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Volume 23, Issue 59, Jim Carnegie, Editor & Publisher

Friday Morning March 24th, 2006

Radio News ®

Ratings set to resume in New Orleans
Hurricane Katrina forced Arbitron to cancel its Summer, Fall and Winter ratings books in New Orleans and other storm-ravaged markets. Now, the ratings company says it is set to resume radio ratings, effective with the Spring 2006 survey in New Orleans, Biloxi-Gulfport-Pascagoula, MS and Beaumont-Port Arthur, TX. "In making our decision about whether to conduct a survey following a natural disaster, we take into consideration the physical and economic impact of the disaster as well as our ability to reach respondents in the market. We believe the time has come to resume surveying these markets," said Carol Hanley, Arbitron Sr. VP of Sales. Even so, Arbitron says it will review the quality of its survey data before any numbers are released for those markets. It says the Spring books will only be published if the data meets Arbitron's quality control standards.

RBR observation: Interestingly, TV is ahead of radio in getting back to normal ratings service post-Katrina. Nielsen had Biloxi-Gulfport and Beaumont-Port Arthur back in business for the February sweeps with diary measurement. We hear that client meetings are scheduled soon in New Orleans to talk about resuming metered measurement, although that's not likely to actually take place for many months yet.

Ft. Walton deal is a conditional go
However, a transaction in which Cumulus and Star Broadcasting essentially switch a pair of FMs will not go through unmodified. Qantum Communications, with the aid of Washington watchdog Media Access Project, had tried to get the whole shebang shot down. The Fort Walton Beach FL market is up on the panhandle between Tallahassee and Pensacola. Qantum was angry, first and foremost, because its own deal to acquire WTKE-FM Holt from Star was jettisoned by Star in favor of a cash/swap with Cumulus. Cumulus loaned Star 850K to buy the station from Capstar, then swapped WYZB-FM Mary Esther and 1.5M cash for it. Then, Cumulus sent WNCV-FM Niceville to Star, along with another 1.5M, in exchange for WPGG-FM, licensed to Evergreen AL but with permission to move into the market at Shalimar FL. Qantum argued that WPGG-FM would put Cumulus over the market's four-FM ceiling, that the dealing as a whole would give Cumulus stronger stations, increasing its already-dominant market power; that it was unfair for Cumulus to get rights-of-first-refusal to acquire three Star stations, including the two it swapped to Star and also WBAU-AM Ft. Walton Beach; and that the contracts on the swaps barred Star from using AC or Country formats for a period of five years. The FCC, for a number of reasons, has allowed all of the deals to go through, but Qantum/MAP did not come away entirely empty-handed - - the contracts will need to undergo some key revisions.
| Read elements of the FCC decision |

Bidders lining up for Univision
To no one's surprise, private equity firms are teaming up to bid for Univision - - a prize that's expected to fetch over 10 billion bucks - - maybe as much as 13 billion. Reuters reports that Goldman Sachs Capital Partners, Texas Pacific Group and Thomas H. Lee Partners are lining together as one bidding group. A second group could be formed by Kohlberg Kravis Roberts, the Blackstone Group and Bain Capital - - or any or all of them could join one of the other bidders. It was previously reported (3/10/06 RBR #49) that US/Israeli billionaire Haim Saban had teamed with Providence Equity Partners and Venezuela's Cisneros family to bid for Univision along with Mexico's Televisa. However, Televisa has since denied making any commitment to a bidding group.

RBR observation: Televisa CEO Emilio Azcárraga Jean is holding the most important cards in his hand - - and he knows it. Televisa supplies a lot more programming to Univision's TV networks than does the Cisneros family's Venevision, although each owns a little over 10% of Univision's stock. Whichever bidding group has Televisa as a partner goes into the bidding with a decided advantage. No doubt Azcárraga Jean is talking to everyone - - and holding out for the best deal.

A look at 2004: Did you know...
...that in the federal elections of 2004, the Communications/Electronics sector of industries gave almost 60% of its donation total to Democrats? The actual breakdown was 59%/41%. In cash terms, the totals were about 59.848M for Democrats opposed to 40.868M for Republicans. These results are from opensecrets.org. Microsoft was on top of the list, followed by Time Warner, which by virtue of the presence of WTBS-FM Atlanta in its portfolio was the top station owner. Both favored the Dems. The top real station owner also went Democratic - - that was Viacom/CBS (before the split), charting at #6. Among the other TV network owners, News Corp./Fox and Walt Disney/ABC are #10 and #11, and favored Democrats. And yes, that's no typo - - for all its Republican rep, Fox went 60/40 in favor of Democrats. GE/NBC was not on the list - - we found it under Miscellaneous Businesses, but it would have come in between the two we just mentioned, and was the only one of the Big Four network owners to favor Republicans. The biggest radio company - - Clear Channel, and the NAB and NCTA all favored Republicans. Monday: Which way the money's flowing for 2006, so far...
| Here's the opensecrets.org Top 20 (+1) for 2004 |

The great divide: Decent or not?
WB chose not to. That is, it chose not to show certain scenes in a pilot for a show called "The Bedford Diaries," based on concerns about the FCC's latest indecency fines. The show is from Tom Fontana, who has "St. Elsewhere" and "Homicide" on his resume. According to the New York Times, Fontana refused to edit out certain scenes, so WB decided to a) edit them out themselves for broadcast and b) put an uncut version on the Internet. The scenes involve two girls who kiss on a dare and a girl who unbuttons the jeans she's wearing.

RBR observation: FCC chairman Kevin Martin seems to think the Commission was successful in clearing up the confusion as to what is indecent and what isn't, but Fontana is confused - - he said the ruling was "incomprehensible." The shift of the uncut version of the program to the web was cited as a cause for concern, in that eventually broadcast TV would be seen as a place where programming is safe to the point of being predictable and boring. We haven't seen the scene, but it is perfectly legit for two girls to kiss anywhere they so choose, and it's legit - - we think - - for one's jeans to be imperfectly fastened as long as the results don't veer into the territory of indecent exposure. It is difficult to believe that a finding of indecency against the broadcast of such things would hold water - - if they are, my wife's favorite soap (which will remain unnamed) is in grave danger. Anyway, as predicted, broadcasters remain utterly clueless as to the location of the great decent/indecent divide. If anything, the most recent rulings only made it harder to find.

Ad Business Report TM

Biggest radio ad categories remain,
but spent less in '05
The Radio Industry had flat revenues in 2005 compared to the previous year. However, peeking behind the Industry's sideways move, some of the largest Radio advertising categories plummeted dramatically, including a 3.3% decline from 2004 among the largest categories. Media Monitors asked Wall Street financial analyst James Boyle to explore its database from the industry's major markets to ascertain the changing Industry trends by Ad Category. In his latest report issued yesterday, Boyle notes these trends among top radio ad categories in 2005:
| Read More... |

Sirius to sponsor FLW Outdoors events
FLW Outdoors announced Sirius Satellite Radio has signed a multiyear agreement to become the official satellite radio provider of FLW Outdoors and sponsor all 12 of the FLW Outdoors tournament trails, including the new Wal-Mart FLW Series and Wal-Mart FLW Kingfish Series. As a platinum sponsor, Sirius will be featured in a variety of media formats, including the "FLW Outdoors" TV program on FSN. Sirius will also benefit from prominent ads in FLW Outdoors Magazine and at FLWOutdoors.com. Further marketing opportunities with FLW Outdoors include sponsor-specific product displays and sampling in the Family Fun Zone, signage at tournaments, angler-award programs, and other promotional and public-relations materials. Sirius will also have the opportunity to use the "Official FLW Outdoors Look for the Hook" logo on its products.

Media Markets & Money TM

Moss amasses SW AMs
Gary Moss and his M & M Broadcasters Ltd. have closed on their acquisition of four AMS in Texas and Oklahoma from First Broadcasting. According to broker Sandi Bergman of MyMediaBroker.com, the pricetag was 1.2M. Of the four stations - - KCLE-AM Cleburne TX, KJSA-AM Mineral Wells TX, KEOR-AM Atoka OK and KREL-AM Quanah TX, the jewel in the rough is KCLE. It's considered to be part of Dallas-Ft. Worth, and will double up with M & M's KHFX-AM Burleson. It's also attempting to get an upgrade though the FCC - - if successful, the pricetag will go up another 500K (12/20/05 RBR #247).

Washington Media Business Report TM

Commerce Committee looks at convergence
We don't watch much pro wrestling, never did, but occasionally we saw an episode or two. If we remember correctly, every now and then they'd put aside the usual one-on-one format and just let everybody into the ring at once to go at it. That's pretty much what convergence is going to be about, isn't it? A great big fun feature of the upcoming media landscape will be a free-for-all in which industries supplying programming, phone service and Internet access will all try to hang onto as much of their traditional business as possible while at the same time purloining as much business as possible from the other two. The Commerce Committee will get a preview of this battle next week, Thursday, 3/30/06 at 2:30 Eastern. Best of three falls. The main event bout will feature: * Kyle McSlarrow, President and Chief Executive Officer, National Cable and Telecommunications Association; * Earl Comstock, President and Chief Executive Officer, COMPTEL (from whence comes our pending 5th FCC commissioner Robert McDowell); * Walter McCormick, President and Chief Executive Officer, US Telecom; * Steve Largent, President and Chief Executive Officer, CTIA-The Wireless Association; * Jerry Ellig, Senior Research Fellow, Mercatus Center, George Mason University; and there will even be a watchdog: * Mark Cooper, Consumer Federation of America, Director of Research.

RBR observation: Broadcasters have the luxury of sitting on the sidelines to an extent, with active involvement limited to making sure they are carried prominently on all distribution platforms - - ideally playing one industry off the others to ensure the sweetest deals possible.

NewsTalk

Talk Radio 2006: Create Powerful Radio:
Avoid the "Manufactured" Hour
By Valerie Geller (from January's RBR/TVBR Solutions Magazine)

We are in a technological shift the likes of which the world has never seen. Consequently, most of the content broadcast is easily accessible to your audience in other places: radio, internet, iPod, TV, even on their cell phones. Because of this, it is easy for a listener to think: "I've heard that before," then, if bored, they tune out. Focus groups show that when news or talk content is presented in a dry or boring way, audiences can't even remember what they have heard fifteen minutes after they've heard it! It doesn't stick. Audiences want it real. They do not want to hear "And now, another topic manufactured to fill air time on the radio!" Today's audiences want to feel as though they are in the room with a host who is a real person. To win ratings now, we need personalities as compelling as the stories they are telling.
| Read More... |

Internet Media Business Report TM

CBS, Yahoo! bring "60 Minutes" content to the net
CBS and Yahoo! announced a partnership to bring 60 Minutes video content and news packages to Yahoo!'s media properties. The relationship was announced by Sean McManus, President, CBS News and Sports, and Lloyd Braun, Head of the Yahoo! Media Group. The content will be available this fall when 60 Minutes begins its 39th season. A special preview of the free video programming on Yahoo! will be available this Sunday and feature a rare interview with Tiger Woods. When the service launches, users will have access to 60 Minutes content throughout Yahoo!, including on the News, Sports and Entertainment sites, as well as on a newly created "microsite" on Yahoo! dedicated to 60 Minutes. Each week following the Sunday night broadcast of the news magazine, the microsite will be updated with two news packages. One package will expand on a segment featured that week on the television broadcast. The second will be based on a topical news theme for that particular week. Both offerings will include never-before-seen footage, as well as interactive elements such as maps, a reporter's notebook, blogs and photo galleries. Most packages will be a combination of new video footage, and video content pulled from the archives. This is the second online partnership between Yahoo! and CBS. In December, Yahoo! streamed full episodes of CBS comedies Two and a Half Men and How I Met Your Mother.

Transactions

245K WIGG-AM, WXAB-FM Wiggins MS (Wiggins, McLain MS) from Tralyn Broadcasting Inc. (James Michael Self) to Community Broadcasting Company Inc. (Sheree Cospelich, Gayon Bird). Settlement of lawsuit for breach of contract. [File date 3/1/06.]

N/A KQRW-FM CP Windom MN from Educational Opportunities Inc. (Shan Easterling) to American Family Association. Gift. CP is for Class A on 88.1 mHz with 250 w @ 171'. [File date 3/1/06.]

Stock Talk

Radio stocks buck a down market
There really wasn't any news to account for it, but somehow radio stocks had an up day as most of the market fell on Thursday. An unexpected jump in home resales reignited fears that the Fed would continue to raise rates. The Dow Industrials fell 47 points, or 0.4%, to 11,270.

But the Radio Index moved up 0.865, or 0.5%, to 161.319, with most radio stocks in the plus column. The biggest gainer was Spanish Broadcasting System, up 3.5%. Salem rose 1.6%, with Fisher and Saga each up 1%.

Radio Stocks

**Here's how stocks fared on Thursday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		33.95	+0.10	Hearst-Argyle	HTV		23.90	+0.14
Beasley	BBGI		10.26	+0.02	Jeff-Pilot	JP		59.49	-0.24
CBS CI. B	CBS		24.89	-0.19	Journal Comm.	JRN		12.28	+0.02
CBS CI. A	CBSa		24.91	-0.16	Radio One, Cl. A	ROIA		7.65	-0.01
Citadel	CDL		11.27	-0.04	Radio One, Cl. D	ROIAK		7.70	+0.01
Clear Channel	CCU		29.40	-0.02	Regent	RGCI		4.51	+0.01
Cox Radio	CXR		13.49	+0.06	Saga Commun.	SGA		9.11	+0.09
Cumulus	CMLS		11.46	unch	Salem Comm.	SALM		14.20	+0.22
Disney	DIS		27.52	-0.27	Sirius Sat. Radio	SIRI		5.14	+0.28
Emmis	EMMS		16.61	-0.04	Spanish Bcg.	SBSA		5.34	+0.18
Entercom	ETM		28.29	+0.05	Univision	UVN		33.47	+0.14
Entravision	EVC		8.19	+0.08	Westwood One	WON		11.35	+0.02
Fisher	FSCI		43.05	+0.43	XM Sat. Radio	XMSR		21.40	+0.28
Gaylord	GET		43.99	-0.15	-	-	-	-	-

Bounceback

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Below the Fold

Ad Business Report
Biggest radio ad categories
Remain, but spent less in '05 in other words - flat revenues...

Media Markets & Money
Moss amasses SW AMs
Closed on their acquisition of 4 AMS...

Washington Media Business Report
Commerce Committee looking
At convergence which is much like watching pro wrestling...

Internet Media Business Report
CBS, Yahoo! bring
60 Minutes content to the net...

Radio Media Moves

Beantown bound
Former WGN-AM Chicago PD Len Weiner has been named Program Director of J Sports Boston's WAMG-AM "890 ESPN Boston" and WLLH-AM "1400 ESPN Lowell."

Tolchin to
The Media Audit
Les Tolchin has signed on as a consultant to The Media Audit, which is developing an electronic radio ratings system in competition with his former long-time employer, Arbitron. Tolchin is joining The Media Audit effort via his own firm, Doneraile International.

McKernan
returns to radio
Jim McKernan has been named Vice President/General Manager of CBS Radio's KEZK-FM & KYKY-FM St. Louis, effective April 3rd. McKernan's resume has both radio and TV call letters. He was most recently VP/GM of Emmis' KMTV-TV Omaha.

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

Decision 2006:
NAB votes tallied
NAB has announced the results of the annual elections for its Radio and Television Boards. Incumbents were re-elected to 8 of 12 Radio Board seats and five of the six TV Board seats up for election this year. The NAB Board of Directors election results are as follows:
| The List |

Debating the
future of ratings
As members of the Next-Generation Electronic Ratings Evaluation Team move toward selecting a new ratings technology and methodology for radio, broadcasters, advertisers and agencies in the San Francisco Bay area are going to hear the issue debated next month. The Northern California Broadcasters Association has put together a breakfast panel Wednesday, April 5th to discuss "The Future of Radio Ratings." Panelists will be Kathy Crawford, President Local Broadcast, MindShare Worldwide; Arbitron President Sales & Marketing Pierre Bouvard; and Clear Channel Radio CEO John Hogan. More information at www.ncbaradio.com.

37 to encode for
cell phone test
The Media Audit/Ipsos reports that a total of 37 radio stations in the Houston market have agreed to encode for the first US field test of the Smart Cell Phone-based system that the companies have proposed for a new radio ratings system. In addition to those previously announced - - Radio One, Cox Radio, CBS Radio, Clear Channel, Univision and Cumulus - - Liberman has now agreed to encode. That figure of 37 could still grow. The Media Audit/Ipsos says Salem and Susquehanna are "other players indicating interest."

TVBR - TV News

Gannett warns
of soft quarter
Gannett told Wall Street that Q1 earnings per share will likely be at the low end of the range of 98 cents to 1.02, which was described by CFO Gracia Martore as being where "most analysts" expected the company to be. Prior to the announcement, the 13 analysts surveyed by Thomson/First Call were in a range of 0.98-1.07, with the consensus view pegged at 1.02, vs. 1.05 a year ago. Even so, the news wasn't a surprise, given the recent weakness in newspaper ad demand, so Gannett's stock price was up slightly Thursday. The company had given a hint of how soft the quarter was with its monthly report of a 2.8% drop in newspaper revenues for February (3/14/06 TVBR #51). That decline was only partially offset by an Olympics windfall that boosted TV revenues by 32.6%.

RBR Radar 2006

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

Media Audit/Ipsos got aggressive
In a Wall Street conference call arranged by Bear Stearns, The Media Audit President Bob Jordan revealed that his company will propose a roll-out schedule even more aggressive than the one that Arbitron unveiled for its Portable People Meter earlier this month. Added punch - Media Audit/Ipsos plans to start talking with TV owners as well about competing with Nielsen.

RBR observation: If you are going for a knock out punch and nothing to lose then be as aggressive as one can be. Only word of caution - talk is cheap and money speaks louder than words. For some and even to RBR encoding in Houston with the participation level is no surprise as the stations have nothing to lose and added pressure to put on the big dog of Arbitron as it is called - Leverage.
03/23/06 RBR #58

Mocarsky vs Mandel on PPM
RBR observation: If you want to read the war of words over ratings and how top Ad Agency CEO Jon Mandel, Chairman/MediaCom US and Chief Global Buying Officer MediaCom Worldwide and how Arbitron spokesperson Thom Mocarsky had to clarify - well got to read it.
03/23/06 RBR #58

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