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Our Executive Editor still thinks that everyone doing the "Jack" format owes him a royalty payment...

I've been reading with interest the stories and letters to the editor about stations going lemming-like, with the "Jack/Bob/Simon-we-play-everything-we're-just-like-an-iPod-on-shuffle-format." Here's my "take," as a 28 year broadcaster, albeit a "Sales Guy", not a Programmer, who literally grew up in the business (my father,

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CC Radio boosts Rahily
Clear Channel Radio has elevated Charlie Rahilly to Executive Vice President of Operations as part the company's plans to elevate its programming, sales and operations positions to Executive Vice President level. In his new position, Rahilly will oversee the West Coast operations while the CC Radio looks for an EVP for the East Coast region.

Hannity's stalker arrested, again

Tom Star, former Talk America President, passes

NABOB sets spring conference

RCS signs CT School
of Broadcasting

Paxson slammed by court ruling
NBC Universal has won a legal round with Paxson Communications - - winning a ruling from the Delaware Chancery Court that sets the dividend rate on its Paxson convertible preferred stock at 28.3% annually. That's considerably higher than the 16.2% rate that Paxson had put in place last September, based on its interpretation of the formula (set by CIBC) to be used. Still pending is a court ruling on a more important matter - - whether Paxson is obligated to redeem the convertible preferred stock owned by NBC Uni.

TVBR observation: There's no way currently for Paxson to come up with the original 415 million face value of the NBC Uni investment, let alone the accumulated dividends, so a ruling against Paxson would force it into default. Just what that would mean, however, is unclear. NBC Uni can't acquire Paxson's TV stations under the current FCC ownership rules, so another buyer would have to be found - - and none has been found after several years of shopping the company.

Univision claims parity with Big Four
A few years back Fox expanded the Big Three of network TV to the Big Four. Now, as the upfront season begins, Univision is pressing its case for the Big Five. It is claiming parity with ABC, CBS, Fox and NBC in the youthful (and sought after) 18-34 demo, using Nielsen data to show that for the first time ever it was the #1 network 18-34 in primetime on 19 nights so far in the 2004-2005 TV season. And Univision says it was in the top four - - beating at least one of the so-called Big Four - - 137 nights. That's nearly two out of three nights for the current season. "On numerous occasions throughout the season, Univision has delivered more young adult viewers than new episodes of hit shows such as 'Lost,' '24,' 'The Apprentice,' 'O.C.,' and 'CSI: Miami,' among others. For example, a recent broadcast of Univision novela 'Rubi' drew more than 3.1 million Adults 18-34, compared to NBC's 'The Contender' and FOX's '24' that each drew 2.7 million, and ABC's 'Supernanny' and CBS's 'Everybody Loves Raymond' that each drew 2.2 million. So far this season, Univision has averaged 1,362,000 Adult 18-34 primetime viewers, up 36% from last year. The 'Big 4' English-language networks have averaged 2,040,000 Adult 18-34 primetime viewers this season, showing no growth over last year," Univision said to bolster its claim to being in the network big leagues.

High multiples for
Susquehanna stations
But it doesn't look like George Beasley will be in the final round of bidding for them. It appears that there will be a lot more merger and acquisition activity in radio in 2005 than in recent years. Beasley indicated that the projected multiples for Susquehanna's big market will be sky high and making it unlikely that publicly traded companies like Beasley Broadcast Group will be able to justify paying the price. Rather than public buyers, he sees companies with private equity backing emerging as the winning bidders. 05/03/05 RBR #87

Project Apollo a go for end of year
Arbitron and VNU have agreed to deploy a demonstration of the "Project Apollo" national marketing research service by the end of this year. The pilot project, using Arbitron's Portable People Meter, will include more than 6,000 households nationwide. RBR observation: Arbitron and VNU/Nielsen are emphasizing that the use of PPM for Project Apollo will be very different from any use of the technology for radio and/or TV ratings. Nevertheless, it is significant for broadcasters to see the companies working together. 05/03/05 RBR #87

CBS Les Moonves wants retransmission cash
Since his company will no longer have MTV Networks' expansion needs as a bargaining consideration for negotiations with the cable MSOs, he expects to get something else - - cash payments. No longer will it be Perry Sook at Nexstar standing alone in smaller markets to do battle with the MSOs - - CBS will be demanding payment in the nation's largest markets. TVBR observation: This could make CBS the 800-pound gorilla that forces the MSOs to come to the negotiating table and finally agree to pay for the most popular programming that they sell to their subscribers - - broadcast network television. It's one thing for Cox Communications and Cable One to lose subscribers in the Joplin, MO, Shreveport, LA, San Angelo and Abilene, TX markets and hope they'll be able to outlast Perry Sook. It will be quite another thing for cable systems to have the channels occupied by CBS and UPN O&Os (plus Viacom's independent giant KCAL-TV Los Angeles) go dark in the nation's largest and most lucrative markets. 05/03/05 RBR #87

Wall Street welcomes
Clear Channel breakup
After the initial excitement over the moves we reported in a special bulletin, the stock eased back and ended the day down slightly. The only big damper on the excitement was a warning by Moody's Investors Service that it may downgrade Clear Channel's band ratings because of the restructuring. Since the rating is now the lowest level investment grade, any downgrade would move Clear Channel's 7.5 billion in debt to junk bond status. TVBR observation: What went wrong? In the first place, Clear Channel overpaid for SFX Entertainment. It wasn't worth 4.4 billion in 2000, as quite a few people outside San Antonio said when the blockbuster transaction was announced. Oh well, not the first time that Bob Sillerman got the better of someone at the negotiating table. Here's what Moody's had to say. 05/02/05 RBR #86

CCU's Less is More taking its toll
The final result was even worse. Radio revenues came in 7% below Q1 of 2004 at 773.6 million. LIM that focuses on convincing advertisers to use :30s and :15s instead of the traditional 60-second spots is also taking hold. Asked for specific categories, the use of :30s is widespread, named automotive and telecommunications in particular. Noted that Verizon recently began running its first-ever :30s. Big box retailer Home Depot is also using :30s. RBR observation: While CC Radio is still facing a negative number for Q2 anyway you look at it, the gap is narrowing a bit from Q1. What analysts wanted to know was where is the end of the tunnel? 05/02/05 RBR #86

Mel the salesman raises
the bar at Sirius
Projecting that Sirius will add 1.6 million subscribers this year, total to 2.7 million. Zen Master expects not just to make Sirius profitable, but to make it a very profitable. Research by Sirius, the biggest impediment is not the monthly subscription cost, but the cost of receivers. So, Sirius is launching a new 50-buck rebate program. RBR observation: Mel is a great salesman and it's always fun to hear him make his pitch, even if we remain skeptical of the long-term viability of the satellite pay radio business. It was interesting to note that Sirius has found that its ad-supported talk and sports programming (plus Howard Stern on the horizon) is increasingly driving its subscriber growth. No wonder they brought in a new CEO who knows how to drive ad sales! Sirius is also reporting a lower churn rate than XM a monthly rate of 1.3% for Q1, which it claims is its lowest churn rate ever. 04/29/05 RBR #85


Radio Marches forward 3%
Radio comps for March 2005 can be written in black ink, according to the latest figures from the RAB. A 3% gain in total business matched the gain in local a 5% uptick on the national side was insufficient to push the total figure any higher, an non-spot revenue was flat.
RBR observation: These numbers, while not eyecatching, are certainly in line with what we've been seeing since we got out from under the red-ink splatter of the dot-com bubble burst. What this means, while LIM doesn't seem to be causing a major revenue surge, neither does it seem to be punching a gaping hole into early 2005 results. 04/29/05 RBR #85

RBR News Analysis
Demise of Rock formats examined; we examine the solution
"Major radio companies are abandoning rock music so quickly lately that sometimes their own employees don't know it." The New York Times article added up just the last four months, that radio executives have switched the formats of four modern-rock, or alternative, stations in big media markets, including WHFS DC, WPLY Philadelphia and the year-old KRQI Seattle. Earlier this month WXRK in New York discarded most newer songs in favor of a playlist laden with rock stars from the 80's and 90's. RBR observation: The "stars" may not be there, but the music sure is-big time. It's called Indie Rock and Indie Pop. Why radio still has to beholden to the "big" labels and their artists escapes us. 04/29/05 RBR #85

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