus on those markets with a high concentration of HD Radio stations.

Braun upped in Philly
Don Braun has been named VP of Sales and Marketing for Greater Media's Philadelphia Radio Group. Don was appointed DOS for the group in March of 1999. In addition to his responsibilities as DOS, he will now work with all four stations on advertising and marketing campaigns.

Stations For Sale

Rated Market AM Coverage
Bristol, TN (#98) and adjacent Western Virginia Coverage with two great AM's. Priced to Sell!
Cliff at Clifton Gardiner & Co (303)758-6900
[email protected]

Tennessee / Alabama Border AM
2.5 KW AM on border with Rated Market Coverage (#118). Motivated Seller! Cliff at Clifton Gardiner & Co (303)758-6900
[email protected]

10 Station (One State) Cluster
Four Markets with $900K Trailing Cash Flow. Excellent Management. Located in Far Northwest.
Cliff at Clifton Gardiner & Co (303)758-6900
[email protected]

More News Headlines

TVBR - TV News

Fear Factor yak attack?
According to Reuters, a Cleveland man is suing NBC for a rat-eating segment included in the network's reality show "Fear Factor." The man is saying the show caused him to throw up, and is asking for 2.5M.

Editors Note: As a fan of the Washington Redskins, I was nauseated a couple of weeks ago when Dallas Cowboys quarterback Vinnie Testaverde completed a last-minute bomb for a game-winning touchdown. May I sue Fox Sports for broadcasting that sickening event? We would point out to the man from Cleveland that his television should come equipped with some sort of channeling device, and suggest that he use it.

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

Staples abandons Sinclair
Office supply retailer Staples Inc. has said that it will discontinue buying advertising time during the local news segments of any Sinclair Broadcast Group stations on a nationwide basis. Staples sent a simple and noncontroversial explanation to consumers asking about its advertising plans. "As a result of Staples' ongoing review of its advertising media buy activity, Staples will no longer be airing advertising on any Sinclair station's local news programs as of 1/10/05." TVBR observation: Goodbye Staples but Hello Office Depot, should make a move and fill the time and take over the positioning that Staples established with Sinclair. Called Strategic Brand Marketing - AHH - No charge for the suggestion. 01/06/05 RBR #4

Billing Stern for Sirius hype was months in the making
railing at his one-time Infinity co-worker, Citadel Broadcasting CEO Farid Suleman, for sending him a bill for 200K, but it appears the idea of billing Stern for his on-air promotion of Sirius Satellite Radio actually originated with Citadel COO Judy Ellis. In fact, she proposed the idea in the group head supersession at last October's NAB Radio Show in San Diego. "I'm gonna charge them," RBR observation: Bravo, you use their space then pay for the time. 01/06/05 RBR #4

They said it in 2004: May
Satellite started to gain more attention and look it came true - "Do we want Opie & Anthony? Do we want Mancow? Do we want Howard Stern? We're talking to all of them." - Sirius Satellite Radio CEO Joe Clayton at the company's annual shareholders meeting.
01/06/05 RBR #4

Clear Channel contest condemned
"The Breast Christmas Ever" has put Clear Channel back in the news. A contest which will award breast implants to women contestants was run on four stations, including WKQI-FM Detroit, WFKS-FM Jacksonville, KSLZ-FM St. Louis and WFLZ-FM Tampa. The National Organization for Women has been leading a campaign protesting the contests. NOW encouraged an email campaign directed at both CCU CEO Mark Mays and the FCC. According to reports, Clear Channel HQ disavowed any knowledge of the contest, saying such decisions are made by local programmers.
RBR observation: It seems that the local decision alibi is a little weak when such a distinctively entitled contest shows up in four very different, geographically diverse cities. Maybe this contest didn't originate in San Antonio, but sure doesn't look like an entirely local operation, either. Executives at CCU's HQ - the word the industry would speak is not called Disavowed - but called Accountability.
01/05/05 RBR #3

They said it in 2004: April
Responsible programming was on the hit list and this is one of many great liners - "I don't think anybody came here today expecting to walk out with a firm imperative. It's not going to be resolved in 30 days or even 60 days." - - NAB President/CEO Eddie Fritts on the Summit on Responsible Programming. 01/05/05 RBR #3

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