July 2003 Archive
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June 2003 -
August
2003 
Links- internally where there are follow-up stories we try, at the end of each story, to put a pertinent link to the top of the next relevant story. Regarding external links see note at end of page.
RNW July comment - More of what - or is the technological fix a pipedream? Is technology that could potentially add thousands of broadcast channels a move forward or a delusion without the political will to give access to the airwaves?
RNW June comment - our view of new US media regulations introduced this month.
RNW May comment - Public v Private Interests- considers whether current regulation, copyright and patents has become skewed in favour of the private rather than public interest and whether all should be subjected to regular re-evaluation, as US media regations now are by law.
2003-07-31: Entercom has reported second quarter profits to the end of June up 19% to USD 19.1 million with per share earnings up 16% to USD 0.37; same station revenues for the quarter were up 2.8% to USD 107 million but overall revenues were down 0.8% to USD 107.6 million as a result of divestitures of stations and contracts.
Entercom free cash flow was up 9% to USD 34.2 million; like the per share earnings, these were record second quarter results for Entercom.
It also noted that it had finally completed its previously announced acquisition of radio station KWOD-FM in Sacramento, California from Royce International Broadcasting Corporation and had also assumed sales and programming responsibilities for KWJJ-FM and KOTK-AM in Portland, Oregon from Fisher Communications, Inc. on June 1 as part of an agreement to acquire the two stations for USD 44 million.
Commenting on the results, President and CEO David J. Field said Entercom was "pleased to continue our strong performance in the second quarter, delivering record-breaking results despite the disruptive impact of the Iraqi war and the tepid advertising environment that dampened industry results."
"We continued to gain significant revenue share within our markets and grew our Free Cash Flow and earnings per share by 9% and 16%, respectively," he added " We also were able to enhance our competitive position during the quarter by acquiring additional stations in Portland and Sacramento, enhancing our strong positions in those markets, and by further strengthening our industry-leading balance sheet."
Looking ahead, Entercom is predicting third quarter net revenues of USD107 to USD109.5 million, equating to same station growth of 2% to 4% with earnings per diluted share of USD 0.38 to USD 0.40 compared to USD 0.31 in the same quarter of 2002.
Entercom shares ended Wednesday almost unchenged - down 14 cents to USD 46.35
Previous Entercom:
Previous Field:
2003-07-31: UK Capital Radio, which is widely expected to lose Chris Tarrant, its breakfast host at London flagship Capital FM, when his contract runs out at the end of the year is attempting to lure BBC Radio 2 host Jonathan Ross into the spot according to the UK Guardian.
The paper quotes Ross's agent Addison Cresswell as saying that Capital has made approaches to Ross "three or four" times, adding, "There is no hiding the fact Chris Tarrant is going at Christmas. They are bound to be sniffing around the top talent and Jonathan has got one of the highest rating shows. Plus Chris is a big fan of Jonathan."
"Jonathan has a contract with the BBC until next July and we don't break contracts - but what happens after that, I don't know. We're in the middle of discussions with the BBC over his deal."
Capital radio has said it will make an announcement concerning the breakfast show by November; last year it was hit hard by uncertainty over whether Tarrant would stay.
Capital earlier this week announced a management re-shuffle (See RNW July 29) that was seen by many as likely to be linked to the likelihood of a poor showing in the latest UK ratings that are to be released today and resulted in a fall in its share price.
It has approached a number of names as possible replacements for Ross, most recently, according to reports, Kiss FM breakfast Bam Bam who rejected its offer (See RNW July 24).
RNW comment: If nothing else, it looks as if agents of top names at other stations will now start suggesting that their stars have been approached , even if only as a negotiating ploy. The list may become interesting.
Previous Capital:
Previous Ross:
Previous Tarrant:
UK Guardian report:
2003-07-31: The US National Association of Broadcasters (NAB) looks as if it may be the first out of the starting gates with a legal challenge to the new Federal Communications Commission (FCC) media regulations issued last month.
It is to go to a Federal Court to argue against the FCC's switch from a contour-based definition to one based on Arbitron's markets, arguing that this is "arbitrary and capricious."
The NAB argues that the Commission could have fixed more blatant anomalies produced under the old system by amending its contour-based definition but has instead chosen a route that will create unnecessary uncertainty.
NAB spokesman Dennis Wharton said the change has created a lot of unwanted "chaos" and is like changing goal posts in the middle of the game. The NAB suit is also to ask for loosening of the TV duopoly rule.
Previous FCC:
Previous NAB:
2003-07-31: San Francisco public broadcaster KQED, which earlier this month warned its employees of likely cuts (See RNW July 13) has gone further than expected, eliminating 11% of its jobs, and cutting employees working week to 36 hours and reducing their pay by 10%.
According to an AP report in the Mercury News, this will save the San Francisco broadcaster some USD4.2 million in the 2004 fiscal year. The cuts involve nine people being laid off, another five accepting buyout deals and 17 vacant positions being eliminated to leave a total of 234 employees.
The stations says it had to make the decision because of a reduction in corporate giving but adds that it will not cut programming.
KQED president and chief executive Jeff Clarke said that giving from individual listeners and viewers was still strong, but KQED was receiving less money than expected from large donors such as corporations and foundations.
Previous KQED:
Mercury News/AP report:
2003-07-31: Indian domestic media groups are asking the country's government to set a uniform cap for foreign investment in print, television or radio of 26%.
Acting collectively as Indian Media Group, they issued a statement asking for a regulatory authority to be set up to administer the policy and handle all complaints. The move was made following controversy of an application by News Corporation's Star News for uplinking permissions that no other foreign media organisation has been permitted and over its involvement in FM station Radio City (See RNW July 18).
The group, which included Times Group, Punjab Kesri, Zee, Indian Express, India Today, NDTV, Sabe TV, and Dainik Bhaskar, said Indian media was capable of competing head-on with foreign and players and welcomed competition but at the same time said media groups should remain under the control of domestic companies.
To ensure this it wants 51% of the equity in any media organisation to be held by one Indian family or group and also asks that foreign media should operate under Indian law as regards tax and other guidelines.
''The foreign media must comply in both letter and spirit with the Indian rules, laws and regulations,'' the group said in its statement.
India has already set up a panel to look at the questions of foreign investment in FM radio stations to be set up under the second phase of their licensing in the county. The panel will also consider whether commercial FMs should be able to broadcast news, which is currently prohibited and the feasibility of a commercial broadcasters being licensed to operate non-commercial stations carrying social content.
Previous Indian Radio:
2003-07-31: Clear Channel's Florida talk station WTKS-FM, Orlando, is to start charging for its stream according to a posting on its web site.
The rate proposed is USD 4.99 per month and Radio and Internet Newsletter (RAIN) notes that it learned in April that Clear Channel was considering a move to covering its streaming costs through subscription.
It says a posting in an online newsgroup by its VP/Technology Brian Parsons included the suggestion of "bundling access to all CC News/Talk/Sports station streams and possibly also bundling Premiere Networks programming (Rush Limbaugh, Dr. Laura, etc.)."
He told RAIN that Clear Channel had not yet finalized plans for subscription but said that when a syndication deal for the station's 'Monsters of the Midday' ended, there were former listeners who were outside WTKS's range who were still interested in it.
In response to online suggestions that the charge was high for what was being offered, Parsons agreed that something more had to be provided to justify the fee.
RNW Note: A number of Premiere's syndicated shows, including Limbaugh's, are already subscription-based, so we cannot really see these being bundled.
Previous Clear Channel:
RAIN web site:
WTKS web site:
2003-07-30: Clear Channel has reported second quarter profits up 5.5% on a year ago at USD 251.3 million (USD 0.41 a share) including pre-tax gains of USD 41 million (4 cents a share) from early debt retirement; but for this its earnings would have been flat at 37 cents a share excluding pre-tax gains of USD21 million in 2002 relating to asset sales and a litigation settlement.
Overall revenues for the quarter were up 6.6% to USDD 2.32 billion but on a pro-forma basis were almost flat, rising from USD 2.23 billion to USD 2.24 billion.
Adjusted EBITDA (revenue less divisional operating expenses and corporate expenses) - was up 1% to USD 632.9 million but pro-format EBITDA was down 1.5% to USD 622.9 million
Radio revenues were the weak point for the company - down 2.1% to USD 970.6 million and down 2.6% on a pro-forma basis to USD970.2 million; by comparison outdoor revenues were up 20.1% to USD 569.2 million (on a reported basis -pro-forma outdoor was up 3.9% to USD 519.7 million) and entertainment was up 9.2% to USD 675.9 million (Pro-forma increase was 3.4% to USD 644.7 million).
Radio EBITDA was down 1.7% to USD433.7 million (pro-forma down 1.8% to USD434.2 million), outdoor EBITDA was up 7.2% to 154.8 (pro-forma was down 1.7% to USD 147.5 million) and entertainment EBITDA was up 9.8% to USD 56.6 million (pro-forma was up 4.4% to US53.6 million).
Clear Channel said its radio revenue declines came from weakness in local spot sales, small market revenues, the Company's national syndication business and non-traditional revenues, which includes the loss of revenue resulting from its cessation of business with independent promoters.
Commenting on the results, which were in line with analysts' expectations, chairman and CEO Lowry Mays said, "Our second quarter results reflect our ability to execute our business strategy in a challenging economic environment. We are especially proud of the performance of our local management teams this quarter, as their focus on serving the needs of their communities was the foundation of our success. We believe that we are very well positioned for future growth."
President and COO Mark Mays added, "Our second quarter results were driven by operating improvements across many of our divisions. We delivered significant free cash flow and continued to focus on strengthening our balance sheet and investing in our future growth. We are seeing a gradual improvement in the economy and are looking for a stronger second half as the environment improves. We remain focused on increasing shareholder value by serving the needs of our communities, employing the best people and providing the highest quality products and services that deliver results for our customers."
CFO Randall Mays said that "despite a tough economic environment, free cash flow increased 21% for the second quarter and is up 27% for the first half of 2003" and also noted that debt had been cut by USD 660 million during the quarter.
He added that the company believed it was " appropriate, given the significant amount of free cash flow that the company generates, that we return a portion of those profits to our shareholders and consequently announced last week the initiation of a quarterly dividend."
Looking ahead, Clear Channel says that it expects third quarter EBITDA to l increase in the mid to high single digits compared to third quarter 2002 on both a reported and pro forma basis.
For the full year, the Company expects both reported and pro forma EBITDA growth in the mid to high single digits with resulting free cash flow growth in the mid to high teens.
Clear Channel shares, which were up 1.4% in early afternoon trading, ended Tuesday down just over half-a-per-cent at USD 40.25.
Also reporting was Jefferson Pilot, which described its communications division results as "excellent". Its radio and television division increased profits by 10% to USD 11.6 million in the quarter with broadcast cash flow up 5% to USD 23.1 million.
Overall Jefferson Pilot reported earnings for the quarter before realized investment gains up 10% to USD 140 million (89 cents a share).
In Europe, SBS Broadcasting SA, which recently acquired Radio 1 Norge AS in Norway and Radio 2 A/S in Denmark from wholly owned subsidiaries of Clear Channel Communications, Inc. and from Norsk Aller AS (See RNW July 18), reported "exceptional second quarter" with station revenues up 14% to Euros 154.9 million (USD 177.7 million) and station operating income up 125% to Euros 23.6 million (USD 27 million).
Overall, however, SBS SA profits of Euros 16.2 million (USD 18.6 million) were down 9%.
Commenting on the results, CEO Markus Tellenbach said, "SBS had an exceptional second quarter, recording our sixth consecutive quarterly increase in operating income performance, as we posted substantial improvements across all financial metrics, despite the lacklustre advertising environment in Europe."
"…our operating leverage has continued to strengthen, highlighted by our station operating cash flow margin of 21%, an increase of 41% from the second quarter 2002. We are very pleased to have realized the benefit of our revenue increase, having converted 68% of incremental revenue to operating income over the year."
"Our television stations are increasing their viewing shares, while our radio group will strengthen its position as the leading operator across Scandinavia, following the completion of recently announced transactions in Sweden, Norway and Denmark. With our diverse portfolio of broadcasting assets, improved station performance and profitability, we are well positioned to drive our business as the advertising industry improves and we remain committed to further strengthening liquidity and reducing debt."
Previous Clear Channel:
Previous Jefferson Pilot:
Previous Lowry Mays:
Previous Mark Mays:
Previous Randall Mays:
Previous SBS SA:
Previous Tellenbach:
2003-07-30: The Recording Industry Association of America (RIAA) has named Republican veteran Mitch Bainwol, a former chief of staff to Senate Majority Leader Bill Frist and executive director of the National Republican Senatorial Committee, to succeed Hilary Rosen as its chairman and chief executive.
Bainwol, who recently started his own consulting firm, takes over his post from the beginning of September; Rosen, who stepped down from the post at the start of July after six years, has remained a consultant with the organization and has also become a commentator for CNBC. She announced in January that she was to step down (See RNW Jan 24)
Bainwol has little experience of the music industry but has political connections that his predecessor lacked. Roger Ames, CEO of Warner Music Group, commented in a statement, "Mitch brings to the RIAA the consummate insider's understanding of political nuance in Washington." "I'm confident he has the ability to clearly communicate the issues and challenges the music industry faces and to partner effectively with the computer, consumer electronics and music publishing businesses to help us address those issues in all appropriate forums."
His appointment comes at a time when the industry, dogged by falling sales, has launched a campaign of legal attacks on file-swappers and is currently involved in large number of subpoenas seeking the names of people it thinks have been involved in swapping music; under US copyright laws, offenders can be fined from USD750 to USD 150,000 for each copyrighted song exchanged.
Previous RIAA:
Previous Rosen:
2003-07-30: British tourists are to be given hundreds of thousands of personal radio receivers to help establish a commercial channel for British holidaymakers being launched in Spain according to a report in the UK Times.
The paper says that Holiday FM, a joint venture with Capital Radio, which is providing most of the content for the station, has already broadcast successful test transmissions in a number of Spanish resorts and is also on the Hot Bird satellite.
Capital content, delivered by satellite to stations in Spain, will be supplemented by local material for broadcasts to the holidaymakers.
Holiday FM managing director Tim Foster told the paper, "With 58 million trips abroad by UK residents last year there is a clear demand for a great English-speaking radio station which feels and sounds like home."
Previous Capital:
UK Times report:
Holiday FM site:
2003-07-30: Ibiquity has announced further developments in digital radio in the US with Crawford Broadcasting's 50,0000 watts Urban Contemporary/Hip-Hop WPWX-FM in Chicago now broadcasting using its HD Radio system and Christian station KFUO-AM, St Louis, becoming the first station in Missouri to broadcast in digital.
Clear Channel introduced the system at its Chicago Smooth Jazz WNUA-FM and Urban Adult Contemporary WVAZ-FM in May.
Previous iBiquity:
2003-07-29: US radio giant Clear Channel could well end up benefiting under new US media regulations rather than being hit harder by them than its rivals according to a Wall Street Journal report by Anna Wilde Mathews.
The article says that the "grandfathering" provisions in the changed regulations will mean that Clear Channel can hold on to "onto just about every station it rolled up under the old rules… Yet competitors say the tougher new standards will make it harder for them to replicate Clear Channel's potent collection of stations."
(RNW note - An exception may be in San Diego, where Clear Channel has increased its market clout through deals with Mexican-based stations (See RNW July 14))
The article quotes Cumulus President and CEO Lew Dickey as saying, "All (the FCC) did was further entrench them, and gave them more running room. "
"It makes it more difficult for the rest of us to line up and compete against them on a national level."
He was backed up by Clarke Brown, chief executive of radio operations for Jefferson-Pilot Corp. in Greensboro, N.C., who said Clear Channel "should be very pleased. ... They're already in a maximum position. This is going to disallow almost anyone from achieving clusters like Clear Channel's in many markets."
Clear Channel, which has already publicly opposed the changes, disagreed and its senior vice president for government affairs, Andrew Levin, said the company "had much more latitude under the old rules than we do today."
The Journal notes that the new rules may present purchasing opportunities because of the change in a radio market definition away from signal contours to Arbitron market definitions l this could mean that, whereas under former regulations a powerful signal covering more than one market could limit purchases in all markets, the new rule could allow purchases in adjacent markets because they are considered separately.
According to analysis by BIA Financial Network, says the report, Clear Channel may be able to buy as many as five strong stations in Trenton, N.J., where currently Clear Channel has none, and two more than the four it owns in Wilmington, Del.
Previously, it says, radio experts took the view that the reach of Clear Channel's Philadelphia stations restricted the company in Trenton and Wilmington but Levin disagreed and said that is could have made more purchases under the old roles by reconfiguring signals to control overlap with nearby clusters.
The Journal also gives some details from an analysis by Bear Stearns Cos. That said only around 215 stations, fewer than 2 percent of the commercial stations in the top 285 markets, were currently "noncompliant," meaning the current owners couldn't acquire them under the new rules.
Of those, 82 are owned or partially operated by Clear Channel, about 6.7 percent of its stations; the publicly traded company with the next-highest number is Cumulus, with 17, or 6.4 percent of its total, and Viacom Inc. with four, or 2.2 percent.
Previous Clear Channel:
Previous Cumulus:
Previous Dickey:
Previous Jefferson-Pilot:
Previous Levin:
Previous Viacom-CBS-Infinity:
San Francisco Chronicle - WSJ/AP report:
2003-07-29: UK Capital Radio has announced a management shake-up aimed at improving the performance of its flagship Capital FM in London whose ratings have been slipping.
A team is to be set up to try and increase Capital FM's audience; it will be headed by Group Operations Director, Paul Davies and in addition management for the Capital FM network is to be split into two teams, one for Capital FM and the other for stations outside London.
Capital Group Programme Director Keith Pringle, the group's most experienced programmer, moves over to take up the newly created position of Managing Director, 95.8 Capital FM and will work with Capital FM Network Marketing Director Carl Lyons, in a drive to increase listening figures.
Capital FM Network Managing Director Andrea Vidler is leaving the company and John O'Hara is appointed as Regional Managing Director Capital FM Network. He will be responsible for the network's market leading stations outside London.
In addition, as part of the wider restructure, Andy Johnson is appointed Head of Group Programming and Ric Blaxill is appointed Creative Director.
Capital Chief Executive David Mansfield commented in a statement, "Our mission to win back listeners to our flagship station is a significant challenge. Not surprisingly I have given our most senior people the task. Capital in London still enjoys commercial brand leadership and it is critical we distance ourselves further from the competition. We have the strongest brand name, a format that allows us to have the flexibility we need in music and presentation and a great team of people capable of achieving success"
Capital says it will make a further announcement about the future programming and marketing strategy of the station in early Autumn and our plans for breakfast in November, a statement that is likely to further fuel speculation that current breakfast host Chris Tarrant is likely to leave the station when his contract expires at the end of the year.
Previous Capital:
Previous Davies:
Previous Mansfield:
Previous Pringle:
Previous Tarrant:
Previous Vidler:
2003-07-29: US Federal Communications Commission (FCC) chairman Michael K Powell has publicly defended the Commission new media rules in an Op-Ed in the New York Times "New Rules, Old Rhetoric".
In it he complains that the tone of the debate has grown increasingly shrill but there is "a distressing lack of consensus, and even some basic misunderstandings, over exactly what problem Congress is trying to solve."
Stressing the importance over the debate in terms of First Amendment concerns and the value to be given to diversity of viewpoints and the government role in promoting competition and encouraging local control of media, Powell says the change will not mean that US media becomes significantly more concentrated.
Powell points out that although it is said that "five companies control 80 percent of what we see and hear" the companies concerned own only a quarter of US broadcast, satellite and cable channels bur have their audience because people want to watch them and adds, "A competitive media marketplace must be our fundamental goal, but do we really want government to regulate what is popular?"
He also says that pressure to restrict ownership is motivated more by the wish to control content than concern about concentration and points out in relation to the national TV cap that cable companies can exceed it and that it does not affect the number of stations owned but the number of people who can be reached and comments on the oddity that "so-called local affiliate groups own many more stations nationally than the networks."
Powell also points out that, for the first time, cable TV had a larger prime-time audience than free TV for the first time last year and adds that "If they can reach more of the market, broadcasters will be able to better compete with cable and satellite."
He ends up by commenting on the complexity of the issue and the information gathered by the FCC and concludes, "Let's have a national debate, but let's keep it in focus."
RNW comment: Whilst Powell's case seems persuasive it is noteworthy as much for what is left out as what is included. His piece ineluctably suggests to us that the US needs a new debate about what services media should actually provide and then the creation of a fresh framework rather than proceeding as has been done so far, which has been far more about reconciling past and current media environments within a similar regulatory framework to that of the past but with less restriction.
Such a re-evaluation could well lead to more significant changes but at least it need not be corralled in a framework that, at the moment, seems mainly to be conducted in terms of easing existing regulations rather than meeting a societal aim. It's something we'll be thinking about and on which we would welcome comment.
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Previous Powell:
New York Times - Powell op-ed:
2003-07-29: UK SMG has announced that former Virgin breakfast DJ Chris Evans has paid it GBP 7 million (USD 11.4 million) in a "full, final cash settlement " following judgement in the case Evans had brought against it claiming GBP8.6 million (USD 14.2 million) in damages following his dismissal by Virgin.
Evans lost the case last month (See RNW June 27) and was subsequently ordered by the judge to pay GBP 1 million (USD 1.6 million) towards SMG's costs (See RNW July 3). The judge had also ordered an inquiry into damages sustained by Virgin because of Evans behaviour.
SMG has welcomed the end of the matter and its Corporate Affairs Director Callum Spreng in a statement said the payment covered "all costs and damages."
Evans has not commented on the matter but had commented to the News of the World Sunday newspaper," "It's only money. I still have it in the bank. I don't miss any sleep over it. I can afford to lose it."
Previous Evans:
Previous SMG:
2003-07-28: Two issues, both from the US, dominated coverage of broadcasting in the print media over the past week: One was the US House of Representative vote that by an unexpectedly large majority opposed the lifting of the US cap on TV ownership and the other was the revelation by talk show host Tom Leykis of the woman who has accused basketball player Kobe Bryant of rape.
In both cases, the stories are not necessarily as they seem.
As far as media regulation is concerned, we have already commented sceptically about why the TV cap is attracting political action but cross-ownership is not (See RNW July 23).
According to an editorial in the New York Times, "Wrong Battle on TV Diversity", The whole fight to keep the networks from owning too many stations is actually last year's, or last decade's, battle. The networks themselves are now struggling players in a new communications environment in which a vast majority of Americans no longer get their TV signals from the airwaves. If Congress has a genuine interest in keeping a tiny number of corporations from controlling most of TV's content, it should establish limits on the amount of programming controlled by the cable giants and tighten rules that bar the distributors from discriminating against their competitors' products.
It like other newspapers in general did not make much comment about cross-ownership (in which it admits a vested interest) but did go heavily on the political implications for President Bush.
In terse fashion, Times columnist William Safire, a conservative opponent of the loosening of regulation commented that the President was "backing into a buzz saw" over "media giantism."
Safire commented on widespread concern about increased power for those he termed the "Four Horsemen of Big Media - Viacom (CBS, UPN), Disney (ABC), Murdoch's News Corporation (Fox) and G.E. (NBC)" and noted, "Reflecting that widespread worry, the Senate Commerce Committee voted last month to send to the floor Ted Stevens's bill rolling back the F.C.C.'s anything-goes ruling. It would reinstate current limits and also deny newspaper chains the domination of local TV and radio."
The Horsemen, he commented, "were confident they could get Bush to suppress a similar revolt in the House, where G.O.P. discipline is stricter".
They have failed so far and Safire commented that if Bush opted for a veto, he could "risk suffering an unnecessary humiliation."
In the Washington Post, Howard Kurtz in his media column commented that the "Bush administration's attempt to allow the big media conglomerates to control even more of the television market has sparked something of a rebellion on the Hill" and added, "The whole thing smells like a corporate giveaway, allowing big networks (who are licensed by the government in the "public interest," a very old-fashioned concept) to extend their reach."
"If this is anything like the deregulation the radio industry won a few years back, we could end up with the equivalent of a handful of companies playing the same tired songs."
In Media Life, editor and publisher Gene Ely extended the personalization of the issue to Federal Communications Commission chairman Michael K. Powell, writing, "Michael Powell got his comeuppance yesterday when the House of Representatives voted to roll back the Federal Communication Commission's ruling last month to lift network ownership caps to 45 percent of the national market" and continuing "The FCC chairman could well be in for a second comeuppance."
Ely argued that Powell's stance was a rational one in terms of the diversity of US media but ignored "entirely public perception of the nation's media conglomerates. And the perception is that they already have way too much influence in our lives."
"Ignoring that political reality was a mistake on the part of Powell," continued Ely, "and the question now is whether Bush will make the same mistake or, with an eye to gaining reelection, side with the increasingly powerful constituencies demanding the rollback."
He suggested that Bush's political interests would not be served by a veto and commented, " While Powell was very articulate in his defense of the easy caps, his forum was nearly always among an audience who could understand what's essentially a theoretical argument, whether they agreed with it or not."
In New York Magazine, Michael Wolff went into conspiracy theory, suggesting that President Bush had "a pass on weapons of mass destruction" because of an accommodation with media owners.
The latter, he says, realize news is a dying business and need something to transform their futures.
"So is it a conspiracy?" asks Wolff. "Is that what I'm saying? That the media-acting in concert-took a dive on the war for the sake of getting an improved position with regard to the ownership rules? Certainly, every big media company was a cheerleader, as gullible and as empty-headed-or as accommodating-on the subject of WMDs as, well, Saddam himself.
"But conspiracy wouldn't quite be the right word."
"Negotiation, however, would be the right one. An appreciation of the whole environment, the careful balancing of interests, the subtleties of the trade (at this point, the ritual denial: "There was no quid pro quo")." In other words business is business he might have said rather more succinctly.
Wolff may well be exaggerating the degree to which there were any understandings, albeit certainly such deals would not be beyond organizations such as News Corporation, and in the radio world the issues of the removal from the air of the Dixie Chicks following anti-Bush comments by their lead singer would seem to potentially add weight to the idea.
Certainly the writers of two letters to the Los Angeles Times thought so. Both make similar points.
In one Rob Henshie comments, "While I expect comments about "revisionist history" from President Bush, I do not expect to read a version of revisionist history in the L.A. Times. As a critic, Robert Hilburn is certainly entitled to his opinion ("Dixie Chicks Once Again Rule the Roost, July 21). However, I take issue with many of his comments regarding the Dixie Chicks and "the incident" that led to an unfortunate national scandal…"
"Thousands of country music fans" did not spontaneously pick up the phone and call radio stations to have them pull Dixie Chicks songs. These 'protests' were the result of mandated bans from the corporate offices of radio conglomerates."
"At the local level, overzealous DJs (or those too scared to protest for fear of being fired) organized call-ins and, worse yet, public destruction of CDs. Is this what makes this country great? "
"Minor league struggle? Nonsense! An apparently organized effort to silence those who dare to speak out is not something to be taken lightly."
He is backed up in a letter by Ruben Ramos who writes, " Robert Hilburn says, 'Whatever their intent, the Chicks seemed to be putting their minor league pop struggle on a level with some of mankind's great civil rights movements'."
"Whatever situation arises that challenges our right to free speech and censorship is always a major struggle. When a whole nation responds to a person or group, it can hardly be called minor. It saddens me that you felt their words were 'ludicrous.' I felt otherwise."
Finally the issue of the naming by Tom Leykis of the woman who accused basketball star Kobe Bryant of rape, an action that most print media have not followed and of which they in general disapprove.
In the Los Angeles Times, Bob Baker suggests that the reason in part is to do with the effect the Internet is having on other media and then details the paper's own policy and some arguments for and against the idea of naming rape victims.
(RNW comment: We really can't see in ethical terms how the fact that something is posted on the Internet should free other organizations from their responsibilities, especially as in this case the wrong woman was named on some sites and, were they traceable, those running some of them could justifiably be facing a lawsuit and bankruptcy.)
Another report in the paper, by Larry Stewart, seems to adequately evaluate the real interest of sports talk radio in noting that XTRA Sports next week will place 40 billboards around Los Angeles that read: "KOBE: What's Next? Just Listen."
Stewart notes of the station's hosts Steve Hartman and Mychal Thompson that they have gone overboard all week.
"Thursday, Hartman and Thompson were comparing hearing about Bryant being charged to hearing about John Kennedy being assassinated, Ronald Reagan being shot, the O.J. Simpson chase and 9-11," he writes.
"It's all getting out of hand, and making matters worse is that much of what is going out over the public airwaves is inappropriate for children and offensive to many adults."
RNW comment: More to the point we'd suggest that to anyone capable of minimal thought what is said may attract interest but in terms of adding to any debate will be mainly drivel.
And finally from the Chicago Sun-Times and sports columnist John Jackson, "For the most part, the media have reported this story in a responsible manner, respecting the privacy of the alleged victim while not unfairly declaring Bryant guilty before the case comes to trial."
"Unfortunately, all it takes is one bozo to give everyone in the media a bad name, and Tom Leykis, a radio talk-show host based in Los Angeles, decided to fill that dubious role this week when he began using the name of Bryant's 19-year-old accuser on the air. The only thing more despicable than his actions is the explanation of why he decided to throw out all standards of journalistic decency."
''We're told that rape is violence, not sex, and if that's true, there's no reason she should feel shame or embarrassment,'' Leykis told Reuters news service, adding that he felt it was unfair to name Bryant and not his accuser.
Jackson ends by writing, "Since Leykis seems to be OK with voicing theories without facts, here's another one: I believe Leykis' use of the accuser's name has little to do with fairness and everything to do with getting some free publicity for his radio show."
That may be unfair and certainly there is a real issue to debate although we'll give heavy odds that debate will never really take on US commercial talk radio: Maybe Leykis is genuinely a bozo. What we would argue is difficult to dispute is that his show gets anywhere through deep reasoned argument. It isn't what his listeners want!
Previous Columnists:
Previous Kurtz:
Chicago Sun-Times - Jackson:
Los Angeles Times - Baker:
Los Angeles Times - Letters re Dixie Chicks.
Los Angeles Times - Stewart:
Media Life - Ely:
New York magazine - Wolff:
New York Times - Media diversity editorial:
New York Times - Safire:
Washington Post - Kurtz:
2003-07-28: Former BBC radio DJ and TV host Noel Edmonds is to return to radio after a 20-years absence as a stand-in presenter on Johnnie Walker's Radio 2 drivetime show for two months from August 4.
Walker, who announced on air last month that he had cancer (See RNW June 7), is undergoing treatment for the disease and Edmonds commented, "This is a bittersweet experience. I am a huge fan of Johnnie's and I wish him a full and speedy recovery.
It's a great opportunity and I'm very excited to be back behind the mic, at the country's most listened to radio station."
Edmonds began his radio career in 1968 at Radio Luxembourg, moving to BBC radio in 1969 and then to BBC TV.
Previous BBC:
Previous Walker:
2003-07-28: The latest issue of the Australian Broadcasting Corporation's "Inside the ABC" magazine highlights the success of the corporation's Triple J network in developing the talents of Australian pop musicians.
Since it began its "Triple J unearthed " project in 1995 it gas visited 43 regions of Australia and "unearthed" 82 bands including names such as Grinspoon, Killing Heidi and Endorphin.
Commenting on the station's approach, Triple J Marketing Manager Louis Rogers said, 'one thing we constantly try to offer our listeners is experiences that they can't get anywhere else being interaction with bands, artistic expression and communication of every kind.'
As well as audio, Triple J is joining up with ABC New Media, Film Victoria and the South Australian Film Commission to offer individuals or teams AUD 15 -20,000 (USD 10=13, 000), depending on where they are based, to produce a music video clip for one of the Triple J Unearthed competition finalists.
Winning bands receive a prize package which includes recording time with Triple J music producers, their track played on air, an opportunity to perform in a live concert event with a major Australian headline act and an audio and digital postcard about them to feature on Triple J and their website.
The magazine talked to members of Tasmanian five-piece band from Launceston, the Dead Abigails, who were one of the winning bands from the state about the way they had benefited.
Drummer Randall Stafford said that it was hard to build up a huge fan base with a population of no more than 70,000 in Launceston adding, "There's no doubt that winning Unearthed has provided a kick-start to the band's career. "
"Radio play in Australia is why you do it, that's what it's all about! We're on radio at the moment - people are now conscious of who we are and it's been great to be affiliated with Triple J - it's been a real leg up for us."
Previous ABC, Australia:
2003-07-27: Yet again the politics, about which we continue to report as they develop, concerning new Federal Communications Commission media regulations were the main regulatory story of the week: Elsewhere there was a reasonable level of routine radio activity.
In Australia, the Australian Broadcasting Authority (ABA) has announced that it is to advertise for bids for a new commercial FM licence for Adelaide in late August with an auction expected in late October; the licence is to be the first allocated in a series of major city licenses to be auctioned.
After Adelaide, the process for allocation of new Brisbane and Sydney licences will commence in February next year with auctions proposed for April an then for Melbourne where the process is due to start in May next year with the auction proposed for August.
In Canada, the Canadian Radio-television and Telecommunications Commission (CRTC) has again renewed a significant number of licences as well as approving a number of amendments.
In order of province they included:
Alberta:
New 13,000 watts English language country format FM in Olds.
Renewal of licence of CKIK-FM, Calgary and its transmitter CKIK-FM-2 Banff, until August 31, 2010.
Renewal of licence of CIRK-FM, Edmonton, until August 31, 2010.
Renewal of licence of CJCA -AM, Edmonton, until August 31, 2010.
Renewal of licence of CKNG-FM, Edmonton, until August 31, 2010.
Renewal of licence of CJOK-FM, Fort McMurray, and its transmitter CJOK-FM-1, Tar Island,until August 31, 2010.
Renewal of licence of CJRX-FM, Lethbridge, until August 31, 2010.
Renewal of licence of CFRV-FM, Lethbridge, until August 31, 2010.
Renewal of licence of CKSA-AM, Lloydminster, until August 31, 2010.
Renewal of licence of CFMY-FM, Medicine Hat, until August 31, 2010.
Renewal of licence of CHUB-FM, Red Deer, until August 31, 2010.
British Colombia:
Renewal of licence of CKNL-AM, Fort St. John, until August 31, 2010.
Renewal of licence of CIFM-FM, Kamloops and its transmitters CIFM-FM-2 Clearwater, CIFM-FM-3 Merritt, CIFM-FM-4 Clinton, CIFM-FM-5 Barriere, CIFM-FM-6 Cache.
Renewal of licence of CJNL-AM, Merritt, until August 31, 2010.
Renewal of licence of CFNI -AM, Port Hardy and its transmitter CFPA-FM, Port Alice, until August 31, 2010.Renewal of licence of CKKN-FM, Prince George and its transmitters CKKN-FM-1, McLeod Lake, and CKKN-FM-2, Mackenzie, until August 31, 2010.
Creek/Ashcroft, CIFM-FM-7 Pritchard and CIFM-FM-8 Chase, until August 31, 2010.
Renewal of licence of CFBV -AM, Smithers and its transmitters CHBV-FM Houston and CKBV New Hazelton, until August 31, 2010.
Application by the Canadian Broadcasting Corporation to increase the power of CBUX-FM Vancouver, from 287 watts to 1,280 watts.
Manitoba:
Renewal of licence of CJOB-AM, Winnipeg, until August 31, 2010.
Newfoundland and Labrador:
Decrease in the power of CKXX-FM, Corner Brook, from 47,000 watts to 40,000 watts
Northwest Territories:
Renewal of licence of CJCD-FM, Yellowknife and its transmitter CJCD-FM-1 Hay River, until August 31, 2010.
Nova Scotia:
Renewal of licence of CKTO-FM , Truro, until August 31, 2010.
Ontario:
Renewal of licence of CKUE-FM, Chatham, until August 31, 2010.
Renewal of licence of CHUC-AM, Cobourg, until August 31, 2010.
Renewal of licence of CFMX-FM, Cobourg, until August 31, 2010.
Renewal of licence of CFBK-FM, Huntsville, until August 31, 2010.
Renewal of licence of CKKW-AM, Kitchener, until August 31, 2010.
Renewal of licence of CFPL -AM, London, until August 31, 2010.
Renewal of licence of CICX-FM, Orillia, until August 31, 2010.
Renewal of licence of CFGX-FM, Sarnia, until August 31, 2010.
Renewal of licence of CHKS-FM, Sarnia, until August 31, 2010.
Renewal of licence of CHOK -AM, Sarnia, until August 31, 2010.Renewal of licence of CHRE-FM, St. Catharines, until August 31, 2010.
Renewal of licence of CHTZ-FM, St. Catharines, until August 31, 2010.
Renewal of licence of CKOT-AM Tillsonburg, until August 31, 2010.
Renewal of licence of CKOT-FM Tillsonburg, until August 31, 2010.
Renewal of licence of CHOW-FM, Welland, until August 31, 2010.
Renewal of licence of CKLW -AM Windsor, until August 31, 2010.
Renewal of licence of CIDR-FM, Windsor, until August 31, 2010.
Renewal of licence of CKNX-AM, Wingham, until August 31, 2010.
Quebec:
Extension until 20 September 2004 of deadline to commence operation of new developmental campus radio station in Shawinigan, Quebec
The CRTC has also issued a public notice, with an intervention deadline of August 27, concerning a number of licence applications including:
British Colombia:
Application to add low-power 40 watts FM transmitters at Sun Peaks to broadcast the programming of CKBZ-FM and CIFM-FM, Kamloops.
Manitoba: - Application for contour change and power decrease from 100,000 to 63,700 watts for CJZZ-FM Winnipeg in relation to transmitter relocation.
Ontario: - Application for the renewal of licence of CFHK-FM St. Thomas.
Quebec: Applications for the renewal of licences for:
CIHA-FM, Baie James (formerly Radisson), CIHQ-FM Champion Camp and CIGA-FM Camp LG2
Applications for the renewal of licences for CBFA-FM-1, Manouane; CBFA-FM-2, Obedjiwan; CBFM-FM, Mistassini and CBFW-FM, Wemindji, Québec
CJAB-FM, Saguenay (previously Chicoutimi).
Yukon Territory: -Application for renewal of licence of CFWY-FM, Whitehorse, and change of programming received by satellite from that from CBF-AM Montreal to that from CBUF-FM, Vancouver.
Ireland was quiet on the radio front and fairly quiet in the UK, where the Radio Authority has indicated that it is minded to approve Sunrise Radio's purchase of Mean Country AM in London (See RNW July 24).
It has also issued its assessment of the award of the new FM licence for Buxton and the High Peak in Derbyshire to High Peak Radio, which was competing against four other applicants (See Licence News, April 13).
It noted that the applicant had strong local roots and had "established a high level of recognition locally as a result of carrying out a series of five trial broadcasts in the area." It also commented, "This local commitment is enhanced by the involvement of board members with direct experience of starting up small-scale radio stations. Members considered that the business plan presented in the application was realistic, containing reasonable audience forecasts and prudent local revenue estimates. Members noted that the group had existing relationships with many local advertisers through its previous broadcasts, many of whom had written letters of endorsement to the Authority."
In the US, the Federal Communications Commission (FCC) has again been involved in the political conflict over its new media regulations as we have been reporting; it was also involved in a number of penalties for Emergency Alert System (EAS) regulations (See RNW July 22).
It also fined a Florida pirate, reduced again but refused to rescind a penalty on Radio One Inc, and cancelled one on a Pennsylvania FM (See RNW July 23).
In Texas, it has ordered Waller Broadcasting's KOOI-FM, Jacksonville, to show cause why it should not be reclassified from Class C to Class CO to permit the establishment of a first station for Converse, Louisiana.
KOOI currently operates with a power of 100kw from 447 metres height above average terrain (" HAAT"), below the Class C minimum of 451 metres. Waller now has the option of applying for a construction permit to increase the antenna height to the required Class C minimum or above.
The FCC, which in the week issued its report on the current total of broadcast stations in the US (See RNW July 23), has also issued its report on the assessment and collection of regulatory fees totalling USD 269,000,000 for fiscal year 2003.
The fees are mandated by Congress and, although they agreed with the collection, the two Democrat Commissioners Jonathan Adelstein and Michael J. Copps entered caveats about the methodology used to determine the actual fees.
Noting that the FCC should develop systems that link the fees to the benefits received, Copps commented that the Commission "merely relies on across-the-board proportionate increases from the previous year's schedule of fees" , a point re-iterated by Aldelstein who added, "I am concerned that the Commission's approach to regulatory fees does not truly recover the costs for regulatory activities on a service by service basis. "
Previous ABA:
Previous Adelstein:
Previous Copps:
Previous CRTC:
Previous FCC:
Previous Licence News:
Previous UK Radio Authority:
ABA web site :
CRTC web site:
FCC web site :
UK Radio Authority web site:
2003-07-27: Veteran US public radio broadcaster David Brown, currently senior producer of Minnesota Public Radio's business program Marketplace, is to take over as host of the programme next month when David Brancaccio, who has hosted the show for a decade, leaves to become co-host with Bill Moyers of US Public TV's NOW series.
Brancaccio joined Marketplace in 1990 as a freelance reporter based in San Francisco, opened its London bureau and became the Los Angeles-based host in 1993; he plans to continue contributing to the programme. His last show as host of the Los Angeles-produced show will be on August 22.
In a news release he commented, "I often brag that 'Marketplace' is the best gig in broadcast journalism." "The honour of serving a huge audience of smart people is one that I leave with enormous reluctance. This new venture is an opportunity to explore a new beat, politics, in a different medium, television. I assure you it is only a coincidence that 'Marketplace' is currently running a series about career choices entitled 'Starting Over.'"
Previous MPR:
2003-07-27: Vancouver host Rafe Mair who was fired last month (See RNW June 11) after 19 years with Corus station CKNW-AM following a clash over his refusal to conform to the company's employee behaviour code has now been hired by a rival.
Mair has announced on his web site that he is to start with 600 AM on September 2, commenting, "I'm specially pleased to, essentially, be working with the Jim Pattison Group where I started my radio career nearly 23 years ago. I very much enjoyed working with Jimmy whom I consider a personal friend and am delighted that he decided to recoup his investment, so to speak! "
Mair, who was being paid around CAD 300, 000 (USD 220,000) a year by CKNW, was represented in his negotiations by Vancouver broadcasting icon Red Robinson, who was 600 AM's first operations manager when it came under Pattison's ownership.
Mair was the top-rated morning host in Vancouver when at CKNW and commented of the new show "The Rafe Mair Show will, of course, feature the morning editorial at or around the usual time and we will encourage lots of listener reaction."
CKNW has yet to announce who will fill Mair's slot.
Previous Corus:
Previous Mair:
Mair web site:
2003-07-26: Clear Channel is the subject of two anti-trust investigations a US congressional committee has been told.
The revelation was made by Department of Justice (DoJ) antitrust chief Hewitt Pate when asked about the matter at a House Judiciary Committee by California Democrat Congressman Howard Berman, who complained that Department attorneys had failed to follow-up on complaints he referred to them more than a year ago (See RNW Jan 24, 2002), saying he was "extremely dissatisfied with DOJ's apparent unwillingness to initiate any kind of investigation into these serious allegations."
Pate said the DOJ had made "significant efforts to find additional evidence" and had held "a number of interviews".
"The Clear Channel matter is one of importance to us," he added. "We have an open investigation and we're going to continue to pursue that."
Clear Channel has strongly denied the allegations and Andrew Levin, its senior vice president for government affairs, said the company was confident it would escape censure. "When you run a big company, engaging in complex transactions, inquiries of this sort become fairly routine," he said in a statement.
"We are co-operating fully with all DoJ requests and we are confident the DoJ will find, as it has in the past, that our company is managed with the highest degree of integrity."
Previous Berman:
Previous Clear Channel:
Previous Levin:
2003-07-26: Helped by a rise in advertising revenues, Toronto-headquartered Corus Entertainment has reported a profit of CAD 12.3 million (USD 8.82 million)-CAD 0.29 per share - in its fiscal third quarter to the end of May, a turnaround from a loss of CAD 1.8 million (USD 1.3 million) in the same quarter of 2002.
Revenues were up slightly at CAD 155.3 million (USD 110 million) compared to CAD 154.9 million (USD 111 million) a year earlier but radio revenues were up 6% to CAD 60.1 million (USD 43.1 million) whereas TV revenues fell by 1% to CAD 75 million (USD 53.8 million); radio and TV EBITDA were each up 6% to CAD 18.3 million (USD 13.1 million) and CAD 27.2 million (USD 19.5 million) respectively.
Corus noted that radio earnings growth was limited by new copyright payments made in the quarter and added that excluding the new copyright payments, Radio EBITDA grew by 11% in the quarter.
CEO John Cassaday commented, "We continue to be satisfied that an ad recovery is underway and we're on track to deliver on our (pretax earnings) target for the year."
"Radio and our adult-targeted television properties all grew nicely in the quarter. Revenue in our kids' television business was soft but this was primarily due to timing-related shifts in advertiser spending."
Executive Chair Heather Shaw said they were "very pleased with the results this quarter, particularly our strong growth in net income...The Company continues to demonstrate its ability to assess the marketplace, adjust to changes and achieve its targets. The third quarter growth across all business divisions gives us some positive momentum for the balance of the year."
Previous Cassaday:
Previous Corus:
2003-07-26: Arbitron has reported that its cash incentive scheme for the return of diaries has improved response rates in its spring survey this year where it has been implemented but the consent rate - a measure of willingness to take part in surveys - has continued to decline.
The company says the average radio survey response rate in the Top 10 radio metros for Spring 2003 was 29.0%-equal to the Spring 2002 measure for the same markets: in these markets, Arbitron offers diary keepers in black and Hispanic households an additional cash bonus for returning a completed diary.
In markets ranked from 11 to 25, where no such incentive was offered, survey response rate declined from 33.0% in 2002 to 31.2% in 2003.
The consent rate declined by 2 points in the top ten markets and by 3.1 in the 11-25 markets.
Arbitron is now testing the impact of a cash incentive on the consent rate.
Previous Arbitron:
2003-07-26: Stockholders of Australian WorldAudio Limited, which went public in June last year and is building a national AM radio network using narrowband licences have voted overwhelmingly to support the raising of AUD 7 million (USD 4.64 million) to be used in part to speed up the network's rollout.
The licences use frequencies between 1606.5 and 1705 kHz that had formerly been used for military purposes; in all some 270 licences were sold for nominal fees to more than 50 companies including four national licensees who have Australia-wide rights if they can acquire enough local licences to build a national network.
The funds will be raised through the issue of convertible notes to Nighcam Pty Ltd. To rise up to AUD 3.5 million (USD 2.32 million) and the issue of up to 35 million new ordinary shares to raise the same amount.
WorldAudio's Radio 2 station is currently broadcasting in western Sydney and test broadcasting in Melbourne, with test broadcasts due to start soon in Brisbane.
WorldAudio has plans for the rollout of up to 31 sites and its CEO Andrew Peter Thompson said the stations would "give WorldAudio a national radio network with a potential reach of over 10 million in population and will place WorldAudio to take full advantage of the future industry conversion to digital broadcast technology."
WorldAudio has requested an extension to its deadline from the Ministry of Communications to be fully operational by November this year or risk losing its licences; its chairman Peter Solomon told shareholders that even if the extension was refused negotiations under way with New Zealand broadcaster TVNZ would enable it to roll out 13 more licences.
The company is still having problems attracting advertising but says it should reach cash-flow break-even by the end of this year. Its latest figures showed an operating loss of AUD 730, 000 (USD 484, 000)in the three months to the end of March.
Previous WorldAudio:
WorldAudio web site:
2003-07-26: Yet again MUSICMATCH retained its top station spot and AOL the top network ranking in the latest Arbitron Internet Broadcast Ratings just released.
The ratings now list whether organizations sell audio or video commercials, as opposed to banner or pop-up adverts, or not.
This is reflected below with those that do not carry commercials being distinguished.
For the week to July 13, Arbitron's top five stations ranked by Total Time Spent Listening (TTSL) with (in brackets) TTSL and Cume persons (a measure of the cumulative audience -CP) for the previous week - were:
1: Internet only artist-match MUSICMATCH - TTSL 507,716 (452,613); CP - 168,413 (159,393). Same rank with higher listening and reach. (No Commercials)
2: Hot Adult Contemporary Virgin AM & FM - TTSL 323,679 (304,282); CP - 58,540 (56,285). Same rank with higher listening and reach.
3 AOL Top Pop (Internet-only) Top 40 - TTSL 275,238 (231,263); CP - 174,432 (150,991), Same rank with higher listening and reach.
4: AOL Top Country (Internet-only) Country format- TTSL 269,326 (214,598); CP - 108,320 (89,128). Same rank with higher listening and reach.
5: Smooth Jazz format AOL Smooth Jazz - TTSL -254,645 (213,613); CP - 59,337 (50,454). Same rank with higher listening and reach.
The top five networks for the week to July 13 (Previous week's figures in brackets) were:
1: AOL Radio@ Network - TTSL - 5,991,891 (5,066,014); CP - 1,561,809 (1,398,454). Same rank with higher listening and reach.
2: LAUNCH TTSL - 2,499,368 (2,065,413); CP 625,890 - (552,232). Up from second with higher listening and reach.
3: MUSICMATCH Inc. TTSL - 1,589,055 (1,419,870); CP - 390,172 (369,556). Up from fourth with higher listening and reach.
4: The Adsertion Network TTSL - 1,138,984 (964,751); CP - 122,632 (117,238) - Same rank with higher listening and reach. (Sales network)
5: Warp Radio TTSL- 786,015 (688,264); CP - 127,618 (121,118) - Same rank with higher listening and reach. (Sales network).
Previous Arbiton Internet Broadcast Ratings (Month of June)
Previous Arbitron Internet Broadcast Weekly Ratings (Correction by Arbitron):
2003-07-25: Aided by strong performances from its cable, TV and video businesses, Viacom has reported a 21% rise in second-quarter profits to USD 659.6 million on revenues up 10% to a record USD 6.42 billion.
Radio was a weak spot with revenues down 3% to USD 551 million and cable networks the top performer with revenues up 22% to USD 1.35 billion.
Radio operating income was down 5% to USD266 million compared to a 33% increase to USD 493 million for the cable networks operations. Entertainment also performed badly with a 1% drop in revenues to USD 920 million and a 36% fall in operating income to USD 72 million.
Viacom has revised its full-year operating income prediction from mid-teens percentage growth to double-digit growth.
It said that its radio advertising revenues had been up 3% in the quarter but this had been more than offset by lower ancillary revenues including income from management services provided to syndication company Westwood One: These fell from USD 38 million a year earlier to USD 16 million in the quarter.
The radio division remains high margin, although this slipped one point to 48%.
Commenting on the radio performance to analysts Viacom President and COO Mel Karmazin said he was "guardedly optimistic that radio is seriously heading back" following changes recently made at the division.
Karmazin noted that over the past three months radio revenues had gone from a 1% fall in April to a flat month in May and an 8% increase in June with current July pacings ahead of last year.
Karmazin commented of the overall results, "Nearly every major business segment turned in an outstanding performance in the second quarter of 2003, which enabled Viacom to deliver the best second quarter in its history…Looking ahead to 2004, Viacom is exceptionally well positioned to benefit from a robust upfront advertising market, a significant increase in political advertising and the return of the Super Bowl to CBS next year."
Chairman and Chief Executive Sumner M. Redstone commented of the results, "Our record second quarter, with double-digit operating income growth in four major business segments, builds on the momentum we gathered in the first quarter of 2003, which was also a record period for Viacom."
"Spread across both advertising-based and non-advertising businesses, this strength once again highlights the fundamental growth attributes of Viacom's assets, our ability to consistently deliver superior results, and our ability to seize growth opportunities both internally and externally."
Viacom has also opted to pay a dividend for the first time - of 6 cents a share payable on October 1 - and Redstone said this highlighted the company's "financial strength and flexibility" including the "ability to generate significant amounts of free cash" and an "impeccable balance sheet."
"We believe that the unique combination of these attributes, including a quarterly cash payout," he continued, "will make Viacom an even more attractive investment to an even broader range of investors who share our confidence in the Company's long-term growth potential."
There were similar words from Clear Channel chairman and CEO Lowry Mays about its declarations of a quarterly dividend of 10 cents a share, also payable in October. It's the first quarterly dividend paid by the company - in fact the first dividend since a one-off three cents a share payment in 1989 - and Mays said its declaration demonstrated confidence in "the company's long-term growth opportunities and financial strength."
Mays also noted that federal tax laws on dividends had recently been "improved."
Clear Channel shares ended Thursday up 2.9% at USD 40.65 and Viacom was up 4.1% at USD44.72.
In other US radio business, Cumulus has confirmed its completion of its acquisitions of two Nashville FMs from Gaylord for USD 65 million in cash (See RNW July 23) and also of four stations in Huntsville, Alabama, from Athens Broadcasting Company in a share deal (See RNW April 3). It was already operating all the stations under local marketing agreements.
Cumulus is reported to be trimming staff at the Nashville stations with some 15 staff being ousted including WWTN-FM Program Director Doug Kellett and Production Director Bruce Sherman.
Not going to completion is Magnum Radio Group's USD 4.33 million sale of six stations to Mid-West Family Broadcasting (See RNW March 11).
Both groups have agreed to dissolve the deal, blaming the Federal Communications Commission (FCC) June 2 rule changes, which it says would have affected grants required for the stations' transfer.
Dave Magnum commented that had the applications, which were amongst those put on hold when the new rules were issued, been filed a few weeks earlier the transfers would probably have been granted and then grandfathered in.
Previous Clear Channel:
Previous Cumulus:
Previous Karmazin:
Previous Lowry Mays:
Previous Redstone:
Previous Viacom-CBS- Infinity:
Previous Westwood One:
2003-07-25: In a 400-21 vote, the US House of Representatives has voted to block new Federal Communications Commission (FCC) media regulations that would allow one company to own TV stations reaching 45% of the US population; the size of the majority puts the White House in a dilemma over its suggestions that President Bush would use his veto to force through the new rules.
The vote came after frenzied lobbying by large media groups and congressional aides said News Corporation lobbyists had helped to circulate a petition, endorsed by the house leadership, saying that those signing it would vote to sustain a veto.
Attached to the petition was a set of talking paints said to have been prepared by Disney and Viacom.
Viacom, which owns CBS, and News Corporation, which owns the Fox network, each already have more stations than permitted under the former 35% national TV cap and could be forced into costly divestitures.
NBC, owned by GE, has just under the cap and Disney stations reach some 24% of the US population.
The petition failed to attract anywhere near the third of members needed to support an override.
The vote itself vote would stop the FCC funding the introduction of its new limit for one fiscal year but there are suggestions that the size of the majority may embolden its supporters to try for a permanent ban.
Previous FCC:
2003-07-25: Leading Mexican radio group Grupo Radio Centro, S.A. de C.V. has reported broadcasting revenues in the quarter to the end of June of MXN (Mexican pesos) 255 million (USD 28.2 million), a 40% increase on a year ago; for the first half of the year revenues were up 44.8% to MXN 443 million (USD42 million).
The group, which operates 14 radio stations, 11 of which are located in Mexico City, attributes the increase primarily to political advertising in connection with Mexico's congressional elections in June.
Broadcasting income for the quarter was up 144.6% to just under Ps 125 million (USD 11.8 million) and overall company net income, after provision for tax and employee profit sharing, was MXN 54 million (USD 5.1 million); For the same quarter of 2002, Grupo Rado made a net loss of MXN 41.4 million (USD 3.9 million) and thus made no such provisions.
For the half-year, broadcasting income more than quadrupled from MXN 50.3 million (USD 4.8 million) to MXN 202 million (USD19 million) and overall net income was MXN 61.8 million (USD 5.85 million) compared to a 2002 loss of MXN89.8 million (USD 8.5 million).
Previous Grupo Radio:
2003-07-25: The AOL Radio Network in its first month in the Arbitron Internet Broadcast Ratings went straight to the top network rank and also had two stations in the top five stations; one of them, its smooth jazz station was in fourth place but Jazz FM, previously third, fell to 13th.
The top five stations for June were (May figures in brackets):
1: Internet only artist-match MUSICMATCH - TTSL 1,938,314 (1,496,382); CP 545,748 (487,937). Same rank with higher listening and reach.
2: Hot Adult Contemporary Virgin Radio - TTSL 1,048,651 (1,333,140); CP 172,559 (218,303). Same rank with lower listening and reach.
3: AOL Top Pop - TTSL 964,246; CP 451,783. First month in ratings.
4: AOL Smooth Jazz - TTSL 954,519; CP 154,173 First month in ratings.
5: Classical format WQXR-FM - TTSL 944,008 (964,874); CP 87,086 (92,103). Down from fourth with lower and reach.
** Jazz format Jazz FM fell from third to 13th with TTSL down from 974,017 to 702,212 and CP down from 89,698 to 71,717 and News-Talk WLS-AM fell from fifth to ninth although TTSL rose from 752,632 to 763,392' its CP was down from 76,956 to 75,358.
The top five networks for June were (May figures in brackets):
1: AOL Radio Network - TTSL 21,679,740; CP 3,515,790. First month in ratings.
2: Live365.com - TTSL 10,962,524 (13,518,061); CP 1,567,685 (1,926,027). Down from first with lower listening and reach.
3: Yahoo LAUNCH - TTSL 9,816,571 (13,289,183); CP 1,450,801 (1,824,513). Down from second with lower listening and reach.
4: MUSICMATCH Inc. TTSL 6,547,106 (5,758,968); CP 1,275,972 (1,235,573). Down from third despite higher listening and reach.
5: Adsertion TTSL 4,891,470 (5,106,624); CP 330,835 (345,892). Down from fourth with lower listening and reach.
* WARP Radio fell from fifth to sixth with TTSL down from 3,413,544 to 3,314,842 and CP down from 471,870 to 386,957.
Previous Arbitron Internet Broadcast Ratings:
Previous Arbitron Internet Broadcast monthly ratings:
2003-07-24: As the US House of Representatives debates on the Federal Communications Commission's new media regulation rules, speculation has increased that a move to overturn the increase of the TV network ownership cap to 45% from 35% through denying funds for its implementation may be approved and US President George W Bush has indicated he would veto the legislation if it is passed by both houses of Congress.
The measure has already been approved in the Senate but had been expected to fail in the House where it had been strongly opposed by Louisiana Republican Representative Billy Tauzin, the chairman of the Energy and Commerce Committee.
The House has rejected an amendment that would also have overturned the loosening of regulations on newspaper-broadcaster co-ownership and on the number of TV stations that could be owned in a market.
On Wednesday, FCC Chairman Michael K Powell defended the new regulations saying in a statement that said the Commission was "confident" in its decision.
"We created enforceable rules that reflect the realities of today's media marketplace. The rules will benefit Americans by protecting localism, competition and diversity," added Powell.
He added on the matter of the cap, "Our democracy is strong. It is not threatened by half a percent. It would be irresponsible to ignore the diversity of viewpoints provided by cable, satellite and the Internet."
Opposing his view, Democrat Commissioner Michael J Copps, told the Senate Commerce Committee that the FCC in its June 2 vote had made the "wrong" decision in terms of public interest; Copps also said that he intended to hold a series of town meetings to give concerned citizens the opportunity to express their views on whether their local radio and television stations are serving the public interest and should have their licenses renewed.
Copps referred to "so-called 'postcard' renewals after a minimal review and no public outreach to local communities."
He told the committee, "Most people do not even know that they can challenge the renewal of a local radio or television station if they believe that the station is not living up to its obligation due to a lack of local coverage, a lack of diversity, excessive indecency and violence, or for other concerns important to the community."
Copps and Commerce Committee chairman, Arizona Republican Senator John McCain have suggested possible reductions of the licence term from eight years so as more frequently review community service actions by broadcasters.
RNW comment; Acting on a variant of the old saw, "Follow the money", the logical comment on this issue if "Follow the votes." In those terms local broadcasters generally have much more clout than a network in terms of their effects on the re-election prospects of a Senator or member of Congress and we thus tend to feel that the 35% TV cap - favoured by local broadcasters (and the National Association of Broadcasters) but opposed by the media giants - may well be renewed.
The easing by the FCC of other restrictions in terms of local cross ownership are more generally supported by local media and thus there is likely to be a different balance here since the support comes from consumer and community groups who have nowhere to go with their opposition if there is bipartisan support for retaining the FCC rules on these matters.
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2003-07-24: Veteran Denver radio personality Harold "Hal" Moore has brought an age discrimination lawsuit against Infinity's oldies KXKL-AM, which fired him in August last year, and Infinity radio itself.
63-years-old Moore, who was one year into a five-year contract when he was sacked, had been hired from KCKK-AM to co-host a new morning show, Hal and The Coach, with Rick Marshall.
He had made an initial age discrimination complaint to the Equal Employment Opportunity Commission, which in April gave him the option of suing the station within the next 90 days.
His current suit calls for an award of lost wages and benefits, reinstatement and emotional distress damages and alleges that he was fired in breach of his contract because he was the station's only full-time on-air personality who was outside the target demographic age group of 25 to 54 years.
Moore says he was told by a relatively new program director that he lacked "chemistry" between him and his co-host; he adds that he was not given any time to change his performance and says that the only criticism he received related to his supposed "lack of energy".
Previous Viacom-CBS-Infinity:
Rocky Mountain News report:
2003-07-24: Montreal-headquartered Astral Media and Toronto-headquartered CHUM have both reported strong results in their third quarters running to the end of May.
Astral did far better; its profits were up 43% to CAD 20.2 million (USD 14.7 million), or CAD 0.36 per share, from CAD 14.1 million (USD 10.3 million) a year earlier and revenues were up 21% to CAD 126.5 million (USD 92 million).
It attributed the improvements to strong results from its specialty-TV operations - overall TV revenues were only up 12.3% to CAD 92.5 million (USD 67.3 million) - and radio, where revenues, boosted by acquisitions and excluding assets held for disposal, were up nearly 155% to CAD 25 million (USD 18.2 million); radio EBITDA, also excluding assets held for disposal - which showed a loss of CAD 39 million (USD 28.4 million), was up 225% to CAD 8.6 million (USD 6.26 million).
Commenting on the results, President and CEO Ian Greenberg said, "We have again demonstrated a very solid financial performance overall this quarter with our Television and Radio groups leading the way"
"With continued strong growth in the number of pay TV subscribers of 13.7% year-over-year and advertising revenue growth of 38% in the third quarter, the Television group continues its solid performance."
"Radio also had considerable success in the quarter with continued organic revenue growth of 13% and, with the inclusion of the stations acquired from Telemedia, an overall revenue increase of 153%. The Outdoor Advertising group's performance is consistent with lower growth rates in the industry as a whole, reporting increased revenues of 3% for the quarter."
Greenberg added that the group remained confident it would meet its targets for the full year.
CHUM profits for the third quarter were up 37.5% at CAD 9.9 million (USD 7.2 million)- CAD 0.85 per share) on revenues that rose 8.1% to CAD 143 million (USD 103.9 million).
TV revenues were up 10.1% to CAD 109.6 million (USD 79.6 million) and radio was up 6.8% to CAD 30.6 million (USD 22.2 million).
Radio EBITDA was up 29.6% to CAD 28.6 million (USD 20.8 million) compared to a TV increase of 14.7% to CAD 22.6 million (USD 16.5 million); looking ahead CHUM said radio prospects for 2004 were uncertain and it expected a more modest increase than in 2003 although its stations were "well-positioned to take advantage of any improvement in market conditions."
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2003-07-24: The future of yet another US college FM is in doubt, with a possible sale to be discussed next month.
The station concerned is WNCW-FM, the station of the Isothermal Community College in Spindale, North Carolina; it has a valuable signal from its transmitter at Clingman's Peak on Mount Mitchell, which, together with translators mean it can be heard in five states and includes urban centers such as Asheville, Charlotte, Knoxville and Greenville.
According to the Ashville Citizen-Times, interest in the station has been expressed by contemporary Christian music station WAY-FM, which offered USD 1.3 million, and also by Wake Forest classical station WCPE-FM and Charlotte Christian music station WRCM-FM. In addition an Asheville-based group of businesses called Preserve WNCW said it would also be interested in buying the license.
A special meeting of the College's Board of Trustees is to be held on August 12 to hear College President Bill Lewis present his report on the station.
The draft report, prepared by Lewis and Director of Administrative Services Stephen Matheny, outlines eight options ranging from allowing the license to lapse (effectively ruled out) through to the ultimate options to continue to operate the station or sell it.
Ashville Citizen-Times report
College draft report on WCNW (115kb PDF):
2003-07-24: UK Guardian Media Group (GMG) has reported pre-tax profits of GBP 36.9 million (USD 60 million) in the year to the end of March, more than thrice that of the previous year when they were GBP 9.8 million (USD 15.8 million).
Newspaper division revenues, the company's core, were up from GBP 331.3 million (USD 534.8 million) to GBP 376.1million (USD 607 million), and its operating profits rose from GBP 20.1million (USD 32.5 million) to GBP 26.5million (USD 42.8 million).
Revenue at GMG's radio division, which includes Jazz FM, rose from GBP 8.2 million (USD 13.2 million) to GBP 21.6million (USD 35 million) and its operating loss was flat at GBP 4.3million (USD 6.9 million).
The group has a potential dilemma over plans to take complete control of Trader Media Group in which it currently has a 48% stake; such a move would cost around GBP 500 million (USD 807 million), within reach of GMG which has no debts and cash in hand of some GBP 168 million (USD 271 million) but it could hamper any radio acquisitions that might now become possible following passage of new media legislation in the UK this month.
Also in UK radio business, the Radio Authority has made a preliminary public interest finding that would allow Asian station Sunrise Radio, which broadcasts on the AM band in London, to go ahead with its GBP 1.5 million (USD 2.4 million) for Mean Radio Holdings Ltd, which operates country station Mean Country that is also on a London AM frequency. The authority is now seeking comment on the matter.
If the deal goes through it will be seen as a welcome reprieve for Mean whose accounts to December last year showed it on the books at a value of GBP 300, 000 (USD 484,000); it had a net loss for the year of GBP 119,000 (USD 192, 000) and a turnover of only GBP 2,000 (USD 3,200).
Still in London, the UK Guardian reports that Kiss FM breakfast host Bam Bam has opted to stay with the Emap station and rejected advances from Capital Radio, which had made a GBP 1 million plus (USD 1.6 million plus) offer for him to move.
The paper quotes a Capital spokeswoman as saying that Bam Bam was among a number of people it had talked to against a background there current breakfast host Chris Tarrant's contract ends at the end of this year.
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UK Guardian report on Bam Bam:
2003-07-23: The US Consumers Union and Consumer Federation of America have described the Federal Communications Commission's Diversity Index as "an intentional distortion of market analysis driven by a desire to allow more media consolidation"
It argues that the Index, which "plays the central role in determining where to allow newspaper-broadcast cross-ownership mergers to take place" is "fundamentally-flawed".
Consumers Union Director of Advocacy and Public Policy Gene Kimmelman said the Index, "makes a mockery of meaningful antitrust and competitive market analysis for the sole purpose of allowing media giants to grow larger. This index is so nonsensical that it finds the New York Times to be a less meaningful source of news about New York than the Multicultural Radio Corp."
The report's author Mark Cooper, Director of Research for the Consumer Federation of America, commented, "The FCC cooked the books to come up with the result they wanted-and the books aren't even half baked."
…."Incredibly, the Diversity Index never considers the actual market share of media outlets. The FCC decided to ignore the audience of the individual media outlets that will actually do the merging and swapping."
As a result of this fundamental methodological flaw, the FCC's Diversity Index produces bizarre results that do not reflect media market reality.,"
He then gives three examples, saying that In New York City, Shop at Home TV and the Dutchess Community College TV each has more weight than the New York Times, In the Tallahassee area in Florida, the Thomasville Tribune with daily circulation just under 10,000 per day is given equal weight with the Tallahassee Democrat, whose more than 50,000 daily circulation puts it at almost two thirds of the daily circulation and notes that the Thomasville Tribune is given twice as much weight as the local CBS affiliate, which has over 50,000 viewers a day, and that in Altoona, Pennsylvania, the Fox affiliate, Peak Media, is given twice the weight of the NBC and CBS affiliates, even though both NBC and CBS have over four times the viewing audience of Fox.
Cooper's study, "Abracadabra! Hocus-Pocus! Making Media Market Power Disappear With the FCC's Diversity Index" also accuses the FCC of contradicting its own arguments in preparing the index.
It says that in justifying the decision to abandon the prohibition of newspaper-television cross ownership, the FCC repeatedly cited market shares and measures of the influence of outlets, but in applying the Diversity Index, it refused to consider these factors.
The consumer organisations argue that the index underestimates concentration of media markets because its simple voice count approach under-weights the market effects of cross-ownership by the largest players in the market and over-weights small and non-commercial outlets, while its valuation of different media types vastly overstates the importance of radio stations, weekly newspapers and the Internet.
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Consumers Union/Consumers Federation report (115 Kb PDF):
2003-07-23: The UK Londis group, which has some 2,240 stores, has signed up to an in-store radio service from Newsagents Radio, a service from Storm Digital Broadcasting, according to a report in the UK Telegraph.
The service will be distributed by satellite to Londis stores for whom a live daily service is being created comprising pop music, news, weather, sport interspersed with adverts and brand promotions.
Newsagents Radio, says the paper, claims a 6% increase in sales for outlets who take its service; the report ads that some four-fifths of shoppers go into stores not knowing exactly what they want and are thus more susceptible to advertising than in other locations.
It notes that in-store services are used by a wide range of organisations with some specific one-off uses for other than promotional purposes such as a Christmas broadcast from the Archbishop of Canterbury that was broadcast in Wal-Mart-owned ASDA stores five years ago.
It aalso notes that DJs from Virgin megastores' in-house broadcasts have succeeeded in moving on to mainstream stations.
UK Telegraph report:
2003-07-23: The US Fe