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Volume 22, Issue 61, Jim Carnegie, Editor & Publisher
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Monday Morning March 28th, 2005
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Radio News®
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The buzz: Entercom and Citadel in merger talks
 It's the rumor that won't die. RBR/TVBR keeps hearing that Entercom is in talks to acquire Citadel Broadcasting. Neither company will respond to requests for comment - - no confirmation, but no denial either. Such a combination would make a lot of sense for both sides. It's no secret that Ted Forstmann hadn't expected to have Forstmann Little's investment capital tied up in Citadel this long, but with the public market price well below the 19 bucks IPO price, he doesn't have a good way to cash out. No doubt Farid Suleman would like to move onto other projects as well, which was a key element of the deal when he was recruited by Forstmann to be CEO of Citadel. For Entercom CEO David Field, rolling in Citadel - - likely in a stock swap - - would be a way to achieve his long-held goal of making Entercom the third titan of the radio world, closing fast on one billion in annual revenues to put it in a league with Clear Channel Radio and Viacom's Infinity. Here's a thumbnail view of what the merged company would look like.
| Radio company |
2004 revenues
(M) |
2004 SOI* (M) |
Stations |
Markets |
| Entercom |
$423.5 |
$178.8 |
107 |
21 |
| Citadel |
$411.5 |
$176.3 |
213 |
47 |
| Combined |
$835.0 |
$355.1 |
320 |
65 |
| *station operating income |
RBR observation:
Station brokers and would-be buyers need not get too excited. One of the things that makes such a merger so attractive is that very few spin-offs would be required. Entercom and Citadel compete only in Buffalo, Memphis and Providence (and Entercom has only one station in Providence). As for timing, we can't say, but 2005 looks like a good year to pull it off. Things are looking up for both companies - - and for the radio business in general - - but their stock prices are still languishing. A big merger like this might get Wall Street excited about radio again.
Sharpton wants FCC hearings on violent songs
 After meeting with three of the four FCC Commissioners in Washington, Rev. Al Sharpton declared that the Commission was likely to hold hearings on whether some radio stations are encouraging violence by airing hip-hop songs with violent lyrics and talking about threats and challenges by rival rapper groups. There was no confirmation from the FCC that any such hearings are planned, but Commissioner Michael Copps did issue a brief statement: "We welcomed the opportunity to meet with Rev. Sharpton to discuss media violence, the issue of violence in the media is one the Commission ought to take more seriously." Chairman Kevin Martin and Commissioner Jonathan Adelstein did not comment on their meetings with Sharpton. For his part, the civil rights activist predicted that the FCC would go on the road to hold hearings on the issue in New York, where he and others have accused Emmis' WQHT-FM of inciting violence. The street in front of the station has been the scene of two shooting incidents involving associates of artists who had just been interviewed on the air. In Sharpton's view, the FCC should fine stations who encourage violence and put their licenses up for review.
RBR observation:
Like so many people, Rev. Sharpton believes, incorrectly, that the FCC has broad authority to regulate broadcast content. In fact, it has very narrow authority - - limited to barring indecency at certain times of day, barring obscenity at any time and enforcing special restrictions for children's television programming. But that could change. Several Members of Congress have been talking about restricting violent content in broadcasting - - particularly primetime TV - - with the FCC as the enforcement cops. So while the Commission has no authority to sanction WQHT or any other station for letting rappers air their violent challenges, it could well hold hearings on whether to ask Congress for such authority. Given the mess the FCC has made of indecency enforcement, the possibility of further regulatory authority over content is something that should strike fear in the hearts of broadcasters. |
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Imus none too happy about ranch investigation
 The I-Man used his airtime last week to blast The Wall Street Journal over a front-page article raising questions about his charity for sick kids
(3/25 RBR
#60).
The article detailed Imus and his family's personal stays at the ranch. Imus responded by saying there's nothing shifty about his charity or his tax history. Although he took issue with the NY AG Eliot Spitzer inquiry, Imus vehemently described the WSJ story as "a hatchet job" and its author, whom he called "a dishonest punk." "They should be ashamed of themselves," Imus told his listeners. Expenses at the ranch totaled nearly 2.6 million, according to tax papers, but the ranch hosted only about 100 children, the Journal said. Imus maintained that he runs the ranch while he is there and saves money by not paying a director. As for using the ranch as a vacation spot, Imus says he has a 24 million waterfront estate in Westport, CT., that suits his vacation needs just fine. Imus went on about the scrutiny for more than half his show, denying that he takes advantage of the ranch for personal use. He said that during the holiday season when he was there last year, he never even got on a horse. "I'd close [the ranch] down before I'd pay to stay here," Imus said. "That's insane."
Imus' charity drew the attention of New York investigators when the organization failed to file its income-tax exemption forms on time. And, perhaps, from accusations made by a former nanny
(12/1/04 RBR
#233).
RBR observation: We still repeat the publisher observation from Friday's report about keeping ones ego in check.
3/25/05 RBR #60
Clear Channel adding video to web offering
Today, CC Radio is rolling out plans to add original video programming to its 200 local radio stations' websites to add more ad inventory and ad options. Plans include podcasting clips from its radio shows and hosting exclusive live online concerts to draw more traffic to the sites. The podcasting initiative will begin by May, allowing listeners to download programming such as comedy skits by popular morning show hosts. Music programming won't be included. The online concert series, dubbed "Stripped" (separate from the podcast promotion), will kick off with Rob Thomas from Matchbox 20, followed by musicians including John Legend, Jesse McCartney and Gavin DeGraw. Each artist will perform four of his own songs, rearranged to sound different than the album versions, plus one cover. As early as July, CC plans a new digital strategy that may begin offering subscription online radio services, the ability to buy songs digitally or in CD format, or even ringtones directly from their websites. CC also plans to make some of its live morning shows available for downloading/podcasting.
Loss of ESPN Radio prompts WNSR lawsuit
 Southern Wabash Communications' WNSR-AM Nashville filed a suit last week against Cumulus Media, which owns WNFN-FM and WTN-FM there, alleging tortuous interference with the contract between it and ABC/ESPN. The suit named ABC Radio Networks, its ESPN Radio unit and Cumulus Media as defendants and seeks punitive damages. WNSR, which changed its named to ESPN 560 last spring, has held the local affiliate rights to the ESPN Radio Network since 1997. WNFN, for several weeks, has promoted its plan to start carrying ESPN beginning today. In its suit WNSR claims ABC/ESPN along with Cumulus conspired to move ESPN from WNSR to the two Cumulus-owned stations (WTN and WNFN) and damage WNSR as a future competitor in violation of anti-trust laws.
Country battle in Indy
Emmis Communications has fired a shot across the bow of Susquehanna Radio, flipping WENS-FM Indianapolis from AC to Country as “97.1 Hank FM.” That puts Emmis, which is headquartered in the Hoosier capital, in head-to-head competition with Susquehanna’s WFMS-FM, which has been #1 in the market for half a decade. After making the switch Friday, “Hank” was going commercial-free through Easter Sunday, emphasizing a deeper playlist than most Country stations, including lots of classic tunes.
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Adbiz©
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MindShare: viewers approve of product placements
According to MindShare's annual survey, 80% of American viewers have a positive view of product placement in television and movies. In fact, only 12% said they "do not like it at all." 6% said they found it unappealing. "Product placement has emerged as one of the most powerful ways for a marketer to connect in a meaningful way with their consumer," said Marc Goldstein, MindShare NA CEO. "Our findings indicate that the critical factor in making product placement work is how it's done, underscoring the vital role that agencies continue to play in working with marketers to make their messages relevant to consumers." In the survey, 46% said "it depends how it's done," when asked their impression of product placement. Another 37% said "it's generally okay with me." According to the survey, about two-thirds of those polled said they notice more product placement in TV shows and movies than they used to, and one-third said they are responsive to product placement by trying a product after seeing it in a TV show or movie.
DaimlerChrysler's Julie Roehm:
"transparent" upfront
 Julie Roehm, DaimlerChrysler director of brand communication, wants new a system instituted for the TV upfront that's transparent and open rather than the usual behind-closed-doors deals. At the ANA TV Advertising Forum last week, Roehm said the current model is good for networks but bad for clients. She says networks should place starting values on spot avails for advertisers, and then anonymous advertisers could buy and sell the airtime at prices determined by the marketplace. Networks could decide who participates by providing special access codes to buyers who meet certain criteria. Roehm also pointed out that the system wouldn't allow networks to bundle-packaging prime inventory with less attractive inventory in order to get rid of it. Rather, buyers would bid on only the space and spots they want.
Drug companies launching campaign
The AP reports 10 drug companies behind a recently established discount card for the uninsured are launching an advertising campaign to promote it. The ads for the Together Rx Access Card will appear on 12 cable nets, radio in 34 markets and newspapers in several cities next month. Roba Whiteley, executive director of Together Rx Access, declined to give the campaign's budget, saying the companies were "spending a robust amount." The card was announced in January and gives uninsured people who meet certain requirements discounts of 25% to 40% on drugs. Whiteley declined to say how many people have signed up for the card so far. To be eligible for the card, individuals must be legal residents who don't have drug coverage and aren't eligible for Medicare. Whiteley said that 80% of the country's 45 million people are eligible for the card. Seven of the 10 companies launched a discount card for senior citizens in 2002. Whiteley said special efforts would be made to reach communities with large numbers of blacks and Hispanics because she said they make up a larger portion of the uninsured. The companies are Abbott Laboratories, AstraZeneca, Bristol-Myers Squibb; GlaxoSmithKline; Janssen Pharmaceutica Products and Ortho-McNeil Pharmaceutical, which are part of Johnson & Johnson; Novartis; Pfizer, Sanofi-Aventis, Takeda Pharmaceuticals and TAP Pharmaceutical Products.
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No matter what, the Revalidation process is necessary. I can't do it for you, only you can Revalidate your membership read: 8 days and Counting:
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Success,
Jim Carnegie
Publisher & Broadcaster
[email protected]
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| Media Markets & MoneyTM |
And the K-Bach price is�
The paperwork has now been filed with the FCC for J&M Broadcasting's sale of Classical KBOQ-FM "K-Bach" Monterey-Salinas, CA to Mapleton Communications
(3/25/05 RBR
#60). The price tag is 3.75 million. Also, Mapleton has told the FCC that it will be divesting two of its FMs in the Monterey-Salinas market to make the acquisition of KBOQ comply with the Commission's current local ownership limits. The company didn't say which two are going, but said it will file sales agreements soon - - and it asked for them to be processed simultaneously with the KBOQ transaction.
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| Washington Beat |
Clear Channel gets Columbus move-in
 Clear Channel has finally succeeded in a long-pending effort to move WMRN-FM Marion, OH into the Columbus market. The FCC's Media Bureau has approved the proposal to move WMRN - - 106.9 mHz - - to Dublin, OH as its city of license and downgrade it from Class B to B1. Even so, it will cover a lot more people than it does currently, putting a city-grade signal over 71% of the Columbus Urbanized Area. At the same time, Clear Channel's WSRW-FM Hillsboro, OH - - Class A on 106.7 - - will move to Chillicothe, OH, where Clear Channel already owns an AM and an FM. Hillsboro will be left with only a daytime AM, also owned by Clear Channel. The Media Bureau rejected claims from several objectors that Dublin is not really a community independent of Columbus. It also rejected an argument from the Committee for Competitive Columbus Radio that Clear Channel shouldn't be allowed to do the move-in because it would give the company more stations than allowed under the new ownership limits, based on Arbitron market definitions. The Bureau agreed with Clear Channel that the issue is premature - - and that the company can deal with making whatever divestitures are necessary under the rules which are in effect at the time it is ready to apply for a license for the relocated station. |
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| Monday Morning Makers & Shakers |
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Transactions: 2/14/05-2/18/05
Dealers retreated out of the top markets this week, but not all the way out of Arbitron territory, for the most part. The markets where the action was centered were mostly in the three-digit portion of the Arbitron ranking list, and they were exclusively of the radio persuasion.
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Total
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Total Deals
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16
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AMs
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7
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FMs
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11
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TVs
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0
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| Value |
 24.505M
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Radio Transactions of the Week
Cherry Creek goes east...way east
After starting out in the Rockies, and adding property in Texas, Cherry Creek headed all the way over to Long Island to grab a quartet of Hamptons-Riverhead FMs from AAA Licensing. Seller's Peter Ottmar retains a piece of the stations in an agreement valued at 12M. |
TV Transactions of the Week
Sleepy
time
for
TV
trading
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| TVBR - - TV NEWS |
"Monday Night Football" on the line
 Resurgent ABC is playing rough with the NFL and it's unlikely that any new deal for primetime pro football will be announced anytime soon. As NFL owners met in Hawaii last week, Commissioner Paul Tagliabue reportedly told them that negotiations with ABC and ESPN, both owned by Disney, are still in flux. He told the AP that all sorts of options are being explored. ABC wants to stop the money that it's hemorrhaging from "Monday Night Football," so it could move to ESPN - - but other options are also possible, games on Sunday nights, for example, perhaps more than one network carrying NFL games in prime time. What is clear at this point is that ABC and ESPN haven't come to the table with a deal that would make the NFL want to renew the current 9.2 billion agreement for "Monday Night Football" on ABC and Thursday night primetime games on ESPN. The NFL previously renewed its agreements with Fox and CBS for its Sunday afternoon games
(11/10/04 TVBR
#220), but the big bucks are in primetime
RBR observation: NBC is the odd man out when it comes to pro football. After a debacle in trying to broadcast the XFL after losing its NFL contract, might NBC move back in to displace ABC/ESPN now that NBC Universal has a significant cable universe of its own - - USA, Bravo and
SciFi?
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| Transactions |
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$32.1M KBLR-TV Las Vegas (Paradise NV) from Summit Media LP (Scott Gentry) to Telemundo Las Vegas Licensee LLC, a subsidiary of NBC Telemundo License Co. (Jay Ireland). $750K escrow, balance in cash at closing. Includes CP for LPTV in Pahrump NV. Station is Telemundo affiliate on Channel 39 (DTV Channel 40). [File date 2/28/05.]
$1.1M WSRM-FM CP Coosa GA from Leslie E. Gradick, executor for Estate of Jean M. Gradick to Coosa Broadcasting Corporation (Paul C. Stone). $55K escrow, balance in cash at closing. Superduopoly with WRGA-AM/WQTU-FM Rome GA & LMA of WTSH-FM Rockmart GA. CP expired 3/1/05. [File date 3/2/05.]
$288K WIZB-FM Dothan AL (Abbeville AL) from Celebration Communications Company Inc. (Art Morris et al) to Radio Training Network Inc. (Michael Watkins, James L. Campbell, Lee Freeman, George Ready, Dan McBride, Larry Maxwell). Debt assumption. Approximate total of three assumed promissory notes. Buyer is noncommercial entity. [File date 3/2/05.]
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| Radio Stocks |
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US
stock
markets
were
closed
Friday
in
observance
of
Good
Friday.
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__UNSUB__ to this email service.
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Don't Forget
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.
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Bounceback
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 We want to
hear from you.
This is your column, so send your comments to [email protected]
This Clear Channel rep takes issue with a previous Bounceback (3/15/05 RBR #52).
 I just have to respond to Mr. Zihlman's comment about how all Clear Channel reps now proclaim that "thirties are the way to go" because the Company enforces it and that we do not sell ideas or concepts to our clients. Apparently his biased opinion is not based on actual experience in the way some of us sell radio. For your information we do sell concepts and ideas and offer clients the right blend of reach, frequency and a good message. And our clients have for a number of years been given the option of whether they wanted to use :30's or :60's, but they had to pay the same rate for either choice. Now anyone still has the choice, but the :30 rates are lower than the :60's which gives the smaller client who perhaps could not afford to advertise before, the ability to do so. This is not something new! Television has been doing this for years. Soon everyone will be jumping on the bandwagon. Why not get off Clear Channel's back and give out some positive feed-back for a change?
Pat Miller
KHEY 96.3 FM
El Paso, TX
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NAB Daytime Planner
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The following brokers will be attending the NAB. Call or email to make your appointment in advance.
Cliff Gardiner, Clifton Gardiner & Company, 303-758-6900, Bellagio, [email protected]
Frank Boyle, Frank Boyle & Co., LLC, Venetian Hotel, 203-969-2020,
[email protected]
John L. Pierce, John Pierce & Company LLC, Mirage Hotel,
859-647-0101, cell 859-512-3015, [email protected]
Jamie Rasnick, John Pierce & Company LLC, Mirage Hotel,
859-647-0101, cell 513-252-1186, [email protected]
Dick Kozacko/George Kimble, Kozacko Media Services, Bellagio,office 607-733-7138,
cell 607-738-1219, [email protected]
Elliot Evers, Media VenturePartners, LLC, 415-391-4877,
[email protected]
Larry Patrick/Greg Guy,
Patrick Communications, Bellagio,
410-740-0250, [email protected]
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Upped & Tapped
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Upped in Allentown
Clear Channel's WZZO-FM Allentown, PA has promoted Tori Thomas from Promotions Director to Program Director. She succeeds Rick Strauss, who's now Director of Content for Clear Channel's new Online Music and Radio division.
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Stations For Sale
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10 Station (One State) Group
Four Markets with $900K Trailing Cash Flow. Offered at 8X CF.
Excellent Management and Great Growth Upside. Located in Far Northwest.
Cliff at Clifton Gardiner & Co (303)758-6900
[email protected]
Santa Fe Market #237 FM
New market FM entrant ready to go and priced right! Santa Fe is a unique and rich market. A great opportunity for an aggressive, innovative operator!
Cliff at Clifton Gardiner & Co
(303)758-6900
[email protected]
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March Digital Print Magazine Now Available
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2005 Technology Odyssey...
The Changing Landscape
Ipods up to 4M sold over Christmas and radio doesn't have a problem?
Nexstar's Perry Sook goes exclusive One-On-One and is very vocal on why he is standing alone and tall against the Cable MSO's.
Brace yourself as media top gun Irwin Gotlieb tells all Radio & TV what he really thinks and if you don't like it - "Then change careers."
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
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RBR Radar 2005
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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Account Action:
A run-down of this weeks' reviews and moves
This is just the short list: Motorola has placed the digital and relationship marketing portion of its 100 million global account into review. The review covers Motorola's global interactive marketing strategy, online and relationship marketing. The incumbent, OgilvyOne, Wunderman, and Havas' Euro RSCG 4D are reportedly participating.
RBR observation: Wow total that cash walking around and this is just in the past few days. Radio and Television execs now you wished you attended the 4A's conference. We have said it before that the ad agencies are under pressure from the accounts and just add up the dollars on this short list. No brain surgery why ad agencies need and want to participate with better audience measurement in both mediums. CEO's of Radio & TV bring yourselves up to ad agency CEO level and you'll understand real pressure with accountability. How would you like seeing 3 billion of GM or 100 million of Motorola money walk out the door? You think you have it tuff. Get real but you can be a part of the solution and get with technology and this is just for starters.
03/25/05 RBR #60
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General Sales Manager
Legend Communications GSM needed in Sheridan, Wyoming. Ability to lead a sales staff in training and time management. Selling is required.
Positions Wanted
Hispanic Media Guru
Looking to work with solid media company pursuing the Hispanic market. 100% bi-lingual and cultural. Extensive rolodex. Strong values and work ethics. Confidentiality please. [email protected]
TV looking for
Radio Situation
TV GM excellent record of revenue, ratings and community performance seeks GM or Market Manager radio broadcasting company. Presently employed in TV, prefer western and south. Call: 720-837-0337
See Radio Careers for more info.
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