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Welcome to RBR's Daily Epaper
Volume 25, Issue 85, Jim Carnegie, Editor & Publisher
Wednesday Morning April 30th, 2008
CBS beats expectations; raises dividend
Instead of the decline that Wall Street had expected, CBS Corporation delivered Q1 revenues that were essentially flat, with double digit gains in operating income and earnings per share. And the company announced yet another dividend increase - an additional two cents to 27 cents per quarter. CEO Les Moonves was a happy guy in his quarterly conference call - and he got a strong endorsement from Chairman Sumner Redstone. Radio was again a soft point, with same station revenues down 6%, but Moonves said CBS Radio is beginning to monetize its ratings gains. TV revenues were up 1%, despite the lack of the Super Bowl this year.

RBR observation: Sumner Redstone could turn on Moonves in an instant. After all, he was a big backer of Tom Freston at Viacom until he forced Freston out. But CBS continues to hit on virtually all cylinders, with the sputter from CBS Radio showing signs of correction. If there is any secret plot by Philippe Dauman to undermine Moonves and seize control of the entire Redstone empire, CBS and Viacom, Moonves isn't screwing up and giving him any opening.

NAB fights enhanced disclosure
Broadcasters already lead the league in federal regulation, says the NAB, and they do not want to be singled out for another burden not shared by their many new competitors. This particularly applies to the FCC's new localism initiatives, in which the association finds much to object to. . And it is even more of a concern when broadcasters are already local in a way many other media cannot possibly match. And in the end, NAB argues that the whole thing could well be counterproductive and result in less local programming than we have now.

Life goes on at Clear Channel
With no resolution in sight for its legal battling with six big banks over financing for its going private buyout, Clear Channel Communications has scheduled an annual shareholders meeting for May 27th. Public shareholders, who hadn't expected to still be shareholders at this point, are being asked to re-elect the company's directors and approve routine matters. They will also get to vote on four proposals from shareholders which are opposed by the board of directors, including one which would prohibit the company from paying millions to cover tax liabilities if Lowry, Mark or Randall Mays leave the company for any reason prior to the merger closing. Another would give shareholders an opportunity each year to vote in a referendum on whether pay for top executives is appropriate.

The price of compliance
One of the most obvious truths about broadcasting is that radiated signals do not respect political boundaries. And people, and by extension, the public interest, are served by receivable signals. There are many, many communities with a station licensed to them, but only several hundred are considered to be markets. And for the purposed of both the providers and consumers of broadcast programming, the market is the most important factor.

RBR observation: The FCC decided in its 6/2/03 rulemaking that use of contour methods was allowing hanky-panky when cluster building and went to a market based system.

Sales - Ideas Working Now
Real Estate Listings/Sales
-- By Paul Weyland
Situation: Regardless of the state of the economy people are still selling and buying homes. Real estate agents and brokers almost exclusively use the newspaper to advertise. Most of their ads look precisely the same.

RBR observation: Another value-added with your stations' website is the agents' virtual video tours of the homes they have listed. By spotlighting the realtor with video, you have one-upped the Sunday edition of any newspaper. Also remember these agents do have open houses on Saturdays and Sundays and have budgeted for this.

KRG forms Katz 360 Sales
Katz Radio Group (KRG) had formed a new division that will focus on expanding the company's digital efforts by offering national advertisers the ability to reach their target audiences through several different channels, which include on-air, online, HD and mobile. Katz 360 Sales will capitalize on Katz Radio Group's 2007 acquisition of Net Radio Sales (Jennifer Lane) by consolidating all of KRG's digital assets into a single unit.

JMA to handle ad sales
for Sharpton, Warren Ballentine

Jones MediaAmerica will be handling ad sales for The Reverend Al Sharpton Show and The Warren Ballentine Show via SupeRadio Networks, effective immediately. "We are very excited to add these two talented personalities to our family of top-notch talk show hosts. Reverend Sharpton and Mr. Ballantine are deeply involved in their community, and speak with intelligence, candor, humor and passion on subjects that have an effect on everyone in the country today," said Susan Love, Vice President of Sales & Marketing for JMA. SupeRadio will handle affiliate sales for the Syndication One Talk personalities.

WEEL turns from Gale to Dale
Argie Dale Sr. and his partner William H. Price have formed Dothan Broadcasting LLC, and they're using the company to acquire WEEL-AM in Dothan AL. The seller is Jack Gale and his JALO Broadcasting Corporation. The price is 246,589.12, most of which will be paid over time. 13K is going into a down payment. The Oldies outlet will be the only station for the buyers.

24M KKRG-FM, KIOT-FM & KKSS-FM/KJFA-FM Albuquerque NM (Albuquerque, Los Lunas, Santa Fe NM) from Univision Radio License Corporation (Joe Uva)/The Univision Trust, Bob Woodward, Trustee (for KIOT-FM only) to Centennial NM Licensing LLC, a subsidiary of Centennial Broadcasting II LLC (Allen B. Shaw). 2.4M escrow, balance in cash at closing. Existing superduopoly in Albuquerque, and an existing duopoly in Santa Fe. [File date 3/28/08.]

7K FM CP Damascus GA from Fisher Communications Inc. (Brandon Davis) to Network of Glory Inc. (Lola Richey). Cash, prepaid. Station is noncommerical. CP is for Class A on 89.7 MHz with 1.5 kw @ 207'. [File date 3/27/08.]


One good fine deserves another
It's one thing to operate from the wrong coordinates. It's another to fail to power down when the sun sets, as called for in a station's license. WNBN-AM Meridian MS managed to commit both violations. Owner Frank Rackley Jr. was aware that the station had strayed from its assigned coordinates. It apparently happened some time ago, when a deal to set up a transmitter at the licensed coordinates fell through. So Rackley simply set up shop elsewhere in the area, avoiding the requirement to power down from 2.5 kW during the day to 330 watts after the sun is down. In fact, the station was habitually staying at 2.5 kW straight through to its 9PM sign-off. The FCC assessed 8K in fines for the two uncontested infractions. However, a peek at the station's financials convinced the Commission to reduce the fine to 1.5K.

SRN's Bill Bennett named one of 50
most influential political pundits

Bill Bennett, host of Salem Radio Network's "Bill Bennett's Morning in America" has been named as one of "The 50 Most Influential Political Pundits in the United States" by the London newspaper The Daily Telegraph. The U.K. publication-analyzing the upcoming 2008 Presidential election-cited Bennett as "among those who will help Americans decide" as one of the "ubiquitous political pundits who help drive the national political conversation and shape public opinion."

Univision-Televisa trial postponed
Trial did not begin yesterday for Televisa's attempt to void its long-term contract to provide programming exclusively in the US to Univision. Both sides jointly requested a delay at the last minute, so US District Judge Philip Gutierrez has rescheduled the trial to July 1st. The Los Angeles Times speculated that the delay means that settlement talks are underway. Televisa sued Univision three years ago, claiming it had been shortchanged by 100 million bucks on royalty payments for some of its shows, which constitute a big chunk of Univision's primetime schedule. The legal battle has subsequently expanded into a full-blown war, with Televisa CEO Emilio Azcarraga Jean seeking early termination of the programming agreement, which runs through 2017, so he can pursue other opportunities in the US market.

LA Times targeting radio

Thanks to Regional Reps VP Gail Lawing for passing along a full page ad she saw yesterday while on a business trip to LA. The self-pitch for the Los Angeles Times declares "Sorry, radio, but the numbers send a clear signal." Unfortunately, the fax is not clear enough for us to reproduce here, but the ad includes a stack of radios next to a copy of the LA Times. "Run an ad during both morning and evening drive times on 20 top radio stations LA and you still won't reach as many people as a single ad in the Los Angeles Times." And the call letters of 20 LA stations are shown alongside the stack of receivers. The fine print says the comparison is based on Scarborough data.

RBR observation: Yes, but run and ad in the LA Times and you'll miss lots and lots of people who read some portion of that day's newspaper but don't happen to look at the page where your ad appears.

Cox Enterprises to buy online ad network company Adify
The Atlanta Journal-Constitution reports Adify Corp., an online ad network aggregator, is being bought by Cox Enterprises Inc. for 300 million.
Adify, based in San Bruno, CA, allows media companies to extend their ad sales beyond their own websites, said Adify CEO Russ Fradin. It identifies prospective Web sites with common content and offers them as a package to advertisers wanting to reach their readers without having to buy ads from each site individually. The customer list includes Forbes, The Guardian, HotChalk, Houseblogs, Martha Stewart, NBC Universal, Reuters, Time Warner and Washington Post Co.

More News Headlines
XM and Sirius delay shareholder meetings
With their long-pending merger still awaiting FCC approval, XM and Sirius Satellite Radio have put off its 2008 annual shareholders meeting. The XM meeting had been set for May 23rd and Sirius for May 20th. Both have been scrapped and no new dates scheduled.

Fred Murr dead at 60
Former Regent Communications Sr. VP Fred Murr lost his long battle with cancer of the pancreas this past weekend at a hospital in Paducah, KY. The Paducah Sun reports that the funeral mass and burial will be tomorrow in his hometown of Louisville.

Delay rejected in CCU trial
A judge in San Antonio wasted no time in rejecting a request by six big banks to delay trial in the case Clear Channel Communications until January 2009, well past the drop dead date of June 12th for the pending 26.7 billion bucks buyout. Trial is still set for June 2nd.

Cherry Creek Radio signs with Interep
Cherry Creek Radio has agreed to move all of their radio station properties under the Interep umbrella between Local Focus and McGavren Guild Radio. Currently, McGavren Guild radio represents the Cherry Creek stations in 4 markets. This multi-year agreement expands representation to ten markets between Local Focus and McGavren Guild.

"Big Ron" O'Brien's memorial service
If you're in the Philadelphia area, the service will be Friday, May 2nd at Bringhurst Funeral Home, West Laurel Hill Cemetery, 225 Belmont Avenue, Bala Cynwyd, PA.
For friends and fans who can not attend in person, the memorial service will also be webcast in real time on the Big Ron O'Brien tribute page on There is also a link on the webpage to make a donation in Big Ron O'Brien's name to The Children's Hospital of Philadelphia.

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Broadcast stocks down in mixed market
Stocks closed mixed Tuesday with investors awaiting another rate cut from the Fed. The Dow Industrials lost 40 points, or 0.3%, to 12,832. The S&P 500 was also down, but the Nasdaq Composite up.

Radio stocks were down. The RBR Radio Index declined 1.138, or 1.4%, to 81.679. Cox Radio fell 4.8%, Citadel 4.6% and Westwood One 4.4% as the day's worst performers.

CBS (Class B) gained 2.9% after reporting better than expected Q1 results.

Here's how stocks fared on Tuesday





















Journal Comm.







Lincoln Natl.





Radio One, Cl. A




Clear Channel*




Radio One, Cl. D*




Cox Radio*












Saga Commun.*




Debut Bcg.




Salem Comm.*








Sirius Sat. Radio








Spanish Bcg.*








Westwood One*








XM Sat. Radio













*Component of the RBR Radio Index

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Below the Fold
Ad Business Report
KRG forms
Katz 360 Sales

Media Markets & Money
WEEL turns from Gale to Dale

Company to acquire WEEL-AM

Internet Business Report
Cox Enterprises

Buys online ad network
company Adify

Dload - Powering Interactive Marketing

Media Moves
Hersam named EVP/Sales
Westwood One announced the appointment of Andrew Hersam to EVP/Sales and Chief Revenue Officer. Hersam was most recently Vice President and Publishing Director at Rodale Inc, where he helped the /Runner's World/ brand's advertising and sponsorship revenue for print, digital and events increase more than 150%.

New prez
at Christal

Katz Media Group announced the appointment of Christine Travaglini as President of Christal Radio, part of the Katz Radio Group.

WRXP building staff
Emmis' 101.9 RXP (WRXP) "The New York Rock Experience" announced Brian Phillips will be joining the station as their evening on-air personality, weeknights from 7pm-midnight.
Stations for Sale
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Industry Careers
Director of Sales
Washington, D.C. & Baltimore
Market-leading cluster has an opening for an experienced DOS. The ideal candidate has cluster sales management experience, inventory management skills and a track record of exceeding revenue goals. Clear Channel is an equal opportunity employer. To apply see radio careers.

Regional Director of Affiliate Relations
Sovereign City Communications, LLC seeks a positive, motivated individual with extensive radio experience. Get in on the ground floor of selling and launching the most exciting adult contemporary format to come along in years. To apply see radio careers.

Honolulu Sales Manager
Live, Lead, and Love What You Do in Paradise! Clear Channel Hawaii is in search of its next great sales manager to lead one of Honolulu's Top Performing Radio Stations. Join Hawaii's most dynamic media management team & line-up of tier one stations. To learn more see Radio Careers below.
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CBS Radio commits to posting
Adding to promises made by Greater Media's Peter Smyth and others: President of Sales Michael Weiss sent employees a memo on the new initiative. Details and the memo in
04/29/08 RBR #84

Senators decry the "specter of government regulated content"
Pat Roberts (R-KS) has fired off a letter to FCC Chairman Kevin Martin urging him to stay far away from getting into the program monitoring business, which is precisely where new enhanced reporting requirements are taking the Commission.
04/29/08 RBR #84


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