adio b si iless report - americanradiohistory.com · 10/2/2000  · _al adio b si iless report ......

18
SFET RF device to lokW. OC compatible solutions from 5ooW to lokW. oven reliable products 'oWer needs from 5kW to 35kW. LI jimm.will11111 _Al adio B si iless Report Voice Of The Radio Broadcasting Industry® October 2, 2000 TM Volume 17, Issue 40 Leaders Know That Contplete wires Radio Studio Management AudioVAULP VAULTZ" Enterprise wide WAN/ ady multi -radio studio management system. Robust open system designed stem for medium sized radio Ions. udioVAULT' edium sized Internet Radio Management WebVAULT" - ynamic Internet stem. TREAM'" Studio - eSTREAM'' - r werful on -demand roduction system. o n -Air" sound quality over rocessor. RF Solutions FM Solid State - AM Solid State - FM High Power - rir Exciters - nnovative designs that allow d excellent audio quality. _., MARTI Electronics - ppliers of remote ' power transmitters. Leaders Look to BE I Broadcast Electronics Quincy, Illinois 888.232.3268 www.bdcast.com www.audiovault.com RADIO NEWS Is ownership reregulation on the horizon? 2 The FCC is going ahead with an NPRM which could modify current ownership limits due to a perceived threat to diversity and competition At long last: Indecency codified? 2 FCC indecency cops know the way to San Jose 2 LPFM modifications include protection for the blind 2 Premiere ready to pull into traffic 3 LMIV prepares for kickoff 3 Ad growth is a worldwide phenomenon 6 $ocking it away: 25 with radio ties on Forbes list 8 NAB Radio Show 2000 The view from the floor 8-9 RADIO WARS Chattanooga two, too; Champaign uncorked 11 MEDIA MARKETS & MONEY Send an Emmis-sary to Wall Street: Business is great 12 Emmis 02 numbers are out, and business has been going gangbusters on the radio side. Its turnaround TV group is not faring quite as well. It's time to stock up on radio stock 12 Giddy -up, Giddens: Trustee takes CCU into spin cycle 13 Falling Star responds to Foster's Baton 13 Styles says howdy to Dowdy in Folsom, LA 13 LPFM bill showdown With Congress scheduled to adjourn this Friday (10/6), NAB is putting on a full - court press to squeeze through legislation to limit LPFM deployment. First, broadcasters across the coun- try are being urged to pick up their phones and lobby their home state senators to sign on as co-sponsors of S. 3020, the bill recently intro- duced by Sen. Rod Grams (R -MN) which duplicates a House -passed bill that would allow LPFMs, but retain third adjacent channel protection from interference. NAB hopes to get 51 or more of the 100 senators to sign on (see list, p. 15), making it easier to do step number two. That's attaching the measure to a piece of must - pass legislation that Pres. Bill Clinton won't veto. The likely target is the appro- priations bill for the Depart- ments of State, Justice and Commerce, which also in- cludes the FCC's money for the next fiscal year. continued on page 2 repeat after me...streaming revenue... Imagine getting a website with streaming audio for your signal and an e -commerce system for your wallet. At a cost of next to nothing. It's all right here. Call us at 203-929-9101. site --11 eiL a corn Home of the BlueDot WebStle NetWolk 10/2/00 RBR www rbr corn

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Page 1: adio B si iless Report - americanradiohistory.com · 10/2/2000  · _Al adio B si iless Report ... Editorial/Advertising Offices 6208-B Old Franconia Road Alexandria, VA 22310 PO

SFET RF deviceto lokW.

OC compatible solutionsfrom 5ooW to lokW.

oven reliable products'oWer needs from 5kW to 35kW.

LI jimm.will11111

_Al

adio B si iless ReportVoice Of The Radio Broadcasting Industry®

October 2, 2000

TM

Volume 17, Issue 40

Leaders Know ThatContplete

wires

Radio Studio Management

AudioVAULP

VAULTZ"

Enterprise wide WAN/ady multi -radio studio

management system.

Robust open system designedstem for medium sized radio

Ions.

udioVAULT'edium sized

Internet Radio Management

WebVAULT" - ynamic Internetstem.

TREAM'" Studio -

eSTREAM'' -r

werful on -demandroduction system.

o n -Air" sound quality overrocessor.

RF Solutions

FM Solid State -

AM Solid State -

FM High Power -rirExciters - nnovative designs that allow

d excellent audio quality._.,

MARTI Electronics - ppliers of remote' power transmitters.

Leaders Look to BE IBroadcast ElectronicsQuincy, Illinois888.232.3268www.bdcast.comwww.audiovault.com

RADIO NEWS

Is ownership reregulation on the horizon? 2

The FCC is going ahead with an NPRM which could modify current

ownership limits due to a perceived threat to diversity and competition

At long last: Indecency codified? 2

FCC indecency cops know the way to San Jose 2

LPFM modifications include protection for the blind 2

Premiere ready to pull into traffic 3

LMIV prepares for kickoff 3

Ad growth is a worldwide phenomenon 6

$ocking it away: 25 with radio ties on Forbes list 8

NAB Radio Show 2000

The view from the floor 8-9

RADIO WARS

Chattanooga two, too; Champaign uncorked 11

MEDIA MARKETS & MONEY

Send an Emmis-sary to Wall Street:Business is great 12Emmis 02 numbers are out, and business has been going gangbusters

on the radio side. Its turnaround TV group is not faring quite as well.

It's time to stock up on radio stock 12Giddy -up, Giddens: Trustee takesCCU into spin cycle 13Falling Star responds to Foster's Baton 13Styles says howdy to Dowdy in Folsom, LA 13

LPFM bill

showdownWith Congress scheduled toadjourn this Friday (10/6),NAB is putting on a full -court press to squeezethrough legislation to limitLPFM deployment. First,broadcasters across the coun-try are being urged to pickup their phones and lobbytheir home state senators tosign on as co-sponsors of S.3020, the bill recently intro-duced by Sen. Rod Grams(R -MN) which duplicates aHouse -passed bill that wouldallow LPFMs, but retain thirdadjacent channel protectionfrom interference. NABhopes to get 51 or more ofthe 100 senators to sign on(see list, p. 15), making iteasier to do step numbertwo. That's attaching themeasure to a piece of must -pass legislation that Pres. BillClinton won't veto. Thelikely target is the appro-priations bill for the Depart-ments of State, Justice andCommerce, which also in-cludes the FCC's money forthe next fiscal year.

continued on page 2

repeat after me...streaming revenue...Imagine getting a website with streaming audio foryour signal and an e -commerce system for yourwallet. At a cost of next to nothing. It's all right here.Call us at 203-929-9101.

site --11 eiLacornHome of the BlueDot WebStle NetWolk

10/2/00 RBR www rbr corn

Page 2: adio B si iless Report - americanradiohistory.com · 10/2/2000  · _Al adio B si iless Report ... Editorial/Advertising Offices 6208-B Old Franconia Road Alexandria, VA 22310 PO

ii:11111) 1111:31111):3:3 11;n11)iltVoice 01 The Radio Broadcasting Industry Radio News

October 2 2000, Volume 17, Issue 40

BPA International membership

applied for September 2000

Executive Editor Jack MessmerManaging Editor Dave Seyler

Senior Editor Carl Marcucci

Associate Editor Elisabeth Derewitz

Associate Editor Karla Roberson

Creative/Production Director Ronald Greene

VP Administration Cathy Carnegie

FCC Research Consultant Mona Wargo

Administrative Assistant April Olson

Publisher Jim CarnegieVP/GM, Associate Publisher Ken Lee

Senior Account Executive John Neff

Account Executive Susanna PritchettAccount Executive June Barnes

Editorial/Advertising Offices

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©2000 Radio Business Report, Inc. Material may not

be reproduced without permission. All content may

not be reproduced, photocopied and/or transmitted

without written prior consent.Any violations will be

dealth with legally. Printed in USA.

Radio Business Report is published weeklyby Radio Business Report, Inc. Publishers of

Radio Business Report, MBR - Manager'sBusiness Report, The Source Guide,

www.rbr.com and the Information ServicesGroup database.

Subscription rate: One year $220.

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Source Guideand Directory

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rbronair.com Internet radio

FCC aims to soap the mouth of San Jose FMClear Channel's (N:CCU) KSJO-FM San Jose, CA has been hit withtwo $7K FCC fines for indecency. The first comes as a result of a jokeaired on August 25,1999, that had a little girl asking her parentsquestions in the shower. KSJO says that the only offensive contentcame from innuendos. The second fine was for a discussion of theproper ways to perform fellatio. Stating that the guest was a nation-ally recognized sex therapist, KSJO denies any indecency.-ED

Ownership NPRM advancing

The FCC could soon be bringing out a proposal to modify currentownership limits. The move is being driven by the three Demo-cratic commissioners (RBR 9/11, p. 3), although the two Repub-licans and many broadcasters are likely to claim that anyproposed change would violate the 1996 TelecommunicationsAct. Mass Media Bureau Chief Roy Stewart says his staff hasfinished drafting a Notice of Proposed Rulemaking and sent it tothe five commissioners for consideration. Stewart insisted in apanel discussion at the NAB Radio Show that because of post -Telecommunications Act consolidation, he sees "a growing threatto the Commission's bedrock principles of diversity of ownershipand competition."-JM

FCC preparing indecency guidelines

At long last, it appears the FCC is going to tell broadcasters justwhere the line is drawn on indecency.

As the chief of the FCC's new Enforcement Bureau, DavidSolomon, made his first appearance at an NAB Radio Show, RBRasked when, or if, the Commission was going to comply with asix -year -old federal court settlement that requires it to spell out ina public statement just what guidelines it uses to determinewhether or not a broadcast is indecent (RBR 7/10, p. 3).

"Actually, very soon," was Solomon's surprising answer. Echo-ing past FCC claims, Solomon insisted that there's no problemcontinuing to fine stations for indecency before that statement isissued because "the courts have repeatedly said that the FCC'sguidelines are clear."

In the NAB panel on FCC rule enforcement, Solomon noted thathe's been surprised by some of the areas where his staff has beenfinding the most frequent violations of FCC rules-EAS, towermaintenance and broadcasting phone calls without prior permission.All of those, he noted, are basic, nuts -and -bolts rules that broadcast-ers should have no trouble understanding and complying with.

RBR observation: Note to Chief Solomon: We've read yourrecent indecency rulings (and those of your predecessors goingback at least a decade). The only thing they make clear to us is thatyou have no idea what the limits are, since they keep changing fromcase to case. We don't know what your indecency guidelines are.Broadcasters don't know what they are. Commissioner GloriaTristani is upset because of your bureau's inconsistency. Everyoneis going to welcome your long -delayed statement setting theground rules. That may lead to yet another court battle, but at leasteveryone will know what the fight is about.-JM

www.rbr.com

LPFM bill showdowncontinued from cover

Speaking at the NAB RadioShow in San Francisco (9/23),Sen. Ron Wyden ( D -OR) dis-missed claims that the onlypeople opposing LPFM are cor-porate fat cats. "NPR in my stateain't no fat cat," he quipped.

Wyden criticized the FCC fornot spending enough time col-laborating with NPR and smallbroadcasters to resolve problemsbefore rushing ahead with LPFM.He was particularly critical of theCommission for not dealing withthe issue of LPFM interference totranslators. "That's a big deal for alot of us that represent large ruralareas," Wyden said.

"A lot of the flack that theagency [FCC] gets from Con-gress should be an indication tothe agency that they need to doa better job of listening," thesenator suggested.-JM

FCC adjusts LPFM order

The FCC has amended its LPFMorder to protect the reading ser-vices for the blind. The firstamendment to the Order is torestore third adjacent protec-tion, but only for stations carry-ing to reading services.

The amended order also putsin place standards to deal withinterference complaints. The firststep is cooperation between thefull -power station and the LPFMstation to find out what is causingthe problems. If no solutions comeabout, the FCC will step in andresolve all complaints within 90days. All of this can only comeabout when complaints are re-ceived from 1% of the listeningaudience in the areas of interfer-ence.

In a dissenting statement fromFCC Commissioner HaroldFurchtgott-Roth (R), he addedthat "A higher regard for Con-gress, and for those broadcasterswho today serve their commu-

10/2/00 RBR

Page 3: adio B si iless Report - americanradiohistory.com · 10/2/2000  · _Al adio B si iless Report ... Editorial/Advertising Offices 6208-B Old Franconia Road Alexandria, VA 22310 PO

nities ably and well, would coun-sel a more serious reconsidera-tion of this issue than that per-formed today." And Commis-sioner Michael Powell (R) adds,"the Commission once againfails to consider the economicconsequences to small broad-cast stations resulting from theintroduction of LPFM."

RBR observation: Talkabout doublespeak: We nowfind that third adjacency protec-tion is necessary for some ser-vices and not for others. Appar-ently the FCC believes, as thepigs put it in George Orwell'sAnimal Farm, that some aremore equal than others. Wefind it very interesting that theCommission is admitting thatthis is a problem at all, sincethey've spent so much time re-cently saying it isn't.

And secondly, it is beyondbizarre that resolution of thehighly technical issue of signalinterference is being left to therandom complaints of the laypublic. Beyond even that, justhow does the FCC propose toaccurately calculate when 1% oflisteners in areas of interferencehave filed complaints? Con-gress-its time to shackle thisagency-run-amok.-ED

Premiere unveiling traffic

strategy in January

Premiere Radio Networks Presi-dent/COO Kraig Kitchin tellsRBR his company will unveil acompany -wide traffic strategyin January that will initially sellcommercial time for hundredsof Clear Channel (N:CCU) sta-

Radio News

SpotTaxi.com helps RBR.com to spread outCentral Media's SpotTaxi.com has agreed to distribute the daily five-minute newscast of RadioBusiness Report's RBR.com streaming website to other, affiliated sites. RBR.com provides breaking

news of interest to the radio industry, along with other features. Plans are in the works to includeadvertising messages as part of the newscast.

Affiliated websites include Impact Target Marketing (itmimpact.com), Broadcast Electronics(www.bdcast.com), Media Services Group (www.mediaservicesgroup.com) and Dataworld(www.dataworld.com). Each will have an RBR-branded button added to its website which, whenclicked, will launch the newscast on demand.

"SpotTaxi.com's abilty to deliver content within minutes of its creation enables our affiliates toinstantly offer our timely newscasts while its still news," said RBR VP/GM/Associate Publisher KenLee.

tions. "We will be using thetechnology of the StarGuidesystem and our two new 10 -second inventory networks,Pulse and Action, for live reads,"he told RBR at NAB.

We reported that AMFM's re-lationship with Traffic.com wasin jeopardy, post -merger withClear Channel (RBR 8/28, p.2).While Kitchin wouldn't say therelationship was over, he did saythe relationship would be "di-minished, while continuing tohonor the deals Traffic.com hasstruck with AMFM."

We certainly assume that di-minishment would includeTraffic.com's 10 -second inven-tory networks, however, we'renot sure if Traffic.com's technol-ogy and individual traffic report-ing services will be a part ofPremiere's new traffic strategy.

Kitchin says Clear Channel'sAirWatch America traffic service,currently in San Diego, Tampa,Salt Lake City, Denver, LA and

Atlanta (Atlanta is actually a dif-ferent CCU -owned traffic com-pany), will be an increasing partof the overall service. Currentrelationships and contracts withMetro/Shadow will be upheld."Many Clear Channel and formerAMFM stations have had longand fulfilling relationships withMetro/Shadow, and we find theirservices to be adequate," hesays.-CM

Emmis unveils

MN structure

Ongoing Local Media InternetVenture (LMIV) partners EmmisCommunications (O:EMMS),Bonneville International,Entercom Communications(N:ETM), Jefferson Pilot (N JP)and Canadian radio broadcasterCorns Entertainment unveiledthe latest details of the 16 -month -old project 9/21 at an NAB pressconference. The venture, open

to all radio broadcasters, willbring a "best of the best ap-proach" in linking content andtechnology partners to partici-pating radio station web sites.LMIV is structured as a Dela-ware "C" Corporation with thefunding model based on thecume audience of each of thecompanies participating, $1 percume audience member.

Lead LMIV consultant (andnow President/CEO) JackSwarbrick described the ven-ture as an "exploitation of rela-tionship assets," citing the audi-ence, advertisers, entertainmentindustry, existing station brand-ing and programming skills asthe prime resources. LMIV net-work (which will use existingrep firms for ad sales) should bebeta testing by Q1 2001 with"rapid deployment" followingthroughout the year.

Swarbrick's content strategyis wide-ranging: "We intend toexploit all revenue streams with

Big Numbers Hot Sales Better Radio

SHANE MEDIAProgramming Research Strategic Solutions

713-952-9221www.shanemedia.com

www.rbr.com 3

Page 4: adio B si iless Report - americanradiohistory.com · 10/2/2000  · _Al adio B si iless Report ... Editorial/Advertising Offices 6208-B Old Franconia Road Alexandria, VA 22310 PO

compelling content and willprovide that by format. Wherethey can buy the music, who isplaying where and where canthey buy the concert ticket." Sofar, LMIV has partnered withconsultant CMGI Solutions, soft-ware/technology licensers,ATG and Interwoven.

Emmis CEO/Chairman JeffSmulyan, named LMIV Chair-man, gave a call for unity to thebroadcasters present: "We have80 years of going against eachother...this is an opportunity towork together. I think this is amajor step."

While participating broad-casters will be able to choosebetween equity ownership oraffiliation with LMIV, there willbe no difference in the structureof offerings. LMIV will alloweach broadcaster to maintaincomplete control of and privacyof its own database. Only statis-tics will be open to all partners,and of course, buyers and po-tential advertisers. Cumulativeaudience estimates are estimatedat 37M, with 70M expected nextyear.-CM

Religious Broadcasters

push Senate

The National Religious Broad-casters, along with 25 religiousorganizations, have sent a let-ter, to Senate Majority LeaderTrent Loft (R -MS), asking himto help pass the Noncommer-cial Broadcasting Freedom ofExpression Act-HR 4201-which has already been passedin the House. (RBR 6/26 p.4)The bill is "designed to protectChristian broadcasters from fu-ture FCC decisions that wouldrestrict religious speech." Con-cern stems from a now re-scinded FCC decision whererestrictions were placed on aPittsburgh TV transfer. The FCCruled that 50% of all program-ming on non-commercial chan-nels with educational licensesmust be in fact be educational.Although the Commission sub-sequently withdrew thatruling,the station sale fellapart.-ED

Radio News®

Protest arrestsfew at NAB

Friday's (9/22) protests at theNAB Radio Show, which includedfour young men chaining them-selves together in the MosconeConvention Center lobby, resultedin nine arrests. According to localpress reports, all were chargedwith misdemeanor offenses andreleased the same day. Eventsbecame stranger, though, whenthe protest moved to the SanFrancisco Hall of Justice. Threeattorneys, who said they wereonly trying to get inside to seetheir clients (the demonstratorsarrested earlier), were arrested asthey tried to get past police block-ing access to the building. Theywere also released the same day,but face charges of misdemeanorbattery against a police officer.

Earlier Friday, two female pro-testers had infiltrated the FCCPolicymaker's Breakfast. As NABPresident Eddie Fritts introducedCommissioner HaroldFurtchgott-Roth (R), one pro-testor ran to the podium, grabbedthe microphone and declared,"The airwaves are for the people,not the corporations." She wasquickly grabbed by a securityguard and dragged from the room,as was another woman who be-gan shouting pro-LPFM slogans.As he began addressing the broad-casters, Furtchgott-Roth noted that"the peaceful expression of ideasis what makes this country great."

Anti -NAB activists had plannedtheir biggest demonstrations forSaturday and had hoped to dis-rupt access to the Marconi Awardsat the Hilton Hotel. Internet sitesaffiliated with the protestorsclaimed that "thousands" of peopleturned out for the protest rally atUnited Nations Plaza, but by thetime the group made the shortmarch to the Hilton their rankshad thinned to about 50 and po-lice easily rebuffed those whotried to enter the building.-JM

Rush wins MarconiThe man credited with rejuvenating the AM band has received histhird Marconi Award. Rush Limbaugh was honored 9/23 asNetwork/Syndicated Personality of the Year at the gala endingthe NAB Radio Show in San Francisco. Although he wasn't ableto attend this year's ceremony, Limbaugh issued a statementsaying that he would cherish the latest Marconi in a different waythan the first two.

"It's one thing to win the Marconi Award after you've madeyour initial splash in radio and you're new, you're getting all ofthe attention. After 13 years of doing one show, it's harder toreceive that kind of recognition-even if you've been #1 thewhole time. You have to maintain a high level of performanceafter your initial achievement, and being noted for that means somuch to me," he said.

WEBN-FM Cincinnati received the Marconi as LegendaryStation of the Year.

WOMC-FM Detroit morning driver Dick Purtan hosted theawards dinner and show. Legendary rock band Lynyrd Skynyrdhad the broadcasters dancing in the aisles and there was a specialguest appearance by comic collaborators Gary Owens andJonathan Winters.

Here's the list of all other winners:Major Market Station of the Year: WOMC, Detroit, MILarge Market Station of the Year: KESZ, Phoenix, AZ Medium Market Station of the Year: WOOD -AM,Grand Rapids, MISmall Market Station of the Year: WAXX, Eau Claire, WI Major Market Personality of the Year: Mike Francesa& Chris Russo, WFAN, New York, NYLarge Market Personality of the Year: Jay Gilbert,WEBN, Cincinnati, OH

Medium Market Personality of the Year: Jimmy Matis,WFBQ, Indianapolis, INSmall Market Personality of the Year: Tim Wilson,WAXX, Eau Claire, WI

AC Station of the Year: KSTP-FM, Minneapolis, MNAdult Standards Station of the Year: KVFD, Fort Dodge, IA CHR Station of the Year: KDWB, Minneapolis, MN Classical Station of the Year: WBQQ, Kennebunk, ME Country Station of the Year: WTQR, Winston-Salem, NC NAC/Jazz Station of the Year: WJJZ, Philadelphia, PA News/Talk/Sports Station of the Year: WTMJ, Milwaukee, WIOldies Station of the Year: WOMC, Detroit, MIReligious Station of the Year: WMBI, Chicago, ILRock Station of the Year: WFBQ, Indianapolis, INSpanish Station of the Year: KLAT, Houston, TX Urban Station of the Year (tie): WUSL, Philadelphia,PA & WVEE, Atlanta, GA

www.rbr.com 10/2/00 RBR

Page 5: adio B si iless Report - americanradiohistory.com · 10/2/2000  · _Al adio B si iless Report ... Editorial/Advertising Offices 6208-B Old Franconia Road Alexandria, VA 22310 PO

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Page 6: adio B si iless Report - americanradiohistory.com · 10/2/2000  · _Al adio B si iless Report ... Editorial/Advertising Offices 6208-B Old Franconia Road Alexandria, VA 22310 PO

Worldwidead growthforecastreducedto 6%-7%rangeDow Jones -Earlier this year,investors poured money intoadvertising stocks as if the in-dustry were immune to eco-nomic downturns. Now, amidconcerns about slowing growthin the U.S. and reduced adspending by Internet and tech-nology companies, ad execu-tives and analysts are cuttingtheir projections for theindustry's global billings growththis year to about 6-7%, fromearlier expectations of 8-9%. In1999, billings grew about 9%globally from the previous year.

On top of that, two big in-vestment banks, UBS Warburgand Merrill Lynch, recently saidad industry growth has peakedfor now. Yahoo! Inc.(O:YHOO), which operatesInternet portals, and ClearChannel Communications(N:CCU), which sells advertis-ing on billboards and radiostations, recently announcedthat ad revenues would beweaker than expected this year.

It turns out that the ad busi-ness is cyclical, after all.

After a flurry of acquisitionsin recent years, such compa-nies as Omnicom Group(N:OMC), Interpublic Group ofCos. (N:IPG), Havas Advertis-ing SA (O:HADV) and WPPGroup PLC (O:WPPGY) nowderive more than half their rev-enues from nontraditional ad-vertising businesses, such aspublic relations, event man-agement and sales promotion.The rationale was that diversi-fied ad firms are more stable

than traditional ad business,and make for a better invest-ment.

But investors are losing faithin that story. Even diversifiedad firms will suffer when cor-porate profits are squeezed andmarketing budgets are cut, in-vestors reason.

"American agencies are go-ing to be hit by dollar strengthand a weak euro, so big Ameri-can exporters will find it hardto export to Europe," saysLorna Tilbian, analyst atWestLB Panmure in London."It doesn't make for a buoyantearnings outlook for ad groupson either side of the Atlantic."

Some analysts are more posi-

tive for the remainder of theyear and say that big listed adcompanies are benefiting notnecessarily from growth in over-all ad expenditure, but fromlarge companies consolidatingtheir ad accounts with globalagencies. The major agencies,therefore, gain business evenas companies cut back on over-all expenditure. The losers arethe small ad shops that are cutout as consolidation and cost-cutting become more impor-tant to clients. "If you are small,you're doomed," says ThomasDeitz, ad analyst at MerrillLynch in London.

Some ad agencies are moresusceptible than others, at least

in the short term, analysts say.Publicis (N:PUB) Chief Execu-tive Maurice Levy told report-ers in New York that the Frenchgroup, with the majority of itsbusiness in Europe, would berelatively unaffected by theweak Euro and a potential slow-down in the U.S. economy.

Overall, European ad com-panies have a temporary ad-vantage, if only because theyreport numbers in weak Euros,not strong dollars or pounds.The dollars or pounds they earnoverseas translate into moreEuros than they did a year ago.©2000, Dow Jones & Co.

Non -Traditional Revenue Track

Summer vacations a highlightTake a cruise. Buy an RV. July promotions are fun time. After all, who can pass up the"WXXX Boat and RV Expo," this weekend at the county fair grounds? Thus, the Leisuresector was hot for radio NTR in July as much of the country was also hot -baking in a

drought that made many people yearn for cooler and wetter respites.-JM

Non -Traditional Revenue Track0/0 of Vendor/New Business by Category

(July 2000)

Jan Feb Mar Apr May June July YTD

Automotive 11.15 7.72 11.02 15.69 11.37 18.91 12.50 12.26

Food/Grocery 23.69 25.55 27.69 22.44 26.65 34.59 14.57 23.60

Leisure 26.59 32.30 31.67 34.61 29.21 13.14 33.73 29.58

Health & BC 5.65 10.86 9.80 1.57 6.85 0.91 3.59 5.64

Home Improv. 2.66 3.90 5.64 0.86 17.63 19.12 7.64 8.46

Office 0.43 4.59 0.77 8.19 0.95 1.04 15.89 5.45

Clothing 5.46 4.87 5.11 5.72 5.24 2.44 8.07 5.70

Recruiting 24.36 10.21 8.30 10.93 2.11 9.85 4.01 9.31

Source: Revenue Development Systems, based on revenues from 76 stations in 32 markets.

www.rbr.com 10/2/00 RBR

Page 7: adio B si iless Report - americanradiohistory.com · 10/2/2000  · _Al adio B si iless Report ... Editorial/Advertising Offices 6208-B Old Franconia Road Alexandria, VA 22310 PO

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Steady hut slowergrowth predicted forthis year's networkradio upfront

by Reyn Leutz

In late May, I received a callfrom a reporter who covers theNetwork Radio beat. She in-formed me that some buyerswere already surfacing long-term budgets, five months inadvance of the traditional Octo-ber radio upfront buying sea-son. The strategy is simple: getin early and secure a better deal.

Yet anyone who has alreadyconcluded a long-term negotia-tion at this point can only haveregrets-the market has soft-ened significantly.

Why? First, of course, is thedisappearance of the dot-comsthat flooded the market a yearago.

Second, even without the dot-coms, television and radio mar-ketplaces, on both a national

signs of a slowdown. Q3 net-work TV and cable scatter mar-kets were very soft. Q4 pricingfor both these mediums appearsno different. In network radio,Q3 was also soft and there arestill plenty of avails throughDecember. This fact alone isamazing when you consider thatin Q4 1999, network radio wasalmost completely sold out byJuly 4th. And yet, why should asoftening marketplace be anysurprise? Olympic and electionyears are typically followed bya slowdown.

So I believe that upfront pric-ing for this year's network radiocommercial inventory will befavorable with single digit in-creases. Television upfront mar-kets have been extraordinarilystrong in the past few years, butit looks like a correction year ison the way here as well. Net-work radio pricing is far morepredictable than television. Thiscan only ensure a more evenoverall growth rate within theindustry.

3

Radio puts 25 in bigbucks league

KXL-AM & FM Portland, OR owner Paul Allen is far and away the richest broadcaster on the ForbesMagazine annual listing of the 400 wealthiest Americans. Allen checked in as the nation's second -

richest person, with a net worth of $40B, just behind his senior partner in co-founding Microsoft(O:MSFT), Bill Gates, at $85B. Here are the 25 radio folks who made the Forbes list.

Rank Name Billions Radio company

2 Paul Allen $40.00 Rose City Radio

Sumner Redstone $14.00 Viacom/Infinity/WW1

16 Rupert Murdoch $11.00 Fox Radio Network

18 Barbara Cox Anthony $10.00 Cox Radio

18 Anne Cox Chambers $10.00 Cox Radio

25 Ted Turner $9.10 CNN Radio Network

61 Michael Bloomberg S4.00 Bloomberg Radio

R( )1) ( ;1,1,,c1 $2.40 RealNetworks

113 Lowry Mays $2.30 Clear Channel

121 Norman Wain. $2.20 Waitt Radio

150 Randolph A. Hearst $1.80 Hearst -Argyle

167 B.J. "Red" McCombs $1.70 Clear Channel

189 Stanley S. Hubbard $1.50 Hubbard Broadcasting

207 William Levine $1.40 Infinity Broadcasting

236 Edward L. Gaylord $1.20 Gaylord Entertainment

236 Richard Marriott $1.20 New Northwest

260 Roy E. Disney $1.10 Disney/ABC

V..R. Hearst III. $1.00 Hearst -Argyle

302 J.W. Marriott Jr. $0.98 New Northwest

31; Austin Hearst $0.90 Hearst -Argyle

313 G.R. Hearst Jr. $0.90 Hearst -Argyle

313 D.W. Hearst Jr. $0.90 Hearst -Argyle

354 Michael Eisner $0.80 Disney/ABC

384 Tom Hicks $0.65 Clear Channel

398 Stuart Subotnick $0.63 Big City Radio

Also worth noting: Five people who formerly had radio ties also made the Forbes list. MetromediafounderJohn Kluge was 15th with $13B, Broadcast.com co-founders Mark Cuban (143rd, $1.9B) andTodd Wagner (236th, $1.2B) were both on the list and former radio group owners (ColfaxCommunications) Mitchell & Steven Rales tied for 218th with $1.3B each.

The cutoff to make the list this year was $625M.-JMwww rbr com 10/2/00 RBR

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View fromthe floor NAB Radio Show 2000It wasn't your ordinary NAB Ra-dio Show. The Chairman of theFCC wasn't there, but a famousgeneral was. A record 7,200 reg-istered attendees came, but sodid dozens of anti -NAB, pro-LPFM protesters (and lots of po-lice officers as well).

It wasn't unusual to have RBRon the scene, but it was new tohave RBR.com streaming audio in-terviews from the exhibit floor.Broadcasters, vendors and other in-dustry leaders stepped up to theRBR.com microphones to be in-terviewed by RBR Executive Edi-torJack "Oprah" Messmer, SeniorEditor Carl "Springer" Marcucciand occasionally even AssociatePublisher Ken "Regis" Lee.

Here's a scrapbook of the viewfrom the floor (and elsewhere)at the NAB Radio Show 2000 inSan Francisco.

Four protesters who chained their necks together with bicycle locks were among nine arrested on misde-meanor charges Friday, 9/22. All were released the same day.

As Gen. Powell spoke, demonstrators gathered behind police barricadesto protest both the US war with Iraq, which Powell oversaw a decadeago, and NAB's efforts to curtail LPFM.

Retired General Colin Powell wowed the crowd with tales of his longmilitary career, then urged them to help encourage and motivate America'syoung people.

Radio BusinessReportiness

Live, from the exhibit floor, ZBS Radio Network CEO Michael Zwerlingtalks about Talk radio with Carl Marcucci.

Emmis Communications Chairman/CEO Jeff Smulyan holds his NationalRadio Award and receives congratulations from, l -r, NAB President/CEOEddie Fritts, Susquehanna Radio President/COO and NAB Radio BoardChairman David Kennedy and Benedek Broadcasting President/COOand NAB Joint Board Chairman K. James Yager.

10/2/00 RBR www.rbr.com 9

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Is Y

su10NAB Radio Show 2000

One of the convention's biggest draws was a one-on-one discussion be-tween former CNN anchor Lou Dobbs, who returned to financial broad-casting 9/25 with a new radio show, and Clear Channel Communica-tions (N:CCU) Chairman/CEO Lowry Mays.

Commissioner Harold Furchtgott-Roth was the only one of the five FCCcommissioners to formally address this year's NAB Radio Show.

RAB President/CEO Gary Fries told RBR.com that things are looking upfor Q4.

Veteran broadcaster and investment banker Joel Hartstone was wearinga new hat as Chairman of SiteShell.com. He was interviewed by JackMessmer.

Kraig Kitchin, President/COO of Premiere Radio Networks, talks abouthis much larger post -merger company with Carl Marcucci.

Interep Chairman Ralph Guild gave RBR.com listeners the low-downon the rep business.

10 www rbr corn

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Chattanooga:Brewer sitting on

the dock ofRhythmic Oldies

Back in July, RBR reported on theupsurge of the Rhythmic Oldiesformat within small and large ra-dio markets alike (RBR 7/17, p.11).Well, you can add another to thebunch. WMPZ-FM is the newRhythmic Oldies kid on the blockin Chattanooga, TN. Let us firstreflect on this station's recent his-tory of format -flipping. Just lastyear, the station programmedSmooth Jazz. By the time the newyear was brought in, WMPZ offi-cially labeled itself AC. Appar-ently, official isn't synonymouswith permanent because this for-mat had a lifespan or six or sevenmonths. Enter Rhythmic Oldies-WMPZ's current format.

According to WMPZ GM Jim

Radio warsBrewer II, the Urban Oldies li-brary was bought to defend flag-ship station, WJTT-FM, whichplays Urban Contemporary andboasted a 7.8 rating in the Spring2000 Arbitron books. Brewernoted that early on,WMPZ haddeveloped an extremely loyallistenership when Smooth Jazzran. With all of the switchingthough, we were curious as tohow that base has shifted, espe-cially since the station took aratings hit during its AC growingpains. Brewer responds, "Withthe feedback I'm getting from theannouncers, they feel like a lot ofthe previous listeners are stayingwith us. On our feedback website,[listeners say] that they've been

listening for a long time and theyreally enjoy the change [to Rhyth-mic Oldies]...and we're doing avery aggressive marketing cam-paign."

Brewer is approaching the for-mat with a broad brush, pointingout that WMPZ currently has sixto seven hundred selections inrotation and that "it's not all theperfect number one hits of alltime over and over because theburnout factor is strong." Of allthe Oldies' selections, 20% aresongs released in the late 60's;60% from the 70's and 20% fromthe early 80's. Brewer chimes,"It's 'Sittin' on the Dock of theBay' to 'I'm So Excited' toMotown."-KR

Harrisburg: Clear Channelpicks a fightClear Channel's WWKL-FM Harris-burg is becoming WHKF (Kiss FM)and flipping formats from Oldies toCHR. WWKL-AM will continue theOldies format, hoping to get thetransfer audience from the formerFM version of the station. AlthoughWWKL-FM was doing well in thebooks (5.7 Sp 00), they intend to goahead with the switch anyway. Itsnew head -to -head competitor willbe WNNK-FM, which is makingnumbers around 11.0 on average.WNNK was one of the many AMFMstations which Clear Channel wasunable to keep when its bought theentire group last year-it is beingswapped to Cumulus along withthree other stations in the market(RBR 9/4, p.12).-ED

Detroit teen tiger unfazed by challengerAMFM took its Hot AC WKQI-FM straight into a head -to -headconfrontation with ABC's WDRQ-FM by flipping it to CHR under PDTim Richards. While the station, now owned by Clear Channel, hasimproved over the year since the flip, so has WDRQ. Starting with Fall1999, WKQI's 12+ numbers are 2.8-2.7-3.6 while WDRQ pulled 4.3-4.8-4.6.

What is odd is that the differences in audience makeup betweenthe two is just about what you'd expect to find had WKQI stuck withHot AC. WDRQ is one of the dominant teen stations in the market, andalso beats WKQI across the board in the 18-34 demos. However,WKQI wins the battle across the board in the 25-54 and 35-64 demos.Both stations rely heavily on women to turn the knob their way.-DS

Chattanooga CHR Rocked by WRXR

At least, that's what we think happened. Cumulus Media's WLMX-FM(which is being sold to Clear Channel) flipped from Soft AC to Rockwith new calls WRXR-FM last Fall, and it appears to have used CHRWKXJ-FM as the source for much of its audience. From Spring toSpring WRXR improved 2.6-3.4, hitting a high of 4.2 in the Summerbook. Meanwhile, WKXJ slipped from 9.9-7.5.

The changes in audience mainly involved men. In particular,young men in the 18-34 cell have flocked to the WRXR-enough torank the station first in the demo for the entire market in the Wintersurvey, and second in Spring book. This demo is precisely whereWKXJ suffered its most significant loss.

But the shift in audience is ultimately of little consequence. Bothstations are part of the same cluster.-DS

AAA uncorks a Champaign

Country newcomerWZNF-FM was doing okay spinning Rock tunes in the smalldownstate market of Champaign IL; its sister WEBX-FM was notdoing so well with Adult Alternative. Community Service Radio,which has since sold the stations to AAA Entertainment, moved theRock format over to WEBX as "Extreme Radio", then flippedWZNF's calls to WBNB and took on Saga's Country kingpin WIXY-FM. We would have to call the strategy a success. Champaign'syoung men did follow the Rock format over to its new home onWEBX. WBNB, while far from unhorsing WIXY, is slowly buildinga new audience, and managed to play WIXY to a dead heat in theM18-34 demo Sp00.

Bottom line: Spring to Spring WBNB went 3.6-2.6; WEBX went0.5-3.7; as a pair, that's 4.1-6.3. AAA is getting much more bang perstick with this formatic configuration.-DS

Rhythmic Oldies morethan a fad at KFAD-FM

Cenla Broadcasting, which runs FM Broadcasting Co.'s KFAD-FMin an LMA, flipped it from AC to Rhythmic Oldies about a year ago.The result: A station which was wheezing is now jogging alongnicely. From Spring to Spring the station went from 1.2-3.3 12+.Typical of the format, the bulk of its newfound audience is in the25-54 and 35-64 cells (men under the age of 34 are ignoring itcompletely). Women make up the vast bulk of listeners.-DS

Source: Arbitron Spring 2000 survey

10/2/00 RBR www rbr com 11

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Buy now or besorry later? Media !I arkets a Money"We believe current valuations areoverstating the potential impact of aslowing economy on radio stocks.Therefore, current valuations maynot remain at these levels for long"-Tim Wallace, broadcasting ana-lyst, Banc of America Securities.

In his latest "BroadcastingMonthly" (dated 9/13), Wallace notesthat radio stocks are selling near thelows they reached in October 1998when the market was expecting amassive global recession in 1999.(Remember the Asian financial cri-sis?) For long-term investors,Wallace says radio stock valuations"represent a compelling buying op-portunity."

The radio stocks he gives a"strong buy" rating to are Beasley(O:BBGI), Clear Channel (N:CCU),Citadel (O:CITC), Emmis (O:EMMS)and Entercom (N:ETM).

Emmis Q2 beats estimates...and then some

Leading off quarterly reports afterthe recent sell-off of radio stocks,Emmis Communications (0: EN L.\ IS)

easily beat analysts' diminishedexpectations for its fiscal Q2, whichended 8/31. Net revenues grew34% to S109.1M. Broadcast cashflow gained 40°/o to 547.4A1 andafter-tax cash flow rose 77% toS27.6M (57 cents per share, beat-ing the Thompson First Call ana-lysts' consensus by three cents).

On a same station basis. Emmissaid net revenues rose 14°0 for its

radio stations and cash flow 20%.-We think that's characteristic of avery strong business," said CEOJeff Smulyan.

Looking at the company's salespacings through December, thenseeing what's been happening onWall Street, Emmis Radio Presi-dent Doyle Rose said, "That reac-tion is totally unwarranted." Al-though dot-com advertising hasdropped off, Rose said it had thebenefit of pushing up radio rates.which remain at much higher lev-

PATRICK COMMUNICATIONS

Station BrokerageDebt & Equity Placement

Fair Market & Asset Appraisals

Larry PatrickPresident

Susan PatrickExecutive vice President

Terry Greenwoodrice President

Greg Guyvice President

(410) 740-0250, www.patcomm.com

by Jack Messmer & Dave Seyler

els. He noted that over the pasttwo years CPMs in the largestmarkets have moved from $300to around $450. Some particu-larly aggressive dot-coms, henoted, had paid as much as $800or S900 to insure that they got onthe air.

Having downgraded a num-ber of radio stocks the previousweek, and sending the entire sec-tor lower still, DB Alex. Brownanalyst Drew Marcus was dig-ging for information in Emmis' 9/2- conference call after notingthat the fiscal Q2 results "beat ourestimates nicely.- Against the ex-tremely strong gains of last year,Emmis officials said they're look-ing at revenue growth of about8% for the September -Novemberfiscal Q3 and acceleration afterthat. For the next two years, Emmistold the analysts to expect 9-12%revenue growth.

Due to tough new SEC regula-tions against selective disclosure,Wall Street analysts have beenhampered in recent weeks fromgetting up-to-date informationfrom public companies. Starvedfor information, they grilledSmulyan. Rose and Emmis CFOWalter Berger to try to gain in-sight into not only what's hap-pening at Emmis, but the entireradio industry. In answer to aquestion from PaineWebber's LeeWesterfield, Berger said that thecompany's expected 9-12% rev-enue growth will "translate into ahigh teens BCF growth." He addedthat broadcast cash flow marginscould also move up from thatlevel due to improvements re-sulting from clustering.

Emmis is still working on atracking stock to separate the valueof its mature radio properties fromits turnaround TV group (RBR 731, p. 15). You can expect its LeeEnterprises TV purchase to closein a few days, with the SEC filingto create the tracking stock in afew weeks, Emmis officials toldthe analysts.

AA* ror corn 10/2100 RBR

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Trust reducing portfolioTrustee Charles Giddens has tiled with theFCC to sell some of the remaining spin-offsfrom the merger of AMFM into Clear Channel

(N:CCU).James Morrell's Albany Broadcasting is ex-panding its new Southern subsidiary, PamalBroadcasting, with a deal to buy WXBM-FM &WMEZ-FM Pensacola -Milton, FL for $43.95M.An earlier deal to sell the duo to URBan Radio(RBR 3/13, p. 7) fell apart.KVOD-AM Denver is going to Latino Com-munications LLC, headed by Zee Ferrufino,for $3.3M.

We Guaranty growthin LouisianaGeorge Foster Jr. is expanding his BatonRouge superduopoly to four FMs. Foster'sGuaranty Broadcasting will pay Michael Star'sNew Radco LLC $1.044M for WBJJ-FM Jackson,LA. Broker: George Reed, Media ServicesGroup

No Styles in FolsomStyles Broadcasting is selling one of its threeFMs in the New Orleans area. Wayne Dowdy'sSouthwest Broadcasting is paying $975K forWJSH-FM Folsom, LA, which is north of 'Nawlinsacross Lake Pontchartrain. Styles is headed byKim Styles and her husband, Tom Dibacco.Broker: Mike Bergner, Bergner & Co.

Chickasaw Nation cashing outFour years after paying $637.5K for KADA-AM& FM Ada, OK, The Chickasaw Nation isgetting out of ownership. Richard Witkovski'sTres Broadcasting LLC will pay $550K for theFM and provide $25K in advertising time andweekly half-hour programs to the Native Ameri-can tribe for three years on all three Tres FMsin Ada and Ardmore, OK. The AM, now KTLS,will be sold separately.

Dynamite exits radioAnthony Neri's Dynamite Radio Inc. is leav-ing radio with the sale of its only station,WRRO-FM Addison, VT. Northeast Broadcast-

ing Co., owned by Steven Silberberg andheaded by Jane Cole, is buying the station for$434K "plus additional consideration." North-east owns nine other stations in Vermont, NewHampshire and Massachusetts. Broker: DickKozacko, Kozacko Media Services

Saga buys back 144K sharesSaga Communications (A:SGA) has been tak-ing advantage of depressed radio stock pricesto buy radio stock-its own. Saga says it hasrepurchased 144K shares of its own stockunder its existing stock buyback plan. "Thispurchase reflects management's belief thatSaga's stock is currently undervalued and hasbeen caught up in the overall devaluation ofthe stocks in the radio sector," Saga said inannouncing the latest buyback.

Cumulus a penny stockCumulus Media (O:CMLS) became a pennystock last week, dropping below the $5 markto trade as low as $4. It closed 9/27 at $4.813.Also battered (even more than most otherradio stocks) was Radio One, which had warnedof softer Q3 financials. Its Class A stock (O:ROIA)

closed 9/27 at $8.125 and its Class D (O:ROIAK)

at $6.688.

Up on the roofWhat's a Buffalo rooftop worth? Well, PinnacleTowers (O:BIGT) has purchased the market-ing and management rights to 17 upstate NewYork building tops for just under $1M, exactly$983,705. The rooftops are located in Albany,Syracuse, Buffalo, Poughkeepsie, Utica andother cities. The seller, Empire Site Company,will also sell Pinnacle the rights to eight addi-tional rooftops in Q1 of 2001. Broker: JoeRapchak, Blackburn & Co.

For the record

Don Sailors of Sailors & Associates was thebroker on Cumulus Media's (O:CMLS) $10Mpurchase of three Montgomery, AL stations(RBR 9/25, p. 18).

The RadioIndexTMInsanity continues. TheRadio IndexTM tumbledanother 20.58 for theweek to close 9/27 at1 17.74, another year-to-date low.

Radio BusinessReport

150

130

TIIE WALLSTREETJOURNAL

R ADIO NETWORK

CLOSED!Cox Radio

Bob Neil, Presidenthas exchangedWALR(FM)

Atlanta, GeorgiaWSUN(AM)Tampa, Florida

andKLUP(AM)

San Antonio, Texasfor

Salem Communication'sKKHT(FM)

Houston, Texasin a transaction valued

at approximately

$90,000,000.

MVP initiated theexchange and

assisted Cox in itsnegotiations.

ELLIOT B. EVERS415-391-4877

BRIAN E. COBB202.478-3737

CHARLES E. GIDDENS941.514-3375

TELCOM GROUP

GREG D. WIDROEJASON D. HILL415.391-4877

RADIO TELEVISION TELCOMM&A INVESTMENT BANKING

MEDIA VENTUREPARTNERS

110

9/6 9/13 9/20 9/2 /

10/2/00 RBR www.rbr.com

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The deals listedbelow weretaken fromrecent FCCfilings.

Transaction Digest°by Dave Seyler & Jack Messmer

RBR's Transaction Digest reports on all deals that involve assignment of a station license (FCC Form 314)and substantial transfers of control of a licensee via a stock sale (FCC Form 315), but not internal corporaterestructurings (FCC Form 316). All deals are listed in descending order of sales price.IMMImamoms.

ClosedWCHV/WKAVCharlottesville,VA

JorgensonBroadcast * Brokerage

\ lark Jorgenson(813) 926-9260

Tampa

Peter Mietili(408) 996-0496

San Jose

HAMMETT & EDISON, INC.CONSULTING ENGINEERSRADIO AND TELEVISION

Serving the broadcast industry since 1952...

Box 280068 San Francisco 94128

HE707/996-5200202/396-5200

[email protected]

APPRAISALSRadio and Televison

Every type of appraisal

Expert witness services

Art Holt or Chris Borger1-610-814-2821

HOLTMedia Croup

$2,300,000 WBGE-FM Peoria IL. 100% ofthe stock of B&G Broadcasting Inc. fromJoyce Banks to AAA Entertainment LLC (Pe-ter H. Ottmar et al). $150K escrow, balance incash at closing. Superduopoly with WWCT-FM, WJPL-FM. LMA in place.

$1,044,000 WBJJ-FM Baton Rouge (Jack-son LA) from New Radco LLC (Michael F.Star) to Guaranty Broadcasting Co. of BatonRouge LLC, a subsidiary of Guaranty Broad-casting Corp. (George A. Foster Jr., MarjorieF. Malone, Claudia F. Balfour et al). $94Kescrow, balance in cash at closing.Superduopoly with WDGL-FM, WXCT-FM,WTGE-FM. LMA since 7/31. Broker: GeorgeReed, Media Services Group (seller)

$900,000 KFLO-AM Shreveport from A.T.Moore d/b/a Nor -Max Broadcasting Co. toAmistad Communications Inc. (Fred A.Caldwell Sr., Geneva Williams, Marilyn J.Anderson). $45K escrow, $300K cash at clos-ing, $600K note. Also, Caldwell will take out alife insurance policy with Moore named asbeneficiary. Duopoly with KASO-AM MindenLA & KBEF-FM Gibsland LA. Buyer is a non-profit corporation.

$585,000 WWEZ-FM & WTNE-AM Tren-ton TN from RadioCorp of Jackson Inc./Wire-less Group Inc. (Carlton Viers) to Milan Broad -

W. John GrandyBroadcasting Broker

805-541-1900Fax 805-541-1906

OMMUNICATIONS TECHNOLOGIES, INC.Broadcast Engineering Consultants

Clarence M. BeverageLaura M. Mizrahi

P.O Box 1130, Marlton, NJ 08053(856) 985-0077 o tax (856) 985-8124

casting Inc. (Michael F. Jinkins, pres et al).$25K escrow, balance in cash at closing.Duopoly with WTKB-FM Atwood TN andsuperduopoly with WCMT AM & FM MartinTN & WCDZ-FM Dresden TN. Broker: MediaUSA/The Woods Group (seller)

$434,000 WRRO-FM Addison VT fromDynamite Radio Inc. (Anthony A. Neri) toAddison Broadcasting Co. Inc., a subsidiaryof Northeast Broadcasting Co. Inc. (Jane N.Cole, Steven A. Silberberg, Edward F.Flanagan). $10K escrow, $334K cash at clos-ing, $90K five-year consulting agreement andunspecified stock. Superduopoly withWNCS-FM Montpelier VT & WLKC-FM Water-bury VT. Broker: Kozacko Media Services(seller)

$400,000 KNDK AM & FM Langdon NDand KRWB-AM Roseau MN. 100% of thestocko of KNDK Inc. from Bert & Lyle Johnsonto Robert & Diane Simmons. $20K earnestmoney, balance in cash at closing. Sale ofKRWB to Border Broadcasting for $62.5K ispending.

$400,000 WLLW-FM & WSFW-AM Sen-eca Falls NY from Family Life Ministries Inc.(Richard M. Snavely, Charles Alsheimer et al) toAuburn Broadcasting Inc. (George W. Kimble,Katharine Ingersoll). $100K cash for WSFW-AM, swap of WCOV-FM Clyde NY for WLLW-FM. Total value of deal is an RBR estimate(Family Life recently purchased WSFW/WLLWfor $400K, RBR 4/3, p.10). LMA since 7/7.

$300,000 WCOV-FM Clyde NY from Au-burn Broadcasting Inc. (George W. Kimble,Katharine Ingersoll) to Family Life MinistriesInc. (Richard M. Snavely, Charles Alsheimeret al). Swap of WLLW-FM Seneca Falls NY forWCOV-FM. Total value of deal is an RBRestimate (Family Life recently purchasedWSFW/VVLLW for $400K, RBR 4/3, p.10 andis selling WSFW to Auburn as part of thisdeal-see above). LMA since 7/7.

more transactions @ rbr.com

www.rbr.com ')/2/00 RBR

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Senators hold fate of LPFMWith Congress scheduled to adjourn Friday10/6, NAB is putting on a full -court press tosqueeze through legislation to limit LPFMdeployment. (See page 3.) Broadcasters arebeing urged to call their home state Senatorsand urge them to become co-sponsors ofS.3020 which would allow LPFM, but retainthird adjacent channel protection from inter-ference.-JM, ED

Republicans DemocratsAbraham (MI)

Allard (CO)Ashcroft (MO)Bennett * (UT)

Bond (MO)Bunning' (KY)Burns (MT)

Chafee (RI)

Cochran (MS)Craig (ID)

Crapo' (ID)Domenici (NM)Enzi (WY)

Fitzgerald (IL)

Frist (TN)

Gramm (TX)

Grams' (MN)Grassley (IA)

. Gregg* (NH)

Hagel (NE)

Hatch (UT)Helms (NC)Hutchinson (AR)Hutchison (TX)Inhofe (OK)Kyl (AZ)

Lott (MS)

Mack (FL)

McConnell (KY)

Murkowski (AK)

Nickles (OK)Santorum (PA)Smith, G. (OR)Smith, R. (NH)

Snowe (ME)

Specter (PA)Stevens (AK)Thomas' (WY)Thurmond (SC)Warner (VA)

Baucus (MT)Bryan' (NV)Conrad (ND)Kerry (MA)

Lincoln' (AR)

Reid (NV)

Robb (VA)

Wyden (OR)

48 Total co-sponsors'indicates co -sponsoring of both Grams andGregg bill (only count as one vote)-theGregg bill would have banned all LPFM

Radio NewsiBiquity Digital announces

three alliances at NAB

In a series of conferences and press announce-ments, sole IBOC proponent iBiquity Digitalannounced alliances with the Associated Press,Alpine Electronics and AccuWeather. The Associ-ated Press will jointly test and market the digitalcompatibility of AP news content for radio broad-casters using iBiquity Digital's AM & FM digitalradio technology. iBiquity's AM & FM digital datacapability will enable radio broadcasters to senda digital signal capable of delivering wireless datato receivers-news, sports, business, weather,and entertainment info provided by AP.

Alpine signed a joint technology and marketingdevelopment agreement with iBiquity to integrateiBiquity's technology into Alpine receivers. IBiquity

is also currently working with a variety of chipsetmanufacturers, including Texas Instruments andST Microelectronics, to downsize the system intoreceiver -compatible IC chipset sizes.

AccuWeather, the world's largest commercialweather content service, will work with iBiquity tojointly test and market its weather content to

enable broadcasters to deliver it to wireless devicesusing iBiquity's data -capable signals.-CM

SurferNETWORK announces

alliance, test stations

SurferNETWORK, an Internet streaming, mar-keting and content distribution company, an-nounced an alliance with Nassau Broadcastingfor all of its stations, along with the eight otherbroadcasters pilot -testing its system, at NAB.Twenty stations are currently operational aspart of the pilot test. The other groups includeJournal Broadcasting Group, Telemedia, Rob-erts Radio, New Northwest Broadcasters, Au-rora Communications, Shamrock Communica-tions and Buckley Radio. The company's stream-ing technology offers broadcast -quality audioover the Internet that "similar to the clearest FMsignal." SurferNETWORK also delivers targetedaudio advertising at no cost to broadcasters.

"We have looked at a variety of approachesand partners for our webcasting needs," com-mented lAnt Mcrcatanti, CEO of Nassau Broad-casting. "Although the Internet offers the op-portunity to extend both the brand and reachof our radio stations, SurferNETWORK wasable to show us an approach and the righttechnology to make webcasting an attractivebusiness."-CM

RBR News Briefs

MediaAmerica signsAudioBasket.comAudioBasket.com has chosenMediaAmerica to rep its streaming audioad inventory. AudioBasket offers a per-sonalized scheduling service that ac-cesses audio news and content from morethan 200 sources, including The AP, ABCNews, BBC and Bloomberg. Users canthan access their account and listen viacomputer, MP3 player or wirelessphone.-CM

Mancow TV draws to a closeWKQX-FM Chicago -based conservativeshock -jock hybrid Eric "Mancow"Muller says he is "pulling the plug" on hislocal TV show. After 18 months on WCIU-TV (Ch. 26, Ind.), Mancow tells The Chi-cago Sun -Times he is ending the showbecause of an upcoming national TV

show next year. Mancow told us in an RBRinterview there were strong offers fromFox -TV. However, Neal Sabin, EVP ofWiegel Broadcasting (WCIU parent Co.)tells The Sun the show was droppedbecause advertisers had shied away fromits "racy content." He did add the show'sratings were strong.-CM

WarpRadio signs with APStreaming provider WarpRadio.com an-nounced a deal today with the AssociatedPress that will offer AP Radio newscasts toWarp's 350 affiliates through separate li-censing agreements.-CM

Premiere testing with HiwireNot just for radio: Premiere Radio Net-works may be interested in targeted adinsertion for its web properties. PremierePresident/C00 Kraig Kitchin tells RBRhe is testing Hiwire's ad insertion technol-ogy with "Coast to Coast AM with MikeSiegel": "Playing upon our ability to tar-get individual markets with StarGuide, weare also looking into what we can do on theweb for targeting. Hiwire has some im-pressive technology."-CM

10/2/00 RBR www rlo corn

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Page 18: adio B si iless Report - americanradiohistory.com · 10/2/2000  · _Al adio B si iless Report ... Editorial/Advertising Offices 6208-B Old Franconia Road Alexandria, VA 22310 PO

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