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Welcome to RBR's Daily Epaper
Volume 22, Issue 91, Jim Carnegie, Editor & Publisher
Monday Morning May 9th, 2005

Radio News®

Hicks, Muse reducing Clear Channel stake
Clear Channel Communications is buying back 5.7 million shares of its stock from one of its largest shareholders, the Dallas investment firm of Hicks, Muse, Tate & Furst. The buyback price was fixed at Wednesday's (5/4) close of 31.63 per share, so the repurchase of 5,690,800 shares will total 180,000,004 bucks. That's a far cry from the 430,395,204 they were worth on August 30, 2000, the day Hicks, Muse received them by merging AMFM Inc. into Clear Channel - - a decline in value of more than a quarter billion just for these shares. Based on SEC filings, Hicks, Muse will still have nearly 32 million shares of Clear Channel stock in the portfolios of its various investment funds after this buyback takes place.

RBR observation: This had pretty much been expected since March of last year when Tom Hicks announced his retirement as CEO of Hicks, Muse (3/9/04 RBR #47) and less than two months later also resigned as a director of Clear Channel (4/28/04 RBR #83). Hicks had been the radio guy at Hicks, Muse - - grew up in the business and personally owned stations in several Texas markets before taking two radio IPOs to Wall Street, Capstar and Chancellor, both of which ended up being merged into AMFM (with Evergreen) and eventually into Clear Channel. But radio is no longer a hot place to invest, so it's not surprising that Hicks, Muse is trying to cash out. However, dumping all of its stock at once would disrupt the market, so it's going to have to be patient. It will take quite a while to get completely out. By the way, Hicks, Muse is also a major stockholder of LIN Television and there has been talk that it also wants to monetize that investment.

Whether it's LIM or not, rates are improving
As he reported a strong Q1 (revenues up 5.9%), Cox Radio CEO Bob Neal was asked how much of the improvement might be due to Clear Channel's Less is More initiative. He's not sure how much credit to give to LIM, but he's happy that the market is improving. Unlike several other broadcasters, Neil cited automotive as one of the up categories for Cox in Q1, so he must be doing something right. At this point, he's expecting same station revenues to be up in the mid single digits for Q2. Neil also noted that sell-out rates have returned to more normal historical levels, with 80-90% of inventory booked at the beginning of each month

RBR observation: Given what we've been saying about how perfectly Cox Radio would fit as a buyer for Susquehanna Radio, it's not surprising that Neil was asked about acquisition possibilities during the call. But he's playing close to the vest, giving no hint of whether his company will be in the bidding. He noted that Cox Radio has recently been focusing on paying down debt. But we would note that while he was doing that, there wasn't too much good stuff on the market to buy anyway.

FCC flagged for digital flag rules
The US Court of Appeals for the District of Columbia has sent yet another FCC regulation down in flames - - this time it is a ruling which would have permitted use of a flag by content producers to prevent consumers from copying broadcast programming and resending it over the Internet. The American Library Association led a host of organizations in the successful challenge of the FCC's rule. The FCC had been joined in defending it by the Motion Picture Association of America. The court said that the FCC lacked the authority to make the ruling, explained in an opinion by Judge Harry T. Edwards. "In the seven decades of its existence, the FCC has never before asserted such sweeping authority. indeed, in the past, the FCC has informed Congress that it lacked any such authority. In our view, nothing has changed to give the FCC the authority it now claims." Edwards concluded, "The FCC, like other federal agencies, 'literally has no power to act...unless and until Congress confers power upon it.'" The court said that the FCC's jurisdiction does not extend to post-broadcast issues (see clickthrough below). And that is exactly where NAB President/CEO Eddie Fritts plans to take the fight. "Without a 'broadcast flag,' consumers may lose access to the very best programming offered on local television," he said. "This remedy is designed to protect against unauthorized indiscriminate redistribution of programming over the Internet. We will work with Congress to authorize implementation of a broadcast flag that preserves the uniquely American system of free, local television."

RBR observation: Did the courts back in the 1600s and 1700s hold that merchant seamen had to put a "Pirates, help yourselves" sign on the treasure chests they were transporting? This will very much be a sticking point in getting the DTV transition completed, and Congress should give it immediate attention. That said, it seems you could make quite a comfortable living in Las Vegas betting against the FCC in court, if you could find an oddsmaker unaware enough to accept the bet.


Words continue to fly over broadcast decency
TV Watch Executive Director Jim Dyke wasted no time responding to the attack on the organization launched by Parents Television Council, an attack which went beyond questioning the organization's motives to speculating that it was buying supporters. Noting that 92% of Americans do not want the government policing the airwaves, he said, "Yesterday's misguided attack is indicative of the tactics used by groups that continue to push the government to enforce their opinions about what all Americans can watch on television. TV Watch represents an overwhelming majority of Americans who recognize the danger of that approach and offers a better way." Morality in Media picked up the flag from PTC, however. Its President Robert Peters said he too wasn't thrilled with the prospect of government involvement, but "On the other hand, I think it is all too clear that many parents won't or can't provide needed oversight of their children's TV viewing. The reasons include parental neglect, indifference, ignorance and naive, and job responsibilities, language barriers and disabilities." He continued, "Furthermore, protecting children isn't the only governmental interest furthered by enforcement of the broadcast indecency law. Even assuming that every child enjoyed the blessings of at least one perfect parent, I don't think most Americans want broadcast TV to become an open sewer."

RBR observation: Is this really a huge problem? Really? We remain intrigued by the remarks of Mel Karmazin last year before the House Committee of Energy and Commerce. Thousand upon thousands of minutes are broadcast with no hint of indecent content. If indecency is a goal, or a paying proposition, broadcasters would jump on it precisely at 10PM when safe harbor kicks in and let it rip all the way to 6AM when safe harbor goes away. Maybe we should get all networks, radio and TV, and even NPR/PBS, and any independent broadcasters who wish to participate, and declare one day this summer to be "Open Sewer Day." Keep it simple - - perhaps we could run a George Carlin routine from the early 80s where he goes into some detail about all the words he missed when he hastily wrote his "Seven Dirty Words" routine. Suffice it to say that he knew quite a few more than seven. Maybe then we will finally introduce a modicum of persective into this debate.

Putting radio on the stopset spot
Sensitivity to advertising on radio is very much related to age, according to the new Arbitron/Edison Media Research study of spotloads. 44% of all listeners said they'd listen a lot more if there were shorter breaks, and 47% said they'd listen more of there were less breaks. But those numbers vary widely by demo. 12-24 numbers are 57%/59%; 25-54 are about at the 12+ average, weighing in at 44%/49%. 55+ hit a 35% on both questions. However, when the question was put on the table with side-by-side numbers to consider, most said they'd prefer more frequent breaks of shorter duration. Of the entire 12+ sample, 57% said they'd rather had three breaks of four commercial apiece, against 34% who said they'd prefer two stopsets with six apiece. Within this framework, however, there was disparity. Men and younger adults were more likely to go for the 2/6 configuration, while women and older adults more stronly favored the 3/4 configuration. These discrepancies hold for formats, alligning as you'd expect with each format's primary demo. | See the Arbitron/Edison Media Research stopset comparison chart |

NAB on pros and cons
of FCC Supreme challenge

In remarks filed with the Supreme Court last week, the NAB posited that the "...Third Circuit's effort to arrogate to itself the right to set media ownership policy" was ample justification to grant the FCC a hearing in the nation's highest court. Then the NAB proceeded to map out two specific areas in which it argues the FCC is out of bounds. NAB says the Commission went far beyond the mandate of Congress as expressed in the Telecommunications Act of 1996 when it tossed out the old contour-based radio market definitions and replaced them with the new Arbitron-geographical definitions. Second is the "'top-4' television duopoly restriction, which forbids or sharply limits common ownership in many local television markets, including small and medium-sized markets where the benefits of common ownership are most needed." The NAB says it warrants a hearing whether or not the court decides to listen to the FCC's argument. "Moreover, the rules that are the subject of NAB's petition are already in effect and are largely unaffected by the Third Circuit's remand," NAB argued, "and thus the posture of the case counsels in favor of immediate review, not against it."


Conference Calls Q1 2005
Cox Radio beats guidance
Bob Neil is another happy group head, reporting Q1 revenues up 5.9% at Cox Radio to 98.6 million. Local was the strong point, up 6.6% for the quarter. Station operating income shot up 9.1% to 37.1 million. Strong markets included Orlando, Miami, Tampa, San Antonio, Jacksonville, Southern Connecticut, Long Island and Dayton. Those gains were partially offset by Birmingham and Louisville, where net revenues were down for the quarter.

Outdoor leads radio at NextMedia
Small market specialist NextMedia saw only a modest rise in Q1 radio revenues, 1.1% to 17.6 million, but its outdoor division was up 5.1% to 8.2 million. In all, pro forma net revenues rose 2.4% to 25.8 million. Compared to what the company reported a year ago, acquisitions increased that gain to 5.7%. Broadcast cash flow as reported was up 10.1% to 8.7 million, but it was flat on a pro forma basis. Radio BCF was down 1.7% to 5.8 million and outdoor was up 3.6% to 2.9 million. In the company's conference call, President Steve Dinetz said some radio markets were up strongly for the quarter, including NextMedia's suburban Chicago group, Lubbock, TX, Myrtle Beach, SC, Saginaw, MI and Wilmington, DE. But one of its largest markets is Greenville-New Bern-Jacksonville, NC, which is still suffering economically from the long overseas deployment of troops from its military bases. Companywide, he said radio is pacing flat for Q2. By the way, Dinetz refused to be drawn into a discussion of national reps. His company has two markets with Interep and the rest at Katz, but he said national spot is only 10% of NextMedia's business, so he's going to focus on local sales and not comment on the rep industry.


Adbiz©

American Airlines
launches new campaign
American Airlines last week launched a new campaign to reach African-Americans. The initial phase is an extension of the popular "We Know Why You Fly" campaign that began last September. "The Invitation" campaign consists of three national magazine ads that will run May through December, encouraging African-Americans to fly American and American Eagle. The ads use lifestyle snapshots of everyday events that connect with family, friends and associates. "All three ads are warm and positive, saying we know why you fly and we invite you to fly with us," said Allen Pugh, EVP and Director of Client Services, GlobalHue. "Family Dinner" brings together family members from cities around the country to relax and remember how good food and good times lead to "Big laughs; Big family traditions; One big piece of pound cake." The ad underscores that American's wide network -- including new routes from New York to Atlanta and Charlotte-makes it easy for families to continue their traditions of gathering in the city most convenient for them. "Leadership Summit" appeals to the career-minded woman whose travels take her dreams to new heights and opens up myriad opportunities to make "New friends; New dreams; New possibilities." "To the Favorite Fishing Hole" depicts three generations of men who are sharing a family tradition that will bond them forever while creating "Moments to cherish; Wisdom to share; Bass to catch." The ads will run in American Legacy, Black Enterprise, Ebony, Essence, Jet, Odyssey Couleur and The Green. In addition to national magazine ads, interactive media, radio and television ads are planned for release later this year.

TBWA\California opens
TBWA\ announces the formation of a new group structure for the west coast, TBWA\California. At its foundation are TBWA\Chiat\Day LA, TBWA\Chiat\Day San Francisco and marketing services network TEQUILA\. Each brand and business group is structured around Disruption and Connections, TBWA\'s strategic cornerstones for building and connecting brand ideas. TBWA\California is accelerating the development of its business model to further capitalize on the changing marketing and media landscape. The new structure is dedicated to better leveraging office resources and bringing greater focus to the spectrum of media arts necessary to building brands in today's complex and challenging media environment. Lee Clow and Robert LePlae will lead the TBWA\California group. LePlae, currently President of TBWA\Chiat\Day LA, assumes the new position of President and CEO for TBWA\California. Carisa Bianchi, currently Chief Strategic Officer for TBWA\Chiat\Day LA, succeeds LePlae as President of TBWA\Chiat\Day LA, Rob Schwartz continues as Executive Creative Director for TBWA\Chiat\Day LA. TBWA\California is now developing a new initiative, the "media arts lab." The "media arts lab" mission is to find new ways to apply the media arts model across all companies under TBWA\California. The goal is to develop brand-centric ideas that innovate and experiment with all kinds of media arts forms and define the best ways to launch brands into popular culture.


Radio & Television Business Report Magazine

June Magazine '05 Clock is Ticking-Heading for Closure

National Sales:
EDI - Electronic Data Interchange, sometimes synonymous with Electronic Invoicing
Kathy Crawford, MindShare President, Local Broadcast, speaks her mind on EDI, specifically stating what solutions she needs from the software and keying entries to get stations faster payment in an exclusive column. States straight up, "Lest you should all think that our work is done in the world of EDI. Think again!" EDI- the focus of the future of national spot dollar. Who is and who isn't involved. From the rep firms to the software companies, we get answers. The Clock is ticking on EDI. Closure in '05?

Reserve your Ad Marketing Space today. Advertising space is limited, contact:
June Barnes [email protected] ----- or ----- Jim Carnegie [email protected]


Media Markets & MoneyTM
California or Bustos
The rapidly rebuilding Bustos Media radio group is getting a second FM in the Sacramento market. KXCL-FM, which will team up with KTTA-FM, is coming from First Broadcasting Investment Partners for 23M. First will retain its own KREL-FM (aka Bob 92.1) in the market, eventually weaving format elements which are currently part of the Flash 103.9 KXCL-FM broadcast persona. Look for veteran Hispanic broadcaster Bustos to take the station into the Spanish language arena at that time. Amador Bustos commented, "We are buying a second FM station because Sacramento continues to be a strong radio market in general and a fabulous Hispanic market in particular. We are very pleased to have secured such an outstanding full-market signal to team up with our KTTA-FM 97.9, which has been a terrific performer delivering great results to advertising clients over the last four years." Tom Gammon of Americom Radio performed brokerage chores on the deal.

When a failed station buyer fails
Pegasus Satellite Communications was planning on acquiring Channel 38 WSWB-TV, which cherry-picks offerings from WB and UPN for viewers in the Wilkes Barre-Scranton DMA. It was trying to do so under a failed station waiver, since it already had a strong market presence with its Channel 56 Fox WOLF-TV. Then Pegasus got into Chapter 11 trouble of its own. The upshot is that acquisition rights, which go back to a 4/14/98 option/LMA agreement with Guyon Turner's KB Prime Media, are being turned over to Daniel J. Duman's Mystic Television of Scranton. The terms of the option put the final sale price on a sliding scale, estimated by the original participants to be 2,061,972 cash assuming a closing date of 5/31/04. Duman's group will also inherit the grandfathered LMA, so in effect, Pegasus will still be running the station as it has since the LMA began pursuant to an agreement signed 6/26/97. Pegasus also has a WB/UPN satellite, WILF-TV Channel 53, licensed to Williamsport in the western fringe of the DMA. Duman holds interests in Galaxy Communications, with radio stations in several New York markets, and Convergent Broadcasting, with radio stations in Texas and North Carolina.


Washington Beat
FCC waves through another
contested radio deal

In the Grand Junction CO market, the acquisition of KSTR-FM by MBC Grand Broadcasting from Leggett Broadcasting has been approved by the FCC over the objections of Western Slope Communications. The FCC cited the new Arbitron/geographical radio market definition as reported by BIA, which shows 21 stations in the market and supports MBC's resulting cluster of two AMs and four FMs. The complainants also objected to a purported less-than-arm's-length relationship between MBC and United Ministries. MBC sold KDTA-AM to United and originally financed the deal partially via a promissory note, but the FCC said it was amended to a cash-at-closing transaction, eliminating concern about a lingering MBC financial interest in the station. The fact that United was allowed to continue to use studio space with MBC did not bother the FCC either - - to the contrary, it wrote, "...the Commission has long recognized the sharing of technical facilities as generally beneficial." The FCC also said it was unpersuaded that MBC's provision of a web link to United on its own website was "...evidence of an improper relationship."


Monday Morning Makers & Shakers

Transactions: 3/28/05-4/1/05
For the first time in 2005, the total value of deals filed at the FCC failed to break into the 10M range - - in fact, it didn't come close. Dealing almost failed to make it into rated territory - - only one of 11 stations is in Arbitron or Eastlan country. Can you say suh-LOW?

3/28/05-4/1/05

Total

Total Deals

11

AMs

2

FMs

9

TVs

0
Value
3.85M
| Complete Charts |
Radio Transactions of the Week
OK already - - 1.2M takes the prize
| More...
|
TV Transactions of the Week
Still dark - - stay tuned


Transactions
22.5M KVII-TV & KVIH-TV Amarillo TX (Amarillo TX, Clovis NM) from NVG Amarillo Inc., a subsidiary of New Vision Group LLC (Jason Elkin) to Barrington Broadcasting Texas Corporation (James Yager et al). Cash. Both stations are ABC affiliates. KVIH-TV (Ch 12/DT 20) is a satellite of KVII-TV (Ch. 7/DT 23). [File date 4/15/05.]

25K WTNN-FM CP Union City TN from Broadcasting for the Challenged Inc. (George S. Flinn Jr.) to Educational Media Foundation (Richard Jenkins). Cash. CP is for Class A on 88.9 mHz with 6 kw @ 115'. [File date 4/11/05.]

25K KHCO-FM CP Hayden CO from Broadcasting for the Challenged Inc. (George S. Flinn Jr.) to Educational Media Foundation (Richard Jenkins). Cash. CP is for Class C3 on 90.1 mHz with 10 kw @ 5220. [File date 4/11/05.]

0 WLGR-FM CP Nanty Glo PA from Educational Opportunities Inc. (Shan Easterling) to American Family Association (Donald E. Wildmon). Donation. CP is for Class A on 90.7 mHz with 750 w @ 551'. [File date 4/11/05.]


Stock Talk
Good news, but still worries
Stocks closed mixed on Friday, with good news on the jobs front, but traders still worried about inflation. The Dow Industrials edged up five points to 10,345 and the Nasdaq Composite was also up modestly, but the S&P 500 was down slightly.

Radio stocks were also mixed. The Radio Index moved down 1.856, or 0.9%, to 200.751, with eight components falling and seven rising. The big mover was Salem, down 7.4% as traders judged its Q2 guidance weak. Cox's earnings report was well received, as it moved up 1.3%.


Radio Stocks

Here's how stocks fared on Friday

Company Symbol Close Change Company Symbol Close Change

Arbitron

ARB

36.90

+0.05

Jeff-Pilot

JP

50.61

-0.20

Beasley

BBGI

17.19

+0.18

Journal Comm.

JRN

16.47

+0.03

Citadel CDL
12.28 -0.30

Radio One, Cl. A

ROIA

13.19

+0.17

Clear Channel

CCU

30.80

-0.80

Radio One, Cl. D

ROIAK

13.23

+0.25

Cox Radio

CXR

15.50

+0.20

Regent

RGCI

5.74

-0.08

Cumulus

CMLS

12.45

-0.10

Saga Commun.

SGA

13.90

-0.42

Disney

DIS

26.89

+0.18

Salem Comm.

SALM

18.86

-1.51

Emmis

EMMS

15.42

+0.03

Sirius Sat. Radio

SIRI

5.38

+0.06

Entercom

ETM

32.25

+0.08

Spanish Bcg.

SBSA

8.79

+0.10

Entravision

EVC

7.55

-0.09

Univision

UVN

27.18

+0.18

Fisher

FSCI

47.98

-0.02

Viacom, Cl. A

VIA

35.61

-0.11

Gaylord

GET

40.94

-0.06

Viacom, Cl. B

VIAb

35.44

-0.10

Hearst-Argyle

HTV

24.92

-0.26

Westwood One

WON

19.00

-0.10

Interep

IREP

0.50

unch

XM Sat. Radio

XMSR

28.50

+0.16

International Bcg.

IBCS

0.01

unch

-

-

-

-

-



Bounceback

Send Us Your OpinionsWe want to
hear from you.

This is your column, so send your comments to [email protected]

I have to respectfully disagree with the column written by Mr.
Gary Weiss (5/4/05 TVBR #88). As a young listener myself (I'm 25) my generation has been exposed to a hyper competitive music industry, with hundreds of thousands of music choices to listen. The Peer-to-Peer networks that are so popular among the youth these days has catapulted that competitiveness in the only the last 2-3 years. I believe that competitiveness will continue in some form or another (even in the midst of a landmark Supreme Court ruling). My music professor once told me that an accomplished Musician can know (and play) as many as 30,000 songs...and an average person can know (and hum/sing) as many as 5,000-7,000 songs. Granted some of those songs are songs like, "It's a small world after all." But many of those are enjoyable songs, and I believe Mr. Wiess underestimates the number of songs that the average persons knows, recognizes, and enjoys.

I'll admit most of my evidence is anecdotal evidence. But I've certainly heard many complaints from friends that they are 'tired' of songs because they're so over-played. I certainly am one of those persons. Mr. Wiess' comments I think certainly do apply to the 34+ demos. But the 18-34 are clearly going to be tougher to reach in the future. And new innovative methods will have to be adopted to reach them. I, for one, will be awaiting this new format here in good ole Peoria, IL. In the meantime....I'll probably be playing music off the Internet... and/or scanning stations on my Satellite radio to feed my appetite for variety.

Justin Locke
ShareBuilders, Inc.


Arbitrends

Arbitron
Market Results
| Greenville |
| Huntsville |
| Jackson |
| Jacksonville |
| Johnson City |
| Little Rock |
| Madison |
| Mobile |
| Orlando |
| Shreveport |
| Spokane |
| West Palm Beach |
| Wichita |


Stations for Sale

Bankruptcy Sale:
New Mexico Radio Stations
US Bankruptcy Court is selling the assets of a New Mexico radio group - 1 AM and 2 FM’s in Silver City and 1 AM and 2 FM’s in Alamagordo. Stations generate over $800,000 of revenue, are currently profitable and have good upside potential. No broker fees. John Brooks, Consultant to US Bankruptcy Court(415)383-5967 [email protected]


Upped & Tapped

Rosenthal adds TV
After 26 years in the Boise market, Bob Rosenthal isn't going anywhere - - but he is adding TV to his portfolio, while continuing as market manager for Journal Broadcast Group's six radio stations. He's now also Vice President/General Manager of Journal's KIVI-TV (Ch. 6, ABC) Boise and KSAW-LP (Ch. 52, ABC) Twin Falls, ID.


TVBR - TV News

Fox plans "Idol" probe
Following Wednesday night's ABC "Primetime Live" report alleging that "American Idol" judge Paula Abdul coached 2003 contestant Corey Clark and had a sexual relationship with him, Fox says it is investigating the claims and has asked Clark to assist it in doing so. Not a chance, says Clark, who is still bitter about being cut from the show when it became public that he had pleaded guilty to a criminal charge. "We have concerns about the motives behind last night's purported news special," said Fox in a statement Thursday, although the network added that it was taking the allegations seriously.

TVBR observation: Who at ABC decided that this was news anyway? It sounds like an "investigative report" for one of the Hollywood gossip shows, but not for a production of ABC News. What's next - - a special report on allegations that WWE wrestling matches may be choreographed ahead of time? Horrors!


Competing Media

Satellite radio
attracts a few good
men-very, very few
In 87 metropolitan markets with a collective adult population of 137,478,000, satellite radio has attracted a mostly male audience of just 681,000 or 0.5% of all adults in the 87 markets surveyed by The Media Audit. From a total sample of 117,737 respondents, only 571 adults (age 18 +) said they listened to satellite radio at least once in the past seven days (7-day cume). "We were surprised at how little market penetration has been achieved by satellite radio," says Bob Jordan, President of International Demographics, which produces The Media Audit. "The demographic profile of the satellite audience is most certainly affluent and well educated, but the absence of significant market penetration also shows up in the demographics. More than 73% of all satellite listeners had household incomes of 50,000 or more, but that 73% represents only 0.8 of all households with incomes of 50,000 or more." Approximately 63% of satellite listeners are men and 55% have at least one college degree. Satellite radio is not another technology that penetrates the 18-34 age market. Quite the contrary, The Media Audit surveys found that 76.1% of all adult listeners are 35+ and 48.5% are 45+. More than 29% of satellite listeners fall into the proprietor/managerial classification and 17.3% fit the professional/technical category. "Surprisingly," says Jordan, "16.6% are blue collar workers and 11.0% are retired. In the 87 markets surveyed, satellite radio attracted only 10,000 or more adults in just 20 of the 87 markets surveyed. The largest number attracted, 76,000 was in New York City, which is a market of more than 14 million adults. "The penetration in New York City was just one half of 1%," says Jordan. Satellite only pulled one% or more of the adults in just six markets and in no market did it attract 2%. Jordan thinks the two primary problems faced by satellite radio are cost and lack of portability. "Satellite radio is competing with a product that is distributed free, and that's a heck of a price disadvantage," he says, "The portability issue may be solved, but making satellite portable is the easy part. Building the audience and selling their numbers is the tough part."






RBR Radar 2005
Radio News you won't read any where else. RBR--First, Accurate, and Independently Owned.

Interep's future debated
After Cumulus Media CEO Lew Dickey raised the issue Wall Street analysts are now asking other radio groups whether they are dissatisfied with national sales representation by Interep and what's going to happen to the company. In short, the Radio One executives said Katz was outperforming Interep, although the latter had shown some improvement in Q1. Liggins said a healthy Interep would benefit the radio industry and Interep's clients need to talk about the rep firm's future. But when asked about the possibility of a client buyout, he said that didn't appear to be feasible unless Infinity, Interep's largest client, wants to be involved. RBR observation: We hear from sources inside Interep that pacings are actually up so far this year for most of the firm's clients, and that it's actually been gaining market share from Katz for the past six months, so there's frustration with the perception by Wall Street that it is underperforming. 05/06/05 RBR #90

One good backlash deserves another
Brent Bozell is asking how much the big networks paid to certain watchdog organizations in order to get their backing for the TV Watch coalition which is trying to head off government regulation of broadcast program content. "This supposed 'coalition' needs to be taken - - and dismissed - - for what it is: a collection of random citizen and public policy groups that have simply been hired and paid for by the networks to do their dirty work," These organizations, and this so-called coalitionw, have an obligation to disclose the level of funding they're receiving, directly or indirectly, from the networks and the entertainment industry to do their dirty work. 05/06/05 RBR #90

Meredith, NAB opposing
Durbin amendment
At least one television group - - Meredith Broadcasting Corp. - - is joining the NAB at the barricades as Congress makes another attempt to pick broadcasters' pockets in the form of reduced campaign ad costs, according to a report in Roll Call. The measure would force broadcasters to offer lowest unit rate to politicians for a full year prior to an election, and would make the ads non-preemptible. "Making broadcasters provide LUC to candidates throughout the year and giving them preemptible status is a terrible idea," said Gregg P. Skall of Womble Carlyle Sandridge & Rice, PLLC last week. "It is probably unconstitutional and is tantamount to requiring illegal campaign contributions by all broadcasters. It is no different that requiring that all in the airlines and lodging industry subsidize political candidates by providing them deep discounts and bumping other passengers and guests if a politician wants a reservation." 05/06/05 RBR #90


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