Volume 21, Issue 78, Jim Carnegie, Editor & Publisher
Wednesday Morning April 21st, 2004

Radio News ®

Journal Communications, looking ahead
Executives at Journal expressed optimism that incremental growth patterns they see are indicative of a recovering economy. That will, of course, be a key factor in the company's performance going into the future. It will continue to benefit from a robust political advertising season, and is also benefiting from revived activity at the local level. | Full Story Click Here |

Dickey applauds indecency crackdown
Cumulus Media Chairman/CEO Lew Dickey is all in favor of the full-bore FCC on broadcast indecency, according to an article in the Atlanta Business Chronicle. Dickey told the Chronicle, "You are seeing a reaction by the FCC that is long overdue, The decency standard has been overlooked for a long time." RBR observation: Dickey also took the opportunity to take his shot at mega giants by stating: ".. at a time when broadcasters are racking up record fines, especially industry giants Clear Channel and Viacom, Cumulus sports a record that is squeaky clean." The water is very muddy right now but the first concern is to the Constitution and the First Amendment. Don't need to get into the Wall Street side yet but soon come. We first say, Hello... Naples, FL is Calling!
| Full Story Click Here
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Arbitron Q1 revenues up 7.3%;
Houston PPM test still a "go"
For Q1 '04, Arbitron reported revenue of $76.6M, an increase of 7.3% over $71.4M in Q1 '03. Costs and expenses in Q1 increased by 7.7%, from $40.2M in 2003 to $43.4M in 2004. Earnings before interest and taxes (EBIT) for the quarter were $31.9M, compared with EBIT of $29.9M during Q1 last year. RBR observation: Agencies and advertisers are demanding greater accountability, and PPM is the biggest potential leap forward for radio. We hope Cox and Radio One will change their minds about not participating in the Houston tests-they can bring a lot to the table when these tests are launched. But probably not since you have to look at PPM and then look at what radio signals are the best to reach that meter. RBR did learn from last weeks TVB conference that TV too and Nielsen have very little love over progress with a meter and accountability.
| Full Story Click Here
|


"60 Minutes" gets FCC indecency complaint
from familiar face
Attorney John Thompson, whose complaints about Howard Stern helped garner Clear Channel's ($495K) and Infinity Broadcasting's recent fines, has faxed a complaint to the FCC over last weekend's 60 Minutes airing, where singer Mary J. Blige uttered an utterly indecent "sh*t." Thomson, after hearing about the item on WIOD-AM Miami's "The Schnitt Show," sent the complaint to FCC Chair Michael Powell, saying it was a repeat airing and that CBS had two chances to edit it out but didn't. The complaint was specifically lodged against CBS-owned WFOR-TV Miami and all other CBS TV stations. From Thompson's complaint: "This constitutes a violation of FCC-enforced decency standards, just a surely as does Bono's use of the word "f*cking" on the primetime telecast of the 2003 Golden Globes." RBR observation: OK, here's the test-will the FCC actually start treating TV with the same malice as radio, or give another get out of jail free card as with Bono? We have a complaint coming from the same person over a similar event-that aired twice!

Politicos spending early and often
President George W. Bush, all by himself, spent $50M on political advertising during the month of March, according to the Associated Press. This report comes after a much-earlier Brookings Institute assessment putting his spending at $30M, which was in and of itself considered extraordinarily high. | Full Story Click Here |


From the NAB...

Fritz staying; Trouble brewing
on NAB board
NAB President Eddie Fritts says there's no truth to rumors we reported yesterday that he's set to step down. But conflicts in the NAB board that apparently led to such rumors are heating up and could lead to a bitter re-election battle for Joint Board Chairman Phil Lombardo at the June board meeting. Fritts says "I'm still young and vibrant." The brouhaha is around Fritts' contract which he personally expects to be renewed. Lombardo told RBR that he is not seeking Fritts' ouster. "I'm negotiating his contract renewal." Lombardo also said he expects to run for re-election as Joint Board Chairman and expects to win. A few radio board members feel other wise like Regent Communications President Bill Stakelin, who years ago held the same post inside NAB, was blunt, "There is a lot of concern that his (Lombardo) Neanderthal ways are hurting the association. RBR observation: Contract negotiating is appropriate but Neanderthal ways? Some board members were unwilling to speak on the record, but it's clear that there is a split - - not strictly between radio and TV, but with the pro-Lombardo, anti-Fritts faction almost exclusively on the TV Board. No candidate has yet emerged to challenge Lombardo for the Joint Board Chairmanship, but it is clear that dissatisfied directors are going to come up with an alternative by the June meeting. Other than that what would you expect after all it is an election year. | Full Story Click Here | RBR Observation |

Commissioners defend indecency crackdown
Speaking at two NAB2004 sessions yesterday, first Chairman Michael Powell and then the other Commissioners defended their recent crackdown on broadcast indecency. And while renewing calls for broadcasters to bring back a voluntary code of conduct, the five Commissioners indicated that regardless, they will continue to strictly enforce the legal ban on broadcast indecency. | Full Story Click Here |

Big money lining up for TV deals
Radio may be tough for venture capital firms to enter with new broadcasting companies, but there are still plenty of deals to be done in television, panelists said yesterday at NAB2004 in Las Vegas. The problem, though, is the spread between what buyers want to pay and the multiples that sellers are still seeking.
| Full Story Click Here
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Conference Calls, Q2 2004

Hot political category fuels Journal journey
Multi-media Journal Communications cited a number of factors which helped it produce a 26% gain in net earnings (Q1 2004 vs. Q1 2003). Among them were a successful cost-containment program, improving local revenues and a unexpectedly robust collections in the political category. | Full Story Click Here |

Confer confirmation strikes back
Another company has announced a time and date during which it will confab with analysts, shareholders and other interested parties to discuss Q1 2004 revenue results. This time, it's Hispanic radio specialist Spanish Broadcasting System Inc. The date is Wednesday, 5/5/04, and the time will be 11:00 AM Eastern. Now for the "strikes back" part, which involved Jefferson-Pilot, which will have a lot to say about its insurance business, along with a few crumbs directed at those of us looking for broadcast trends. They will hold forth as planned the Wednesday prior to the SBS session, 4/28/04, but have decided to move the time back an hour. Originally pegged for a 9:00 AM start, the teleconference will now kick off at 10:00 AM Eastern. As usual, RBR will be tuned in so you don't have to.


Adbiz ©

ANA publishes study on client-agency relations
Released a benchmark study on client-agency relations. The research, which included both clients and agencies, is designed to help both parties understand best practices that make their "marriage" work. The survey of more than 100 major advertisers revealed that: * Advertisers want agencies that are responsive (95%) and provide outstanding service (95%). This is consistent regardless of type of industry or size of company. * The top three attributes advertisers want from their agencies are effective campaigns (56%), outstanding ideas and implementation (40%), and strategic counsel and insights (35%). RBR observation: In short it is called accountability and the real McCoy. For complete details and knowledge take a click. | Full Story Click Here |

AHAA releases Hispanic ad spending by company
In preparation for its semi-annual conference in Miami this week, the Association of Hispanic Advertising Agencies (AHAA), in association with TNS Media Intelligence/CMR, has released a comprehensive ranking of Hispanic ad spending by marketer. The top three on the list are P&G, Sears and GM, which spend between 5.2% and 21.1% of their ad budgets targeting Latinos. RBR observation: Top 20 advertisers in US Hispanic market chart is worth the printing out since the information is based on TV & Print, Jan-Sept. 2003. | Full Story Click Here |

Interep and Advertising.com
announce partnership
Interep and Advertising.com announced a strategic marketing partnership designed to provide integrated online and radio-based campaign solutions with measurable ROI for advertisers. Interep will work with Advertising.com, a results-driven interactive marketing services provider for interactive advertisers and publishers, to deliver the joint offering. Says Marc Guild, President of the Interep Marketing Division: "Through this type of integrated radio/Internet campaign, we can optimize results by altering format, site, daypart - even day of the week - while providing advertisers with documented ROI data." He added, "Radio and the Internet are highly complementary media. Radio's ability to drive consumers to a website and build awareness is the perfect match to the Internet's ability to deliver highly targeted, addressable messages and complete the sale."


Media, Markets & Money tm

Crawford soups up in Birmingham
Donald Crawford's Kimtron Inc. is getting a fifth station in the Birmingham market, adding a third FM and taking a double duopoly cluster up to superduopoly status. It's getting the Catholic-programmed station from Queen of Peace Radio Inc. The station is WQOP-FM, a 92.5 mHz Class A out of Dora AL. It's been operating as an affiliate of the EWTN Radio Network. Crawford is getting it in a $1.15M cash deal. It'll pair up with two AM/FM combos, religious-formatted WDJC AM & FM and News-Talk-formatted WYDE AM & FM. Queen of Peace, headed by J. Christopher Williams, obviously intends to stay in the biz, since the WQOP calls are not part of the deal, and in fact, Williams isn't done with them yet. He's using them on his Atlantic Beach FL AM station in the Jacksonville market. He also retains WMCJ-AM, just up the road from Birmingham in Cullman.


Washington Beat

BCFM looks at taxing times ahead
April 15 is over, which in the opinion of the Broadcast Cable Financial Management Association (BCFM), makes this the perfect time to consider your tax plans for the next cycle. In particular, BCFM proposes to look at the implications for companies operating in numerous states. "Consolidated State Tax Returns - - for Better or Worse" is the title of the organization's next Distance Learning Seminar, scheduled for teleconference attendance 4/27 from 4:00-5:15 Eastern. BCFM President/CEO Mary Collins said, "Filing your state tax returns as a combined or consolidated group is a big-dollar decision for station group owners and cable MSOs, along with other companies that receive revenues in multiple states. Our expert presenters for this topic will explore the unique factors that should influence a media company's filing decision and the changes that this shift may require for their tax departments." Deloitte & Touche partners Greg Bergmann and Glenn Kelly are the experts who will be running the April show.


Sales

From RBR's March Solutions Magazine:
Is rate cutting a problem in your market?
Says Chet Tart, Palm Beach Broadcasting's WRMF-FM West Palm Beach (and SM Elizabeth Hamma):
I would say stations meeting Cost Per Point is absolutely a problem. In other words, we just had a piece of business that was a ridiculously low CPP. We're not getting it, and they're placing it in the marketplace on equally strong stations. Sometimes it's the clusters, and both Infinity and Clear Channel are utilizing their clusters. They're absolutely selling at a CPP that this market should not be sold at.
| Full Story Click Here
|


Transactions

$9,000,000 KDUT-FM Salt Lake City (Randolph UT) from Millcreek Broadcasting LLC (Bruce Buzil) to Bustos Media Holdings of Utah LLC (Amador S. Bustos). $1M deposit, $M cash at closing, $3M note. Includes non-compete. Duopoly with KOTB-FM Evanston WY, which is coming in deal with same seller. LMA since 3/9/04. [File date 3/19/04.]

$700,000 KPTL-AM Reno NV (Carson City NV) from Casino Radio LLC (Harold D. Holder Sr.) to The Evans Broadcast Company Inc. (Jerry & Leslie Evans). $15K deposit, $35K escrow, $300K cash at closing, $350K note. Combo with KGVM-FM Gardnerville-Minden NV. [File date 3/19/04.]

$1 KADU-FM Hibbing MN from JPI Radio Inc. (Jarel Pittman) to SGM Radio Inc. (Steven Drees, Karri Drees, David Miller). Cash. Station is noncommercial. [File date 3/19/04.]


Stock Talk

Look out belowwwwwww.........
Today was a day during which most radio companies seemed to be in the Rock business, since that's what their stocks were dropping like. Out of 29 issues followed by RBR, 19 were on the down side. And they tended to go down a lot, as opposed to the handful of companies which managed to add a dime or two to their per-share valuations. Journal, on the strength of a very favorable Q1 earnings report, was able to buck the trend as far as not losing value goes; however, neither did it go up. But treading water was a good thing on a day like this.


Radio Stocks

Here's how stocks fared on Tuesday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

$38.80

-$0.55

Jeff-Pilot

JP

$52.78

-$0.89

Beasley

BBGI

$17.11

-$0.89

Journal Comm.

JRN

$19.38

unch

Citadel CDL $18.58 -$0.47

Radio One, Cl. A

ROIA

$19.95

-$0.05

Clear Channel

CCU

$43.37

-$0.58

Radio One, Cl. D

ROIAK

$19.91

-$0.08

Cox Radio

CXR

$22.42

+$0.10

Regent

RGCI

$6.66

-$0.34

Cumulus

CMLS

$21.61

-$0.10

Saga Commun.

SGA

$18.86

-$0.44

Disney

DIS

$24.80

-$0.16

Salem Comm.

SALM

$30.00

+$0.18

Emmis

EMMS

$24.96

+$0.10

Sirius Sat. Radio

SIRI

$3.80

-$0.18

Entercom

ETM

$47.74

+$0.26

Spanish Bcg.

SBSA

$9.39

+$0.22

Entravision

EVC

$9.24

-$0.16

Univision

UVN

$35.41

+$0.31

Fisher

FSCI

$49.01

-$2.12

Viacom, Cl. A

VIA

$40.18

-$0.80

Gaylord

GET

$30.17

+$0.32

Viacom, Cl. B

VIAb

$39.90

-$0.95

Hearst-Argyle

HTV

$27.16

-$0.20

Westwood One

WON

$31.64

-$0.48

Interep

IREP

$2.00

-$0.12

XM Sat. Radio

XMSR

$27.49

+$0.09

International Bcg.

IBCS

$0.03

unch

-

-

-

-


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More News Headlines

Upped & Tapped

Arbitron promotes two to VP/National Radio
Arbitron announces Brad Kelly and John Snyder have been promoted to VPs, National Radio Sales. They'll be responsible for providing services to group clients. Both executives will be based out of Arbitron's Columbia, MD office. Kelly will also continue to serve as Arbitron's rep to many Wall Street investment firms interested in learning how our services can better inform them about the radio marketplace. Snyder continues to be highly instrumental in demonstrating the value of PPM to Arbitron's radio clients.

Journal puts Donovan
in charge of Tucson
Michael Donovan has been named VP/GM of Journal Broadcast Group's four-station Tucson cluster, effective 5/5. Donovan comes from Cumulus, where he managed its Eugene, OR cluster.

Westwood ups
Tessler, Delany
Westwood One named Bart Tessler, pictured, SVP/Network News/Talk Programming, responsible for overseeing the production of all network news and talk format programs. Tessler will continue to be based in the company's DC office. He was upped from VP/News Programming. In addition, Westwood named Kevin Delany Director of Network News/Talk Programming. He was most recently Director of Production.


Stations For Sale

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Excellent Opportunity for owner-operator with strong radio experience
(843) 884-3590


April Digital Magazine

Complimentary Report
P&G's Jim Stengel talks reality of today's advertising world.
Accountability Part II:
They are at it again.

Better check your Main Studio & Public File... This report has what you need to know.

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RBR Radar 2004
Click on these issues for Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Lawmakers take tough line on smut
Members of Congress hung tough on increasing indecency fines and is clearly a hot button with lawmakers, with no one questioning the FCC's crackdown or the current legislative effort to dramatically increase fines. RBR observation: Realize that the majority of legislators on Capitol Hill - - all of the reps and about a 1/3 of all senators - - are resubmitting resumes to their constituents to be rehired for another two or six years. The only people who take the trouble to say anything are those who Hate the likes of the Stern's. Congress look at the ratings and see in them a large segment of the population their constituents that actually like the Sterns, and while doing so, try to work in some consideration of the constitutional implications of this issue. Defending anything considered indecent and ugly, unrewarding, and close to Election Day has caused the vast majority of both parties to take the path of least resistance. 04/20/04 RBR #77

Fight or flight?
Two groups, two reactions
Animal behaviorists define two basic reactions to danger: fight or flight. While there virtually unlimited possible reactions to a given threat, most of these reactions can be easily placed in one category of the other. In the current indecency flap, Clear Channel has quite obviously chosen to flee. Viacom, on the other hand, looks like its ready to stand and fight. RBR Observation: Would Randy Michaels have been capable of replicating Hogan's performance? We think not. 04/20/04 RBR #77

Widely-divergent coalition
files pro-Bono petition
A cross-discipline group comprised of television networks, broadcast ownership groups, industry organizations, watchdog groups and entertainers has come together to protest the FCC's finding of indecency in regards to the Bono/Golden Globe "f-word" incident. Davis Wright Tremaine attorneys Robert Corn-Revere and Ronald G. London are counsel for the group. RBR observation: TV talk shows and soap operas routinely air material that is as sexual and titillating as anything the shock jocks did in years past. Double standard? Bet your sweet vertical smile there is. Bravo to these groups.
04/20/04 RBR #77


General Manager
Needed at the NEW WINX/Shore Country 94.3, Easton, on Maryland's Eastern Shore, just minutes from Annapolis. WINX needs a special creative radio mind from a real radio General Manager. If you can:

1) Build and manage a strategic programming and sales initiative
2) Recruit and train sales staff
3) Positive leadership qualities
4) Agency and direct sales experience and a track record to prove it
5) Maintaining ratings dominance and maximize sales effort

Then Fax # 973-746-9057
or E-mail Resume and battle strategy to [email protected]
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