RBR's Daily Morning Epaper

Volume 22, Issue 53, Jim Carnegie, Editor & Publisher

Wednesday Morning March 16th, 2005

Radio News®

Senators seek to curb violence AND indecency
Serial anti-violence bill introducer and ex-senator Fritz Hollings (D-SC), wherever he is spending his retirement, must be smiling as a pair of sitting senators, one from each party, have carried his torch forward for him. The "Indecent and Gratuitous and Excessive Violence Broadcasting Control Act of 2005" has been introduced. The senators are both members of the key committee for introducing such measure, which is Commerce, Science and Transportation. Kay Bailey Hutchison (R-TX) and John Rockefeller (D-WV) are the co-sponsors. Their bill seeks to accomplish five things: (1) Assess the effectiveness of the v-chip and require alternatives if it comes up short; (2) Double the required weekly amount of children's programming from three to six hours; (3) Require new and improved content warnings, which must stay on screen for 30 seconds and be repeated every 30 minutes; (4) Up the obscene content maximum fine to 500K with a 3M 24-hour cap; and (5) Provide local broadcasters time to review network programming in advance to determine if it is appropriate for their local audience. "Our children have too many opportunities to see and hear gratuitous violence and sex on our airwaves," said Hutchison. "If our broadcasters are not willing to voluntarily protect our children, then it is the responsibility of Congress to step in. Broadcasters do not have a constitutional right to flood the airwaves with excessive violence and sex."

RBR observation: OK NAB where are ya? A curb is what some of our congressional leaders can barely see over; sober, on many broadcaster issues these days.

February radio up, TV down at Journal
Journal Broadcast Group reported continued strong growth for its radio operations in February, while TV was done in by the lack of political advertising this year. Total broadcast revenues were up 3.5% to 11.2 million. Radio revenues rose 8.6% to 5.6 million, continuing a pattern of growth at a company that still has a lot of developmental properties. In television, however, revenues declined 1.1% to 5.6 million, despite the addition of 680,000 from newly-acquired WGBA-TV. As with other TV groups, the company cited "a significant decline in political ad spending." Newspaper revenues for Journal Communications were up 1.6% to 23.8 million, with ad revenues up 4% to 18.1 million.

Citadel got Spitzer payola subpoena
It appears that New York Attorney General Eliot Spitzer has cast a wide net in his investigation of the practices of independent record promoters. Citadel Broadcasting is the latest radio group owner to confirm in an SEC filing that it has received a subpoena in the payola investigation. Citadel is cooperating with the AG and says, "At this time, it is not possible to determine the outcome of this investigation." Clear Channel, Entercom and Cox Radio had previously confirmed receiving subpoenas (2/24/05 RBR #39).

Ferree slides over to CPB
Former Media Bureau Chief Ken Ferree is trading in three old letters for three news ones, and adding three as well, as he discards FCC and takes on the role of COO for CPB (Corporation for Public Broadcasting). Also coming on board at the senior management level is Nancy Rohrbach. "Ken brings to CPB a strong commitment to public service, significant management experience and broad knowledge of the factors affecting our industry," said CPB President/CEO Kathleen Cox. "I cannot think of anyone more qualified to help public broadcasting leverage its assets." Ferree was one of the principal architects of the infamous 6/2/03 media ownership rulemaking, but perhaps is best known for the DTV transition plan which came to bear his name. Ferree speculated last spring the in the end, broadcasters would be granted multicast must-carry rights on MVPD systems, a speculation that the commissioners eventually did not go along with. Although the jury is out as to what may occur on Capitol Hill, Ferree is going to a sector that has already negotiated a deal with the NCTA to carry as many as four streams of noncommercial public telecasting per station. Rohrbach is headed for the job of SVP, Corporate and Public Affairs. Previous career stops have included stints at the National Museum of Women in the Arts and USAirways.

NABOB 21st
annual communications awards dinner
Vanessa Williams (Singer and Actress), Denyce Graves (Worlwide Opera Singer), Melvin Van Peebles (Actor, Director, Producer and Musician), Michael Schultz (Director and Producer) and Dick Gregory (Activist and Comedian) were honored March 11th at the National Association of Black Owned Broadcasters (NABOB) 21st annual Communications Awards dinner held on Friday, March 11th at the Marriott Wardman Park Hotel in Washington, DC.

Caption: Mike Roberts,Chairman/CEO, Roberts Broadcasting; Bruce Demps, SVP, Clear Channel; Dick Gregory, Activist & Comedian; Brian Knox, Senior VP/ Director of Corporate Diversity, Katz Media Group and Reggie Denson,SVP/Managing Director of Multicultural Advantage, Clear Channel Katz Advantage.

WH/DOJ contradict GAO on VNRs
The Government Accountability Office last month that the practice of governmental agencies producing and disseminating video news releases without fully identifying the source should come to a stop (2/22/05 RBR #37). The DOJ turned that opinion on its head, saying the practice was completely appropriate, as long as the VNRs were strictly factual. Democrats in particular objected to productions featuring actors posing as reporters, and pushing items like the new Medicare drug benefit and No Child Left Behind which they felt were slanted toward the Republican viewpoint, and which constituted a form of covert propaganda. Sen. Frank Lautenberg (D-NJ) has been at the forefront of the Democratic protest against both the VNRs and the hiring of journalists such as Armstrong Williams to promote administration positions. According to the Washington Post, Lautenberg plans to introduce language, possibly as an appropriations bill amendment, to prohibit the practice.

Adbiz©

Outdoor in it for the long-haul:
Billboardz truck-mounted ads
Another in our series from meetings at the AAAAs in New Orleans: RBR/TVBR met with George VonAllmen, VP/Sales & Marketing for Billboardz, a company that specializes in truckside ads. Here, we ask:

Who are some of your advertisers? What is the pitch to them?
We are currently running specific routes in Ohio and Indiana for White Castle, the original fast food chain! We are also working with Great American Insurance, Paramount's Kings Island Amusement Park, Hard Rock Cafe, and Re/Max. Our Pitch-RoadBoardz offers targeted Mobile Media-it's new and non-traditional, but ultimately mobile and measurable! | More... |

IPG will defend GM account
Interpublic announced it will defend its buying account with GM, which has put the 2.8 billion dollar account up for review (3/14 RBR #51). GM said it had put its advertising buying business up for bid in order to cut costs and respond to the changing advertising landscape. The company sent a letter last week to Starcom Mediavest to compete for the business currently done by GM Mediaworks and LCI, which are both units of IPG.

Earthlink moves to MediaVest
ISP Earthlink has chosen MediaVest as its buying and planning agency, to handle its 70-million-dollar account, after a review. MediaVest's sister company, Halogen, will manage direct response TV. Earthlink's previous media agency was Horizon Media. Crispin Porter + Bogusky Miami handles creative on the account.

Trojan to Kaplan Thaler
Condom marketer Church & Dwight has reportedly awarded Kaplan Thaler Group NY creative for its Trojan condom brands following a review. The work was previously handled in-house for the most part. Buying and planning is also in review. The incumbent, RJ Palmer NY, is said to be defending. Other agencies vying for the business include Universal McCann's Frontier Communications and WPP's Maxus.

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Success,
Jim Carnegie
Publisher & Broadcaster
[email protected]

Media Markets & MoneyTM

Call me Mr. 'TIB
Bob Wilkins is bringing his Religious group - - Wilkins Communications Network - - into the Louisiana bayou country, striking a deal to acquire KTIB-AM Thibodaux LA from Michael Starr's Delta Starr Broadcasting. According to Patrick Communications broker Greg Guy, the station is going for 285K cash. The area, to the west of New Orleans, was previously unrated, but that is no longer the case. Arbitron rival Eastlan has agreed to measure audiences in a market it has named Houma-Thibodaux-Morgan City, which would rank around the #170 level if included in the Arbitron market list (1/17/05 RBR #11).

Quass act worth the Waitt
The merger of Mary Quass's NewRadio Group and Waitt Radio was complete as of 3/1/05, creating a small-market midwestern radio group of some 87 stations. The new group is being called NRG Media LLC, with Norman Waitt fulling the role of Chairman and Quass wearing the President/CEO hat, and with Alta Communications providing financial backing. Looking at the deal as an acquisition by Waitt of 27 NRG stations, RBR estimated the value of the deal at 30M (11/18/04 RBR #226).

Washington Beat

Pence reporter defense in suspense
Support for a national shield law which would protect the right of news reporters to guard the identity of sources from judges and grand juries is building in both houses of Congress and among both parties, according to a report by the Associated Press. Bills are making the rounds in both chambers. However, action is not expected this year - - despite the fact that several high profile source protection cases are pending, in particular those surrounding the leak revealing the identity of CIA operative Valerie Plame. Legislation like that proposed by Rep. Mike Pence (R-IN) is said to be in line for committee hearings and other tactics to bring members unfamiliar with the issues involved up to speed. Pence's bill would impose tough hurdles and would force the exhaustion of alternative avenues before the reporter/source relationship may be pried into.

Programming

Clear Channel goes liberal on FM
Come tomorrow morning, Clear Channel Radio is launching its first FM liberal talker - - and this time it's doing so without any programming from Air America. CC Radio San Antonio Market Manager Tom Glade tells RBR that KRPT-FM 92.5 mHz (formerly KHTY) will launch with Jerry Springer, syndicated by Clear Channel, at 8:00 am CT, followed by Ed Schultz from Jones, CC's Phil Hendrie and other CC-syndicated hosts. Local liberal talker Ron Aaron will be featured on weekends. What's prompted the move? "I think the easiest first statistic is that about 44% of the voters in Bexar County voted for John Kerry," Glade told RBR. He already has the Republicans who voted for President Bush covered on WOAI-AM, which carries Rush Limbaugh, Sean Hannity, etc. By jumping into the liberal radio pool this week, KRPT will be ahead of Tom Castro, who told RBR this week that his Border Media Partners will be re-launching one of its San Antonio AMs as an Air America affiliate (3/14/05 RBR #51).

Ratings & Research

Katz releases Fall 2004 national format averages
The latest Katz Media Group Radio National Format Averages report for all Fall 2004 markets shows that News and Talk formats were the biggest winners this Fall, with total shares up 10% year-to-date. The overwhelming Presidential election coverage no doubt boosted listening this Fall. In addition, the announcement in October that Howard Stern would be joining satellite radio helped fuel listening on the younger formatted Talk stations. Interestingly, total shares this Fall are 7% higher than they were during the Fall 2000 election campaign, 27% higher than Fall 1996 and 11% higher than Fall 1992.
| More... |

Transactions

KFIG-AM Fresno CA from Radio Central LLC to Fat Dawgs 7 Broacasting LLC.

KWXD-FM & KHST-FM Joplin MO (Asbury, Lamar MO) from Innovative Broadcasting Corporation to Southeast Kansas Acquisition Inc.

| More... |

Stock Talk

Stocks slip on inflation worries
A February rise in retail sales wasn't enough to divert Wall Street attention from inflation concerns as oil prices moved up again. The Dow Industrials dropped 59 points, or 0.6%, to 10,745.

Radio stocks moved along with the market. The Radio Index was down 0.301, or 0.1%. Bob Iger can chalk up two straight gains for Disney, which rose 2.1%. The day's worst performer was Beasley, down 2.5%.

Radio Stocks

**Here's how stocks fared on Tuesday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		41.05	+0.63	Jeff-Pilot	JP		48.92	-0.26
Beasley	BBGI		17.68	-0.46	Journal Comm.	JRN		16.64	-0.06
Citadel	CDL		14.05	-0.18	Radio One, Cl. A	ROIA		13.32	+0.10
Clear Channel	CCU		34.20	+0.45	Radio One, Cl. D	ROIAK		13.40	+0.19
Cox Radio	CXR		16.97	-0.03	Regent	RGCI		5.27	+0.04
Cumulus	CMLS		14.42	+0.01	Saga Commun.	SGA		16.11	+0.01
Disney	DIS		28.60	+0.58	Salem Comm.	SALM		21.42	-0.03
Emmis	EMMS		19.74	+0.03	Sirius Sat. Radio	SIRI		5.33	unch
Entercom	ETM		35.84	unch	Spanish Bcg.	SBSA		10.55	-0.20
Entravision	EVC		8.44	-0.09	Univision	UVN		28.00	-0.10
Fisher	FSCI		51.83	+0.43	Viacom, Cl. A	VIA		34.29	-0.30
Gaylord	GET		42.30	-0.52	Viacom, Cl. B	VIAb		33.87	-0.35
Hearst-Argyle	HTV		25.66	+0.16	Westwood One	WON		21.03	+0.06
Interep	IREP		0.55	+0.05	XM Sat. Radio	XMSR		29.66	+0.28
International Bcg.	IBCS		0.01	unch	-	-	-	-	-

__UNSUB__ to this email service.

We will be implementing a new system upgrade - we need you to take a few moments to fill out the new form to ensure the delivery of your favorite Morning and Afternoon E-paper(s) and Monthly RBR/TVBR Magazine. We will be switching to the new system April 6th 2005 and all previous signup info will become invalid. So please hit the Revalidate Button and fill this out immediately to ensure delivery. Just click the button at the top of this announcement.

Bounceback

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

This recently retired broadcaster has some strong opinions about what's wrong with the industry.

Ed Christian and Matthew "Tool" Ternes, along with apparently hundreds of other professional broadcasters, are missing the Big Picture, and if they continue to do so, are part of the problem and not part of the solution. I am from Benton Harbor/St. Joseph, Michigan, the epicenter of broadcasting at the moment. Why Benton Harbor/St. Joseph? Because we are home base for Republican Congressman Fred Upton - - the author of the legislation that will levy fines against the INDIVIDUAL BROADCASTER, up to half a million dollars per infraction. Now, I don't know what "Tool" Ternes pulls down a year, but my guess is that he doesn't have half a mill lying around.

I interviewed the Honorable Freddy Upton on my show, at length, about this legislation. His position is simple: If you're not being obscene, you have nothing to worry about.

Really.

Well, as broadcasters, we have all had our fair share of calls from listeners who "..think they heard us swear..." or called to complain about "... that segment that aired this morning where the DJ said 'penis' at least twice...". All it takes is one phone call to the FCC from one of these do-gooders, and the station's license is automatically under review, and the jock is on the hook. Potentially on the hook for thousands, maybe tens of thousands, of dollars. "John, you're such an alarmist!! The FCC would be fair in its investigation..." As soon as you all stop laughing at the last statement, I'll continue... | More... |

John Jay
Benton Harbor/St. Joseph, MI

Upped & Tapped

Beasley has a Winner
Joe Winner has joined Beasley's WXKB-FM Ft. Myers, FL as midday host and Promotions Coordinator.

Promotion at OMT
OMT Inc. has promoted Jackie Tetlock to Manager, Broadcast Sales and Marketing. She has been with OMT since 2001.

New director for Trib
J. Christopher Reyes was elected as a member of the Board of Directors of Tribune Company. Reyes, 51, is one of the founders and chairman of Reyes Holdings LLC, one of the leading providers of food and beverage distribution services in North, Central and South America.

More News Headlines

Morrison and Abraham to host annual Smart Money Summit

Sirius selects WSI Corp for marine weather data

Bill Holter dead at 81

More News Headlines

Barton going for hard DTV deadline
Currently, the end of analog television broadcast is supposed to occur by the time 85% of all TV households are digital-ready, or 12/31/06, whichever comes first. Rep. Joe Barton (R-TX) is in favor of the 12/31/06 scenario, but thinks there is no way the former event will occur by then. He told a meeting of the Consumers Electronic Association that he will put forth legislation making 12/31/06 the date, no matter what, saying the only group against it was broadcasters, according to a Reuters report. Barton, who is chair of the key House Committee on Energy and Commerce, said he still needed to run his proposals past committee Democrats. Nevertheless, he expects to put out in the next few weeks. An estimated 15M-20M households are not subscribers of MVPD services (cable, satellite and such), and may lose television service when analog is switched off. Barton said 8M-10M of those households are low income, and under his proposal would qualify for an equipment subsidy which would be paid for with part of the proceeds of an auction of the vacated spectrum. Barton put the total pricetag for the subsidy program in the 400M-500M range.

RBR Radar 2005

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

The Mouse is out of the House
Disney dissidents begin campaign to fire board as RBR predicted, former Disney directors Roy Disney and Stan Gold aren't accepting the current board's vote to name Bob Iger as CEO, come September, as the final word on the subject. Instead, the dissidents are embarking on a new campaign to remove Chairman George Mitchell and the entire board of directors so a new board can start over on the CEO selection process. 03/15/05 RBR #52

Sen. Hillary calling for
standardized ratings
At the unveiling of the Kaiser Family Foundation report on age 8-18 media habits, Sen. Hillary Rodham Clinton (D-NY) announced that she would be introducing a bill to further study the effects of media on youth, including children at an even younger age. Like the Kaiser study, it will also focus on video games as well as entertainment programming. She has bipartisan support. RBR observation: Technology is breaking the speed of sound and it will be almost next to impossible for manufacturers to do anything what Hillary wants. But Hillary must remember that education begins in the home. Politicians don't have a clue not less a sense of what is reality. More on Kaiser to come, Oh Buy we can't wait.
03/15/05 RBR #52

General Manager
Needed to lead multi-station radio group in Mid-Atlantic Region. Candidate must have prior GM experience in all aspects of management with strong leadership, sales & business skills, some knowledge of programming and FCC regs. Excellent benefits & 401(k) package!

Radio Sales
Memphis, TN
Flinn Broadcasting, with a variety of radio formats, is seeking Marketing Consultants. Requires 1 year radio sales experience. Offering the highest commissions in Memphis, 20% direct, 15% agency and a relocation allowance. Flinn Broadcasting - EOE

See Radio Careers for more info.

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