Volume 21, Issue 71, Jim Carnegie, Editor & Publisher
Monday Morning April 12th, 2004

Radio News ®

Infinity in the FCC's crosshairs
Now that the FCC has fined Clear Channel $495,000 for a "Howard Stern Show" broadcast from last year, the Commission is turning its sights to the company that actually originates and syndicates the Stern show - - Viacom's Infinity. It wants to know whether the 18 Infinity stations that carry the Stern show broadcast the April 9, 2003 show - - which they almost certainly did. At three violations per station times $27,500, that works out to a likely fine of $1,485,000. RBR observation: It's open season on broadcasters. The FCC has thrown away the rule book and is firing wildly. As erratic and unpredictable as the FCC's indecency enforcement was before, it's just gotten much worse. Basically, the Commissioners have served notice that anything broadcast which deals with sexual or excretory matters in any way, shape or form can be hit with an indecency fine. Your station could be next - - and you are guilty until proven innocent. Oh, and don't bother to try to prove that you're innocent. You're still guilty. This is about politics, not the law. | Full Story Click Here | RBR Observation |

Clear Channel dumps "The Regular Guys"
You had to see this coming. With its growing tally of indecency fines, Clear Channel has made its suspension of "The Regular Guys" morning show from WKLS-FM Atlanta permanent. The duo - - Larry Wachs and Eric Von Haessler - - had been off the air since an open mic put raw comments on the air last month. RBR observation: Clear Channel management made the right call on this one. Rather than comply with the company's stated policy, The Regular Guys were trying to get around it. That made them a risk to their employer. Indeed, even if their scheme had gone as planned, it would still have likely violated both Clear Channel's policy and the law against broadcast indecency. As it turned out though, there was absolutely no doubt that what was broadcast was indecent. | Full Story Click Here |

The big V doesn't stand
for Victory For Free CBS-TV and Affiliates
V is Victoria and S is Secrets (VS) and Ed Razek, chief creative officer says No Way to another Fall Fashion Show with Free CBS-TV network and the affiliates. The reason given by Victoria Secret is to protect their $4 Billion empire's image and stays clear of any indecent programming hassles especially all political types and the FCC Commissioners. VS moved this Fall Show two years ago from ABC to CBS which has had it in their November line-up. The production costs last Fall were to the tune of $7 Million. So now where is the ROI with this hype and how do the affiliates make up the lost revenue? RBR observation: The Winner will be Viacom if they can move the programming into one of their cable assets like Showtime. Viacom boss Mel "Zen Master" Karmazin will shake off any back lash if it occurs, as it has, since he is on the record saying, "If advertisers are going to shift some dollars into some other silos, that's good for Viacom because we have businesses in all those other silos." The statement was made before VS said no go late Friday, 04/09/04, to another Fall runway strut . Think it was a surprise from the Easter Bunny. Big Loser(s): Lost is the hype and the press leading up to the event, loss is the marketing and promotion for the local CBS affiliates and their 4th quarter revenues. If the local CBS - GM had this slotted in the budget, including CBS's O&O's, Local Free TV you lose. CBS photo
| Full Story Click Here
| RBR Observation |


People Meter ads a worry for COLRAM/COLTAM
Nothing worries researchers more than having publicity screw up research results. Therefore, the NAB's committees on audience ratings are duly worried about the radio and newspaper ads which ran in New York to protest Nielsen's now-postponed debut of Local People Meter ratings.
RBR observation: The problem, of course, is that the groups who ran the ads against Nielsen's Local People Meters were neither broadcasters, NAB members nor Nielsen subscribers. Somehow, we doubt that they care whether COLRAM/COLTAM approve of their methods. The data in their ads obviously came from a broadcaster, but then the last time we checked News Corporation wasn't an NAB member either.
| Full Story Click Here
|

First time buyers: You're on your own, Part 2
Brokers tell us that as difficult as it is to find financing for first time station buyers, it is all but impossible to finance standalone radio stations. Everybody wants a cluster strategy. "If he's a first time buyer that has experience, there's probably something out there. But there's just no money that I can find for anybody to buy anything other than a cluster of some sort," said Ted Hepburn, President of The Ted Hepburn Company. That, however, rules out standalones, which is where first time buyers tended to start in the past. So, we asked, there are no opportunities for just a couple of million dollars?
| Full Story Click Here
|

Lawyer challenges the FCC's Bono ruling
Never let it be said that David Tillotson doesn't like a good fight. He was the communications lawyer who defended WBAI-FM New York's broadcast of George Carlin's seven dirty words at the Supreme Court and now he's challenging the Commission's recent ruling that Bono's utterance on NBC was indecent.
RBR observation: Don't look for the FCC to reverse course yet again, based on Tillotson's petition. It is, however, a pretty good roadmap for the court battle that's sure to come some day on this issue. | Full Story Click Here |


Adbiz ©

MLB drops idea of ads on uniforms
The NY Post reports a proposal to allow advertising on Major League Baseball uniforms has been quashed by the baseball commissioner, Sen. Chuck Schumer (D-NY) said after he himself had complained about the idea, along with others. MLB Commissioner Bud Selig promised that "he was not going to allow it to happen," Schumer said. The Yankees' recent trip to Japan was sponsored by Ricoh, and its company logo appeared on patches on players' arms, as well as on their batting helmets. Last week, an MLB official said it was possible a similar arrangement could happen in the US.

JWT launches "Amplify"
J. Walter Thompson announced the formation of an expanded brand entertainment content development and placement practice in the US. A newly created unit called "Amplify" is the result of a merger of JWT's Brand Entertainment Group and Hill & Knowlton's "Showcase," specialists in product placement. | Full Story Click Here |

Hershey taps Thalia
The NY Times reports Hershey foods will soon blanket Spanish-language media with ads for its chocolates and candies, becoming the latest big marketer to try spreading its reach in the fast-growing Hispanic market. The candies advertised will be backed by a powerful celebrity endorser: Thalia Sodi, the Latina pop idol known as "Thalia." Later this year, new versions of Hershey chocolates will even be co-branded with her name. "This is our first comprehensive integrated marketing effort tailored to the Hispanic consumer," Thomas Hernquist, Hershey SVP/Chief Marketing Officer.

Qwest launches national effort
Qwest Communications announced the launch of a new national campaign in support of the company's recently released product iQ Networking-a customer-oriented solution to wide area networking (WAN) services. The new ads, targeted to enterprise and government customers, recently began running in leading business and high-tech trade publications and online media. The iQ Networking advertising campaign is based on the theme, "Solutions That Are Out of the Box. Not Off the Shelf." The ads focus on the "technology recommenders," or those within businesses who decide how their company will integrate technology solutions. The campaign is running in magazines and online media. Online includes banner ads, technology content and resources for IT executive decision-makers and webcasts.


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Washington Beat

FCC holding open meeting on IBOC interference
The Commission is holding an open meeting 4/15 with the Office of Engineering and Technology on "Digital Audio Broadcasting Systems and Their Impact on the Terrestrial Radio Broadcast Service." The Commission will consider a Further NPRM concerning rule changes for stations that broadcast IBOC/HD Radio signals. The issue at hand is for each station that adds an HD Radio system (both AM and FM), two frequencies in the market are obliterated by digital signals-the first adjacent on either side of the analog. In many areas, those digital signals could interfere with adjacent market stations or smaller, class A stations that are in the area/region. Is this a threat to HD radio's rollout? Here's what one source told us who works in the HD Radio field: "We know a little bit about it. I think it is generally going to be good news-it's just the next step in the whole IBOC rulemaking. I think they're going to try and push the process forward. We think it's great news that they're moving so quickly."


Sales

From RBR's Print Edition:
What success has your station(s) had in going directly to the agencies and clients to get on regional or national buys?
Says Blaise Howard, WEAZ-FM Radio's WBEB-FM Philadelphia:
"We've had a lot of success. We have a director of national sales,
Dave Giordano. And David is required to be in NY, because NY is the mecca for Philadelphia national business. And he's making calls every week in NY. He's up there every week for a day and a half, seeing agencies, having lunches, dinners and calling on them for regional and national business. He makes calls with our rep firm and without our rep firm. And as a matter of fact, I'm going up to have dinner with one of the big agency people up in NY just to thank them for the business. | Full Story Click Here |


Programming

Air America radio scores two Bay Area affiliates
The San Jose Business Journal reports Air America Radio will be broadcast in the Bay Area on two stations so both their signals cover more of the whole market. The net will air on Inner City's KVTO-AM San Francisco and KVVN-AM San Jose sometime in April. Because KVTO has only a 1,000-watt transmitter, it can only cover San Francisco, San Mateo and East Bay communities such as Berkeley, Oakland and Concord. KVVN's signal will cover San Jose, Santa Clara and Santa Cruz.

AAA "The Peak" launches in NYC metro
Pamal Broadcasting launched its new AAA WXPK-FM Westchester-NYC "The Peak" last week. The station will serve the greater northern New York metropolitan area. "The Peak is a diversified, non traditional, great sounding Rock Radio station," stated Fred Bennett, VP/Market Manager for Pamal. "We are thrilled to offer our listeners and advertisers something dynamic and new." "The Peak" defines "World Class Rock" by the depth of song selections from both classic and new artists. Some artists include: The Dave Matthews Band, U2, Bruce Springsteen, Bonnie Raitt, The Rolling Stones, Cold Play, Tom Petty, REM, Sting and more.


Ratings & Research

Bridge ratings announces new qualitative product
Bridge Ratings President, Dave Van Dyke announced the debut of "Insta-Q Instant Qualitative." The product provides stations with immediate qualitative data which is advertiser specific. Bridge Ratings collects spending history and intention within an advertiser's target demographic and geography and then measures radio listening for that sample base for the market by daypart. "We've had tremendous positive interaction with the industry during our first three months." explains Van Dyke. "And alongside interest for our highly accurate and affordable audience measurement product, more frequent, timely and customizable qualitative information is being demanded by the industry in markets of all sizes." Van Dyke also claims Insta-Q allows stations to customize quick qualitative studies timed to immediate sales needs rather than depending on generalized market information that's months old.


Monday Morning Shakers & Makers

Deals: 3/8/04-3/12/04
This was a fairly active week in terms of deals, with 19. That's the highest total yet for 2004. What was unusual was the fact that all but two of them were for single stations. The $48.5M total pricetag is middle of the pack since we began tracking this after the August deal-making freeze was lifted by the FCC.

3/8/04-3/12/04

Total

Total Deals

19

AMs

7

FMs

15

TVs

2
Value
$48,595,010
For Complete Charts, Click Here |

Radio Deal of the Week
Go west, young chester? More for Morrell
| Full Story Click Here
|
TV Deal of the Week
Booking this deal closes a Chapter
| Full Story Click Here
|

Transactions

$9,000,000 WNSA-FM Buffalo-Niagara Falls (Wethersfield NY) from Adelphia Communications Corporation to Entercom Communications Corp.

$35,000 WJTA-FM Kosciusko MS from Kosciusko Educational Broadcasting Foundation to American Family Association.

N/A KXTK-AM San Luis Obispo (Arroyo Grande CA), AM CP Bend OR, AM CP Burbank WA from Pamplin Broadcasting Inc. Jerry J. Collins.

| Full Details Click Here
|


Stock Talk


US stock markets were closed Friday in observance of Good Friday.


Radio Stocks

Here's how stocks fared on Thursday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

$40.30

-$0.10

Jeff-Pilot

JP

$55.75

+$0.02

Beasley

BBGI

$17.45

+$0.11

Journal Comm.

JRN

$19.08

-$0.05

Citadel CDL $18.25 +$0.25

Radio One, Cl. A

ROIA

$19.02

-$0.04

Clear Channel

CCU

$42.91

-$0.26

Radio One, Cl. D

ROIAK

$19.07

-$0.05

Cox Radio

CXR

$22.00

+$0.06

Regent

RGCI

$6.85

-$0.07

Cumulus

CMLS

$20.76

-$0.09

Saga Commun.

SGA

$19.55

-$0.36

Disney

DIS

$26.25

+$0.24

Salem Comm.

SALM

$28.66

-$0.51

Emmis

EMMS

$23.86

-$0.23

Sirius Sat. Radio

SIRI

$3.84

-$0.18

Entercom

ETM

$46.70

+$0.69

Spanish Bcg.

SBSA

$10.25

-$0.26

Entravision

EVC

$9.42

+$0.13

Univision

UVN

$34.02

+$0.37

Fisher

FSCI

$51.00

+$0.25

Viacom, Cl. A

VIA

$40.82

+$0.22

Gaylord

GET

$30.60

+$0.21

Viacom, Cl. B

VIAb

$40.65

+$0.36

Hearst-Argyle

HTV

$27.40

+$0.19

Westwood One

WON

$32.05

+$0.34

Interep

IREP

$2.21

+$0.11

XM Sat. Radio

XMSR

$29.60

-$0.26

International Bcg.

IBCS

$0.03

unch

-

-

-

-


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Bounceback

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

Noting our current series on the climate for first time station buyers, this group owner offers some advice from his own first time, which laid the foundation for the group of stations he owns today.

My own experience involved finding two investors ready to put up the money and allow me to earn sweat equity. I think that is the route to go in today's economy...
| Full Response Click Here
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Upped & Tapped

FastChannel names Dean McCausland CFO
FastChannel Network announced the appointment of Dean McCausland to the position of CFOr, effective immediately. McCausland brings to FastChannel eighteen years of financial experience in the consulting and technology sectors. Most recently, he was CFO at Boston-based The Yankee Group, a communications and networking researcher for the media and technology sectors.


More News Headlines



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]

Elliot Evers, 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]

Todd Fowler, American Media Services, Bellagio, 843-972-2200, [email protected]

Tom Gammon, Americom, Bellagio, cell 202-255-7776, [email protected]

Ron Kempff, Kempff Communications Company, MGM Grand, 813-258-3433, cell 813-220-1020, [email protected]

Robert O. Mahlman, Robert W. Mahlman, The Mahlman Company, Monte Carlo, 941-342-6411, [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.

Accountability 2004: The History of Radio Ratings, Part 13 --Accountability: Wrap up
RBR Observation: There is no one methodology in use today that's markedly better than any other. And that means that none is dramatically inferior to any other. Each methodology turns out audience measurement statistics that vary, sometimes considerably, from another's. It can't be helped - - that's what makes statistics so fascinating to analysts and so frustrating to radio managers and programmers.
04/09/04 RBR #70

Clear Channel fined $495K;
Stern gone for good
Hitting Clear Channel with another round of $495,000 in fines for a Stern show that aired April 9-03. At the same time, the FCC affirmed a $14,000 fine it issued to Emmis two years ago for a Mancow broadcast on WKQX-FM Chicago. TVBR observation: What's really needed is court action to clean up the enforcement mess that the FCC has created, but that's unlikely. As we've repeatedly noted, no US Attorney anywhere in the United States has been willing to take an FCC indecency case to court for nearly three decades.
04/09/04 RBR #70

First time buyers:
You're on your own, Part 1
We knew the situation was bad, but it turned out to be even worse than expected. Editor's note: Now pay close attention during this series because it's a hole in the donut. 04/09/04 RBR #70

Accountability 2004: The History of Radio Ratings, Part 12
Pros and cons of PPM
Pros: Much more precise measurement of listening - - removes the human factor. Capable of producing radio/TV/cable audience reports. Less hassle for the respondent than having to fill out a diary, which may lead to greater cooperation and response. Cons: Very expensive to implement: reports have placed the price for the PPM/base/charger combination at more than $250 each; that price should come down in time. Broadcasters have voiced objections they're right to do so, as the PPM will cost a lot to implement and we all know who will end up paying that cost. 04/08/09 RBR #69

Basic errors drawing FCC fines
Clean up your act on the Public File
RBR has reported on three cases where broadcasters drew fines from the FCC which were easily avoided - - fines for failing to do the basic housekeeping chores that go along with being a licensee. Those fines included failing to perform routine EAS tests. RBR observation: Read this as save your bacon and get in order. 04/08/09 RBR #69

Accountability 2004: The History
of Radio Ratings, Part 11

Portable People Meter
This is Arbitron's most extensive attempt to develop a replacement for the personal diary. Still under long-term testing, the PPM hints at the promise of measurement techniques to come. In reality, the technique is rather simple.
Editor's note: But fights continue between broadcaster and Arbitron. The PPM is also capable of measuring TV viewing and, down the road, may allow measurement of exposure to individual ads. As a result, Arbitron has been holding talks with Nielsen about joint use of the PPM as a measurement tool. 04/07/04 RBR #68

Broadcast boon in the
battleground states?
The 2004 election cycle begins hot, heavy and early. However, that is no guarantee that your station will reap any benefit. As in most businesses, the key to collecting political ad dollars is location, location, location. RBR observation: The battlegrounds are the states and the money follows as the charts inside charts the color of money. The states where Campaign 2004 is essentially being fought, and therefore these are the states which stand to benefit from a political ad windfall. Number one - California and yes the Da state - Florida. Recommendation: Plan your inventory now. 04/05/04 RBR #66


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