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Volume 23, Issue 80, Jim Carnegie, Editor & Publisher
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Monday Morning April 24th, 2006
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Radio News ®
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NAB Week underway
The important need to know news and RBR observations will be reported here each morning and in our afternoon Media Mix.
 Quarterly results
couch sessions kick off
Maybe the broadcasters forced to trot out their quarterly dog and pony show should appear before a different kind of analyst - - one less reliant on a calculator and more in line with either Dr. Phil or Joyce Brothers - - someone who can at least buoy their sagging spirits since the bank accounts appear to be beyond immediate help. It must be particularly trying to keep waiting for the advertising business turnaround that just does not want to come. Last week, Emmis and Belo represented both sides of the broadcasting radio/TV divide (with, respectively, magazines and newspapers thrown in for good measure), and guess what? The first two/three months of 2006 were soft. Guess what else? There is no stunning reversal in sight, unless you think low single digits are stunning (although the return of a hot and heavy political season will help). And according to Belo you can't spend your way into a revenue increase because, although this is not the terminology they used, there seems to be no shortage of greater fools willing to pay outrageous prices for what little station inventory is on the market. Broadcast service provider Arbitron suffered as its radio clients passed along their own troubles, inopportunely combining with its heavy R&D investment into PPM. And as if all this is not enough, all 3 companies had a gal named Katrina on their dance card last fall, with lingering hangovers all around. "If only people would just stop wasting their money on that danged Internet," they might tell the good Doctor, "maybe we can turn this around."
RBR observation: Hey, talk to Doctor RBR. The prescription is simple. While you may not agree with FCC Commissioner Jonathan Adelstein's stance on payola, but he is dead on accurate when he describes broadcasting's greatest strength. In three words, it is Local-Local-Local. The nation is swirling with offerings that are highly fragmented and therefore forced to be nationally oriented. Broadcasters are the only electronic media which can pull together a significant number of citizens at any given point. It's time to emphasize that power. And find new ways to use it.
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VNU battling rumor mill; future remains unclear
Billboard magazine owner VNU is having to put out small fires as its management continues to fight the big blaze - - a shareholder revolt that is likely to doom a nine billion bucks buyout. VNU, whose most profitable operation is the Nielsen TV ratings company, had to issue a statement Friday denying a report posted on the website of Vereniging van Effectenbezitters (Dutch Investors Association) that A.G. Jacobs, retired CEO of financial giant ING, had resigned as Chairman of VNU's Supervisory Board. "Mr. A.G. Jacobs is still in office as chairman of the supervisory board of VNU. Mr. Jacobs will resign immediately after the annual general meeting of shareholders, to be held on 13 June 2006," VNU stated on Friday. Meanwhile, VNU has said that if the tender to buy out public shareholders does not succeed, it expects to resume its dividend payment of 0.43 euros per share. That dividend resumption will be voted on at the June 13th meeting if the buyout is not consummated. The tender offer for all VNU shares, which is contingent upon 95% acceptance, is due to close May 5th.
RBR observation: Shareholder meetings are normally boring affairs, but not the one last week in which VNU management tried yet again to convince shareholders to support the buyout offer. Judging by the raucous behavior of angry shareholders, it is not likely that any minds were changed. Rather, leading dissident Eric Knight reiterated that it would be just find with him to have all of the top management and directors of VNU resign en masse. His Knight Vinke Asset Management has been pushing its own alternative to allow the private equity groups to buy 30% of VNU, rather than the whole thing, leaving current shareholders to participate in the potential upside of restructuring and growing the company. But Knight insisted that his plan was not dependent on having the private equity groups make that capital injection. As for management, "We have identified a world class candidate who is available and wants the job [of CEO]," Knight declared, although he's keeping the name secret. Although the tender offer is still on, RBR hears that the private equity groups are considering taking the 30% offer but to insure an approval it may even go as high as 60%. If it does go up to 60% then it could be a done deal. But again - how business is conducted overseas is not how it is done in USA. RBR can report that all at Nielsen HQ are remaining focused on their day to day duties.
 Connecting some payola dots
FCC Commissioner Jonathan Adelstein went on NPRs' "All Things Considered" to discuss the FCC's probe into possible payola violations with host Robert Siegel. He said it's possible that a station's public interest obligations, including the desire to promote localism, are tied in. Asked about the FCC's seemingly late entry into the payola fray, Adelstein said they've been carefully sifting through evidence from New York State AG Eliot Spitzer, plus that they've gathered on their own. The letters to Clear Channel CBS, Entercom and Citadel are the next step in the fact-gathering process. He noted that possible penalties include fines, license revocations and even criminal penalties including up to a year in jail, although he doubted that licenses were in jeopardy during the first go-around. He then tied payola to the vast amount of repetition common to radio. "Well, it is a real problem that these play lists are so short," he said. "I think that the vitality of radio gets sapped when music gets on the air because somebody paid and not because the song itself won on the merits because it's good music. I mean 'May the best song win' should be the motto" Unfortunately, it's the one which has the most money behind it that wins and that's why you're seeing people voting with their feet - - they're moving to satellite radio, they're moving to their iPods. Radio has got this real connection with an audience though, still, and that connection is the local basis, and if the local artist can't get heard because they can't afford to pay payola, then everyone gets deprived." Asked if the FCC should take an active role in forcing the issue, he said, "Well you'd think as part of their public interest obligations that they would make an effort to put local artists on to the degree that they're playing new and original music." He further thinks it's in their interest to do it on their own. "To the degree that payola separates that radio station from its own local community, it a real problem for the long term vitality of the radio industry itself." He echoed colleague Michael Copps' frequent call for a more vigorous license renewal process which would in part take this issue into account.
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Dickeys out of Braves bidding?
Both the Atlanta Journal-Constitution and New York Post reported Friday that Liberty Media is close to acquiring the Atlanta Braves baseball team from Time Warner in a complicated swap to reduce Liberty's stake in T-W. Such a structure would suit tax-averse John Malone at Liberty, but leave cash bidders for the team, such as radio's Dickey family, striking out. The Cumulus Media CEO, Lew, and his brothers are now seen as long-shots for the baseball buy. If no deal is struck with Liberty, the Atlanta newspaper tags Atlanta Falcons (NFL) owner Arthur Blank, a Home Depot co-founder, as the leading bidder for a cash deal of 400 million plus. The baseball team apparently isn't even the top priority for Malone, but would figure in a larger deal to cut Liberty's three billion bucks stake in T-W down considerably. Liberty would reportedly end up owning all of Court TV, which is currently a 50/50 joint venture with T-W. Some other assets might also be included, along with some cash from T-W, but still not enough to completely eliminate Liberty as a T-W shareholder.
 Roth hits the exit door
"I was booted, tossed, and it's going to cost somebody," said David Lee Roth Friday morning as he confirmed to the (few) fans of his radio show that CBS Radio has pulled the plug on his effort to fill Howard Stern's shoes - - and indicating that he intends to sue if he doesn't get his full four million bucks contract payment. Now we're all waiting for official confirmation from CBS that Opie & Anthony will be returning to terrestrial radio, while continuing to do their XM show. O&A will be starting at CBS Radio's WFNY-FM and six other CBS stations Wednesday, replacing Roth. O&A will reportedly simulcast on the CBS stations for three hours and XM from WFNY's studios, followed by two more uncensored hours on XM from their present studio. One of the O&A markets is Boston, on WBCN. Said Ron Valeri, Director of Programming of FM Programming for Entercom/Boston: "As a global thinker, a proponent of terrestrial radio, and as the PD who discovered Opie and Anthony and first put them on in Boston at WAAF some years ago, I'm glad I'm able to help save CBS radio by finding them a morning show for WBCN and many of their other stations. Strange as it sounds, I feel good about doing my part to keep FM radio out in front. WAAF's already great morning show will now get even better as a result of a new challenge. Just one question though? What will CBS & WBCN do about the terrible ratings that they'll continue to have from 10am - on? I'm afraid I can't help them with that. Btw, Joel, Rob, and other CBS brass... no need to send me a thank you gift basket...please make a donation to the hungry instead - that would be the WBCN sales staff."
RBR observation: It was only a question of when the pink was going to be handed down. Come on get real - Roth on radio - CEO Joel Hollander putting Roth on the air would have been better off airing Roth's audio from the video rock tour because that was what he bought. Now the real business question - what has this cost CBS in money since radio is only a margin business to upper big honcho Les Moonves. See Radar right column for Publisher observation. Enough said - period - Next.
New NAB exec knows DC from the inside
The new head of the government relations wing of the National Association of Broadcasters will not need a map to find his way around in the hallways of Washington. Douglas S. Wiley has logged over 20 years worth of mileage in the corridors of power. His title will be Executive Vice President of Government Relations. "Doug has spent more than 20 years in Washington as an outstanding advocate for the communications industry," said NAB President David Rehr. "His experience working with Congress and Administrations from both parties will be invaluable to our public policy work promoting radio and television broadcasting." He is leaving the Electronic Industries Alliance (EIA), where he was Senior Vice President of Government Relations. His other stops include the Telecommunications Industry Association, Competitive Telecommunications Association (CompTel), National Telecommunications and Information Administration (NTIA) and as Senior Legislative Assistant to Rep. Thomas J. Bliley (R-VA), former chair of the House Committee on Energy and Commerce.
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| Wall Street Media Business Report TM |
RBR observation
 Who else will disappoint The Street?
Emmis Communications sent a shock through Wall Street last week when its quarterly results came up short of expectations (4/19/06 RBR #77). The question now is whether Emmis, with its reporting cycle one month out of sync with most other companies, is fulfilling its traditional role as radio industry bellwether, or whether it is an aberration.
In reality, the truth is probably somewhere in the middle. Emmis' poor performance was due to soft ad demand in both New York and Los Angeles at the same time. No other radio group is as heavily dependent on those two markets for so much of its revenues. So, Emmis' troubles are likely to be duplicated by other (English language) groups with clusters in those two markets, but to a lesser degree, since NYC and LA are a smaller percentage of their total revenues. The other big public players who are in both markets are Clear Channel, which has lots and lots of other markets, plus the positive impact of having lapped its Less is More initiative, CBS, which has plenty of problems in radio trying to replace Howard Stern revenues but is on the upswing overall because of its strong TV performance, and ABC Radio, which is a tiny part of Disney and is in the midst of being sold to Citadel anyway. CBS reports its quarterly results this Wednesday and Clear Channel and Disney next month. A week and a half earlier RBR reader's saw Emmis' woes coming when we reported on Bear Stearns analyst Victor Miller lowering his EBITDA estimates for Emmis because of the NYC-LA softness (4/7/06 RBR #69). He also lowered estimates for Entercom for continued weakness in New Orleans and Boston, and Westwood One because it is launching new shows to make it less dependent on RADAR inventory, where price integrity has been a problem.
At least for the moment, the place to be is in smaller markets, like Cumulus or Citadel (until it closes its ABC acquisition) or a strong niche, like the Spanish groups or Religious specialist Salem, which Friday reiterated that it will hit its targets for Q1. But don't look for anyone to blow away Wall Street with stupendous Q1 results. Most radio groups will likely meet expectations, but those expectations aren't very high. The underlying problem is soft ad demand. It's worse for newspapers and nearly as bad for TV, which at least will get a political boost this year. What little growth there is in ad spending is going mostly to the Internet. Until the US economy really gets on a tear and advertisers start competing fiercely for consumer spending, the best anyone in radio can do is stick to the basics - - work on building new local direct business, come up with new ideas to help your best clients bring customers through their doors and focus on the quality of your product, both in terms of ratings and rate integrity, so you'll be positioned to lead the charge when it eventually comes. Oh, and be sure to pick up a slice of that growing Internet ad pie by making your local website a must-visit for your local listeners with local content. Local, local, local is the way you can compete with Google, Yahoo! and Craig's List.
CBS, XM tee up conference calls
CBS Corporation will hop on the line Thursday, 4/27/06 to discuss its first quarter results with analysts (with journalists like us listening in). The conference will take place at 8:30 AM. This if the portion of the old monolithic Viacom Inc. that is based on CBS TV and radio properties, along with certain cable, outdoor and publishing assets. Another late addition: XM Satellite Radio, hitting the wire lines/either Thursday, 4/27/06. That one will commence at 10AM Eastern.
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Ad Business Report TM
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 On O&A's return to CBS Radio
Rich Russo, JL Media's SVP/Director of Broadcast Services, commented on our story last week on the return of Opie and Anthony to CBS Radio (4/21/06 RBR #79). "This is a great move for them. I mean there is no doubt about it. One thought is everyone knew O&A were going to go into morning drive. Clear Channel was ready to sign them, CBS Radio came in, that's when they gave them all of the syndication, etc. Part of me wonders why they didn't just keep Howard-but they're younger than Howard was in terms of audience; they're more 18-34 than Howard would have been. They're not rolling them out in every single market. You know they're going to work in Boston, New York and Philly because they worked there before. This is the first move they've made that has actually made sense."
Are you going to talk to them about advertising opportunities on the show?
"If we had a client that made sense for that - It is limited, by the way, because you're not sure what the hell they're going to say. But if you had a proper-skewing 18-34 client that didn't have restrictions on content, there would be no problem putting them there. They're definitely great talents, there's no doubt about it. It's definitely better than what they had, it should work. I'd be shocked if it didn't work here. They will definitely get numbers; they will get listeners showing up at events. It doesn't cure the rest of their FM woes for New York, but it does help the Howard thing and it will be interesting."
New software helps solve challenge
Overcoming the challenges of consumers multitasking usage of media; and being able to anticipate its impact and synergistic effects with standard metrics just got a lot easier with the beta release of BIGresearch's newest software designed to mine their Simultaneous Media Survey (SIMM) database. The software will provide easy access to BIGresearch's new media consumption clusters which allow marketers to understand the increasingly complex media consumption behavior of consumers.
| Read More... |
 Geico sues insurer for allegedly stealing its gecko in ad
Geico filed a lawsuit Friday in Manhattan federal court accusing Long Island, NY insurance firm Tri-State Consumer Insurance of trademark violations for intentionally employing a similar gecko in a new radio ad. Geico said the 60-second ad confuses consumers into thinking that Geico's gecko is associated with Tri-State. The complaint demands Tri-State to stop airing the ad, give up wrongful profits and pay punitive damages. The lawsuit also names Tri-State CEO Penny Hart as a defendant. The spot in question has a character identified as a gecko inviting New Yorkers to talk about car insurance, said Reuters: "As the gecko prepares to suggest that listeners switch their insurance to Geico, a crashing sound followed by an 'unsavory 'splat' sound' suggesting that the gecko was struck down by a skidding car, the filing said. Thereafter, it said, 'a gruff voice boldly proclaims, 'Enough with the gecko already! You want cuddly cartoon characters or better rates?' The complaint said the commercial then recommends that vehicle owners save money by insuring with Tri-State. After the gecko proclaims 'I'm cute,' a car apparently driven by the announcer squishes it."
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| Media Markets & Money TM |
XM reworks GM debt deal
No secret that General Motors needs cash and that has apparently worked to the advantage of XM Satellite Radio, which has agreed to make an early payment of 240 million bucks to GM to retire 320 million of fixed payment obligations that otherwise wouldn't be due until 2007 through 2009 under XM's distribution agreement with GM's OnStar subsidiary. Afterward, XM's senior secured credit facility with GM - - which XM may tap to finance payments owed to GM or OnStar - - will be increased to 150 million from the current 100 million, although XM will no longer have the option of paying up to 35 million in stock rather than cash.
RBR observation: Pretty clear who was in the driver's seat for this negotiation. This is clearly a good deal for XM - - and it doesn't even have to go through with it unless it can find financing for the 240 million payment on acceptable terms. It is a good time to be a large creditor of beleaguered GM if you have the ability to pay off your debt at a discount.
The way to start is retire
At least, that's the case this time, as Self Retire Inc. heads into the radio business. Peter Phia Xiong's company is doing so with the 670K acquisition of KZGX-AM in Watertown MN, a small town west of Minneapolis. The seller is Pedro Zamora's WM Broadcasting Inc. It's the first radio station for Xiong. WM remains in the biz with an FM in Iowa and two AMs in Alabama.
Close encounter in Las Cruces
Media Services Group brokers Jody McCoy and Bill Whitley told RBR that the keys have been exchanged in the 1.4M sale of KROL-FM Las Cruces NM. The buyer is Michael Smith's Bravo Mic Communications, which has paired the station up with its KVLC-FM Hatch NM. Rio Grande Christian Broadcasting of El Paso is the seller.
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| Washington Media Business Report TM |
House panel tees up video competition bill
The Communications Opportunity, Promotion and Enhancement Act of 2006 will be trundled out for full committee mark-up next Tuesday. Its sponsor, Joe Barton (R-TX) was able to get it on the agenda of the House Committee on Energy and Commerce without too much difficulty, since he chairs that committee. During the preliminary markup in the Subcommittee on Telecommunications and the Internet, the bill shed most of its Democratic supporters by failing to include planks to better assure Internet network neutrality, for omitting strong build-out requirements for telcos entering the MVPD business and for allowing cable companies to adjust their rates and service offerings for those areas where telcos are not in direct competition. The markup is scheduled late in the day, Tuesday 4/25/06 at 5 PM.
RBR observation: The bill should have no problem getting through the Committee. Not only is the Republican majority enough to see it through unaided, Barton was able to sign up Bobby Rush (D-IL) as a co-sponsor, giving him at least one vote from the other side of the aisle. However, according to on Hill news source, it may face review from the House Judiciary Committee over 911 emergency service provisions, and will have to be reconciled with whatever the Senate comes up with.
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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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| Entertainment Media Business Report TM |
CC Radio to offer programming to rivals
CC Radio is making programming for some 75 new radio channels available to rival radio broadcasters. The original audio, video and text programming will be the foundation for Internet channels, station Web sites, iPods, satellite broadcasts, in-vehicle navigation systems, and HD digital radio multicasts. The elements, developed by the company's Content Research & Development Group, are the product of a previously secret initiative now called the Format Lab.
| Read More... |
 WWRL announces programming changes
Afternoon duo Sam Greenfield and Armstrong Williams shift gears and move to AM drive, now hosting The WWRL Morning Show, Monday - Friday, 6am - 10am. Pulitzer Prize winning journalist and best-selling author Karen Hunter will host her own show M-F, 3pm - 6pm. Sam and Armstrong known as "Sammy and Army" to have been the co-hosts of Drivetime Dialogue on WWRL since March 2005. Karen Hunter, named one of the 100 most important talk show hosts in America by Talkers Magazine, will now be heard on The Karen Hunter Show each afternoon from 3p-6p. The show will be a fast-paced three hours that will provoke, stimulate and empower.
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| Ratings & Research |
Nielsen Outdoor launches
GPS-based ratings service in LA
Taking another significant step to increase the value of outdoor advertising, Nielsen Outdoor announced that it is expanding its GPS-based ratings service to Los Angeles to establish an independent, accurate ratings currency for the outdoor advertising marketplace. This expansion is part of an immediate roll-out of the technology-based measurement service in the top ten media markets in the U.S. The expansion of the service to Los Angeles comes on the heels of its introduction last year in Chicago, where it received widespread support among advertising agencies and media owners. The service was also adopted as the currency of the outdoor industry in South Africa. Nielsen Outdoor will begin recruiting a representative sample for the Los Angeles service in May and expects to deliver data to clients in the fall. It will begin marketing the service in Los Angeles immediately. Using proprietary devices that are entirely portable, passive and personal, Nielsen Outdoor tracks the passage of people as they ordinarily walk, drive or travel in other ways through the marketplace. Combining these findings with the known locations of outdoor signage, the company can precisely calculate how many persons see the outdoor ads and identify them demographically. Accordingly, Nielsen Outdoor provides advertisers with the total number of people exposed to outdoor advertising and the frequency of their exposure.
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| Internet Media Business Report TM |
 Internet 101 at TVB
Last week's TVB annual management conference was devoted to "TV goes multiplatform" - - and the non-broadcast platform receiving the most attention was the Internet. Cell phones, iPods and such are also opportunities, but the immediate way to generate cash is by creating advertising opportunities on a local TV station's website. David Buonfiglio, VP/Local Sales for Internet Broadcasting, laid out some basics that he said were the four "must-haves" before you can even think about making money from the Internet: 1) audience and page view data that's available on a daily basis; 2) ad-serving capability; 3) web ad production for local advertisers; and 4) IAB (Internet Advertising Bureau) ad size offerings. Sponsorships are still the cornerstone for generating revenue on a TV station website, he noted, with the advertiser paying to own a specific section that local people will want to look at. But there are also opportunities for "advertorial" content integration, contests/surveys and other ways that local businesses can interact with consumers on your station's website. Video ads on the Internet are growing in popularity, which should play to the strengths of a TV stations. And for those with sophisticated websites, "rich media" is growing fast and Buonfiglio noted that you can "sell on sizzle" at high CPMs. How do you start generating more revenue from a TV website? As with so many things, it's back to basics. Buonfiglio noted that many stations don't think to go talk to agencies about just what they are capable of doing on their website - - not pitching a particular account, but demonstrating what your capabilities are, so the agency folks can start thinking beyond banner ads in creating web-based components for their clients' advertising campaigns.
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| Monday Morning Makers & Shakers |
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Transactions: 3/13/06-3/17/06
The last three weeks, with trading values hovering between 30M-40M, seemed slow. But that was before this week, which makes the last three weeks seem like a trio of bona fide barn-burners. Even the lone TV deal didn't crack the million dollar threshold, and the only radio deal to do so actually move a station out of the commercial realm into the Georgia non-profit broadcasting system. Total value of 8M was out of reach. Snore.
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Total
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Total Deals
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8
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AMs
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6
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FMs
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3
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TVs
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1
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| Value |
7.542M
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| Complete Charts |
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Radio Transactions of the Week
As station goes, so go its commercials
| More... |
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TV Transactions of the Week
Same operator, new landlord
| More... |
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| Transactions |
149.5M KDOC-TV Los Angeles (Anaheim CA) from Golden Broadcasting LP (Pat Boone, Calvin C. Brack et al) to Ellis Communications KDOC Licensee LLC, a subsidiary of Ellis Communications Group LLC (Bert Ellis, Kelso & Company et al). 15M escrow, balance in cash at closing. [File date 4/3/06.]
240K WBRT-AM Bardstown KY from CBC of Nelson County Inc., a subsidiary of Commonwealth Broadcasting Corporation (Steven W. Newberry) to Central Kentucky Broadcasting Inc. (Kenny Fogle, Donna Fogle). 10K escrow, balance in cash at closing. LMA until closing. [File date 4/5/06.]
150K AM CP Juneau AK from James Warren Tipton Jr. to Seattle Streaming Radio LLC (David M. Drucker, Penny Drucker). Cash. Cross-ownership with two LPTVs.CP is for 1330 kHz, [File date 4/6/06.]
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| Stock Talk |
Losers take the crown
Most Radio stocks were down on Friday, with Beasley, Cumulus and Arbitron leading with pack, down -0.92, -.049 and -0.35, respectively.
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| Radio Stocks |
Here's how stocks fared on Friday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Arbitron
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ARB
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33.74
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-0.35
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Hearst-Argyle
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HTV
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22.92
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-0.30
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Beasley
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BBGI
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10.28
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-0.92
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Journal Comm.
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JRN
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11.11
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-0.26
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| CBS CI. B |
CBS |
 |
24.81
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+0.28
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Lincoln Natl.
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LNC
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57.39
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+0.31
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| CBS CI. A |
CBSa |
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24.78
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+0.27
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Radio One, Cl. A
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ROIA
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7.37
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-0.28
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| Citadel |
CDL |
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9.66 |
-0.34 |
Radio One, Cl. D
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ROIAK
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7.44
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-0.24
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Clear Channel
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CCU
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27.69
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-0.29
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Regent
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RGCI
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4.36
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+0.06
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Cox Radio
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CXR
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12.98
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-0.17
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Saga Commun.
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SGA
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9.13
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+0.06
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Cumulus
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CMLS
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10.17
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-0.49
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Salem Comm.
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SALM
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15.08
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+0.32
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Disney
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DIS
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27.02
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-0.32
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Sirius Sat. Radio
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SIRI
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5.00
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-0.07
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Emmis
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EMMS
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12.59
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-0.18
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Spanish Bcg.
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SBSA
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5.04
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-0.05
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| Entercom |
ETM
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26.40
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-0.28
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Univision
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UVN
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34.95
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+0.05
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Entravision
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EVC
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8.36
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-0.13
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Westwood One
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WON
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9.59
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+0.02
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Fisher
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FSCI
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43.19
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-0.06
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XM Sat. Radio
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XMSR
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22.15
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-0.31
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Gaylord
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GET
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44.47
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+0.46
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-
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-
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-
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-
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-
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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 CBS Radio, O&A, Chicago
(4/21/06 RBR #79)
Regarding Robert Feder's comment on the "Hollander Brothers," there is a nickname that has been running around New York at all of the cocktail circuits-"The Smothers Brothers." That is what they are referred to as, and I've got to tell you something, it brings down the house.
anonymous radio broadcaster
Stern vs. O & A?
You mentioned in you're "observation" that CBS can now "go after" Stern by putting O & A up against him. They can't compete with him on satellite radio, so how can an edited version have any real impact? Also, satellite radio only cares about subscriptions they don't compete with regular radio for ratings. By the way, by putting satellite radio personalities on their airwaves, CBS is exposing their ridiculous lawsuit against Stern for the scam that it is.
Lenny Freed
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Below the Fold
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Wall Street Media Business Report
RBR observation: Who else will disappoint The Street?
Emmis Communications sent a shock...
Ad Business Report
On O&A's return to CBS Radio
Rich Russo, JL Media; Part of me wonders why they didn't just keep Howard...
Media Business Report
Pirate FM busted in Ft. Lauderdale
Creole and Caribbean music had flowed...
Media Markets & Money
XM reworks GM debt deal
No secret that GM needs cash...
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Radio Media Moves
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Potter upped to GSM
in Grand Rapids
 Christopher Potter has been promoted to GSM for Citadel's WLAV-FM and WKLQ-FM. For the last six months Potter was an account executive for WKLQ-FM and WBBL-AM. Prior to joining Citadel in 2005, he was GSM for Cox Radio's WDYL in Richmond, VA for three and a half years.
Stevenson to the Max
Steve Stephenson has joined Max media as General Manager of its eight-station cluster in Cape Girardeau, MO. He was most recently VP/Market Manager for Border Media in San Antonio, TX.
Promotion at VNU
Matthew O'Laughlin has been promoted from VP of US Tax for VNU to Sr. VP of Tax for the entire company, although he'll continue to be based in New York. He succeeds Bart Kuper, who is leaving VNU to become Group Tax Director at TNT N.V., also based in the Netherlands.
New CFO at Liberman
For the third time since November 2004 a new CFO has been hired at LBI Holdings, parent company of Liberman Broadcasting. William Keenan will join the radio/TV group on May 3rd as Lenard Liberman again relinquishes the title of CFO to continue as Executive VP. Keenan was previously acting CFO of TVN Entertainment Corp., a video-on-demand company.
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More News Headlines
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Pirate FM busted
in Ft. Lauderdale
For months, Creole and Caribbean music had flowed from a pirate radio station stashed behind a Fort Lauderdale music store, reported The Miami Herald. On Friday, "Sak Pase Compas" was silenced after agents with the Florida Department of Law Enforcement shut it down -- making it the seventh pirate station FDLE has dismantled in about a year. Officers seized the station's equipment, including a transmitter, mixing board, CDs and microphones. Florida's anti-piracy law went into effect last summer, making interfering with signals from licensed public or commercial stations, or broadcasting without a license, a third-degree felony.
More HD Radio receivers now available
Earlier this month, the HD Digital Radio Alliance announced that three major specialty retailers launched massive in-store marketing, education and advertising programs to coincide with the in-store availability of HD digital radio receivers. Receivers have been available from online retailers since late 2005. And more than 30 models of automobiles will ship with HD digital radios by the 2008 model year. HD digital radio receivers are currently available from ABC Warehouse, Alamo Electronics, Audio Adviser, B&B Appliance, Bjorn's Stereo Designs, Car Toys, Crutchfield,com, eCost.com, Electronics Expo, Flanner's Audio & Video, Great Indoors (a unit of Sears Roebuck & Co.), HammacherSchlemmer.com, Harvey's, Hi-Fi Buys, Home Entertainment, Huppins Hi Fi, J & R Music, Listen Up, Magnolia Audio Video, One Call, Ovation AV, Pyramid Audio, Rudy's Autosound, Sound Advice, Spearit Sound, Tweeter and World of Sound. Links to national retailers selling HD Digital radios are at www.hdradio.com, which also features a HD Digital Radio Buyers Guide designed to assist consumers with this purchase. HD digital radio receivers are currently manufactured by more than 15 companies, including Audio Design Associates, Kenwood, Alpine, Panasonic, Boston Acoustics, Polk, Day Sequerra, Radiosophy, Delphi, Rotel, DICE, Sanyo, Eclipse (Fujitsu), JVC and Visteon. More than 20 Asia-based manufacturers have HD Digital Radio receivers in development.
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TVBR - TV News
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Retrans alternative debated at TVB
TV groups are finally having some success in getting cable MSOs to pay cash for retransmission consent, but at last week's TVB management conference, long-time Wall Street analyst Tom Wolzien, who currently heads his own firm, Wolzien LLC, proposed a new alternative. Noting that cable operators have a rule of "ABCs - - anything but cash," Wolzien suggested that there is a way for broadcasters and MSOs to work together. As more and more cable systems install two-way capability, Wolzien suggested that access to that return path may be more valuable to local TV stations in the long run than cash payments for retransmission consent. To demonstrate his theory, he's posted a calculator on his www.wolzien.com website for stations to input their own variables and determine whether cash or that return path is the better payoff. For a typical station in his scenario, the return path beats a 25-cents per sub payment in five years and a 50-cents per sub payment in 10 years. So, unless you can get a buck or two, he thinks the two-way capability might be the way to go. That brought a sharp rebuke from Gannett Broadcasting President/CEO Roger Ogden, who insisted that broadcasters shouldn't even have to give the MSOs any compensation for the two-way TV return path. Rather, he said, the cable systems should make it available for free because broadcast TV accounts for most of their viewing and two-way capability won't be worth much to consumers unless local TV stations are involved. In Ogden's view, compensation for retransmission consent should be a completely separate negotiation.
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April RBR/TVBR
Digital Magazine
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In this months Issue
We ask GMs and CEOs
about issues new NAB CEO
David Rehr should be tackling;
we also interview Rehr.
Magna Global's Brian Wieser
talks about the viability of
mobile video for ad placement.
We visit Indie/Classic Alternative KBZT-FM San Diego; and go OneonOne with B-101's Jerry Lee.
Read RBR/TVBR in 2 simple steps:
1.Create a simple account with Zinio and download the Zinio Reader.
2. You can then download the
April Issue of RBR/TVBR
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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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Sun-Times blasts CBS Radio
And it is Justified
In a column by Robert Feder took CBS and CEO Joel Hollander to task for his 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...Editor's note rest is not pretty.
RBR observation: 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. And Feder says Chicago isn't much better.
Publisher note: Spent the week (4-17) in NYC and saw the bus boards on Roth and then tuned him in. Comment is - NO Comment and by Friday 4-21 - Ta Dum - Roth got Pinked or you are fired. 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. RBR keeps telling ya and all wonder why radio is in a heck of a hess.
04/21/06 RBR #79
NAB boss David Rehr
sees shift in mission
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 can be reviewed in Washington Media Business Report column
04/21/06 RBR #79
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
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