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Volume 24, Issue 38, Jim Carnegie, Editor & Publisher
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Friday Morning February 23rd, 2007
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TV News ®
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 CBS in retrans pacts
CBS has said that its biggest retransmission consent renewals with major cable MSOs are still a couple of years down the road, but the company announced yesterday that it has signed pacts with nine cable operators. Although some are said to be among the top 25 MSOs, the cable systems the agreements cover are not very large. In all, they cover jut over one million cable subscribers in various markets with CBS owned and operated stations. Even so, CBS CEO Les Moonves says the new retransmission agreements establish a precedent, although he isn't disclosing just how much the operators are paying for retransmission consent. The deals cover analog, digital, multicast and HD rights to programming on CBS O&Os. "Clearly there is a new paradigm in the marketplace - one that recognizes the value of the content that we bring to our various audiences. This is a trend that bodes well for us going forward as future retransmission deals are negotiated," said Moonves.
TVBR observation: Terms were not revealed, but they must have been reasonable. No fuss, no muss. No airing industry v. industry laundry out before the public that cannot help but think that in the end, they're the ones who are going to be stuck with the bill one way or the other. CBS may have more leverage than the average television group, but nevertheless the apparent civility and resounding silence of the CBS/cable process is something to be emulated.
 Burns, PBS will risk
indecency fines
Documentary producer Ken Burns is getting set to unveil another multi-part epic on PBS. This time the subject is World War II, and like Steven Spielberg before him, Burns feels that he needs to use the language used by the soldiers to properly tell the story. It remains to be seen what the FCC will think. PBS is already gearing up a promotional effort for the series, including heavy emphasis on local tie-ins at member stations throughout the country. According to the Hartford Courant, one veteran of the war uses the s-word, and the f-word comes up when the terms SNAFU and FUBAR are explained. Burns noted that worse language was used in his prior series on jazz, and that there was full frontal male nudity in his Civil War series, in both cases without significant complaint. A PBS exec noted that the 325K risk will be at the local station level, not the network level, and that one such hit could put many of those stations out of business - some are said to operate with only 1M a year. The Courant noted complaints from a wide spectrum of non-profit and commercial producers, citing fearful executives and ambiguous rules as stifling.
TVBR observation: FCC Commissioner Michael Copps has been advocating a get-tough policy regarding indecent content, and recently said he thought that fines would probably be tailored to a station's ability to pay. But he is in no position to make that guarantee. Can PBS go on precedent, that the same topic, treated in a serious manner, will get a pass? You'd think that the Burns piece is even more serious than "Saving Private Ryan," since it is not a work of fiction.
TV revenues up for Journal
Journal Communications reports that revenues for its TV station group were up 3.8% in January to 9.1 million. We would note, though, that the company's biggest station, WTMJ-TV Milwaukee, is an NBC affiliate, so it faces tough comps from the Winter Olympics last year for the remainder of Q1. Radio also had a good month in January, with revenues up 2.6% to 4.9 million. That gave Journal Broadcast Group overall a 3.4% gain for the month to 14 million. It was a different story for the newspaper side. Revenues were down 2.6% to 22.3 million, with ad revenues down 4.2% to 15.3 million.
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 Conyers invites Karmazin
to Washington
Don't look now, satcasters, but the House of Representatives is already on your case. House Committee on the Judiciary Chairman John Conyers (D-MI) will unveil his brand new Antitrust Task Force for the occasion of the teeing up the proposed satellite audio merger, with Mel Karmazin as the main course. The hearing is scheduled for Wednesday, 2/28/07 at 3:00 PM Eastern. So far Karmazin, the current Sirius CEO and the surviving operating exec should the merger go through, is the only scheduled guest. Conyers said, "Digital music is at the cutting edge of technology and innovation. We are holding this hearing to allow Members to probe whether this merger will enhance or diminish competition in the digital music distribution industry. Our Members will explore how to define this new marketplace, and whether this merger will lead to increased choices and lower prices for consumers." Ranking Member Lamar Smith (R-TX) was thinking along the same lines, saying, "XM and Sirius provide unique programming options for millions of customers nationwide. Consumer's interests should remain our priority. This hearing will help determine whether customers will get higher or lower prices and more or fewer programming options with the proposed merger. In particular, the Committee will examine whether satellite radio competes against terrestrial radio, the Internet, or other emerging technologies."
TVBR observation: The perfect world for Sirius/XM would be for the committee to decide that satellite radio is indeed one small component of the entertainment universe. They must be heartened by the fact that both of the key committee members mentioned the need to accurately define the marketplace. However, the Democrats are in control and the word consolidation does not sit easy on their tongues these days. We expect Karmazin will have his work cut out when he sits before this new panel.
Univision to sell record labels, a few radio stations
We knew that Univision had to sell a few radio stations as new private equity investors take the company private, having applied to the FCC for six-month waivers to come into compliance with local ownership limits. Notably, the company has to divest one of its five FM stations in Albuquerque, since the grandfathered status of the cluster does not transfer to the new owners. Most of the other markets where waivers have been sought are due to overlaps with other companies in which either Providence Equity Partners or Thomas H. Lee Partners have investment stakes - Freedom Communications and Cumulus Media Partners, respectively. But besides what it has to sell, Univision will be pruning its portfolio a bit. This week's bond offering documentation for the new owners states that they plan to sell the Univision Music Group - a move to dump the underperforming record business is a surprise to no one - and some non-core radio stations. In all, those sales are expected to bring in about a half billion bucks. We don't know how much they are expecting to get for the Music Group, but the remainder of the half billion would not cover very many radio stations - at least not in major markets. Univision says those to be sold include several undeveloped "stick" properties. In all, the divestitures account for about 15 million of Univision's annual EBITDA. That's three million from the Music Group, so it looks like the radio sales will trim about 12 million from Univision Radio's nearly 150 million in cash flow.
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| Wall Street Media Business Report TM |
 Strong quarter for Entravision
Entravision finished 2007 in fine form, with total revenues up 6% to 73.8 million and adjusted EBITDA up 3% to 25.6 million. Television revenues grew 4% to 40.3 million. Radio far outpaced its general market peers, gaining 9% to 23.4 million. And as strong as broadcasting was, the relatively small outdoor division had an even better quarter, with revenues up 12% to 10.2 million. It looks like Q1 is going to be another winner. The company said net revenues are expected to be up in the high single digits. Radio is particularly strong, currently pacing up 13%. "As we enter 2007 we are focused on our core strengths and the execution of our growth strategy. With a unique group of assets positioned in the most dynamic Hispanic growth markets in the US and a sound balance sheet we remain well positioned to generate long-term value for our shareholders," said CEO Walter Ulloa.
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Ad Business Report TM
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IPG and Spongecell form partnership
Adding fuel to events planning and promotions clients, Interpublic has formed a partnership with web services company Spongecell. The company has developed event management technology allowing promoters and event planners to communicate with and market to new and existing customers. As part of the agreement, IPG will have preferred partner status in implementing Spongecell's solutions for its clients. Interpublic will also obtain a preferred equity share in Spongecell. Spongecell's flagship product, Spongecell Promote, offers web services and tools that allow marketers and web sites to manage events, track audiences, optimize attendance, and enhance on-going customer relationships. "Even the most experienced event promoters struggle with how to get the right word out to the right people. Spongecell Promote has solved this problem, with its exciting distribution platform that enables all types of events to be more successful." explains Ben Kartzman, president of Spongecell. "We're pleased to have the opportunity to collaborate and support IPG agencies and clients with our tools."
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| Washington Media Business Report TM |
 FCC names Harrisburg starting lineup
The panel for the FCC's third public forum on media ownership has been announced. There is only one panel this time around - most of these affairs have had at least two - and it is largely made up with people working in the media. PennPIRG's Beth McConnell seems to be the lone watchdog this time around, with the possible exception of American Journalism Review writer Charles Layton. From the print side, there is Jim Haigh of the Mid-Atlantic Community Papers Association, and York Daily Record reporter Lauri Lebo, who also a strong broadcast perspective as owner of Harrisburg's WWII-AM. W. Cody Anderson, President/CEO of ACG Associates, has an extensive background in Urban radio in Philadelphia, and Bill Baldwin is EVP of Hall Communications and GM of its WLPA-AM/WROZ-FM Lancaster and WSJW-FM York properties. The biggest companies represented are from television, including H. Joseph Lewin of Allbritton's WHTM-TV Harrisburg (ABC 27) and Paul Quinn of Hearst-Argyle's WGAL-TV Lancaster (NBC 8).
TVBR observation: There will, of course, be plenty of watchdogs in the audience. A wide coalition of interested organizations sounded the alarm last week and are working to make sure their views are well represented.
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| Entertainment Media Business Report TM |
Fox looks to summer
The regular season still has a while to run - and for Fox executives to enjoy watching "American Idol" devour the competition - but the network is ready with its summer lineup. If you are expecting some reality TV, you will not be disappointed. New in the genre is "On The Lot," a movie making competition from Mark Burnett, Steven Spielberg and DreamWorks Television. It gives aspiring filmmakers the opportunity of a lifetime: a one million DreamWorks development deal. The show will premiere with a one-hour auditions episode on Wednesday, May 16. A special two-hour Film Premiere episode, featuring the first films produced by the 16 finalists, will air Monday, May 28 (8-10 pm ET/PT). Four finalists will be eliminated from the competition the following night on the first Box Office results show Tuesday, May 29 (8-9 pm ET/PT). The weekly Film Premiere episodes air in their regular time period beginning Monday, June 4 (9-10 pm ET/PT), and the weekly Box Office results shows will air on Tuesdays (8:00-8:30 pm ET/PT) starting Tuesday, June 5. Also this summer on Fox, "So You Think You Can Dance" begins another search for the nation's top dancer on May 24th. "Hell's Kitchen" is back for season three on June 25th and the comedy "The Loop" returns for its second season on June 10th.
| Here is the summer sked: |
mtvU announces Spring programming
mtvU, MTV's 24-hour college network, today unveiled its on-air, online, mobile and on campus programming for Spring. The semester's lineup will be fueled by the work college students are submitting to mtvU daily. mtvU is now available on more than 80% of four-year universities nationwide.
| mtvU programming/events debuting this spring |
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| Internet Media Business Report TM |
"My Name is Earl" adds digital
NBC comedy "My Name is Earl" has been made available to consumers via digital platforms following a digital distribution deal between the network and the 20th Century Fox TV studio. The deal is 20th's first with a third party broadcast network. Effective immediately, viewers will be able to download commercial-free the complete first season of Earl for 37.99 (24 episodes), the complete second season for 36.99 (23 episodes) and individual episodes for 1.99 on MySpace and IGN; I-Tunes; AOL, Walmart.com and CinemaNow. Viewers will also be able to stream each of the current Season Two episodes for free on NBC.com for one week following their initial broadcast.
 Fox Interactive Media beefs up with target ad serving tech buy
Fox Interactive Media has completed the acquisition Strategic Data Corporation and its proprietary technology that will enable FIM to deliver highly-targeted, graphical performance-based advertising on its MySpace, IGN, Direct2Drive, AmericanIdol.com, AskMen.com and more. The entire FIM network boasts more than 135 million worldwide unique visitors each month and is the number one most viewed network in the U.S. with over 40 billion pages viewed each month. "SDC will enable us to realize the full potential of our massive online network," said Peter Levinsohn, President, Fox Interactive Media. "SDC's expert team and technologies combined with our own top notch engineers and vast audience will enable us to ensure the optimal performance of our advertising for the benefit of clients and consumers alike."
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| Ratings & Research |
Judy back up
"Judge Judy" has reclaimed the #2 spot in the latest week's syndicated TV ratings from the Syndicated Network Television Association, based on data from Nielsen Media Research. Judy bumped "Everybody Loves Raymond" back to #3 in a tie with "Oprah."
| View the Chart |
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| Stock Talk |
Another mixed day
Higher oil prices and worries about Iran's nuclear program were negatives for stock prices on Thursday. The Dow Industrials fell 52 points, or 0.4%, to 12,867. The S&P 500 was also lower. However, the Nasdaq Composite managed a small gain for the day.
Most TV stocks were lower. The big mover, though, went the other way, with ACME surging 10.9%, a day after closing a station sale and announcing a special dividend. LIN had an off day, dropping 1.9%. Nexstar gave up some of its recent gains, falling 1.8%.
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| Stocks |
Here's how stocks fared on Thursday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Acme
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ACME
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5.80
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+0.57
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McGraw-Hill
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MHP
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67.64
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-0.80
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Belo
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BLC
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18.89
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+0.17
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Media General
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MEG
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42.51
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-0.52
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| CBS CI. B |
CBS |
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31.55
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-0.15
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Meredith
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MDP
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59.64
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-0.20
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| CBS CI. A |
CBSa |
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31.56
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-0.15
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News Corp.
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NWS
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24.80
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-0.15
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Clear Channel
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CCU
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36.39
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+0.01
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Nexstar
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NXST
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7.61
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-0.14
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Disney
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DIS
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35.13
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-0.01
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NY Times
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NYT
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25.87
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-0.25
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Emmis
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EMMS
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8.70
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-0.01
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Ion Media
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ION
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1.30
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unch
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Entravision
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EVC
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8.72
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-0.07
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Saga Commun.
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SGA
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9.36
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-0.06
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Fisher
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FSCI
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45.50
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+0.22
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SBS
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SBSA
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4.50
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+0.09
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Gannett
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GCI
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62.95
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unch
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Scripps
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SSP
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48.76
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-0.20
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Gen. Electric
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GE
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35.47
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-0.16
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Sinclair
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SBGI
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14.78
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-0.26
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Granite
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GBTVK
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0.09
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+0.01
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SWMX
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SWMX
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1.00
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-0.05
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Gray
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GTN
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9.05
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-0.04
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Time Warner
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TWX
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21.56
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-0.09
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Gray, C1. A
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GTNa
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9.25
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+0.07
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Tribune
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TRB
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30.65
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+0.02
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Hearst-Argyle
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HTV
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26.35
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+0.05
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Univision
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UVN
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36.01
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unch
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Journal Comm.
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JRN
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13.38
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-0.06
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Wash. Post
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WPO
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790.00
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-1.00
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Lincoln Natl.
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LNC
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70.36
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+0.06
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Young
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YBTVA
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4.04
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+0.20
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LIN TV
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TVL
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14.12
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-0.27
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-
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-
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-
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-
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Bounceback
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 We want to
hear from you.
This is your column, so send your comments and
a photo to tvnews@rbr.com
 I don't understand the hub-bub over the merger of XM and Sirius. In every interview I have seen with various radio execs over the last couple of years, they all say they are not worried about the impact of satellite radio on their over the air stations. Judging from the programming I hear out of these same stations, I would say that's true. I still hear the same songs rotated every hour and a half, I hear the same boring "50 minute music sweeps", the same lifeless and jockless air shifts and the same dull "personalities" regardless of which market I travel too. It's very evident that terrestrial radio does not see satellite radio as a threat because they have done nothing to counter program it. They have not changed. And I don't understand the dust up over local inserts from the satcasters on their terrestrial repeaters. I mean, except for spot breaks, terrestrial radio has very little local content in their programming either. I have a choice. I can pay $12 a month for 120 odd channels of programming, or I can pay nothing and get what the broadcasters think I want (as long as it doesn't impact their bottom line too much). What's that old adage again, "you get what you pay for"?
Scott Cason
LaGrange, KY
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Below the Fold
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Ad Business Report
IPG and Spongecell
Form partnership adding fuel to events planning and promotions...
Internet Media Business Report
NBC comedy adds Digital
My Name is Earl, digital distribution deal with the 20th Century Fox TV studio...
Entertainment Media
Business Report
Fox looks to summer
Ready with its summer lineup of reality TV and won't be disappointed...
Internet Media Business Report
mtvU Spring programming
MTV's 24-hour college network unveiled its on-air, online, mobile & on programming...
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Stations for Sale
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 Market your Stations For Sale
in our daily epapers.
Contact
June Barnes
jbarnes@rbr.com
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TV Media Moves
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New director
Blythe McGarvie has been elected to the board of directors at Viacom as an independent director, succeeding Ellen Futter, who is stepping down April 12th. McGarview is President and founder of Leadership for International Finance, a private consulting firm.
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More News Headlines
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CBS Daytime
actresses launch
innertube webisodes
CBS's The Young and the Restless and As the World Turns have offered up two starts for a new web series, "L.A. Diaries," which begin streaming today on cbs.com's innertube. Nine webisodes of the series will feature the on and off-camera friendship between Y&R's Amber Moore (Adrienne Frantz) and Alison Stewart (Marnie Schulenburg), a new character on ATWT.
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TVBR Radar 2006
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Television News you won't read any where else. TVBR--First, Accurate, and Independently Owned.
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"TVB ePort" eBusiness
digital platform
The effort to achieve a paperless process: a multimillion dollar commitment to build TVB ePort, an eBusiness digital platform that aims to enable a new wave of open-standard electronic transactions between advertisers, agencies, broadcasters and reps. ePort is expected to be operational in Q4. We asked a couple buyers who were at the unveiling yesterday what they thought. Janice Finkel-Greene EVP/Local Broadcast, Initiative Media and Kathy Crawford, MindShare President/Local Broadcast had input. For insight see TVBR.
02/22/07 TVBR #37
The hurdle XM and
Sirius must clear
Back in 1997 when the FCC issued its Report and Order creating the satellite radio service (DARS, the redundantly named Digital Audio Radio Service by satellite), it anticipated the situation we see today with the two licensees seeking to become one. In this RBR report is the language the FCC adopted back then regarding license transfers...
RBR observation: Convincing the FCC and their overseers on Capitol Hill that an XM-Sirius merger should be allowed may hinge on one thing that was around in 1997, indecency, and one that wasn't, the iPod. It was no mere coincidence that Sirius CEO Mel Karmazin spoke of ala carte offerings. The two satellite radio companies don't have any ala carte offering now, although there is nothing to stop them. There is more RBR observation details in
02/22/07 RBR #37
PPM holdout no more
Cox Radio has ended its long refusal to participate in PPM testing and will now encode in Houston. CEO Bob Neil says Media Rating Council (MRC) accreditation was the clincher, although he is still weighing whether to actually subscribe to PPM data from Arbitron. RBR asked Neil, are you persuaded that PPM is going to be the new industry standard for radio audience measurement? "No, we're still not convinced it's the best electronic measurement system. But MRC accreditation was very important to us and we communicated that time and time again. So, after they got it, we felt that we could go ahead and participate in the test to evaluate PPM..."
02/22/07 RBR #37
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Director of Sales
Three-station LIN Television group needs a Leader Visionary, Strategist, Creative Thinker Motivator, Clear Communicator, Problem solver. WOOD/WOTV/WXSP, 3-station LIN TV group in Grand Rapids is seeking a Director of Sales. Must have previous sales management experience and know how to deliver the revenue. Our multi-platform, multiple-team selling includes three affiliations and three websites. New Business Development and Internet revenue are priorities. Inventory Management is crucial. If you are a great listener and can achieve extraordinary business results through people then
see TV Careers
Hard finding that key person
to fill the important position at your organization? Media HeadHunters is the place that key media firms use to get results. See Media HeadHunters and get results with service--Period.
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