RBR's Daily Morning Epaper

Volume 22, Issue 77, Jim Carnegie, Editor & Publisher

Tuesday Morning April 19th, 2005

From the NAB in Las Vegas...

Advertising panel:
Change is coming
"It's a confusing world for everyone," said Television Board of Advertising (TVB) President Chris Rohrs as one of the panelists at NAB2005 on where the advertising business is heading. With new technologies trying to carry ad messages to consumers, advertisers are trying to find the right mix and traditional media, such as radio and television, are figuring out how to use technology to defend their market positions. According to Burtch Drake, CEO of the American Association of Advertising Agencies, the biggest change is that some advertisers are, for the first time, seriously considering national product launches without a TV ad platform as a certainty. Bob Liodice, CEO of the National Association of Advertisers, echoed that view, noting that Pepsi One recently launched without TV as its base. And if TV is no longer a must-have, Liodice predicted that the TV upfront bubble will eventually burst, with advertisers becoming increasingly angry at "significantly rising" rates for declining audiences. One thing that the panelists agreed on is that accountability is increasingly important. Advertisers aren't just looking at CPMs, noted Radio Advertising Bureau CEO Gary Fries, "Today they're looking for ROI." For the first time, Drake said, advertisers are willing to spend money on research to access how to effectively reach consumers and he called Arbitron/VNU's Project Apollo as the first step. Broadcasters are also moving to implement EDI to replace paper with electronic communications for buying and selling advertising. "We really have traction now," Drake said, praising radio and TV for their EDI effort and saying that newspapers and magazines are far behind. "It's going to put money in everybody's pocket," he said of the efforts to make media buying more efficient with EDI.

RBR observation: EDI traction, well maybe but two of the four wheels of the EDI machine are still stuck in the mud according to our high level ad agencies sources that have to work day-to-day with the problem. Radio reps are said doing a better job with EDI as TV rep firms are over heard not moving fast enough with EDI. But we agree EDI and ROI go together so kick in that four wheel drive Radio and TV before you hear that up front bubble go thud like a lead balloon which is the Radio & Television Business Report focus in our May report.

NAB Vegas The funny to start your morning
As HD is the biggie for radio in Las Vegas with group heads standing by a booth as an exhibitor pushing the advantages of technology and fighting all forms of audio entertainment like satellite radio and iPods guess what? The NAB is asking attendees to vote for Innovation in Media awards and to get a vote NAB is giving away – ready? – iPods. Yep, if you registered to attend and gave NAB your email you got their email with the heading: Vote Today, And You Could Take Home An iPod Tonight at NAB2005.

RBR observation: Go ahead laugh and shake your head because we did. First the ‘Heard it First on Radio’ which bombed now NAB gives away the technology that is radio entertainments competitor. NAB would be better off giving away a GM auto with a solid HD radio and probably get more action on the voting. What marketing guru thought this one up?

Radio News®

Infinity/Family: Other shoe drops in 'frisco
The rumors that Viacom's Infinity radio operation was going to wind up with the noncommercial-in-commercial-territory KEAR-FM San Francisco have been percolating for quite a while, and they began to bubble at a brisk simmer once Viacom announced it was selling KFRC-AM to Family Stations Inc. for 35M. Viacom has now made it official - - it'll be getting the 106.9 mHz station for an undisclosed price. The station will be part of a superduopoly cluster which will also include KCBS-AM, KFRC-FM, KYCY-AM, KITS-FM & KLLC-FM. Two San Jose FMs owned by Infinity - - KBAY-FM & KEZR-FM, are being put on the block. Infinity's Joel Hollander explained the deal. "The acquisition of KEAR-FM, coupled with the sale of KBAY and KEZR, strongly enhance our position in San Francisco, the fourth largest radio market in the United States. This move is consistent with our strategy of concentrating on markets where we generate the most revenue and cash flow."

The Zen Bus is filling up
...with radio talent passengers going for a long ride across country. First was 'The Howard Stern Show.' (10/7 RBR #196). Now another biggie just out of orange flannel and new poncho is Martha Stewart who's Omnimedia Inc. has cut the pattern deal with Mel 'Zen Master' Karmazin, CEO of Sirius Satellite Radio. Her program will offer tips on home decorating, entertaining, gardening, kids, pets and weddings, among other domestic topics. Stewart is serving five months of house arrest following a criminal conviction a year ago but is rebuilding her brand name as well as herself and using all media which now includes satellite radio. Expected to be called "Martha Stewart Living Radio," the channel will carry advertising. The four-year programming agreement will provide original programming specifically designed for women listeners and their families. Stewart will be a regular presence on the channel and will be actively involved with program development. The channel is expected to begin on Sirius later this year. Stewart already has two TV shows scheduled for fall broadcast, a daytime cooking show and a reality show, both to be produced by Mark Burnett.

RBR observation: Argue all you want about the pros and cons of satellite vs terrestrial radio but name brands are apart of content in programming language and content is king. Now all radio has to do is see if the presentation will be there. Martha is a name and will bring in ad dollars. Now does National Spot in Radio or TV need another reason for EDI?

DTV transition a political hot potato
Look for Rep. Joe Barton (R-TX) to unveil his legislation to set a firm date for the digital television transition in a couple of weeks - - and he was pushing the idea at yesterday's Congressional Breakfast at NAB2005 in Las Vegas. Barton says that firm date may be December 31, 2006, although he indicated some flexibility on the date - - but he said a 2009 date suggested by Rep. Eliot Engel (R-NY) was too far off. Barton, however, ran into considerable skepticism from fellow Members of Congress on the panel. "We've got to be sure that we don't turn off a lot of television sets in America when we make this conversion," said Sen. Conrad Burns (R-MT). When broadcasters in the room complained that receiver makers are still actively marketing analog TV receivers as Congress is moving toward making them obsolete, some of the lawmakers indicated that they would move for quick legislation to require TV sets to carry warning labels explaining the coming digital conversion which would require a set-top box to continue using the device. On the subject of providing government subsidies so low-income people can get DTV set-top converter boxes, which will be a key element of Barton's bill, there was also disagreement among the lawmakers. Some questioned the potential size of the price tag, there was also talk of smaller subsidies for middle-income people and Rep. Engel called for the local cost of living be taken into account, so people in his high-cost region won't be locked out of the subsidies.

Lawmakers stand firm on indecency
If there was agreement on anything at the NAB2005 Congressional Breakfast, it was that all of the politicians on hand were committed to backing a crackdown on broadcast indecency and higher fines. The only real point of contention was whether to extend the indecency rules to cover cable and satellite programming as well. "That's where Sen. [Ted] Stevens (R-AK) part ways," said Sen. Conrad Burns (R-MT), who chairs the Telecommunications Subcommittee of the effort by the Commerce Committee Chairman to expand indecency enforcement by the FCC. The lawmakers seemed to be deaf to broadcasters' arguments that the FCC isn't doing a good job now and is constantly making its indecency definition a moving target for broadcasters. Rep. Fred Upton (R-MI) insisted that the Commission has been "reasonable" in its enforcement, citing its decision that "Saving Private Ryan" was not indecent, despite its repeated use of the f-word.

RBR observation: It's just incredible how out of touch with reality these guys are. The FCC "reasonable" on its indecency enforcement? Never mind that the "Saving Private Ryan" decision was completely at odds with the Bono decision of just a few months earlier. Congress is going to be absolutely no help in straightening out this mess. In fact, it's likely to make things worse. Broadcasters will have to rely on the courts to eventually bring some sanity to indecency enforcement.

Eddie says goodbye
"It's been an honor and a privilege to serve this great organization for so many years," said Eddie Fritts in what's likely to be his final address to an NAB Convention as President and CEO. As he prepares to depart, Fritts said broadcasters are facing four major issues. He said a congressional re-write of the 1996 Telecommunications Act has the potential to reshape every communications company. "Make a mistake and the stakes are really high," he said. Speaking shortly after Rep. Joe Barton (R-TX) pressed for a December 31, 2006 firm date for the conversion to digital television, Fritts warned that such a move could leave millions of Americans without television. On a brighter note, he said HD Radio will provide new opportunities for terrestrial broadcasters - - and he called on reporters to stop buying the hype from XM and Sirius and investigate what HD Radio will mean for consumers. On the indecency front, Fritts said industry self-regulation is preferable to government regulation. However, if Congress does act, he asked "does it make any sense for cable and satellite to get a free pass?" Despite retiring from the NAB, Fritts said "my laboring days are not over," so expect to see him involved in the business for many years to come. "I'm just happy that I'm not on the search committee to replace this guy," said NAB Distinguished Service Award winner Lowry Mays, Chairman of Clear Channel Communications, as he joined in praising Fritts for his 23 years of leading the NAB. Fritts received two standing ovations from the appreciative crowd - - in addition to the one he'd received the previous night at the NAB Leadership Dinner.

RBR observation: Of course, the sport at this year's NAB Convention is guessing who will succeed Fritts. The NAB Board's search committee has only recently hired a professional search firm, so it's still very early in the process. There are two names heard most often: Viacom lobbyist (and former NAB board member) Marty Franks and Disney lobbyist Mitch Rose (a former Capitol Hill staffer). There's also speculation about two NAB insiders: Susquehanna Media CEO David Kennedy (the immediate past joint board chairman) and Citadel Communications CEO Phil Lombardo (the current chairman). They appear to be long shots, since TV Board members would be unlikely to back Kennedy from the radio side and Radio Board members would really fight against Lombardo. It will most likely take six months for this search to be complete and the clock is ticking. Our observation: Bring in young blood in the demo of 48 years of age. Someone that can go the marathon distance not a short sprint because the race is just beginning as radio and TV are already a little behind the pack.

IN lawmakers help reporters wield a shield
A pair of Indiana Republicans, Rep. Mike Pence (R-IN) and Sen. Richard Lugar (R-IN) took to the OpEd page of the Washington Post to push for their bipartisan shield law, which would set national standards by which to measure a reporter's right to protect confidential sources. The measure is called the "Free Flow of Information Act, or Media Shield Law, and it's being introduced with Democratic co-sponsorship in each house - - Chris Dodd (D-CT) is performing that function in the Senate, with Rick Boucher (D-VA) signing on the dotted line in the House. Pence and Lugar are concerned with the high number of recent incidents in which reporters were threatened with jail time for refusing to reveal sources. "Compelling reporters to testify, and in particular to reveal the identity of their confidential sources, hurts the public interest. Many whistle-blowers will refuse to come forward, and reporters will be unable to provide our constituents with information they have a right to," they wrote. Explaining what the bill will and will not do, the pair said of the law, "It simply gives journalists certain rights and abilities to seek sources and report appropriate information without fear of intimidation or imprisonment, much as, in the public interest, we allow psychiatrists, clergy and social workers to maintain confidences."

Adbiz©

Zenith Optimedia: TV ad spend to peak in 2006
25 years of TV ad growth is expected to peak in 2006 before broadcast networks begin losing market share to the Internet and other emerging forms of advertising, according to a report released yesterday by Zenith Optimedia. The study predicted that television's share of the estimated 417 billion global ad market will begin to fall in 2007 as advertisers steer more of their marketing dollars to the web. The report concluded that the robust global ad market of recent years will continue. The estimated decline in television advertising as a percent of total market share will peak at 37.9% in 2006 and drop to 37.8% in 2007. This, after years of steady growth in television advertising since at least 1980. However, as a percent of the total ad market, the Internet's share should increase from 3.6% in 2004 to 4.4% in 2007, Zenith Optimedia found.

Product placement
garners more attention
The ever-increasing incidence of real goods and services being woven into the plotlines of fictional entertainment, and into the fabric of reality programming, is getting more and more notice. Nicole E. Rogers of the Wisconsin State Journal has recently invested some ink on the topic. She notes the obvious - - commercial zapping is becoming a huge problem, and marketers are using placement as the cure. The goal of marketers: "Make the product the star, without being obvious about it." The use of the technique in reality programming is rampant. She notes that "The Apprentice" is practically a one-hour ad, with the contestants all working on projects for a particular company. She notes that often these projects revolve around new product launches. Is this technique going to burn consumers out? She speculates, "It's hard not to be cynical about being a subject of marketing at every turn; harder still not to be annoyed when advertising seeps into the content of your favorite show."

RBR observation: Rogers' advice - - vote with your wallet. If the product annoys you, don't buy it. Back in the days before "Do Not Call," we used to inform telemarketers that if I did plan on purchasing a good or service they were pitching, their phone call just guaranteed we would be getting it from a competitor. Annoying ads? We vote against them, too. To this day, we have never bought so much as a milliliter of Wisk (we also have a long memory). But the rest of you have to help us out.

May - Radio & Television Business Report
The First Real Monthly Business Media Magazine

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 in May is Sold Out. Reserve your Marketing space for the June issue... Advertising space is limited, contact:

June Barnes [email protected]
Jim Carnegie [email protected]

Media Markets & MoneyTM

A look at the new Connoisseur
Jeff Warshaw sold the bulk of his first radio group to Cumulus for 242M in a deal announced in December 1999. With the help of broker Michael Bergner, he has come back with a deal for KTCM-FM Kingman KS, which is part of the Wichita KS market. The station, coming for 1.7M from Maria Salazar, will actually form a duopoly with an as-yet-unbuilt station earmarked for construction in Augusta KS on 100.5 mHz. He acquired that station with a winning bid in last fall's FM Auction No. 37, along with nine others. It looks like all of his stations will be, at worst, within easy driving distance of established Arbitron markets. Here's a closer look.

* 107.7 mHz Pacific Junction IA: the town is just down the Missouri River (or I-29 if you don't have a boat) from Omaha-Council Bluffs.
* 105.9 mHz Patterson IA, 96.3 mHz Pleasantville IA: Both stations are in the Des Moines area.
* 97.9 mHz Heyworth IL, 10.7 mHz Normal IL: Both stations are in the Bloomington market.
* 105.9 mHz Joliet MT, 106.7 mHz Lockwood MT: Joliet is a few miles southwest of Billings, and Lockwood, for all intents and purposes, is part of Billings.
* 102.7 mHz Box Elder SD: Part of the Rapid City market.
* 97.9 mHz Kenova WV: Part of the Huntington WV-Ashland KY market.

Washington Beat

Pay-for-say: Not illegal, but not smart, either
The inspector general of the Education Department has filed a report on the infamous 240K contract between that department and pundit Armstrong Williams to plug No Child Left Behind. The deal was said to be legal, but entering into it was a poor decision, and would-be whistle-blowers were ignored. The incident took place on the watch of former Education Secretary Rod Paige, who has since departed. His replacement, Margaret Spellings, agreed with the report's characterization of the deal as being ill-advised. She said who would adopt the recommendations made in the report. According to the Associated Press, this round of inquiry focused strictly on the implications of the contract between the Department of Education and Williams. A look into propaganda implications of the arrangement by the Government Accounting Office is still under way.

Programming

NPR to offer five music services
for supplemental channels
This summer, NPR will begin offering five programmed music formats to HD Radio multicasting stations: classical, jazz, electronica, triple-A and folk. Other program offerings NPR is developing for stations with new channels include a news and information service and formats that would serve culturally diverse audiences. "Digital radio is the biggest innovation in radio since Armstrong invented FM in 1933," said Mike Starling, NPR's vice president for engineering and operations, and the father of the Tomorrow Radio initiative. "Public radio looks at multicasting with HD Radio as more than just a new technology. It's a creative, cost-effective way to extend our public service at a time when demand for public radio is greater than ever. We want to offer better and more choices for our listeners. That's why NPR and public radio are making such significant investments in multicasting technology." 24 NPR member stations will begin multicasting in 2005. NPR has also established a Multicast Receiver Team, comprised of seven NPR member stations: WOSU-FM, Columbus; WUSF-FM, Tampa; WFAE, Charlotte; WNYC New York Public Radio; Chicago Public Radio; Northern Indiana Public Radio; and Colorado Public Radio. The team is holding detailed conversations with selected receiver manufacturers, aimed at a nationwide multicast receiver initiative for public radio listeners.

Engineering

Citadel joins the HD Radio bandwagon
iBiquity Digital and Citadel announced at NAB that the 6th largest radio group will join the coalition of broadcasters that recently announced accelerated plans to convert AM and FM stations to digital HD Radio technology. Citadel plans to convert 60 stations to HD Radio over the next three years. "This is an investment that will significantly enhance the listener experience with traditional radio," said Farid Suleman, Chairman and CEO, Citadel Broadcasting Corporation. "The digital experiences offered by HD Radio - superior sound, the ability to multicast additional content on FM stations and data that can be displayed on receivers - will allow us to continue producing the best entertainment possible for consumers."

HP and Infinity offer "Visual Radio" cell phones
HP and Infinity announced they will work together to deploy Visual Radio to U.S. listeners. Developed by Nokia and offered by HP, Visual Radio adds a new dimension to FM radio with interactive content and services for mobile listeners. Visual Radio allows listeners to tune in to local FM radio via their mobile phones while simultaneously receiving interactive information and graphics that are synchronized with the broadcast. Text and graphics are delivered via the cellular network onto the screen of the mobile handset. Adding to their listening experience, users can view the title and artist of a song playing, check upcoming concert dates, purchase ring tones or other content from the artist, and participate in radio station promotions. For radio station operators, Visual Radio can increase listener loyalty and advertising revenue. For mobile carriers, Visual Radio provides an opportunity to increase data services usage and revenue, as well as average revenue per user. Carriers provide the delivery of digital content and services to their customers. They bill their customers for data traffic and additional content and interactive services purchased by Visual Radio users. Radio stations create all the Visual Radio content provided in the parallel channels synchronized with their existing radio broadcast.

Transactions

3.75M KMYL-AM Phoenix (Tolleson AZ) from Interstate Broadcasting of Arizona II LLC (Paul Toberty) to New Radio Venture LLC, a subsidiary of HM Communications LLC (Maria Elena Llansa, Heberto Lima-Villers) and Susquehanna Radio Corp. (David E. Kennedy). 200K escrow, balance in cash at closing. [File date 3/21/05.]

2.6M WJZE-FM Toledo (Oak Harbor OH) from Rasp Broadcast Enterprises (Daniel J. Haslinger) to Urban Radio Licenses LLC (Kevin Wagner). 130K deposit, balance in cash at closing. Duopoly with LMA of WIMX-FM Gibsonburg (lic. to Riverside) Broadcasting Inc., LMA since 2/1/00). Urban replaces Clear Channel Communications in this deal, which dates to 7/28/00. Clear Channel has had JSA with WJZE since 7/20/00. Station will be flipped to some form of Urban format at earliest opportunity. [File date 3/21/05.]

Stock Talk

Entravision, Regent and Salem saved the day, upping the RBR Radio Index .155 to 209.715. This, as the Dow took yet another slip after last week's big slide. US blue-chip stocks fell for a fourth consecutive session on Monday, weighed down by a 6% tumble in bellwether 3M.

Radio Stocks

**Here's how stocks fared on Monday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		42.50	-0.25	Jeff-Pilot	JP		47.71	-0.20
Beasley	BBGI		15.31	-0.29	Journal Comm.	JRN		16.65	-0.11
Citadel	CDL		13.29	-0.01	Radio One, Cl. A	ROIA		13.41	+0.11
Clear Channel	CCU		32.79	-0.32	Radio One, Cl. D	ROIAK		13.42	+0.08
Cox Radio	CXR		16.11	-0.29	Regent	RGCI		5.81	+0.24
Cumulus	CMLS		13.55	+0.05	Saga Commun.	SGA		15.11	-0.08
Disney	DIS		26.94	-0.43	Salem Comm.	SALM		20.23	+0.78
Emmis	EMMS		17.06	-0.56	Sirius Sat. Radio	SIRI		5.08	-0.07
Entercom	ETM		32.75	-0.63	Spanish Bcg.	SBSA		8.92	+0.05
Entravision	EVC		8.50	+0.22	Univision	UVN		26.00	-0.32
Fisher	FSCI		50.43	-0.07	Viacom, Cl. A	VIA		34.16	-0.12
Gaylord	GET		39.26	-0.05	Viacom, Cl. B	VIAb		33.96	-0.16
Hearst-Argyle	HTV		25.04	-0.11	Westwood One	WON		19.75	-0.15
Interep	IREP		0.49	-0.07	XM Sat. Radio	XMSR		27.19	-0.31
International Bcg.	IBCS		0.01	unch	-	-	-	-	-

__UNSUB__ to this email service.

Bounceback

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

Nielsen comments
on latest DCUO story

Jack Loftus, SVP/Communications, Nielsen Media Research, had a couple of points for our readers to consider, responding to our story (4/14 RBR #74) on Don't Count Us Out Coalition member Gil Casellas arguing there is a public interest with regard to content, and that there is no place to go when disputes arise between broadcasters and Nielsen.

Said Loftus:
1. I think this is the first time someone affiliated with DCUO said "content" is a "public interest" issue. Wow! So DCUO is pushing for TV content regulation? I think someone at Glover Park needs to edit the scripts more carefully.

2. On the different subject of Nielsen, Casellas says if there is a dispute "there's really no place to go." Not so. First DCUO went to the FTC and were told to get lost. But if they really think something is wrong, they can go to court. Now that would be a show worth watching.

[Editor's Note: DCUO is the political action wing of News Corp. News Corp is furious at Nielsen for introducing local people meters into markets where Fox TV has O&O stations, because the meters show their audiences declining. Now, a year after its founding, DCUO argues the problem has nothing to do with Fox. It's a "civil rights" issue. If only other broadcasters were as adamant as Fox/DCUO on this point, we could see it as a potential real problem. But so far, we just don't see it.]

NAB Daytime Planner

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]

Upped & Tapped

Westwood One
names Kosann,
Bortnick Co-COOs
Westwood One announced the appointment of Peter Kosann to Co-Chief Operating Officer, responsible for all of the company's network operations including Programming and Affiliate Sales, and will continue to oversee radio Ad Sales for the Westwood One network and Metro Networks. The company also announced today the naming of Chuck Bortnick to Co-Chief Operating Officer. In his expanded role, Bortnick will be responsible for all of the Company's Metro Networks Operations, Metro Television Operations; and SmartRoute Systems, as well as new business development and acquisition integration.

New PD at
Greater Media's
WBOS in Boston
Dave Douglas nod as the new Program Director of WBOS-FM/92.9 in Boston. Douglas's past experience includes serving as Program Director at WAAF in Boston, KISW in Seattle and KGB in San Diego.

More News Headlines

Seminars to take dollars from newspapers

NAB takes CEA to task
for digital delay

AP board gives approval to new online licensing fee

RAB and Media Monitors to present sales training sessions

Rusty Humphries Show goes on the road to Iraq & Kuwait

TVBR - TV News

Are you ready for a Football Move
No surprise, 03/28/05 TVBR #61 , Of Monday Night Football after 35 years on ABC the ball gets snapped and the play goes to ABC's - ESPN cable under an eight-year agreement between ESPN and the National Football League. Disney is said to be paying the NFL around 1.2 million yearly for the broadcast rights or twice as much as ABC network paid which was around 550 million a year. The new agreement calls for 17 regular-season Monday night games per season on ESPN -- featuring a new 8:30 p.m. ET telecast time (8:40 p.m. kickoff) -- plus four pre-season contests. It also includes rights across a wide variety of ESPN television and other assets, including the highly rated NFL PrimeTime program; the NFL Draft, which ESPN has covered since 1980; NFL Live; ESPN HD; ESPN Deportes; NFL Films programming; fantasy, ESPN Mobile, video game and data feed platforms, and more. NBC is back in the NFL after six years away as they took the old Sunday night games from ESPN to the tune of around $600 million a year over six years which is good for NBC affiliates. Over all the NFL will bank around 1.1 billion over the next eight years beginning with the season. On the sidelines just watching the games will be ABC and their affiliates. TVBR observation: OK, the wait is over now ABC get down to programming business and focus on content and presentation marketing with your affiliates. We have said this before we will say it again, NBC will most likely drop American Dreams 04/05/05 TVBR #67 and this would be an excellent youthful move by picking it up.

RBR Radar 2005

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

Hostile bidder targets Interep
Oaktree Capital Management already owns over 2% of the stock of Interep and owns more of the radio rep firm's public bonds, but it wants more - - it wants control of the company and the ouster of founder and CEO Ralph Guild. After being rebuffed in its approach to Guild and the board of directors, Oaktree went public after the market closed on Friday, releasing a letter it sent to each Interep director urging a financial restructuring and claiming that Guild is "in a state of denial" regarding Interep's financial condition. It also charged that Guild is overpaid - - noting that his 1.1 million in annual compensation amounts to 15% of the company's current market capitalization - - and receives perks that create "an aura of extravagance." It also questioned why a 76-year-old has a contract running for another seven years, inferring that a younger CEO is needed to rebuild the company.
RBR observation: Ralph Guild has learned the hard way the downside of being a public company. With its stock price in the tank, it's not surprising that a vulture capital firm is making a play for Interep. But with Guild and company employees owning more than 70% of Interep's stock, it's hard to see how Oaktree could pull off what is essentially a hostile takeover bid. This now-public dispute with a major bondholder is going to be another distraction as Interep tries to get its financial house in order, sell more advertising and get back to profitability. Guild and his upper management have to rethink an entire business strategy and put together a solid business plan that brings a little radio rep firm into the 21st century. In other words not just selling national spots as Interep will have to think 2010 but deploy the action in 2005 or the outlook for 2010 is not pretty as the world is moving fast and its rep competitor of Clear Channel's Katz-Media is a bigger animal with more resources. Time to plan your work and work the plan as time is never on anyone's side it just keeps ticking. 04/18/05 RBR #76

Final word: No Nielsen role in Houston PPM test
After months of negotiations over whether Nielsen Media Research would take part in the Portable People Meter (PPM) test that Arbitron has already begun deploying in Houston, the final decision came down Friday: no. Arbitron says that with the PPM test already ramping up, by the time Nielsen could make a decision on whether to join in, the test would already be up and running and generating ratings data. So, Arbitron says it has withdrawn its invitation for Nielsen to participate in the Houston test. Instead, according to Arbitron, Nielsen will now focus its PPM a more detailed examination of the PPM's audio detection capabilities (since all data collection is based on audio encoding) and on the business, research and financial issues of a potential PPM joint venture with Arbitron.
04/18/05 RBR #76

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