July 2007 Archive
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- June 2007
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Aug 2007 -
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 July comment -Looks at regulation in other countries in the light of attacks on the idea of reintroducing the Fairness Doctrine in the US and concludes that other factors are much more important in affecting effective freedom of speech.
RNW June comment - Boycotts and pork or a business approach. We suggest that a single royalty rate for digital - or analogue - audio is nonsense and that the system should be changed to provide tiered charges and a choice of collection agencies.
RNW May comment - Playing to strengths! We suggest radio has to accept the world as it now is and play to its
strengths rather than waste effort in attempts to stifle competition.
"The influence over the last 40 years of talk radio on the shape and the style of Australian politics has been enormous," he said, adding, "There is nothing quite so free when it comes to the media of this country than talkback radio."
Howard also praised radio as a medium, saying it was his preferred means of communications, had "an immediacy, a directness that is totally missing from the other mediums" and adding, "It is only through radio that you can go close to having a conversation, not only with the person who is interviewing you but also with the public" but also warning that there were dangers and commenting, "You never know who is going to ring up, how the clever interviewer might ask you the name of a candidate you suddenly can't remember - and of course we are all human, and that is the great thing about talkback radio."
"Radio is the best means of communication because it is only through radio that you can even come close to having a personal conversation with the Australian people,' he said.
The day's other guest of honour, 2UE morning host John Laws who is to retire this year after 55 years in radio and who was presented with a lifetime achievement award on behalf of industry body Commercial Radio Australia., took issue about the freedom of speech.
Laws, was involved in the cash-for-comment scandal and has also been the subject of rulings by the Australian Communications and Media Authority that he broke Australian commercial radio industry codes by misrepresenting viewpoints and presenting material in a misleading manner (See RNW Dec 13, 2006) and was also the subject of a tribunal ruling that he had "vilified homosexuals" (See RNW Feb 18, 2005). He said, "It is the land of the free ... if you don't speak and added that he could "do without the broadcasting control board".
Previous Laws:
The Australian/AAP report:
2007-07-31: UK Chrysalis shareholders have voted overwhelmingly to accept the GBP 170 million (USD 340 million) bid for Chrysalis Radio from Global Radio - 3,066 against, 383,538 abstaining or withheld and 142,324,601 for. They also approved by a much smaller majority a payment to outgoing Radio Chief executive Phil Riley to compensate for loss of office - 66, 509, 70 against, 3,333,969 abstaining or withheld; and 72,867,535 for.
Charles Allen, executive chair of Global Radio, commented, "We are very pleased that our company has succeeded in securing these assets, and I and my colleagues now look forward to working with the teams, which have done such a great job building these brands, to further develop the business. It is an exciting time for the radio industry, and we are sure Global Radio will be playing an important role in the coming years."
Previous Chrysalis:
Previous Global Radio:
Previous Riley:
2007-07-31: UK media regulator Ofcom in its latest broadcast bulletin has ruled that GCap Media broke regulations by carrying an advert on Classic FM for an edition of the Spectator magazine that had not been cleared by the Radio Advertising Clearance Centre (RACC).
The advert promoted the magazine's review of the political career of former UK Prime Minister, Tony Blair that, after a sardonic description of the former premier, concluded: "Blair: A
Modern Tragedy. The definitive guide to the missed opportunity of the Tony Blair era. Manipulator, communicator, fabricator. Only in 'The Spectator'. On sale Thursday."
This led to two complaints that the advert was political advertising and during the subsequent inquiry by Ofcom GCap confirmed that it had not obtained RACC approval and apologized for its procedural oversight on this occasion. It also said it had strengthened its internal procedures to avoid any recurrences.
In another case, a member of the public who had taken part in the programme Night Owls on Emap's Newcastle station Metro Radio complained that he had been treated unfairly on the broadcast leading Ofcom to request a recording of the transmission. Emap said it was unable to provide a copy and said it had assumed that because Ofcom's request was made more than 42 days after the date of broadcast, no provision of a recording copy to Ofcom was necessary although following a subsequent investigation by the Head of Regulatory Affairs, Emap Radio confirmed that Metro Radio had in fact retained a copy of the programme.
Ofcom in this case noted that it had been unable to entertain the complaints and said failure to supply the recording on request was a "serious and significant breach of Metro Radio's licence" that would be held on record.
In addition to these two radio cases Ofcom also upheld Standards complaints against two TV programmes, one of which attracted 44 complaints, and in a further case noted on record that the broadcaster had been unable to supply a recording of a programme complained about in breach of its licence conditions.
In addition it posted details of a Fairness and Privacy TV complaint that was not upheld and also listed without detail a further 192 TV complaints about 157 items and 28 radio complaints against 26 items that it did not upheld or considered out of its remit.
The numbers compare with one radio and four TV standards complaint upheld in the previous bulletin, details given of six TV fairness and privacy complaints that it did not uphold, a fine of GBP 50,000 (USD 100,000) on the BBC in connection to premium rate phone lines and a further 197 TV complaints involving 164 items and 34 radio complaints involving 24 items that it were out of its remit or not upheld.
Previous Ofcom:
Previous Ofcom Complaints Bulletin:
2007-07-31: The issue of terrestrial radio broadcasters potentially having to pay a performance royalty for music they broadcast - charges from which US radio, unlike radio in most of the rest of the world, has been exempt on the basis of the promotional value it provides by airing the songs - will be discussed before a House Committee today.
It will be the firs time the issue has been discussed at an official D.C. hearing and the "Hearing on Ensuring Artists Fair Compensation: Updating the Performance Right and Platform Parity for the 21st Century" will take place of the in front of the Committee for the Courts, the Internet, and Intellectual Property, a sub-committee of the House Judiciary Committee.
Testimony is expected from the radio and recording industries and has been preceded by a National Association of Broadcasters (NAB) advertising campaign against the royalty payments carried on D.C. radio stations and also in print.
The adverts emphasise the function of radio as the main way in which Americans discover new music and artists and say, "For decades, radio has been promoting new music free of charge, contributing to record sales and the growth of new stars and new genres of music.
But the international record label conglomerates have a problem - they haven't adapted to the digital age. Now they are asking Congress to tax local radio stations to subsidize their failing business model - to the tune of billions of dollars.
"A new performance tax would severely limit the ability of stations to deliver new music, news and public service messages to their listeners, simply to put more money in the pockets of giant international record companies.
"No performance tax on local radio."
RNW comment: For an organization whose President and CEO David K. Rehr has had the gall to complain about the use of slogans by the satellite radio companies, these adverts rather take the biscuit. The charge, whatever slogan Rehr may dream up, is a charge not a tax unless Rehr is arguing that all copyright is a tax, which we rather doubt.
Previous NAB:
2007-07-31: SMG-owned Virgin Radio has announced that former Spandau Ballet front-man Tony Hadley is to take over from Madness singer and Virgin afternoon host Suggs as host of the station's Friday evening "Party Classics" programme.
Hadley moves into the slot this Friday - the show runs from 18:00 to 22:00 local and airs 80s party hits - and Virgin Radio chief executive Paul Jackson described him as a "top drawer signing for us" adding "He is an absolute party legend with the star appeal and infectious personality that will be a hit with our listeners and bring new audiences to the station."
Hadley commented, "In Spandau Ballet we were at the centre of the 80's music scene, which was like no other - I'll be recreating that party atmosphere every Friday night."
Previous Jackson:
Previous SMG:
2007-07-30: This week we devote our look at print comment on radio to the two issues getting the most coverage last week - those of the Sirius-XM merger - or rather the pot and kettle approach of the National Association of Broadcasters (NAB) in opposing it - and the Fairness Doctrine, which would seem to be more of a non-issue whipped up by right-wing hosts than something that has any chance of being reintroduced.
In the case of the first we gained considerable satisfaction from comments on NAB President and CEO David Rehr's latest letters concerning the merger.
First media consultant, columnists and former PD John Gorman who in his blog refers to letters fired off by Rehr to "President George W. Bush, the FCC, and the Senate Commerce Committee" and then proceeds to do a pretty good demolition job on them.
He starts with Rehr's letter to Bush, despatched following a propaganda question put to the President during a visit to Nashville when the President was asked if artists should be paid royalties for airplay - a current recording industry goal that NAB opposes strongly. The President in a burst of honesty confessed ignorance, saying he had "no earthly idea what you're talking about" prompting Rehr to write to the President saying in part, "Not only would this new performance tax upend the longstanding mutually beneficial business relationship that exists today between record labels, recording artists and broadcasters, but it would have a serious financial impact on broadcasters that could affect their ability to serve their local markets."
Gorman comments, "Did he really think that Bush would understand the gist of his letter?" and we react with our normal reaction to nearly all that Rehr writes with the suggestion that the best thing to do with the letter would be to return it asking that it the propaganda be removed, the language turned into everyday clear English, or it be binned.
Next Gorman turns to Rehr's letter to Federal Communications Commission chairman Kevin J. Martin that provided some terrific examples of the pot calling the kettle not to say plain inaccuracies.
Gorman comments that Rehr accused XM and Sirius of basing "their merger on a public relations campaign, slogans over substance, (and) promises without proof" and then continues that the NAB, regardless of where one stands on the issue, is just as guilty of this offence, noting the activities of its PAC, and then continues: "Wasn't it Rehr's group that came up with, Sirius + XM = Monopoly - Do the Math, Hollow Promises, and Merger to Monopoly, among others?
"In fact, he had to be cautioned. Rehr, who used to head the National Beer Wholesalers Association, wanted to use these slogans:
"When you say terrestrial, you said it all.
"For all you do, this terrestrial radio is for you.
"Where there's life, there's terrestrial radio.
"Terrestrial radio- It won't slow you down.
"If you got the time, we've got the terrestrial radio.
"Terrestrial radio - it doesn't get any better than this."
Gorman takes apart other comments by Rehr and of this letter says Rehr's best line was: "The merger parties' argument that satellite radio and local radio are interchangeable is nonsense. If the two services were truly substitutable products, why would anyone pay $12.95 a month if they could get what they want free from local radio stations?"
To which Gorman makes the obviously true response: "The fact is they can't" and continues, before ending by commenting on another Rehr letter to the switch from analogue to digital TV, "And David, did you have to mention that there are those who are so fed up with terrestrial radio that they're willing to plunk down x-amount of dollars for a satellite radio receiver and pay the monthly thirteen buck fee? Doesn't that say there's a need for their service? ... Someone's got to proof read the boy. Either that or Rehr ought to stay off the suds until after he writes these letters. Does he still get free samples from the beer companies he used to rep?"
Next we move to Tyler Savery's comments in Seeking Alpha; Savery makes no secret of his support for the satellite companies but the job he does on Rehr, apart from what we consider some unnecessary attacks through weakness for what he obviously considers a neat phrase and maybe too uncritical acceptance of the satellite companies' arguments, is fairly comprehensive.
Like Gorman he picks up Rehr's comments on PR, slogans and promises and then refers to NAB's slogans contrasting them to the fact that "Sirius and XM have stated their intentions, and even laid them out for everyone to see. A La Carte pricing, lower tiers, family friendly pricing, etc. The NAB wants to be the champion of local content, but often times that simply never happens."
Of various other comments by Rehr to which he responds, Savery like Gorman notes of accusations of currying favour, "Currying favour? What is the NAB PAC all about? Is it wrong to offer something that the FCC feels is in the best interest of the public? When you are in business don't you try currying the favour of consumers? David Rehr, did you think before you penned this statement? Don't you think that this statement is a bit insulting to Chairman Martin as well as consumers? Is giving consumers a great product at a reasonable price a foreign concept to the NAB?"
Savery also takes up issues of the "relevant market" and notes the emergence of new technologies such as Internet streaming and downloads plus portable players and cell phones capable of delivering audio.
Of Rehr's comment that "The merger parties argument that satellite radio and local radio are interchangeable is nonsense. If the two services were truly substitutable products, why would anyone pay USD 12.95 per month if they could get what they want free from local radio stations?" Savery argues that "Churn is a great demonstration of the substitution. People who leave one satellite radio service do not switch to the other. In the vast majority of cases, they find a substitute for satellite radio."
He also takes up plain inaccuracy in Rehr's statement, "Sirius hiked it's rates by 30% only 2 years ago and still managed to grow subscription rolls by 84%" and points out that Sirius has never raised its prices [RNW note: It was XM that did, putting its rate up to that of Sirius], adding, "How could you be doing the job of representing terrestrial radio members and blow such a basic fact when writing what should be such an important letter?"
In similar vein, of Rehr's statement, "In other words, subscribers now paying USD 12.95 for 133 XM channels, or 170 Sirius channels…" he points out that the numbers are the other way round and of Rehr's argument that "both Sirius and XM already use all of their spectrum capacity for existing channels. This means that Sirius wants to add XM channels to line-up post-merger, to create their promised "best of both worlds" package, Sirius will have to drop existing channels on a one-to-one basis" points out that the Sirius-XM filings shoe now deletion and adds, "Additionally, if you have been following the sector, you would realize that modulation overlay has been developed by each company. This allows the addition of channels, as well as other services. Your entire statement is baseless, and factually incorrect."
RNW comment: The above we feel is enough for any rational person to dismiss NAB's comments in general on the basis that if they employ Rehr as anything other than an office cleaner they're obviously not serious about arguing their case as opposed to putting out B or below-grade propaganda. They may of course be correct and there may be enough stupid and ignorant Americans to make this a sensible course of action but if so we're remarkably fortunate in the Americans we know and work with. They certainly are neither that ignorant nor stupid.
On then to the Fairness Doctrine and we begin with a Los Angeles Times editorial mainly because it seems to us to contradict its own argument part-way through (Was Rehr involved in writing it?).
Headed "The unfairness doctrine", the editorial next has a strap line that says "A law that would demand broadcasters air opposing views makes no sense in a time when media is more accessible than ever."
Most of its arguments are reasonable but we noted buried inside the body of the text the lines: "A law that would demand broadcasters air opposing views makes no sense in a time when media is more accessible than ever" and later, "The Federal Communications Commission instituted the Fairness Doctrine in the late 1940s as a compromise of sorts -- it wanted broadcasters to pay attention to local issues but feared they would exert undue influence over them. It abandoned the rule in 1987 on grounds that the rise of cable TV networks had diluted broadcasters' sway over public opinion."
The editorial then says "The threat to talk radio is clear. If the rule were reinstituted, stations that carry Rush Limbaugh could be forced to broadcast commentaries favouring everything that Limbaugh derides, from greenhouse gas controls to same-sex marriage. With hundreds of provocative talk-show hosts on the air, federal regulators could soon be awash in demands for rebuttals."
RNW comment: Considering that US talk radio as a successful commercial format dates back to 1960 - KABC-AM in Los Angeles and KMOX-AM in St Louis - and that many other stations- including WABC-AM, which made the move in 1982 - had switched from music to talk before the Fairness doctrine was abandoned, the doctrine did not prevent commercial success for talk albeit it may have held it back and the editorial here seems to be going along with scaremongering rather than provided a sound fact-based argument. This does not, of course, detract from the rest of the editorial, which makes its case quite well.
It does, however, take us on to comments on the matter from FAIR (Fairness and Accuracy in Reporting) that are less hostile to the Doctrine and also a posting on CBS's Public Eye that, without arguing for re-introduction, makes the point that the issue is rather a phoney one.
Under the heading "No 'Fair' Fight?" Matthew Felling comments, "The only thing wrong with this debate? There really wasn't one. An amusing facet of the quote-unquote debate has been the fact that very few people were actually advocating for the reinstatement of the rule; some pushing in that direction were accused of misreading the report. Said the think-tank responsible for the study that pointed out the imbalance said - and I quote - "Forget the Fairness Doctrine."
Felling also quoted Kevin Martin's comments saying that in his judgment "the events of the last two decades have confirmed the wisdom of the commission's decision to abolish the Fairness Doctrine" and concludes that "…the 'big bang' of media options -- from satellite radio to liberal radio to blogs to streaming video online -- has created an amount of ideological parity that makes the "Fairness Doctrine" feel downright anachronistic, like a landline in an iPhone world."
And from FAIR, we take a look back at a 1984 article by Jeff Cohen entitled "The 'Hush Rush'Hoax: Limbaugh on the Fairness Doctrine" that indicates that Felling is hardly reporting a new phenomenon when it comes to misrepresentation of the Doctrine's effects.
Quoting the host from his own "Letter" in 1993 - "I, Rush Limbaugh, the poster boy of free speech, am being gang muzzled" - Cohen says that "As usual, Limbaugh's followers were mobilized through misinformation and deception."
He gives a little history of the 1987 attempt to re-instate the doctrine - a bill to make it Federal Law was vetoed by President Ronald Reagan after passing the House by a 3-1 vote and the Senate by nearly 2-1 and Cohen notes that "Voting for the bill were such "commie-libs" as Rep. Newt Gingrich (R-Ga.) and Sen. Jesse Helms (R-N.C.).W
Another attempt at re-instatement passed in the House but went no further when President George Bush (the one who actually fought in a war) threatened to veto it and hearings in 1991 similarly fell away under the veto threat. Limbaugh's 1993 campaign was launched when President Clinton was perceived as potentially likely to sign it and Cohen comments that "Limbaugh egotistically portrayed it as nothing but a 'Hush Rush Law'" and that his supporters believed him and his claims that the Doctrine was aimed at censoring conservative hosts.
Cohen says of this, "In reality, not one doctrine decision issued by the FCC had ever concerned itself with talk shows. Indeed, the talk show format was born, and flourished, while the doctrine was in operation. Right-wing hosts often dominated the talk shows, even in liberal cities, but none was ever muzzled."
Cohen then continues, "The Fairness Doctrine doesn't require that each program be internally balanced, or mandate "equal time": It would not require that balance in the overall program line-up be anything close to 50/50. It merely prohibits a station from blasting away day after day from one perspective, without any opposing views. It would not "hush Rush," but it may get stations that offer only a constant diet of Limbaugh and fellow right-wingers to diversify their line-up a bit. Limbaugh was uttering nonsense when he claimed (Limbaugh Letter, 10/93) that to balance his show under the Fairness Doctrine, station owners "will have to go out and get two liberal shows. Or maybe three. Even three might not be enough."
And making one part of the |argument that still has some validity, if rather less, Cohen comments in response to Limbaugh's arguments that there should be no fairness requirement on broadcasters since there is none on newspapers, "He misses the key difference: If you want to compete with Limbaugh's partisan publication in the marketplace of ideas, you can simply start your own publication right next to his. But if you set up your own competing broadcast program right next to a Limbaugh station on the radio dial, without acquiring a government license, you will be prosecuted. Broadcast frequencies are limited; printing presses are not."
RNW comment: If broadcasts are still considered to matter that remains true without removing the argument that cable, satellite and the Internet have made reduced the dominance by broadcasters.
Which of course raises the question, particularly of radio, of whether the new options available, are making serious inroads onto its traditional turf.
In Australia, according to Katie Cincotta in the Melbourne Age, they are. Writing under the heading, "Dude, where's my audience?" she says "Gen Y is switching off the radio, telly and stereo and turning to the internet for, well, just about everything. Digital natives, they call them. Raised on the revolution of broadband, mobiles, MP3s and the user-generated content explosion, young audiences are fast tuning out of traditional media."
Figures cited to back up the contention are a 6% overall fall in TV audiences over the last five years within which there was a 17% drop amongst 16-39-year-olds and also a fall in use of newspapers, magazines, radio and cinema in favour of the internet by the younger generation with "time spent online by 14-25-year-old 'heavy internet users'" doubling from 18% in 2002 to 36% in 2007.
The reasons may not, however, all be to do with the medium as much as the content and Cincotta quotes media buyer Steve Allen as saying TV has lost some of its audience to pirate downloaders, but believes lacklustre programming is also to blame and commenting, "When you don't have hits, to hang on to audiences is near impossible."
She also quotes Dion Appel, founder of young adult research group Lifelounge, concerning another threat to older media because growing niche audiences are threatening the ability to measure the mass market and are reducing the value of "old media" measurements.
In this Appel is backed up by Simon van Wyk, who heads digital marketing agency Hothouse Interactive, and commented, that media diversity and the "long tail" of content - a term coined by Wired magazine that refers to the plethora of sales niches available such as websites, blogs, pay TV channels, products etc - makes accurately measuring an audience an arduous task.
"It's much more difficult to measure the market now because it's more spread out," he says. "There are 1500 sites in Australia that get more than 50,000 users per month. That was a good audience for a magazine once."
Sometimes the measurement problems are working against traditional media, however, and Cincotta quotes ABC Radio National's talks program editor Joe Gelonesi as saying of its audience - 42% of 1.7 million downloads of ABC podcasts in May were of Radio National programmes and these are not included in the current diary-based radio ratings: "We don't know how much we're underestimating the audience by, because of these new ways of listening. I suspect it's by miles."
Gelonesi argues that there needs to be an agreed standard method of measuring digital audiences - there is no agreed research methodology to give a standardised ratings measurement and advertisers are thus unable to make sound comparisons with the audiences for traditional media - and comments, "Until we all subscribe to that, then it's just a schismatic world of everyone putting out figures, and apples and oranges will be in the same basket."
Despite the problems, however, the age notes that last year online advertising in Australia topped AUD 1 billion ( USD 849 million), exceeding that of the country's commercial radio industry that in 2002 recorded revenues of AUD 924.8 million (USD 775.4 million -See RNW Apr 19).
Finally, having noted the success of the ABC Radio National podcasts - which are not music based but programmes on such topics as books, religion, science, and technology - a comment from Gillian Reynolds in the UK Daily Telegraph that was prompted by the row over BBC involvement in misleading audiences or potentially doing so via a TV trailer that was never aired. Under the headline, "Radio is more believable" Reynolds comments that regarding the trailer, the "reporters, none of whom checked the "scoop" with the Palace, said they believed it was true because the BBC told them."
"There's the clue to this whole issue," she continues. "What you believe depends on who tells it to you… Television these days has fewer documentaries where an established reporter tells the story. Radio is still rich in them."
Reynolds then goes on the praise the documentaries "China Girl" aired by BBC Radio 4 (The BBC being a public service broadcaster, streams of both are still online!) that we compiled by Emily Buchanan, the BBC's world affairs reporter.
Buchanan writes Reynolds "knows about this, having adopted two, both girls… These programmes were enriched by her own experience but not about it, focusing instead on people going through the adoption process. Because she understood their experience, they gave her their confidence. As a good reporter, she let them speak for themselves."
Reynolds gives further details of the programmes and statistics - some 12, 000 Chinese babies are adopted abroad each year, around a quarter of those who have been abandoned by their parents and are in institutions but the best suggestion we can make is to listen for yourself.
Next after the mention of ABC Radio National we suggest a dip into the site - the range is strong with recent offerings including
"All in the Mind", whose last two issues looked at the ethics of experimenting on animals and last Saturday features an interview with the psychologist responsible for the Stanford Prison Experiment and who thinks there are strong parallels with what the students involved did and the atrocities at Abu Ghraib; "Background Briefing" that on Sunday that reported on the Australian bee industry - currently free from disease but fearful of the introduction of the varroa destructor that has been decimating US bees; a "Health Report" on prostate cancer; last Thursday's "Law Report" that considered two cases - of a music promoter jailed for tax evasion and the case of the Indian doctor who was detained under Australia's anti-terror laws but released, although his working visa was withdrawn, when the evidence against him turned out to be inaccurate; and also last Thursday's "Media Report" that included an interview with the head of ABC Radio Sue Howard, responding to allegations that the corporation is sounding more and more like its commercial counterparts and reports on the controversy involving the BBC and at mobile TV.
Also worthy of a listen is last week's "On the Media" from WNYC - its topics included the detention in Guantanamo Bay of former Al Jazeera camera man, Sami Al-Hajj, as an enemy combatant and UK Guardian Seamus Milne on the voice of Iraq's insurgents.
Turning to the BBC we first note that the Corporation has troubles with its Radio Player and for various services the current suggestion is to go to the "Listen Again" pages which have alternative links to some of those in the Radio Player.
As listening we first suggest BBC Radio 4 and "Book of the Week", which this week is "The American Invasion of British High Society" by Charles Jennings. Very revealing of how impoverished or dissolute English nobility were prepared to exploit American "cash cows" - the phrase is used in the readings whilst the cows were prepared to put up money - and with a lot more - for a title.
Also from Radio 4 on Monday we suggest "India and Pakistan 07" in which Hardeep Singh Kohli makes a personal journey across the borders of India, Pakistan and Bangladesh, hearing the stories of those who were affected by partition 60 years ago and how the consequences are still being felt.
The "Woman's Hour Drama" is also part of the season with "5,000 Rupees" adapted by Ayeesha Menon, from the novel by Vikas Swarup.
RNW note: We will further update listening suggestions later with more BBC recommendations..
Previous Columnists:
Previous Reynolds:
CBS Public Eye - Felling
FAIR (1994)- Cohen:
Gorman blog:
Los Angeles Times -editorial:
Melbourne Age - Cincotta:
Seeking Alpha: Savery:
UK Daily Telegraph- Reynolds:
2007-07-29: Last week was a fairly steady one for the regulators with the most important issue on the various agendas submissions to the Federal Communications Commission (FCC) relating to the proposed Sirius-XM satellite radio merger.
In Australia, the Australian Communications and Media Authority (ACMA) has posted only one radio licence decision, the renews 4CRB Gold Coast's community broadcasting licence with a change to its community interest so that it now represent seniors in the licence area rather than the genera community. The change was requested by the licensee, the Christian and Community Broadcasting Association Ltd.
The Authority has also called for public comments, with a deadline of August 6, on its draft Guide To the Transfer of Community Broadcasting Licences. This lists the circumstances in which ACMA may approve such a transfer and contains advice on the kind of evidence applicants may provide in support of their applications.
In Canada, radio-related postings by the Canadian Radio-television and Telecommunications Commission (CRTC) included the following (In order of province):
Alberta:
*Renewal until 31 August 2014 of the licence of CIBW-FM, Drayton Valley.
*Renewal until 31 August 2014 of the licence of English-language community-based campus station CJSR-FM, Edmonton.
*Renewal until 31 August 2014 of the licence of low-power, commercial English-language station CIHS-FM, Wetaskiwin,
British Columbia:
*Renewal until 31 August 2014 of the licence of CHWF-FM, Nanaimo.
*Renewal until 31 August 2014 of the licence of Slocan Valley T.V. Society's radiocommunication distribution undertaking serving Passmore: This distributes the programmes of CFMI-FM, New Westminster, British Columbia and CISN-FM, Edmonton, Alberta.
New Brunswick:
Renewal until 31 August 2014 of the licence of English- and Native-language Type B native station CKTP-FM, Fredericton.
Ontario:
*Approval of application by Humber Communications Community Corporation, on behalf of a corporation to be incorporated for a licence to operate a 60 watts English-language instructional campus FM radio programming undertaking at Humber College in Toronto.
*Renewal until 31 August 2014 of the licence of CKYC-FM, Owen Sound.
*Renewal until 31 August 2014 of the licence of CJUK-FM, Thunder Bay.
*Renewal until 31 August 2014 of the licence of CJTK-FM-1, North Bay, and CJTK-FM-2, Little Current.
*Renewal until 31 August 2014 of the licence of CKTT-FM, Timmins.
*Renewal until 31 August 2014 of the licence of CIRV-FM, Toronto.
*Renewal until 31 August 2014 of the licence of CIMX-FM, Windsor.
Quebec:
*Renewal until 31 August 2014 of the licence of French-, English- and Native-language Type B native station CKII-FM, Dolbeau.
In Ireland, the Broadcasting Commission of Ireland (BCI) has deferred the advertising of three radio licences because it wishes to give priority to digital TV matters (See RNW Jul 27) and in a rather busier UK Ofcom has appointed Jill Ainscough as its Chief Operating Officer (See RNW Jul 27); has proposed new regulations relating to premium rate services (See RNW Jul 25); has issued a "Yellow Card" to High Wycombe and Amersham station Mix 107 for not operating within its Format, advertised a new digital multiplex and updated its digital multiplex advertisement timetable as well as being involved with community station awards and licence advertisements.
The Mix "Yellow Card" was issued following a Spot Sampling Report carried out in relation to part of its output and was triggered after correspondence with the station about a proposed Format change request, in which it transpired that the station had dropped the specialist Asian and Afro-Caribbean music programming required by its Format.
Ofcom insisted that Mix 107 reinstate these programming elements and the station said that from 29 April it would broadcast two new programmes, 'The Caribbean Connection' and 'The Asian Connection', early on Sunday mornings from 05.00 to 08.00 but Ofcom's monitoring on Sunday 10 June revealed that Mix 107 did not broadcast the new programmes, and it was also unable to provide recordings for Sunday 6 May.
Ofcom noted that "the programmes on other weekends that were broadcast fell short of listener expectation and an acceptable standard of output" and continued, "By the station's own admission, on at least two occasions (that we are aware of) out of the first seven scheduled slots, the programmes failed to be broadcast without the knowledge of station or group management and therefore no remedial action was taken. In our view, this represents either a serious breakdown in compliance/operational procedure or a lack of commitment to meeting specific obligatory aspects of the Mix 107 Format."
On the digital front, Ofcom has advertised a new DAB multiplex for Gloucestershire, a licence area that it estimates could cover an area with a 15-plus audience of around 460,000: Applications with a non-refundable fee of GBP 5,000 (USD 10,000) have to be submitted by October 24.
Ofcom has also update its planned timetable for advertisement of new radio multiplex licences: Licences still to be advertised this year are:
October - for Lincolnshire excluding the South Holland district of Lincolnshire or the southern part of the South Kesteven district of Lincolnshire, which are covered by the Peterborough local radio multiplex.
November - Mid and West Wales covering the counties of Pembrokeshire/Sir Benfro, Carmarthenshire/Sir Gaerfyrddin, Ceredigion and Powys.
December - Surrey & northern Sussex- to cover Rushmoor district and parts of the Hart and East Hampshire districts of Hampshire, the Crawley district of West Sussex, parts of the Chichester district of West Sussex, the parts of the Horsham and Mid Sussex districts of West Sussex that are not in the PPA of the existing Sussex Coast multiplex, and the parts of the Lewes and Wealden districts of East Sussex that are not in the PPA of the existing Sussex Coast multiplex.
Ofcom has also published its reasons for the award of the new national multiplex licence to 4 Digital Group Ltd and of the new Derbyshire to NOWdigital East Midlands Limited (For both see RNW Jul 6).
Ofcom said of the national licence award for which there was also an application from National Grid Wireless Ltd that the winning bid was in its view "best calculated to promote the development of digital sound broadcasting in the UK (other than by satellite)" and added that in particular "the shareholders in 4DG, which include significant media companies for whom this national radio multiplex service will represent their first substantial investment in radio (e.g. Channel 4 and BSkyB) alongside experienced broadcast radio operators (e.g. Emap, Chrysalis), are able to offer a breadth of marketing and cross-promotional opportunities and resources through their existing portfolios of services and brands which should help to give DAB digital radio a strong boost at this important time for the platform."
It also noted that "4DG had developed partnerships with, among others, receiver manufacturers, retailers and the BBC, and felt that these relationships would assist in the promotion of DAB digital radio."
Regarding programming the licensing committee considered that 4dg'S proposals "appealed to a variety of tastes and interests" and said that "services such as the proposed "contemporary public service speech" and "youthful interactive entertainment" channels (Channel 4 Radio and E4 Radio respectively) would be likely to provide strong competition for the BBC."
The Committee "especially welcomed the prospective return to a national radio platform of a rolling news service (Sky News Radio) and new national services designed to appeal to Britain's varied communities of Asian origin (Sunrise Radio UK) and to children (Radio Disney). In light of the declining level of radio listening among younger listeners, the success of the E4 brand in appealing to a young audience was also noted."
Regarding the Derbyshire award to sole bidder NOWdigital East Midlands', the licensing committee said it "considered that the proposed multiplex line-up offered a good variety of services, likely to have a appeal to a broad range of listeners in terms of age and musical tastes" and also noted that the applicant had provided evidence of a strong local demand for various of the services.
On the Community radio front, Ofcom has published its 2006-07 Community Radio Fund end of year report in which it says the Department of Culture, Media and Sport, provided a total of GBP 830,000 (USD 1.66 million) in funding (See RNW Jul 26).
It has also invited applications for community licences in North Wales and Northwest England; North and North East England; Scotland and Northern Ireland; Southwest England and South/Mid Wales; and Yorkshire.
In the US, the Federal Communications Commission (FCC) as already noted is now considering submissions relating to the proposed Sirius-XM Satellite Radio merger but in general has had a fairly quiet week was regards radio.
Amongst its actions was the announcement that is now ready to grant another construction permit for a licence sold in its Auction 37 of 288 FM permit in 2004. The licence involved is for Marfa, Texas, and was won by Matinee Radio LLC.
The commission also terminated its investigation of Matinee Radio and issued a Consent Decree resolving matters raised by the investigation: As part of the order Matinee is to make a USD 35,000 payment to the US Treasury.
Previous ACMA:
Previous BCI:
Previous CRTC:
Previous FCC:
Previous Licence News:
Previous Ofcom:
ACMA web site:
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FCC web site:
Ofcom web site:
2007-07-28: Clear Channel has reported second quarter revenues up 5% on a year earlier to USD 1.8 billion , including a USD 29 million increase due to foreign exchange movements without which the increase would have been 4%: Operating expenses, however, increased by 6% - to UD 1.1 billion - but including USD 24.3 million due to movements in foreign exchange without which the increase would have been 3% and net income was up 19% to USD 236 million (The increase per diluted share was 23% from 39 cents to 48 cents).
Clear Channel says its income before discontinued operations was up 21% to USD 208.7 million whilst OIBDAN (net income adjusted to exclude non-cash compensation expense and certain other items) was up 6% to USD 636.8 million.
In divisional terms, radio revenues were up 1% in the quarter to USD 918.4 million, Outdoor revenues were up 12% to USD 876.7 million and other revenues fell 6% to USD 836.7 million. Radio expenses were down 1% to USD 524.4 million and outdoor expenses rose 14% to 560.7 million, each including allowance for non-cash compensation expenses and radio operating income rose 5.2% to USD 359.1 million with outdoor operating income up 13.7% to USD 174.9 million while other operating income moved from a positive USD 601,000 to a negative 1.97 million.
Regarding its disposal programme, Clear Channel says that it expects to close the TV Group sale with net proceeds of approximately USD 1.1 billion in the fourth quarter of this year whilst of the 448 radio stations put up for sale it had by the end of June agreed sales of 389 in 77 markets for USD 871.5 million and had completed the sale of 29 of these for USD 75.8 million with the remaining transactions to close this year with estimated net proceeds estimated at USD 781 million.
It adds that it has subsequently agreed the sale of 13 more stations in two markets for USD 4 million and is continuing attempts to sell 46 stations in nine markets.
CEO Mark P. Mays said of the results, "Our second quarter radio revenues were ahead of the industry, while our outdoor unit continued to post solid growth. We continue to make progress in strengthening our diverse portfolio of out-of-home media properties. Our focus remains on transitioning our assets to meet the shifting demands of our audiences, as well as our advertisers by offering compelling content, expanding our distribution capabilities and investing in our brands."
Regarding its sale to a group of private equity funds led by Bain Capital Partners, LLC and Thomas H. Lee Partners, L.P. for USD 39.20 per share with an opportunity for unaffiliated shareholders to exchange their shares for shares in the new corporation that will own the company, subject to caps that limit the total to 30% of the votes of the new corporation, Clear Channel says that shareholders of record on July 27 this year will be entitled to vote on the matter at a special meeting whose time and date has yet to be set. Should closure take place after January 1, 2008, shareholders will be entitled to additional payments.
Previous Clear Channel:
Previous Mark Mays:
2007-07-28: Shares in UK Emap rose against a falling market on Friday to end the day up 12.4% at GBP 8.58 - they hit a peak of GBP 8.90 at one stage - following an announcement that "in response to various unsolicited proposals it has received recently for parts of the Group" it is reviewing its structure and assets and will explore all options to maximize shareholder value "including a possible sale or de-merger of some or all of its constituent businesses. "
The announcement reverses comments in May this year by chairman Alun Cathcart saying the numbers were against a break-up and adding "We are going to keep the group together. Yes, we're going to carry on, and no, there have been no approaches of any kind, it's just speculation (See RNW May 23)."
Analysts consider Emap undervalued - some put its value at around GBP 9.90 making it worth some GBP 2.3 billion (USD 4.6 billion - and most think a break-up is more likely than sale to a single bidder with a number of companies including Global Radio or GCap Media potentially interested in the radio holdings, which include the Magic and Kiss brands and are valued at around GBP 390 million (USD 780 million); others in the magazine business which is valued at around GBP 700 million (USD 1.4 billion) and which has already sold its French (sold last year for GBP 380 million- then USD 720 million - See RNW Sep 30, 2006) and US operations (sold in 2001 to Primedia for GBP 366 million only three years after it had spend GBP 1 billion on the purchase of Petersen Publishing); and yet others in the business-to-business , which accounted for 45% of profits last year and which is valued at around GBP 1.25 billion (USD 2.5 billion).
Previous Cathcart:
Previous Emap:
2007-07-28: According to the New York Post, Don Imus is close to a settlement under which CBS Radio would buy out his contract to avoid costly litigation. The paper cites "multiple sources close to the situation" as saying there is agreement in principle but not yet on the amount - Imus has USD 40 million left on his contract but has launched a lawsuit against CBS for USD 120 million (See RNW May 5).
The paper adds that despite the racist comments made on air by the host about the Rutgers University women's basketball team that led to his dismissal (See RNW Apr 13), one radio executive commented that he'd "rather be Imus in that lawsuit than CBS."
Imus, himself, notes the paper want to get back on the airwaves and is said to have been in touch with other broadcasters including Buckley Broadcasting, Citadel and Clear Channel whilst CBS is reported to be "dragging its feet on making the deal official until it can sign Boomer Esiason to a contract to take over Imus' old morning slot on WFAN.(See RNW Jul 26)." It adds that both camps have an interest in keeping details quiet - neither CBS nor Imus's attorney Martin Garbus have commented on the reports, since for each of them their negotiations with other parties - in the case of CBS removing any possibility of an Imus return weakens its hand in negotiations about a new WFAN morning host whilst Imus would equally be weaker in his negotiations with a potential new employer.
Previous CBS:
Previous Imus:
New York Post report:
2007-07-28: Mexican Radio company Grupo Radio Centro has reported second quarter revenues down 40.5% on a year earlier at MXN 145.5 million (USD 13.23 million) with half-year revenues down 36.9% to MXN 270.5 million (USD 24.6 million), attributing the fall for both the first and second quarters primarily to a fall in political advertising - in July 2006, Mexico held presidential and congressional elections.
Broadcasting expenses in the quarter were down 21.1% to MXN 100.8 million (USD 9.2 million) and in the first half down 10.3% to MXN 207.8 million (USD 18.9 million) and broadcasting income was down 61.7% for the quarter to MXN 44.7 million ( USD 4.1 million) and 68.1% for the half-year to MXN 62.8 million (USD 65.7 million) with net income for the quarter dropping from MXN 321.1 million ( USD 29.2 million) to MXN15.6 million ( USD 1.42 million) and for the half-year from MXN 356.5 million (USD 32.4 million) to MXN 12.7 million (USD 1.16 million). The half-year figure was helped by a 73.9% decrease in financing charges as Grupo Radio paid off its bank debt in May 2006.
The company also notes continuing legal proceedings in a dispute between it and Infored, S.A. de C.V. producer of its former top-rated "Monitor" news programme and Gutierrez Vivo, host of the programme.
Previous Grupo Radio:
2007-07-27: Following its release of an upbeat interim report UK GCap shares bounded by nearly 10% at one point on Thursday, reaching GBP 233.50 before ending the day up 3.95% at GBP 223.50.
GCap said in the Interim statement - covering the period from April 1 to July 25 - that June revenues were up 6% year on year, ahead of expectations; that July revenues were expected to be up 16% year on year within which radio revenues would be up 14%; that there was an "encouraging trend in advertising revenue, with total revenues for the first quarter up 2% year on year on a like for like basis"; and that it had "plans in place to increase operating profit margin to within the range 12% - 14% by March 2009."
The company added that cost reduction "continues to be a top priority" and that it remains on track to achieve GBP 5.5 million (USD 11 million) of additional cost savings that it announced in May this year, thus taking total savings achieved since the merger of GWR and Capital Radio to GBP 35 million (USD 70 million) per annum, some 20% of the cost base of the Group at the time of the merger. These reductions in conjunction with revenue initiatives, it said, should if radio advertising continues to improve enable it to target an "operating profit margin of between 12% - 14% by March 2009."
In audience terms GCap noted that the May UK ratings showed its group audience up 1% quarter-on-quarter to 15.2 million a week; its digital stations up 13% to 900,000 a week; Classic FM, its national classic music franchise, up 5% to top 6 million a week; The One Network and XFM network each up 2% to 7.4 million and 1.2 million a week respectively; and London flagship Capital up 11% to 1.6 million.
It adds that its websites provide a tool for developing both our audience and a new revenue stream, independent of radio advertising budgets with increased traffic in the quarter to June up 13% on last year to 1.4 million average monthly unique users and like for like online revenues for the quarter up 38% year on year.
Chief Executive Ralph Bernard commented, "We are continually improving the business and finding new ways to unlock its full potential. We have already achieved cost savings far greater than envisaged at the time of the merger and are confident that we can deliver substantial margin improvements in the future. Our brand portfolio has been streamlined, audiences are being built at all our major stations and we are investing where we can see attractive returns. Encouragingly, we are beginning to see signs of improvement in advertising revenues, despite an uncertain outlook for consumer confidence."
Previous Bernard:
Previous GCap Media:
2007-07-27: XM Satellite Radio has announced revenues for the second quarter of this year up 22% on a year ago to USD 277 million with its net loss down 23% from USD 229.1 million a year ago to USD 175.8 million (From 87 cents to 57 cents per basic and diluted share, including 12 cents this year related to a non-cash impairment charge to XM's investment in Canadian Satellite Radio) although its operating loss was up from USD 101.7 million a year earlier to USD 108 million and adjusted operating loss was up from USD 46 million to USD 47 million, including USD 4 million in expenses related to the planned merger with Sirius. Subscriber numbers rose from 6.9 million a year ago to 8.25 million
Subscriber acquisition costs also rose, from USD67 to USD 75, and per gross addition (CPGA) was up from USD 112 to USD 121, including USD 10 for inventory- related charges as well as a USD10 increase as a result of continued OEM growth from increased production by newer automotive partners.
Outgoing Chief Executive Hugh Panero, who is to leave next month (See RNW Jul 25) said of the results, "During the second quarter, XM's revenue grew and losses narrowed. XM added more automotive gross subscriber additions than during any quarter in the company's history. XM's partners include the nation's largest and fastest- growing automakers and XM is well positioned for this segment to provide sustained subscriber growth as production of XM-equipped vehicles ramps up for the 2008 model year and beyond."
Of the planned merger with Sirius he commented, "The regulatory review process for our merger with Sirius Satellite Radio continues to move ahead. We look forward to continuing to work with the Federal Communications Commission and with the Department of Justice to further demonstrate that this merger is in the public interest and should be approved. We anticipate the merger will close in late 2007."
XM says that at the end of June it had USD 275 million in cash that together with availability of USD 400 million of credit gave it total available liquidity of USD 675 million. XM stock fell 7.86% to USD 11.13 against a backdrop of an overall market fall - the Dow was down 2.6% and the NASDAQ 2.9%.
Previous Panero:
Previous XM:
2007-07-27: UK media regulator Ofcom has appointed Jill Ainscough, most recently Managing Director of broadband company Easynet Group plc from 2004-6, as its Chief Operating Officer to succeed Ed Richards' who was promoted to the post of Chief Executive last year. She takes up the post on August 7.
Commenting on the appointment, Richards said "Ofcom is very fortunate to have found someone of Jill's calibre and experience for this crucial role. I know she will make an excellent contribution to our important consumer and citizen-facing activities and well as to the effectiveness of the working practices of a lean regulator."
Previous Ofcom:
Previous Richards:
2007-07-27: The Broadcasting Commission of Ireland (BCI) has postponed its advertisement of three commercial radio services- a classic rock service for the Dublin and commuter belt area; a country and Irish service for the North East and; a country and Irish service for the Mid-West.
The Commission says it made the decision because of the need for it to give priority to the development of Digital Terrestrial Television (DTT).
Previous BCI:
2007-07-27: The UK government's Traffic Radio service operated by the Highways Agency officially launched on various digital services around the country on Thursday.
It replaces Smash Hits on multiplexes in the north of England and Capital Disney in Greater London, South Hampshire, Leicester, Nottingham, Swindon and west Wiltshire.
The service is intended to allow motorists to dip in and out for information not entertainment and complement's the online Traffic Radio service that has now been operating for two years.
2007-07-26: In continuing opposition to the planned Sirius-XM merger, the US National Association of Broadcasters (NAB) has filed with the Federal Communications Commission (FCC) a 30-page response to comments about the merger re-iterating its previously made points and also attempting to turn the announcement of a la carte offerings from a merged satellite company (See RNW Jul 24) against the satellite radio companies.
"The evidence shows that Commission approval of this monopoly would inevitably result in substantial anti-competitive harms, including increased prices and fewer programming choices for satellite radio consumers, less local programming for local radio listeners, and other public interest harms," says NAB, going on to add, "Indeed, by recently making additional pricing and programming promises, the Applicants effectively concede that the merger would be anti-competitive and that their only hope for approval is to convince the Commission to discard its pro-competitive vision and impose a detailed rate and programming regulatory regime instead."
NAB has also produced yet another report that says the merger should be rejected this time from Professor Stephen S. Wildman, co-director of the Quello Center for Telecommunication Management and Law at Michigan State University, who looked at pricing and advertising in the satellite market.
Wildman says he concludes that "the proposed merger in all likelihood would harm the public interest through its adverse effects on Satellite Digital and Audio Services (SDARS) subscribers and listeners to terrestrially-delivered local radio…Furthermore, by reducing the revenue available for local program production, the merger would diminish the ability of local stations to continue their contributions to the long-standing localism goals of U.S. communications policy… Because the merging parties have failed to provide compelling evidence of offsetting societal benefits the FCC should deny the Merger Application."
The NAB has also renewed its "unequivocal support" for Washington Democrat Rep Jay Inslee's Internet Radio Equality Act that would reverse the Copyright Royalty Board decision that greatly increased fees for streaming music from July 15 and has also said that it has received no response to an offer it made on June 6 to SoundExchange on the fees.
NAB Executive Vice President Dennis Wharton said of this - without detailing the offer - "We are disappointed by SoundExchange's continued reluctance to respond to the good-faith, reasonable offer put forth by NAB nearly two months ago. NAB will now turn our attention to aggressively advocating in support of Rep. Inslee's legislation to ensure that local radio broadcasters who stream content online are treated fairly."
Previous NAB:
Previous Sirius:
Previous SoundExchange:
Previous Wharton:
Previous XM:
2007-07-26: The Australian Broadcasting Corporation (ABC) together with industry body Commercial Radio
Australia (CRA) and Broadcast Australia (BA) have received "Content+Technology" magazine's inaugural award for "Outstanding Contribution to World Standards" for their work in contributing to the adoption of AAC+ as part of the worldwide DAB standard on behalf of the Australian radio industry and the ABC also received a second award in the Rich Media category where ABC Innovation won its work in developing ABC's Island in Second Life.
Commending on the DAB award, Colin Knowles, Director of the Technology & Distribution division of the ABC, said, "We are excited to have received this award and to have been involved in this industry collaboration, which has been instrumental in specifying and testing the new audio compression technology that has now been included in the global DAB standard."
He added, "I am proud of the role played by the ABC Research and Standards Unit in researching these enhanced audio compression standards and setting up and conducting listening tests in the first phase and then providing the analysis of field trials conducted by CRA and BA. This work has been critical in ensuring that the ABC will be able to achieve its long held goals of providing additional services to our audiences with digital radio".
Previous ABC, Australia:
Previous Commercial Radio Australia:
2007-07-26: UK media regulator Ofcom in its 2006-07 Community Radio Fund end of year report says the Department of Culture, Media and Sport, provided a total of GBP 830,000 (USD 1.66 million) in funding.
This came in the form of an initial GBP 450,000 (USD 900,000) to which was added funding not distributed in previous years.
In all payments were made to 40 community stations in amounts ranging from GBP 9,250 (USD 18,500) up to GBP 29,675 ( USD 59,350).
Previous Ofcom:
2007-07-26: According to Newsday Boomer Esiason's agent has confirmed he has been in discussions with CBS Radio about Esiason filling the morning slot on WFAN left vacant by the dismissal of Don Imus for his description of the Rutgers basketball players "nappy-headed hos." (See RNW Apr 13).
It quotes agent Steve Rosner as saying when asked about the talks, "It's our policy not to talk about specifics of discussions, but yes, we are having them."
The paper also says that it now appears unlikely that Imus will be back with WFAN despite please by his fans although it adds that it appears likely that he "will emerge elsewhere on the radio dial, presumably after securing a contract settlement with CBS."
Previous CBS:
Newsday report:
2007-07-25: XM Satellite Radio has announced that its chief executive- and one of its founders- Hugh Panero is to leave the company in August and that Nate Davis, currently XM President & Chief Operating Officer, will serve as President and interim CEO.
Paying tribute, XM chairman Gary Parsons said, "Hugh took satellite radio from a concept and turned it into the popular, mass market, consumer entertainment product it is today. I thank Hugh personally for his friendship, and professionally, for nearly a decade of industry leadership."
Under the proposed Sirius-XM merger, Panero would have been out as Sirius CEO Mel Karmazin is slated as CEO of the combined company should it gain regulatory and shareholder approval with Parsons becoming chairman of the combined entity.
In other satellite radio news, Karmazin has made it clear at a National Press Club luncheon that the al la carte programming that the two companies have said they would offer if merged, is only on offer if the merger goes through. Reuters reports that he told the lunch that only the synergies of the merger would permit the move and if it did not take place Sirius would stick with a single package.
Previous Davis:
Previous Karmazin:
Previous Panero:
Previous Parson:
Previous Sirius:
Previous XM:
2007-07-25: UK GCap Media has announced that following the acquisition of Classic Gold Digital in April this year, it is to form a new national classic hits network called 'Gold' that will take in the 18 AM and DAB digital Classic Gold radio stations and the seven AM and DAB digital Capital Gold stations.
The new network will launch from 19:00 local on August 3 and the company says it will offer "an original and exciting product to ABC1 35-54 year old discerning music fans" and will "distinguish itself from the competition by playing the widest breadth of music currently available on commercial radio."
The network will have the strap line "It's all about the music" and GCap says it will offer a variety of specialist music shows, interviews with major artists, celebrity podcasts, special guest presenters and exclusive performances.
GCap has also announced that Classic Gold breakfast host Tony Blackburn will be leaving the station: His last broadcast will be on the morning of August 3, the day the new network launches.
In a statement issued by Capital Blackburn says, "After four and a half years presenting the Breakfast show on Classic Gold I have decided now is as good a time as ever to move on from a Network that I have enjoyed presenting on immensely."
He described the station's listeners as a "brilliant bunch" and adds, "I am sure that our paths will cross in the future as I am in discussions with GCap about a series of new shows. I have a number of exciting radio projects in the pipeline including finding suitable ways (on September 30th) to celebrate 40 years since I woke up the nation on the very first (BBC) Radio 1 breakfast show."
Blackburn's autobiography "Poptastic" is to be published soon and Andy Turner, Station Director of the new merged network, Gold, commented, "Tony is one of the legendary UK broadcasters, has been a dedicated Classic Gold DJ and done a great job in his role hosting breakfast. He will remain on the GCap books and I look forward to working with him on a number of programmes to coincide with the launch of his autobiography."
GCap has also announced a an exclusive deal that will make it the official radio partner of "The Simpsons Movie" which is to be promoted across its stations including Capital Radio, Xfm and Classic FM. The promotion will include a number of stunts including an attempt to break the world record for building the tallest doughnut tower and the movie will take over all the advertising spots on the Capital Radio website in the day of its premiere.
In other UK radio news, the UK Guardian, which is owned by the same parent, had reported that Guardian Media Group Radio is to create a GBP 1 million (USD 2 million) programming fund to boost creativity among independent producers and internet programme providers for GMG's Smooth, Real, Century and Rock Radio networks.
The paper says the move is also intended to boost the UK's "ailing commercial radio sector" and be "a shot across the bows of Radio 2, GMG's main market rival and the UK's market leader."
GMG Radio chief executive John Myers told the paper, "There is no reason why the BBC should take all the best ideas." He pointed to "the unique ownership structure of GMG" as one of the main reasons it can deliver this level of investment outside its normal programming needs and said, "The move marks the beginning of a long-term strategy to create content that will stand out across the output of GMG. The aim is not necessarily to drive daytime audiences but rather to stimulate creativity in the commercial radio market, to lift the wider reputation of commercial radio and to encourage new programme makers to the sector."
Previous Blackburn:
Previous GCap Media:
Previous GMG:
Previous Myers:
UK Guardian report:
2007-07-25: Arbitron says that Cumulus Media has signed a short term limited agreement to use its Portable People Meter (PPM) Radio Ratings Service in Houston.
The agreement runs only 13 months and covers only two of Cumulus's Houston stations - classic rock KIOL-FM and Top 40 KRBE-FM: The third Cumulus station in the market - news KFNC-FM - is encoding its signal but, says Arbitron has not met the current minimum reporting standards for the PPM radio ratings reports issued to date for Houston.
Previous Arbitron:
Previous Cumulus:
2007-07-25: UK media regulator Ofcom is proposing new regulations relating to premium and interactive services from broadcasters: It has accepted the main recommendations in the report from Richard Ayre, a non-executive member of the Ofcom Content Board and former Deputy Chief Executive of BBC News, whose release earlier this month coincided with latest revelations about BBC malpractices in relation to competitions and PRS - premium rate services (See RNW Jul 19).
In particular Ofcom is accepting recommendations to hold broadcasters directly accountable for their use of premium rate services and has launched a consultation on its proposals with an October 17 deadline for responses.
The proposals include new licence obligations for both radio and TV broadcasters that will hold broadcasters directly responsible for consumer protection and PRS compliance and a requirement for television and radio broadcasters to ensure independent third party verification of PRS activity.
The report is primarily concerned with TV broadcasts and makes particular reference to dedicated participation TV services - typically quiz, psychic and adult chat services - which rely heavily upon interaction with viewers by means of PRS: These are currently regulated by Ofcom as editorial content under its Broadcasting Code. Ofcom is consulting on future regulation of these services, to ensure that advertising and editorial are kept separate, as required by European broadcasting legislation.
Ofcom says its proposals would "ensure fair and consistent treatment for all those participating in programmes, such as entering competitions and voting."
Previous Ofcom:
2007-07-25: XM Satellite Radio has announced that its chief executive- and one of its founders- Hugh Panero is to leave the company in August and that Nate Davis, currently XM President & Chief Operating Officer, will serve as President and interim CEO.
Paying tribute, XM chairman Gary Parsons said, "Hugh took satellite radio from a concept and turned it into the popular, mass market, consumer entertainment product it is today. I thank Hugh personally for his friendship, and professionally, for nearly a decade of industry leadership."
Under the proposed Sirius-XM merger, Panero would have been out as Sirius CEO Mel Karmazin is slated as CEO of the combined company should it gain regulatory and shareholder approval with Parsons becoming chairman of the combined entity.
In other satellite radio news, Karmazin has made it clear at a National Press Club luncheon that the al la carte programming that the two companies have said they would offer if merged, is only on offer if the merger goes through. Reuters reports that he told the lunch that only the synergies of the merger would permit the move and if it did not take place Sirius would stick with a single package.
Previous Davis:
Previous Karmazin:
Previous Panero:
Previous Parson:
Previous Sirius:
Previous XM:
2007-07-25: UK GCap Media has announced that following the acquisition of Classic Gold Digital in April this year, it is to form a new national classic hits network called 'Gold' that will take in the 18 AM and DAB digital Classic Gold radio stations and the seven AM and DAB digital Capital Gold stations.
The new network will launch from 19:00 local on August 3 and the company says it will offer "an original and exciting product to ABC1 35-54 year old discerning music fans" and will "distinguish itself from the competition by playing the widest breadth of music currently available on commercial radio."
The network will have the strap line "It's all about the music" and GCap says it will offer a variety of specialist music shows, interviews with major artists, celebrity podcasts, special guest presenters and exclusive performances.
GCap has also announced that Classic Gold breakfast host Tony Blackburn will be leaving the station: His last broadcast will be on the morning of August 3, the day the new network launches.
In a statement issued by Capital Blackburn says, "After four and a half years presenting the Breakfast show on Classic Gold I have decided now is as good a time as ever to move on from a Network that I have enjoyed presenting on immensely."
He described the station's listeners as a "brilliant bunch" and adds, "I am sure that our paths will cross in the future as I am in discussions with GCap about a series of new shows. I have a number of exciting radio projects in the pipeline including finding suitable ways (on September 30th) to celebrate 40 years since I woke up the nation on the very first (BBC) Radio 1 breakfast show."
Blackburn's autobiography "Poptastic" is to be published soon and Andy Turner, Station Director of the new merged network, Gold, commented, "Tony is one of the legendary UK broadcasters, has been a dedicated Classic Gold DJ and done a great job in his role hosting breakfast. He will remain on the GCap books and I look forward to working with him on a number of programmes to coincide with the launch of his autobiography."
GCap has also announced a an exclusive deal that will make it the official radio partner of "The Simpsons Movie" which is to be promoted across its stations including Capital Radio, Xfm and Classic FM. The promotion will include a number of stunts including an attempt to break the world record for building the tallest doughnut tower and the movie will take over all the advertising spots on the Capital Radio website in the day of its premiere.
In other UK radio news, the UK Guardian, which is owned by the same parent, had reported that Guardian Media Group Radio is to create a GBP 1 million (USD 2 million) programming fund to boost creativity among independent producers and internet programme providers for GMG's Smooth, Real, Century and Rock Radio networks.
The paper says the move is also intended to boost the UK's "ailing commercial radio sector" and be "a shot across the bows of Radio 2, GMG's main market rival and the UK's market leader."
GMG Radio chief executive John Myers told the paper, "There is no reason why the BBC should take all the best ideas." He pointed to "the unique ownership structure of GMG" as one of the main reasons it can deliver this level of investment outside its normal programming needs and said, "The move marks the beginning of a long-term strategy to create content that will stand out across the output of GMG. The aim is not necessarily to drive daytime audiences but rather to stimulate creativity in the commercial radio market, to lift the wider reputation of commercial radio and to encourage new programme makers to the sector."
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2007-07-25: Arbitron says that Cumulus Media has signed a short term limited agreement to use its Portable People Meter (PPM) Radio Ratings Service in Houston.
The agreement runs only 13 months and covers only two of Cumulus's Houston stations - classic rock KIOL-FM and Top 40 KRBE-FM: The third Cumulus station in the market - news KFNC-FM - is encoding its signal but, says Arbitron has not met the current minimum reporting standards for the PPM radio ratings reports issued to date for Houston.
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2007-07-25: UK media regulator Ofcom is proposing new regulations into premium and interactive services from broadcasters: It has accepted the main recommendations in the report from Richard Ayre, a non-executive member of the Ofcom Content Board and former Deputy Chief Executive of BBC News, whose release earlier this month coincided with latest revelations about BBC malpractices in relation to competitions and PRS - premium rate services (See RNW Jul 19).
In particular Ofcom is accepting recommendations to hold broadcasters directly accountable for their use of premium rate services and has launched a consultation on its proposals with an October 17 deadline for responses.
The proposals include new licence obligations for both radio and TV broadcasters that will hold broadcasters directly responsible for consumer protection and PRS compliance and a requirement for television and radio broadcasters to ensure independent third party verification of PRS activity.
The report is primarily concerned with TV broadcasts and makes particular reference to dedicated participation TV services - typically quiz, psychic and adult chat services - which rely heavily upon interaction with viewers by means of PRS: These are currently regulated by Ofcom as editorial content under its Broadcasting Code. Ofcom is consulting on future regulation of these services, to ensure that advertising and editorial are kept separate, as required by European broadcasting legislation.
Ofcom says its proposals would "ensure fair and consistent treatment for all those participating in programmes, such as entering competitions and voting."
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2007-07-24: Cumulus Media Inc., the second-largest radio company in the United States based on station count, has announced a merger agreement under which an investor group led by Cumulus Chairman, President and Chief Executive Officer Lewis W. Dickey, Jr. together with an affiliate of Merrill Lynch Global Private Equity will acquire Cumulus in a transaction valued at approximately USD 1.3 billion.
Under its terms stockholders will be paid USD 11.75 in cash for each of their shares, representing a premium of some 40% above the closing price per share of the Company's Class A Common Stock on July 20, 2007, the last trading day prior to announcement of the transaction.
The Board has recommended acceptance unanimously and Dickey, who will continue as Chairman, President and Chief Executive Officer of the Company after the merger, said in a statement: "This transaction represents an important chapter in our Company's history. We strongly believe in this industry and in the long-term opportunities to grow the business. I look forward to working closely with our talented team and our new partners to build upon our success."
The company says it expects the transaction to be completed in early 2008. The announcement pushed Cumulus stock up - at one time it hit USD 11.74 before dropping back to end the day 32.9% up at USD 11.12.
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2007-07-24: The US satellite radio companies- Sirius and XM - who today file their joint reply comments with the Federal Communications Commission (FCC) - have announced that a merged company would offer programming on an a la carte basis, a move they say "will provide subscribers with more choices and lower prices and pave the way for a unique form of competition in the entertainment industry -- one based on the individual programming preferences of listeners."
The plans announced include a 50-channel choice for USD 6.99 a month and a 100-channel a la carte service for USD 14.99 a month for a service the companies say will allow Sirius customers to choose from some of XM's best programming and vice versa. Currently people have to subscribe to each service at USD 12.95 per service to be able to hear both services.
The offer was derided by the National Association of Broadcasters (NAB), which has been lobbying heavily against the deal and whose Executive Vice President of Media Relations Dennis Wharton commented in a statement, "Policymakers should not be hoodwinked by today's announcement, since nothing is stopping either XM or Sirius from individually offering consumers a more affordable choice in limited program packages. Moreover, after reading the fine print, one discovers that XM and Sirius customers have to buy a new radio for an undisclosed fee to reap the alleged rewards from today's announcement."
"The history of antitrust law," continued Wharton "demonstrates that two hotly-competitive companies will promise anything to become a monopoly. That, coupled with the brazen lack of candour displayed by both XM and Sirius in breaking FCC interference and terrestrial repeater rules, illustrates convincingly that this anti-consumer merger ought to be summarily rejected."
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2007-07-24: In the UK, Portsmouth Football Club has joined the ranks of sports organizations going into broadcasting with a deal with The Local Radio Co (TLRC) to create a joint venture company that will own three radio stations- The Quay in Portsmouth, Spirit FM in Chichester and Isle of Wight Radio.
Under the deal TLRC will transfer the entire issued capital of the stations to the joint radio company in which Portsmouth FC will take a 26% stake for GBP 1 million ( USD 2 million ) in cash whilst TLRC will own the remaining 76%.
The Club will also have the right to increase its shareholding to 50% within the next 12 months for a further GBP 950,000 (USD 1.9 million).
TLRC executive chairman Richard Wheatly noted that Quay FM has had a "long and successful partnership with Portsmouth Football Club" and said the relationship had enabled the company to "establish Quay FM as one of the most successful and fastest growing local radio stations in the region."
The Quay carries live broadcasts of the club's games and this and cover of club news will now be extended to the other stations although all three will continue to be run independently of the club.
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2007-07-23: This week we start our look at print comment on radio with comments on the "Fairness Doctrine", the former Federal Communications Commission rule, dropped in 1987, that dictated giving time to opposing views and whose re-introduction has, according to many of the right-wing in the US, become an aim of many Democrats.
Writing in The Economist, Kevin Kallaugher names Democrat Senators Richard Durbin; Dianne Feinstein, and John Kerry as being or potentially in favour of a re-introduction - he also has Republican Trent Lott on his list of those who may be n favour - but he is strongly against the move.
This is not because of uncritical admiration for the hosts of US talk radio as the title "Let the blowhards blow" indicates as does his description of Rush Limbaugh as "a rich, white and often rather nasty celebrity", expanding this later with "Mr Limbaugh is clearly a great broadcasting talent. He is also a caveman."
To which he adds, "He is also a caveman. Most of his allies and imitators are cavemen without the talent: try listening to Sean Hannity of an afternoon. And the talk-radio hosts were certainly at their xenophobic worst during the immigration debate."
Then he continues, "But none of that is a reason for formatting them out of existence. The "fairness doctrine" is a hangover from a prehistoric technological era. It is an assault on free speech. And it embodies a trivial view of what makes for informative reporting. Serious politicians such as Mr Durbin and Ms Feinstein should be ashamed of themselves for digging it up."
Kallaugher says the doctrine was introduced when the airwaves were "a scarce public commodity dominated by three networks" and "always involved unattractive trade-offs." Broadcasters he says "were forced to accept limits on free speech that print journalists would have gagged on. Pressure groups and litigation fiends had a field day accusing radio stations of bias. Many radio stations avoided controversial subjects altogether in order to spare themselves a visit from FCC snoops. "
This he considers has all changed with additional radio stations and the arrival of satellite and cable and the Internet.
Against the arguments for in terms of the dominance of conservative hosts on the top five commercial stations owners he sets National Public Radio (NPR)which "strives to be fair and balanced but leans to the left" but has 20 million listeners against the 13.5 million for Limbaugh. [RNW comment: The terms used here are to anyone who knows a little history very much comparative and also misleading. NPR is certainly not left in the way the term would still be understood in much of the world nor in the US some 50 years ago and the use shows how the Republicans have perverted much of the language of discourse as in considering the "left" and "liberals" as synonymous - which is something that would have been vehemently disputed by many liberals and leftists.].
Of Durbin's arguments in terms of preferring that Americans hear both sides of the story, he responds, "This is all very high-minded. But should the state really be in the business of regulating what political views people are exposed to? Nobody thinks that readers of The Nation should be forced to read the National Review as well."
"Whatever its problems," he concludes, "America does not suffer from a shortage of opinion or debate. The magazine racks of bookstores groan with political magazines. The radio waves buzz with comment from the left-wing Pacifica Radio to the far-right nutcases. Every man and his dog has a blog. The idea that the government should be hauled in to regulate a fraction of this exploding universe is absurd. No wonder Congress has an even lower approval rating than Mr Bush.
[RNW note: The most recent Associated Press-Ipsos poll we have seen shows Bush's approval rate at 33% - the lowest ever for a President was that for President Harry Truman whose rating, because of the unpopularity of the Korean War, fell to 22% at one point: Congress in the same poll had a 24% approval rating. Other recent polls such as the USA Today/Gallup poll give both lower figures than this. Bus, of course has around a90% approval rating after 9/11, a figure we felt at the time judged from outside the country in discussions with various Americans was more one of emotion than rational judgement.].
The Fairness Doctrine also came under strong attack in the Baptist Press where Penna Dexter - a board of trustee member with the Southern Baptist Ethics & Religious Liberty Commission and a conservative activist - under the headline "Muzzling talk radio? " imagined various kinds of reaction to a re-introduction: "Perhaps a syndicated daily talk program co-hosted by Rush Limbaugh and Al Franken. Another interesting pair might be Laura Ingraham and Janeane Garofalo. ..Stations could provide 'balance' to Richard Land's radio programs by airing shows hosted by atheists like Richard Dawkins or Christopher Hitchens. Or maybe blandness would work: Bill Bennett's 'Muzak in the Morning' featuring home decorating and gardening tips."
Her view: "Our free market system allows the radio consumer to decide what interests him -- by turning the dial. Radio provides a public service, but it is a business. To stay afloat, it must draw listeners and advertisers. Conservative talk does this better -- much better -- than liberal talk."
"Right now," she continues, "talk radio is the liberals' target. It's the engine of the conservative movement, employing the constitutional tool of free speech to dig into the details of controversial issues. Radio is the perfect medium because it does not demand that busy and productive Americans drop what they're doing to absorb its message. It's interactive and populist. Opposing views get a hearing -- and often a point by point argument from the host. [RNW comment: This last could only have been written by someone very ignorant or bigoted…Just dip into a few postings by Limbaugh with an open mind about the issues - we have rarely seen opposing views get a full hearing, even on occasions when it seems to us Limbaugh has the better rational argument and fact on his side, so could afford to let callers have some rope.]
Dexter then moves on to the point that presumably really motivates her comments, writing, "Christian radio would be a major casualty. Rich Bott, president of the Bott Radio Network of Christian stations, says that a requirement to air both sides of controversial issues would present huge problems for religious broadcasters. He says the definition of 'controversial' has changed since the 1980s and that 'today it is considered to be 'controversial' if a person says it is best for children to have both a mother and a father.'"
"Under the Fairness Doctrine," she continues, "the biblical view of homosex