RBR's Daily Morning Epaper

Volume 23, Issue 71, Jim Carnegie, Editor & Publisher

Tuesday Morning April 11th, 2006

Radio News ®

Retailers debut
HD Radio campaigns
Three major retailers now plan to offer HD Digital Radios in their stores nationwide beginning this month and announced major marketing and education campaigns to support new customers. Tweeter, Crutchfield and ABC Warehouse/Detroit rolling out in-store and online education to assist customers, comprehensive staff training, in-store and point-of-purchase marketing, Spanish-language versions of marketing and advertising, and customized commercials running on some 260+ Alliance member radio stations. The commercials started today and a sampling of the ads can be heard online. The moves coincide with the second wave of the HD Digital Radio Alliance's 200 million bucks, on-air campaign. This second wave of commercials will prominently feature ABC Warehouse, Tweeter and Crutchfield.com; each of these retailers is running HD Digital Radio commercials. Tweeter will be carrying HD Digital Radios in all of its markets, supported by online information for consumers, in-store signage and point-of-purchase displays and special training for salespeople. The retailer will also launch an advertising campaign featuring a Tweeter spokesperson to raise awareness among consumers. Crutchfield will be expanding its commitment with a wide variety of models, as well as online consumer information, dedicated assistance for Spanish- language customers and extensive salesperson training. A flight of ads is already running with new spots started yesterday. ABC Warehouse Detroit will offer HD radio products in multiple markets, on-line information, store listening stations and customized ads running in the Detroit market.

Spitzer stifling playlists
New York Attorney General Eliot Spitzer claims his campaign against so-called "corporate payola" is aimed at getting a wider variety of artists played on radio stations, but the Los Angeles Times reports that just the opposite is occurring. The newspaper says programmers have become more cautious, unwilling to take a chance on an obscure song or a new artist because they fear that any deviance from industry norms could make them a target for the New York AG's probe. Many PDs even refused to be interviewed by the LA Times, for fear that being quoted could make them a target. One who did talk was Tom Calococci, PD of Radio One's KKBT-FM LA. He told the paper that "Spitzer has put a chill on everything."

RBR observation: Why is this out-of-control, self-styled national cop being allowed to get away with this? Why won't someone haul him into federal court and have his record company settlements voided in the other 49 states? Are the radio and record industries just going to sit back and let a New York state official write new rules for the entire nation? Isn't that authority supposed to be limited to the United States Congress, the Federal Communications Commission and the United States Department of Justice? Just how did Eliot Spitzer manage to insert himself into that list as both a new legislative branch and a new enforcement branch of the US government?

Dan Kieley dies suddenly

The legendary programmer who was VP/Programming for KIIS-FM LA for five years died from a heart attack at his home in Dallas. He was only 51. When Dan Kieley was PD at Clear Channel's "Kiss FM," he took the station from a 12+ rating of 2.8 to 5.6 and made it the LA market's #1 English station for eight quarters in a row - -not to mention being the top-billing station in the US at that time (USD68 million). Before his Kiss years, Kieley had programmed such notable stations as KRBV Dallas, KDWB Minneapolis, WLUM Milwaukee and KQKQ Omaha. Kieley had most recently been a partner in Dallas-based Snafu Consulting with his son, Joe, and Garry Leigh.

Billboard owner still wants buyout
Despite considerable shareholder resistance, VNU management is pushing for acceptance of a nine billion bucks buyout by a consortium of private equity firms as the best course. In an attempt to build support for the buyout, VNU issued a printed presentation entitled "A Superior Alternative for Shareholders" and invited questions on a worldwide conference call with top VNU management. The presentation took issue with the alternative proposal put forth by Knight Vinke Asset Management (KVAM), with VNU officials saying there really wasn't any difference in the cost-savings analysis by KVAM and VNU's own analysis, except that KVAM was using older numbers and VNU's base line already included many of the cost savings. Thus, they argued, KVAM was "double-counting" cost savings. VNU officials also dismissed as unrealistic the prices KVAM thinks the various pieces of VNU could bring if the company is broken up. They said no one had expressed an interest in bidding for only parts of the company when VNU was put up for sale, so it's unlikely that there would be spirited bidding if the pieces are put up for sale separately. VNU's most profitable business is its TV ratings company, Nielsen Media Research, while various scenarios have suggested selling off its consumer data operations, anchored by ACNielsen, or its publications and trade show division, which includes such titles as Billboard, Adweek and The Hollywood Reporter.

All in one to be
demo'd at auto show
BMW's Tom Fashola demonstrates the all-new "Ultimate Entertainment Package." The package includes Sirius Satellite Radio, HD Radio and the latest BMW iPod Adapter which will be unveiled by BMW at the New York International Auto Show on Wednesday. BMW also plans to Podcast a demonstration of all three entertainment options from the floor of the New York Auto Show.

Legal eagles hold forth: Product placement
The law form of Womble Carlyle Sandridge & Rice PLLC has kindly made available letters written for the benefit of their clients to RBR/TVBR so that you too can benefit. As they are careful to remind all readers, the documents are "...provided for general information purposes only and should not be relied upon as legal advice." We would further advise you not to use them as a basis for prognostication (political, financial or otherwise), active litigation, or the placement of wagers. Today's topic: Product placement
| Read the report here |

Wall Street Media Business Report TM

Iger on deck today
The Walt Disney Company reports results this afternoon for its fiscal Q2, the period of January-March 2006. Analysts surveyed by Thomson/First Call are expecting new CEO Bob Iger to deliver 4% revenue growth. However, on the bottom line they're expecting earnings per share of 30 cents, down two cents from a year ago.

Ad Business Report TM

CC Radio offers
HD Radio spots to Alliance
Clear Channel Radio announced that its Creative Services Group is making accessible radio ads promoting HD digital radio. Available to the 12 member companies of the HD Digital Radio Alliance, the new spots are edgy and contemporary with a tag that plays on the theme of high definition - -"Are You Def Yet?" Alliance member companies, which include large, small and independent radio operators, will have access to spots that are ready-to-air to air on Rock, CHR, News/Talk, AC and HipHop/Urban-formatted stations. Samples of the new creative can be heard at www.areyoudefyet.com. "We applaud this extraordinary work from the Creative Services Group. Clear Channel, as well as other Alliance member companies, is doing some outstanding creative showcasing HD Radio" said Peter Ferrara, HD Digital Radio Alliance CEO. "We believe these kinds of efforts by the Alliance members will help increase the appetite for the impressive digital sound and expanded format features that HD digital radio offers."

ZenithOptimedia sees Internet overtaking outdoor, radio
Zenith Optimedia Group has revised its global ad spend outlook, predicting now that the Internet will overtake worldwide outdoor ad spending next year, and will catch up with radio in 2008: "We have revised our internet forecasts upwards once again as it has continued to exceed expectations. We now predict it will attract 6.5% of all advertising in 2008, up from 4.5% in 2005 (and up from the 6.0% we predicted for 2008 back in December). The internet is now firmly established as a mainstream advertising medium in developed markets, and in many developing markets too. We predict it will overtake outdoor in volume in 2007, even though outdoor is gaining share itself, and that by 2008 it will be catching up with radio too (which will have a 7.9% share, down from 8.5% in 2005)." ZenithOptimedia revised its 2006 outlook up slightly, calling for a 6% increase in global ad spend--up from 5.9% in its December 2005 forecast. US ad spend is now projected to grow 5.2% this year, vs. 5.1% in December.
| See charts here |

MCMEC, the Ad Council and MySpace
partner for online safety
The National Center for Missing & Exploited Children (NCMEC), the Ad Council and News Corp.'s Fox Interactive Media and MySpace, announced a joint effort to promote online safety through the deployment of a series of national PSAs. The PSAs, part of an ongoing Ad Council campaign, began running yesterday as part of an ongoing, industry-wide effort to work with leading advocacy organizations to develop safety curriculum and educate the public on online safety. Sponsored by NCMEC and created pro bono by Merkley + Partners, the PSAs air on primetime on FOX, and across Fox Interactive Media's network of websites including MySpace, FoxSports.com, IGN.com, Fox.com, AmericanIdol.com, Rotten Tomatoes and AskMen. The PSAs will also air on the 28 Fox Networks Group broadcast, cable and satellite services. Fox broadcast and cable networks running the campaign will include FOX, FX, National Geographic channel, Fox Movie Channel, Fox Reality, FUEL TV, FSN, SPEED, Fox College Sports Atlantic, Fox College Sports Central, Fox College Sports Pacific, Fox Soccer Channel and (in Spanish) on Fox Sports en Espanol. All Fox-owned-and-operated regional sports networks will likewise televise the PSAs. Additionally, Fox All Access radio and the New York Post will run the campaign.

Dunkin' Donuts
launches new campaign
Dunkin' Donuts unveiled a new, multi-million dollar campaign that revolutionizes the brand's position by focusing on how Dunkin' Donuts keeps busy Americans fueled and on the go. The new effort is billed as a fun and often quirky celebration of life, showing Americans embracing their work, their play and everything in between -- accompanied every step of the way by Dunkin' Donuts. Created by Boston-based Hill, Holliday, the creative platform debuts the new tagline "America Runs on Dunkin'" and includes eight 30-second and eight 15-second television spots, nine radio spots, a multi-tiered print effort, in-store advertising, outdoor program and an online component. The ads will stress the company's primary mission to provide a full range of quality food and beverages that are affordably priced and served fast. In conjunction with the campaign, Dunkin' Donuts has launched a special section of the company's website (www.dunkindonuts.com) called the "D Stop" that will feature fun, interactive elements for customers online, including videos, games, quizzes, and an order form that will make the daily Dunkin' Donuts run quicker and easier. The "America Runs on Dunkin'" national marketing campaign breaks today on all major networks including ABC, CBS, NBC and on various cable stations, and in print in Boston, Hartford and other key markets. It will be fully supported via online and offline marketing campaigns, in addition to broadcast, print and online placements.

Washington Media Business Report TM

Poverty pays off
WLTH Radio Inc., license of WLTH-AM Gary, IN, isn't off the hook completely, but the FCC has agreed to reduce the 16,000 fine it levied on the company for failing to register its tower and not notifying the FAA that the tower lights were out (12/7/04 RBR #237). The license asked the FCC to cancel the fine altogether, since it had corrected the violations, but the Commission wasn't swayed. However, it did accept evidence that WLTH was suffering economic hardship and reduced the fine to 4,000.

Media Markets & Money TM

Boyd finds a Forever buyer
Darrell Boyd is selling his three mid-Tennessee stations to in-market competitor Forever Communications and its Forever South Licenses subsidiary, primarily owned by Kerby Confer, Donald Alt and Christine Hilliard. For 1.3 million bucks, Forever is getting WLSQ-FM Dyer, TN and WHMT-AM & WLSZ-FM Humboldt, TN. The acquisition will create a number of new superduopoly markets with stations owned by Forever, but only one falls within an Arbitron market. By adding WLSZ-FM, Forever will wind up with three FMs and an AM in the Jackson, TN market.

Davidson strikes again
Fast-growing Davidson Media Group is adding another market. Broker Jamie Rasnick of John Pierce & Co. reports that Peter Davidson's company is paying 600K to enter the Little Rock, AR market with KITA-AM. The seller is KITA Inc., headed by Tom Rusk. Davidson's Spanish radio group is already in the nearby Fayetteville, AR market with KAKS-FM.

NAB Day Time Planner

	The following will be attending the NAB. Call or email to make your appointment in advance.

EQUIPMENT Les Kutasi, Sales Manager; Stainless, Booth #C2447, 215-631-1313, [email protected] BROKERS Todd Fowler/David Reeder/Gene Ferry, American Media Services, Bellagio, 843-972-2200, [email protected], [email protected], [email protected] Cliff Gardiner, Clifton Gardiner & Company, 303-758-6900, The Wynn Hotel, [email protected] Andy McClure/Dean LeGras, The Exline Company, The Wynn Hotel, 415-479-3484, [email protected] Frank Boyle, Frank Boyle & Co., LLC, Hilton Grand Vacations Villa, 703/765-8300, [email protected] Gordon Rice, Gordon Rice Associates, 843-884-3590, Treasure Island, [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, The Wynn Hotel, office 607-733-7138, cell 607-738-1219, [email protected] Elliot Evers/Brian Pryor/ Adam Altsuler/Tim Beach Media Venture Partners, LLC, 415-391-4877, [email protected], [email protected] Larry Patrick/Greg Guy, Patrick Communications, Bellagio, 410-740-0250, [email protected] Glenn Serafin, Serafin Bros., Aladdin Hotel, office 813-885-6060, cell 813-494-6875, [email protected] LAWYERS Gregg P. Skall Womble Carlyle Sandridge & Rice, PLLC 202-857-4441, Wynn Hotel [email protected]

Internet Media Business Report TM

It's a talk radio deal - -
with no radio
Salem Communications announced an acquisition to expand its conservative talk radio platform, without actually adding any radio stations or shows. What Ed Atsinger is buying now is Townhall.com, a conservative news and opinion Internet site that's been up and running since 1995. Townhall.com currently serves more than 1.2 million unique visitors and generates 12 million page views per month. "Salem Communications is an ideal home for Townhall.com because of its substantial radio platform and dynamic and profitable web properties. The future for Townhall.com is bright, and member groups and users will appreciate how the web site can be more fully developed and promoted," said Douglas Wilson, who will continue as Chairman of Townhall.com and will be a regular columnist on the site. "The acquisition of Townhall.com fits with Salem's strategy of integrating our traditional radio platform with new media assets that serve the same target audience. This leading news and conservative opinion website combined with our News Talk radio stations and nationally syndicated talk show network gives us the ability to share and repurpose content. The acquisition also provides a highly effective means to promote across a multi-media platform. We see an opportunity to significantly grow the Townhall.com brand while broadening the exposure and popularity of our News Talk radio hosts and radio stations," said Atsinger, Salem's CEO.

Ratings & Research

HD Radio awareness still low
An Internet-based survey of Rock radio listeners by Jacobs Media finds that most people are still unaware of HD Radio. Only one in five said they knew about HD Radio. After being told a little about HD Radio and the features it offers, 37% of those surveyed say they'd be "very likely" or "somewhat likely" to buy an HD receiver for 300 bucks or less. That rose to 46% among those who were already aware of HD Radio.

RBR observation: Still a lot of public education to do. You can bet that just about everyone in the survey was aware of XM and Sirius. By the way, we note that in his blog Fred Jacobs is dead set against terrestrial broadcasters helping to promote their satellite competitors. "We call on every commercial broadcast company to ban satellite radio advertising, directly and indirectly, whether on your stations or on your networks. And that means being vigilant about any advertising that walks through the door with any hint of an XM or Sirius pitch. And in that same spirit, every radio network should say no to satellite radio ads, or any pitches that incorporate it into commercials," Jacobs said.

Transactions

600K KITA-AM Little Rock AR from KITA Inc. (Thomas A. Rusk) to Davidson Media Station KITA Licensee LLC, a subsidiary of Davidson Media Group LLC (Peter Davidson). 30K escrow, balance in cash at closing. LMA 4/17/06. [File date 3/22/06.]

222.5K WEAF-AM Camden SC from Jeffrey M. Andrulonis to Glory Communications Inc. (Alex Snipe). 10K escrow, balance in cash at closing. [File date 3/22/06.]

Stock Talk

Radio stocks outperform the market
Radio stocks bounced back from Friday's poor showing and outperformed the broader market on Monday. That broader market was mixed, with no new economic reports to move traders to buy or sell. The Dow Industrials rose 21 points, or 0.2%, to 11,141, but the Nasdaq Composite was down for the day.

The Radio Index rose 1.707, or 1.1%, to close at 161.230. Radio One led the charge, with its Class D stock up 8.1% and Class A up 7%. Westwood One rose 3.4%.

Radio Stocks

**Here's how stocks fared on Monday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		33.00	-0.09	Hearst-Argyle	HTV		23.32	+0.27
Beasley	BBGI		9.93	-0.17	Journal Comm.	JRN		12.08	+0.01
CBS CI. B	CBS		24.89	-0.25	Lincoln Natl.	LNC		57.05	+0.24
CBS CI. A	CBSa		25.00	-0.16	Radio One, Cl. A	ROIA		7.97	+0.52
Citadel	CDL		10.69	+0.01	Radio One, Cl. D	ROIAK		8.00	+0.60
Clear Channel	CCU		28.93	-0.13	Regent	RGCI		4.34	-0.01
Cox Radio	CXR		13.79	+0.25	Saga Commun.	SGA		9.04	+0.01
Cumulus	CMLS		11.40	+0.10	Salem Comm.	SALM		14.70	-0.11
Disney	DIS		27.79	+0.26	Sirius Sat. Radio	SIRI		5.30	-0.01
Emmis	EMMS		15.82	+0.37	Spanish Bcg.	SBSA		5.40	+0.10
Entercom	ETM		28.78	+0.15	Univision	UVN		34.86	+0.08
Entravision	EVC		8.80	unch	Westwood One	WON		10.92	+0.36
Fisher	FSCI		42.38	-0.15	XM Sat. Radio	XMSR		23.40	+0.10
Gaylord	GET		43.40	-0.12	-	-	-	-	-

Bounceback

Send Us Your Opinions We want to
hear from you.
This is your column, so send your comments and
a photo to [email protected]

In response to Bill Pressly on Local Direct - - Big Market vs. Small (4/10/06 RBR #70) I agree with Bill that regardless of the market, with so many stations and formats to choose from, the sellers with the best consultant approach and creativity will win. These days, even though agency media culture lags behind the local direct culture of media value, the direction is very clear: advertisers want results they can document. Ratings are less and less holding the prominence they once did, due to escalating costs and lowering effectiveness of shotgun broadcast advertising. Every business needs to know their money is well spent, but now they need to document the results. Ratings don't provide that. Good local sellers do, tailored promotions do, right format selection, new technology does and demos do - - but most of all, it's the documented results that keep the client coming back.

Stan Elgart
Felsgart Communications

Below the Fold

Ad Business Report
ZenithOptimedia ad forecast
Sees Internet overtaking Outdoor and the Radio biz...

Washington Media Business Report
Poverty pays off
WLTH-AM Gary, IN, isn't off the hook completely...

Media Markets & Money
Boyd finds a Forever buyer
Selling his three mid-Tennessee stations...

Ratings & Research
HD Radio awareness low
Most people are unaware of HD...

Radio Media Moves

Promotion and
hiring at ABCRN
ABC Radio Networks has promoted Belia Jimenez to the position of Director, Multicultural Research, and has named MaraLynn Montes to the position of Associate Manager, Sales Development Research. Jimenez had been managing multicultural as well as sales development research for ABC Radio Networks as Director of Sales Development Research. Montes comes to ABC Radio Networks after 11 years at The Wall Street Journal Radio Network, where she most recently held the position of Research Associate.

Director leaving WW1
According to an SEC filing, Dennis Holt has notified Westwood One that he will resign as a director of the Company, effective as of May 15, 2006. No further explanation was given.

Red Zebra
adds another
Red Zebra Broadcasting announced that Tod Castleberry has joined on as Vice President of Operations, overseeing programming, production and operations for all Red Zebra properties and for the Redskins Radio Network. Castleberry joins after a 14-year tenure at WTEM-AM Washington, where he was most recently Operations Manager.

CC makes NYC move
Clear Channel Radio has named Sr. VP Rob Williams Market Manager for its New York cluster. Tom Shurr, Sr. VP of the Southeast region, will add the Northeast region to his portfolio.

More News Headlines

Interep presents
8th "Power of
Urban Radio"?
Interep will hold its 8th "Power of Urban Radio" Symposium on Tuesday, June 13th, at the JW Marriott Hotel in downtown Chicago. The symposium showcases thought-leadership in the field of multicultural marketing, particularly as it relates to African American consumers and the urban marketplace. The event is designed for advertising agencies and marketers to discuss and learn how to strategically and tactically target today's African American community. The focus of this year's symposium will be on answering the question, "Can Mainstream Media Effectively Target the African American Market?" The keynote speaker for the event is McGhee Williams Osse, co-CEO of Burrell Communications. Industry leaders Chesley Maddox-Dorsey (President/COO, Access.1 Communications), Darryl Brown (Executive Vice President/General Manager, ABC Radio Networks) and Jay Williams (President, American Urban Radio Networks) are serving as co-chairs of this year's event.

CBS Radio to air NAVTEQ Traffic
NAVTEQ, a provider of digital map data for vehicle navigation and location-based solutions, and CBS Radio have teamed up to begin offering a new traffic info service via the Radio Data System (RDS) protocol. Through the use of CBS Radio's FM data channels/SCA signals, NAVTEQ Traffic RDS is displayed on Portable Navigation Devices (PND) and PDAs. The new service, NAVTEQ Traffic RDS, links up- to-the minute traffic information to map data and enables wireless transmission directly to a navigation device.

RBR Radar 2006

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

Adelstein weighs in on VNRs
The pet issues of FCC Commissioner Jonathan Adelstein are payola and plugola, so the new study on VNRs by the Center for Media and Democracy and Free Press is right in his wheelhouse. He said there was nothing intrinsically wrong with the VNRs in the study, items from corporations produced to resemble television news items. The problem is that they were run without being sourced. "If the Commission determines that a licensee has violated the law, we may impose monetary fines of up to $32.5K per violation... There is more in
04/10/06 RBR #70

VNU buyout bid under attack again
Institutional Shareholder Services (ISS) doesn't publicly distribute its corporate proxy vote recommendations - - you have to pay big bucks for that advice, and lots of major institutional investors do. But Knight Vinke Asset Management is making sure that everyone knows what ISS has advised for the April 18th annual shareholder's meeting at VNU, parent company of Nielsen Media Research and a number of media trade publications, including Billboard and The Hollywood Reporter.

RBR observation: Another punch in the gut but look for VNU eventually to get a new name, new management and new directors, with only long-term investors committed to building shareholder value. It's not likely that the private equity firms will accept the 30% offer at this point, since they are committed to the 100% buyout tender that runs through May 5th. Nielsen Rating is the diamond and it will be interesting to see who has the broadcast knowledge to Re-Brand this mega company with the right assets to enhance the value of the Nielsen diamond and what they will cut loose. This should be interesting to watch unfold.
04/10/06 RBR #70

Radio is indeed proving that
it can stand the test of time
By Natalie Swed Stone
The digital revolution and all that accompanies it - - has forever changed attitudes, expectations and content. The competition is now infinite. Media companies, once defined by their distribution strength, are striving to maintain their share in an ever-expanding sphere by crossing over into new platforms. Companies who once had a handle on their competition today do not easily know just who their competition is
04/07/06 RBR #69

Double trouble in Q1
It's rare for both of radio's biggest markets to be soft at the same time, but Bear Stearns says it looks like both New York and Los Angeles saw radio revenue declines in Q1. By his count, New York was down 12% for the quarter and LA 4%. On the plus side, he says May is looking stronger and he hopes sluggishness in April won't lead to any rate panic for Q2. Miller sees a "Let's Get Small" theme for Q1, with groups having most of their stations in smaller markets doing better than those in the big markets. Some major TV national ad categories are still soft
04/07/06 RBR #69

Inventories down 5.9% in March
Harris Nesbitt analyst Lee Westerfield's monthly number crunch of Media Monitors data shows radio spot loads down 5.9% for the top 10 markets. The good news is that the yield-per-minute is up 7-8% over a year ago, but Westerfield is becoming worried that some groups may miss their Q1 guidance. Looking for a leveling off now that Less is More is more than a year old, while the 5.9% decrease for March was a modest improvement over the 7-10% declines of recent months, Westerfield says he doesn't yet see any indication of an upturn in radio ad growth overall. Outlook: there could be some negative surprises from several radio groups when they report their Q1 revenues - - "notably Entercom and Emmis."
04/06/06 RBR #68

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