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Should radio be referring to iPods? Here's a reader's comment on our recent stories.

With the momentum building across the U.S. for JACK-like radio formats, reference on these stations to iPods "on shuffle," etc seems to be pervasive. Is this a good idea? Or is radio simply promoting attrition to new technologies.

You are the first person to bring this up.....

They are saying this to their listeners, "We know that you would rather be listening to your iPod right now, but because you can't, we are going to try to be like an iPod." That would mean that an iPod is clearly better than radio and what you should be listening to.

Radio makes a lot of mistakes in marketing, and this is just another one. Same as putting down Satellite radio in the spots they recorded. The analogy would be a guy keeps talking about his old girl friend while trying to get to second base with his new date. Why talk about her? Why keep throwing this up in her face? Why not just play lots of great music and sound like you are having fun doing it. I am missing something, or has radio gotten a little defensive in its old age?

Dwight Douglas

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Mayfield shifts
to Eastman
Mark Mayfield, most recently VP/Sales Manager of Christal Radio, has moved to Katz stable mate Eastman Radio as VP/Sales Manager in Atlanta.

Ryan goes network
Sporting News Radio has promoted the GM of its O&O KMPC-AM Los Angeles, John Ryan, to Vice President/Sales for the network. He will continue to be based in LA.

Sook to Moonves: Thanks, Les!
Perry Sook now has a powerful ally in Nexstar Broadcasting Group's efforts to win retransmission payments from the major MSOs. With Viacom set to split in two, Sook told analysts that it will be a big plus to have Les Moonves demanding retransmission payments for the CBS O&Os in large markets (5/3/05 TVBR #87), just as Nexstar is already doing in smaller markets. Sook says advertisers who'd left the Nexstar and Mission stations in Joplin, MO, Shreveport, LA and San Angelo and Abilene, TX have been coming back, after seeing the results of the February sweeps, where the stations were generally flat and even up in local news in some cases, despite not being on cable. "The impact to us is decreasing as time goes on," Sook said. The Nexstar CEO isn't tipping his hand on just what his strategy will be as additional cable retransmission contracts come up at the end of this year and in early 2006. He noted, though, that Nexstar has successfully negotiated for cash compensation from some cable operators - - just not any of the big 10 MSOs (at least, not yet). Sook also said he was approached by three groups at NAB2005 who wanted to conduct conference calls with Nexstar management so they could benefit from the company's experience in challenging the MSOs.

TVBR observation: It looks like we'll be covering a widespread and heated battle next year. Some TV groups have managed to finesse the MSO refusal to pay for retransmission consent by making deals for related cable channels and such. To date, that has kept the O&Os of ABC, CBS, Fox and NBC from a head-to-head battle with cable. But that will change when Viacom splits and CBS no longer has any sister cable channels. Smaller operators, such as Nexstar, didn't have much leverage in the past, so they essentially had to give away their product for resale by the cable systems. What's changed is that EchoStar and DirecTV are now viable competitors to cable, particularly in markets where they are offering local-into-local - - and both are paying for retransmission consent. The rules of the game have changed and the broadcasters are now able to stand up and demand payment from cable. Sook fired the first shot and now needs the rest of the industry to line up beside him.

RBR News Analysis
NBC doesn't get it - Radio's Opportunity to Cross Platform
Here is the real kicker:
It's interesting when you look at the TV landscape and how they just move shows around and hope you find them, but what is more appalling on the marketing side in the case of something like "American Dreams". Here you have a scripted show that features a built in marketing component that is and has been grossly overlooked: Current artists redoing great songs from the 60's, how does NBC not set up a deal with every R&B station not to play Usher covering Marvin Gaye or John Legend doing Stevie Wonder? It's a built in day-after promotion on radio, or better yet, play it the day of the program to hype the show. Why NBC wouldn't cut a deal with radio, which by the way is the number one way to drive tune-in, to run these songs to promote the show? The redone songs are fantastic and radio would embrace them. Think about it, the number one show (American Idol) is amateurs covering old songs. Does it get any better than current hot artists today doing the same in a drama series? It's a marketing home run. Hopefully, somebody in the TV network business with some marketing sense picks up American Dreams and figures out how to drive viewers. Publisher observation: Remember: Coke, Fox TV, with 'American Idol' - here was that secret ingredient to the success from the start with 'Idol' - Clear Channel Radio. Now all of radio, especially Oldies and CHR personality-driven stations, this is your once in a lifetime programming shot to do as CC Radio did. You can do it locally and put the pressure on and recommendation to your local ABC or Fox affiliate to make a call to Hollywood. TV networks may never understand that content is king. 05/04/05 RBR #88

Cumulus threatens to quit Interep
Reporting that local sales were up in Q1, but national sales were, again, down, Cumulus Media CEO Lew Dickey set a 30-day deadline to make a change. either Interep's Cumulus Radio Sales will adopt that types of new business initiatives and accountability that Cumulus has adopted for its local sales, or Cumulus will take its national business elsewhere, either to another rep firm, or create an in-house national rep. RBR observation: It's not that Lew is anxious to jump to Katz as Citadel did a little over a year ago. Rather, he's complaining that the national rep business isn't structured for growth. He thinks both rep companies are too focused on continuing business from existing national advertisers, rather than working to expand the mix of advertisers and build new business. Meanwhile, Guild has to keep his clients happy while he fends off a hostile bidder and seeks to recapitalize Interep. We'll be watching to see how this plays out.
05/04/05 RBR #88

Bidders eying CC Entertainment
Clear Channel's plans to spin CC Entertainment off into a separate company has apparently prompted interest from people who want to buy the operation, rather than see it become an independent company. Both House of Blues and Jam Productions told the news service they're working on financing to try to acquire at least the concert portion. Dave Lucas, the former CC Music CEO who now heads Live 360, is reportedly putting together a bid for the entire company.
RBR observation: Whatever happens, Clear Channel shareholders are going to get considerably less than what the company paid in 2000 for what was then SFX Entertainment - - 4.4 billion. Estimates are that the company is now worth less than two billion, maybe as little at 1.5 billion. It seems unlikely to us that Clear Channel would agree to sell only the concert business, which would leave it stuck with other units for which there would be few bidders - - and not enough to spin off into a separate public company. 05/04/05 RBR #88

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