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Engineering Extra
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Issue: Jul. 03, 2008
Top Stories
Alliance Expands HD-R Marketing
The HD Digital Radio Alliance has extended its marketing aimed at converting consumer interest in HD Radio to actual radio purchases.
While critics say consumer interest and awareness are low, awareness of HD Radio broadcasts among radio listeners topped 75% in 2007, according to data from Clear Channel-owned Critical Mass Media, with awareness among current or likely auto buyers at 31% according to J.D. Power.
The alliance campaign, including a 13-week flight of ads on 700 or so alliance stations and valued by the group at $75 million, incorporates cellphone texting and promotes an online guide to HD main and HD2 stations that can be printed in-store by retailers, car dealers and consumers.
Many of the ads invite customers to text to 34343 for a chance to win one of 200 HD Radios. Information available via cell within the mobile texting initiative include an iTunes Tagging tutorial, a $50 rebate on a receiver and the opportunity to participate in interactive polls.
Diane Warren says the alliance is seeking to convert consumer awareness into action by helping retail and auto sales people better access to info to close sales. “And by opting in, consumers now have a one-stop shop: They can choose and get a discount on a radio, find the station in their market they like and even get information on iTunes Tagging. We’re now reaching consumers via the radio, on their phone, online and in stores.”
New features and special pages on HDRadio.com includes Instant Station Guides and new buyer’s guides.
The alliance also said traffic to that site continues to grow, with page views so far in 2008 exceeding all of 2006, the site’s first year. The site sees 2,700 unique visitors daily and those visitors spend an aggregate of 5,600 hours per month on the site.
The alliance created the mobile marketing portion of the campaign using 3Cinteractive.
Rush Renews; Hogan Calls Him a ‘Once in a Lifetime’ Talent
Liberals won’t be free of Limbaugh heartburn anytime soon.
The conservative talk icon and the man credited by some with reinvigorating AM radio formats has renewed his contract with Premiere Radio Networks and Clear Channel Radio. The contract length was announced as “many years in the future.”
Terms were not announced. Back in 2001, according to a past USA Today report, Rush Limbaugh signed the richest deal in radio history at the time, an eight-year, $285 million contract. Other sources have reported the earlier deal as being closer to $300 million.
Rush has 20 million listeners weekly on about 600 stations.
The contract is for the continuing syndication of “The Rush Limbaugh Show” and “The Rush Limbaugh Morning Update” feature. Premiere Radio also continues to manage “The Limbaugh Letter” monthly newsletter and RushLimbaugh.com.
John Hogan of Clear Channel said in the statement, “Broadcasters of Rush’s quality come along once in a lifetime.”
Limbaugh is a four-time recipient of the NAB Marconi Award for Syndicated Radio Personality of the Year and is already in the Radio Hall of Fame and National Association of Broadcasters Hall of Fame.
RFE/RL Romanian-Language Service to Close Next Month
We told you here last week that the BBC World Service will shut off its Romanian-language service after 68 years.
Now another service to that population is shutting down. Radio Free Europe/Radio Liberty said its Romanian-language service will cease broadcasting to that country on Aug. 1.
The Broadcasting Board of Governors is closing the service as RFE/RL moves resources toward efforts in Iran, Iraq, Afghanistan and central Asia. Romanian broadcasts to Moldova and the Transdniester region will continue.
RFE/RL says media competition has soared since Romania joined the European Union last year, with more than 70 daily newspapers, 300 private FM stations, cable TV and the Internet now available in the country.
The Romanian Service began experimental broadcasting in July of 1950, and was up and running by the middle of the following year.
President Jeffrey Gedmin saluted RFE/RL employees who “displayed extraordinary bravery, dedication and commitment to a free and independent press in Romania, often at great risk to themselves and their families. Their contributions to the collapse of communism and in helping to pave the way for a democratic Romania’s entry into institutions such as NATO and the EU will never be forgotten.”
A 2006 Romanian government report found that communist rulers may have been responsible for the deaths of three RFE/RL Romania service directors, the broadcaster said.
BBG Governor Jeffrey Hirschberg stated, “As the threat of communism recedes in Europe, RFE/RL’s mission is changing. The latest threat to democracy and free expression is authoritarianism.”
Rehr Calls on Radio to ‘Keep the Pressure On’
David Rehr says several thousand broadcasters responded to NAB’s call to action and submitted comments to the FCC highlighting their efforts to provide local service and programming.
He made the estimate during a keynote address at the 2008 Conclave Learning Conference, where Rehr, the president/CEO of the National Association of Broadcasters, also updated and expanded on strategies he outlined earlier this year for radio and the NAB to pursue.
He also promised to continue aggressive opposition to what NAB calls a performance tax on radio.
“We will not let down our guard,” Rehr said. “The momentum of our pro-radio, anti-performance tax resolution is strong.” That fight, he said, will be “a multiyear effort,” and he called on attendees to ask elected officials to cosponsor the “Local Radio Freedom Act,” H. Con. Res. 244 and S. Con. Res. 82.
“Momentum is on our side,” Rehr said. “The House sponsors of the performance tax bill have admitted that they do not have the support to move this legislation this year. But we must keep the pressure on.”
Read the text of Rehr’s speech.
Technology
‘Spectrum Envy’: Who Wins and Loses
“Dennis Wharton of the National Association of Broadcasters denies that his industry hogs spectrum.”
Newsweek discusses competition for space on the spectrum and “spectrum envy” aimed at broadcasters who didn’t have to pay for space through auction, as users do now.
The story quotes telecom lawyers and others on who wins and who loses in the federal spectrum policy game.
Workbench Tech Tip of the Week
Radio World’s Workbench by John Bisset is one of the industry’s most-admired, and most-copied, columns. Find out why in each issue.
This one is from August 2007.
Jay Harrison offers yet another program that will set your computer clock. In fact, this program can make corrections once if minute if you wanted that kind of accuracy.
Best of all, the program is free.
Here’s the link: ravib.com/timesync.
Find thousands of helpful tech tips for radio engineers and managers in Workbench. E-mail your own tips to jbisset@bdcast.com. Submissions qualify for SBE recertification credit.
FCC/Regulatory
Visits to Portals Continue Over Proposed Sat Rad Merger
The lobbying for and against Federal Communication Commission approval of the satellite radio merger continues.
Sirius CEO Mel Karmazin and Richard Wiley, head of Wiley Rein, met with Commissioners Adelstein and Tate and their staffs last week to discuss the deal and urge its approval.
David Solomon — former FCC Enforcement Bureau Chief, now with Wilkinson Barker Knauer and an occasional RW contributor — met with staffers for Commissioner McDowell, Chairman Martin and members of the general counsel’s office recently on behalf of the National Association of Broadcasters.
According to a commission filing, they argued that the agency “may not lawfully act” on the merger application “until after certain documents relating to the apparent serious wrongdoing by ‘executive and senior-level employees’ of XM Satellite Radio Holdings Inc. and Sirius Satellite Radio regarding the operation of FM modulators/transmitters and/or terrestrial repeaters are made public and incorporated into the record of this proceeding.”
The companies and their receiver manufacturers apparently issued FM-modulated devices with power levels higher than allowable; some were said to have interfered with terrestrial radio signals. As RW reported, the FCC investigated and the devices were taken off the market and/or re-designed.
Both NAB and the satellite companies have said that some satellite terrestrial repeaters were in different locations or had different power levels than authorized.
XM Spent About $215,000 on Lobbying in First Quarter
XM Satellite Radio spent $214,530 in the first quarter lobbying for regulatory approval of its acquisition by Sirius Satellite Radio Inc. and on other issues.
That’s according to the Associated Press, which cited a recent disclosure report.
XM also lobbied on digital music copyright issues, according to the report filed with the House clerk’s office April 18. The company recently has settled copyright suits with several major record companies, which alleged that XM’s portable music player the Pioneer Inno violated copyright agreements because it allowed users to record songs.
Besides Congress, XM lobbied the Federal Communications Commission, Justice Department and the Library of Congress in the first three months of the year.
Dems Push HD Radio, Non-Com Spectrum Requirements in Satellite Merger
Some Democrats in Congress this week supported the provisioning of a certain portion of satellite radio spectrum for non-com use as well as mandating HD-R in all satellite radios.
Five Democratic House members from Minnesota are concerned that an eight-channel set-aside for non-commercial channels is not enough should the XM/Sirius merger be approved.
The five — Reps. Timothy Walz, Betty McCollum, Keith Ellison, Collin Peterson and James Oberstar — signed a letter to Federal Communications Commission Chairman Martin asking the agency to set aside 25 non-com channels should it approve the merger.
The five also support requiring the merged satcaster to include HD Radio capability in future interoperable sat rad receivers, as do Democratic senators who wrote Martin earlier this week.
“This would encourage competition in the digital terrestrial market and would leverage the millions of federal dollars already invested in the conversion of non-commercial stations to HD Radio technology,” the five lawmakers wrote.
They joined three Dems from the Senate — John Kerry, Ben Cardin and Claire McCaskill — who are concerned about the tentative merger conditions they’ve been reading about in the Washington Post. Although the merged entity has agreed to lease 12 channels (roughly 4% of its capacity) and set aside 12 more for non-com programming, “we believe that these commitments are not enough to ensure a viable competitor,” they stated.
The FCC should require the merged entity to lease as much as 50% of its satellite system capacity, and no less than 20%.
Also, allotting 12 channels for minority programming out of a possible 300 channels “squanders” an opportunity for truly enhanced minority ownership or control created by the proposed merger, they stated.
The three also support mandating integrated HD Radio in all satellite radios.
Cross-Ownership Restriction Is Part of House Funding Bill
The House Appropriations Committee last week passed a funding bill that would ban the FCC from implementing its newspaper cross-ownership rule ordered in December.
The bill includes $338.8 million for the FCC for fiscal 2009, which begins Oct. 1.
NAB opposed the measure, included in the bill, that would prohibit the commission from using the funds to implement the new rule.
The bill also includes $20 million for DTV education.
The legislation still needs Senate passage, and many appropriations bills pass through joint House-Senate conference committees to hammer out the differences in the two chambers’ bills.
Meanwhile, Rep. Jay Inslee, D-Wash., has introduced a House version of the Senate resolution of disapproval on the ownership rules. The Senate version passed in May.
— TV Technology
Business
WorldSpace Gets a Bit More Time on Debt Payment
Cash continues to be tight at WorldSpace. The company has announced it got an extension on a debt payment until the middle of next week as it works through continuing liquidity pressures.
The satellite radio firm, which operates internationally but is based in Maryland, said it agreed with four holders of debt to defer $19.86 million that is due until next Wednesday.
Each of the lenders will receive five-year warrants exercisable for shares of WorldSpace stock at $1.55 per share.
The organization announced an earlier deferral in June. The month before that, Chairman/CEO Noah Samara expressed concern about the company’s cash position and its pending payment obligations.
Radio Could Get a Beer Hangover
Will radio execs be hoisting a few Buds as they salute the coming holiday weekend?
Maybe not. At least, this week’s advertising news isn’t the kind of revenue outlook that U.S. commercial radio wants to hear, as Advertising Age reports it.
The magazine said Anheuser-Busch, a big backer of radio advertising, is “significantly slashing spending in the medium for the second half of this year as it embraces cost cuts to fend off a hostile takeover bid.”
“According to people familiar with the matter, A-B has begun to inform major station groups that it is cutting — and in some cases completely eliminating — its spot-radio buys for the remainder of this year in many markets.”
Subsequently, the St. Louis Post-Dispatch reported that the beer company is shifting some money budgeted for local radio during the summer, to TV ads and billboards in fall and winter. “The company says local radio is a valuable medium, despite audience erosion due to satellite radio. But Anheuser-Busch is trimming local radio spending to store up cash for national television later in the year,” the newspaper reported.
“Anheuser-Busch has trimmed its radio spending to $4.2 million in the first three months of the year, compared with $4.8 million in the same period in 2007 — an 11.5 percent drop — according to TNS Media Intelligence. Anheuser-Busch privately disputes the exact radio spending numbers from TNS but confirmed the trend.”
The paper said the changes are being made in support of marketing for Bud Light Lime and Budweiser American Ale.
NDS Would Go Private Under News Corp. Plan
Conditional access technology supplier NDS is in the financial news.
Rupert Murdoch’s News Corp., which is now the company’s majority shareholder, proposed at the end of June to take NDS Group Plc private in a transaction financed by private equity firm Permira.
The complex deal would leave News Corp. with a 49 percent stake, and Permira would own 51 percent of NDS, Reuters reported.
“The transaction has been fully negotiated between News Corp., Permira and NDS management,” News Corp. stated. “Permira has completed its due diligence, and all of the third-party financing is in place.” NDS said it appointed a committee of directors to review the deal.
NDS supplies digital technology and services to digital pay-TV platform operators and content providers. It has been on the radar of radio broadcasters as a supplier of conditional access systems for radio under which certain content and features could be locked by broadcasters, to be opened only by users who have permission.
Sirius Predicts $400 Million Combined Savings in 2009
Sirius Satellite Radio and XM Satellite Radio would enjoy combined savings of $400 million in 2009 if they merge.
In financial guidance for the investment community this week, Sirius said based on preliminary analysis, the combined companies would have net income of $300 million next year before interest, taxes, depreciation and amortization.
The combined company would achieve positive free cash flow — though not counting satellite capital expenditures — for the full year 2009, Sirius stated. To date, neither Sirius nor XM has reported positive adjusted EBITDA or achieved free cash flow for a full year, it noted.
“The upside potential from this merger is significant,” said Sirius CEO Mel Karmazin, who would be CEO if the companies combine.
If the merger goes ahead, Sirius will be the surviving parent and XM a subsidiary.
“The preponderance of XM’s existing debt will require refinancing in connection with the merger,” Sirius stated. “Because of the refinancing, the combined company expects XM to incur incremental interest expense as a result of refinancing certain of its debt.
“Principally as a result of this higher interest expense at XM, among other factors, substantially more of the free cash flow before satellite capital expenditures in 2009 is forecast to be realized at Sirius, the parent company, than at XM. In addition, Sirius and XM expect to refinance certain debt in 2009 that is scheduled to mature during that year.”
People News
PTEK Appoints Belanger VP, Sales
PTEK named Ernie Belanger vice president of sales, and says it will open a New York office.
Belanger will focus on expanding PTEK’s transmitter sales in the North American, government and military markets.
Prior to joining PTEK Belanger was vice president of sales and marketing at Armstrong Transmitter. He also is chairman of the National Association of Broadcasters Exhibitor Advisory Committee.
The California-based PTEK makes exciters, transmitters, antennas and related RF gear.
Hogan Renews for Five Years
When Clear Channel shareholders meet this month to consider a pending takeover, the company can be sure of at least one thing: John Hogan will still be on board running the radio operation.
Reuters reported this week that Radio Chief Executive John Hogan signed a five-year renewal. “Retaining Hogan is seen as a key step to shoring up company leadership after its $17.9 billion takeover by private equity funds Thomas H. Lee Partners and Bain Capital,” the news agency reported.
“This management team will be on point to compete successfully against newspapers, cable, television and all of our other competitors,” it quoted CEO Mark Mays writing in an internal memo to employees.
Hogan was tapped to head up Clear Channel Radio, replacing Randy Michaels, in 2002. He’d been Radio COO before that.
The special meeting of shareholders is set for July 24.
BE Names Raul Hun to Latin Sales Post
Broadcast Electronics appointed Raul Hun to regional sales manager, Latin America. He replaces John Schneider.
Hun has been employed at BE for more than 10 years. He was formerly the internal sales contact for BE’s customer base in Asia; and more recently its international sales engineer/resale coordinator for Latin America.
BE says Hun was instrumental in its introduction of HD Radio to Brazil, Mexico and Jamaica.
HipCricket Hires VP, Sales and Client Development
Mobile marketing company HipCricket appointed Dennis McCormick vice president of sales and client development.
He will lead its broadcast, brand and client development teams.
McCormick replaces Graham Knowles, a company founder, who is now director of business development.
McCormick has experience in broadcast sales for radio and television affiliates in Seattle. He formerly held positions as general sales manager of Entercom’s KIRO Newsradio and general sales manager, KSTW(TV). Most recently he was director of business development and client services as a partner with Seattle marketing firm Stanton & Everybody.
NFCB Stations Elect Three New Members to Board
Member stations of the National Federation of Community Broadcasters elected Geoffrey Blackwell, Martina Lynde and Chuck Taylor as new members of the board of directors.
Geoffrey Blackwell is a member of the Muscogee (Creek) Nation of Oklahoma, and also is of Chickasaw, Choctaw and Omaha descent. Currently Director of Strategic of Strategic Relations and Minority Business Development for Chickasaw Nation Industries, Blackwell was previously senior attorney in the Office of Intergovernmental Affairs at the Federal Communications Commission (FCC). He is on the Advisory Council of Native Public Media as well as the board of the National Small Business Association.
Martina Lynde recently concluded 12 years on the board at WOMR(FM) in Provincetown, Mass., the last six as board president. During her tenure, WOMR erected new studios, successfully applied for a new frequency for a repeater station and launched a successful capital campaign that raised the down payment for a new building.
Chuck Taylor hails from WTJU(FM) at the University of Virginia, Charlottesville, Va., where he has been general manager since 1993. He has a long history with the college station, having joined as a volunteer announcer in 1979 and working as volunteer program director from 1985-88 and 1991-92. He is president of the board of the Jefferson-Madison Regional Libraries and a past president for the Piedmont Council of the Arts.
The incoming board members replace Kim Carroll-Bosler, Ken Freedman and Mary Sando-Emhoolah, whose terms expired at the end of June. NFCB board members are allowed to serve two three-year terms.
Programming
NFCB to Offer Free Seminars to N.Y. Non-Coms
The National Federation of Community Broadcasters is offering free seminars for New York stations and those broadcasting into the state to train staff and volunteers in non-com radio on using new digital technology platforms to expand access to independent music.
The one-day seminars, called “New Technologies, New Music,” will be held in Manhattan on Sept. 27; Albany on Oct. 17; and Buffalo on Oct. 18. Topics include definitions of independent music, building digital libraries, hardware and software, metadata, payola/plugola and legal lessons on copyright and reporting.
Instructors include Ken Freedman, general manager of WFMU(FM) in Jersey City, N.J.; Jim Campbell, new media expert and head of Modular Media, a media consulting company; John Crigler and Melodie Virtue, communications attorneys with law firm Garvey Schubert Barer; and Gregg McVicar, host and producer of the nationally syndicated music program “Undercurrents,” and who wrote the curriculum.
Interested parties should apply via the NFCB Web site by July 15.
CBS Radio News Does Well in Murrows
Out of a dozen radio network/syndication categories, CBS Radio News took five in the latest Edward R. Murrow Awards honoring excellence in electronic journalism.
The Radio-Television News Directors Association announced winners.
In network radio, CBS Radio News was honored for Overall Excellence, Newscast, Spot News, Use of Sound and Writing, the latter for Dave Ross.
ABC News Radio, Mississippi Public Broadcasting and National Public Radio each won two Murrows; XM Satellite Radio also snagged one.
“Disaster coverage figured in many of the winning stories, both in radio and television, including reports on the Virginia Tech shootings and the Minneapolis Bridge collapse,” the RTDNA stated.
Awards will be presented at a dinner in October in New York.
Here is the full list of radio recipients:
RADIO NETWORK/SYNDICATION SERVICE
Overall Excellence: CBS Radio News
Continuing Coverage: ABC News Radio, Virginia Tech Shootings
Feature: Hard News: Mississippi Public Broadcasting, Emmett Till Apology
Feature Reporting: Mississippi Public Broadcasting, Kids Write the Blues
Investigative Reporting: NPR, Sexual Abuse of Native American Women
News Documentary: XM Satellite Radio, The Invisible: Children Without Homes
News Series: NPR, Rescuing the Wounded: Iraq to Germany
Newscast: CBS Radio News, News on the Hour
Sports Reporting: ABC News Radio, A Reason to Cheer
Spot News Coverage: CBS Radio News, Virginia Tech
Use of Sound: CBS Radio News, Bob Barker Retires
Writing: CBS Radio News, Dave Ross
RADIO: LARGE MARKET
Overall Excellence: WBAL(AM)
Continuing Coverage: KTAR(FM), Illegal Immigration
Feature Reporting: WNYC(FM), The Second Mom
Feature: Hard News: KGO(AM), The Golden Hour
Investigative Reporting: WTMJ(AM), Unlawful Restraint?
News Documentary: WBAL(AM), The Immortal Ironman
News Series: WBZ(AM), Teen Stress
Newscast: KIRO(AM), The Big Story @ 6
Sports Reporting: KMOX(AM), PlayBoys Pt. 4
Spot News Coverage: KRLD, North Texas Tornado
Use of Sound: KGO(AM), The Golden Hour
Web site: WTOP(AM/FM), wtopnews.com
Writing: WBZ(AM), Carl Stevens
RADIO: SMALL MARKET
Overall Excellence: KFDI(FM)/KFDI(AM)
Continuing Coverage: WVPS(FM), Climate Change
Feature Reporting: WFCR(FM), Love, War, and PTSD
Feature: Hard News: South Dakota Public Broadcasting, Fire Gel
News Documentary: WUOM(FM), Ashes to Hope: Overcoming the Detroit Riot
News Series: WSLU(FM), Farm to Farm, Family to Family
Newscast: WWL(AM)/FM, Grand Jury Clears Doctor Charged with Killing Katrina Patients
Sports Reporting: WMSI/WQJQ(FM), British Baseball Fan
Spot News Coverage: KFDI(FM)/KFTI(AM), Valley Center Explosion
Use of Sound: WRUF(AM), Game Security
Website: WAKR(AM), AkronNewsNow.com
Writing: WGLT(FM), Charlie Schlenker Compilation
Products
‘Livewire University’ Is Part of Roanoke Expo
The Roanoke Expo in July will include a free “Livewire University” workshop.
The BGS expo is Thursday July 17 in Roanoke, Va.; the workshop will be in the late afternoon, aimed at educating engineers about IP audio Networks. Presentations are planned by Axia Audio’s Ken Skok and representatives of 25-Seven Systems, AudioScience and Radio Systems.
Topics include how IP audio can be used to integrate broadcast studios; integration with CAT-5 wiring systems; time-shifting and time compression via IP audio; sound cards and sound card replacement; and integration with automation systems.
More information and registration are online.
RadioTraffic.com Simplifies and Speeds Contracts
RadioTraffic.com offers a traffic, logging and billing system for standalone radio stations and groups. Features include online order entry, multiple simultaneous user access and compatibility with various automation systems.
RadioTraffic software is designed to integrate into a station’s existing operation. Stations choose and pay for building blocks and capabilities they need.
Included in the modular design are ERP (Enterprise Resource Planning), SFA (Sales Force Automation) and CRM (Customer Relationship Management) modules. These sales tools integrate with the regular traffic functions of order entry, logs and billing to consolidate names, addresses, phone numbers and callback times.
Enterprise Resource Planning integrates planning, operations and order tracking. The Customer Relationship Management CRM module provides customer callback history, sales, marketing, production and rate management. The Sales Force Automation module generates sales proposals, tracks telephone prospecting and sales projections, and assists training of future sales staff.
Clear Channel Satellite Offers Flyaway Package
Clear Channel Satellite is promoting the XtremeSat XSM-7504 audio flyaway program delivery package.
Mobile applications include remotes, emergency services, Webcasting and trade shows. Fixed uses include remote offices, digital signage and disaster recovery.
The package can auto-seek its target satellite via an enhanced controller using an on-board GPS-enabled logic driver, which controls the unit’s azimuth and elevation location drives.
On power-up, the system auto-seeks the target satellite autonomously and locks in the user’s accompanying audio codec. A promotions staffer, the company says, could in a pinch get a remote on the air via satellite without engineering’s intervention or assistance.
The system folds down into a stowage position and is capable of being shipped via air freight or truck. It was shown during this convention season packaged in an optional ATA-rated and weatherproof shipping container. The system requires no on-site licensed operator.
The package exhibited at the spring NAB is priced at $27,500; leasing options are available.
Clear Channel Satellite is based in Englewood, Colo., near Denver.
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