www.marketron.com
Welcome to RBR's Daily Epaper
Volume 25, Issue 64, Jim Carnegie, Editor & Publisher
Tuesday Morning April 1st, 2008

Radio News ®

www.glrnetworks.com


Interep files pre-packaged Chapter 11
This is going down pretty much as our RBR observation had suggested a few days ago. Interep has reached a deal with its creditors and filed Chapter 11 cases in Federal Bankruptcy Court for the company and its subsidiaries. CEO David Kennedy tells RBR that under the proposed reorganization plan, Interep's bond holders will become major shareholders and also provide Interep with new financing for future growth. If all goes according to plan, Interep will exit Chapter 11 reorganization in about 90 days.

RBR observation: Things have certainly changed since Oaktree Capital Management first acquired its pile of Interep bonds three years ago and began pressing for a payoff.
| Read more here |

Citadel moves ABC stations to Katz Radio Group
It was only a matter of time after Citadel had its falling out with Interep not long ago and moved to Katz: Citadel announced the Katz Radio Group will represent its 22 previous ABC Radio stations in nine markets. Interep's ABC Radio Sales will now only represent ESPN Radio and Radio Disney. ABC Radio Sales was formed in June 1998 exclusively for the ABC O&O stations.
| Read more here |

CCU battling goes on
Clear Channel Communications has told a federal court that an attempt by a group of banks to move their legal wrangling to federal jurisdiction is improper and that the case should be remanded to the Texas state courts. Clear Channel charges that the banks are just trying to delay the case and cause the pending buyout to fall apart. "Defendants have made clear that they are determined, by any means possible, to destroy the Merger and thus avoid their obligation to fund CC Media's acquisition as they are required to do. Defendants have put forth great effort to deprive Plaintiffs of their vested contractual rights under the Merger Agreement, which the Defendants know must close no later than June 12, 2008," Clear Channel said in its filing with the federal court. It charged that by trying to move the case to federal court, the banks are trying to avoid the Texas court hearing set for April 8th and to draw out the legal battle so that the deal will collapse before any court has an opportunity to rule on the merits.

RBR observation: As you'd expect for a legal battle involving 26 billion bucks, the jurisdictional battle is complicated. The banks claim that since Thomas H. Lee Partners and Bain Capital are bound by agreements electing New York state courts to settle disputes, CC Media, the company by which they are to buy Clear Channel, is also bound. Poppycock, say Clear Channel and CC Media. CC Media itself is not bound by those agreements and it chose to join Clear Channel in the Texas lawsuit, where a judge has already ordered the banks not to interfere with the closing and set a hearing for April 8th. TH Lee and Bain, but not CC Media, have filed a separate lawsuit against the banks in New York. The banks claim the whole thing creates multiple state jurisdictions and the dispute should move to federal court. Clear Channel and CC Media say there is no dispute over jurisdiction and the federal court should steer clear and kick the case back to Texas. We await a ruling.

www.goviero.com

DOJ to get tough on antitrust?
Despite the fact that it just ushered XM/Sirius one step closer to the altar in their 5B attempt to exchange wedding vows, the Department of Justice is signaling that it is about to get tough on mergers with antitrust implications. According to the Associated Press, top DOJ antitrust official Thomas Barnett has pledged to pursue aggressive enforcement where it is appropriate. The vow comes on the heels of analyst suggestions that dicey mergers get their act together fast in order to take advantage of sleepy antitrust watchdogs that may well be out of work once a new administration replaces officials put in place by the Bush administration. Both DOJ and FTC officials are saying that this is not necessarily good advice, and that they will be fully on the job.

RBR observation: It took over a year, but when the decision finally came down, it was apparent that DOJ must have simply been having trouble getting the red carpet dry cleaned, because it didn't append condition one to the XM/Sirius merger blessing. No "We promise to honor and obey our customers by giving them the same quality programming at the same low price, until the end of the subscription term or five years do us part" or anything. So it's good to know they finally located the antitrust goalie gear and are going to begin enforcing the law before returning to the private sector -- if in fact it's anything more than lip service.

Gore putting green
into green campaign

Former VP Al Gore (D-TN) thinks he's gone about as far as he can educating citizens about the looming environmental dangers we are facing. He thinks the next step is to inspire the public to force politicians to act. To that end, he is kicking off a 300M three-year campaign to start capping greenhouse gas emissions. The campaign will be run under the auspices of the Alliance for Climate Protection, and the first ad will debut on the 4/2/08 edition of "American Idol." The campaign is being funded by private donations, and Gore himself is kicking in the proceeds from his Oscar-winning documentary "An Inconvenient Truth," and his Nobel Prize winnings. The campaign will start off putting together unlikely pairings, such as kick-off couple Pat Robertson and Al Sharpton, and later, Nancy Pelosi (D-CA) and Newt Gingrich (R-GA), all of whom happen to agree that taking steps to reduce global warming are important.

RBR observation: This is the type of issue advertising that can run pretty much any old time, regardless of the proximity to a primary or general election day. Before "Wisconsin Right to Life," the copy would have had to avoid linking the environmental issue to a federal candidate up for re-election; now, such linkages are seemingly A-OK as long as the main thrust of the ad is on the issue, not the candidate.

Broadcasters urge end to ad dictates
The NAB, RAB and TVB have joined forces in opposition to 'urban dictates,' an ad practice in which companies refuse to place ads on radio and television stations with formats that attract African-American, Latino and Spanish-speaking audiences. The letter, sent to roughly 4,200 agencies, was signed by David Rehr, NAB CEO; Jeff Haley, RAB President; and Chris Rohrs, TVB CEO. "Although it has not been the subject of an empirical study, there is significant anecdotal evidence of 'dictates' or policies against the purchase of advertising time on stations with formats that attract African-American, Latino and Spanish-speaking audiences. Under these policies, regardless of whether a station or its sales representative could show that the station's viewers or listeners met the target criteria that the advertiser sought, the advertiser or its agency refuses to buy time," the broadcast leaders wrote. "Discrimination against broadcasters based on racial, gender or ethnic stereotyping has no place in today's media marketplace."

Hip Cricket


Localism
Boise is Local
RBR's consistent call for station promotions demonstrating the value of local radio, Peak Broadcasting's 103.3 Kiss Fm Radio is going for a record. Afternoon host and program director KeKe Luv (Steve Kicklighter) will broadcast for 175 consecutive hours (7 days) without sleep to mark April as child abuse prevention month while raising money and awareness for this significant local cause. Ms. Sunny Reed, Executive Director of Idaho's Heart said "The Safe Haven Crisis Nursery is modeled after very successful programs offered in many different states. By supporting parents in any type of crisis we can prevent our children from being harmed. The most important part of starting this nursery and preventing child abuse in general is getting the word out to the concerned public about abuse and how it can be stopped. We are very pleased to be teaming up with 103.3 KISS FM and KeKe Luv to bring awareness to such a serious public issue"

RBR observation: Congratulations to Peak Broadcasting's Sr. VP Kevin Godwin and his entire staff for doing not just talking. For a listen to the 103.3 Kiss Fm Radio on-air promotion go to RBR.com Media Center.


Ad Business Report TM

Project Reinvention to activate radio side by end of year
After reading our story yesterday on "Project Reinvention" Kathy Crawford, MindShare President/Local Broadcast, addressed our call for radio to join the committee, which aims to cut down on the labor intention that broadcast has now gotten us to. It will create more efficient buying, and buying on the new digital multicast channels for radio and TV without hiring more staff (3/31/08 RBR #63). Crawford tells us the radio function of the committee will be activated, as soon as the TV objectives are completed. RAB CEO Jeff Haley, on the committee already, will be participating when it is radio's turn, along other with yet-unnamed radio execs. Why TV first? "Because television is a little more complicated than radio is," said Crawford. "It's hard to tell when radio will be a part of this, but I would love to start it before the end of the year, but it may be that we can't get that started until afterwards. The other issue with radio is that I can download the exact times from the stations, but I don't have PPM data in as many markets as I have Nielsen's LPM data. So we need to move in that direction, right alongside of LPM. I'm going to talk to Arbitron in the next few weeks about what their new rollout schedule is."


NAB Daytime Planner
NAB Show - Las Vegas
The following will be attending the NAB. Call or email to make your appointment in advance.

BROKERS
John Pierce & Company LLC;
John L. Pierce, Jamie Rasnick;
office 859-647-0101, John cell 859-512-3015; Jamie cell 513-252-1186, Bellagio Hotel; [email protected]; [email protected]

Serafin Bros., Inc.; Glenn Serafin;
office 813-885-6060; cell 813-494-6875;
Planet Hollywood (formerly the Aladdin) Hotel; [email protected]

Kozacko Media Services;
Dick Kozacko, George Kimble;

office 607-733-7138; Dick cell - 607-738-1219; George cell - 520-465-4302
; Bellagio Hotel; [email protected], [email protected]

Frank Boyle & Co; Frank Boyle,
office 203-377-3030;
Frank cell 203-249-07818;
Rio Suites Hotel;
[email protected]

Schutz & Company;
Bill Schutz; Bellagio Hotel;
office 757-258-8740,
Bill cell 757-880-9251;
[email protected]

BROKERS
Patrick Communications;
Larry Patrick, Managing Partner;
Susan Patrick, Managing Partner;
Greg Guy, Managing Partner;
Todd Wirth, Director;
office: 410-799-1740;
Larry cell 410-707-4602 Bellagio Hotel; [email protected], [email protected]; [email protected]

CONSULTING ENGINEERS
Cavell Mertz & Associates, Inc.;
Gary Cavell, Richard Mertz, Dan Ryson; Main Office 703-392-9090;
[email protected]

BANKERS
Dover Capital Partners, LLC
Kirk Warshaw, General Partner
Peter Ottmar, General Partner
Office: 401/723-1063, x109
Peter's Cell: 401/639-4958
Bellagio Hotel; [email protected];
[email protected]


| Bankers | Brokers | Legal |
| Traffic Systems | Consulting Eng. |
Contact [email protected] to get your company listed today.
www.bia.com

Media Business Report TM
US ad spend rose 0.6% in 2007
The Nielsen Company reported that ad spend for FY 2007 rose 0.6% compared to full year 2006, with Internet continuing to demonstrate the strongest performance (+18.9%) of any media category. According to preliminary figures from Nielsen Monitor-Plus, ad spend was mixed across media with gains in some categories and declines in others. In addition to Internet advertising, other media categories that showed an increase in 2007 were National Magazines (7.6%), Outdoor (7.2%), National Sunday Supplements (4.9%), National Cable TV (2.2%), and Spanish-Language TV (1.5%). "Several traditional media outlets are demonstrating resilience and strong growth in an overall softening economy, with Outdoor continuing a five-year steady climb in advertising spending," said Annie Touliatos, Director, Product Development and Marketing, Nielsen Monitor-Plus. U.S. advertising growth was substantially lower than other regions of the globe, with Asia-Pacific reporting a 12.1% increase and EMEA (Europe, Middle East, and Africa) up nearly 5%. Specifically, Newspapers have shown a steady decline year-over-year in the U.S., while all other countries measured by The Nielsen Company reported growth for this media category.

Newspapers suffer worst year ever
As far back as the Newspaper Association of America (NAA) has records, 57 years, there had never been a one-year drop in US newspaper revenues as the 9.4% decline recorded for 2007. While 45.4 billion bucks may sound like a lot of money, newspaper revenues haven't been below that since 2003, the year before the fast-growing online component was added to the total. Print-only revenues of 42.2 million were back to levels last seen in 1997. Classified suffered the worst fall in 2007, down 16.5% to 14.19 billion. National was down 6.7% to 7.0 billion and retail fell 5% to 21.0 billion. The only up category was online, gaining 18.8% to 3.17 billion.

RBR observation: It is a painful transition. Those classified dollars are never coming back. Newspapers are claiming some of those revenues online, but they have lots of new competitors - not to mention freebie sites like Craigslist. The annual revenue announcement from NAA emphasized the online jump of nearly 19%. However, the revenues there are still small compared to the decline in traditional business.


Media Markets & Money TM
Buyers found for SLC noncom combo
Community Wireless of Park City announced its intention to go from three to one radio stations in Salt Lake City back in February, and put KCPW AM & FM on the block. It has now announced buyers for both, with a back-up buyer already in place for the FM. Locally-based Wasatch Media Inc. will get the FM for 2.4M, as long as it can show it has necessary financing in place within a certain timeframe. This would keep an NPR-based format on the station. If the money isn't there, California-based Educational Media Foundation will step in as the buyer. The AM is going to IHR Educational Broadcasting for 1.3M.

Close encounters in AL, TN
Davidson Media has completed its sale of WRLM-AM Birmingham AL, sending it to Queen of Heaven Radio for 575K. And over in Sevierville TN, the sale of WSEV-AM from East Tennessee Radio Group to 127 Inc. for 212.5K has also arrived at the finish line. American Media Services-Brokerage handled both deals.

www.bcfm.com


Washington Business Report TM
Like white on ice?
If it can't be tested successfully, should it nevertheless be unleashed license-free into the wide open market? That's what the NAB is wondering after yet another test of a potential unlicensed device was halted when the device unexpectedly froze. Microsoft put out a release about a device it was testing, with this extraordinary admission: "The Microsoft device has been delivering meaningful results over several weeks but unexpectedly shut down on March 26." Microsoft expressed its hopes that the FCC itself would continue research into how to make the technology work, saying, "The FCC has tremendous technical expertise and will continue to rely on its own substantive knowledge." NAB Executive Vice President Dennis Wharton, noting that this is Microsoft's third such failure, said, "In baseball, it's three strikes and you're out," said Wharton. "How many strikes does Microsoft get? If they can't get the device to work in the lab, how are they going to get it to work in the real world?"

RBR observation: Perhaps we're oversimplifying, but isn't Microsoft's whine kind of like saying "Hey, I have this great idea for a perpetual motion device, and the Patent Office has tremendous technical expertise -- perhaps they can help me get it to work!" The good news is that it further reduces the odds that some technophiliac bureaucrat will unleash these devices before we've even gotten around to debugging the DTV transition.


Internet Business Report TM
WIBC-FM launches free real-time video traffic for mobiles
Indy's News Center WIBC-FM is launching Cell Cam Traffic, a free mobile traffic service for Indianapolis-area commuters that will help local drivers spot and avoid highway tie-ups with streaming live video right to their mobile phones. The new ad-supported service targets the thousands of daily commuters in the region. Commuters will now be able to view traffic congestion on their mobile devices before leaving their home, office or school, to help them plan the quickest and safest route. The service relies on 56 traffic cameras operated by the Indiana Department of Transportation (INDOT) and is part of the Intelligent Transportation System. Cameras are mounted along roadways in the WIBC-FM listening area. 3rd Dimension Inc., a New York-based mobile marketing and application company, developed and operates the system. Once the application is downloaded to their cell phones, drivers can choose to view live traffic images from any of the cameras along their route and can even program shortcuts for quick access to their favorite shots.


Ratings & Research
Online consumers call for
transparency in environmental strategy

Nielsen Online released findings from its "Sustainability through the Eyes and Megaphones of the Blogosphere" report, which examined consumer attitudes about personal and corporate responsibility towards the environment. Protecting the environment has become increasingly important to consumers, with online buzz around sustainability growing 50% in 2007. While early in the year discussion was dominated by the topic of global warming, bloggers progressively addressed a wider variety of green-related issues, with a particular emphasis on personal action such as recycling, avoiding excess packaging, and carpooling. Discovery Channel's TreeHugger led the top sustainability blogs for 2007, with 4,612 messages related specifically to sustainability. Worldchanging and Biopact took the No. 2 and 3 spots, with 738 and 722 sustainability messages, respectively.

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Transactions
70K KIOX-FM Edna TX from The Kalil Holding Group LLC (Frank Kalil) to Buckalew Media Inc. (Robert Garcia-Buckalew, Amanda Buckalew). 35K escrow, balance in cash at closing. Combo with KULP-AM El Campo TX. [File date 2/28/08.]


Stock Talk
Encouragement from Purchasing Managers
The Chicago Purchasing Managers Index isn't normally a big deal, but it was the only economic report that Wall Street had to look at yesterday and it was favorable, so stock prices rose in light volume on the last day of Q1. The Dow Industrials gained 47 points, or 0.4%, to 12,263.

Radio stocks missed out. The RBR Radio Index was down 1.508, or 1.8%, to 85.312. Beasley plunged 28.8% with no news to account for the move. The drop all came in the last half hour of trading. Saga was down 7.9%.


Radio Stocks

Here's how stocks fared on Monday

Company Symbol Close Change Company Symbol Close Change

Arbitron*

ARB

43.17

+0.62

Google

GOOG

440.47

+2.39

Beasley*

BBGI

3.56

-1.44

Hearst-Argyle

HTV

20.63

+0.15

CBS CI. B CBS

22.08

+0.14

Journal Comm.

JRN

7.38

-0.03

CBS CI. A CBSa

22.10

+0.16

Lincoln Natl.

LNC

52.00

+1.00

Citadel* CDL
1.66 +0.11

Radio One, Cl. A

ROIA

1.52

-0.06

Clear Channel*

CCU

29.22

+0.02

Radio One, Cl. D*

ROIAK

1.52

-0.07

Cox Radio*

CXR

11.90

-0.12

Regent*

RGCI

1.25

+0.15

Cumulus*

CMLS

6.38

+0.17

Saga Commun.*

SGA

5.60

-0.48

Debut Bcg.

DBTB

1.05

unch

Salem Comm.*

SALM

4.01

-0.17

Disney

DIS

31.38

+0.38

Sirius Sat. Radio

SIRI

2.86

+0.06

Emmis*

EMMS

3.48

-0.04

Spanish Bcg.*

SBSA

1.77

-0.10

Entercom*

ETM

9.93

+0.23

Westwood One*

WON

2.10

+0.02

Entravision

EVC

6.66

+0.21

XM Sat. Radio

XMSR

11.62

-0.01

Fisher

FSCI

31.16

+0.60

-

-

-

-

-

*Component of the RBR Radio Index


Bounceback

Send Us Your OpinionsWe want to
hear from you.

This is your column, so send your comments and
a photo to [email protected]

Just let us be local
Been in the business building, owning, operating television and radio stations for 40 years. Every other administration has had a problem with proving localism. We have proven we do it for 40 years that I know of and they keep asking. Stupid and a waste of time. You cannot really be a station if you don't provide local everything. News, Public Service and caring about your viewers and listeners. How many times do we have to tell the government what we do. I have sponsored as many charity events that I could. Provided the best local news and we hardly ever started with bad news; rapes, murders etc. Started with good news. Doesn't everyone know by now that bad news brings bad actions and good news brings good actions. We were still number one.

Debbie Varecha
Varecha Broadcasting
KRYD-FM 104.9 & 92.7
Grand Junction, CO

www.interep.com


Below the Fold
Ad Business Report
Project Reinvention
To activate radio side by end of year...

Media Business Report
US ad spend rose
0.6% in 2007, Internet ads, other media categories that showed an increase were...

Media Markets & Money
Buyers found for
SLC noncom combo and Close encounters in AL, TN...

Ratings & Research
Online consumers call for
Transparency in environmental strategy...

Dload - Powering Interactive Marketing


www.patcomm.com

Stations for Sale

Market your Stations For Sale
in our daily epapers.

Contact
Jim Carnegie
[email protected]

Northern California
FM Group

* Highly Desirable Market
* Excellent Signals
* Seller Financing Available

The Exline Company
Andy McClure
Erick Steinberg
415-479-3484
[email protected]


the Hot List on...

www.eastlanratings.com

More News Headlines

NAB Board
election results
William McElveen, John Beck, Eric Brown and Ben Downs are newly elected members of the NAB Radio Board under voting results announced yesterday. Joe Bilotta, Joel Oxley, Bob Holladay, Rick Cummings, Mary Quass, Ron Davis, Paul Gardner and Howard Anderson were re-elected.

Correction:
"60," not "60%"
We incorrectly labeled data in a quote from consultant Randy Kabrich in yesterday's story about Arbitron's February PPM update (3-31-08 RBR #63). Instead of "60% daily in-tab," it should read "60 Daily in-tab." Here's part of Randy's corrected quote: "If you go back to February 1st of last year and you go 56 weeks into this, it's only up to 60 daily in-tab and that is all Urban and Hispanic. In fact, the Anglos and others in the markets have actually decreased by another 60 daily in-tab along the way. The Black DDI, which [they] are touting as their magic formula is averaging as high as over 130 the second week in February and averaged 125-it was 25% oversampled!."


www.mediaservicesgroup.com

RBR Radar 2008
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Closing table was set,
but banks didn't show
Despite some disagreements with the banks over exactly what the terms of their loans would be, Clear Channel Communications says in an SEC filing that it was set to go to closing on its 26.7 billion bucks buyout last Thursday, as were the would-be buyers, Thomas H. Lee Partners and Bain Capital, but that the banks were a no show.

RBR observation: We will be very surprised if this is resolved quickly. After 16 months of preparation to take the company private, Clear Channel is now in a state of limbo. Read what Clear Channel told the SEC about the failed closing
03/31/08 RBR #63

Unclear closure
Clear Channel has issued a statement reiterating its desire to bring its 26.7B privatization deal to a satisfactory conclusion. However, the latest in a long series of hurdles -- a platoon of skittish bankers -- has shed new doubt on the transaction, and Clear Channel admitted that it cannot say when, or even if, the deal will close.

RBR observation: The more skittish the legal department, the more inclusive the forward looking statement clauses may be in company releases. Perhaps this is a reason: The per-share offer to take the company private in 39.20; as of 3:30PM EDT, the most recent sale on the NYSE was for 28.26. Ten reasons the Clear Channel deal may fail to close
03/31/08 RBR #63

Radio take note! A course well charted in rough seas
The TVB last week was better than ever, with presentation after panel session focusing on how to make more money, more efficiently in this digital age. As we mention in the related story below, non-profit TVB is dedicated to solving industry problems before they get cumbersome-ePort is but one shining example.
03/31/08 TVBR #63

NAB has a new suit of disclose
Broadcasters have been extremely leery of the new enhanced disclosure rules that the FCC has been intent on installing as a measure to promote localism. The NAB has decided to take it a step beyond protesting the rules to the FCC -- it's taking its case to the DC Circuit.

RBR observation: The big question is what the FCC would do with the massive pile of data it is seeking to collect once it has it in house. There's going to be a channel that syndicates home shopping fare generated from a distant location, without a single iota of local programming. Read more Observation in RBR
03/31/08 RBR #63


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