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June 3, 1998
LPFM REPLY COMMENTS - MAKE THEM!
The deadline for filing reply-comments with the FCC on all LPFM petitions HAS
BEEN EXTENDED to Friday, July 24th, 1998. Get your comments in NOW if you didn't
file comments on the original petitions!
If you want really detailed information on most all of the comments filed on the
most recent Petitions for Rulemaking, head on over to Harold
Hallikainen's page. It is some interesting reading on both sides of the issue.
(Big thanks to Harold for creating this massive resource!)
FCC BIENNIAL REVIEW!
The FCC is currently reviewing ownership rules (the FCC has to review all it's policies
and such every two years) and comments are due by July 21, 1998. You can get additional
information at FreeRadio
or the FCC
Website.
Our suggestion: The 1996 Telecom Act was detrimental to radio. Change it! ARD will
publish a guide to filing comments on this issue very soon. Stay tuned.
FCC APPROVES CBS RADIO BUY
full story online at Yahoo News
full story online at ABC News
The Federal Communications Commission has approved CBS Corp.'s $1.6 billion acquisition
of American Radio Systems Corp. after requiring only modest divestitures.
The FCC told CBS to divest radio stations in the San Francisco-Oakland-San Jose market
within six months in addition to completing the sale of seven stations in the Boston,
St. Louis and Baltimore markets as required by the Department of Justice when it
approved the deal in March.
Those stations are: WOCT-FM in Baltimore; KSD-FM and KLOU-FM in St. Louis; WEEI-AM
and WRKO-AM in Boston; WEGQ-FM in Lawrence, Mass.; and WAAF-FM in Worcester, Mass.
The Connecticut stations owned by American Radio Systems are the Hartford-based WTIC
AM-FM, WRCH and WZMX, both based in Farmington.
The FCC, among other things, also provided CBS with some temporary waivers of its
local ownership rules, letting the company retain ownership of TV and radio stations
in some local markets while the commission considers changes in the rules.
Following the merger, CBS will become one of the largest radio operators in the country
with over 170 stations.
JACOR, CBS GET STATIONS IN SWAP
full story online at Baltimore Business Journal
full story online at Yahoo Business
Jacor Communications Inc. said Thursday it has agreed to swap five of its radio
stations in exchange for six CBS stations.
Jacor said the swap is intended to move the company closer to finalizing its $620
million acquisition of Nationwide Communications Inc., announced in October. Nationwide
operates 17 stations in nine markets. The deal with CBS is subject to conditions
including Jacor's closing of the Nationwide acquisition, Jacor said.
Jacor said it will trade to CBS three of its current Columbus stations -- WLVQ-FM,
WAZU-FM and WHOK-FM -- and two Minneapolis stations included in the pending Nationwide
deal, KSGS-AM and KMJZ-FM.
In return, Jacor receives from CBS two stations apiece in St. Louis, Baltimore and
San Jose, Calif. They are KOME-FM and KUFX-FM in San Jose, KSD-FM and KLOU-FM in
St. Louis, and WCAO-AM and WOCT-FM in Baltimore..
The American/CBS deal, announced in September, is worth $1.6 billion.
FCC WEIGHS POLICY CHANGE
full story online at Fox News
Even as commercial radio becomes an increasingly expensive and exclusive business,
technology is making it possible for anyone with a modest savings account to hit
the airwaves. These opposing realities are threatening to fill the future of radio
broadcasting with static.
As control of the airwaves reverts to the corporate offices, the feeling that radio
is losing touch with local audiences has been exacerbated... The average cost of
a commercial station is $8 million, according to a State of the Radio Industry report
released by BIA Consulting, a communications consulting firm...
Nowhere is the distaste for the corporate mentality stronger than among the grassroots
of the medium.
Pirate, or "micro," broadcasters are setting up simple antennas, microphones
and mixing boards and beaming low-wattage radio to their communities at a cost ranging
from a few hundred dollars to $2,000 ó thanks to better, cheaper equipment thatís
become available in the last 10 years.
FCC APPEALS ANTI-AFFIRMATIVE ACTION
full story online at Yahoo Business
The Federal Communications Commission on Friday asked a federal appeals court
to reconsider a ruling that struck down affirmative action rules for radio and television
stations. The agency asked the full Court of Appeals for the District of Columbia
to review the April 14 decision by a three-judge panel that overturned long-standing
FCC rules requiring broadcasters to seek to hire women and minorities.
RADIO REBELLION: THE TURNED OFF FIGHT BACK
full story online at The Washington Post
Don't worry, the big radio companies promised, everything will be fine. The more
stations we buy, the more we can experiment, the more diversity the listener will
hear.
That's what they said during those frenzied months when a handful of companies --
taking advantage of Congress's 1996 decision to loosen restrictions on the number
of stations anyone could own -- were grabbing up about 4,000 of the nation's 10,000
radio stations. Something like $32 billion has changed hands, and the dust has not
yet settled.
What's already clear is that the listener is the loser. In recent months, I have
asked executives at several big radio companies to cite examples of the new diversity
of programming they had promised. Not a one came up with anything but slight variations
on the standard, bland "adult contemporary" music formats that dominate
the dial.
Now, listeners across the country are registering their displeasure. Not only is
the number of people who turn on their radios in decline, but in city after city,
listeners are fighting the loss of creative programming.
COX RADIO GETS NY STATIONS
full story online at Yahoo Business
Cox Radio announced that it has completed its acquisition of the assets of WBLI-FM,
WBAB-FM, WHFM-FM and WGBB-AM, serving the Nassau-Suffolk, N.Y., market. The assets
were acquired from SFX/Capstar for $48 million.
RADIO SHORTS OUT DESPITE REVENUE BOOST
full story online at LA Times
Radio stocks, among the showbiz sector's highest-fliers on Wall Street in the
past couple of years, are suddenly turning south despite strong advertising sales
in the second quarter.
Stocks such as Chancellor Media, Emmis Broadcasting, Jacor Communications and even
CBS Corp., which, with the addition of American Radio, will obtain the majority of
its revenues from radio, have fallen 20%-25% in the past few weeks.
Capstar Broadcasting, the largest group of radio stations in the country, went public
May 27 at a lower-than-expected $19 a share. The stock has since given up 10% to
close Tuesday at $17.13.
CD RADIO TO DOUBLE PLANNED CAPACITY
full story online at Yahoo Business
CD Radio Inc. said that it has exercised its option to purchase a fourth satellite
from Loral Space and Communications Ltd., doubling its planned broadcast capacity
to 100 channels in its nationwide satellite-to-car radio broadcasting system scheduled
for launch beginning next year. The company is building a satellite-to-car
100 channel radio system for the broadcast of music and other programming to motorists
throughout the United States.
RADIO UNICA TAKES METROPLEX
full story online at Dallas Business Journal
It's only been a week since it hit local airwaves on KDFT-AM (540).
But the Hispanic community in Dallas-Fort Worth is already loco for Radio Unica --
the first national Spanish-language radio network in the United States.
It is the only true Hispanic talk radio station in the Metroplex, according to industry
sources. The market currently boasts close to 10 Spanish-language stations that are
mostly music-based.
Miami-based Radio Unica Corp. launched the news-talk, sports and information network
in January on 34 stations nationwide -- including Houston and San Antonio, said Nickie
Jurado, network spokeswoman. Less than five months later, it is on the air in 57
U.S. markets, she said.
Radio Unica Corp. is headed by Joaquin Blaya, who previously helped turn Hispanic
television into a lucrative American enterprise as head of industry leaders Univision
and Telemundo.
ARD TAKES MANHATTAN
Americans for Radio Diversity held it's official CD release party in New York at
CBGB's Basement Lounge last Thursday. The musical lineup included Nicole Blackman
(spinning at the DJ booth), Craig Wedren of Shudder To Think, Dead Hot Workshop and
Gravity Galaxy. Big thanks to all who came out to see the show and support the cause!
May 25th, 1998
ARD CD RELEASE PARTY AT CBGB's NEW YORK
On May 28th, 1998 (Thursday) Americans for Radio Diversity will be hosting it's official
CD Release Party at CBGB's Basement Lounge in New York City. Doors will be at 9pm
and music at 11pm with performances by Dead Hot Workshop, Gravity Galaxy and Craig
Wedren (from Shudder To Think). Other surprises may be in store... so if you are
in the area, don't miss it!
May 18th, 1998
BUCCANEER BROADCASTING
full story online at MetroActive
Down at the very end of the FM dial, on a frequency of 87.9 megahertz, the Pirate
Cat is broadcasting a nonstop sonic assault of punk and ska. At the controls is Monkey
Man (his on-air persona), a recent high school graduate who built the station in
his bedroom.
Monkey Man is not going to shell out the $10,000 annual fee to the FCC for a broadcast
license anytime soon, and even if he did, the FCC won't license puny little stations
under 100 watts.
"They say they're there to protect people, but really it's just censorship,"
he insists.
FORBES LOVES RADIO BUSINESS!
full story online at Forbes Online (see also Radioactive Men)
Hicks' specialty: radio stations. No, not the Internet. Plain old radio. In how
many other 75- year-old industries can a well-run business turn an operating profit
of 45% of revenues?
Though radio is an old business and technologically mature, its revenues are growing
at better than 10% per year, and cash flow is increasing at an even-faster 25% rate.
The average cash flow margin for successful radio companies is about 40%. Compare
this with 30% for cable networks and 15% for top television networks like NBC....
...Not everyone is happy about radio stations' new pricing power. "One of the
great advantages of radio advertising historically is that it was low-priced,"
says John Rash, a media buyer for Campbell-Mithun-Esty. "The price of radio
is accelerating about triple the rate of inflation now." Complains JL Media's
Jerry Levy, a buyer for Old Navy, Strong Funds and the World Wrestling Federation,
"Even after a strong year like 1997, you have radio station owners like CBS
and Chancellor telling their people they want 12% to 14% revenue increases across
the board."
FUTURE OF AD RATES UNKNOWN
full story online at Pittsburgh Business Times
As the dust clears from the recent stampede of radio station mergers, neither
stations nor advertising agencies are sure how the changes will affect the rate cards.
But at the least, there will be changes in how ads are bought, even if its not clear
what price will be paid for them.
(Editor's Note: see above)
RADIO TOWERS BIG BUSINESS
full story online at Cincinatti Business Courier
The principals of a Tri-State investment banking firm that focuses on the radio
industry have formed a communication tower company that is looking to consolidate
that burgeoning industry...
He said the company's plan is similar to what Jacor Communications Inc. has done
with radio stations: Pull together a viable hunk of a fragmented industry that is
now full of small, private operators.
"This is a consolidation play," said Meiszer of Lattice's business plan,
which is being financed through a combination of equity investments by principals,
bank loans and internal cash flow. "Our goal is to acquire towers in Ohio, Kentucky
and Indiana -- at least 100 towers that we can concentrate into a network and sell
space on."
METRO SOURCE SUPPLIES LOCAL INFO?
full story online at Yahoo Biz
Metro Networks, the largest provider of local content to the radio and television
broadcasting industry, announced that it has affiliated more than 250 radio stations
for its new Metro Source service.
Metro Source is a satellite delivered, comprehensive information service and digital
audio workstation that allows all affiliates to receive, view, write, edit and report
the latest news and features, in both text and audio formats. Metro Source affiliates
receive continuously updated and breaking local, regional, national and international
news, sports, and weather reports as well as business and entertainment information
provided by Metro Networks and its partners.
DIGITAL RADIO RESPONDS TO LUCENT
full story online at Yahoo! Biz
Responding to Lucent's proposal to enter the digital broadcasting market, USA
Digital Radio welcomed Lucent's commitment to IBOC technology, underscoring IBOC's
viability as the system of choice for digital radio broadcasting.
Lucent developed an appreciation for the capabilities of IBOC systems when it partnered
with USADR, which pioneered the technology, in a joint development agreement to evaluate
the technology for digital radio broadcasting. The recently completed study concluded
that IBOC is the preferred technology for the U.S. radio industry's transition to
digital audio broadcasting.
REBEL RADIO: FIGHTING THE FEDS
full story online at Village Voice
...It's STR's first night broadcasting after five weeks of self-imposed silence,
so the schedule's packed. There's a report on police brutality by the New York Black
Panther Committee for Social Progress, and an update on the Zapatistas by Las Hermanas
de Ramona, a pair of indigenous Mexican performance artists. A guy named Question
Mark reads off a litany of recent natural disasters and UFO sightings for his show,
The Quickening News/Polyrhythm Hour, followed by a mind-numbing barrage of dissonant
noise by Audio Damage Laboratories, a local DJ crew. Next up is Loisaida USA, a bilingual
show of poetry and conversation hosted by a Latin DJ named Cenen, who wants to know,
"How is your soul?"
Welcome to radio at its most unabashedly free-form. Welcome to the notion of localized
free expression as an act of electronic civil disobedience, because low-power stations
like STR can't get a license to broadcast even if they apply for one....
JACOR CONTEST DRAWS FIRE
full story online at Dayton Business News
After a controversial billboard campaign for one of its Dayton rock radio stations,
Jacor Communications is again creating a buzz, but isn't being so up front about
it. This month Jacor ...
...introduced one of the largest radio contests to the Dayton market with its
$5,000 song-of-the-day contest on MIX 107.7-FM. The five-week contest puts to shame
the station's once touted $1,000 song-of the-day contest.
What the company has failed to do, however, is inform listeners on the air that when
they call the toll-free phone number to win, they are competing against listeners
who heard the same song at the same time on Jacor's eight other "Mix" stations.
Those other markets include: Lexington, Ky.; Cleveland; Lima; Cedar Rapids, Mich.;
Cincinnati; Des Moines, Iowa; Sandusky; and Rochester, N.Y.
TELECOM REFORM HAMMERED BY MERGERS
full story online at Edmonton Journal
What price competition? With a slew of mergers in the U.S. telecommunications
industry, finding an answer is suddenly urgent.
Two years ago, the U.S. government enacted a law designed to crack local telephone
monopolies and bring consumers the benefits of competition. By sweeping away decades
of regulation, the U.S. government thought it was paving the way for a free-for-all
among the Baby Bells, long-distance carriers, cable operators and other telecommunications
providers.
Instead, the urge to merge has overwhelmed the compulsion to compete. Most people
are still waiting for lower phone rates and better service, while the largest telephone
giants seem intent on vying to see which one can become the biggest the fastest.
Lawmakers and regulators have largely stood by and watched the procession of megadeals,
hoping that the emergent landscape would eventually give rise to competition.
But with last week's news of SBC Communications Inc.'s $56.2 billion bid to buy Ameritech
Corp., frustrated lawmakers and regulators are debating where to draw the line.
ARD IN THE MEDIA
MTV News recently ran a segment on ARD and had links on their website as well. The
Twin Cities' weekly alternative news/arts magazine, Pulse, ran a nice piece on the
ARD CD project. Read it here.
MAY 28th... SOMETHING COMING... TO NY...
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