April 2004 Archive
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March 2004
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May 2004 
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 April comment - Considers the basis on which any indecency regulation should be based: We conclude that the FCC is behaving shamefully at the moment in terms of the manner in which it lays down the rules, in which it enforces them, and is effectively changing the goal posts during the game.
RNW March comment - More US moralizing - does the country really want to step back in time? We look back at a previous time of mass moralizing in the US and UK.
RNW February comment - Straws, camels and regulators - has the US lost its marbles over a breast? We consider what regulation concerning indecency makes sense and would be legal in the US in First Amendment terms.
2004-04-30: More record results have been reported in US radio, this time by Citadel and Radio 1 Inc.
Citadel Broadcasting reported record first quarter revenues up 12.6% on a year ago at USD 86.9 million, same station revenues up 6%, station operating income up 15.4% to a record USD 29.9 million and operating loss cut nearly three- quarters, from USD 13.8 million a year earlier to USD 3.8 million.
Overall Citadel had a net loss of USD 29.5 million (USD 0.23 per basic and diluted share) compared to a net loss of USD33.8 million (USD 0.35 per basic and diluted share) a year earlier. The loss included non-cash expense of USD10.6 million due to the write-off of deferred financing costs as a result of the repayment of USD500.0 million in senior subordinated notes in February of 2004.
Chairman and CEO Farid Suleman, said Citadel's "strategy of acquiring stations in the nation's top 100 markets while simultaneously enhancing existing markets and creating regional clusters has enabled the Company to deliver double digit revenue, station operating income and free cash flow growth in what generally has been a difficult advertising environment."
He said recent acquisitions including Memphis and Springfield should enable Citadel to continue to deliver double digit free cash flow growth and said it's refinancing and cash flow left it well positioned to continue to make acquisitions."
Looking ahead, Citadel says it continues to expect mid-single digit revenue increases for 2004 and estimates station operating income for the full year 2004 to be between USD173 million and USD177 million.
Seattle-based Fisher Communications reported net broadcasting revenues up 8% on a year ago but overall revenues were almost flat at USD 30.9 million, just up from USD 30.2 million.
Revenue from its Fisher Plaza segment was down primarily due to a significant payment from a tenant in first quarter 2003 as a result of early termination of a lease.
Loss from continuing operations was USD 9.7 million (USD 1.13 per share), nearly three times the USD 2.9 million (USD 0.33 per share) a year earlier and overall net loss was USD 9.85 million compared to USD 2.95 million a year earlier. The latest quarter figures included a non-cash net loss from derivative instruments amounting to USD 5.8 million after income tax effects whereas the 2003 figures included a similar loss of only USD 154,000 and a net gain from sale of marketable securities of USD 2.3 million after income tax effects.
Maryland-Based Radio 1 Inc reported net broadcast revenue up 10% to USD 69.7 million, operating income up 21% to USD25.4 million, and station operating income up 17% to USD 34.1 million. Overall net income was up 28% on a year earlier to USD 8.8 million (USD 0.08 per diluted share).
President and CEO Alfred C. Liggins, III, described the results as "truly a great quarter for us."
"We blew away industry revenue growth and our own guidance and had strong revenue conversion to station operating profit<" he continued. "We are seeing good strength into the second quarter and are hopeful that our relatively optimistic outlook for 2004 will turn out to be accurate. Additionally, we are seeing the deal pipeline becoming more robust and are hopeful that we will be able to grow our portfolio through acquisitions over the course of the year."
Looking ahead, Radio 1 says it expects second quarter net broadcast revenue 6-8% higher than a year ago when it was USD 81 million and second quarter 2004 station operating to be in the mid-single digit range higher than the USD 37.8 million a year earlier.
Radio 1 has also announced that it has acquired WAMJ-FM in Atlanta for USD 35 million. It has been operating the station, previously owned by the New Mableton Broadcasting ownership group that is controlled by Liggins, under a Local Management Agreement since August 2001. Liggins said in the company's conference call that over time he had acquired the interests of other owners thus making the purchase possible. He commented that the acquisition "solidifies our position in the Atlanta market," adding, " Our strong cluster of four FM stations has achieved tremendous ratings growth in the past two years and our revenue potential in this very important market is significant. Consummating this acquisition locks down Radio One's ownership and provides certainty that we will continue to be a force in the Atlanta radio market for years to come."
Also during the conference call, Liggins said the company was not only working to expand its cable TV channel TV One but also considering an Internet venture. He said they would not be spending a large sum but people were now making money from the Internet and the company felt "comfortable" to move into the area.
In other business Journal Communications has declared a quarterly dividend of USD 0.065 per share payable on June 4 and also announced that it plans to commence a cash tender offer to purchase up to approximately 8 million shares of its non-publicly traded class B common stock. If fully subscribed, it says, the tender offer will represent the repurchase of 16.5% of the class B shares held by current and former employees.
Journal has also announced a filing for a follow-on offering of 6,000,000 shares of its class A common stock. In addition, the underwriters have an option to purchase up to an additional 900,000 shares of class A common stock from the Company. Net proceeds are to be used to reduce outstanding indebtedness, to fund the recently announced Green Bay television acquisition and for general corporate purposes.
Previous Citadel:
Previous Fisher:
Previous Journal:
Previous Liggins:
Previous Radio 1 Inc.:
Previous Suleman:
2004-04-30: In a row going all the way to the top in Australia, a dispute has grown up in Australia about the accuracy of claims by Sydney 2UE morning host John Laws that his former colleague on 2UE and current 2GB breakfast host Alan Jones that Jones told him in 2000 he threatened to withdraw support from PM John Howard's government unless Prof David Flint was reappointed as head of the Australian Broadcasting Authority (ABA).
The allegations have led to calls for an investigation into Howard's behaviour and the dismissal of Flint.
Opposition Communications Spokesman Lindsay Tanner, who said that the claim boiled down to an allegation that "John Howard has corruptly traded appointments to the statutory regulator in return for political support" went on to say Flint's position with the ABA is now untenable.
Laws said on his 2UE show that at a dinner party in 2000 Jones told him, "I was so determined to have David Flint re-elected that I personally went to Kirribilli House and instructed John Howard to re-elect David Flint or he would not have the support of Alan Jones in the forthcoming election."
At the time both men were being investigated in the cash-for-comment scandal that involved the talk hosts taking payments from businesses that the ABC Media Watch programme said was for favourable editorial comment. Laws also said Jones told him, "You should be careful. If it weren't for David Flint, God knows where we would be."
The Australian Prime Minister told ABC radio, "No such conversation at Kirribilli House or anywhere else took place between Mr Jones and myself."
"Indeed, I can't recollect Mr Jones ever raising Mr Flint's position with me, let alone in the threatening terms that have been suggested."
Jones has also denied the allegation, but confirmed in an interview on 2GB that he was at the dinner party but then adding, "This was in 2000 and if there's someone listening to this program who thinks they can actually recall accurately what was said in the year 2000 at a dinner party . . . than I would really challenge their integrity… I don't think I have ever had a discussion with John Howard about David Flint ever, as memory tells me, ever."
Opposition Leader Mark Latham told ABC radio, "We need to get to the facts of the matter. We need an independent public inquiry."
Following the cash-for-comment enquiry rules on disclosure of payments to hosts were tightened up but there have been allegations of weakness by the regulator and the Media Watch programme, which has been focussing on the latest allegations over a Telstra deal with 2GB under which the communications company paid AUD 1.2 million (USD 880,000 ) to sponsor Jones' programme, has broadcast details of the agreement after the ABA lost a case to suppress it.
Media Watch also gave details of a letter written by Professor Flint to Jones in 1999 in which he praised the broadcaster's "extraordinary ability" to capture "the opinions of the majority on so many issues".
Previous ABA:
Previous Flint:
Previous Jones:
Previous Laws:
ABC, Australia report:
Sydney Morning Herald report:
2004-04-30: US National Public Radio (NPR) host Bob Edwards finally signs off today from Morning Edition, just short of 25 years with the show, which celebrates its anniversary in autumn.
There has been considerable protest over the replacement of Edwards, who launched the show in 1979. From Monday, the show will be hosted by Steve Inskeep and Renee Montagne until permanent replacements are named.
Previous Edwards:
Previous NPR:
2004-04-30: The latest report of the BBC Complaints Unit, covering the period from January to March this year says that complaints have more than doubled since the Corporation introduced an e-mail complaint facility on its web site and in a foreword acting Director General Mark Byford that less than a third of complaints were dealt with inside target times.
It was released in conjunction with rulings by the BBC Governors' appeals committee, which ruled on cases involving seven items and upheld three appeals.
In all, the complaints unit dealt with 363 complaints concerned with 240 items in the quarter compared to 342 complaints relating to 231 items in the final quarter of 2003.
It upheld 77 complaints, 16 of them partly, in the latest quarter compared to 55, 15 of them partly, in the previous quarter.
Of the total complaints, 120 related to matters of fairness and accuracy, up from 84; they related to 78 items, up from 69.
The remaining 243 concerned matters of taste and standards, down from 252; they related to 162 items, up from 156
For The full year to the end of March, the unit dealt with 1640 complaints, compared to 794 in the full year before e-mail complaint facilities were introduced. Of the 1640 complaints, which related to 875 items, 367 were about matters of fairness and accuracy, relating to 274 items, and 1273 were about matters of taste and standard, relating to 601 items.
In the most recent quarter, 28 complaints were upheld, including fairness and accuracy complaints related to nine items were upheld, four of them involving radio, and taste and standards cases involving 19 items, two of them radio.
The radio complaints upheld were against:
*Unfair - The BBC Radio 4 Today programme over a report on a decision by Cambridge University to abandon plans for a primate research centre. Andrew Tyler from Animal Aid had outlined two key points before recording an interview but aid these had been omitted and editing had distorted his position to give the impression that his organisation was involved in extremism and violence.
In addition, since the programme makers had declined his suggestion that they interview a scientist rather than himself, he felt it unfair for his lack of scientific credentials to be challenged during the interview. As well as the complainant, five other listeners had complained on their own account and others had written in support of the complaint.
The panel ruled that clumsy editing had "created an apparent non sequitur at one point" but obscured the point being made The omitted points were said to be not directly relevant in one instance and the other to be a point that could have been included only with considerable qualification or an opportunity for it to be challenged. However the panel said that to then allow another contributor to make subsequent comment on scientific arguments without challenge and to challenge the complainant's scientific credentials was unfair.
It was noted, "Not enough was done to dissociate Animal Aid from the illegal or violent actions described in the report."
Action taken included an apology to Tyler, and a later report in which the scientist originally suggested by Mr Tyler challenged an advocate of the use of animals in medical research.
* Harmful - A complaint from three listeners who had adopted Guatemalan children over a Radio 4 PM item based on a report from Guatemala that they said gave the impression that such adoptions were illegal or discreditable and another complaint about a TV item based on the same report. It was noted that despite some legitimate concern over adoptions in Guatemala it was incorrect to say there were no adoption laws or regulation of adoption in the country. The report was held to have caused harm and the author of the original report had been spoken to about the accuracy of his research.
*Other Bias - a complaint that Sara Cox on BBC Radio 1 had endorsed support for Senator Kerry in the US presidential elections expressed by Chris Martin of Coldplay during the Grammy Awards ceremony.
The panel said in comments intended to express enthusiasm over a British success in the awards Cox had gone beyond reporting the remarks and she was reminded of the importance of maintaining due impartiality on controversial matters
*Factual inaccuracy - Making History on BBC Radio 4 in which The Chairman of the Barnes Wallis Memorial Trust complained that the programme was inaccurate in a number of respects, most significantly in crediting Sir Dennistoun Burney with the design of the R100 airship, when it had in fact been designed by Wallis.
The panel agreed that the phrasing of one comment would have given the impression that Burney designed the R100. The Commissioning Editor had discussed the issues arising from the finding with the independent production company concerned, and stressed the need for clear and accurate expression.
*Taste and standards - Bad language - two complaints over the use of the f-word in an unedited promotional version of a song played in error on BBC Radio 1's The Official Chart Show with Wes. The incident happened during a move to a disc-based system instead of using CDs
*Taste and standards - Sensitivity and portrayal - Johnny Vaughan's Fighting Talk on BBC Radio Five Live over what the complainant termed disparaging references to people with tapies (club foot) playing football causing distress to his eight-years old son who was revering from his fourth operation for the condition.
The comments from a guest said the finding, were jocularly intended rather than disparaging, but they were well beyond the bounds of acceptability.
Appeals to the governors involved seven items, four on TV and three on radio and three appeals were upheld, one involving radio.
This related to a use on BBC Radio Five Live of the word "pillaged" in relation to Israeli Policy in the Gaza strip. The complainant maintained that this reference was propaganda being used in response to Israel's legitimate self-defence against terrorism.
During a phone-in the presenter had asked, "...would [the US] try to rein in Israel if it were attacked and went off into some of the refugee camps and pillaged in the way that has been witnessed before?"
When the complaint was originally heard the word had been adjudged acceptable but not the best choice and it had been noted that it was not a direct reference to Israeli policy and that the programme had also included references to such Israeli retaliation coming about in response to a major terrorism attack by the Palestinians
The Appeals Committee noted that the formal definition of "pillage" was "to rob (a town or a village) of (booty or spoils) especially during a war and held that the BBC's reputation for accuracy depended in particular on its precise and unambiguous use of language as opposed to use in a looser sense. It regarded the use of the term "pillage" in this context as inappropriate and upheld the appeal.
RNW Comment: Although we agree with the committee in this case, we wonder what the reaction would be if comments from politicians and company spokesmen were held to similar standards. On radio it would get in the way but a rolling ticker with definitions would probably be kept very busy were the idea instituted for TV.
Previous BBC:
Previous BBC Complaints Bulletin:
2004-04-30: A chart compiled by Phonographic Performance Ltd, which collects royalties on behalf of record companies from all 600 national and local radio stations across the UK lists George Michael as the artist most played on British Radio over the past two decades.
Second was Elton John followed by Robbie Williams - who was the most played artist last year, Kylie Minogue, Bryan Adams, Madonna, Phil Collins, Cliff Richard, Mick Hucknall and Paul McCartney.
George, who picked up his award at the Radio Academy's annual music radio conference in London, said he couldn't believe the news. "I've only made six albums in 22 years so I don't know how this happened. I'm the luckiest writer on earth," he added.
Radio Academy director John Bradford described the chart as "an interesting snapshot of which artists have most shaped popular culture, as the number of radio stations both competing for our attention and playing their material has spiralled."
Previous Radio Academy:
2004-04-30: The US Federal Communications Commission (FCC) has cancelled one USD 10,000 penalty for tower violations but confirmed another for USD 3,000.
In the case of a Missouri antenna it accepted that rules relating to obstruction lighting were not violated and dropped the penalty but in Arkansas it confirmed a USD 3,000 penalty on B&H Broadcasting Systems, Inc., licensee of KZRB-FM, Texarkana, for failure to register its antenna structure.
B&H had responded saying that it had timely completed and submitted the tower registration paperwork to the commission but it noted that registration had been required prior to construction and that no evidence had been provided of any attempts by B&H to register the tower until three months after B&H was notified of the violation by the Dallas office. The penalty was confirmed.
Previous FCC:
2004-04-29: According to figures from BIA Financial Network smaller groups were dominant in the top ten radio station purchasers last year although Clear Channel remained top buyer with the purchase of 36 stations. Next was newly formed Qantum Communications, which bought 31 stations, then Max Media, which bought 28.
Cumulus was in fourth place with 26, followed by Cherry Creek Radio (24), Citadel (22), Multicultural (18), Nassau (13), then Pacific Radio Group and First Broadcasting, each with 12.
There were no blockbuster deals - the largest was Multicultural's USD 150 million purchase of Unica's stations, which compares with USD 3.5 billion in 2003 for Univision's purchase of Hispanic Broadcasting Corporation - and those made indicated a degree of "filling in" by companies building up clusters in markets where they already had a presence.
BIAfn vice-president Dr. Mark Fratrik commented of the dealings, "Given the sluggish advertising marketplace in 2003, we see the number of in-market sales a result of group owners concentrating on improving operating efficiencies. Group owners can increase cash flow margins in their existing markets by creating larger clusters of stations."
Previous BIAfn:
2004-04-29: In more first quarter results Cox Radio and Westwood One have reported figures up on a year ago but in Mexico Grupo Radio Central has gone into loss with revenues down 40.5%.
Cox reported revenues for the quarter to the end of march up 1.7% to USD 93 million but its net income was up 18.3% to USD 11.1 million (USD 0.11 per share) helped by a reduction in interest expenses from USD 9.2 million to USD 7.9 million and a USD 400,000 reduction in station operating expenses.
Cox says national revenues were up 3% but local revenues were flat and also notes strong performances from stations in Atlanta, Orlando, Tampa, Richmond and Greenville-Spartanburg but lower revenues in Miami, Houston, Jacksonville and Long Island.
President and CEO Robert F. Neil said Cox was pleased with the quarter's results, noting, "After difficult revenue comparisons in January and February, revenues began to strengthen considerably with the month of March ending up 8% over last year. Our disciplined efforts to keep expenses down enabled us to deliver station operating income growth of 6% and free cash flow growth of 20% during the quarter."
Looking ahead he continued, "As we move into the second quarter, the tone of business continues to improve and pacings are consistently positive. While we are still seeing some disparity between markets, it appears that the overall advertising environment is strengthening. This should bode well for radio."
"As a result, we expect second quarter as well as full year revenue growth to be in the mid-single digits. We feel the stage is set for a good year. We'll continue to remain focused on delivering value to our shareholders by operating our radio stations for the long term."
Westwood One reported record figures for revenues, operating income, net income and net income per share with revenues up 3% on a year ago to USD129.6 million, operating income up 6% to USD 31 million, and net income up 4% to USD 17.5 million whilst net income per diluted share was up 10% to USD 0.18 per share.
President and CEO Shane Coppola commented, "Westwood One's record first quarter operating results are indicative of the improvement we have seen, and continue to see, in the advertising marketplace…we have made investments in additional programs and distribution over the last several quarters and we expect our Company to experience a benefit in revenues and operating income before depreciation and amortization."
CFO Andrew Zaref added, "Our record operating results, combined with our ability to generate significant cash flow, continue to enable us to reinvest and grow our business, while simultaneously repurchasing our common stock."
Looking ahead, Westwood One reiterated its previously issued annual guidance to deliver revenue growth of mid-single digits, resulting in double digit growth in operating income before depreciation and amortization.
In other US radio business, Emmis has announced that subsidiary Emmis Operating Company has now priced an offering of $375 million of 6-7/8% senior subordinated notes due 2012 and that in connection with the sale it also intends to enter into a new senior credit facility in an aggregate amount of approximately $1.025 billion, consisting of a senior secured term loan facility of $675 million and a senior secured revolving credit facility of $350 million.
It also says that because of higher than expected participation in Emmis Communications' tender offer for its 12-1/2% senior discount notes due 2011, the aggregate amount of borrowing capacity under the new senior credit facility and the amount of notes being offered by Emmis Operating Company are being increased from the amounts previously announced.
And in Florida International Broadcasting Corporation has announced that WTMY- IS in Sarasota has become the first affiliate for its IBC Radio Network.
The network is an all-talk radio service focused on business, news, science and paranormal content that is now broadcasting via satellite. ICBS President and CEO Daryn P. Fleming said the signing was "very big news" for it and he believed this was the "beginning for IBCRN to achieve national recognition and increased market penetration."
In Mexico, Grupo Radio Centro reported a 40.5% fall in broadcasting revenues to MXN 116.6 million (USD 10.2 million) in the quarter to the end of March mainly because of the boost 2003 received from political advertising. It trimmed its broadcasting expenses by 2.8% but nevertheless moved from an operating profit of MXN 39.2 million (USD 3.4 million) in 2003 to an operating loss of MXN26.6 million (USD 2.3 million).
Overall Grupo Rado reported a net loss of MXN 40.3 million (USD 3.5 million) compared to a profit of MXN 8.2 million (USD 721,000) a year ago.
Grupo Radio also noted that earlier this month it filed a net loss of MXN 245.8 million (USD 21.8 million) in 2003 due to an extraordinary loss of MXN 340.7 million (USD 30.2 million) in connection with the award against it by an arbitration panel of damages of USD 21 million in an action brought against it by Infored, S.A. de C.V. and Mr. Jose Gutierrez Vivo (See RNW April 22). It is currently appealing the award.
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Previous Grupo Radio:
Previous Neil:
Previous Westwood One:
2004-04-29: Latest Irish radio ratings from the JNLR/MRBI survey covering October 2003 to March 2004 year show 87% of the adult population l in the country listening to radio each week, up 1% on a year earlier.
The listenership figure for any regional/local station was also up 1% - to 56% but a number of national stations saw a decline in "listened yesterday" figures - down 2% to 26% for RTÉ Radio One, down 2% to 24% for 2FM, and down 2% to 13% for Today FM. Lyric FM held on to an unchanged 3%.
Excluding Dublin and Cork, notable listenership figures were recorded by Limerick's Live 95FM with 56% - there are no figures for the previous year for the station - followed by WLR FM with 54%, up 13%, and Galway Bay FM with 52%, down 9%.
In Dublin, increases were recorded by Lite FM/Q102 - up 2% to 12%; Newstalk 106 and Spin 1038 up 3% and 1% respectively to 5%; and Country 106.8FM, which was up 1% to 3%. Leaders 98FM and FM104, however, were each down 2% to 20%.
In Cork, 96FM/County Sound has a listened yesterday figure of 49% - down 2% - and Red FM was down 1% to 17%.
Previous Irish Ratings:
Previous RTÉ:
JNLR web site:
2004-04-29: Phoenix radio veteran H.G. Listiak has died of natural causes in his late 50s according to the Arizona Republic that notes that Jay McCarthy, programming head of KMLE-FM, where Listiak worked on afternoon drive for 15 years with Stu Evans, had joked that Listiak was a "man of mystery" when admitting he did not know his exact age.
Listiak had been ill with strep throat and the flu and had missed a few shifts last week according to the paper.
Among his activities, Listiak delivered daily commentaries, his last being aired on Monday about the death of ex-NFL star Pat Tillman in Afghanistan. It was also posted on Listiak's personal Web site.
In all Listiak had worked in Phoenix radio for around three decades: He was on the news team at KOY-AM, before moving to KMLE.
Arizona Republic report:
Listiak web site:
2004-04-29: Following a 61% increase in turnover in the year to the end of March (See RNW April 28), the UK Guardian Media Group's radio division is planning to bid for ten new licences this year according to a report in the Guardian newspaper, which is part of the group.
The paper says GMG Radio, whose holdings include Jazz FM in London, Smooth FM - formerly a Jazz station (See RNW Dec 9, 2003)- in the north west, and the Real Radio regional stations, is also considering the launch of a classic-rock brand to bid for licences in regions such as the Solent and the north east.
GMG Radio chief executive John Myers said the unit may need a broader range of brand names to compete for the latest round of licences- 35 are to be offered by Ofcom during the next two years - and commented, "It will be a different name that will allow us to have a wider number of brands which will let us apply for licences. If there is not a gap in the market for a Jazz, Smooth or Real there might be a gap for a rock or a classic rock station."
The paper also notes that GMG's room for manoeuvre in anticipated consolidation of the British radio sector has been restricted by the GBP 593 million (then USD 965 million) deal last year to take control of Trader Media Group, owner of classified car advertiser Auto Trader (See RNW Aug 7, 2003).
Previous GMG:
Previous Myers:
2004-04-28: Progress Media's Air America "progressive" talk network, which has yet to announce new outlets in Chicago and Los Angeles to take the place of the Multicultural Broadcasting stations that dropped it in a dispute over finances, is now reported to be losing two of its senior executives.
The Chicago Tribune reports that former AOL executive Mark Walsh has stepped down as CEO and says the network has also confirmed that Dave Logan, Air America's vice president for operations and programming, has been replaced.
Walsh, one of the founders of the network remains a major shareholder and the paper says he said the parting was amicable and he will maintain a limited relationship as a senior adviser.
Chairman Evan Cohen said the departures were part of the normal growing pains of a start-up, telling the Tribune, "Businesses have an evolutionary process. If you're looking for `Shake-up at Air America Radio,' that's a creation in your own mind."
Giving credit to Walsh for building up the network so far he added," Mark didn't want to grind it out day-to-day."
There was no comment from Logan, an experienced radio professional with programming experience in Chicago, New York, and San Francisco. His head of programming role has been allocated to Liz Winstead, co-host of the midmorning show "Unfiltered, "and Air America chief counsel David Goodfriend has become acting chief operating officer.
On the affiliates front, Air America has announced a new California affiliate, KYNS-AM, which has a signal covering San Luis Obispo.
Previous Cohen:
Previous Progress Media/Air America:
Previous Walsh:
Chicago Tribune report:
2004-04-28: Entercom has recorded record results for its first quarter to the end of March with net revenues up 7% to USD 87 million - same station net revenues were up 6% to the same total and same station operating income was up 10% whilst same station operating expenses were up only 3% resulting in a 28% increase in net income per share to USD 0.23.
Entercom noted a number of acquisitions - of WNSA-FM in Buffalo (See RNW April 27), which will expand its Buffalo cluster and WWRX-FM in Providence, RI (See RNW Mar 24), which it is already operating with a sports talk format utilizing selected programming of WEEI-AM in Boston; it has also filed to change the call letters to WEEI.
In addition it has agreed a USD 73.5 million purchase of Indianapolis stations WZPL-FM, WTPI-FM and WXNT-AM (See RNW April 23). The first two acquisitions are expected to be completed in the second quarter and the Indianapolis purchase in the third.
Entercom says it expects second quarter same station net revenues to be up 6% on a year earlier to approximately USD 114 million with same station operating expenses up 5% to approximately USD 62.5 million, which would result in second quarter net income per share of USD 0.44 - USD 0.45 compared to USD 0.37 a year earlier.
President and CEO David J. Field said of the results, "We are very pleased with our record-breaking results as we delivered strong growth in net revenues and station operating income, and grew our net income per share and free cash flow by 28% and 40%, respectively."
"In addition, our future prospects continue to improve, driven by a number of recent positive developments, including our newly announced acquisitions in Indianapolis, Providence and Buffalo, encouraging progress with our sales and brand initiatives, and improving business conditions."
Jefferson-Pilot Communications reported what it termed "excellent results" in the first quarter with revenues up 16% and broadcast cash flow up 39% to USD 21.8 million. This together with cost controls took earnings up 49% on a year earlier to USD 10.6 million.
In other US radio business, Cox Radio has announced a five-year quarterly ratings deal with Arbitron running until 2008. Its President and CEO Robert. F. Neil said they were glad to have a long-term deal and added, "We look forward to working with Arbitron and other broadcasters as we develop innovative ways to gather information that will benefit our existing advertisers as well as bring new advertisers to the radio advertising medium."
In the UK, Guardian Media Group (GMG), in a trading update in advance of its July release of full results, says its radio operations have increased turnover 61% on a year earlier to GBP 21 million (USD 37.6 million).
GMG Chief Executive Bob Phillis described radio as an "important part" of the Group's media portfolio and said, "We are delighted with the progress made by all 5 stations during the year and I look forward to further growth and commercial success based on these solid foundations."
Previous Cox:
Previous Entercom:
Previous Field:
Previous GMG:
Previous Jefferson-Pilot:
Previous Neil:
Previous Phillis:
2004-04-28: Emmis CEO Jeff Smulyan in a Q&A session posted on its web site takes up a number of issues including that of broadcast indecency concerning which he says whatever individual opinions are of the rights and wrongs of the current movement everybody is currently "focused about indecency on radio."
"You're talking about licenses that carry a lot of value," he comments, "and we have to be responsible about what we do with our licenses. You have to be good stewards of your licenses and, whatever the rules are, you have to play by them."
"We have adopted a zero-tolerance policy, and we have worked hard with our radio people to make sure they understand that policy and work within it. The challenge comes when you're trying to appeal to the male 18-34 audience. What that audience wants is different from what the general population wants, so you try to walk a fine line. We are determined to provide the content our audiences want, but we will do that while staying within the rules."
Commenting on Chicago station WKQX-FM (Q101), he says that it is facing a competitor who launched a "direct assault on our station, and we're feeling the effects of that. But we've made a lot of changes there and we believe we're seeing the benefits."
"We've got a strong leadership team at Q101, a solid sales team and the top morning show in the city. So we've got a lot going for us. We've also got the heritage position in alternative rock, and we intend to hold onto it. We aren't going away."
Arbitron figures just released show Q-101 falling to a 22d place tie with rival rocker WZZN-FM and Erich "Mancow" Muller's "Mancow's Morning Madhouse" on falling from seventh place overall to a 17th place tie and also slumping from eighth to 13th in the 25-54 demographic.
In marked contrast to Mancow, who like Howard Stern has been cited for indecency violations and has also been attacking the Federal Communications Commission (FCC) on his show, Stern
jumped from 15th place to 9th in Chicago with a move up from sixth to third in the 25-54 demographic.
Stern has done well countrywide, with strong showings as we have already reported in New York and Los Angeles, the first and second largest markets in the US ( See RNW April 24).
As well as succeeding where he is aired, Stern also had his effects where he'd been dropped, notably in San Diego where Clear Channel's KIOZ-FM saw its drive-time ratings in March, its first month without Stern, plunge from an 8.9 share in February to 0.7 according to Reuters.
Another US host who is in hot water, this time over comments made about Muslims, on Monday defended his comments whilst at the same time half-apologising for one comment that had led to a call from the US Council on American-Islamic Relations (CAIR) for him to be fired (See RNW April 25).
Jay Severin had said last week on his show on WTTK-FM, in response to a caller suggesting that Muslims should be befriended to help root out leaders who weren't really Muslims, "You think we should befriend them; I think we should kill them."
He had prior to this described Muslims as a fifth column in the US and commented that the "vast majority" of them were loyal not to the US but to their religion.
On his Monday show he said "To anyone who may have been offended by misunderstanding or misconstruing my remarks, I want you to know that I regret that. This is never my intention."
In a later interview with the Boston Globe he said he perhaps should have acknowledged that he wasn't talking about all Muslims when he made the comment.
He told the paper, "I have so many times offered the disclaimer that I didn't feel it necessary to utter the words, `You know, the ones who are killing us.' I appreciate that under the surgical circumstances here that I wish I kind of had… I can't assume that everyone party to the conversation joined it five seconds ago."
CAIR reacted to the Boston Globe report with a renewed call for Severin's dismissal saying that it showed his "anti-Muslim remarks were even more offensive than first thought."
CAIR's Executive Director Nihad Awad said that as well as renewing its call for Severin's "termination" it would ask the Federal Communications Commission to investigate the remark.
CAIR says hundreds of concerned Muslims have contacted the station and its advertisers to ask that Severin be fired and at least one advertiser has cancelled adverts with the station.
A Canadian host has been less fortunate than Severin according to the Toronto Globe and Mail, which reports that Ottawa Team 1200 afternoon co-host Don (Dandyman) Romani, who insinuated that Toronto Maple Leafs tough guy Tie Domi beat his wife (See RNW April 10) has lost his job.
The paper cites unnamed "sources" but then adds that operations manager Chris Gordon had refused to confirm that Romani had left, saying, "I'm still having some discussions with [Romani] and things aren't 100-per-cent resolved. It wouldn't be fair to him or anyone to say anything more at this point."
Previous Emmis:
Previous Erich "Mancow" Muller:
Previous Smulyan:
Previous Stern:
Boston Globe report:
Emmis Q&A:
Reuters report on Stern's ratings:
Toronto Globe and Mail report:
2004-04-28: The US Federal Communications Commission (FCC) has confirmed USD 10,000 penalties on two Florida pirate operators and a USD 15,000 penalty on a Georgia AM for tower and emergency alert system violations.
The USD 10,000 penalties went to Jason T. Green of Naples and Gary M. Feldman of Miami, neither of who had responded to notices of apparent violation issued in February.
The confirmed USD 15,000 penalty goes to Small Town Radio Inc., licensee of WDGR-AM, Dahlonega, Georgia, for failure to maintain operational emergency alert system equipment and failure to enclose the station's antenna tower within an effective locked fence. Small Town did not file a response to the initial notice issued in November 2002 but had subsequently petitioned for reconsideration on the basis of inability to pay.
The FCC noted that Small Town had not provided financial records to substantiate this and confirmed the full penalty.
Previous FCC:
2004-04-28: In Australia, ABC TV's Media Watch programme, which last week defeated attempts by the Australian Broadcasting Authority (ABA) to prevent it airing details of an internal report on communications company Telstra's sponsorship of Alan Jones' breakfast show on Macquarie Network's Sydney 2GB (See RNW April 20) has now aired its programme on the matter, the third edition in a row that has focussed on Jones' activities.
The programme has posted details on its web site, including a link to a PDF of Telstra's marketing plan for Alan Jones.
The ABA's final report on the matter ruled that Jones had not contravened regulations by not admitting the Telstra sponsorship (See RNW April 6).
Media Watch says the Telstra plan "sets out in black and white why Telstra would pay Macquarie Radio a fortune to sponsor the Alan Jones Show."
It cites a comment from a SWOT analysis in the Telstra the document that noted that Jones' show was the top rated breakfast show in Sydney and continued to comment on it having, "Loyal listeners who value Jones' opinion and repeat to friends and family, therefore extending the reach of the sponsorship."
The programme also notes that Jones had previously had a deal with rival Optus and that Telstra was to pay AUD 1.2 million (USD 880,000) for a year for "the title of sponsor, the ads, the live reads and Alan Jones' change of heart?"
The Swot analysis also listed: 'Weaknesses - Cynicism around live read mechanism due to cash for comment incident" and "Threats - Important to manage the announcement of the sponsorship to avoid any negative publicity."
Media Watch says things were "beautifully managed" and for months nobody raised suggestions that Telstra was more than just another advertiser despite a process in which Telstra exercised tight control, supplying at least "10 key bullet points per message on Alan Jones briefing template" that were sent to 2GB to be worked into radio scripts that were in turn sent back to Telstra for final vetting before going back to 2GB.
Previous ABA:
Previous Jones:
Previous Macquarie:
ABC Media Watch programme details:
Telstra marketing plan (289 kb PDF):
2004-04-28: The US Federal Communications Commission (FCC) says that as of the end of March the US had a total of 26,613 licensed broadcast stations, down by 76 on the figure at the end of 2003.
Of this total 13,476 were radio licences, 87 fewer than the previous total and within the radio total there were 4781 AMs - down 13, 6224 commercial FMs - up seven, and 2471 educational FMs - down 81.
Previous FCC:
Previous FCC station numbers:
2004-04-28: Two stories of radio billboards today, one from the UK and the other from the US.
The latter was definitely deliberate: It involved Salt Lake City alternative station KXRK-FM (X96) that first put up a billboards featuring a church and a rainbow--a common symbol of the gay community -and the legend, "ALTERNATIVE LIFESTYLE? … 'TIL DEATH DO US PART… www.alternativeutah.com" which goes to a web site with the two billboards on it.
After several weeks the original billboards were replaced with a second design that is similar in style but the church has been replaced with "KERRY, BILL, AND GINA - MORNINGS ON X96", the question mark is missing from the LIFESTYLE but underneath is "MUSIC" "X96 RADIO FROM HELL."
KLSTV reports that some of the original billboards were defaced and quotes morning show host Bill Allred as saying the action played right into their hands as the campaign was intended to "cause some talk."
He was dismissive of criticism from gay groups and concern expressed that the billboards "trivialised" what was a serious issue in Utah and were polarizing opinions, commenting, "I am at a loss at how this could really be this divisive. Bad taste, maybe; sure, I'll cop to that."
The second billboard was near the UK Guardian's offices and featured some changes to posters promoting Capital FM's new breakfast show.
In place of new host Johnny Vaughan and "Wake up London, Johnny's Come to Capital" was a cut out of Osama bin Laden and "Wake up London, Osama's in Capital".
The paper reports that some people wondered if Capital had been behind the changes but the company denied any knowledge of the matter.
The paper notes other instances of alterations to posters in the UK and USA and says that a possible clue to whoever was behind the changes was the initials "Dr D" in the top right hand corner of the billboard. It is asking anyone who can identify Dr D to e-mail the paper.
Previous Capital:
Previous Vaughan:
KLS report:
UK Guardian report:
2004-04-27: US religious broadcaster Salem has beaten expectations with a profit of USD 1.2 million (USD 0.08 per diluted share) for the first quarter up to the end of March compared to a loss of USD 6.1 million (USD 0.26 per share) on revenues up 11.5% to USD 43.2 million.
Operating income was more than double the figure of a year ago at USD 8 million, compared to USD 3.2 million in Q1, 2003, when the figure was down USD 2.2 million because of the denial of a tower relocation and a coverage license upgrade, and station operating income was up 26.2% to USD 15.6 million.
On a same station basis, net broadcasting revenue increased 10.0% to USD 42.6 million and station operating income increased 27.3% to USD 15.7 million for the quarter.
For the second quarter Salem is projecting net broadcasting revenue between USD47.0 million and USD47.5 million, station operating income between USD17.5 million and USD18.0 million, and net income between USD0.11 per diluted share and USD0.13 per diluted share.
President and CEO Edward G. Atsinger III, who said the figures showed the company "off to a great start in 2004", commented that the "better than expected first quarter results were driven by improvements in our developing radio properties and reflect the high growth nature of our station group in an improving advertising environment.
" We are especially pleased with our ability to leverage our 10.0% same station revenue performance into an impressive 27.3% same station operating income growth."
"In addition to our impressive financial performance in the first quarter, we positioned ourselves for future growth with a number of initiatives that will benefit shareholders over the long-term. For example, we improved our presence in the nation's largest markets, strengthening our presence in Atlanta and Honolulu, while entering the Detroit market. As a result, we have a presence in 23 of the top 25 markets, including all of the top 10 markets."
"We also recently introduced news/talk stations in Dallas, Philadelphia and Baltimore, and launched a new three-hour national morning program, Bill Bennett's "Morning in America(TM)," in over 70 markets across the country. Finally, we are continuing to make progress in our contemporary Christian music stations, as listenership, revenues and cash flow are all increasing."
Salem has also announced that it intends to offer for sale 3,100,000 shares of Class A common stock - owned by the founders of the Company and its principal stockholders, Edward G. Atsinger III and Stuart W. Epperson.
In addition, the Company and the selling stockholders expect to grant the underwriters an over-allotment option to purchase up to an additional 175,000 shares from the Company and 225,000 shares from the selling stockholders.
It says it intends to use the net proceeds from this offering - which ended Monday down a little over 1% at USD 32.73, making the basic allocation worth just over USD 101 million - for working capital and general corporate purposes, which may include the redemption of up to approximately $52.5 million principal amount of the outstanding 9% senior subordinated notes.
Previous Atsinger:
Previous Salem:
2004-04-27: Johannesburg-born British DJ Brendan Kearney has left BBC Radio Cleveland where he was early breakfast show -- 0500 to 0700 - host following an admission that he had looked at nude picture on his office computer according to the Newcastle Sunday Sun newspaper.
The paper quotes him as saying he had left "by mutual consent" and admitting that he was using the computer for purposes it was not intended for but adding that it was a fuss over "nothing" since the sites he "visited are freely available and can be accessed by anyone, even from a public library." He denied that he had downloaded, distributed or paid for any images.
Kearney, whose family home is in Stockport, Greater Manchester, said he had been living in digs at the time and would access the sites when bored after finishing his show at 07:00
"You think, `Oh, what's this?' and you just click on it," he told the paper. "You click off it and it's gone. As the boss said to me, `If you'd done it at home, there would've been no problem'…He did say to me that you just can't do that sort of thing at the BBC. It's very strict."
The BBC told the paper it would not comment on the reasons for Kearney leaving but confirmed the departure, adding that he was a freelance. Adrian Allen has replaced him on the show .Previous BBC:
BBC Radio Cleveland web site:
Sunday Sun report:
2004-04-27: According to Buffalo Business First, Entercom has won the bidding for sports-talk station WNSA-FM, which was auctioned by Adelphia Communications Corp. under the guidance of the US bankruptcy court. The purchase is subject to formal approval by the court and the US Federal Communications Commission (FCC).
The paper says Entercom upped its bid to USD 10.5 million to fight off competition from Citadel; Entercom had originally bit USD 9 million but this was topped by a USD 9.35 million bid from Citadel (See RNW April 23). The paper notes that the final price is nearly double that paid for the station by Adelphia four years ago.
Previous Citadel:
Previous Entercom:
Buffalo Business First report:
2004-04-26: For this week's look at print comment on radio, we've a mix of negative and positive, the latter about satellite rather than free-to-air radio in the US.
It came in two articles, one in the Cleveland Plain Dealer by John Petkovic headed, "The signals are pretty clear: Satellite radio is lifting off."
It begins by citing the case of XM subscriber Samantha Fryberger whom it terms, "no gadget geek. And that's what makes her radio's biggest nightmare."
Her reasons for the move: "I was working in Akron and making the commute from Lakewood," says Fryberger. "It drove me crazy having to listen to the same old garbage for two hours a day."
Expanding on the problems of free-to-air, Kit Spring, who follows the radio industry for Stifel Nicolaus, an investment house in St. Louis, commented, "Corporate consolidation has increasingly made radio cookie cutter. The formats are the same, and there are more commercials. It's fostered a sense, even among casual listeners, that radio is bland."
That says Petkovic has driven the next level of user to satellite radio. When sat-rad debuted in 2001, it relied on gadget geeks the same early devotees of cell phones, high-speed Internet, premium-channel cable TV and MP3s. Then came truckers. Then stock traders. News junkies. Music buffs. Sports fans.
"When you add it up, satellite radio exceeded 1 million users faster than any other technological device, except the DVD," says Spring. "And when you factor in unheard-of satisfaction rates up to 98 percent it's a matter of time before it becomes huge."
Petkovic also says the Federal Communications Commission (FCC) could yet be satellite's biggest friend if its current clamp-down leads to big names like Howard Stern moving to satellite which, as a subscription service, isn't subject to FCC regulation and would be likely to claim First Amendment rights to head off any attempts to regulate its content.
Spring estimates that satellite radio will have 25 million subscribers by the end of the decade and the report suggests this could build either through a "crucial mass" move of a name such as Howard Stern or through the building of a large number of niche services as suggested by XM vice president Chance Patterson who commented, "Look at reggae, blues, alt- country. There aren't enough fans to start such stations in a local market. But there are millions of fans nation ally. Once you get them listening, they don't leave."
In the Detroit Free Press, satellite also got a strong write-up from Mike Wendland, who said he had become "thoroughly hooked" by it. Receivers, writes Wendland, are now simple to install in a vehicle and move into the home and both services provide excellent technical quality. He then continues, "it's the sheer variety of music that these satellite systems offer that has so delighted me… If music is important to you, get one of them. The USD10 a month is well spent. Satellite radio is the best thing to happen to radio since FM."
Moving on to the negative, Barry Willis in Stereophile suggests that satellite is "getting to" broadcasters and comments, "Once upon a time, business competitors relied on the quality of their products and service to hang onto their shares of the market. That's the myth, at least. Increasingly, it seems they rely on regulatory and judicial intervention to stay afloat."
He then notes pressure from the US National Association of Broadcasters (NAB) to get the FCC to bar traffic and weather services from the satellite services, commenting that the" move is clear evidence that traditional broadcasters are beginning to feel the heat from satellite services."
The area where U.S. broadcasters are currently feeling most heat is, of course, related to the sudden burst of anti-indecency action in the country and although general press comment seems on an unscientific sampling to now be running more against the FCC than for it, not everyone seems to agree, and not everyone is in favour of Howard Stern's campaigning and comments over being targeted.
Amongst the latter is former Hot 97 morning host Star (Troi Torain), now working on Clear Channel's WPHH -FM in Hartford who was quoted in the New York Daily News as saying Stern should stop "whining and crying like a little baby" in his battle with the FCC.
David Hinckley quotes him as saying, "I'd rather see him take two in the back of the head and go out like a man. When John Gotti was sentenced to life in prison, he didn't even flinch. This guy asks people he's made fun of to help him. I call him Coward Stern."
The report suggests that the host may be headed back to New York and quotes him as saying since he can't "control the government or the FCC I do radio to suit the times - and it's compelling radio… if the opportunity came to return to New York, Hot 97 would not be competing with me. It would be surrendering." "
RNW comment: We wonder whether the standard questions "Who benefits?" and "Why now?" could give some useful context to these particular remarks from someone who may still be smarting after being dumped by Emmis from Hot 97 - he was making similar comments last year (See RNW June 17, 2003). A pity the Vicar of Bray is long dead: He and Star might get on.
To finish with, we move towards the political and from Paul Donovan's Radio Waves column in the UK Sunday Times, a reminder that radio isn't just light entertainment everywhere in the world.
Donovan commented on China's first phone-in radio show, Words on the Night Breeze, that began on Radio Nanjing in 1989, hosted by Xinran Hue, who became a key figure in Chinese broadcasting and is now living in England and married to the son of novelist Mary Wesley.
The stories she heard during a radio show - including tales of "forced marriage, gang rape, incest, neglect, an old man who kept his 12-year-old wife chained to the wall and so on" formed the basis of a book "'The Good Women of China" which itself is the basis of the drama on BBC Radio 4's Woman's Hour from today (Programme airs from 1000-1100 GMT and the drama itself is repeated at 18:45-19:00 GMT).
Donovan quotes Xinran on her experiences: "In western democracies, there are so many opportunities for people to tell their stories. We were the first radio show in China to allow personal opinions to be heard. The media had been a mouthpiece of the Party since 1949. I was trying to open a window so people could express themselves."
"The Woman's Hour selections," comments Donovan in comparison to some of those that aired through her show, "are less painful, ranging from family upheaval to earthquakes and a grief-stricken widow who tried to throw herself into the river until she realized she had a five-year-old son to look after."
Finally and a facet of the US that would surprise many British listeners, accustomed to moderately robust questioning of their political leaders and with an image of America as a land of free speech.
It comes courtesy of National Public Radio (NPR) ombudsman Jeffrey A. Dvorkin who commented on e-mails critical of NPR reporter Don Gonyea who on April 13 asked the US President if he felt he had "failed in any way? You don't have many of these press conferences, where you engage in this kind of exchange. Have you failed in any way to really make the case to the American public?"
To a British audience this was a soft ball that they would have expected any A or B- rank politician to handle almost effortlessly but to some US listeners the questioning was an example of "rudeness and disrespect" to the President, although others felt he was let off lightly.
Dvorkin, who quotes the whole exchange, comes to a conclusion that upholds America's reputation: "I thought Gonyea's question was well within the bounds of fair journalistic practice. Some listeners (and some conservative journalists) seem to think that the president is not to be questioned, especially in public and especially in wartime. But political accountability is also a longstanding American journalistic tradition."
"Gonyea's question was entirely in keeping with that tradition. The Washington press corps has been accused of stenography in its relations with the Bush administration. That impression has begun to dissipate as the media assumes its more natural attitude of independence and scepticism. Gonyea was respectful, and in my opinion not needlessly deferential."
After which, the first recommendation for listening - which is exclusively BBC this week as we didn't pick anything particularly strong from NPR and other organizations do not have a strong on-demand archive service - has to be the Classic Serial which was Yevgeni Zamyatin's We, a tale of conformity and the totalitarian state where dissent was death. Some Americans might favour the idea if the death squads were from the right wing (and America's new man in Iraq John Negroponte has an unsavoury reputation in terms of connections with such activities - see the Derochos web site ) - but most we're confident would find them repellent. Both the first and second of the two episodes of We are available on the BBC Radio 4 Listen Again pages.
And still with the political, Analysis - Fear and Voting - on Radio 4 on Thursday and Sunday (again still available - is worth a listen for anyone who wants to consider the efficacy of current US tactics and policies - roundly dismissed by Conservative former British Minister Douglas Hurd, who was involved in dealing with IRA bombings when in office, as likely to create terrorists.
For drama, there is also the Xinran series we have already referred to and still with Radio 4, for a heart tugging story try "She's Alright, My Mum Is", again on the Listen again page, which on Thursday looked at the stories of three young people who spend their lives caring for parents who can't look after themselves.
For those with an oddball interest in music, BBC Radio 4's "Fabulous Flops" series, which begins tomorrow (10:30 GMT), looks at the worst of British musicals.
If the musical interests are more for the successful, try BBC Radio 2 on Wednesday when Mark Lamarr at 20:00 GMT starts an eight-part series "A Beginner's Guide to Reggae." This is followed at 21:00GMT by the fifth of six "Freedom Sounds" on the musical liberation of South Africa.
And finally for music of a different kind, try BBC Radio 3 at 11:00 GMT this week for the Composer of the Week - the story of Tasmania-born Peter Sculthorpe, one of Australia's most distinguished musicians, who celebrates his 75th birthday this week, and whose compositions include "Advance Australia Fair."
Previous Columnists:
Previous Donovan:
Previous Dvorkin:
Previous Torain (Star):
Cleveland Plain Dealer - Petkovic:
Detroit Free Press - Wendland:
New York Daily News - Hinckley:
NPR - Dvorkin:
Stereophile - Willis:
UK Sunday Times - Donovan:
2004-04-26: Capital Radio's London new music station Xfm has teamed up with Infinity's New York WXRK-FM (K-Rock) to launch a co-hosted show from the end of this month.
Import-Export, to be hosted by Ian Camfield of Xfm and Danni of K-Rock will feature the "Top Five Most Wanted tracks" as well as music reviews and new releases. It will not air simultaneously on the two stations because of time zones and Xfm hopes that it may be taken up by KROQ-FM in Los Angeles.
Previous Capital:
Previous Viacom-CBS-Infinity:
2004-04-26: Radio 1 Inc. is to move from its downtown Baltimore offices in St Paul Street, which it has already put up for sale for around USD 1 million, to Woodlawn in Baltimore County according to the Baltimore Business Journal.
With it will go around 125 employees in what the paper terms a "big blow" to the central business district.
It says that Baltimore Development Corporation executives had worked for about a year to find suitable premises to include office and studio space that was reasonably priced and had accessible parking and the development corporation's president M.J. "Jay'' Brodie said he saw the move not as part of a trend but as "very much as an individual situation."
Brodie added that Baltimore city had offered the company incentives to stay, including a parking package and a tenant improvement loan deal
Radio 1 left its former headquarters in Washington D.C. for Prince George's County in 1997 and the District is trying to get it to return.
Previous Radio 1 Inc.:
Baltimore Business Journal report:
2004-04-25: Yet again this week the main licence decision came from Australia where the Australian Broadcasting Association auctioned the new Brisbane commercial FM licence for AUD 80 million (USD 58 million) (See RNW April 23)
Elsewhere it was a matter of more routine decisions.
In Canada, the Canadian Radio-television and Telecommunications Commission (CRTC) has been involved in a number of radio decisions, including, in order of province:
British Columbia:
*Denial of application by Standard Radio to convert CHOR-AM, Summerland, to a 5000 watts FM. The application had resulted in 148 supporting interventions and five against including those from The Canadian Broadcasting Corporation (CBC), which was concerned that the applicant's use of the requested channel would compromise the CBC's ability to use a channel in Enderby to provide its English-language Radio Two service, from Great Valleys Radio Ltd., the licensee of CIGV-FM Penticton, which opposed the application on the grounds that the proposed contours would encompass Penticton and its surrounding area, thereby creating a fourth station in that small market, from Jim Pattison Industries Ltd., the licensee of CKOV and CKLZ-FM Kelowna, which contended that the Kelowna market was already saturated and the proposal would result in the proposed undertaking covering the central and north end of the Okanagan Valley, thereby reaching approximately 30,000 to 35,000 people in Kelowna's Westside area, and from Silk FM Broadcasting Ltd., the licensee of CILK-FM Kelowna, for essentially the same reason as Pattison.
Standard responded that it would commit to not actively solicit advertising in Penticton and in Kelowna but the CRTC said it felt that any FM station designed to replace CHOR should have a coverage area that more closely duplicates that of CHOR's current signal and denied the application.
New Brunswick:
* Approval of application for new 50 watts low-power English-language tourist information FM in St. Stephen.
Approval of request to change the contours of CHSR-FM, Fredericton, by increasing the power from 50 watts to 250 watts and increasing the antenna height from 28.5 metres to 48 metres. This will change the station from a low-power unprotected service to a regular Class A1 FM service.
Nova Scotia:
*Approval of Radio communautaire de Radisson's acquisition of the assets of the Type A community radio programming undertaking CIAU-FM Radisson.
*Approval of application for a 1.8 watts low-power English-language tourist information FM in Truro.
Ontario:
Approval of request by the Canadian Broadcasting Corporation for a second extension - until April 30, 2005 - of the time limit to commence the operation of the new transmitter at Windsor, authorized for CJBC-FM, Toronto.
Saskatchewan:
*Approval of application by the Canadian Broadcasting Corporation for a second extension - to April 30, 2005 - to the deadline to commence operation of a new transmitter at Saskatoon for CKSB-FM, Winnipeg.
Ireland was fairly quiet with the only radio activity from the Broadcasting Commission of Ireland (BCI) being the signing of an agreement for the new Carlow-Kilkenny (See RNW April 23). In the UK, there were no radio announcements.
In the US the Federal Communications Commission (FCC) has been involved in a number of enforcement actions relating to technical breaches and has also rescheduled an auction of 290 FM construction permits and ruled that Cumulus can continue to operate a Texas FM but admonished it over its actions, particularly for prematurely taking control of the station.
The auction - number 37 - was originally scheduled for February 2001, since when procedures for the selection of bids for non-commercial educational reserved channels has been changed, but was postponed.
It will now be held on November 3 and the FCC is proposing to auction all the permits in a single-stage, simultaneous multiple-round auction.
The case involving Cumulus relates to KOLI-FM, Electra, Texas, for which a non-commercial Educational FM CP was granted to High I-Q Radio, Inc. in 1996. High subsequently agreed in 1997 with High a memorandum under which, for payment of USD 10,000 to High's then-president Larry Hickerson it would not sell the permit to anyone other than Cumulus for 14 days and then that Cumulus would acquire equipment to operate the station and lease it to High which, for USD 27,600, would give Cumulus a one-year option to acquire the station's assets for USD 238,400 on final grant of an assignment application.
In addition Cumulus was to programme the station as soon as it commenced operations under a time brokerage agreement and would pay High its expenses plus USD 500 a month.
Cumulus' Chairman, Richard Weening then made arrangements for provision of engineering services for the construction - with invoices to be sent to Cumulus although he said Hickerson, who planned to do a live morning show, was the client.
High subsequently filed to extend the KOLI permit, which was granted but before the extension had been approved High and Cumulus executed an option agreement, a time brokerage agreement ("TBA"), a loan agreement, and a lease agreement, not advising the commission of any of them although they were filed with the commission in February 1998 (the first two) and June 1998.
KOLI began operations in January 1998 as a non-commercial educational station and shortly after this High submitted an application saying that it was to operate KOLI as a commercial station; KOLI began airing commercials on February 4, 1998, and two days later Apex Broadcasting, L.L.C., which was a Cumulus competitor in the Wichita Falls market, filed a petition for emergency relief seeking revocation of High's program test authority and arguing that KOLI-FM was not authorized to operate as a commercial station and that High had violated the Commission's public file rules.
In April Cumulus and High filed for consent to assign the KOLI licence and in May that year Apex filed an informal objection to High's licence application because it had begun operations as a commercial station when licensed as a non-commercial one.
The FCC in September denied the Apex objection but cautioned High and C Cumulus for improperly commencing commercial operation and also admonished High over violating the station's public file rule but withheld action on the licence and assignment applications pending further information on the roles of High and Cumulus.
Apex applied for review in October, arguing that KOLI's commercial operation could not have been the result of an honest mistake. The FCC disagreed, although it accepted that commercial operations had begun on a non-commercial licence; it has held that the violation was not sufficient to revoke the licence, and denied Apex's review, but admonished High and Cumulus.
In so doing, it noted that Hickerson is now dead and that deadlines when it could impose financial penalties have now passed.
In a separate statement Democrat Commissioners Jonathan S. Adelstein and Michael J. Copps say the "case is replete with violations of Commission rules, including the unauthorized commencement of commercial operations for a noncommercial permittee; an unauthorized transfer of control of the station; and failure to file required documents with the Commission. We concur in these findings."
They note that each would normally result in a fine or further enforcement action but the delay prohibits fines because of the statute of limitations and conclude, "ultimately, Cumulus, the entity that prematurely assumed control of the station, walks away with a minor warning, all necessary FCC authorizations and a clean slate. Because we are not convinced that this case raises no major questions for further inquiry, we dissent in part."
Republican Commissioner Kevin J. Martin while concurring with the ruling also raised concern, writing, "I agree with the findings made in this Order, including the unauthorized commercial operation and the premature transfer of control. I am concerned, however, that the Commission's delay in action has rendered us powerless to issue a fine. We need to act in a more timely fashion so that the statute of limitations does not eviscerate our ability to enforce our rules."
RNW comment: This case seems to be a sad case of slow action by the regulator and, whatever they may conclude, action that should raise concern about either the honesty or competence of Cumulus.
In other enforcement actions, the FCC has issued a notice of apparent violation to the tune of USD 4,000 to WXDJ-FM, North Miami, Florida, over a prank in which hosts Joe Ferrero and Enrique Santos spoke to Cuban President Fidel Castro whilst pretending to be Venezuelan President Hugo Chavez.
The call, ruled the FCC, broke its regulations on broadcasting telephone conversations without prior notice that they intended to air the conversation.
It has also revoked the amateur licence held by Roger Thomas Scaggs, who has been convicted of murder for beating his wife to death with a galvanized lead pipe and also stabbing her several times in their home.
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2004-04-25: The US Council on American-Islamic Relations (CAIR) In its first "Hate Hurts America" action alert (See RNW April 18) has called for the dismissal of talk host Jay Severin on Greater Boston Radio's WTTK-FM, Boston, who it says said, "Let's kill all Muslims" during his show on Thursday.
According to CAIR it received a complaint about Jay Severin's Thursday show and when it spoke to WTTK General Manager Matt Mills he said that in a discussion about how Severin claims Muslims want to take over America, even if it takes centuries, Severin said, "I've got an idea, let's kill all Muslims."
According to CAIR Mills said he would speak to Severin to "make sure it doesn't happen again," and also admitted that if Severin had said the same thing about African-Americans that he would no longer be on the air.
In an e-mail Mills then said, "I have spoken to Jay Severin and he knows we take this seriously and do not condone offensive remarks toward any religious groups and he will be apologizing on his show Monday afternoon. He did not intend to offend anyone."
CAIR Chairman Omar Ahmad said: "We believe a mere reprimand and apology is insufficient and demand that he be taken off the air as he would be if he had attacked any other religious or ethnic group."
RNW comment: Were not quite sure how Severin could think that a suggestion to kill every member of any group wouldn't be offensive but after due thought tend to think that reprimands or dismissals are probably counter-productive. Far more sensible for Severin or any other host would be a convention in such cases holding a series - say 15 mins a day every day for a week - of show segments in which the host, under pain of dismissal, had to put the case for various issues that the offended individual or organization felt important. At the very least it ought to spark some deeper thought.
For once, we might even accept Federal Communications Commission instituting such a rule since it would not be preventing free speech but extending it by insisting on proper discussion of issues in cases of particularly objectionable bigotry.
2004-04-24: Following a 1% rise in February, March US radio advertising was up 10% on a year ago in March according to the US Radio Advertising Bureau (RAB), which says that indicators "point to this positive growth trend continuing into second quarter and picking up momentum as the year rolls out."
For March local revenues were up 11% and national ones up 5% to take the combined total to 10% while for the year so far combined revenues were up 4%, local revenues were up 5% and national revenues were up 1%.
RAB's Sales Index, which equated pre-dot com 1998 to a base of 100, the combined March figure was 138.8, the local sales index was 138.7 and the national sales index was 139.4: Year to date indices were 140.1, 139.1 and 141.6 respectively.
RAB President and CEO Gary Fries commented, "We are seeing the beginning of Radio's recovery with the March revenue result."
"Advertisers are starting to place buys earlier in the cycle, which will help boost the national business, and local continues its forward momentum. Radio is well positioned for accelerated growth as the year unfolds."
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2004-04-24: The week has ended well for Howard Stern, with his numbers up - as opposed to his number being up - and Viacom President and COO Mel Karmazin repeating his willingness to take on the FCC during the conference call for Viacom's first quarter results.
In New York, Stern topped the morning drive ratings in the Winter figures with a 7.2 share for persons 12 plus and took his share in the 25-54 demographic up from 5.9 to 10.0: His results helped Infinity's modern rock WXRK-FM move from 13th to 10th place overall for the 12 plus audience.
Stern was also doing well on the other side of the US with a 5.4 share in the Los Angeles 12 plus audience and a 7.0 share in 25-54 and a tie in the top spot with a 9.6 share for 18-34, sharing the spot with Kevin and Bean.
At Viacom, Mel Karmazin told investors that Viacom was concerned at government involvement in controlling speech and added that it considered the Federal Communication Commission (FCC) to be on a "very slippery" slop in using its power to influence programme content.
In the end, as a licensee, he said they had to follow the rules and were changing programming and instituting delay systems to protect itself but would also aggressively "take the FCC to court if the opportunity presents itself, because we believe what they are doing is not appropriate."
Karmazin cited FCC rules that say indecent material is considered to involve "sexual or excretory matter," and said Bono's "Fucking brilliant" comment at the Golden Globes was neither of these. He added that at least when "there were seven dirty words that constituted indecency, we knew what the rules were."
True to his words, Viacom is contesting a March FCC notice of apparent liability for USD 27,500 sent to WKRK-FM, Detroit, for material aired on the Stern Show last year (See RNW Mar 20).
It has filed a response arguing that in proposing it the FCC is chipping away First Amendment rights and arguing that the commission has "abruptly and systematically altered almost every aspect of indecency enforcement in ways that dramatically undermine the lawfulness of the overall scheme.''
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2004-04-24: Both Montreal-headquartered Astral Media and Toronto-based Corus have reported strong figures, for their financial second quarters to the end of February.
Astral reported net earnings from continuing operations up 16% to CAD 17.4 million (USD 12.8 million - CAD 0.31 per share) - CAD 16.1 million (USD 11.9 million after a CAD 1.2-million (USD 891,000) loss on discontinued operations, including Quebec stations it has had to divest - for the second quarter and up 23% to CAD 38.2 million (USD 28 million - CAD 0.69 per share) for the half-year on revenues up 5% to CAD 118.4 million (USD 87 million) and 10% to CAD 246.5 million (USD 181 million) respectively.
EBITDA for the first six months was up 18% to CAD 67.6 million (USD 49.7 million) and up 10% to CAD 31.0 million (USD 22.8 million) in the second quarter.
In divisional terms TV revenues for the quarter and half year were up 7.6% to CAD 90.5 million (USD 66.5 million) and 8.4% to CAD 183.6 million (USD 134.9 million), radio revenues were down 1.9% to CAD 21.2 million (USD 15.6 million) and up 23% to CAD 47 million (USD 34.5 million) and outdoor revenues were down 4.6% to CAD 6.6 million (USD 4.9 million) and down 5.7% to CAD 15.9 million (USD 11.7 million).
Astral President and CEO Ian Greenberg said they were pleased with the "double-digit growth in net earnings and EBITDA that we delivered this quarter" adding, "The strong contribution of our Television business, both in terms of advertising and subscriber revenues, was significant to our growth in the second quarter. As we have seen in the past, our well balanced revenue mix helps alleviate the seasonal fluctuations of advertising revenues."
Corus reported profits in the quarter to the end of February up 18% to CAD 8.3 million (USD 6.1 million - CAD 0.19 per share) on revenues up 5% to CAD 155 million (USD 113.9 million) but profits for the half year were down 8.1% to CAD 14 million (USD 10.3 million - CAD 0.33 per share).
The second quarter rise was down mainly to improved TV performance - revenues were up 5% to
CAD 75.2 million (USD 55.2 million) and Content division revenues up 18% to CAD 34.3 million (USD 25.2 million) while radio revenues fell 2.2% to CAD 47.8 million (USD 35.1 million) although cost controls helped increase radio division profits by 9% to CAD 7.7 million (USD 5.7 million).
For the half year, TV revenues were up 8% to CAD 169.4 million (USD 124.4 million), content revenues were up 26% to CAD 65 million (USD 47.8 million) and radio revenues were up 0.4% to CAD 108.6 million (USD 79.8 million).
Corus Entertainment Executive Chair Heather Shaw said they were " pleased with the solid earnings growth delivered by all three operating divisions in the first half of this fiscal year."
"The Company has responded well to specific business challenges and has managed the balance of our asset portfolio to ensure continued growth in shareholder value."
Corus' Board of Directors has approved the Company's second semi-annual dividend for holders of its Class A and Class B shares of CAD 0.02 and CAD 0.025 respectively: Payment is due on June 30.
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2004-04-23: Viacom has reported record first quarter revenues of USD 6.8 billion, up 12% on a year earlier, operating income up 20% to a record USD 1.2 billion, and net earnings up 60% to USD USD711 million (USD 0.41 per diluted share) including the recognition of a tax benefit of USD141 million, net of minority interest, or USD.08 per diluted share, from the resolution of the Company's federal income tax audit for the years 1997 through May 4, 2000.
It puts most of the gains down to a 21% increase in overall advertising revenues to USD 3.2 billion and a 21% growth in its cable networks.
In divisional terms, cable network revenues were up most (21%) AT USD 1.4 billion, followed by TV - up 18% to USD 2.27 billion and then outdoor and entertainments, each up 7% to USD 403 million and USD 851 million respectively: Radio revenues were up 3% to USD 455 million and video was down 1% to USD 1.5 billion.
Radio operating income was up 5% to USD199 million reflecting a 3% increase in advertising revenues driven by local advertising spending. The Company's top 10 radio markets, paced by New York, Los Angeles, San Francisco and Boston, grew revenues 6%.
Commenting on the results Chairman and CEO Sumner Redstone said they "put the Company on a fast track for another record year in 2004."
"We are off to a great start with growth in every important metric," he added. "We generated impressive revenue gains across all of our core businesses."
Regarding Viacom's planned divestiture of its Blockbuster video business he said this would "further refine our focus on the core assets that hold the greatest promise for our future."
President and COO Mel Karmazin said the results highlighted "Viacom's ability to grow revenues, pick up market share and maximize our leading positions in the fastest growing advertiser-supported media businesses."
"Equally important," he continued, "we demonstrated our superior capability to leverage this growth into strong bottom-line results, while continuing to expand our margins."
Looking ahead, Viacom is sticking by its previous full year forecasts of revenue growth of 5% to 7%, operating income growth of 12% to 14% and earnings per share growth of 13% to 15%. It notes that its operating income and EPS guidance excludes the 2003 non-cash charge related to Blockbuster and the 2004 tax benefit from the resolution of the Company's federal income tax audit.
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2004-04-23: Entercom has announced a USD 73.5 million deal to purchase three Indianapolis stations - WZPL-FM, WTPI-FM, and WXNT-AM, from Indianapolis-based MyStar Communications Corp. It says it expects to start operating the stations under a time-brokerage agreement in mid-June and President and CEO David J. Field said the stations had a "proud history and we aim to build upon their success by delivering compelling programming to our listeners and excellent results to our advertisers."
"Indianapolis is a terrific market and we look forward to making a positive contribution to the community," he added.
In another US radio deal. Citadel has announced agreement on a USD 22 million purchase of WMAS-AM and FM. Springfield, Massachusetts, from with Lappin Communications, Inc.
Citadel chairman and CEO Farid Suleman said the acquisition was "consistent with the Company's strategy of acquiring radio stations in the Nation's top 100 markets."
"These stations are leading stations in Springfield and will enhance the Company's position in the New England region [where Citadel has 21 stations]," he added.
In Buffalo, Entercom and Citadel may be in a bidding war for Adelphia Communications' sports format WNSA-FM according to a Wednesday report in Buffalo Business First, which says that Citadel has submitted a bid of USD 9.35 million, topping a prior offer of USD 9 million from Entercom.
Adelphia, which is due in a hearing in the U.S. Bankruptcy Court in Manhattan on April 26, had accepted the En