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Nov 30, 1999
OXLEY BILL TO KILL LPFM
Representative Michael Oxley (R-OH) has introduced a bill that could kill the LPFM
issue. Ironically titled "Radio Broadcasting Preservation Act of 1999"
the bill is otherwise known as HR 3439. The basic premise of HR
3439 is:
"To prohibit the Federal Communications Commission from establishing rules authorizing
the operation of new, low power FM radio stations."
Of course, NAB President/CEO Eddie Fritts applauded the bill and called the FCC's
LPFM actions a "misguided initiative."
Perhaps Oxley's bill should come as little surprise -- look at who gives money to
Oxley:
http://www.opensecrets.org/candidates/pac/H2OH04032.htm
Want to give your input on this bill? Contacting your elected officials is
quite simple. Go to the Project Vote Smart
website for all the contact info you might need! You can also call them toll-free
at 1-888-VOTESMART.
WEAK SIGNALS
full story online at NY Press
Eric Boehlert has written a very good article on radio for the NY Press. You
should take the time to go and read it!
When recently asked about the ramifications of the mega-merger with AM/FM, Clear
Channel president Randy Michaels told Billboard, "As local owners who tend to
play their favorite music get forced out by people who are focused on shareholders'
value and therefore understand we have to move customers' products, meaning we have
to attract larger desirable audiencesñwe're intensely focused on serving the public."
Makes you ask the question: To WHOM is the public being served?
TUNING OUT RADIO
A decent article on radio can be found at suck.com
which accurately claims:
Driving across America with the radio on is like being trapped in an endless,
circular mall. Wherever you go, the playlists are the same, the promos use the same
voices, and the DJs sound identical ó no regional accents, just that bizarre plastered-smile
voice native to anchormen, dentists, and Raffi.
PROTESTS AGAINST WTO MARRED BY VIOLENCE
full story online at CNN
By 10:30am PST in Seattle the police had already used hoses and pepper spray on WTO
protesters in the streets. Eventually they turned to tear gas and rubber bullets
and the mayor declared a state of emergency and an evening curfew. Don't know what
all the big deal is about?
http://www.seattle99.org
http://www.adbusters.org/campaigns/bndwto.html
Sign an online petition against the WTO:
http://www.citizen.org/pctrade/mai/Sign-ons/WTOStatement.htm
electrohippies' WTO virtual sit-in site:
http://www.gn.apc.org/pmhp/ehippies/action/wtospec.htm
Nov 6, 1999
We are still in action... here's the latest updates:
The LPFM issue has been delayed until November 15th. Watch the FCC
site or the ARD Discussion Board for breaking
info.
FCC CHAIR ABUSES POWER?
full story online at Deseret News
full story online at LA Times
The head of the FCC is being criticized for a decision to allow a stock-car racetrack
facility to broadcast an event from its stadium to its parking lot without a license.
Technically, the Metroplex speedway in Ennis, Texas, required a license to air over
low-power television the race happening inside. But when the operators of the track
were shut down by local FCC agents for not having a license in the middle of an event,
they appealed to their local congressman to help them out.
According to a complaint by a high-level agency official, that's when Rep. Joe Barton,
R-Texas, contacted FCC Chairman Bill Kennard on behalf of the owner of the facility.
Following the request by Barton, who is a member of the House Commerce Committee,
which oversees the FCC, Kennard ordered through his chain of command that the field
agents in Dallas let the operator continue running.
FCC officials in Washington said the racetrack operators didn't know they needed
a license for the short-range transmission from stadium to parking lot. They promised
they would get a license in the future but were in a bind with 100,000 expected at
the weekend sporting event, FCC officials said.
The commission then granted the facility temporary authority to broadcast over the
weekend, an action Kennard defended as common sense.
"We made a pragmatic, common-sense decision not to disrupt an ongoing three-
to four-day racing event involving a low-power television broadcast from a stadium
into its parking lot," Kennard said. "I believe this decision was made
in good faith by all those involved."
[ED. NOTE: Hmm... what about that three- to four-hundred year event
called "democracy?" Is it just not as exciting? ]
FCC AND DIGITAL RADIO part 2
full story online at EETimes
The FCC took a key step toward U.S. deployment of digital radio when it issued
proposed rules for launching the service "expeditiously" after technical
and standards issues are resolved.
In a 28-page notice on digital audio broadcasting (DAB) issued Monday Nov. 1, the
FCC stopped short of endorsing in-band, on-channel (IBOC) systems designed to allow
the simultaneous broadcast of analog and digital signals without disrupting existing
services. Still, the notice stressed that "the catalyst for this action is the
progress of in-band, on-channel DAB technology.
"IBOC DAB systems have not been conclusively proven to be technically viable
at this point in time, yet great strides have been made and the systems certainly
hold real promise," the FCC notice stated.
Among IBOC design issues [are] DAB systems that operate within existing AM/FM "emission
masks," or limits, on signal power. FCC rules impose limits on signal power
inside and outside a station's assigned channel. Industry comments on the FCC notice
are due by mid-January.
FCC PROPOSAL
(text)
FCC PROPOSAL
(acrobat PDF)
FCC PROPOSES DIGITAL RADIO part 1
full story online at Excite News
The FCC proposed rules to allow radio stations to take advantage of new digital
technologies that could enhance the sound quality of their programs.
The proposal, approved by a 5-0 vote, was issued for comment and could be significantly
altered before being approved. That process can take anywhere from a few months
to several years.
The FCC said it would study different plans for offering digital radio. While considering
an industry-backed plan to offer digital signals over the same frequencies that now
carry AM and FM radio, the agency said it also was open to considering proposals
that would utilize new airwave bands.
For example, the agency asked for comment on using frequencies that now carry TV
channel No. 6 for digital radio. In less than 10 years, TV broadcasters are expected
also to switch to digital, and no TV station will be using channel No. 6 anywhere
in the U.S. after the transition, the FCC said.
Industry calls for FCC rules on digital radio were led by USA Digital Radio Inc.,
a digital radio pioneer owned jointly owned by leading broadcasters including AMFM
Inc., CBS Corp. and Clear Channel Communications.
FIRE AT PACIFICA AFFILIATE
full story online at San Francisco Bay Guardian
full story online at Houston
Chronicle
In the early morning hours of Oct. 29, someone set fire to Pacifica's Houston
outlet, KPFT-FM. Actually the arsonist or arsonists burned down a two-story storage
building behind the Houston community station.
A deliberately set fire gutted a storage building at KPFT-FM's Montrose-area offices
on the eve of meetings here to determine the liberal station's future.
Two points of origin were found for Friday's fire, which Houston Fire Department
investigator Robert Kent said was obviously arson. One KPFT employee said, "It's
a pretty poor way to make a statement."
CUMULUS BUYS THREE MORE
full story online at Arkansas-Democrat Gazette
Cumulus Media Inc., the nation's second-largest owner of radio stations, announced
that it has bought the three leading radio stations in Jonesboro. Cumulus paid $26.5
million in cash for KFIN-FM, KIYS-FM, and KBTM-AM, from Duke Media Inc. of Jonesboro.
Cumulus owns 264 radio stations in 49 cities in 22 states and the Caribbean and employs
more than 3,000 people. Cumulus also owns six radio stations in Northwest Arkansas
and three in Fort Smith.
LIBERTY MEDIA BUYS INTO EMMIS
full story online at CableWorld
John Malone's Liberty Media Group jumped full swing into the radio industry, buying
a 14% stake in radio broadcaster Emmis Communications Corp. for roughly $150 million.
It's Liberty's first foray into a business that, like cable, has undergone rapid
consolidation. And according to Liberty executives and analysts, there's more to
come.
"In the radio business, we think there's at least one more round of consolidation,"
said Liberty president/CEO Robert "Dob" Bennett during a conference call
to discuss the deal. "And, hopefully, with this investment and with the public
offering that Emmis is doing they'll be well positioned to play an important roll
in that consolidation."
Indeed, analysts say that some $4.5 billion of radio assets are expected to come
out of the $23 billion merger of mega-radio concerns Clear Channel Communications
Inc. and AMFM Inc., which was announced in early October. The combined companies
must divest of the properties in order to pass regulatory hurdles.
While Emmis has recently been sitting on the sidelines during rapid radio consolidation,
it has begun positioning itself to start gaining size.
RADIO GIRLS OF 1955
full story online at ABC News
One by one they came into the Memphis office in 1955, each thinking they were
competing for a token womanís spot on a new radio station. They ended up being the
first all-female staff of a radio station.
When WHER-AM 1430 went on the air in Memphis 44 years ago this week, the call letters
werenít incidental: the station was staffed entirely by female deejays, reporters,
sales and promotion staff.
They read the news, did the interviewing and reporting, sold and created commercials,
produced and directed programming and sat at the stationís control boards. Their
motto was "1,000 Beautiful Watts," and when celebrities came through Memphis
they always stopped by the "doll den."
Oct 19, 1999
CLEAR CHANNEL/AMFM MERGER
full story online at Yahoo News
Clear Channel Communications, Inc. and AMFM Inc. announced that they have entered
into a definitive merger agreement (to the combined tune of approx. $56 billion)
to create the world's largest out-of-home media entity. After anticipated divestitures
required to gain regulatory approval, the combined company will have operations in
32 countries including approximately 830 radio stations and more than 425,000 outdoor
displays as well as 19 television stations and significant equity interests in other
leading radio broadcasting and outdoor advertising entities.
Pursuant to the Telecom Act of 1996 and other regulatory guidelines, it is expected
that collectively Clear Channel and AMFM may divest approximately 125 radio stations
to secure regulatory approval for the merger. The station sales resulting from the
merger should serve the public interest by increasing the diversity and ownership
of radio broadcasting properties.
[ED. NOTE: is that a typo? "increasing diversity and ownership"
?!?]
CUMULUS BUYS 11 STATIONS
full story online at Yahoo News
Cumulus Media Inc., the Milwaukee-based radio broadcasting group, announced the
closing of two acquisitions involving 11 radio stations in Eau Claire, Wisconsin
and Lexington, Kentucky. The total purchase price was $59.3 million. Assuming the
completion of all pending acquisitions, Cumulus Media will own and operate 261 radio
stations in 48 U.S. media markets.
RADIO ONE BUYS WCAV-FM
full story online at Yahoo News
Radio One, Inc. announced that it has completed the acquisition of radio station
WCAV-FM, licensed to Brockton, Massachusetts, from KJI Broadcasting, LLC, for approximately
$10 million. Radio One, founded in 1980, is the nation's largest radio broadcasting
company primarily targeting African-American listeners. Pro forma for the completion
of all announced acquisitions, the Company owns 26 radio stations, 25 of which are
located in nine of the top-20 African-American markets in the United States.
FCC RELAXES CABLE OWNERSHIP
full story online at Excite News
The FCC voted recently to relax cable television ownership limits slightly, but
the new rules are still seen as likely to force AT&T Corp. to pare back its acquisition
of MediaOne Group Inc.
AT&T did appear to gain some useful concessions, including an FCC decision that
a cable company shouldn't have to count under the ownership limits any partnerships
where it is not involved in decisions about programming.
No. 2 cable operator AT&T has lobbied the FCC to unwind the limits so it can
acquire No. 3 operator MediaOne and overtake Time Warner Inc. as the biggest cable
television provider.
Under current rules, also under challenge in court, no company may have access to
more than 30 percent of the U.S. homes capable of being hooked up to cable, often
referred to as cable homes passed.
At a public meeting, the FCC voted to keep a 30 percent limit but said it should
apply to actual cable subscribers, and expanded that subscriber base by adding satellite
television customers. That would work out to 30 percent of about 80 million cable
and satellite subscribers, or a 24 million limit for a single company.
The FCC voted to retain the rules that count subscribers coming from ventures that
involve a five percent or greater voting stake.
DISNEY CUTS SHOW TIMES
full story online at NY Observer
ABC has ordered the producers of its prime-time TV programs to trim their shows
by at least 30 seconds per episode. The order will immediately create more advertising
space and should give ABC's corporate parent, the Walt Disney Company, an additional
$50 million.
Walt Disney's chief executive, Michael Eisner, has made it clear he wants to squeeze
more money from his $19 billion, third-place TV network, which is struggling to make
a profit this year... Meanwhile, Mr. Eisner has had to sit on the sidelines and watch
the merger of CBS and Viacom. This new mega-company, which includes its own theme
parks and movie and television production units, is a new corporate rival for Disney.
For ABC's '99-'00 prime-time season, the running time of sitcoms will be shortened
from 22 minutes to 21 or even lower, ABC producers said.
Marshall Herskovitz, the co-creator of Thirtysomething, whose Once and
Again debuts on ABC this fall, was not pleased with the time-shaving edict. "I
think, unfortunately, it fits into the context of the corporate theory of the late
20th century, which is to bow to the immediate needs of stockholders to the detriment
of the long-term health of the corporation," Mr. Herskovitz said. "Eventually,
they're going to scare away audiences. They're competing with cable shows, some of
whom don't have any commercials. When an audience has to wait three, four or even
five minutes before the program comes back, there's likely to be erosion."
Sept 24th, 1999
DEADLINES? WE DON' NEED NO STEENKIN' DEADLINES!
Yes, once again, the FCC has pushed LPFM to the back burner
and extended the Reply Comments deadline all the way out to November 5th, 1999.
The FCC has claimed that it was so they could wait on the outcome of the Digital
Radio proposal, but they've known about that for far too long to pull this kind of
stunt after their deadline had already passed. This is, no doubt, quite upsetting
to all the people and organizations that have busted their collective butts to meet
the FCC's own deadlines. People have worked long and hard and taken the FCC at their
word. We here at ARD see no valid reason whatsoever why this extension was made,
but thanks to some hard work by our friend Alan we found out the following explanation:
FCC rules hold that when an extension request is on the table (as there was here),
a decision by the Commission on the request must be made no later than two days prior
to the deadline. If no action is taken, the extension is effectively granted (much
like a governor or president allowing a bill to become law without a signature).
Should you be displeased with this action by the FCC you'll be wanting to write
them a letter of opinion, don't you think?
Sept 17th, 1999
TODAY IS THE DEADLINE for filing Reply Comments
on Docket 99-25 (LPFM Proposal). You did remember to file your comments, right?
The FCC LPFM page is located at:
http://www.fcc.gov/mmb/prd/lpfm/
TRIBUTE: RADIO ACTIVIST, BILL PFEIFFER
Let us all remember the good actions of Bill Pfeiffer -- creator and moderator
of the Airwaves Broadcast Journal, Airwaves.com and the rec.radio.broadcast newsgroup
-- he was killed in a traffic accident at the beginning of the month in the Faribault,
MN area, where he lived.
INDIGO GIRLS, OTHERS LOBBY FOR LPFM
full story online at SonicNet
A group of rock musicians plans to send a letter to the Federal Communications
Commission on Thursday (Sept. 16) supporting low-power radio stations, according
to former Tsunami singer Jenny Toomey, an organizer of the effort. Signers include
the
Indigo Girls' Amy Ray, ex-Minutemen bassist Mike Watt, Fugazi's Ian MacKaye and Patti
Smith guitarist Lenny Kaye. "Fans of critical genres including classical, jazz,
bluegrass, reggae, opera, folk or punk are regularly left out of [current radio]
programming -- not to mention the myriad ... artists whose music does not fit into
any ... format," the letter reads. The FCC is studying a proposal to license
a new breed of
small, community-based stations, ranging from 1 to 1,000 watts power. The Low Power
Radio Coalition of musicians is also planning a series of concerts across the country
Oct. 14ó24 called "Left Off the Dial: Ten Days for Low Power Radio."
SCOTT GINSBURG ACCUSED OF INSIDER TRADING
story from R and R Online
The Securities & Exchange Commission has filed a lawsuit against the former
Chancellor Media CEO, accusing him of passing inside information to his brother and
father. Ginsburg is accused of telling his brother, Mark, that EZ Communications
was for sale. The suit claims Mark then told his father, Jordan Ginsburg, about the
sale, and the two purchased 73,800 EZ shares. Although Evergreen was among the bidders
for EZ, the company was eventually purchased by American Radio Systems. Mark and
Jordan Ginsburg reportedly made about a million dollars on the deal. The SEC says
Scott Ginsburg again tipped his brother to Evergreen's pending acquisition of Katz
Media Corp., for which Mark Ginsburg made a $729,000 profit. The SEC wants the three
to repay $1.8 million in profits. Evergreen Media eventually became Chancellor Media
(now AMFM Inc.). Scott Ginsburg resigned from Chancellor last year and is now CEO
of Digital Generation Systems. None of the three could be reach for comment.
VIACOM BUYS CBS FOR $35 BILLION
full story online at CBS Marketwatch1
full story online at Fox Marketwire
full story online at ABC News
Viacom said it will buy CBS Corp. for $35 billion in stock, adding the largest
U.S. network to its group of entertainment businesses in the biggest media deal ever
and making their combined Viacom/CBS company the most influential
provider and distributor of entertainment on the planet.
If approved, the deal would combine the broadcasting strength of CBS -- its TV stations
and huge radio network -- with the cable and Hollywood assets of Viacom, which owns
MTV and Paramount. Together, the companies have a market value of some $80 billion.
"We want to be a global powerhouse, and we're on our way," CBS Chief Executive
Mel Karmazin said at a packed press conference at the St. Regis Hotel in New York
City. "We are the 21st-century media company."
"When you think about the new Viacom, you only have to remember
a single number, that's number one," Redstone said. "We will have the number
one cable network group, the number one radio group, the number one outdoor advertising
company, the number one broadcast network, the number one provider of rentable home
entertainment. The new Viacom will be the number one outlet on the planet to connect
advertisers with the people they need to reach."
The company will own the CBS network, the top-rated network last season,
along with Paramount Pictures, Simon & Schuster Publishing, UPN network
(50 percent), MTV, VH1, Nickelodeon, Blockbuster Video, five theme parks, Showtime
Networks, Interest in Comedy Central, The Nashville Network, Country Music Television,
Interest in Marketwatch.com, Majority interest in Infinity Broadcasting (radio),
37 percent of MarketWatch.com and 21 percent of SportsLine USA.
The deal also reunites two companies split apart three decades ago by government
rules, eliminated a few years ago, aimed at preventing networks owning their
own programming
MEDIA MERGER CHRONOLOGY
full story online at Fox Marketwire
A chronology of recent major mergers and acquisitions that have shaped the media
industry:
Jan. 3, 1986 -- Capital Cities Communications Inc. purchases American Broadcasting
Cos. for $3.5 billion to create Capital Cities/ABC Inc.
June 9, 1986 -- General Electric Co. buys RCA Corp., parent company of National
Broadcasting Co. and NBC television network for $6.4 billion. At the time, the deal
was the largest non-oil acquisition in U.S. history.
Nov. 7, 1989 -- Sony Corp. buys film and television producer Columbia Pictures
Entertainment Inc. for $3.4 billion.
Jan. 10, 1990 -- Warner Communications Inc. and Time Inc. complete $14.1 billion
merger, creating world's biggest media conglomerate.
Jan. 3, 1991 -- Matsushita Electric Industrial Co. of Japan buys MCA Inc.
for $6.9 billion.
Sept. 31, 1993 -- The New York Times Co. buys Affiliated Publications Inc.,
parent company of The Boston Globe, for $1.1 billion, the biggest takeover
in U.S. newspaper history.
July 7, 1994 -- Viacom Inc. buys Paramount Communications Inc. for $10 billion
after winning a bidding war against QVC Inc. to buy the movie, publishing and sports
company.
Aug. 29, 1994 -- Viacom Inc. buys video rental chain Blockbuster Entertainment
Corp. for $8 billion.
June 5, 1995 -- Seagram Co. buys MCA Inc. from Matsushita for $5.7 billion
and renames it Universal Studios.
Nov. 24, 1995 -- Westinghouse Electric Corp. buys CBS Inc. for $5.4 billion.
Feb. 9, 1996 -- Walt Disney Co. buys Capital Cities/ABC for $19 billion, creating
a media conglomerate in movies, television and publishing.
Oct. 11, 1996 -- Time Warner and Turner Broadcasting System complete $7.6
billion merger.
Dec. 31, 1996 -- Westinghouse Electric Corp.'s CBS unit buys Infinity Broadcasting
Co. for $4.7 billion, combining the nation's two biggest radio station operators.
Dec. 1, 1997 -- Westinghouse Electric Corp. changes name to CBS Inc. shortly
after deciding to sell its traditional businesses such as power-generation equipment
and light bulbs.
Dec. 9, 1998 -- CBS Corp. raises $2.9 billion by selling a 17 percent stake
in Infinity Broadcasting Corp., its radio and outdoor advertising business. The initial
public offering of stock is the largest ever in the media industry.
Dec. 10, 1998 -- Seagram Co. buys PolyGram NV music company for $10.4 billion.
April 1, 1999 -- CBS Corp. announces agreement to buy King World Productions
Inc., the leading syndicator of television programs, for $2.5 billion.
Sept. 7, 1999 -- Viacom Inc. announces deal to buy CBS Corp. for $34.5 billion
in what would be the biggest media marriage ever.
FCC GETS A SETBACK IN LPFM
full story online at Philly News
The FCC has had its first setback in a campaign against unlicensed radio stations,
courtesy of a law Congress passed six years ago to prevent government restrictions
on religion.
The odd stalemate, illustrating the sometimes unforeseen effects of legislation,
occurred last month in the FCC's move to shutter two unlicensed FM radio stations
broadcasting in Bethlehem and Lancaster.
For the FCC, which has strong powers to license the nation's radio waves to prevent
signal interference, such cases are traditionally a regulatory slam-dunk. FCC investigators
locate the source of the illegal radio signal, shut down the station, confiscate
the equipment and auction it off.
It did not turn out that way in the FCC's move against Bethlehem's Radio Luz and
Lancaster's Radio Vida.
True, the two Spanish-language stations have been silenced after one to two years
of operation. But two weeks ago a federal judge unexpectedly granted a request by
the attorney for the two stations that bars the FCC from selling off one of the station's
transmitters and equipment.
The reason? Radio Vida (Life) was the voice of the Iglesia Pentecostal Church,
and the FCC seizure of its equipment without a hearing violated the 1993 Religious
Freedom Restoration Act.
TM CENTURY PROVIDES PROGRAMMING
full story online at Excite News
TM Century, Inc. has signed a long-term agreement with Cumulus Broadcasting, Inc.
and their subsidiary BSI to supply music to all Cumulus radio stations and all BSI
clients.
Cumulus owns and operates over 246 radio stations in 45 media markets making it the
nation's 3rd largest radio group in terms of numbers of stations owned. Under the
agreement, TM Century will provide its GoldDisc(TM) music compilation libraries and
HitDisc(TM) weekly hit music service to all Cumulus owned and operated stations.
BSI, which produces software for managing a radio station's audio programming has
entered into an agreement with TM Century where all new BSI clients will have access
to TM Century's vast library of music for use in programming their radio stations.
TM Century's GoldDisc(TM) and HitDisc(TM) products are used by thousands of radio
stations world-wide and are also the source of music for the ABC, Westwood One, Jones
Radio and Radio One radio networks. Additionally, virtually every major syndicated
radio program uses GoldDisc(TM) and HitDisc(TM) services.
Earlier this year TM Century entered into a similar agreement with StarSystem, the
audio management system owned by AM/FM (formally Chancellor and Capstar). AM/FM owns
and operates 465 radio stations in 105 media markets, reaching over 66,000,000 listeners
a week.
THEFT BUST GETS PIRATE STATION
full story online at APB News
Authorities have pulled the plug on an illegal radio station
apparently tied to crooks who stockpiled stolen merchandise, including between
$750,000 and $800,000 worth of vehicle air bags, in a Hollywood warehouse, Broward
County sheriff's officials said today. Investigators recovered the stolen goods Wednesday
from two warehouse bays on Rodman Street, deputies said. In addition to between 800
and 1,000 air bags, investigators found a Range Rover, gold jewelry, a handgun and
counterfeit vehicle identification stickers in the warehouse.
Investigators believe the stolen merchandise is connected to a pirate radio station
that was shut down Tuesday, but authorities are not being clear on the connection
because of the ongoing investigation, she said.
KENNARD SUPPORTING LPFM
full story online at Washington Post
Federal Communications Commission Chairman William Kennard is pushing low-power
FM radio--tiny FM stations with broadcast ranges of a few blocks to a few miles--with
the vigor of a crusader. Currently, illegal "pirate" broadcasters with
low-power transmitters jump onto FM bands without approval from the FCC, which polices
the airwaves. Kennard wants to legalize and regulate them. In Kennard's vision, low-power
broadcasters will be organizations such as "churches, community groups and colleges.
It can give voice to those ideas not always heard," he said at a breakfast here,
"but which many yearn to hear."
On the other side of the argument are commercial broadcasters, keepers of an industry
that generates more than $14 billion a year. Kennard's vision is their nightmare.
Radio execs at the NAB conference suggested the Internet as an alternative to giving
a radio station to "every man, woman and child in our country," said William
Stakelin, president of Regent Communications.
When I pointed out to the assembled panel members--as a reporter in the audience--that
the very poor cannot afford a computer and a monthly Internet fee but certainly can
afford a cheap radio, they scoffed.
"Probably the same person who can't afford a computer has a cheap radio, and
the interference [from the low-power FM stations] will cause them to lose their favorite
station," said Entercom's Field.
When I said that many of the low-power advocates want to broadcast information about
health or community organization or immigration, Saga's Christian replied: "What
are you going to do with the other 23 hours in a day?"
FURTCHGOTT-ROTH: ANTI-REGULATORY?!
full story online at CBS Marketwatch
(Editor: Yes, obviously diversity in broadcasting is based on the demographic makeup
of the shareholders! Why didn't we realize that before?!!)
At least one leading regulator isn't so sure there's an increasing anti-regulatory
cloud over the broadcasting industry despite the Federal Communications Commission's
recent loosening of several long-standing station-ownership rules.
"A lot of people think these rules are deregulatory, but I'm not sure,"
Commissioner Harold Furchtgott-Roth told CBS MarketWatch.com at the National Association
of Broadcasters convention in Orlando, Fla. While some observers have raised anti-trust
concerns, he said he doesn't thinks it's the FCC's place to deal with them. The antitrust
division of the Justice Department usually handles such issues.
Furchtgott-Roth said diversity of voice in broadcasting is "difficult to measure,"
since so many radio stations are now owned by large corporations. The FCC has no
idea how many individual shareholders in such companies are minorities or women,
he said. Furchtgott-Roth also believes women and minorities may be sitting on more
corporate boards than is revealed by estimates. "If the estimate is 3 percent,
it may very well be much higher than that. But we don't know." When asked whether
he's in favor of the Newspaper Association of America's recent petition to get the
Commission to do away with newspaper-T.V. ownership restrictions, Furchtgott-Roth
said he'd prefer abandoning all broadcast-ownership rules.
USA NETWORK LOOKING TO BUY?
full story online at Cableworld
USA Networks, Inc. chairman Barry Diller is having discussions with a number of
media companies in the wake of loosened Federal Communications Commission rules pertaining
to broadcast station ownership.
"USA is in talks with several broadcasters and exploring a number of options,"
said Adrienne Becker, a USA spokesperson.
The news did not come as a surprise to many industry watchers and analysts, given
Diller's penchant for making deals, and the fact that the company owns 13 television
stations.
And according to a Wall Street Journal article published on the week of Aug. 30,
which cited sources close to the situation, USA's talks pertain to buying stations
or putting them into a partnership. The WSJ report mentioned Walt Disney Co.'s ABC
Inc. as one media company in particular that is engaged in talks with Diller.
CUMULUS BUYS BSI
full story online at Excite News
Cumulus Media Inc., the nation's third largest owner and operator of radio stations
(based upon the number of stations owned or to be acquired pursuant to pending acquisition
agreements), announced that it had agreed to acquire Broadcast Software International
(BSI), a Eugene, Oregon-based developer of digital audio software.
BSI is a software development company specializing in digital audio applications
for broadcast radio and television as well as for Internet broadcasters. More than
1500 broadcasters worldwide currently use BSI's core product, the WaveStation(R)
digital studio system. WaveStation software allows a PC to store music and advertisements
and manage all aspects of radio station audio operations, replacing record, tape
and CD players, cart machines and other analog and electro-mechanical devices. In
July, Cumulus announced it would standardize its radio station group on BSI's products.
Cumulus Media is the parent company of Cumulus Broadcasting, Inc., which along with
its other subsidiaries owns and operates radio station clusters in mid-size markets.
Assuming the completion of all pending acquisitions, Cumulus Media will own and operate
246 radio stations in 45 U.S. media markets. The Company commenced operations May
22, 1997.
RADIO SET TO GO DIGITAL
full story online at ABC News
A stereo that reveals the title and artist on a digital
screen as the song plays. Deejays promoting products on air -- then sending electronic
coupons for the items to listeners over personal computing devices. A car radio that
displays real-time traffic reports and stock quotes as they are streamed over the
airwaves.
After decades of minimal fine-tuning, the world of radio is finally headed for a
makeover.
Companies behind the digital radio revolution say they are on the way to making a
long sought vision a reality: CD-quality sound for FM listeners, less interference
for AM listeners and prospects for a whole host of new data services.
Using the language of computers -- 0s and 1s -- to transmit information, the digital
signal is less susceptible to interference and more efficient. Radio airwaves
have enough bandwidth to carry large volumes of digital data -- more than existing
wireless technology. That opens the door for a new breed of radios that can give
listeners much more than sound.
CONTENT PROVIDER RIDES BUYOUTS
full story online at Portland Business Journal
A month doesn't go by without a national radio network gobbling up locally owned
radio stations. And NBG Radio Network is cashing in on it.
The Portland-based company has seen its revenue jump 175 percent, from $800,000 in
1997 to $2.2 million last year, by selling its 35 syndicated radio programs to 1,700
radio stations nationwide.
Limited by money and staff, independent radio stations rely on NBG's country, rock,
news and shock-talk shows to supplement their programming and compete with the big
radio chains. Publicly traded networks buy the lower-cost syndicated shows to produce
a greater profit for investors.
"There's a lot of consolidation going on in radio," said Steve Sears, the
vice president of programming at NBG. "This is the only way an independent has
of going against a big radio group. We can give the little guy a syndicated program
that helps them compete."
The downside is that radio stations are less and less local, as money drives the
programming.
NBC RUMORED TO BUY PAXSON
full story online at Cableworld
In the wake of newly issued FCC broadcast station ownership rules, a flurry of
rumors hit Wall Street during the week of August 23, citing a variety of media companies
that are reportedly in discussions about buying each other.
Rumor has it that Paxson Communications Corp., for one, is being eyed by General
Electric-owned broadcast network NBC as an alternative programming outlet
Paxson has admitted that the loosened FCC ownership rules spurred the company on
August 9, to retain investment bank Salomon Smith Barney "to explore potential
strategic alliances -- including a merger or sale of an equity stake in the company
among other possibilities."
On Aug. 5, the FCC loosened existing broadcast station ownership rules, allowing
a single broadcaster to own two stations in a market under certain restrictions.
But analysts said that NBC would not be able to wholly-own Paxson since it is already
near the 35% national reach limit that is mandated by the federal government.
However, Cheen believes that a raising of this cap could come as early as this
December. "That's the next shoe to drop," he said.
CITADEL BUYS FIVE
full story online at Excite News
Mid-sized market radio broadcaster Citadel Communications Corporation and its
principal operating subsidiary, Citadel Broadcasting Company (Citadel), announced
that it has entered into a definitive agreement to acquire all of the partnership
interests in Caribou Communications Co., which owns five radio stations in Oklahoma
City. Under the terms of the agreement, the total consideration will be approximately
$60 million in cash.
Upon consummation of the agreement, Citadel will add KATT-FM, KYIS-FM, KCYI-FM, KNTL-FM
and WWLS-AM in Oklahoma City, the nation's 53rd largest market, to its portfolio
of 124 mid-market stations. Citadel is a radio broadcasting company that, upon completion
of pending transactions, will own or operate 88 FM and 36 AM stations concentrated
in 23 mid-sized markets.
ALLIANCE BUYS ONE
full story online at Excite News
Alliance Broadcasting Group Inc. announced that the company has acquired radio
station WCTG 840 AM in Columbia, S.C.
Alliance is currently operating the station under an LMA with the contract to purchase
to be filed with the FCC shortly.
WCTG is a 50,000 watt radio station and is the most powerful AM station in the capital
city. According to Ron Nickell, Alliance vice president/Programming, "The station
is being promoted as Columbia's Talk Giant with an unusual mix of talk hosts, a format
we call 'Black and White Radio,' which features a combination of African-American
and white talk show hosts."
Alliance currently owns and/or operates 12 radio stations in Michigan, Florida, South
Carolina and Gary/Chicago.
STATION OPERATOR WANTS EQUIP BACK
full story online at Cleveland Live
The operator of an unlicensed radio station that beamed Caribbean-flavored broadcasts
to Cleveland's Puerto Rican community is asking a federal appeals court to return
transmitters seized by federal agents last summer.
"I'm trying to get the equipment back so they can apply for a license and go
back on the air officially," said lawyer Paul A. Mancino, who represents a shuttered
FM station that called itself "WPRC."
For several months during 1997 and 1998, WPRC was on the air at 91.9 FM.
News, chat about Puerto Rico, and Hispanic music flowed out of a studio at Belinda's
Bar on Madison Ave. on Cleveland's West Side.
The Federal Communications Commission closed WPRC last August, along with three other
small, unlicensed stations aimed at the Hispanic community. There were complaints
that the broadcasts interfered with aircraft and radio frequencies assigned to other
broadcasters.
LOW POWER TO THE PEOPLE
full story online at Mother Jones
When two agents from the Federal Communications Commission knocked on Scott Willoughby's
door last November, the pirate-radio disc jockey wasn't exactly surprised to see
badges flashed in his face.
More than a year before, the FCC had stepped up its campaign to shut down hundreds
of unlicensed stations like Willoughby's "Radio Free Minturn," a quirky,
"genre-free" station he'd started in that rural Colorado town. Willoughby
had read about the wave of FCC busts on the same "Free Radio" Internet
sites he and his cohorts had scoured while cobbling together the homemade broadcast
studio and 100-watt FM transmitter plainly visible in his living room.
"The FCC was the enemy," says Willoughby, who ceased his eclectic broadcasts,
a musical mix ranging from Patsy Cline to Spearhead and Vivaldi, only after the agents
threatened him with a $100,000 fine and up to a year in jail. "They were enforcing
unjust [regulations], favoring big business, and undermining our most basic constitutional
right of free speech."
MONOPOLIES IN THE AIR
full story online at LA Times
Last year, FCC Commissioner William Kennard proposed closing loopholes that allow
TV networks to operate more than one station in the same area. He rightly argued
that doing away with the shadowy patchwork of waivers that federal regulators began
permitting in 1989 would help ensure diversity in TV station ownership and variety
in program content.
Broadcasters, however, howled in opposition, and the results of their clout will
be evident when the Federal Register publishes new rules that, far from closing loopholes,
do away with the nation's dual ownership ban in most of the nation's top 50 media
markets.
Kennard's retreat, which came after legislators sympathetic to broadcasters threatened
to undermine the FCC's regulatory authority for good, could accelerate TV industry
consolidations that have in the last decade made it hard for minorities, women and
new parties in general to buy stations.
The danger is that TV will now experience the fate of radio after Congress lifted
that industry's ownership caps in 1996. The result was a buying spree by major radio
companies that raised station prices beyond the means of local owners and contributed
to the current dearth of independent voices on the radio dial.
ENTERCOM BUYS SINCLAIR
full story online at Excite News
Entercom Communications Corp. announced the completion of a definitive agreement
to purchase 46 radio stations and 300,000 shares of stock in USA Digital Radio, Inc.
from Sinclair Broadcast Group, Inc for $824.5 million.
The definitive agreement reflects the previous July 26, 1999, announcement by the
parties of a letter of intent for Entercom to purchase 43 stations and 300,000 shares
of stock in USA Digital Radio, Inc. from Sinclair plus a subsequent agreement to
purchase an additional three AM radio stations in Greenville/Spartanburg, SC from
Sinclair for $3 million.
The definitive agreement covers 46 stations (16 AM and 30 FM) in nine markets including
Kansas City, Milwaukee, New Orleans, Memphis, Buffalo, Norfolk, Greensboro/Winston-
Salem/High Point, Greenville/Spartanburg and Scranton/Wilkes-Barre. Seven of the
nine markets rank among the top 50 markets in the United States. Upon completion
of the acquisition, Entercom will become the fifth largest radio broadcasting company
in the United States based on 1998 proforma revenues.
AMFM SELLS 4 IN WASHINGTON
full story online at Excite News
AMFM Inc. and New Northwest Broadcasters, Inc. (NNB) announced today that they
have entered into a definitive agreement whereby NNB will purchase four radio stations
in Richland, Kennewick and Pasco (Tri-Cities), Washington from AMFM's wholly owned
subsidiary, Triathlon Broadcasting Company, for $4 million.
Under the terms of the agreement, NNB will acquire KIOK-FM, KEGX-FM, KALE-AM and
KTCR-AM in the Tri-Cities, Washington market, the nation's 207th largest radio market.
Commenting on the agreement, James E. de Castro, Vice Chairman of AMFM Inc. and President
and CEO of AMFM Radio, stated, "This transaction reflects our intention to optimize
the size and performance of AMFM's radio station portfolio. In this regard, we may
execute other strategic swaps, acquisitions or divestitures which we believe allow
us to best leverage the company's resources and focus on those assets which can provide
the greatest return to shareholders."
New Northwest Broadcasters is a growing, Seattle-based radio broadcasting company
headed by Chief Executive Officer Michael O'Shea and President Ivan Braiker. Reflecting
announced transactions, NNB will own, or operate under local marketing agreements
43 radio stations in nine markets.
LPFM DRAWS IN DJ
full story online at Nando.net
A landmass about 15 miles long, Vashon Island has two police cars, one fast-food
chain and relies on a ferry system to get to mainland Seattle. But, insists resident
William Morosoff, the island still has a vibrant culture - kept alive by artists,
activists and local merchants - and one that should be represented by its very own
radio station. He wants the Federal Communications Commission to adopt rules that
would create thousands of new low-power FM radio stations across the country. "The
only time I hear the word Vashon on the radio or TV is if there is a serious ferry
problem," says Morosoff, an aerospace consultant who runs a bed and breakfast
on the island. "The island is considered a non-place."
August 8th, 1999
FCC CHANGES OWNERSHIP RULES - AGAIN
full story online at Yahoo News
full story online at Miami Herald
full story online at Detroit Free Press
full story online at MSNBC
Federal regulators eased restrictions on the number of local radio and television
stations that a broadcasting company can control.
With a 4-1 vote, the Federal Communications Commission relaxed a rule that currently
forbids a single company from owning more than one local TV station in a given market.
Under the changes, a company could own two TV stations in the same market if there
were at least eight other competitors after the deal and if one of the stations is
not among the market's top four.
Common ownership could also be permitted if one of the stations was failing or was
not yet operating.
The vote also provided leeway on a rule that prohibited ownership of radio and TV
stations in the same market. The amended rules allow a company to own up to two TV
stations and six radio stations in a market as long as there are at least 20 independent
media voices - including broadcast stations, daily newspapers and cable services.
The FCC also more clearly defined ownership by clamping down on local marketing agreements
that allow one TV station to operate another TV station in the same market, but not
actually own it. Such agreements from before November 1996 would be respected until
2004. Other stations with such agreements would have two years to comply with new
ownership rules or would be forced to terminate them.
Commissioner Harold Furchtgott-Roth dissented, saying the FCC could not adequately
define how the regulations would preserve
NEW ARBITRON REPORTING POLICY
full story online at Yahoo Biz
Big City Radio will now reap the benefits of reporting its multiple station simulcasts
as a total, combined radio entity as a result of a newly-adopted Arbitron policy.
This policy enables multiple simulcast radio stations to report as one total line
instead of as individual stations. The end result of this change will enable the
company's radio stations in each of its markets to be ranked as a single station
in the Arbitron ratings.
KPFA BACK ON AIR
full story online at CNN
full story online at Nando.Net
Free speech redoubt KPFA-FM in Berkeley went back on the air Thursday after a
lengthy lock-out sparked by debate over the future of America's oldest listener-supported
radio station.
As regular programming resumed, however, community activists vowed to continue their
struggle against KPFA's corporate parent, the nonprofit Pacifica Foundation, which
has angered many KPFA supporters by attempting to exert more control over the station's
eclectic local mix of alternative programming.
KPFA's HISTORY
full story online at SF Gate
Correction: A column by George Voigt in The Chronicle on April 15, 1949, wrongly
predicted that Berkeley-based radio station KPFA's advertising policies would "lead
the station to an early death." The Chronicle -- almost exactly 50 years later
-- regrets the error. To judge by the fascinating and timely new book "Pacifica
Radio: The Rise of an Alternative Network," the Bay Area airwaves have changed
in revolutionary ways since 1949.
PUBLIC TV SELLING MEMBER LISTS
full story online at Pioneer Planet
The Corporation for Public Broadcasting said Tuesday that 26 member public television
stations appear to have exchanged membership lists with political organizations.
Testifying at a politically charged congressional hearing, Robert Coonrod, the corporation's
president, said a recent survey found that 53 of 75 television stations in large
markets used third-party brokers to exchange membership lists with other nonprofit
organizations. Of those, he said, fewer than 30 stations appear to have exchanged
names with political organizations aligned with either the Democratic or Republican
parties.
Later, the corporation narrowed the number to 26. Officials did not identify the
stations, saying that the survey information was largely anecdotal and needed further
verification. A report from the corporation's inspector general is due later this
year.
B92 BACK ON AIR
full story online at CBC News
full story online at RFERL.org
Serbia's leading independent radio station is back on the air more than four months
after it was taken over by the government of Yugoslav President Slobodan Milosevic
on the day NATO began its air campaign against Yugoslavia. Radio B2-92 --
the new name for Radio B-92 -- resumed its broadcasts this morning with coverage
of two stories not mentioned by Serbia's official media: a speech by Serb opposition
leader Dragoslav Avramovic and a visit to Moscow by Montenegrin President Milo Djukanovic,
a critic of Milosevic. B2-92's slogan is "Don't trust anyone. Not even us."
CITADEL BUYS KOOJ
full story online at Excite News
Citadel Communications Corporation announced that it had signed a definitive agreement
with KTBT Radio Broadcasting Company, Inc., whereby Citadel will acquire KOOJ-FM
in Baton Rouge, Louisiana, for $9.5 million. Citadel presently owns and operates
WXOK-AM, KQXL-FM, WEMX-FM, WKJN-FM and WIBR-AM in Baton Rouge, the nation's 82nd
largest radio market.
BIG CITY RADIO GETS 2 MORE
full story online at Yahoo Biz
Big City Radio Inc. announced that it has completed the acquisition of two of
the four FM radio stations that are being acquired in Phoenix, Ariz., one of the
fastest-growing markets in America. The acquisition was announced May 3, 1999.
Employing its unique Synchronized Total Market Coverage (STMC®) technology to
combine these four signals into two stations, Big City Radio expects to enhance the
station's value by generating significantly higher ratings and revenue than the stations
previously generated on their own. Big City Radio now owns fourteen properties
that have been combined into five radio stations in four major markets.
Big City Radio Inc. owns and operates radio stations in four of the largest radio
markets in the United States. Its recently acquired radio broadcast properties are
located in or adjacent to major metropolitan markets and utilize innovative engineering
techniques and low-cost, ratings-driven operating strategies to develop these properties
into successful metropolitan radio stations.
COX RADIO STILL LOOKING
full story online at CBS MarketWatch
Cox Radio President and Chief Executive Bob Neil says the company will actively
pursue other radio properties in the wake of its losing bid for 43 Sinclair Broadcast
Group stations sold to Entercom Communications.
SINCLAIR SELLS TO ENTERCOM
full story online at Yahoo Biz
Sinclair Broadcast Group Inc. plans to sell 43 radio stations in nine markets
to Entercom Communications Corp. for $821.5 million in cash.
The deal would be the latest in a wave of sales in the radio industry since federal
limits on how many stations a single company may own were relaxed. Entercom, based
in Bala Cynwyd, Pa., near Philadelphia, already owns 42 radio stations in six markets.
The sale would also allow Sinclair to concentrate on its TV operations. The Baltimore-based
broadcaster owns or provides programs for 59 TV stations in 38 markets.
Under terms of a letter of intent, Entercom would also buy $5 million worth of advertising
on Sinclair's television stations during the next five years and pay for up to $2
million in capital improvements that Sinclair had committed to undertake.
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