RBR's Daily Morning Epaper

Volume 23, Issue 79, Jim Carnegie, Editor & Publisher

Friday Morning April 21st, 2006

Radio News ®

Sun-Times blasts CBS Radio;
Opie & Anthony replacing Roth
The Chicago Sun-Times' Robert Feder blasted CBS Radio in a column this week for its recent moves in Chicago. Excerpts: "CBS Radio rearranged the deck chairs on the Titanic Monday, replacing the general managers of its two most rapidly sinking radio stations in Chicago. The same incompetents responsible for foisting Shane 'Rover' French on 'Free FM' talker WCKG-FM (105.9) and the 'Jack FM' format on oldies WJMK-FM (104.3) apparently hope they can buy themselves time by shuffling the suits in the stations' front offices. It's unlikely that any of the moves will do much to reverse plummeting sales at either station. The situation is especially dire at WCKG, where sales are down alarmingly from last year. Next week's Arbitron ratings report for the winter quarter is expected to be catastrophic. 'We have assembled an extraordinary lineup of executive management in Chicago driven to produce outstanding results for CBS Radio,' said Les Hollander, senior vice president and regional manager overseeing Chicago for CBS Radio. 'This new structure is designed to capitalize on each individual's unique talent and role in the evolution of the radio landscape in the market.' Hollander was placed in his job by his older brother Joel Hollander, chairman and chief executive officer of CBS Radio, who famously revealed his disdain for listeners in an interview here last June. "People want to put their g%$#@ foot on your neck whenever you make a change," big brother Joel said then. "The problem is that there's a lot of people who don't have the balls to make a change.' Together, the Brothers Hollander managed to wreck two popular and successful Chicago stations -- WCKG and WJMK -- in less than a year and bungled the replacement of syndicated morning star Howard Stern from coast to coast."

RBR observation: Meanwhile, CBS Radio is now reportedly replacing the failed David Lee Roth experiment with Opie and Anthony simulcasting with XM in Roth's Northeast markets within weeks. O&A, of course, are the duo that got Infinity/CBS Radio in so much trouble over the "Sex in St. Patrick's Cathedral" stunt. Is the shortage of good talent that severe that CBS Radio has to resort to this now-peddling backwards? Nonetheless, the CBS Radio-Howard Stern chess game continues. It should hopefully help ratings when O&A get to go after arch-nemesis Howard Stern again, with Stern having no terrestrial avenue to battle back this time. Bottom line-Add up what O&A where billing before they were fired; the revenue loss of Stern; the blowing up of CBS FM for the Jack format. How much has CBS Radio blown in NYC? A bunch, we think. We figure Chicago isn't much better from what Feder said.

Publisher note: Spent this week in NYC and saw the bus boards on Roth and then tuned him in. Comment is - NO Comment. But there were numerous questions asked for my observation on the entire issue of the CBS cluster in NYC and a betting line is on when and who will walk the plank for all this revenue loss as Les Moonves only sees radio as a margin business. Not hitting the margins in NYC someone or more than one has got to take a bullet for cluster Fx0! Again my observation was to all that asked was - No Comment for now as I wait for Moonves next conference call.

Looking ahead at Arbitron
For Q1, Arbitron reported revenue of 85.1 million, up 7.4% over 79.2 million in Q1 2005. Costs and expenses were up in Q1 by 20.9%, from 44.4 million in 2005 to 53.7 million in 2006. Steve Morris, Arbitron CEO, said earnings were six cents above guidance and all revenue expectations were met for the quarter. Looking forward, he said, "The bottom line is 2006 is an investment year for Arbitron...The radio piece of our business remains soft, reflecting conditions in the industry and the impact of canceling New Orleans measurement due to Katrina. Offsetting this was our strength in the agency business and with Scarborough." Morris said that Houston remains center stage on PPM, "but in the rest of our 295 measured markets, diaries remain the currency...During the quarter we announced a comprehensive research and quality strategic plan with a road map that lays out a multi-year set of initiatives to improve research quality for both the diary and the PPM. Ultimately, doing the research quality job right has to be our number one priority." Regarding Nielsen's decision not to continue the JV with Arbitron on PPM development, Morris had this to say: "That was kind of a bad news-good news event. The bad news is that without TV directly involved to share the costs, the price for radio alone is higher. The good news is we're able to completely focus on this with radio-the R&D process will have no compromises required for TV and the rollout will be the fastest possible schedule. Where the PPM ratings initiative stands right now is we are still waiting to commercialize use on 7/1, assuming we secure MRC accreditation by that time." He added: "We are also working with VNU and the six advertisers who are the pilot subscribers to the Project Apollo pilot panel to demonstrate the value of our proposed service for media planning, media mix allocation and return on media investment. This collaboration between research providers and research users will help Project Apollo deliver on its potential to better elevate the role of media in the marketing mix."

Iquiring FCC minds
want to know about payola
The FCC has sent out letters of inquiry to four major radio groups to look into the possibility of illegal payola practices. The move comes after widely-rumored quiet negotiations toward possibly settling the matter with consent decrees, and equally-wide rumors that those talks failed to settle on a pricetag. The all-star roster of inquiry targets includes Clear Channel Communications Inc., CBS Radio Inc., Entercom Communications Corp. and Citadel Broadcasting. Democratic Commissioner Jonathan Adelstein, who has taken the lead on this issue, said, "I am pleased that we have launched this formal phase of the payola investigation. This should put to rest any question about the FCC's commitment to enforce the law. Our investigation will be a thorough and complete review of the industry's alleged payola practices."

RBR observation: Although New York State AG and gubernatorial candidate Eliot Spitzer finds this to be a hot topic because it gets his name in the papers for free, it is our belief that this is pretty much a dead issue. Just ask anybody in the practically-defunct music promotion business. To put it another way, whereas the indecency issue is going to be with us for a long time, this one has for the most part already gone away. A consent decree, if priced fairly, would allow the FCC to make its point, and allow the companies to avoid the admission of guilt. But the chances are that they can avoid the admission of guilt and avoid paying any money, do to the lack of a smoking gun leading to an act which is specifically against the rules. Stay tuned.

Political ad indicators remain hot
Gentlemen, start your cash registers - - particularly if you're located in a political jurisdiction which is considered to be in play - - a number which seems to be increasing on almost a daily basis. Congressional Quarterly CQPolitics.com has been looking into the relatively less expensive House races, and is seeing incumbents - - even those in districts still considered to be safe - - raking in cash at record levels, if only to discourage any potential adversaries. Where a seat is in play, even relatively unknown challengers are putting together impressive bankrolls as they try to unseat the current office occupant. This scenario is playing out both ways, as Republicans try to take over seats currently held by Democrats and vice versa. Senate seats in play are also attracting cash, and the Dems are doing a particularly good job of getting their share. At the moment, according to the Associated Press, Democratic Senatorial Campaign Committee is holding a 2-1 advantage over its Republican counterpart, with 32.1M cash on hand. But don't think that the Republicans are going to find themselves a little short - - even as the AP report came out, the Republican National Committee sent out word it was raking in contributions in record amounts.

RBR observation: All indications are that the final total on political in 2006 will blow away that spent in any other mid-term in history, and will probably blow away most of the presidential years. Maybe even 2004. Stay tuned.

WaPo runs ad critical of WaPo
In an environment in which stories about refused issue advertising are becoming more common, watchdog Media Matters for America must at least have a certain amount of respect for the Washington Post, even though it has a bone to pick with the newspaper. Without getting into the specific issue (it was not media-related), Media Matters accused the paper of using falsehoods to support an argument in an editorial, in direct contradiction to facts reported in an actual news story on the front page of the very same issue. The ad, headlined "Do Washington Post editorial writers read their own newspaper?," was run on the Post's own newspaper website, Washingtonpost.com.

RBR observation: We have contended time and again that if an issue ad conforms to the dictates of the FCC's decency standards and is not demonstrably false, the ad should run, regardless on how controversial it may be. But usually, when broadcast or print advertising venues are making the decisions to turn down such ads, they are not themselves the target. The Post is to be commended for making its resources readily available, even though the client was a pointed critic.

Wall Street Media Business Report TM

Arbitron Q1 revenue up 7.4%
For Q1, Arbitron reported revenue of 85.1 million, up 7.4% over 79.2 million in Q1 2005. Planned spending on the Portable People Meter and Project Apollo initiatives and the required expensing of share-based compensation, effective 1/1, increased costs and expenses in Q1 by 20.9%, from 44.4 million in 2005 to 53.7 million in 2006. Net income for the quarter was 18.2 million, a decrease of 8.3% from 19.8 million for Q1 '05. Net income per share for the first quarter was 0.58 (diluted), compared with 0.63 (diluted) for the comparable period last year, a decrease of 7.9%. Arbitron also provided financial guidance on its earnings outlook for Q2 and for FY 2006. For Q2, Arbitron expects revenue to increase between 6% and 8% compared to the second quarter of last year. Earnings per share (diluted) for Q2 2006 is expected to be between 0.20 and 0.22 versus 0.48 in Q2 '05. The impact of share-based compensation expense in Q2 of 2006 is estimated to be approximately 2.2 million, or 0.05 per share (diluted). The balance of the year-over-year reduction is attributable to anticipated incremental spending on PPM initiatives, including Project Apollo, as well as previously announced investment initiatives to improve research quality. Arbitron's year-end 2006 revenue guidance is unchanged. As previously stated, 2006 revenue is expected to increase between 6% and 8% compared to 2005. Earnings per share (diluted) for the full year is expected to be between 1.69 and 1.74. This is an increase from the previously issued earnings per share (diluted) guidance of 1.65 to 1.70. The increase reflects the impact of lower share-based compensation expense.

Ad Business Report TM

Fogarty Klein Monroe
signs to review smart
cell phone test results
Bob Jordan, President of The Media Audit, announced Fogarty Klein Monroe, Houston's largest ad agency, has signed up to review the Smart Cell Phone test results from The Media Audit/Ipsos' tests which are to begin in Houston in May. "In moving to electronic measurement we need to focus not only on today but also tomorrow" said Larry Kelley, EVP/Chief Planning Officer, Fogarty Klein Monroe. "There are many things that we need in future media measurement and we see the Smart Cell Phone features as one alternative to leverage these needs. Linking media exposure to retail shopping patterns will be of great value for assessing ROI. The Media Audit/Ipsos's commitment to multi-media measurement and the opportunity to take the Smart Cell Phone's GPS system tied into retail shopping patterns and then linking that to multi-media exposure will take media measurement in the direction it needs to go. At Fogarty Klein Monroe we appreciate the opportunity to get involved and provide input at the developmental stages of this electronic measurement system." Jim Higginbotham, Chairman and Head of Research at The Media Audit commented, "We have a plan and we are on schedule to begin a series of innovative tests in May...Then in the summer we are hopeful we will begin an industry sponsored full market test of 2,500 respondents. We look forward to sharing these results with our research partners as we tailor our technology to the needs of our prospective clients." Thom Mocarsky, Arbitron VP/Communications, reminds us that on January 23, Arbitron announced three Houston advertising agencies had signed for Portable People Meter radio audience estimates when Arbitron deploys its state-of-the-art audience measurement service: "FogertyKleinMonroe is among those who have signed a license agreement to use Arbitron's radio audience estimates during the buy/sell process. Please understand that taking a look at data is not the same as committing to a service."

Hot Stuff Foods extends
partnership with ESPN Radio
ESPN Radio and Hot Stuff Foods have extended their relationship through 11/12/06, with Hot Stuff's spots heard on ESPN Radio's various shows, including Mike & Mike in the Morning, The Dan Patrick Show, The Herd with Colin Cowherd and SportsCenter updates. Targeting a national audience of 8 million men (18-49), Hot Stuff Foods initially rolled out the advertising initiative with ESPN Radio on January 30, 2006, with spots featuring Hot Stuff's new "perfectly portable Palm Pizza." "ESPN Radio is always excited to team up with a great brand like Hot Stuff Foods," said John Fitzgerald, Vice President of Advertising Sales for ESPN Radio. "We are proud that some of our most valuable space - SportsCenter updates in Mike & Mike in the Morning, The Herd with Colin Cowherd and The Dan Patrick Show - is part of what is sure to be a successful national advertising initiative. One of ESPN Radio's strengths is reaching the sports fan throughout the day, particularly around breakfast and lunch, and we look forward to getting the Hot Stuff message out to our millions of fans." Hot Stuff Foods franchises and/or licenses its branded food concepts in over 1600 locations throughout the US, Canada, Europe and Asia. Hot Stuff Foods offers a number of individual and bundled brands in various categories including Hot Stuff Pizza, Hot Stuff Food On the Go, Hot Stuff Food Xpress, Smash Hit Subs, Summit Subs, C-Street Bakery, Mean Gene's Burgers, Mean Gene's Pizza, Stone Willy's Pizza, Moose Bros. Pizza, Eddie Pepper's, Asian Creations, Chix Chicken, Nap Hendrix's Southern Grill and Caffé Origins Coffee.

Media Markets & Money TM

Hall files Part II of double-FM buy
The Rowbotham family's Hall Communications announced that it was buying WIZN-FM Vergennes VT and WBTZ-FM Plattsburgh NY, both in the Burlington VT-Plattsburgh NY Arbitron Market, but not all at once. The first part of the deal was the 14.5M acquisition of the Vergennes station. Hall has now filed to acquire WBTZ. It'll pay 2.5M to get it from Plattsburgh Broadcasting Corp., bring the total value of the deal to 17M. The station has been operated in an LMA going back to the summer of 1996. Hall's other properties in the market include WJOY-AM & WOKO-FM in Burlington and WLOK-FM in Plattsburgh.

Washington Media Business Report TM

Rehr sees shift in mission
In advance of next week's NAB 2006 convention in Las Vegas, new NAB CEO David Rehr addressed the Television Bureau of Advertising management conference in New York, calling TVB an important partner. "Without sales, there is no broadcasting industry," he noted. Setting the stage for his era at NAB, Rehr said the organization's role in Washington is changing. Rather than being a lobbying group, he said the focus is now on advocacy-what he called a "positive offense" to make the broadcast industry's case on Capitol Hill and with regulatory agencies. Rehr outlined four important values and the new mission statement of NAB with his vision for success in the overall broadcast industry. Rehr's four points are:

First - to increase the value proposition of our business - by aggressively utilizing every new technology. The historic success of television is adaptability.
Second - provide compelling content with new platforms in mind. Every new stream of programming is potentially a new source of revenue. More distribution channels will create more value for our content.
Third - We must emphasize - and be evangelical about - our commitment to localism. In this, we stand apart from our competitors. This is our business plan - and our brand.
Fourth - Build upon our grassroots. We need the activism and involvement of local broadcasters to educate your members of Congress and the FCC and their staffs.

Publisher observation: The topic which Rehr emphasized and agree with strongly - "NAB is moving away from using the word "lobbyist" - which has been defensive and reactive. Instead, we are adopting the word "advocacy which conveys positive offense in framing the debate and thus the future." There has been an excellent transition from Eddie Fritts to David Rehr and meeting him for the first time at TVB I believe NAB is in excellent hands for the future. Probably better than your insurance company commercial.

CCU unable to dodge Dodge giveaway fine
WAWS-TV's "Win A Hot Rod For Dad" was dogged with a number of problems. The Clear Channel Jacksonville station was trying to give away a car and 15 theme park passes to contestants who submitted entries at any one of 15 Dodge dealerships. Although there was no specified one-entry-per-person rule, an earlier draft of the rules was inadvertently used by personnel which did say one-per-person, leading to the formal complaint from an individual who had submitted 21 entries. Of the 15 dealerships, one of which did not even sell Dodge autos, only nine returned entries. Then, the personal-presence-required drawing was sparsely attended, leading station personnel to give away the car but not the theme park tickets. Even though CCU made amends by holding a second drawing, and even giving away a second car, it failed to adequately promote its second attempt. Although the complainant was a winner that time, he was still a loser, because he was unaware of it and was not present. Despite the efforts to make amends, the FCC hit CCU with a 4K fine for failure to run the contest as advertised.

RBR observation: What a disaster. At the end of the day, 4K doesn't seem like much, but it's still 4K. Like in a criminal trial where a defendant is mostly but not entirely exonerated and is sentenced to time served and set free, it seems in this case the FCC could have sentenced WAWS-TV to migraines already suffered and let it go at that.

NAB Day Time Planner

	The following will be attending the NAB. Call or email to make your appointment in advance.

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]	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],

Internet Media Business Report TM

Radioio.com launches new stations
IOWorld Media' radioio.com has debuted two more stations: "radioioDead," the new Grateful Dead Channel programmed by veteran Music Director Rob Bleetstein. Bleetstein, whose 25-year run in the music industry spans radio (KHIP, KPIG), music publishing, tour management and publicity, is a veteran of over 200 Grateful Dead concerts and hundreds more Jerry Garcia appearances. * radioioOne with Liz Opoka (as Molly Jameson) The "soundtrack of our lives" of the last 40 years. Radioio welcomes Liz Opoka as she takes over the duties of stream host and programmer for both radioioEclectic (the original radioio channel) as well as radioioOne, a recent addition to the radioio lineup. Liz brings over 15 years experience in programming, marketing and promotion to radioio.com. Prior to joining radioio, Opoka was the Senior Manager of Adult Programming for Music Choice, where she programmed nearly a dozen formats over her years there, including Adult Alternative, Blues, Country, New Age and Standards. Opoka launched her career in music at WFUV-FM, one of the pre-eminent spots on the NYC dial for adult alternative music. As Music Director at WFUV, Liz helped to create the eclectic award-winning format, City Folk.

Transactions

2.75M KFYE-FM Fresno CA (Kingsburg CA) from Educational Media Foundation (Richard Jenkins) to Pro-Active Communications Fresno LLC, a subsidiary of Pro-Active Communications Inc. (Gerald D. Clifton et al). 200K escrow, 1.175M cash at closing, 1.375M note. Seller is non-profit. Station will switch to commercial service. [File date 4/3/06.]

1M WBET-AM Boston (Brockton MA) from KJI Broadcasting LLC, related to Aritaur Communications Inc. (Joseph V. Gallagher III, Robert J. Maccini, William Collatos) to BusinessTalkRadio.net Inc. (B. MIchael Pisani, Michael Metter et al). 100K, balance in cash at closing. Includes non-compete. [File date 4/3/06.]

Stock Talk

Just treading water...
It was another quiet day on the broadcasting stock front - - most issues stayed pretty close, if a little below, where they started when trading kicked off yesterday morning. Fisher, which had been one of the bigger gainers the past few days, unfortunately started the process of giving some of its gains back.

Radio Stocks

**Here's how stocks fared on Thursday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		34.06	+0.42	Hearst-Argyle	HTV		23.22	-0.13
Beasley	BBGI		11.20	-0.58	Journal Comm.	JRN		11.37	-0.13
CBS CI. B	CBS		24.53	-0.03	Lincoln Natl.	LNC		57.07	-0.11
CBS CI. A	CBSa		24.51	-0.09	Radio One, Cl. A	ROIA		7.65	+0.04
Citadel	CDL		10.01	-0.24	Radio One, Cl. D	ROIAK		7.68	+0.10
Clear Channel	CCU		28.00	-0.11	Regent	RGCI		4.30	-0.14
Cox Radio	CXR		13.15	+0.01	Saga Commun.	SGA		9.07	-0.13
Cumulus	CMLS		10.66	-0.15	Salem Comm.	SALM		14.76	+0.06
Disney	DIS		27.34	-0.14	Sirius Sat. Radio	SIRI		5.07	-0.06
Emmis	EMMS		12.77	-0.46	Spanish Bcg.	SBSA		5.09	-0.03
Entercom	ETM		26.68	+0.09	Univision	UVN		34.90	+0.41
Entravision	EVC		8.48	unch	Westwood One	WON		9.59	+0.04
Fisher	FSCI		43.25	-0.83	XM Sat. Radio	XMSR		22.46	-0.82
Gaylord	GET		44.00	-0.45	-	-	-	-	-

Bounceback

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Below the Fold

Wall Street Media Business Report
Arbitron Q1 revenue up
85.1 million, up 7.4% over 79.2 million in Q1 2005...

Media Markets & Money
Hall files Part II
Of double-FM buy...

Washington Media Business Report
NAB shift in mission statement
Yesterday at TVB Mr. NAB Rehr says NAB is no longer a lobbying arm...

Stations for Sale

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]

More News Headlines

RAB and Media Monitors present free sales training workshop
The RAB will present a free sales training workshop on "Breaking The Daily Habit: Winning New Radio Dollars From Print" in Kansas City, MO, on 5/18. Sponsored by Media Monitors, the session is part of an ongoing free nationwide sales training series that began last year. For the first time, this event will also be preceded by a special one-hour training session exclusively for Radio Sales Managers or General Managers, also conducted by the RAB, to teach managers the best ways to instruct their salespeople on how to sell against the print medium. Endorsed by the Missouri Broadcasters Association, the session is offered free of charge to the first 50 Radio station sales managers and account executives in the area to register. Conducted by RAB Senior Vice President of Training Lynn Anderson, the session reveals how to position Radio's strengths against newspapers and exposes the inequity that exists between newspapers' dwindling circulation figures and their share of local advertising budgets.

MMTC conference
on the sked
The Minority Media & Telecommunications Counsel will hold this year's Access to Capital and Telecom Policy Conference in Washington on 7/10-11/06 at the Westin Grand Hotel in Washington. The meeting will also include the Ninth Annual Hall of Fame Reception. The event consists of nuts and bolts sessions on media acquisitions, telecom policy and efforts to close the digital divide.

AWNY and Lowe New York announce winners
of 9th Annual Good, Bad and Ugly Awards
Advertising Women of New York announced the winners and losers at its annual Good, Bad and Ugly awards (GBUs). This event, hosted this year by Lowe New York and celebrity author John Gray of "Men Are from Mars, Women Are from Venus" fame celebrates the positive depiction of women in ads by awarding them Goods. It also admonishes advertising that is offensive or insulting to women by awarding them Bads and Uglies. Wieden & Kennedy (Portland and New York) was the big winner of the evening with both Grand Goods, one for TV and one for print. The winning print was for http://www.nikewomen.com , which celebrates all facets of a woman's body including tomboy knees, a big butt and thunder thighs. The winning television ad was for an ESPN commercial entitled "Running Away" which follows a woman on her run. Carol Evans, President of AWNY and CEO of Working Mother Media stated, "What's truly unique about this year's Grand Good print ad and so many of our Good winners is that the ads embrace the things about a woman's body that advertising has often made us feel ashamed of. We don't need to downplay or hide our "thunder thighs," and "big butts" but need to take pride in what makes each of our individual bodies special." The Grand Ugly for Print went to three ads depicting scantily-clad women for Milwaukee's Best beer entitled "Perfectly Cut," "Call of the Wild" and "Finely Tuned." The Grand Ugly for TV went to Carl's Jr. for an ad in which Paris Hilton manages to soap up her car, herself and her burger all at the same time. This is the second time a Paris Hilton ad earned negative recognition by the GBUs.

RBR Radar 2006

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

CCU slammed by Fund
Influential institutional investor California Public Employees' Retirement System (CalPERS) listed six companies - - out of over 1.8K which it reviewed - - that it says are underperforming due to corporate governance issues. Here's the rap on Clear Channel: "Clear Channel Communications, a diversified media company that owns hundreds of radio stations, has excessive executive compensation and severance agreements, and lost 42% in stock value over the past five years compared with a 26% decline for industry peers."

RBR observation: The key to see how this plays out - excessive and the lost of value over the past five years, which RBR has also documented, is surely to make the balance of this year interesting to say the least.
04/20/06 RBR #78

Big market anchors cause
Emmis to miss target
In a word - Weakness in the two largest markets are on the books to hit Emmis with their Q4. Emmis's domestic radio business, was a big factor in a drop in station operating income from 24.4M to 19.5M; additionally, the company blamed increased promotional costs in Chicago and an unexpected bankruptcy from a core advertiser which by itself resulted in a 1.3M hit. Plus loss of auto business and Ford being their key did not help their results.

RBR observation: The canary in the mine reported its Q4 and closed out their year and it did not end on an up note, see below. So this tells all of us what radio can anticipate as the rest begin to roll out their Q1's. RBR suspects it will not be a pretty site for the medium as a whole. What radio needs more than ever is strong united leadership front attack. RBR is not talking lip service but it is time the top guns hit the streets themselves and start making calls talking about the radio business as a complete business. RBR agrees with Smulyan that radio is a rock solid business but one must work a business to make it successful.
04/19/06 RBR #77

Indecency wars still front and center
The FCC noted late last week that it had received further opposition from CBS regarding indecency forfeitures assessed for a broadcast of "Without a Trace." It indicated it would, as usual and as a matter of course, review the broadcaster's remarks, but also said it believed its rulings were correct.

RBR observation: We always thought that the whole thing about the Janet Jackson episode was that it was pretty much unprecedented. Frankly, we've seen hundreds of wardrobe malfunctions on those blooper and home video shows where the malfunction is not fleeting at all. We wish CBS and the other networks well in their battle for some kind of indecency policy that makes sense - - we sure don't have one now.
04/18/06 RBR #76

Finally! An Ad guy saying it
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. Bounce Back
04/17/06 RBR #75

Fighting 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 in federal courts all over the country challenging several of the indecency rulings the FCC issued last month.

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 - We see two possible outcomes: review them in
04/17/06 RBR #75

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

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