NOVEMBER 19,1993 Booth, Broadcast Alchemy INSIDE: Mark $160 Million Merger PROMISING RADIO Wood to lead 11- station, seven - market group CLIENTS RESULTS Booth American Company Broadcast Al- and Broadcast Alchemy have chemy President Rather than paying for ads announced plans to merge their Frank Wood upfront, what if clients paid radio major market stations and create will serve as stations according to guaranteed President /CEO, Additional financial details: managing the results, such as documented unit see Transactions, Page 6. merged group sales via a toll -free number? Katz from his current a new company. The as- yet -un- offices in Cin- Sr. VP /Research Dir. Gerry named group, with its 11 stations cinnati. William in seven markets, is valued at Boehme addresses this question Lane Ill (who more than $160 million. Wood of confidence. heads Broadcast Alchemy's principal investor, Page 14 Lane Industries) has been nam- Arbitron To Limit 30% Sample Gain ed Chairman of the Board, while Booth American President John SUMMER SCOREBOARD Booth II becomes Vice Chair- To Just 32 Markets In Winter '94 man of the Board and Chairman While CHRs scored a split of the Executive Committee. decision - 50% up, 50% down Boston, Houston, four other Top 20 markets out of picture for now "We've been looking for years in the Summer '93 sweep, to make a merger with a strategic - The radio industry's relative cause of the sharp disparity in I thought it would be done in six partner to create a bigger com- AORs showed their strength lies lack of enthusiasm over an approval rates. There weeks. I've spent that time call- Ar- subscriber pany," Booth told R&R. He said bitron proposal to boost sample was 100% support in some mar- ing and campaigning to get these in the 18 -34 male demo. that after talking with a number sizes by 70% has forced the kets, but in at least 15 markets, [contract addenda] in, and I'm Pages 25, of potential partners, the deal 27 ratings company to implement there was no subscriber approval. disappointed the support wasn't with Broadcast Alchemy "was the plan in just one -third of the greater." `Surprised, Disappointed' the best combination of compar- possible 96 continuously meas- Here's what will happen begin- ably sized broadcasting corn - ured markets for the Winter '94 'At one meeting, we almost INSIDE HOUSTON'S ning next year: panies and a strong balance survey period. decided not to do this COUNTRY DUOPOLY market -by- market, mainly All four -book-per -year mar- sheet." The decision to raise sample because it's more expensive :' kets, whether or not they sup- `Best Market leader Country KILT-AM & sizes in only some markets in- Combination' - said Arbitron VP /Radio Station ported the increase proposal, will stead of making an all-or- nothing Wood also noted the strong fi- FM /Houston just closed on its Sales & Marketing Jay Guyther. experience a 15% sample in- determination was made be- nancial position of both com- purchase of crosstown format - "But it didn't seem right to say crease as a result of Arbitron's panies as a key factor in making to the markets with high support, plan to shift non -metro diaries rival KIKK-AM & FM, the No. 2 the deal, saying, "]The new You can't have it because the rest into the metro. company] be very underlev- outlet. OM Rick Candea of the country doesn't want it,' so 32 continuous markets, will Markets Getting eraged to begin with" discusses the stations' we decided to go ahead and do ranging in size from New York Sample Increase it market by market" to York, PA, will see an addi- Wood said the new group separate identities. tional 15% increase in the Winter would be shopping for duopoly But Guyther nevertheless ex- Page 36 '94 survey (for a total 30% gain), properties in its non -duopoly These are the continu- pressed frustration at the lack of and 20% increases in 1995 and markets and will concentrate on ously measured mar- enthusiasm for an idea that was '96. markets with $50 million or kets that will experi- almost universally lauded when Subscribers in the remaining more in annúal revenues for po- IMPROVING YOUR ence 30% increases in sam- it was unveiled last August. "I'm Page ON -AIR TALENTS ple size for Arbitron's Winter surprised and disappointed . SAMPLE INCREASE/See Page 21 MERGER/See 21 While paying million -dollar '94 survey: salaries is one way to staff your Rank Market station with top air personalities, 1 New York finding and developing talent is 2 Los Angeles Karmazin Policy Efforts Draw Skepticism 3 Chicago the more practical alternative. 4 San Francisco Beltway observers see little chance of ownership limit lift Dan O'Day offers eight grooming 5 Philadelphia 6 Detroit Infinity Broadcasting Presi- limits are outmoded in an era tips. local orientation, as fundament- Page 24 7 Washington dent Mel Karmazin's recently when telecommunications giants ally different from other media. 8 Dallas unveiled effort to win further re- like cable television operator XI A key House staffer echoed 11 Miami laxation of radio ownership lim- and the Bell Atlantic telephone that opinion, adding that several 12 Atlanta its is being received with company are being allowed to members of Congress - in- IN THE NEWS... 14 Nassau - skepticism by Washington's corn - merge. cluding powerful House Energy Suffolk Garett Michaels new PD munications and Commerce 17 Minneapolis policy commun- « Committee at WPLY/Philadelphia 18 St. Louis ::.,. .. s :.; ity, which sees :; Chairman John 19 Baltimore KOBR /Sacramento goes NAC; little political Dingell (D -MI) 22 Phoenix support for such If Mel Karmazin wants to know Ricky Tatum now Pres. /GM. 24 Denver - hold deep- action. May White new VP/Sales, 25 Portlands OR who cares whether one person seated opinions Karmazin has about the need 26 Milwaukee I Lawrence Tanter VP /PD 27 Kansas City retained the law owns 50 radio stations, would for radio owner- Mick Anselmo becomes 30 San Jose firm of Patton, tell him John Dingell ship limits. Boggs & Blow cares. Shamrock Corp. VP 37 Indianapolis Those views, 39 Charlotte to "pursue a leg- -House aide the staffer said, Page 3 57 Las Vegas islative agenda" are unlikely to 66 Grand Rapids that includes re- be influenced by Gary Richards VP /Pop Promo, 67 Fresno laxing the own- developments in Mark Neuter VP /Alternative 69 Syracuse ership rules, which currently al- Media Access Project Exec. other telecommunications in- 70 McAllen - low a single licensee to own 18 Promo for American label Director Andrew Schwartzman dustries. and 18 FM stations. Brownsville AM Next believes Karmazin's argument is 71 Knoxville year, that "If Mel Karmazin wants to Mike Summers becomes limit rises to 20/20. flawed because key members of 72 Toledo know who cares whether one VP /Ops. & Prog. at KXRK/SLC Flawed Argument? Congress have expressed reser- 89 Bakersfield person owns 50 radio stations, I A central piece of Karmazin's vations about the ICI -Bell Atlan- Jim Urie takes Arista 95 Chattanooga would tell him John Dingell argument for easing the rules is tic deal. What's more, he added, Sr VP /Sales position 101 York his contention that the ownership lawmakers view radio, with its OWNERSIHIP/See Page 21 Page 10 NEWSSTAND PRICE S6.00 Top 10 Talk Radio Topics Page 33 www.americanradiohistory.com OLDIES RESEARCH ON LINE JAN 1 1994 Contact your PREMIERE RADIO NETWORKS representative 818 377 -5300 NOW AVAILABLE ON A BARTER BASIS. PRv1i=R= RESEARCHIII!h RADIO NETWORKS www.americanradiohistory.com Michaels Moves Three For `Love' NOVEMBER 19, 1993 To WPLY PD Post PAGE THREE ISSUE NUMBER 1019 WLAN/Lan- caster PD Gar - ett Michaels F E A T U R E S has resigned to become PD at Greater Media 4 Radio Business Radio Co. Interep to expand new business effort Adult CHR 10 WPLY (Y100)/ Newsbreakers Philadelphia. 16 Street Talk Michaels re- Michaels places Eric Yakima yucks attract NAACP flak Johnson, who stays with the sta- 20 Timeline tion as Promotion Director. Pictured onstage at Elizabeth, NJ's Ritz Theater filming the video WPLY owner Dan Lerner for WI For Love" the single from "The Three Musketeers" sound- 24 Air Personalities told R&R, `Adding Garett corn - track, are (l -r) Rod Stewart, Bryan Adams - who co-wrote the Eight tips for grooming top talents pletes the team we've been build- song with Michael Kamen and Robert John "Mutt" Lange - and Sting. ing for the last six months at YI00. We now have strong peo- ple in every position." Michaels told R &R, "I'm 14 Sales & Marketing thrilled to be working again with M. PRODUCT Promising radio clients results M NO [WPLY consultant] Scott Shan- Simmons Says: Country's No. 1 MM//11 non and the incredibly talented staff at YI00. This will be a great N/T, AOR also post large gains in media survey 15 Media opportunity to help Dan Lerner WRKS /New Yorker! and Station Manager Lynn According to the new 1993 mat's current listenership of 77.3 Bruder to bring the station to the Simmons Market Research million people represents an in- next level of success" Bureau Media Survey, Country crease of 10.4 million listeners M U S I C Prior to joining WLAN, Mi- radio has more listeners than any over last year. chaels was Asst. PD /MD /nights other format. Almost 42% of the AC placed second, rising from at WZPL/Indianapolis; PD at U.S. adult (18 +) population lis- 22 Compact Data, 30.9% last year to 31.5% in 1993.