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Capitol Hill Street Blue Dogs put the bite on LPFM 2

Blue Dogs are conservative Dems against overregulation, and they

think LPFM is a prime example of that practice, and want to put an end to it.

Pacing: Beating the best by double -digits 2

House Commerce chair Bliley to exit 2

NAB says bye-bye to NBC in dispute over cap 2

A fine thing: Don and Mike put guest on mic without consent 3

Hicks, Muse into Hong Kong for global ventures 3

American Tower expands into Canada 3

Ad streamer Hiwire finds some funds 3First Internet draws RPC into its web 4Americans say election coverage has been satisfactory 4

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DG Systems breaks records in 1999 5

ATI nearly triples revenues 5

SIRI gets Sirius about its preferred convertible stock 5

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Starting pistol fired on Clear Channel/AMFM spin-off derby 6

So far Infinity is the big winner with 18 stations in seven markets. 17 different

companies shared in the feeding frenzy which so far has reached 88 stations.

KKEY to the city? Pollack makes super entrance into Jonesboro 6Gibson takes flight in the Outer Banks 6The official CCC/AMFM spin-off scorecard 7Ackerley strikes again before all are gone in Oregon 7Jones to groove in Mountain Grove with AM -FM combo 7

Information On Demand

www.rbncom42000 Bronck.ast Electronics, Inc, AudloVAULT and the BE emblemaro registered trademarks of Broadcast Electronics, Inc,

Jim Carnegie Publisher Ken Lee VP/GM Associate PublisherJack Messmer Executive Editor Cathy Carnegie VP AdministrationDave Seyler Senior Editor Ronald Greene Executive Director of ProductionCarl Marcucci Senior Editor John Neff General Sales ManagerTiffany Stevens Associate Editor Sean Drasher Account ExecutiveKaren Maxcy Associate Editor Susanna Pritchett Account ExecutiveMona Wargo FCC Research Consultant April Olson Admin. Assistant

Anti-LPFM sentiment gaining momentum on the HillThis time the low -power FM opposition is coming from the mouth of Rep. CollinPeterson (D -MN), who has called on fellow "Blue Dogs"-conservative Demo-crats against overregulation-to support the Oxley-Pallone Bill (H.R. 3439) tokill LPFM.

Members of Congress and the industry itself are worried that the implemen-tation of LPFM stations into an already congested band would mean interfer-ence to existing stations. But, says Peterson, "for around $10,000, the FCCcould have gone to the field and conducted tests...that would have providedfacts and definitive information" about such interference. The FCC, he adds,did not conduct one single field test but relied upon computer data.

He also points out that the FCC acted in a rush to judgment and rescindeddecades old protections of the spectrum. "It took the FCC seven years toprescribe a low -power television service, and 10 years to approve digitaltelevision, I find it curious that they decided to rush the low -power radio rulesinto place while Congress was not in session."

Sens. Judd Gregg (R -NH) and Rod Grams (R -MN) also sent out a similarletter, asking their colleagues to support the Senate's companion anti-LPFMbill (S. 2068).-TS

Bliley says adios to Congress

Though he's not leaving just yet, TomBliley, a veteran Republican fromVirginia who chairs the House Com-merce Committee and was instru-mental in pushing through the 1996Telecom Act, announced his retire-ment last week (3/8).

"He has been both a first-class leg-islator and an exemplary committeechairman," NAB CEO/Pres. EddieFritts said of the Chairman who'sbeen a member of Congress since1980. Bliley's term expires at the endof this year.

His departure does not come as asurprise, though. Under House GOPrules, committee chairmen must give

up chairmanships after three terms.Former House Speaker Newt Gingrich(R -GA) appointed Bliley to head thepanel in 1995. Either Rep. BillyTauzin (R -LA) or Rep. Mike Oxley (R -

OH) is expected to take the chairnext .-TS

NBC kicked off of NAB's Board,quits organization

Only a few days after NAB revokedGE's (N:GE) NBC representative fromits Board of Directors, the TV groupresigned as a member of the organi-zation, upset that NAB will not lobbyCongress to further relax the na-tional TV audience reach cap.

Under current federal rules, no

Making demands:Sales at a blistering paceEven though 1999 was another recordyear for radio revenues, 2000 is blowingits doors off. Presold inventory for April isup 12%, and May, which is already halfway to the sell-out point, is 16% ahead oflast year. Miller Kaplan's GeorgeNadelRivin attributes the gains to tra-ditional retailers, who are now forced tocompete for air time with the dot -cornsand other newcomers.-DS

RBR/MIller KaplanMarket sell-out

percentage report2000 1999

March. 1 77.6% 71.1%

Apr. 54.9% 42.9%

May. 50.5% 36.8%

company can own stations that reachmore than 35% of US households.NBC and other large networks sup-port eliminating the cap, or at leastraising the cap to 50%. The cap waslast relaxed in 1996 from 25%.

In a letter to NAB CEO/Pres. EddieFritts. NBC Pres. Robert Wright ac-cused the NAB of dragging its feet onthe issue and said NBC cannot sup-port policy decisions that "go againstour best interests, and the interests

©2000 Radio Business Report, Inc. All content may not be reproduced. photocopied and/or transmitted without written prior consent.

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Publishers of Radio Business Report, Mid -Week News Brief, the Source Guide, Manager's Business Report

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of sustaining broadcasting as a growthbusiness."

Smaller owners of TV stations op-pose increasing the cap and worrythat the networks would grow toopowerful.

NBC was dropped from the Boardlast week because flagship stationWNBC-TV New York had not paid itsdues. According to NAB bylaws, if astation is delinquent with its dues formore than six months, that station(and any member of the Board ofDirectors representing that station)is no longer considered an member of

National talk show fined forbroadcast

An Infinity Broadcasting station hasbeen levied a $4,000 fine for failing tonotify a city commissioner that WJFK-FM Washington, DC (Manassas, VA)was going to broadcast the conversa-tion.

Hosts of the "Don and Mike Show"placed an on -air telephone call to CityHall of El Cenizo, TX last August andused racial slurs to vent their angerover the town's decision to conductall official business in Spanish (RBR12/27/99, p. 2). The hosts did notifyFlora Barton, an El Cenizo commis-sioner, that she was on the air, butdid not do so before recording theconversation intended for broadcast,as federal rules dictate.

Infinity claims that it did not vio-late FCC rules because the stationuses digital audio delay devices-aprocess that gives persons an oppor-tunity to object before any such call isbroadcast. Further, Infinity deniesthat it "recorded" Barton's conversa-tion because digital audio delay de-vices do not permanently preservethe material.-TS

Hicks, Muse forms allianceswith CMGI, Pacific Century

AMFM Inc.'s (N:AFM) biggest share-holder, Hicks, Muse Tate and Furst,has formed strategic alliances withCMGI (0:C MGI) and Hong Kong -basedPacific Century CyberWorks to lever-age existing resources and acquireassets that will support online andtraditional media convergence on a"global scale."

"@Ventures Global Partners," thethree concerns' new venture capitalpartnership, will commit to invest3/13/00 RBR

the lobbying group, NAB spokesper-son Dennis Wharton told RBR.

"We took the action because itwould be unfair to allow dues -delin-quent stations to have the sameprivileges as those stations that arecurrent in paying dues," he added."The financial impact will be minimalsince NBC contributed less than 1%to the entire NAB budget."

The TV group first threatened topull its membership in December(RBR 12/20/99, p. 5), after Fox(N:FOX) withdrew from the NAB lastyear over the same issue.-TS

$500M each, for a total of $1.5B tobuild infrastructure, support Internetcompanies in Europe, Asia and theAmericas, while leveraging new andexisting content and e -commerce.

The integration of Hicks, Muse'straditional media outlets with PacificCentury's Pacific Convergence Corp.'sexisting and planned broadbandInternet services throughout Asia("Network of the World" service); withits other partnerships (Intel, China'sLegend Computer, etc.) and Internetgiant CMGI, is aimed at bringing to-gether a global convergence of con-tent, interactivity and distribution."Having capital and access to capitalis certainly going to be key: so ishaving strategic relationships and theability to generate deal flow [and]having the technological expertise andthe operational expertise to know whatto do with it," Hicks, Muse spokesper-son Roy Winnick tells RBR. "To theextent that an existing group of TV orradio stations, or any kind of tradi-tional media have existing content,infrastructure and customers, thewhole idea is to and marry [that] tothe new media [offerings] that CMGIhas historically specialized in."-CM

American Tower moves intoCanada; joins with Richland for

supertower

In a joint venture with TelemediaCorp., a privately owned Canadianconcern, American Tower (N:AMT) hasformed Canadian Tower, LP. Based inCanada, the new company will de-velop and acquire wireless and broad-cast towers throughout the country.Telemedia brings to the table 20 broad-cast towers in Toronto, Montreal,Quebec City, Edmonton and

Hiwire gets $17M in fundingfrom NEA, Grey AdvertisingHiwire Inc., with its new targeted audioand video streaming ad solution, an-nounced (3/7) the completion of its sec-ond round of capitalization, for $17M.Stewart Alsop's New Enterprise Asso-ciates (NEA) and Grey Ventures, repre-sented by Ed Meyer, CEO of Grey Ad-vertising, are the new partners. Alsop takesa seat on the Hiwire Board of Directorsand Meyer joins Hiwire's Advisory Board.Since 1978, more than 100 NEA compa-nies have gone public, 60 since '91.

A rival to RadioWave's recently debutedad insertion capability (streaming listen-ers hear Internet -only ads instead of thestreaming station's on -air inventory-RBR2/28, p.4), Hiwire splits revenues from adsplaced on stations' online streaming in-ventory, of which are targeted at agenciesand advertisers by location, gender andage, market -specific in cities around theglobe. Hiwire President Jim Pavilacksays this is different from RadioWave,which uses "server -side" insertion, "Wheresomebody takes your station and everytime there's a commercial opportunity,everyone hears the same [Internet stream-ing] ad. Most advertisers aren't looking for[that kind of] reach and they don't com-pensate the radio stations for it," he tellsRBR. "What our system does is you're astation in NY, you have a listener in Chi-cago. The Chicago listener gets a Chi-cago commercial. And that happens withevery city all over the world. So any radiostation has the opportunity to make moneyfrom every other market. What we offer theadvertiser is, rather than buying just to geta station, they buy into a network."

Hiwire's contract includes placing adson unsold on -air inventory slots, of whichthe stations get a percentage, and asstated above, stations get a percentageof all Internet ads Hiwire places. "It's deal -specific, but [the percentage] tends to bein the agency -type range," explainsPavilack. "Right now, stations are just giv-ing it away. For example, a radio stationhas 10,000 listeners in Germany-it coststhem money. It doesn't do anything forthem. Now, suddenly, they get a check.This gives every radio station the opportu-nity to become an international syndi-cate."

Hiwire currently doesn't offer streamingservices. Its downloadable Internet tunercurrently has 3,500 affiliates, from whichthe commercial stations will be offered thead insertion deal. Existing value-addeddeals struck with local or national advertis-ers that specifically include streaming canbe flagged out of the inventory.-CM

3

Hamilton. "We believe there is goingto be continued buildout of both thecellular side, as well as the PCS side,LMDS side and other new technolo-gies which will be deployed in Canada,"ATS Chief Development officer JimEisenstein tells RBR. "We also viewthe opportunity up there on the broad-cast side-both acquiring and devel-oping."

American Tower and Richland Tow-ers (RBR 11/1/99, p.6) announced(3/2) a joint supertower constructionand operations project that will serveboth the Pensacola, FL and MobileAlabama markets. The 1,902 -ft.cloud -scraper will be designed by KlineIron and Steel. Construction is slatedto begin 4/1 and end by November ofthis year.

Richland and ATS were competingfor tower tenants, and it turned outthere were not enough of them to filltwo new towers. "The decision to cometogether with Richland was basedupon the fact that the market needsonly one broadcast tower," said ATSVP/GM Broadcast Tower Group BobMorgan, who estimates five or six TVtenants and as many as six radiotenants will sign.-CM

FIMC and RPC join forces

A provider of station websites, FirstInternet Media Corporation (FIMC),has acquired Radio Profits Corpora-tion (RPC) based in Newport News,

VA. Commenting on the acquisition,FIMC CEO Chad Meisinger, says,"The synergy between our two com-panies is absolutely tremendous. Nowstations can confidently move for-ward in the direction of the Internet.FIMC currently manages websitesfor over 200 stations, many of themin large markets, whereas RPC cur-rently provides a telemarketing pro-gram that helps mid -sized radio sta-tions generate revenues on theirwebsites.

Scott Wolf, Director of Client Ser-vices, RPC,says that there are fewsuccess stories with selling websiteads. It is a new medium and advertis-ers are reluctant to put a large part ofthe budget in a somewhat unprovenmedium. From the account executive'spoint of view too, they would muchrather recommend a buy on the sta-tion than on the website.

But with RPC's program, atelemarketer can devote all his or hertime to selling the website ads alone.If a telemarketer sells an average ofthree ads a day, that is 60 ads amonth. Many stations do not havethe capacity to convert these to adson the website. Explains Wolf, "Whatwe were impressed with FIMC is thatthey have a series of tools that clientsget where they can literally updateads that are sold by the telemarketer,within five to 10 minutes. There's atechnical capability there to developcampaigns and to fulfill the cam-paigns at the station."-KM

Poll finds most Americans satisfied with election coverageBetter too much than too little. As such, a study conducted by Wirthlin Worldwide,commissioned by the National Association of Broadcasters (NAB) and the Radio andTelevision News Directors Association (RTNDA), found that most Americans were .

getting enough, or in some cases, more than enough information to be part of thepolitical process of electing a president.

When asked about the amount of time broadcast TV and radio stations spend

reporting on political campaigns, 39% of respondents said it was about the right amountof time, 46% said it was too much time and only 7% said it was too little time. When itcame to deciding who to vote at the primaries, respondents overwhelmingly say thatbroadcast outlets helped their decision the most. 43% attributed their decision tobroadcast, 17% said print was most helpful and 9% said the candidate's informationwas the deciding factor.

The high cost of running broadcast ads was little incentive for 54% of respondentswho say that they oppose free time mandates. Only 34% supported free time mandates

I while 12% were unsure.

The respondents were polled from the five states involved in the "Super Tuesday"primaries; a total of 827 voters were picked equally from California, Georgia, Missouri,New York and Ohio. The margin of error was plus or minus 3.4%.-KM

RBR News BriefsRadio explodes intonew millenniumMonth one of the new century is in thebooks, and the radio industry can cel-ebrate major gains. The month came in20% ahead of January 1999, with an 18%gain in local business coupled with a25% jump in national. The coasts wereparticularly busy, with gains of 20% local/34% national in the East, while the Westcame in with gains of 21%/25%.-DS

FCC blocks sale of unauthorizedFM transmitterThe FCC has fined Leslie Brewer andhis "Leslie Brewer's 2 -Way Radio" com-pany $10,000 after an undercover agentcaught him selling 3/3 an unauthorizedFM transmitter.

According to the Commission, the fullyassembled, 20 -watt transmitter was notauthorized by the agency and had noFCC identifier number attached to it whenthe company tried to sell it.

This is not Brewer's first brush with theFCC-his equipment was seized back in1997 for illegally operating "Tampa's PartyPirate" at 102.1 MHz. The US DistrictCourt for the Middle District of Floridarecently upheld the validity of that sei-zure.-TS

Judy Jarvis passes onJudy Jarvis, the self -syndicated radioTalk show host (with her son Jason asthe Executive Producer and co -host)passed away yesterday at the age of 54.Formerly a reporter for Time magazineand The Boston Globe, she aired hershow to 50 odd affiliates since '93. Shealso appeared as a guest on CNN, CSPANand NBC. She had been doing her showwhile battling lung cancer for the last 18months. She did NOT smoke.-CM

Emmis acquires LA MagazineIndianapolis -based Emmis Communica-tions has bought Los Angeles Magazinefrom The Walt Disney Company (N:DIS),increasing the group's presence in theLA market, announced Chairman/CEOJeff Smulyan last week. The radio/TV/magazine group already owns LA'sKPWR-FM.

The magazine, with a monthly circula-tion of more than 183,000 and monthlyreadership of 550,000, covers a range oftopics, including politics, films, restau-rants and nightlife.-TS

4 3/13/00 RBR

RadioRadio advertising news, trends, strategies & stats for

stations, networks, syndicators, advertisers and agencies.

TM

From the Publishers of Radio Business Report Inc., 17 Years

Volume 4, Issue 3 March 2000

Radioation

the challenges of expandingspenue stream in uncommonlygood times

by Karen Maxcy

story begins on AB 2

AgencyPerspective

Brand Media Group's RogerSchnur on product developmentPage AB5

RadioNews

Clear Channel's spin-offderby beginsPage AB8

PersonalityProfileG. Gordon Liddy tells the storyPage AB10

Ad Stats

Dot -corns #2 in Big ApplePage AB9

RBR/Miller Kaplan MarketSell Out percentage report

Making demands: Salesat a blistering paceEven though 1999 was another record yearfor radio revenues, 2000 is blowing its doorsoff. Presold inventory for April is up 12%, andMay, which is already halfway to the sell-outpoint, is 16% ahead of last year. MillerKaplan's George Nadel-Rivin attributesthe gains to traditional retailers, who are nowforced to compete for air time with the dot -

corns and other newcomers.-DS

77.6 200071.1 1999

1 -Mar

54.9

42.9

I50.5

36.8

IApril May

Radio

IZMarch 2000, Volume 4, Issue 3

Executive Editor

Senior Editor

Senior Editor Carl MarcucciAssociate Editor Tiffany StevensAssociate Editor Karen MaxcyCreative/Production Director Ronald GreeneVP Administration Cathy CarnegieFCC Research Consultant Mona WargoAdministrative Assistant April Olson

Jack Messmer

Dave Seyler

Publisher Jim CarnegieVP/GM, Associate Publisher Ken LeeGeneral Sales Manager John NeffAccount Executive Sean DrasherAccount Executive Susanna Pritchett

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uld you respect a radio station group more if they raised rates instead of addinginventory load? In a supply and demand business, and the marketplace is certainlyfrenzied right now, can you really blame them for doing both? Matt Feinberg, VP/

Manager National Broadcast, Zenith Media Services, believes that raising rates first is certainlya more respectable and more importantly, a sound choice. "If you increase your commercialinventory, you risk losing your audience. And what are you if not for your audience?" But fora long time user of radio like Feinberg, he has some concerns about paying the higher rates ofrecent times. He explains, "If you come to me and say 'we've raised our rates 25% over half ayear ago, but our audience has not increased 25%.' So I say 'what grounds do you have to raiseyour rates?" But if buyers balk at the rates, then the vendors may say, "We'll have to addcommercial load."

Jim Boyle, SVP/Director, First Union Securities, says that there is substantial head room inrates still "given the historical cheapness of the typical radio rate." Another advocate of push ratesfirst before adding units, Boyle says that stations who add units dramatically will see adverseresults in Arbitron books. How many commercials is too many commercials? No one reallyknows, according to J.T. Anderton, VP, Duncan's American Radio, Inc., but "there is a growingsense that in some places, it may be approaching the limits."

It may appear as if radio is enjoying the boost in revenues due to great demand without anappreciable change in the product. After all, Duncan's research shows that time spent listening (TSL)has declined slightly and continues to decline. However, Anderton says there are a few factors thatmake radio a better medium and industry than before. He explains, "Despite the slight decline in APRs,

an extraordinarily high percentage of the population still finds a lot to like on radio." Over 90% ofthe population still listens to radio each week and APR decline has been about 1% per year recently.

Additionally, consolidation has made it easier for media buyers to place their buys. Fewerowners in a market means that the buyer deals with fewer sales reps and can buy more stationson one order. Anderton explains, "Nobody is forcing the buyers to buy all the stations. But onepoint is that they're being presented by one sales person in one sales call. The advertiser has theoption of buying or not buying the whole group of stations, instead of having to deal with, forexample, four sales reps and four orders taken by four stations."

The executives at radio station groups are acutely aware of all these issues surrounding radio'sawesome climb. They'll be the first to say that it is by no means an overnight surprise success.With times this prosperous, how do these groups balance product integrity and improvementwith revenue growth demands? AdBiz posed this question and more to the executives and beloware the highlights from Geoff Armstrong, CFO, AMFM Inc.; Glen Larkin, CFO, BonnevilleInternational Corp.; Lew Dickey, Vice Chairman, Cumulus Media; Doyle Rose, President/RadioDivision, Emmis Broadcasting; David Field, President/COO, Entercom; and David Kennedy,President/COO, Susquehanna Radio Corp.

What kind of strategy do you employ toincrease your group's revenue? Do youraise rates, increase spot load or do acombination of both?Armstrong: Radio is shifting from a commoditybuy. The misconception that we are selling anadvertiser the same spot for 15% more isridiculous. We are providing more services,more promotional opportunities and betterproduction. Spot rate for same listener isgrowing 7-8% while our revenue grew 14%.For the first time, radio groups includingAMFM could attack the network pool of inven-tory which we couldn't before. A large part ofour growth was there. Then the second com-ponent was Chancellor Marketing Group whichhas achieved a substantial amount of non-traditional, non -spot promotional revenue. Soyou use your promotional vehicles in yourlocal markets to brand and distribute productsand help clients meet their marketing needs.And those are your drivers of growth.

Larkin: There's been a combination of both-probably two-thirds of it is as a result of rateincrease. But tied really closely to that is hiringmore qualified people to push the sales andmanagement process. Obviously we need betterpeople to sell higher rates. But part of ourrevenue growth has also been industry driven-heavy demand coming not just from dot -cornsbut all different aspects of the dot -corn busi-nesses. Automotive has been a very powerfuland stimulating group too. We've had a lot ofadvertising corning from the auto industry.

Our strategy has always been, across a lot ofour stations, to manage inventory so carefullythat we can have excess inventory available forthose final willing to pay clients who walk inthe door two weeks ahead of air time and say."I really do want to buy a big schedule."

I attribute two-thirds of the increase inrevenue to rates. A majority of the third is a

continued on AB 4

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function of being able to press inventory. Iwouldn't believe it necessarily represents ahigher level of sellout. What I understand is it'sbetter management. But there has been someslight uptick (in units) of some of the newstations we acquired in '97 and '98. I've hadsome dramatic improvement in their program-ming and ratings, and as a result, we've beenable to push some improvement in selloutlevels.

Dickey: We engage in a combination of both.In our mature stations where the inventoryutilization is high, we rely on pricing power toincrease our yield. In our developing stations,utilization is much lower so the challenge is tointroduce more accounts to the station. Inother words, we can increase revenue byselling more of our available inventory.

Rose: We are in the price raising mode. Wedon't add any inventory anymore. We in-creased some inventory at the beginning of lastyear. And we held it all the way through theyear. We believe that demand is so strong thatnow is not the time to add spots.

Field: Depends on the stations and the mar-kets. There are differences between morningdrive and the rest of the day. Our AM stationsare going to run different spot loads than ourFM stations. But we have maintained highlyconservative spot loads across the country. Wedon't "overmilk" the stations so to speak.Having said that, we have achieved dramaticincreases by increasing rates, and to a lesserextent, better utilizing our existing fixed inven-tory capacity. Historically, radio has sold at afar lower CPM than TV, print and other media.And what consolidation has enabled us to dois to begin to narrow that gap. Interestingly, asTV viewership has declined, and as newspapersubscribership has declined, we are actuallystill more efficient than those media despitethe fact that we are raising our rates.

Kennedy: Our sales strategy is to stress qualityand lower commercial inventory. It works forus and it's still working. I'm well aware thatcompanies have in essence issued ultimatums/dictates. I have never done that. But havingsaid that, what I'll say is that unit loads mayincrease over time, just as they have longbefore this was an issue. But our managersknow that such a strategy is unacceptable to usas an answer to meeting revenue demand.Talk to us about off -air or non -spot revenuegenerators-events, database initiatives andprint-those kinds of things. Don't come to usand suggest that the way to meet demand is by

David Field, President/COO, Entercom

saying, "I have to add two units."We as a company believe in the value of our

product and the need to maximize our unitrates. It's in my mind a bit incongruous to bea strong supporter of the RAB (Radio Advertis-ing Bureau), the organization that promotesthe value of radio advertising on the one hand,and then meet your revenue goals by addingunits on the other hand. And we are a strongsupporter of the RAB. Where we have beenable to establish the value appropriately withour clients, we have been successful in in-creasing our unit rates.

For all I know my competitors that havebeen adding three, four or five units an hourmay be finding that they are getting away withit and finding some success in it. It's a simplestrategy that we've chosen not to take. Ourtime horizon may be somewhat longer thanothers and we don't have any desire to jeop-ardize our product.

In the larger markets, especially the hi -tech ones, how do you balance the hotdemand with limited inventory?

Armstrong: In the 4th quarter in Sari Francisco,we could have gone all commercial and soldeverything at whatever we asked for. Weresearched heavily and consistently. If weever sense that there is a fatigue issue, we willpull back the units. I think we've been very

at maintaining and increasinglistenership for our clusters

continued on AB 13

AB4 March '00 AdBiz

Larkin: Same formula as in the other markets.I think as you increase rates, and with bettermanagement of inventory, you do have somecustomers that drop by the wayside. You freeup those kinds of avails for other customers.That's all part of the process.

Dickey: Our markets (51-275) have not yetbeen the beneficiary of dot -corn spending. Ifthe froth created by the dot -corn spendinggoes away, we will not be affected. Ourbusiness is built on local retail and by takingshare away from the newspaper and local TV.I'm not knocking the easy dot -corn money, butour revenue base and growth rates are real andsustainable. If and when the dot -corn moneymakes its way into the mid -sized markets, itwill be a nice surprise, rather than a built-incomponent of our revenue budgets.

Rose: It is the same as the abovementionedstrategy. This is the model that we all wishedwe could have followed the last 20 years. It isthe perfect model of more demand and morerate. Two things have happened with the hi -tech business. One, it's an additional newcategory business which maybe accounts for7-8% of our business now. What it's done isattract more advertisers from the general brickand mortar businesses. As a result, it's pusheddemand and demand has pushed rates up forall categories.

Kennedy: Honestly, it's no different than whatI just told you-meaning if you're asking ifwe've added units to accommodate the de-mand brought on by the dot -corns, the answerto your question is no, we have not. Thedemand is there and we feel that it's the wrongtime to add units when you have strongdemand.

Is your group actively developing NTRoutlets to supplement the bottom line?Armstrong: The Clear Channel acquisition ofSFX is the desire to continue to branch out.We've spent millions of dollars setting upsignificant amounts of satellite offices externalfrom the radio stations to specifically meetmarketing demands of our major clients in anon-traditional way-whether it's throughproduct distribution, event marketing or radiostation promotions external from the normaladvertising buy.

Larkin: We have found that there is so muchpressure on the basic spot program that we'respending more time managing the traditionalkinds of revenue sources. The first line ofattack is to maximize that area. NTR sourceshave received some increased emphasis but

( Glen Larkin, CFO, Bonneville )not dramatically over what we did a couple ofyears ago. However, I have to exclude out ofthat comment the Internet component of rev-enues. We have for the last year and a halfbeen looking at the Internet for purposes ofbonusing spots and we just recently changedinto a pattern of charging for Internet place-ment. We are now looking at this as a separateprofit center. We are on the cusp of starting totrack it with its own expenses and revenues.

Dickey: We have been big proponents of NTRsince our inception. We don't view it, how-ever, as a static category of business. Rather,as a transition whereby we introduce "non-traditional" advertisers to radio and convertthem to "traditional" users of the medium. Mybiggest fear with NTR is that too many peopleview it as a panacea for increasing revenuebudgets and start thinking and acting tacti-cally as opposed to working a sound strategicplan to sell higher priced spots to moreadvertisers. We don't want to lose sight of thecore fundamentals of our business model asradio broadcasters.

Rose: I think we've been a leader in this. Westarted our own training company RDS, RadioDevelopment Systems, six to seven years ago,so I think we have been well ahead of thecurve on that. We are generating revenue inseveral different ways. For instance, we arenow selling a lot more sponsorships of variousfeatures on air that do not require any com-mercials but rather just product mentions. Weare selling a lot more sponsorships to eventsand concerts. We are selling merchandise-we've sold compilation CDs of our music andcross promoted them with sponsors.

What additional comments do you haveregarding this issue?Armstrong: We always believe radio is under-valued. I can only say that as a part of themeasured media pie, we have grown in the lastfive years as consolidation has taken on andeliminated some of the cannibalization ofrates. But on a CPM basis, I think it has grownequal to the media pie. I think we have notgrown as much as the other measured mediaas we should have given our increase inlistener base and our increase in deliveryversus over -the -air TV and newspaper. Andthey have been able to pass rate increases withdeclining viewership and subscribership.

Larkin: Much like any other broadcaster, ourmajor concern is-what does our future hold?Can we count on this kind of demand in radiofor the next two to three year time period? Canwe reach the next threshold of 9% of theadvertising revenue. The industry is at 8%. Ithink diversification is the key to it. We're goingto have to be on the cutting edge of broadcasttechnology. We're going to have to embrace theradio features of the Internet. We're going tomake sure that we take that territory that isrightfully ours. We as traditional broadcastersneed to be there to take our fair share.

-011.111MIM

Lew Dickey.)Vice Chairman, Cumulus Media

Dic key: The key to sustainable revenue growthin our medium is to recognize and communi-cate the compelling advantages of clusteredradio. We now have two to three times thereach of the daily newspaper and we can offerit to our advertisers at a much more attractiveprice. Deregulation has enabled radio to ex-pand its addressable market for advertisingdollars. If we are persistent and creative in theway we communicate this to our advertisers,we will succeed in changing behavior and

March '00 AdBizAB1 3

shifting share away from newspaper and intoradio. We truly have an exciting opportunityahead of us to dramatically alter the split ofmedia dollars.

Rose: I think one of the things we've alllearned is that there are just so many differentways for us to make money and we are stuckin this paradigm of just selling spots. Weclearly are filling that business but we're mak-ing a lot more money using the power of ourstations to sell a lot of different things. Ourcompany has become a sales driven organiza-tion like most radio companies are. It's allabout sales. But we have to watch our product.I think now people have stopped addinginventory and more clutter to their stations.The dropping of TSL really has more to do withthe choices that people have. More time withCDs, Internet and the cellular phone. It's anatural phenomenon that happens as technol-ogy expands. I don't think it's as much we'redriving them away as they just have morechoices. I think radio stations are betterserving their listeners now that they ever havebecause the competition is keen betweenmuch more professional organizations. We'rea much better business than we used to be. Inthe last 20 years, we've been an industry of Cstudents. Now, we've had to become A and Bstudents if we want to compete.

- Field: Basically, the story of radio is this -theCPM gap and the fact that we now have theability to narrow that is because radio is now farmore respected on Main Street than it's everbeen. We are now able to get a more fair rate. It'snot that we are getting high rates. It's that we'vebeen selling so cheap for so long. Consideringthe value and results we achieve for advertisers,we've sold ourselves incredibly cheap. And now,for the first time, we are beginning to get a morefair rate. But we're still no where near getting afair rate when you compare us to the CPMs forTV and print. The test is going to be if wemaintain the vigilance on getting fair compensa-

. tion on our inventory or do we get lazy and addunits because we don't have the courage to standup and get what we deserve?

Kennedy: My managers tell me all the time thatothers in the market are doing this (adding units).The last thing I want to do is to sour ouradvertisers on our business. Look at what'scoming. We've got Internet stations that aresiphoning off a little bit of listening as we can seein research. We've got satellite, digital audioradio stations coming in the not too distantfuture. We've got additional demands on thetime of the people that are important to us, to ourbusiness. Now is not the time to solve your shortterm problems by jeopardizing your product.

,

Media Index

November: Radio dollars up but share downby Dave Seyler

Radio revenues in the 15 markets which are part of this survey rose from $265.7M inSeptember to $304M in November. However, radio's share of the total media pie droppedfrom 17.19% to 16.30%,

The ravenous dot.com companies were largely responsible for this. Although they increasedtheir use of radio from $24M to $34.5M, they almost doubled their presence in newpapers, goingfrom $10.2M to $20.1M. And they seem to have suddenly discovered TV. Money spent there tripledand then some, going from $16.9M to $58.1M and ousting radio from the top of the dot.com heap.

Ironically, it was television that helped keep radio on an even keel. It upped its spending

in radio from $19.8M to $40.6M

RBR/Miller Kaplan Total Media IndexNovember 1999 (Expenditures in 000)

Total Radio%Category Radio TV Newspaper Media of Total

Automotive 35,857 201,053 191,725 428,635 8.37%

Restaurants 11,028 55,248 5,210 71,486 15.43%

Department Stores 14,209 41,823 119,193 175,225 8.11%

Foods 9,075 35,419 1,921 46,415 19.55%

Communications/Cellular 18,034 35,916 64,477 118,427 15.23%

Furniture 7,427 24,242 34,333 66,002 11.25%

Financial Services 15,239 22,629 45,899 83,767 18.19%

Movies/Theater/Concerts 8,028 21,892 28,135 58,055 13.83%

Grocery Stores 8,548 16,476 18,210 43,234 19.77%

Appliances & Elctronics 5,316 24,224 44,655 74,195 7.16%

Hotel/Resorts/Tours 3,089 10,175 34,527 47,791 6.46%

Drug Stores/Products 4,982 20,941 11,390 37,313 13.35%

Computers/Office Equipment 7,971 8,599 23,545 40,115 19.87%

Specialty Retail 19,204 45,395 47,429 112,028 17.14%

Health Care 10,589 21,362 17,258 49,209 21.52%

Auto Parts/Service 6,532 19,220 13,739 39,491 16.54%

Music Stores/CDsNideos 5,025 10,503 4,673 20,201 24.88%

Transportation 3,608 4,331 11,443 19,382 18.62%

Entertainment-Other/Lottery 8,156 8,899 5,092 22,147 36.83%

Home Improvement 3,135 9,597 9,701 22,433 13.97%

Professional Services 8,785 13,952 12,042 34,779 25.26%

Beverages 11,348 13,460 3,868 28,676 39.57%

Television 40,568 10,854 13,604 65,026 62.39%

Personal Fitness&Weight Ctrs. 697 3,075 1,220 4,992 1-3.96%

Publications 3,117 5,638 34,909 43,664 7.14%

Internet/E-Commerce 34,477 58,102 20,108 112,687 30.60%

TOTAL 304,044 743,025 818,306 1,865,375 16.30%

on Media Market X -Ray composite data for 15 markets (Atlanta, Charlotte, Cleveland, Dallas,Houston, Minneapolis -St. Paul, New York, Philadelphia, Pittsburgh, Portland, OR, Providence, Sacramento,San Diego, San Francisco, Seattle). Newspaper and television data compiled by Competitive MediaReporting and radio data compiled by Miller, Kaplan, Arase & Co., CPAs. For further information contactGeorge Nadel Rivin at (818) 769-2010.

AB14 March '00 AdBiz

broadcast .com

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KCPX-FM - Salt Lake City KRAR-FM - Salt Lake City KUSH - KUSH-AM -OK GRANDE BROADCASTING: KTDR-FM - Del Rio. TX KWMC-AM

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Anchorage, AK KWAB - KWAB-AM - Boulder, CO WXIN - WXIN-FM - Providence.HI KBEL - KBEL-AM/FM - Idabel, OK McMURRAY COMMUNICATIONS:KXKQ-FM - Safford, AZ KWRQ-FM - Safford, AZ KATO-AM - Safford, AZSOUTH JERSEY RADIO: WTKU-FM - Linwood, NJ WGYM-AM - Linwood. NJ WT

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sir. Ilivi 1.L J 1 I 11 L.r.ilL'Jal'_AL'iaL"A= 111111-11.wilE1111-11110."

March 8-RBR Stock Index 2000

Company3/1/00

Mkt:Symbol Close3/8/00Close

Net

Chg

Pct 3/8/00Chg Vol Company

3/1/00Mkt:Symbol Close

3/8/00Close

Net Pct 3/8/00Chg Chg Vol

Ackerley N:AK 13.313 13.813 0.500 3.76% 71600 Harris Corp. N:HRS 30.938 33.375 2.437 7.88% 350500Alliance Bcg. O:RADO 0.375 0.375 0.000 0.00% 0 Hearst -Argyle N:HTV 21.438 21.188 -0.250 -1.17% 18300Am. Comm. Ent. O:ACEN 2.000 2.000 0.000 0.00% 13200 Hispanic Bcg. O:HBCCA 94.250 99.875 5.625 5.97% 151300Am. Tower N:AMT 48.688 54.625 5.937 12.19% 2176400 Infinity N.INF 34.500 32.563 -1.937 -5.61% 1636500AMFM Inc. N:AFM 63.250 55.500 -7.750-12.25% 1573500 Interep O:IREP 10.375 10.000 -0.375 -3.61% 6800Beasley O:BBGI 12.063 12.500 0.437 3.62% 110900 Jeff -Pilot N:JP 53.125 52.000 -1.125 -2.12% 222900Belo Corp. N:BLC 13.188 12.813 -0.375 -2.84% 209500 Launch Media O:LAUN 18.000 19.313 1.313 7.29% 98900Big City RadioCBS Corp.

CeridianCir.Rsch.LabsCitadelClear ChannelCox RadioCrown Castle

CumulusDG SystemsDisneyEmmis

A:YFM

N:CBSN:CEN

O:CRLI

O:CITCN:CCU

N:CXR

O:TWRS

O:CMLSO:DGIT

N:DIS

O:EMMS

7.25060.25020.375

3.50036.12568.87579.00033.37532.875

7.62534.68835.375

7.62557.12519.2503.500

37.62560.50069.18839.87534.063

7.62535.06330.375

0.375 5.17% 26500-3.125 -5.19% 1399100-1.125 -5.52% 3784000.000 0.00% 0

1.500 4.15% 147600-8.375-12.16% 4251600-9.812-12.42% 234006.500 19.48% 23583001.188 3.61% 1112000.000 0.00% 2132000.375 1.08% 5598300

-5.000-14.13% 1883500

NBG Radio NetsNew York TimesPinnacle Hldgs.PopMail.comRadio OneRadio UnicaRealNetworksRegent

Saga Commun.Salem Comm.Sirius Sat. RadioSpanish Bcg.SpectraSite

O:NSBDN:NYT

O:BIGT

O:POPM0 :RO IA

O:UNCAO:RNWKO:RGCIA:SGAO:SALMO:SIRI

O:SBSA

O:SITE

1.93843.00061.375

4.65668.87512.81369.75011.00021.93815.50064.87519.00024.750

2.00041.56369.125

5.56357.00010.50070.50011.43817.75013.81359.81318.37526.125

0.062 3.20% 3300-1.437 -3.34% 6141007.750 12.63% 6767000.907 19.48% 1983500

-11.875-17.24% 444000-2.313-18.05% 1173000.750 1.08% 16870000.438 3.98% 239600

-4.188-19.09% 11100-1.687-10.88% 235500-5.062 -7.80% 405300-0.625 -3.29% 6111001.375 5.56% 724900Entercom N:ETM 41.500 44.438 2.938 7.08% 177800 SportsLine USA O:SPLN 43.438 50.375 6.937 15.97% 287100First Entertain. O:FTET 1.010 1.094 0.084 8.32% 49000 TM Century O:TMCI 0.938 0.781 -0.157-16.74% 200Fisher 0:FSCI 55.500 51.500 -4.000 -7.21% 1600 Triangle O:GAAY 0.055 0.060 0.005 9.09% 1156700FTM Media O:FTMM 11.250 10.125 -1.125-10.00% 13200 Tribune N:TRB 38.000 38.750 0.750 1.97% 987700

Gaylord N:GET 27.250 26.625 -0.625 -2.29% 17000 WarpRadio.com O:WRPR 4.875 4.000 -0.875-17.95% 0Gentner O:GTNR 21.750 21.438 -0.312 -1.43% 89000 Westwood One N:WON 66.125 64.188 -1.937 -2.93% 128900Global Media O:GLMC 7.531 7.219 -0.312 -4.14% 122300 WinStar Comm. O:WCII 77.813 52.938 -24.875-31.97% 1590400Harman Intl. N:HAR 61.438 58.813 -2.625 -4.27% 46100 XM Satellite O:XMSR 45.000 45.938 0.938 2.08% 392400

Record revenues for DG Systems

DG Systems, Inc. (O:DGIT), an-nounced revenue gains for the fiscalyear and Q4. For the full year, DG'sconsolidated revenues rose 18% from$41.3M to $48.7M. EBITDA for 1999made it to positive territory -it was$1.8M compared to negative $204Kin 1998. The company also improvedits net loss and reduced it by 71%. Netloss, for the full year, was $8.8Mcompared to $30.2M a year ago.

For the fourth quarter, consolidatedrevenues was $12.9M compared to$12.3M in Q4 1998. EBITDA was up44% to $1.1M from $749K. This rep-resents the fifth consecutive quarterof positive EBITDA.-KM

American Tower Corporationposts revenue gain

Strong fourth quarter results and fullyear results were reported by Ameri-can Tower Corporation (N:AMT)-forthe three months ended 12/31/99,revenue was up from $32. 1M to $89M.EBITDA for the same period regis-

tered an increase from $10.9M to$28.3M. For the full year, AmericanTower's revenue increased from$103.5M to $258.1M. EBITDA (ex-clusive of tower separation expensetotaling $12.8M) was up from $36. 7Mto $91.5M.

Commenting on the company's re-sults, Steve Dodge, Chairman/CEO,said, "Leasing activity is robust, as weincreased annualized revenues on ourexisting tower base by more than 20%in the 4th quarter. We believe thisactivity represents only a beginningin the ramp up that is occurring intower demand." -KM

Preferred Stock

Sirius Satellite Radio (0: SIRI) announcedthat it will redeem all outstanding sharesof its Series C Convertible PreferredStock by 4/12/2000. All outstandingwarrants to purchase these stocks willalso be redeemed. Each stock will beredeemed for $100 (plus accrued andunpaid dividends) and each outstand-ing warrant to purchase a Series CPreferred Stock will be redeemed for$35.34. The right to convert Series CPreferred Stock to the company's com-mon stock (at approximately 5.56 com-mon shares per preferred share) willexpire at 5 p.m. EST, 4/11/00. -KM

The RadioIndexTMThe Radio Indexcontinues its drop 200since mid February,although not as sharp 190this past week. TheIndex lost 11.21 forthe week to close3/8 at 172.00.

1;fill;11M111:111111

210

180

1702/16

I

2/23

THE WALL STREET JOURNAL

R ADIO N ETWORK

3/1 3/8

3/13/00 RBR5

V V V

I 1 I I I I 111.iirl_Li.. w.MI I I I r.1 11 I _i TI I 2301111 1 I UII:1 271\11Wen I 11I 11i'll:1I 11 I II 11.1111l-Illl"'_111

Clear Channel/AMFM spin-off derby under way

Making room for its acquisition ofAMFM,Clear Channel and a host of other radiocompanies have put ink to paper andbegun the process of spinning off sta-tions which fail to fit into the ownershipguidelines of both the 1996 Telecom Actand the DOJ. In all, 88 stations in 32markets have been designated to a spe-cific owner in two rounds of announce-ments. So far, 17 companies are pullingin from one to 18 stations.

The eighteen -station buyer is In-finity, which will add stations to ex-isting properties in Cleveland andCincinnati, while gaining entry intoDenver, Greensboro, Orlando, Phoe-nix and San Diego.

Other first wave buyers includedCox, Cumulus, El Dorado, Entravision,HBC, Salem, Chase Radio Partners,Nassau, URBan Radio Broadcasting,Blue Chip, Mega Communications and

Pecan Partners. Added in the secondwave were Barnstable, Inner City,Rodriguez and Saga. As expected,many of these companies are minorityowned, including Chase, which is agroup newly formed with these acqui-sitions. A complete listing of purchasedstations and final ownership totals foreach buyer by market is provided onpage 7.

It would appear that the DOJ leftsome fingerprints on the dealing pro-cess. Several stations which were noton the original divestiture list (RBR10/18/99, p. 13) were sold, includingWPOC-FM Baltimore (which may haverun afoul ofAMFM's big superduopolyin nearby Washington) and KGGI-FMRiverside (likewise, near a majorsuperduop in a nearby market, inthis case Los Angeles). A seeminglyinnocent AM -FM combo in Reading,

AAA Entertainment, LLChas agreed to purchase the assets of radio stations

WWCT-FMPeoria, Illinois

from Central Illinois Broadcasting, Inc.

for $7.5 Million*and

WJPL-FMFarmington, Illinois

from Orchard Communications, Inc.

for $2.65 Million*Robert J. Maccini and Stephan C. Sloan

of Media Services Group, Inc.represented the Buyer in these transactions.

Tel: (401) 454-3130 Fax: (401) 454-3131 E-mail: maccim msn.com

www.mediaservicesgroup.com

MEDIA SERVICES GROUP, INC.ACQUISITIONS VALUATIONS FINANCING CONSULTATIONSan Francisco Philadelphia Dallas Washington Kansas City Providence Salt Lake City Jacksonville Richmond

Pending FCC Approval

6

by Dave Seyler

PA was broken up and an FM in Wacoalso fell into this category.

Radio One was expected to be a bigbuyer, but announcements as to whatit is getting were on hold due to theminority -owned group's recent activityon Wall Street (they have just submit-ted an offering of 5M shares of Class ACommon Stock at $70/share). It hasbeen rumored for weeks that it will begetting the crown jewel of the spin-offpackage, KKBT-FM Los Angeles.

We expect at least another 20-25stations to be sold, give or take. Staytuned.

Digging a burrow in Jonesboro

Bill Pollack is yanking $2.5M out ofhis wallet for a ready-madesuperduopoly in the brand -spanking-

new Jonesboro AR market. The sta-tions are KOCY-FM Hoxie, KJBR-FMMarked Tree, KKEY-FM Harrisburgand KNEA-AM Jonesboro. This willexpand Pollack Broadcasting, whichalso has holdings around Memphis aswell as in Missouri and California.

The seller is Studio Four RadioLLP, owned by David & Mindy Worlowand Johnny Shields, who will pocketa nice profit. They cobbled thissuperduop together last year beforethe market received its Arbitron sanc-tioning in three deals for a total of$1.16M by our count. Broker: BillCate, Sunbelt Media Inc.

Gibson gets a couple of Nags

Elizabeth City -Nags Head NC will beentering the ranks of the Arbitron-rated this Spring, and Wayne Gibson'sOBX Broadcasting LLC will be wait-ing with a pair of FMs. WNHW-FMNags Head and WYND-FM Hatterasare coming from Coastal Broadcast-ing for $1.3M. Gibson has already put$100K in escrow, and will deliver$900K cash at closing along with anote for the remaining $300K.

For those who may be wonderingwhere in NC this is, Elizabeth City isjust inland and Nags Head is justdown the shore from the site of theWright Brothers' first flight in Kitty

3/13/00 RBR

Clear Channel/AMFM spin-offsWill have

Market Owner Buying AM FM

Allentown Nassau WEEX/WODE-FM 1 1

Austin HBC KEYI-FM 0 1

Austin Pecan KFON 1 0

Baltimore Chase WPOC-FM 0 1

Biloxi Chase WKNN-FM/WMJY-FM 0 2

Cedar Rapids Cumulus KDAT-FM/KHAK-FM/KRNA-FM 0 3

Cincinnati Blue Chip WUBE 1 1

Cincinnati Infinity WUBE-FM 0 4

Cincinnati Salem WYGY-FM/WBOB 2 1

Cleveland Infinity WDOK-FM/WQAL-FM/WZJM-FM 0 4

Cleveland Salem WKNR/VVRMR 4 0

Columbia SC Inner City WARQ-FM/VVMFX-FM/WOIC/VVWDM-FM 1 3

Dallas Salem KDGE-FM 1 2

Daytona Bch Mega WGNE-FM 0 1

Denver HBC KXPK-FM 0 1

Denver Infinity KDJM-FM/KIMN-FM/KXKL-FM 0 3

Denver Salem KALC-FM 3 2

Des Moines Barnstable KGGO-FM/KHKI-FM 1 4

Greensboro Infinity WMFR/VVSJS/VVSML 3 0

Harrisburg Cumulus WNCE-FM/WNNK-FM/WTCY/WTPA-FM 1 3

Houston Cox KKBQ-FM/KKTL-FM/KLDE-FM 0 3

Houston El Dorado KJOJ AM-FM/KQYE/KSEV/KTJM 5 3

Jackson MS Inner City WJMI-FM/WKXI AF/WOADNVYJS-FM 2 3

Los Angeles Entravision KACD-FM/KBCD-FM 0 3

Los Angeles Salem KEZY/KXMX-FM 4 2

Melbourne Cumulus WHKR-FM 0 1

Orlando Infinity WJHM-FM/WOCL-FM/WOMX-FM 0 3

Pensacola URBan Radio WMEZ-FM/WXBM-FM 0 2

Phoenix HBC KKFR-FM 0 3

Phoenix Infinity KMLE-FM/KOOL-FM/KZON-FM 0 3

Reading Chase WRFY-FM 0 1

Richmond Cox WKHK-FM/WKLR-FM/WMXB-FM/WTVR 1 3

Riverside Chase KGGI-FM 0 1

San Diego Chase KSDO 1 0

San Diego Infinity KPLN-FM/KYXY-FM 0 2

San Francisco Chase KFJO-FM/KCNL-FM 0 2

San Francisco Rodriguez KXJ0-FM 0 1

San Jose Chase KSJO-FM/KUFX-FM 0 2

Shreveport Cumulus KMJJ-FM/KRMD AM -FM 1 2

Springfield MA Saga WHMP AM -FM 2 2

Waco Chase KRBQ-FM 0 1

Hawk (actually Kill Devil Hills). Thebuyer's name is taken from the localabbreviation for Outer Banks, whichis the more common named used forthis peaceful resort area. Broker:Gary Whittle, The Whittle Agency

Ackerley's Horizongets a little higher

New group Horizon Broadcasting,owned by, among others, BillAckerley, will expand its holdings insmall -market Oregon with the sta-tions of Grande Radio Inc. KLBM/KUBQ La Grande OR and KBKB/KKBC Baker OR will be coming for3/13/00 RBR

an undisclosed price. This will bringHorizon's total Oregon station portfo-lio up to 10 stations. The group'searlier activity was primarily in theBend -Redmond -Prineville area. Bro-ker: Andrew McClure, Dean LeGras,The Exline Company

Debco maintains an even KELE

Barbara E. Jones is entering the ranksof radio ownership via a $220K deal forKELE AM -FM in Mountain Grove MO.By the act of selling, Lou Wehmer'sCommunications Works Inc. exitsthose same ranks. Broker: Ralph E.Meador, R.E. Meador & Associates

Sold...moreTV & Radio

Stationsin 1999

than any othermedia

brokerage firm!

ELLIOT B. EVERS415-391-4877

BRIAN E. COBB202-478-3737

CHARLES E. GIDDENS941.514-3375

RADIO and TELEVISIONBROKERAGE APPRAISALS

MEDIA VENTUREPARTNERS

McCoy Broadcast Brokerage, Inc.

REAL RESULTS.

Closed!

KEXO 1230 AMKKNN 95.1 FMGrand Junction, CO

JOSEPH BENNETT McCoy, IIICOLORADO SPRINGS, COLORADO

719-630-3111 PHONE719-630-1871 FAX

HAMMETT & EDISON, INC.CONSULTING ENGINEERSRADIO AND TELEVISION

Serving the broadcast industry since 1952...

Box 280068 San Francisco 94128

HE707/996-5200

202/396-5200engr@h-e.comwww.h-e.com

Great OpportunityFour Station

SMALL MARKET GROUPExcellent growth - Latest equipmentGood Sales Record - Cash Flow

PRICE $2,750,000

Ralph E. MeadorR.E. Meador & Associates

P.O. Box 36Lexington, MO 64067

(660) 259-2544

The deals listed below were takenfrom recent FCC filings. RBR's Trans-action Digest reports on all deals thatinvolve assignment of a station li-cense (FCC Form 314) and substan-tial transfers of control of a licenseevia a stock sale (FCC Form 315), butnot internal corporate restructurings(FCC Form 316). All deals are listed indescending order of sales price.

$18,200,000 WRRQ-FM CP Nashville(Goddlettsville TN). Five -part deal result-ing in sale of 100% of the stock of Mid -TNBroadcasters LLC to DDBC LLC (LewisW., David W., John W. & Michael W. Dickey,Richard W. Weening). 12.5% from JohnHeidelburg, who receives WVOL-AM BerryHill TN (valued at $500K), $1M cash andtwo notes totalling $10.75M; 12.5% fromKatherine A. Stone, who receives $1M cash;25% from William E. Benns III, who re-ceives $1.4M cash and $250K note; 25%from Ronald T. Bledsoe, Charles W. Boneand C. Michael Norton, who receive total of$1.4M cash and $250K note; and 25% fromEleanor T. Mead and D. Whit Adamson,who receive total of $1.4M cash and $250Knote. Superduopoly with WNPL-FM,WQQK-FM. LMA until closing.

PROVEN REVENUEBUILDER

Custom Sports guides for your market.you sell the ads, we do the rest.

FOOTBALL /Combine BASKETBALL Print

&Radio forV HOCKEY GREATER RACING VALUE!!

For information kit and samples contact:P3 SPORTS GUIDES

877-462-5546

ri MEDIA BROKERS CONSULTANTSPZ

THE EXLINE COMPANY

46, VISIT US AT NABEAST TOWER SUITE 2169

LAS VEGAS HILTONANDY McCLURE DEAN LeGRAS

4340 Redwood Highway Suite F-230 San Rafael, CA 94903Telephone 415-479-3484 Fax 415-479-1574

8

by Jack Messmer & Dave Seyler

$8,000,000 KNRQ-FM, KNRQ-AM,KZEL-FM Eugene -Springfield OR(Cresswell, Springfield, Eugene) fromMcDonald Media Group Inc. (William W.McDonald) to Cumulus Media Inc.(O:CMLS) (Richard Weening, Lew DickeyJr.). Cash. Existing duopoly.

$7,500,000 WRSC-AM, WBLF-AM,WQWK-FM, WNCL-FM State CollegePA (State College, Bellefonte, UniversityPark, Port Matilda) and WQKK-FM,WGLU-FM Johnstown PA (Ebensburg, Johnstown)from Marathon/Pennsylvania LLC (BruceBuzil et al) to Dame Broadcasting LLC (J.Albert Dame). $500K escrow, balance incash at closing. Existing duopolies in bothmarkets. LMA since 1/27

$5,000,000 KSAH-AM San Antonio (Uni-versal City TX) from Ganadores Corp. (MiguelA. Villareal Jr.) to Rodriguez Communica-tions LLC (Marcos A. Rodriguez). $500Kdeposit, total of $4,722,223 cash at closing,$277,777 into holdback escrow account.Broker: Gammon Media Brokers (buyer)

$4,025,000 WVOM-FM, WBYA-FMBangor ME (Howland, Searsport) fromMoon Song Communications Inc. (JerryEvans) to Communications Capital Man-agers LLC (Michael H. Oesterle, G. Wood-ward Stover II et al). Cash. Existingduopoly. Broker: George Silverman &Assocs. (seller)

$3,600,000 WBRQ-FM Puerto Rico(Cidra PR) from American National Broad-casting Corp. (Fernando Vigil Jr.) to ArsoRadio Corp. (Jesus M., Luis A. & AnthonySoto). Cash. Superduopoly with WFID-FM, WPRM-FM, WZAR-FM, WLEY-AM,WNEL-AM, WUNO-AM.

$3,450,000 KQAK-FM Bend OR fromJJP Broadcasting Inc. (Juan E. Rodriguez -Diaz) to Horizon Broadcasting Group LLC(William Ackerley, Keith Shipman, DanWalker et al). $350 escrow, balance incash at closing. Superduopoly.with KIJK-FM & KRCO-AM Prineville OR and KWEG-FM Warm Springs OR. LMA since 1/31.Broker: The Exline Company (seller)

$3,000,000 KLNT-AM, KNEX-FMLaredo from Rio Grande Media Inc. (MiguelA. Villareal Jr.) to Rodriguez Communica-tions LLC (Marcos A. Rodriguez). $400Kdeposit, total of $2,777,777 cash at closing,$222,223 into holdback escrow account.Broker: Gammon Media Brokers (buyer)

3/13/00 RBR