NJBA Weekly Newsletter, Friday, September 25, 2009

2009 Marconi Awards Announced at NAB Radio Show

Last evening, the 2009 Marconi Awards were announced and top honors for Network/Syndicated Personality of the Year went to talk show host Dave Ramsey. Citadel's Talk KKOB-AM/Albuquerque was awarded the Marconi for Legendary Station of the Year; and Philadelphia’s own Jerry Lee took home two of the prestigious awards for his Philadelphia station WBEB B-101, which was selected as the Major Market Station of the Year and AC Station of the Year. The NJBA congratulates all of our colleagues from across the country on their accomplishments. 

NAB Names Gordon Smith to President-CEO Post

Former U.S. Sen. Gordon H. Smith will be the new president and CEO of the National Association of Broadcasters. Smith will officially join NAB on Nov. 1. Smith, a moderate Republican who is known as a pragmatic lawmaker with good relationships on both sides of the aisle, represented Oregon for two terms in the U.S. Senate and served on the Commerce Committee. A delegation of NJBA officers and directors met with the new Broadcaster-in-Chief this week in Philadelphia while attending the NAB Radio Show.  Many members have been wondering just who the new president of NAB is. Some have called him an Orthodox Republican. Of course, it’s hard to predict how a person will perform in a specific role until they have been incumbent therein for a reasonable amount of time.  Born in Pendleton, Oregon, Smith attended college at Brigham Young University, received his law degree from Southwestern University School of Law in Los Angeles, and practiced law in New Mexico and Arizona before returning to Oregon to direct the family-owned Smith Frozen Foods business in Weston, Oregon. Smith Frozen Foods is now a $50-million-a-year enterprise, and one of the largest frozen foods companies in America. Before serving in the U.S. Senate, Smith was elected to the Oregon State Senate, rising to the position of president of that body after only three years. The 57-year-old Smith served in the U.S. Senate from 1996 to 2008, where his committee assignments included the Senate Commerce Committee, the panel that oversees all broadcast-related legislation. Smith also served on the Senate Energy and Natural Resources Committee, the Senate Finance Committee, and the Senate Foreign Relations Committee. He has been widely respected as a pragmatic lawmaker able to successfully reach across party lines. Smith's role on the Commerce Committee and as the Chairman of a Senate High Tech Task Force helped foster his interest in new media and new technology issues. However, Mr. Smith, who came from Oregon, and went to Washington, has a long record of public positions adopted in the context of his political career and they do shed some insight into his political philosophy. He is certainly a bright and charismatic person, and has a firm grasp of many broadcaster issues. He is not afraid to “knock on doors” and has maintained a solid relationship with his former Senators, including his erstwhile colleague from Illinois. Smith and his wife Sharon are the parents of two children and have one grandchild.

At the NAB Radio Show this week, Smith said that the NAB will be “fostering an environment where broadcasters can use emerging technologies” for their benefit. It’s clear the former Senator from Oregon knows he’ll be “reaching out to Apple and Microsoft to include FM radio in their products.” He adopts predecessor David Rehr’s term “performance tax”, on the grounds that it “taxes broadcasters’ ability to stay in business.” Smith said that he was “ready to hit the ground running”, and taking a page out of NJBA President Paul Rotella’s opening remarks to broadcasters in New Jersey last year, the new NAB chief said “It’s a challenging and exciting time to be in the broadcasting business." As with his predecessor, the NJBA anticipate a close working relationship with our new national president.

We Broke the 250 Mark on the Performance Tax

As of this writing, we are now up to 251 cosponsors on H Con Res 49. Rep Sestak (PA) is the newest Congressman to sign on. This wonderful and most impressive legislative achievement is due in large part to our fantastic New Jersey broadcasters, and broadcasters around the country, that have been hard at work, advocating our important message, both in person, and over-the-air! If ever you wondered about the effectiveness and wide ranging reach of New Jersey radio…just ask our Congressional delegation. We are still hoping that Congressmen Rothman, Holt and Payne will support our bill. NJBA President sat down with Congressman Payne last week and explained the need for every New Jersey Congressman to support their local broadcasters and the local communities against the greedy foreign owned record labels. (We wonder how many of these record executives vote in their districts!) FYI: We are still at 25 cosponsors on S Con Res 14. So as you can see, there is still much work to be done. Thank you to all of our valued members for airing our Performance Tax advocacy spots over the summer. New Senate spots are ready for your use on the member side of our website.   Congratulations New Jersey Broadcasters, and let’s keep going! 

NJBA Represented at FCC Congressional Hearing

Last week, NJBA President Paul Rotella attended the House Energy and Commerce Subcommittee on Communications, Technology, and the Internet hearing titled, "Oversight of the Federal Communications Commission in Washington where the five FCC commissioners reiterated their opposition to reviving the Fairness Doctrine during their first trip to Capitol Hill as a group.  “It won't happen," Chairman Julius Genachowski pledged to the House Communications Subcommittee, ‘either through the front door or the back door”.  This was the first oversight hearing since Julius Genachowski became Chairman of the Federal Communications Commission (FCC).  The hearing examined the views of the FCC Commissioners on a wide array of issues, including the progress of the national broadband plan, challenges in creating a national public safety broadband network and wireless competition. All five commissioners also went on record supporting expansion of LPFM.  

Is it really Fair?

FCC Commissioner Robert McDowell said that many proposed localism requirements, like content disclosure forms and mandatory community advisory boards, could achieve Fairness Doctrine goals "through a different route." This is contrary to all assertions to the contrary made by the Chairman that he is not in favor of the Fairness Doctrine (“Either through the fount door, or the back door”). But is there a “Trap door” through which broadcasters could fall through if they are not very careful? Stay tuned. The republican commissioner made these comments in a speech before the National Religious Broadcasters Capitol Hill Media Summit in Washington yesterday. 

EAS Repair and Upgrade- New PEP Station a Top Priority

While in DC, Paul also met with many Congressmen, Justice Department and FEMA officials regarding the need to fix our antiquated EAS apparatus in New Jersey, as well as secure funding for the establishment of a much needed Primary Entry Point Emergency radio station for New Jersey, which although required by law, has been neglected for over ten years. This item is a priority set by the NJBA Board of Directors in our continual commitment of public service to the citizens of the Garden State. Special thanks to NJSECC Chairman Rich Archut and Bob Schroeder of the New Jersey State Police for their ongoing assistance and support of this vital endeavor. 

NJBA Contributes to “Branding New Jersey” Effort

NJBA President Paul Rotella participated on a round table panel discussion among New Jersey Advertising agencies and executive in the continuing efforts to “brand” New Jersey for advertisers across America.  Carol Fletcher of the NJ Record reported that many in our industry are “tired of living in the shadow of Manhattan and Philadelphia advertising firms, marketing and public relations agencies and media businesses in New Jersey must brand the state as a worthy market for advertising dollars. Paul and other media-oriented panelists discussed the state of the industry Tuesday at The Round Table, a forum at Montclair State University organized by the New Jersey Advertising Club based in North Arlington. Stu Bodow, president of the NJ Ad Club says: the $1.5 billion total brought in by the state's top 25 advertising and public relations firms in fees and billings in 2008 are enough to drive efforts to keep advertising dollars in the state. The industry overall, which includes vendors such as printers and marketing firms, is estimated to generate about $10 billion annually in New Jersey. The Ad Club says the $1.5 billion total brought in by the state's top 25 advertising and public relations firms in fees and billings in 2008 are enough to drive efforts to keep advertising dollars in the state. The industry overall, which includes vendors such as printers and marketing firms, is estimated to generate about $10 billion annually in New Jersey.” Special thanks to the NJ-Ad Club and all of the advertisement agencies and our media partners who made this inaugural meeting a great success.  

It’s Not So Bad…Really

Financial experts told the Dickstein Shapiro opening event that many broadcast companies are going to have to rework their balance sheets. But the good news is that the radio business is still profitable, once the debt issues are resolved. Despite the impact of the worst recession since the Great Depression, radio operators on the Dickstein Shapiro panel at the NAB Radio Show in Philadelphia expressed confidence that radio is still a good business. The most optimistic is Entercom CEO David Field, who insisted that there is the potential for radio revenues to rise double-digits in 2010.

Swine Flu May be a Real Threat This Time

Key Flu Indicators published by CDC about influenza disease activity in the United States last week found that influenza activity continued to increase in the United States compared to the prior weeks. Visits to doctors for influenza-like illness (ILI) are increasing nationally and are higher than what is expected during this time of year and have increased for five consecutive weeks now. This is very unusual for this time of year.  Twenty-one states are reporting widespread influenza activity at this time. They are: Alabama, Alaska, Arizona, Arkansas, Florida, Georgia, Illinois, Kansas, Kentucky, Louisiana, Maryland, Minnesota, Mississippi, Nevada, New Mexico, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, and Virginia. (Thankfully, the Garden state did not make this list).  Any reports of widespread influenza activity in September are very unusual. Most troubling is that almost all of the influenza viruses identified so far are 2009 H1N1 influenza A viruses. These viruses remain similar to the viruses chosen for the 2009 H1N1 vaccine. The NJBA is working with OEM to develop a PEP/PSA campaign to alert our residents about prevention and vaccination best practices. 

Ad Tax Deduction Safe, For Now

The phone campaign to Congress on this issue was successful and Senator Bill Nelson (FL) no longer plans to introduce an amendment, during the health care mark-up, to deny the business expense deduction for pharmaceutical advertising costs. If passed, the impact of such a proposal will on media and advertising companies would certainly reduce advertising dollars across the board. We will continue to monitor this legislation. 

Broadcasters Foundation Fundraiser Raises Over $100k

Radio Ink reported that the annual Broadcasters Foundation of America Celebrity Golf Tournament raised more than $100,000.  NJBA Treasurer Joe Bilotta and President Paul Rotella joined Foundation President Jim Thomson and a host of radio luminaries at the important event held last week at Siwanoy Country Club in Bronxville, NY.  The tournament was sponsored by Evercore Wealth Management, with celebrities in attendance including LPGA stars Kim Halle and Aree and Naree Song; Dana Tyler; Scott Shannon; Touchdown Radio Productions President/CEO Gino Torretta; and KZL/Greensboro's Jack Murphy. "Co-chairs Joe Bilotta of Buckley Broadcasting and Tom O'Brien of NBC Universal were inspiration in guiding our efforts through a challenging economic year to a truly successful and well attended event." said Broadcasters Foundation President Jim Thompson. "The Celebrity Golf Tournament is one of the foundation's biggest fundraisers, and we are grateful to our sponsors and supporters." Arbitron sponsored a dinner and awards ceremony, with a live auction featuring bidding for a spectacular golf trip to Ireland. Other sponsors included Arise Air, BMI, Broadcasting & Cable, Katz Media, and Triton Radio Networks. The mission of the Broadcasters Foundation of America is to improve the quality of life and maintain the personal dignity of men and women in the radio and television broadcast profession who find themselves in acute need. This broadcaster driven foundation reaches out across the country to identify and provide an anonymous safety net in cases of critical illness, advanced age, death of a spouse, accident and other serious misfortune.

Learn more about this truly worthwhile charity at info@broadcastersfoundation.org .

Congratulations to Foundation Chair Lombardo, Treasurer Buckley, Joe, Tom, Jim and their entire team for putting on a successful and fun filled event!  

Two Arbitron Currencies Raise Ad Buying Issues

The Network Radio Research Council reminds ad buyers not to mix up diary and PPM numbers. Its bottom line recommendation is that ad buyers "base any post-buy analysis strictly on the survey upon which the decisions were originally made." So if the market has turned to the People Meter as currency since then, don't try to compare the diary-based numbers to PPM. The Council says independent researcher Charlotte Lawyer recently presented a forward-looking set of charts, and says those are only general guidelines - not to be used to "project future audience estimates based on intended PPM rollout schedules." Arbitron's annual Radio Today report, which includes PPM data for the first time, shows that 90 percent of consumers 12 and older hear radio every week. News/Talk/Information came in as the top-rated format in fall 2008. Meanwhile, House Oversight Committee Chairman Edolphus Towns (D-NY) says documents subpoenaed from the Media Rating Council show the MRC found "persistent problems" with minority samples for the PPM. Arbitron responds that it is "surprised and disappointed" at the "erroneous conclusions" of the Oversight Committee's analysis. 

October 10^th Filing Deadlines Approaching

Quarterly Issues/Programs List Required—The Quarterly Issues/Programs Lists covering the time period beginning July 1, 2009, and ending September 30, 2009, must be placed in the public inspection files of all radio, full-power television, and Class A television stations by this date.   

Reported Shield Law Shelved by Senate

The Associated Press reported that a bill (S.448) to give journalists a limited right to protect confidential sources from disclosure was sidetracked last Thursday, after senators from both parties said the current version could damage national security. The bill, supported by more than 70 journalism organizations including The Associated Press, would only apply to federal courts and leave intact state protections for journalists and their sources. 

NJ 101.5 Sparks Controversy About Gov Debate
Gov. Jon Corzine, D-N.J., has raised hackles at WKXW-FM in Trenton for reportedly becoming the first gubernatorial candidate in two decades to decline to participate in a live debate on the station. "Jon Corzine has now become the first candidate for statewide office in almost 20 years to turn his back on our 1 million listeners by refusing to appear on New Jersey 101.5 to talk directly to New Jersey voters about the issues that are important to them," WKXW News Director Eric Scott said in a statement posted on the station's Web site. Governor Corzine has consented to participate in a radio debate next month that will be presented on non-commercial WBGO-FM Newark.

NABEF Picks Reese as Chairman
Bruce Reese, president-CEO of Bonneville and a former chairman of the NAB Joint Board of Directors has been chosen as board chairman of the NAB's Education Foundation. Bonneville, through Reese's leadership, was an original backer of the NABEF's Celebration of Service to America Awards, which launched in 1999.