www.InsideRadio.com Wednesday, August 29, 2007 Page 1 of 6 Newsroom: (800) 290-6301 Does the XM “Plan B” include rate increases for subscribers? There’s speculation that could be the case if its merger with Sirius doesn’t bring the billions in synergistic savings everyone expects. XM president/COO Nate Davis says “We’ve never gotten into and won’t get into speculation about [a] rate increase.” But he says they’ll “look at the cost structure of the business” and find a way to keep programming costs “either flat or marginally down.” Davis says “If the merger doesn’t happen we know things we would do.” During a recent conference call with analysts XM chairman Gary Parsons said they are currently responding to the Justice Department’s request for information, and he expects that process will take until the early Fall. Parsons says “In a relatively short period after that, you then get some indications from the DOJ how that is going.” Meanwhile, XM is not waiting to see what happens with its pending merger with Sirius. It is moving its Nashville studios into Sommet Center and vacating the Country Hall of Fame. How much radio gets in issue money could be determined by a FEC ruling. On First Amendment free speech grounds, the Supreme Court in June shot down a campaign finance rule that limited the so-called “issue ads” funded by partisan groups on behalf of candidates. But how much money actually begins flowing to radio could depend on how the Federal Election Commission decides to implement that ruling. The ads in question are those that don’t specifically call for listeners to vote for one candidate or the other, but require what the Supreme Court calls “interpretation.” The FEC has opened a rulemaking asking for comments on whether companies and unions that buy such ads would be required to disclose how much they are spending. If they are forced to reveal their budgets, it is widely expected some companies will spend less. The FEC is collecting comments through October 1 and will hold a hearing taking testimony on October 17, with a ruling expected sometime before the end of the year. Political analysts tell Inside Radio that although the campaign cycle has moved up considerably, most of this type of spending won’t begin until both parties select their nominee next Summer. Clear Channel sells to a familiar buyer as it leaves another market. Kenneth Dennis-run Bicoastal Media bought 14 stations in Oregon — including five in the Medford area and nine in the Albany area — for $37,170,000 just three months ago. Now Bicoastal goes back to the Clear Channel well to pull up a duopoly in Central Washington State. It buys country KMNT (104.3) and talk KELA (1470) in the Centralia, WA market. Clear Channel still owns “Q-Country 102.9” KNBQ there. The broker is Kalil. Just a handful of Clear Channel stations are left to be sold in markets including the Florida Keys; Defiance and Ashland-Mansfield, OH; and Grand Forks and Dickinson, ND. Sex, money and religion — the nexus that divided one broadcaster comes to an end. Three subjects most people don’t discuss with their clergy are all revealed in the settlement. After years of alleged misappropriation of funds and sexual improprieties involving a former Dallas Cowboy cheerleader, there is a settlement to the www.InsideRadio.com NEWS Wednesday, August 29, 2007 Page 2 of 6 dueling federal lawsuits between Chuck Smith and Mike Kestler. Now the fate of Calvary Satellite Network appears settled. Here’s the background. Smith quit Calvary in 2003 (and stopped funneling money to it) over differences about how fast they should grow. Smith’s son then took control over Calvary’s 49 full-power stations, which led to Kestler grabbing control of its 400-station translator network. The settlement splits the assets between the two men. Calvary keeps most of the full-power stations, which brokers say are worth more than $50 million. Kestler gets 18 full-power stations plus three translators and seven construction permits. In exchange he pays Smith $200,000 and agrees to stop using the Calvary Chapel name. Both sides agreed to drop the myriad of lawsuits that have been traded over the past four years. Inside Radio first reported a settlement was in the works last March. It was Smith’s Costa Mesa, CA-based fundamentalist Christian church that put up the $13 million in seed money that got the Calvary Satellite Network going in 1996. But Smith is now 79, and wants to close what has been an admittedly ugly chapter in the church’s history. Remembering Katrina — The rebuilding efforts of a standalone operator. While the big broadcasting groups have a lot of resources to tap, smaller stations are less fortunate. Two years after the storm, WIST, New Orleans (690) continues to operate from just one of its original four towers. The GHB Broadcasting-owned station went off the air when Katrina hit and wasn’t able to sign back on until December 1, 2005 with less power. GM Dan Frazier tells Inside Radio, “We don’t have the big corporate backing that other stations do.” He adds, “As a small company we’re going through things that [average] citizens are going through.” The station has managed to complete some rebuilding, and more changes are in the works. A new transmitter building with reinforced concrete and steel sits 20 feet off the grounds. Also coming is a new studio in an area that’s less likely to flood. Frazier says, “We’re rebuilding the studio with two things in mind — Safety, in case something ever happens again, and emergency information.” When it comes to business, Frazier says ad revenue is higher than it was before the hurricane thanks to local advertisers. Frazier says, “We’ve got about 25-30 business that love what we do for them.” News on WIST has also become even more New Orleans-driven. With nine hours of local talk a day and an all native New Orleans staff, WIST chatter often revolves around rebuilding efforts, as well as corruption and crime. Frazier says his team remains hopeful, adding, “We only have one chance to fix it and fix it right. If we don’t get it right this time then the future is bleak.” Bonneville’s experiment with the Washington Post comes to an early close. After losing nearly $3 million over the past 17 months, and with no turnaround in sight for either revenue or ratings, the two companies have agreed to pull the plug on “Washington Post Radio.” The three-station simulcast offered long-form news coverage which is closer to NPR than all-news sister WTOP. Bonneville SVP Joel Oxley says although it attracted advertisers, “We just did not garner the Arbitron ratings we had hoped for.” The trimulcast has averaged less than a one share since signing-on in March 2006. When they launched the “Tony Kornheiser Show” ratings and revenue went up. Oxley says “We realized we needed to take the station in the direction of personality-driven talk with more opinion and less hard news.” The new format — which debuts September 20 — dubbed “Talk Radio 3WT” will feature David Burd’s existing morning show and Kornheiser’s program, plus syndicated content from Neal Boortz, Bill O’Reilly, Glenn Beck, and Stephanie Miller. But rather than to get into the talk radio business, the Washington Post wanted out. Since Bonneville was paying the paper a licensing fee for use of its name, as well as its reporters for appearing on the station, it gladly agreed to end the three-year alliance early. www.InsideRadio.com NEWS Wednesday, Augst 29, 2007 Page 3 of 6 Citadel sets an Internet strategy into motion — and John Rosso is its point man. Rosso is fresh off of re-launching ABC Radio Network websites and consolidating them into a national advertising platform with standard ad units, technology and accountability. Now he has been named SVP of the newly-formed Citadel Interactive, where he will focus on marketing the synergies between Citadel’s 300 station websites and its digital extensions. Cyclist groups try — and fail — to punish a station that joked about them. A rash of Clear Channel air personalities all making what were essentially the same quips about cyclists caused some headaches for the company in several markets between 2003 and 2005. Some employees were suspended and Clear Channel agreed to run PSAs after meeting with cycling groups. But complaints filed at the FCC don’t go away so easily. They were waiting for CHR “G-105” WDCG, Raleigh when it filed its license renewal. The complaints were based on comments made from the hosts and callers during the “Bob and Madison Show” nearly four years ago, which said plenty of nasty things about cyclists and suggested motorists run them off the road or throw bottles at them. Clear Channel says it issued an apology, suspended the morning show and began promoting bicycle safety. But the FCC says it was bigger legal issues, not the apology, that will allow WDCG to keep its license. The Commission says the on-air bits didn’t present a “clear and present danger” to bikers. The FCC also notes its role in overseeing program content is “very limited” and renews the station’s license. Chicago man says Spanish Broadcasting System owes him a car. Ernesto Hurtado says he won an “American Idol” type singing contest two years ago on SBS’ “La Ley” WLEY-FM. His prize included a contract with a major record label and a new car. But Hurtado claims he got neither. Making matters worse, Hurtado says the contest took so much time that he got fired from his restaurant job. Now he’s filed suit against WLEY. The Chicago SunTimes says there were signs of trouble right way. It says minutes after Hurtado was declared the winner a WLEY employee took him into a back room to explain there would be no car but instead offered him gift certificates for clothes. WLEY is also being sued by the second and third place winners, who say they never got their promised prizes either. The trio decided to hire a lawyer after reading about another WLEY listener who filed suit against the station after it refused to give her a car she’d won in a separate contest when she couldn’t provide proof of citizenship. People Moves, News & Notes – David Devonshire, a former Motorola CFO, joins the Arbitron board of directors. Arbitron says his technology background will be a plus for the board. Nick Federoff’s weekend gardening show gets picked-up for syndication by URT Productions based at flagship KRLA, Los Angeles. Inside Radio’s Deal Machine — Central Colorado — Rolland Johnson’s Three Eagles Communications grows his cluster along the Continental Divide with a deal to buy KWUZ, Poncha Springs, CO from William Doleman for $300,000. KWUZ is a construction permit for a Class A FM at 97.5. Three Eagles’ two other stations in the area are “Eagle Country 104” KBVC and hot AC “The Peak” KVRH-FM (92.3). Rocky Mount, NC — Richard Petway’s Daybreak Broadcasting buys Black Gospel WYAL, Scotland Neck, NC (1280) from Georgette Hall-Powell’s Sky City Communications for $225,000. WYAL is a 5,000-watt daytimer. www.InsideRadio.com HD RADIO NEWS Wednesday, August 29, 2007 Page 4 of 6 Content on this sponsored page is provided by iBiquity. Christian music is edgy in Seattle. Yes…Christian music can be edgy! Spirit 105.3 in Seattle proves it on its HD2 channel, Spirit EDGE 105.3-2, which features songs from artists like Relient K, Switchfoot, Kutless and Newsboys. Spirit Edge is an extreme rock station all about hard-hitting lyrics and music. It’s encouragement with an EDGE, and it hits home with young men. Picture the loud, plugged in, hard rock music of today without obscenity and anger. Spirit Edge is off the hook. To launch, the station’s staff dove in head first with all the necessary components of a growing channel: a new, distinctive logo, a new, dedicated website, and consistent promotional appearances. Spirit Edge had its own booth at Creation NW, a huge Christian rock concert at Gorge Amphitheater, where the staff did a drawing for JVC HD Radio receivers and promoted HD Radio™ broadcasting. They even followed up with a text campaign to those who signed up. Within two weeks, they were back on the road at Freedom Fest where they proved to be a huge hit. Spirit 105.3 and Spirit Edge 105-3-HD2 recognize the important differences in their audiences, but also how they can cross promote. The music may be edgy, but the plan is solid as a rock. Listen to Spirit Edge at www.spirit1053edge.com. Beatlemania returns to Dallas — thanks to HD Radio. CBS Radio’s “K-Love” KLUV is bringing Beatlemania back with its HD2 Multicast channel with the “Fab Format!” It features every song The Beatles recorded on an official album, hits from their solo careers, and new releases from Paul and Ringo. Listeners can hear out-takes and sound-bytes from The Beatles, live and alternate versions of songs plus press conference material. KLUV’s Jay Cresswell says, “There are just so many opportunities on HD2 to do so many things that we couldn’t do otherwise: syndicated specials on The Beatles and as solo artists abound — we’ve interviewed everyone involved with the ‘Love’ project, interviewed original drummer Pete Best when he was in town, done giveaways with the ‘Love’ CD, Paul McCartney’s new CD, the ‘Instant Karma’ CD, the Traveling Wilbury’s new box set, and Ringo’s new ‘Photograph’ CD. We broadcast Paul McCartney’s new CD in its entirety a week before its public release. We do Beatles A-to-Z weekends on holiday weekends; Instant Album Sides every day at 9am, Story Behind the Song, This Date in Beatles History and so much more.” KLUV wanted to choose an HD2 format that would be popular and complement its Classic Hits HD1 station. Cresswell says “We promote the Fab Format on KLUV five to six times a day. If you love the Beatles, then you’ll really love the Fab Format. We cross plug it during our Sunday morning ‘Beatle Breakfast’ show. We made some Fab Format t-shirts and have print ready should we find the right place to use it.” KLUV began working on the Fab Format in February 2006 and spent eight months re-recording the entire Beatles catalog at a higher sample rate using the best quality copies the staff could find. It finally hit the airwaves on October 5, 2006. Cresswell also believes that “it’s time to let the public know about the extra choices they have with HD Radio. Programming and product is what sells technology.” For more information, visit www.kluv.com. Multicasting Continues to Grow with Nearly 700 New Channels Available. There are now nearly 700 new radio channels broadcasting on FM radio using HD Radio™ Multicasting technology. Stations across the country are developing new radio channels that target different demographics and lifestyles with Multicasting. Some of the newest include Clear Channel’s “The Block” on KBOS and “Mother Trucker” on KHGE in the Fresno market. Plus, new channels are hitting the airwaves everyday across the country. Get a complete list of Multicast stations and find out what’s in your area by visiting www.hdradio.com. Be sure to visit iBiquity’s suite for a special look at new HD Radio products at the NAB Radio Show in Charlotte! www.InsideRadio.com Wednesday, August 29, 2007 Summer ARBITRENDS PhI & STOCKS San Antonio, TX (#29) Estimated 2007 radio revenue - $114.4M (Kagan) The top two are the same, and both rise. Station SprM/J/JFormat Owner/LMA KBBT 7.0 7.3 rhy. CHR Univision/BMP KISS-F 6.2 6.7 rock Cox Radio WOAI 5.0 5.6 news/talk Clear Channel KAJA 5.9 5.4 country Clear Channel KCYY 4.7 4.6 country Cox Radio KONO-F* 5.0 4.5 oldies Cox Radio KXTN-F 4.2 3.9 tejano Univision/BMP KXXM 3.6 3.8 CHR Clear Channel KZEP-F 3.7 3.7 classic rock Lotus KPWT 2.9 3.6 urban Cox Radio KJXK 3.1 3.5 adult hits Border Media KROM 3.6 3.4 reg’l Mex. Univision/BMP KTFM+ 3.3 3.3 urban oldies Border Media KCOR-F 3.5 3.1 Span. old Univision/BMP KQXT-F 3.6 3.0 AC Clear Channel KTSA 2.8 2.5 news/talk Border Media KSMG 2.1 2.1 hot AC Cox Radio KRIO-F 1.8 1.7 Span. CHR Border Media KSAH 1.6 1.7 reg’l Mex. Border Media KCOR 1.2 1.5 Span. talk Univision/BMP KAHL 1.1 1.2 standards Barger KKYX 1.1 1.1 classic cntry. Cox Radio KLEY-F 1.0 1.0 reg’l Mex. Border Media *Simulcast: KONO-AM/FM. +Recent changes from the M-Street database: KTFM flips to rhy. AC in August. Charlotte, NC (#33) Estimated 2007 radio revenue - $128.4M (Kagan) Just a half share separates #5 and #10. Station SprM/J/JFormat WSOC-F 6.3 6.5 country WPEG 6.0 6.0 urban WBAV-F 6.5 5.6 urban AC WBT* 5.2 5.0 news/talk WKKT 4.8 4.7 country WNKS 4.6 4.6 CHR WLYT 4.3 4.3 soft AC WKQC 4.2 4.3 AC WRFX-F 4.1 4.3 classic rock WIBT 4.2 4.2 rhy. CHR WEND 3.2 3.7 modern rock WPZS 3.8 3.4 black gospel WLNK 3.2 3.2 talk/hot AC WXRC 2.6 2.9 classic hits WQNC 2.1 2.3 urban AC WNMX-F 2.0 2.1 standards WNOW-F+0.8 1.2 reg’l Mex. WFNZ 1.0 1.1 sports Owner/LMA CBS Radio CBS Radio CBS Radio Lincoln Fin. Clear Channel CBS Radio Clear Channel CBS Radio Clear Channel Clear Channel Clear Channel Radio One Lincoln Fin. Pacific Radio One GHB Davidson CBS Radio Milwaukee, WI (#36) Charlotte (continued) WTHZ 0.9 1.0 classic hits Davidson Cty. WGSP 0.8 1.0 reg’l Mex. Norsan WNOW+ 0.8 0.6 tropical Davidson *Simulcasts: WBT-AM/FM. +Recent changes from the M-Street database: WNOW-F flipped from country as WAGI in April. WNOW flipped from reg. Mexican in May. Estimated 2007 radio revenue - $100.9M (Kagan) CHR “Kiss” cathes urban “V-107.3” at #3. San Jose, CA (#35) Estimated 2007 radio revenue - $55.1M (Kagan) San Francisco’s KGO solidifies its lead. Station SprM/J/JFormat Owner/LMA KGO 6.6 7.3 news/talk Citadel KYLD 3.8 4.1 rhy. CHR Clear Channel KDFC-F 3.7 4.0 classical Entercom KSOL* 5.0 3.9 reg’l Mex. Univision/BMP KBAY 4.2 3.4 AC NextMedia KUFX 3.6 3.4 classic rock Clear Channel KOIT-F 3.7 3.3 AC Entercom KRTY 3.7 3.3 country Empire Bcstg. KEZR 3.6 3.3 hot AC NextMedia KSFO 3.0 3.3 talk Citadel KSJO 2.8 3.2 Span. adlt/hits Clear Channel KCBS 3.4 3.1 news CBS Radio KBRG 2.1 3.0 Span. adlt/hits Univision/BMP KNBR 3.1 2.8 sports Cumulus KFOG* 2.8 2.5 adult altern. Cumulus KMEL 2.2 2.1 urban Clear Channel KVVF* 1.9 2.0 hurban Univision/BMP KIOI 1.7 2.0 hot AC Clear Channel KCNL 1.9 1.9 modern rock Clear Channel KKSF 1.9 1.9 smooth jazz Clear Channel KISQ 1.7 1.7 urban oldies Clear Channel KRZZ 1.7 1.7 reg’l Mex. SBS *Simulcasts: KSOL/KSQL. KFOG/KFFG. KVVF/ KVVZ-F. Page 4 of 6 Station SprM/J/JFormat Owner/LMA WTMJ 9.4 9.5 news/talk Journal WMIL-F 8.1 8.5 country Clear Channel WKKV-F 6.6 6.2 urban Clear Channel WXSS 5.7 6.2 CHR Entercom WRIT-F 5.7 5.7 oldies Clear Channel WHQG 5.2 4.7 rock Saga WQBW 4.0 4.3 classic rock Clear Channel WISN 4.5 4.2 talk Clear Channel WKLH 4.1 4.2 classic rock Saga WJMR-F 4.0 4.1 urban AC Saga WMYX-F 4.2 3.8 modern AC Entercom WDDW 2.8 3.4 reg’l Mex. Bustos Media WKTI-F 3.7 3.2 hot AC Journal WLUM-F 3.0 3.0 modern rock Mil. Alliance WLDB 3.0 2.8 AC Mil. Alliance WJZX 2.4 2.2 smooth jazz Saga WOKY 2.2 2.2 oldies Clear Channel WMCS 1.3 1.1 talk/sports Mil. Alliance WTKM-F 1.0 1.1 ethnic/cl cntry Kettle WNOV 0.9 1.0 urban Courier WSSP 0.7 0.9 sports Entercom WGN 0.8 0.8 talk Tribune WEZY 0.7 0.8 soft AC Bliss Comms. +Recent changes from the M-Street database: WJZX flipped from classical in April WLDB flipped from smooth jazz as WJZI in June 12+ AQH Shares, Mon-Sun, 6 am to midnight. May not be quoted or reproduced without prior written permission from Arbitron. Copyright 2007. Formats of stations listed reflect the analysis and groupings of M Street Corp. and may differ from the station’s opinions or interpretations. INSIDE RADIO STOCKS Dow close from Tuesday, 8/28/07: 13,041.85 down 280.28 Nasdaq 2500.64 down 60.61 S&P 500 1432.36 down 34.43 Arbitron Beasley CBS Citadel Clear Chan Cox Radio Cumulus Emmis Close Change 48.86 down 1.30 7.16 down 0.03 30.11 down 1.14 4.13 down 0.08 35.84 down 0.47 13.16 down 0.44 10.29 down 0.04 6.09 down 0.23 Entercom Entravision Fisher Global Traffic Interep Journal Lincoln Fin. Radio One Close Change 20.44 down 0.41 8.82 down 0.36 47.69 down 0.55 6.95 up 0.11 0.17 down 0.07 10.30 down 0.13 59.23 down 3.02 3.61 down 0.11 Close Change Regent 2.70 down 0.10 Saga 7.03 down 0.39 Salem 10.39 down 0.20 SBS 2.81 down 0.05 Sirius 2.79 unchgd SWMX 0.08 unchgd Westwood One 2.83 down 0.09 XM Satellite 11.60 up 0.11 www.InsideRadio.com EMPLOYMENT ACCOUNT EXECUTIVES - PHILLY GREAT CAREERS IN RADIO SALES WITH B-101 FOR SENIOR ACCOUNT EXECUTIVES. Do you have a passion for sales and have 3 - 5 years radio experience? The Bee has a great career waiting for you. Flourish at the most successful radio station in Philadelphia with all the opportunities and resources you could ask for. Mail resume to: G. Dreon, B-101, 10 Presidential Blvd. Bala Cynwyd, PA 19004; fax to: 610-664-3500 or e-mail: [email protected]. EOE GENERAL MANAGER - CAPE GIRARDEAU, MO Max Media is looking for its next great General Manager. If you are ready to succeed and are passionate about radio, then we are ready for you! The right person will have impressive leadership skills. This position requires you to work in over achieving market revenue share goals, increase billing, and building a phenomenal sales team. Max Media is an equal opportunity employer. If you would like to join our increasingly fast growing company please send resume to: [email protected] or send fax to: Amanda Wentz at 757-671-1212. NO PHONE CALLS ACCEPTED! GENERAL SALES MANAGER - RICHMOND, VA Main Line Broadcasting, a privately held growth oriented group operator, seeks an experienced GSM for our top-rated adult hits station 98.9 Liberty WWLB – FM. Candidates should have an excellent track record of maximizing agency, direct and NTR revenues. This position offers unlimited earnings and career growth potential. Rush resume/letter to: [email protected]. EOE GENERAL SALES MANAGER - INDIANAPOLIS Clear Channel is looking for a sales leader at our heritage station WFBQ. A rare opportunity to lead a great staff at the flagship station of The Bob & Tom Show. Have you had success in leading a team of professionals with a proven ability to recruit and train sellers? Our new manager must have the ability to develop a sales plan and strategy to achieve budgets, out-perform the market, have the technical ability to manage inventory utilizing the best yield management system in the industry and understand the unique advantages and opportunities in selling one of the highest rated morning shows in America. EOE. If you’re qualified for one of the best sales management jobs in Clear Channel, please send your resume & cover letter to: [email protected] Wednesday, August 29, 2007 Page 6 of 6 Program Director WSNY - Columbus, OH Saga’s Legendary WSNY, Columbus is looking for a great programmer that has a balance of left and right brain – science and art. Is that you? Experienced AC Programmer needed to lead one of America’s great AC stations. Apply to: Steven Goldstein, Executive Vice President, Saga Communications. E-mail package to: [email protected] Equal Opportunity Employer STATION MANAGER Radio Disney has an immediate opening for Station Manager in Cleveland, OH. Ideal candidate will demonstrate a proven ability to maximize resources, possess exceptional leadership and communication skills, have a solid sales background, and the ability to creatively achieve and surpass all financial expectations. Come represent the #1 brand in family entertainment on local radio. Sales management experience preferred. EOE. Please submit your resume to: [email protected] DOS - SALEM MEDIA - NYC Salem Media of New York is looking for a DOS with a successful track record. Work out of our New Jersey Office. We offer a competitive salary, incentives, great benefits and positive work environment. EOE. Email resume’s to: [email protected]. INSIDE RADIO, Copyright 2007. On the web: www.InsideRadio.com. All rights reserved. No part of this publication may be copied, reproduced, refaxed, or retransmitted in any form. Address: P.O. Box 442, Littleton, NH 03561. To advertise, call 800-640-8852. Subscribe to INSIDE RADIO for 12 months with online access: $479; Online version: $399. Monthly subscription $39.95 billed to your credit card. Call (800) 248-4242 to subscribe. INSIDE RADIO Editor Frank Saxe 800-290-6301. General Manager Gene McKay, 800-640-8852.
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