April 2006 Archive
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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 previous relevant story. Regarding external links see note at end of page.
RNW April comment - in "Live or later: Implications of on-demand audio" looks at the implications for radio of the change from a mainly live-reception mode to a listen when you want one.
RNW March comment - in "The Battle for rating" considers whether Arbitron can retain its business against potentially superior technological competition to the PPM.
RNW February comment - asks whether commercial radio's current business model can survive new technologies and competition.
2006-04-30: Last week was mainly one of routines for the regulators with the main news in the US the nomination of Federal Communications Commission chairman Kevin J. Martin for a second term.
Elsewhere there were no radio decisions from Australia or Ireland but in Canada the Canadian Radio-television and Telecommunications Commission (CRTC) was involved in various radio-related decisions including (In order of province):
British Columbia:
*Renewal until 31 August 2013 of the licence of CHBE-FM, Victoria: The station along with CFAX-AM was acquired by CHUM from Seacoast Communications Group Inc., an acquisition that was made subject to conditions relating to a proposed package of tangible benefits and payment of Seacoast's arrears for its Canadian talent development expenditures. These conditions have been met.
*Renewal from 1 September 2006 to 31 August 2007 of the licences of the English-language radio networks Sportstalk, The Stirling Faux Show, Home Discovery (formerly known as The Home Ideas Show), Money Talks and Housecalls.
Quebec:
*Administrative renewal until 31 August of the licence of CKNU-FM, Donnacona and its transmitter CKNU-FM-1, Sainte-Croix-de-Lotbinière: The Commission notes that it heard the application for renewal of this licence at its 20 March 2006 Public Hearing in Québec but will not be able to rule on this application before the current licence expires.
Saskatchewan:
*Approval of 100,000 watts Rock and rock-oriented music format English-language commercial FM in Weyburn. Applicant Golden West Broadcasting Ltd. committed itself to Canadian content for 40% of all its popular music broadcast each week, above the minimum 35% normally required.
The CRTC noted that Weyburn currently has two local stations - Golden West's country format CFSL-AM and a low-power tourism information service and said it considered the proposed station would bring greater programming diversity to the Weyburn radio market.
The CRTC also issued two public notices concerning applications, one with a May 30 deadline for submission of interventions or comments and the other with a May 31 deadline.
The first includes the following radio applications:
Alberta:
*Application to add 50-watt FM transmitters at Slave Lake, Weberville and Hines Creek to broadcast the programming of CIAM-FM, Fort Vermilion.
Ontario:
*Application to renew the licence of CKDO-AM, Oshawa, and its transmitter CKDO-FM-1, Oshawa.
*Application to increase the power of CHIN-AM's transmitter CHIN-1-FM, Toronto, from 35 watts to 161 watts, relocate the transmitter and decrease the antenna height.
Quebec:
*Application to increase the power of CJBE-FM, Port-Menier (Île d'Anticosti) from 16 watts to 88 watts, relocate the transmitter and change broadcast frequency. The change would result in a change of the CJBE-FM status from a low power unprotected service to a regular Class A service.
The second includes the following radio applications:
Manitoba:
*Application to add a 3,700 watts FM transmitter at Swan Lake to broadcast the programming of CINC-FM, Thompson.
*Application by Radio communautaire du Manitoba Inc. to amend the licence of community type A CKXL-FM, Winnipeg, to allow it to reduce its weekly station-produced programming from 121 hours to 68 hours. The licensee says the station, which relies on volunteers, does not have the resources to maintain 121 hours a week of station-produced programming.
Nunavut:
*Application to add a 250 watts FM transmitter at Iqaluit to broadcast the programming of CJLF-FM, Barrie, Ontario.
Ontario:
*Application to increase the day and night power of CKPC-AM, Brantford, from 10,000 to 25,000 watts.
*Application to add a 26,915 watts FM transmitter at Foymount to broadcast the programming of CKJJ-FM, Belleville.
*Application to relocate the transmitter, reduce its antenna height and decrease the power of CHYR-FM, Leamington, from 19,320 watts to 10,650 watts.
*Application to relocate the transmitter, reduce its antenna height and decrease the power of CFLZ-FM, Niagara Falls, from 7,200 watts to 4,000 watts.
Quebec:
*Application to renew the licence of CIRA-FM-1, Sherbrooke.
In the UK Ofcom has published its reasoning for the recent awards of the new North East England regional FM to Saga and the new Southend FM licence to Southend Radio Limited (See RNW Apr 26) and has also given the reasons for six community licence awards made earlier this month (See RNW Licence News Apr 23).
In the cases of five the awards it allowed each of the groups to seek up to half its annual income from programme sponsorship or the sale of advertising but for Cambridge station 209radio income from advertising and programme sponsorship was barred because its area is within that of a local commercial station (Star 107) with between 50,000 and 150,000 adults within its coverage area.
In most of the cases the awards were made on the basis of experience in broadcasting, demonstration of support for the proposed services and provision of training.
Ofcom also published its completed reviews of output (Individual PDFs for each station) on radio stations that have recently undergone a change of control, none of which had its Format amended as a result of the review.
The licences involved were:
Licences operated by Forever Broadcasting plc
Acquisition of licences operated by Tainside Ltd (Choice FM) by Capital Radio plc
Acquisition of Time FM (Thamesmead) and Fusion 107.3 (Lewisham) by London Media Company Ltd
Acquisition of SouthCity FM by Southampton Leisure Holdings plc
Acquisition of Radio Ceredigion by Tindle Newspapers Ltd
Licences operated by Radio Investments Ltd
Acquisition of Star 106.6 by the London Media Company Ltd
Acquisition of 2BR FM by The Local Radio Company plc
Acquisition of Telford FM by MNA Broadcasting Ltd.
Acquisition of Delta FM by Tindle Newspapers Ltd.
Acquisition of Dune FM by The Local Radio Company plc
Licences operated by GWR Group plc
Licences operated by Saga Ltd. (Management Buy-Out)
Acquisition of Spirit FM by The Local Radio Company plc
Acquisition of KCR FM by The Local Radio Company plc
Acquisition of Mercury FM (St Albans & Watford) by Adventure Radio Ltd.
Acquisition of Your Radio (Dumbarton) and Your Radio (Helensburgh) by Clyde and Forth Press Ltd.
Licences operated by The Wireless Group plc
Overview of SRH 355 Reviews
Acquisition of Hertbeat FM by Shadow Radio Holdings Ltd.
Acquisition of Bath FM by The Local Radio Company plc
Acquisition of Century 106 (East Midlands) by Chrysalis Radio Ltd
Acquisition of Juice FM (Liverpool) by UTV Radio (GB) Ltd
Acquisition of FM107 The Edge by Perth FM Ltd.
Acquisition of Reading 107 by Madejski Communications Ltd
It also announced the names of 12 successful bidders in the first of a new series of auctions of spectrum that could yield large returns to the British government.
The winners in this case were bidding for spectrum in the 1781.7-1785 megahertz band that is suited for operating private mobile phone networks in limited areas.
The provisional winners were British Telecommunications PLC; Cable & Wireless UK (England); COLT Mobile Telecommunications Ltd; Cyberpress Ltd; FMS Solutions Ltd; Mapesbury Communications Ltd; O2 (UK) Ltd; Opal Telecom Ltd; PLDT (UK) Ltd; Shyam Telecom UK Ltd; Spring Mobil AB; and Teleware PLC but the amounts of the winning bids are still to be released.
Other spectrum due to be auctioned over the next four years includes that in the 1452-1492 MHz (L Band) range suitable for mobile multimedia and broadband wireless and 1500 MHz to 2690 MHz band - the "3G expansion band" that can also be used by outside broadcast vehicles.
Ofcom also issued more consultation documents, this time relating to proposals for a review of restricted service licences (RSLs), permanent audio distribution system
(ADS) and Community Audio Distribution Systems (CADS) services with restricted coverage using what was formerly defined as non broadcast spectrum - regarding which trials are currently being conducted, and the policy for the release of up to 8 MHz of unused spectrum in the 55 to 68 MHz band that among other uses could be made available for ADS services.
In the case of RSLs Ofcom is asking for suggestions among other things as to the most appropriate method to be used when there are multiple applications for short-term licences covering the same event in the same place on the same date - currently it draws lots - and regarding longer-term licences, which are currently granted for five years for such purposes as hospital or campus radio, it is asking whether it should allow shorter terms and licences for commercial establishments and regarding ADS and CADS it is asking for proposals for future licensing of such services.
In the US the FCC as already noted has seen its chairman Kevin J. Martin nominated for a second term. Martin was also in the news for comments he made to NAB 2006 saying that FCC indecency rules should be clear to broadcasters (See RNW Apr 26).
Previous CRTC:
Previous FCC:
Previous Martin:
Previous Licence News:
Previous Ofcom:
CRTC web site:
FCC web site:
Ofcom web site:
2006-04-30: The reason for a Federal Communications Commission (FCC) ruling that one of XM's receivers was not complying with emission regulations (See RNW Apr 28) seems likely to be due to interference with other broadcasts that led to complaints to the Commission and that could lead to rulings over other satellite radio receivers.
According to the Baltimore Sun listeners to National Public Radio and Word FM broadcasts in the Baltimore area have been finding satellite signals on their receivers, some receiving Howard Stern from Sirius instead of NPR's news or Word FM's Christian broadcasts.
The paper quotes NPR chief technology officer Mike Starling as saying NPR has been speaking to Sirius and XM about the issue, and "they've offered their full support to look into the problem."
The report concentrates on interference from Sirius and Stern, which it says has upset some of Stern's unintended listeners and quotes Charles W. Loughery, president of the Word FM Radio Network as saying, "Usually they're upset, because they don't know what's going on. This isn't what they tuned in to [hear]."
The report says that engineers say badly installed, intentionally altered or defective equipment satellite radio receivers can become transmitters relaying to other nearby vehicles the signal they're tuned to. This, it adds, is usually 88.1 MHz, or nearby frequencies reserved for non-commercial, religious or educational stations.
Starling says the same effect can be caused by MP3 music players - or any portable audio device - if it's using a built-in or aftermarket "FM modulator" that enables it to play through a car's FM radio.
The Sun says four of Loughery's six small radio stations have reported broadcast interference from Sirius Satellite Radio, with Stern and his potty-mouth the most oft-mentioned offender and adds that Anthony Brandon, president and general manager at NPR affiliate WYPR-FM said he's forwarded 60 complaint letters from listeners to the FCC and Neil Hever, program director for WDIY-FM, an NPR affiliate in Bethlehem, Pennsylvania, said he'd forwarded 38.
"Back in December, a gentleman called from Warren County, N.J.," Hever recalled. "He said, 'I'm not going to turn you in, but I take offence to the rap music you're playing.' We said, "We don't program gangsta rap.'"
Hever said he was also concerned, adding, "We're upset because we know it's aggravating our listeners, and we know it [interference with a licensed broadcaster] is against the law… We are subject to FCC rules relating to content and language."
Hever said he fears the station will be named in a complaint to the FCC because of obscene content that listeners hear over his stations' assigned frequencies. "The toughest thing about that is we're guilty until we can prove ourselves innocent to the FCC," he commented.
Previous FCC:
Previous Sirius:
Previous XM:
Baltimore Sun report:
2006-04-30: Air America is to lose its New York flagship station WLIB-AM at the end of August according to Media Week which says that it only managed to get a five-month extension to its original deal with Inner City Broadcasting that ran to August 31.
The report says WLIB will be operated as a joint-venture to be programmed by PI, which is run by former Clear Channel Radio CEO Randy Michaels who is expected to keep a progressive talk format but replace Air America programming with more local shows but is likely to include Ed Schultz, whose show is syndicated by PI.
Media Week quotes an unnamed Air America spokesman as repeating earlier assurances that it will remain in New York but not being definite about its outlet, saying, "To be clear, Air America will not go silent on the New York City airwaves. We do not, however, comment on hypothetical speculation."
Previous Inner City:
Previous Michaels:
Previous Piquant (Air America owner):
Media Week report:
2006-04-30: The long-running row over the tower for Fordham University's WFUV-FM appears to have finally been settled. Because of new regulations about emission levels of its then transmitter on top of a student dormitory the university wanted to build a 480-foot tower directly across Southern Boulevard from the Enid A. Haupt Conservatory, centrepiece of the New York Botanical Gardens.
The height was reduced by the university to 380 feet as a result of the concerns expressed and the Federal Communications Commission (FCC) hosted meetings concerning the objections and counter-proposals (See RNW Licence News July 7, 2002).
Construction was halted by New York when the tower was 260 feet high and various court battles followed and in 2002, the Montefiore Medical Center offered to lease to Fordham the roof of a 28-story apartment building housing members of the hospital staff around a mile (1.6 km) away.
Now the New York Times reports that the last part of Fordham's tower has been torn down thanks to an agreement between the garden, the university, and the Montefiore Medical Center.
A new tower is in operation reaching 440 feet above ground level, although it is still being tested: This allows the signal to reach more listeners as well as removing the visual blight of the radio tower that was around 100 yards (metres) from the garden.
New York Times report:
2006-04-29: Conservative US host Rush Limbaugh has reached a settlement with the Palm Beach County State Attorney's Office to end the investigation of his alleged "doctor shopping" - getting multiple prescriptions for a drug without informing one doctor of prescriptions for another - to obtain prescription painkillers.
A statement that the host posted on his site from his attorney Roy Black says that the deal is to be filed with the court on Monday under which:
*The State Attorney has filed a single charge of doctor shopping with the Court. The charge is being held in abeyance under the terms of an agreement between the State and Mr. Limbaugh.
* Mr. Limbaugh has filed a plea of "Not Guilty" with the Court.
*Mr. Limbaugh will continue in treatment with the doctor he has seen for the past two and one half years.
*After Mr. Limbaugh completes an additional 18 months of treatment, the State Attorney has agreed to drop the charge.
*Mr. Limbaugh has agreed to make a USD 30,000 payment to the State of Florida to defray the public cost of the investigation.
In his statement Black adds, "Mr. Limbaugh and I have maintained from the start that there was no doctor shopping, and we continue to hold this position. Accordingly, we filed today with the Court a plea of 'Not Guilty' to the charge filed by the State…As part of this agreement, Mr. Limbaugh also has agreed to make a USD 30,000 payment to the State of Florida to defray the public cost of the investigation. The agreement also provides that he must refrain from violating the law during this 18 months, must pay USD 30 per month for the cost of "supervision" and comply with other similar provisions of the agreement."
"Mr. Limbaugh," adds Black "had intended to remain in treatment. Thus, we believe the outcome for him personally will be much as if he had fought the charge and won."
An Associated Press report in the Palm Beach Post says that the host turned himself in to authorities on a warrant filed Friday charging him with fraud to conceal information to obtain prescriptions. It adds that he and Roy Black left about an hour later, after Limbaugh was photographed and fingerprinted and he posted USD 3,000 bail.
It quotes Limbaugh spokesman Tony Knight as saying of the agreement, "It's not in the system moving toward trial. It was all a formality. It's a concluded deal. "
Mike Edmondson, a spokesman for the state attorney's office, said prosecutors had not yet received the signed agreement and added, "I am not disputing the facts, the conditions that Black represented, but until his client signed the agreement, we don't have a full agreement… I am sure it's just a timeline issue."
Following the announcement, Kraig T. Kitchin, President and COO of Premiere Radio Networks, which syndicates Limbaugh's show, said in a statement, "I'm pleased that a settlement has been reached between Rush Limbaugh and the state of Florida that finally brings this matter to an end. Rush's not guilty plea is consistent with the position he has taken all along. Throughout it all, he has continued to demonstrate an unwavering commitment to his listeners, affiliates, and advertisers. We have always stood by Rush -- for good reason -- and will continue to do so."
Previous Kitchin:
Previous Limbaugh:
Previous Premiere Networks:
Limbaugh web site:
Palm Beach Daily Post/AP report:
2006-04-29: Sirius Satellite Radio has received mixed verdict from the latest Bridge Ratings study of satellite radio subscribers for which it interviews consumers at retail outlets who have purchased satellite radio.
Initially it says brand loyalty was not a major factor for purchases but over recent weeks Sirius is more consistently cited for its programming with a higher percentage of consumers now able to mention specific Sirius programming.
At the end of the first quarter this year noted Bridge, Sirius was continuing to ride on the launch of the Howard Stern Show and added 814,000 subscribers, 26% less than in the previous quarter, whilst XM was 37% down on the previous quarter with 568,000 new subscribers.
The report estimates that 1.1 million Stern fans, 8.4% of his former terrestrial audience, have now followed him to Sirius but there is now "apathy" among former Stern listeners who had not moved about taking up a subscription.
Amongst 3,200 former Stern listeners questioned 32% said they didn't miss the show enough to subscribe and a further 25% said the costs were too high and 18% were now listening to a morning show that had been their former second preference. Of the remaining quarter, 10% said they didn't now listen to morning radio, 9% didn't see the value in satellite radio, and 6% were in the "Don't know" category.
There is also a sting for Sirius in the pattern of responses about which service people ha purchased. For the week ending March 6 Sirius led 55% to 45% and it remained equal or in the lead until the week ending April 10 when XM took a 60% to 40% lead, which it has since retained although it has slipped back a little to 57% in the week ending April 24.
XM also has the edge when it comes to those who said they made the move because of programming variety - leading by 38% to 29% in the most recent week and also leading 37% to 30% amongst those who gave absence of commercials as a reason for the move.
XM also led by 20% to 15% amongst those who gave sports packages as a reason for subscribing but lagged by 5% to 15% when it came to citing personalities as the reason.
Sirius meanwhile has announced three more shows in its line-up: It is to introduce a new Scandinavian music programme "Nordic Rox" on Sunday; is adding "Bill Bennett's Morning In America" from May 1; and in the summer will launch "Mark Cuban's Radio Maverick", a new Sunday show hosted by Dallas Mavericks Owner Mark Cuban.
Nordic Rox will be produced under the creative guidance of songwriter, producers and musicians Per Gessle, and be hosted and programmed by Radio Stockholm on-air personality Viktor Petrovski.
Sirius notes that historically, Sweden is the third largest exporter of music, after the US and Great Britain and Sirius President of Entertainment and Sports Scott Greenstein commented, "The wave of high-quality bands coming out of Sweden today rivals anything since the big UK music movements. The launch of Nordic Rox, together with our recent addition of BBC's Radio 1 channel, further establishes Sirius as the leader in discovery of new popular music around the world."
Bridge also indirectly notes the waning of the Stern factor in its figures for those who were asked to name a satellite radio company prior to their subscription purchase: At the start of February Sirius led by 59% to 41% but in the most recent week the figures were reversed.
Bridge has also released its latest study on terrestrial radio in which it questioned 2,500 listeners in San Francisco, Seattle, Dallas, Chicago, Cheyenne and Boston in the week ending April 24 about their radio and music listening habits: It says three quarters of them said their local AM/FM stations are providing what they need in their daily and weekly radio listening.
On the reverse side of the coin 54% said they were "spending more time than before with my personal music collection" and 25% that they "were listening to more music on the Internet lately."
Previous Bridge Ratings:
Previous Greenstein:
Previous Sirius:
Previous XM:
2006-04-29: London Kiss FM breakfast host Bam Bam (Peter Polton) has left the station after seven years in the slot - the show led the London ratings for the 15-24 demographic in the most recent ratings and gained regular Sony nominations with a strong year in 2000 with a number of awards including The Breakfast Music Award and Music Presentation Award for stations with an audience up to 12 million (See RNW May 4, 2000): he is to work on other broadcasting projects and has already completed a pilot TV project. The host's current three-year contract ran until January next year (See RNW Nov 8, 2003).
Drivetime host Robin Banks, who has been filling in for Bam Bam on the Emap dance music station whilst the latter has been on holiday, is to remain in the breakfast slot for now although Emap has made no announcement about a permanent succession. Banks' slot in turn is currently being handled by Simon Dale, who usually hosts the 0900 to noon slot, and weekend host James Merritt is standing in for Dale.
Emap is to re-launch the station in July, boosting its dance music output.
Previous Emap:
Previous Poulton (Bam Bam):
2006-04-29: Former Montreal DJ André Arthur, now a Member of Parliament but best known for his on air comments that led to a number of court judgments against him and his former station CHOI-FM, whose licence renewal was refused in part because of those comments over a decade, has become a member of a committee that amongst other things oversees the Canadian Radio-television and Telecommunications Commission (CRTC).
He was named as a member of the House of Commons standing committee on industry, science and technology along with former Minister of Transport and radio and TV host, Liberal industry critic Jean Lapierre, who joined Montreal station CKAC-AM in 1992
Arthur when asked about his relations with the CRTC by the Montreal Gazette responded by likening himself to a hydrant and said, "Ask a fire hydrant if it likes dogs."
He then added that he wouldn't let the past colour his judgment, saying, "I don't have an axe to grind, not even with the CRTC, I will smile nicely at them, I promise."
The committee on which Arthur now sits is one of two that oversees the CRTC and deals with telecommunications regulation as opposed to the heritage committee that oversees the CRTC's regulation of broadcasting.
On his new role he said he expected the committee to study various issues including the use of Voice over Internet Protocol (VOIP) calls and added, "We already know that there is an important report that has arrived in the (industry) department concerning the deregulation of telephone services. That fascinates me because what I understand is that we put the brakes on technological development in order to be sure to protect consumers, but consumers haven't had the technological advances."
Lapierre welcomed Arthur's appointment, pointing out the ex-shock jock has a proven technique in questioning people but suggested he might have to recuse himself on matters concerning the CRTC to avoid a conflict of interest. "God knows we have problems in Quebec, major problems of industrial transformation," he commented. "There are major problems in his region, so in that sense, welcome."
Previous Arthur:
Previous CRTC:
Montreal Gazette report:
2006-04-29: Seattle headquartered Fisher Communications has reported first quarter revenues up 9% on a year earlier to USD 33.8 million and has cut its losses from USD 5.1 million a year ago to USD 1.7 million for the quarter.
In Divisional terms TV revenues were up 10% to USD 22 million and those for radio were up 7% to USD 8.6 million whilst its Fisher Plaza revenues rose 13%, primarily because of increased occupancy and services fees.
President and CEO Colleen B. Brown said Fisher "gained solid revenue and net operating improvements in the first quarter of 2006 -- especially in our large-market ABC-affiliated television stations and our Seattle radio stations."
"Though the first quarter of the year is generally seasonally lower in the broadcasting industry, we are very encouraged by our first quarter 2006 results and look forward to the remainder of the year," she added
Previous Brown:
Previous Fisher:
2006-04-28: XM Satellite Radio says that in its first quarter it added 569,000 subscribers to reach a total of 6,501,859, 72% more than a year earlier, with revenues just more than double - up from USD 103 million a year ago to USD 208 million and a net loss up from USD 119.9 million to USD 149.2 million.
Its EBITDA loss was up from USD 71.3 million a year ago at USD 83.5 million including USD 18.4 million in de-leveraging charges - nil a year ago; USD 12.1 million in stock based compensation expenses - up from USD 300,000; a USD 8.9 figure for equity in net loss of affiliates - nil a year earlier; and other income of USD 4.6 million - up from USD 2.0 million.
XM has also announced that it has successfully completed the consent solicitation with respect to its outstanding 14% Senior Secured Discount Notes due 2009, 12% Senior Secured Notes due 2010 and Senior Secured Floating Rate Notes due 2009 with consents received from the holders of approximately 59.1% of the outstanding principal amount of the 14% Notes, approximately 99.6% of the outstanding principal amount of the 12% Notes and approximately 90.2% of the outstanding principal amount of the Floating Rate Notes
Commenting on the results President and CEO Hugh Panero said, "XM added more than 568,000 new subscribers at efficient subscriber acquisition cost levels," and added, "XM is positioned for continued strong growth in 2006 with our outstanding content and the introduction of five new radio models, including our revolutionary XM/MP3 players. With our first quarter subscriber growth, we remain on track to reach nine million subscribers and positive cash flow from operations by year end."
XM has also said it is to introduce five new receivers in the second quarter including "next-generation portable XM/MP3 players." These new models, the Pioneer Inno and Samsung Helix, allow listening on the move and the ability to record programming for later playback and also to bookmark songs heard on XM for purchase from the XM+Napster web site. It is also to introduce the portable Samsung NeXus25 and NeXus50 players, which can be connected to a docking station and are able to store up to 25 and 50 hours of content, respectively, as well as bookmark songs for purchase.
These introductions could potentially fall foul of a bill that Reuters reported earlier this week was to be introduced by a bipartisan group of lawmakers to require satellite companies to "compensate the music industry for downloads."
The report said the "PERFORM Act" or the "Parity, Platforms and Protection: The Future of the Music Industry in the Digital Radio Revolution", backed by Senators Dianne Feinstein (California Democrat), Lindsey Graham, South Carolina Republican), and majority leader Bill Frist, (Tennessee Republican) would require satellite, cable and Internet broadcasters to pay fair market value for the performance of digital music and also require the use of "readily available and cost-effective technological means to prevent music theft."
Feinstein commented that digital has been a boon for businesses and consumers but "these new technologies and business models have become so advanced that the clear lines between a listening service and a distribution service have been blurred" and said the act would "help strike a balance between fostering the development of new technologies and ensuring that songwriters and performers continue to be fairly compensated for their works."
Recording industry executives argue , says the report, "They argue that the new devices XM Radio is bringing to the market that allow customers to save songs on the receivers without paying for the download rip off the copyright holder."
"Digital sales are finally replacing physical losses," said Mitch Bainwol, chairman and CEO of the Recording Industry Assn. of America (RIAA). "If someone gets a distribution right without paying for it, that blows a hole in the digital marketplace."
Warner Music Group chairman and CEO Edgar Bronfman Jr. in testimony prepared for a hearing on the issue said, "When I see a device that permits consumers to identify the specific tracks they want from a satellite broadcast, record them and library them for future use, I call that device an iPod and I call the satellite service making that device available a download service. What is clear to everyone is that these services no longer resemble and will increasingly stray from our collective understanding of what constitutes a traditional radio service."
XM says the devices are just a high-tech way to record radio programming, which is protected and for which it pays millions in copyright royalties, and XM chairman Gary Parsons in his prepared testimony said the bill would "lead to a new tax being imposed on our subscribers." He says the push for the new royalty is a negotiating tactic to push up those royalties, which are currently being reviewed by the copyright office.
Parsons testified to the Senate Committee hearing that CM had "designed these [MP3] devices to fully comply with copyright law", adding, "Recording from the radio is not a download service.
Everything recorded from the radio is locked to the device. It cannot be transferred to the Internet ensuring that it is only for personal use. And you can only hear the material as long as you remain an XM subscriber."
Sirius has already negotiated reached deals with the major record companies that compensate them for downloads on its S-50 receiver that allows customers to record content but XM is in the process of negotiating a new performance agreement and Parsons said, "By changing the standard now, the recording industry hopes to stack the deck in its favour."
Bainwol denied the charge and said, "Their license is for a performance, not a distribution. I was struck by the power of their slogan: 'It's not a pod. It's a mother ship.'"
RNW comment: It is already clear that the recording, TV and movie companies would like to see severe restrictions on people's ability to record anything off a broadcast just as it is crystal clear that technological developments have already given them a tremendous boost that their attitudes when the technologies were introduced would have denied to them.
From an initial model of cinema showings and vinyl recordings they have already gained extra income first from tapes (Hollywood, of course, tried to kill VCR recordings at home) and then from CDs and DVDs. Not they want to gain a much cheaper means of distribution and maximize their charges, with noises already being made that the 99 cents per song charge that enabled Apple to massively increase the paid-for download market is too low.
We also see no compelling logical reason to absent terrestrial radio from the list in the PERFORM legislation and there is no doubt in our mind that if the RIAA wins this one for satellite, terrestrial radio will be next on its list: In our view what the RIAA is likely to want would be against the public interest and might well turn out to be against their own long-term interests.
Previous Bainwol:
Previous Panero:
Previous Parsons:
Previous RIAA:
Previous XM:
Washington Post/Reuters report re "PERFORM Act":
2006-04-28: UK commercial radio companies plan to tell a government enquiry that the BBC's licence fee should be cut to curb its "insatiable appetite" for launching new services according to the UK Independent.
The Burns study, headed by former Treasury mandarin Lord Burns is running in parallel with the Government's process for renewing the BBC's royal charter and the Independent says the Commercial Radio Companies Association (CRCA) not only wants the licence fee cut - it is to submit that the bid for the licence fee increase of 2.3% above inflation should be rejected and the fee capped at its current level and any efficiency savings used to reduce it - but also to have the National Audit Office to scrutinize the BBC's expenditure plans before any settlement.
The paper quotes a CRCA spokeswoman as saying, "Enough is enough. We cannot continue to heap increasing amounts of public money on the BBC to spend on distorting the market" and arguing that the BBC should concentrate on areas not covered by commercial operators.
A report by accountants and business advisers PKF that was commissioned by the Department of Culture, Media and Sport (3 PDFs - a 329 KB 32 page summary plus 188 pages full report in 2 parts totalling 2. 1mb) has called for a lower increase than that requested by the BBC.
The report, "Review of the BBC Value for Money and Efficiency Programmes" notes that since 2001 the BBC has delivered efficiency savings of GBP 548 million ( USD 987 million) an annual efficiency saving of around 1.3% per annum.
It adds that in the first years of this licence fee settlement period, to 2004/05 the BBC has achieved GBP 2,131 million (USD 3,839 million) of self-help savings and that a further two years of such savings will mean that "even without further positive action" the corporation will achieve its agreed savings target of GBP 3,290 million (USD 5,928 million).
"We suggest," it says, "that the renewal of the Charter offers an opportunity to consider the scope for more fundamental change across BBC divisions so as to deliver transformational change, specifically with regard to the content divisions, where in many instances the level of efficiency savings proposed is low and this may provide scope for a reduced settlement."
The BBC chairman Michael Grade responded to the report by saying it "offers some helpful analysis, in places matching the independent work previously commissioned by the Board of Governors. It also raises some questions that require closer scrutiny and the BBC will review the report carefully prior to the public debate at the Burns seminar on Friday 5 May. The Governors' objective remains the delivery of licence fee payers' expectations of quality at the lowest possible cost."
The BBC is already facing possible strike action over one cut it has just announced - plans to close its final pension salary scheme to new employees in favour of a defined benefits scheme, raise the retirement age from 60 to 65 and increase the BBC contributions to staff pensions from its current 7.5% to 17.3% and staff contributions to their pensions from the current 5.55 to 7.5% in two stages with a possible further increase of up to 1.5% depending on the results of a 2007 pension scheme valuation.
The unions are to ballot their members about strike action, possibly in June during Wimbledon tennis and Royal Ascot horse racing: They want the final pension salary scheme to remain open to new members and for employees to be allowed to take their pensions from the age of 60.
BECTU assistant general secretary Gerry Morrissey commented, "The pension scheme has a surplus, but the BBC is choosing to close it, reduce the benefits and expect staff to pay more for them. Failure to agree to all of these demands will lead to an immediate ballot for strike action."
The National Union of Journalists (NUJ) says the pension fund currently has a surplus of GBP 13 million (USD 23 million - RNW comment -which is virtually nothing in terms of potential liabilities) and adds that the planned changes breach promises in a 2003 latter by BBC management saying that "contribution rates will never be more than a maximum of 7.5% of pensionable salary".
NUJ General Secretary Jeremy Dear said: "For both existing and new staff this will come as a bitter blow. The BBC will create a two-tier workforce, force some staff to work longer and expect all staff to pay more for the privilege of doing so. All those under 50 face paying more and working five years longer simply to get the same pension. The BBC's promises have been shown to be worthless and it is hardly surprising staff are reacting with anger."
He added, "The pension scheme is cash-rich, in surplus and the BBC admit there is no crisis - so why are they seeking to penalize staff in this way. It is all the more galling that staff are being asked to pay up to GBP20 million (USD 36 million) a year more when the BBC themselves have saved more than GBP 1billion (USD 1.8 billion) by paying reduced contributions since 1992."
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BBC Charter Review web site - links to PKF report PDFs:
UK Independent report:
2006-04-28: Former St Louis KTRS-AM radio host David Lenihan, who was fired last month after using the word "coon" in reference to US Secretary of State Condoleezza Rice and her credentials for the post of NFL Commissioner - for which he immediately apologized on air (See RNW Mar 24) is back on air.
He has been given a two-week stint in the 1600-1800 slot at Viper Communications Broadcast Group's news-talk KRMS-AM, Osage Beach.
Station owner Dennis Klautzer told the Associated Press, "I consider him a great talent. Everybody can make a mistake and say something he shouldn't have. ... It was obviously a slip of the tongue."
Klautzer added that he had discussed a full-time job with Lenihan, who has a family home at the popular mid-Missouri resort but was told Lenihan wanted to remain in St. Louis, where he teaches neuroanatomy and anatomy at the Logan College of Chiropractic and also does postdoctoral research in spinal cord injury at Washington University.
Lenihan said he was grateful for the second chance, adding, "I'm just down here getting back behind the mic. You just have to learn from things and move on."
Kansas City Star/AP report:
2006-04-28: XM Satellite Radio in a filing to the US Securities and Exchange Commission (SEC) has revealed that one of its radios has been found to be in non-compliance with Federal Cmmunications Commission (FCC) emission regulations and also that it is the subject of an inquiry by the Federal Trade Commission (FTC) into its marketing activities.
It gives little detail, saying regarding the Delphi XM SKYFi2 radio has been tested by the Federal Communications Commission's Office of Engineering and Technology Laboratory, which found its transmitter is "not in compliance with the applicable emission limits."
XM adds that the FCC letter seeks "information from us regarding the testing, emissions and other matters relating to this radio. We are conducting an internal review, and anticipate responding to the letter shortly and cooperating fully."
Regarding its marketing it says a letter from the FTC said the Commission was "conducting an inquiry into whether our activities are in compliance with various acts, including the FTC Act, the Telemarketing Sales Rule, the Truth in Lending Act and the CAN-SPAM Act."
"This letter," it adds, "requests information about a variety of our marketing activities, including free trial periods, rebates, telemarketing activities, billing and customer complaints. We are conducting an internal review of these matters, and anticipate responding to the letter shortly and cooperating fully with this investigation."
XM says it is "too early in the process to determine the significance, if any, of these matters to our business, consolidated results of operations or financial position.
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2006-04-27: CBS Corporation has reported first quarter revenues up 4% on a year earlier to USD 3.58 billion - 2005 figures are on a pro-forma basis as the company was then part of Viacom, which split into a new Viacom Inc. and CBS Corporation at the end of 2005 (See RNW Jan 1) and current figures exclude 2006 stock option expenses - with net earnings from continuing operations up 5% to USD 232 million (Up 11% per diluted share from 27 cents to 30 cents)
The increases were driven by the company's TV, Outdoor and Parks and Publishing Divisions but pulled back by Radio whose revenues were down: TV revenues were up 5% to USD 2.52 billion, Outdoor revenues were up 5% to USD 452.2 million, Parks/Publishing revenues were up 11% to USD 187.5 million and radio revenues were down 6% to USD 434.5 million and losses on eliminations increased 19% to USD 8.1 million.
Operating income figures were worse for radio - within a total increase of 1% to USD 511.2 million, TV went up 3% to USD 382.8 million, outdoor bounded up 175% to USD 44.5 million, and radio was down 14% to USD 162.6 million: Parks/Publishing losses were down a third to USD 13.3 million
Executive chairman Sumner M. Redstone said he was "very pleased with the progress of the new CBS Corporation," adding, "The Company's rapid pace of change and innovative approach to emerging business opportunities can be seen in the many strategic announcements we have made over these past few months. The more focused and more nimble organization we sought to create has become a reality and that aggressive spirit of excellence and innovation will continue to benefit shareholders for many years to come."
President and CEO Leslie Moonves echoed these remarks before going on to comment on radio, saying, "We have clearly built strong momentum during our first three months. Our strong double-digit free cash flow growth demonstrates that we are successfully leveraging the revenue growth produced by our core operations. Our Television segment continues to perform well, led by significant revenue growth at CBS Paramount Television, Showtime and our television stations; and our industry-leading network is extremely well-positioned. I'm particularly pleased with the performance of Outdoor where profits are up dramatically as a result of strong North America revenue growth and our strategy to exit less profitable transit contracts."
He then continued, "Radio -- which has extremely valuable assets -- is our one segment that is not yet achieving acceptable growth. We have implemented a number of recent initiatives to change that, including the new JACK and Spanish formats which have shown good success. And we believe this week's announcement to add a powerful new morning show will greatly improve the performance of our drive-time programming in the nation's largest east-coast markets. [The Opie and Anthony Show, which is replacing David Lee Roth (See RNW Apr 25). The duo went on air on CBS on Wednesday taking care to avoid swearing and also gaining support from Catholic League president Bill Donohue who called into the show and joined attacks on former CBS host Howard Stern, now with Sirius.]" ..."We're going to continue to invest in the best programming and marketing, and actively adjust our portfolio to maximize Radio's growth potential."
Looking ahead CBS says is on track to deliver low single-digit growth in revenues and mid single-digit growth in operating income and earnings per share, noting that this 2006 business outlook excludes the impact of expensing stock options resulting from the Company's adoption of SFAS 123R, and is based on 2005 revenues of USD14.5 billion, pro forma operating income of USD2.7 billion and USD1.59 per diluted share from continuing operations. Pro forma results are adjusted for the separation and exclude the 2005 impairment charges.
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2006-04-27: In further moves in mobile media, Frontier Silicon, the market leader in semiconductor solutions for mobile TV and digital radio, and Factum Electronics, the world's leading supplier of head-end solutions for DAB and T-DMB (Digital Multimedia Broadcasting), have announced a strategic alliance to supply broadcasters with complete broadcast solutions for mobile TV and digital radio.
The announcement was made at the Beijing DAB Digital Broadcasting event and precedes plans for a launch this year by China of commercial mobile television and radio services using DMB and DAB-IP technology, both of which are based on the Eureka DAB digital radio system.
DAB, DMB and DAB-IP trials are currently underway in several parts of China and broadcast licences have been issued covering Guangdong Province, Beijing and Shanghai: Commercial DMB services from several companies will launch during the first half of 2006 in Guangdong and Beijing and Samsung Electronics has agreed to supply 500,000 DMB phones to two major Chinese DMB operators.
In Guangdong where there an estimated six million potential mobile broadcast phone users, the services will come from two companies - The Guangdong Yuguang Company, which was the first to adopt DAB in China and has been trialling audio services since 1997, and Guangdong Mobile Television Media, which plans to launch commercial DMB services in May, 2006 to cover the Pearl River Delta Area.
In Beijing, Beijing Radio teamed up with Sunshine Asset Group to establish Beijing Jolon Digital Media Broadcasting Co. which began DMB trials late last year and which plans launch eight commercial services next month with coverage reaching a potential 15 million people. Jolon has also been working with manufacturers Blaupunkt, Lenvo and JVC to develop DAB/DMB receivers.
In Shanghai, trials of have been underway since last year of DMB services for mobile television and radio in L-Band and OPG, a subsidiary of the Shanghai Media and Entertainment Group, is broadcasting six video and 12 audio services to the Shanghai area with estimated population coverage of more than 15 million people.
Trials using DAB are also under way in Tianjing and Langfang, and in Sha tin, Hong Kong Island and Kowloon.
DMB technology is also featured at NAB 2006 in Las Vegas as are demonstrations of Digital Radio Mondiale (DRM) broadcasts and equipment including receivers that can handle DRM/DAB/FM/RDS and analogue short-wave, medium-wave/AM and long-wave signals. (See RNW Apr 11).
In another extension of DAB's reach, New Zealand is to begin a 12-month trial of DAB broadcasts in the Auckland area.
The trial will begin in September and The WorldDAB Forum is to assist BCL (Broadcast Communications Ltd), New Zealand's leading broadcast network provider, which will work closely with New Zealand's regulatory body to develop a spectrum plan, a scheme of incentives for broadcasters and a policy for roll out of both commercial and public broadcasting services.
Public broadcaster Radio New Zealand, and commercial broadcasters RadioWorks and Local Media Group, have agreed to take part in the trial.
Manufacturers including Sony, Morphy Richards, PURE Digital, Intempo Digital, Telechips and I-Tech, as well as network infrastructure vendors Radioscape and transmission equipment supplier Telequipment Pacific, who are providing Harris DAB transmission equipment- will also support the trial by providing DAB products to be placed with consumers and industry figures during the trial.
Previous DRM:
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2006-04-27: Australian AM broadcaster WorldAudio which was put in administration last month after the Australian government dashed its hopes of gaining digital spectrum based on its analogue licences outside the broadcasting band (See RNW Mar 22) may yet gain a buyer for the whole business according to the Melbourne Age.
It says that according to Hall Chadwick administrator Bob Elliott there have been 19 expressions of interest in the business including what Elliott termed a limited number "from parties who are interested in acquiring the whole of the WorldAudio/Radio Two operation across Australia."
The 48 stations in the network are playing automated music and the paper says star presenters, Mikey Robins and Ian Rogerson, are reportedly now on the lookout for other work.
Elliott, who is to meet those interested in the whole business for further discussions, said, "Should all of those discussions fail, I will thereafter deal with those parties that were interested in parts of the business."
Radio 2 was launched in June 2005 and as well as its terrestrial network is the only national commercial digital broadcaster on the digital audio channel of the Austar/Foxtel subscription TV platform: It has a national audience of about 300,000.
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Melbourne Age report:
2006-04-27: US President Bush has now confirmed the appointment of conservative radio and TV host Tony Snow as his press secretary to succeed Scott McClellan, who tendered his resignation last week as part of a shake-up of the President's top staff.
Introducing Snow at a briefing, President Bush said he was "confident Tony Snow will make an outstanding addition to this White House staff… I am confident he will help you do your job. My job is to make decisions, and his job is to help explain those decisions to the press corps and the American people."
…" He understands like I understand that the press is vital to our democracy. As a professional journalist, Tony Snow understands the importance of the relationship between government and those whose job it is to cover the government. He's going to work hard to provide you with timely information about my philosophy, my priorities, and the actions we're taking to implement our agenda. He brings a long record of accomplishment to this position. He has spent a quarter of a century in the news business. He's worked in all three major media."
Snow who hosts two Fox shows - "The Tony Snow Show" on radio and "Weekend Live with Tony Snow" on the Fox News Channel - had also been the host of "Fox News Sunday," one of the five major Sunday morning public affairs programmes.
.He was previously a columnist at USA Today and the editorial page editor of The Washington Times having started his journalistic career in print at The Greensboro Record in North Carolina in 1979. He also worked as a White House speechwriter for the president's father, the first President Bush.
In recent commentaries he has criticized administration policies and President Bush said of this, "He's not afraid to express his own opinions. For those of you who have read his columns and listened to his radio show, he sometimes has disagreed with me. I asked him about those comments, and he said, 'You should have heard what I said about the other guy.' I like his perspective, I like the perspective he brings to this job, and I think you're going to like it, too."
Snow responded by thanking the president for the honour of serving in the post and continued, "And just a couple of quick notes, I'm delighted to be here. One of the things I want to do is just make it clear that I -- one of the reasons I took the job is not only because I believe in the President, because believe it or not, I want to work with you. These are times that are going to be very challenging. We've got a lot of big issues ahead, and we've got a lot of important things that all of us are going to be covering together. And I am very excited, and I can't wait, and I want to thank you, Mr. President, for the honour, and thank all you guys for your forbearance, and I look forward to working with you."
2006-04-26: The BBC has announced its "Creative Future" editorial blueprint for the next six years including plans to re-launch the corporation's web site and create themed broadband portals such as "Sport, Music, Knowledge Building, Health and Science" and deliver "quality content for the on-demand world."
The announcement follows the work of ten teams who have spent the past year speculating what the world may be like in 2012 and the BBC says the plans aren't "about new services but a fundamental look at the creative challenges ahead with audiences in an on-demand environment that goes beyond current broadcasting models."
The results of the teams' work was presented to BBC staff on Tuesday and amongst comments from the "Audiences" team it highlights changes in demographics with an ageing population, more single-person households and a growth in what it terms "non-traditional" families and also the different ways in which people experience electronic media .
The "Beyond Broadcast" team says that "On-demand will be the third age of broadcasting and the second phase of digital. The first age was linear channels and limited choice. The second was linear channels but far greater choice - more of the same. The third gives the audience far greater control, personalization and interaction. It will require fundamental change in what the BBC commissions and provides in content and services and how it distributes them."
Its recommendations include building the corporation's on-demand portfolio "through pilots, digitizing content and making relevant parts of the archive available, and developing BBC iPlayer (MyBBCPlayer)" and also says the corporation should initiate "a single pan BBC rights strategy and digital rights management system" and "Pilot 360 degree commissioning which would give one team responsibility for all aspects of an idea on all platforms - linear broadcast, interactive, on demand, mobile applications."
Journalism recommendations include shifting emphasis to continuous news, developing on-demand offerings and services for mobiles and portable devices, the latter proposals being mirrored in recommendations from Music - whose recommendations include enabling "people to create their own virtual radio channels out of the wealth of our existing output, channels reflecting their own personal tastes", Sports, Children's and Teens, Comedy, Drama, Entertainment and Factual Formats, and Knowledge Building.
BBC Director General Mark Thompson in his speech to BBC staff on the plans said he wanted to "kick off a conversation across the BBC about our programmes" and commented "I launched Creative Future just over a year ago because I felt that, although the BBC had lots of policy ideas about the future, it hadn't really grappled with the creative challenge of what feels like an entirely new chapter in broadcasting."
Of this new world he spoke of: "Audiences with more choice, bigger expectations and in some cases a real sense of distance from the BBC. Technology which empowers those audiences, transfers control from us to them, lets them consume what they want, when they want, lets them create content, lets them participate" and added, "But there is another important factor in all of this - competition. As you saw in the Beyond Broadcast film, we are head-to-head with new competitors who are global, rich and in some cases already fit for the digital age."
And of this future he commented, "If we get this right, we can't fail. If we get it wrong, nothing else - White Paper, licence-fee settlement, you name it - nothing else will make up for it."
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Thompson speech to staff:
2006-04-26: US Federal Communications Commission (FCC) chairman Kevin J Martin, who has just been re-nominated for a second term in the post by President Bush, has told the National Association of Broadcasters' (NAB) annual convention in Las Vegas that broadcasters should be clear on US indecency regulations because the law had not changed in 25 years.
He rebutted accusations that the agency had given insufficient guidance on what was permissible and commented of recent TV fines including a record (See RNW Mar 16), "The commission's findings recently on indecency did not extend beyond some of the same words that were found to be upheld by the Supreme Court in the 1970s" - a reference to the Supreme Court's decision in 1978 in FCC v Pacifica on the latter's broadcast of a monologue by comedian George Carlin concerning seven indecent words that could not be said on television or radio [Shit, Piss, Fuck, Cunt, Cocksucker, Motherfucker and Tits].
"I'm not sure when people say they want additional guidance if it's that different than it was back in 1978 or 1979, as far as some of the words that are still on the list,'' said Martin.
During a question and answer session Martin also spoke of a bright future for terrestrial broadcasters because of the role they played in their communities and asked about possible extension by US satellite broadcasters of local content through use of their terrestrial repeaters said the FCC would continue to regulate them as national services.
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2006-04-26: Interep has reacted to the withdrawal by Oaktree Capital Management (OCM) of its bid for the company at USD 1.10 per share by saying that its board had been seriously considering the offer but adding that it was "understandable why Oaktree Capital Management demanded an immediate agreement -- to acquire the company at a discount."
Interep said it "believes that Oaktree Capital Management's offer did not reflect the company's true value and is aggressively evaluating all scenarios that would maximize shareholder value" and added, "This, coupled with recent favourable company developments and our mandate to keep the best interests of our shareholders, clients and employees top priority, supports our decision to resist being pressured by an arbitrary timetable."
"Interep," it says, "is exerting great care and diligence to ensure this value is reflected as the company considers strategic alternatives. Management and the Board of Directors remain willing to explore all options -- including a deal with Oaktree Capital Management or other prospective financial partners -- as we maintain our focus on achieving improved performance through stronger operations and excellent client service."
Oaktree in withdrawing its offer noted that funds it manages own "shares of the Company's [Interep's]Class A common stock and are also collectively the largest holder of the Company's 10% Senior Subordinated Notes due 2008" but does not specify the size of these holdings.
It had previously said that its offer of April 12 - representing a "439% premium to the previous day's closing price" would expire on Friday, April 21 (See RNW Apr 13), and in a letter to Interep's board said, "Despite our willingness to provide you with this final opportunity to complete a transaction that we firmly believe to be in the best interest of the Company's shareholders and our continued efforts to schedule meetings with you to finalize the terms of the transaction, to date we have received no communication regarding the Company's position on the remaining limited open points in the definitive documents or indication that the Board has made any determination with respect to the Company's intent to pursue to the transaction" and accordingly withdrew the offer.
Interep's shares closed Tuesday unchanged at 72 cents having reached 74 cents for a time.
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2006-04-26: International satellite operator WorldSpace has announced a new receiver for the Indian market, where it is concentrating its efforts and on Monday launched its service in Nagpur.
The DIVA II is priced at around USD 55 and WorldSpace chairman and CEO Noah Samara commented, "The addition of the Diva II to our line-up means even more choice and selection for our subscribers. Through the unique combination of new equipment, such as the Diva II, and our diverse range of entertainment and programming, WorldSpace is able to provide our customers with a truly unique experience."
The new receiver is available in "Elegant Black" or "Chic Silver," has 40 memory pre-sets and four pre- fixed audio equalizer modes as well as stereo speakers, a remote control and dataport for connection to a computer.
RNW comment: Not being in a position to listen to the service we cannot be sure how well made the receiver is but its specifications seem adequate and the price certainly makes US HD receivers seem very expensive.
Previous Samara:
Previous WorldSpace:
2006-04-26: UK media regulator Ofcom has published its reasoning for the recent awards of the new North East England regional FM to Saga and the new Southend FM licence to Southend Radio Limited (See RNW Apr 14).
In the first case, before the award Ofcom had said it would be likely to place particular emphasis on the extent to which a proposed service would broaden the range of programmes available by way of local commercial services in the area, and would cater for tastes and interests different from those already catered for - when it came to consider the applications for this licence. It also said relating to evidence of local demand that it would be likely to attach greater weight to "to robust and meaningful evidence of demand as demonstrated by findings from research" than to letters of support.
Saga's application says the Radio Licensing Committee "was a particularly strong one" not only regarding these but also in terms of all four statutory criteria that Ofcom has to consider.
"In the Committee's view," it said, "the application from Saga offered a highly coherent set of programming proposals and a format that has already proved successful in attracting listeners aged 50 and over elsewhere in the UK."
It added, "Saga conducted a particularly thorough programme of research which demonstrated that 'Easy Listening' was by some margin the format of choice among over-50s in the region. Its quantitative research was further supported by a large-scale qualitative auditorium exercise, which demonstrated good levels of support among the target audience for the station's more detailed music proposition. In addition, Saga's research showed that its format would be disproportionately attractive to listeners of BBC services (particularly Radio 2 and BBC local radio) rather than listeners to existing local commercial radio services."
The committee also said it "recognized that, traditionally, the over-50s audience has been a difficult one for commercial radio companies to sell to advertisers, and the revenue challenges implicit in targeting this demographic are certainly not to be underestimated. However, the financial performance of Saga's existing analogue stations has given confidence, and demonstrated the economic viability of the format. In this respect, therefore, the RLC considered that Saga's business plan for its proposed North East service was both realistic and achievable."
In the Southend award Ofcom had not indicated that there would be particular significance for any of the statutory criteria although it had said it would attach greater weight to evidence of demand as shown by research as opposed to letters of support.
The Committee commented that the combined backing of Stockvale Limited (80% shareholder) and Provincial Radio Limited (20% shareholder) gives Southend Radio a strong degree of financial stability, and appropriate experience of operating small stations in similar markets nearby and the involvement of the latter - a wholly-owned subsidiary of Tindle Radio - would give Southend Radio the opportunity to offer a combined advertising sell, which would be likely to place the new service in a much stronger financial position in relation to the heritage station Essex FM than might otherwise be the case.
It said "Southend Radio conducted robust quantitative research and monitoring which it used to shape and confirm demand for its music and speech proposals" and also noted, "Southend Radio's music proposal, which puts a 15% cap on current hits, combined with a broad music policy incorporating music from the 1960's onwards, was considered to offer a distinct alternative to the FM service available in the area (Essex FM). In addition, the inclusion of some appropriate contemporary music is likely to distinguish Southend Radio from the AM service in the area, Classic Gold Breeze. It was also considered that the group's chosen target audience of over-35s was an appropriate recognition of the age profile of the local population. Overall, the RLC considered that Southend Radio's proposed Format was well-drafted, and would both cater to local tastes and interests and broaden choice."
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2006-04-25: US National Association of Broadcasters(NAB) President and CEO David K. Rehr has told the NAB 2006 convention in Las Vegas that he wants to look forward not backwards and said that NAB "must move from an organization that is perceived as being on defence . . . to one that is on offense."
"We cannot afford to be an organization that is perceived as protecting the status quo ... but rather, one that embraces change," he added, saying that "broadcasting has been defensive in its thinking for too long."
Rehr continued, "Confidence - not doubt or complaint - should set the tone as we move forward. Certainly we have challenges - but broadcasting has a solid base of strength on which to support the dazzling new possibilities ahead. We should not forget those strengths. "
He then cited some numbers for radio and TV, noting that satellite radio "has supposedly 10 million subscribers total. But 260 million people listened to broadcast radio last week alone. Furthermore, satellite radio lost about a billion dollars last year. Its business model is bankrupt. And this is even before our own digital HD radio has kicked in" and that broadcast TV in the 2004-5 season had the top 255 highest rated programs with cable's top rated show coming in at number 256.
Rehr said that building on the solid foundation built by broadcasters "digital TV and digital radio are about to reinvent our industry" and that the broadcasters' future depended on "on our ability to exploit every new technology - on every new platform."
He said that content was king but distribution was key and commented, "Our future is a broadcast signal on every gadget - cellphones, laptops, PDAs - and of course multi-channels of DTV and digital radio."
Rehr called for the education of the US public about digital TV and radio and also implied that more action was needed to level the playing field when it came to issues of decency, commenting, "For television, we need to reframe the debate away from the stray, indecent slip-up.
Instead, we will explain to parents that they have total power - right now - to control all TV programs in their homes. On the radio side, the FCC needs to pay more attention to the obscenity and vulgarity that has found its home on satellite radio. "
Rehr added of the issues of free speech, "We also cannot forget the importance of the First Amendment in this national debate.
Broadcasters feel strongly about free speech, and we will defend it whole-heartedly.
But, no one should imply that protecting the First Amendment is tantamount to promoting the right to be obscene…When it comes to the issue of indecency, the NAB is going to play a leading role to maximize one of America's most fundamental axioms - the need for personal responsibility. We will empower people to make good choices based upon their own tastes and values."
He also spoke of switching emphasis in NAB's activities from being seen as lobbyists to being advocates … "which conveys positive offense in framing the debate - and thus the future. It is only a change in wording, yes, but it reflects a larger change in attitude."
RNW comment: For his audience this speech probably went down well but only time will tell whether words will become actions and we certainly can't take his comments on "indecency issues" very seriously except as part of pressure to water down the First Amendment.
And as regards "the need for personal responsibility" and people "making good choices based upon their own tastes and values" we haven't seen any laws that force people to listen to any particular radio programming or watch any specific TV shows. People already are empowered and have an off-switch: If they choose to use them in ways NAB doesn't appreciate that is surely their right.
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Previous Rehr:
2006-04-25: CBS Radio has now officially confirmed that Opie and Anthony (Gregg Hughes and Anthony Cumia) whom they fired from WNEW-FM in New York in 2002 after the Sex in St Patrick's Cathedral furore (See RNW Sep 2, 2002) are to return to CBS and take over from David Lee Roth in seven markets from tomorrow.
No details of the finances of the deal have been released but other details are as already rumoured including the splitting of the Opie and Anthony Show on XM Satellite Radio into two segments - an initial three hours that will air from 06:00 to 09:00 ET on weekday mornings on both CBS and XM and then a further two hours on XM.
In its news release, which mentions the duo's career until their move from Boston to WNEW in 1998 but not their dismissal, CBS says the first three hours will originate from CBS Radio's WFNY-FM (FREE FM) studio in New York and be simulcast on XM uncensored and the duo will then broadcast from 09:00 to 11:00 ET exclusively for XM live from their current XM studio in New York.
The CBS stations that are to take the show are WFNY in New York plus WBCN-FM, Boston; WXRK-FM, Cleveland; KLLI-FM, Dallas; WYSP-FM, Philadelphia; WRKZ-FM, Pittsburgh; and WPBZ-FM, West Palm Beach: In addition the CBS show will be streamed from New York, Dallas and Philadelphia.
CBS Radio chairman and CEO Joel Hollander said of the deal, "Opie and Anthony have proven their determination to succeed in this business, and have a relationship with their audience that is second to none in the industry. CBS Radio is well known for having among its portfolio some of the best brands in radio, and it's great to have O&A among that stable again. Loyal listeners of O&A have grown accustomed to a show that's real and entertaining. As we move forward, we do so with confidence that this new enterprise will continue in that same spirit."
For XM President and CEO Hugh Panero termed the agreement "a big win for everyone" AND ADDED, "Opie & Anthony will now reach millions of new listeners and will continue to entertain the more than 6.5 million XM subscribers who have made their exclusive show on XM one of our most popular. XM is committed to creating the best content in radio and today's announcement is an example of how we're able to leverage it in a variety of ways that help build our business."
Hughes (Opie) said, "With the combination of XM and CBS Radio, we now have the best gig in the business. The O & A Show is going to be bigger and better than ever," and co-host Cumia (Anthony) added, "We'll now be able to reach millions of new fans and old fans with our new morning show on CBS while offering our loyal XM listeners an uncut show and two extra hours that will only be available on XM."
RNW comment: Apart from the caution, now they've made their peace with the Catholic League, that the hosts are likely to exercise in relation to the Roman Catholic Church we will be interested to find out how many bit of the show as aired on CBS get beeped out. There is an obvious dilemma here in terms of keeping happy the XM audience, whose tastes would be less censorious than FCC rules permit, and at the same time not having too much of an effect on the terrestrial broadcast. One to watch on the blogs on Wednesday?
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2006-04-25: The HD Digital Radio Alliance has announced that 22 more US markets are to add HD multicasts in the second wave of HD multicast programming that will take the total of new radio channels in the US to more than 450.
It adds that HD2 multicasts will now be available in 50 markets, 42 of them in the top 50 US markets -- more than six months ahead of schedule.
The new markets to add multicasts are, in order of rank:
15 - Phoenix,Arizona;16 - Minneapolis, Minnesota;17 - San Diego, California;18 - Nassau-Suffolk, New York;19 - St. Louis, Missouri; 21 - Tampa, Florida; 22 - Denver. Colorado; 23 - Pittsburgh, Pennsylvania; 25 - Cleveland, Ohio; 26 - Sacramento, California; 28 - Riverside, California; 30 - San Antonio, Texas; 31 - Salt Lake City, Utah; 32 - Milwaukee, Wisconsin; 34 - Providence, Rhode Island; 35 - Columbus, Ohio; 36 - Charlotte, North Carolina; 37 - Middlesex-Union-Somerset, New Jersey;38 - Las Vegas, Nevada; 39 - Orlando, Florida; and 40 - Norfolk, Virginia;
Peter Ferrara, President and CEO of the HD Digital Radio Alliance, commented, "One of the most exciting things about HD Radio is the ability to offer innovative new content customized for each individual local market. Unlike any other audio entertainment source, radio is all about serving the local community and these new HD2 channels will do just that."
In addition to the launch of new stations, Clear Channel has said it is to offer its format lab menu of 75 channels to competitor stations that are bringing HD stations onto the air.
Reporting on the move, Billboard Radio Monitor said in the next few weeks Clear Channel in conjunction with Clear Channel's Premiere Radio Networks is to launch what a spokeswoman describes as a "pretty significant music and industry marketing campaign" to non-Clear Channel prospects for either HD or terrestrial applications.
Most of the channels are "jockless" says the report and many "merely slice existing formats into the narrowest of shards" but "others break ground not heard on terrestrial or satellite radio: a workout channel, a make-out channel, a party channel billed as .a never-ending bar mitzvah.'"
The lab, says Billboard, offers seven country formats, from classic to new to rock to artist-driven. Rock is carved up 18 different ways: indie, metal, new alternative, classic alternative, soft, hard, mainstream, active, even an update of free-form FM complete with a Scott Muni clone. There are seven ACs, seven top 40s, 10 flavours of R&B/hip-hop and five in the jazz and blues vein.
It adds that Clear Channel Radio CEO John Hogan says customization and localization are key, commenting, "As good as Rush Limbaugh, John Boy & Billy and Bob & Tom are, that programming gets a lot better when it's integrated into the fabric of the radio station " and adding that the same principle applies to the new channels… "Smart broadcasters will take the content and customize it and make it highly local and highly connectable to their local audience."
Clear Channel's format lab is overseen by executive VP of content development Tom Owens and executive VP of online music and radio Evan Harrison and the division is managed by co-VPs of content R&D Mike O'Connor and Eric Siebert.
The report quotes Siebert as saying the fundamental premise is "to create the best forms of music and talk programming in a format that can be adapted to terrestrial radio, Internet, HD or cell phones… Or they can be part of a videogame, heard in a retail outlet or even in an elevator-wherever people want to enjoy great radio-type programming."
Clear Channel is spreading its wings beyond radio broadcasts in its services - it has an agreement to provide Motorola with content for 75 channels for its iRadio cell-phone subscription service and is providing Sprint customers in 32 markets with news and sports updates on their cell phones on a trial basis.
Hogan adds of the wider market for its offerings, "As consumers have the opportunity to access entertainment and information from so many different places, the opportunities grow for us to partner up with different providers….What really separates radio from other media is we create this incredible one-on-one bond with the listener. As music becomes more accessible and less proprietary, it has become even more important for us to increase our skill and our ability to connect with the listener. That's what differentiates us from a satellite service. Radio is a relationship."
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2006-04-25: GCap Media has confirmed the appointment of Scott Muller, Programme Director of DMG's Sydney Nova FM, as Programme Director of its flagship station Capital Radio: He will take his new role up in the summer of this year.
Commenting on the appointment and plans for Capital, GCap Operations Director Steve Orchard said in a news release, "While we are encouraged by the progress we have made since January and are receiving positive listener feedback, there is still much to do at this critical time in order to attract new listeners. In Scott Muller, we are gaining a world class programmer with the specific skills and experience to help us take the station to the next level. I am delighted to have him on board."
Muller, whose experience is in Australia apart from a three year stint with GWR, the "G" of G-Cap, responded, "London is the most vibrant and competitive radio market in the world and Capital Radio is at its core. Having taken Nova Sydney to the top spot in a similar market, I understand the challenges and opportunities that we will face and I am incredibly excited to be joining at what is a pivotal time in the station's growth."
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2006-04-25: Bid4Spots, the online marketplace for unsold radio ad inventory, has announced at NAB 2006 in Las Vegas that it has now passed the USD 1 million mark in aggregate value of adverts sold through its site and has some 2,000 stations signed up in nearly all the top 300 markets in the US.
The company launched in 2005 with its reverse-auction system under which adverts are offered weekly for the following week: Would-be advertisers enter their criteria for the spots they are interested in including such factors as the demographic they are targeting, station formats and when they want to advertise and in what markets plus details of what they are prepared to spend in terms of the number of spots and maximum cost per thousand listeners.
They then upload their adverts and confirm requirements. From this information Bid4Spots works out the stations that fit the criteria using Arbitron data and invite these stations to bid with the lowest CPM bid winning.
The company argues that many stations that have unsold airtime would rather sell it at a substantial discount than not at all and that their system makes things easy for such stations since they gain access to a customer with spots ready to go and funds already cleared.
Its president and CEO Dave Newmark commented, "As our numbers demonstrate, we've gone from innovative start-up to emerging market leader in a very short time. We're the first to bring a workable solution -- the reverse auction model -- that harnesses the power of the Internet as a platform in a way that benefits radio stations and advertisers alike. And because we focus solely on last-minute inventory, we're a true ally to ad agencies and reps as well -- a status that sets us apart from others in the space."
The company also quoted advertisers and radio stations in support of its model with Mike Boggs, national media director for direct response advertising agency RainMakers International commenting "Bid4Spots allows us to test radio on the discount and see if it works for a client -- opening up the medium to a lot more potential advertisers. Bid4Spots has rejuvenated a portion of the radio advertising space that has not been fully monetized in the past."
Larry Eschenbacher, who sells airtime for Clear Channel's San Francisco progressive talk KQKE-AM added, "Bid4Spots gives us the ability to sell inventory that otherwise would spoil. It brings revenue -- and even some advertisers -- that we normally wouldn't have access to. If we continue to experience the level of success we've had so far, I expect Bid4Spots to turn into a six figure account annually -- one that requires much less maintenance than other accounts."
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2006-04-24: Hosts out and hosts on the way in plus the fallout from the disclosure of the pay of some top BBC radio names form the backbone of our look at print comment on radio this week.
First the host on the way in - Bob Dylan whose show on XM Satellite Radio launches next month (See RNW Apr 20) and which is previewed in the UK Observer by David Smith.
"It starts with the sound of rain," writes Smith. "A woman's voice tells us it is night in the city, and a nurse is smoking the last cigarette in the pack. Then comes a nasal, gravelly voice, more familiar in song: 'It's time for Theme Time Radio Hour. Dreams, schemes and themes.' The career of Bob Dylan, radio DJ, has begun."
And of the "theme" behind the show: "As the quaint title, Theme Time Radio Hour, implies, it is a simple format, even old-fashioned. Taking a different theme each week, Dylan introduces his favourite records with a wry line or pithy anecdote, then lets the music do the talking. First is 'weather'. Sounding utterly imperturbable in his new role, he drawls in characteristically rhythmic tones: 'Today's show, all about the weather. Curious about what the weather looks like? Just look out your window, take a walk outside. We're gonna start out with the great Muddy Waters, one of the ancients by now, who all moderns prize.' "
Dylan, says Smith, has been provided with a digital recording kit so that he can present the h