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Volume 23, Issue 75, Jim Carnegie, Editor & Publisher
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Monday Morning April 15th, 2006
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Radio News ®
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 Broadcasters fight back
on indecency
The FCC is finally going to have to defend its indecency standard in court. ABC, CBS, Fox, NBC, Hearst-Argyle and the various network affiliate associations filed a slew of appeals late last week in federal courts all over the country challenging several of the indecency rulings the FCC issued last month (3/16/06 RBR #53). Specifically, the TV networks and their affiliates are asking the courts to reverse the Commission's latest position on whether a licensee can be held responsible for a fleeting expletive that airs in live programming. "In filing these court appeals we are seeking to overturn the FCC decisions that the broadcast of fleeting, isolated - - and in some cases unintentional - - words rendered these programs indecent," the networks and their affiliates said in a joint statement. No fines were issued in the cases being appealed because they occurred before the FCC changed its policy in 2004 and decided that the fleeting use of indecent language was actionable. For example, a "Survivor" contestant used a variant of the s-word while appearing on CBS' "The Early Show." Two similar incidents occurred during Fox's broadcasts of the "Billboard Music Awards." Also being appealed is the FCC's citation of ABC for the use of a variant of the s-word on "NYPD Blue" which aired during the post-10 pm "safe harbor" in the Eastern and Pacific Time zones, but before 10 in the Central and Mountain Time zones. In asking the courts to clarify the FCC's authority, the networks and stations said they objected to "growing government control" over programming.
RBR observation: It has been nearly three decades since the US federal courts have ruled in a broadcast indecency case and there can be no doubt that the FCC's standards for what is or is not indecent has been all over the road during that time. In recent years, the trend has been toward an ever more schoolmarms approach, banning programming that wouldn't have gotten any notice a decade ago. But even the ultra-strict standard has been unclear and inconsistent. Why, even Commissioner Jonathan Adelstein noted that the last batch of indecency rulings issued on a single day weren't even consistent with each other. How on earth are broadcasters supposed to know what the standard is when the FCC doesn't? It's high time that the courts got involved. We see two possible outcomes: either the courts find that the whole idea of prohibiting indecency during hours when children might be in the audience is ludicrous in the Internet/cable age and toss the whole law out as a violation of free speech; or the courts find that there's still a valid reason for holding broadcasters to a different standard than other media, but order the FCC to go back and write a clear and coherent standard - - then stick to it. Either way, it will be a great improvement over the current situation.
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Jeff-Pilot conversion rate set
Jefferson-Pilot Corporation was formally merged with Lincoln National Corporation on April 3rd, but it's taken a while to determine the exact cash/stock split to be paid to former Jeff-Pilot shareholders, since more wanted a straight stock swap than there were shares available to fulfill (3/30/06 RBR #63). In the final tally, 93% of former Jeff-Pilot shares elected an exchange for Lincoln National stock at 1.0906 shares per each share of Jeff-Pilot stock. The other 7% all received 55.96 in cash per Jeff-Pilot share - - 2% who elected all cash and 5% who made no selection. Those who asked for all stock will now receive cash for approximately 17.6% of their shares and Lincoln National stock for approximately 82.4% of their shares. Fractional shares will be settled in cash. All in all, Lincoln National will pay 1.8 billion in cash to former Jeff-Pilot shareholders as part of the 7.5 billion bucks merger. Lincoln National says it expects the cash and stock to be distributed on or before tomorrow, April 18th.
 Coming this fall to your market!
Radio stations should be in line for some heavy TV stations promotional spending this fall as two new networks take to the airwaves. Although the CW network, co-owned by CBS and Time Warner, is seen as the successor to both The WB and UPN - - and will carry the best shows from each - - the two current networks are technically being shut down. That frees them from their affiliate contracts. But that also left an opening for News Corporation/Fox to make its own pitch for affiliates for its new MyNetworkTV, which will feature English novelas, following the example of the most popular shows in Spanish TV.
RBR observation: If you haven't already, it's time to start talking to the local TV affiliates of these new networks. They'll need to promote completely new primetime schedules and, in some cases, new call letters and station branding. Don't forget, there are also new opportunities for radio stations to get involved in co-promotional events with these new TV network outlets. Who has already signed up? Here is RBR's comprehensive list of all affiliates announced thus far for both nets.
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Ad Business Report TM
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 Ivanabitch Vodka to donate sales
to firefighter organizations
Ivanabitch Vodka has initiated a national fundraising campaign to benefit national and state firefighters' organizations. The campaign, "Cheers to our Hardcore Heroes," will raise awareness of firefighters through a unique marketing effort in which a percentage of Ivanabitch sales, both on and off premise, will go to national and state firefighters' groups. International Spirits, LLC, importer for Ivanabitch, will donate a portion of Ivanabitch Vodka sales to a fund to be administered by a recognized non-profit organization. The fund will be managed by a board consisting of national firefighter officials and a representative of International Spirits. The idea for the program originated during a conversation between leaders of a firefighters' association in Washington, D.C. and International Spirits CEO Tony Elward. During the meeting, Elward was listening to the association officials trading stories about heroic feats of various firefighters throughout the country. International Spirits launched the campaign in March in Florida, Pennsylvania and Texas. Support for the campaign's theme "Cheers To Our Hardcore Heroes," will come in the form of PR, advertising, web exposure and promotional materials in package stores, bars and restaurants. The company will conduct an aggressive marketing campaign that will include special events, print and broadcast story placement, and sponsorships. Advertising will vary from market to market with the use of print ads and billboards. For bars, restaurants and package stores, the company is producing in-store displays, posters and coupons.
 Targeting baby boomers
Madison Avenue has long considered consumers ages 18 to 49 to be the target of choice, but that may be changing. As a recent New York Times article, "Flower Power in Ad Land," reported, major advertisers - including automotive, financial and packaged goods companies- are reconsidering their fixation on youth. The baby boomers, born between 1946 and 1964 and comprising a market of 76 million, are, once again, rewriting the rules, reported eMarketer. "Those wishing to be successful in the market can't ignore the boomer numbers, the wealth and spending power they have," Pat Conroy of Deloitte & Touche told the Times. "The boomers have redefined every age they've moved through, so there's no reason to believe they will not redefine the stereotypes of what it means to be retired." According to the Pew Internet & American Life Project, while only 34% of Americans age 65 and older go online, over half (54%) of 60-69 year-olds go online, and 72% of 51-59 year-olds go online. The "silver surfers" are coming. For online marketers, the "silver tsunami" is good news but the demographic shift, paired with a rising tide of viruses, spyware and other online dangers, is also a cause for concern. There is a marked, and potentially dangerous, difference in the way younger and older users go about their business online. Pew found that Internet users in their twenties are more likely than those in their fifties and sixties to have traveled far and wide online, trying new things and possibly learning hard lessons about the dangers that lurk on the network. Internet users 18-28 ("Generation Y") are also more likely than those in their fifties to make changes in their online behavior to avoid getting unwanted software programs on their computer. Online threats are real and rising. The Internet Crime Complaint Center, received more than 231,000 complaints last year, up by 12% from 2004. The center also reported that the cost of fraud is rising. Last year, the total reached over 183 million, nearly triple 2004's 68 million in losses.
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| Media Markets & Money TM |
Backyard buy is 3.8M
The paperwork has been filed at the FCC for Barry Drake's Backyard Broadcasting to buy three stations in the backyard of the Sioux Falls, SD market, where it already has five other stations (4/10/06 RBR #70). So, we now know that the check to be paid to Feller Broadcasting, with brokerage commissions to Kalil & Company and Patrick Communications, will be for 3.8 million. As we noted previously, Sioux Falls is no longer an Arbitron-rated market, so the contour overlap rules apply. The maps filed with the FCC show that there are 47 stations in the market created by the contour overlaps, making it OK for a single owner to have eight stations.
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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,
702/765-8300, [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]
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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, Susan Patrick
Patrick Communications, Bellagio,
410-740-0250, [email protected]
Glenn Serafin,
Serafin Bros., Aladdin Hotel,
office 813-885-6060,
cell 813-494-6875, [email protected]
Larry C. Wood,
Wood & Company, Inc., Alexis Park,
office 513-528-7373, cell 513-225-5100, [email protected].
LAWYERS
Gregg P. Skall
Womble Carlyle Sandridge & Rice, PLLC 202-857-4441, Wynn Hotel [email protected]
SALES
Regional Reps Corp.,
Broadcast Sales Representatives,
Stuart J. Sharpe, 216.535.3975, [email protected],
Gail F. Lawing, 404.504.7030
[email protected], |
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| Internet Media Business Report TM |
Researchers analyze point and click behavior
All Headline News reports new research findings suggest that over a third of internet users navigating the web and searchers believe that the results displayed on the first page reveal the top brands in that area. iProspect and Jupiter research conducted a study on search engine user behavior and found the interesting trends in enterprising thought patterns. Of the people surveyed, 62% of users clicked on a result on the first page, with 90% of all users clicking on a result in the first three pages. Robert Murray, the president of iProspect says, "If you're site is not found on the first page - or within the first three pages of search results - you might as well be putting up a billboard in the woods." Murray continues to say that over the last four years the percentage of people clicking on first page results has jumped from 42% to 62%, "They know what they want, and they want to find it immediately, and the majority want to find it on page one." The study is of particular importance to new media managers, and brand managers that want to ensure the best positive investment for online advertising. Murray advocates businesses following a clear path to online marketing; he says "If no one can find it, no one will use it. It will be a wasted investment without a clear search strategy."
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| Entertainment Media Business Report TM |
 New Orleans WWL
now on FM
After Hurricane Katrina, Entercom broadcast WWL on several of its FMs for months as a service to New Orleans and the surrounding communities. Listeners liked hearing WWL-AM on the FM dial, said Entercom: "When we switched the 105.3 frequency to Oldies last month, the outpouring from our listeners was overwhelming. The people of New Orleans want WWL on AM and on the FM band too. And so we respond...starting Friday, you can hear the latest news, talk and sports on The Big 870 WWL-AM and now WWL-FM at 105.3." KOOL 105.3 has now become an internet radio station - available at www.kool1053fm.com
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| Ratings & Research |
 Digital platforms extend radio
beyond the dial
The proliferation of digital broadcast platforms such as Internet radio, satellite radio, HD and podcasting is a testament to the popularity of radio programming. The Infinite Dial: Radio's Digital Platforms a new study by Arbitron and Edison Media Research, explores this expansion of the radio market and its implications for advertisers and media planners. Internet radio is growing rapidly. The monthly audience age 12+ now tops an estimated 52 million; an increase from an estimated 37 million people in 2005. The weekly Internet radio audience also increased 50% over the past year, with 12% of the U.S. population age 12+ (an estimated 30 million) having listened to Internet radio in the past week, up from 8% in 2005. Online radio reaches nearly one in five (19%) persons per week age 18-34 and 15% of persons 25-54. Weekly Online radio listeners are 36% more likely than the average consumer to live in a household with an annual income of more than $100,000.
| Satellite Radio’s reach |
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| One On One |
 Jerry Lee, WBEB-FM President
By Carl Marcucci
(From April's RBR/TVBR Solutions Magazine)
Legendary WBEB-FM (B-101) Philadelphia owner Jerry Lee is being honored this month with the 2006 Hugh Malcolm Beville Jr. Award at the Broadcast Education Association (BEA) welcome reception at NAB2006 Las Vegas. The award from NAB and BEA is presented annually to recognize the memory and life's work of Beville, a broadcast research pioneer. Lee, currently a director of NAB, RAB, The Broadcasters' Foundation, The Advertising Research Foundation, and a member of the National Board of Education Sciences, has long been known as one of broadcasting's leading proponents of quality research. He should know-he probably spends more on it than most stations. Until just recently, B-101 founder and 51% owner was Dave Kurtz. Kurtz brought Lee in as sales manager two weeks before the station went on the air in 1963. But because he couldn't afford to pay Lee his full salary, he gave him 10% interest in the station, which later became 49.99%. After Kurtz passed away in November of last year, Jerry is set to become the sole owner of the AC station via a buyout. B101 will remain the only privately owned FM station in a Top 10 market. Here we ask Jerry a bit about the industry and some of his secrets to success, including being a very lucky man.
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| Engineering Business Report TM |
Radio Systems provides console
to WTWP/Washington Post Studios
The new station's motto is "because there's always more to the story." With that, the Washington Post began broadcasting this month in a unique arrangement with DC's Bonneville Broadcasting Stations. The relationship relies on Washington Post reporters to present breaking stories on-air. Studio consoles and wiring systems are provided by Radio Systems' Millennium Digital broadcast consoles and StudioHub+ CAT-5 wiring solution. The Post's studios are linked to Bonneville's Idaho Ave. studios (the old WTOP) via leased lines, where the signal is mixed and sent to the transmitter plants.
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| Monday Morning Makers & Shakers |
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Transactions: 3/6/06-3/10/06
It was not the kind of week of which broker's dreams are made. There were only seven transactions, for starters (none on the TV side), and three of the seven involved some form of bankruptcy. Ohio, directly or indirectly, accounted for almost all of the value - - Cincinnati has a station on the way, and stations in Columbus and Youngstown-Warren are going to a creditor, amounting to 30M total.
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Total
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Total Deals
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7
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AMs
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8
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FMs
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5
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TVs
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0
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| Value |
32.45M
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| Complete Charts |
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Radio Transactions of the Week
Radio One's WIFE is a Queen-to-be
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TV Transactions of the Week
No action this week
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| Transactions |
2.08M WRAR-FM Tappahannock VA from Rappahannock Communications Inc. (Danny C. Wadsworth) to Real Media Inc. (Richard H.S. Morgan, Jon Michael Stallard, Thomas Eugene Davis, Terry M. Brooks). 1.9M note with initial 17,077 payment due at closing, up to 180K in health insurance over 15 years of note for seller and his family. Duopoly with WNNT-FM Warsaw VA, coming in concurrent deal with related seller. [File date 3/27/06.]
1.58M WNNT-FM Warsaw VA from Northern Neck & Tidewater Communications Inc. (Linwood Wadsworth) to Real Media Inc. (Richard H.S. Morgan, Jon Michael Stallard, Thomas Eugene Davis, Terry M. Brooks). 1.4M note with initial 12,583 payment due at closing, up to 180K in health insurance over 15 years of note for seller and his family. Duopoly with WRAR-FM Tappahannock VA, coming in concurrent deal with related seller. [File date 3/27/06.]
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| Stock Talk |
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US stock markets were closed Friday, April 14th, in observance of Good Friday.
Below are Thursdays closing numbers.
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| Radio Stocks |
Here's how stocks fared on Thursday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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39.25
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-0.01
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Hearst-Argyle
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HTV
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23.76
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-0.22
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Beasley
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BBGI
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13.97
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+0.24
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Journal Comm.
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JRN
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13.71
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-0.07
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| CBS CI. B |
CBS |
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25.48
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-0.51
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Lincoln Natl.
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LNC
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13.71
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-0.07
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| CBS CI. A |
CBSa |
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25.53
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-0.50
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Radio One, Cl. A
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ROIA
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10.27
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unch
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| Citadel |
CDL |
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13.13 |
-0.03 |
Radio One, Cl. D
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ROIAK
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10.31
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-0.05
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Clear Channel
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CCU
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31.73
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unch
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Regent
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RGCI
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4.72
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+0.02
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Cox Radio
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CXR
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14.06
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+0.13
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Saga Commun.
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SGA
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10.02
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-0.05
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Cumulus
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CMLS
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13.40
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-0.11
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Salem Comm.
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SALM
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15.90
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-0.07
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Disney
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DIS
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25.70
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+0.06
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Sirius Sat. Radio
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SIRI
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6.28
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+0.08
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Emmis
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EMMS
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17.93
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+0.02
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Spanish Bcg.
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SBSA
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5.37
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-0.03
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| Entercom |
ETM
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30.01
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-0.24
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Univision
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UVN
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31.59
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-0.22
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Entravision
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EVC
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7.14
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+0.08
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Westwood One
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WON
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16.06
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+0.03
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Fisher
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FSCI
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42.43
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+0.33
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XM Sat. Radio
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XMSR
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28.92
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-0.07
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Gaylord
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GET
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42.93
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-0.23
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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]
On Jon Mandel and Rich Russo's take on HD Radio 04/14/06 RBR #74
Finally! An Ad guy saying HD Radio isn't ready for prime time. Rich Russo's comments are right on the mark. Even if we ignore the technical issues, there need to be receivers of the type people actually use (battery operated) and programming that's taken as seriously as the main/analog channels. We need showbiz on HD2. Otherwise, the one chance we'll have to sell a receiver will be lost to dull programming. In my market a station is promoting HD when you can not buy a receiver within the station's signal and well beyond. They're making a promise on which they can't deliver. Equally important, don't badmouth the hands that feed you. Commercials are part of our programming. In the days of Easy Listening's "commercial free" hours we lost sales because we insulted our sales vehicle. RBR's comment about stations treating HD2 as a separate station is correct and necessary, but nearly impossible. The receivers display HD2 with the main channel's call letters. There has to be a way to identify HD2 and HD3 as completely unique stations. It's hard enough to position our current analog signals to become top of mind. We're sending signals with mixed signals.
Rich Wood
Rich Wood Multimedia
 Publisher note
Friday was part holiday for some but my phones and email were working over time even during the weekend with comments on Jon Mandel and Rich Russo about HD Radio. First - I personally know these two executives and they are stand up. They both have a passion for radio and it shows in their direct perception being reality to them on HD. Now to the comments that came into me and many wanted and respected their names be withheld. Why? They do not want to get the pink slip. Here is a quick over view on many on HD and the biggest problems:
1. Distribution. Too expensive...Period!
2. Content. They (Group owners & CEO's) are into witness protection program. "We can't hurt our AM&FM stations." Problem is the formats currently offered "blow chunks." The world is NOT waiting for sub-formats of your 3 share FM station.
3. You get what you pay for. The big groups are spending NOTHING on content.
4. Overworked PD's are expected to program formats they no nothing, nor care about.
5. The group talkers on HD are also dedicating NO people to this and the perception being reality Mandel and Russo are on the money.
6. When major companies devote an HD division to this problem, radio will see movement.
7. But for now, it's a part time job for everyone in radio.
8. Can anyone Help?
Do not shoot the messenger but the messenger can help. RBR's monthly Solutions Magazine will begin a series on HD Radio. We are not talking technology, marketing, sales, or advertising - Period. We will be seeking the best PD's in the radio business for their input on how to get the content on the air. As a former PD - I have said this for over 30 years - Content is King and Presentation is Queen. Ace up the sleeve is the Delivery. Watch for it in RBR.
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Radio Media Moves
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Management changes
in Chicago
CBS Radio announced a new executive structure for Chicago. Rod Zimmerman, SVP/Market Manager in Chicago and VP/GM of WBBM-AM, has been named GM of Free-FM (WCKG-FM) effective 5/11. WCKG GM Terry Hardin is exiting the station. Peter Bowen, who currently oversees B-96 (WBBM-FM) and serves as DOS for the seven CBS Radio Chicago stations, has been named VP/GM of JACK-FM (WJMK-FM), effective 4/14. Bowen will continue in his role with WBBM. Gabe Tartaglia, GSM of WUSN-FM since 3/04, has been promoted to DOS for the cluster. Dave Robbins will increase his focus on HD initiatives as the national rollout of HD 2 formats continues. He was named Director of Digital Programming, CBS Radio 9/05. This move does not affect his status as VP/GM of WUSN, a position he has held since 3/03. He had oversight of WJMK-FM since 3/04.
New boss in Greenville
Entercom has named Sharon Day Acting Vice president and Market Manager of the company's six-station Greenville, SC cluster. Tom Durney, who formerly held the post, has resigned to pursue personal interests, according to an Entercom announcement.
Citadel board re-filled
Wayne Smith, CEO of Community Health systems, has been elected to the board of directors at Citadel Broadcasting Corporation. He fills the vacancy created when David Checketts because of a conflict as he acquired a radios station in Salt Lake City (4/3/06 RBR #65).
JRN ups three
Jones Radio Networks announced the promotion of two members of their affiliate sales teams, Jessica Sherman and Patrick Crocker, and one member of the executive team, Phil Barry. Sherman will now serve as News/Talk's Vice President of Affiliate Sales and Crocker is promoted to Vice President of Affiliate Sales for JRN, Denver. Barry has been named Group Vice President/General Manager of JRN, Denver. Sherman and Crocker will continue to lead their respective affiliate sales teams, with Sherman based in New York and Crocker based in Denver.
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Stations for Sale
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25,000w FM Station
Low price opportunity, profitable station w. huge upside. Small town, NEast by interstate, county seat.
595K. Lv. msg. @ 781-848-4201 or
email [email protected]
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More News Headlines
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Kia picks Sirius
Kia Motors America announced the selection of Sirius Satellite Radio as its exclusive factory-installed satellite radio provider through 2014. All of Kia's 2009 model year vehicles, available in 2008, will feature Sirius as standard equipment. Kia also will provide customers with three months of complimentary service.
The other Hollander
RBR's story Friday on Chuck Bortnick moving to WFAN-AM New York said he will report to CBS Radio CEO Joel Hollander (4/14/06 RBR #74). In fact, he will report to Les Hollander, SVP/Regional Manager of CBS Radio.
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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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Top Ad Agency Execs Unimpressed by HD/HD-2 Radio rollout
Jon Mandel, Chairman/MediaCom US and Chief Global Buying Officer MediaCom Worldwide, the topic drifted to HD Radio. He's not so sure the latest campaign is going to drive people to the stores: "I think the HD and HD-2 thing is too little, too late. I was in LA earlier this week and heard ads from Tweeter. But other than that, I have never heard anything promoting it; it doesn't really explain what the hell it is, other than no static and no monthly fees. Big $%&@ing deal. Nobody is talking in detail about how I can get all these other formats. What are they, what station is offering what? They're screwing it up." Rich Russo, JL Media's SVP/Director of Broadcast Services tells us HD-2 could have been rolled out a bit better: "HD equals Huge Debacle or Highly Debatable and here's why: It is not ready, so why launch it? The unit is beyond inadequate to say the least and there are numerous flaws with the HD alliance itself.
RBR observation: As we said on 3/23/06, HD-2 formats need to compete with the format variety of satellite. They should be perceived and promoted as the free, viable alternative to satellite in each market, even if some formats don't "test" well yet. Each market's HD-2 channels need to be absolutely refreshing and unique to get (especially) the younger listeners' attention - More details and suggestions see Ad Biz
04/14/06 RBR #74
Entercom fires back at Spitzer
has gone on the offensive against the "corporate payola" lawsuit filed by New York Attorney General Eliot Spitzer. The radio company has filed a motion to have the whole case thrown out of court, arguing that Spitzer hasn't alleged anything that's actually illegal.
RBR observation: Bravo! Someone is finally fighting back at this self-styled national cop who's making the rules up as he goes. As we've demonstrated previously, Spitzer's interpretations of the federal payola law and the FCC's sponsorship identification rule are just plain wrong - - not to mention that he has no authority to enforce them in the first place.
04/14/06 RBR #74
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Affiliate Relations
Talk Radio Network is expanding and we are looking for someone with great phone techniques who is enthusiastic about joining our successful team.
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