RBR's Daily Morning Epaper

Volume 23, Issue 51, Jim Carnegie, Editor & Publisher

Tuesday Morning March 14th, 2006

Radio News ®

Journal's month: Radio down, TV up
NBC's Winter Olympics and newly acquired stations helped TV revenues skyrocket 100.8% in February at Journal Broadcast Group. Radio, meanwhile, posted a 3.9% decline for the month, with softness in TV station, automotive and casino advertising. You could say that Journal was both helped and hurt by the Olympics. Its three NBC affiliates, including its largest station, WTMJ-TV Milwaukee, got more ad revenues because of the Olympics, but its radio stations suffered because many TV stations cut back on advertising their programs which were up against the Olympics. Total broadcast revenues were up 48.5% for the month to 16.7 million. Radio declined 3.9% to 5.6 million. TV rose 100.8% to 11.3 million. However, if you exclude newly acquired TV stations, TV revenues were up 31% for the month and total broadcast revenues were up 13.6%. Newspaper ad revenues were down 2.9% to 17.5 million.

Radio One OKs Smart Cell Phone test
Radio One, which has refused to encode for Arbitron's PPM test in Houston, has become the first radio company to agree to encode for a test of the Smart Cell Phone-based ratings system proposed by Media Audit/Ipsos. It was selected last week as one of three systems who are finalists in the effort by an industry-consortium organized by Clear Channel - - the Next-Generation Electronics Ratings Evaluation Team - - to pick a new ratings system for US radio (3/10/06 RBR #49). As it happens, Media Audit is based in Houston and also wants to test its system there. It has asked local radio operators to agree to encode for its first US test sometime this spring and Radio One is the first to officially say yes. "It is well recognized that the radio industry needs to move to an electronic measurement. I appreciate the efforts that Arbitron has put into testing its proposed solution. At the same time, we need more information and more ways to sell the advertising strengths of radio," said Radio One's Houston Market Manager, Doug Abernethy, in an announcement distributed by Media Audit. He said the Smart Cell Phone system "addresses this need for more information as it includes multiple media platforms as well as retail information" and said he was encouraged that "it addresses many concerns that we and others in the industry share about the potential flaws in electronic measurement."

RBR observation: We wondered, will stations be able to encode for both PPM and Media Audit/Ipsos at the same time? That's not an issue for Radio One, which isn't encoding for PPM, but would be for most other Houston stations. An Arbitron spokesman assures us there's no problem from his company's point of view. Nielsen has already done tests to make sure that TV stations could encode at the some time for both its Active/Passive set-top meters and PPM.

Security blanket day at the FCC?
The agenda of the FCC Commissioners' March Open Meeting will consist of three planks, two of which will be of direct interest to broadcasters. They involve establishment of a homeland security department within the FCC and a rulemaking on new kidvid obligations for television broadcasters in the digital era. That last item will kick off the Friday, 3/17/06 meeting, which will convene at 9:30 AM eastern. To quote the FCC, "The Commission will consider a Second Further Notice of Proposed Rulemaking concerning the Joint Proposal of Industry and Advocates on Reconsideration of Children's Television Rules." The third plank concerns will consider an order creating a new bureau, the Public Safety and Homeland Security Bureau. Item 2 on the agenda deals with wireless 700 mHz band issues.

RBR observation: It will behoove the FCC, if they'd like to see actual humans in a zone in need of instantaneous "public safety" and "homeland security" communications, to make sure that satellite-delivered national services who have minimal-to-zero local presence do not encroach on the turf of broadcasters who tough it out time and again under perilous circumstances. There will be no getting the word out if the only mass-media presence is on the shelves of local retail electronics outlets.

You gotta keep 'em separated
The Federal Election Commission is trying to get a rule on the books that will pass judicial muster regarding campaign advertisements organizations not directly connected to a candidate, but which seem to be coordinated with the candidate's campaign activities. To that end, it wants commentary from interested parties. The immediate goal is "...to amend its current rules for determining whether a communication is a coordinated communication, and therefore an in-kind contribution to a campaign or a political party committee." As FEC explains it, "...the Court of Appeals invalidated part of the rule - - that focuses primarily on communications aired within 120 days of an election - - because the Court believed that the FEC had not provided an adequate explanation and justification for the rule. The Court ordered the FEC to consider carefully certain questions in promulgating new rules, including: 'Do candidates in fact limit campaign-related advocacy to the four months surrounding elections, or does substantial election-related communication occur outside that window? Do congressional, senatorial, and presidential races - - all covered by this rule - - occur on the same cycle, or should different rules apply to each?'" If you have an opinion on this matter, you'll have a short seven day window to post it at the FEC once the FEC's request is published in the Federal Register.

Abernathy finds a job Akin to experience?
The most recent ex-FCC Commissioner, Kathleen Abernathy, has resurfaced at the law firm of Akin Gump Strauss Hauer & Feld LLP. "We are very excited about the experience and capabilities that Kathleen brings to the firm. She is extremely well-respected by executives in all sectors of the communications industry," said Tom Davidson, chair of Akin Gump's communications and information technology practice. Abernathy will advise media and telecom clients, not surprisingly, on regulatory and policy issues.

APB: Not coming to a radio station near you
In the US, APB usually means all points bulletin. In a certain part of Brazil, it means the Association of Prostitutes of Bahia. The Association is notable in that it has just gotten the government OK to operate its own noncommercial FM station. Its mission is not recruitment so much as to try to build up the dignity of the Association's professional membership, and to discuss issues where the Association's and the general public's interests overlap - - health issues, AIDs prevention, human rights and other issues are cited as examples.

RBR observation: Can you imagine the uproar this would incite here in the USA? Even if the subject matter is serious and consequential, and the language clean as a whistle...even the cable and satellite people would have a tough time putting this on the lineup.

Ad Business Report TM

It's prime time for advertising
in The Big Easy
The Greater New Orleans Broadcasters Association (GNOBA) is advising marketers and their agencies to take note of the current advantages in targeting the Greater New Orleans market.

Said Don Cooper, Executive Director of the GNOBA: "Although hurricanes Katrina and Rita did inflict unprecedented damage, there are significant factors that make media purchases in the Greater New Orleans region a strategically wise buy. These factors include tens of billions of dollars in insurance and government funding pouring into the area, rapidly increasing population figures, post-storm wage hikes, and a huge number of consumers who must now repurchase entire households and businesses of consumer goods."
| Read More... |

Clear Channel Airports introduces new ad platform
Clear Channel Airports, a division of Clear Channel Outdoor, announced the launch of its Pinnacle Collection, a collection of elite advertising displays located in over 30 fixed based operations (FBOs) or private airport terminals in twelve of the top media markets. With more than 95% of Fortune 100 companies owning business jets, the Pinnacle Collection complements Clear Channel Airport's coverage of the nation's frequent business flyers in major airports by utilizing ad displays in private aircraft, executive terminals where ultra-elite passengers arrive and depart.
| Read More... |

TBWA scores Snickers
Masterfoods USA has moved creative on its Snickers brand to TBWA\Chiat\Day NY from BBDO NY. Masterfoods spent about 38 million on media for Snickers in 2005, according to TNS Media Intelligence. TBWA already handles creative for Masterfoods' as Skittles and Starburst. "We are looking forward to partnering with the agency to reinvigorate Snickers' icon status," says Michele Kessler, marketing vice president of Established Brands for Masterfoods USA Snack Division, in a statement. Another former BBDO client, Visa USA, moved duties to TBWA in November, said the WSJ report.

Media Business Report TM

McClatchy pays 6.5B
for Knight Ridder
Back when Knight Ridder put itself up for sale, we wondered whether there would be any bidders willing to pay billions for an "old media" company (11/15/05 RBR #244). It seems we need not have worried. There were reportedly at least three bidders in the end and The McClatchy Company emerged the victor, bidding 6.5 billion for the nation's second-largest newspaper chain. Even after acquiring Knight Ridder, McClatchy will still be #2 (up from #8) behind giant Gannett. McClatchy also announced plans to divest 12 Knight Ridder dailies, including the Philadelphia Inquirer and San Jose Mercury News, which don't fit with the company's vision of its future. Also included in the group for antitrust reasons is the St. Paul Pioneer Press, since McClatchy already owns the twin cities' other big daily, the Minneapolis Star Tribune. Under the deal, Knight Ridder shareholders will receive 40 bucks in cash and 0.5118 of a McClatchy share for each share of Knight Ridder. That works out to a total of 4.5 billion. McClatchy will also assume Knight Ridder's two billion in debt.

RBR observation: One thing that McClatchy and Knight Ridder have in common is that they are both pure play newspaper companies. Unlike most of their peers, neither owns any radio or TV stations. So, who's going to buy the spin-offs from this deal? We see the most likely bidders for pretty much all of the properties are Gannett and MediaNews Group, which were rumored to have made a joint bid to buy all of Knight Ridder - - but fell short.

Media Markets & Money TM

Shaking and baking on the VA/WV border
Elements of the broadcasting Baker family are on the move again in Virginia. Edward A. Baker will be joined by Alison M. and Diane E. in the acquisition of WZFM-FM in Narrow VA under the licensee name of WZFM LLC. Seller Old Dominion Communications will get 600K for the facility. It is in an unlicensed portion of southwestern Virginia not far from the West Virginia border. It overlaps a pair of stations in which Baker parents Vernon and Virginia have an interest - - WPIN-AM Dublin VA, licensed to PAR, or Positive Alternative Radio - - and WKNV-AM Fairlawn VA, licensed to Base Communications Inc. Not far away but without WZFM-FM contour overlap are WKEX-AM Blacksburg VA and WAMN-AM Green Valley WV. The Bakers run side-by-side commercial and noncommercial groups, often running stations with a Religious format. An LMA was set to being 2/28/06.

Liberman picking up more cash
LBI Media, the parent company of Liberman Broadcasting, says it is seeking to refinance its existing 200 million bucks senior secured revolving credit facility. The refi will replace the existing facility with two loans totaling 260 million - - a 110 million term credit facility and a 150 million revolver. Both will mature in six years. Liberman owns Spanish-language radio and TV stations in California and Texas.

Washington Media Business Report TM

McDowell meets CommComm II
Last week, FCC Commissioner nominee Robert McDowell appeared before the Senate Commerce Committee, where he successfully avoided setting off any alarm bells on either side of the aisle, and - - even more to the point - - successfully earned a warm endorsement from Byron Dorgan (D-ND), the committee-member most likely to sound alarm bells. In the sequel, McDowell will join a fairly lengthy list of Rear Admiral wannabes (among others) for full committee approval in a mark-up scheduled for Thursday, 3/16/06. We have every reason to believe the nomination will proceed without incident, finally filling the seat left vacant since the departure of Michael Powell last spring.

Entertainment Media Business Report TM

WBAL Baltimore dumps Limbaugh
Hearst's Baltimore News Talker WBAL-AM has cancelled Rush Limbaugh, effective at the end of May. WBAL is extending Chip Franklin's current morning show from 9:30 AM to 2 PM, and start afternoon driver Ron Smith at 2 PM instead of 3 PM. From at WBAL.com: "As you can see, WBAL Radio has decided to modify our programming line-up...As experienced broadcasters, with over 50-years of collective experience, our instincts have been moving us to change. But, rather than just make such an important decision on 'a gut feeling,' we recently commissioned a major research project. Considerable time and effort went into researching what radio listeners in our area want. Our research shows that Marylanders desire even more information and discussion about the events and issues impacting them, and the communities where they live. This research project also told us that WBAL Radio listeners absolutely love Dave Durian & the WBAL Morning Team, Chip Franklin and Ron Smith. All of our news elements also received very high scores - - off the chart." On 6/1/06 Limbaugh will be heard on a new station, which will be announced in the near future, says Rush's syndicator Premiere Radio Networks. Other Charm City stations that may take El Rushbo include WCBM-AM and WHFS-FM.

Ratings & Research

Payments working to boost response rates
Show me the money. Arbitron reports that increasing cash incentives has worked to improve response rates and improve sample proportionality for young men. "This plan is Arbitron's most extensive investment in diary survey quality in the past decade. It demonstrates Arbitron's full commitment to better measurement in diary markets, not just PPM," said Owen Charlebois, President, Operations, Technology, Research and Development at Arbitron. The ratings company reported yesterday that its experiments had worked, so it is taking these measures to improve response rates and get more young males to fill out diaries:

Steps to bolster response rates
* Use of pre-placement letters with a one dollar cash incentive to ALL mailable sample by the end of 2006. Arbitron presently uses this treatment with 48% of households.
* Double the minimum diary incentive from 1 to 2 bucks in ALL markets by end of 2007. This will affect the nearly two thirds of households which currently receive the 1 buck minimum incentive.

Steps to improve young male representation
* 5 bucks cash incentive for each person in homes with one or two males age 18 to 24. This survey treatment will begin in spring 2006 in ALL markets.
* "5 bucks thank you" for agreeing to participate expanding from 58 markets to ALL markets by the end of 2006.
* Sampling of homes that can be reached only by cell phone starting in 2008.

Transactions

500K KACO-FM Apache OK from A.M. & P.M. Communications LLC (Richard E. Witkovski) to Perry Broadcasting of Apache Inc. (Russell M. Perry). 2.5K escrow, balance in cash at closing. Duopoly with KXCA-AM Lawton OK, KVSP-FM Anadarko OK. LMA until closing. [File date 2/16/06.]

75K KJRV-FM Wessington Springs SD from Sorenson Broadcasting Corp., TG Partnership, Todd P. Robinson to Dakota Communications Ltd. (Duane D. Butt, Barbara Butt). Buyers are upping stake from 25% to 100%; each seller receives 5K cash and 20K note. LMA 8/4/05. [File date 2/16/06.]

Stock Talk

Flat, flat, flat
Wall Street hardly needed to have bothered being open for business yesterday. Stock prices were stuck in neutral, amid continuing rate worries, and the market ended the day pretty much where it started. The Dow Industrials were down a fraction of a point to 11,076.

Radio stocks were also pretty flat. The Radio Index gained 0.034, or 0.02%, to 160.524. Thinly traded Beasley was the big mover, up 2.6%. Salem gained 2.2%. Saga fell 2%.

Radio Stocks

**Here's how stocks fared on Monday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		34.35	-0.24	Hearst-Argyle	HTV		23.56	-0.09
Beasley	BBGI		11.00	+0.28	Interep	IREP		0.25	unch
CBS CI. B	CBS		24.02	+0.07	Jeff-Pilot	JP		57.99	-0.44
CBS CI. A	CBSa		24.04	+0.06	Journal Comm.	JRN		12.20	+0.22
Citadel	CDL		11.59	-0.11	Radio One, Cl. A	ROIA		7.68	-0.06
Clear Channel	CCU		28.86	+0.03	Radio One, Cl. D	ROIAK		7.72	+0.02
Cox Radio	CXR		13.10	-0.11	Regent	RGCI		4.18	-0.11
Cumulus	CMLS		11.59	+0.18	Saga Commun.	SGA		9.09	-0.18
Disney	DIS		28.56	+0.40	Salem Comm.	SALM		13.27	+0.28
Emmis	EMMS		16.98	-0.02	Sirius Sat. Radio	SIRI		4.60	-0.18
Entercom	ETM		28.81	+0.14	Spanish Bcg.	SBSA		5.02	-0.05
Entravision	EVC		7.74	-0.06	Univision	UVN		34.07	-0.11
Fisher	FSCI		43.05	+0.20	Westwood One	WON		11.48	+0.08
Gaylord	GET		45.60	+0.91	XM Sat. Radio	XMSR		21.01	+0.16

Bounceback

Send Us Your Opinions We want to
hear from you.
This is your column, so send your comments and
a photo to [email protected]

Below the Fold

Ad Business Report
Clear Channel Airports
Introduces new ad platform...

Media Business Report
Bucks in "old media"
We wondered if any bidders
willing to pay billions, Yep...

Entertainment Media
Business Report
WBAL Baltimore dumps
Rush Limbaugh effective
at the end of May...

Ratings & Research
Show me the money!
Payments working to
boost response rates...

Radio Media Moves

Foreman to
be honored
Media broker Dick Foreman, President & CEO of Richard A. Foreman Associates, will be honored with the 2006 Broadcasters' Foundation Chairman's Award during the organization's annual breakfast April 26th during NAB2006 in Las Vegas. After Hurricane Katrina left many radio and TV staffers homeless, Foreman established the Hurricane Katrina Matching Fund with a 500K contribution to help fellow broadcasters who were personally devastated by the disaster.

Three new GMs
at Salem
Salem Communications has filled General Manager posts in three markets. Tony Calatayud, who has been Operations Manager for WKAT-AM Miami, is now GM. Darren Ryder, most recently Local Advertising Sales Manager for Time Warner Cable in Waco, TX, is Salem's new GM for its Orlando, FL cluster. And Henry Tippie is the new GM for Salem's Colorado Springs, CO cluster, moving crosstown from Royal Gorge Broadcasting's KKCS-FM.

Schreck to Red Zebra
Red Zebra Broadcasting says Lewis Schreck will be joining the company as Vice President of Sports and Corporate Sales. Schreck comes to Red Zebra from CBS Radio where he spent the past eight years, most recently as VP/Sports, working with CBS' corporate roster of sports properties across the country.

Stations for Sale

Exclusive Listing
FM Radio Station in South
Florida. Great start-up opportunity
for a radio entrepreneur or a great addition for a radio group.
Please contact Joel B. Day
202-478-3737 (x3)

More News Headlines

Minority sales effort expands to Florida
The NAB Media Sales Institute, which was first launched at Howard University in 2001 to increase the number of women and minorities in media sales, is being expanded to Florida A&M University in Tallahassee with an 85K grant from the NAB Education Foundation. In announcing the grant, Rep. Allen Boyd (D-FL), said NABEF will partner with the National Association of Black Owned Broadcasters and Personal Selling Principles to expand the program. "The NABEF/NABOB program at FAMU will help our college students meet the growing demands and challenges of careers in broadcasting and media sales," said Rep. Boyd.

March RBR/TVBR
Digital Magazine

Where Do We
Go From Here?
In this issue, we take a look at the broadcast financing market in '06; hear from OMD's Natalie Swed Stone how radio is reinventing itself; interview Publicis Groupe Media CEO Jack Klues and Ford's Global Media Manager Mark Kaline; talk with Dial-Global Co-CEO David Landau and find out how radio can "Do what an iPod can't.

Read RBR/TVBR in 2 simple steps:
1.Create a simple account with Zinio and download the Zinio Reader.
2. You can then download the
March Issue of RBR/TVBR

RBR Radar 2006

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

Corporate payola: Is it even possible?
New York Attorney General Eliot Spitzer has accused Entercom and other major radio groups, not yet named, of accepting "corporate payola." The "payola" is explained on the FCC's website.

RBR observation: Gee, maybe Entercom should think about suing Spitzer for slander, since he has publicly accused the company of a specific criminal act, payola, which it could not possibly have committed.
03/13/06 RBR #50

What in the
name of God
Is Cumulus Media CEO Lew Dickey smoking? The radio diary system isn't broken. OK, to paraphrase Billy Crystal as kvetching Miracle Max in the movie "Princess Bride," it's only slightly broken. But it's still broken, it's archaic and there is technology available now to provide better, more accurate data. So please Lew, give me a break. By - John Maher, Sr. VP, Director of Planning US International Media
03/13/06 RBR #50

3 advance for CC radio ratings
The Next-Generation Electronics Ratings Evaluation Team - - the new name for the multi-company team evaluating responses to Clear Channel's RFP - - has selected three finalists for a new, electronic radio ratings system....Cumulus Media CEO Lew Dickey was asked about the process said he wants to make sure the industry selects the optimal technology, but he also warned that the diary system isn't broken and is more accurate than the audience measurement systems used by some other major media.

RBR observation: Not really any surprises here. The three finalists were the ones known last year to already have a working portable measurement device, so no one has made it through to the finals with some new wizbang proposal that no one had seen before. Bottom line seems it is just going through the process like reading a book and someone has already told you the ending first. It all comes down to Technology, Marketing, Acceptability by the end user meaning where the ad bucks come from and Money to do the measurement. Last - More Money to keep it going. Radio has tired before and RBR means this topic of another ratings service has been on going for 30 years. Radio should fix all its problems first.
03/10/06 RBR #49

Spitzer hits Entercom
with payola lawsuit
NY-AG Eliot Spitzer has filed his 1st lawsuit alleging corporate payola, resulting from his probe of record companies and radio stations in NY State. Entercom accused of: Trading air time for gifts and other payments, trading air time for promotional items and operating corporate programs directed by senior management to sell air time to labels in order to manipulate music charts.

RBR observation: This suit is a bunch of Bull.The Beat Goes On like an American Popular Song. Hold on as if Entercom can take any more bad news.
03/09/06 RBR #48

Second shareholder revolt
threatens 8.9B buyout of VNU
It looks like VNU CEO Rob van den Bergh won't be able to leave the company without enduring a second shareholder revolt. Trouble maker in this pot - Fidelity International which owns over 15% of VNU.

RBR observation: Now let's see if a consortium can run all these horses in a straight line? RBR anticipates the knives will be brought out as slicing and dicing will begin. But with trouble from Fidelity VNU appears to be in suspended animation. This one RBR will follow closely as it affects your business and Ad Dollars.
03/09/06 RBR #48

Affiliate Relations
Talk Radio Network the home of Mancow, Laura Ingram and other great talent is expanding and looking for someone with great phone techniques who is enthusiastic about joining a successful team.
See Radio Careers

Other Links

State Associations

Contact Us

Publisher question:
Reading RBR from a friend?
Receive your own morning copy at www.rbr.com

Help Desk

Having problems with our epapers?
Please send Questions/Concerns to:
[email protected]

If you wish to remove your name completely from our database use this link __UNSUB__

RBR Epaper -- 108 annual
or just 9 a month