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Volume 24, Issue 103, Jim Carnegie, Editor & Publisher
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Friday Morning May 25th, 2007
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Holiday Notice
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TVBR returns Tuesday, May 29th. The RBR/TVBR/MBR offices will be closed Monday, May 28th, in observance of Memorial Day.
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TV News ®
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 Tribune completes
phase one of buyout
Yesterday was the deadline for shareholders to tender their shares for 34 bucks each in cash, a total of 4.3 billion, in phase one of the plan to take Tribune Company private. Phase two, which will result in a complete change of ownership transferring 100% of the company to Sam Zell and a new Employee Stock Ownership Plan (ESOP), is awaiting FCC action on license transfers and requests for crossownership waivers. A California judge on Tuesday refused to issue an injunction which would have blocked the tender offer from closing, however the same court had earlier refused to throw out the lawsuit by a shareholder who claims the tender offer contains improper coercive aspects and accuses the company of failing to maximize shareholder value in the deal to buy out the public shareholders.
TVBR observation: It is virtually guaranteed that the initial tender for 126 million shares will be oversubscribed. That's all that Zell and the ESOP can acquire until the FCC acts, so it is likely that many shareholders will have part of their tendered stakes cashed out, but remain Tribune shareholders for a while longer with the remainder of their shares.
ABC says it did its homework
Republican presidential candidates Mitt Romney and Tom Tancredo have both fired off potshots at ABC News for airing a story about CIA plans to disrupt the Iranian government in a "nonlethal" manner. Both felt that airing information on covert CIA activity could harm US security. ABC said it had run the story past proper authorities and stood by its decision. Romney said, "I was shocked to see the ABC News report regarding covert action in Iran." He added, "The reporting has the potential of jeopardizing our national security. To put it quite plainly, it has the potential of affecting human life, we may never know." His comments were echoed by Tancredo, who said that he objected to ABC "...running the story which could jeopardize American lives." ABC reported that the CIA had presidential approval to spread propaganda, misinformation and to attempt to manipulate Iranian banking transactions. ABC News said, In the six days since we first contacted the CIA and the White House, at no time did they indicate that broadcasting this report would jeopardize lives or operations on the ground. ABC News management gave them the repeated opportunity to make whatever objection they wanted to regarding our report. They chose not to. This piece was very carefully reported, and it puts solid facts on the table concerning a crucial foreign policy challenge facing the United States and the world."
TVBR observation: Since every American citizen has a say in how the government is run, every American citizen needs to have reasonable access to the world situation. Obviously, there are times when the need for secrecy is legitimate. It would appear that ABC went the extra mile to make sure that this was not the case in this instance. Like in so many broadcast content issues, there is no bright line dividing what should be aired and what should be suppressed. In our opinion, in a free society, the error should be on the side of disclosure.
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 A Bancroft speaks out
In the first public comments by a member of the controlling Bancroft family, Christopher Bancroft has told the Wall Street Journal he doesn't want to "pull the rug out" from under WSJ employees and doesn't see a takeover of Dow Jones & Co. by News Corporation as a good move. The WSJ article, however, notes a generational split in the family, with some younger members questioning how the family trusts are being run. While the Bancroft family did hold a powwow on the five billion bucks offer from Rupert Murdoch's News Corporation on Wednesday, the WSJ reported that Christopher Bancroft, who is a Dow Jones director, and other key members of the family skipped the gathering. With their family control of Dow Jones going back exactly 100 years, the Bancrofts are now a far-flung group and the family tree has branches with different views on how the company should be run - or whether it ought to be put up for sale. For one thing, the WSJ says some younger members are not pleased with the way their inheritance is being managed. Virtually all of the profits at Dow Jones are being paid out in dividends, with almost nothing being invested back into the company. The dividends going to the Bancroft trusts are all paid out to the older generation and some of the younger heirs are said to question whether that generous dividend policy is endangering the future value of the family fortune. While some Bancrofts, particularly some of the younger ones, are open to the idea of a sale, the company's flagship newspaper said there is no consensus in the family on what course to pursue.
TVBR observation: Despite his insistence that he would have preferred to have kept his 60 bucks per share offer private, the public disclosure has accomplished what Rupert Murdoch needs most - to get the Bancrofts thinking seriously about the future course of Dow Jones and stirring debate within the family. Those heirs who weren't even told about the Murdoch bid until it became public are now likely to push for a family reassessment of whether cashing out might be a good idea. Some are no doubt concerned, and well they should be, about the announced merger of Reuters Group and Thomson Corporation, creating a second financial information company of approximately the same size as Bloomberg, leaving Dow Jones in a more distant third place.
 Dancing, singing and beauty
close out TV season
The May sweeps and the 2006-2007 season closed out with reality TV competition shows driving strong ratings for three networks. Jordin Sparks won "American Idol" on Fox, Apollo Anton Ohno and Julianne Hough won "Dancing With the Stars" on ABC and Alejandra Espinoza (pictured) won "Nuestra Belleza Latina" (Our Latin Beauty) on Univision. Idol carried Fox to another come from behind season win in the 18-49 demo, Dancing gave ABC strong ratings and even surpassed Idol in total viewers on its finale night, with Idol in its final night of competition before the following day's finale. Univision said Nuestra Belleza Latina increased its Tuesday 10-11 pm time period average by double and triple digit margins in the May 2007 sweep compared to the same period in 2006. The finale on Tuesday drew 4.4 million viewers.
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FCC grants Apple stations experimental DTV authority
Broadcast television stations have been diligently getting ready for the DTV conversion, but there's been one market which has faced a particular challenge. New York City lost a primary tower site during the attacks of 9/11/01. The FCC has now granted an experimental authorization to try to get the Big Apple's stations up to speed. The stations involved, which all had antennae on the North Tower of the World Trade Center, are WCBS-TV, WNBC-TV, WNYW-TV, WABC-TV, WWOR-TV, WPIX-TV, WNET-TV, WPXN-TV WNJU-TV & WXTV-TV. The licensees have banded together under the name Metropolitan Television Alliance (MTA). Most of these have relocated to the Empire State Building (ESB), but existing tenants there forced digital antennae to be side-mounted, which led to a significant loss of coverage area. And all MTA members will eventually move to the new Freedom Tower, which will solve the coverage problem but which is not projected to be completed until 2011. The proposed interim solution is to use a Channel 12 transmitter on ESB and additional transmitters on Channels 12, 33 & 65 at four locations in Brooklyn. The FCC, seeing no apparent interference issues, has found the proposal to be in the public interest and has granted the go-ahead for a low power digital repeater network on these channels. The MTA has 30M to work with courtesy of the US Congress.
 Another speed bump for XM/Sirius
Sen. Herb Kohl (D-WI) is head of the Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights (part of the Judiciary Committee), and hosted Mel Karmazin back in March to discuss the proposed merger of XM and Sirius satellite radio firms. Kohl told Karmazin he had problems with the merger, and apparently Karmazin was unable to change his mind. Kohl has fired off a letter to FCC Chairman Kevin Martin and Assistant Attorney General, Antitrust Division Thomas Barnett in which he states that, should it be determined that XM and Sirius constitute a distinct and separate market, then the merger cannot be allowed. "It is my conclusion that satellite radio is in fact a separate market." He explained his reasoning, noting the wide selection of programming, superior sound quality and mobility of the services as reasons it is distinct from all other audio services. Local radio is tied to its community, MP3s and iPods lack news and sports programming, and wireless internet is not a competitive alternative. He noted Karmazin's opinion that there isn't much chance of a new company entering the satellite audio business. He also argued that putting conditions on the merger was unwise, and that continuing competition between the services was preferable to the possibility of "intrusive government regulation for years to come." He asked for the merger to be denied.
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Ad Business Report TM
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Sears goes with MPG
MPG North America has just won the Sears Holding Corporation account, and will be responsible for "media planning and buying for all television, radio, magazines, out-of-home, online and emerging media" action, for all of the company's targeted demographics. Sears said MPG's ability to go multicultural played a major role in its decision, and for its part, MPG is happy that its client's desire to pursue an aggressive media path. "Throughout the pitch process the marketing teams from Sears and Kmart proved their reputation for being smart, fair and extremely professional," said MPG's Charlie Rutman. "What's most exciting to us is that their commitment to using media to grow their business is second to none. Sears Holding is exactly the kind of client we want to partner with."
TVBR observation: This sounds like a double call to arms to us. First off, we would want to make sure we are a prominent part of any action Sears Holding has in store for our market. And we would also have an interest in letting Sears Holding's competitors know that Sears may well be on its way to grab a share of their business. It may be that they'll agree that a pre-emptive air strike is in order.
 Green theme for
appliance maker Bosch
Appliance manufacturer Bosch is extending its "green" marketing efforts with a new television campaign spotlighting the energy efficiency and quietness of its award-winning products. The ads depict Energy Star qualified Bosch appliances in beautiful natural locations, emphasizing how they help preserve the environment yet are silent enough to be incorporated into any space without disturbing even the most sensitive ears. "Known for having the most energy efficient and quiet appliances on the market, these commercials enable us to communicate these attributes in an original and memorable manner," said Franz J. Bosshard, president and CEO. In a 30-second spot entitled "Deer," a gentle Mendocino County Mule Deer comes upon Bosch's Nexxt Washer and Dryer in a lush forest setting. As an animal most sensitive to noise, the deer is not spooked by the ultra-quiet Bosch Nexxt Laundry - even while it is in operation. In other 30-second spots named "Owl," an Eagle Owl soars majestically through a stunning red rock canyon towards a Bosch Evolution(TM) or Integra 800 Series dishwasher. The owl, the quietest bird in flight, lands on the equally quiet Bosch appliance. Each commercial spot features a voiceover explaining the quietness and energy efficiency benefits of these specific Bosch appliances. Created by Santa Monica-based agency, Hamon & Associates, the commercials will begin airing this month on cable networks with high viewership among home improvers.
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| Washington Media Business Report TM |
 Fun on the campaign trail
John McCain (R-AZ) has often managed to irk members of the media. As chairman of the Senate Commerce Committee, he practically declared open warfare with the National Association of Broadcasters on numerous issues ranging from LPFM to campaign advertising to media consolidation. For that reason, some may applaud the call for his resignation from the Senate from a member of his own state delegation, US Rep. Russell Pearce (R-AZ). Pearce says McCain is spending too much time on his bid for the White House and is leaving the job of Senator from the state of Arizona undone. According to reports, McCain has missed about half of the votes in the Senate this year, but his staff says he makes a great effort to get into Washington if a given vote is going to be close. Meanwhile, as if McCain does not have enough company seeking the Republican nomination, there is Newt Gingrich hanging in the shadows. Gingrich says he'll make a decision to run or not in November. Lately, he's been signing copies of his most recent book, "Pearl Harbor" - in New Hampshire and Iowa. Hmmmm. Finally, pity Sen. John Sununu (R-NH). That's Republican in New Hampshire, where a platoon of Democratic presidential hopefuls are barging around looking for something to talk about. Sometimes they get around to talking about John Sununu. Barack Obama (D-IL) went after Sununu and colleague Judd Gregg (R-NH) recently, prodding both to help get the US out of Iraq. Of course Judd is not up for re-election. Democrats see Sununu as vulnerable.
TVBR observation: It is no doubt a great comfort to Sununu to remember that the New Hampshire primary comes well in advance of the November general election. Not that it will make him any less of a target for the Democratic Senatorial Campaign Committee in 2008, but at least he'll have all these other out-of-staters running around bad-mouthing him just before the election that counts.
Broadcasters gear up for violence defense
Harvard Law School constitutional scholar Laurence Tribe is on the case. According to reports, a loose consortium of broadcast networks and media associations has hired him to mount a defense if need be. And the case is the potential First Amendment attack which may be coming from Congress on the issue of broadcast violence. A hearing in the Senate Commerce Committee has been scheduled, then postponed, Sen. Jay Rockefeller (D-WV) has been promising a bill on the topic, and the FCC has been cheerleading from the sidelines. On the other hand, academics have pointed out that the oft-claimed links between violence in the media and violence in society have never been scientifically demonstrated, making this a baseless assault on broadcast First Amendment rights, particularly when parents are giving better tools with which to control what their children can and cannot see on the home television set.
TVBR observation: We don't believe Congress can successfully define violence - note that the FCC didn't even try, and since there is no smoking gun evidence, it would appear that Rockefeller faces an impossible task. But that probably won't stop him from trying, and neither will it stop a lot of other politicians from signing on to "protect our children." Stay tuned.
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| Cable Business Report TM |
Rigas convictions stand
A federal appeals court in New York yesterday upheld the convictions of former Adelphia Communications executives John and Timothy Rigas on charges of securities fraud, conspiracy to commit bank fraud and bank fraud. The appeals court did reverse their convictions on one minor count, but the main ones stand. Adelphia founder John Rigas has been free on bail while appealing his 15 year sentence and son Timothy, who was the company's CFO, has likewise been out on bail while the appeal was pending on his 20 year sentence. There was no immediate word on when the two may have to report to prison. The Rigases were convicted of looting Adelphia to the tune of two billion bucks. Adelphia itself went though Chapter 11 bankruptcy reorganization and its cable systems were sold to Time Warner Cable and Comcast.
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| Entertainment Media Business Report TM |
 Barker finale gets
primetime rerun
We have to believe this is a first - a rerun in primetime of a program that aired in a daytime slot just a few hours earlier. But then, the final appearance by Bob Barker as host of "The Price is Right" is not a normal daytime TV event. CBS says Barker's last original one-hour show will air in its normal time slot (11 am ET/10 am PT) on Friday, June 15th, and then be repeated as the kickoff to primetime that evening (8 pm ET/PT). It will lead into CBS' broadcast of "The 34th Annual Daytime Entertainment Emmy Awards (9:00-11:00 PM, live ET/ delayed PT), from the Kodak Theatre in Hollywood. Barker, by the way, is nominated for what would be his 18th and 19th Daytime Emmy Awards. Barker is retiring after 50 years in show business and 35 years of hosting "The Price is Right," the longest-running game show in television history. Reruns with Barker as host will continue through the summer, with no announcement yet on a new host for this fall. "The Price is Right" is from Mark Goodson Productions, in association with FremantleMedia, North America Inc. Bob Barker is executive producer, Roger Dobkowitz producer and Bart Eskander director.
Product placement goes on the road
Pop music is the predominate topic on Fox's American Idol, and Kellogg's Pop Tarts are hanging on for the ride as the just concluded 2007 edition of the show heads out for a tour of the nation this summer. The breakfast pastry will be featured as the provider of web-streamed behind-the-scenes footage, and will get further exposure in the title of the tour: The 2007 Pop Tarts Presents American Idols Live! Tour. The American Idols section of poptarts.com is already up and running, as a matter of fact. There will be 15 "webisodes" of live on the road with the show's top 12 finalists. The event will come to 53 cities between 7/6/07 and 9/22/07.
TVBR observation: We don't know about you, but if there's any chance some tie-in possibilities exist for your station, we'd be on top of the schedule right away.
Here, at TicketsPlus.com, is the schedule as it stands now.
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| Ratings & Research |
Sports scores 4 of 5 for cable
Basketball playoffs, baseball and the pseudo-sport pro wrestling gave cable/satellite networks four show in the top 100, Adults 18-49, for the most recent week, with the movie "50 First Dates" on USA also making the list. The number crunch is done weekly by the Television Bureau of Advertising (TVB), based on data from Nielsen Media Research for both broadcast and cable/satellite networks. The highest ranked cable/satellite program was at #73, "WWE Entertainment" on USA. It had a 1.7 rating for the demo, while the #1 show, the Wednesday edition of "American Idol" on Fox, posted a 10.8.
| View the Chart |
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| Stock Talk |
Good news for housing sinks stocks
How's that, you ask? Well, Wall Street initially cheered a Commerce Department report that sales of single-family homes jumped an unexpected 16.2% percent last month. But then, after thinking about it, traders realized that the bullish housing news made a Fed rate cut less likely. In the end, the Dow Industrials were down 84 points, or 0.6%, to 13,441.
TV stocks also tumbled. Nexstar fell 3.3%, Emmis was off 3.2% and Media General declined 2.6%.
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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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5.16
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+0.11
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Lincoln Natl.
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LNC
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72.15
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-0.95
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Belo
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BLC
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20.52
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+0.11
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LIN TV
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TVL
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19.27
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-0.11
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| CBS CI. B |
CBS |
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33.04
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-0.20
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McGraw-Hill
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MHP
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70.01
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-0.39
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| CBS CI. A |
CBSa |
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32.99
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-0.20
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Media General
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MEG
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36.04
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-0.95
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Clear Channel
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CCU
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38.30
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+0.10
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Meredith
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MDP
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60.97
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-0.51
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Disney
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DIS
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35.84
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-0.64
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News Corp.
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NWS
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23.39
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-0.51
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Emmis
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EMMS
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10.27
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-0.34
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Nexstar
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NXST
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14.49
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-0.49
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Entravision
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EVC
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9.26
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-0.12
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NY Times
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NYT
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25.19
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+0.35
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| Equity Media |
EMDA |
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4.15 |
unch |
Ion Media
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ION
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1.43
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unch
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Fisher
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FSCI
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49.07
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-0.98
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Saga Commun.
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SGA
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9.43
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-0.06
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Gannett
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GCI
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58.08
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-0.31
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SBS
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SBSA
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4.61
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-0.08
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Gen. Electric
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GE
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37.38
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-0.22
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Scripps
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SSP
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44.43
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-0.50
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| Google |
GOOG |
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474.33
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+0.36
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Sinclair
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SBGI
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15.33
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-0.37
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Granite
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GBTVK
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0.16
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+0.01
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SWMX
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SWMX
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0.24
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unch
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Gray
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GTN
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10.30
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+0.07
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Time Warner
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TWX
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21.31
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-0.25
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Gray, C1. A
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GTNa
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10.41
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-0.15
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Tribune
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TRB
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33.20
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+0.19
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Hearst-Argyle
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HTV
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25.56
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-0.46
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Wash. Post
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WPO
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764.94
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+0.09
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Journal Comm.
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JRN
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13.81
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+0.09
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Young
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YBTVA
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3.82
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-0.08
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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
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Below the Fold
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Cable Business Report
Rigas convictions stand
Federal appeals court in New York upheld the convictions...
Washington Media Business Report
Broadcasters gearing up
For violence defense loose consortium of broadcast networks & media associations has hired...
Entertainment Media
Business Report
Product placement
Goes on the road with Fox's Idol and Kellogg's Pop Tarts...
Ratings & Research
Sports scores 4 of 5 for cable
Basketball playoffs, baseball and the pseudo-sport pro wrestling...
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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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 Damiano says goodbye
After 38 years with NBC Universal, John Damiano, Executive Vice President of Affiliate Relations, has announced his retirement from the company on June 1, 2007. "Thanks to John, NBC has the strongest and best affiliate group in the industry. He's been a terrific executive who has left his mark on the company throughout his nearly 40-year career. He'll certainly be missed by us at NBCU and by all our affiliate partners around the country," said Jeff Zucker, President and CEO, NBC Universal.
 AWRT
to honor
Stamberg
American Women in Radio and Television (AWRT) announced that legendary NPR journalist Susan Stamberg will receive the 2007 Gracie Allen Tribute Award, which is presented to an individual who embodies the same innovative and ground-breaking spirit as the legendary Gracie Allen. Stamberg is a special correspondent for NPR, where she has been bringing an international audience the news for 36 years.
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More News Headlines
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Bridal promotion for WE uses direct mail
WE tv, "the network for women," is using the blue Valpak envelope to help promote an all new season of the original series "Bridezillas" and "WE Go Bridal" Night on Sundays. During the month of June, over 40 million Valpak envelopes, featuring WE tv and a honeymoon-style Caribbean vacation sweepstakes, will be mailed to households throughout the United States. One grand prize winner can choose either 5K in cash or a 5-day trip for two to a deluxe resort in the Dominican Republic. The trip consists of two round-trip coach class air tickets and deluxe hotel accommodations for four nights with a spa treatment for each guest. Entry forms can be found in specially marked Valpak envelopes and consumers can also register at WEtv.com or Valpak.com. WE tv will also feature the promotion with Valpak in over 200 TV spots during WE tv shows such as "Bridezillas," "Platinum Weddings," "What's Cooking" and "Take This House."
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TVBR Radar 2007
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Television News you won't read any where else. TVBR--First, Accurate, and Independently Owned.
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TV revenues dropped in Q1
No surprise, since there were no Winter Olympics this year, nor federal elections. TV station revenues were down 3%, syndicated TV 5.9% and network TV 6.5%. All in all, the industry was down 5.3% to 11.75 billion for the quarter, according to data gathered for TVB by TNS Media Intelligence/CMR. Among local broadcast television's top 10 advertising categories, the picture was mixed. The biggest category of all, Automotive, was down 8.9%. Restaurants, Telecommunications, Financial and Schools/Colleges/Camps were up. Car & Truck Dealers, Furniture Stores, Insurance/Real Estate, Leisure Time Activities/Events and Government & Organizations (which includes political) were down.
TVBR observation: To view the 1st quarter 2007 summary - Local Broadcast: Top 100 Markets see this issue of TVBR.
05/24/07 TVBR #102
Internet ads growing like wildfire
You no doubt know already that Internet advertising was hot in 2006. Your own station's website ad sales likely grew double digits and your spot sales probably felt some new competition from various online enterprises. The Interactive Advertising Bureau (IAB) is out with its official tally by Pricewaterhouse Coopers.
TVBR observation: If you did Not view this special stat page in TVBR, best do it now.
05/24/07 TVBR #102
Shareholders take
final swipe at CCU
Clear Channel may be on the verge of becoming a private company, but shareholders got in a final swipe at management. They voted at their annual meeting to require greater independence of directors serving on the company's compensation committee, despite a unanimous recommendation by the board of directors that the proposal be voted down.
RBR observation: The obvious target of this measure is B.J. "Red" McCombs, who co-founded Clear Channel with Lowry Mays and has been a company director for every minute of its existence over the past 35 years. According to the CCU proxy, the company leases some office space in San Antonio from a company owned by the adult offspring of Lowry Mays and Red McCombs for just under 17K per month. (There is more detail on 'Red' in this issue of RBR)
05/24/07 RBR #102
Newspapers fighting back
to regain ad share
Relationals, which bills itself as "the leader in customer relationship management (CRM) and sales force automation (SFA) for the newspaper industry,"
TVBR observation: Television, radio, Internet sites and everyone else have been targeting daily newspapers as the place to shave off ad spending. And why not? The lumbering old dailies were an easy target - high-priced, inefficient and poorly targeted. Most put little effort into ad sales because they didn't have to - the business just kept coming to them out of habit. No more. The auto sector led the exodus from daily newspapers (and other "old media" properties as well) and other savvy advertisers have begun questioning the efficiency of using a medium that mostly misses the prime younger demos. But don't count out the newspapers. They are fighting back - and fighting for their survival. They will become better marketers, hire more sales people and train them better. The dailies aren't going away.
05/24/07 TVBR #102
Should the FCC auction
spectrum apartments?
Google auctions its own online advertising, under terms of which companies control where their ads will appear on Google's search engine by how much they're willing to pay per click. The online giant thinks this model could lead to much more efficient use of the radio spectrum, and suggests that the FCC allow its auction winners to offer wholesale whatever spectrum it has but is not using. Also, a large chunk of prime spectrum is coming on the market as television broadcasters get set to turn in their analog licenses and begin digital-only transmission beginning 2/17/09. The spectrum auction will take place well before that date, and FCC Chairman Kevin Martin (R) has been talking about getting the auction under way as early as this Fall.
05/23/07 TVBR #101
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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.
Need assistance
contact Cathy Carnegie
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