ISSUE TWO MUSIC EDITION AUGUST 28, 2006 Katz: Country Rules Radio Nearly Two-To-One Country remained flat from Spring 2005 to Spring WELCOME – AND TAKE A DAY OFF 2006 with an average market share of 15.3.according to Welcome to the second edition of Country Katz Media Group’s study of the Spring 2006 Arbitron Aircheck -- Music Edition. Please be sure to pass ratings. KMG noted Hispanic was next with an 8.6. The the word with your staff, friends and associates report said, “While Country remains stable since last that they can subscribe for free by going to www. year, the format has seen some increases over prior years. countryaircheck.com. Also, watch for our daily Although the format may never regain the high shares news service, which will begin soon. enjoyed in the early ‘90s, the recent increases have shown Please send news and pictures to news@ the resilience of the format. Country remains number one countryaircheck.com. Lon Helton can be reached overall in the average market, maintaining nearly a 2:1 at [email protected] while Chuck Aly can advantage over the next highest format.” be contacted at [email protected]. Reporting Note: The Country Aircheck/ The study also noted that “all of the formats that Nashville offices will be closed next Monday are either stable or have shown recent increases are in observance of the Labor Day holiday. The Adult-skewing formats. The only exception is the Urban reporting deadlines for all Country Aircheck/ Contemporary format, which shows an increase this Spring Mediabase 24/7 reporters will be extended to even though it tends to skew younger. On the other hand, Tuesday Sept. 5 at 3pm ET/Noon PT. nearly all of the formats with a youth or young adult age skew show declines.” Lisa Chiljean, the study’s The Katz Media Group analyzed over 4,000 radio author, went on to point out, “There could be a number of stations and nearly fifty formats in 296 Arbitron markets factors at work causing these shifts, including changing to produce the figures for this study. Thirty-five format lifestyles among young adults, the availability of a wider classifications are examined in detail. Among other variety of media options, and increased multi-tasking or Country -specific findings: simultaneous usage of media.” • The female-male skew of Country’s radio audience is ©2006 Country Aircheck™ — All rights reserved. To subscribe visit www.countryaircheck.com August 28, 2006 Country Aircheck Music Edition Page 3 now 55%-45%. DatE CHECK • The Country listener’s median age crept up to 44 in Spring 2006 after six years at 43. August 30 - DJ & Radio Hall nominations due. • Time Spent Listening fell in all ten age/sex cells from www.crb.org Spring 2005: Men and Women 25-54, 25-34, 35-44, 45-54 September 1 - CRB Artist Humanitarian and 55-64. nominations due. www.crb.org • Country FM ranks 13th in overall TSL at 7:43. You can find the complete report at www.katz-media.com. September 21 - Fourth Annual Source Foundation Awards. www.sourcenashville.com Who’s On First In L.A.? September 25 - NSAI World’s Largest #1 Party. This industry’s favorite parlor game since Emmis www.nashvillesongwriters.com dropped Country from KZLA/Los Angeles 12 days ago October 22 - 37th Annual NSAI/Nashville has been “Who’s going to go Country?” The bigger Songwriters Foundation Awards. question is if an operator will flip one of its stations to www.nashvillesongwriters.com Country. Or, is the format doomed to lose another major October 23 - 44th Annual ASCAP Country market -- a la New York and San Francisco -- where no Awards. www.ascap.com operator has stepped up to fill that formatic void? The bad news is an examination of L.A’s 2005 November 4 - 54th Annual BMI Country Awards. revenues makes it a long shot for a single, big-stick station www.bmi.com to adopt Country. The format might have to settle for a November 6 - 40th Annual CMA Awards. Class A signal or a cobbled together network of signals to www.cmaawards.com cover the Southland. Most of the conjecture about who might pick up the surely doesn’t need that many. KOST is a mainstream Country mantel in the nation’s second-largest market AC that posted a 3.6 (7th, 12+) in the Spring 2006 and only $1 billion-plus radio market centers around Arbitron. It’s a cash cow and considered by insiders to be Clear Channel, which owns nine stations in L.A. -- six of untouchable. which are FMs. An L.A. component to its already potent KBIG is a Hot AC that has posted 12+ figures of 1.9, arsenal of more than 160 Country outlets would seem to 2.3, 2.3, 2.1 and 1.9 over the last five books. It ranked 19th make sense, plus CC certainly has the expertise to make 12+ this spring. CC also owns Hot AC KYSR, which has Country work. And, CC’s Premiere Radio Networks would seen its last five books 12+ at 1.9, 1.8, 1.8, 1.6 and 1.4. It welcome an L.A. affiliate for its Country programming, was tied for 25th this spring, 12+. including After Midnite with Blair Garner, which had been KYSR’s ratings have made it the gossips’ choice for a on KZLA. flip. But, KZLA parent Emmis Communications’s Radio Speculation has focused on CC’s three AC-oriented President Rick Cummings pointed out in these pages last FMs, with the conventional wisdom being the company week, it’s not about ratings -- it’s about revenue. ©2006 Country Aircheck™ — All rights reserved. To subscribe visit www.countryaircheck.com August 28, 2006 Country Aircheck Music Edition Page 4 So let’s dissect LA’s radio revenues: TUBE CHECK • L.A. Station Revenues: To provide some Tuesday (8/29) - Pat Green, GAC Nights (GAC), perspective, L.A.’s top biller in 2005 was CBS Radio’s Jimmy Kimmel Live (ABC). Alternative KROQ at $67.6 million (all 2005 revenue Wednesday (8/30) – Trace Adkins, CMT Top Ten information is from BIA). Four stations billed between Countdown (CMT); Billy Gillman, GAC Nights (GAC). $50-59 million, three between $40-49 million, nine Friday (9/1) – Kenny Rogers, Foxworthy’s Big Night between $30-39 million and six between $20-29 million. Out (CMT); Toby Keith, Willie Nelson, Lindsey KZLA did $28.6 million in 2005, although you may recall Haun, Broken Bridges: Behind The Scenes (CMT). that last week Cummings said Emmis expected KZLA Monday (9/4) – Hank Williams, Jr., CMT At revenues were “on course for the lower 20s this year.” Summerfest (CMT). The KZLA figures were generated by a five book Tuesday (9/5) - Cowboy Troy, Phil Vassar, Jamie Arbitron 12+ average of 1.8, which made me wonder what O’Neal, Josh Gracin, Diamond Rio, CMA Celebrity stations with similar 12+ shares were billing. The answer Close Up (GAC); Toby Keith, Tonight Show (NBC). to this question may be the most damning evidence of why CMT Video Adds: Alan Jackson “Like Red On A Rose,” it will be difficult for another station to go Country. The Faith Hill “Stealing Kisses,” Jimmy Buffett “Nothin’ But two CC AC stations with ratings similar to KZLA that we A Breeze,” Little Big Town “Good As Gone,” Toby Keith looked at above far exceeded KZLA’s 2005 revenue -- “Crash Here Tonight.” KBIG did $33.1 million and KYSR $35.0 million in 2005. CMT Pure Country Add: Alan Jackson “Like Red On Looking at a couple other stations with 12+ ratings A Rose,” Taylor Swift “Tim McGraw,” Toby Keith “Crash close to KZLA’s, Radio One’s Urban KKBT posed 12+ Here Tonight.” shares of 2.5, 2.4, 1.9 and 1.6 over the last four books GAC Video Adds: Lonestar “Mountains,” Montgomery while billing $38.5 in 2005. CBS Radio’s Talk KLSX went Gentry “Some People Change,” Bob Seger “Wait For Me,” 2.5, 2.2, 1.5 and 1.7 over the last four books and notched a Jason Aldean “Amarillo Sky,” Katrina Elam “Love Is.” Howard Stern aided $51.2 million in 2005. Clear Channel Radio President/CEO John Hogan said Considering these revenue stats, it’s anyone’s guess the company will now have four Sr. VPs managing specific who might take the plunge into Country. One thing’s for groups of markets. Dave Crowl oversees the Central sure: It’s not for the feint of heart if you’re already billing division, Bill Gentry the Eastern, Mark Kopelman the over $30 million. Western and Ed Krampf the Western. Now holding CC’s Sr. VP/Programming titles are Clear Channel Restructuring Continues Marc Chase, Eastern; Michael Martin, Western & Following Clear Channel’s announcement last week Central; Gene Romano, Eastern & Central; and, Alan that Charlie Rahilly, Susan Karis and Tom Schurr Sledge, Western & Central. were all being elevated to Executive VP/Operations, Hogan also noted the company would now also have the company on Friday announced another round of Regional VPs managing specific markets and overseeing restructuring. other areas. The regional VPs are Morgan Bohannon, ©2006 Country Aircheck™ — All rights reserved. To subscribe visit www.countryaircheck.com August 28, 2006 Country Aircheck Music Edition Page 5 Linda Byrd, Michael Crusham, Bruce Demps, Dan FIRST AIRED DiLoreto, Alene Grevey, Michael Grosenick, Jeff Holden, Lee Larsen, Dick Lewis , Matt Martin and Tom This week’s birthdays: McConnell. August 29 - Shawn Camp, Darlene Dixon, James Ten new President & Market Manager posts were also T.