Radio News ®

Eastlan chief not surprised by Cumulus' Arbitron deal
Eastlan President Mike Gould said he had not heard from Cumulus Media for some time, so he wasn't surprised to get a call from COO Jon Pinch telling him that the company was renewing its ratings contract with Arbitron - - a few hours before CEO Lew Dickey made the same announcement to Wall Street analysts.
| Full Story Click Here |

Radio service takes up First Amendment fight
Consultancy Jacobs Media is starting up a website which will encourage individuals who like what they hear on the radio these days to provide Congress and the FCC with some counterpoint to the loud calls to clean up the airwaves. It will attempt to inform citizens about the free speech implications of plans to enforce decency. The website is called SaveRadio.org. JM's Fred Jacobs said, "There is a large gap between the opinions about indecency that are being expressed by the FCC and Congress and what we're hearing from radio listeners in America. The purpose of this site is to provide educations, as well as equal voice for this silent majority to communicate to their elected representatives, and the regulators who are setting the tone." The site will provide access to legislators and regulators, and will also gather signatures for a petition headed in their direction.

Interep releases latest
Black consumer market study
Interep's just-released "Black Consumers - - A $688B and growing market," says Black buying power is increasing at a faster rate - - over 116% since 1990 - - than the total US buying power (+92%). Some highlights: In 2003, the nation's share of total buying power that is Black was 8.4%, up from 7.4% in 1990. From 1990 to 2001, college enrollment by recent high school graduates increased 60% for Blacks, compared to just 17% for all races in the US.The number of Blacks in managerial and professional specialty occupations grew by 157% in the 19 year period ending in 2002. Approximately 1 in 8 people in the US is black - - 12.7% of the population. * The Black population grew 50% from 1950 to 1970, and another 63% from 1970 to 2002. Over 36M strong in 2002, the Black population is projected to grow an additional 23% by 2020.* By 2050, the Black population is expected to grow to more than 61M--an additional 67%.

Measuring the Media Moguls

Citadel:
Farid Suleman, Chairman & CEO

2003 stock performance: +17.74%
2003 CEO pay: -44.05%

Farid Suelman succeeded in getting Citadel Broadcasting through Wall Street's IPO window in 2003. But since his $1 million bonus from 2002 wasn't repeated, his paycheck actually declined by 44.05%. | Full Story Click Here |

Conference Calls, Q1 2004

Clear Channel (finally) outperforms the radio industry
After several quarters of trailing the radio industry, or doing no better than keeping up, Wall Street analysts gave a collective cheer yesterday when Clear Channel finally produced a quarter of leading the industry. While the RAB recently reported that total radio revenues were up 4% in Q1, Clear Channel posted growth of 5%. And optimism is carrying through for Q2, with a gain of 5-6% predicted. | Full Story Click Here |

Gains for both radio and TV at Saga
Radio may be a much bigger part of Saga Communications, but TV was the star performer in Q1, while radio posted a good quarter as well. Overall, net revenues rose 11.6% to $29.2 million and station operating income (SOI) gained 18.1% to $8.7 million. On a same station basis, revenues were up 8% and SOI 16.1%. On a pro forma basis, radio revenues were up 6.4% to $26.4 million and SOI rose 18.5% to $8.3 million. TV revenues shot up 20.6% to $3.2 million and SOI gained a whopping 60.5% to $533,000. While some other radio group CEOs have been telling Wall Street that the market for stations should improve this year, Christian isn't buying it. "All of the low hanging fruit is gone," he said, so the acquisition process will continue to be slow. Even so, Saga did announce a new acquisition - - a $3.5 million deal to add WXLS-FM to its Champaign, IL cluster (see Media, Markets & Money).

Adbiz ©

Grubbs on this year's upfront
On speculating on the broadcast upfront, PHD CEO Steve Grubbs thinks the numbers will be very close to last year's 9.3B. "I think if there is an increase in revenue for the networks, it will be a minimal increase. But who knows, we're still three weeks out. A lot of budgets haven't been firmed up yet. Now last year at this point in time, I probably would have said the same thing, but there was a little more strength to the scatter market last year, so we sensed there might be potentially a stronger marketplace. But within the last week or two, as budgets firmed up, a whole slew of dollars just flooded in from, not only our clients, but other people's clients. And that's what really surprised the market. I don't think we'll see that this year." And while we hear everyone in attendance at the recent Network Upfront Discussion Group (4/9 RBR Daily Epaper #85) agreed not to talk to the press about the session that addressed upfront issues and problems, Grubbs wasn't there. He gives RBR his quick take on the process for the broadcast upfront: "I think it's ludicrous that $9B is essentially laid down within about a 72-hour time frame. I don't know that that's in anyone's best interest to do things that way. You want to have time to weigh your options and to do thorough comparisons when you're under a tight time frame. And there's concern that prices may increase. I'm not sure that's the best way for us to be operating."

Automakers threatening to cut TV ad spending
As the official start of the TV upfront nears (5/17), automakers are publicly threatening to cut or pull TV spend if rates start resembling last year's double-digit increases. Bill Burton, former head of Eastman Radio and current President of the Detroit Radio Advertising Group (DRAG), meets and greets with most of the motor city auto execs on a daily basis. He tells RBR/TVBR he's also hearing complaints about audience numbers.
| Full Story Click Here |

Hogan, Olds, Press meeting with auto execs
Bill Burton, President of the Detroit Radio Advertising Group (DRAG), also tells RBR that the automakers' disappointment with TV (see related story) is being shaped into an opportunity for radio. "Next week (5/10), I have CC Radio CEO John Hogan, pictured, flying in Monday night, along with Katz CEO Stu Olds and [President/Katz Dimensions] Bonnie Press. I have them set up with Ford, GM and Chrysler on the upfront. They are going to at least be there on their end saying, 'Hey, why not radio?' They called and asked if I could get them in the right doors and I did." Says Press, about Katz Dimensions: "What has evolved over time is our ability to create and the industry demand for programs that bring advertisers and agencies creative radio-based solutions to their marketing challenges...This is not 'spots & dots'. Marketing Dimensions has the capability to reach virtually every market in the country through our consolidated portfolio of represented client stations." RBR observation: We wonder if Olds and Press are going to the meeting to represent Clear Channel radio stations only, or all of Katz-repped stations as well. We assume all stations, since Katz Dimensions reps a ton of independents. Either way, this is how to get the job done - - getting radio to 10% of the ad pie. Tell the good story of radio while TV is being questioned.

Chemistri Chairman leaves for DaimlerChrysler
Gary Topolewski is resigning his post as Chairman and Chief Creative Officer at Chemistri (the Leo Burnett agency created for GM's Cadillac and Pontiac), for DaimlerChrysler's agency - - BBDO Detroit. Topolewski, 47, will join the Omnicom agency as co-chief creative officer where he will first focus on the Chrysler brand, as well as campaigns for Jeep and Dodge. The defection could throw a wrench into some successful GM marketing efforts, including a widely-acclaimed Cadillac campaign that revived the classic brand and plans for new Pontiac models. Topolewski's move follows news last week that Chemistri CEO Patrick Sherwood would leave the agency to pursue other ventures. Leo Burnett Worldwide President Tom Bernardin told Reuters the agency was "looking carefully at the circumstances surrounding (Topolewski's) recruitment at BBDO," without elaborating. He said Topolewski agreed to stay on during a transition period and that a search would begin for a new creative leader.

Media, Markets & Money tm

Washington Beat

Programming

Transactions

$1,000,000 WOTX-FM Manchester (Concord NH). 100% of Capitol Broadcasting Corporation Inc. from Concord Broadcasting LLC (Bruce G. Danziger) to Nassau Broadcasting Holdings (Louis F. Mercatanti). $100K escrow, balance in cash at closing. Superduopoly overlap with WJYY-FM Concord, WNNH-FM Henniker; additional overlap with WNHI-FM Belmont NH (Lake Winnepesaukee). [File date 3/30/04.]

$825,000 KEXS-AM Kansas City (Excelsior Springs MO) from Jeffco Television Corporation (Brad L. Campbell) to Kansas City Catholic Network Inc. (James O'Laughlin, Carolyn O'Laughlin, Jim Kafka). $25K escrow, balance in cash at closing. Non-profit buyer will switch to noncommercial operation of station. [File date 3/30/04.]

Stock Talk

Radio Stocks