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Volume 23, Issue 86, Jim Carnegie, Editor & Publisher

Tuesday Morning May 2nd, 2006

Radio News ®

Sore spot: Revenues
March toward the red
The latest Radio Advertising Bureau revenue report shows that radio was down slightly in March, and for the third time in three months, local was the sore spot. On the bright side, national eked out its third consecutive trip to the black inkwell, and non-spot results proved once again that hard times are bringing out the creativity in those radio staffers charged with bringing in the bread. Local was down 2%, national managed to gain 1% and non-spot was up 5%. The three streams combined for a 1% loss over results for March 2005. YTD, the numbers are -2% for local, +3% for national and +9% for non-spot. That makes 2006 even-steven with 2005 through the first three months. Local is the official bread-and-butter category, and it has proven to be slightly less than sluggish so far, posting losses of -1 and -3 in the January/February preludes to March.

RBR observation: You would think that radio sales staffs have only so many rabbits to pull out of their hats, and at some point building up non-spot is not going to be enough to produce the sales flatline we're getting now. As the summer heats up, politicians may well be the cavalry that comes to the rescue. A pitched battle for the House of Representatives should do two good things. It should put the focus clearly on the local rather than national category, and radio's pure local attributes along with its competitive price structure - - Congressional campaigns will have only so much money to place in television - - should help pump up comps even if traditional customers remain air-shy.

Senate hunkers down
for Telecom omnibus
Senate Commerce Committee chair Ted Stevens (R-AK) has put forth what he calls the Communications, Consumer's Choice, and Broadband Deployment Act of 2006, informally described as a comprehensive telecom reform bill. It's a massive 10-parter, and is co-sponsored for the most part by Ranking Member Daniel Inouye (D-HI), who in a statement, however, indicated that he's not on board for the whole package as currently written. Stevens said there will be two public hearings followed by an executive session after Memorial Day for mark-up. The bill addresses * phone rates for military personnel overseas; * interoperability for first responders; * continued provision of universal service; * provision of interconnection rights for VoIP providers; * provides for national franchising, with local franchising authorities retaining flexibility in assessing fees up to 5% and to prevent redlining; * sets a 30 days shot clock for which franchise applications; * as in the House version, allows cable operators receiving new telco competition to opt into a national franchise arrangement; * prohibits any one MVPD from sitting on exclusive sports programming while allowing it to freely develop its own local programming; * provides for a broadcast flag; * permits municipalities to offer broadband service; * promotes unlicensed use of white space in the television band; * provides for warnings on analog TV sets that they are about to be obsolete and provides for further consumer education on the DTV transition; * prohibits the dissemination of child pron; and * orders the FCC to study network neutrality.

RBR observation: We were surprised to see the reference to child pron - - is that really a problem of even microscopic proportion? We note that while that non-issue got a mention, the much more relevant issue of broadcast indecency is absent. That will disappoint some watchdogs which were trying to get the issue on the docket. From what we've seen after the House effort on telecom, watch for fireworks on the issues of network neutrality and redlining/system build-out.

Analyst hot for Hispanic radio
Mainstream radio companies may be having a tough time, but not so their Spanish brethren. Wachovia Securities analyst Marci Ryvicker is applauding Spanish Broadcasting System (SBS) and Univision for Arbitron ratings gains in the nation's largest markets and thinks that also bodes well for Entravision, which operates mostly outside the top 10 (although it is in LA, San Francisco and Houston). "Our Winter 2006 ratings analysis for the top three radio markets (New York, Los Angeles and Chicago) confirms that Spanish-language radio is taking share from English-language radio," Ryvicker said in a note to clients. She noted that in all three markets, SBS or Univision had the highest or second-highest year-over-year share gains in both Adults 25-54 and Adults 18-34. In New York, for the 25-54 demo SBS was the big winner, up 17%, while CBS had the worst decline, off 25%, and for 18-34 Univision was up 12% and CBS down 31%. In LA, for 25-54 SBS gained 33% and Radio One fell 30%, and for 18-34 SBS was up 65% and Radio One down 33%. In Chicago, for 25-54 SBS was up 58% and CBS down 19%, and for 18-34 Univision was up 30% and ABC (soon to be Citadel) was down 34%.

Blue brother is watching
The New York Police Department (NYPD) has begun deploying video cameras in high crime areas to watch and record activities 24/7 and the New York Daily News reports that the first such camera in Manhattan will be set up to monitor the street in front of Emmis Communications' WQHT-FM "Hot 97." Several violent incidents have taken place outside the building in a high-priced neighborhood, the latest being a shooting last week of rapper Jamal "Gravy" Woolard by a hanger-on who was upset that he wasn't going to get to sit in on a scheduled on-air interview. Emmis had no comment on the planned camera, but sent RBR this statement about the latest incident: "While this incident took place outside the building before any station guests arrived at the studio, the security of our employees and neighbors is a paramount concern. We have been working with the building's security and the NYPD to implement strengthened security measures, and we will continue to do everything we can to protect our employees, neighbors and guests."

FTC set to shame names
Deceptive advertising is a constant target at the Federal Trade Commission. The rule of thumb for the media and the public alike is that if it sounds too good to be true, you can bet that it isn't true. But that doesn't always stop such advertising from going into circulation. Now, when the FTC announces the names of false advertising offenders, it'll add the names of enabling media outlets. According to reports, FTC Chair Deborah Platt Majoras announced the new policy last week. One of the biggest categories, with actions noted often on these pages, are weight loss advertisements - - any program which claims to be effective without being accompanied by dietary and exercise programs is categorically considered to be bogus. Of course, it's not just weight loss programs. The list of scams might be advertised on the air is as unlimited as the imagination of the American scammer. All that said, Majoras was highly complementary to broadcasters and cable companies, the vast majority of whom do take steps to protect their viewers and listeners from bogus products and services.

RBR observation: We'll soon find out which ones aren't doing such a good job. We'll bet, based one what we know to be the integrity and high moral tone of the average RBR subscriber, that your company will not be one of them.

Ad Business Report TM

Radio buyer now a psychic?
...or just a good advice giver? You decide. Not long after Rich Russo, JL Media's SVP/Director of Broadcast Services gave a short rant (sampled from a longer column in RBR/TVBR Solutions Magazine May issue) about HD Radio (4/16/06 RBR #74), one of his major points of advice mysteriously materialized from CBS Radio. Said Russo: "I would also program these stations better by using it as a showcase of radio's best. Since KROQ is regarded as the best and most influential alt rock station in the country, why isn't available as a subchannel in all markets?" Sure enough, CBS Radio announced yesterday will begin broadcasting the country's most listened to Rock station, KROQ-FM Los Angeles, on HD2 stations in Phoenix (KZON-FM) and San Diego (KSCF-FM). In addition, CBS Radio selected multicast programming for 50 more stations in 16 major markets. Secondary formats for over 60 CBS Radio stations were announced earlier this year. Stations with HD capability will have completed the launch of their new programming within the next three months.

CCRS appoints online sales team
Clear Channel Radio Sales (CCRS) has appointed an online sales team, it was announced by Jeff Howard, Regional President of CCRS. Jared Hand will run the unit as Vice President/Director of Sales. Dan Frisbie and Vincent Lambino will serve as Senior AEs. Jared Hand (Vice President/Director of Sales, Clear Channel Online Music and Radio) joins CCRS from Maxim Online, where he was most recently the East Coast Ad Director. Prior to that, he held sales positions with Clear Channel's WKTU and About.com. He began his career at DoubleClick. Dan Frisbie (Senior Account Executive, Clear Channel Online Music and Radio) joins CCRS from Performics, a division of DoubleClick, where he was a Sales Manager. Prior to that, he worked as a Senior Account Executive for Fathom Online. Before that, he was a Senior Account Manager for the southeast territory for LookSmart. Vincent Lambino (Senior Account Executive, Clear Channel Online Music and Radio) joins CCRS from Internet Broadcasting, where he worked as an Account Executive. Prior to that, he held sales positions at AMC/Women's Entertainment Television and the Weather Channel. He began his career in 1998 as a Sales Assistant for the Food Network.

Media Business Report TM

Gee, it seemed like a good idea at the time
The Los Angeles Times came up with a nifty new way to promote this week's debut of Paramount's movie "Mission: Impossible III" - - a gadget that played the movie's well-known theme song whenever anyone opened an LA Times newspaper box to buy the current issue of the daily. The devices are now in 4,500 boxes around the LA area. Or rather, make that 4,499 boxes. The LA County Sheriff's Department's bomb squad blew up one after a Times reader noticed the six-inch long box attached inside the newspaper dispenser with wires running to the door. Several other potential bomb alerts were phoned into various police agencies, although word quickly circulated that the devices were harmless and were supposed to be inside the boxes. Although the LA Times is short a newspaper box now, the unexpected publicity was not unwelcomed. "I think Paramount is pretty happy about it," said LA Times Sr. VP Mark Kurtich in his own paper's story as the newspaper became news.

Media Markets & Money TM

All in the Family: CPs sold
Donald E. Wildmon's American Family Association is sending four FM construction permits to Jimmy Swaggart's Family Worship Center Church. One of them is in Florida, the other three in Nebraska. The pricetag: 1M. The Florida stick, Class A WFFL-FM (91.7 mHz with 310 w @ 207'), is the only one in a rated market, which happens to be up on the panhandle in Panama City. The three Nebraska sticks include Class C3 KNBE-FM Beatrice (88.9 mHz with 25 kw @ 285'), Class A KNFA-FM Grand Island (90.7 mHz with 250 w @ 161') and Class A KNHA-FM (90.9 mHz with 500 w @ 148'). One of them, KNBE, has already applied for an upgrade. It wants to go to C2 with less power - - 7 kw - - but more stick - - up to 459'.

XM sells new bonds
XM Satellite Radio has completed part one of a two-part plan to cut its interest payments. It's sold 800 million in new bonds, consisting of 600 million of 9.75% senior notes due 2014 and 200 million of senior floating notes due 2013. Part two, as previously announced, is to buy back some more expensive bonds. XM has tenders pending (through May 10th) to buy back its 14% senior secured notes due 2009, its 12% senior secured notes due 2010 and its senior secured floating notes due 2009.

Washington Media Business Report TM

Corry AM forgets to take it EASy
As most broadcasters know, the FCC is not kidding when it comes to enforcing rules requiring the maintenance of operational Emergency Alert System equipment. And we have to say, we haven't seen any fines issued for failure to do the same lately. However, that string, however long it may be, is now officially broken. An EAS fine has been gone to Corry Communications, owners of WWCB-AM Corry PA. The 8K fine was received without protest. Corry is near the border with New York in the northwest part of the Pennsylvania.

Entertainment Media Business Report TM

CBS Radio, mSpot team for sports over mobile phones
CBS Radio and mSpot, mobile entertainment provider, announced a new partnership that will make three of CBS Radio's top sports stations available to subscribers of mSpot's All-Sports mobile radio service, mSpot Sports, which is currently available on select Sprint mobile phones. Beginning immediately, users of the service will be able to hear a live stream of New York's WFAN-AM, Chicago's WSCR-AM and Philadelphia's WIP-AM on their mobile phones by tuning into MSpot Sports. Top rated shows including WFAN's Imus in the Morning and Mike and the Mad Dog, WSCR's Mike North, and WIP's Howard Eskin will be among the programs listeners will have access to on mSpot's Sports Radio Channel. Clear Channel has also reportedly signed with mSpot, providing programming from WDFN-AM Detroit, KBME-AM Houston, WTEM-AM DC, and five others to the service.

More web buys for Rupert
This is not on the scale of the 580 million that Rupert Murdoch's company paid last year for Intermix Media, but News Corporation's Fox Interactive Media (FIM) has made two more acquisitions. No prices were disclosed for acquiring kSolo.com, a music service, and Newroo, which scans web content. Both are early stage companies, but FIM sees them as worthwhile additions to its growing portfolio of Internet-based businesses. "Fox Interactive Media's acquisitions of Newroo and kSolo demonstrate our commitment to empowering users with interesting tools that they can use to further enhance their online experience and online identity. The acquisitions further validate FIM's ability to unearth early stage, technically savvy web 2.0 companies led by entrepreneurial, forward-thinking management teams," said FIM President Ross Levinsohn.

Here's how the two acquisitions are described:
kSolo.com is the world's first Web based karaoke service, providing users with the opportunity to sing their favorite songs, record their personal performances and send their personalized renditions to their friends. Utilizing proprietary technology and requiring nothing more than a microphone and an Internet connection, the service is available to users anywhere with a connected PC. Members can also send their recordings via email (as a singing eCard) and to webcast their performances for the world to judge. The company recently received first prize at the prestigious Popkomm IMEA awards, held in Berlin, Germany. Newroo was founded in 2002 by Daniel Gould and Brian Norgard who attended Brown University together and who wanted to provide users with a powerful tool set to create vertical news-driven websites that found the most important things on the web about their personal passions and interests. The company has developed an intelligent tool that scans the web and finds the most relevant information for users from thousands of websites, enabling them to easily create their own web sites by aggregating and remixing content from third-party websites and blogs.

Ratings & Research

Claritas segmentations incorporated
into Scarborough databases
Scarborough Research announced that it has augmented its service to provide even more consumer detail in the financial and telecom industries with the addition of Claritas segmentation products, ConneXions and P$YCLE NE to its database. Scarborough clients seeking in-depth information on consumer habits in the telecom categories can execute analyses that combine Scarborough's local, regional and national consumer shopping, media, lifestyle and demographic information with ConneXions product usage, purchasing intent, product preference and product switching behavior insights. Similarly, financial marketers are able to leverage the consumer investment and financial behavior information in P$YCLE NE against Scarborough's measurements. ConneXions is a household-level segmentation system for the telecom industry, designed for video, voice and data services. It differentiates individual households by the types of communications products and services they currently have or intend to purchase, as well as monthly bill expenditures for these services. ConneXions segments reveal patterns of consumer behavior for frequency, value and profitability of wireline, wireless, cable/satellite and Internet products and services. Scarborough's measurements in the telecom category include cellular, local and long distance usage and spending, television connections (cable, digital cable, VOD, satellite, etc.), and detailed Internet usage, connections and shopping insights.

Transactions

45M KRDO-AM-TV Colorado Springs CO and KJCT-TV Grand Junction CO from Pikes Peak Broadcasting Co. (Patti L. Hoth, Harry Hoth) to Pikes Peak Television Inc., a subsidiary of News-Press & Gazette Co. (David Bradley Jr. et al). 2.25M escrow, balance in cash at closing. Existing cross-ownership in Colorado Springs, where buyer also takes over seller's LMA for KSKX-FM. KRDO-TV is ABC affiliate on Channel 13/DTV 24; KJCT-TV is ABC affiliate on Channel 8/DTV 7. [File date 4/17/06.]

Stock Talk

Bernanke speaks, stocks sink
Fed chief Ben Bernanke told CNBC that he's concerned about media outlets and investors reading too much into his recent statement that the Fed could pause its string of rate hikes. That new indication that the Fed isn't through raising rates was not well received on Wall Street. The Dow Industrials fell 24 points, or 0.2%, to 11,343.

Radio stocks were hard hit. The Radio Index fell 1.903, or 1.3%, to 149.922 - - a year-to-date low. Even upbeat comments from Wacovia analyst Marci Ryvicker didn't help Spanish radio stocks. SBS fell 2%, Entravision declined 1.8% and Univision inched up 0.1%. The day's worst performers were Beasley, down 5.3%, and Westwood One, off 4%.

Radio Stocks

**Here's how stocks fared on Monday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Arbitron	ARB		35.39	-0.27	Hearst-Argyle	HTV		22.80	-0.22
Beasley	BBGI		8.91	-0.50	Journal Comm.	JRN		11.50	-0.23
CBS CI. B	CBS		25.78	+0.31	Lincoln Natl.	LNC		57.29	-0.79
CBS CI. A	CBSa		25.70	+0.24	Radio One, Cl. A	ROIA		7.03	-0.13
Citadel	CDL		9.66	+0.25	Radio One, Cl. D	ROIAK		7.02	-0.17
Clear Channel	CCU		28.80	+0.27	Regent	RGCI		4.28	+0.02
Cox Radio	CXR		12.69	-0.22	Saga Commun.	SGA		9.10	-0.06
Cumulus	CMLS		10.55	-0.01	Salem Comm.	SALM		15.28	unch
Disney	DIS		27.67	-0.29	Sirius Sat. Radio	SIRI		4.62	-0.06
Emmis	EMMS		12.13	-0.17	Spanish Bcg.	SBSA		4.96	-0.10
Entercom	ETM		26.04	-0.43	Univision	UVN		35.72	+0.03
Entravision	EVC		8.23	-0.15	Westwood One	WON		9.26	-0.39
Fisher	FSCI		42.90	-0.39	XM Sat. Radio	XMSR		18.71	-1.57
Gaylord	GET		44.13	-0.12	-	-	-	-	-

Bounceback

Send Us Your Opinions We want to
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Below the Fold

Ad Business Report
Radio buyer now a psychic?
Or just a good advice giver? You decide...

Media Business Report
Seemed like a good idea
"Mission: Impossible III" gadget playing the theme gets surprise...

Media Markets & Money
All in the FamilyCPs sold
Sending four FM construction permits to Jimmy Swaggart...

Washington Media Business Report
Corry AM forgets
FCC is not kidding when it comes to enforcing rules...

Ratings & Research
Claritas segmentations
Incorporated into Scarborough...

Radio Media Moves

From Rush to Reagan
Former Rush Limbaugh Show producer Brett Winterble has been named lead producer of the Michael Reagan Show, which is syndicated by Radio America.

Kruk to bat for WPEN
Greater Media announced that former Major League Baseball All-Star John Kruk is joining the on-air staff or WPEN-AM "Sports Talk 950" Philadelphia, with his precise role to be revealed this Thursday. Kruk will continue to be an analyst for ESPN.

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]

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April '06 RBR/TVBR Solutions Magazine

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RBR Radar 2006

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

RBR News Analysis
The Digital Train has left the station
Digital is everywhere it dominated NAB 2006 - Digital television, digital video, digital audio, digital editing, digital tools to deliver text and photos to cell, digital tools to deliver audio and video on the Internet, backroom software to deal with TV's move to multiple DTV channels, HD, Ultra HD...digital everything. Somewhere in the midst of all of that was HD Radio.

RBR observation: The Digital Train has left the station. As radio is in early Spring as you read below in our Special News Analysis entitled 'The Digital Train' that if anyone is in denial that 'Technology Waits for No One' then change careers or sell your business and go to Naples, FL. Radio has one last effort to Bootstrap and Re-Build into the platform business of Digital - Electronic - Internet - Mobile - and total Media Cross Platforms and it is time to bring in from the outside this new breed of people. They are there coming out of college but they do not want to work in 'Old Traditional Media' as they want 'New Media' which is still being determined what new is from our recent travels to the 4A's, TVB, and NAB. Radio you still have a shot if you get on 'The Digital Train'. Read complete analysis in
05/01/06 RBR #85

Radio analyst sees better investments elsewhere
Wachovia Securities analyst Marcia Ryvicker's main focus is radio companies, but after looking at what's been going on in the industry, she doesn't see much to excite her. Rather, she's telling clients they should be putting their money into Internet, Outdoor and Hispanic media stocks. Based on what the big ad agencies are reporting to Wall Street, ad spending is up. But you wouldn't know it from the public radio companies, where revenues are pretty flat while expenses are rising. So where is the new spending going? Ryvicker thinks the beneficiaries are Internet companies, outdoor advertising (billboard) companies and Hispanic media - the latter being the one good growth area for broadcasting..

RBR observation: The Digital Train has left the station. As radio is in early Spring we just finished stating that if anyone is in denial that 'Technology Waits for No One' then change careers or sell your business and go to Naples, FL. Radio has one last effort to Bootstrap Re-Build into the platform business of Digital - Electronic - Internet - Mobile - and total Media Cross Platforms and it is time to bring in from the outside this new breed of people. They are there coming out of college but they do not want to work in 'Old Traditional Media' as they want 'New Media' which is still being determined what new is from our recent travels to the 4A's, TVB, and NAB. Radio you still have a shot if you get on 'The Digital Train'.
05/01/06 RBR #85

RBR Exclusive
Randy Michaels gets
a New York stick
Former Clear Channel Radio CEO Randy Michaels is set to return to operating a major market radio station. RBR has learned that Michaels will take over programming of WLIB-AM New York when Air America Radio's current LMA expires August 31st. The station will continue to have a Progressive Talk format, but Michaels will replace Air America's network programming with a series of new local talk shows with a liberal bent. Michael's deal with licensee Inner City Broadcasting won't be an LMA, but rather a joint venture.

RBR observation: This isn't about politics, but rather business. WLIB's programming will remain on the left. But Inner City sees more upside from putting local programming on the air in the nation's largest market. The question now is whether Air America will be able to find a new flagship station for its network in New York. That won't be easy.
04/27/06 RBR #83

NAB 2006 Report:
Martin defends
indecency enforcement
Insisting that there's been no change in how the FCC interprets what is or is not indecent. "I'm not sure when people say they want more guidance that it is that different than what it was in 1978 or '79," Martin said public outcry over indecency is growing.

The future is in beating the iPod
"You have to find a way to be better at what you do than the iPod does," was the advice for radio broadcasters from Wall Street Journal technology columnist Walter Mossberg. "... you have to figure out how to beat the iPod."
04/26/06 RBR #82

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Affiliate Relations
Talk Radio Network is expanding and we are looking for someone with great phone techniques who is enthusiastic about joining our successful team.
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Account Executive
KUVN-TV Univision Dallas is seeking an experienced AE with 4-yr college degree and minimum 3 years experience in electronic media sales. Proven success records & excellent new business development skills.
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