RBR's Daily Morning Epaper

Volume 22, Issue 83, Jim Carnegie, Editor & Publisher

Wednesday Morning April 27th, 2005

Radio News®

Coen: 2004 was better than thought
Universal McCann forecasting guru Bob Coen has been tallying up the final numbers for 2004 ad spending - - and concluded that the year came in a bit better than he had projected in December. The percentage gain was still 7.4%, but the final tally was a little higher - - 263.766 billion, rather than 263.699 billion. The showing by national advertisers was stronger, while local ad spending lagged. Local radio finished up 3%, rather than the 4% that Coen had projected. Likewise, local TV was up only 7.3%, not 8.5%. Network TV, however, rose 11.2%, not just 9.5%, and national spot TV gained 14.3%, rather than 10%. "Consolidations in many areas have reduced the number of local marketers and often redirected spending into nationally distributed media. The Wal-Mart effect has cut into the available co-op advertising funds and focused local appeals nearly entirely on price. Many local marketers now concentrate on the use of preprinted inserts; highly targeted mail advertising programs and increased spending on the internet. These shifts have cut into many of the other traditional local media budgets," Coen noted. Then he added, "The advertising recovery is finally under way, although spotty in some media. The recovery should continue for the rest of this decade and possibly beyond if similar recovery patterns of the past are repeated to any degree." We have Coen's final numbers medium-by-medium for 2004. | View Coen's Chart |

Greater Media managers
see future in HD Radio
iBiquity CEO Bob Struble was a special guest at Greater Media's management meeting this month in Palm Beach Gardens, FL. "This year, we will see the introduction of a number of new receivers, including the first table top HD Radio from Boston Acoustics as well as second-generation of in-car receivers. They all will be multicasting capable. This will allow listeners to access the new digital multicast channels that are coming," said Struble. "The innovation that will come from the deployment of HD Radio is limited only by our imaginations," said Peter Smyth, President and CEO of Greater Media. Pictured are Bill Stedman of WCSX-FM Detroit, Struble, Tom Bender of Greater Media Detroit, Doug Podell of WRIF-FM Detroit and Lori Bennett of WMGC-FM Detroit. WMGC was honored for being the first station in the country to give away HD Radio receivers on air.

McCain wants to mandate TV for the visually impaired
The Television Information-Enhancement for the Visually Impaired Act of 2005 (TIVI) has been officially introduced by Sen. John McCain (R-AZ). It would require television stations to provide verbal descriptions of programming for at least 50 hours of prime time or children's programming per quarter, using a secondary audio programming (SAP) subcarrier channel much like is done to provide translations of the programming into foreign languages. "I sincerely hope that television broadcasters will work with us to provide video descriptions for individuals with visual disabilities. Since the spectrum that television broadcasters utilize is a public asset, one would expect that programming over the public airwaves is accessible to all Americans. Unfortunately, that is not the case today and that is why we must pass the TIVI Act." The bill would authorize the FCC to "make additional changes to the video description rules, and would have the FCC check into the feasibility of requirements to include "accessible information" in the description rules such as written info, hazard warnings and emergency info, and news bulletins.

Drilling down in the Pew report
While it is probably to be expected that individuals identifying themselves as religious seculars are the least concerned with broadcast indecency, the fact is that two out of three religious groups are less concerned about indecency than they are about undue government restrictions, according to the report on the topic from the Pew Research Center for the People and the Press. When asked which poses the greater danger, government restriction of harmful content, the secular crowd said the danger was restriction by a margin of 64%-27%. White Catholics were on the same side, but with a much more even split, 47%-43%. 42% of White Protestants thought government restriction was the greater greater danger, while 45% said content. However, Pew drilled that number down a bit deeper. Mainline Protestants sided with seculars, naming restriction over content by a 49%-39% margin. Evangelicals went very much the other way, 36%-51%.

Martin passes the hat in House subcom
FCC Chairman Kevin Martin made his first appearance before a congressional oversight body, explaining the latest FCC funding request to the House Subcommittee on Commerce, Science, State, Justice and Commerce, part of Appropriations. He explained that he was essentially presenting the work of his predecessor, Michael Powell. The FY 2006 request of 304.057M is about 23M above that of the previous year. Just shy of 300M will be funded through regulatory fees, with 4.8M coming as a direct appropriation. A chunk of the increase is to handle non-discretionary increases in expenses. 9.3M is being requested to improve the FCC's Columbia MD facilities, with benefits accruing to both the Department of Defense and the Department of Homeland Security.

XM adds Spanish language sports channel
XM Satellite Radio announced it will launch a national 24- hour Spanish-language sports channel in partnership with Andres Cantor, the legendary soccer play-by-play announcer and chairman of Futbol de Primera, the leading syndicator of soccer programming in Hispanic radio. The channel, slated to launch in July, will feature in-depth Spanish coverage of the FIFA World Cup Germany 2006, including qualifying matches, beginning later this year (XM will carry English-language coverage of World Cup soccer matches on a separate channel). In addition, the channel will feature coverage of all sports from Latin America and Mexico, including baseball and boxing, along with real-time reporting on sports from all over the world. General Motors will be the presenting sponsor.

Conference Calls Q1 2005

Broadcast profits jump at Meredith
Total broadcast revenues were up only 1% in fiscal Q3 (January-March) to 69.8 million at Meredith Corp., but that included a 4% increase in non-political revenues. The addition of new TV stations in Kansas City and Chattanooga was partly responsible, but that was offset by the lack of political advertising and no Super Bowl this year on Meredith's CBS affiliates. More important than the small rise in revenues was a big jump in operating profits for the broadcast unit - - up 14% to 16.2 million. Meredith owns 14 TV stations and one radio station. Publishing revenues were up 2% to 235.7 million and profits up 6% to 55 million. For the current quarter, publishing revenues are currently pacing up in the mid-single digits and broadcast is up in the low-single digits. The company noted strength for its TV sales in home products, food, education, media (movies) and professional services. New Meredith Broadcast President Paul Karpowicz noted that auto, the biggest category of all, was a little soft in Q3 and he expects it to be flat to up "just a tick" in fiscal Q4.

Adbiz©

RadioShack hires
Arnold as AOR
RadioShack has tapped Arnold Worldwide as its AOR, putting the Boston-based firm in charge of the consumer electronics retailer's 250 million-dollar account. RadioShack's advertising was previously handled by the retailer's in-house agency, Circle R Group. Finalists for the account included TWBA/Chiat/Day, Deutsch L.A. and Carmichael Lynch. Radio Shack said it had invited 20 agencies to compete for the account in a 10-week review process, but Arnold was not among those originally invited. The agency was one of about 40 that sent in unsolicited information.

Scripps Networks using Ontra
presentation software to sell upfront ads
Ontra Presentations, a provider of enterprise presentation software and services, announced Scripps Networks has selected its software to design and present its 2005 Upfront presentation. Scripps Networks joins ABC National Sales, NBC stations, Warner Brothers Domestic TV Distribution, Fox Broadcasting, Tribune Entertainment, Towers Perrin and other industry leaders as users of Ontra Presentations. Scripps Networks operates Home & Garden Television, Food Network, DIY Network, Fine Living and Great American Country (GAC). Jon Steinlauf, SVP of Ad Sales, Scripps Networks, views the Ontra presentation as a valuable investment beyond the Upfront season because the national sales force will continue to use it for the rest of the year. Scripps Networks benefits from Ontra's ability to seamlessly integrate videos into a staged presentation that includes five different networks. Furthermore, the Ontra presentation manages a library of slides representing each network, which enables salespeople to present each of the Scripps Networks without additional training.

Radio & Television Business Report Magazine

June Magazine
'05 Clock is Ticking -
Heading for Closure

National Sales:
EDI - Electronic Delivered Invoicing
Special Analysis:
Public now Go Private
Media, Markets & Money:
Shakers & Makers in the
Public Market

Reserve your Ad Marketing Space today. Advertising space is limited, contact:
June Barnes [email protected] ----- or ----- Jim Carnegie [email protected]

Media Markets & MoneyTM

Tale of Tallahassee: Triad out, Opus in
Jim Shea is taking his Opus Media Partners, which up to now had been a Louisiana group, into a second state - - Florida, beginning with the state capitol. Media Venture Partners reports that Opus has a deal to buy the Triad Brwoadcasting cluster in Tallahassee for 12 million bucks. Included are Country WAIB-FM, Classic Hits WEGT-FM, CHR WHTF-FM and Classic Rock WUTL-FM. An LMA will begin May 1st, with closing expected in August.

RBR observation: Obviously, things have not gone as Triad CEO David Benjamin had hoped and expected in Tallahassee, where his company has been battling two of the multi-market giants, Clear Channel and Cumulus. Triad paid 15 million for three of these stations in 2000 and bought WUTL from Cumulus in 2001 for 1.725 million, so the company is taking a haircut as it exits the market.

Washington Beat

Ch-ch-ch-ch-changes...
What was supposed to be a busy day - - in fact, an impossible day for standalone reporters on the Washington beat - - has suddenly become a nothing day. The FCC open meeting for April, once scheduled for Thursday, 4/28/05 9:30, is still on for 9:30, but the day has moved to Friday, 4/29/05. A couple of planks deal with broadcast television carriage rules for satellite, one specific to Alaska and Hawaii, the other specific to digital programming in unserved areas. Over at Ted Stevens' (R-AK) Senate Commerce Committee, a hearing on an as-yet unintroduced bill dealing with VNRs has been postponed until further notice.

Transactions

550K WKNZ-FM Laurel Hattiesburg MS (Collins MS). 50% of Radio Broadcasters LLC from John H. Phillips (50% to 0%) to Cheryl Rainey (0% to 50%). Cash. Kenneth R. Rainey Sr.'s stake remains at 50%. Duopoly with WMXI-FM Laurel, licensed to Rainey Broadcasting Inc. [File date 3/28/05.]

450K KXXQ-FM Grants NM. 100% of KXXQ Broadcasting Partners LLC from Thomas Hodgins (21% to 0%), Cecil Zebra (15.8% to 0%), Carl E. Halsan (15.8% to 0%), Robert Konen (15.8% to 0%), Chris Jacky (15.8% to 0%) & Chris Gilbreth (15.8% to 0%) to IHR Educational Broadcasting (Douglas M. Sherman, Janet B. Sherman, Charles Day, Margaret Day). 22.5K escrow, balance in cash at closing. Station holds CP to move to Milan NM, Class C0, 100 kW @ 1,362'. [File date 3/29/05.]

Stock Talk

Parachutes, anyone?
Once again, broadcast issues went for a ride with the herd, and unfortunately, the herd was headed downward. A few less-than-stellar earnings reports and a dip in consumer confidence took a bite out of most listings, causing many to lose a quarter or two. Winners were few and far between.

Radio Stocks

**Here's how stocks fared on Tuesday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		41.06	-1.32	Jeff-Pilot	JP		47.81	-0.40
Beasley	BBGI		15.17	-0.26	Journal Comm.	JRN		15.70	-0.36
Citadel	CDL		12.65	unch	Radio One, Cl. A	ROIA		13.26	-0.16
Clear Channel	CCU		32.59	-0.26	Radio One, Cl. D	ROIAK		13.26	-0.19
Cox Radio	CXR		15.78	+0.12	Regent	RGCI		5.51	-0.32
Cumulus	CMLS		13.22	-0.18	Saga Commun.	SGA		14.50	-0.35
Disney	DIS		26.81	-0.39	Salem Comm.	SALM		19.12	-0.45
Emmis	EMMS		16.22	-0.43	Sirius Sat. Radio	SIRI		4.87	-0.27
Entercom	ETM		32.97	-0.05	Spanish Bcg.	SBSA		8.59	-0.27
Entravision	EVC		7.90	-0.10	Univision	UVN		26.30	+0.21
Fisher	FSCI		49.26	-0.15	Viacom, Cl. A	VIA		35.05	-0.54
Gaylord	GET		40.16	+0.11	Viacom, Cl. B	VIAb		34.80	-0.57
Hearst-Argyle	HTV		25.02	+0.01	Westwood One	WON		18.79	-0.28
Interep	IREP		0.46	-0.08	XM Sat. Radio	XMSR		27.60	+0.20
International Bcg.	IBCS		0.01	unch	-	-	-	-	-

Bounceback

Send Us Your Opinions We want to
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This is your column, so send your comments to [email protected]

Arbitrends

Upped & Tapped

Elberg running WLIB
Former Univision Radio VP of Sales and WKTU-FM NYC GM Scott Elberg has been named VP/General Manager of WLIB-AM NYC by Air America Radio. "Scott is an 'A player' in New York Radio and is exactly what Air America Radio needs to take our flagship station, WLIB, to the next level," said Air America President Gary Krantz.

Eagleeye rises
Michelle Eagleeye, who joined Katz Dimensions in 1998, has now been promoted to Senior Director of Clear Channel Katz Advantage's Marketing Business Development Team in Chicago.

Stations For Sale

Santa Fe Market New FM
Market #237 has a new FM station ready to go and priced right! Santa Fe is a unique and rich market! A great opportunity for an aggressive, innovative operator!
Cliff at Clifton Gardiner & Co
(303)758-6900
[email protected]

More News Headlines

Open Media Network to offer digital TV, radio shows online for free

CC Katz Advantage
opens Boston office

Laura Ingraham
battles breast cancer

KCRW adds more
on-demand programming

Too many Detroit
radio stars are dying

RBR Radar 2005

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

Susquehanna sell-off:
Who makes sense?
When it comes to the sale of Susquehanna Media, getting the money together to make a bid isn't the only thing to consider. Financial backing for acquisitions is plentiful for all of the established players. So then there's the strategic question: Who fits and who doesn't? We can guarantee this - - Clear Channel won't be the overall buyer. We examine the possibilities market-by-market.
RBR observation: We've already mentioned that Cox Radio is the ideal buyer, The other really good fit that emerges from our market-by-market analysis is Entercom, although it wouldn't have a use for the cable properties. 04/26/05 RBR #82

Raycom launching video channel
Has figure out what to do with one of its multicast digital channels. It's teamed with MTV co-founder Les Garland to launch a new video music channel. The new venture, Tube Music Network, will feature adult contemporary (AC) music and target adults 35+. It will be based in Miami and air on a digital channel of each of Raycom's 39 stations. And before you apply to be a video jock - - don't bother. There won't be any, just non-stop music videos. (At least in the beginning.) RBR observation: One thing about Garland is he came from Radio first and was a great RKO program director. Always trust a great '70's Top 40 PD.
04/26/05 RBR #82

Elvis Presley Enterprises to air first promotional ads on TV
Elvis Presley Enterprises, Inc. (EPE) has created two 30-second TV spots designed to attract vacationing families to Graceland, via Thompson & Co. It will be the first time in history that the company has used TV ads to promote Graceland. The commercials, tagged, "Graceland. Where Elvis Lives," will air nationally beginning in late April. EPE is leveraging two primetime CBS shows set to air in during the sweeps month of May. The first, "Elvis," is a two-part miniseries; "Elvis By the Presleys" is a TV special with interviews from Priscilla Presley and Lisa Marie Presley. The ads will air on Dish Network's women-targeted channels including HGTV, Lifetime, Food Network, Style, Discovery Home, WE, Lifetime Movie Network and SoapNET. RBR observation: Why is Graceland suddenly spending the big bucks in TV? EPE is now controlled by Bob Sillerman's CKX Inc. which is out to increase revenues and generate a return on its 100 million investment.
04/26/05 RBR #82

LSM-Suburban Chicago
NextMedia - Joliet, IL looking for a LSM who will keep the momentum going and build on it. Four station cluster has grown significantly if you can do the job, fit into a strong team come join us.

Details see Radio Careers

For Confidential Placement Contact: Cathy Carnegie, VP, [email protected]

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