TVBR's Daily Morning Epaper

Volume 22, Issue 10, Jim Carnegie, Editor & Publisher

Friday Morning January 14th, 2005

TV News®

NBC Universal, Volkswagen
sign worldwide marketing pact
Representing one of the most far-reaching to date branded entertainment deal, NBC Universal and Volkswagen announced the creation of a multi-year global marketing alliance. Universal will incorporate Volkswagen's products and brand, in its film, DVD, worldwide theme parks, and other entertainment properties. Volkswagen will support numerous media and entertainment related properties of NBC Universal through international marketing and promotional efforts. | More... |

No fireworks, but some sparks at FCC meeting
The FCC's annual opening open meeting is generally used for horn-tooting with a little navel-gazing thrown in for good measure, but there are usually enough interesting moments tossed in to spice things up a bit, and this year was no exception. We can say that the early favorite for the "Really Stepped In It Award" for 2005 is Armstrong Williams. | More... |

Powell praises EB for decent job on indecency
FCC Chairman Michael Powell gave Bureau Chief David Solomon's Enforcement Bureau high marks for its work in 2004 on indecent broadcasts. He noted the necessary ambiguity in the rules, and the thankless task of working in a bright spotlight on a highly charged issue. | More... |

Steady as she goes at the Media Bureau
The FCC department of particular interest to broadcasters shed little light on its plans for 2005 AT THE Commission's first meeting. Media Bureau Chief Ken Ferree noted progress on digital broadcasting achieved in 2004 and said it would be a front burner item going forward, both in the radio and television arenas. He praised broadcast television for getting 85% of all DTV stations up and running, and cable for passing some 90M homes with digital capable systems. He also noted the increasing availability of high-def programming, which he said is important to drive the digital conversion forward. As for the stalled rulemakings on media ownership, he said MB is evaluating both petitions for reconsideration, and the ruling of the Third Circuit. He did not give any indication one way or the other on the prospects of a Supreme Court challenge to the Third Circuit. He did say that he expected both digital and ownership issues to be resolved satisfactorily in 2005.

TVBR observation: Uhhh, can we get that in writing? There is probably no way to resolve either issue in a way that will be satisfactory to everyone. On the other hand, everyone will no doubt be happy to at least gain some certainty on the regulatory environment going forward. On a more particular note, it is speculated that if a Supreme Court challenge is mounted, the timeline associated with such a challenge will put ownership in limbo at least into 2006. So we should have some insight into the veracity of that prediction in a couple of weeks.

Ex-CBS News chief says net has no credibility
In the aftermath of the scandal at CBS News over the use of apparently fake documents (1/11/05 TVBR #7), Van Gordon Sauter, who was President of CBS News in the early 1980s, has taken his old network to task in a commentary for the Los Angeles Times. While saying he has a "great affection" for CBS News, Sauter says he seldom watches it anymore. "The unremitting liberal orientation finally became too much for me. I still check in, but less and less frequently. I increasingly drift to NBC News and Fox and MSNBC," he wrote. According to Sauter, the documents scandal was minor compared to a greater problem that CBS and others need to deal with - - that a growing portion of the US population abhors the media and sees it as a threat to society. Those people - - partisans of both the left and right - - are being increasingly drawn to alternative outlets, such as web blogs, and away from network TV. Sauter expressed the hope that Les Moonves, "although himself a liberal," will "mandate a clear and defensible center" for CBS News as the course that will lift it out of 3rd place. "Flavored news, for the right or left, won't work. Networks must offer nonpartisan, objective news," Sauter said in his LA Times commentary.

They said it in 2004: November
As satellite radio is hot and now we have a new radio campaign it seem par for the course that this quote matches what you are reading this morning as we look back at the great one liners of last year. "This is a perfect opportunity for me because I want to lead a growth company that can reshape the landscape of the radio business. I took Infinity Broadcasting and Westwood One to leadership positions in the industry and am confident that Sirius will become a market leader in short order." - Mel Karmazin, upon being named CEO of Sirius Satellite Radio. Today: November 2004 | More... |

Adbiz©

Visa's newest ad to debut
at the Super Bowl
Visa announced it will air a new TV spot that will debut at the Super Bowl on Sunday, 2/6. The new ad will focus on the security protections of the Visa check card. "Last year, 108 million households tuned in to the Super Bowl, making it one of the most-watched TV events of 2004," said Susanne Lyons, Visa CMO. "The Super Bowl consistently provides an opportunity to reach a large number of consumers in an entertaining way, reminding them that their Visa check card affords them security protections far greater than cash or checks." The spot was created by BBDO NY and will run nationally on network and cable television through summer.

Study: radio listeners respond positively to fewer spots
For all who think Less is More isn't a factor on radio listening, Navigauge released an analysis of audience behavior in and around spot breaks proving it does. The study is the industry's first independent analysis (using completely passive electronic monitoring) of how commercial stopset structure affects listener retention during and after the breaks. Over 46,000 stopsets and more than 127,000 spots were examined over a three-month period in Atlanta. | More... |

Wal-Mart answers critics
in new campaign
Wal-Mart is publicly responding to its critics, starting with an open letter that ran in 100 newspapers yesterday. The retail giant also plans to offer "the unfiltered truth" about the world's largest retailer with the launch of www.walmartfacts.com, a website breaking down employee wages and other information by state. Wal-Mart CEO Lee Scott told USA Today that it's time to draw a line in the sand. USA Today reports that Scott will also spread his message on TV and radio talk shows. A four-color, full-page ad appeared in The New York Times, noting that Wal-Mart "is working for everyone" while some of its critics "are working only for themselves." Scott told USA Today that he needed to speak up for Wal-Mart's 1.2 million workers. The attacks have had an effect on Wal-Mart, which has faced lawsuits and resistance in some cities to expansion.

February Radio & Television Business Report

"The Pros and Cons of Nielsen's Local People Meter and Arbitron's proposed Portable People Meter service"
After a rocky start, it's roll-out time of LPM & PPM. Will there be cooperation or more talk?

Engineered for Profit: "New tower standards coming: are you ready?" Did you know existing standards is currently in the midst of the biggest revision in years?

GM talkback: "How has LPM ratings changed selling in your market?" TV GMs say what they think-the good, bad and the ugly.

Media, Markets, and Money: Only one place tells it like it is with a run-down and overview of the biggest quarterly Radio and TV deals and outlook to 2005.

Media Markets & MoneyTM

LIN raising 175 million
With rates moving up, LIN Television is trying to lock in some of its debt at a lower rate. The company is offering 175 million of 6.5% senior subordinated notes due 2013, on top of the original issue of the then-10-year notes in 2003. LIN isn't out to buy anything with the cash. Rather, it will redeem its 166.4 million of 8% senior notes due in 2008, via a tender. The new notes are being sold in private placements.

Washington Beat

FCC rings up two TVs on the phone rap
Scripps Howard's WEWS-TV Cleveland and NOE Corp's KNOE-TV Monroe LA each were hit for fines for airing recorded phone conversations without the permission of the individual recorded. In both cases, it involved reporters working on stories, and included multiple airings. In the Cleveland case, the station aired a recording of an insurance company employee declining to be interviewed, and in Monroe, the station taped a police jury member's outgoing voice mail message. WEWS was hit with two counts for a total of 6K; KNOE for three and 10K.

Programming

"The Will" is the was
Coming out of the blocks with a dismal 2.9 rating for its premier last Saturday, CBS' latest reality TV entry - - "The Will" - - has already been assigned to the scrapheap of history. To be sure, it was up against NFL football on ABC, but the series debut also trailed badly behind "COPS" on Fox and NBC's showing of the SciFi Channel movie "Battlestar Galactica." The premise of "The Will" was that relatives and friends of a wealthy rancher/developer were competing to be named his heir. Who won? Guess we'll never know (nor care).

TVBR observation: ABC originally bought this series concept back in 2002, but fortunately never took it to air. Its producers, who were also behind the hit "The Bachelor," then convinced CBS to pick up the project. Luckily for the Eye net, this is a season where it can afford to have a mistake like this.

Scripps aims at the pros
A TV channel for the home building industry is too narrow a niche for even the broadest offering of channels on a cable system, but Scripps Networks thinks it can leverage its Home & Garden Television brand in a video-rich online environment. It's launched HGTVpro on the Internet (hgtvpro.com) with more than 100 videos and articles, with more to come, including Spanish-language versions. "The broadband technology of today lets us deliver information to the building trades in a way it could not be done before. Rich video content allows HGTVPro to bridge communications gaps by providing information visually - - the way most people learn best," said Scripps President & CEO Ken Lowe.

TVBR Ratings

Broadcast claims top 75 spots
TVB is proudly crowing that for the 16th week of the broadcast season, which ended Sunday, January 9, broadcast television delivered all top 75 primetime programs in households, A25-54 and A18-49. In households, it delivered 92 of the top 100 programs, 94 out of 100 in A25-54, and 95 out of 100 in A18-49. In aggregate numbers, broadcast beat cable in households, A25-54 and A18-49. Broadcast delivered 37.71 HH rating points in primetime, while ad-supported cable delivered an aggregate 32.22 HH rating; when this rating is adjusted to eliminate ADS (satellite, etc.) homes, ad-supported cable's delivery drops to 24.74. Broadcast delivered 24.08 A25-54 rating points in primetime, while ad-supported cable delivered an aggregate 16.61 A25-54 rating; when this rating is adjusted to eliminate ADS homes, ad-supported cable's delivery drops to 12.76. Broadcast delivered 21.37 A18-49 rating points in primetime, while ad-supported cable delivered an aggregate 15.35 A18-49 rating; when this rating is adjusted to eliminate ADS homes, ad-supported cable's delivery drops to 11.79. | More... |

Stock Talk

Stocks tumble on oil worries
Rising oil prices struck fear in the hearts of Wall Street traders again on Thursday. The Dow Industrials plunged 112 points, or 1.1%, to 10,506.

TV stocks also took the plunge. Belo was down 3.9% and Journal Communications 3%.

Stocks

**Here's how stocks fared on Thursday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Acme	ACME		6.02	+0.03	McGraw-Hill	MHP		90.68	-0.59
Belo	BLC		23.79	-0.96	Media General	MEG		61.67	-0.89
Clear Channel	CCU		31.26	-0.16	Meredith	MDP		51.24	-0.10
Disney	DIS		27.75	+0.03	News Corp.	NWS		17.85	-0.21
Emmis	EMMS		17.73	+0.01	Nexstar	NXST		8.66	-0.23
Entravision	EVC		7.87	+0.09	NY Times	NYT		39.57	-0.63
Fisher	FSCI		49.38	-0.11	Paxson	PAX		1.55	-0.06
Fox	FOX		33.96	-0.31	Saga Commun.	SGA		16.43	-0.17
Gannett	GCI		81.55	-0.22	Scripps	SSP		48.50	-0.16
Gen. Electric	GE		35.23	-0.45	Sinclair	SBGI		8.31	+0.09
Granite	GBTVK		0.44	+0.01	Time Warner	TWX		18.68	-0.11
Gray	GTN		14.06	-0.11	Tribune	TRB		41.20	-0.33
Gray, C1. A	GTNa		13.08	unch	Univision	UVN		28.10	+0.13
Hearst-Argyle	HTV		25.50	+0.03	Viacom, Cl. A	VIA		38.04	-0.70
Jeff-Pilot	JP		49.15	-0.35	Viacom, Cl. B	VIAb		37.66	-0.69
Journal Comm.	JRN		17.10	-0.53	Wash. Post	WPO		903.00	+7.00
Liberty Corp	LC		40.61	-0.84	Young	YBTVA		9.80	-0.20
LIN TV	TVL		18.00	+0.12	-	-	-	-	-

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Bounceback

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Upped & Tapped

Hollander's promotion confirmed
You read it here first (12/20/04 RBR #246). Viacom has moved Joel Hollander up to Chairman and CEO of Infinity Broadcasting. "Joel is one of the finest operators in the radio business, hands down. He has brought tremendous energy, industry savvy and discipline to Infinity Broadcasting since joining the company, where he has helped our stations grow their ratings and revenues in a challenging advertising climate," said Viacom Co-President/COO Les Moonves. Hollander, who had been President and COO of Infinity, succeeds John Sykes, who will be going back to Viacom's MTV Networks.

Fox gets a Shine
Bill Shine has been promoted to Sr. Vice President of Programming at Fox News Channel. He will oversee all programming and production for FNC and report directly to CEO Roger Ailes. Shine had been VP of Production.

Day Time Planner

The following Companies will be attending NATPE. Call or email to make your appointment in advance.

Feature Films
for TV & Cable:
Castle Hill Productions, Inc.
Barbara Karmel, Mel Maron,
Office: 212-242-1500,
Booth #1207, barbarakarmel@
castlehillproductions.com

Brokers:
Patrick Communications,
Larry Patrick, Office 410-740-0250, Mandalay Bay,
michele@patcomm.com

TVBR Radar 2005

Television News you won't read any where else. TVBR--First, Accurate, and Independently Owned.

Sumner Redstone talks acquisitions; Moody's talks downgrade
Viacom back into seeking major acquisition targets has spooked analysts at Moody's Investor Service. Viacom's debt ratings are now under review for a possible downgrade. TVBR observation: Open mouth, remove foot. Did Sumner not realize that the credit raters would be listening to such comments? And on another matter, we find it interesting that while Redstone continues to complain that Viacom's stock is undervalued, he's been selling some of his own stake back to the company under the buyback plan - - more than 200 million bucks worth so far. Of course, he's been selling back non-voting Class B stock, not any of the Class A stock, through which the Redstone family's National Amusements holds voting control of Viacom. Who says you can't be sharp as a tack at 81 years of age? 01/13/05 TVBR #9

They said it in 2004: October
FCC Chairman Michael Powell had this note on a new website designed to promote DTV to the public: "Then we hope they will get DTV - - get the set, get the connection, get the content." As we left 2004 with that great quote it seems that's all it is - a good quote. Today: More great one-liners said in October 2004.
TVBR observation: Check your mail recently and the mega direct mail campaign by Best Buy pushing HDTV in a very expensive brochure called "The Home Theater Experience" - turn the page and see the prices and start this experience at 7,300 bucks. The brochure is sharp with great sales liners like 'Brace Yourself (Football scene) You cringe as it's Comin' - then the price of 5,600 bucks. We cringed and damn near had a heart attach. Don't think the average consumer will plug in real soon Mr. Chairman.
01/13/05 TVBR #9

New York Attorney General Eliot Spitzer's probe claims a victim
Entercom confirms that it fired WKSE-FM "Kiss 98.5" Buffalo PD Dave Universal last week amid a company probe of whether he improperly accepted travel packages and other gifts. Universal defended his actions. "I did nothing that Entercom was not 100% aware of, or approved of, the entire time I was there," RBR tried to contact Universal but phone was out of service. Publisher observation: Universal is out of work and Entercom has a black eye. Accepting gifts for play is called Payola which has a long history in the radio business. This publisher has seen worse over the years. Again the young just not knowing the real rules of the game they are playing. Anyone knowing Dave Universal, have him contact us. If he is a good PD don't get judged in the press. 01/13/05 RBR #9

Mary Mapes fires back at CBS
Not taking her firing gracefully, after she was singled out as the main culprit in the broadcast of a report using possibly forged documents to accuse President Bush of dodging his National Guard duties. In a sharp retort, Mapes accused Viacom Co-President/COO Les Moonves of "vitriolic scapegoating" in giving her the axe. TVBR observation: We smell a lawsuit. Meanwhile, there are rumors that Mapes has already been offered a job by a non-commercial news production outfit. We presume, though, that the salary in the non-com world would be less than what she rose to in what was, until last September, a stellar career at the Eye net. 01/12/05 TVBR #8

Satellite gets more press from pro-radio campaign - Go figure
Even the latest effort by terrestrial radio to promote itself was twisted by the Wall Street Journal into yet another PR piece for satellite radio. "This week, a new advertising campaign with the tagline "Radio - - you hear it here first" shows just how scared the terrestrial-radio operators really are." The story also included a graph showing that satellite radio subscribership was "Rocketing Skyward," without noting that the total audience of XM and Sirius is still miniscule compared to terrestrial radio. TVBR observation: This PR tin can idea has been kicked from Seattle NAB 2002 convention and it is now 2005 and of course satellite radio will get good PR from the consumer press because it has no place to go but up including their stocks. If radio wants good PR then first look in the mirror. Not pretty. Getting good PR? First it means running a class, profitable, and local operation. Then you get rave reviews from Wall Street suites. That brings good consumer PR. You read it here first and it didn't cost 28 million bucks. 01/12/05 TVBR #8

They said it in 2004: September
"I'm going to Disneyland!" Na wasn't said by any high priced jock but by Michael Eisner, himself, concluding his letter to fellow directors announcing his intention to retire as CEO of Disney in September 2006. Now lest face it that is over a year away so grin and bare it? Na - baring it only happens at a Green Bay Packers game. 01/12/05 TVBR #8

Rupert Murdoch plans
6 billion roll-up of Fox
Now that he's moved News Corporation to the United States, is moving to roll the company's US subsidiary, Fox Entertainment, into the parent company. News Corp. announced an exchange offer to trade 1.9 shares of News Corp. Class A stock for each share of Fox stock. The stock swap values Fox shares at 33.54 each - - a premium of 7.4% over Friday's close. TVBR observation: Will investors force Rupert to sweeten the pot? Wall Street certainly thinks so.
01/11/05 TVBR #7

Reach Media, Inc.
A Dallas-based media, broadcasting, internet and entertainment company targeting the African-American community. The hub of 'The Tom Joyner Show' - Needs to fill key positions: Director Affiliate Sales, Director TV Affiliate Relations, Ad Sales Account Executives and Sponsorship Sales. Be on the ground floor of the next exciting TV syndication program plus work with really great honest people. For more information, contact Amy Bert.

See TV Careers for more info.

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