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Volume 22, Issue 101, Jim Carnegie, Editor & Publisher
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Monday Morning May 23rd, 2005
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TV News®
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 Time Warner may spin AOL
Time Warner may consider spinning off AOL in the future to help finance acquisitions, CEO Richard Parsons told investors at the company's annual meeting in NYC last week. Time Warner has discussed with management of AOL the possibility of selling shares of the unit in an initial public offering and decided not to go ahead with such a plan "at this point," said Parsons. The likelihood of a spinoff probably depends on whether AOL CEO Jonathan Miller succeeds in his strategy of attracting more Internet users and advertisers to his service to compensate for the decline in dial-up subscribers. AOL's 112 billion purchase of Time Warner in January 2001 led to a record 98.7 billion loss in 2002 and caused the shares to tumble.
TVBR observation: A good idea. AOL still hasn't realized its main client base is dial-up. When Juno and Netzero came along with basically the same core service at less than half the price, AOL should have immediately matched those 9.95 a month fees to keep its customers from leaving. It didn't. Instead, it bought Netscape and made a Netscape service for 9.95-too little too late. What it should have done is offered the AOL service for 9.95 a month and touted its extra benefits/services. But AOL ad sales are showing some real promise lately, so we will see what happens.
Groups ready issue ad flights
The ongoing political wars have many on the sidelines who want to more than just cheer for their cause and their cause's standard bearers. They want to put pressure on and enlist more politicians to their side. It all helps keep the political category alive during an off-election year. The American Federation of Teachers is one of them - - it's going after No Child Left Behind. It says gross underfunding is only the beginning of corrections needed for the program, and it's going the grassroots route with radio and print to drive its points home, with radio ads pegged for Washington, Philadelphia, Miami, Chicago, Dallas, Cleveland, Detroit, Los Angeles, Albuquerque and other cities. Some of these locations will have Spanish as well as English versions. Conservative Progress for America is going on the air in support of one President George W. Bush's judicial candidates - - Priscilla Owens. The ad focuses on her accomplishments and calls for an end to the four-year filibuster mounted by Democrats opposed to her potential seat on the Fifth Circuit bench. Locales were not mentioned by the group, which however said it was launching an "ad blitz," so it may well be coming to a market near or including you.
 Is deconsolidation just part of a cycle?
That's the theory put forth by Thomas Weisel Partners analyst Gordon Hodge in a research note on the current wave of media companies spinning off units or selling assets. "Attractive cash flow characteristics, changes in regulation (swinging from more to less and back again) and disruption from new technologies drives a seemingly perpetual spin cycle of deals within the media industry. After a boom-bust consolidation period in the late 1980s, the Telecom Act of 1996 propagated another consolidation wave, which rolled through the Internet bubble and then crashed into the breakers of recession, antitrust concerns and 9/11. We are living in the aftermath of that wave," Hodge told clients. In his view, many media companies now have their stocks trading at a discount to the value of their parts, so it makes sense that Viacom, Clear Channel and others are trying to unlock value by separating those parts. That offers opportunities for investors who are able to identify the companies with the most undervalued assets. In his view, the most attractive candidates are Time Warner, Univision, Entravision and Viacom, while he says that Clear Channel and Disney are actually trading right around the sum of their parts.
TVBR observation: Reminds us of a Yogi Berra quote on his hitting, "Slump? I ain't in no slump ... I just ain't hitting." Well same with many companies they just ain't hitting because as Berra would say - "90% of the game is half mental." Think about it because Hodge and Berra are both correct either a slump of the sum of their parts. Key for all media companies is your business plan and execution of the plan. If you didn't see it coming after 9/11 and the '02 recession which is still alive then you best get your house in order now or you will find it very difficult to compete in 2006.
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 Live at 6AM: A NYC F-bomb
Banished-to-satellite radio bad boys Opie & Anthony have claimed a scalp from the ranks of New York City media via their unofficial minions. O&A fans were harassing Channel 2 WCBS reporter Arthur Chi'en while he was doing a live news report for the station's 6AM newscast. The bomb was dropped afterward, when Chi'en thought the transmission was over. It wasn't. Chi'en turned around and said, "What the [f-bomb] is your problem, man?" It went out over the airwaves, and shortly thereafter, Chi'en was out on the street, out of a job.
TVBR observation: This is exactly the sort of fleeting and accidental use of the f-bomb which the FCC considered non-actionable back when a similar one was delivered by Bono at the Golden Globes. Since then, the FCC's statements on F-bombs have been anything but consistent - - however, you'd think that the station's rawpid apology and personnel action will keep it in the clear. However, Chi'en's outburst clearly an accident. It is unfortunate that the chill in the air over broadcast decency can turn a fleeting, split-second error into at best a career disruption and at worst a career termination. We think CBS should bring Chi'en back on board. He was clearly being harassed by the O&A fans, if you saw the clip.
OneDomain sued for copyright infringement
Tapscan claims in a federal lawsuit that Birmingham competitor OneDomain Inc. infringed on its copyrighted computer code that runs software products for broadcasters, reported The Birmingham, AL News. Tapscan, a subsidiary of Marketron, filed the suit in U.S. District Court in the Southern District of NY. It seeks monetary damages and an order banning "reproducing and distributing the Tapscan Code in various software products."
TVBR observation: We are in the techie age and no going back and what Tapscan is claiming we will see more of - companies protecting their names and their established brands along with intellectual property because people in general are more computer and internet literate. Do a simple engine search and see if a brand is being used because there are rules to follow and the first being common sense. Nobody today can claim ignorance and say - DA I didn't know. Sorry, doesn't cut it. | More... |
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Adbiz©
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 First the eyes go, then the ads
Video games compete with traditional programming for the television screen, especially in homes with young males in residence. Marketers are taking that fact to heart, and are starting to put their money in those games. According to the Associated Press, a number of companies have found a home in "True Crimes: Streets of LA." A crime involves Puma clothing and the main character uses a Motorola handset complete with a GPS unit. In another game (online), "Everquest II," players encounter a functional Pizza Hut icon which they can use to order a pizza for 30-minute delivery without ever leaving the confines of the game. In-game advertising is predicted to be a 1B category by the end of the decade.
ABC scores early in the upfront
ABC Sales President Mike Shaw, riding on a wave of ratings upswings and powerful fall programming, has already negotiated a few big upfront deals last week with OMD that included primetime, other dayparts, and a Super Bowl buy. ABC reportedly did the deal at a 6% CPM hike for primetime. This was just days the net's 5/16 presentation in NYC.
 Reif Cohen:
broadcast upfront to hit 9.1 billion
Primetime broadcast TV will only achieve modest if any gains overall in the new upfront, according to Merrill Lynch analyst Jessica Reif Cohen. In a report released last week, Reif Cohen said primetime broadcast's increase will be up about 2% to 9.1 billion. Strong ratings for CBS and ABC likely will translate into double-digit gains for both nets; ABC is estimated to take in 1.51 billion, up 21% from a year ago. Fox is estimated up 2% to 1.53 billion; NBC down 14% to 2.41 billion; and CBS up 10% to 2.59 billion.
No billboards in space
The government doesn't want billboards in space. The FAA proposed last week to amend its regulations to ensure that it can enforce a law that prohibits "obtrusive" advertising in zero gravity. "Objects placed in orbit, if large enough, could be seen by people around the world for long periods of time," the FAA said in a regulatory filing. Currently, the FAA lacks the authority to enforce the existing law. For instance, outsized billboards deployed by a space company into low Earth orbit could appear as large as the moon and be seen without a telescope, the FAA said. Big and bright ads might hinder astronomers. "Large advertisements could destroy the darkness of the night sky," regulators said.
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| Washington Beat |
 More Auction 37 FMs waved ahead
22 FM allotments have been cleared to approach the runway to construction by the FCC. All of them are going to winning bidders in last fall's Auction No. 47. Once the bidders get their financial houses in order they are free to begin filing for the actual CPs. The deadline is D-Day, as it turns out - - 6/6/05, with a grace period lasting until 6/20/05. The biggest names on the latest list are Citicasters, a name often used by Clear Channel, and Cumulus, with a stick apiece. College Creek and Radioactive both had four. Here's the complete list: Absolute Communications (Sibley IA); Advance Acquisition (Fort Benton MT); Citicasters (Chehalis WA); College Creek Broadcasting (Belt MT, Choteau MT, Fairfield MT, Wellington UT); Cumulus (St. Paul AR); Kona Coast Radio (Wahiawa HI); NT Radio (Condon OR); Pacific Empire Radio (Troy ID); Radio Layne (King Salmon AK); Radioactive (Crystal Falls MI, Gwinn MI, Old Forge NY, Saranac Lake NY); David L. Smith (McMillan MI); Southwest Broadcasting (Tylertown MS); Patricia Van Zandt (Fredonia KY); and World Radio Link (Eureka MT, Saint Regis MT, Prineville OR)
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| Ratings & Research |
Seinfeld edges Dr. Phil
The battle for 5th place in syndicated TV this past week went to Sony's "Seinfeld," edging out "Dr. Phil" and denying KingWorld a sweep of the five top spots.
Here are the top 10 syndicated shows for the week of 5/2-8:
1. "Wheel of Fortune," KingWorld, 8.3 rating.
2. "Oprah Winfrey Show," KingWorld, 8.0.
3. "Jeopardy," KingWorld, 7.2.
4. "Everybody Loves Raymond," KingWorld, 6.4.
5. "Seinfeld," Sony Pictures, 5.6.
6. "Dr. Phil Show," KingWorld, 5.5.
7. "CSI," KingWorld, 5.3.
8. "Friends," Warner Bros., 5.2.
9. "Entertainment Tonight," Paramount, 5.0.
(tie) "Seinfeld" Weekend, Sony Pictures, 5.0.
Source: Nielsen Media Research
 44% of online consumers interested
in watching free video on cell
JupiterResearch announced in its newly released report, "Video on Cell Phones: It's Real in 2005, but a Paying Consumer Audience Isn't", that 44% of online consumers surveyed by JupiterResearch are interested in viewing video on their cell phones for free, but only 19% indicate they would be willing to pay anything for those services. Wireless carriers in the U.S. have launched mobile video applications demonstrating both the progress and the potential of the technology. The JupiterResearch report also finds the lack of network coverage, high prices for both handsets and service, and limited access to real time content, however, will dampen consumer interest in the near term. "Although consumer interest in mobile video is strong, the cell phone will remain a voice-centric device in the near term," stated Julie Ask, research director at JupiterResearch. "Only 4% of consumers cited the ability to watch video as a priority feature for them when purchasing their next handset. Carrier subsidies will be required to develop a mass market base of higher end handsets with the most advanced video functionality," added Ask.
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| Monday Morning Makers & Shakers |
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Transactions: 4/11/05-4/15/05
A merger between two Midwestern small market radio groups and an Amarillo TV deal joined a number of other smaller deals, finally melting the iceberg that was holding radio trading in check - - the three big deals fueled a surge that just barely missed clearing into three-digit territory.
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Total
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Total Deals
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17
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AMs
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27
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FMs
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44
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TVs
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2
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| Value |
99.765M
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| Complete Charts |
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Radio Transactions of the Week
Two groups combine into one
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TV Transactions of the Week
Texas two step slides into New Mexico
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| Stock Talk |
Nickel and diming the stocks
Anyone who says "it doesn't make a dime's worth of difference" wasn't talking about the fate of broadcast issues last Friday. The vast majority of them were within a dime of the day's starting point, one way or the other. There were a few exceptions - - stocks which approached a half dollar one way or the other, mostly on the television side. But for the most part, the day ended much like it began.
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| Stocks |
Here's how stocks fared on Friday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Acme
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ACME
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3.90
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-0.02
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McGraw-Hill
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MHP
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43.33
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-1.17
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Belo
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BLC
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24.20
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-0.18
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Media General
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MEG
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60.96
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-0.04
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Clear Channel
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CCU
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30.66
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+0.08
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Meredith
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MDP
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47.47
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-0.45
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Disney
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DIS
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27.88
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-0.06
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News Corp.
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NWS
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15.88 |
-0.12
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Emmis
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EMMS
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17.80
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-0.10
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Nexstar
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NXST
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4.99
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-0.12
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Entravision
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EVC
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7.49
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-0.12
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NY Times
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NYT
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32.80
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-0.38
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Fisher
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FSCI
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50.52
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-0.48
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Paxson
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PAX
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0.66
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-0.02
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Gannett
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GCI
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75.02
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-0.68
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Saga Commun.
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SGA
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14.05
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+0.02
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Gen. Electric
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GE
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37.05
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+0.13
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Scripps
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SSP
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51.12
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-0.55
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Granite
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GBTVK
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0.20
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-0.01
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Sinclair
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SBGI
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8.48
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-0.02
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Gray
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GTN
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12.15
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-0.14
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Time Warner
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TWX
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17.59
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-0.16
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Gray, C1. A
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GTNa
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11.58
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unch
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Tribune
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TRB
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36.53
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-0.35
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Hearst-Argyle
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HTV
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24.96
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-0.02
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Univision
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UVN
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26.67
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-0.13
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Jeff-Pilot
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JP
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49.29
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-0.36
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Viacom, Cl. A
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VIA
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35.05
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+0.39
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Journal Comm.
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JRN
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16.56
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+0.08
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Viacom, Cl. B
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VIAb
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34.97
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+0.47
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Liberty Corp
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LC
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37.53
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+0.03
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Wash. Post
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WPO
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834.00
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+0.40
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LIN TV
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TVL
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14.93
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-0.05
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Young
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YBTVA
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5.42
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+0.03 |
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Bounceback
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 We want to
hear from you.
This is your column, so send your comments to tvnews@rbr.com
On Newsweek and responsibility...
Good common sense should have prevailed before they ran that news story. Whether or not it was true, had someone thought for 15 minutes before they allowed this into print, they would have realized the inflammatory issue was more important than printing the story. We are already the "cowboys" of the world, and Newsweek, to sell magazines, put American lives at stake... innocent lives, who travel around the world. Newsweek showed just how inept they are at being responsible for their actions. Free speech... certainly... but they do not have to print everything they hear, and especially if national security can be affected. Those who died in the riots where victims of Newsweek's stupidity.
Shari Greer
Account Executive
Total Traffic Networks
Houston, TX
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Stations For Sale
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Class "A"
Major Market LPTV
TV Market #86 with excellent equipment and full metro coverage. Network possibilities available. Outstanding opportunity for experienced TV operator.
Cliff at Clifton Gardiner & Co
(303)758-6900
cliff@cliftongardiner.com
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RBR - Radio News
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Beck may want less
of Moore, but not
that much less
According to reports, Clear Channel Talker Glenn Beck said remarks he made about choking filmmaker Michael Moore were quoted on the Media Matters for America website completely out of context. He said the remarks were made in jest, a fact he felt was abundantly clear to anyone who heard the entire broadcast. Beck said the bit was about what he would and would not do for 50M dollars. There were a few things he wouldn't do. He said he would not cheat on his wife, nor would he commit murder. The comedy came when he hedged, and said well maybe he would murder Moore for 50M, or even for only 10M. The FCC does have a rule against making threats over the airwaves: "SEC. 502. OBSCENE OR HARASSING USE OF TELECOMMUNICATIONS FACILITIES UNDER THE COMMUNICATIONS ACT OF 1934. Section 223 (47 U.S.C. 223) is amended - - (1) by striking subsection (a) and inserting in lieu thereof: (a) Whoever - - (1) in interstate or foreign communications - - ``(A) by means of a telecommunications device knowingly - - (i) makes, creates, or solicits, and (ii) initiates the transmission of any comment, request, suggestion, proposal, image, or other communication which is obscene, lewd, lascivious, filthy, or indecent, with intent to annoy, abuse, threaten, or harass another person;..."
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TVBR Radar 2005
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Television News you won't read any where else. TVBR--First, Accurate, and Independently Owned.
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EBay TV to launch on
Time Warner Cable TV
Struck a deal to let cable customers make Internet bids through their TVs. Time Warner Cable digital subscribers in the Austin will take part in a one-year test of new technology. Viewers in Austin will be able to click their remotes to view the status of eBay bids they made on their computers. Users can set the software to alert them on their TV screens if they are outbid, and can then use their remotes to raise their bids. TWC is already testing similar applications that let viewers tailor interactive menus to access local weather, news, stock prices and sports team scores from their TV sets in four markets including Portland, Maine and San Antonio.
TVBR observation: Called consumer interaction with that TV screen. Getting they away from the computer screen to the TV screen is excellent in positioning and branding. TV screen is fighting the computer screen and soon VOD screens. The more you can keep them in front of that TV better all TV will be for today and tomorrow. 05/20/05 TVBR #100
Susquehanna thumbs up to Interep, But they are for sale
Another satisfied customer has stepped forward to counter the bashing that Interep has gotten from some quarters in recent weeks. In his quarterly conference call, Susquehanna Media CEO David Kennedy noted that an 11% improvement in national sales was included in Susquehanna Radio's 4% revenue gain in Q1, with local up 2%. As you'd expect, there were questions about the plan to auction off Susquehanna's radio and cable properties, along with i! ts parent company's pottery operation. But Kennedy said there was nothing new to report - - that the company's investment bankers are still putting together information to send out to potential bidders. He also refused to comment on Q2 pacings, since Susquehanna never gives out any forward guidance.
RBR observation: Take the pat on the back when you can because the old saying "What did you do for me today applies' as this will be short lived once Susquehanna is sold off and then - who will rep the stations as Susquehanna will not remain status quo. Interep become a media firm and stop being just a radio rep as not much future running a rep as is was 50 years ago. 05/20/05 RBR #100
TVBR First
Shake-up at Arbitron
Arbitron eliminated its Outdoor division, pink-slipping top staff and putting the half-dozen or so sales reps under the Cable division. Arbitron is closing down its New York Marketing Communications office and four people are being given opportunities to apply for their jobs again, but they'll have to move. The department will now be consolidated in Columbia, MD, with the employee count now approaching 20. TVBR observation: First it called internal consolidation and keeping the bottom line in solid financial post position. Eventually Arbitron and Nielsen will do lunch. Here's why, both Arbitron and Nielsen have hopes of providing new products to measure Outdoor - - but somebody will have to agree to pay the bill before they're rolled out. The justification for the Marketing Communications consolidation is obvious it's a lot cheaper to have everybody in one place and when it comes to operating costs, Columbia, MD beats Manhattan hands down.. 05/19/05 TVBR #99
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Local Sales Manager
LIN TV, one of the premiere operators, needs a leader at WOOD-TV8, NBC affiliate, in Grand Rapids to take charge of the Sales Team. Revenue successes with Marshall Marketing, NSI Stellar data and Eckstein Summers projects required. Knowledge of VCI and One Domain a plus.
GSM Opportunity with Emmis
Legendary KSHE-95 St Louis needs a strong GSM with minimum 5 years battle experience and NTR skills a plus. Generous benefits and compensation await. Are you ready for this challenge!
Broker Opportunity
Established in 1979 we've conducted over 1 billion in transactions and seeking just one executive that desires to learn and become a player in the investment media station brokerage business. First quality in our firm - Integrity. - See TV Careers
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