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Volume 22, Issue 74, Jim Carnegie, Editor & Publisher
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Thursday Morning April 14th, 2005
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Radio News®
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 Emmis on deck this morning
A couple of TV/newspaper groups have already reported Q1 results, but with its quirky fiscal year, Emmis will be the first radio/TV group to report to Wall Street on how 2005 is going - - at least through the end of February. The consensus of analysts compiled by Thomson/First Call is that revenues should be up 1% overall to 139 million. A preview from Goldman Sachs analyst Mark Wienkes sees radio revenues up 4.7% to 61.5 million and TV up 3.1% to 58.2 million. However, expenses are also expected to be up. Thus, the analyst expects radio cash flow to be down 1.4% and TV off 4.8%. Although Wienkes says the TV unit at Emmis is outperforming the industry, he maintains an "in-line/cautious" rating on the company overall.
Telecom overhaul in the works
Sen. Ted Stevens (R-AK), head of the Senate Commerce Committee, said some time back that it was time to take a fresh look at the Telecommunications Act, which bears the almost quaint suffix of 1996, a reference to the year of its enactment. His sentiments have been echoed by his counterpart in the House, Rep. Joe Barton (R-TX). Telecom 1996 covered an extremely wide range of issues - - it pretty much runs the gamut of industries under the purview of the FCC. It is thought that the most out of date elements of the Act come under the headings of Internet delivery. The biggest fight will probably be between cable and telephone interests. However, the entire package will be on the table, and that includes elements of interest to broadcasters.
RBR observation: To say that the new rules ushered in by Telecom 1996 were dramatic would be a gross understatement. We were watching at the time, and can say that nobody - - and we mean nobody - - was predicting that local radio clusters of up to eight stations was coming, and that the national radio station ownership ceiling was going bye-bye in its entirety. Broadcast television has been waiting for its turn for deregulation ever since - - that was the major thrust of the stalled FCC ownership action of 6/2/03. Perhaps legislators will exercise an element of caution this time around - - we've heard time and time again, from people of all ideological stripes, that the dramatic and unprecedented growth of Clear Channel was an unintended consequence of the 1996 Act. Will they be more on the lookout for new unintended consequences? All we can say is that it's time to strap in, folks.
 Making the case for a
government thumb on Nielsen
As Nielsen Media Research prepares to roll out its Local People Meters (LPM) to two more markets - - Philadelphia and Washington, DC - - the Don't Count Us Out Coalition, which claims that LPMs undercount minority viewers, is ready with another round of anti-LPM advertising. Although Nielsen has indicated that it is receptive to instituting most of the recommendations from a Task Force chaired by former Rep. Cardiss Collins (3/23/05 RBR #59), coalition members say that not enough - - that the federal government must get into oversight of Nielsen to ensure fair and accurate audience estimates. Although the Federal Trade Commission has refused to get involved (4/7/05 RBR #69), coalition member Gil Casellas, who headed Census 2000 for the Clinton Administration, insists that the government has a role to play. "We argue that there is a public interest with regard to content, with regard to the employment opportunities that come from that," he said. Coalition members told RBR that they don't have a blueprint for what the FTC would do, but that it should play an oversight role. "Right now, if there's a dispute between the networks, or advertisers, or community groups like Don't Count Us Out and Nielsen, there's really no place to go," said Casellas, saying that the Media Ratings Council has been powerless to stop Nielsen from taking LPM to more markets, although MRC has only accredited one of the six now operating.
RBR observation: Don't Count Us Out certainly has Sen. Conrad Burns (R-MT) on its side (4/8/05 RBR #70) and he's planning to introduce legislation to push the government into regulating broadcast ratings. And News Corporation is certainly pushing the idea, since it is known to be providing most of the funding for the coalition. But is there any groundswell of support from broadcasters to have the government regulate their ratings currency? We asked the coalition folks whether they could name a single broadcast company other than News Corp. which is backing the idea. They couldn't name one, although they noted that several other broadcasters had voiced public concerns about LPM. True, but they're working within the industry to fix problems with LPM and deal with other issues about how Nielsen measures TV viewing. We stand by our view that getting the government involved would make matters worse, not better.
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Limbaugh a Stern wannabe? Will BJ quip draw a fine?
We're not sure where this was coming from, but Rush Limbaugh got a little reckless on Tuesday, rivaling Howard Stern's "potty mouth." We just hope his hundreds of affiliates don't get fined (too)! Of course, we wouldn't worry about him saying this on a TV net, but with the FCC's history with radio fines, who knows. Fox News' Shepard Smith recently said "blow job" in prime time during a story on Jennifer Lopez. However, he immediately and profusely apologized afterward. And that was on unregulated cable. This is a little different, as you'll read. | More... |
 Transaction outlook: 2005, Part 4
John Pierce of John Pierce & Co. is on the hot seat today. We asked: What kind of deals are going to get done in 2005 while the ownership rules are still somewhat in flux? "I believe the deals that will get done are specialized operators, first of all. That may be specialized operators in sports - - there's been a growth of some companies going to market single-handed mainly in full-time, now also some day-timers doing sports. Also ethnic and religious, as you just saw recently with Salem buying KCRO-AM in Omaha. Such companies will still look into markets for size, definitely good facilities and look at buying stand-alone AMs or another big AM in a market that they might already have a presence in. I believe you'll see some activity this year, without a doubt, in non-commercial FMs. You'll see anywhere from two to maybe 10 of those." Are we talking about religious to religious or educational to religious? "We're talking in some cases educational to religious - - probably at least two of those. We'll see two or three of religious to religious and we'll see some situations happen this year which may not be acquisitions, but rather some LMAs this year by a major public broadcaster, meaning a non-commercial. Now those aren't transactions, but you'll probably will see some of that where the entry price is prohibitive for an AM or an FM in the top 25 market. But if they have the time to operate and develop the format and raise money as they go along with an LMA, you'll see that. You'll see some LMAs that could be with an option to purchase down the road.
Nominees announced for National Radio Hall of Fame
Only in radio could you be asked to choose between The Mormon Tabernacle Choir and Gen. Norman Schwarzkopf in voting. They are indeed running against each other for election to the National Radio Hall of Fame in the Network or Syndicated-Pioneer category. Winners will be inducted during a national radio broadcast from Chicago's Renaissance Hotel on Saturday, November 5. Westwood One will produce and distribute the broadcast and Interep will co-sponsor the program. Here's the list of nominees.
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Adbiz©
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 Volvo signs for MSN Spaces blogging tool
MSN announced the first US ad partner for MSN Spaces: Volvo Cars of North America. The new campaign from Volvo taps into the storytelling power of the Internet in an entertaining manner that advertises the brand and also helps introduce consumers to new stories from the community. MSN Spaces enables consumers to easily create and maintain a personal website for posting blogs, online photo albums, personal music lists and other content they want to share with others. More than 4.5 million consumers have already started their own MSN Spaces sites since 12/04, when the beta version of this service became available, giving Volvo access to a valuable and rapidly expanding audience. Volvo sought to partner with MSN because of the unique opportunity offered by MSN Spaces to reach users who are engaged in telling the stories of their lives, mirroring the "Volvo for life" brand campaign. The campaign centers on the What's Your Story? theme, which includes a destination web page (http://whatsyourstory.msn.com ) that enables consumers to discover great stories being told by others in the MSN community. Volvo's ads on the service include a universal ad package on the MSN Spaces home page, unobtrusive text links with graphics at the top of users' personal Spaces, and sponsored MSN Spaces with editorial content initially from MSN Autos and MSN Money, with expansions planned.
Universal McCann loses top research guru
Universal McCann Director of Global Research Jim Kite has resigned to become MediaVest's new EVP/Director of Insights, Research, and Accountability. This, the latest in a string of defections that include OMD snagging UMC Chief Strategy Officer Mark Stewart last week as Managing Director/Eastern Ops. Last November, Marston Allen, Director of UMC also joined MediaVest as Director of Business Development and Marketing. Last month, Robin Kent was replaced as worldwide Universal McCann CEO by COO Murray Dudgeon, on an interim basis.
 Kim Cattrall to be the face of
Bacardi's Island Breeze
Bacardi announced Sex and the City actress Kim Cattrall, who embodied the confident woman and led a revolution in cocktails, has been chosen as the celebrity spokeswoman for its new "Island Breeze by Bacardi." Cattrall will appear in a series of print and cable ads touting Island Breeze, "The Original Lite Spirit," that has half the calories of traditional spirits and half the calories of wine. She'll voice the tag, "Now you can have it all." Island Breeze is made with Bacardi rum, infused with natural fruit flavors and sucralose, a natural-sugar substitute with no caloric content. It'll be available throughout the US in May, in Key Lime, Coconut and Wild Berry. Avrett, Free, and Ginsburg NY handled creative.
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May - Radio & Television Business Report
The First Real Monthly Business Media Magazine
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 Upfront looms on the horizon
May Radio & Television Business Report focuses on One-On-One interviews with the money Ad Players: David Verklin, Steve Grubbs, Harry Keeshan, Jon Mandel, Ray Warren, Ira Berger, Jean Pool, Julie Roehm and others that read TVBR religiously. They're participating because they want you to know what they need to help make informed decisions. They comment on programming that they view promising for this upfront; they examine thoroughly the real issues that affect the marketplace as all are getting busy. This is a large story already and getting bigger.
Watch for the May Issue of
Radio & Television Business Report. The 2005-2006 Upfront Examined.
Advertising space is limited, contact:
June Barnes [email protected]
Jim Carnegie [email protected]
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| Media Markets & MoneyTM |
Close encounter in Dowogiac
Patrick Communications broker Greg Guy tells us the ink is dry and the keys exchanged in the 950K transaction involving WDOW AM & FM in Dowogiac MI. The seller is Joe Jason's Jason Communications. For Pete Sumrall, President of LeSea Broadcasting, Dowagiac will join a pair of FMs to the south in South Bend IN and a portfolio of 12 full- and low-power television stations.
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| Washington Beat |
Bolton gets air support
An organization called Move America Forward has come forth with advertisements backing the nomination of John Bolton as US Ambassador to the United Nations. The ads come on the heels of attempts by Citizens for Global Solutions (4/1/05 RBR #65) to derail that nomination through the use of advertising. Some of the CGS ads were specifically targeted to Rhode Island in hopes of influencing moderate Republican Sen. Lincoln Chaffee (R-RI) to vote with Democrats and against Bolton in committee. MAF appears to be mounting a more general campaign aimed at the public, and is soliciting donations on its website so it can acquire more airtime.
 Legal beagles play crazy eights in Vegas
The American Bar Forum on Communications Law and the Federal Communications Bar Association will converge on NAB2005 in Las Vegas to discuss the types of legal problems peculiar to broadcasters. A heavy-hitting lineup of panelists will include Jerald Fritz, Albritton Communications; Susan Fox, The Walt Disney Company; Charles Sennet, Tribune Company; Molly Pauker, Fox Television; Gregory Schmidt, LIN Television Corp.; Stuart Young, Cox Enterprises; Richard Wiley, former FCC Commissioner; Mary Snapp, Microsoft Corporation; Jane Mago, National Association of Broadcasters; Paul Gallant, Stanford Financial Group; and Russell Schwartz, Bahakel Communications. "Eight" is the theme of the 4/17/05 session, which runs all day, from 7:30 AM-5:30PM. Topic titles include "Eight TV Programming Secrets You'll Only Admit in a Privilege Conversation," "Eight Daily Rules that Just Make You Scream," "Eight Naive Comments from Sales Department Account Executives," "The Crazy Eight -- Problems You Don't Want to Hear About From Your News Director," and "An Eight-Legged Spider Web of Legal Problems. Also on the docket despite, during lunch, and perhaps due to the belief that either eight is enough, or there's already enough eight, is a session called "Washington Meets Wall Street."
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| TVBR - TV News |
 Wert v. Clear Channel settled
WMAQ-TV Chicago President and General Manager Larry Wert and Clear Channel Communications have settled the lawsuit that Wert filed last year seeking to exercise 800,000 bucks worth of Clear Channel stock options that the company had claimed were no longer valid (9/20/04 TVBR #183). A settlement conference last week with a US Magistrate brought the parties together. We'd love to tell you exactly what Wert got, but the settlement has been sealed. Wert never actually worked for Clear Channel, but had the options from working for 10 years at AMFM Inc. and predecessor Chancellor Media, which was merged into Clear Channel after he left for the NBC O&O.
TVBR observation: We'd bet that one reason Clear Channel decided to settle is that it has bigger things to deal with in the Chicago federal courts - - appealing a 90 million judgment against Clear Channel Entertainment by a jury which found that it had interfered with a competitor's agreement to promote dirt-track motorcycle racing (3/23/05 TVBR #58).
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| Transactions |
650K WJSZ-FM Ashley MI from Kevin Beamish & Alana Beamish, receivers for Curwood Broadcasting Co. to Krol Communications Inc. (Rodney A. Krol, Loretta A. Krol, Stanley Krol). 25K escrow, 225K cash at closing, two notes for 200K apiece. [File date 3/16/05.]
285K KTIB-AM Houma-Thibodaux-Morgan City LA (Thibodaux LA) from La Terr Broadcasting Corporation (Michael F. Starr) to Cajun Radio Corporation (Robert L. Wilkins, Luann J. Wilkins). 25K deposit, balance in cash at closing. 1K allocated to non-compete. LMA 2/1/05. [File date 3/15/05.]
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| Stock Talk |
Stocks fall because...well, because
Its days like yesterday that disprove the theory of Wall Street being an efficient market, at least in the short-run. A day after traders bid up stocks on what the Fed had to say about inflation, they apparently changed their minds after sleeping on it. Thus, the Dow Industrials dropped 104 points, or 1%, to 10,404.
Radio stocks rode the same roller coaster. The Radio Index dropped 2.879, or 1.3%, to 217.567. Salem gave up some of the previous day's gain, falling 4.4%. Spanish Broadcasting system was off 4.2%.
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| Radio Stocks |
Here's how stocks fared on Wednesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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43.48
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+0.18
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Jeff-Pilot
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JP
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49.03
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-0.52
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Beasley
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BBGI
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16.87
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-0.23
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Journal Comm.
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JRN
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17.10
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-0.03
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| Citadel |
CDL |
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13.76 |
-0.13 |
Radio One, Cl. A
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ROIA
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13.98
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-0.09
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Clear Channel
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CCU
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34.15
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-0.39
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Radio One, Cl. D
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ROIAK
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13.98
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-0.04
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Cox Radio
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CXR
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17.05
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-0.11
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Regent
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RGCI
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5.71
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-0.03
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Cumulus
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CMLS
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14.21
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-0.14
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Saga Commun.
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SGA
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15.45
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-0.08
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Disney
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DIS
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27.70
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-0.44
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Salem Comm.
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SALM
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20.38
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-0.94
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Emmis
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EMMS
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18.40
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-0.12
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Sirius Sat. Radio
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SIRI
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5.29
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-0.12
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| Entercom |
ETM
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34.39
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-0.34
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Spanish Bcg.
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SBSA
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9.36
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-0.41
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Entravision
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EVC
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8.80
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-0.17
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Univision
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UVN
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27.68
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-0.22
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Fisher
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FSCI
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51.57
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+0.25
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Viacom, Cl. A
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VIA
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34.73
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-0.32
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Gaylord
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GET
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41.37
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-1.05
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Viacom, Cl. B
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VIAb
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34.49
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-0.31
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Hearst-Argyle
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HTV
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25.51
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-0.03
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Westwood One
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WON
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20.20
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-0.19
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Interep
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IREP
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0.53
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+0.02
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XM Sat. Radio
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XMSR
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29.47
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-0.99
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International Bcg.
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IBCS
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0.01
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unch
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-
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-
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- |
-
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-
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__UNSUB__ to this email service.
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Bounceback
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 We want to
hear from you.
This is your column, so send your comments to [email protected]
This reader comments on broadcasters pulling satellite-friendly syndication...
Dear Jim,
Just wanted you to know that I applaud RBR's coverage of the ongoing discussion regarding the decision of several terrestrial radio station owners to cancel syndicated programs that are also heard on satellite radio. Undoubtedly, the issue of market exclusivity is critical to all terrestrial stations. Needless to say, this story will continue to develop and I look forward to reading about it in your daily e-paper. Your April 4th Epaper (4//4/05 RBR #66) mentioned several key players in our industry who have decided to voice their opinions at this time; Ed Christian, Gabe Hobbs, and Ken Beck to name a few. As you continue to cover this story be advised that we, at the WOR Radio Network, are not offering our programming to satellite companies. Our syndicated programs include Dr. Joy Browne, Jim Cramer's Real Money, Lionel, and Joey Reynolds; as well as a variety of weekend program offerings. Though highly coveted by both satellite providers for its unique and valuable program content, the WOR Radio Network deals exclusively with terrestrial radio stations. This has been the position of the WOR Radio Network and its parent company, Buckley Radio for many years. Once again, thanks for taking the lead on this very important issue. As always, please feel free to contact me for future comments.
Sincerely,
Chris Thompson
Executive Director
WOR Radio Network
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NAB Daytime Planner
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The following brokers will be attending the NAB. Call or email to make your appointment in advance.
Todd Fowler/David Reeder
American Media Services-
Brokerage, LLC
843-972-2200/903-640-5857
Bellagio,
americanmediaservices.com
Cliff Gardiner, Clifton Gardiner & Company, 303-758-6900,
Bellagio,
[email protected]
Andy McClure/Dean LeGras,
The Exline Company, Bellagio,
Office 415-479-3484
Frank Boyle,
Frank Boyle & Co., LLC,
Venetian Hotel,
203-969-2020,
[email protected]
John L. Pierce, John Pierce & Company LLC,
Mirage Hotel,
859-647-0101, cell 859-512-3015, [email protected]
Jamie Rasnick, John Pierce & Company LLC,
Mirage Hotel,
859-647-0101, cell 513-252-1186, [email protected]
Dick Kozacko/George Kimble,
Kozacko Media Services,
Bellagio,
office 607-733-7138, cell 607-738-1219, [email protected]
Bob W. Mahlman/Bob O. Mahlman, The 2 Bobs, Mahlman Co.,
914-793-1577, Hilton
Broadcast Foundation Hole in One Golf Tournament Sponsor.
Chuck Lontine,
Marconi Media Ventures, Inc.,
303-382-1000, cell 720-341-4722, [email protected]
www.marconi.cc
Elliot Evers, Media Venture Partners, LLC, 415-391-4877,
[email protected]
Larry Patrick/Greg Guy,
Patrick Communications,
Bellagio, 410-740-0250, [email protected]
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Upped & Tapped
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Continental Electronics Taps one from Harris
Don Spragg joins Continental Electronics Corporation as Engineering Product Manager. His responsibilities will include product line strategy, R&D requirements, research for new and emerging technologies, and new product development program management to include products for the implementation of DRM and IBOC.
Horton hears
a call to VP
Former Emmis and Mondosphere exec Jon Horton has been named a Vice President of Operations at Salem Communications. He'll be overseeing certain Salem radio station in the Northwest and Great Lakes regions and continue work he was already doing as a program consultant for Salem's Contemporary Christian Music format stations.
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RBR Radar 2005
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Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.
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Q2 still soft for Gannett TV
After reporting that Q1 broadcast TV revenues were down 5.1%, Gannett CEO Doug McCorkindale told analysts to expect more of the same in Q2. The automotive sector continues to be a concern - - and not just for broadcast. auto was soft across Gannett's platform - - newspapers and TV in the US and for its newspapers in the UK as well. Of course, TV is being impacted in the US by the lack of political advertising, so he's expecting Q2 TV revenues to be down in the mid to high single digits. RBR observation: Suggest you listen to the audio of McCorkindale when he speaks of forward pacing. The same on what they don't have today compared to last year as Local up and National down. The buzz word and which we anticipate to hear more of during this TV year from operators will be - Volatile. 04/13/05 RBR #73
DirecTV and Chrysler Group join forces in interactive TV ads
A long-term deal allows DirecTV to provide clients with a robust interactive advertising and research vehicle that spans across multiple DirecTV product platforms, such as interactive basic set-top receivers, digital video recorders and the DirecTV Media Center. The program will launch in September. Twentieth Television oversees all ad sales on behalf of DirecTV. As part of the service, DirecTV will perform focus group studies on selected Chrysler Group campaigns, which will help gauge the likelihood of the tactics being successful prior to deployment. In addition, DirecTV will also receive feedback through this analysis, which will aid in its continued ad strategy. The interactive advertising campaigns will be deployed on interactive basic set-top boxes, the new DirecTV DVR, and additional platforms as they become available. 04/13/05 RBR #73
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Delivering results.
For Confidential Placement Contact: Cathy Carnegie, VP, [email protected]
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