Volume 21, Issue 56, Jim Carnegie, Editor & Publisher
Monday Morning March 22nd, 2004

Radio News ®

Latest indecency outbreak: Atlanta
The "Regular Guys" morning duo on Clear Channel's WKLS-FM Atlanta has some explaining to do to management about how mics were left open during a stop set Friday morning and listeners heard visiting porn star Devinn Lane,pictured, go into her act. For now the DJs, Larry Wachs and Eric Von Haessler, are suspended while management investigates. RBR observation: And how much better would this have been if things had gone as planned? Not much. We presume the FCC has engineers who know how to play a tape backward.
| Full Story Click Here | RBR Observation |

Viacom/Infinity hit for another $7K
Another Tampa station has been hit with an indecency fine, although this time it is not a Clear Channel station. Viacom/Infinity's WLLD-FM, licensed to Holmes Beach, was hit with a $7K fine, the result of the broadcast of a live rap/hip hop concert which the FCC said included objectionable material. Perhaps the biggest problem with this one is that it's been languishing in the regulatory backwaters since September 1999.
| Full Story Click Here |

WEBN-FM Cincinnati up next?
Clear Channel already has racked up indecency fines of over $1M. And the heat is still on. A local group called Citizens for Community Values (CCV) is after CCU's WEBN-FM Cincinnati for alleged indecent broadcasts which it said could be worth up to $302.K in fines at the going maximum rate of $27.5K a pop, according to an article in the Cincinnati Enquirer. They say they have 11 incidents over which they are taking the radio station to task. According to The Enquirer, the group joined several others in Washington last week, taking their case directly to FCC Commissioners Michael Copps and Kevin Martin. Their next stop, they hope, is San Antonio to meet with top execs at Clear Channel. The group is also considering taking its case to the station's advertisers. CCV objects to numerous incidents in which sexual and scatological discussions were engaged in on-air.


Bono's f-word freebie was a split decision
Despite FCC guidance to broadcasters to the contrary, in last week's lone TV action all five commissioners held that Bono's Golden Globes verbal slip-up was in fact indecent. The ruling overruled an Enforcement Bureau ruling which let NBC and Bono off the hook since use of the word was isolated and fleeting. However, the decision to let the incident go unfined passed by a narrow 3-2 margin. RBR observation: Forget "don't do the crime if you can't do the time." The operative phrase for today is "You can't fine the crime if you don't criminalize it in time." | Full Story Click Here | RBR Observation |

Infinity COO Hollander yells Bro
and Bro is now with Infinity
Les Hollander, yes you are reading correctly Joel's brother, to take charge as the Eastern Regional Manager for Infinity Broadcasting leaving Clear Channel (CCU) as DOS New York. Sources report that CCU's Andy Rosen called all upper management yesterday afternoon into the city for an emergency to break the news. RBR observation: Big loss for CCU good hit for Infinity since Bro Les made the dollars for CCU's WLTW-FM and as we all know WNEW-FM is still low on tire pressure. We should hear more this morning.

WUSN Tom Rivers passes
Infinity Chicago Country OM Tom Rivers dies at 38 from bronchial asthma. Prior to Chicago Rivers worked in the Tampa Bay area as WQYK-FM general manager and on-air personality.

Eisner's book on hold
Did you know that Michael Eisner has written a book? It doesn't look like you'll get a chance to read it anytime soon. BusinessWeek reports that Warner Books has put release of the book, "Camp," on hold. The official explanation is that Eisner is "too busy" to promote the release. Our guess is that everyone is really waiting to see whether the Disney CEO still has a job. "Camp" is said to be a character-building book about Eisner's experiences as a young man in the 1950s who went off to camp in Vermont. At one point, he was attacked by swarming insects and had to spend hours lying in a cold river with only his face exposed. The original plan was to promote the book as a Father's Day gift this year. But after 43% of Disney's shareholders voted this month to kick Eisner out of the company, and the board then stripped him of his title as Chairman, Warner Books may wait for Father's Day 2005 - - if then.


RBR News Analysis

Indecency responses vary; NAB fumbles the ball
With the FCC on the anti-indecency warpath, it's been interesting to watch how different broadcasting companies are handling the dirty broadcasting hot potato. Since we're dealing with both politics and the law - - which are not necessarily in lock step on this issue - - there are several different approaches being tried. In our view, though, NAB has fumbled the ball. It had two choices of how to structure the session - - either a nuts and bolts meeting of group heads and lawyers to craft a strategy to deal with the problem or a PR effort with a bunch of meaningless panel discussions to assure the public that broadcasters are fine, upstanding and decent citizens. The organization chose the latter, but then managed to screw it up. As RBR first reported.
| Full Story Click Here
|


RBR Focus on the Indecency Issue

A Child's Garden of Perverse, Part 2
Today's example of allowable broadcast indecency comes from a news program, no less, in the little California market of San Luis Obispo. This example, like the example in Part 1, would tend to exonerate Bono and NBC for his f-word slip-up last year.
| Full Story Click Here
|


Adbiz ©

Virginia looking at ad tax
The state of Virginia, like many other states, is facing a severe budget crunch, and is looking high and low for revenue sources. By the time you read this, they may have included an advertising tax in the mix. | Full Story Click Here |

Qtopia Media, Interep pact to target gay market
Qtopia Media, a new marketing firm specializing in the gay & lesbian community, opened its doors last Friday in response burgeoning advertiser interest in targeting the gay marketplace. Qtopia specializes in local market communications efforts, focusing on metro areas with high concentrations of gay and lesbian consumers. The company has already signed marketing alliances with Interep, MacDonald Media (Out-of-Home), The Event Shop (Event Marketing) and Gotham Communications (PR).
| Full Story Click Here
|

CPP system flawed for radio?
Joe Shamwell, Director/Market Research, ABC Radio/DC weighs in on CPP vs. CPM: "There are two methods of evaluating media efficiency: Cost-Per-Thousand (CPM) And Cost-Per-Point (CPP). CPM is a ratio based on how much it costs to reach a thousand people. CPP is a ratio based on how much it costs to buy one rating point, or one percent of the population in an area being evaluated. Cost-per-point is calculated by using the following formula: | Full Story Click Here |

Six Flags launches first effort in seven years
For the first time in seven years, Six Flags is launching a national campaign and introducing a "mysterious new icon" representing family fun. National spots that begin airing this week feature an exuberant, irresistible character who beckons families to escape their overscheduled, stressed-out, hectic lives for a day of playtime at Six Flags. The spry, bald-headed character featured in the television spots travels in a colorful retro style bus bringing his signature music - "We Like to Party" by the Vengaboys - and an invitation to leave the boredom, stress and pressures of everyday life behind, to families across America. He quickly has Dad dropping the rake, Mom putting down the garden hose, and Junior abandoning the lawn mower in an easy decision to take the short trip to Six Flags and a day filled with sheer enjoyment. The national TV spots that began airing 3/16 can be seen on prime time programs including FOX's American Idol, ABC's Hope & Faith and NBC's Law & Order SVU. Spots will also be airing in local markets, timed to coincide with each park's opening schedule.


Media, Markets & Money tm

Meredith makes its move into radio
Already a group owner in television and magazines, Meredith Corporation - - which sold its previous radio group several decades ago - - is getting back into radio with a deal to buy WKNX-AM Saginaw, MI. The company plans to integrate the radio station with the operations of WNEM-TV (Ch. 5, CBS) Flint-Saginaw-Bay City and rechristen the station as WNEM-AM. RBR observation: This approach has been tried before - - and it doesn't work. Meredith needs to rethink what it is doing.
| Full Story Click Here
| RBR Observation |

From one Peter to another - - going north to Southington
If you had just bought six stations confined in geographic scope to the Carolinas, where would your next move be? In this case, the buyer is going to add one of ADD Radio Group's Connecticut properties to get to seven stations overall. Peter Davidson's Davidson Media Group is the buyer, and the seller is Peter Arpin's outfit. Arpin stands to make $1.4M cash once the deal is completed. The station in WXCT-AM, which serves the Hartford-New Britain-Middletown market from its perch in Southington CT. This is Davidson's second deal this year. He entered the ranks of radio groupdom with a more than modest splash early in January, picking up an AM sixpack from companies related to Vernon Baker's Positive Radio Group. That deal, which included one SC and five NC stations, went for $8.375M. With this deal, Davidson's broadcast investment in station licenses is just shy of the $10M mark.

Hotlanta heats up for Salem
Look for Salem Communications to announce a deal this week to buy WAFS-AM Atlanta from Moody Bible Institute. We hear the price is in the $15-16M area. The acquisition will give Salem its fourth AM and fifth station in Atlanta.


Washington Beat

VNRs: RTNDA turns on the yellow light
The Radio-Television News Directors Association is urging a cautious attitude among newsroom staffers when considering the use of video news releases (VNRs). The statement from the industry organization comes in the wake of a release of such a clip from the Department of Health and Human Services. | Full Story Click Here |

Commerce cable confab comes into focus
John McCain (R-AZ), who a while back penned a diatribe on cable which he re-releases just about every year, will be hosting members of that industry, along with some of its detractors and other expert witnesses, at the Senate Russell Building in Washington. That's where his Commerce, Science and Transportation Committee holds forth. The hearing, entitled "Escalating Cable Rates: Causes and Solutions," is scheduled for 9:30 AM Eastern Thursday 3/25/04. | Full Story Click Here |


Transactions

$650,000 KXKS-AM Albuquerque NM from Clear Channel Broadcasting Licenses, a subsidiary of Clear Channel Communications (Lowry Mays) to Mortenson Broadcasting Company (Jack M. Mortenson). $50KKK escrow, balance in cash at closing. [File date 2/25/04.]

$350,000 WASR-AM Wolfeboro NH from Radio Wolfeboro Inc. (Alan W. Severy) to Winnipesauee Network Inc. (Grant P. Hatch). $20K loan repaid by seller to buyer, cash payment on or before closing. $200K allocated to station, $10K allocated to real estate. [File date 2/24/04.]


Monday Morning Shakers & Makers

Deals: 2/16/04-2/20/04
This would easily be the slowest non-freeze dealing week since the first deal freeze thawed out last August, were it not for the ultra-pathetic sub-$1M total posted last week. This week's total is less than half that of the next-worst, which was over $17M (10/6-10/03). A problematic deal, which despite involving four California markets, comes in under $3.5M, was the biggie. No TV, once again.

2/16/04-2/20/04

Total

Total Deals

9

AMs

7

FMs

13

TVs

0
Value
$8,112,500
For Complete Charts, Click Here |

Radio Deal of the Week
Pre-revocation sale: Everything must go!
| Full Story Click Here
|
TV Deal of the Week
Nada once again

Stock Talk

Witch's brew is trouble for stocks
Friday was a "quadruple witching day," with a wide range of options and futures contracts expiring. So trading was dominated less by fundamentals than by portfolio trimming. Thus, stocks took a dive. The Dow Industrials fell 109 points, or 1.1%, to close at 10,187.

Most radio stocks followed the market lower. The Radio Index dropped 1.131, or 0.4%, to 262.438. Radio giant Clear Channel bucked the down trend, with traders apparently sniffing a bargain after the stock's recent decline in the face of FCC indecency actions. Clear Channel was up 1.2%. Radio One's Class A stock did even better, rising 1.4%, while its Class D stock rose only 0.9%.

On a day when most stocks were down, Regent was down the most, falling 3%. Saga was off 2.6%. Emmis fell 1.8% and Disney 1.3%.


Radio Stocks

Here's how stocks fared on Friday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

$40.94

+$0.09

Jeff-Pilot

JP

$54.07

-$0.08

Beasley

BBGI

$18.16

-$0.15

Journal Comm.

JRN

$18.81

-$0.14

Citadel CDL $16.87 -$0.03

Radio One, Cl. A

ROIA

$18.51

+$0.26

Clear Channel

CCU

$41.73

+$0.48

Radio One, Cl. D

ROIAK

$18.41

+$0.17

Cox Radio

CXR

$21.37

-$0.12

Regent

RGCI

$6.17

-$0.19

Cumulus

CMLS

$20.10

-$0.08

Saga Commun.

SGA

$19.01

-$0.50

Disney

DIS

$25.39

-$0.34

Salem Comm.

SALM

$25.03

-$0.27

Emmis

EMMS

$23.88

-$0.43

Sirius Sat. Radio

SIRI

$3.16

+$0.03

Entercom

ETM

$43.84

-$0.02

Spanish Bcg.

SBSA

$10.58

-$0.06

Entravision

EVC

$8.71

+$0.06

Univision

UVN

$34.29

-$0.39

Fisher

FSCI

$48.24

-$0.68

Viacom, Cl. A

VIA

$38.79

+$0.29

Gaylord

GET

$29.51

-$0.22

Viacom, Cl. B

VIAb

$38.70

+$0.37

Hearst-Argyle

HTV

$26.11

-$0.15

Westwood One

WON

$29.06

+$0.29

Interep

IREP

$2.25

-$0.01

XM Sat. Radio

XMSR

$27.67

-$0.08

International Bcg.

IBCS

$0.04

unch

-

-

-

-


Have a news story you'd like to share? [email protected]

CLICK HERE to unsubscribe to RBR's Daily Epaper



RBR Audiocast

03/22 - Get the feel of what you are scrolling down and reading ...Listen to this morning's AudioCast and
Hold On To Your Hair!

Click Here to Listen

with Bob DeCarlo'
"In Da Morning"


Bounceback

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


More News Headlines

Upped & Tapped

Rozenblat joins Univision Radio
With a law degree, marketing, record label experience and even running a financial services company on his resume, Sergio Rozenblat has now joined Univision Radio as Vice President of FM Programming Operations for the US Southeastern Region, which includes Miami and Puerto Rico.

ABC News Radio taps three for talent, production
At ABC News Radio, Gil Gross joins as a Special Correspondent based in the Los Angeles Bureau. Aaron Katersky and Christi Landes both join the New York Bureau as Correspondent and Writer/Producer, respectively.

RCS appoints three VPs in AirCheck division
RCS has appointed Joe McCallion as EVP of the AirCheck division. Also promoted from the RCS ranks are Frank Cammarata, VP/New Business Development and Brice Kirkendall, VP/Engineering and US Operations.


March Digital Magazine

Complimentary Report
2nd Quarter Accountability
"How do you plead, Effective
or Not effective?

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




NAB Day Time Planner


The following brokers will be attending the NAB. Call or email to make your appointment in advance.
-------------------------------Glenn Serafin, Aladdin Hotel,
cell 813-494-6875
[email protected]

Gordon Rice, Gordon Rice Associates, Bellagio, 843-884-3590,
[email protected]

Sarah O'Sullivan, Media Venture Partners, Ltd. , 415-391-4877,
[email protected]

Ted Hepburn, The Ted Hepburn Company, 561-863-8995,
[email protected]


Terry Greenwood, Bellagio,
410-931-3362,
[email protected]

Dick Kozacko, Luxor,
office 607-733-7138, cell 607-738-1219,
[email protected]

Jim Ortega, Satterfield & Perry,
cell 303/913-1888, [email protected]

Ron Swanson, Satterfield & Perry,
cell 570-881-5274, Bellagio Hotel, [email protected]

Cliff Gardiner, Clifton Gardiner & Company, 303-758-6900, [email protected]

Larry Patrick, Patrick Communications, 410-740-0250, Bellagio, [email protected]

Media Services Group,
Bellagio Hotel, mediaservicesgroup.com.

Zoph Potts, Snowden Associates, Bellagio, 252-940-1680 cell 252-717-3772, [email protected]

John L. Pierce, John Pierce & Company LLC, Mirage Hotel,
859-647-0101, cell 859-512-3015, [email protected]

Frank Boyle, Bellagio, 203/969-2020,
[email protected]


RBR Radar 2004
Click on these issues for Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

FCC fines Stern and Clear Channel, admonishes NBC
Fined Infinity's WKRK-FM Detroit $27,500 for a 2001 episode of the "Howard Stern Show" and Clear Channel's WAVW-FM Stuart, FL and WZZR-FM Vero Beach, FL $55,000 for a 2002 simulcast of a morning show. As expected, NBC got a slap on the wrist. RBR observation: Chairman Powell and the other four members of the FCC should be ashamed. For the first time in the history of the agency, they have demonstrated that an enforcement action can be reversed by political pressure. The commissioners are right that the NBC decision is a course reversal, but that's all they are right on. They are dead wrong on the law. By no stretch of the imagination would the FCC's revised action on the Bono comment stand up in court. This is all about politics, not law. Michael Powell, Kevin Martin, Michael Copps, Kathleen Abernathy and Jonathan Adelstein all have aspirations to higher offices in Washington. Every last one of them is using their FCC post as a stepping stone. Editor's Note: Each one of them has put politics ahead of their oath of office. 03/19/04 RBR #55

PPM not the only challenge
facing Arbitron
Arbitron still may have trouble cutting new long-term contracts with radio groups this year, since it still can't come up with cost estimates for the Portable People Meter (PPM) until it works out a joint venture with Nielsen. But a more immediate problem may be negotiating a new contract with Cumulus Media, which is studying whether to dump Arbitron in favor of cheaper Eastlan in some of its markets. RBR observation: What we hear at this point is that Cumulus and Arbitron have barely begun talking about the contract renewal and that Cumulus has barely begun the process of comparing Arbitron and Eastlan ratings data. If Lew Dickey leads the way to Eastlan, will others follow? And will agency/advertiser dollars follow as well? Editor's Note: In 1977, Jim Seiler, founder of Arbitron and MediaTrend, projected that it would cost $30 Million to break the back of Arbitron. What's $30 Million in 2004 dollars? 03/19/04 RBR #55


Do you love your job?
Can't find good experienced people?
Can't wait to get to work each day?
How about your BOSS?!
If you said no to any of these questions, wouldn't you like to make a change? For companies seeking professionals place your marketing position by clicking on submit jobs and follow the easy instructions.
Find Your Radio Career
Post Your Companies Job Openings
Questions? Contact me [email protected]

Other Links
State Associations
Issue Archives
Contact Us
©2004 Radio Business Report/Television Business Report, Inc. All rights reserved.
Radio Business Report 6208-B Old Franconia Rd. Alexandria, VA 22310