MI

adioBL SIessReport Voice Of The RadioBroadcasting Industry® Volume 17, Issue 48 November 27, 2000

New York City Leaders Know That RADIO NEWS October sales Completqw6-v-t total $74.7M LPFM window #3 has yet to open 2 Tough comparisons The latest round of applicants in the great Bill Kennardpeashooter parade with red-hot year-ago have had to cool their jets-the latest window hasn't opened. gains caught up with The write stuff? Writers, directors, actors may strike 2 the New York radio ABC hopes to hit with Hip -Hop net 2 market in October. NYMRAD says revenues Arbitron gets some post-Ceridian direction 2 for the month were MeasureCast, RBN link for web measurement 2 $74.7M, off 0.3% from the record revenues of Ackerley works at cross purposes with iKnow 3 October 1999 (which had jumped 28.3% STATE OF THE STATES from '98). Local salesactuallyrose 2.4% in October to 5 Radio Studio Management Road trip: Five states weigh in on the issues $61.1M, but national revenues dropped multi -radio studio 11.2% to $13.6M. anagement system.

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Regional format preferences: The sequel 7 NYMRAD VAULTXPRESS- - oVAU LT' NEW YORK MARKET RADIO medium sized thout the pric RADIO OPERATIONS Forthefirst10 Internet Radio Management months of 2000, NYC WebVAULT" - Taking Vox out of the box 8-10 radio revenues were up em 21.5% to $677.7M. Lo- eSTREAM- Studio -owerful on -demand cal was up 20% to nternet au'to an. post production system. MEDIA MARKETS & MONEY $544.3M and national eSTREAM- -On -Air" sound quality over was ahead 28% to processor. CCU on the move in South Carolina 12 $133.4M. NYMRAD's Greenwood, SC doesn't ring a lot of bells, but Greenville, SC does, and when RF Solutions monthly report is pre- CCU moves its latest buy closer to the latter, it will upgrade. pared by the accounting FM Solid State - Hope ND: Michael lets Mikey (Michaels) try it 12 to iokW. firm of Miller, Kaplan, 12 AM Solid State BOC compatible solutio Money flying in Cleveland triple -play Arase & Co.-JM ng from 5ooW to tokW. FM High PowerProven reliable produc ds from 5kW to 35kW,

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November 27, 2000, Volume 17, Issue 48

BPA International membership applied for September 2000 Where's the window? pire in May 2001. Merrill Lynch are retired Ceridian CEO The wannabe broadcasters in issued a warning 11/17 that such Lawrence Perlman (who will ExecutiveEditor Jack Messmer the third FCC filing window for a strike could come just as the serve as Chairman), former Managing Editor Dave Seyler LPFM licenses (American Sa- network upfront season begins. radio and TV group owner Senior Editor Carl Marcucci Associate Editor Elisabeth Derewitz moa, Colorado, Delaware, According to Jack Myers, and executive (and one-time Associate Editor Karla Roberson Hawaii, Idaho, Missouri, New whose The Myers Report tracks head of UPI) Louis Nogales, Production Michael Whalen the TV and movie businesses, Radio & Records Publisher and VP Administration Cathy Carnegie York, Ohio, South Carolina, FCC Research Consultant Mona Wargo South Dakota and Wisconsin) some $700M in residual pay-CEO Erica Farber, Apollo Administrative Assistant April Olson are wondering why the win- ments for TV programs and fea- Partners Ltd. principal and co- Publisher Jim Carnegie dow has yet to open. A public ture films are at stake when you owner Kenneth Gorman, VP/GM, Associate Publisher Ken Lee notice of the dates for the filing add together those covered by General Motors (N:GM) VP and Senior Account Executive John Neff Account Executive June Barnes period was to be released in the Writers Guild of America, head of North American Ad- October, but October came and Directors Guild of America and vertising Philip Guarascio, Screen Actors Guild-a sum that Lucent (N:LU) SVP/CIO Larry Editorial/Advertising Offices went without it. Filing was set gives the unions plenty of reason Kittelberger and Lonetree 6208-B Old Franconia Road to begin in November, how- Alexandria, VA 22310 ever that is looking unlikely. to strike. "The last time such a Capital Partners managing part- PO Box 782 Springfield, VA 22150 An FCC spokesperson said that Hollywood strike occurred ner Richard Post-JM they are not exactly sure why against the TV industry between Main Phone: 703/719-9500 the window is being delayed March and August 1988, it both MeasureCast to mea- Editorial Fax: 703/719-7910 delayed the start of the 1988-'89 SalesFax: 703/719-9509 or what the hold up is, and sure all RBN affiliates SubscriptionPhone: 703/719-7721 they, like the broadcasters, are TV season and deflated upfront MeasureCast, a provider of Subscription Fax: 703/719-7725 advertising sales for that year," awaiting the release. However overnight webcast audience Myers noted.-JM Email Addresses another spokesperson said that measurement and demos, has Publisher [email protected] the FCC is still busy dealing signed Real Broadcast Network Editorial. [email protected] with all of the applications from ABCRN to launch "Blazin (RBN) to offer measurement Sales: KLee@ rbr.com the first two windows. RBR [email protected] Hits" format for its 650 client streaming [email protected] wasassured that it had nothing Part of its recently -launched Ur- stations. RBN is Real Networks' to do with the election crazi- ban Advantage Network, ABC (O:RNWK) webcast hosting ©2000 Radio Business Report, Inc. Material may not ness, instead, the dates for the Radio Networks announced 11/20 division. The "MeasureCast be reproduced without permission. All content may windows were only guidelines. it is adding a new format to its Streaming Audience Measure- not be reproduced, photocopied and/or transmitted RBR observation: Could it without written prior consent.Any violations will be stable next Spring: "Blazin' Hits." ment Service" will be deployed dealth with legally. Printed in USA. instead be the fact that Sen. The mix is set to focus on Hip -Hop on all RBN Network servers. In Rod Grams' (R -MN) bill, to and R&B, 70% and 30% respec- addition, the two companies Radio Business Report is published weekly require third adjacent channel by Radio Business Report, Inc. Publishers of tively, and 90% currents, 10% have agreed to conduct joint protection from LPFM stations, Radio Business Report, MBR - Manager's recurrents. ABCRN says the target marketing programs to pro- Business Report, The Source Guide, is still a rider on the undecided demo is Urban listeners, 18-34. mote and grow the streaming www.rbr.com and the Information Services appropriations bill for the De- Blazin' Hits adds to the media market. Group database. partments of State, Justice and company's other Urban brands: "Global Media has a lot of Commerce? Or could it be the Subscription rate: One year $220. The TomJoyner Morning Show, stations going through RBN, impending oral arguments in The Doug Banks Morning Show, BroadcastAmerica used to have the NAB vs. FCC case to end "The Touch" Urban AC format, a whole bunch; ABC Radio is LPFM slated for later this month? "Rejoice! Musical Soul Food" entirely on RBN. We've been In any case we sense some RBR Family of Products Gospel format and its Classic working with them for a long hesitation.-ED R&B format.-CM time, with our technology on BPA their servers. This just formal- INTERNATIONAL Another strike looming Arbitran directors named izes that they've tested it and RAM for TV? Ceridian (N:CEN) has announced agreed it's everything that Radio Business Report. Inc Fresh from settling the six- the eight people who will serve we've claimeditto be," month AFTRA/SAG strike that as the Board of Directors for MeasureCast VP Marketing Bill Source Guide Piwonka tells RBR. "The ben- and Directory had disrupted TV (and some Arbitron when it separates from The libRadoo Yearbook radio) commercial production Ceridian as an independent, pub- efit is when there is a station www.rbr.com website (RBR 10/30, p. 1), Hollywood lic company. Of course, Arbitron broadcasting group out there is bracing for a potential strike President Steve Morris, who will that is evaluating whether or rbronair.com Internet ratlio by screen writers, directors and add the title CEO, will be one of not to choose RBN, they will actors when their contracts ex- the board members. The others likely see a credible third -party

2 www.rbr.com 11/27/00 RBR ieasurement service already inplace as SurferNetwork adds alue-added." Tele-Media broadcasting Thisisthefirst hosting provider Website streaming, e -commerce and con- 4easureCast has signed, "we're activelytent providerSurferNetwork announced vorking with every other one and expect to Tele-Media Broadcasting has joined as an Closed! each the same kind of agreements with affiliate 11/21. Stations included in thedeal hem as well," Piwonka adds. include WCPT-FM and WKLI-FMAlbany - The deal brings MeasureCast's affiliate Schenectady -Troy market; WBEC-AMand :ount to 2,000 Internet webcasters.-CM FM Pittsfield, MA; WZEC Bennington,VT; WKVT AM & FM Brattleboro, VT; WKNE Ackerley Group launches AM & FM Keene, NH; WHOB Nashua,NH; KTMO(FM) "iKnow" Network WNNH-FM Concord, NH and WLKZ-FM Kennett, Missouri Che Ackerley Group (N:AK), owner and Laconia/Lakes Region, NH. Pending from )perator of 32 independent media opera - BroadcastAmerica's Chapter 11 reorganiza- Legend Broadcasting Inc. ions including outdoor, radio, TV and tion completion (within 90days), to :wo Seattle sports teams,has launched SurferNetwork will combine with the com- Barnstable Broadcasting Inc. :he "iKnow" Network as a destination pany, creating the largeststreaming net- for portal and cross -promotional vehicle. work in the world.-CM $4.5 million Know is a group of independent local news and informationportal sites, set to Oliver leaves WW1; co-founds iebut next year in the company's 18 TV Binary Broadcasting narkets. www.iknowBakersfield.com has Former Westwood One SVP program- ilready launched (11/15) in Bakersfield, ming Denise Oliver has joined Palo Norman Fischer & Associates, Inc. :ieing its KGET-TV (Ch. 17, NBC)and Alto, CA -based Binary Broadcasting as acted as broker of record in this American General Media's local six-sta- co-founder/EVP Content. Oliver is a vet- transaction. :ion radio cluster. eran programmer, launching 98Rock in Unlike Cox Enterprises' Cox Interactive Baltimore, originally pairing Howard Media city sites, which tie in only its own Stern and Robin Quivers on DC -101 media properties in each market, Ackerley Washington, DC and helping launch the STATION BROKERAGE is looking to bring in other companies' ABC Rock Radio Network APPRAISALS EXPERT properties where complimentary. "The Binary is an application service provider WITNESS TESTIMONY iKnow concept is much more than simply that offers listeners personalized and inter- 'establishing websites for our TV stations," active versions of their favorite stations' says Keith Ritzmann, AckerleyS'VP/CTO. websites. Former ABC co-worker Virginia "Our strategy is based on developing part- Westphal is the company's CEO. nerships with other local media companies Says Oliver: "Given my passion for For More Information Contact: to create the most comprehensive andtrusted innovation, this is an opportunity I couldn't online local news and information resource pass up. Binary Broadcastingoffers a in each market."-CM giant leap for radio. For the first time, broadcasters will be able to offer listeners Norman &Terrill Fischer a personalized narrowcast, via the Internet, Southwest SpotTaxi clarification (512) 476-9457 In an 11/13 RBR story about spot delivery which will strengthen their brands and company AudioSonix, we incorrectly add revenue. Binary Broadcasting will quoted competitor SpotTaxi's VP Busi- also help radio fight listener erosion from Bernie Fuhrmann ness Development Bobb Hoskin. Like new media."-CM East AudioSonix, SpotTaxi does offer auto- (610) 317-2424 mated dial -up functionality. Haskitt's Hiwire signs GlobalMedia, KPIG-FM quote should have read: "Though for ad insertion AudioSonix and SpotTaxi are very differ- Targeted ad insenion provider I liwire leas signed ent products, our automated delivery (11/27) Canadian -based audio streaming, e - systems are very similar. SpotTaxi's Down- commerce and content provider GlobalMedia load application goes a few steps further. and its 400 affiliate stations that include KPIG- Norman Fischer & We not only offer automated dial -up and FM to its affiliate roster. There will be a sched- Associates, Inc. automated download capabilities at spe- uled rollout of Hiwire's technology to the 2520 Longview St, Ste. 313 cific times to a user -defined directories, affiliates, group by group, with KPIG first. we also enable automated downloads at Austin, TX 78705 "GlobalMedia brings impressive station rela- predetermined time intervals. For in- (512) 476-9457 stance the radio station can set their tionships to the table," sa id WarrenSchl ic I it i CEO of Hiwire. "Adding popular ten-estrial browser -less SpotTaxi software to dial - stations like KPIG to our network takes I liwire www.nfainc.com up, look for and download spots every one to twelve hours."-CM closer to our goal of locking up the major online players in streaming audio."-CM

www.rbr.com NAB supports mentoring program The NAB has partnered with the Radio News Harvard Mentoring Project to distributeinformation on mentoring to local television and radio stations. The booklet called "Mentoring: A Guide for Local Audix is RBR Radio partner Broadcasters" includes descrip- Radio Business Report, Inc. has announced that tions of what mentoring is, sto- Audix is now a participating partner in RBR ries of other success stories, ideas Radio, our 24/7 webcast on rbr.com and daily and a list of national organiza- newscast distributed on a growing number of tions that. support mentoring. radio -related websites. RBR Radio is using the Eddie Fritts,President/CEO of Audix CX-211 to produce its newscast and the NAB says "Local television other audio content. and radio stations are in an ex- "Since our listeners tend to be the movers cellent position to educate the and shakers of the radio industry, our audio has public about mentoring and to sound good to some very discriminating make the necessary connections ears," saidRBR VP& Associate PublisherKen between young people and car- Lee."We rely on the Audix microphones to ing adults." Recent research help make our Internet stream sound very shows mentoring can signifi- professional." cantly reduce children's use of The CX-211 incorporates front -address de- illegal drugs and alcohol.-ED sign that helps to eliminate ambient room noise.Clarity and definition are achieved with Global Media raises SI M a low -mass one -inch gold vapor diaphragm from Standard Radio housed in a thin mesh windScreen and acoustic Canadian -based audio streaming, foam windscreen. For more information, visit RBR Executive Editor Jack Messmer behind the e -commerce and content provider www.audixusa.com. Audix CX-211 for the RBR Radio daily newscast. GlobalMedia.com announced it has raised $1M (US) through de- finitive share purchase agreements RBR News Briefs from Standard Radio Inc. (also Gaylord merges record labels Canadian). As part of the agree- We don't know about frankincense, but Gaylord Entertainment (N:GET) thinks it can mintmore gold for ment, Standard execsGarySlaight stockholders by eliminating Myrrh Records. The label was merged into Word Records 11/20as Gaylord and David Coriat join the consolidated its music business. Gaylord says only seven staffers are being pink -slipped in the reorganization. board with Global Media Both labels featured Christian artists, including Sandi Patty and Phil Keaggy at Word andAmy Grantand ChairmanJeff Mandelbaum. Shirley Caesar at Myrrh.-JM GlobalMedia board members Winston Barta, Robert Fuller, Susquehanna gets Atlanta move -in CP Jack MacDonaldandJames Susquehanna Radio has received its anxiously -awaited CP (11/14) to build its Atlanta move -in. WHMA-FM Porterhave resigned. 100.5 from Anniston, AL will make the jump to College Park, GA, a few miles west of downtown. The CP In a press release, Global ex- takes WHMA from a Full C to a C3 and gives the group an Atlanta duopoly with WNNX-FM.-CM pects the $1M funding will allow it to continue to fund ops for four to SmartRoute Systems acquisition complete six weeks, after which it will "need Adding multimedia services to its Metro/Shadow offering, Westwood One (N:WON) announced its $25M to have obtained additional fi- acquisition of SmartRoute Systems was completed 11/21. Metro/Shadow (and other Westwood) content will nancing in order to continue as a soon be leveraged across Wireless Internet, cell phone, pagers and in -vehicle navigation systems.-CM going concern."-CM

Look out Westwood One, Premiere and ABC! The RBR Radio Network isnow up to four affiliates and growing... Radio Business Report's daily newscast can now be heard at the Internet sites of these fine web affiliates:

All Access http://www.allaccess.com ("Trades" page) Impact Target Marketing http://www.itmimpact.com/Links.htm Media Services Group http://www.mediaservicesgroup.com/ SpotTaxi http://www.spottaxi.com

If you too want to be a web affiliate to our "sticky" content, just email [email protected] or give us a call at 703-719-9500.

4 www.rbr.corn 11/27/00 RBA State of the States et your atlas readybecause BR is heading out to find out States /hat makes state associations State of the ck. In our series, "State of the tates," we discuss the hot topics nd concerns of each state asso- record keep- tax on advertising servicesand a 6% gross receipts minds. There are concerns about the revenue over half iation. RBR associate editor ing required by the EEOrules and what "broad tax on broadcast and newspaper That really got our attentionand lisabeth Derewitz spoke with: outreach" really means. With LPFM,the concerns a million dollars. remain the interference issues,whether we are we discussed thatwith him.

Larry Timpe North Dakota going to find the FM band's integrityseriously Huffman (OR): A lot of kssocia t ion of Broadcasters compromised by the introduction of allthese new hoard member about their con- people wanted to know about LPFM stations. These concerns werediscussed the Internet and how to ention which was held Sep - with Roy Stewart, the FCC's MassMedia Bureau ember 13-14 speakers. He promote their websites.They Chief, who was one of our guest also wanted to know how to Jim DuBois President/CEO of would do assured the broadcasters that the FCC make money on the sites. We he Minnesota Broadcasters As- nothing to compromise the integrityof the FM sociation about their convention audience and had a session with John Mielke band. He took questions from the of Willamette Media Group which was held October 4-5 responded to some rather heated commentsand who has a fairly extensive website. Hetalked about Scott Smith Vice President of concerns from thebroadcasters. We learned that "How to Build a Million DollarWebsite for Under :he Alaska Broadcasters Associa- Roy supports both of the initiatives,but believes $1000." We also had a session with DanO'Day ion about their convention which that the FCC has not acted withoutregard to the who gave us his Internet presentation.It was was held October5-6 spectrum integrity. He doesn'tfeel that there will mostly along the lines of how to design awebsite Whit AdamsonPresident of be the "interference Armageddon" that somebroad- as far as what browsers arelooking for and what the Tennessee Association of casters are fearing. Broadcasters about their con- turns them off. vention which was held Octo- Smith (AK): We are concerned, of course,about Over the last few years, it seems like thelarger her 5-7 lov%. -power FM and the launch of that. Wehave a lot consolidators aren't coming to our conventions as with John Huffman VicePresi- of questions surrounding that, both fromthe stand- much. It's hard to have a sense of community still have a dent of the Oregon Association point of policy decisions coming outof Washington that. Some of the smaller consolidators wide of Broadcaster about their con- as well and what is going tohappen when the bill good presence. When Jacor was cutting a broadcasters vention which was held Octo- comes out about thirdchannel adjacency. swath, we noticed that some of the ber 5-7 Another local concern has to do with thelocal seemed to go away. We had a few ClearChannel Leigh Ellis Presidentof the FCC monitoring station that is located inAnchorage people there, but not representative of whatis Indiana Broadcasters Associa- and its effect on keeping several stationsbelow in the market. tion about their convention their licensed power. We have to maintain an Ellis (IN): LPFM was a con- which was held October 9-10 interference tolerance with the local monitoring cern, of course. Basically we station, so there is a move to get the stationmoved What concerns did the That way all of the were just trying to make sure out of the Anchorage metro area. that our Senators and Con- stations can operate at their licensed limits. broadcasters have gressmen were informed be- We don't have a ton of streaming going on a both locally and wholesale basis because the cost of streaming is cause they have not acted on as an industry? still outrageous. It requires a very large pipe and the revised bill yet. We needed with them. we have to run it throughthe West Coast in order to make sure that we were in contact Timpe (ND): Not a lot of us are to get enough bandwidth. So as aresult, every- Although LPFM was not the number one issue everything is pretty streaming as of yet. Some sta- body knows they need to stream, but we only have at the convention because tions have discontinued stream- a few stations streamingwhere about 25 listeners much already set. A lot of conversation was about EEO. We had ing due to ASCAP and BMI re- can he on at a time. The reality isthat stations need quirements for any advertising to get on the web, but right at the momentit is a Kathy Schmeltzer, our attorney from Shaw Pittman, who spoke about the possible changes that might that they are selling on the very tough road. Internet. That issue hasn't been happen with the EEO rules. She also went through resolved yet. I know that other Adamson (TN): Our biggest the requirements depending on how you are going stations have stopped streaming challenge right now, is to get to report. We had a job fair which was not onlywell because they haven't seen a profit our US Senator Fred Thomp- attended by broadcasters, but by job seekers as from the e -commerce. son to co-sign Sen. Rod Grams' well. That also fulfills a lot of the EEO requirements (R -MN) LPFM bill. We signed for our broadcasters. DuBois (MN): Clearly the mes- apetition as a board and P sage came out that broadcasters faxed that to him while we For Sale 1 are very concerned about LPFM met. Our state senator, Bob NJ FM radio station and the FCC's EEO requirements. Rochelle met with our managers to discuss state Coverage: 500,000 population Those were the two most promi- Excellent opportunity issues, such as the finance package that included E-mail: [email protected] nent issues on the broadcasters' a sales tax on newspapers and periodicals: a 1.5%

11/27/00 RBR www rbr corn Put muscle into joint and several liability positions Radio AdBit by Peter F. Szabo

Your station runs advertising for a well-known advertiser, As we approach the 10 -year include a statement that, if the there), and advise them that whose agency you have done anniversary of the BCFM's land- advertiser entrusts the agent there can be no exceptions tc business with for many years. mark position statement, now with money to pay you, the company policy and procedures The agency goes belly -up with- is the time to review your pro- advertiser will remain liable if Offer to lend your support in th out paying your station for the cesses to ensure that your joint the agency fails to pay. This event they meet with resistance advertiser's spots. You invoke and several position is enforce- statement supports, in writing, from their customers. Conve your "joint and several liabil- able. Here are Szabo's sugges- the advertiser's understanding your sincere appreciation to tions for giving your liability ity" position in your requests and agreement of your joint the extra time and effortre that the advertiser pay your position the "teeth" it needs to and several liability position. quired, and reward sales' effort; station for the spots. The ad- serve you well: The downside of theagency with quick processing of th vertiser, having already paid recognition form is that it does credit applications. the agency, refuses. Get both agency and not provide you with credit information on the advertiser Unfortunately, we at Szabo advertiser to agree in have encountered cases such as does the credit application. Perform thorough as this one, involving enforce- writing to your position In the case of a solid, well- checks on all parties ment of joint and several liabil- Proper implementation of any known advertiser, however responsible for payment ity clauses, many times in re- the agency recognition form position involves agreement by Just because an agency-or an cent months. Our industry has may be a suitable choice. all parties involved to abide by advertiser-has been doing busi- wrangled with the gnarly issue its terms. You can write your Be sure that the parties who of who is liable for payment of sign the applications and/or ness successfully for many years, company's joint and several li- there are no guarantees that it media invoices for many years, ability clause on a 12 -foot -high agency recognition form have will always be in a position to resulting in the BCFM/BCCA's banner and hang it outside your the authority to enter into the pay its bills. Is the agency ca- adoption in 1991 of its joint and office building, but unless you contract on behalf of the ad- pable of paying even if the ad- several liability clause. Since properly notify both your ad- vertiser and agency. The legal vertiser fails to pay the agency? that time, media have wisely vertisers and their agents and capacity should be clearly in- and widely adopted the joint they agree to its terms, you Is the advertiser capable of pay- ing the agency? Is the advertiser and several liability (also known might as well hang itin the If the authority is not evident capable of paying even though as dual liability) position, which broom closet for all the good it by the person's position, get it paid its agency already and holds both the agency and ad- will do for you. written confirmation regard- the agency defaulted? Remem- vertiser responsible until the We realize that a signed con- ing the person's authority to ber that joint and several liabil- media property receives pay- tract (either from the agency or bind the legal entity. ment. So why do we continue the advertiser) is an unrealisti, ity requires that an advertiser essentially "double -pay" ifits to get so many calls from credit expectation in many cases. Thy Enlist the cooperation managers who have problems key here is to get a signed credr agency defaults. enforcing their position? application, which includes and assistance of We believe that of all liability clear and apparent statement ot sales personnel Restate your joint and positions used by media, the your liability position, from both ilie joint and seeral several liability clause joint and several liability posi- the agency and the advertiser. position can give salespeople on all relevant tion still provides the best pro- Such credit applications, com- heartburn because it requires tection if either party fails to pay: pleted and received by you prior them to get signed agreements correspondence however, the effectiveness of to running any advertising, from both the agency and the Agencies often include clauses any policy position depends on should provide a "blanket agree- advertiser. Salespeople may feel on their insertion orders that the quality of its implementa- ment" to your terms for subse- they are showing a lack of trust excuse them from liability if the tion. Often, when we get these quent buys, removing the ne- in the agency and are thereby advertiser fails to pay them. calls, our further investigation cessity of having all parties sign compromising their relationship Restatement of your clause on uncovers flaws in the processes off on all buys. by insisting on a signedagree- invoices will help to supersede used to implement the dual li- An alternative to having the ment with the advertiser. their position. Attach a letter ability clause. Additionally, with advertiser complete acredit Meet with your sales de- stating your liability position to so many mergers and acquisi- applicationisto require an partment to communicate the all contracts, and instruct rep tions having taken place in the "agency recognition form," writ- importance of the liability po- firms to include your joint and past decade, we have found that ten confirmation from the ad- sition to sales and how critical several liability clause on na- management sometimes wrongly vertiser that the agency is au- the signed agreements will be tional sales contracts that are assumes that consistencies in thorized to negotiate and enter in the event either party fails to sent to agencies and buying policy implementation exist into a binding contract on the pay. Tell a few horror stories if services. Publish your liability across all its media properties. advertiser's behalf.It should you must (there are plenty out clause on your rate card. 6 www rbr corn 11/27/00 RBR The Szabo recommended clause for the joint and several liability clause is as follows: either the agency or adver- How regional formatpreferences differ fromnational tiser fails to pay. preferences (RBR Last \Neeke ran chartsshowing regional format Notwithstanding to For example, if the agency have some charts showinghow the whom bills are rendered 11/20, p. 6-7). This week we refuses to pay after your at- formats compare to the national average. Applicant and Third Par- tempts to collect fail,will which shows how formatsrank from ties shall remain jointly Note the second chart you inform the agencythat region to region. Someformats are fairly universaland fluctuate and severally obligated you intend tonotify the ad- example, AC is always either #1,#2 or #3, while to pay to MediaProvider very little. For vertiser of the non-payment? Spanish can be anywhere from #2 to#14. the amount of any bills format index for each region.Again, rendered by Media Pro- If an agency has received The third chart shows the payment from anadvertiser, AC shows the least amountof fluctuation, never far from aflat 100, vider within the time from 9 to 225. specified and until pay- the last thing the agency while Spanish fluctuates wildly wants is for the advertiser to This study is based on Arbitron P12+AQH numbers from its Fall ment in full is received from the RBR Source Guidedatabase. by Media Provider. Pay- know that the agency is de- 1999 survey and information linquent. In most cases, the NE = Northeast, Atl = Mid-Atlantic, Sth = South, MW - Midwest,SW ment by Applicant to and Pac = Pacific. -DS Third Parties or by Third agency will payifit can = Southwest -Rockies Parties to Applicant shall rather than risklosing not constitute payment a valuable client. Regional Format Preferences: Ratings If the agency claims it has Pac to Media Provider. US NE Atl Sth MW SW 16.4 adver- 15.1 19.3 14.4 9.8 18.2 12.6 Applicant understands not been paid by the NTS 15.2 14.5 15.8 16.0 12.0 13.4 15.1 AC 12.2 that should Applicant tiser, will you directly con- CHR 11.7 16.4 9.0 11.3 9.8 11.7 14.3 6.6 investi- Ctry 10.9 4.4 12.6 14.9 12.2 place advertising through tact the advertiser to 7.2 3.9 Urb 10.3 8.6 14.1 17.7 9.9 will 10.3 15.3 an advertising agency(or gate the problem? When Span 6.8 8.0 0.6 4.5 2.3 5.7 4.1 5.5 6.3 7.7 6.0 4.6 other Third Parties) that you do so? Whowill you CIRk 3.5 Rock 5.4 3.2 8.1 4.6 7.4 6.1 5.0 4.3 Applicant will continue begin the collection process Old 5.4 6.3 6.2 5.4 5.5 4.4 5.8 2.8 2.5 3.6 5.2 6.5 to be responsible to Me- against -the agency or Altv 2.3 3.2 Stds 3.2 2.1 4.2 3.7 3.3 1.4 1.3 dia Provider for payment the advertiser? Rel 2.5 1.0 3.4 5.1 2.3 2.5 2.3 2.2 1.6 2.4 1.9 4.1 of such advertising. In Media cases involving joint SmJz 2.5 Clscl 1.5 2.6 0.9 0.5 1.6 1.0 0.2 the event Applicant is an and several liability have yet Chld 0.1 0.0 0.0 0.1 0.0 0.0 agency requestingadver- to be tested in appellate Regional Format Preferences: Rankings tising on behalf of a cli- courts. We can say with a ent, Applicant acknowl- US NE Atl Sth MW SW Pac degree of certainty, however, 5 1 3 1 NTS 1 1 2 2 1 3 edges its joint and sev- that chances are slim that AC 2 3 1 3 4 5 4 4 eral liability for the pay- CHR :3 2 5 you will convince a court to Ctry 8 4 2 3 2 5 10 ment of such advertising Urb 5 4 3 1 4 6 order an advertiser to double - 2 Span 6 5 14 10 12 5 under the terms set forth 7 pay when there is no com- CIRk 7 9 8 6 6 8 11 herein above. Rock 8 10 6 9 7 7 pelling written evidence that 8 If Applicant is an adver- Old 9 6 7 7 8 10 the advertiser was aware of Altv 10 7 11 12 9 9 6 12 tiser,all agencies which Stds 11 13 9 11 10 11 and had agreed to your li- 14 Rel 12 14 10 8 13 13 place advertising buy or- 9 ability position. With inter- SmJz 13 12 12 13 11 12 ders with Media Provider 14 14 14 13 est rates on the rise and many Clscl 14 11 13 shall be conclusively Chld 15 15 15 15 15 15 15 advertising accounts shifting deemed to be authorized Regional Format Preferences: Index agents for Applicant. among agencies, we expect more cases like these to come US NE AU Sth MW SW Pac NTS 100 128 95 65 121 83 109 to our attention in the next AC 100 109 110 83 92 104 105 12 months. Now is the time CHR 100 140 77 97 84 100 104 Develop a plan for Ctry 100 40 '116 137 112 131 61 to review your liability state- Urb 100 83 137 172 96 70 38 resolution of disputes ment, check paperwork on Span 100 118 9 66 34 151 225 CIRk 100 72 96 111 135 105 81 Since disputes regarding li-existing accounts, and up- Rock 100 59 150 85 137 113 65 date your processes to pro- Old 100 117 115 100 102 93 80 ability are hound to arise, Altv 100 132 64 57 82 118 148 your company shouldhave tect your liability position and Stds 100 66 131 116 103 72 100 your bottom line. Rel 100 40 136 204 92 56 52 in place a clear and consis- SmJz 100 92 88 64 96 76 164 The author is Presidenlof Clscl 100 173 60 33 107 67 167 tent policy for expeditious 100 200 resolution. Know ahead ofSzabo Associates, Inc., Media Chld 100 0 0 100 0 time what you will doif Collection Professionals Source: Arbitron, RBR Source Guide database 7 11/27/00RBR www rhr corn VOXklRadio Radio Operations

Vox Radio Group: College handling investor relations for radio for17 years," noted the company withus, s.tid roommates reunite as American Radio Systems from Shapiro. "We felt most comfort- Danziger. "As long as we keep 1995 until the company was able doing thisin our own finding deals that make business partners sense sold to CBS in 1998. backyard." economically-to us and to By Jack Messmer After about a year of lining The business plan was to them-they will keep funding up venture capital backing and consolidate stationsin small the deals." "Vox clamantis in deserto." If station acquisitions, Danziger markets in the region the two The 50% and even 60% cash your Latin is a little rusty, that and Shapiro former college flow margins seen now in big translates as "a voice crying in foundtheir roommates market clusters may not ever be the wilderness." It's the motto of voice (al- knew so well. attainable in small markets, but Dartmouth, the Ivy League school though it's Most of the Vox also doesn't have to pay where Bruce Danziger and Jeff been a while sellers were the multiples that big market Shapiro met as roommates who since New En- small opera- stations command. Over time, shared an interest in radio. gland could tors who didn't they say, all of Vox's clusters The two were both active in truly be called have the capi- can reach margins in the high the school's commercial AM and a wilderness). tal structure to 30s-maybe past 40%. Their FM student -run radio stations- They launched expand. "We strategy of buying non -perform- "When we were there, they had Vox Radio thought we ing sticks, along with cash -flow- substantial cash flow," Shapiro Group in Au- could consoli- ing properties, gives them and noted proudly-and never lost gust of 1999, date a lot of their investors plenty of upside. their interest in radio, although purchasing sta- those markets Of course, the cash -flowing ac- they found jobs on Wall Street tions in Mont- and build quisitions help keep them on pelier, VT and something that after graduation. Danziger good terms with their senior Shapiro got back to radio Concord, NH, had logic to it, lender. CIT Group. quickly and in 1985, along with as well as merging in the cluster and also upside, and take ad- Shapiro was already managing vantage of our management some investors, bought WHDQ- What makes Vox work? FM in Claremont, NH, which not along the New Hampshire -Ver- contacts and put together a good "Coincidentally, covered Hanover, mont state line. team," explained Danziger. "Our strength has been aggres- NH, where Dartmouth is located. Vox has remained focused on "We have a nice swath across sive promotion, aggressive sales," He left Wall Street, returned to the Northeast and now includes New York and Western Penn- was Shapiro's initial response, New England as a small market 35 stations in 11 markets across sylvania," Shapiro noted, in when RBR asked what set Vox GM and began building a small Vermont, New Hampshire, Mas- addition to the original New apart from other groups operat- group of stations. sachusetts, England core. "I ing in its region. "But I think each Danziger also left Wall Street New York and think you'll see of the stations in the clusters really for the life of a small market Pennsylvania. Vox stay within cater to their own market. We GM, assembling another group The North- that swath. It re- don't do voice -tracking from afar. of investors with Shapiro in 1988 eastern focus ally makes re- Each station does have some level to buy a station in Watertown, was based on gional sense." of control of its own program- their experi- Despite hav- ming-of how it sells itself. That NY. They added stations in other ence and fa- markets, such as Burlington, VT ing acquired so doesn't mean we don't have input miliarity with and Ithaca, NY. After building many stations and guidance and help steer the area. "It's up, they sold off all but their in such a short the ship." where a lot of time, Vox is still stationsintheoriginal The Vox partners say their lo- our contacts actively look- Claremont -Hanover, NH mar- cal managers have a higher level are," said ing for acquisi- ket in the mid-to-late-'90s-pro- of local control than is the case Danziger. tions and has ducing a tidy profit for them- with many other groups of their "Obviously supportive fi- size. "It's less McDonald's-ized," selves and their investors. our initial nancial back- was how Danziger put it. "We had never bought a sta- dealswere Shapiro ers. Vox's pri- That's due in part to the level of tion with any cash flow," Shapiro here. We mary venture confidence that the two have in noted, so the two had estab- knew the sellers." capital backer is Alta Communi- their cluster managers. lished a successful track record "We had a very positive sphere cations, a name well-known in "Because we've had years of of buying sticks and turning them of influence in New England, in radio circles, with additional good contacts and good experi- into cash -flowing radio stations. terms of having the reputation to investments from Walden ences, working with a lot of good Meanwhile, Danziger had recruit the best and the brightest, Capital Partners. people, we've been able to attract returned to the corporate world, based on being in New England "Their objective is to grow a lot of those people and fuse

8 www rbr corn 11/27/00 RBR Sold ExcaliburMedia, Inc. Five Vermont Stations

WZRT-FM morrisorre WCVR FM WWWT-AM

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Warrenurg Tilton- efteld Westlens Fall Franklin So ers Lake Luzerne- adley Farmingt Glensails No Roc Gle s F ontooco laggitY rle Co Dove Hen cook Durh Saratoga ;.pring Hills'rough Johnstown Spa j Marlborough H delite,ymonctlew NA< gton Gloversville A rim East M lmack Epping East 0 er Tribes Hill Ma Exeter han'eville West Bratt o \ Keene Peterberough Knolls BrattIO o ,,, ) vvi WLCQ-FM nngton West Swanzey / WSYB-AM

Knowledgeable, Confidential Brokerage Services

Mark Jorgenson Peter Mieuli (813) 926-9260 Jorgenson (408) 996-0496 Tampa Broadcast J Brokerage San Jose Vox Radio Group

Montpelier/Barre, VT Radio Operations WSNO-AM News/Talk WORK -FM Hot AC WWFY-FM Country them into Vox-general manag- Rutland/Mt. Snow, VT ers,sales mangers, cluster WEXP-FM Classic Rock/Imus managers, program directors. WVAY-FM Classic Rock/ We've assembled a group of Imus goodpeople largely because we've worked withthem Concord, NH before and they've had good WKXL-AM News/Talk experiences with us and we with WKXL-FM News/Talk WELCOME TC 0106 On - them," Danziger explained. WOTX-FM Country Line! WJYY-FM CHR Like many group owners, par- WNHI-FM Classic Rock/Imus 01061 Find out Mit mil ticularly in smaller markets, the the excltement la Vox executives say the biggest

Hanover/Lebanon (Upper 3nnenj 'CU 'he recruiting challenge has been in ect ei elaeoc Valley), NH ;era ace kiwi The Home Of Classic Rock & finding good AEs. WNHV-AM (Hanover) Sports n the fkusny IMUS IN THE MORNING . 4, Isrluo it "As anyone in radio knows, it's WTSV-AM (Claremont) ; ICS to s[tre always been one of the biggest Sports jwert1:117:e.ern challenges-finding good account WHDQ-FM Classic Rock/ MEMOIRS. n executives-good, pure sales- Imus people," Danziger noted."It's WWSH-FM Soft AC America Online_- IIThe Rive., true to the music] harder now, I think, than it's ever WGLV-FM Oldies rTti: 151 . rl er AA, . - A. $ ?-11; Read Write Mail CenterPrint My Files My AOLFavoritesInternetChannels People Quote: Perks Calendar been, just because of the state of !.; lapAreewavresani M EMearn, Brattleboro/Bellows Falls, the economy and the other op- VT/Keene, NH tions people have. Because we WSSH-FM Soft AC 411. are consolidated in our markets- Listen Live WZSH-FM Soft AC Photo Gallery in virtually every market we're in WLPL-FM (New) THERIYER we are the leading radio operator in revenue and audience shares- The Showboat Northampton/Greenfield, MA that helps." But he says it's still a WRSI-FM AAA ourS challenge to identify, hire and WPVQ-FM Country IIIE 1111)0 train new salespeople. Shapiro says it's helped in some Glens Falls/Saratoga cases that he and Danziger are Springs, NY Ourasponsors directly involved as owners and WENU-AM News/Talk can help their GMs persuade a WMML-AM Sports/Talk WNYQ-FM AC desirable AE from another com- WZZM-FM Country pany to join Vox. That personal WHTR-FM Oldies contact with the head of the com- WENU-FM Nostalgia A Amenca Online - itelp://vorer.hotme1009.eollail pany is no longer possible at the radio mega -groups. _ "I think it r*i; _ eir - A -n - :; A. s Jran., Jamestown, NY Read Write t,9111CenlerPrint My files My AOLFavoritesInternetChannels reonle Quotes Perks Calendar shows respect for the people we're hit') //www freggy1009 oars/ 7 SE MMS WKSN-AM Oldies 0 0 talking to," he said. WHUG-FM Country GY Despite the size of their markets, WRLP-FM Classic Rock/Imus 100.9 the Vox partners have taken the Friday. November 17.2000 same approach as most large mar- Fredonia/Dunkirk, NY ket groups in handling cluster sales. (Operated under LMA) 10 1., A go40 Each cluster has multiple sales teams WDOE-AM Oldies Welcome to Froggy 100.9 FM Jumpin' Counbys web site, Hop around all you want, but, if you ever want to get back here, and most Vox salespeople are sell- WBKX-FM Country just click on Ribit in the top left, and he'll always bung you back hornet ing only a single station to advertis- ers. 'We continue to believe that's Olean, NY THE FROGGY $50.000.00 BIRTHDAY BASH WOEN-AM Talk the best way to maximize each Listen mornings at 7:15 for the Froggy $50,00.00 Birthday Bash. if your birthday matches ours you could WMXO-FM Hot AC win up to $50,000.00. Plus, Froggy's JD Gr o en will announce when to listen later that day for more product," said Danziger. "Each sta- chances to win. tion has to have its own champion." DuBois, PA G_MIC11.121/. rf11)494COM" Keep up to date at WCED-AM Oldies ja6tantalElla Aawrica ONsrae rbr.com WOWQ-FM Country The voice of the Vox websites: WHDQ, WWFY, & WRSI radio industry ri 11/27/00 RBR AnakstareviewQ3 andlooktivard 'fall Street jitters over ad revenues and BroadcastInvestments re health of the overall US economyhad

dcen a toll on radio stocks, beginning ad< in the Spring. Now that virtually all said Prudential's Marsh. "From the There were a lot of companies that ought to get us to 13-15% for cash flow ompanies have reported their Q3 te- growth. That's very similar to what we're investor's standpoint, there was dearly a looked like they were in a different aks, the radio sector proved itself to be looking for next year, obviously the first sigh of reliefwhen they saw the numbers business than Citadel." alongalthough some groups were half of the year being a little softer for the from the thinzl quarter." He was also "Yes, you'll probably see tiers, both in tronger than others. top line and the second halfof the year cheered by guidance companies gave operational performance as well as stock The big disappointment for Q3 came being a little bit stronger-which, I should on what to expect for Q4 and 2001."I price," agreed Boyle. 'Typically, the faster pm Citadel Communications(0:CTFC). think investors walked away believing growers of late, goingforward, will point out, is not dramatically different than Vhile Infinity (N:INF), Clear Channel what we've been looking for out of the that the numbers analysts had been continue to be in larger markets, those N:CCU), Cox Radio (N:OCR), Enterrom radio group for the last three years. talking about for the last four months are with a higher percentage of tmarounds, N:ETM) and several other radio compa- Companies have outperformed, yew dra- probably pretty good for 2000 and for and certainly those groups with targeted lies were beating The Street's somewhat niche formats that get the extra benefit of matically, those initial expectations. That's award post-dot-curn expectations, Cita- 2001." Not all radio stocks, however, macro -demographic improvements, or why it's been a great group to own." lel announced a downside surprise. The For Q4, Boyle says investors are are equal. at least recognition by the advertisers. company had suffered $2M in cancella- focused on same -station revenue gains, "I think you're going to see a diver- Traditionally,largercapcompanieswoulcl ions in September and same -station which he is pegging at 6-9%, and same - gence of performance," Marsh saidof the get tossed into that when you talk about powth for both revenues and broadcast station BCF gains of 10-14%. Various future for public radio stocks. "Compa- stock price performance." ash flow were only 1% for Q3. The groups, he notes could underperform or nies which showed that they can deliver Looking forward, both analysts re- company's already battered stock price even in relatively tough periods are main bullish on radio. outperform those parameters. immediately fell by nearly half. "For 2001 in radio, we are forecasting going to be viewed differently that those "We'relookingforroughlyhighsingle- "Citadel was a big disappointment to digit growth in the fourth quarter for 83% growth overall, with 8.5% at the local 'as. We had been pretty bullish on the that couldn't. The Cox numbers looked revenues, roughly in the 83/0 range,"said level,"Boylesaid."Wepresumel3CFshoukl stock and were kind of blind -sided," fabulous. The Entercom numbers looked Marsh of his forecast at Prudential. 'That generally fall in the 11%-16Yo area."IM noted analyst James Marsh of Pruden- strong. Radio One looked fabulous. tial Securities. "I can take the heat and I will take it," CEO larry Wilson told analysts in his John Borders, President, of quartertyconferencecall. Fornow, though, his company is in Wall Street's penalty Sunburst Media box and Citadel will have to show a few quarters of improved results to attract has agreed to exchange the assets of investors back to its stock. No other company reported as se- vere problems with cancellations as Cita- KDGE-FM del, but the softness which had been reported in Septemberwas evident when RAB tallied the month.National spot sales (Gainesville) Dallas, Texas came in 6% below the previous year- the first negative number to appear in ages-although that was more than offset by a 6% rise in local ad sales-still a far cry fru' I the double digits that had $52,400,000 r routine earlier in the year. Overall theradio industry gained 3% to inSeptember.Thatdropped the year-to-date gain to16%, Alfred Liggins, President, of with one quarter to go. For the most part, Q3 results gave Wall Street some reassurance Radio One, Inc. "I was mostly pleased an( I pleasantly surprised," said analyst Jim Boyk of First Union Securities. 'There were not too many major positive blowouts, but for jiStar "Radio's Full Service the most part folks came out with num- Media Financial Specialists" im bers that either met expectations or beat Group, Inc. expectations. Some of the same -station growth rates were quite good." 5080 .Spectrum Drive, Suite 609 East Dallas, TX 75248 (972) 458-9300 "It was in line with my expectations,"

11/27/00 RBR www.rbr.com Radio Unica wants its stock back Media Markets aones Hispanic News -Talk -Sports network and station opera- tor Radio Unica (O:UNCA) by Jack Messmer has announced that it will Clear Channel's latest outside of Greenville. Clear nicely into CCU's Fargo be buying back stock. Its Channel is paying Douglas superduopoly. Broker: Doug SC acquisition has Board of Directors has au- Sutton's Sutton Radiocasting Ferber, Star Media Group thorized the repurchase of move -in potential Corp. $1.4M for the move -in CCU builds in Bakersfield up to 3M shares via open Clear Channel (N:CCU) issignal. When all is said and market transactions, block picking up another station in done, Clear Channel will have Clear Channel (N:CCU) is add- trades and private deals. South Carolina. Althoughtwo AMs and four FMs in ing a second AM to its Bakers- Radio Unica's stock had WCRS-FM Greenwood, the market. Broker: Gordon traded as high at $31.50 in field, CA cluster, which also SC currentlyoverlaps Rice Associates includes four FMs. The latest the past year, but has only WSSL-FM from lately been trading below deal will have CCU pay $1.4M Clear Channel's Greenville - $3.00. Said Chairman/CEO Michael sells to Michaels for KAFY-AM. The seller is Spartanburg superduopoly, it Joaquin Blaya, "Given the won't be staying in Green-Vic Michael has found an- Golden Pegasus Financial Ser- national network that we other one of his stations to sell vices Inc., owned by Nelson have built, the continued wood. The contract, signed in July, noted that a city ofto Clear Channel Radio Gomez, which acquired the dramatic improvement in our (N:CCU), headed by Randy station just a few months ago results and our strong bal- license change was possible and, indeed, just last month Michaels. This time Michael is (RBR 5/1, p. 15) for $825K. ance sheet, we believe our selling a CP for KCHY-FM That price included KZPM- equity is significantly under- WCRS got the go-ahead from Hope, ND, a new Class Cl on valued."-DS the FCC to move to Mauldin, AM, which remains with SC, which will putitjust 104.7 mHz which willfit Gomez. Broker: Jorgenson Broadcast Brokerage Yet another Cleveland payment In addition to a $10.5M pay- ment from Salem (O:SALM), which was already reported (RBR 11/13, p. 15). Seaway Radio is getting $8M in cash from Clear Channel (N:CCU) PATRICK COMMUNICATIONS in a three-way station swap in Cleveland. To recap, Seaway ends Station Brokerage up with the signals of WHK- AM & WAKS-FM, Salem Debt & Equity Placement WCLV-FM and Clear Chan- nel WHK-FM. Brokers: Me- Fair Market & Asset Appraisals dia Services Group, Gary Stevens & Co.

Larry Patrick Slow dealing for President holiday week Susan Patrick \\ ith Thanksgiving three Executive Vice President days away, deal news is Terry Greenwood scant. However, we did find Vice President that owner/broker John Barger is picking up an- Greg Guy other FM near the San Anto- Vice President nio, TX market-although not near enough as a Class A to show up in the Arbitron (410) 740-0250, www.patcomm.com book. The price tag for KRBH-FM Hondo, TX isa whopping $74,925. RBR observation: The www.rbr.corn 11/27/00RBR each is from its 50/50 partnershipwith 11-ontract to buy this stationfrom James Withers' Five Points Broadcasting Inc. Clear Channel at CNET Radioand how eferences a 1995 agreement whichled much is from a TV program itproduces o the FCC inFebruary of this yearfor CNBC, but it does saythat its in- SOLD! ;ranting permission for KBUC-FM to creased costs were "related primarily to nove to 98.5 mHz andupgrade to Class increases in personnel andpersonnel - 31-creating one of two San Antoniorelated costs for CNET Radio and costs nove-ins that Barger and others sold to associated with CNET News.com iispanic Broadcasting (N:HSP) for$45M and TV.com." RBR 6/5, p. 12). KRBH gave up its 98.5 ;pot to move to 105.9,where itwill Schult plans another run -emain a Class A (unless Bargerhas WDYL-FM something else up his sleeve). American Communications Enterprises Richmond, Virginia (O:ACEN) may be out of radio (RBR 11/ and 6, p. 15), but Dain Schult says he's WJMZ-FM/WPEK-FM Waitt buys JSA partner moving to build another group. "Ihave Greenville, South Carolina More than two and a half yearsafter decided to move forward with a num- buying KCTY-FM from Platte Broadcast- ber of station aquisitions and Internet from ing in the Omaha, NE market, Norman services via a private company I formed Radio One, Inc. Waitt is buying KOTD-AM as well. Waitt in 1998, American Radio Empire,Inc.," to Radio will pay Charles Warga $750K for Schult said in an email to RBR from his Cox Radio, Inc. a long-Austin, TX headquarters. "So I'm not the AM, which has been in for standing JSA since Waitt bought the FM out of the business and I anticipatethe in 1998. Both stations arelicensed torelease of several press releases on $52,500,000. Plattsmouth, NE. ARE'sactivitiesinearlyFirst Quarter 2001." Census yields a new broker Charles Giddens Deals, deals and more deals represented Cox. Now that his job as Media Team Leader for the Census 2000 10 -state Denver Beasley Broadcast Group(O:BBGI) Region has wrapped up, former Colo- isexpanding to an eight -station rado Broadcasters Association Execu- superduopoly in Augusta, GA. It's pay- tive Director Doug Wayland is going ing $12M for George BuckJr.'s WKXC- back to broadcasting. He's signed on as FM & WSLT-FM. a media broker withSatterfield & Perry Clear Channel (N:CCU) isshifting and will be based in Denver. the West Palm Beach, FL station line- ELLIOT B. EVERS up yet again. This time it'sselling WBZT- 415.391-4877 AM to Jim Hilliard's James Crystal BRIAN E. COBB CNET Radio still in the red? Enterprises for $2M. An LMA began 11/ 202.478-3737 8. CCU had to divest the station to clear Much like the dot -corn companies it CHARLES E. GIDDENS the way for its pending $17M purchase 941.514-3375 reports on,it appears KNEW -AM San of WJNA-AM & WRLX-FM for $17M Francisco has yet to reach positive cash from, you guessed it, James Crystal TELECOM GROUP flow with its all-techie Talk format pro- GREG D. WIDROE duced by CNET Networks (O:CNET) ( RBR 8/28, p. 12). Broadcasting is JASON D. HILL and Clear Channel (N:CCU). According Willie Davis' All Pro 415.391-4877 to CNET's Q3 SEC Form 10-Q, its broad- taking its ownership of KATY -FM Riv- erside -San Bernardino, CA from 49% to RADIO TELEVISION TELECOM cast revenues for the three-month pe- M&A INVESTMENT BANKING riod were $2.2M, while costs were $2.7M. 100%. Davis is buying out KATY -FM CNET doesn't break out how much of LLC, headed by Kay Gill, for $2.5M. The Radio IndeX T" 160 Stock prices slumped and radio stocks went down MEDIA VENTURE with them. The Radio In- 140 dex"' fell 6.422 for the PARTNERS week to close 11/20 at 135.048. 120

10/30 1 1 / 1 3 1 1 /

11/27/00 RBR ne anis mien below were Transaction Digest taken from recent FCC by Dave Sayler & Jack Messmer RBR's Transaction Digest reports on all deals that involve assignment of a station filings. license (FCC Form 314) and substantial transfers of control of a licensee via a stock sale (FCC Form 315), but not internal corporate restructurings (FCC Form 316). All deals are listed in descending order of sales price.

$65,000,000 KRLA-AM Los Angeles (Pasa- casting (N:INF), to ABC Inc. (John Hare, dena CA) from Infinity WOAZ-FM Inc. (Mel Pres./Radio), a subsidiary of The Walt Disney Sold Karmazin, Dan Mason), a subsidiary of Infin- Co. (N:DIS). $3.45M escrow (including re- ity Broadcasting (N:INF), to ABC Inc. (John lated KRLA deal, above), balance in cash at KAFY-AM Hare, Pres./Radio), a subsidiary of The Walt closing. Superduopoly with KGO-AM & Disney Co. (N:DIS). $3.45M escrow (includ- KSFO-AM San Francisco, plus crossownership Bakersfield, CA ing related KRAK deal, below), balance in with KGO-TV (Ch. 7, ABC) San Francisco. cash at closing. Superduopoly with KABC- Broker: Media Venture Partners AM, KDIS-AM &KLOS-FM, plus Jorgenson crossownership with KABC-TV (Ch. 7, ABC). $2,000,000 KRME-FM Bakersfield CA Broadcast lie Brokerage Broker: Media Venture Partners (Shaffer CA) from Tii-Caballero LLC (Eduardo Caballero et al) to Buckley Broadcasting Mark Jorgenson Peter Mieuli $29,000,000 WXRT-AM Chicago from Infin- Corp. of California, a subsidiary of Buckley (813) 926-9260 (408) 996-0496 ity Broadcasting Corp. of Illinois (Mel Broadcasting Inc. (Richard D. Buckley). Tampa San Jose Karmazin, Dan Mason), a subsidiary of Infin- $200K escrow, balance in cash at closing. ity Broadcasting (N:INF), to Salem Communi- Superduopoly with KNZR-AM, KLLY-FM, Radio Acquisition Seminar cations Acquisition Corp. (Ed Atsinger, Stuart KKBB-FM. Broker: Gary Stevens Learn how to get financing and buy right. Six hours. Epperson), a subsidiary of Salem Communi- one-on-one. Topics: 2000 industry update, search, cations (O:SALM). $29M cash. Combo with $950,000 KVEC-AM San Luis Obispo from values, negotiation, market and station due diligence WYLL-FM. Broker: Gary Stevens & Co. Chorro Communications Inc. (Francis and others you choose from experienced owner. Sheahan) to Clear Channel Broadcasting For details call Robin Martin - 202/939-9090 $4,700,000 KHVN-AM Dallas -Ft. Worth (Ft. Licenses Inc., a subsidiary of Clear Channel TbeDeerRiverCroup Worth TX) from Infinity Broadcasting Corp. Communications Inc. (N:CCU) (Lowry Mays of Ft. Worth (Mel Karmazin, Dan Mason), a et al). Cash. Superduopoly with KURQ-FM, HAMMETT & EDISON, INC. subsidiary of Infinity Broadcasting (N:INF), to KSTT-FM, KSLY-FM, and overlaps additional CONSULTING ENGINEERS Trumpet Broadcasting System Inc. (Clara AM & FM in Santa Maria market. Broker: RADIO AND TELEVISION McLaughlin, Sherman Allen, Angela Scott, Jorgenson Broadcast Brokerage (buyer) Serving the broadcast industry since 1952... Sadie, Raymond & Marian Ash). $145K es- crow, balance in cash at closing. Broker: $700,000 KBRZ-AM Freeport TX from &ix 280068 San Francisco 94128 - Minority Media and Telecommunications Coastal Broadcasting Inc. (Jim T. Payne) 707/996-5200 Council to Aleluya Christian Broadcasting Inc. 202/396-5200 (Roberto R. Villareal). $70K escrow, bal- [email protected] $3,310,000 KRAK-AM Sacramento CA from ance in cash at closing. Buyer is a non- www.h-e.com HE Infinity Radio License Inc. (Mel Karmazin, profit corporation. Broker: John W. Dan Mason), a subsidiary of Infinity Broad- Saunders, Media Broker (seller)

APPRAISALS More transactions @ rbr.com Radio and Televison Every type of appraisal New Listings Expert witness services OH 2 FM's and AM w/ real estate Art Holt or Chris Borger $2m NY upstate AM-$1.1m. 1-610-814-2821 Philadelphia suburban AM-$2.7m. Richmond, VA AM - $400,000. HOLT Call Bruce Houston Media Group Blackburn & Company

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In a move designed to help incredibly fast pace and just The new RBR Web "radio "Advertisers can now run au- busy executives keep up can't wait for the morningstation" is still early in itsdio spots on our Internet radio with the fast -changing radio faxes," said Ken Lee, Asso- development and radio ex-station, bundled with banner ciate Publisher and General ecutives are encouragedmessages on the www.rbr.com business, Radio Business web site, along with click - Report in the Spring of 2000 Manager. to provide input on what they'd like to hear. (Pleasethrough messages on our daily became the first radio trade In addition to posting news on its Web site, don't ask for Britney Spears, email service, plus traditional publication to launch an www.rbr.com, RBR is also though!) You may email advertising with Radio Business Internet radio station." Ra- streaming 24 hours a day. [email protected] Report and MBR." dio news is breaking at an The "format" consists of a so we can build the radio newscast of radio -specific station you want. business and industry news, "Another exciting interviews and commentar- aspect of the Internet ies, plus classic radio bits, radio station for RBR jingles and Mercury Award- is that we can now winning spots (with realoffer advertisers a paid spots to come). Veteran cross -platform ve- newscaster Jack Messmer, hicle to help to now Executive Editor ofmarket their prod- RBR, is back behind theucts," noted Lee. mike for the audio updates. 11/27/00 RBR www.rbr.com 15 Optimize Inventory Price It Right Sales Target Tool RateMinder Yield Manager

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