lecember 14, 1998Volume 15, Issue 49

Acoustics

Architecture

Consoles

Engineering

Ergonomics

IntegrationFurniture

Peripherals

Patch Bays

Supervision

Wiring

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Y$2K? Guru sees big bucks in new millennium 2

McCann-Erickson's Robert Coen sees good revenue gains for radio and other

media after a slow start in 1999. But ad spending will really take off in Y2K.

Double-digit gains continue with 15% October 3

Conventional wisdom leads to NAB profit 3

Kennard's ownership policy weather balloon runs into gale 3

Intern -al solution: FCC finds summer jobs for students 3

Finley Skips out on AURN to start consultancy 3

News operations less than frisky after Frisco outage 4

FCC ill at ease about EAS compliance 4

Consumer DAB hardware: Ask WorldSpace and ye shall receive 4

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Sinclair radio divestitures won't happen in its TV markets 5

Lucent Digital Radio places its bet on IBOC 6-8

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Arrow, Stern duke it out in Classic Ft. Myers battle 10

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Infinity finds good Karma on third Wall Street spin 12

The third IPO for Infinity Broadcasting is now trading on Wall Street, and was

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Clear Channel, Chancellor stress their radio roots 12

Washington: Mega deal washes out AM boss jocks 13

Policy of Defiance (OH) defines Jacor's latest buy 13

Cumulus adds and subtracts in Fayetteville AR 13

Holladay spirit prevails in Dothan deal 13

PATRICK COMMUNICATIONS Station Brokerage Debt & Equity Placement Fair Market & Asset Appraisals Expert Witness Testimony

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Jim Carnegie Publisher

Ken Lee Associate Publisher/GM Cathy Carnegie VP Administration

Jack Messmer Executive Editor Ronald Greene Executive Director of Production

Dave Seyler Senior Editor John Neff General Sales Manager

Carl Marcucci Associate Editor Maggie Daley Account Executive

Jim Allen Associate Editor Beth Dell'Isola Account Executive

Mona Wargo FCC Rc,,carch Consultant April Olson Admin. Assistant

Forecasting gurus see 1999gaining, 2000 soaringby Jack Messmer

Look for 1999 to start off slow for adspending, then build a head of steamfor a stronger second half, setting thestage for explosive growth in 2000.That's the story of the future told lastweek by the crystal ball gazers at The26th Annual PaineWebber Media Con-ference in New York.

"Early year comparisons look to behorrible," said Robert Coen. Sr. VPand Director of Forecasting forMcCann-Erickson, who expects totalad spending (and TV in particular) tolag in early 1999, compared to '98,because of the lack of Winter Olym-pics spending that boosted the previ-ous year. But once that weak earlyperiod passes, Coen is projecting de-cent gains in ad spending for the fullyear, with Q4 particularly strong.Radio will be leading the pack againin 1999, according to Coen.

The closely watched forecaster seestotal US ad spending going up 5.5%next year to $212B. Coen expectsradio to show the strongest growth inlocal advertising, 6%. Among themajor national media, Coen's fore-cast of 7.5% growth for radio issecond only to cable TV's 12%. (Seechart, right.) Coen's forecasts in re-cent years have tended to be a bitconservative and he admitted that heunderestimated the strength of theUS economy this year. "Just aboutevery medium has done as well or

better than we thought possible ayear ago," he noted.

Rather than the 6.5% growth thatCoen predicted a year ago, nationalradio (spot and network) is now ex-pected to finish 1998 with a 9% gain.Local radio will beat his 6.5% forecastwith 8%. Coen now expects networkTV to grow 7% this year, well abovehis forecast of 5.5%, syndication TVwill far outpace his 5.5% forecast at8%, but spot TV will fall short of his6.5% forecast at 6.2%. Local TV isfinishing a full point ahead of his6.5% forecast at 7.5%.

Newspapers also did better thanthe 6% gain that Coen expected fornational business, growing 8%, buthe was right on the money for local at6%. He also got national cable TVgrowth correct at 13%. Might Coen beunderestimating the coming year'sad market again? "All of the economicforecasts were a lot lower than thingsturned out," he noted in explainingwhy this year's ad spending outpacedhis expectations. "Maybe we're in thesame frame of mind now."Shoot for the stars in 2000While '99 looks like a decent growthyear, many analysts believe it willmerely set the stage for explosivegrowth in 2000. Coen told RBR thathe expects the millennium impact tobe much like 1976 US Bicentennial,when total ad growth topped 20%. He

isn't yet committing to double-digitgrowth, since inflation was a muchbigger economic factor in the '70s.

"Every marketing manager wortha nickel today is working on a prod-uct to be a new 2000 product," noted

Coen's 1999 forecastHere's what McCann-Erickson forecasterRobert Coen expects in ad growth forthe major US media in 1999:

Cable TV 12.0% 6,905

Radio 7.5% 3,530

Syndication TV 7.0% 2,820

Newspapers 6.5% 5,765

Magazines 5.5% 10,930

Big 4 TV nets 4.0% 14,485

Spot TV 4.0% 11,045

Consumer media 5.9% 55,480

Yellow pages 7.0% 1,980

Direct mail 6.0% 42,035

Other national 6.0% 26,030

Total national 6.0% 125,525

Local Gain aM

Radio 6.0% 11,995

TV 5.0% 12,910

Newspapers 4.5% 40,605

Yellow pages 4.0% 10,545

Other local 6.8% 10,430

Total local 5.0% 86,485Grand Total 5.5% 212,010

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Sinclair Broadcast Group (O:SBGI)CEO -designate Barry Baker. Thosenew products will all have to be intro-duced and supported with advertis-ing, so he expects to see a gangbustersQ4 in 1999, leading into a super 2000.

CBS' (N:CBS) in-house guru isalready predicting double-digitgrowth for network TV in the millen-nium year. "I believe that the arrivalof the 21st Century will provide thesame form of marketing stimulusthat the Bicentennial provided in1976, the television industry's bestyear ever," said David Poltrack.Exec. VP, Planning & Research, CBSTelevision Network.

Since the key event of the Bicenten-nial came in mid-year-July 4th-Poltrack expects millennium advertis-ing to take off in Q4 1999, leading upto the big celebration on January 1,2000.

Radio up 15% in Oct.

Overall radio ad sales surged 15% inOctober, pushing radio toward pos-sible double-digit gains for 1998. Localsales rose 12%, while national shot up23%, according to the Radio Advertis-ing Bureau.

Year-to-date through 10 months of'98, total radio revenues were- up 12%.Local was ahead 11%, with national up15%.-JM

NAB sees black ink, red flag

Thanks to a better than expectedturnout at the NAB Spring Show inLas Vegas, the National Associationof Broadcasters' books are in goodshape heading to the new year. NABmade $21.5M, nearly $800K morethan expected, it was reported at itsExecutive Committee meeting in No-vember. When the tallying is done,the NAB Radio Show in Seattle isalso expected to exceed projections.

Overall, NAB was running $1.9Mahead of budget for the first half,CFO Ken Almgren reported.

The Committee has also agreed toset-up a Radio Spectrum IntegrityTask Force, that will examine the im-plications of microradio and satelliteDARS. Radio I3oard Chair BillMcElveen will select a dozen broad-casters to sit on the task force. Thegroup's budget will be $40K, accord-ing to NAB sources.

On again, off again ownership rulemakingby Jim Allen

Political and industry reaction to FCC Chair-man Bill Kennard's (D) plans to tightenownership rules which could include furtherrestricting radio and TV same -market own-ership, eliminating TV LMAs, and generallychanging the way broadcast ownership ismeasured may have prompted him to keepthe item off of this week's meeting agenda.

It has been widely reported that the own-ership item will not appear on the December17 agenda and some insiders are saying, byputting it out there for possible review,Kennard was simply "floating a trial balloon"to gauge reaction. Well, the reaction was, atleast publicly, fast and furious in opposition.

"The commissioner is in a listening modenow, he felt more time was necessary todiscuss these issues with all parties in-volved," according to FCC spokesmanDavid Fiske. "Four very comprehensive,serious proposals were presented to thecommission and it is very common for thereto be policy issues, questions and changes.The chairman's goal is to balance compe-tition and diversity," Fiske added.

In a tersely worded letter to Kennard,Senate Commerce Chairman JohnMcCain (R -AZ) wrote, "The proposals tomake the...rules more restrictive are furtherexamples of the Commission's failure toaccurately perceive the highly competitivenature of the electronic media marketplaceand revise its rules accordingly." McCainfurther admonished the commission, writ-ing, "its actions to date have not evidencedeither understanding of the marketplace orcompliance with the task specifically as-signed to it by Congress in 1996."

However, Kennard has time and againfallen back on the '96 Telcom Act as hisdefense. He has invited reporters to "take alook at the statute," saying it gives the FCCthe power to revise ownership rules as itdeems necessary. He has said on morethan one occasion that the FCC always hasto "interpret" the statute.

Sen. McCain argues the statute "unam-biguously" directs the FCC to review broad-cast ownership rules biennially "with an eye

FCC promoting internshipsFCC chair Bill Kennard, with broadcasterbacking, has pledged to expand womenand minority student summer internships inpartnership with the the Emma L. BowenFoundation for Minority Interest in Media.The FCC recently proposed new rules thatwould require licensees to inform womenand minorities of job vacancies.

toward lessening them, not increasing them."And added, "the national ownership cap ispart of an antiquated regulatory regime bornof a time when ABC, CBS and NBC com-manded a 95% share of the viewers."

Commissioner Harold Furchtgott-Roth's (R) spokesperson told RBR, "onthe specific rulemaking, we have yet toissue a statement because we have yet tomake up our minds. But, on the generalquestion, with so many communicationsoptions available now, we are not sure thespectrum scarcity argument holds up."

"We need a little bit more time to work onthis pretty substantial issue, to think it

through and work everything out," noted aspokesperson for Commissioner MichaelPowell (R).

Commissioner Susan Ness' (D) spokes-person said, "It's evident that many broad-casters and others wish to talk to us about thevarious issues raised in the four proceed-ings. We would like to have a little more timeto be able to consider all viewpoints."

Commissioner Gloria Tristani (D)apparently was the only one who "wouldhave proceeded with the review of theproposals. Now we don't know when thatreview will happen," according to herspokesperson.

Sources inside the FCC told RBR thatover a dozen broadcasters held audiencewith commissioners last week alone.

"What would the FCC accomplish by end-ing dual -TV operations when it'll becomelegal for TV stations to buy a second channelfive years from now when analog channelsare auctioned off after the transition to digi-tal?" asked Sinclair (O:SBGI) CEO -desig-nate Barry Baker, speaking at thePaineWebber Media Conference in New York.

Defending radio/TV combinations headded, "You can't stop this...you need ra-dio and TV to compete against multi -chan-nel [cable] providers." Baker also insistedthat the 1996 Telcom Act grandfathered inall existing LMAs and threatened a courtbattle if Kennard carries through on"sunsetting" grandfathered LMAs.

Finley becomes consultantAmerican Urban Radio Networks CEO SkipFinley will be leaving his post at the end ofthe year to launch Washington, DC -based"Answers, Solutions," a managementconsultancy offering a six -week executivedevelopment and success course via e-mail, phone and fax. He offers courses forPDs, GMs and GSMs.

12/14/98 RBR 3

Power outage in Friscoleft some stations newsiess

by Carl MarcucciPacific Gas & Electric's San Mateosubstation went down at 8:16A lastTuesday and tripped other substa-tions to go out in the regional powergrid. It caused many problems formorning commuters in the MUNI metroand BART subway systems. 375,000customers were out of power betweenSan Jose and Napa/Santa Rosa.

Erick Steinberg, CE, Susquehanna'sKNBR, KTCT-AM, KFOG, KFFG, KSAN-FM says the superduopoly came throughthe outage rather seamless: "All ourgenerators started after 30 seconds, wewere just fine. And our studios haveUPS battery backup. The biggest prob-lem was the elevators didn't work andwe had to walk up 10 flights of stairs."He found only two stations that were

off -air- KSFO-AM and KZSF-FM.American Radio Brokers presi-

den t Chester Coleman works down-town and was shocked at localradio's lack of coverage: "Going upand down the dial at 9AM this morn-ing, of all the 54 stations in themarket, only two of them were giv-ing information about this poweroutage-KGO-AM and KCBS-AM.Many of these 54 stations don't haveany news department and havefarmed it out to Metro or Shadow,and of course, they had no backupgenerators in their buildings, so theywere out of business."

Coleman says the news was worsefor TV. "Half of the TV transmitterswent down on San Bruno Mountainand the Sutro tower. Some of themdidn't have backup, some of themcouldn't get their generators up."

The FCC's New Year's Compliance Resolutionby Jim Allen

The FCC says it is going to get toughernext year following less than satis-factory results of a recent survey ofbroadcasters' Emergency Alert Sys-tem (EAS) compliance, in additiondiscovering a slew of unregisteredtowers.

After surveying 653 AM, FM & TVstations, the FCC says stations haveimproved, but must do a better job ofcompliance with EAS requirements.The agency also says compliancelevels were "below expectations" in:EAS equipment installation and op-eration (87% compliance), othersource EAS monitoring (83%), EASlog maintenance (77%), EAS hand-book availability (85%), and sendingand receiving EAS tests (76%).

"We have strongly urged and willcontinue to urge our members tohave EAS equipment in order andworking properly. This is a seriousmatter for the FCC and it's impor-tant that stations come into compli-ance," said NAB spokesman DennisWharton.

Looking to move stations to itsgoal of 100% compliance and givingthem a couple of months to get theirhouses in order, beginning February1, 1999, the FCC will again dispatchinspectors from its field offices tocheck for EAS compliance.

On the tower side, certain struc-tures that may pose a hazard to air

4

navigation must be registered withthe FCC. In a separate survey of 1,331existing antenna structures (includ-ing radio), its Compliance and Infor-mation Bureau (CIB) found that 368or 28% were not registered.

An FCC compliance official toldRBR, "There will be another regis-tration audit sometime during FY'99. We were hoping there wouldn'tbe such a large number and we don'thave a breakdown by tower type-TV, PCS, radio-but we want to raiseawareness, hopefully to bring own-ers on board to register as soon aspossible."

Site owners and not the tenantsare the "primary responsible entity"for antenna registration as well astower painting and lighting, "but,permitees do retain a secondary re-sponsibility, if the owner stays out ofcompliance and the permitee is awareof it," according to that official.

CIB Bureau Chief Richard D. Leeserved notice that, "We consider theantenna structure registration pro-gram an essential part of air trafficsafety. We will, therefore, step up ourefforts to audit antenna structuresfor proper registration."

Penalties in either situation areassessed on a case -by -case basis andcould range from a simple warning toa notice of apparent liability for forfei-ture.

WorldSpace unveils receivers;signs deal with CNN

by Carl MarcucciLast week (12/9), Washington -DC -based WorldSpace Corporation andits manufacturing partnersPanasonic, JVC, Sanyo and Hitachiunveiled their premier direct -from -satellite receivers that will be mar-keted to vast underserved listen-ing areas in Africa, the Middle East,Asia and Latin America. "Onemonth ago we watched as our sat-ellite rose majestically from itslaunch pad [10/28] and roared intospace over Africa. Today we unveilthe final element of our system,"said Noah Samara, WorldSpaceChairman/CEO.

R&D and chipset design for thereceivers was done as a cooperativeventure between German -basedFraunhofer, Micronas-Intermetall,Rohde & Schwartz; and ST Micro-electronics of Italy.

$1B has been raised in privateinvestment for the venture that, by2000, will reach "80% of human-ity." Programming to Africa and theMiddle East will begin in April orMay '99. Samara said WorldSpacewill produce revenues from leasingchannel capacity to broadcasters,advertising/spots, subscriptionrevenues (i.e. pay -per -listen sport-ing events) and data service in thefuture that can plug into PC's dataports. "We say 60-80 channel ca-pacity now, because we're not sureyet what final content broadcasterswill provide. A Talk format needs alower bit rate than music-if it wereall talk, we could provide 90 chan-nels or more," said WorldSpaceSpokesman Adam Anthony.

It was also announced(WorldSpace's 16th content deal)that CNN International will take achannel, providing internationalnews and entertainment with its24 -hour pan-European audio ser-vice.

RBR observation: While we knowWorldSpace owns 20% of U.S. sat-ellite DARS proponent XM SatelliteRadio, the $1B private investmentin WorldSpace is just that-pri-vate. Anthony told RBR WorldSpacewill not identify its investors, butthey are from "every region of theirservice."

12/14/98 RBR

lusiness ReportAckerley adds three TVs

The Ackerley Group (N:AK) is expand-ing its TV group to a baker's dozen(13) with a deal to buy three Oregonstations from Wicks Broadcasting for$26M. The stations, all NBC affili-ates, are KMTR-TV Eugene, KMTZ-TV Coos Bay and KMTX-TV Roseburg.LMAs took effect early this month.

Sinclair divestitures near

Sinclair Broadcast Group (O:SBGI)CEO -designate Barry Baker told thePaineWebber Media Conference inNew York (12/7) that the company isclose to finalizing contracts for someof the $500M in "non -strategic" as-sets that it's pledged to divest. Bakerwouldn't divulge what stations werebeing sold, but he did offer someinsight into what is not for sale. Bakersaid Sinclair won't sell stations inmarkets where it has two TVs (oneowned/one LMA'd) or where it ownsboth TV and radio. He also said hewon't sell in radio -only markets wherethe company has "dominant" sta-tions. "We're already looking for TV togo with them," he noted.

Allen invests in Wink

Continuing his recent series of broad-cast/cable media investments,Microsoft (O:MSFT) co-founder PaulAllen has made a $10M investmentin Wink Communications Inc. via hisVulcan Ventures investment firm.Wink, which provides interactive TVservices, recently shelved a $75MIPO because of the weak market fornew stocks. Allen plans to implementWink's interactive services on his re-cently acquired Marcus Cable andCharter Communications cable TVsystems.

CBS, Time Warner ink deal

CBS (N:CBS) and Time Warner Cablehave reached a deal that will allowthe signals of CBS' O&O TV stationsto be carried on Time Warner cablesystems in CBS markets. It is the firstsuch agreement between a major

cable operator and a TV broadcasterand it provides a framework underwhich local cable systems will carrythe digital signals of CBS affiliateswhich are not owned by the network,should they so desire. Time Warnerhas also promised to carry the CBS 6mHz digital signal unaltered.

"If digital television is to flourish,broadcast television and cable com-panies must work together to makesure that the signal makes it to thepeople who really count-our view-ers," said Jonathan Klein, presi-dent, CBS Television Stations.

TV Biz Briefs

WB President Garth Ancier, who helpedlaunched the network in Jan. 1995, willleave the network when his current con-tract expires in May. Ancier will work as aconsultant until then, to assist incomingchief Susanne Daniels -who is tappedfrom her job as EVP/Programming at WB.Industry sources are quoted as sayingAncier plans to join NBC.

A University of Miami survey of TV newsdirectors found 20% believe their stationhas pulled a news story out of fear of alawsuit. 28% said information had beenremoved from a story, also from fear oflegal action. The number of stations in-volved in lawsuits jumped 8% to 38%,compared to the 1995 study. The numberof stations using consultants also rose 19%

to 59%. The survey also found more sta-tions are using hidden microphones andcameras to gather material.

CBS (N:CBS) cost cutting has cost 20"Up to the Minute" staffers their jobs. TheCBS News overnight staff lost theemployeees two weeks ago, as the net-work began to integrate the overnightstaff with the "CBS This Morning" staff. InOct., CEO Mel Karmazin cut another125 newsroom employees.

DG Systems (O:DGIT) said its TV addistribution network has become the mostwidely used distribution net in the nation.By year's end, it is expected to serve 700stations. "We now have 85% of the bigfour network affiliates," said CEO HankDonaldson. DG Systems also services7,500 radio stations in the US and Canada.

CL OSEDPAXSON COMMUNICATIONS CORPORATION

Lowell "Bud" Paxson, Chairman and CEOhas agreed to acquire

KPXO-TVKaneohe (Honolulu), Hawaii

for

$6,900,000from

DOVE BROADCASTING COMPANYPaul A. Tennyson, President

Patrick Communications was proud to serveas the broker in this transaction.

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

12/14/98 RBR5

by Carl Marcucci

LDR: a business model to IBOC"Lucent Technologies/Bell Labs In-novations"-we all know the techno-logical dynamo that was spun offfrom AT&T in 1996. Lucent is un-questionably one of the world's lead-ers in communications advances-and has the patents to prove it. After30 years of separation from broad-casting, this powerhouse is back in itwith Lucent Digital Radio (LDR), adivision of Lucent New VenturesGroup.

Because IBOC development is wellin line with digital wireless communi-cations technologies, Lucent first gotinvolved with USA Digital Radio's workthrough a nine -month joint develop-ment agreement that offered to inte-grate its PAC compression technol-ogy. Perhaps seeing how much morethan a codec it could offer to make anIBOC system work, Lucent decided togo it alone May 11.

As gifted as Lucent's engineers are,competitors USADR and Digital Ra-dio Express have been in develop-ment much longer. LDR claims com-petition is key to getting IBOC fin-ished soon-at least around the timesatellite DARS launches-and will befield testing both AM and FM systemsnext year.

RBR talked with LDR PresidentSuren Pai and Director of TechnologyPlanning Alan Pate in its first in-

depth look at Lucent's new venture inradio.

What is LDR's business model?Pai: Lucent Digital Radio's objectiveis to see IBOC technology implementedas products in the market in a verytimely manner. We have to have prod-ucts whose performance ensures com-mercial viability. Broadcasters mustbelieve this is something worth pay-ing for, consumers must have thesame belief and manufacturers haveto be convinced their products willsell in a market.

Our business model is one of anintellectual property company. We willlicense the technology openly to equip-ment manufacturers-both the trans-mission site and radio receiver equip-ment. The business model is onewhere we ensure open access to thistechnology for all equipment manu-facturers. We get the technologyadopted as quickly as possible througha high level of competition, encourag-ing innovation in the products basedon technology features and capabili-ties. Ensuring that we have competi-tive forces in the product market-place ensures a rapid time to marketand delivery of product.

What we want is not only to developproducts, but develop a businessmodel that creates new revenue op-portunities for broadcasters. This re-quires a very integrated systems ap-proach to the whole technology de-sign and development. And it requiresdevelopment of a market -orientedstandard that has binds from all con-stituencies. All of these things mustcome together-the business model,the technology -design approach, andthe development of consensusamongst all constituencies that thisis the right thing to do. That's whenthey will adopt it.

All of this has to be done in a timelymanner, because satellite DARS is

around the corner. We need to ensurethat broadcasters have this technol-ogy in their hands to provide the rightcomparative response, as based onwhatever capabilities they can gener-ate with this technology and withtheir own existing strengths aroundlocal programming.

How do you think satellite DARS isgoing to affect the radio industry,and therefore the effectiveness ofgetting IBOC accepted?Pal: My own perception is that satel-lite DARS is a very different businessmodel than commercial radio as weknow it. Just by the virtue of the factthey are going to charge fees to con-sumers for a service positions themoffering or targeting a consumer seg-ment that is very likely different fromcurrent radio listeners. There will besome overlap, obviously. I don't be-lieve that it's a huge overlap. I don'tbelieve that someone who enjoys lis-tening to free radio today is likely toswitch to satellite -delivered servicepaying a subscription fee for it.

What about new revenue opportu-nities-you've mentioned (at NABSeattle) program -associated dataand datacasting,from stock quotesto intelligent navigation. Is LDRlooking at any user-interactivefea-tures or other new services to beincorporated in to the system?Pak We are talking about transitioningthe entire national infrastructure froman analog system to a digital system.This could take years, if not decades.The approach we are following is onewhere we design a system cir a plat-form that will allow for continuedinnovation over time-capable of ac-cepting further enhancement and fur-ther innovation over the next 3, 5, 7,10 years. A system that could, atsome future point in time, be linkedto a return channel via some other

612/14/98 RBR

kind of infrastructure, be it cellular,PCS or CDPD (cellular digital packetdata-wireless data transmission pro-tocol) or whatever. Clearly the marketwill determine whether the demandexists for such an application.

What we call the listener today, inthe future is really going to be a con-sumer of information, not just a lis-tener to audio. You don't know whichway or how rapidly convergence willtake place in this industry. The pointis that we have to take into accountthe possibility that new trends coulddevelop in the marketplace, as well astechnological discontinuities, whichwill allow you to do things that younever imagined possible. We have totake a systems approach, a platformapproach, a methodical approach todesigning these systems so that youleave open the possibilities. And try toincorporate as many features and ca-pabilities into the system without driv-ing up the cost.

What is "multi -streaming," andhow does this coding techniquedifferentiate LDR's system fromDRE and USADR?Pate: Multi -streaming is a techniqueby which audio andbreak it up into smaller buildingblocks. Those smaller building blocksare then broken up and transmittedin the two side bands in a particularway, then transmitted over the airlink to the receiver and the receivercan then combine those buildingblocks back together.

Now the importance of this tech-nique, which is one of our maindifferentiators, lies in the fact that itallows the receiver to make a selec-tion amongst various levels of qualityof delivered audio, depending on theparticular channel conditions. Here'san example: suppose we have twousers within the same coverage areaof the same broadcast station, one ofthem is in an area that has poorchannel conditions, such as poor firstadjacent signal reception, another isin an area that has very good qualitywithin the protected contour. Thereceiver in the impaired user's radiois able to then select perhaps two orthree (I'm just using some examplenumbers as these are not the realnumbers) building blocks out of thefive possible that were transmittedover the channel, the other blocks

being impaired. Those are then as-sembled together to provide a certainlevel of received audio quality. Theuser in an unimpaired situationwithin the radio coverage area is ableto assemble all the building blockstogether to get the full audio quality.

So impaired reception zones mighthear a little bit of a drop in audioquality, but are not going to havecomplete digital dropouts.Pate: Yes, multi -streaming allows youto emulate the gradual degradationthat you would experience with ana-log at a higher quality level and in afully digital way. Although one can, inour system, use a technique of re-verting back to the analog host [likeUSADR's] signal, you do not need to.This technique essentially emulatesthe gradual degradation that an ana-log user would experience at the edgeof coverage.

What was the reason Lucent brokeoff itsjoint development agreementwith USADR and decided to go italone? (answered by New VenturesGroup Media Manager Chris Pfaff)I think that at the end of the day, wewanted to take things further for ourown business purposes, as well as forthe industry. What we personally learnedamong many other things, was the factthat there was a great opportunity herefor Lucent to extend its technical exper-tise into a market space that didn'tnecessarily know the company and thatit was too good an opportunity for us tonot create a discreet business venture.IBOC DAB is enough of a opportunitythat really, the more players, the morecompetition, the more innovation.Twelve months ago, the landscape wasmuch different. In less than a year, yousee what this kind of opportunity -seek-ing can yield.

What do you think about USADRfiling the petition for rule -mak-ing? Could you meet the deadlinesif it were adopted? How will you beresponding?Pai: Will we be responding to thepetition? Absolutely. Will we meet[its] December 15 [1999] deadline?There's no question about it. Willothers be filing? I expect that therewill be several other interests regard-ing filing responses to that petition.Yes, there will be comments and there

will be responses to the petition. Thosewill be become public on December23. That is when everyone will findout what everyone else is thinking.

Do you think you'll be filing yourown petition?Pai: We will have to see how thiswhole regulatory filing process un-folds. We will be prepared to do whatis necessary to protect our businessinterests.

Do you know what markets andstations you will be using for fieldtesting?Pai: We are going to start field-test-ing, beginning the first quarter of '99with FM. We will start testing our AMsolutions closer to middle of '99. Andturning in the results of the field andlab testing to the NRSC by the end ofthe year. Clearly, our initial focus willbe something in the mid -Atlantic area,just driven by the proximity.

I've heard you are contemplatingslowing down the FM system's bitrate from the fixed 96 to 64kbps-if so, why?Pate: In general, when you have avery difficult radio channel overwhich you wish to transmit goodquality audio, for a given audio qual-ity level, the lower the source bit ratethat you can generate, the more pro-tection in the form of channel codingone can apply to the signal. There-fore, the more robust.

However, you want to keep theaudio quality high. So the overalldesign objective then is for a givenaudio quality level, how low a bit ratecan you produce and still maintainthat audio quality? There are a num-ber of techniques that can be used-multi-streaming is an example ofone, and a basic improvement in

12/14/98 RBR7

source coding, whereas you can re-duce the bit rate at the same highaudio quality level.

DRE's system will allow the broad-caster to adjust the bit rate forthe particular terrain in his orher market. Do you think LDR'ssystem will offer that?Pate: In order for the system to becommercially viable, it is clear toLucent that there are a number ofoptions that the technology couldoffer the broadcaster that they maywish to tailor to their particularbusiness or radio station environ-ment. We plan to provide those ca-pabilities.

Some have been disappointed inthe fact that the IBOC exciterspresented by USADR and DRE re-quire a separate amplifier andcombiner unit. Is LDR looking todesign its system for easier airchain -integration?Pate: In order for this to be commer-cially viable, there has to be a coher-ent transmitter integration approachfor IBOC. We have a number of trans-mitter integration approaches.Clearly, the minimum amount of in-frastructure upgrades that are re-quired, the better the solution-thatis fundamental to the way we areapproaching the engineering designof this system.

What is LDR's engineering designapproach to this project?Pate: The LDR system uses a varietyof radio modulation, channel cod-ing, and audio source coding tech-niques, all of which essentially havebeen developed by Bell Labs here.Our engineering design approach isto link these engineering designstogether. In other words, not to de-sign the system separately, but de-

Mad

PassionateBroadcasting

for the21st Century

sign it in an integrated fashion, whichgives us a significant performanceadvantage. The various schemesyou've seen us represent are schemesthat Bell Labs over the years hasdeveloped, invented, and thoseschemes and others are part of ourengineering design tool kit [see chart,right] for this system.

We have access to an entire rangeof technologies from Lucent. Lucentobviously has a whole range of wire-less technologies that may or maynot have some applicability to IBOC.LDR is in the enviable position ofbeing able to integrate those tech-nologies together and focus them onthe IBOC problem.Pai: We have several tricks in ourbag that we will pull out as part of thefield-testing. As we figure out whichis the more optimal technique fromthe design standpoint, or if [one]doesn't work as well as we expectedit to, we can modify it or pull outsome other technique that wouldn'thave been ideal from a processingand cost standpoint, but does betterfrom the performance standpoint.

If there is anything else that youwant to comment on that makesLDR's system unique?Pai: We are a communications com-pany, and although we have notplayed in the broadcasting industryfor the last 15-20-30 years, what weare talking about now are communi-cations technologies. Broadcast tech-nology is communications technol-ogy, it just so happens that it hasn'tchanged over the last 30 years. Thatdoesn't mean that we cannot bringour bag of tricks to the table and tryto solve problems that might appearvery difficult or impossible for oth-ers.

Some of Lucent'stechnological "tool kit"While it can't mention the entire tool kitjust yet, Lucent supplied some of thetechnologies it has to choose from toapply to the final design of its AM and FMIBOC systems.

List Viterbi Algorithm: An enhancedViterbi algorithm optimized for broadcastenvironments that aids in error conceal-ment. Allows the receiver to address mul-tiple bit patterns transmitted over theDAB signal, whereby the List Viterbi de-coder will choose the best, undamagedinformation from each pattern.

Multi -streaming: Allows for multipledigital streams, e.g. in each sideband.[see description in story]

Error Concealment: Minimization ofimpact of errors in the audio bit stream, inconjunction with List Viterbi.

Convolutional Punctured PairCodes: Enhanced convolutional codingapplied to each sideband that improvesrobustness in the presence of poor chan-nel conditions. Unequal Error Protection:Prioritization of coded bits according totheir impact on audio quality. Time and Frequency Interleav-ing: Two mechanisms to introduce di-versity into the signal to improve robust-ness in the presence of poor channelconditions.

Adaptive Bit Rate PAC: Feature ofPAC that allows for the optimal bit rateallocation based on source material. Multi -Descriptive Coding: Inte-grates audio and channel coding de-signs to allow for controlled, gracefuldegradation of quality of the digital signalunder poor channel conditions, improv-ing robustness and/or coverage of thedigital signal (in hybrid mode).Source: Lucent

Does Your Signal Suck?Find out how to maximize your signal!

We analyze your coverage with highly accurateprediction and measurement systems, then provide

solutions for a stronger, louder and cleaner signal. Worldwide.

800 801 CMBE (2623) www.cmbe.com +1 530 676 4344

8 12/14/98 RBR

jr_le're the #1 FM ?W 'sic station in Philly, probablybecause the Omnia completes our all -digital studio. Now, oursound is so loud, so clear... very well-defined with absolutely

My GM, PD and I all agree: The Omnia's a keeper. "

Gvess Ivst 0110")/CAS419e,- eve ihstilNed#Ae

1 -AleArec-froP) SAySe

Cdr/s-/-61t/or) PA///y. Period,Mci,VcS, CvY-i-ifr)g Edge/We',-ece%6rgtiri9qt 5-/0/./

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Russ dared to go where hiscompetition isn't. Yet.

The all -digital Omnia.fm processorfrom Cutting Edge delivers all theclarity and precision of digital, withthe fullness and depth of analog.You have rock -solid peak control.Positively no grunge. And amazingloudness that's sure to blow yourcompetition right off the dial.

Demo the Omnia in your station for60 days*. We think everyone willagree that the Omnia makes yourstation sound better than ever. Plus,you have a no -risk, money -backguarantee from Cutting Edge. Callus at (216) 241-3343 or the Omniadealer in your area. Because this iswhere you want to go. Just ask Russ.

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*Demo requests must be submitted as a purchase order. Terms are available from your Omnia dealer listed below,

I Audio Broadcast Group 3685 Roger B. Chaffee Blvd. Grand Rapids, MI 49548 Tel: + I (616) 452-1596 Fax: + 1 (616) 452-1652 e-mail: support@abg.comI Bradley Broadcast Sales 7313G Grove Road Frederick, MD 21 704 Tel: + 1 (800) 732-7665 Fax: + I (301) 682-8377 e -mall: Infoebradleybroadcast.comI Broadcast Supply Worldwide 7012 27th Street West Tacoma, WA 98466 Tel: + I (800) 426-8434 Fax: +I (800) 231-7055 e -mall: InfoObswusa.comI Crouse-Klmzey Company P.O. Box 155999 Fort Worth, TX 70155 Tel: + I (800) 433-2105 Fax: + I (972) 623-2800 e-mail: sales@proaudlo.comI Radio Communications Unlimited 5509 Barrington Ooltewah. TN 37363 Tel/Fax: + I (4231 306-3743I Cavern 1121 Bellamy Road, North Unit 610 Scarborough, ONT MIFI 389 Tel: + I (416) 438-6230 Fax: + I (4161 438-1065 e-mail: bobecaveco.comI Marketing Marc Vallee 1067 Chemin St. Lambert St. Sauveur de Monts, QE IOR I121 Tel: + I (5141 227-1828 Fax: + 1 (514) 227-8394 e -mall: marcevallee. cornI All Electric 487 Caribou Crescent cogultlam, BC V3C 4X7 + I (604) 945-5651 Fax: + I (604) 945-5652 c -mall: alleleceduwco. cum

V , ,

111 Smut a -m1_1 I 1....JILAL "MIVIr1177.111r77 111 v.1rA_Lmr.1111111111I 1 vilkirlin 3 111 I 3 LI I Vil 3LV. III I I rii:i vmuloiriona I 1a1i1al7A-111111-11ill 11) 1a1 -1-L"'_111 a I 1111117111111".

Mail carriersare secret armyin Ft. Myersradio war

Wilat

can you do when a crosstown stations flipsto your format, and brings in Howard Stern tocompete against your established morning

show? Fight back, says a Ft. Myers station. The Sun-shine State is the stage for a classic war-a Classic Rockwar, to be exact. It is being waged between MeridianBroadcasting's WARO-FM and Beasley Broadcasting'sWRXK-FM. But WARO, "The Arrow," had a secret weaponcourtesy of Uncle Sam-the US Postal Service. It mailedout 50,000 station pieces, reminding listeners its morn-ing guys were local, while at the same time it played upStern's biggest weakness: He never shuts up.

"We have a big battle betwen us. The only thing K -Rockhas going for them is Howard Stern," said PD Mike Alan.

Of course, Stern can be a tough opponent. But thatdoesn't mean he is without an Achilles heel, notedBroadcast Direct Marketing (BDM) Regional ManagerScotty Morache. "Howard can't be local-and theseguys are. So we built a campaign that not only playedthat up, but also stressed the music."

Here's how it worked. Alan and McVay Media programconsultant Greg Gillespie developed what they wantedto say in their mailer, then BDM stepped in. The resultwas an oversized mailer designed to get the attention ofMen 25-40. On the cover was a photo of the morning teamholding wads of cash. Joining Alan wer sidekicks Waddyand Donna-wearing a skimpy blue satin dress. "Itdefinitely shows her attributes," joked Morache, notingagain that the demo is guys.

Inside the mailer was a postage -paid ballot for the"Classic Rock Awards," asking listeners to name theirfavorite Classic Rock album, song, band, artist andguitarist. It helped weed out the contest -pigs. BDM

mailed out 50,000 cards and nearly 2,000 listenersresponded with their votes. Alan and his AM crew workedoff of the returned ballots. They'd call a listener and playhis picks. At the end of the eight week campaign, thestation gave away its dial position in cash: $9,450.

Said Morache: 'They had a lot of fun with it and it gavethem a lot of room to move-and it talked about the musicand who the station played, so it was totally format focused."

The results were phenomenal when Arbitron's Springbook arrived. The Arrow's cume jumped 36% for Men 25-44, while P1 Men 25-44's cume increased 84%. WAROscored another big win in the 35-44 cells with a gain of2.2 hours a week in TSL.

What makes the gains so noteworthy is that WAROwas coming off substantial gains in its Fall 1997 book."Without this piece, they probably would have fallen backfrom where their Fall numbers were," says Morache.

The pricetag? $30,000-and worth every penny, saidAlan. "We had huge ratings, and obviously, the directmail piece had a lot to with it. It also recycled people intoother dayparts."

Meridian Broadcasting also owns WINK -TV, channel11, in Ft. Myers, and WARO could have easily relied oncross -promotional announcements with its 'IV sister.But, the station stuck with its mailbox promotion. "Whenyou use newspaper or TV, your message gets out therebut it doesn't always hit the people that you need toreach," said PD Mike Alan.

The Ratings Rise

"We're catching up," assessed WARO-FM PD MikeAlan-in comparing his book to that of his direct com-petitor. Despite WRXK-FM's Howard Stern advantage,the gap between the two is closing. Alan credited thedirect mail piece for his success in the Spring book.

MEN 25-49

SP 98 FA 97

WARO-FM 15.6 12.4

WRXK-FM 18.3 15.1

ADULTS 12+SP 98 FA 97

WARO-FM 14.2 11.3

WRXK-FM 16.5 14.1

Source: Arbitron

©1998 Radio Business Report, Inc. All content may not be reproduced, photocopied and/or transmitted without written prior consent.

All material is protected by copyright law. Any violations with be dealt with legally.

10 12/14/98 R BR

MI 11111 L .r. JIL"Jal'l'JaL"JI=

Dec. 9 RBR Stock Index 1998

Company

12/2Mkt:Symbol Close

12/9

Close

Net Pct 12/9Chg Chg Vol (00) Company

12/2

Mkt:Symbol Close12/9

CloseNet Pct 12/9Chg Chg Vol (00)

Ackerley N:AK 18.188 19.812 1.624 8.93% 60 Harris Corp. N:HRS 37.438 39.000 1.562 4.17% 2011Alliance Bcg. O:RADO 1.125 1.125 0.000 0.00% 224 Heftel Bcg. O:HBCCA 46.500 48.500 2.000 4.30% 1441Am. Tower N:AMT 24.000 25.750 1.750 7.29% 875 Jacor O:JCOR 59.875 61.000 1.125 1.88% 5228AMSC 0:SKYC 4.688 4.437 -0.251 -5.35% 453 Jeff -Pilot N:JP 68.188 70.625 2.437 3.57% 1006Belo Corp. N:BLC 19.375 18.687 -0.688 -3.55% 3380 Jones Intercable O:JOINA 32.438 32.000 -0.438 -1.35% 1274Big City Radio A:YFM 4.750 4.750 0.000 0.00% 32 Metro Networks O:MTNT 38.750 41.500 2.750 7.10% 25Broadcast.corn 0 :BCST 61.625 69.750 8.125 13.18% 26743 NBG Radio Nets O:NSBD 1.062 1.062 0.000 0.00% 10Capstar N:CRB 18.312 20.062 1.750 9.56% 1153 New York Times N:NYT 31.062 33.937 2.875 9.26% 4447CBS Corp. N:CBS 31.375 30.000 -1.375 -4.38% 24441 News Comm. O:NCOME 0.656 0.656 0.000 0.00% 0CD Radio 0:CDRD 38.250 37.750 -0.500 -1.31% 1463 OmniAmerica O:XMIT 25.875 27.312 1.437 5.55% 815Ceridian N:CEN 67.438 67.000 -0.438 -0.65% 1130 Otter Tail Power O:OTTR 39.781 40.750 0.969 2.44% 236Chancellor 0:AMFM 39.000 43.062 4.062 10.42% 50594 Pacific R&E A:PXE 1.500 1.312 -0.188-12.53% 135Childrens Bcg. 0:AAHS 3.062 3.000 -0.062 -2.02% 127 Pulitzer N:PTZ 80.562 80.625 0.063 0.08% 903Citadel 0:CITC 25.000 24.875 -0.125 -0.50% 64 RealNetworks O:RNWK 35.938 38.625 2.687 7.48% 7318Clear Channel N:CCU 48.750 49.562 0.812 1.67% 11799 Regent Pfd. O:RGCIP 6.000 6.000 0.000 0.00% 25Cox Radio N:CXR 38.188 40.375 2.187 5.73% 131 Saga Commun. A:SGA 18.875 18.500 -0.375 -1.99% 35Crown Castle 0:TWRS 13.312 17.625 4.313 32.40% 4105 Sinclair O:SBGI 12.875 15.312 2.437 18.93% 6034Cumulus 0:C MLS 12.750 13.000 0.250 1.96% 908 SportsLine USA O:SPLN 17.000 17.500 0.500 2.94% 8800DG Systems O:DGIT 3.750 3.250 -0.500-13.33% 168 TM Century O:TMCI 0.437 0.520 0.083 18.99% 0Disney N:DIS 31.250 33.750 2.500 8.00% 70246 Triangle O:GAAY 0.033 0.030 -0.003 -9.09% 3520Emmis 0:EMMS 35.938 41.812 5.874 16.34% 2890 Triathlon O:TBCOA 11.375 11.250 -0.125 -1.10% 10Fisher 0:FSCI 69.000 68.000 -1.000 -1.45% 0 Tribune N:TRB 61.688 63.687 1.999 3.24% 1604Gaylord N:GET 29.938 30.250 0.312 1.04% 159 Westower A:WTW 25.250 25.125 -0.125 -0.50% 93Granite 0:GBTVK 5.875 5.687 -0.188 -3.20% 796 Westwood One O:WONE 26.188 25.750 -0.438 -1.67% 1060

WinStar Comm. 0:WCII 26.375 33.250 6.875 26.07% 9768

Crown Castle gets contract

Crown Castle International (0:TWRS)announced a major contract with aregional wireless telephone company,Triton PCS Inc., to build 125 towers inNorth Carolina, Virginia and Tennes-see. The companies wouldn't disclosefinancial terms, but the deal gave a bigboost to Crown Castle's stock.

Hearst -Pulitzer closingnext month

Hearst -Argyle Television (N:HTV)Chair Bob Marbut says the pendingmerger with the Pulitzer (N:PTZ)broadcast group is expected to closein late January. Once the deal closes,Hearst Corp. and top managementwill own 48% of the merged companyand Pulitzer insiders will own 27%,with the rest held by public share-holders. Marbut is still calling Hearst-Argyle Wall Street's "largest pure -play television group," although thecompany will have radio in threemarkets after the merger, plus itsexisting managment of Hearst Corp'sBaltimore combo. Financial figurespresented at the PaineWebber con-ference showed only 5% of pro formarevenues coming from "radio/other."12/14/98 RBR

CLOSEDNovember 1998

Nassau Broadcasting Partners, L.P.Louis F. Mercatanti, Jr., Chairman

has sold the assets of

VVVP0 & WSBG-FMStroudsburg, Pennsylvania

to

Multicultural Radio Broadcasting, Inc.Arthur Liu, President

We represented the seller in this transaction.

SERAFIN BROS.Broadcast Brokerage & Finance

P.O. Box 262888, Tampa, FL 33685PHONE (813) 885-6060 FAX (813) 885-6857

11

V V

111111111-171-11-1M11111v.-1 _L_r_mr.111111 rl-TrarMI I I 131111111 I 1 1111:1131116:W.171 I I 1110131MI I I I I I

Infinity: Third time charms Wall Street

Mel Karmazin once again proved himself the darling of Wall Street, raising$2.87B dollars by spinning off 17% of CBS' (N:CBS) radio and outdooroperations as the third incarnation of Infinity Broadcasting (N:INF). It's thefirst time that any company in any industry has gone public three times-Infinity went public in 1986, private in 1988, public again in 1992 and mergedwith CBS in 1996.

The $2.87B price tagmade Infinity the largestmedia IPO ever, beating FoxEntertainment's (N: FOX)$2.8B (RBR 11/16, p. 11),and the third largest IPOever for all industries.

At the last minute, Karmazin increased the Infinity offering by 5M shares,to 140M, and the offering was priced at $20.50-in the middle of theanticipated range of $19-22. The anxiously -awaited stock shot up to $24.125early in the session on its first day of trading (12/10) and was a lock to be theday's most active issue on the New York stock exchange.

At the IPO price of $22.50, the 700M share stake of Infinity retained by CBSwas worth $15.75B. In other words, each CBS share (lately trading just above$30) included about $22.30 worth of Infinity. CBS' stock was up only slightlyin early trading last Thursday (12/10). Lead underwriter: Merrill Lynch & Co.

ononfinitymoo

Arch Broadcastinghas agreed to transfer the assets of

WFUN-FMBethalto, Illinois

by Jack Messmer

We're still radio companies!

Both Clear Channel Communications(N:CCU) and Chancellor Media(O:AMFM) were emphasizing their ra-dio roots at last week's PaineWebberMedia Conference in New York. Nearlyidentical charts in each company's pre-sentation illustrated how CPMs for ra-dio and outdoor, which happen to betheir largest divisions, are lower thanother media and, the reasoning goes,have the most potential for major gainsas consolidators drive sales. A similarchart was reportedly featured in theroad show for Infinity's IPO, whichwrapped up with a closed door (noreporters, due to SEC quiet period re-strictions) at the PaineWebber confab.

Jacor ups Clear Channel %With its pending $4.4B Jacor(O:JCOR) acquisition, Clear Channelwill again have radio as its largestdivision. Outdoor had briefly eclipsedradio, due to Clear Channel's rapidacquisition of Eller, Universal andMore Group. Pro forma for the Jacormerger, CEO Lowry Mays said ClearChannel will get 51% of its revenuesfrom US radio, 36% from outdoor (2/3 domestic, 1/3 overseas) and only8% from US TV. The remainder isattributed to smaller operations, in-cluding foreign radio investments.

Mays sees no end to the rapidgrowth of its radio and outdoor opera-tions: "It just gets better every daybecause consolidation economicswork so well in these two businesses."

Clear Channel filed last week to sellto $15M new shares-about $750M -

with the proceeds to be used to paydown debt."Cluster selling works"Chancellor CEO Jeff Marcus told thePaineWebber audience that it will taketime to build the company's cross -me-dia selling for its radio -outdoor -Tv multi-media platform, but one thing is alreadyclear for radio superduopolies: "Clusterselling works." Marcus said 88% ofChancellor's broadcast cash flow nowcomes from its multi -station clusters.

Despite this year's spate of out-door and TV acquisitions, Marcus

12 12/14/98 RBR

Alfred Liggins of

Radio One, Inc.

StarMediaGroup, Inc.

"Radio's Full ServiceFinancial Specialists" TM

5080 Spectrum Drive, Suite 609 East Dallas, TX 75248 (972) 458-9300

stated emphatically that Chancelloris "primarily a very fast-growing radiocompany." Pro forma for pending ac-quisitions, he said Chancellor will get73% of its revenues and cash flowfrom radio. Outdoor will provide 9%of revenues, but 11% of cash flow; TV11% of revenues and 10% of cashflow; and the Katz/Petry rep firms 7%of revenues and 6% of cash flow.Radio thinking drives TVEmmis (0:EMMS) CEO Jeff Smulyanlikewise emphasized his company'sroots in the entreprenurial radio in-dustry in explaining this year's moveinto TV by acquiring underperformingVHF network affiliates. "The biggestsuccess in American television in thepast decade has come from radiooperators-like Mel [Karmazin], likeLowry [Mays], like the people atSinclair-who have understood thatthe television dynamics are chang-ing dramatically," said Smulyan.

Mega adds DC stick

The days of boss jock Top 40 on AM inWashington, DC will soon come to anend. Bill Parris' Radio Broadcast Com-munications has agreed to sell WINX-AM to Mega Communications for$600K. An LMA is set to begin tomor-row (12/15), when a Spanish ballad -based format will debut. While the1600 kHz signal only covers DC's

northwestern suburbs, Mega CEOAlfredo Alonso said it has potentialfor an upgrade. Mega already coversDC and its Virginia suburbs with twoAMs that simulcast a Tropical format.Broker: Barry King, Norman Fischer& Assoc.

Jacor gets Defiance

Randy Michaels' Jacor Communica-tions (O:JCOR) has picked up an-other FM and its second TV station(albeit a low -power one), in a $3.95Mdeal with Lankenau Small Media Net-work, Inc.-which will sell WDFM-FMand WDFM-TV in Defiance, OH. TheFM does not have any overlap withJacor signals in nearby Lima, Findlayor Toledo. "It's just another spoke tothe hub," said a Jacor spokeswoman.

Fayetteville more "super"for Cumulus

Cumulus Media (O:CMLS) will expandits Fayetteville, AR superdoupoly withthe purchase of Demaree Media'sKFAY-AM / FM and KKEG - FM for$5.8M. In October, Cumulus agreed tobuy Hochman Communications'superduop for $6.5M (RBR 10/19,p.21). Now, though, Cumulus will buyonly three of the six Hochman sta-tions. Broker: Robert Maccini andStephan Sloan, Media Services Group.

RBR's deal digestClay Holladay's Gulf South Communications is buying WESP-FMDothan, AL for $1.4M from Charles Chapman's and J. McDavidFlowers' Signal Enterprises. Broker: Bergner & Co... Innovative Broad-casting will pay Great Scott Communications $800K for KSOK-AM & FM& KAZY-FM Arkansas City -Winfield, KS. Broker: Bill Whitley, MediaServices Group

The RadioIndexTmEnthusiasm for Infinity's IPOhelped boost The Radio In-dexTm to its highest levelsince 7/30. The Indexclosed 12/9 at 113.33, up3.62 from a week earlier.The barometer of radiostocks is now within strikingdistance of its 7/20 recordof 118.67.

THE WALL STREET JOURNALV.1[I 80 I./ n.... e........ R ADIO N ETWORK

120

110

100

90

11/18 12/2 12/9

CLOSER

KCWW(AM)Phoenix, Arizona

fromOwens

BroadcastingCompany, LLC

toABC, Inc.

for$5,850,000.

Elliot B. Eversand

Charles E. Giddensrepresented ABC.

BRIAN E. COBB202.478-3737

CHARLES E. GIDDENS703-847.5460

ELLIOT B. EVERS415.391-4877

GEORGE I. OTWELL513.769-4477

RADIO and TELEVISIONBROKERAGE APPRAISALS

MEDIA VENTUREPARTNERS

12/14/98 RBR 13

McCoy Broadcast Brokerage, Inc.

REAL RESULTS.

Under Contract!KCBR 1040 AMKCMN 1530 AM

Colorado Springsto

Crawford Broadcasting

JosEpii BENNETT MCCOY, IllCol.oltAho SPRINGS, Ctn.()RAW

719-630-3111 PlioNE

719-630-1871 FAx

HAMMETT & EDISON, INC.CONSULTING ENGINEERSRADIO AND TELEVISION

Sen'ing the broadcast indusny since 1952...

Box 280068 San Francisco 94128

HE707/996-5200202/396-5200engr@h-e.comwww.h-e.com

SNOWDEN

AssociatesMedia Brokerage

Valuations Financing Consulting

Tom Snowden C. Zoph Potts Ray Bergevin

Phone: 252-355-0327Fax: 252-355-8386

Control Your Transmitter... and Your Budget

Davicom remote controls aresized to fit small, medium, largeand multi -site applications, andour "extras" don't cost extra!Call today for more information.

davicomtechnologies

tel: 609-653-1065 fax: 609-653-1075

The deals listed below were takenfrom recent FCC filings. RBR'sTrans-action Digest reports on all deals thatinvolve assignment of a station li-cense (FCC Form 314) and substan-tial transfers of control of a licenseevia a stock sale (FCC Form 315), butnot internal corporate restructurings(FCC Form 316). All deals are listed indescending order of sales price.

$6,300,000-* WLAY-AM & FM &WKGL-FM Muscle Shoals -Russellville ALfrom US South Broadcasting CompanyInc. (Thomas H. Griffith, R. Parker Griffith,Larry A. Crim) to Cumulus Licensing Corp.(Richard Weening, Lew Dickey Jr.), a sub-sidiary of Cumulus Media (O:CMLS). $315Kletter of credit as escrow, $6.3M in cash atclosing. Existing duopoly. Broker: DonSailors, Sailors & Associates

$5,960,000-WJBD-AM & FM SalemIL, WCMY-AM & WRKX-FM Ottawa ILand KLPW-AM & FM Union MO fromVirginia Broadcasting Corp. (Richard E. &

west LP (Aaron P. Shainis, Bruce Buzil).$100K escrow, balance in cash at closing.Broker: Ed Walters & Associates

$4,600,000-* WEIKO-AM & KSPE-FM Santa Barbara (Santa Barbara -EllwoodCA) from Spectacular Broadcasting Inc.(Richard C. Marsh) to Citicasters Co.(Randy Michaels), a subsidiary of JacorCommunications (O:JCOR). $300K es-crow, balance in cash at closing.Superduopoly with KBKO-AM, KTMS-AM, KXXT-AM, KIST -FM, KTYD-FM &KSBL-FM in the Santa Barbara market andKLYF-AM Thousand Oaks CA. LMA since11/1. Note: No more than eight stationsoverlap at any point. Broker: JorgensonBroadcast Brokerage

$2,200,000-* WLHN-FM & WERK-FM Elwood -Muncie IN from Dream WeaverBroadcasting Inc. (Wade & Dawn Weaver)to Indiana Radio Partners Inc. (MichaelSchwartz, Bill Burns, Monte & Lillian Lang,Aaron Daniels, Abe Moss, Edward Argow).$200K escrow, $1.7M (less escrow) incash at closing, $500K under non -com-pete agreement. Superduopoly withWHBU-AM, WAXT-FM & WWWO-FM (be-low). LMA since 11/1. Note: WERK-AM,which is dark, is not included in this trans-action. Broker: Bergner & Co.

by Jack Messmer

$2,200,000-* KHBG-FM IlealdsburgCA 100% stock sale of Deas Communica-tions Inc. from Batista S. Vieira and DavidHernandez to Mary F. Constant. $600K inpre -payments to buy out other voting andpreferred shareholders, balance in cash atclosing. Superduopoly with KRSH-FMMiddletown CA and KGRP-FM Calistoga CA.

$2,000,000-* WHBU-AM & WAXT-FM Anderson -Alexandria IN from ClearwaterEnterprises Ltd. (Thomas Hayth) to IndianaRadio Partners Inc. (Michael Schwartz, BillBurns, Monte & Lillian Lang, Aaron Daniels,Abe Moss, Edward Argow). $100K escrow,$1.75M (less escrow) in cash at closing,$250K under non -compete agreement.Superduopoly with WLHN-FM, WERK-FM & WWWO-FM (above & below). LMAsince 11/1. Broker: Bergner & Co.

$1,450,000-* WWWO-FM HartfordCity IN from Viking Communications Inc.(Judy Kvale, Louis Lauch Jr.) to IndianaRadio Partners Inc. (Michael Schwartz, BillBurns, Monte & Lillian Lang, Aaron Daniels,Abe Moss, Edward Argow). $60K escrow,$950K (less escrow) in cash at closing,$250K under non -compete agreement.Superduopoly with WHBU-AM, WAXT-FM, WLHN-FM & WERK-FM (above). LMAsince 11/1. Broker: Bernger & Co.

$1 ,499,000-WSYB-AM & WZRT-FMRutland VT and WMNM-FM Port Henry NYtransfer of 50% stock interest in ExcaliburMedia Inc. from Joel M. Hartstone (50%thereafter) to Martin F. Beck (25%) and JamesE. Champlin (25%). Stock sale for cash.

$1,265,000-WKYI-FM Lexington(Stamping Ground KY) from Scott CountyBroadcasting Inc. (James P. Gray) to BlueChip Broadcasting Ltd., a subsidiary ofBlue Chip Broadcast Co. (L. Ross Love Jr.,Lovie L. Ross, J. Kenneth Blackwell, CalvinD. Buford, Thomas Revely III). $63.25Kescrow, balance in cash at closing. Note:This station has a CP to change its towersite to Georgetown KY and increase powerto 6kw. Broker: The Crisler Co.; Dave Gar-land Media Brokerage

$800,000-WBYS-AM & FM Canton IL100% stock sale of Fulton County Broad-casting Co. from Charles E. Wright to SharpBroadcasting Inc., a subsidiary of WPWBroadcasting Inc. (David T. Madison,Wayne W. Whalen). $630K cash for stockat closing, assumption of $170K corporatedebt owed to Wright.

14 12/14/98 RBR

$775,000-WNNO-AM & FM Wiscon-sin Dells WI from Armada BroadcastingInc. (L. Robert Van Genderen) to MagnumCommunications Inc. (Lynn E. & David R.Magnum). $26.25K escrow, additional$498.75K in cash at closing, $250K note.

$750,000-KBZK-FM Morro Bay CAand KBZX-FM Paso Robles CA fromSarape Communications Inc. (IsabelleDrake) to Moon Broadcasting Paso RoblesLLC (Abel & Arelia de Luna and their chil-dren, Abel A., Krystina, Alejandro & Yeseniade Luna). $40K escrow, balance in cash atclosing. Broker: Satterfield & Perry

$575,000-KBVI-AM Denver (BoulderCO) from Unicorn Productions LLC (R.A.Blumenhein) to Working Assets FundingService Inc. (Laura Scher, Drummond Pike,Frances Hall Kieschnick, MichaelKieschnick & others). $50K escrow to trans-fer at closing, $525K note.

$550,000-WIKI-FM Carrollton KY fromWIKI Inc. (George A. Freeman) to Star Me-dia Inc. (Marty Pieratt). $5K downpayment,additional $50K escrow, balance in cash atclosing. LMA since 10/1.

$500,000-* KDAE-AM Corpus Christi(Sinton TX) from Nueces Radio Partners LP(Willis Jay Harpole) to The Worship Center ofKingsville (Rufino Sendejo Jr.). $10Kdownpayment, additional $40K in cash at clos-ing. $450K note. duopoly with KGLF-AM.

$485,000-WZRZ-FM Williamsport PAfrom Big Mountain Broadcasting Inc.(Sabatino Cupelli) to Forever Broadcast-ing LLC (Kerby Confer, Donald Alt, CarolO'Leary, Lynn Deppen). Assumption of$485K note owed to John A. Kennedy Jr.Note: No contour overlap with Forever'sother Williamsport market stations.

$425,000-KXAL-FM Tyler (Pittsburg TX)from Ron & Diane Gray d/b/a Gray Commu-nications to E.W. Communications LLC (JerryWilliams Jr., Quenn Echols). $25K escrow,additional $80K in cash at closing, $320Knote. Broker: Norman Fischer & Assoc.

$400,000-WRRZ-AM Fayetteville(Clinton NC), 50% stock sale of WRRZRadio Company Inc. from Delma P. Dixonto Clarence D. Denton (100% thereafter).$400K cash for stock.

$200,000-WLGO-AM Lexington SCfrom AARC Broadcast Properties Inc.(Leonard DeVille) to PowerNomics TelecomCorp. (Brant Anderson, Tom Pope, JoelFernebok). $10K escrow, additional $90Kin cash at closing, $100K note.

$140,000-WOAP-AM Flint (Owosso MI)from Connoisseur Communications of FlintLP (Jeff Warshaw) to William J. Janego.$7K escrow, balance in cash at closing.12/14/98 RBR

$117,425-KKRS-FM Davenport WAfrom Blue River Broadcasting Co. (51%Ted L. Hite Jr., 49% CSN International) toCSN International (Charles W. Smith, Jef-frey W. Smith, John A. Laudadio, MichaelR. Kestler). $111,425 cash to Hite, addi-tional $6K to Media Services Group. Bro-ker: Media Services Group

$85,000-WCRO-AM Johnstown PAfrom Eagle Broadcasting Group Inc. (JaneAllison Austin) to Greater Johnstown SchoolDistrict (Dr. Sue Ellen Hogan & others).$10K escrow, balance in cash at closing.

$51,000-* WLRT-FM Mount Sterling ILfrom STARadio Corporation (Jack Whitley)to Larry K. Price and Cathy M. Price, jointtenants with right of survivorship. $51K cash.Duopoly with WKXQ-FM Rushville IL.

$20,000-WNBX-AM Springfield VT fromRobert J. Wolf and Shirley P. Wolf, a partner-ship, to Spirit Broadcasting LLC (David F.Reeder). $500 escrow, balance in cash atclosing.

$12,465-KTHU-FM Los Molinos CA51% stock sale of Los Molinos FM Inc. fromBroad Spectrum Communications Inc. (PaulEric Dausman) and Redwood MicroCapFund Inc. (John E. Power) to Phoenix Broad-casting Inc. (Gary Katz, Jerrie Rindahl-Katz, Edward Abramson, Keith Bussman,

Paul Eric Dausman, Elizabeth FolgerDausman, Arthur Calvin Dausman), whichwill own 100% thereafter. $10K to BroadSpectrum for 50% and $2,465 to Redwoodfor 1%. Superduopoly with KCEZ-FMCorning CA and KRQR-FM Orland CA.

N/A-WWFN-FM Lake City SC transfer of60% stock interest in Florence CountyBroadcasting Co. from Robert R. Hilker toWilliam R. Rollins. Transfer as part of like -kind exchange totalling approximately$1.3M on each side involving numerousreal estate and broadcast holdings. Theapplication is inconsistent, in that it statesat one point that Hilker will end up with 0%ownership of this licensee and at anotherpoint 60%, but it appears that the intent isfor Rollins to end up with 100%.

N/A-* KEFX-FM Twin Falls ID from Cal-vary Chapel of Costa Mesa Inc. (Charles W.Smith & others) to Calvary Chapel of TwinFalls Inc. (Michael R. Kestler, Jeffrey W.Smith, Brent Heuther, Charles W. Smith).Donation. Duopoly with KAWZ-FM TwinFalls ID.

For the recordJohn Lauer of Force Communicationswas a co -broker on the sale of WROD-AMDaytona Beach (RBR 11/30, p. 14).

CARIBOU BROADCASTINGhas acquired

KORL-FMHonolulu, Hawaii

from

LOEW BROADCASTINGfor

$1,600,000The undersigned acted as exclusive broker

in this transaction and assisted in the negotiations.

Kalil & Co., Inc.3444 North Country Club Tucson, Arizona 85716 (520) 795-1050

15

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