NJBA Weekly Newsletter Friday, December 4, 2009

AM/FM Radio Dominates Audio Day

Free-over-the-air AM and FM radio composes over 50% of the typical America’s audio day. Not a surprise to NJBA’s friends and family. But Nielsen reports that the average American (age 18+) consumes 2 hours and 45 minutes of “audio content” each day, and broadcast AM/FM radio overwhelmingly dominates the spectrum, with literally 50% of the listening. The rest is divvied up among CD/tape players (16%), satellite radio (8%), iPod/MP3 players (5%), streamed audio on the computer (4%) and MP3s stored on a computer (4%). The statistics are from Nielsen’s “How U.S. adults use Radio and Other Forms of Audio.” 

Form 323 Controversy Continues

Problems with the revised Form 323 continue to pop up across the broadcaster universe, which is the subject of regulatory filings from, among others, the law firm of Fletcher Heald & Hildreth. In its Petition for Reconsideration (made attendant to its previously filed Motion for Stay)  FHH highlights a number of those problems, pointing out in particular that the Commission isn’t supposed to impose significant new regulatory burdens without first providing the opportunity for public comment through a rulemaking proceeding. Here, the FCC’s new form would require each and every individual with an “attributable interest” in a broadcast licensee to cough up his/her social security number to the Commission (in order to get themselves FCC Registration Numbers – or FRNs – which they would then have to include in the new Form 323). Forcing disclosure of such sensitive Identity-Theft-Prone information as Social Security Numbers is certainly a new and significant regulatory burden, which was never previously hinted to by the Commission. Obviously, this is one more hurdle the FCC will need to overcome forcing the delay in filing to next year.  

EAS Needs Broadcasters

There is currently a “pop” culture movement to displace Broadcasters as the preeminent distribution conduit for EAS emergency alert messages. The NJBA is concerned that this mind-numbing “pop” culture, which is taking over the nation is dangerous. Especially since our national radio audience continues to grow! (See QN’s first article) Sure, these handhelds can augment the overall reach of EAS. They are certainly terrific for fun, casual banter and everyday normal business applications, but they have an inherent EAS flaw in their stacking capacity, which is necessary to make them economically viable. Moreover, they are easily jammed (as we experience at Presidential events); they use up “precious” battery life exquisitely faster than typical portable radios; they typically require 110 v electricity/power to recharge since most, if not all, do not take fungible, common batteries; and they are not designed or meant to be listened to by more than one person at a time.  In this regard, the NJBA continues to push to augment and upgrade our broadcast EAS nationwide. Furthermore, we should enlighten our fellow Americans as to the real dangers present in relying on inherently unreliable distribution vehicles, and acknowledge the ubiquitous nature of free-over-the-air radio and TV along with the extraordinary value broadcasters bring to the EAS equation, efficiently and consistently, with no cost to the public. A relatively small public investment in our EAS infrastructure is most prudent and needed at this time.

NJBA is a Part of the Solution to NJ’s Image Woes

Not many governors take office in an economy as bad as the one Governor-elect Chris Christie will inherit in January. Christie's campaign pledges to cut taxes will quickly run into the challenge of the state's dire finances. This according to NJBIZ and the Record, which reports that the dismal state of the New Jersey economy puts the focus squarely on the one thing that state government can do to improve the situation: improve the business climate. The NJBA will continue to work to help improve the suspect image portrayed of the Garden State and has reached out to the new administration and legislature to make them aware of our broadcaster members’ tremendous audience reach and our important media assets. 

Congress vs. PPM

The House Oversight and Reform Committee of the US House of Representatives held a hearing into the Arbitron PPM controversy this past Wednesday, validating the NJBA’s initial claim over one year ago that inadequate sample size is a chief concern of many New Jersey broadcasters. At the hearing, the overall technology was not called into question so much as the survey sample, particularly when it comes to recruiting and retaining young members of minority groups. Also, the MRC’s George Ivie detailed just what Arbitron needs to do to get the service accredited. MRC recommendations hold that rollout should not occur until accreditation is achieved, and that the old system should remain operational until accreditation. Ivie said that Arbitron has been working hard to improve PPM, and that it has indeed been listening to suggestions. The NJBA is a member of the MRC and President Paul Rotella serves on the Board of Directors, and is a member of the Radio and Television Committees representing New Jersey Broadcasters’ interests. Arbitron has also been working with the NJBA to help resolve many of these issues but there are still concerns both parties are working to address.  

Carl Butrum New VP of Broadcasters Foundation of America

Longtime NJBA friend Carl Butrum was appointed Vice President of the BFA and will be tasked with the responsibility of fundraiser in chief for next year’s Celebrity Golf Fundraiser in Bronxville as well as helping with overall fundraising and outreach. BFA president Jim Thompson says, Carl’s got “a unique understanding of both the broadcast and non-profit industries.” He’s been the Executive VP of Sales for Hispanic Broadcasting Corporation, Senior VP at Katz Media Group and president of its Eastman Radio rep firm. And – he’s been the president of the non-profit Bayliss Foundation that raises money to fund scholarships for aspiring broadcasters. Now the money Carl raises will go to direct aid for broadcasters down on their luck, and to their families. Individual memberships to the Broadcasters Foundation are $150 and they truly do great work that’s sadly more in demand than ever because of cutbacks and the economy.” The NJBA offers our congratulations to Carl and the BFA! For more information about the worthwhile activities of the Broadcaster’s Foundation visit their website: www.broadcastersfoundation.org

The Trenton Report: From the Marcus Group

Call this Legislator anything but “lame” lame duck! The gubernatorial transition and lame-duck Legislative session are well underway. Governor-elect Chris Christie has not hesitated to cry foul as the current administration attempts to tie up loose ends. So far, Christie has denounced budget projections, called for a halt in spending and objected to Middlesex County Sheriff Joseph Spicuzzo’s nomination to the New Jersey Sports and Exposition Authority. Christie also directly responded to Assemblyman McKeon’s proposal to change a rule on the gubernatorial appointment of a U.S. Senate seat replacement. The proposal would require the vacant seat to be filled with a member of the same political party as the departing senator. Additionally, with his transition team plowing full-steam ahead to identify potential cuts in the state budget, Christie was quick to respond to the State of NJ Commission of Investigation’s report issued this week. The SCI report states that New Jersey taxpayers would save tens of millions of dollars if local governments eliminated wasteful and excessive public employee benefits.

Do You Tweet?

David Oxenford of Davis, Wright Tremaine is offering NJBA members invitations to two free web-based seminars about the social media and the potential legal liability that station owners may have for the actions of their employees on Facebook, MySpace, Twitter or other social media sites.  His firm is doing two webinars, on December 9 and 15, (12 noon to 1PM) to address the legal issues for employers raised by social media.  And what's best - they are FREE!  While the seminars are not necessarily broadcast-specific, they will certainly address issues that apply to media companies.  For Registration Info, please CLICK HERE  For Questions: Contact CassandraWiday@dwt.com. Thank you David!

Radio Sales Today Sales Tip: Make the Most of Year-End
We begin to hear all too often, "It's the holidays, call me sometime next year." This time of year, there are usually two kinds of buyers -- those that have a valid reason to wait, or they are just not interested. But, according to a recent survey of 125 decision-makers, 92% of the time, buyers say they want to get their paperwork off their desk by year end. Focus on the "close now" buyers that are ready to confirm and let your "close later" prospects know of your recent closing deals. They may think they are missing out on something with you. Bottom line, this is the time of year that you need to be competitive with yourself. Get into the next 19 days by giving it your "all out" mode and watch how business will continue to come your way. Soon the holidays will be here and you will have plenty of time to rest and re-energize for more business to conduct on the horizon. Source: Business strategist/consultant Deborah Gardner.

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.

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