Radio News ®

Congress jumps into
minority ratings dispute
Complaints that Nielsen's new Local People Meter (LPM) undercounts Hispanics and African-Americans are reverberating on Capitol Hill. Not only is Rep. Charles Rangel (D-NY) due to appoint a minority task force to work with Nielsen on the LPM issue, but House Telecommunications Subcommittee Chairman Rep. Fred Upton (R-MI) has ordered a government audit of LPM. Upton has asked the Government Accounting Office to conduct a comparison of Nielsen's LPM and diary results and report back to Congress on what it finds. Exactly how that audit will be conducted isn't yet known. RBR observation: We know a bad idea when we smell one, and Congressman Upton's idea really stinks. What business does the US Government have sticking its nose into how Nielsen or Arbitron conducts ratings surveys? Or how Gallup or Harris conducts public opinion surveys? Broadcasters - - even News Corporation/Fox - - advertisers and agencies should be aghast that Congress is meddling in their private business. Congressman Upton should be told to take a hike. | Full Story | RBR Observation |

Saga files to silence
"commercial" LPFM
While all low-power FMs are licensed to be noncommercial, Saga Communications has complained to the FCC that an LPFM in Jonesboro, AR has been airing announcements which sound suspiciously like commercials. Since the station doesn't yet have its permanent license, Saga wants the FCC to void its construction permit, which Saga says would allow a true community station to use the frequency. Editor's note: This as a problem akin to the radio pirate problem which has been allowed to fester in certain parts of the country. Left unchallenged, the practice of putting ads on LPFMs may spread. We endorse Christian's call to arms by further urging other legitimate commercial broadcasters to follow Saga's lead and formally challenge any LPFMs engaging in practices similar to KFLO-LP. Going through channels should guarantee that the problem gets the attention it warrants. | Full Story |

Small deal financing is rare,
but we found some! Part 5 of 5
After finding that there are a few sources of financing available for small broadcasting deals, we asked the lenders: Is it getting easier or more difficult to find financing? "It's still very difficult. I don't know if it's more difficult. People are afraid of making acquisitions, but you've got to find deals that meet everyone's size criteria, meet their criteria for market size as well and meet their criteria for clusters," said BIA's Jerome Fowlkes. "I think there's a strong emphasis on cash flow, a strong emphasis on good markets and having clusters. It's harder to find those deals and to find those deals at a size that makes sense for everyone." Although interest rates in general are at historic lows, don't expect to see single digits if you're financing a small broadcasting deal.
| Full Story |

Rush ads in two Florida papers charge political motives
Full-page ads headlined, "Local, National Journalists Question Political Motives in Limbaugh Investigation," ran yesterday in Florida in the Palm Beach Post and the South Florida Sun-Sentinel attacking Palm Beach State Attorney Barry Kirscher for his probe of Limbaugh's admitted addiction to prescription pain-killers. The ad, purchased by Rush's EIB Network, state in part, "a number of prominent national and local journalists, commentators and editorial writers have questioned or charged that the investigation of Rush Limbaugh by Mr. Krischer is politically motivated. Following is the latest such opinion from the May 9, 2004 Washington Times." The Times granted permission for republication the editorial, headlined "Aiming for Rush," in the two papers, which have a combined circulation of 430,000. Read it:

MMTC takes a stand against ala carte
David Honig of the Minority Media & Telecommunications Council is trying to block any attempt to force cable and DBS services to add ala carte channel selection options for their subscribers, saying it would prevent niche programming from ever getting started. He committed his thoughts to paper in a letter to the leaders of the House Energy and Commerce Committee, Joe Barton (R-TX) and John Dingell (D-MI).
| Full Story |

Reeling in the year
It's been almost a year since the FCC's (depending on your viewpoint) historic or infamous 6/2/03 broadcast ownership rulemaking. It has yet to take effect as the battle over continues, and are currently under judicial scrutiny at the Third Circuit Court in Philadelphia. "Concerns about media competition, diversity and localism drive the backlash to the relaxation of the rules," says a release from the Cato Institute. "Are those concerns legitimate? Are current ownership rules helping or hindering the development of more competition and choice? Should Congress take further action, or will court decisions and FCC revisions of the rules handle the issue from here?" These issues will be debated on Capitol Hill, but not by elected officials. Cato is sponsoring the debate, and will offer one of its own, Adam Thierer, to hold up one end of the argument. Facing him will be Andrew Schwartzman of the Media Access Project. The Capitol Hill venue of choice is the House Rayburn Office Building, and the date is 5/25/04. RBR will be there to watch the sparks fly. You'll get the full report. Editor's note: Just review history and it always tells the future in some form 06/02/03 RBR #107. The following day, 06/03/03, RBR #108 three of the five FCC Commissioners were smiling then but what about today and how about tomorrow. The word FREE was not mentioned way back - then. Seems like a decade ago but hell it's only going on 1 year.

Conference Calls, Q1 2004

TV led Q1 at Liberman
LBI Media, the parent company of Liberman Broadcasting, reports that Q1 revenues rose 17.7% to $19.4 million. The biggest gain came from its TV stations, where revenues were up 35.7% to $10.4 million. That was due to growth at existing stations and the recent addition of KMPX-TV Dallas-Ft. Worth. Radio revenue growth was described as "modest," up 2% to $9 million. Adjusted EBITDA for the company rose 16.1% to $8.7 million. LBI, which has public bonds, did not conduct a conference call with analysts due to the pending stock IPO of Liberman Broadcasting, which was updated just last week (5/11/04 RBR Daily Epaper #92) but is not yet scheduled for pricing.

Measuring the Media Moguls

Entravision:
Chairman & CEO Walter Ulloa

2003 stock performance: +11.22
2003 CEO pay: +35.14%

Entravision has been a two-man show right from the get-go, so there is absolutely no difference between the paychecks of Chairman & CEO Walter Ulloa and President and COO Philip Wilkinson. Each saw their cash pay go up 35.14% last year, while the company's stock price rose 11.22%. | Full Story |

Adbiz ©

Fox Sports en Español's upfront
to celebrate growth, new alliance
Following its most successful broadcast year to date, Fox Sports en Español will stage its upfront celebration at Noche in New York 5/18. The festivities will kick off at noon and will fill Noche with Latin talent, including actor and recording artist Carlos Ponce, who was recently voted as one of the "50 Most Beautiful People" by People magazine; actress, recording artist and former Miss Universe (1997) Alicia Machado; veteran Mexican sportscaster and current host of the network's Palabra del Deporte, Pablo Carrillo; model, actress and current host of Catherine 100%, Catherine Fulop; and Maria Susini, co-host of Lo Mejor de Fox Sports. At the event, Fox Sports en Español, having captured a significant portion of the Spanish-speaking sports viewing audience in the first six months of broadcast year 2004, will highlight its top sports properties for broadcast year 2005 and its recently announced strategic alliance with Yahoo! en español. Noche is located at 1604 Broadway (between 48th & 49th Streets), New York.

McDonald's seeks new vehicles for ad jingle
Reuters reports the success of McDonald's "I'm Lovin' It" advertising has the company thinking of new vehicles for the campaign's five-note jingle. McDonald's, whose first global campaign was launched last fall, is running "I'm Lovin' It" commercials in various forms in 119 countries where it operates more than 30K restaurants. The TV and radio commercials, whose initial spots were done in hip-hop style featuring pop star Justin Timberlake, have helped boost consumer awareness of McDonald's advertising to 86% in its top 10 markets, said Larry Light, the company's global chief marketing officer, at a news conference 5/12. | Full Story |

Media, Markets & Money tm

Close encounter in the Berkshires
Vox Radio Group has taken the keys to WNAW-AM/WMNB-FM North Adams MA and WSBS-AM Great Barrington MA in a $2.02M deal. The seller is Berkshire Broadcasting. The stations will daisy-chain with other Vox properties in Pittsfield and Hoosick Falls. According to local reports, Vox's Laura Freed will take over management of the stations.

DG expands in the commercial biz
DG Systems announced a $15 million cash deal to buy AGT-Broadcast from Applied Graphics Technologies - - deal which DG Chairman and CEO Scott Ginsburg called "both strategically and financially attractive." AGT-Broadcast delivers television and radio commercials to stations and also provides services such as volume duplication, encoding and captioning, media management and archiving, and digital imaging. DG said it has been providing digital distribution services to many AGT-Broadcast customers, so the acquisition now "extends that partnership across AGT-Broadcast's entire customer base."

Entercom announces
stock buyback
While Entercom has been busy lately with acquisitions, it still has enough free cash flow that the company's board of directors has authorized a $100 million stock buyback. The company says the amount and timing of stock repurchases will depend on market conditions.

Washington Beat

Engineered for Profit

New translators may cause problems for stations, CEs
Gil Garcia, CC Radio RVP/Engineering, has 150 stations and five states to cover. And he's getting busy now with some unusual stuff right now, thanks to the recent flurry FCC translator grants. They closed the window last year and the FCC said they wouldn't open the window again for another 5-10 years. This could be the tip of a new engineering iceburg. RBR observation: Garcia also mentioned that some broadcasters are trying to protect competition in their markets by applying for the translators and turning around and giving them to religious broadcasters, so they will be able to control the format competition. "Well, if it's a religious station, they're not going to bother us because we're running Rock & Roll." | Full Story |

Transactions

$2.5 Million: KEBV-FM Monterey-Salinas (Salinas CA) from Wolfhouse Radio Group Inc. (Hector Villalobos) to People's Radio Inc. (Joe C. Rosa, Filomena Rosa). $150K escrow, balance in cash at closing (escrow in the for of promissory note payable after 60 days, with balance of purchase price deposited by 8/15/04). Superduopoly with KNRY-AM, KRSK-AM & KYAA-AM. LMA since 3/15/04. [File date 4/7/04.]

$900K: KSJM-FM Wichita (Winfield KS) from Sherman Broadcast Group Inc. (Donald R. Sherman) to Carter-Sherman Broadcast Group Inc. (Michael L. Carter, Donald R. Sherman). $45KKK escrow, balance in cash at closing. Merger. Carter will own 70% of new company, Sherman 30%. [File date 4/7/04.]

Stock Talk

Radio Stocks