NJBA Weekly Newsletter Friday, January 15, 2010

New PEP Campaign Starts This Month: USCG

The NJBA began a new PEP/NCSA program this week with the airing of the United States Coast Guard’s new recruiting campaign announcements. The USCG is a valued sponsor and the NJBA is proud to partner with the brave men and women of the Coast Guard (as well as our other faithful PEP sponsors, like the NJ National Guard) in helping make their recruiting mission for FY 2010. Congratulations to both services for making mission last year and we hope for many years to come! The NJBA asks all of our great New Jersey broadcasters to enthusiastically support this most valuable PEP campaign in the coming months.

EEO FCC Filing Deadline is February 1^st

The Annual EEO Public File Report is due on February 1^st. All NJ Stations must place in their Public Inspection File and post on their Web site, if they have one, their FCC Annual EEO Public File Report; and FCC Form 397 Mid-Term EEO Report Due for radio stations in New Jersey with 11 or more full-time employees, which must also prepare and file electronically with the Commission an FCC Form 397 Mid-Term EEO Report. FCC Form 323-E Biennial Ownership Reports are also due for Noncommercial NJ Stations by Feb.1^st. (Commercial stations will file their biennial ownership reports for 2010 when the FCC revises and re-releases the new FCC Form 323 Ownership Report for commercial broadcast stations.) 

Not a Good Week for Arbitron

OK: That was an understatement. The ratings giant took a few big hits this week with the revelation that its President/CEO Michael Skarzynski abruptly resigned, effective immediately, after he and the Arbitron board determined that he had violated an unspecified company policy.  Apparently, he lied to Congress. Not a good thing. Representative Edolphus “Ed” Towns (D-NY) said that deposed Arbitron CEO Michael Skarzynski “may have provided false testimony” during a December 2, 2009 House Committee hearing on the company’s PPM ratings service. Arbitron Board member William Kerr took over as president/CEO. This news broke the same day that the MRC denied PPM accreditation in 18 markets, including the New York and Philly metros for a second time. All of this bad press landed Arbitron in more than just the trades, as reported by the NY Times and others. As of this writing, Arbitron’s stock was down about ten percent. Making matters worse, New Jersey Senator Bob Menendez has also chimed in this week with a renewed call for a "thorough investigation" of the methodology behind Arbitron's Portable People Meter, a passive electronic measurement device, while commenting on his disdain for the recent actions of Arbitron’s erstwhile CEO. Saying the false testimony was "deeply troubling," Menendez said Congress is now obliged to review and investigate statements made during testimony to ensure that the committee "was not intentionally misinformed." To be sure, the recent revelations of Arbitron may also raise some very serious concerns related to PPM accreditation, which relies on accurate, truthful data. Moving forward, Arbitron will be sensitive to its credibility issues following this debacle. President Reagan said it in Russian best: "Doveryai, no proveryai"… Trust, but verify!  

Katz Media CEO Olds Has Good News

Radio is surging forward in the recovery. Just ask Katz Media Group CEO Stu Olds, who recently reported that advertisement placement for January was up 21% over a year ago.  The industry savvy CEO says Katz is seeing “large increases in dollars booked, sold inventory and pricing in 2010’s first quarter.” Olds says February is currently pacing up 2% while March is up 7%, for a combined 19% first quarter gain.  The data is in comparison to the first quarter of last year when shell-shocked advertisers were pulling advertising across all media, Olds says, “This resurgence appears to have real legs.” Small markets are seeing the quickest recovery, which are up by 30% in the first quarter. Olds says “inventory demand has translated into 36% more commercials being sold compared to one year ago, while no-charge spots are “down dramatically” with improvements seen on nearly a daily basis.”  In a note to staff, Olds wrote, “We need to make sure our customers understand that demand for radio inventory is intensifying. We’re not sold out, but we’re clearly seeing strong demand, earlier placement and increasing pricing.” The biggest advertising clients driving this growth include Safeway, Pfizer, Blockbuster, American Express, Chase, Comcast, H&R Block, Target, Honda, State Farm, CVS and Clear Wireless.  Olds says, “The turnaround is broad-based and will only improve as the economy improves.” 

Broadcasters Reach Out to Haiti After Earthquake

Once again, Broadcasters in New Jersey and around the nation are eager to assist in the Haitian relief efforts by pleading with their listeners to help their fellow men and women in the devastated Caribbean country following the horrendous 7.0 earthquake it experienced this week.  Many stations like WOR 710 AM have opened a donation place on their web sites and the FCC suspended the usual fundraising restrictions on non-commercial radio and TV stations, as it did after 9/11, the 2005 Hurricane Katrina disaster and the tsunami in Southeast Asia. FCC Staffer Michael Wagner is handling waiver requests, with details at the FCC web site and http://hraunfoss.fcc.gov/edocs. The NJBA supports these relief assistance efforts and expects our great New Jersey commercial broadcasters to play a key role in helping alleviate the impact of this catastrophe. More information on donations can be found at www.crs.org. 

Census Gearing Up for Ad Buy

RBR.com reports that the U.S. Census Bureau is getting ready to drop $133M into an advertising campaign designed to boost participation in the 2010 once-in-a-decade count of the US population, along with the gathering of various vital statistics. Census Bureau Director Robert Groves will unveil elements of the campaign, which will involve television, radio, print, online and outdoor advertisements. The campaign is being called “the most extensive and diverse outreach campaign in U.S. history.”  

FCC Commissioner McDowell Warns Radio

Inside Radio reported that Commissioner Robert McDowell recently opined that the “enhanced disclosure” required from television stations could come to radio too. The new TV form requires stations to file new quarterly forms detailing programming in very specific terms. Broadcasters complained that requiring such programming minutia would require they hire people just to complete the forms.  McDowell agrees the form is “onerous” and notes it’s been hung up at the Office of Management and Budget over arguments that it violates government paperwork-reduction laws.  But once that’s sorted out, he believes a radio edition may be next. “Radio licensees should be grateful that the TV folks were in the cross-hairs on the form first, but they might not be left alone for long,” McDowell writes in an op-ed for the Daily Caller.  McDowell says, “Whatever final guise it may take, the form is likely to become a main weapon in challenges to future license renewals.” As the FCC gears up for its quadrennial media ownership review, McDowell says it shouldn’t bother with reviving any “old localism rules at all.”  McDowell said, “…all of us should be asking why the Commission needs to devote scarce time and resources to reviving any old localism rules at all.” He went on to say that smart broadcasters are already “offering local news and other locally oriented programming that generates interest and loyalty among their viewers and listeners.”

Conclave Picks Jersey Boy

NJBA Mid Atlantic Broadcasters Conference Committee Member Bob Taylor will be co-chairing The Conclave’s 2010 Agenda Committee this year along with Harv Blain. New Jersey’s resident consultant and talent coach Bob Taylor has worked at major-market stations such as Z100/WHTZ and Hot 97/WQHT and programmed multiple stations for Clear Channel in Binghamton. The Conclave’s annual meeting is set for July 15-17. For more information check out the Conclave’s web site at www.conclave.com. 

Here They Go Again

There's a movement among special interest groups to limit free antenna TV, and millions of Americans who depend on it would lose out. Following New Jerseys’ great broadcasters’ historic campaign to educate Garden State residents on the benefits of the government-mandated digital TV transition, it is equally important to ensure that our viewers and listeners are aware of proposals in Washington now aimed at limiting free and local DTV service. Broadcast TV and Radio are the connections our communities rely upon, and any move to confiscate spectrum will hurt consumers and the public at large. Broadcasters are our lifeline to emergency information and local news we all need. It's one of the last free services in America that provides diverse and quality free entertainment. 

Nothing But Net

The Wall Street Journal reported that the FCC appears uncertain of its footing regarding proposed net-neutrality regulations after a federal appeals court raised jurisdictional questions. "The court," hearing a case regarding Comcast's purposeful Internet traffic bottleneck back in 2008, "focused a lot of time looking at the FCC's authority to do anything at all without an explicit legislative mandate," FCC Commissioner Robert McDowell said. 

The Trenton Report: From THE MARCUS GROUP  

We feel that New Jersey is twice as good as any other state. And in keeping with that philosophy, we’ll say farewell to two governors, not one. It is unprecedented for two Governors to leave their offices in the same week. But, it is happening over the span of a week in our State Capitol. Governor Corzine delivered his final State of the State Message Tuesday at a joint Legislative Session which also marked the departure of former Governor and Senate President Dick Codey from his Legislative Leadership position. Codey served two extended stints as Governor. The first came after the resignation of Governor Jim McGreevy in 2004 and the second after Governor Corzine suffered a near fatal automobile accident during his term. Codey will not be going too far as he will remain a member of the State Senate. Governor Corzine officially hands over the reins of power to Governor-elect Chris Christie at noon next Tuesday, January 19 in Trenton. While the departing Governor has not announced his future plans, it is widely believed that he will not seek elective office again. The NJBA thanks both future former Governors for their past service to the public and wishes them well in the future as a new era begins Tuesday for New Jersey. 

Performance Tax is a Cancer on Broadcasters and Listeners

The foreign-owned record companies “are lobbying Congress to impose a performance tax on local radio stations – taking jobs and money from local communities. As Congress heads back to Washington this week, a bill that would impose a performance royalty on radio stations remains on the list of unfinished business.  As Inside Radio reports, a survey they conducted shows a majority believe the industry will beat back the music industry's effort. The cancerous bills have already cleared both the House and Senate Judiciary Committees, although it has yet to get a vote on the floor of either chamber.  A key hurdle appears to be the number of signatures on a non-binding resolution opposing the fee.  In the House the list includes 251 names, with 26 Senators also signing the resolution.  As the battle of lobbyists continues, Inside Radio reported that “a majority of the radio industry believes the NAB will be able to convince Congress to reject the carcinogenic fee.  Nearly two-thirds (64%) rate themselves as “somewhat confident” with 16% saying they are “very confident” in an Inside Radio survey.  Yet the proposal has gotten further than ever before,” which has left many broadcasters worried, with good reason that it could be tacked on to a must pass piece of legislation like heath care of an appropriation bill and the P-Tax could be snuck in under the cover of darkness and it’ll pass.  The NJBA and NAB are vigilantly monitoring this situation and we need to reinforce our opposition to this industry destroying measure.  

QuickNews is provided for general information purposes only and should not be relied upon as legal or tax advice pertaining to any specific factual situation. Legal and tax related decisions should be made only after proper consultation with a legal professional of your choosing.

Broadcast House, 348 Applegarth Road, Monroe Twp., NJ  08831 (888) 657-2346 FAX: (888) 652-2329, njba@njba.com