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Volume 23, Issue 72, Jim Carnegie, Editor & Publisher
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Wednesday Morning April 12th, 2006
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Radio News ®
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 More softness seen in radio
As radio groups prepare to report Q1 results, Goldman Sachs analyst Mark Wienkes sees no improvement in a soft ad market. He's expecting most groups to hit their Q1 targets, but guide downward for Q2. Rather than improving, Wienkes says it appears that pacings are down in the mid single digits for Q2. "as April and May are two of the largest revenue months for radio, signs of a deteriorating outlook does not bode well for second half '06, even with a fully expected +1% bump from political spending," the analyst warned. Thus, Wienkes has lowered his 2006 earnings per share estimates for Cox Radio, Emmis, Entercom, Radio One and Westwood One.
Pirate radio station loses long legal battle
At times it looked like radio free brattleboro might actually beat the FCC in federal court, as some rulings by the judge seemed to show sympathy for the pirate radio station's claims that it somehow had a right to operate without a license because the FCC didn't issue the exact type of license it wanted to apply for. And it got resolutions of support from local government entities. But in the end, the three-year court battle resulted in a victory for the FCC, represented by the US Department of Justice. According to the Rutland Herald, US District Court Judge J. Gavan Murtha has granted a summary judgment in favor of the FCC, barring the now-defunct 10-watt station from going back on the air without a license or waiver from the federal government. While the case has been working its way through the courts since 2003, the FCC has awarded a 100-watt LPFM license to a legitimate community radio group, Brattleboro Community Radio. That station is expected to sign on later this year.
Abernathy lands in telcom biz
If you were concerned that Kathleen Abernathy might have trouble finding work after departing the FCC, worry no more. The former Commissioner has joined the board of directors at Citizens Communications Company, which traded on the NYSE as CZN. Of course, she's already put her law degree to work at Akin Gump Strauss Hauer & Feld. Citizens Communications is primarily a local exchange telephone company. It operates under the Frontier brand name.
 Ali and Elvis together at CKX
Bob Sillerman's CKX Inc. not only owns the rights to Elvis Presley's name and image, the company has now purchased an 80% stake in the name and image of Muhammad Ali. The champ, who is 64 and suffering from Parkinson's Disease, says the deal guarantees that his beliefs and purpose will be known for generations to come. According to an SEC filing, CKX paid 50 million bucks for the 80% stake in newly-formed G.O.A.T. LLC, with the Muhammad Ali Family Trust owning the other 20%. G.O.A.T. stands for "Greatest of All Time," a trademark owned by the company and a title which Ali wears proudly. The family trust will increase its interest to 25% if returns on CKX's investment surpass certain benchmarks. As it stands now, Ali's name, image, likenesses and trademarks have been bringing in 4-7 million annually over the past five years. As it has with the Elvis Presley rights, CKX hopes to expand the revenue flow from marketing the Muhammad Ali name, while at the same time promoting his legacy. ""This relationship with CKX will help guarantee that, for generations to come, people of all nations will understand my beliefs and my purpose," said Ali in a statement announcing the deal.
Legal eagles hold forth: Prohibited product advertising
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: Prohibited product advertising
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Ad Business Report TM
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 Anti-smoking products, clinics,
laser therapy pitch on radio airwaves
The latest radio ad campaigns heard nationwide are discussed in this article based on the most recent week's data of radio commercials from Media Monitors. Anti-Smoking Radio: There are three main ways to kick the habit, based on radio spots: products, clinics, or laser treatment. Smoke Free (#1) tops the Spot Ten Stop Smoking! Chart this week, a product whose radio spots were heard 415 times across 13 major markets this week. A rare breed of advertisers NOT mentioning their web site in any way (www.nicotinefreecigarettes.com) within their spot, Smoke Free just gives a toll free number. Other products with hefty spot schedules: Nicoderm CQ (#3) and Bravo Smokes (#5). Clinics on radio last week included included Lifeline (#2) and Welplex (#4), both owned by the same parent company, also Advanced Medical Stop Smoking Center (#8) which advertised only in Cleveland and Columbus last week. Laser treatment centers included Laser Concepts of Chicago (#6) on the air in the windy city, similar-sounding Laser Concept (#10) airing on Orlando Radio, and Anne Penman Laser Therapy (#7) which advertised in five markets. Have you heard heard?: Top radio advertiser on the Spot Ten Memphis chart is regional dealership Bill Heard Chevrolet, with 634 spots this week in Elvis' adopted city. Besides Memphis, Heard is heard in the top 100 markets of Vegas, Phoenix, Houston, Nashville, Birmingham, Orlando, and Atlanta. Interesting pitch of the week: everyone leaving Bill Heard's web site (www.billheardchevy.com) is provided a pop-up window offering an additional $500 off coupon for any deal on the table. Memphis Blues: Memphis radio is being bought ten stations deep this week with a major campaign for the Beale Street Music Festival May 5-7. Major marquee acts include blues and R&B legends B.B. King and Jerry Lee Lewis, classic rock acts like Chicago, Bryan Adams and Huey Lewis and The News, thrash rock acts Staind and Trapt, funk fathers and godfathers James Brown, George Clinton and Parliament, recent Oscar winners Three 6 Mafia, lots more.
Donat/Wald named AOR
for Movielink, launches campaign
Boutique agency Donat/Wald been named AOR for Movielink, the movie download service. The two companies launched a nationwide print campaign introducing Movielink's new download-to-own service, which allows consumers to buy movie downloads online. Selected for its ROI-positive advertising approach, Donat/Wald is charged with building Movielink's brand and driving sales of its new service through a nationwide campaign that spans print, radio, television and the Internet. The print campaign rolled out 4/3 in 34 major newspapers around the country. A national radio campaign will launch in the next few weeks; online and television will follow. Donat/Wald is managing all creative development and all buying for the campaign. To help Movielink introduce its revolutionary new service, Donat/Wald is employing its strategy that transcends both brand-building and direct response advertising to deliver a measurable, positive ROI.
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| Media Markets & Money TM |
 Long Island AM brings 14M
Green Bay, Wisconsin-based Starboard Media, headed by Richard Lyles, is making a major acquisition on the East Coast for its Catholic Religious programming. It's created a new non-profit subsidiary, NYStar Inc., which is paying 14 million bucks for WLIE-AM Islip, NY. Seller Long Island Multimedia LLC, headed by Stuart Henry, is getting 1.1 million for its real estate and 12.9 million for the station assets, with nine million of that in a promissory note. WLIE-AM currently airs a Business Talk format.
RBR observation: Located dead center of Long Island, this station covers quite a large population with 2.5kw day (2-tower directional) way up at 540 kHz, although nightime power is only 220 watts. But the station recently got FCC approval to go to 4.3kw day (also 2 towers) and 175 watts night (nondirectional). That explains part of why the price has gone up so much since Long Island Multimedia bought it for 1.1 million in 1995.
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| Washington Media Business Report TM |
Don't forget to send copies to everyone
The FCC's "must carry" rule for TV stations on cable doesn't apply to radio, but there is a lesson to be learned from the failure of KM Television of El Dorado to get KEJB-TV (Ch. 43, UPN) El Dorado, AR placed on Cox Communications cable systems in several Louisiana communities. That lesson is to serve copies of your pleadings with the FCC on anyone who might possibly have a legal right to receive one. When the request was first denied by the FCC in 2004, one of the reasons given was that KM had failed to serve its must carry complaint on the local franchise authority for each cable system. In petitioning for reconsideration, KM had sought a declaration from the Commission that such notification was unnecessary, since the local franchise authorities have no interest in must carry proceedings. But the FCC disagreed, saying they do have an interest because channel carriage could impact the local regulatory process, such as rates for the basic tier. So, KM's petition for reconsideration was denied.
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| NAB Day Time Planner |
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The following will be attending the NAB.
Call or email to make your
appointment in advance.
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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]
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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] |
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| Entertainment Media Business Report TM |
CBS Radio offering "Auto Scoop New York" on HD-2
CBS Radio will present Auto Scoop New York, a compilation of automotive news and entertainment programming, including the latest information from the popular Manhattan auto event, beginning today and continuing through Sunday. Updated daily, the three-hour program will feature information on an array of new car designs and debuts, concept cars, interviews and commentary from automobile manufacturers and local dealerships, as well as a presentation of the 100 Greatest Car Anthems. The show will be streamed live online at www.cbsradio.com (9:00AM-12:00 Noon) and repeated throughout the day. In addition, the program will be broadcast daily on 101.1 WCBS-FM's HD 2 channel (12:00 Noon-3:00PM, ET). CBS Radio launched Auto Scoop in October 2004. The five-hour weekly program currently airs on more than a dozen CBS stations every Saturday morning.
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| Internet Media Business Report TM |
New media to help boost revenues in 2006
 According to Kagan Research, consumer adoption of new technologies will significantly boost media revenues in 2006 and going forward. Media Trends 2006 estimates the online ad market will grow about 21.7% in 2006 to finish the year with 14.5 billion in revenue. Over the next ten years Kagan projects the online ad market will grow at an 8.7% CAGR, reaching 25.5 billion in five years and 33.4 billion by 2016.
| Read More... |
Webby Awards announce this year's nominees
The International Academy of Digital Arts & Sciences unveiled the nominees for Best Radio Site in The Tenth Annual Webby Awards. Reflecting the incredible diversity of radio sites on the web, the five nominees in the category are:
· KEXP.ORG
· Youth Radio
· AccuRadio
· Voices
· NPR.org
Last year's winner for Best Radio Site was Virgin Radio.
Winners will be announced on May 9, 2006. Winners will be honored at a gala event on June 12 at New York City's historic Cipriani Wall Street.
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| RBR Stats |
 Survey: Majority of households
have multiple cell phones
More fuel to the smart cell phone fire for use in media consumption measurement: Nearly two-thirds (62%) of households with cellular phones had more than one cell phone in the house in the 4th quarter of 2005, according to a study released today by ICR of Media, PA. The trend is up from 53% of households in the 2nd quarter of 2002. The ICR CENTRIS omnibus conducts an ongoing survey of in-home technology usage in U.S. Households.
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| Engineering Business Report TM |
iBiquity Digital certifies second generation reference design for HD Radio receivers
iBiquity Digital announced it has released a new, upgraded HD Radio Reference Design for tabletop and home receiver manufacturers. Optimized for heightened AM/FM sensitivity and reduced bill-of-material costs, Version 2.0 provides a fast-track solution for OEM/ODM consumer electronics manufacturers looking to integrate HD Radio technology into current and future AM and FM radio product lines. There are now more than 20 Asia based radio manufacturing companies involved in developing HD Radio products. The list includes companies such as: Kiryung Electronics, RockRidge Sound Company Ltd., Orient Power, City Electronics, OPUS Art and Technology Co. Ltd., Sangean, Jazz Hipster, Wistron-NeWeb Corp. and Zylux Acoustic Corp. iBiquity's HDM1181 HD Radio Reference Module Version 2.0 utilizes existing HD Radio chipsets in a flexible, cost-optimized hardware design that is supported by standardized software drivers and simplified production testing equipment. The module is now certified and available to all HD Radio licensees.
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| Transactions |
6M WOCN-AM Miami-Ft. Lauderdale FL (Miami) from Minority Broadcasters Inc. (Richard Vega, Pablo Vega, Sebastian Vega) to Independence Media of Florida LLC (David F. Jacobs et al). 300K escrow, balance in cash at closing. Includes non-compete. [File date 3/23/06.]
N/A KBPV-FM DeQueen AR from IHR Educational Broadcasting (Douglas M. Sherman) to Radio Asset Ministry Inc. (Clark Parrish, Diana S. Atkin, Earl Williamson, Dennis Clounch, Gary Phelps). Donation from one noncom to another. [File date 3/22/06.]
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| Stock Talk |
Tough day for stocks
Higher energy and commodity prices put Wall Street traders in a gloomy mood Tuesday. The Dow Industrials fell 52 points, or 0.5%, to 11,090.
Almost all radio stocks were lower, as Goldman Sachs warned of continued softness in Q2. The Radio Index fell 4.206, or 2.6%, to a year-to-date low of 157.024. Radio One gave up the previous day's gain, falling 6.2% for its Class A and 6.4% for Class D. SBS was off 5.8% and Westwood One dropped 4.1%.
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| Radio Stocks |
Here's how stocks fared on Tuesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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33.04
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+0.04
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Hearst-Argyle
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HTV
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22.99
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-0.33
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Beasley
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BBGI
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10.30
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+0.37
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Journal Comm.
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JRN
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12.18
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+0.10
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| CBS CI. B |
CBS |
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24.60
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-0.29
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Lincoln Natl.
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LNC
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55.77
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-0.90
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| CBS CI. A |
CBSa |
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24.65
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-0.33
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Radio One, Cl. A
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ROIA
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7.48
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-0.49
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| Citadel |
CDL |
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10.49 |
-0.20 |
Radio One, Cl. D
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ROIAK
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7.49
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-0.51
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Clear Channel
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CCU
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28.46
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-0.47
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Regent
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RGCI
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4.40
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+0.06
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Cox Radio
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CXR
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13.27
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-0.52
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Saga Commun.
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SGA
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8.87
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-0.17
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Cumulus
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CMLS
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11.10
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-0.31
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Salem Comm.
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SALM
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14.50
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-0.20
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Disney
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DIS
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27.77
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-0.02
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Sirius Sat. Radio
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SIRI
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5.20
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-0.10
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Emmis
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EMMS
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15.19
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-0.63
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Spanish Bcg.
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SBSA
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5.09
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-0.31
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| Entercom |
ETM
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27.69
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-1.09
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Univision
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UVN
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34.48
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-0.38
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Entravision
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EVC
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8.50
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-0.30
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Westwood One
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WON
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10.47
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-0.45
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Fisher
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FSCI
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42.20
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-0.18
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XM Sat. Radio
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XMSR
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23.04
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-0.36
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Gaylord
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GET
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43.47
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+0.07
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Bounceback
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 We want to
hear from you.
This is your column, so send your comments and
a photo to [email protected]
It's great to see the roll out of HD radios in retailers such as Tweeter, Crutchfield and ABC Warehouse (4/11/06 RBR #71). However, to get the most public exposure and interest, iBiquity and the HD receiver manufactures need to have their sites set on Wal-Mart. Wal-Mart is a retailer that cannot be ignored if you want to reach the average consumer. I shop at Wal-Mart regularly and purchased my XM receiver there, right next to the Sirius receivers. I recently purchased my HDTV receiver at Wal Mart, also. Until HD radio receivers are on the shelves of Wal Mart, awareness of HD radio will continue to be low.
Scott Cason
LaGrange Communications, LLC
LaGrange Kentucky
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Below the Fold
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Media Markets & Money
Long Island AM brings 14M
For WLIE-AM Islip, NY. Seller Long Island Multimedia LLC...
Entertainment Media
Business Report
CBS Radio offering
"Auto Scoop New York" on HD-2...
Internet Media Business Report
New media boosting revenues in '06
Consumer adoption of new technologies moving the dollar sign...
RBR Stats
Majority of households
Have multiple cell phones
which means to your station...
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Radio Media Moves
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 O'Neill heading
BMI licensing
Michael O'Neill has been appointed Senior Vice President, Licensing at BMI, overseeing all aspects of BMI's licensing including radio, television, cable, satellite and its General Licensing arm whose customers include approximately 600,000 restaurants, bars, live performance venues, and a wide spectrum of retail, transportation, and service establishments. O'Neill joined BMI in 1995 and was most recently Vice President Sales and Administration, Media Licensing. He was previously with the CBS Television Network as Director, CBS Affiliate Relations.
DeVoti to Jersey
Greater Media announced that Matt DeVoti has been named General Sales Manager of WDHA-FM & WMTR-FM Morristown, NJ, effective April 17th. DeVoti was previously an AE at CBS' WNEW-FM New York.
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More News Headlines
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Westwood One reups with NBC News
Westwood One and NBC News announced a renewal agreement of NBC News Radio. Launched in March 2003, NBC News Radio features top NBC and MSNBC news anchors and correspondents reporting from NBC Headquarters in New York and around the globe. In addition, the agreement includes a renewal for Westwood One to continue distributing "Meet the Press" with Tim Russert to a national radio audience.
Rusty Humphries interviewing Hamas leadership
Talk Radio Network's Rusty Humphries is back in Israel where he met with Hamas leader, Mohammad Abu Tir, and taking refuge in an alley, Humphries once again, met with members of the Al Aqsa Martyrs Brigade terrorist group in Bethlehem. This clandestine interview was held just hours after one of their leaders, Raad Abiat, was killed during an Israeli anti-terror operation in Bethlehem. Live broadcasts of these interviews as well as an exclusive interview with former Israeli Prime Minister Shimon Peres, were recently aired on The Rusty Humphries Show which airs nationwide weekdays, 6:00 p.m. to 9:00 p.m. Pacific, and 9:00 p.m. to 12:00 p.m. Eastern. Abu claimed that the plan for Israel to withdrawal from the West Bank is a lie, and that his organization does not want them to withdrawal "because we want to react. We want to have revenge." Abu went on to say that the only way to ever end the fight between Palestinians and Israelis is to "Get rid of all Jews...kill all of them, (then) there will not be war."
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RBR Radar 2006
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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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 revised the internet forecasts upwards again as it has continued to exceed expectations. 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. Predict again 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)."
RBR observation: Best grab onto something that does not move when you view and print this forecast which RBR strongly Recommends: Now grab and shake yourself loose of anyone or company that is trying to dictate your actions. This is No Time to play Follow the Leader as there is No set leader in our radio business - count on your own abilities to lead and win.
04/11/06 RBR #71
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.
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?
04/11/06 RBR #71
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
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