Welcome to RBR's Daily Epaper
Volume 22, Issue 51, Jim Carnegie, Editor & Publisher
Monday Morning March 14th, 2005

Radio News®

Disney gives CEO nod to Iger
After press reports began to leak out over the weekend, the board of directors at the Walt Disney Company announced late yesterday that it had unanimously chosen President Bob Iger to move up to CEO when Michael Eisner retires - - a decision that is certain to set off a new shareholder revolt. Having succeeded in winning the day for his hand-picked successor, Eisner announced that he is speeding up his retirement timetable and will step down on September 30th of this year. The Wall Street Journal's website was first to report over the weekend that EBay CEO Meg Whitman withdrew from consideration for the Disney post late Friday - - and that Iger was the only other candidate remaining. Whitman's withdrawal, which was confirmed by an EBay spokesman, came just hours after former Disney directors Roy Disney and Stan Gold sent a letter to the current board demanding that Eisner be kept out of the interview process to select his successor because he had already publicly endorsed Iger. "This is not a decision that should be abdicated to Michael Eisner," they said. Indeed, the LA Times reported that News Corporation COO Peter Chernin had refused to be interviewed for the Disney job because Eisner would participate in the interview. "Bob is an experienced, talented and visionary leader who has made crucial and substantial contributions toward Disney's strong performance. On behalf of the entire Board, I want to express how excited we are at the prospect of Bob leading this extraordinary company and talented management team to new levels of financial and creative success in the years ahead," said Disney Chairman George Mitchell in announcing the selection. "It is truly an honor to be entrusted with the responsibility of guiding this great company that occupies such an important place in the hearts and minds of millions the world over toward a very bright future. It's also an honor to work with our incredibly talented and dedicated worldwide team. I feel all the more privileged to succeed Michael, whose tremendous 20-year leadership and enormous accomplishments have built this company into the world's preeminent leader in family entertainment," said Iger in the company statement.

RBR observation: If you've been reading "DisneyWar" by James Stewart, get ready for the sequel - - Disney War II - - as Roy Disney and Stan Gold go ballistic over the current board anointing Iger after such a brief and half-hearted search for outside candidates. Since it's nearly a year until the next scheduled shareholders meeting, we'd guess that the two will strike while the iron is hot and start soliciting support to call a special meeting and try to fire the entire Disney board. It should be interesting.

Stevens holds forth on indecency
The powerful Chairman of the Senate Commerce Committee says he has plans to get to work on the Broadcast Enforcement Act very soon, and that he will make an attempt to bring MVPDs (Multichannel Video Programming Distributors) into the indecency enforcement mix. The House has already passed a bill which would raise the maximum single-offense fine from 32.5K to 500K. Any attempt to bring in MVPDs, which generally refer to cable and DBS operators, would have to be resolved in conference committee. On the immediate prospects of the BDEA, Stevens said, "I think we'll probably try to report out a Senate bill and on the floor put it in as a substitute to the House and to conference. I think what they've done is grand. I really think we have a wonderful working relationship with the House. I think Chairman Barton really is right on it and we're going to try and work together. They started it first over there. In the end it will be a House bill, it will be a House number, we'll work it out with them. They haven't really, they didn't get into this level playing field like I did, but I, you know, I've been waiting to be Chairman so I could do this and I want to do it, so I'm going to try. We don't know yet where the votes are on the floor, but I haven't had many objections, any objections to the floor yet." Here are some more of Sen. Stevens' comments on the topic. | More... |


EEO audits for 2005 kicked off
The FCC initiated EEO audits which figure to involve 5% of all broadcast and MVPD operators under the FCC's purview. Notification to randomly selected participants went out 3/7/05. This first round involves only a fraction of this year's haul - - the rest will be selected and notified as the year progresses.

RBR observation: All of the call letters in the first round fell alphabetically between KACT and KGZO for western radio stations; and between WACE and WFRH for eastern radio stations. TV call parameters, not counting LP and CA facilities, went from KAPP-TV through KIPT-TV in the west, and WAND-TV through WMED-TV in the east. It is our considered opinion that if your call letters fall within these parameters, you are probably safe for the rest of this year. If they are further down the alphabet, you are probably still vulnerable to a 2005 EEO audit. We can detect no similar pattern in the randomly generated list of to-be-audited cable systems.

Did companies open a translator store?
Prometheus Radio Project, as you may recall, was the low power FM activist group which was the eponymous litigator in the battle, along with others, against the infamous FCC 6/2/03 ownership ruling at the Third Circuit Court in Philadelphia. Now it is charging that LPFM licenses are being blocked by applications for thousands of similarly-powered FM translators by a trio of companies. | More... |

Even if Snow is pro-Bono, it'll be no Bono
We have to admit at the time it seemed that maybe Treasury Secretary John Snow was attempting to benefit from a small bit of innocent "hip by association" when he refused to rule out U2 front man Bono as a possible new head for the World Bank (3/8/05 RBR #47). A spokesman for the singer has said unequivocally that Bono would prefer to continue in the role in which he thinks he can be most effective, as an outside agitator, according the Reuters. A spokesperson for an activist group with which he has ties said "...there are no circumstances in which Bono would be nominated or accept the World Bank job."


Adbiz©

GM puts 3 billion account up for grabs
Mark LaNeve is wasting no time shaking things up after being but in charge of all domestic sales and marketing at General Motors early this month (3/3/05 RBR #44). He's put the company's entire US media buying account up for review. The GM account, which totaled nearly three billion bucks in ad buying last year, is apparently the largest ad contract ever put up for bid. It covers buying for both General Motors and its regional dealer groups. LaNeve is looking for new ways to boost sales for GM, whose US market share has fallen to a historic low. GM's domestic sales were down 13% in February. GM sent out letter Friday saying it had begun reviewing operations with its current media buyer, General Motors Mediaworks, which is owned by Interpublic Group. Rival Starcom Mediavest, which is owned by Publicis Group, was one of those invited to bid on the account. Starcom currently handles GM's media planning.

RBR observation: Ok you were not there at the 4A's this year when the buzz was creative and the problems agencies are having wrestling the issue under control. Reminder: LaNeve stated he wants to keep auto offers simple in the market place and be more targeted on incentives by models and regions of the country. In short: Price the car right and no incentives. LaNeve was the point on re-branding the Cadillac division so successfully he is now the man in charge of 3 billion bucks and the up front season is around the corner. So, now do you think LaNeve is going to commit all that cash at one time?

Holiday Inn takes signs campaign to national TV audience
Holiday Inn Hotels and Resorts launched a national television campaign, the first beyond Nickelodeon since the brand ended the "Mark" campaign in 2002. An evolution of the 'Signs' print campaign introduced in 2003, the four 15-second television ads feature the iconic "Great Sign" against pastoral landscapes that emulate the emotional experience of an driving up to a Holiday Inn property and use a lighthearted approach to call out two of the brand's key defining hallmarks, full-service restaurants and free high-speed Internet access. nThe series of ads, via Fallon Minneapolis, continues the theme of the print campaign that celebrates the Holiday Inn legacy and targets the values of its core guest, the "Everyday Hero." The ad began airing 3/7 on TBS, TNT, A&E, Travel Channel, CNBC, Fox News, The Weather Channel, MSNBC, CNN, Headline News, ESPN, ESPN2, Fox Sports, FX, Speed, The History Channel and USA networks for a total spend of nearly 10 million, just in time to take advantage of the summer travel season. Beyond the nearly 10 million for television, the remainder of the 14M budget is dedicated to airport, print, billboard and online. Airport dioramas are currently in-market in Atlanta, Denver and Chicago, and print continues to rotate through USA Today, Time, Money and US News & World Report. Online outlets complement the cable TV buys, with ads running on espn.com, CBSsportsline.com, weather.com, cnn.com, foxnews.com, yahoo.com and msn.com. Billboards will go up this summer in key feeder markets, and a new brand spot aimed at family travel is scheduled to launch in early May, closer to the peak summer travel months.

Yahoo seeks to expand
in Google territory

Yahoo is poised to launch an ad network for small Web publishers styled on a similar offering from Google, sources familiar with the plan told CNET News.com, a move that promises to sharpen competition between the search giants. While Yahoo and Google already go head-to-head for major search advertising partners such as America Online, Google has largely enjoyed a monopoly serving its signature text-only ads to smaller publisher Web sites, including ever-more-popular blogs. Now Yahoo plans to launch its own advertising option for small publishers, a source familiar with the plan said. Like Google's service, Yahoo's self-serve product will display text ads deemed relevant to the content of specific Web pages. Advertisers pay only when a reader clicks on their ad. Yahoo and publishers will split the fees.

DDB names Scarpelli Chief Creative Officer
Bob Scarpelli has been named worldwide Chief Creative officer of Omnicom Group's DDB. A 28-year veteran of DDB, Scarpelli, 52, will retain his title of chairman of DDB's Chicago office as well.


April Radio & Television Business Report

Be sure to catch our blockbuster April NAB issue:

One on One: We interview outgoing NAB CEO Eddie Fritts.

Feature: What kind of individual would industry leaders like to see head the NAB?

AdBiz: But will they buy it?
We ask agencies and the industry about support for new, unproven formats.

Media, Markets and Money: We check the financing climate: Is financing still readily available for radio and TV deals?

Advertisers: Don't miss this opportunity to appear in Eddie Fritts' farewell interview!
Call Today, space is limited.

June Barnes at 803-731-5951 or
Jim Carnegie at 813-909-2916

Don't miss your copy!


Media Markets & MoneyTM
Cincinnati noncom doubles up
Xavier University in Cincinnati is contemplating some upgrades, and to make them come off it is reluctantly spinning off its WXVU-FM. Cincinnati Classical Public Radio Inc., operator of WGUC-FM, has come up with 15 million bucks to accommodate these plans and take over the station. According to Greg Guy and Larry Patrick of Patrick Communications, who represented the seller, and Marc Hand of Public Radio Capital, who represented the buyer, a number of stations are coming along for the ride, all affiliated with WXVU. Known as the X-Star Network, they include WVXW-FM West Union OH, WVXR-FM Richmond IN, WVXM-FM Manistee MI, WVXC-FM Chillicothe OH, WVXH-FM Harrison MI, and WVXA-FM Rogers City MI. The new owners figure to go fulltime Classical on WGUC, and use WXVU for News and Talk programming. It says, however, that it will sit down with WXVU's current listeners to discuss the stations direction in the immediate future. "Obtaining a second frequency to better serve both our Classical Music and News audiences has been a core part of WGUC's ongoing Strategic Plan for the past five years," said WGUC President/GM Richard Eiswerth.

Salem spins one in Cleveland
Religious giant Salem Communications has decided that it can get along fine with just an FM and two AMs in the Cleveland market, thank you very much. As such, it is putting into motion the sale of WCCD-AM, which serves the market from suburban Parma OH. The buyer is New Spirit Revival Center Ministries, headed by Darrell C. Scott. The deal, which dates back to last August, is an activated LMA/option worth 2.1 million. The LMA began 9/1/04. Salem retains WFHM-FM, WKNR-AM & WHK-AM in the market.


Washington Beat
More No. 37 FMs waved through
Another batch of CPs, resulting from last fall's Auction No. 37, have been cleared to approach the runway. The lucky licensees-to-be must have their final cash payments in by 3/25/05 this time around, with a grace period drop dead date of 4/8/05 providing the ultimate note of finality. The FCC's latest Friday announcement has the smallest payload to date, listing only 14 auction winners. Last week one, College Creek, was named on 15 occasions all by itself. Today's group: College Creek Broadcasting: Maricopa, CA, Evanston, WY; Cumulus Licensing: Dinosaur, CO; David Wilson: two in Buxton, NC; Dockins Communications: Arcadia, MO; E-String Wireless: Kerrville, TX; Family Voice Communications: Moorcroft, WY; George S. Flinn Jr.: Judsonia, AR; Lina H. Jones: Redwood, MS; Iorio Broadcasting: Clarendon, PA; Radioactive: Mount Vernon, KY; Sungilt Corporation: Elaine, AR; and United States CP: Westcliffe, CO.


Programming
Tavis Smiley back on radio
After a falling out with National Public Radio late last year (12/1/04 RBR #233), Tavis Smiley is returning to radio and staying on the non-commercial side. His new show, "The Tavis Smiley Show," will debut April 29th on Public Radio International. According to PRI, the two-hour weekly show "will offer a unique blend of news and newsmakers in expanded conversations, along with regular high-profile commentators such as Cornel West, Connie Rice, J.C. Watts, and Michael Eric Dyson.

Bush-bashing net invades Texas
President Bush's home state is getting its first outlet today for Air America Radio, with Tom Castro's Border Media Partners (BMP) flipping KOKE-AM Austin to the Bush-bashing liberal net. Al Franken will be doing his show live from Austin today to mark the entry into the Republican President's home state - - although Austin is a decidedly liberal outpost in conservative Texas. Three more BMP AMs in Dallas, McAllen and San Antonio will pick up Air America in the coming weeks and months. Although Castro is a Democrat partisan - - he was John Kerry's deputy national finance chairman - - he tells RBR, "We're doing this because we think it's a good business opportunity." He notes that BMP airs Rush Limbaugh and Sean Hannity in McAllen. "We'll put anybody on the air as long as it's legal, decent and can get an audience - - and we can sell it," he said.


Monday Morning Makers & Shakers

Transactions: 1/31/05-2/4/05
The money came back as we skated into February - - the month's total deals were just shy of the 100M threshold, largely due to Barnstable's superduopoly spin-off in Norfolk. There was one small TV deal, involving three Montana CPs, which had something in common with the big radio deal - - the same buyer. Details below.

1/31/05-2/4/05

Total

Total Deals

12

AMs

6

FMs

11

TVs

3
Value
96.465M
| Complete Charts |
Radio Transactions of the Week
Maximizing your holdings at home
| More...
|
TV Transactions of the Week
Three strikes for Max in Montana
| More...
|


Transactions
KNIK-FM Anchorage AK from Ubik Corporation to Tati Broadcasting LLC.

KTTP-AM Alexandria LA (Pineville LA) from Peoples Broadcasting Network LLC to Benjamin-Dane LLC.

WSVS-AM Crewe VA from Colonial Broadcasting of Crewe Inc. to Gee Communications Inc.

| More... |


Stock Talk
Trade deficit up, stocks down
Stocks took a dive Friday as investors worried that a near-record trade deficit would trigger inflation. The Dow Industrials fell 77 points, or 0.7%, to 10,774.

Radio stocks somehow bucked the trend and were slightly higher. Clear Channel led the way with a 2.2% gain. Rumors were running around the Internet that the company would bid to buy out other shareholders of XM Satellite Radio, but that was probably not behind the price gains, since such a deal (which is highly unlikely) would not be accretive for Clear Channel.


Radio Stocks

Here's how stocks fared on Friday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

39.24

-0.17

Jeff-Pilot

JP

48.66

-0.34

Beasley

BBGI

18.08

-0.06

Journal Comm.

JRN

16.62

+0.10

Citadel CDL
14.24 -0.01

Radio One, Cl. A

ROIA

13.18

+0.08

Clear Channel

CCU

33.73

+0.73

Radio One, Cl. D

ROIAK

13.18

+0.12

Cox Radio

CXR

16.97

+0.13

Regent

RGCI

5.11

-0.09

Cumulus

CMLS

14.41

+0.22

Saga Commun.

SGA

16.31

+0.24

Disney

DIS

27.59

-0.41

Salem Comm.

SALM

22.05

-0.37

Emmis

EMMS

19.32

+0.20

Sirius Sat. Radio

SIRI

5.36

-0.09

Entercom

ETM

35.82

-0.07

Spanish Bcg.

SBSA

10.70

-0.10

Entravision

EVC

8.50

+0.10

Univision

UVN

27.84

-0.27

Fisher

FSCI

51.61

+0.19

Viacom, Cl. A

VIA

34.39

-0.16

Gaylord

GET

42.63

+0.37

Viacom, Cl. B

VIAb

34.00

unch

Hearst-Argyle

HTV

25.45

-0.17

Westwood One

WON

20.93

-0.06

Interep

IREP

0.51

unch

XM Sat. Radio

XMSR

29.86

-0.46

International Bcg.

IBCS

0.01

unch

-

-

-

-

-



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Bounceback

Send Us Your OpinionsWe want to
hear from you.

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

This reader gives his take on the :30s vs. :60s issue.

Offering both 30's and 60's has always made more sense than calling all commercials "units." Because a unit, with rare exception, always turned out to be a sixty. From a revenue viewpoint, 12 units taking up 12 minutes (@ 100 bucks apiece) nets you 1,200. You can match this revenue with a combination of six sixties (@100 apiece) and eight 30s (@75 apiece). Bottom line, same money with ten minutes of commercials versus twelve minutes of commercials. This also means shorter breaks (four 2 1/2 half minute breaks versus four 3 minute breaks). And, of course, those two "extra" minutes could be sold, giving you +25% more revenue that hour. Using the above rates, it is a better deal for the client. 25 :60 commercials versus 33 :30 commercials. We call it MR.... More Repetition. Then, of course, since you are playing less commercials, why not promote it? Here's our campaign that promotes "less commercials" while at the same time keeps the dial position (and the music) in front of those folks with diaries sitting on their coffee table. Check it out.

Carl Strandell
GM, WPGA Macon, GA
Register Communications


Arbitrends

Arbitron
Market Results
| Greenville |
| Huntsville |
| West Palm Beach |


Upped & Tapped

Talk chief at ABC
ABC Radio has named Phil Boyce Vice President of Programming for the eight ABC O&O News/Talk Stations. He will continue to program WABC-AM New York and oversee "The Sean Hannity Show" for ABC Radio Networks.

Travis Loughran named Wild 94.9 APD & MD
CC Radio Regional VP/Programming Northern California Dennis Martinez announced the promotion of Travis Loughran to Wild 94.9 (KYLD-FM San Francisco) APD and MD.

Honea joins WRN
as Director of
Affiliate Relations
Erle Younker, VP/General Manager of Waitt Radio Networks, announced Rick Honea has joined the organization, heading up the A/R Regional Manager staff and being responsible for affiliate service. He brings 22 years of network radio experience, starting as one of the original team members of Transtar when it pioneered satellite delivered formats for radio.


More News Headlines

Competing Media

Documents unsealed from Meredith firing
We now know more about what led to the abrupt firing a few months ago of Meredith Broadcasting Group President Kevin O'Brien (11/1/04 TVBR #213). A federal magistrate in Des Moines has unsealed court documents in a case where Meredith is seeking to avoid having to pay off the remainder of O'Brien's contract. According to the unsealed documents, reported by the Des Monies Register, O'Brien had complained that the staff at Meredith's WGCL-TV Atlanta station was "too black" and that when a black reporter had complained of hostile working conditions, he said, "That's typical of black employees." The AP reported that O'Brien once told a black waiter at a company outing: "You probably don't like the same fruit as me. You look like a watermelon kind of guy." An internal company investigation also accused O'Brien of making sexual advances to female employees and of using his position to get his daughter an on-air job at a Meredith station. The company alleges that three months after the firing, O'Brien showed up at the company's offices in San Francisco and "was abusive, belligerent and hostile," causing one Meredith magazine employee to "reasonably fear for her safety." O'Brien has not yet filed a response to the company's lawsuit, nor his own which is expected to claim that his firing was unjustified and seek payment for the rest of his contract, plus damages. His lawyer had tried to prevent public disclosure of details of the company's lawsuit, claiming it would be prejudicial to the case.






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

FCC Chairman Michael Powell
says good-bye
An emotional Chairman gaveled his 90th and final FCC open meeting to a close, saying in a choked voice, "Well, this isn't easy." Speaking of public service, he said, "At the end of the day, it is still the highest honor and greatest privilege anyone can have." A specific departure date was not mentioned. It'll have to be before 4/28/05, though, the announced date of the next open meeting, to make good on the announcement that the 90th was indeed Powell's last. 03/11/05 RBR #50

FCC New chair down
to a two-horse race?
Sitting Republican Commissioner Kevin Martin has been seen as a top contender for the FCC chair and he has the backing in organizations such as the Parents Television Council. another candidate has emerged out of the pack of names which have been bandied about, that being Michael Gallagher, pictured, NTIA head and current employee at the Commerce Department. His experience is on the telecommunications side of the FCC (he's a former Washington lobbyist for Verizon Wirele! ss and Airtouch Communications), and according to the times has not staked out a particular position on any broadcast issues. However, he is said to have been endorsed by Powell, who has not always seen eye-to-eye with Martin. Still, Martin has close ties to VP Dick Cheney. Other names in the mix have included former Texas Public Utility Commission Chair Becky Klein, FERC head Pat Wood, former Ted Stevens (R-AK) aide Earl Comstock.03/11/05 RBR #50

Erwin Ephron is thumbs up
on Less is More - Part 3
It is in the advertiser's interest to use the unit that holds audience best. That is the shorter unit. But if some advertisers opt for 60's, all advertising that follows will suffer. That's why radio has to eliminate some advertiser options to manage clutter. Get rid of the 60, run fewer commercials and charge more for the 30. But relax. The actual cost is still negotiable. Television faces similar challenges and has been slow to respond. We know clutter threatens the effectiveness of broadcast advertising. And we know only the media can clean it up.
03/11/05 RBR #50


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