February 2008 Archive
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- January 2008
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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 January comment - Digital - What's the point? We consider digital and conclude that the best approach would be for the US to provide DAB/DRM spectrum and let the market decide whether HD dies or -preferably in our view - ends up a licence-free system thus providing incentives for development of a true worldwide analogue/digital receiver and expanding consumer choice everywhere..
RNW December comment - Ends the year with a the main issues for radio in 2007 - ownership, technological change, and regulation.
RNW November comment - As Don Imus prepares to return to air, we look at issues of getting booted, coming back, and staying on air!
2008-02-29: In more US radio results, Entravision and Saga Communications have each reported reduced revenues for the final quarter of 2007 compared to a year earlier.
For the quarter Entravision net revenue was down 2% to USD 62.5 million and for the year it also fell 2%, this time to USD 250 million whilst for Saga net operating revenue for the quarter was down 1.9% to USD 37.5 million but for the year it was up 0.75% to just under USD 143 million.
Entravision's figures for both periods were affected by the sale of the company's radio stations in Dallas in the final quarter of 2006 and pro-forma figures excluding Dallas showed revenues flat for the year but down 2% for the quarter.
Overall Entravision had a net loss of just under USD 48 million in the final quarter compared to net income of USD 21.4 million a year earlier (from a positive 20 cents per share applicable to common shareholders to a negative 49 cents); the figures include a USD 8.5 million impairment charge of outdoor intangible assets.
For the year Entravision moved from a 2006 loss of USD 134.6 million to a 2007 loss of USD 44.1 million (from USD 1.15 to 39 cents per share).
In divisional terms radio revenues for the final quarter were down 3% to USD 39.4 million and TV revenues were down 2% to 2% to USD 39.4 million whilst pro-forma radio revenues fell 0.9% to USD 23.1 million and TV pro-forma revenues were down 2% to USD 39.4 million and for the year pro-forma radio net revenue rose 3% to USD 93.7 million.
Commenting on the figures Chairman and CEO Walter Ulloa said, "During the fourth quarter we continued to execute our strategy and build our audience shares in a challenging environment. We faced difficult comps due to the absence of events that occurred in the prior year period, as well as continued softness in the advertising market. While our primary focus is on improving our operating performance, we have continued to review avenues to maximize our assets in the M&A market. The planned divestiture of our outdoor business and our pending acquisition of WNUE-FM in Orlando, reflect our strategy of building leading TV and radio clusters in the nation's fastest growing Hispanic markets. The proceeds of the Outdoor sale will expand our financial flexibility and strengthen our ability to implement our business plan as we review all options for putting our cash to work, including strategic acquisitions and potentially returning capital to shareholders. Looking ahead, we remain well-positioned to capitalize on the expanding purchasing power of the Hispanic consumer."
Entravision is forecasting first quarter net revenues this year to fall by low- to mid-single digit percentages and operating expenses to increase by low-single digit percentages compared to 2007.
Entravision also announced that during 2007 it had repurchased 7.2 million shares of Class A common stock for approximately USD 60.7 million of which 2.1 million were bought in the final quarter for around USD 15.5 million and that it had agreed a USD 100 million cash sale of its outdoor advertising operations - Vista Media - to Lamar Advertising Company. Vista's prime assets were some 10,600 advertising faces in New York and Los Angeles, the two largest advertising markets in the United States.
Ulloa said of the sale that it reflected Entravision's "commitment to unlock value for our shareholders and our focus on operating Spanish-language television and radio stations in the nation's fastest-growing and most densely populated U.S. Hispanic markets."
He added, "The proceeds will strengthen our ability to invest in our core television and radio businesses, and will improve our financial flexibility as we review all options for putting our cash to work, including strategic acquisitions and potentially returning capital to shareholders."
In a linked move the company announced that it has appointed Christopher T. Young, formerly CFO and then President of its outdoor unit, as Executive Vice President and Chief Financial Officer, from mid-April to replace John DeLorenzo, who is returning to the East Coast to pursue other interests.
At Saga, as already noted net operating revenue for the quarter was down 1.9% to USD 37.5 million but for the year it was up 0.75% to just under USD 143 million: The year's figures were affected by a significant decline in political advertising revenues - from USD 3.5 million in 2006 to USD 1.4 million in 2007. Excluding this fall, Saga said its net operating revenue was up 2.3%.
Station operating expenses rose by 1.8% for the year to USD 106.3 million and operating income was down 6.9% to USD 27.9 million and net income was down 11.6% to USD 11 million (from 61 cents to 55 cents per fully diluted share). On a same-station basis operating revenues were up 0.1% to USD 143.0 million; station operating expense increased 1.2% to USD 105.4 million whilst operating income decreased 8.1% to USD 27.7 million
For the quarter political advertising was down from USD 2.4 million in 2006 to USD 852,000 in 2007 -excluding this, net operating revenue was up 2.4% rather than down 1.9%; station operating expenses were down 0.9%; operating income was down 13.9% and net income was down 14.7% to USD 3.1 million (from 18cents to 16 cents per fully diluted share).
Previous Entravision:
Previous Saga:
Previous Ulloa:
2008-02-29: XM Satellite Radio Holdings Inc. has announced 2007 revenues up 22% to USD 1.1 billion with those for the final quarter up 20% to USD 308 million with met loss for the year and final quarter narrowing to USD 6.28 million from USD 7.31 million (From USD 2.70 to USD 2.22 per share) and to USD 2.39 million from USD 2.63 million (From 90 cents to 78 cents per share, the latter including 25 cents of merger and settlement related charges) respectively.
The increases were proportionately less than those for rival and putative partner Sirius, which earlier this week reported revenue for the year up 45% and subscriptions up 38% to end with 8.3 million subscribers (See RNW Feb 27).
XM said it ended the year with more than nine million subscribers, having added 1.4 million net new subscribers during the year but Subscriber Acquisition Costs were up - from USD 74 to USD 87 for the quarter and from USD 65 to USD 75 for the year with Cost per Gross Addition up from USD 128 to USD 140 for the quarter and from USD 108 to USD 121 for the year, compared to an SAC of USD 101 for the year and CPGA of USD 114 for Sirius.
XM noted that its "automotive partners increased production of XM-equipped vehicles by 64 percent over 2006, with 3.5 million installs and more than a million in the fourth quarter alone" and also highlighted its first deal to supply satellite radio to motorcyclists in a deal with Kawasaki.
President and CEO Nate Davis said of the results, "XM substantially improved its business operations in 2007 as we grew our subscriber base and revenues and narrowed our loss, positioning us as a stronger and more focused company better positioned to meet the competitive challenges of the future. XM has doubled its revenues in the last two years and our investment and robust performance in the new car market establishes a clear path for sustained future growth."
Regarding the merger with Sirius he commented that this would "benefit shareholders and offer consumers more programming choices and lower prices," adding, "We are pleased with the strong support our merger has received from a broad range of organizations, and we look forward to regulatory approval in the near future."
Previous Davis:
Previous Sirius:
Previous XM:
2008-02-29: Following the decision by GCap Media to axe its digital national station theJazz as part of a cutback in its commitment to digital broadcasting (See RNW Feb 11), GMG Radio is planning to launch its Jazz FM brand on digital radio in London and the north-west.
GMG switched its original Jazz FM analogue station in London to a Smooth FM format in 2005 but retained it as an Internet-only station and GMG Radio chief executive John Myers told the UK Guardian, which is owned by the same parent, "DAB has come a long way in recent years and we are confident that Jazz FM has a promising future on a digital platform."
GMG added that it regarded Jazz FMm as a " niche listen and with the demise of theJazz, this is an opportunity to provide listeners with their own jazz station 24 hours a day, rather than have it squeezed into the Smooth Radio output through the night."
In other UK digital radio news, PURE has become the first company to gain endorsement from the Energy Saving Trust for a DAB receiver: These consumer more power than analogue models and the endorsement went to its PURE Move palm-size DAB and FM receiver, which consumes less than a watt when in standby and 3.5 watts when in use.
The model is part of PURE's EcoPlus range, a series that currently has fifteen products with reduced power consumption amongst other features such as components selected to minimise their environmental impact.
Previous GCap Media:
Previous GMG Radio:
Previous Myers:
Previous PURE:
UK Guardian report:
2008-02-29: Clear Channel has announced that it is extending its agreement with Ryan Seacrest and under a new multi-platform deal starting this spring will be syndicating a three-hour syndicated program, "On Air with Ryan Seacrest" which will be broadcast live from E! Studios in Hollywood.
The company says the broadcast will focus on all aspects of the entertainment industry, highlighting top talent from the worlds of music, film and television, and that together with the host they will develop original content for the program for national and international distribution across audio, video and online platforms.
Ryan Seacrest Productions will control all content and Seacrest will also control some of the advertising. In addition the RyanSeacrest.com site is to be re-launched and tied into the new programme.
Seacrest has also renewed his deals to continue as host of "American Top 40 with Ryan Seacrest", which is nationally syndicated by Premiere Radio Networks, and "On Air with Ryan Seacrest", his daily show on Clear Channel Radio's KIIS-FM in Los Angeles.
Previous Clear Channel:
Previous Premiere::
2008-02-28:Westwood One has announced that former White House Press Secretary Tony Snow, whose "Tony Snow Show" ran on Fox News Radio from late 2003 until he became White House Press Secretary in April 2006, is to be the regular guest host of The Radio Factor with Bill O'Reilly. In addition to filling in for O'Reilly, Snow will also make guest hosting appearances on other Westwood One programs.
The host stepped down from his White House Post, to take which he had accepted a large cut in his income, after being diagnosed with colon cancer, saying that light of his cancer he needed more than his USD 168,000 salary to provide for his family.
Snow said of the appointment in a release, "I'm really excited about joining the Westwood One team. We're in the middle of the most exciting and surprising political year in decades, and there's no better place to plunge into the issues and personalities than on talk radio. I'm especially delighted to be joining The Radio Factor. Bill O'Reilly has put together a terrific show with a big and informed audience. If you're a political junkie -- and I am -- it just doesn't get any better."
Bart Tessler, Senior Vice President of News and Talk for Westwood One, added, "In this amazing political year, I'm thrilled we can add Tony's perspective to the Radio Factor franchise Bill O'Reilly has created. His experience in the White House and as a long-time writer and broadcaster will add great insight for the listeners of the Radio Factor and other Westwood One programs."
Previous O'Reilly:
Previous Westwood One:
2008-02-28: A consortium including PR executive Gordon Beattie, John Quinn, who owns 15% of Bauer Radio's Falkirk-based Central FM, and Adam Findlay, son of SMG chairman and former Scottish Radio Holdings Chief Executive Richard Findlay, has placed a bid for the three Xfm stations being sold by GCap Media.
No details were given of the bid and it was not clear what other bids had been made for the station by the Wednesday noontime deadline that had been set by GCap when it announced the planned sale as part of a cost-cutting exercise.
GCap chief executive Fru Hazlitt has said she will hand the licences of the loss-making trio of stations unless they are sold by March 28 but the sale plans could potentially be reversed if Global Radio launches a new bid for GCap, as has been reported (See RNW Feb 25): It has been given until March 5 to make an offer or pull out of bidding for GCap (See RNW Feb 1).
Previous GCap Media:
Previous Global Radio:
Previous Hazlitt:
The Scotsman report:
2008-02-28: Long-time Rochester host Brother Wease (Real name Alan Levin) who was taken off air by Entercom's WCMF-FM when his contract ended without agreement on a new one (See RNW Feb 8) has joined Clear Channel's WFXF-FM to host a new morning show.
The Rochester Democrat and Chronicle says that initially Wease will be in sales where he began with WCMF three decades ago because of a non-compete clause in his Entercom contract. It adds that Wease said he does not know how long it will be before he can return to the local airwaves although he expects it to be within a year.
He commented of his move, "Same show as the last show, except different people and is to build his new team while waiting. The paper says he'll be hiring a producer, comedian and female co-host.
Until Wease is able to return to the air WFXF's morning show will continue to be hosted by JP Hastings. He is expected to move to another day slot when Wease takes over the morning show.
Previous Clear Channel:
Previous Entercom:
Rochester Democrat and Chronicle report:
2008-02-28: A survey by the Canadian Radio-television and Telecommunications Commission (CRTC) shows that the amount of music by emerging artists played on French-language stations is approximately twice the amount played by English-language stations, regardless of the definition of "emerging artists" used.
Information was gathered using nine different definitions but for charts in its report the agency has used a Top 40, less than one year" definition that it says appears to have the most advantages since current and historical chart information is relatively easy for all to obtain; some of the relevant charts combine airplay and sales data, two important measures of popularity; and the "Top 40, less than one year" definition may strike an appropriate balance between ensuring name recognition on the part of radio listeners and music consumers and the exposure of an ever-renewing roster of emerging talent.
It is asking for comments on adoption of this definition using which Alternative / Modern Rock; chart; and rhythmic chart English-language stations play most music from emerging artists. Because some formats have been taken off air, it gives no comparative date for French-language stations.
Previous CRTC:
2008-02-28: Reba McEntire, who has won 11 ACM awards, is to host this year's Academy of Country Music Awards for the tenth consecutive year. The ceremony will be held in Las Vegas on May 18 with ACM nominees to be announced on March 4 at the Country Music Hall of Fame and Museum in Nashville by Brad Paisley and Carrie Underwood.
2008-02-27: In more US results CBS has reported what Executive Chairman Sumner Redstone "another solid quarter while making significant strides in the expanding interactive marketplace" although overall final quarter revenues were down 3% to USD 3.76 billion - it noted that divestitures, the non-renewal of several marginally profitable outdoor transit contracts, and record political advertising sales in the fourth quarter of 2006 negatively impacted the fourth quarter revenue comparison by 4% - and radio revenues were down 10%.
Also reporting was Sirius Satellite Radio, which reported a positive free cash flow for the fourth quarter and for the second half of 2007 with 2007 revenues up 45% year-on-year; a total of 8,321,785 subscribers, up 38%; and a net loss of USD 565.3 million, nearly halving the previous year's loss of USD 1.1 billion (from 79 cents to 39 per share).
In addition Arbitron updated its forecast for this year following the decision in conjunction with The Nielsen Company to end the Project Apollo national research service (See RNW Feb 25), which in 2007 carried associated costs of USD 6.9 million.
It says it still expects revenues for the full year, as per guidance earlier this month (See RNW Feb 15), to increase between 8% and 10% excluding figures for Continental Research, which was sold in January 2008 but that earnings per share will now be between USD 1.30 and USD 1.44 per share rather than the earlier forecast of USD 1.42 and USD 1.56 which it said at the time did not include expenditure incurred in commercializing or closing down the project.
At CBS, fourth quarter revenues as already noted were down 3% to USD 3.76 billion whilst full year revenues were down 2% to USD 14.07 million with the same reasons being given for the decline.
CBS said net earnings from continuing operations were up - adjusted to exclude the write- down of investments, and the impact of station divestitures and favourable tax settlements - by 3% for the full year to USD 1.36 billion but in the final quarter they fell 10.7% to USD 366.7 million, reflecting said the company a higher effective income tax rate of 35.3% for 2007 versus 28.6% for 2006.
Operating income before depreciation and amortization ("OIBDA") for the quarter was up 4% to USD 824 million whilst for the year it was up 1% to USD 3.08 billion.
Net earnings were down by 14.6% for the quarter to USD 286.2 millions (from 43 to 42 cents per diluted share) whilst for the year they fell 24.9% to USD 1.247 billion (from USD 2.15 to USD 1.73 per diluted share).
Redstone said the company had "remained steadfast in delivering on its promises and returning significant value to investors. Leslie [President & CEO Leslie Moonves] and his team continue to lead the Company with distinction, capitalizing upon our strength today and positioning CBS for success in the months and years to come."
Moonves commented that CBS finished 2007 "with our businesses well poised to increase revenues and profits in 2008 and beyond."
In divisional terms only Outdoor showed a revenue increase for the year - up 4 % to USD 2.187 billion- and quarter - up 7% to USD 618.6 million. It was followed by Publishing - up 10% for the year to USD 886.1 million but down 4% for the quarter to USD 242.3 million; TV - down 2% for the year to USD 9.274 billion and down 4% for the quarter to USD 2.46 billion whilst radio was down 11% for the year to USD 1.754 billion and down 10% for the quarter to USD 447.1 million.
Within the radio figures, same station revenues fell 7% for the final quarter with radio OIBDA down 21% to USD 167.4 million and radio operating income down 22% to USD 159.6 million, reflecting CBS said weakness in advertising sales and the impact of the radio station divestitures in ten markets.
Full year radio revenues were down 6% on a same station basis and reported radio revenues fell 11% to USD 1.75 billion.
CBS says it expects operating income this year to be up3% to 5% on 007.
At Sirius, revenue for the year was up 45% to USD 922 million and it ended with 8.324 million subscribers, up 38% year-on-year and not far short of the estimated 9 million of rival - and possibly soon-to-be partner XM. Revenue in the final quarter was up 29.2% year-on-year at USD 249.8 million and its adjusted loss from operations for the quarter was down from USD 166.8 million to USD 107.2 million whilst for the year its adjusted loss from operations was down from USD 327.4 million to USD 185.7 million.
Overall it had a net loss of USD 166.2 million in the quarter down from USD 245.6 million a year earlier (Down from 17 cents to 11 cents per share) whilst for the full year net loss was down from USD 1.1 billion to USD 565.3 million ( from 79 cents to 39 cents per share as already noted).
Sirius said that in the final quarter it added 654,000 net subscribers, and, according to the NPD Group, SIRIUS achieved a 68% share of aftermarket satellite radio sales, its highest ever share.
Subscriber Acquisition Cost (SAC) per gross subscriber addition was USD 101 for 2007 improving 11% over 2006's SAC per gross subscriber addition of USD 114. In the fourth quarter 2007, SAC per gross subscriber addition was USD 90.
CEO Mel Karmazin said that in 2007 the company "achieved our financial goals and solidified our position as one of the fastest growing media companies in the world" adding, "Sirius demonstrated positive operating leverage in the business through solid cost control by limiting growth in total expenses, excluding non-cash items, to under 9% for the year. Sirius achieved positive free cash flow for the second half of the year and $75.9 million in positive free cash flow for the fourth quarter 2007."
Regarding the "pending merger" with XM, he said this would offer unprecedented choice for consumers and create tremendous value for stockholders." And added , "We have made a very strong case for the merger to the government, received broad support from leading organizations and prominent individuals, and we look forward to a fast positive ruling from the government."
RNW comment: That last line, considering that the merger has been awaiting regulatory approval for a year, does rather take the biscuit, We also noted that in his comments to analysts Karmazin spoke of increasing advertising revenue to around 10% of the total: Before that line we were edging away from our original feeling that the merger should be rejected albeit it was a close call. That line makes us think that given a satellite monopoly - and thus the opportunity to increase advertising that is currently limited by the XM competition, the merger probably should be rejected. If it is, it would be pleasing to see this spelled out as a prime reason and observe Karmazin ad-sales pitch hitting his own pocket.
In other ways the competition from other audio sources does support the satellite companies' contention that they do not have monopolistic power but as regards a subscriber rather than advertising funded service satellite radio has much more of a monopolistic position.
Previous Arbitron:
Previous CBS:
Previous Karmazin:
Previous Moonves:
Previous Redstone:
Previous Sirius:
2008-02-26: UK media regulator Ofcom has upheld one fairness and privacy complaint each against radio and partly upheld one against TV in its latest bulletin in which it also considered two radio standards complaints resolved through action taken by the broadcaster; upheld TV standards complaints against four broadcasters, considered a further TV standards case resolved through action already taken by the broadcaster and gave details of two TV fairness and privacy complaints not upheld.
The figures compare with two radio standards complaints and complaints against six TV programmes upheld in its previous bulletin, partly upheld a TV Fairness and Privacy complaint and posted details of five fairness and privacy complaints that were not upheld.
The radio complaint upheld in the latest bulletin involved an April 26 broadcast of The James Whale Show by talkSPORT in which the full e-mail address of the complainant was read out live on air. Whale had read out two emails from the complainant, who was critical of the programme's content - he said, "One of the downsides of commercial radio is the amount of adverts - in the case of this show they are the highlight" - and in a later e-mail that was read out had said , "I dare you to read out one of my emails - my guess is that your ego will not allow it" to which Whale had responded after reading out the e-mail by saying, Well, there you go".
The complainant said that talkSPORT's website privacy policy assured him that his personal details would be treated confidentially but in this case Whale, read out his
full email address live on air and encouraged listeners to misuse his email address although he regarded the address as confidential and had not given permission for the host to give out the details.
Ofcom ruled that the complainant had a legitimate expectation of privacy in relation to the disclosure of his email address in the programme; that its disclosure infringed his privacy in it was sufficient to render him identifiable to an audience who would not have otherwise been aware who the person referred to in the programme was and that the disclosure was unwarranted. It noted that the broadcaster had not sought to argue that the disclosure was warranted.
The radio standards complaints there were considered resolved related to a BBC Radio 2 programme and one on Tindle Radio's Colchester commercial station Dream 100 FM. The latter complaint related to a listener who had sent a text - to a premium rate number- but who looked at the studio webcam on the station's site and saw that there was nobody in the studio. He said it appeared that listeners had been invited to text in when there was no chance of having requests played or being mentioned on air.
The broadcaster said the number promoted was often used by the station and that the host's reference to having just received a text, and the dedication that followed, was recycled material from his live drivetime show on the previous afternoon.
This, it admitted could lead listeners to believe they could interact with the programme when in fact it was pre-recorded. It apologized and said its presenters had been told that they were not
to give dedications or promote the station's text number during 'automated' programming adding that it was disappointed that the presenter in this case - who had recorded his voice-tracks the previous afternoon - had been "in auto-pilot mode and did not go back and correct the error…
It had conducted a disciplinary investigation with the host, who had also been the station's Programme Manager and had since left Tindle Radio. Ofcom considered the action taken had satisfactorily resolved the matter in this instance.
In the BBC case, on her early morning show the presenter Sarah Kennedy talked about an appeal that had recently been launched to help ensure children were safer on their journey to and from school during the dark winter months by wearing high visibility clothing. The line of discussion was elaborated on further by the presenter, who said she had almost run over a black pedestrian as his dark clothes made him 'invisible'.
She continued by adding "it's lucky he opened his mouth to yawn or do something and I saw him".
This attracted a complaint to which the BBC responded by saying there had been no intention to cause racial offence and said that "Such off-the-cuff anecdotes and observations are typical of Ms Kennedy's style. She has a reputation for straight talking and that is part of the reason why she has a large and loyal group of listeners."
The Corporation accepted that this comment was inappropriate and added that with hindsight it felt an apology should have been broadcast. It regretted this had not been done at the time and said it did consider broadcasting an apology in a later programme but this idea had been rejected through concern that this may have had the effect of "perpetuating the original offence". Instead, Radio 2 issued a public apology by means of a press release, which was subsequently reported in the national press.
Ofcom considered that the matter had been resolved through this action.
In addition to the above Ofcom also listed without details 249 TV complaints against 168 items and 29 radio complaints against 26 items that it did not uphold or were considered out of its remit: This compares with 72 complaints against 53 TV items and six radio complaints against six items that were out of its remit or not upheld in the previous bulletin.
Previous Ofcom:
Previous Ofcom Complaints Bulletin:
2008-02-26: This week we devote out look at comment on radio purely to the US where the chorus of voices expressing concern about the medium was strong.
Art Vuolo in Michiguide heads his column "Today's radio failing to 'reignite passion'" and starts off by noting that he and Mike Austerman "have been somewhat critical of the radio industry and what has happened to 'the good ol' days.'"
He continues, "We have quoted a number of other columnists and former programmers who have spoken the truth about the business, but most of the people running stations these days simply don't want to hear it… People like Jerry Del Colliano and John Gorman are thought to be eccentric prophets of doom who are burning bridges and alienating today's broadcasters. Not so. Gorman, who tried, with limited means, to make WKRK-FM a successful rock station after years at Cleveland's legendary WMMS, said the radio business needs to remember the three little words, originally delivered in a keynote by National Association of Broadcasters' president David Rehr: "Reignite the passion." But he adds a fourth: How?"
Vuolo quotes from Gorman's blog - we include a slightly longer section: "You will not reignite anything by gutting established morning shows. You will not do it with voice-tracking in dayparts when most people listen - and interact.
"You will not reignite passion by having managers and programmers accountable for multiple stations and, in some cases, multiple markets.
"Reignite the passion? Here's the problem. Only losers say that.
"New media gets a chuckle out of our predicament, because radio's a laughingstock, more so now than ever after the combination of the HD Radio Alliance and the NAB's bungling Radio 2020 campaign, which will do absolutely nothing for no one.
We used to have programmers and managers that were hired for their specific knowledge of certain formats. Today, the business calls for a - pardon the name - Jack of all formats and master of none."
In another segment Gorman was in more positive mood about radio - but not US commercial radio, writing, "Sunday's New York Times mentioned the 30 million-plus daily listeners of National Public Radio's Morning Edition news program. In 1980 they had an audience of just 2 million. It also pointed out that Morning Edition and its afternoon news counterpart, All Things Considered, are the second and fourth most listened to radio programs in the country…Radio? Dead? Hardly."
But then of the commercial variety he added, after noting Haley's comments, "I hate to say it. Most I know aren't listening to radio - other than NPR and sports. They get everything else on-line.
"Those I know that Podcast use it to time-shift NPR programming that may not be on at a time when one can or wants to listen.
"It's safe to say that no one's interested in a podcast of a midday voice-tracker."
After that point Gorman makes another less obvious one but one we suspect has far too much truth in it for the comfort of stockholders in US radio companies: "The average household has four radios. Almost all cars have a radio. That doesn't mean they're being listen to. If radio underperforms, listeners go elsewhere.
"Let's create the perfect world scenario where every man, woman, and child in the U.S. had portable access to terrestrial radio. Add access to those HD Radio side channels, too.
"I'll even take it one step further - let's say all of those HD Radio side channels had - don't laugh - compelling programming, too.
"The result? It would kill commercial radio. The audience would be spread too thin among too many stations."
Need we go on, beyond the single sentence: "The real dilemma facing the industry is that there are too many radio stations."
Although he made no comment in terms of station numbers, departing Washington WJFK-FM host -he leaves at the end of May after some 23 years with the show - Don Geronimo echoed some of the comments made by Vuolo, Gorman, Austerman and others in a Washington Post report by Marc Fisher that first looked at the host's career and some of the antics of the "Don and Mike (O'Meara) Show" that would be unlikely to get near the airwaves in today's rather more puritanical atmosphere (our words not his) including "taking a busload of listeners to Intercourse, Pennsylvania., to have sex in motel rooms while the hosts narrated the event on the air."
"This is certainly not the climate for something like that," Geronimo says now and complains, "We're not even allowed to say the word 'masturbate' "although he says the show is better now than at any point in the past two decades.
Geronimo, real name Michael Sorce, was a Top 40 DJ through his teens and 20s, and he was less complimentary about music radio, commenting, "I don't listen to radio now. I listen to XM [satellite radio]. The disc jockeys are real and I love the presentation" and adding of FM stations, "What they're mainly missing is fun. When I listen to a station like Hot 99.5, I could be listening to something in Columbus, Ohio, or San Francisco. It's the same voices, the same 25 records. Let the DJ connect with people and there'll still be an audience."
Fisher doesn't comment on why the records are the same but in an article in The Oregonian headed "Radio Daze - Portland Talking Heads Get Beheaded" Peter Ames Carlin gives the reason, albeit in a different context … "Chalk it up to industry-wide cutbacks, due largely to disappointing profits among the media conglomerates that have come to own virtually all of the nation's major radio stations."
He also points up the response that so often comes from station's afterward - PR guff or, in ordinary language, lies in many cases. In the case of long-time KINK-FM morning news anchor, Rebecca Webb, writes Carlin, "Ratings for the show she shared with disc jockey Les Sarnoff have continued to be strong throughout her most recent tenure."
Webb commented that she had been involved in run-ins with program director Dennis Constantine about her choice of news stories, and particularly her resistance to lifestyle and entertainment stories…"On February 6, the day before I got canned, I was reprimanded for not talking more about 'American Idol,'" she wrote in an email on Friday. "I was more focused on Super Tuesday."
Webb, who had been working without a contract after her previous deal expired in September, says then-station manager Stan Mak offered her a new two-year contract, complete with a raise. Webb says she countered by saying she didn't need a larger salary - instead, she wanted the new contract to guarantee that some of her longstanding beefs with the station, including an elusive workstation, would finally materialize.
"I decided to make it part of my contract. I gave them a list, and I thought we were making progress on it," she said.
Mak left the station in October and was replaced by Dave McDonald, a CBS Radio manager who was returning to Portland after a three-year stint in Seattle and no deal was done. He commented, "It's accurate to say she was at the end of her contract. We did have discussions (about a new contract) but we didn't do a new deal. There's no big drama, as far as I'm concerned."
The show continued with Sarnoff and another news reader but according to Carlin listener outcry drove him into comment and he released a statement asserting that she was headed to graduate school. This apparently is partly true as Webb is studying for her admissions test but at a deeper level it would appear to be a lie, for whatever reason it was said.
Carlin comments of the manner of the beheadings, "When the axe falls on an on-air personality it happens suddenly, and with no advance notice. There's no time for goodbyes on the air" but does not follow through on what action listeners can take.
RNW comment: If Gorman's correct, increasing numbers are switching to NPR and that may be a very positive move in that a serious plummeting of commercial audiences and thus stock values might just force some positive action. If not, all power to the satellite companies and the Internet.
On then to listening suggestions and as usual - with the exception of some NPR programmes such as "On the Media" to which we listen regularly, we find little in most US station output to attract an English ear. But then we don't care about American Idol nor much of the froth that, judging by the music stations we find the car radio tuned to after use by sons and daughter, British commercial stations seem to feel will attract their target audience - aka younger mugs with more money than sense.
So to more serious channels albeit in passing for a more positive view on radio we would suggest a dip any Tuesday into the UK Daily Telegraph for Gillian Reynold's radio column: Those suggestions do include music, if not today's pop in most cases (the inane comments of most of the DJs are a turn-off rather than turn-on).
In the music category we suggest BBC Radio 2 and the current Mark Lamarr Saturday evening "Redneck Music" series (The second part from last Saturday is currently on the site) and Thursday's "Leonard Cohen … On Songwriting" (23:00 GMT(, the second of a three-part series on the song writing world (The first part is on the site until then).
Then from BBC Radio 3, we suggest this week's "Composer of the Week" on "William Alwyn" (Noon GMT with a 20:45 GMT retreat) - best known for his film scores rather than concert works - and the "Lunchtime Concert" from Tuesday onwards (13:00 GMT) - this week it features performances from series of concerts given at St George's Hall in Liverpool last autumn to mark the city's 800th anniversary: They feature young artists performing British and American repertoire, reflecting Liverpool's position as a gateway to the New World.
Also from Radio 3, on Tuesday we suggest "Night Waves" (21:45 GMT) in which one item features Rana Mitter talking to Joseph Stiglitz, winner of the Nobel Prize for Economics and author of a controversial book, "The True Cost of the War in Iraq" that argues that the conflict has done significant damage to both the US and global economies. Another Night Waves worth a listen this week is that on Thursday which features a discussion on social and cultural issues facing Britain's Jewish community as the annual Jewish Book Week takes place.
Then on Friday evening we suggest "Jazz on 3" at 23:30 GMT in which Jez Nelson presents a gig from pianist Myra Melford's group Spindrift, featuring Brandon Ross on guitar, Mark Taylor on French horn and Shuni Tzou on the dizi (Chinese flute).
And as a final selection from the Channel we suggest Saturday and "Music Matters" (12:15 GMT in which Tom Service investigates the links between music and health and looks at reports on how music can change the lives of people with conditions ranging from schizophrenia to Alzheimer's) and "Hear And Now - Improvisation in Modern Classical Music" (23:30 GMT with Alywnne Pritchard exploring the world of improvisation and its role in contemporary classical music, in a discussion with composer Richard Barrett and writer John L Walters.).
Moving on to BBC Radio 4, we start with "Start the Week" from Monday - another programme featuring Stiglitz, this time with host Andrew Marr and another author, Jacob Weisberg whose "The Bush Tragedy: The Unmaking of a President" is also just out.
We'd also suggest from earlier three programmes that like "Start the Week" are available as MP3 downloads or streams - last week's "Analysis"- "Jackanory Politics" in which Frances Stonor examines the increasingly popular method of delivering a political message by telling a story - interesting not just on the preference of humans for stories rather than facts (an also for a combination of innumeracy and lack of thought displayed by most people when it comes to probabilities); last Friday's "News Quiz" and Thursday's "From our Own Correspondent" with items on Cuba, Pakistan and Uganda. All of them are available as MP3s or streams.
We'd also suggest last Saturday's "Archive Hour" - "Putting It Simply" in which Kathy Sykes looks at the science has been seen and heard on radio and television and Sunday's "The Westminster Hour" (Streams only).
From the weekdays we'd suggest "Cleaning out the Camp" from Monday in which Eddie Mair examined the policies and attitudes of Britain's armed forces towards homosexuality - a laissez-faire attitude during the Second World War when circumstances were desperate but hostile later, despite an easing of attitudes amongst society as a whole.
The in the afternoons the "Afternoon Readings" (15:30 GMT) this week are stories from the Bath Festival: They're followed by "Mine All Mine" in which Chris Ledgard looks at the different attitudes of those who want to defend intellectual property and those who think that often by sharing the world could do better than with patents and copyright.
After that back to music and this week's "Music Feature" - "The King Of Light Music" on Tuesday (13:30 GMT) looking at the career of Eric Coates, whol like Alwyn is better known for his film and theme tune work than his other compositions.
Then we suggest "In our Time" (09:00 GMT live - after which it is an MP3 or a stream) from Thursday " on the topic of Shakespeare's "King Lear" and on Friday (11:00 GMT) we suggest "A Race Apart" in which Sarfraz Manzoor talks to American students from two different universities who have opted for a racially segregated education, whether black or white.
Finally back to literature and next Saturday with "Macbeth Remixed" (05:45 GMT), a series comparing the known historical facts about Macbeth with Shakespeare's dramatisation and "Please Look After This Bear" (10:30 GMT) in which Michael Morpurgo celebrates the fiftieth anniversary of Paddington Bear plus Sunday's "Archive Hour -The Larkin Tapes" in which Paul Farley tells the story of two tapes by poet Philip Larkin, recorded by BBC sound engineer John Weeks, which remained hidden on a cluttered shelf in a garage for 25 years.
RNW Note: Having been delayed, we have not yet gone through our notes on other MP3s. We will update later after posting other stories from today.
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2008-02-25: The US National Association of Broadcasters (NAB), pursuing its opposition to the introduction in the US of recording royalty payments for terrestrial broadcasters, has attacked member companies of the Recording Industries Association of America (RIAA) with its Executive Vice President Dennis Wharton saying it welcomed debate "over which side has been more 'fair' to artists -- radio stations or RIAA-member companies."
The NAB says that its comment was made as a result of learning that the RIAA "will parade a handful of artists through Congress this week in support of legislation that would result in as much as a USD 7 billion annual tax on local radio stations."
Wharton added, "America's hometown radio stations expose and promote musicians to 232 million listeners every week. Contrast that with decades-long exploitation of artists by foreign-owned record labels, demonstrated just this month in a USD 6 million lawsuit against Universal Music Group for 'cheating' artists like Count Basie and Benny Goodman out of royalties."
The musicFIRST (Fairness in Radio Starting Today) Coalition had prompted NAB's response by a news release headed "Three Days, Three Performance Right Questions" and an advert in RollCall.
The three days of the news release were timed to coincide with what it terms the broadcasting industry's "three-day lobbyfest in Washington this week" in which it said "Big radio's number one priority is to defeat legislation to create a fair performance right on radio for recording artists, musicians and record labels."
Doyle Bartlett, executive director of the musicFIRST Coalition commented, "It's time for the NAB and corporate radio to answer the tough questions about their refusal to pay artists and musicians. AM and FM music radio stations earn USD 16 billion each year in advertising revenue. But not a single penny goes to the artists and musicians whose creativity, whose heart, whose soul and whose passion brings to life the music that listeners tune in to hear."
He went on to pose three of the "many questions that the NAB and corporate radio lobbyists can not possibly answer with a clear conscious (RNW note: He presumable meant "conscience" but like NAB finds the word such anathema and in his case couldn't put it down correctly.]
These were to justify their revenues without compensating the owners of "intellectual property" for their contribution; to justify a competitive advantage against others "in the music marketplace"; and state which of its leaders was correct - NAB President David Rehr who terms the proposed payments a "performance tax" of BAN Radio Board chairman and Withers Broadcasting Group president W. Russell Withers Jr. who in a Senate Commerce Committee hearing disagreed with the term "tax" and said it was a "performance fee."
The advert in RollCall shows a busker above whom is the caption "HE JUST MADE MORE MONEY THAN ANY RECORDING ARTIST ON THE RADIO" and then continuing, "When your favourite artist's song blares over the radio waves, they're not receiving a single penny. Radio stations broadcast musical performances for free, neglecting the many talented artists, musicians, producers, and background singers behind every song. While broadcasters use songs to gain ratings and charge top dollar to advertisers, they refuse to pay even pocket change to the people who bring music to life on the radio. Only Congress can close the corporate radio loophole."
RNW comment: To us this is very much a case of pot and kettle. Arguments put forward by the NAB in our view should never be taken as face value and are usually misleading at best and dishonest at worst.
In this case we think that, as in the rest of the world, there is no logical justification for exempting terrestrial stations from royalty payments - these are not taxes, whatever dishonest propaganda the NAB puts out - that are levied on all others but there is a good case for debate over the level of fees, and, as we have commented in the past, the idea of setting up a tier of royalty charges (See RNW Comment March 2007) that would bring some market discipline to the whole process with artists who try to get too greedy finding themselves without airplay (and thus we suspect with considerably lowered in income) and allowing upcoming artists to increase their exposure by levying no royalty charges.
Previous NAB:
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2008-02-25: In further GCap Media business developments, the Sunday Express has reported that Global Radio is set to make an increased bid for GCap, possibly as early as this week.
The paper did not give a source for its report which said that Global, which has until March 5 to make an offer or pull out of bidding for GCap (See RNW Feb 1) is to increase its offer from GBP 313 million (currently USD 616 million) to GBP 350 million (USD 688 million ).
In other GCap business, The Scotsman reports that Scottish tycoons Gordon Beattie and John Quinn are in talks to acquire the three Xfm regional radio stations - in Glasgow, Manchester and Cardiff - put up for sale by GCap (See RNW Feb 11).
The paper says the two, who are said to have lined up a financing package with a Scottish Bank, are likely to face competition from Bauer, which could incorporate them and possibly its Kerrang! stations into its Q radio brand.
It quoted Beattie - who owns public relations agency Beattie Communications, has interests in radio, while Quinn is a 15% shareholder in Falkirk-based Central FM and tried unsuccessfully to acquire the 20% stake held by Emap- as saying, "We are taking a look at it and we'll make up our minds in the next week if we are going to bid" and Quinn as adding, "We are pretty keen. We have an appetite and we've taken advice. I wouldn't like to go through all this and be a loser."
Also with GCap, former Piccadilly Radio /Key 103, Capital Radio, and Virgin Radio host Steve Penk has ended his stint with its Oxford station Fox FM.
He was due to leave in March but broadcast his last show on Friday and the station already lists Neil Williams as its new breakfast host. Penk was said earlier in the year to be finding the daily commute to Oxford a problem and to have turned down another 12-month contract.
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2008-02-25: Westwood One, Inc. has announced an agreement under which Los Angeles-based private equity firm The Gores Group, LLC will invest up to USD 100 million in it, subject to various conditions including the closing of pending agreements between Westwood One and CBS Radio Inc. - Westwood One's shareholders approved the agreement earlier this month but the closure is subject to other conditions including a determination by the its Board of Directors that the Company has sufficient financing to conduct its business operations in compliance with its legal and financial obligations after the closing (See RNW Feb 14) -and approval by Westwood's shareholders
Under the agreement, Gores will purchase USD 12.5 million of Westwood One common stock at a price of USD 1.75 per share, a purchase that is anticipated to close concurrent with the closing of the CBS agreements, In addition, at Westwood One's option, Gores also will purchase up to an additional USD 12.5 million of common stock at USD 1.75 per share and between USD 50.0 and USD 75.0 million of 7.5% Series A Convertible Preferred Stock ("Convertible Preferred Stock") with an initial conversion price of USD 3.00 per share and Warrants (issued in three tranches) to purchase up to 10 million shares of Westwood One common stock, such Warrants to be exercisable at USD 5.00/share, USD 6.00/share and USD 7.00/share, respectively .
On top of this, 18 months from the date of issuance, Westwood One may cause the conversion of the Convertible Preferred Stock if the per share closing price of the Westwood One common stock equals or exceeds USD 4.00 for 60 trading days in any 90 day trading period or Westwood One sells USD 50.0 million or more of common stock to a third party at a price per share of at least USD 4.00. The Convertible Preferred Stock will be redeemable at Westwood One's option after 57 months from the date of issuance. Any common stock issued to Gores in connection with the Securities will have registration rights.
Upon the closing of the Convertible Preferred Stock and Warrant investment, the Westwood One Board of Directors will increase to eleven members of which three will be elected by Gores and Gores will also have the right to nominate an independent director.
Westwood One President and CEO Thomas Beusse said the investment was "a key element of our strategic process to enhance shareholder value and an important component in satisfying the conditions to closing our proposed agreements with CBS Radio", adding that it represented "a significant vote of confidence in the future of our business" and together with the CBS deal "enables us to position an independent Westwood One for future growth and success."
Westwood chairman Norman J. Pattiz added that the investment brought with it "Alec Gores' and his team's considerable operational resources and provides the Company with significant resources to once again focus on the production of quality original programming for our current and emerging media platforms."
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2008-02-25: A total of 70 people were prosecuted in the UK in the 2006/07 year for communications-related offences, 61 of them for illegal broadcasting, according to UK media regulator Ofcom: The other prosecutions related to Citizens Band Radio (1 prosecution); EMC (Electromagnatic Compatibility - 5 prosecutions); RTTE (The Radio Equipment and Telecommunications Terminal Equipment Regulations 2000 - CE marking or manufacturing standards - 5 prosecution); and one "other" categories (For sending a hoax message) with convictions secured in all cases.
In relation to illegal broadcasting fines totalling GBP 6,845 (USD 13,470) plus costs totalling GBP 20,889 (USD 41,100) were imposed with forfeiture orders made in 42 cases, conditional discharges issued in 31 cases and an absolute discharge in one case: There were also a total of ten official cautions and 31 warning letters sent with six disclaimers.
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2008-02-25: Arbitron and The Nielsen Company have announced that they are ending development of their "Project Apollo" national research service on which they have been working for some three years.
In a joint statement the two companies said that "Despite a promising level of interest, we did not secure sufficient client commitments to make Project Apollo a sustainable venture for our two companies" and expressed gratitude to those involved including companies, consultants and to the marketing and advertising agency executives of the seven Project Apollo Steering Committee members who helped them "explore the cutting edge of media and marketing research."
Nielsen executive vice president Susan D. Whiting said they had "learned a great deal from 'Project Apollo' "and added, "I am confident that this work will enable us to provide even higher levels of quality service to our clients."
Arbitron chairman, president and chief executive officer Stephen Morris added, "Everyone recognized from the outset what an ambitious effort we were undertaking: harness the best in modern research technology and methodology to see if we could finally fulfil the promise of a single-source media and marketing research service."
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2008-02-25: The Telecom Regulatory Authority of India (TRAI) has recommended to the government an easing of regulations on private FMs to allow them to carry news, permit ownership of multiple channels in a market and possibly increase the area to which a station broadcasts, and also allow an increase from 20% to 26% in the Foreign Direct Investment (FDI) permitted for stations that wish to broadcast news and from 20% to 49% for stations that do not opt for news broadcasting.
News broadcasting would still be constrained however with sources limited to "content from AIR, Doordarshan, authorized TV news channels, United News of India), Press Trust of India and any other authorized news agency" and shall be factually based with a prohibition on "broadcasting of news contents having speculative, anticipatory or based on rumours/ hearsay."
The proposals are made in the authority's "Recommendations on the 3rd Phase of Private FM Radio Broadcasting" in India: In the first phase in 1999 a total of 22 private channels went on air and in the second 337 FM licences were put on sale resulting in the issue of 245 Letters of Intent out of which 185 channels have gone on air. The government is considering a further extension of private FMs beyond the 92 cities for which licences were offered in Phase II and asked TRAI for recommendations.
TRAI issued a consultation paper on the matter in January and on the basis of responses its chairman Nripendra Misra has written to the Information and Broadcasting Ministry asking for an "early decision" on the recommendations to "facilitate modifications to the existing guidelines which will enable expansion of FM broadcasting in smaller and uncovered areas of the country."
In the 168-page document, the TRAI says FM Radio services in India have "made rapid strides in the recent past particularly since adoption of TRAI Recommendations for the Phase-II" and continues, "Experience in the Phase-II expansion suggests that untapped potential for further growth is quite phenomenal which can be realized if certain barriers to growth are removed."
It comments that it "does not find any justification to continue with the existing guidelines that restrict the contents of FM Radio broadcast to exclude news and current affairs" and adds, "Sustaining the growth witnessed in FM Radio sector is possible only if certain major policy decisions are taken and these include increasing the number of channels for FM Radio broadcast. Stakeholders in general have commented upon the need to enhance the viability of FM Radio operations in the country so that entry into semi-urban and rural areas is facilitated. One such area which is said to affect the viability of FM radio operations in the country is the restriction on multiple ownership of channels in a city and networking of FM radio programmes across entities."
"Disadvantaged regions like North-East and Jammu & Kashmir" it says, "have been given special dispensation in the policy framework by way of reduction in the annual fee payable by broadcasters in these regions for a period of three years from the date of issue of LOI (Letters of Intent)."
It has also chosen "to mandate collocation of transmitters with existing facilities of All India Radio. Flexibility has however been given to the successful bidders of FM Radio broadcasting to form a consortium and set up required infrastructures, etc. if the AIR facility is not available within a period of three months." It also notes that the Working Group Report of Eleventh Five-Year Plan (2007-12) had said that FM transmitters should be Digital Radio Mondiale (DRM+) compatible.
The TRAI proposes to auction Phase III licences on the same basis as those issued for phase II - that changed the high annual fees set out for phase I with a system of a one-time entry fee plus annual fee of 4% of gross revenues or 10% of the reserve one time entry fee (OTEF), whichever is higher - but it adds that in regard to regional licences, where a private FM is already operational in the area, its license "may be given the option to enlarge the area of operation for the same channel to provide coverage to full district after paying difference in maximum bid price determined through the auction for the district or similar district in the state and One Time Entry Fee (OTEF) already paid for city. If highest bid is less than the original bid price for city basis, the migration shall be allowed without any additional payment."
Regarding ownership caps it says that the existing limit of 15% of total FM Radio channels in the country is no longer valid as the fear of monopoly is no longer real and may be withdrawn but as far as districts are concerned at least three channels, excluding AIR, should go to different entities. Once this condition is met, it adds, operators should be allowed to bid for other channels up to a maximum of half the total channels in the district.
It also proposes allowing operators to network across their own stations but not stations of other broadcasters.
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TRAI Recommendations (168 page 1.69 MB PDF):
2008-02-24: Last week the attention on the regulators related far more to TV than radio as the Federal Communications Commission back into the indecency fines business with penalties of USD 1.24 million against ABC for a February 2003 episode of NYPD Blue and of USD 91,000 against Fox for an April 2003 episode of "Married by America".
In each case the penalties had been reduced - from USD 1.42 million and USD 1.18 million respectively - after the agency opted under a new policy to levy penalties only in the markets where there had been a complaint. ABC has paid but is appealing to the 2nd Circuit Court of Appeals whilst Fox said it is "actively considering" is options.
In radio terms it was much quieter with no releases from Ireland, only one from Australia and a few more elsewhere.
In Australia, the Australian Communications and Media Authority (ACMA) as decided not to renew the "Groove FM" community licence held by Youth Media Society of Western Australia Inc (YMS).
The ACMA said that in assessing the licence renewal it found "significant corporate governance problems" and continued, "Due to the seriousness of these problems and the poor history of compliance by YMS with its licence obligations over several years, ACMA decided that YMS does not have the management capacity to provide the service. ACMA was also of the view that the service provided did not adequately meet the needs of the broader youth community of Perth as its music programming is too narrow."
YMS has been investigated twice since it began its service in March 2003 and additional licence conditions were imposed after the first investigation (See RNW Licence News, May 7, 2006) whilst after the second breaches of the additional conditions were found and remedial action ordered earlier this year.
YMS can apply for a three-month temporary community broadcasting licence - it could have to share the frequency if there are other applicants - under which, says the regulator, it "would have the chance to reconsider its community of interest and show through its own actions that it can encourage participation in the operations of the station."
AMCA Chairman Chris Chapman commented that YMS had "not performed at the level and with the outcomes expected of community broadcasters" and continued, "YMS has a strong incentive to use its time on a temporary community broadcasting licence to demonstrate to ACMA that it can comply with the Broadcasting Services Act."
The ACMA has also announced that its second conference on spectrum management - Radcomms08 - is to be held in Melbourne from Wednesday 30 April to Friday 2 May. It notes that highlights will include discussion of an independent review of government spectrum holdings in Australia that the ACMA intends to release in April along with a draft of its first spectrum demand analysis and work program, entitled Five-year Spectrum Outlook.
In Canada, the Canadian Radio-television and Telecommunications Commission (CRTC) posted only a few radio related decisions and notices including the following:
Across Canada:
Approval of various applications by CITR Radio Inc. for licences for National, ethnic, Tamil-language specialty audio services in various musical formats:
These were - Tamil Bouquet (ITR 60's & 70's); Tamil Bouquet (ITR 80's & 90's); Tamil Bouquet (ITR Classical Instrumental); Tamil Bouquet (ITR Classical Vocal); Tamil Bouquet (ITR Latest Hits); Bouquet (ITR News & Info); Tamil Bouquet (ITR Oldies); Tamil Bouquet (ITR Religious Christian); Tamil Bouquet (ITR Religious Hindu); Tamil Bouquet (ITR Variety).
Ontario:
Approval of application by MZ Media Inc. to amend the broadcasting licence of CFMX-FM-1 Toronto (formerly CFMZ-FM-1) by deleting its re-broadcasting transmitter CFMZ-FM Cobourg and also approval of application by MZ Media for a broadcasting licence to operate an 86,700 watts (the same as CFMZ-FM) English-language Specialty Classical and Fine Arts FM in Cobourg.
The CRTC also posted a public notice, with a March 28 deadline for the submission of interventions or comments, concerning an application by My Broadcasting Corporation (MBC) to reduce the power of its English-language commercial station CHMY-FM Renfrew, Ontario, from 1,000 to 790 watts, increase the antenna height and relocate the transmitter.
As already noted there were no radio postings from Ireland but in the UK Ofcom was involved both in licensing decisions relating to the award of a DAB multiplex, receipt of only one application for another multiplex and the advertisement of a third (See RNW Feb 22) and in enforcement actions. The latter related to pirate operators in four London boroughs and raids in which 22 transmitters were seized and three people arrested (See RNW Feb 20).
In the US as already noted the main media attention as far as the Federal Communications Commission (FCC) was concerned related to TV indecency penalties but the agency also garnered some publicity when an appeals court upheld lawsuits relating to its dismissal of petitions concerning the effect on migratory birds of transmission towers on the Gulf Coast (See RNW Feb 22).
The FCC also said it was now prepared to grant another three construction permits relating to its FM Auction 62. They were in Clifton, Colorado plus Hettinger and Wishek in North Dakota.
In licence and enforcement actions the agency was involved in the following decisions:
California:
Issued forfeiture for USD 8,000 to Lazer Licenses, LLC, licensee of KSBQ-AM, Santa Maria; KLMM-FM, Morro Bay; and KLUN-FM, Paso Robles, for public file regulation breaches...
Lazer had argued for reduction or cancellation of a propose penalty on the basis that the relevant documents had been prepared on time but could not be located because of staff changes, adding that it had modified procedures to prevent repetition. The FCC found that Lazer's efforts warranted a good faith reduction and cut the penalty to USD 8,000.
Maryland: Denied applications for review of earlier decisions to deny extra time for Birach Broadcasting Corporation to construct modified facilities for WDMV-AM, Walkersville.
The station is operating and licensed to Walkerville but its previous owner Elijah Broadcasting Corporation had been granted a permit authorizing relocation of the station's transmitter to a site near Damascus, Maryland, from which the station would serve Poolesville, Maryland, instead of Walkersville.
Subsequently in November 2003, against opposition from New World Radio, Inc., Birach, which had acquired WDMV and the contested permit in December, 2002, was granted an application to relocate the licensed facilities of a commonly owned station, Station WGOP-AM, to the same Damascus Site and the WDMV permission was affirmed.
Birach had later filed for an extension of the time allowed for the change but this was refused and the company had failed to carry out the construction by the relevant deadline. The FCC rejected its arguments for an extension.
Texas: Denied petition for reconsideration of earlier decision rejecting call to deny assignment of licences of KFCD-AM, Farmersville, and CP for KHSE-AM, Wylie, to from DFW Radio License, LLC to Bernard Dallas, LLC. The FCC's earlier decision rejected an "unsupported" claim that Bernard failed to disclose foreign ownership interests in its principal equity owner, D. B. Zwim Special Opportunities Fund, L.P. and found that the petitioners had not established a prima facie case that DBZ engaged in an unauthorized transfer of control of KHSE.
In its denial for reconsideration it said that alleged new evidence of Bernard's non-compliance with foreign ownership regulations did not establish that this was the case. The licence assignment was granted.
Washington State: Renewed licence of BBC Broadcasting, Inc.'s KRPI-AM, Ferndale, to which objection had been raised by "Residents Against High-Power Radio Interference" on the basis of interference in properties close to its transmission towers; that the signals exceed safe environmental levels; that KRPI does not conform to the spurious emission limits; that its foreign language programming is of no value to the local community; and that property values have declined in areas affected by interference from KRPI.
BBC said it complied with regulations governing emissions and that the facility is suitable fenced and has appropriate warning notices, and that it has cooperated, and will continue to cooperate, in resolving interference complaints.
The FCC accepted the broadcaster's response, found inadequate evidence to support the objections, and renewed the licence.
Wisconsin: Issued USD 4,000 Notice of Apparent Liability for Forfeiture to Courier Communications Corp., licensee of WNOV-AM, Milwaukee, for breach of its rules about broadcasting a telephone conversation without first informing the other party to the conversation of its intention to do so.
The "conversation" in this case was of a voicemail greeting from the mobile phone of complainant without his permission.
Courier had responded that the programming was provided with on-air personality, Michael McGee, Sr., whose show "Word Warriors" broadcast the call. It added that it "did not know of, and did not approve of, the actions taken solely by McGee," who, it asserts, was an independent contractor.
The FCC pointed out that the licensee was responsible under its rules and rejected Courier's arguments.
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2008-02-24: In more signs that Eureka DAB Digital Radio is continuing to make progress despite the recent decision by GCap Media in the UK to severely cut back on its digital operations (See RNW Feb 11); RadioScape has announced that it has now delivered its 100th DAB Broadcast System for live service transmission and Digital One, the UK national commercial multiplex in which GCap used to hold the controlling interest, says it can now reach more than 90% of the UK population; and Australia is less than a year away from introducing DAB+ transmissions in its capital cities.
RadioScape says that in addition to the system sale it has also sold more than 40 broadcast and test systems to DAB receiver manufacturers across Europe and Asia. Its CEO John Hall commented, "2008 will be a year of increasing activity in the international radio market as more countries roll-out DAB and DAB+ services. With new contracts in China, Indonesia and Belgium we now have DAB installations in 14 countries and we see demand continuing to increase on the back of further successful field trials in recent months."
Noting UK comments about the viability of commercial DAB services Hall continued, "Broadcasters realise they must take advantage of the opportunities afforded by digital if they are to make DAB economic. We are increasingly working in close cooperation with broadcasters to enable new types of digital content and services, leveraging our significant DAB receiver expertise to create 'end to end' solutions. Most of these engagements are overseas at present, but we see real opportunity to assist UK broadcasters encourage more rapid consumer take-up."
Amongst areas where the company is active are China, where the media ministry , the State Administration of Radio, Film, and Television (SARFT), has endorsed DAB as the industrial standard for digital audio broadcasting, and Indonesia where a a Digital Multimedia Broadcasting (DMB) co-operation project, between South Korea's Electronics and Telecommunications Research Institute (ETRI) and DMB Nusantara, a Jakarta-based DMB service provider, recently selected RadioScape's DAB Broadcast System for its nationwide DMB infrastructure across Indonesia.
In China RadioScape is now enabling services in Beijing, Shanghai, Guangzhou, and Yunnan and there are also plans for 14 DAB services during the 2008 Olympics.
WorldDMB President and Digital One Chief Executive Quentin Howard said the RadioScape announcement "is further evidence that the DAB family of standards continues to gain momentum around the world, becoming the system of choice for European and Asian broadcasters. No other system offers the variety and range of consumer devices, nor matches DAB's low network costs, making it the world's leading terrestrial digital radio and mobile multimedia solution."
In Australia, where DAB+ services are scheduled to go on air from January 1 next year Sydney, Melbourne, Brisbane, Adelaide, Perth and Hobart, Commercial Radio Australia CEO Joan Warner said the development was "one of the most significant milestones in Australian broadcasting history" adding, "It is a re-positioning for the 21st century of Australia's most used form of electronic media and places Australia at the forefront of world broadcasting trends."
The DAB+ system to be used by Australia uses AAC (Advanced Audio Coding), which offers two to three times the capacity of the MP2 encoding used in UK DAB transmissions
In the UK, which so far has announced no plans to upgrade its system, Digital One, which is now owned by Arqiva, has switched on its Scarborough transmitter, extending the range of services available in the area. The multiplex can reach more than 90% of the UK population compared to some 85% for BBC DAB - also planning to extend its range to 90%- and around 75% for the Freeview digital TV platform.
Howard said the multiplexes' announcement "reflects the reality that DAB digital radio is indeed in rude health. We had record Christmas sales figures from GfK, the RAJAR results show that DAB digital radio commands 10% of all radio listening and total sales have reached six and a half million sets. Digital One's announcement that we now reach over 90% of the British population is another hard fact, demonstrating digital radio's strong position and firm foundations."
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2008-02-23: Radio One, Inc. has announced the resignation of its Vice President of Operations, Zemira Z. Jones, a former Vice-President and General Manager of ABC Radio, Chicago, who joined the company in July 2004 (See RNW Jul 14, 2004 ). Nothing was said about any replacement or Jones's future plans.
Alfred C. Liggins, III, Radio One's Chief Executive Officer in a release said he was "thankful for the privilege of working with Radio One" adding, "Together we took a uniquely great company and turned up the heat. Now Radio One is poised to release its full brilliance and I am blessed that Alfred, Barry and Ms. Hughes allowed me to be part of it."
Radio One CEO paying tribute said, "I want to thank Zemira for all that he has done for us. He has been a valuable part of our leadership team and I am sure that he will continue to be a part of our family. He is highly respected and I am certain that he will contribute to the radio industry for years to come. He will definitely be missed."
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2008-02-23: The BBC has appointed Adrian Van Klaveren, currently Deputy Director of News and Controller of News Production, as the Controller, BBC Radio 5 Live and BBC 5 Live Sports Extra.
He succeeds Bob Shennan who resigned to join Channel 4 Radio (See RNW Dec 4, 2007) but will not oversee the BBC Asian Network, which was also in Shennan's remit. The Asian Network has been overseen since December by Andy Parfitt, Controller of BBC Radio 1, 1Xtra BBC, and BBC Switch, the BBC's new teen content across TV, Radio and digital, and he will retain the role.
Commenting on the appointments, Jenny Abramsky, Director of BBC Audio & Music, said she was "thrilled that Adrian is to become Controller of 5 Live. Adrian is a passionate listener to and supporter of 5 Live and the right person to take the station forward to its new and exciting future in Salford. He has been a terrific editorial leader in BBC News, affecting change across the whole division. He understands how important 5 Live is for BBC Radio and for BBC News and Sport. Under his leadership I have no doubt 5 Live and 5 Live Sports Extra will go from strength to strength."
Regarding Parfitt's additional role she said, "From audience perspective it makes sense that the Asian Network, which provides so much for young British Asians, sits with our other youth stations, Radio 1 and 1Xtra. Andy Parfitt has done an excellent job in looking after the Asian Network these past few months and I am sure that it will flourish under his controllership."
Van Klaveren commented of his appointment, "Getting the chance to run my favourite radio station is my dream job. Radio 5 Live has a unique tone and character and a very special relationship with its audience. I want to build on that passion for sport and commitment to live news. I'm really excited about leading the station to its new home in Salford."
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2008-02-23: Progressive US talk network Air America Radio is changing hands again and has announced a new chairman and Internet General Manager.
An announcement by the network says that Vermont businessman Charlie Kireker is to purchase a controlling interest in it from Green Family Media through Pendulum Media, which has been set up for the purpose.
Kireker will take over as chairman on March 17 in succession to Stephen L. Green, who will remain on the board as well as retaining a significant investment. Mark Green will remain as President and Scott Elberg as COO of Air America and Philippe Collin has joined it as Senior Vice President, and General Manager of Interactive Media.
Collin has been an interactive and marketing executive managing digital media products and services for more than 14 years, serving clients including ABC Radio Networks, CNN, FedEx, LVMH and Muzak and most recently was President of innovative marketing group M-IMS.
In a statement Kireker said he was "thrilled to become the chair of one of the new, leading journalistic voices in America" and added, "The investors in our group have great confidence in the future growth of Air America's audience and media reach."
Paying tribute to the outgoing chairman, Kireker said they were "extremely grateful" to him and continued, "Over the past 12 months, Steve has been instrumental in the successful effort to save and stabilize Air America. Now in its fourth year of existence, Air America has consolidated its operations and is ready to pursue an expansion strategy and profitable growth in and after this pivotal election year."
Regarding future plans he said the management team "has the media, business and public credentials to build on our past and expand the Air America brand by increasing affiliates, listeners and revenues… Our Board and management team look forward to re-launching our new web site and our multi-media strategy, which will premiere soon."
Air America says it now has 65 affiliates and an estimated weekly audience approaching two million. Its national network sales and affiliate growth are managed by Westwood One.
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2008-02-23: Shane "Rover" French, whose morning show on CBS Radio's WKRK FM/92.3 "K-Rock," Cleveland was taken off air at the start of the week, has left the station because of a contract dispute according to the Cleveland Plain Dealer.
The paper says that WKRK vice president and general manager Tom Herschel confirmed the departure, saying, "We hoped we would come to a new agreement. Now that's not going to happen."
It adds, quoting radio consultant John Gorman, that the show is likely to surface again on Clear Channel's WMMS FM/100.7 in early April, and notes that would mean that WMMS would have to move or drop its current syndicated morning program "The Bob and Tom Show" to make room for Rover.
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2008-02-22: There was more evidence of problems and a slowdown in US radio in results from Entercom, Fisher Communications and Radio One Inc. with only Entercom increasing revenues in the final quarter, although Fisher, whose revenues were up 4% year on year and down 1% on the quarter noted the effects of political spending in the final quarter of 2006 as a primary reason for the quarter's comparisons.
Entercom reported net revenues for the quarter up 2% to USD 120.6 million - same station revenues were up by less than 1% and same station operating income was up 1% to USD 52.2 million.
Entercom overall station operating expenses overall were down 1% to USD 68.4 million -same station operating expenses were up but by less than 1% - but a USD 38.7 million non-cash pre-tax intangible impairment charge took net income from a positive USD 6.94 million to a loss of USD 9.36 million (From a positive 17 cents to a loss of 25 cents per diluted share).
For the full year, revenues were up 7% to USD 468.4 million but station operating expenses rose more - up by 9% to USD 281.2 million. Same station revenues were flat and operating expenses up 3% and same station operating income down 3% to USD 171.6 million.
Overall net income was again hit by impairment charges of USD 84.0 million turning a net income of USD 47.98 million to a net loss of USD 8.36 million (from USD 1.19 to a loss of 22 cents per diluted share).
Entercom says it expects first quarter same station net revenues this year to be down in the mid-single digit range year-on-year with same station operating expenses to fall by around 1%.
Its President and Chief Executive Officer David J. Field said the company was "pleased to report positive fourth quarter results, highlighted by growth in same station revenues and same station operating income."
"Most significantly," he added, " adjusted income from continuing operations per share grew from USD 0.37 to USD 0.40. In 2008, we are experiencing significant growth in our digital and business development efforts, partially offsetting the impact of the general economic slowdown. We expect free cash flow to grow during the first quarter over the prior year period."
At Fisher Communications, which has disposed of most of its radio operations to concentrate on TV, final quarter revenues were down 1% to USD 44.1 million but full years revenues were up 4% to USD 160.4 million with net income for the quarter nearly doubling from USD 16.9 million to USD 31.4 million (from USD 1.94 to USD 3.60 per share) - they were much the same for the full year - up from USD 16.8 million to USD 31.9 million (From USD 1.93 to USD 3.65 per share).
President and CEO Colleen Brown said, "2007 was a strong year for Fisher, building off an improved year in 2006. In the past two years we have driven sales growth, ratings growth, and margin growth. We have diversified our network and geographic footprint, built duopolies in our existing markets, entered the Spanish-language television business, launched an Internet division, and significantly improved our debt to cash flow ratio, while continuing to improve the performance of the Company."
At Radio One, revenues were down 5% on a year earlier to USD 78.1 million for the quarter; station operating income was down 26% to USD 27.8 million; and net loss leaped to USD 387.6 million (USD 3.91 per basic share) - including USD 404.1 million in non-cash impairment charges for intangible assets - compared to a net loss of USD 25.5 million for the final quarter of 2006 when the company reported USD 49.9 million in impairment charges. The increase in impairment charges, said the company, was "due to impairment of radio broadcasting licenses primarily associated with our Los Angeles station and Houston market, and to a lesser extent, also with our Cincinnati, Cleveland, Columbus, Dallas, and Philadelphia markets."
For the full year, net revenues were down 3.2% to USD 330.3 million; operating expenses more than doubled from USD 273.4 million to USD 315.6 million; operating income went from USD 68 million to a loss of USD 315.6 million and net loss leaped from USD 6.7 million to USD 387.1 million.
Radio One put the quarter's revenue decline down to a combination of the effects of comparison with strong political advertising a year earlier and particularly noted problems in Los Angeles, where the company has spent some USD 5 million on urban AC KRBV-FM, which it has reformatted. It also noted that the demand for national advertising had been "particularly weak for the markets in which we operate" and said revenues were down in Baltimore, Cleveland, Detroit, Houston and Philadelphia, partially offset by gains in Atlanta and Raleigh.
President and CEO Alfred C. Liggins, III said in a statement, "As predicted, the industry experienced a soft fourth quarter, with the markets in which we operate down 5% year to year. Of our same 5% net revenue decline, 300 basis points are attributable to unfavourable political comps. Los Angeles accounted for only another 27 basis points of the decline, although the advertising push in Q4 appears to be impacting Q1 beneficially, with low single-digit revenue growth and positive EBITDA forecast for Q1. The market continues to be challenging, particularly at the national level; however, we are seeing some good local revenue numbers and are optimistic that there may be a halt to the overall revenue decline in Q1. Reach Media continues to perform well, as does TV One, which remains significantly ahead of their original plan. Our Q4 internet revenues grew by 32% year to year and our Interactive One team recently re-launched the Giant magazine website, and will release beta versions of our content verticals in Q1."
On a more positive note he continued, "I remain excited about our diversification strategy and the non-radio assets that we are assembling. At the same time, our management team is highly focused on improving radio cash-flows, which remain core to our business and which provide the platform for our future growth."
At the company's conference call Liggins noted that Radio One's revenue in Los Angeles was down around 12%, double that of the market as a whole, but that they had now "bottomed out and are poised to grow." He also noted continuing problems in Detroit because of auto industry "woes".
Newly-appointed CFO Peter Thompson acknowledged continuing "softness" in the radio industry but said there were "definitely signs of improvement" for Radio One whilst Radio One President Barry Mayo said that in January the company had "outperformed the market by more than four points" and added, "We feel like we've turned the quarter in L.A. We did have a tough fourth quarter there, but we're expecting to break even or do a little better in the first quarter."
South of the border, Mexican radio operator Grupo Radio Centro reported an 0.5% increase in fourth quarter broadcasting revenues to MXN 206.96 million (USD 18.96 million) but full year revenues were down 20.7% to MXN 654.76 mi