Radiobus -Esseporl Voice of the Radio Broadcasting Industry® February 26, 2001 Volume 18, Issue 9

I RadioBUS -esseporl Voice Of The Radio Broadcasting Industry® February 26, 2001 Volume 18, Issue 9

Powell & Co. review RADIO NEWS AMERICAN the FCC's mission White knights save researcher in distress 2 "Wehave to be a lot more URBAN Amy Vokes and a platoon of familiar industry names have succeeded challenging and creative in keeping Kurt Hanson's Strategic Media Research in business about our own internal re- RADIO Fool on the Hill? Tristani may make a run for it 2 sources and how we reallo- cate, them,"Chairman NETWORKS Radio phone rules latest addition to the Gripes of Roth 2 Michael Powell said in dis- Arbitron soon to spread its Ceridianless wings 3 cussing the challenges facing the FCC he now heads. What's Rhythmic and Old is new at JRN 3 In a departure from the usual practice, not a single item for action was on the agenda for the FCC's 2/22 In praise of the local radio road warrior 7 monthly meeting. Rather, the

Big trouble in Binghamton? Hardly 8 new chairman had the chief of each FCC bureau speak to the four commissioners PROGRAMMING FOR PROFIT abouttheirconcerns, achievements and outlook CRB heads to Music City to talk about Country 9-10 for the future. Television is well along STATION PROFILES the road to digital, but radio is just beginning, Mass Me-

WTEM: Taking a Sporting chance in the Nation's Capitol 11 dia Bureau Chief Roy THE URBAN Stewart told the special MEDIA MARKETS & MONEY overview session of the FCC, RADIO LEADER noting that the Bureau is currently reviewing digital Susquehanna garners KGAR for KC cluster 12 proposals for radio. Discuss- The as-yet-unbuilt CP will go to Susquehanna in stages-first ing the convergence of vari- in a JSA this summer, them as an outright sale in three years. ous types of media provid- Susquehanna, Regent break out the black ink 12 ers, Stewart proclaimed that

NJ Coast: I'll Hut and I'll put and I'll blow your LMA down 13 we are standing at a water- shed for traditional broad- AMERICAN Puerto Rico Class As swap partners 13 casting. "Various media URBAN RADIO NETWORKS Rodriguez makes his Marcos on Corpus Christi cluster 13 continued on page 2

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February 26 2001, Volume 18, Issue 9

BPA International membership applied for September 2000 previously considered separate SMR deal closed; filerunagainst Sen. Pete and distinct are now offering Domenici(R -NM) Hanson stays or Rep. Executive Editor Jack Messmer competing services to the con- Heather Wilson (R -NM)? The Managing Editor Dave Seyler sumer," Stewart said. Although The deal is done: The buyout of Albuquerque Tribune quoted Senior Editor Carl Marcucci Associate Editor Karla Roberson he offered no specific proposals Strategic Media Research (SMR) her as being undecided on which Production Michael Whalen for how to deal with media con- (RBR2/5, p.4) by investment congressional seat to seek-but VP Administration Cathy Carnegie team Jimmy de Castro, Alfred FCC Research Consultant Mona Wargo vergence, Stewart said it is be- definitely interested in makinga Administrative Assistant April Olson coming increasingly important Liggins, David Kantor, Jeff bid for one of them. McClusky, Gary Slaight and Publisher Jim Carnegie for the various bureaus of the If she picks the Senate as VPIGM, Associate Publisher Ken Lee FCC to work closely together. Jeff Trumper is final. A federal her target, Tristani would need Senior Account Executive John Neff Following Stewart's presen- court judge had previously ap- to raise about $5M-so she'd Account Executive June Barnes Account Executive Ann Morrone tation, in which he applauded proved the sale (1/30) from ma- need to get started soon. If his staff for their dealings with jority ownership by Chartwell Tristani leaves the FCC soon, Editorial/Advertising Offices LPFM, two Commissioners got Capital and SMR President/ President Bush would have a 6208-B Old Franconia Road into a bit of debate over LPFM. Founder Kurt Hanson to that growing backlog of empty Alexandria, VA 22310 PO Box 782 Springfield, VA 22150 "When Congress has to come team which will be lead by SMR seats to fill -two that can go to in and clean up the mess, it is SVP Amy Vokes. Strategic filed Republicans, plus one which Main Phone: 703/719-9500 not an accomplishment for this Chapter 11 in early January. would have to go to a Demo- Editorial Fax: 703/719-7910 agency," said Commissioner Hanson will be staying aboard crat or independent. Sales Fax: 703/719-9509 Subscription Phone: 703/719-7721 Harold Furchtgott-Roth (R). in an executive, but not an own- RBR observation: We Subscription Fax: 703/719-7725 That prompted Commis- ership, capacity with an as -yet - know plenty of broadcasters sioner Gloria Tristani (D) to undetermined title. The com-who'd be happy to make a Email Addresses defend the FCC's move to cre- pany, with $1M in operating capi- campaign donation if it will Publisher. [email protected] Editorial. [email protected] ate LPFM. "Low power radio tal, is closing in on new office get Tristani off the FCC-just Sales: [email protected] was a response to the real need space in Chicago. so long as she doesn't actually [email protected] of the American public and the "We're looking forward to put- win a seat in Congress! Aside

Daytona Beach Sales Office American people to have a little ting Kurt and Amy back at the from her family heritage Ann Moronne part of that spectrum," she said. helm of the company they ran (grandpa was US Senator Den- Phone: 904/767-3682 Stewart had earlier stated succesfully for so many years," nis Chavez), we can't imag- Fax: 904/760-2888 Email: [email protected] that approximately 40% of the said de Castro. Hanson is commit- ine any reason why New LPFM applications on file will ted to staying on "for as long as it Mexico Democrats are so anx- Nashville Sales Office be nullified by congressional takes to get Strategic's leadership ious to have Tristani run. Her June Barnes Phone: 615/360-7875 action which reinstated third position firmly established again." elitist, ivory tower approach to Fax: 208/445-8774 adjacent channel protection Strategic's core businesses in- government-walling herself Email: [email protected] from interference. Tristani la- clude call -out music research, off from all but a tight inner ©2001 Radio Business Report, Inc. Material may not be mented the churches and com- custom research projects, phone - ring of advisors-should make reproduced without permission. All content may not be munity groups which will not based audience tracking and di- her an aloof, irritating candi- reproduced, photocopied and/or transmitted without written prior consent.Any violations will be dealt with legally. be able to using what rect marketing services.-CM date. Sharp campaign consult- Printed in USA. she again insisted was "a tiny ants can disguise that in a big bit of spectrum." state campaign waged prima- Radio Business Report is published weekly by Radio Tristani eyeing Business Report, Inc. Publishers of Radio Business Report, One of the biggest challenges rily on TV and radio, but that's MBR - Manager's Business Report, The Source Guide, facing the FCC is staffing. Cur- Capitol Hill? www.rbr.com and the Information Services Group database. not the way campaigns are run Subscription rate: One year $220. rently some 30% of the Com- It's never been any secret that in New Mexico. Pressing the missions engineers are eligible Commissioner Gloria Tristani (D) flesh, kissing babies, judging RBR Family of Products for retirement. Both engineers regarded the FCC as a stepping enchilada -making contests and and attorneys frequently leave stone to bigger things. After pass- making small talk with grizzled BPA their government posts at the RMIR INTERNATIONAL ing up an opportunity to run for ranchers and nostalgic little FCC for higher -paying jobs in the US House last year in her old ladies would hardly fit with Redlo Boll ea Aeporl, Inc. the private sector. Powell hopes home state ofNew Mexico,in the personality Tristani has to attract new employees to the expectation that Al Gore would exhibited in Washington. Source Guide Commission by emphasizing the win the presidency and appoint Could she really be that differ- and Directory high profile of the FCC's mis- her to chair the FCC (Oops! Slight ent at home? We doubt it. Sen. The All -Radio Yearbook sion. "We are the intersection miscalculation there.), Tristani is Domenici is said to be facing a www.rbr.com of law, policy, economics and rumored to be preparing the leave tough battle to retain his seat. RBR RADIO technology like,Ithink, no the Commission soon to start fund- He might be lucky to have RBR's Daily Email other," he said.-JM raising for the 2002 election. Will Tristani as his opponent.-JM 9 www.rbr.com 2/26/01 RBR Furchtgott-Roth questions phone rule The FCC has affirmed two $4K Radio News fines against Infinity Broadcast- ing (N:INF) for a "Don & Mike" show segment in 1999 in which a ViacomPresident Mel heels of Jones' recently launched their Rhythmic Oldies product. woman's phone conversation was Comparing it to theirs, this is broadcast without her permis-Karmazin's right-hand man for "Body and Soul" Urban AC for- more of an R&B crossovermodel sion. The FCC rejected Infinity's more than 15 years, Suleman had mat. Consultant Don Kelly where theirs was decidedly Pop - argument that it shouldn't be held been at Infinity since 1986. The two ([Ragan] Henry -Kelly Program- responsible for the airing on built the small radio group into a ming Services) and Jones Direc- oriented. I think this is a little closer to the AMFM model that KHTK-AM Sacramento, CA, since large radio group, then expanded tor of Contemporary Program- it was owned at the time by EZ through mergers and acquisitions ming Jon Holiday are the shep- Steve Rivers had designed, but Sacramento, a subsidiary ofAmeri- to create a media empire. herds. 6-10 affiliates are expected certainly more than 250 records." can Radio Systems-a company In recent years, Suleman had at launch, including Corpus Holiday tells RBR. later merged into Infinity. The assumed responsibilities beyond Christi, TX, Muskegon, MI, Alex- Adds Kelly: "What I did, in Commission also fined the origi- his officialtitle for overseeing andria, LA and Ft. Wayne, IN. conjunction with Jon after we nating station, WJFK-FM Wash- radio and outdoor operations as The two say they used the looked over the Coleman study, ington, DC, which was and is Karmazin focused on CBS TV recent Coleman Research Study some monitors of different sta- owned by Infinity. and then Viacom's far-flung me- on Rhythmic Oldies as fodder tions, and some input from dif- More interesting, however, is dia holdings. Now he has a title for designing the new format. ferent stations, was find that the the concurring statement that reflects his actual role. In "We've got an opportunity here, really successful stations that of Commissioner Harold addition to being President and as Westwood is discontinuing seemed to have gotten beyond Furchtgott-Roth (R), whoCEO of Infinity, Suleman will questions whether the FCC has continue to be Executive VP and any business regulating the CFO of Westwood One.-JM Mo' money in Motown? broadcast of phone calls. He There is good news on the radio revenue front: Detroit says such complaints could be Arbitron flies solo 3/30 radio was able to break out the black ink for the month of better dealt with under state January. Although national business was down 21%, local privacy laws. "I believe the Com- Ceridian (N:CEN) has announced was up 14%, more than enough to offset, resulting in a 4% mission should re-examine the that Arbitron will be spun off as gain for the month. utility of rules-like this one- a separate company at the end of We have two Hungerford, Aldrin, Nichols & Carter pacing that are not based on a specific March. The split-technically a reports for the market, provided by anonymous sources. One statutory charge," Furchtgott- reverse spin to create a "new" was taken 2/4 and the other 2/18. The numbers show a mixed Roth said. He suggested that Ceridian-will have the new bag, but indicate a return to normal business conditions as the relying on state laws would put shares of the separated compa- year proceeds. Both readings showed April with slight broadcasters on the same foot- nies distributed 3/30 to share- growth, although it slipped a bit on the second report. ing as other media and that holders of record on 3/16. Word on the street is that, although Detroit was not a big eliminating such rules would As it turns out, Arbitron has dot -corn market, it is taking 40-45 days longer than last year allow the FCC to focus its re- gotten the best possible NYSE to get business on the books. If that is true, then pacing sources on enforcement of stock symbol. American Realty numbers will continue to show improvement the closer we "those areas squarely and solely Trust vacated "ARB" in August get to run time for the ads. The much -mentioned slowdown within the FCC's jurisdiction." after merging with National Realty in domestic auto ad spending is certainly being felt in RBR observation: Would LP to become American Realty Detroit, but foreign manufacturers are picking up some broadcasters (and nationwide Investors (N:ARL). Arbitron will slack, and local dealers still have to move product regardless syndicators in particular) really trade as ARB on the Big Board, of the national posture of their company. The bottom line? want to have to deal with 50 while the "new" Ceridian will re- Comps, here, are doable. rules dealing with broadcasting claim the CEN symhol.-JM telephone calls, rather than one On the books Local National Total nationwide rule? --TM JRN launching Rhythmic January +14% -21% +4% Oldies format as of 2/4/01 Suleman now CEO _70/0 Jones Radio Network is unveil- February +10/0 -24% at Infinity ing a new Rhythmic Oldies for- March -6°/0 -20% -10% With the completion of Infinity's mat, "Rhythmic Oldies,"2/19 April +7% _90/0 +3% merger into Viacom (see page that includes a bevy of talent as of 2/18/01 13). Farid Suleman has gotten from across the country, includ- _50/0 February +-10/0 -19% new titles-President and CEO. ing: Banana Joe Montione _90/0 He had formerly been Execu- (KTXQ-FM Dallas); Kathy March -23% -12% tive VP and CFO of Infinity Aparo (WOCL-FM Orlando) and April +8% -17% +10/0 when its stock traded separately Jean Ross (WXYV-FM Balti- Source: Hungerford, Aldrin, Nichols & Carter, CPA's from Viacom. more). The launch comes on the

2/26/01 RBR www.rbr.com 3 the initial phase of 'Oh, wow, we haven't heard this music in a long time,' seemed to have embraced the R&B and Radio News Classic R&B side more than some of the other stations. So therefore, we definitely are going to be a crossover dance mind that the sale in this case showing that the Binghamton we may never know if the and Classic R&B type of radio is a single AM in Binghamton, market cannot support three cementing of a duopoly in station."-CM NY, WINR, for $1M. competitors, so the license Binghamton was inevitable, or Tristani is upset that buyer transfer to Clear Channel was simply another case of regula- Clear Channel (N:CCU) and the only realistic option. Or tory malfeasance by the FCC," Tristani rants again one other group, Citadel Com- consider whether the station Tristani wrote. Commissioner Gloria Tristani munications (O:CITC), now at issue was financially un- RBR observation: Since (D) is again railing at the FCC's control 91.2% of the revenues likely to survive, and whether when was abiding by the laws of Mass Media Bureau for ap- in market #170. "Instead ofthe current owner attempted the United States "regulatory proving a station sale that she simply granting the licenseto find other buyers? To my malfeasance?" For a closer look thinks results in too much rev- transfer, I would have consid- knowledge, such questions at competition in the Binghamton enue concentration. Neverered other options-e.g.,a were never asked. As a result, market, see page 8.

Group heads see life us-local and national-basi- business is illusory." revenge' here in the first quar- after tough comps cally compete with each other Rather than worrying about ter. A year ago, pricing was for our inventory. In times like any new media threats, the just incredibly high and de- 2001 may not be the best year this-and this will probablygroup heads this year are farmand on inventory put radio's ever gone through, but come as no surprise to our na- more focused on where the through some unrealistic price unless the US economy really tional reps-we tend to direct economy is heading. increases. So the buyers right gets sick, radio group heads our efforts locally, to things like "As we talk to our advertis- now are sitting back and try- are still optimistic that this direct business, events and pro- ers, we do not believe we're in ing to let everybody negotiate will be an up year-albeit, motions. We know that well. a recession at this point," said with them. By and large, with most of the growth com- We react quickly, efficiently and Bob Neil, CEO, Cox Radio though, I see our inventory ing in the second half. cost effectively with our adver- (N:CXR). "If you listen to what being used-there's just some "There isn't one major me- tisers.It works for us and it [Alan] Greenspan said [to Con- buyers' revenge on the rates dium that's going to thrive in works for them," Kennedy said. gress], he pretty much said the at this point." 2001-the same way that it "None of us are going to be same thing. As we talk to our "In terms of pricing-no did in 2000-but there is a lot immune," offeredJeff advertisers in the local markets, question, it's below the fever - of evidence to suggest that .14 Smulyan, CEO, Emmis Com- we don't sense that. In a num- pitched levels of the boom munications (O:EMMS). "I think period," said Susquehanna's radio will perform better [than Kennedy. "Don't forget, we other sectors]." are in the first quarter here. What a difference a year The pricing platform basically makes, he reminded the Wall remains solid. We're stillat Street audience. "While we had levels above where we were all this dot-com spending last before that boom period last year, last year at this time there year. So when you consider was also talk that our industry that radio's revenues have been was pretty much relegated to doubled since '93,I would dinosaur status-Internet-only sure hate to think that people audio was going to wipe us out. are being confused by the per- If it didn't, low -power FM was centages that they're seeing in going to wipe us out. Low - the tough comps with 2000." power FM pretty much got killed Tough comps. That term Kennedy Smulyan in Congress and Internet -only was heard repeatedly through- radio's going to fare better audio is nearly a thing of the ber of our local markets, we're out the discussion. than most, if not all, other past," Smulyan chuckled. "While actually seeing pretty good lo- "No mistake, comps right media," David Kennedy, clearly we think that there are cal revenue growth. The area now are tough," said Kennedy. President, Susquehanna Ra- benefits that we can gain for our that's the trouble spot now is "When you look at numbers dio, said in a roundtable dis- listeners and our advertisers by national-and that makes sense like New York, March last cussion for investors, arranged streaming our audio, the notion because of the difficult comps year was up 68%, San Diego by analyst Jim Boyle of First that a whole new technologyfrom quarters one and two of was up 72%-how do you Union Securities. "The two independent of our medium will last year. We're seeing a little bit match numbers like that? Few, major sources of revenue for spring up and wipe out ourof what I would call 'buyers' if any, other industries face

4 www.rbr.com 2/26/01 RBR OneOnOne gets bigger Chicago coverage OneOnOne Sports Network, re- Radio News® cently acquired by The Sporting News(R131? 12/4, p.12) for $100M, is getting a much broader audience aired name to "The Sporting News Radio $6K fine to $4K-essentially af- so the offending call never in Chicago on WYPA-AM 820 be- The FCC Network" in late March. ter El Mundo withdrew part ofon the second station. ginning 3/1. The clearance comes accepted the revised plea and WJKL will also switch (3/1) its guilty plea. The company as the Catholic Radio Network sold reduced the fine to the base to Christian "K -Love," produced had been fined for airing a phone thestationtoNewsWeb. amount of $4K.-JM conversation without permission OneOnOne was cleared on subur- by Sacramento -based Educa- ban rimshotter WJKL-FM Elgin, IL. tional Media Foundation.-CM 5/8/00 on both WKAQ-AM San The move puts OneOnOne in a Juan, PR and WUKQ-AM Ponce, Guild is golden much better competitive position Fine reduced in PR. El Mundo officials later real- Interep (O:IREP) CEO Ralph ized that the company's LMA of Guild has been named this against WMVP-AM (ABC/ESPN Puerto Rico Radio) and WSCR-AM (Infinity/ WUKQ (whichitlater pur- year's recipient of The Interna- CBS Radio Sports). OneOnOne El Mundo Broadcasting Corp. chased) didn't begin until 5/10/ tional Radio and Television Sports is expected to change its has gotten the FCC to reduce a 00, two days after the violation, Society's Gold Medal. The award

comps like that. We see that tactics are going to be used- ing to go into the month at 80% evaporated. It seems, from talk- coming to an end sometime discount advertising, rebates, of budget level and more money ing to my TV counterpart, it's hit near the end of second quar- low interest rates, that sort ofis being added as the month television worse than it has ra- ter." thing. Anything that will move goes on than was a year ago." dio in our case, at this point. He remains optimistic. "As that inventory they've been pil- "We expected it to be a tough Generally, if you look across the we talk with the advertisers-ing up. This is really going to first half," said Alfred Liggins, category, automotive dealers are within our company and as I begin breaking over the next CEO, Radio One. "I'm seeingcontinuing to spend. Interest talk with other people in the several weeks. That's prettythe large markets get hit par- rate reductions bode well." business-we're actually encouraging for us." ticularly hard." Although Radio According to Smulyan, the pretty encouraged by what "I was here in 1991, which One operates mostly in large most important thing to look we hear. There seems to be no was the worst of times that markets, Liggins says his group at is the long-term battle for genuine fear or concern about radio had seen, and radio weath- is pacing toward growth in the market share-a battle that what's going on, but there is ered that storm well" noted high single digits for Q1 and Q2 radio is winning. some confusion-a little bit ofTerry Jacobs, CEO, Regent because it has so many recently - "In five years, newspaper ad 'who can hold their breath the Communications (O:RGCI), acquired stick properties. share is down almost four points, longest' thrown in there. They "and I'm confident we'll emerge "In terms of categories we while radio is up three. If you go from this slowdown a much back a little further, we're up stronger medium as we did from more than that-newspaper's that period." Regent's medium down from that. And I think the and small markets, he noted, most important thing about this are more "recession -resistant" business-and it's been height- because a larger percentage of ened because of consolidation, their revenues come from local with more professional sellers, ad sales, rather than national more focused companies-is spot. "Unlike the larger mar- that we focus on the fundamen- kets, our markets never received tal weakness of newspapers. any of the dot-com advertising That's where the dollars are in dollars," he said. That's saved these markets and that's where Regent from those tough comps our opportunity lies. Newspa- which the large market groups Jacobs pers even today have 44% of all Neil are having to deal with. dollars spent-we're at 16%. "Pacings, because so much see weakening in the first quar- And yet most of the retailers know they can only keep their business was placed in advance ter, automotive is obviously a who spend all of those dollars in powder dry for so long before a year ago, really don't have a very big one that's weakening. newspapers target demograph- their competitors make alot of relevance," Neil said. Telecommunications and, of ics that newspapers don't reach move-and for them, market "We're seeing as we go into a course, dot -corn advertiging," anymore." Smulyan believes his share is the name of the game. month, where a year ago we Liggins offered. company and the other radio They've got to maintainit. might have been in excess of "Definitely, I'd put itin the groups will continue to take They've got campaigns ready 100% of our budget, we're see- 'cautious' category, in terms of those dollars away from news- to go, apparently. We're hear- ing a more typical pattern de- their spending," Cox's Neil said of papers, making radio a good ing some new strategies and velop now where you're start - automotive advertising. "It's not long-term investment.-JM

2/26/01 RBR www.rbr.com 5 to honor significant cAreer-long contributions to the industry went to Mel Karmazin yew .ind previously to) such luniir Radio Newg ucille Ball. Walterronkiie and Oprali Winfrey. Guild will receive the IRIS Gold Medal 3/21 at a black tie gala :it the Waldorf- disputes and injunctions from the past few montl is. The call \\ "liardDRI i mil] Jones Rildid Astoria in NewOrk.-IM record labels for copyright in- the first of Coleman's "Insiglitscall" Network (2/19). USRN assumes fringement, Napster offered $1B series and featured findings of the all distribution, production and to the labels suing the company. '80s Insights report and a Q&A affiliate and advertiser saleslor Microsoft appeal Napster CEO Hank Barry says period with participants. the show. Hosted by Lou to be heard that sum will be broken clown to The full'80s Insights report, Brutus(WRQX-FM Chicago), Building on the victory won in $150M per year to the big five, available for download hardDRIVE features previews December, with same -clay au- with another $50M going to other (www.ColemanInsights.com), in- and interviews of new bands in the Rock and Alternative Rock dio broadcasts of Supreme Court labels. The record companies cludes an analysis of Arbitron and arguments (in the Florida elec- immediately denounced the of- music monitor data for 20 '80s sta- genres. USRN picks up approxi- tion case), broadcasters will be fer as inadequate. tions in America's 54 largest radio mately 60 hardDRIVE affiliates. The show was originally with getting live audio from a federal In its latest offer du jour, Napster markets. Among the findings: appeals court this week. unveiled a plan to charge a $5.95- The format's primary sales SW Networks. USRN had wanted it even back then. "A.s a com- RTNDA is praising the US $9.95 fee for service. The monthly demo is Adults 18-49, with the pany, we've built ourselves on Court of Appeals in Washing- fee would include unlimited 25-34 age cell serving asits serving niches, from House of ton, DC for agreeing to provide dowloading. Additional fees may "focal point." Blues Radio Hour to the Jazz a live pool feed of arguments in be charged for burning songs Men and women account for onto CD, the company said. shows we do to the Christian the antitrust appeal of Microsoft roughly equal portions of the show. It's Hard Rock program- (O:MSFT). The 2/26-27 audio Meanwhile, Senate Judiciary format's audience. ming. We didn't have something feed will be distributed by ABC Committee Chairman Orrin The airing of the format on Hatch (R -UT) said 2/14 he would many weak signals is limiting its servicing that," USRN VP Pro- News Radio's WAND system and gramming Andy Denemark tells by the network TV pool. The hold hearings to look into the 2/ performance. RBR. "We actually tried to acquire first -ever live audio from the 12 9th US Circuit Court of Ap- On average, '80s stations have it when SW got rid of their pro- federal appeals court will also peals decision (RBR 2/19, p.4) not maintained the audience upholding the RIAA injunction shares they achieved in their gramming.It ended up with be streamed on the Internet at MediaAmerica and then Jones. c-span.org, abcnews.com and against Napster for copyright debut ratings periods. They called us to ask if we wanted likely other places as well.-JM infringement. Hatch is concerned Most stations in the format are that the decision, which will ul- taking very similar music ap- it-I guess it don't fit into what timately shut Napster down as a proaches, with Flashback and they're doing right now." Napster unveils bevvy free music file sharing service, Rock material making up the hardDRIVE writer/producer of compromises will just send users elsewhere to majority of their music mixes. Roxy Myzal also joins USRN as other similar and harder to con- "It should be stressed that this Executive Producer, Rock Pro- Napster spent most of last week trolsites. "I guess my feeling is a very early look at the format, gramming. Denemark adds that making offers and compromises about this 9th Circuit decision is as more than half of the stations Myzal will oversee more USRN to the record industry in an at- a gnawing concern that this legal we looked at weren't even in the Rock programming acquisitions tempt to settle the whirlwind of victory for the record labels may format until midway through in the near term:"Ithink legal problems it has encoun- prove more pyretic and short- Arbitron's Fall 2000 survey pe- thatthiskindof niche tered since the recent 9th US sighted froth a policy perspec- riod," said Coleman VP Warren programming...you may see Circuit Court of Appeals deci- tive," Hatch said in his 2/14 Kurtzman. "However, we be- some other announcements sion (RBR 2/19, p.4) upholding Senate floor speech. lieve that by tracking these sta- pretty soon-we're doing even an injunction for copyright in- Barry applauded Hatch and tions early on, we can have an more of it."-CM fringement. Napster announced said he would work with the objective basis for assessing the format's performance in the fu- it is making progress on a new Judiciary Committee, record part- Clear Channel 'technology that will enable aner Bertelsmann AG and the ture. We also believe that by new membership -based business RIAA to arrive at an agreement identifying what makes some to consolidate 11 model that it hopes will be sup- that can keep Napster alive while stations succeed and what makes San Diego stations some fail, we can develop stron- ported by the RIAA and music benefiting all concerned.-CM Maybe the biggest yet-Clear Chan- ger programming and marketing industry. Label partner nel is embarking on an 11 -station Bertelsmann AG's subsidiary strategies for '80s stations."-CM Coleman releases '80s consolidation project for its San Digital World Services is the tech- Diego stations. The stations are Insights Report nology provider, working with United Stations acquires currently located in facilities across Napster for months now on the Nearly 100 radio execs partici- "hardDRIVE" from JRN; the area and are all headed for one new system that enables "secure pated2/15inColeman building that will include all new more to come administration of transferred files Research's industry -wide con- equipment and an ampitheater. within a peer to peer structure." ference call on '80s format, launched United Stations Radio Networks The project is expected to be com- In exchange for settling legal on dozens of radio stations within has acquired weekly long -form pleted in March.-CM www.rbr.com 2/26/01 RBR 1 GREAT LOCAL REPS AND THE RADIO -EYE By Franklin Raff

After advertising legend David Ogilvy got the Rolls-Royce account, most important sales calls he asks about wholesalers, suppli- he emerged from three weeks of the most remarkable and fasci- nating images for their films. makes, he is a credit to our indus- ers, distributors, and companyhis- research and ideation with a few try and again, we call him - a tory. He asks: Why would Ibuy simple facts. One of these facts We, and our best sales reps, seek for our own careers and for radio in Radiok. As a salesman he has from you, and not your competi- became his famous headline: "At 60 general what Vertov sought for cin- overcome the overwhelming ten- tor? He notes potential marketing miles an hour, the loudest noise in dency to be self-centered. He bridges such as a peculiar loca- the cabin of this new Rolls-Royce ema: independence, originality, and trustworthiness. In our case, we understands that the fundamen- tion. He studies trade magazines, comes from the electric clock." That tal aim of our business is not to but also asks about a least -favorite insight, retained from the wealth of seek independence from the com- sell to our clients, but to sell for vendor. In his trust -building study, knowledge he collected from jour- mercial reign of other advertising media. We seek original ways to them. He spearheads creative be- the Radiok has the gentle inquisi- nals, factory employees - and per- cause he tiveness of a new employee sonal experience -is a principal turn listeners .1I knows his cli- Though the Radiok may not be t. reason why we still venerate the into customers. ents-and primarily driven to sell radio, you brand, forty years later.Ogilvy We want to use their clients - may find he ultimately sells more 1 once wrote:"When I advertised radio's power best. You radio, with less difficulty, than )!, Rolls-Royce, I gave the facts- no hot in an honest may call him those who measure their success air, no adjectives. [...) In every case and account- i an ear -leaser in time -orders. Radiok thinking is sales went up dramatically - on able manner. inasmuch as profoundly service -oriented. Ev- 1, peppercorn budgets." Though We need con- you may call ery local business has a compel- Ogilvy was an agency man, his fact- sistent sales increases, and Dziga Vertov Ernest ling and persuasive story. The : finding, documentary abilities were Hemmingway Radiok finds it. And with the Ra- akin to those that distinguish a few frankly, we a typist. Radioks understand that dio listener, as with our own pros- extraordinary radio reps. For the need to find meaning in our work. Local reps our most valuable war- Radio is only a medium, that it is pects, a compelling story, told sake of analysis, these exceptional useless and possibly detrimental creatively, commands more at- qualities deserve an equally unique riors - may come closer to achieving as an advertising tool without tention and sells more effectively if somewhat obscure - name: Ra- these objectives by employing Ra- dio -Eye. Radio -Eye can be thought compelling commercial content. than any cliched pitch, transpar- dio -Eye. Claude C. Hopkins, one of the ent call -to -action, or canned close. Not long after the Russian revo- of as an objective agent - an imagi- founding fathers of modem ad- Perhaps influenced by a popu- lution of 1917, leaders of the nary movie camera if you will - vertising, believed "every ad lar song in the fledgling days of burgeoning soviet filmmaking in- which emanates from the mind of should tell a story." Radio's inti- his now renowned agency, Leo dustry began plotting revolutions the radio sales rep. It arises from his macy ensures its power in this Burnett likened the creative pro- of their own. Among them was desire to sell for his clients, and its regard. But our local reps must cess to "trying to get hold of - for Dziga Vertov, the founder of the contribution to his career can be know enough to tell the story. a moment - one of those hot, Kino-Eye, or "Cinema -Eye" move- almost revolutionary unreachable stars." For the Radiok, ment in filmmaking. Adherents Good local reps take pleasure Radioks know why their listeners it is reaching for the stars while of Kino-Eye, or Kinoks, rejected in using both sides of their brains. should buy from their clients. Like mining for facts, and holding a fictional and narrative films, They like to think creatively, and Vertov's movie -camera, they have business conversation: a feat that which, they felt, were slaves in they like to do the numbers. Yet, documented the facts. They do leaves little room for minor closes. both form and content to theater because they have such singu- not crawl from door to door sniff- That, perhaps, is why Radioks and literature.In their place, larly extensive personal contact ing for the 'broken bones' that will Vertov crafted a purely docu- with our clients' justify their seem to be a little more trustwor- thy, why they seem to work a little mentary cinema whose purpose businesses, next solu- was to monitor and record in they have an- tion -ori- harder, whyif nurtured - they minute detail the facts of every- other distinctive ented pro- ultimately earn higher billings, sign bigger clients (and agencies), and day life. According to Vertov and ability. Radio posal. the Kinoks, it was only through reps have the Rather, the keep them. the use of the movie-camerais unique poten- Radiok en- If you don't have a Radiok, you might wish to grow your own. If unique attribute,itsability to tial to lift dusty gages his document lifein motion, that layers of stan- prospects you find he doesn't care much for cash prizes, cost -per -points, or the cinema would emancipate itself dard business Franklin Raff and clients from the tradition of dramatic and advertising notasa company Christmas party, take it as and literary fiction. Vertov glori- practice to uncover and docu- hungry closer would, but objec- a good sign. Let him slip for a month fied the movie camera itself, the ment striking and extraordinary tively, and in a documentary fash- or two if he's prospecting high but Kino-Eye, which he described as facts. The power of a great rep is ion. Persistence comes naturally: not meeting goals. You'll notice an intrepid and omniscient agent. the power of applied knowledge. it is necessary, and usually wel- hers laid out his clientsi creative for From vast banks of documentary If a local rep believes that his comed. The Radiok seeks to know the whole year: that's Radio -Eye at footage, Vertov's Kinoks retained clients' commercials constitute the the character of a business. He work. He might come in dead last fortheHolidayGreetings telemarketing promotion, but heill upsell and secure next years'annu- als by the end of Q3. Maybe he Radio AdBiz shies away from carpet -bomb cold- calling, and sometimes he places unfair demands on the production guy. Keep him all the same. Chances are, if you lose him, you'll lose his RBR News Analysis clients, too. Let him stay late. When his advertisers buy big on compet- Should Tristani fine-tune Binghamton? ing stations and run your creative, hers probably advised it. You'll get FCC Commissioner Gloria Tristani is opposed to a $1M deal which would send yours, and more of it, and more Binghamton, NY's WINR-AM from Titus Broadcasting to Clear Channel (N:CCU) (RBR 9/18/ consistently. Keep a growing Radiok 00, p.25). In a market where Clear Channel and Citadel (O:CITC) dominate, she thinks this away from blitz marketing pack- will be the death -knell of competition in the market, making it more unlikely that there will ages, fire -sales, free remotes, added be a third radio competitor. value gimmicks, and middle -man- Here is the only fact one needs to know. The signal of WINR, as of 1/1/97, was overlapped agers: in this regard the Radiok is a by 18 other stations. That puts it squarely in the six -station cluster tier according to the law canary in a coal mine. They'll kill of the land, without any engineering sleight-of-hand. That is the end of it,as far as the FCC him long before they kill us. should be concerned. We are commonly preoccu- Ms. Tristani should not be worried about this in any case. As the chart below shows, there are pied with the question of how ample outlets for advertisers to choose from. Besides, according to the most recent infowe have Radio can claim a greater share of available, WINR accounts for only 2.2% of the market's radio revenue, and with TV andnewspaper the wealth bestowed on other considered, it accounts for less than 0.5% of market revenue. Hardly a make -or -break station under media. This can be achieved, on any circumstances. a local level, by emphasizing in- What's necessary for Tristani's fantasy of a third major radio operator to become reality? First, timacy, intelligence, indepen- the WINR deal must be undone, and then four independent owners must come together somehow dence, and creativity: the basic and merge into one company. Its total revenues would come in just behind Smith's TV station attributes of the Radiok. Some (which is an LPTV, by the way, the best NBC can do for a Binghamton affiliate). short-term thinkers are inclined However, it is ludicrous to deny Titus Broadcasting the opportunity to liquidate its assets via to believe that local creative is the legal sale of its station, in a market full of competitors, because it is just possible, if all the relatively unimportant. They can planets line up and the correct tarot card is drawn, that media ownership in the market will be identified by their enthusiastic conform to one commissioner's ideal. apologies: "it's important to get The newspaper estimate below is extrapolated from Duncan's Radio Market Guide-it your name out there", "we've got is probably far below the Binghamton Press & Sun -Bulletin's actual revenue. Other station a new promotion for your mar- revenues are from BIA's Investing in Radio Market Report 2000 and Investing in Television Market keting director, whatever his Report 2000. Radio ratings are from Arbitron, and station lineups are from the RBR Source Guide name is", -we're number one in & Directory database. so-and-so", etc. The Radiok is a different animal. He does not Estimated media revenues think of his work as a -number, game", which is why his client do not feel like numbers. H, Owner Nwsp AM FM TV Est 99 Rev Fa99 Fa00 consistently drives his client business, because he consistenth Gannett 1 0 0 0 S20.000.000 finds interesting and truthful rea Gateway 0 0 0 1 $10.000.000 sons for his listeners to buy. H. upsells with good reason, and Citadel 0 2 3 0 $6.500.000 40.0 33.1 when appropriate, he guides or Northwest 0 0 0 1 $3.500.000 ders and creative in other media He is anchored, deeply and krt. Clear Chan 0 1 4 0 $2.575.000 30.8 37.3 vocably. in the sales efforts of hi, Ackerley 0 0 0 1 $2.500.000 clients. They are, after all.hi - employers. In the end. a Radio{. Smith 0 0 0 1 $1,200.000 the Rolls-Royce of radio reps WEBO 0 0 1 0 $450.000 3.3 4.7 merely uses us. and the mediun of radio, as a means to multipl \ WATS 0 1 1 0 $300.000 0.0 1.3 his own sales efforts. Titus 0 1 0 0 $225,000 3.3 4.0 Franklin Raff is the President Creative Director of Raff Radi, Equinox 0 0 1 0 $150,000 2.3 1.7 Marketing Group, Inc. He ma's Sources: BIA, Arbitron, Duncan, RBR Source Guide he reached at (703) 925- 5921 L_ 8 Bigger and brighter than ever: Programming forProfit Paul Allen on CRB and the 32nd Annual CRS PaulAllen is Country Radio Broad - Tell us about CRB and the bottom. So the stronger acts seem So any meal or food atthat :asters' (CRB) Executive Director. yearly CRS seminar. to be getting stronger and there panel session will be using We caught up with him in the Country Radio Broadcasters ini- seems to be less and less opportu- all plastic utensils? middle of finalizing last-minute tially began as the Country Radio nity for the newer acts to sell as Ha, ha, ha...Guaranteed-there details for the 32nd Annual Coun- Seminar, intending to bring Coun- much as some of the others. will be no food fights! ty Radio Seminar (CRS) inNash- try radio and Country music to- ville: February 28 -March 3. The gether for a series of brief business As a format, Country is still What future goals is CRB event draws not only Country's meetings in an effort to promote at a plateau while radio has focused on? biggest stars, but radio's too.-CM the format and to strengthen the seen 12% growth over the last We want to provide a forum that format. It gave both a chance to two years. What are your com- will let our program supplier, interact and to share ideas and ments there? which is the Country music in- find ways to strengthen. That be- You're right-radio is doing ex- dustry, provide a forum for this gan in 1970. Now, 32 years later, tremely well. This year it became quasi -partnership to talk issues that has grown from a handful of nearly a $20B industry, which is and to discuss ways that we can about 60 or 70 people who were huge. Country as a format still grow our audience share. The at that first Country Radio Seminar remains extremely strong so far four days we spend here in Nash- up to around 2,500 people who as the number of stations that ville is a great chance for the will be here in Nashville. program it. Of the 11,000 com- networking discussion and to Country Radio Broadcasters by mercial radio stations, 20% of provide the forum to allow both definition is an organization that those still remain as Country. of those two industries to find educates people-folks in the Country's gross audience shares ways to grow and to strengthen music business and the radio aren't in the 12's and 13's that we each of their goals. business-with an eye towards were experiencing back in the strengthening the Country radio mid 90s. It's cut down and held CRB does several things to format as a major entertainment just under 9% nationally. As a recognize local radio stations medium. That's part of what we product of consolidation, radio of all market sizes-the Radio Tell us your history withdo. The other part is provide finds itself niching smaller and Humanitarian Award, the Ra- the industry. scholarships for people who are smaller to where the pieces of the dio Promotional Award and Some years ago, I was trained by studying radio. At the end of this formats showing a four and five the Air Personality Award. Tell I., the military to manage a radioand year, CRB will have given over share are great in a lot of markets. us how each one is awarded. TV station for American Forces $250K in scholarships to deserv- Among the things that we hold as Radio, which is kind of what So having a nine share in some ing young people to further their markets is not too bad. tenets of our organization is that sparked my interest in being a part study in the profession of radio. we hold as high ideals those of the radio business itself. I went What can you tell us about stations that are the most profes- into commercial radio for a while, We understand Country mu- the present state of Country- sional and we try to bring that to

, programming radio, and then pro - sic recordings were down last the pros and the cons that will our organization as well. We also I; grammed an NBC TV affiliate in year. What do you hear was be discussed at the CRS panels? recognize those radio stations that i West Virginia.I then moved to the reason? Is the format too Pop or is the provide for a better quality of life 1. Nashville and went into govern- Year-end sales for Country as a for everybody, and that is the ment here. After that I bought a format too Country? We have a genre of music last year was down heart of our Humanitarian Award. radio station. There I learned that panel session set aside just for by about 3-4%, while the majority Each year we award a Radio seven -day -a -week management of that discussion. That was a very of recorded music was up by about Humanitarian Award to a large, a small -market radio station was popular session last year and still medium and small market station way more than what I was ready 4-5%. What I hear here in Nashville a concern of a lot of people. The is, that has done the most, based on for. So after a couple of years of in part, some of the reason moderator for that session is go- Country sales are down is because their market sizes, to add to the that, I sold my property to a music ing to be TV's Judge Mills Lane. industry group here in Nashville two or three of the marquis acts of So while it's a very serious sub- quality of the life experience in and was invited back into govern- the industry did not have new ject, we asked Judge Lane to their communities of license. ment to manage campaigns for albums out last year, for example come in and be the moderator to The other thing we like to some candidates and managed Garth Brooks and Shania Twain. kind of put a light side to it so that recognize is those that are the some political issues for folks- Something else that the people folks don't take it so seriously that most creative in getting into their and almost had a full career there. who analyze this more than I do tell it becomes an emotional thing. communities through radio sta- And when that came to an end, the me is that it appears Country acts So Judge Lane will do a great job tion promotions. I think one key folks at Country Radio Broadcast- that appear toward the top of the of keeping things in check, but way to see the level of profes- ers invited me to be their Executive chart most frequently are those that he'll also do a great job of making sionalism at a radio station is to Director and I've been here going are selling more individual units sure that he encourages the de- see how creative the folks at the on six years now. than those that are towards the bate that's necessary. station are to deliver great pro - U26/01 RBR www.rbr.com 9 motions that help to add to the cume as well as impacting the community. So we award Pro- motions Awards for small, me- Programming for Profit dium and large markets. And we also began two years ago to recognize air personalities that are unique to the Country radio other organization people like The list is still being compiled, the radio -record business, and format. And so this is our second Shane Media. The BEA screens but it would be safe to say if you not necessarily specific to our year awarding air personalities of candidates for us and recommends went to the charts, probably 80%- own format. small, medium and large markets. them for award of $3,000 annual 90% of the people that are in the scholarships, which is a nice amount Country Top 50 are going to be in Give us a run-down of some Tell us about the CRB Coun- of money for juniors and seniors the artist taping session. of this year's CRS events. try Music Hall of Fame. to help finish up their work in Yes, before Sam Donaldson, we There are two halls of fame, actu- radio broadcasting. Wow. You see so many have Billy Gilman, the 12 -year- ally. There's the Country Music DJ artists in Country dedicated old singing sensation from Sony Hall of Fame which has been Tell us about the CRS semi- to the format and industry's Music. He will be singing the na- around since the early 70s. It was a nar later this month. success. You don't see that tional anthem for us. And following foundation operated by another This CRS seminar holds itself out with other formats to this that, Clint Black will be around to company, and four years ago CRB to be probably one of the biggest degree. Why? present our Artist Humanitarian took over the responsibilities of ones on record. Overall, we will There's no other radio conven- Award-to a Country artist who that foundation and now it is a part have 30 sessions, beginning tion that can draw genre -specific has yet to be made public. We of what we do. The Country Music Thursday morning, 3/1, running numbers of radio pros and music know who he is, but we won't Hall of Fame recognizes announc- through the close of the day pros as the CRS. I'm not saying know until that morning publicly. ers who have been on the air for at Saturday 3/3. The sessions are that to take any credit for it- At noon on Thursday, Trisha least 25 years in the Country format ranging in topics from Too Pop/ somebody a lot smarter than me Yearwood performs on the and who have made a significant Too Country to the state of the created this organization a lot of RMCA-sponsored luncheon. Also contribution towards the growth of Touring industry, which is good years ago. I'm kind of the care- Gary Allen on Friday; At noon Country Music as an artform. Each in some respects for radio people taker for it in my time here. it's just Garth Brooks will be perform- year we'll induct 2-4 announcers at because many of the radio folks phenomenal. You have the larg- ing at the ASCAP luncheon for us; a formal ceremony held here in partner with some of the acts that est folks in the industry participate On Saturday at noon, the Country Nashville each Summer. At the are touring to have concerts that and showcase, as well as a bunch Music Association sponsors our same time, we will recognize a are made in association with heard of who luncheon and what they're going Country artist for having made radio station itself. will be in their own time, become to do is celebrate 33 years of the significant contributions to Coun- Our keynote this year is going major acts. The event itself almost CMA Song of the Year. They plan try music over the years and also to be Sam Donaldson from ABC takes on a life of its own. People to put video highlights of some of recognize somebody in the broad- News. He will speak to us for look forward to it, it's almost like the songs and then the person cast industry with our CRB about an hour, and my under- a homecoming for a lot of people. that sang those songs will come President's Award. At our website standing is that his message to out and sing them. So there will www.crb.org, you can go to the those of us in the radio broadcast- Describe the "Superfaces be perhaps a half dozen perfor- Hall of Fame web page and find a ing industry is very much like a Show." Is it with Travis Tritt mances by people over the last 33 photograph and bio on each ofmentor. Other sessions include this year? years who actually had the CMA our Hall of Fame members, and looking at how to better mesh the He is our Superface this year, and song of the year. Saturday after- for, about half of them, we also programmer with the promotions last year we had Alan Jackson. noon, we have a "guitar pull," have airchecks. side of the record industry. There On Wednesday at CRS, we'll have where a songwriter sitsin an sometimes seems to be a collision the artists taping session in the acoustic setting and plays songs Tell us about the CRB Schol- between what the record industry afternoon and then that evening, that he or she has written. We arship foundation with the sees as a viable product vs. what we'll have a welcome reception, have four great songwriters show- NAB, and the silent auction the programmers see. which is the first time a lot of casing their talents, including Pam that's held for it. We're also going to have ses- these folks have seen each other Tills and Keith Urban. Our scholarship program, by the sions that look toward satellite ra- in a year. We'll have dinner pro- And to close out or convention time we finish the end of this year, dio, with folks from XM and Sirius; vided by the Country Academy Saturday night, we have our "New will have awarded nearly $250K in folks from the world wide web to of Music and by USRN and Travis Faces" show, the 32nd presenta- scholarships over the last 30 years. talk about non -terrestrial broadcast- Tritt will sing for us. tion. It begins with a formal sit- But this year, we stepped up the ing; research presentations from down dinner and leads into a pace of our award to over $40K. Arbitron, collective contesting, man- What stars will be present two-hour showcase of these acts We're awarding several thousand agement sessions and much more. this year at the panels? which will include Phil Vassar. dollars to some local universities in Loretta Lynn, Brad Paisley, Sara Evans, Trick Pony, The Tennessee and 10 scholarships Tell us about the artists tap- Clint Black. Colin Ray, BillyClark Family Experience and through the BEA, which is an arm ing sessions for stations. Who Ray Cyrus-those are just some. Chris Cagle. of the NAB. It's an independent is doing it this year and how Our session panelists are hands So, a lot of information, a lot of organization that awards scholar- many stations typically get IDs down some of the best people talent and a lot of fun through the ships for the NAB, as well as for and liners done? that you will find anywhere in entire week. 10 www.rbr.com 2/26/ ;tation: WTEM-AM 4oniker: "SportsTalk 980" :requency: 980 kHz Web adclress:SportsTalk980.com Station Profiles 3ity of License: Washington, DC vlarket served: Washington, DC by Carl Marcucci 'ower/antenna height: basketball.Although we do Roast.The last two years, & Breaking Sports News." We 10,000 watts day/5,000 watts night not broadcast Washingtonwe've roasted Don Imus anddo our best to keep the con- Format: Sports Talk Dan Rather. Attendees have tent localized so we can offer )wner: Clear Channel Corn- Redskins games, we have built our Skins fan base by creating included John McCain, unique information not found nunications award winning pre and postJamesCarvell, Alan on the national sports sites. 21M: Jim Weiskopf-Station Mgr., game shows. Greenspan, Ben Bradlee, Sportstalk980.com has had 3ennett Zier-Market EVP Andrea Mitchell and many afull-time webmaster for Dps Dir: Tod Castleberry We have several unique Our "Sports of the most influential people nearly two years now. We've Market Dir: Mark Lapidus shows on 980. Reporters" show features lo- in Washington. been streaming audio since iM: Steve Brennan cal and national sports jour- the beginning with the com- IlnternetContentMgr: Matt Engel Tell us about your local ad-pany that evolved into litreaming provider: Yahoo! nalists from print and broadcast. The show airs weekdaysvertiser base. yahoo.com.Last year, we Broadcast from 5p to 7p and is hosted by There are two revenue even carried The Ken Beatrice Andy Pollin and Stevestreams that are unique to Show as an internet-only pro- Czaban. (Andy appears na- the Washington, DC market: gram when Ken was bumped tionally with Tony Kornheiser political issue advertising and by play-by-play. His fans and Steve fills -in for Jim Rome business -to -business advertis- loved it. regularly). These discussions ing to the high-tech commu- Now that Enigma Digital is about the hottest daily sports nity. We do very well in both part of Clear Channel, we are topics are fast -paced and in- of these areas. Automotive,poised to become one of the tense. During the NFL season financial and upscale retailleading sports web sites in from 6p -7p, we air a special are all big for us. the country. version of the program called "Redskins at Six." Last season, Who is your national repTell us about the station's im- we were the official station ofand what percent of youraging and on -air talent. Redskin's Training Camp. This advertising is national? SportsTalk 980 has made a allowed us to take the fans We had been represented byconcerted effort to be "1st behind the scenes with all the Eastman since 1992. With Clear With Scores and Breaking major players. Channel's national reorganiza- Sports News." We dominate Weiskopf tion, Eastman became the Clear the sports image in Washing- ton by providing sports up- How would you describeHow would you describe Channel's Emerald Division and your listeners? they continue to work withdates every 20 minutes. To your format and program- be true to our mission, we ming? Any unique shows? Upscale. Decision Makers. SportsTalk 980 today. About 25% They're 30-54 year old men of our business is national. interrupt talk programming (all Weiskopf) with breaking sports news SportsTalk 980 is an enter-who are affluent and highly educated. They are guys with What is the maximum num- whenever necessary. Our talk taining, informative and con- show hosts work closely with troversial talk radio station strong opinions and they love ber of spots you would run their sports. in an hour and why? our sports update anchors to with a focus on sports. Our make certain we are provid- programming is a combina- With local talk programming, Describe any local eventswe will not run more than 16 ing comprehensive coverage tion of the best available na- of the most important local tionally syndicated program- you sponsor. units an hour. The other ming and locally produced As you can imagine, we get a lot times on the station are dic- and national stories of the sports/talk shows. Most im-of requests to sponsor charity tated by our syndicatedday. 980's imaging is edgy, portantly, we provide our lis- sporting events. We're involved shows and play-by-play spot topical, and always consis- teners the Sports Updates they with more than 10 charity golfload. We look for everytent with our position. crave, every 20 minutes. events each year. The biggest of opportunity to give our lis- Additionally, we carry many these eventsis "The Bobby tener an extended uninter-What do you think about play-by-playbroadcasts. Mitchell Hall of Fame Tourna- rupted listening experience. your station adding a digi- SportsTalk 980 is the home of ment" which raises over $250K tal broadcast signal, should the Baltimore Orioles for the each year for Leukemia. This Describe your website and the FCC approve it? Washington D.C. market; The year will be our 10th year spon- streaming strategy. I am excited about anything we Washington Capitals; The soring the event. Sportstalk980.com was one of can do as an industry to en- Washington Wizards; Univer- SportsTalk 980 isalso athe first sports radio sites in hance the listening experience. sity of Maryland football; major partner for the Spinathe world. The whole site is If the FCC approves IBOC and Georgetown University basket- Bifida Association ofset-up to be true to our mis- the receivers make it to market, ball; and UVA football andAmerica's Annual Celebrity sion of being "1st With Scores we are all winners! !/26/01 RBR www rbr com 11 KIIS is tops BIA agrees with Duncan's American Radio that KIIS-FM Mediaarkets a One',TTM Los Angeles was the nation's top -billing radio station in 2000. by Jack Messmer They even agree on the fig- ure-$65.5M. The rankings Kansas City move -in joins Copisidas will program the Mike Bergner, Bergner Co, station with his own staff (Copisidas t;Larry Patrick & (with slight differences in dot- Susquehanna in steps lars) are identical throughout atafacility separate fromTerry Greenwood, Patrick the top ten, except for 8th placel Kansas City is about to get a new Susquehanna's three stations, Communications Susquehanna) where BIA says ABC's KGO, radio station. KGAR-FM will sign while Susquehanna's sales staffRBR observation: No one is AM San Francisco ($48.1M on this summer at 105.1 mHz. sells the inventory. saying what the format will be and Duncan's says Infinity' The unbuilt station is allocated "It was mutually beneficial for this new station, but it'sa KTWV-FM Los Angeles ($48M) to Garden City, MO, but it's for us," Susquehanna Radio pretty good bet that it will fit 1. KIIS-FM LA, Clear Ch. gotten approval for an upgrade President David Kennedy told well demographically with 2. WFAN-AM NYC, Infinity to Class Cl on a tower site right RBR. The new stationis ex- Susquehanna's Oldies KCMO- in the heart of Kansas City. That's 3. WXRK-FM NYC, Infinity pected to sign on in June. FM and Classic Rock KCFX-FM. made it a valuable commodity 4. WLTW-FM NYC, Clear Ch. At the end of the three-year 5. WINS -AM NYC, Infinity and owner Frank Copisidas is period, Susquehanna will buy cashing in-but without giving Susquehanna up 6. WHTZ-FM NYC, Clear Ch. the remaining 60% based on a up all of the upside. double -digits 7. KROQ-FM LA, Infinity fair market appraisal. 8. KGO (BIA)/KTWV (Duncan's) In a complicated two-step Susquehanna entered the KC Susquehanna Media, which has deal, Copisidas is selling a 40% 9. WKTU-FM NYC, Clear Ch. market just last year with its public bonds, reported that Q4 interest in licensee Jesscom to acquisition of KCMO-AM & FM 10.WCBS-AM NYC, Infinity revenues rose 14% to $87.7M Source: Duncan's, BIA Susquehanna Radio for $10M, & KCFX-FM as spin-offs from and EBITDA gained 11% to along with a three-year JSA. Entercom (N:ETM). Brokers: $35.2M. For Susquehanna Ra- dio, Q4 revenues rose 14% to $61.1M. Broadcast cash flow Chris Devine, President, of rose 14% to $27.4M. For all of 2000, Susquehanna Marathon Media Media (radio and cable) saw revenues rise 18% to $320.6M and EBITDA gained 19% to $121.7M. has agreed to transfer the assets of Full -year radio revenues grew 19% to $220.9M and broadcast KLCE-FM, KCVI-FM and KECN-AM Blackfoot, Idaho cash flow shot up 30% to ti-) +.9M. KICN-AM, KFTZ-FM, KOSZ-FM and KBLI-AM Idaho Falls, Idaho KUNF-AM Washington, Utah Regent up triple digits KREC-FM Brian Head, Utah Acquisitions propelled Regent Communications (O:RGCI) to triple -digit growth rates for Q4, .for but the company also posted strong double-digit growth on a pro forma basis. $14,500,000 On an actual reported basis, Q4 net revenues rose 124% to to $14.3M and broadcast cash flow gained 321% to $4.8M. Full year Craig Hanson, Chief Executive Officer, of revenues jumped 85% to $44.1M and BFC gained 152% to $13.9M. Simmons Media On a pro forma basis (stations Regent owned in Q4 of both '99 and '00), Q4 net revenues rose KStar 17.4% to $4.1M and BCF in- "Radio's Full Service creased 31.4% to $1.1M. Media Regent said it has purchased Financial Specialists"TM $5.6M worth of its own stock- Group, Inc. a total of 1,088,600 shares- under the $10M buyback pro- 5080 Spectrum Drive, Suite 609 East Addison, TX 75001 (972) 458-9300 gram its board authorized last summer. CEO TerryJacobs told 12 www rbr corn 2/26/01 RBR holders voted to approve the deal, the long gall Street to expect Q1 revenues of$11- WFDT-FM Aguada, PR. Both stations are pending merger was completed. Under the 1.2M and BCF of $2.4-2.6M. Class A. The swap partners have been LMAing While Regent, like other groups, has expe- each other's station since November. tax-free deal, Infinity shareholders received ienced a slowdown in national business in 59.2% of a Viacom Class B (N:VIAb) share. ome markets, itssmaller markets get a higher Corpus Christi cluster conveyed )ercentage of their revenuesfrom local sales Cost cutting boosts WW1 han do operators in large markets. "It has not Equicom's Corpus Christi, TX trio of KOUL- cash lad the negative effect on us that it has had FM, KRAD-FM & KLTG-FM has beenLMA'd Westwood One (N:WON) grew operating flow by 13% in Q4 to $54.7M,while net )n some others," COOBill Stakelin assured by Rodriguez Communications, with a sale $156M. To achieve nvestors and analysts. pending for $6.75M. That will leave Equicom revenues gained only 1% to operating Regent puts a special effort on pre -selling President Jim Ray running stations in Bryan - that cash flow growth, WW1 cut 21, which is traditionally one of radio's College Station, TX and five unrated Texas expenses by $3.9Mand chopped $790K off ,lower quarters. The company says pro forma markets (a deal last year to sell those five corporate overhead. 'We watch our costs every evenues were up 2.5%for January, with small markets never closed). Equicom has day," CFO Farid Suleman assuredanalysts. 7ebruary pacing 4-5% ahead and March 6%. venture capital backing from Equus II,LBJ For the full year, WW1's net revenues rose55% We have been resisting, especially in first Capital and the Texas Growth Fund. to $553.7M and operating cashflow gained 82% 4uarter, as we do each year, the temptation to Marcos Rodriguez has been growing to $165.6M. Net income rose 77% to$42.3M. ;imply lower the rate base on our radio his group again after big cash -outs last year Both Suleman and CEO Joel Hollander ;tations to get 'X' revenue in the door," of some of his largest stations. rebuffed concerns that Clear Channel Commu- itakelin said, adding that "the folks who are nications (N:CCU), which owns Premiere Radio Networks and has its own traffic service in very quick to drop their rates anddestroy Joyner nabs South Hill :heir basic foundation rate structures...have a several markets, could pull all of its stations out very hard time [getting their ratesback up]." Tom Joyner has a history of owning stations of affiliations with WW1 and its Metro/Shadow in rural areas of North Carolina and Virginia, traffic operations. Hollander noted that quite a so it's no surprise that he's buying WJWS-AM few Clear Channel stations took WW1's recent LMA to O&O on Jersey Coast & WSHV-FM South Hill, VA for $1.05M. The Super Bowl coverage and had signed on for the k three -year -old LMA is being converted to seller is Norm Talley's Old Belt Broadcast- Grammy Awards. He said WW1 has a good Dwnership in the Atlantic City -Cape May, ing Corp. As always, we have to point out relationship with Clear Channel and that they'll NJ market. Bill Hufs Coastal Broadcasting that this Tom Joyner is the long-time station continue to do business with each other be- Systems is paying $1.4M-minus nearly owner from the Carolinas, not thenationally cause itis in the business interest of both $300K in LMA payments-to acquire syndicated morning show host who is based companies to do so. WWZK-FM. The cash -for -stock deal will in Dallas. Broker: Greg Guy& Terry Green- For the current year, *WW1 is projecting have the Coastal partners-Huf, Edwin wood, Patrick Communications EBITDA of $183-188M. The company is not providing a revenue estimate yet, although Rosenfeld, Scott Wahl and Charles Viacom/Infinity merger complete Pessagano, operating as WZK LLC-buy Suleman said full -year growth of 6-8% , with all of the stock of Marc Scott Communica- Infinity Broadcasting's stock closed forever on single -digit growth in Q3 and something higher tions. The sellers are Marc Scott and his 2/21 at $31.50. Immediately after Infinity share- in Q4. For Q1 and Q2, he said, it's "hard to say." mother, veteran broadcaster Faye Scott. In a related deal, prior to closing, Marc Scott IS Communications will spin off its other The Radio Radio Business Report station, WJNN-FM North Cape May, NJ, to Index TM Voice Of The Radio Broadcasting Industry' another entity controlled by Marc Scott. 185 Down it goes...and stays. The Radio IndexTM slipped Swapping in Puerto Rico 175 1.433 for the week to close Arso Radio, one of Puerto Rico's largest 2/21 at 158.297. 165 radio groups, is swapping a San Juan rimshotter to boost its presence in Mayaguez. 155 Arso will trade off WBRQ-FM Cidra, PR to 1/31 2/7 2/14 2/21 Newlife Broadcasting for $400K cash and

RADIO TELEVISION TELECOM WHOO-AM, Orlando, Florida M&A INVESTMENT BANKING from Cox Radio, Inc. to ABC, Inc. for $5,000,000 Charles Giddens and Elliot Evers represented ABC. MEDIA VENTURE PARTNERS

BRIAN E. COBB 202-478-3737 CHARLES E. GIDDENS 941-514-3375 ELLIOT B. EVERS 415-391-4877 TELECOM GROUP: GREG D. WIDROE JASON D. HILL 415-391-4877

12(../01HBR www rbr corn 13 McCoy Broadcast Brokerage, Inc. REAL, RESULTS. Transaction Digest Closed! KEJJ 98.3 FM by Dave Seyler R Jack Messmer Gunnison, CO The deals listed below were taken from recent FCC filings.

RBR'sTransaction Digest reports on all deals that involve assignment of a station license (FCC Form 314) and substantial transfers of control of a licensee via a stock sale (FCC Form 315), but not internal JOSEPH BENNETT MCCOY, III COLORADO SPRINGS, COLORADo corporate restructurings (FCC Form 316). All deals are listed in descending order of sales price. 719-630-3111PHONE 719-630-1871 FAx $2,000,000,000 207 stations, 100% stock Corp. (Luis Soto and family). Transferas sale of Citadel Communications (O:CITC) partial payment for WBRQ-FM (above). and its license -holding subsidiary, Citadel Duopoly with WIVA-FM Mayaguez- HAMMETT & EDISON, INC. Braodcasting Co., from Larry Wilson and Aguadilla PR. LMA since 1/11. CONSULTING ENGINEERS the company's public shareholders to FLCC RADIO AND TELEVISION Holdings Inc. (Ted Forstmann, Sandra $2,025,000 KMXU-FM Salt Lake City UT Horbach, Thomas Bell, Gordon Holmes). (Manti UT) from Sanpete County Broad- Serving the broadcast industry since 1952... $26 pershare, plus debt assumption. Exist- casting Co. (Douglas Barton) to Mag Mile Box 280068 San Francisco 94128 ing superduopolies. The acquiring com- Media LLC (Bruce Buzil, Chris Devine, 707/996-5200 pany will also assume a few pending Andrew Barrett). $75K escrow, balance in 202/396-5200 contracts to buy additional stations.cash at closing. Superduopoly with [email protected] Broker: CS First Boston KOVO-AM, KYKN-FM & KWKD-FM. No HE www.h-e.com contour overlap with KUUU-FM, KFVR- $10,000,000 WFFX-AM, WJDQ-FM, FM or KOTB-FM. Note: The seller will WMSO-FM, WZKS-FM & WYYW-FM Me- retain KMTI-AM Manti UT. Broker: Media 'ridian MS (Meridian -Newton -Union -Marion Services Group APPRAISALS MS) from Broadcasters & Publishers Inc. Radio and Televison and Apex Broadcasting Inc. (Houston $1,500,000 KLTD-FM Killeen -Temple TX Pearce), part of the Radio South group, to (Temple TX) from KenCannon Communi- Every type of appraisal Clear Channel Broadcasting Licenses Inc. cations Ltd. ( Ken Williams) to Cumulus Expert witness services (Lowry Mays), a subsidiary of Clear Chan- Licensing Corp. ( Lew Dickey Jr.), a subsid- nel Communications (N:CCU). $10M cash. iary of Cumulus Media (O:CMLS). $250K Existing superduopoly. downpayment, balance in cash at closing. Art Holt or Chris Borger Superduopoly with KTEM-AM, KOOV- 1-610-814-2821 $3,600,000 WBRQ-FM San Juan PR (Cidra FM, KUSJ-FM & KOOC-FM. LMA since 1/10. PR) from Arso Radio Corp. (Luis Soto) to Broker: Media Services Group Newlife Broadcasting Inc. (Juan Carlos Matos Barreto, Ana G. Velez Montes). $400K cash $1,475,000 KLVW-FM Odessa -Midland TX and WFDT-FM (below) LMA since 1/11. (Odessa TX) from Educational Media Foun- HOLT dation (Richard Jenkins) to Tommy R. Media Group $3,200,000 WFDT-FM (formerly WNNV) Vascocu. $375K letter of credit as escrow, Mayaguez PR (Aguada PR) from Juan Carlos $1.25M in cash at closing, $225K note. Matos Barreto, Ana G. Velez Montes and Duopoly with KQRX-FM. Note: The buyer Radio Acquisition Seminar Dominga Barreto Santiago to Arso Radio must relocate this station's tower. Learn how to get financing and buy right. Six hours, one-on-one. Topics: 2001 industry update, search, values, negotiation, market and station due diligence and others you choose from experienced owner. THE EXLINE COMPANY For details call Robin Martin - 202/939-9090 TheDeerRiverGroup riMEDIA BROKERS CONSULTANTS tZ. Read about these e NORTHERN CALIFORNIA transactions and more STATIONS AVAILABLE at rbr.com The place for leading industry ANDY McCLURE DEAN LeGRAS 4340 Redwood Highway Suite F-230 San Rafael, CA 94903 news and information Telephone 415-479-3484 Fax 415-479-1574

www.rbr.com 2/26/01RBR f)gitaltonRBR.com Quarterly Conference Callswith... New Interviews Lowry Mays onRBR Radio of include: Clear Channel Communications Stu Chapin of Activate John Dame of Dame Gallagher

Ramon Esparolini ofKlotz Robert Neil George Lange of Spottaxi of Gary Crowder of Gentner Cox Radio, Inc. David Seaberg of DirectAir

Michael Jahnl of Mediatron Mac Tichenor Roger Morgan of CarsonFeltz of r, Charlie Colombo of UnitedStations Hispanic Broadcasting Corp. Jorgen Jensen of Nautel Bill Hampton of Dave Ramsey

Kris Bobo of Comrex

Mel Karmazin Jeff Kimmel of Wicks Broadcast

of George Bundy of BRS

Viacom/Infinity O Rob Drucker of MediaAmerica

Also hear conference calls from Ackerley, Beasley, Jeff Keith of Telos Entercom, Entravision, Radio One and more

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