BETTER NEWS FOR BROADCASTERS

We say "doomed," of course, only in that peculiarly lighthearted, playfully hyperbolic way you have come to expect (in lieu of useful information) from Hits Daily Double, your number-one source for lighthearted, playfully hyperbolic discourse.

Merril Lynch analysts observe that declining interest rates have pushed media stocks higher in recent days, despite further deterioration of the ad market in the third quarter. Since the recent low of Sept. 20, major stocks have been rebounding. Viacom is up 33% from $30 to $40, and Clear Channel is up 14% from $37 to $42, for example.

While entertainment stocks are down 10% for the year to date, radio is up 18%. In the fourth quarter, entertainment and radio are both up by 13%.

Taking a broader view, Merril Lynch estimates that radio grew by 11.2% per year from 1995-2000, versus a gross domestic product increase of 5.9%. And while the downturn in 2001 has toned down that growth rate considerably, it is still estimated to be 1.8% ahead of the GDP at 6.8%—considered to be within the "normal" range.

Meanwhile, marketing strategy firm DMR is reporting that listener response to radio station marketing campaigns rose dramatically in the month following 9/11, meaning the number of people actually listening to the radio while listening to the radio has grown, which in turn means the conglomerates behind radio are that much closer to realizing their dream of a nation of pliable zombies programmed to do their bidding after only a few bars of "Layla."

This completes today's low-calorie serving of "good" news. We'll dish out more of the same as it becomes available.