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OEntire contents copyright 2005 by Crain Communications Inc. All rigbts reserued TNISJUST III GMasks to pulltools MergerGontinues fromCollins &Aikman General Motors Gorp, has asked for court permission to puli its equipment from Collins& Aikman Corp.facto- ries if the supplier, which credit-uniontrend is in Chapter 11, refuses a purchase order or is un- able to find more financing Iiew ent'itAYnill haae #725ru'inassets by Sept.30. GM is ihe first automak- BY ToM HENDERSON er to ask U.S. Bankruptcy ChangingCRA I N'S D ET RO ITAUSINESS Judge Steven Rhodes for The most significant credit-union merger in the right to fetch its tools to the history of the state is on track, having re- avoid a parts interruption. ceived regulatory and member approval and Customers are prohibit- waiting now only for the state to sign off on a ed from pulling tools or proposed new name. taking other property Members of the South OaklandGounty Credit whiie a supplier is in bank- stations Union, based in Troy, voted their approval July ruptcy. Troy-based Collins 27 tomerge into the Macomb Schools and Govern- & Aikman filed its bank- ment Credit Union,based in Clinton Township, Cloyd ruptcy petition in May. The resulting entity forms the third-largest Other automakers could Local rad'iocuts back credit union in Southeast , with more join GM's court bid, said BlcturRcrn than 64,000members and assets of $725million. Jim Gillette, director of uds, offers HI) Board members at each credit union recent- Whathappened? South Oakland supplier analysis for Farm- CouhtyCredit Union mergedwith ly approved a new name, the Michigan Schools ington Hills-based csM MacombSchools and Government and GovernmentGredit Union, which awaits ex- Worldwide lnc. GM filed its CreditUnion and awaits state approval to blunt satell'ite, pected state approval from the office of Finan- motion Sept.2. for a new name, MichiganSchools and cial and lnsuranceServices. Officials hope to be- "It comes down to this: GovernmentCredit Union. gin putting up new signs in the first quarter GM has a right to be con- How big will it be? 64.000 members MP7 tlr,reats next year. cerned," Gillette says. and assetsof about$725 million. The merger is the most significant because Tools are the dies, molds Who will be in charge? Peter Gates, South Oakland County Credit Union is the and patterns used to shape Bv JnNNnrrnSnnrur presidentand CEOof the Macomb largest in the state ever to be merged out of ex- and produce parts. Typical- AND ANDREW DIETDERICH group,will head the mergedcredit istence, according to the Michigan Credit Union president ly, an automaker owns the CRA I N'SD E T R O I T BU.SI1VESS union. SallylouCloyd, and CEOof South Oakland,will retire. tools for its parts, even Local radio stations are embracing digital technolo- SeeMerger, Page 2B though they are produced gy and even cutting commercial time as more listen- in the supplier's factory. ers tune in to satellite radio or create their own MP3 Collins & Alkman makes playlists. parts for GM minivans. Both products have statlon owners making the Collins & Aikman is op- most of local content, providing their own new tech- erating, in part, on an $82.5 nology and evaluating commercial time. Some see the Waynehealth authority seeks biz miliion loan from its cus- approaches as smart marketing; tomers that expires Sept. others say such steps are necessary 30. In its motion, GM said, to save the industry from decline. to its knowledge, Collins & "I think it's made us aware that backingforits plan for uninsured Aikman has not arranged we needed to do something or we for replacement financing. could become irrelevant as an in- BY MICHELI,p MARTINEZ A hearing is scheduled dustry," said Dave Pugh, regional Nurwonrs2010 CRAIN'S DET RO IT BUS/NESS this week for a request by vice president for Glear ChannelRa- unsecured creditors that What it would do: The -WayneCounty Health Authority says it's ready to dio, which owns seven local sta- the supplier dump unprof- FunnelWavne start weaving an ambitious safety net for the county's more tions. Clear Channel cut its com- itable contracts and plants. County'suninsured than 700,000uninsured and underinsured, ifit can only gather mercial time in response to listener Collins & Aikman also is Pugh and Medicaid the funds and support it needs to do so. and advertiser feedback. Its most enrolleesinto high- asking for five more The authority was charged last year with successful station in Detroit, WNIC qualityprimary-care months to develop a reorga- coordinating medical and financial resources lNsmr 100.3 FM, runs about 10 minutes of plans. nization plan. The company to ensure that the county's highest-risk resi- commercials an hour, down from Who is belng asked said it won't meet its Sept, I The growth of dents have access to medical care. The author- satellite radio. up to U minutes an hour three to support it: Detroit- 14 reorganization-plan ity said its plan, called Networks 2010,would years ago. area hospital deadline partly because it I Who's added funnel Wayne County's uninsured and Medic- HD signals. Similarly, lnc.'s systems, businesses has been working on a busi- and business- aid enrollees into high-quality primary-care Page 29. three stations in Detroit run an av- ness plan as part of its cus- supportednonprofits. plians and, over the next five years, reiieve the erase of 10 minutes of commercials tomer financing deal. The county's hospital systems of the high cost of an hour, except during morning drive when it is The incentive: company also said it was Lower costs by providingunpaid care. slightly more, said Tom Bender, Greater Media De- Allen busy renegotiating prices. replaoingexpensive "Shat we are all looking at is cost avoid- troit senior vice president and general manager for - News Seruice emergency-roomcare ance," said Chris Allen, CEO of the authority. "Emergency- Crain WRIF101.1 FM, WMGC105.1 and wCSx 94.7 FM. with regularmedical room care that's provided is very expensive and isn't the best SeeThis Just In, Page 2 care. See Radio, Pdge 29 SeeAuthority, Page 27

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(]i,,AfNis DtlT RorT li, srti ltss Radio:Stations respond to satellite,MPB threats www.crainsdetroit.com EDITORnNCHIEFKeith E. Crain I From Pase 1 PUBLISHER Mary Kramer, (313) 4460399 or mkramer@crain,com growth pro- The Ienglh of the individual ads customers. Annual churn is es- for sales as the cost of ASSOCIATE PUBLISHER Christopher Crain, is changing as well, with more timated at 17 percent. ducing the units goes down, Mc- (313) 446'L645 or [email protected] EXECUTIVE EDIToR cindy Goodaker, {313) 3O-secondand even 10-second And Bender said MP3 play- Gannon said. 446-0460 or [email protected] spots. Be- ers have in some ways turned MANAGING EDITOR Jeff Karoub, (313) 446- [email protected] sides looking the music industry into a 04o2 or Roomfor all voices WEB GENERALMANAGER Bob AIIEN,(313) at total com- "democracy of iPods." 44GO4O3 or [email protected] mercial computer files of Dick Kernen, vice president of ASSISTANT MANAGING EDITOR MiChAEILEC, MP3s are (313) 446'0416 or [email protected] loads, it's im- songs that are taken from industry relations for Southfield- sPEclAL SECTIONS EDITOR Shawn Selby, portant to CDs or traded on peer-to-peer based Specs HowardSchool of Broad- (313) 446'1654 or [email protected] look at the GRAPHICSEDITOR Nancy Clark, (313) 446- ;;: tte sharing networks such as cast Arts, said hometown radio per- 1608 or [email protected] mix of spots W eDonkey. They are a fraction sonalities are going to prove the COPY EDITOR Vic Doucette, (313) 446-0410 to avoid clut- ' or [email protected] ofthe size ofthe original data biggest assets for local stations as DATA EDITOR Anne N4arks,(313) 446-0418 or ter, Bender and in many cases, don't sound the industry evolves. [email protected] said. EDIToRIAL SUPPORT Anita Duncan, (313) much different. "(WRIF's) Drew and Mike dou- (313) .The.SliyFi2;isa.n,XM receiver fol 446{329; Joanne Scharich, 44m419 MP3 players allow users to cre- ble Howard Stern's (ratings) num- NEWSROOM (313) 446{419, FAX (313) 446- satelliteradio,: (3r-3) ASirius threat? ate playlists that consist of thou- bers," he said. "They talk about L687 TIP LINE 446-6766 sands of songs, allowing the indi- the Lions and the Dream Cruise The rollout of high-definition ra- Tery l(osdrosky, sgnior leporter: Covers auto SnrEurEPnovrD[Rs vidual user to jump from a Nine and everything that is local." suppliers, steel and Downriver. (313) 446-1626 dio and multicasting for some sta- or [email protected]. Inch Nails song to Beethoven's Satellite radio works for a lot of Robert Ankeny: Covers the city of Detrojt, tions provides an answer to the ag- New York-basedSanford C. Fifth Symphony. Sales are expect- people who have niche music Wayne Countygovernment and economic gressive subscriber projections Bernstein& Co. estimates there development, law. (313) 446-0404 or ed to increase from 36.8 million in [email protected]. and broadcast-rights deals coming will be 44 millionsatellite radio tastes or enjoy channel surfing subscribersbv the end of 2010. 2004to 132 million by 2009, accord- sherri Begin: Covers nonprolits and education. from satellite radio providers XM during long commutes, he said. (313) 446-1694 or [email protected] That includesinstallation in 13 ing to marketing firm El Segundo, "Terrestrial radio will survive," Andrew Dletderich: Covers technologli, biotech, Satellite Radio and Sirius.Multicast- (313) or percentof cars. Oakland County and labor. 446-0315 ing allows for additional compan- Calif.-based iSuppli Corp. Cam- he said. "Satellite radio will sur- [email protected]. Today,XMsatellite Radio(Nasdaq: bridge, U.K.-based Internet service Aniali Fluker: Covers N4acomb and Oakland ion channels that can be accessed vive. It will be very similar to what counties and rhe environment. (313) 446-6796 XMSR)has 4.4 millionsubscribers. with an HD radio. provider Cachelogic said more television has experienced with or [email protected]. Ofthose subscribers,about 1.5 than half of all ISP network traffic Sheena Hanison: Covers smali business, The satellite broadcasters com- cable." counties and million are GeneralMotots Gorp, washtenaw and Livingston bined have 6 million subscribers was for file sharing in 2004. Grosse Pointe Farms-based Saga nonautomotive manufacturing. (313) 446-0325 customerswho boughtvehicles or [email protected]. and analysts expect that number to Bender said radio loyalists ap- Gommunicationslnc. led an indus- equippedwith XM-compatible Tom Honderson: Covers banking and finance. grow preciate local stations' editorial (313) 446'0337 or [email protected]. to more than 40 million by equipment.More than 4O0,OOO try debate over role. That means sorting music by Michelle Mafiinoz: Covers health care, 2010.Traditional radio reaches a to- others came from AmerlcanHonda broadcast rights transportation and internationalbusiness. (313) 446-!622 or [email protected] tal weekly audience of more than Motor Co. format and researching local mu- this spring. Ed preferences pro- Jennette Smith: Covers real estate, media, 228.2 million people, according to sic in addition to Christian, hospitality, adveitising and marketing. {313) XM has 150 channelsand expects [email protected]. Arbitron ratings figures distributed viding local content. chairman, presi- 446-0414 or to have6 million subscribersby Brent Snavely: Covers retail, the food industry by the New York-based RadioAdver- the end of 2005 and to be Still, he said, both MPB players dent and CEO, and services. (313) 446-0405or [email protected]. tising Bureau. ?he percentage of U.S. profitablein 2006. XM Satellite and satellite have raised con- told the Troy- consumers reached weekly has re- Radiois availableas an optionon sciousness among radio station LANSING BUREAU based producers Amv Lane: Covers business issues aithe mained percent 30 percent new GM Cafitol, telecommunications and utilities. (517) at 94 since 2002. more than of owners about the future. of the "Handy- HD radio is a digital signal vehicles. 371-5355, FAX(517\ 37r-2492, with HD multicasting is one area man Show with [email protected] 115 W. Allegan, Suite 220, higher-quality sound. It offers fea- (Nasdaq:SlRl) has about1.8 - Lansing 48933. Sirius where traditional stations re- Christian Glenn Haege" to tures to listeners with HD re- million subscribersand offers 120 ferred to in the industry as "terres- stop distributing the show on channels.lt's availableas an (313) ceivers, such a display ofthe song tria-I" because signals are broad- ADVERTISING DIRECTOR NilarlaDowns, option on some FordMotor Co.and satellite or Saga would drop the 446'6032 or [email protected]. title and artist's name. cast from land-based towers - can DalmlerChryslerAG vehicles, show from its stations. Saga does SALES INQUIRIES: (313) 446-6052; FAX(313) The satellite companies want to 393-O997 among others. The compqny experiment and try interesting for- not own any stations in Detroit, gain paying subscribers to spread ADVERTISING SALES .JeffAnderson, Terri mats and engage new listeners, he their large, upfront fixed costs, expectsto have 3 million but owns 57 FM and 29 AM stations Engstrom, Matthew J. Langan, Shawn subscribersby the end of 2005. said. It can also introduce addi- Mccracken, Tamara Rokowski, Dale Smolinski, such as securing programming throughout the country. Other Sandra Stalmack tional radio personalities, another larger radio owners followed WESTERN ACCOUNTS Ellen Mazen (Los deals and satellite equipment, said (323) key strength of local stations, be- iead by forcing producers to Angeles) 370'2477 Troy Mastin, an analyst with SrnnonsBROADCASTING Saga's CLASSIFIED MANAGER MeIisSa McKay, (313) cause satellite radio cannot carry make decisions on distribution. 446-1692 Willlam Blair & Co.in . 'local HDsrmurs programming under FCC CLASSIFIED ACCOUNT EXECUTIVE Rebekah "It is incumbent on them to try The value ofterrestrial radio is (313) guidelines. Cook, 446-1655 and grow their subscriber counts WCHBI-2OO AM I WMGC105.1FM having unique content, which is MARKETING DIRECTOR Mary Ann Short pretty quickly," he said. Both com. 94.7 FM wrrlluz103.5 FM Greater Media last month rolled why Christian said he brought up MARl(EflNG ASSISTANT Jennifer Dunn I MARKETING ARTIST Sylvia Kolaski panies have yet to post a profit. wDFr101.9 Ft\4 out HD radio signals for its Detroit the issue. While there are pro- 1 WMXD92.3 FM SALES SUPPORT Ann Perry, Andrea Beckham, stations new Mastin expects'that could happen WDMK105.9 FM{ WrutC100.3 FM and started compan- grams that want the bragging YahNica Crawford for the larger XM by the end of2006. WDRQ93.1FM ion channels of multicast pro- CIRCULATIONCandice Yopp, Manager. ] wovrc104.3 FM rights of national distribution, (obylarz Both satellite providels are arm- WDTWL06.7 ff gramming called RifI2, Deep Trax PRODUCTION MANAGER Wendy i ,n,o,r401.1 FM he's curious about all the money PRODUCTIOI{ SUPERVISOR Larry Williams, ing themselves with heavy mar- and More Magic. Consumers with XM and Sirius are spending when (313) 446-0301 keting and programming deals *,Jb,,,,* IID radios can tune into the new suBscRtPTroNs (313) 446,0450, w3J,??3?H,i they are not profitable. (888) 909-9111 aimed at winning over traditional wMV98.7 FM channels, or can listen online. WHTD102.7 FM ; terrestrial radio rev- TO FIND A DATE A STORY WAS PUBLISHED: ' Nationally, (313) raolo users. WJLB97.9 FM wwJ 950 AM Riff2, for example,.is skewed to- 446-0367 or e-mailthe Crain lnformation enue topped the $20 billion mark Center at [email protected]. Fsotball coverage exemplifies wKQl95i5 FM WXYTt27O AM ward an under=30 listener and fea- I in 2004.Nationwide, radio revenue CRAIN'S DETROIT BUSINESS IS PUBLISHED the strategy. XM offers broadcasts WKRK97.1 FM J WYCD99.5 FM tures up-and-coming artists. is up about 2 percent according to BY CRAIN COMMUNICATIONSINC. of many Atlantic Coast Conference, Locally, 23 stations offer HD ra- CHAIRMAN Keith E. Crain the Radio Adve*lslng Bureau. Rev- Pacific-l0 Gonference,and Big Ten Stationswith multicasting dio broadcasts, including nearly PRESIDENTRance Crain enue for most Detroit stations is SECREIARY Merrilee Crain Conference games. Sirius has the channelsoffering additional all of the top stations based in National Football l-eague. progr:amminginclude WRIF, WCSX, up slightly or flat when comparing TREASURER Mary Kay Crain , said Jeff McGan- Executlve Vice Prcsident/Operations WMGC,WMUZ and WJLB.Both XM signed a $650 million deal 2003with 2004. William A. Morrow plan non, vice president of OEM busi- with Malor League Baseball in 2004 WVMVand WYCD "Nobody is saying (satellite) is Group Vice Plesident/Teohnology, multicasting.Also, WJLB, WNIC, ness development for iBiquig Digi- Manufacturing, Circulation and is broadcasting all games this not going to have its place. ... If Robert C. Adams WKQI,WMXD and WDTWplan a tal Gorp., the developer and baseball season. XM aiso signed you are a cross-country trucker, Vlce high-definitionlaunch SeBt. 21. licenser ofHD radio. Dave Kamis National Public Radio host Bob Ed- XM or Sirius would be it," Christ- - The cost of entry for consumers Coruorate Dlrectoy'Circulation wards when he was dumped as an Andrew Dietderich, ian said. HD radio, meanwhile, is Patrick Sheposh is still a challenge whether up- G.D. Crain Jr. Founder(1885-1973) year. Jennette Smith NPR anchor last Sirius in its infancy, with station man- (1911-1996) Sources:iBiquity Digital Corp., grading to HD radio or switching Mls. G.D. Clain Jr. Chairman signed a 9500 million deal with agers and owners trying to decide stationmanagers to satellite. EDITORIAL & BUS]NESS OFFICES: Howard Stern earlier this year, a on programming plans and proba- 1155 Gratiot Ave., DelroilMl 48207-2732; Costs for satellite radio start at {313) 446-6000 $108million deal with NAScARand bly a three-year window before Cable address: TWX 24&227-5722 AUTNFilIDEf presi- per month, plus the price of broadcasts all National Basketball Chance Patterson, XM's vice $12.95 Subscriptions $59 one year, $98 two years. 0ut many consumers are ready to buy year, years. games. dent ofcorporate affairs, said that the radio if not purchased with a of state, $79 one $138 fortwo Association a unit. Still, Saga will roll out HD Outside U.S.A., add $48 per year to out-of-state "Regular radio can't match the six of 10 people who buy XM- new car. rate for surface mail. in five stations this year, seven Reprlnts: For inquiries call the reprints scope that we can," said Jim equipped cars and go through the HD radio technology is still in department at: (8OO) 494-9051, Ext. 1-44 or at next year and eventually B0 per- , Collins, vice president of corpo- free trial period of three months the early adoption period with lim- [email protected] cent of its stations. rate communications at Slrius. end up subscribing to the service. ited sale of receivers in specialty CRAIN'SDETROIT BUSINESS ISSN # 0882.1992 "We're buoyed by the fact that is published weekly by Crain Communications Inc. "Even if and when they do go digi electronics retailers for $250 and at 1155 Gratiot Ave., Detroit lvll 48207'2732. the manufacturers are embracing Periodicals postage paid at Delroit, lvll and tal, we offer nationwide service up. The other push is to get HD ra- additional mailingoffices. POSTMASTER:Send and 120 just HD:'Extra'tenestrial technology the technoiogy," he said. address chanaes to CRAIN'S DETROIT channels. They can't dio in new cars. BMW, for instance, BUSINESS, Ci-rculationDepartment, P.O. Box scale to that level." Greater Media's Bender said is offering HD radio as an option Jennette Smith: (313) 446-0414, 07925, Detroit, Ml 48207-9732. GSf # [email protected] L3676O444. Printed in U.S.A. Making satellite available as an he's not scared by the satellite in- this year. Entire contents copyright 2005 by Crain option Communications Inc. All rights reserved. in new cars is one of the dustry's growth projections be- In the long term, home radios Andrew Dietderich: (313) 446- Reproduction or use of editorial content in any strategies fueling its growth. cause it also has a high churn of are expected to be the biggest 03 1 5, adietder tch@,cr ain. com manner without permission is strictly prohibited.