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Welcome to RBR's Daily Epaper
Volume 25, Issue 50, Jim Carnegie, Editor & Publisher
Wednesday Morning March 12th, 2008
Incredible News!
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Radio News ®

T.H. Lee betting on broadcasting
Thomas H. Lee Partners Managing Director Richard J. Bressler said that the way to read his company's proposed acquisition and privatization of Clear Channel was as a positive bet on the bright future of broadcasting in the digital era. He added that while the company would be free of the pressures of Wall Street, it would still be transparent, reporting to both bond holders and the FCC. At issue was the role of private equity in the telecommunications sector, topic of a hearing before the House Subcommittee on Telecommunications and the Internet. Ed Markey (D-MA) summed up the questions. He said the role of private equity in start-up businesses has a long positive history, but its investment in going concerns raises questions. The company is definitely coming in for financial gain, but in this sector, will that result in net loss to the public interest?

TVBR observation: Under questioning, Bressler testified that in no way is his company a "chop shop." More importantly, he explained that T.H. Lee sees opportunity at a time when most investment money is scurrying away from broadcasting.
| Read more here, including testimony summaries |

Lee Abrams
jumps to Tribune

Legendary radio programmer Lee Abrams is leaving XM Satellite Radio to join Tribune Company as its first-ever Chief Innovation Officer. "Lee's going to pump new life into our content, re-energize our brands, and get people thinking and working together like they never have before," declared Tribune President of Broadcasting and Interactive Randy Michaels. Like Michaels, Abrams is best known in radio, but has expanded his activities into a variety of media. "He invented the modern FM radio format, got satellite radio off the ground when no one gave it a chance, and managed to advise on the redesign of 'Rolling Stone' magazine and the launch of TNT Cable Network in his spare time," Michaels noted. Abrams has a broad mandate for his new job - charged with being responsible for innovation across Tribune's publishing, broadcasting and interactive divisions. "We have the resources to pioneer a new age of information and entertainment that re-invents and enlightens - and that is exactly what we are going to do!" said Abrams.

RBR observation: Sam Zell, Randy Michaels and Lee Abrams - what a team! Some people would find each and every one of them to be overbearing, off-the-wall and just plain nuts. Each of the three would probably take that as a compliment. No status quo thinking here. Will they be able to reshape the American media landscape by changing how 160-year-old Tribune Company approaches its various businesses? Will they turn this boring, old four-door media sedan into a turbo-charged hot rod? One thing is for sure - it will be fun to watch them try.

Bush vows to veto any Fairness Doctrine return
President George W. Bush was welcomed at the National Religious Broadcasters convention in Nashville yesterday as he delivered something the broadcasters wanted to hear - a pledge to veto any legislation to bring back the Fairness Doctrine. Bush told the gathering that such regulation would "stifle" the freedom of Christian broadcasters to spread their message. "We know who these advocates of so-called balance really have in their sights: shows hosted by people like Rush Limbaugh and James Dobson," the President said. Rather, Bush told the Religious Broadcasters, "you are the balance."

Morris: Broadcasters changing views on PPM
Arbitron CEO Steve Morris told the Bear Stearns 21st Annual Media Conference in Palm Beach that delaying Portable People Meter deployment was the right thing to do, not because there was any problem with the data, but because the company needed the "belief factor" to be there - for clients to have confidence in the ratings being generated. "We were getting strong, and I would say emotional pushback, from general market broadcasters and from ethnic broadcasters," Morris said of the decision to slow down the PPM rollout. The CEO said that delay has worked out extremely well, saying that in the trade press broadcasters are now saying, "wow, we don't look good, we're holding back from going from paper diaries to electronic measurement - buyers want us to move." Morris noted the vocal support from CBS Radio CEO Dan Mason for moving ahead with PPM and said that Radio One, which had previously been negative about PPM, has "swung around" and is actively using PPM data in Houston "and are celebrating their success." Earlier in his prepared remarks, Morris had noted that Media Rating Council is not a prerequisite for moving ahead with the PPM roll-out. He noted that it took 10 years to get Scarborough accredited "and we kept on selling the product. The next big deadline is June, when Arbitron will make its official decision on whether to go ahead with the planned roll-out restart in September, but Morris left little doubt yesterday that the go-no go decision is very likely to be go.

Changes at Bonneville International
Exec. VP & COO Bob Johnson (top) is taking direct responsibility as Salt Lake City Market Manager for TV and radio as Bruce Christensen retires the end of this year. Drew Horowitz (middle) has been named Exec. VP of Bonneville Radio, effective now, overseeing the other six markets, which means adding Washington, DC and Cincinnati to his existing oversight of Chicago, Seattle, Phoenix and St. Louis. In addition, DC Market Manager Joel Oxley (bottom) will add to his responsibilities oversight of the St. Louis market as Sr. Regional VP. "With Bruce Christensen retiring at the end of 2008, we are faced not just with replacing a very capable leader who has had a great deal of success. Given the size of the combined Bonneville brands - KSL 5 Television, KSL Newsradio,, KSFI-FM, KRSP Arrow 103.5, KUTR AM820 - in what is both Bonneville's and our owners' - The Church of Jesus Christ of Latter-day Saints - headquarters city, oversight of the Salt Lake operations is one of the highest profile jobs in the company," said President & CEO Bruce Reese.

Will House eschew Eshoo bill?
H.R. 4882, the "Broadcast Licensing in the Public Interest Act," is in the hopper, introduced by Anna Eshoo (D-CA), with four co-sponsors. If enacted into law, the eight-year broadcast licensing term would be reduced to three, and civic affairs, news, and locally produced programming would become a blanket requirement. The co-sponsors include Tammy Baldwin (D-WI), Linda Sanchez (D-CA), Zoe Lofgren (D-CA) and Jan Schakowsky (D-IL). At license renewal time, a station would have to demonstrate the following: "(i) a dedication to the civic affairs of its community; (ii) a dedication to local news gathering; (iii) local production of programming; (iv) a commitment to providing the viewing public a presentation of the issues, candidates, and ballot items that are before voters during a local, statewide or national election, including coverage of candidate debates and forums, political conventions, and ongoing news coverage; and (v) presentation of quality educational programming for children."

RBR observation: Frankly, we'd be a little surprised if this even sees the light of day in committee, much less make it to the floor, earn a 50% plus one vote, get through the Senate, and received a presidential autograph. In the unlikely event it does all that, the very first judge who has ever read the First Amendment will slay it faster than a voracious frog can zap a fly.

Wall Street Business Report TM
Debut makes its debut
Yesterday marked the first quarterly Wall Street conference call for Debut Broadcasting, which just this week announced the purchase of its sixth and seventh radio stations - all in small, unrated markets. CEO Steven Ludwig told investors that despite what they may have heard about the travails of large market operators, the medium and small markets "have been in a different business for some time now." As the company grows its small market platform, Ludwig said two other stations are currently under letters of intent and he expects to grow the group to 15-20 by the end of this year. Debut is also in the syndication business as Impact Radio Networks and growth is foreseen there as well. According to its SEC filing, Debut had just under three million in revenues in 2007, a 7.9% increase over the previous year. About two-thirds of that revenue came from Dial Global, which handles national representation of Debut's syndicated programming. Ludwig said he expects that ratio to change, not because Dial Global will be selling any less - in fact, he expects them to sell more national advertising - but because he expects Debut to sell more advertising in-house, particularly for sponsorships as opposed to spots. Debut Broadcasting became a public company last June via a merger with an existing public shell.

Ad Business Report TM

Ken Taylor to run GM Planworks, post-Donlin
Starcom MediaVest has tapped Ken Taylor to return to GM Planworks as GM/President, replacing Dennis Donlin, who is resigning, effective 4/1. Taylor is EVP/group client leader at Starcom Chicago. SMG also announced the evolution of its GM Planworks unit from a stand-alone service operation to a more integrated model. The dedicated service team will retain expertise across all communication contact points, and will be fortified by a closer alignment with contact experts and resources across SMG. "The independent GM Planworks model was the right response to the marketplace realities we faced with GM in 2000," said Laura Desmond, CEO-The Americas at SMG. "That landscape-both in our industry and the automotive industry-is different today, and it continues to shift. Just as the business of capturing consumer attention continues to evolve, we need to re-imagine and adjust our service models to stay ahead and advance GM's market-making competitive advantage." Formerly EVP/group client director at Starcom USA, Taylor was lead on the Kellogg's and LEGO media businesses. As part of the leadership team that helped launch GM Planworks back in 2000, Taylor spent close to four years in Detroit as SVP/Managing Director before relocating to Starcom's Chicago HQ. His prior position at GM Planworks was SVP-managing director, and he was part of the team that helped form the agency dedicated to buying and planning for GM's 3 billion annual media budget.

National Grid names Mullen AOR
Mullen is the new AOR for National Grid, one of the largest energy delivery companies in the U.S. Mullen was awarded the business following a review. National Grid, which serves electricity and natural gas customers in New England and New York, will work with Mullen on integrated marketing, including a brand launch and ongoing product and service marketing, customer relationship management and energy efficiency programs. Mullen begins work effective immediately. Media budgets will be determined as part of a strategic development process. Planning and buying will be handled by mediaHUB from Mullen.

Media Business Report TM
Global IPTV subscriptions hi 12 million at end of '07
The total number of IPTV subscribers grew by 117% in 2007 to reach 12.34 million, up from 5.71 million at the end of 2006, according to new research Informa Telecoms and Media. The biggest world region by far remains Western Europe, which passed 6.9 million IPTV subscribers in 2007 to account for 57% of the global total. The bulk of subscriptions were in France, where incumbent France Telecom and alternative operators Free, Neuf and Telecom Italia's Alice, had attracted more than 5 million IPTV customers by bundling the service free with broadband. France is in a league of its own when it comes to IPTV subscriptions. The country has nearly 10 times as many IPTV subscriptions as second-placed Spain and close to 75% of the Western Europe total. The US too, has begun to make headway, adding more than one million customers in 2007, largely on the back of fiber-to-the-home (FTTH) roll-outs led by Verizon (FiOS) and AT&T Broadband. Less than half of the broadband subscribers in the US, connected using FTTH view their TV over their broadband connection. Relative to competing multi-channel platforms, IPTV is still in the first phase of roll out and growth, with just 55 operators representing over 99% of global IPTV subscribers and IPTV itself representing less than 3% of all global multichannel subscribers.

Media Markets & Money TM
Not the first time for First customer
Results Radio of Sacramento has inked a deal to acquire KCCL-FM, bringing Cool Oldies to California's capital under the guidance of owner First Broadcasting Sacramento, itself a subsidiary of First Broadcasting Investment Partners. Results Radio is a partnership featuring as CEO the long-time Sacramento broadcaster Jack Fritz. "We are delighted that long time local broadcaster Jack Fritz and his partners are acquiring KCCL, said the seller's Gary Lawrence. "Jack is very community focused and an outstanding station operator." The price was not immediately released.

Washington Business Report TM
Live from Minnesota:
Its Al Franken

Saturday Night Live veteran Al Franken has had a major hurdle cleared en route to his attempt to challenge Norm Coleman (R-MN) for the Minnesota Senate seat opposite that of Amy Klobuchar (D-MN), who was able to hold the seat of retiring Mark Dayton (D-MN) for her party over Mark Kennedy. Franken was facing a stiff challenge for the 2008 Democratic nomination from Mike Ciresi, but that is now a thing of the past due to Ciresi's just-announced withdrawal. It had been a battle between Franken's celebrity-fueled fundraising ability v. Ciresi's own personal fortune, which Franken appeared to be winning. Franken was able to win the battle of union endorsements. He still has to contend with a college professor, Jack Nelson-Pallmeyer, before earning the right to take on Coleman.

RBR observation: Democrats are starting to think they have a chance at getting a filibuster-proof 60-40 edge this year, and this will be a key race if they're going to pull it off. At the moment, CQ Politics rates it "No Clear Favorite," another way of saying toss-up. Some Democrats in Minnesota fear that Franken's long career as a television comedian will be a wellspring of quotes for Coleman to use; this is even more true of material which can be gleaned by his books, going back to "Rush Limbaugh is a Big Fat Idiot." Those looking for this contest to turn into an electoral version of late night topical comedy television have been disappointed, as Franken has been on his best behavior thus far.

Entertainment Business Report TM
Mega-concert this Saturday
What do you get when you assemble 1,000 musicians in a single room for a performance? We'll find out this Saturday (3/15) as the massive orchestra is assembled cavernous Colisée Pepsi sports arena in Quebec City to perform Gustav Mahler's Symphony No. 8. The two-hour concert to launch the French Canadian capital's year-long 400th anniversary celebration will be broadcast and streamed live by the WFMT Radio Network, including live presentations on flagship WFMT-FM Chicago and Steve Robinson, WFMT's general manager and executive producer for the Mahler broadcast, says the concert is being offered free, for live or later broadcast, to any radio station that's interested.

Internet Business Report TM
CRB royalty scheme rates a lawsuit
The National Association of Broadcasters is joining with Bonneville International and the National Religious Broadcasters Music License Committee in challenging the rate schedule imposed by the National Copyright Board on internet music streaming. A key complaint: "The Board's threshold ruling that terrestrial radio stations that stream their stations on the Internet ("Simulcasters") must pay a per-performance, per-listener royalty, instead of an annual flat fee royalty, was unlawful." CRB is supposed to enforce an agreement that "a willing buyer and willing seller would have negotiated in the marketplace," among other things, and the plaintiffs say they produced ample evidence that this means a flat rate fee rather than the per-performance per-listener regime CRB came up with. The lawsuit will be filed in the DC Circuit.

Even if the Board could have justified a per-performance fee structure for Simulcasters, the Board's determination of the precise royalty rates was unlawful for four principal reasons. First, the Board's decision to use royalty agreements between record companies and interactive webcaster services as benchmarks was arbitrary and violated the Act's "willing buyer/willing seller" standard. Although the statute permits the Board to look at rates and terms from market agreements involving "comparable types of digital audio transmission services," interactive services are not remotely "comparable" to the non-interactive services at issue here. Second, the Board's brief discussion of why Simulcasters should not pay a lower per-performance rate than Internet-only webcasters was arbitrary and failed to consider the record evidence. Third, the mathematical model on which the Board relied in its attempt to adjust for indisputably significant distinctions between interactive and non-interactive services produces absurd results, and the Board's one-sentence rejection of Simulcasters' criticisms was patently arbitrary. Fourth, the Board did not consider the record evidence in refusing to permit Simulcasters to use the alternative "aggregate tuning hours" method for calculating royalties.

Ratings & Research
TNS creates TNS Media
TNS announced that it has created a new entity called TNS media. The move combines the North American operating units TNS media intelligence and TNS media research along with newly-acquired companies Compete and Cymfony under one business unit. Building on the company's leadership position in providing clients with a comprehensive suite of marketing, media and audience insights, TNS media will strengthen the company's ability to provide global measurement and analysis of consumer behavior across all media and digital platforms. "With the formation of TNS media and our acquisitions of Compete and Cymfony, this new group is set to expand our digital measurement capabilities and provide a single platform to deliver our services globally throughout the TNS network of companies and partners," said David Lowden, chief executive of TNS. Concurrently, TNS announced Dean DeBiase has been appointed Chief Executive Officer of TNS media, overseeing all North American operating units, including TNS media intelligence; TNS media research; Cymfony, a brand monitoring and analytics company sifts and interprets the millions of voices at the intersection of traditional and social media to gain insights that help organizations understand people, issues and trends impacting their business; Compete, a leading digital intelligence company which helps global brands to improve their marketing based on the online behavior of millions of consumers.

HD Radio 2008
HD Radio takes center stage at MERA
iBiquity Digital will be featured as the Platinum Sponsor of the 2008 MERA (Mobile Enhancement Retailers Association) Knowledgefest, March 15-18 in Louisville, Kentucky. HD Radio broadcasting will be an integral part of MERA this year, and with over 15 devices on display, it will be easy to get an up-close look at what the technology has to offer. In addition to HD Radio's booth (#127), attendees will also be able to experience HD at six partner booths, four product training sessions, and an in-vehicle demo.

105K KAND-AM Corsicana TX from Corsicana Media Inc. (Richard I. Clark) to Yates Communications LLC (David Yates, Darren Yates). 5K deposit, balance in cash at closing. [File date 2/11/08.]

Stock Talk
Investors cheer the Fed
Stock prices were up sharply Tuesday, after the Federal Reserve announced plans to pump 200 billion bucks into the US credit markets. The Dow Industrials soared 417 points, or 3.6%.

Almost all radio stocks were higher. The RBR Radio Index jumped 4.655, or 6.1%, to 81.496. Double-digit gainers included Westwood One, up 18.7%, Citadel 16.4%, Salem 16%, Emmis 14.5% and SBS 11.5%.

Radio Stocks

Here's how stocks fared on Tuesday

Company Symbol Close Change Company Symbol Close Change




















Journal Comm.







Lincoln Natl.




Citadel* CDL
1.70 +0.24

Radio One, Cl. A




Clear Channel*




Radio One, Cl. D*




Cox Radio*












Saga Commun.*




Debut Bcg.




Salem Comm.*








Sirius Sat. Radio








Spanish Bcg.*








Westwood One*








XM Sat. Radio













*Component of the RBR Radio Index


Send Us Your OpinionsWe want to
hear from you.

This is your column, so send your comments and
a photo to [email protected]

Taking issue with Jim Boyle
This reader doesn't think much of the suggestions for the radio industry from CL King analyst Jim Boyle (3/4/08 RBR #44).

WOW-- That is the biggest bunch of bull I've heard in a long time - Does Boyle realize how many baseball hats and emails you'd have to sell to make an idiotic idea like that work?

This is the kind of thought process that's circling Radio - it's like watching the employees of the Pony Express wonder what they were going to do after they saw the train and telegraph coming. Yes, I was there - it had to feel much like being in radio today-they didn't stand a chance.

Radio, however, does - P-1's and human beings are only interested in CONTENT - also they want to feel connected again to fun irreverent people who share the same lifestyle.

We have programmers trying to program formats they know nothing about, let alone knowing anything about the listeners' lifestyles - sure they're fully equipped with stereotypes and hearsay - but most are so busy trying to program so many stations they themselves have no visible lifestyle.

Please stop the Chinese fire drill and develop local content.

Jeffrey S Woodbury

Below the Fold
Ad Business Report
Ken Taylor to run
GM Planworks, post-Donlin...

Media Markets & Money
Not the first time
For First customer, Results Radio has inked a deal to acquire...

Washington Business Report
Live from Minnesota:
Its Al Franken has had a major hurdle cleared en route to his attempt to challenge for...

Internet Business Report
CRB royalty scheme
Rates a lawsuit and will be filed in the DC Circuit....

Dload - Powering Interactive Marketing

Stations for Sale

Market your Stations For Sale
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Jim Carnegie
[email protected]

the Hot List on...

Radio Media Moves

Handing the baton
JP Engelbrecht has been named CEO of South Central Communications. His father, John D. Engelbrecht, will continue as President and Chairman of the Board of Directors.

More News Headlines

Goin' to the show
The NAB Show in Las Vegas is on the calendars of FCC Commissioners Jonathan Adelstein (D) and Deborah Tate Taylor (R). They'll be the featured guests at the Regulatory Face-off pegged for Tax Day, 4/15/08. But you don't need to wait until then to see them outside the walls of The Portals in SW Washington. This Friday, 3/14/08, they will be joined by colleagues Michael Copps (D) and Robert McDowell (R) at the American Women in Radio & Television 2008 Leadership Summit & Business Conference. That event kicks off Thursday 4/13/08 and runs through Saturday. Also on the playbill are Candy Crowley, Bonnie Press, Henry Rivera, Suze Orman and others.

RBR observation: Perhaps they will use this forum to make a joint pitch to Congress from afar to just go ahead and process their renominations to the Commission. It looks like they are going to be hung up due to maneuvering tied to the possible changing of the guard at 1600 Pennsylvania Ave. NW. If Tate has any questions, she need only lean over and ask Adelstein, who has been there and done that more than once.

Google closes acquisition of DoubleClick
Google announced it has completed its acquisition of DoubleClick, a company that offers online ad serving and management technology to advertisers, web publishers and ad agencies. Said Eric Schmidt, Google's CEO: "With DoubleClick, Google now has the leading display ad platform, which will enable us to rapidly bring to market advances in technology and infrastructure that will dramatically improve the effectiveness, measurability and performance of digital media for publishers, advertisers and agencies."

FOX News Radio - The Race Is On

RBR Radar 2008
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

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.

RBR observation: 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. More to this report and RBR observation on this page.
03/11/08 RBR #49

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.

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.
03/11/08 RBR #49

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

RBR Classifieds

Account Executives
WDCW-TV, Washington's CW has two immediate openings. First, for entry-level AE and Second, need an experienced New Business local AE. Highly motivated self-starters who have the ambition to be successful apply. Winning attitude is important. Requirements include ability to develop long-term relationships and have strong closing skills. Must be well-organized and possess excellent presentation skills. EOE Where to apply see TV Careers

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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