NJBA Weekly Newsletter, Friday, July 31, 2009

Congressman Rodney Frelinghuysen Signs On To Local Radio Freedom Act

In a late breaking development, the New Jersey Broadcasters Association is proud to announce that New Jersey Congressman Rodney Frelinghuysen (NJ-11) is the newest Member of Congress to add his name to the growing list of bi-partisan cosponsors of H. Con. Res. 49, The Local Radio Freedom Act, bringing the total number of co-sponsors up to 246!  

And, the Congressional Budget Office’s analysis of the proposed Performance Rights Act is in, and CBO economists conclude that the impact on commercial radio "could be substantial.”

The NJBA wants to extend its sincere gratitude to Congressman Frelinghuysen for recognizing the vital importance of this bill and for taking a courageous stand against the foreign owned record companies in favor of New Jersey Broadcasters and the citizens of the Garden State.  We are hopeful that the remaining Congressmen not yet supporting this bill, Congressmen Holt, Rothman and Payne, will soon join their colleagues in recognizing the unique importance of keeping Free-Over-The-Air Radio FREE!  Thank you, Congressman Frelinghuysen, and a special thank you to our devoted New Jersey Broadcasters. 

Save the Date

On August 12th, the NJBA, in concert with the Michigan Association of Broadcasters, will be sponsoring a Sean Luce presentation that will be webcast live, at noon (12PM-4PM Eastern) with an email and a phone number available for questions. The webcast sales seminar/webinar will address the challenges and opportunities to selling in the current economic climate in a four hour session titled The Perfect Storm: Maximizing Your "Air Force" and "Ground Force" Sales. There will be no cost to NJBA paid members and their employees/staff in good standing. The webcast will be archived online and accessible to registered participants for six months. This seminar will help you sell advertising in today's economy.

Sean Luce has been a good friend to the NJBA and presented at our conference last year. Sean will show reps how to take a laser beam approach to increase your radio and TV sales. This is the most advanced radio and TV sales seminar your sales reps will attend for free and please encourage them to participate. What Sean will present is the newest and freshest media sales information today. Attendees will benefit from his experience on the street, side by side with radio, TV and Internet sales reps daily. As usual in Sean's seminars, the audience is involved in case studies and engaged and will leave with ideas and "real world" techniques that will help them sell radio and TV right after they leave the seminar. Stay tuned for more details on how to “sign on”. We’ll be sending a special “broadcast” email to you next week as to how to log on to this special event. Please Note: NJBA must know how many people from your station will be accessing this special web-cast, either now or in the future by next week! Please contact Mary at the Broadcast House no later than August 5^th to register for this event.

NJBA in DC

NJBA Chairman Bob McAllan and President Paul Rotella were back in Washington this week, continuing the Association’s efforts to obtain vital funding for New Jersey’s failing EAS System and to squelch the Performance Tax, which threatens New Jersey radio. As of this writing, we are up to 246 cosponsors on H. Con. Res. 49!  This effort will be supplemented with visits to Members’ District offices during the August recess, which starts on Friday at 5PM (The Senate goes out next week on August 7^th.)  McAllan and Rotella visited with many of our Congressmen, as well as with both of New Jersey’s Senators and staff, to stress our very serious concerns over the deficient EAS system and non-existent PEP station in the Garden State, as well as the wrongheaded P-Tax measure, which incidentally, will be taken up by the Senate Judiciary Committee on August 4th at 2:30 pm. (Interesting, especially since the NJBA and NAB were assured that the measure would never even reach the Committee for consideration this Session.) Commonwealth Broadcasting President/CEO and NAB Joint Board Chairman Steve Newberry and Jim Winston of the National Association of Black Owned Broadcasters will be among the witnesses at the hearing. NJBA President Rotella is expected to attend this “mark-up’ but it makes you wonder about all of the recent pronouncements from various officials that they are not in favor of the Fairness Doctrine.  Eternal Vigilance!

Special thanks to Congressman Smith for spearheading the NJBA’s effort to secure the necessary funding of the EAS system and for his faithful support of NJ broadcasters, and to Congressman Alder and Frelinghuysen for their  bold leadership against the Performance tax. (Please don’t forget to run “Issue” and “Thank You“spots to our valued Congressional Reps during the busy summer months, all of which are available on our website.)

“It won’t be called the Fairness Doctrine…”

One D.C. expert is convinced that some leading Democrats have a grand plan to re-institute a rule requiring balance on the airwaves – just the thing that conservative talk show hosts have made such a boogeyman out of. This may sound like a paranoia alert, but the D.C. guy says “I’ve never seen such communication between the FCC and the White House.” I asked how often they’re talking, and he says “daily.” He describes a constant stream of people from the Portals (the FCC) visiting the White House. He acknowledges that both President Obama and new FCC Chairman Julius Genachowski have waved off a return of the Fairness Doctrine as it existed until 1987. But he believes “they’ll have something like it, under the guise of the FCC’s Localism initiative or something else. It might even be a rider onto some bill in Congress.” Would that be constitutional? Probably not. But more and more folks seem to think there will be an effort from Congress and/or the FCC to “restore balance” to radio – particularly talk radio. If you think the conservative talkers have made a lot of noise about the Obama birth certificate, wait until they see a law or regulation about “balance.” (Thanks to Tom Taylor and Taylor on Radio for this article.)

NAB Radio Board Chairman Applauds NJBA Members

NAB Radio Chair Charles M. Warfield, Jr., President / COO of ICBC Broadcast Holdings, Inc. recently sent his congratulations and best wishes to the NJBA membership for their dedication in the fight against the Performance tax. Without question, the effort made on the part of our dedicated membership is turning the tide on all issues that hurt our industry. In a message to NJBA President Paul Rotella, Mr. Warfield said: “Thank you for your aggressive leadership with the NJBA on the issue. The association's ongoing support and that of the grassroots efforts from other Broadcaster Associations is driving the tremendous support for H. Con Res 49. Please extend the appreciation of the NAB and particularly the NAB Radio Board to your membership.” Charles has been a fierce advocate for radio broadcasters and he will be a showcase panelist at the NAB Radio Show Super Session set for Thursday morning (September 24^th) in Philadelphia. Thank you Charles, for the nice pat on the back. You are most welcome!

State Associations Are Key to Legislative Success

Maine Association of Broadcasters President/CEO Suzanne Goucher also sent Kudos to the NJBA this week. She says: “…What’s really turning the tide (In Congress against the Performance Tax) is the power of constituency, as exercised by the CEOs of the 50 state broadcaster associations. NAB does a fantastic job of organizing these efforts, but it would be nice if some kudos could be spared for us ‘boots on the ground’ troops who have worked mightily to ensure a super-majority for the House resolution, and who are now applying the same pressure on the Senate side.” Suzanne cites Paul Rotella of the New Jersey Broadcasters Association, “who just lined up Congressman John Adler as a co-sponsor of the Green-Conaway resolution.” That’s significant because Adler had previously co- sponsored the pro-royalty H.R. 848. Goucher calls the turnaround “a major coup.” Thanks Suzanne, and to you and all of our most valued sister state associations!

The Trenton Report from The Marcus Group

BLACK THURSDAY:    “Black Thursday” was the infamous nickname given to October 24, 1929--the first day of the Stock Market Crash.  It took on a new meaning last Thursday in Trenton as two state legislators were among 44 arrested in New Jersey in a sweeping federal undercover sting operation involving charges of political corruption, money laundering and the sale of body parts.   Assembly Speaker Joe Roberts moved quickly to strip both legislators of their committee assignments. Governor Corzine and Republican candidate Chris Christie called on the legislators and other named public officials to resign their posts. To date, one Mayor has resigned and one of those arrested has died, an apparent suicide. The Star ledger reports that law enforcement is seeking more evidence and, perhaps, additional targets, federal investigators have issued a flurry of subpoenas in connection with a wide-ranging corruption investigation that has rapidly altered New Jersey's political landscape. These events have dominated local news and once again put New Jersey corruption in the national spotlight. They largely have squeezed the gubernatorial campaign, including Governor Corzine's selection of Senator Loretta Weinberg as his running mate, out of the main news coverage.

More Questions About PPM in Congress

Ten House members have asked the Government Accounting Office to conduct a study into PPM methodology and its effect on advertising revenue. House Judiciary Committee Chairman John Conyers (D-MI) and colleagues including Darrell Issa (R-CA), Rick Boucher (D-CA), and House Oversight and Government Reform Chairman Edolphus Towns (D-NY) have asked the Government Accountability Office to look into Arbitron's Portable People Meter. Conyers said in a statement. "I believe it would best serve the public interest to conduct an independent review of the methodology and accuracy of this process." Arbitron replied that it is already cooperating with an FCC notice of inquiry -- not a formal investigation -- into the PPM methodology, and Towns' Oversight Committee has asked the FCC to share the information it's gathered. Minority-targeted broadcasters have been among PPM’s most vocal critics. Inside Radio reports that a new analysis among adults 18-49 of the top ten stations across the first 20 commercialized markets puts some numbers behind those arguments. It shows their drop is more than double what general-market stations have seen. Arbitron said it will "continue to monitor the situation" and work with the GAO with regard to the lawmakers' request to the oversight panel. Arbitron then added a note that “The PPM radio audience estimates are currently used as the basis for buy/sell transactions of radio commercial time among subscribing stations, agencies and advertisers in 20 major US markets.” Of course, Arbitron’s PPM methodology remains unaccredited in several markets, including the New York Metro market.

What’s New at the FCC?

The Federal Communications Commission will be back to full strength just as soon as Mignon Clyburn (D) and Meredith Attwell Baker (R) take their oaths. The full Senate has approved the nominations of Republican Meredith Attwell Baker and Democrat Mignon Clyburn to fill out the remaining two vacant seats on the FCC. The vote came by unanimous consent, signaling neither had any problems winning Senate approval

FCC Chairman Julius Genachowski adds a new post, as Defense Commissioner, directing the homeland security, national security, and emergency-preparedness activities of the commission." Genachowski will represent the FCC in interagency matters pertaining to those issues, and will be the FCC's main point of contact on matter related to the Department of Homeland Security. The new FCC Chairman will also serve on the Joint Telecommunications Resources Board. William Lake was named chief of the FCC's Media Bureau, while Kris Monteith moves from chief of the Enforcement Bureau to deputy chief at Media, and Robert Ratcliffe moves from acting chief to deputy chief. Suzanne Tetrault was named new deputy chief in the Enforcement Bureau, while Sharon Gillett was named chief of the Wireline Competition Bureau.

FCC Sanctions NJ Radio Station

Quick News never likes to report bad news about a New Jersey Broadcaster, but we thought this could be a good “teaching moment” for our membership. The FCC issued a Forfeiture Order for a monetary forfeiture in the amount of $4,000 to James J. Chladek, a licensee of AM radio station WXMC in Parsippany-Troy Hill, New Jersey, for willfully and repeatedly violating Section 73.3526(e) (12) of the Commission’s Rules by failing to maintain radio issues/programs lists in the public inspection file on July 28^th. The WXMC’s Public File did not contain Quarterly Issues and Programs Lists. Obviously, the station never participated in the NJBA-ABIP…we could have saved them a lot of money. Call NJBA headquarters to schedule an alternate inspection today!

Governor Corzine Picks Weinberg for Lt. Gov.

Gov. Jon Corzine announced his pick for lieutenant governor, state Sen. Loretta Weinberg.  Corzine and Weinberg, who stressed her commitment to good government and independence, especially in the wake of the public corruption scandal that rocked the state this week. Independent gubernatorial candidate Chris Daggett has tapped a veteran educator as his running mate, Frank J. Esposito, a professor and former administrator at Kean University in Union, as his lieutenant governor nominee.

New FM Translator at 104.7 in New Brunswick?

The New Jersey Board reports the construction ("on the cell tower opposite the WMGQ tower behind the bus station near Jersey Avenue"). And says "the owners of the 100.7 in Edison" - that's Asian-formatted W264BT - are putting it on. A quick check reveals that W284BW, Franklin, NJ is a construction permit licensed the same party that's operating Edison - Om P. Tschand. Many broadcasters are concerned with the "translator invasion" of the FM dial.

New Satellite Phones Soon to be on Market

Cell phone technology has provided broadcasters with a ubiquitous news gathering tool as cellular networks now offer nearly seamless coverage across the U.S. Two Internet Protocol (IP)-based satellite phone systems will soon be available to broadcasters offering new options for satellite-based remotes. TerreStar Networks of Reston VA, has launched its first satellite, the geostationary TerreStar-1, this month, and last week announced the successful completion of an end-to-end phone call over that satellite which they claim is "the world's largest, most advanced commercial communications satellite."

NAB Wants to Know: What's Working for You?

Imitation is said to be flattery and the NAB wants to encourage stations to borrow ideas from one another. During good times and bad, broadcasters are making a difference in communities across the country and seizing opportunities in this digital age. Have you come up with innovative ways of bringing in new revenue? Found a way to prevent layoffs? Have you discovered a unique way to keep costs down? Are you finding new opportunities using the power of technology? The NAB would like to highlight your station or company's great work in our newsletters, conferences and programs. Please send your stories about "What's Working for You?" to the Nab at their special web site:

http://www.nab.org/AM/ASPCode/forms/RallyStories.asp and let them know about your successes and innovative ideas in this challenging environment. One station will win two registrations to the NAB Show, April 10-15, 2010, along with a hotel room for two nights at a sanctioned NAB Show hotel. Entry deadline is September 30. Random drawing to be held October 6. Winner to be announced in the October 12 edition of the NAB Pulse.

Book Your Hotel for the NAB Radio Show Today and Save

The NAB Radio Show® offers special rates at the show's official hotels! Make your reservations online - hurry, rooms are going fast! The Show is set in Philadelphia and will be held on September 23^rd through the 25^th. Get more details at the NAB website:

http://www.nabradioshow.com/2009/about/hotelinformation.asp

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.