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Volume 23, Issue 105, Jim Carnegie, Editor & Publisher
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Tuesday Morning May 30th, 2006
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TV News ®
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 CBS News crew hit
by Iraq bomb; two dead
A bomb blast in Iraq yesterday killed two members of a CBS News crew and left a third battling for her life. Dead from the roadside car bomb attack are cameraman Paul Douglas, 48, who had worked for CBS News in many countries since the early 1990s, and soundman James Brolan, 42, a freelancer who had worked with CBS News over the past year in Iraq and Afghanistan. Correspondent Kimberly Dozier, 39, was hospitalized in critical condition. "This is a devastating loss for CBS News," said Sean McManus, President, CBS News and Sports. "Kimberly, Paul and James were veterans of war coverage who proved their bravery and dedication every single day. They always volunteered for dangerous assignments and were invaluable in our attempt to report the news to the American public." According to CBS News, the crew was embedded with the 4th Infantry Division of the US Army in Iraq. They were reporting from outside their humvee - reporting a "routine" story about the activities of US troops on Memorial Day - when the car packed with explosives was detonated. The network said they were believed to have been wearing protective clothing. In addition to the dead and injured journalists, one US soldier was killed and as many as six injured.
 VNU buyer wants bonds too
Now that Valcon, created by a consortium of equity funds, has won the right to buy out shareholders of VNU for 9.7 billion bucks (5/22/06 TVBR #100), it is offering to buy out most bondholders as well. The soon-to-be owner of Nielsen Media Research, Billboard magazine and other VNU properties is making a tender offer for nearly 1.3 billion bucks of VNU's public debt. To facilitate the bond buyback, VNU has called a series of meetings for June 19th and 20th for holders to vote on approving the redemption of some or all of the bonds at 100% of their face value, plus accrued and unpaid interest. "Any resolution that is adopted at a meeting of noteholders will also be binding on noteholders who did not appear or were not represented at the meeting, or who voted against the proposed resolution, or who abstained from voting thereon, and on holders of coupons," VNU noted in its announcement.
TVBR observation: Really just a bit of housekeeping. We wait now for the bigger moves. Who will be the new CEO, as VNU gets a new name and moves its incorporation from The Netherlands to the US? What role will Nielsen Media Research President and CEO Susan Whiting play? TVBR hears that her star is on the rise as she was the guiding light through this long storm. The folks at the equity firms that own Valcon have been saying that there are no divestiture plans, but we keep hearing that they would really like to get rid of some of the non-core operations, particularly in the publications and trade show division. You could make the case that Billboard, The Hollywood Reporter and Adweek at least have some relationship to the main businesses of media ratings and consumer research. But can you make that case for Architectural Lighting, Bicycle Retailer & Industry News or Progressive Grocer? Bottom line: When a CEO is appointed this will demonstrate the course and focus of the company.
FCC finally back at full strength
At long last, the US Senate acted on President Bush's nomination of Rob McDowell to the vacant seat on the FCC before heading out of town for the holiday weekend, finally giving Chairman Kevin Martin his 3-2 Republican majority to begin moving his agenda. A happy Martin said, "I congratulate Rob McDowell on his confirmation as Commissioner at the FCC. He has a wealth of knowledge and expertise in the communications arena, and we will rely on his insight. I am anxious to have him onboard and look forward to working with a full complement of Commissioners to address the important issues before us." Democratic Commissioner Michael Copps said, "I am pleased that the Senate has today confirmed Robert McDowell's appointment to the Federal Communications Commission. Robert will bring a wealth of experience and valuable perspective to the Commission and I am looking forward to working with him on the many important communications challenges confronting our nation. The Commission is intended to function at a full complement of five members and I look forward to working with my four colleagues to devise creative solutions for bringing the wonders of the digital era to all of our citizens." Senate Commerce Committee Chairman Ted Stevens (R-AK) said, "Rob McDowell's confirmation today is great news for the FCC. Rob's expertise and experience will be an asset to the Commission as it tackles a variety of critical communications issues in the future. The FCC will be required to implement portions of our communications bill, and it is essential it has a full complement of commissioners." All of this means that the pending status of FCC Commissioner Nominee is no longer in limbo after getting the Senate nod by unanimous acclimation.
TVBR observation: This clears the way for the fireworks to begin just in time for the Fourth of July. Martin has no doubt been running out of non-controversial items for his monthly open meetings. Now the fun stuff, the stuff where he'll need that all-important third Republican vote, can be trotted out. But they'll be watching on Capitol Hill. Should make for an interesting summer...
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 Too much leverage?
Bear Stearns analyst Victor Miller is concerned that most publicly traded TV companies are over leveraged. Thus, he likes LIN's plan to sell off its Puerto Rico properties and pay down debt. In an extensive analysis piece sent out Friday, Miller noted that Wall Street appears to be punishing the stock prices of the pure-play TV companies with the highest debt-to-EBITDA ratios - Young at 19.3 times and Nexstar at 7.6 times, while awarding the highest value to Hearst-Argyle, the least leveraged at 3.2 times. "We find that these levels of leverage are inappropriate," Miller said of those at the high end in a conference call to discuss his research report, and he suggested that high leverage may be scaring investors away from TV stocks. Miller expressed confidence that LIN will find plenty of bidder interest for the Puerto Rico TV operations it put up for sale last week. He expects the eventual sale to reduce LIN's leverage to 5.0-5.3 times from its current 6.3 times, which he hailed as "an important development" for the stock. Why are leverage levels such a big concern? Miller notes four fundamental concerns that make TV station group stocks appear risky to investors: the sluggishness of national advertising, over-reliance on political advertising, the loss of network comp and the lack of clarity on when broadcasters will realize a return on their DTV investments - and how much of a return that will be.
VNR probe on FCC agenda
The Center for Media and Democracy published a study awhile back detailing incidents of video news releases (VNRs), sent to television stations by PR firms on behalf of corporations, being aired without attribution. The number of incidents keeps growing, and FCC Chairman Kevin Martin is looking into it. Back in April, CMD noted 77 stations which ran items from 49 different corporations, and according to reports there have been many more incidents since then. The use of video and audio news releases (ANR) by the government came under fire in the last couple of years, particularly when news reports from a faux reporter named Karen Ryan made it onto news programs pushing positions for government agencies, in VNRs made for those agencies. If stations are found to have broken the rules on disclosure, they face a fine of up to 32.5K per incident. Failure to properly attribute sources is a variation of payola, a pet issue of Democratic Commissioner Jonathan Adelstein. According to reports, Adelstein pushed for the investigation and Republican Martin obliged.
TVBR observation: There is nothing inherently wrong with VNRs or ANRs. For example, we don't suppose any of the major news organizations were able to get a crew up on the Moon with Neil Armstrong back in 1969. The world was more than happy to accept government audio and video of the event. VNR/ANR usage gets a great deal murkier when agencies or companies with a position to push are behind them. The Radio-Television News Directors Association has consistently defended the use of VNRs, but has also frequently urged stations to exercise extreme caution and provide full disclosure when doing so. We think RTNDA is correct.
 Inouye releases rewrite
of Telecom rewrite
Sen. Dan Inouye (D-HI), the ranking member on the Commerce Committee and, along with Ted Stevens (R-AK) a co-sponsor of the Consumer Competition and Broadband Promotion Act, has put out a revised draft of the bill which will presumably be the topic of discussion when the Committee takes it up again 6/16/06. Among other things, it goes to great lengths to both grease the wheels for telcos to enter the MVPD business while maintaining a level playing field between them and incumbent providers; provides for national franchising while allowing a statewide franchise as long as it conforms to national minimum requirements; imposes build-out requirements on new MVPD entrants ultimately mandating 80% market service within seven years; legalizes broadcast and digital audio flagging material to prevent piracy; adopts the Olympia Snowe (R-ME)/Byron Dorgan (D-ND) plan to protect Internet network neutrality. In a recent hearing, Dorgan also mentioned his plan to introduce language prohibiting further FCC media ownership regulation. There is no mention of that one way or the other in the Inouye draft.
| Here it is in its entirety |
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Ad Business Report TM
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Coca Cola and CC Outdoor sign global deal
The Coca-Cola Company and Clear Channel Outdoor announced a global partnership designed to create and enhance new and customized outdoor programs for Coke's brands. The multi-year agreement, the first between a global advertiser and outdoor media company, will enable the companies to work together more efficiently and strategically in the design, development and placement of billboards, signs and other outdoor elements in support of the beverage company's marketing communications efforts. "I believe our partnership with Clear Channel Outdoor will help us improve the way we plan and execute outdoor advertising, a form of communications we have used to speak to consumers throughout our 120-year history," said Scott McCune, VP/Integrated Marketing for Coca-Cola. "In fact, this partnership could not have been timelier for us, as we are in the process of launching globally our new Coke Side of Life brand marketing communications campaign, which relies heavily on creative outdoor executions."
 Stockholders approve DG-FastChannel Network merger
DG Systems, a major provider of digital media distribution services to the advertising and broadcast industries, announced its stockholders approved the merger with privately-held FastChannel Network, Inc. DG stockholders also approved an amendment to the company's certificate of incorporation to effect a one-for-ten reverse split of the common stock. Stockholders of FastChannel approved the merger at a special meeting held last week and the transaction is expected to close tomorrow. The one-for-ten reverse stock split is expected to be effective today and DG Systems shares will continue to trade on Nasdaq under the symbol "DGIT." Pursuant to the merger agreement, the issued and outstanding shares of FastChannel common and preferred stock will be converted into and exchanged for an aggregate of up to 52,062,712 (pre-split) DG Systems' shares. In addition, DG expects to refinance approximately 8.5 million of FastChannel debt through its existing 35 million commitment letter with Wachovia Bank N.A.
Study: Small business owners rely
on advice from peers more than ads
A new Warrillow & Co. research study provides a glimpse into the world of how small business owners make buying decisions. Unlike consumers who may be more influenced by traditional advertising, small business owners prefer to rely on recommendations from fellow business owners before making a buying decision.
| Read More... |
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| Media Business Report TM |
 Times of London to hit New York streets
Does anybody really know which Times it is? Some people might ask that question next week when New York, which already has a daily newspaper called the Times, becomes the first market to receive the US edition of The Times - the one based in London. The British paper will be printed at the plant of its US cousin, the New York Post, since both are owned by News Corporation. It will be available by subscription and at more than 2,000 retail outlets in New York and New Jersey. "This is a key moment in the development of The Times as an international media brand. We have seen a large increase in our Times Online readership in the US and the appearance of the newspaper on the streets of New York marks the next stage in our print and web expansion," said Editor Robert Thomson. The US edition will be edited by John Mair, editor of the international edition of The Times.
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| Media Markets & Money TM |
Belo raises a quarter billion
Belo Corporation closed on its 250 million bucks sale of new bonds (5/25/06 TVBR #103) Friday, pricing the unsubordinated and unsecured senior notes due 2013 at a coupon of 6.75%. As previously noted, Belo intends to use the proceeds for general corporate purposes, which may include reducing its bank debt. The joint book-running managers were Banc of America Securities and JP Morgan.
 The top 25 TV groups
It only takes 135.7M in 2005 annual income to make the BIA Financial Network list of Top 25 Television Station groups, but it takes almost 17 times that amount to get to the top of the list. The claim to the rarified air at the revenue peak belongs to Fox Television Broadcasting, with just under 2.3B in revenues. The bottom slot went to Entravision. Ten of the top television groups are also active in radio. Some remain with scant radio holdings. ABC sold off most of its group (still pending); Tribune, Hearst-Argyle and New York Times only have radio holdings in a single market. Some are more involved. Like Clear Channel and CBS.
| Here is the hit list |
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| Washington Media Business Report TM |
McCain orders a la carte
Just before lawmakers left DC for the holiday weekend, Sen. John McCain (R-AZ) unveiled his bill on a la carte channel pricing by cable MSOs - a carrot and stick approach, rather than mandatory a la carte pricing. One surprise for big media companies is a provision that would take away local signal non-duplication rights for any company that refuses to allow a la carte pricing of its cable networks - a provision that would hit Disney/ABC particularly hard, while hardly affecting CBS, which has very little cable network presence since separating from Viacom. NBC Universal and News Corp./Fox fall somewhere in-between, as do other TV group owners with holdings in the cable arena. Were the law to take effect and Disney/ABC refused to allow a la carte pricing of its big cash cow, ESPN, you would, for example, have a situation where cable systems in the Flint, MI and Toledo, OH markets, where ABC has O&Os, would be free to carry Scripps' WXYZ-TV (Ch. 7, ABC) from the nearby Detroit market.
 Bipartisan net neutrality bill
clears House panel
Net neutrality is being tackled in the Telecom Act updates working their way through both Commerce Committees in both houses of Congress. Even as that happens, other committees are weighing in, most notably the House Judiciary Committee, which supports safeguarding neutrality by a bipartisan vote of 20-13. The committee's leadership, Chairman Jim Sensenbrenner (R-WI) and Ranking Member John Conyers (D-MI) pushed through the measure. Sensenbrenner said, "The Committee, in a bipartisan fashion, understands that this legislation will provide an insurance policy for Internet users against being harmed by broadband network operators abusing their market power to discriminate against content and service providers. While I am not opposed to providers responsibly managing their networks and providing increased bandwidth to those consumers who wish to pay for it, I am opposed to providers giving faster, more efficient access to certain service providers at the expense of others." Conyers added, "The Internet has flourished because its users' unfettered access has created a marketplace responsive to consumers. Without the nondiscrimination protections provided in this bill, the Internet could become a place where corporate executives may determine what content and services are available. We cannot wait until consumers lose the right to access Internet content freely."
TVBR observation: Once again, communications proves to be one of those niches on Capitol Hill where elephant meets donkey and left meets right, and sometimes circle around behind one another. This is one corner of the American society where standard ideological labels are blurred.
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| Cable Business Report TM |
 Gay cable network shuts down
Triangle Multi-Media, a public company which had been trading on the pink sheets as QBID, announced last week that it has shut down the operations of its only operating unit, the Q Television Network (QTN). The cable channel had been struggling for years. Chairman and CEO Lloyd Fan stated that he was unable to secure funding for the network and therefore unable to meet the financial obligations of the company. "When I took over control of the network on March 7, 2006, the company was roughly seven million behind in payments to vendors; numerous lawsuits had been filed against the company and over 600,000 was owed to former employees. The financial challenges that the network faced proved too difficult and I was simply unable to turn around the network," Fan said. "Given the GLBT demographic and the success the network had experienced in distribution, I thought securing funding would be easy - I was wrong. I am deeply disappointed that the network failed. Many talented people devoted themselves to saving the network and it is sad that it has come to this end," he lamented. With the demise of QTN, two GLBT-oriented cable networks remain in the marketplace: Logo, an advertiser-supported channel owned by Viacom's MTV Networks; and here!, a privately owned pay-per-view network.
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| Entertainment Media Business Report TM |
MyNetworkTV adds Desperate
Housewives for syndication
Buena Vista Television has signed with Fox's new MyNetwork TV for weekend syndication of ABC's "Desperate Housewives." The one-hour show will run on the MyNetwork TV stations in a two-year deal beginning fall 2008. Stations will not be required to pay a license fee, but ad time in each show will be divided up between affiliates and Buena Vista (seven min. local for affiliates and seven minutes national for Buena Vista).
 NBC News to offer content on iTunes
NBC News is offering a collection of video news and documentary programming for purchase and download from the iTunes Music Store. Programming from will be priced at 1.99 per download, and includes a selection of current and historical programming from NBC News, CNBC and MSNBC. The initial list of titles follows in this release, and additional offerings will be available on a regular basis. NBC News is also showcasing some unique "Time Capsule" programs produced in a digital-only format available only on iTunes. Hosted by "NBC Nightly News" Anchor and Managing Editor Brian Williams, initial offerings include "In His Own Words" programs on both John F. Kennedy and Richard M. Nixon, featuring rare and exclusive interviews from the NBC News Archives. Other highlights from include Williams' first-person account of covering Hurricane Katrina and its aftermath; Tom Brokaw's "Greatest Generation" reports - three programs that served as companions to his best-selling books; and "Meet the Press" moderator Tim Russert's "Meet the Presidents" series: complete episodes of "Meet the Press," available for the first time and including special new introductions from Russert.
NBC renews "Passions" for eighth season
NBC announced the renewal of daytime's youngest drama "Passions" for an eighth season and that the show's creator James E. Reilly will continue his role as consulting producer and head writer and Lisa de Cazotte will continue as executive producer. "Passions," which debuted in July 1999, is produced by NBC Universal Television Studio in association Outpost Farms Productions.
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| Internet Media Business Report TM |
Crystal ball gets high marks
comScore Networks announced that its Q1 e-commerce sales estimates, originally published in early April 2006, accurately predicted the data published by the U.S. Department of Commerce. The comScore e-commerce data were available to comScore clients and widely published in early April, while the U.S. Department of Commerce did not release its estimates until 5/19. The Department of Commerce reported total U.S. non-travel online spending at 24.5 billion for the first quarter of 2006. comScore's previously published non-travel online spending figure was 23.9 billion for the Q1, representing a year-over-year growth rate of 22%. "The fact that the comScore data has been validated to accurately predict the official Commerce Department numbers that are published approximately five weeks later provides a vital benefit to marketers by allowing them to obtain the fastest reading possible of the key trends in consumers' online spending by relying on the comScore estimates," said Gian Fulgoni, chairman of comScore.
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| TVBR Stats |
 Internet use among used-vehicle
buyers outpaces print
More than twice as many late-model used-vehicle buyers find the vehicle they purchase online than both newspaper and magazine classified ads combined, according to the J.D. Power and Associates 2006 Used Autoshopper.com study. The study says the percentage of buyers finding their used vehicle through newspaper or magazine classified ad has dropped from 14% in 2002 to 7% in 2006. During the same period, buyers who found their vehicle through an online classified ad doubled from 8% in 2002 to 16% in 2006. This year, 59% of used-vehicle buyers used the internet during the shopping process - up from 53% in 2005. As well, 80% of used-vehicle buyers now have access to the Internet - a 4 percentage-point increase over 2005. This increase is driven largely by buyers 60+.The 2006 Used Autoshopper.com Study is based on responses from 12,317 used-vehicle buyers who purchased pre-owned 2001-2006 model-year cars and trucks.
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| Tuesday Morning Makers & Shakers |
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Transactions: 4/10/06-4/14/06
It was a huge week for filing television transactions. Six separate contracts came in, involving 18 separate full-power stations. Peeking ahead, there is a lot more action to come as television trading really takes off. All told, just under a 1B dollars changed hands.
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Total
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Total Deals
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16
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AMs
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9
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FMs
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7
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TVs
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18
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| Value |
959.999M
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| Complete Charts |
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Radio Transactions of the Week
Getting the 'LIE of the island
| More... |
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TV Transactions of the Week
Four on the floor for Media General
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| Transactions |
5M WXEL-TV, WXEL-FM West Palm Beach FL from Barry Telecommunications Inc., a subsidiary of Barry University (Belinda Bevilacqua) to WXEL Public Broadcasting Corp. (Alexander W. Dreyfoos Jr. et al). 500K escrow, 2M cash at closing, 2.5M note. [File date 5/8/06.]
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| Stock Talk |
Gains ahead of the holiday
Wall Street liked a government report showing that consumer spending went up in April. The Dow Industrials gained 68 points, or 0.6%, on Friday, to spend the holiday weekend at 11,279.
TV stocks were up modestly. Scripps rose 1.7% on an upgrade to "buy" by Merrill Lynch. Entravision gained 1.5% and Univision rose 1.4%.
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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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4.80
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-0.19
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LIN TV
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TVL
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9.18
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-0.02
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Belo
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BLC
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17.16
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+0.21
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McGraw-Hill
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MHP
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52.35
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+0.10
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| CBS CI. B |
CBS |
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26.20
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-0.10
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Media General
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MEG
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38.34
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+0.10
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| CBS CI. A |
CBSa |
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26.17
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-0.10
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Meredith
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MDP
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49.89
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+0.25
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Clear Channel
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CCU
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31.00
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-0.14
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News Corp.
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NWS
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19.98
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+0.34
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Disney
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DIS
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30.51
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+0.36
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Nexstar
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NXST
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5.15
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-0.04
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Emmis
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EMMS
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16.15
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+0.06
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NY Times
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NYT
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24.46
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-0.28
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Entravision
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EVC
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7.91
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-0.14
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Ion Media
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ION
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0.83
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unch
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Fisher
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FSCI
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43.00
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-0.49
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Saga Commun.
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SGA
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9.61
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-0.04
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Gannett
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GCI
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53.91
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+0.13
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SBS
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SBSA
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5.56
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-0.05
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Gen. Electric
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GE
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34.33
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-0.09
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Scripps
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SSP
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46.47
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+0.77
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Granite
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GBTVK
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0.25
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+0.04
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Sinclair
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SBGI
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8.45
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+0.01
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Gray
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GTN
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6.92
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+0.11
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Time Warner
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TWX
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17.44
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+0.05
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Gray, C1. A
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GTNa
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6.90
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+0.08
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Tribune
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TRB
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27.89
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-0.01
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Hearst-Argyle
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HTV
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22.48
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+0.15
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Univision
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UVN
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36.09
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+0.49
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Journal Comm.
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JRN
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11.81
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unch
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Wash. Post
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WPO
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792.41
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+7.87
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Lincoln Natl.
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LNC
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56.51
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+0.41
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Young
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YBTVA
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3.13
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-0.05
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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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Ad Business Report
Coca Cola and CC Outdoor
A global partnership designed to enhance customized programs for Coke's brands...
Media Business Report
Times of London
To hit NYX streets. Does anybody Really know which Times it is?..
Media Markets & Money
The top 25 TV groups
It only takes 135.7M in 2005 annual income...
Cable Business Report
Gay cable network shuts down
had been trading on the pink sheets as QBID...
TVBR Stats
Internet use among used-vehicle
The buyers outpaced print and this year 59% of used-vehicle buyers used the internet...
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More News Headlines
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CBS affiliates
head to Las Vegas
The 2006 General Conference of CBS Television Network Affiliates will be held tomorrow and Thursday at the Bellagio Las Vegas. Activities will begin Wednesday at 8:00 AM with the CBS Television Network Affiliates Association Board of Directors Closed Meeting. At 8:30 AM there's a CBS Affiliates Sales Council Meeting. At 10:30 AM the entire affiliate body convenes in a closed session chaired by Doreen Wade, VP/GM, WPEC West Palm Beach and President, Freedom Broadcasting and Chair of the CBS Television Network Affiliates Association. Wade and Peter Schruth, President, Affiliate Relations, CBS TV, will welcome the affiliates to the first business session at 2:00 PM on Wednesday. CEO Les Moonves will open the meeting, addressing the affiliates on the state of CBS Corp. Nina Tassler, President, CBS Entertainment, will then present the new schedule for the 2006-2007 Season (2:00-4:00 PM). A reception for all those attending the Conference, including station execs and owners representing more than 200 affiliates around the country, begins at 5:00 PM Wednesday at the Bellagio's Grand Patio & Monet.
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International
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UK DTV passes
senior test
98% of old-timers in the United Kingdom agree: Digital television is as good or better than analog. They like the extra channels and improved reception, and over two thirds were able to install and operate new DTV-related equipment without assistance. The results came from a test conducted in 400 Bolton households all including at least one resident aged 75 or older or with a significant disability. Broadcasting Minister Shaun Woodward said, "70% of UK homes now have digital television, so we know it's a product people want. And now we know they like it. The Bolton trial reveals that people who may need extra help making the switch become as keen on digital television as anyone else, once they have it. 98% felt it was an improvement on or as good as analogue viewing."
TVBR observation: If they can handle it over there...
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RBR - Radio News
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CBS Radio, Stern issue joint statement
On the recent settlement (5/25/06 RBR #103) of the suit brought by CBS Radio against Stern, his company One Twelve Inc., his agent Don Buchwald and Sirius Satellite Radio in February. As part of the settlement, CBS Radio will receive payments for allowing the use of its recordings of The Howard Stern Show. Sirius will make a total payment of two million bucks related to this conveyance. Is that it, or is there more? No one is saying and the remaining details are confidential. It is safe to say that CBS is getting far less than it had sought. The suit had claimed multiple breaches of contract, fraud, unjust enrichment and misappropriation of CBS Radio's broadcast time. Stern denied that he cost his former employer money by discussing satellite radio on his terrestrial radio show, insisting that it was a legitimate story that actually helped ratings. Much of this settlement stems from a specific complaint in the suit: "To this day, Stern continues to breach his contract by refusing to return property that belongs to CBS Radio - the recordings of his CBS radio program that, under his Agreement with CBS Radio, belong to the company." Now he doesn't need to return them.
RBR observation: We are not sure about the other terms of the settlement, but the original rumor was the suit held damages of some 500M - somewhere in the ballpark of estimated losses from CBS Radio losing Stern early. So there probably wasn't much of a case when it got down to nuts and bolts, other than the recordings. 2M is indeed a drop in the bucket, compared to the losses of both ratings and revenue since Stern's departure. CBS execs have their fingers crossed that Opie and Anthony will be able to recoup some of that.
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Download Now
May '06 RBR/TVBR Solutions Magazine
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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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TV is cyclical; get used to it
Mark Fratrik, VP and Chief Economist for BIA Financial Network (BIAfn), is predicting that US television stations will take in 22.2 billion in revenues this year, up more than 7% from 2005. However, the bulk of that 1.5 billion gain from last year's 20.7 billion is going to come from political spending, continuing the two-year pattern that has become increasingly apparent in recent years. Back in the 1980s and '90s, growth in other major ad categories, led by automotive, could be counted on to fill the growth gap in non-election years. "We don't have that anymore," Fratrik told TVBR. "Local television stations are in precarious positions and must think creatively to drum up new revenue streams....Those revenue streams are small now, but five years out he predicts that some smaller broadcasters may generate up to 25% of their revenues and 40% of their cash flow from platforms other than their main TV channel.
TVBR observation: Fratrik has a keen forecasting eye better than your average Wall Street guru because he has the experience of broadcasting. Fratrik is also correct on the new revenue streams must be built and natured along as it will take a little time. Most broadcast companies that have survived the recession and bootstrap rebuilding process with a strong brand will take the profits over the next 4 years. Another shake out is coming for those who have not prepared.
05/26/06 TVBR #104
Senate indecency lite
may have inside track
With fine-raising bills passed by wide majorities in both the Senate and the House, it appears that the legislation is on the on-ramp to becoming a law. This is especially true with an important member of the House saying that when it comes to resolving differences between the two versions, he'd be happy to accept the weaker Senate version.
TVBR observation:
Just when it looked like this bill would languish for the third straight year, Senate sponsor Sam Brownback (R-KS) and majority leader Bill Frist (R-TN) were able to bypass the Senate Commerce Committee (and those who would offer amendments) and get Brownback's version passed by unanimous acclimation. If Barton is willing to go along with the Senate version, it looks like it is going to happen.
05/26/06 TVBR #104
Shivering SHVA ruling
handed to EchoStar
DBS Dish Network operator EchoStar was soundly defeated in the 11th Circuit in Atlanta in a suit brought by ABC, CBS, Fox and NBC concerning the illegal importation of distant signals into local markets. Found to be a violation of copyright law, EchoStar is barred from continuing the practice. EchoStar was ordered by Judge William Dimitrouleas to turn off ineligible subscribers.
05/25/06 TVBR #103
Google moves to
place video ads online
Moving forward this week with a new service for its AdWords platform that will place video spots on websites where it sells ads. Google is working hard to branch out into traditional media as well, buying DMarc Broadcasting in January to help its own advertisers conveniently buy radio spots online. Google's announcement comes a week after AOL said that it had acquired Lightningcast, a company that sells video ads on some 150 sites.
TVBR observation: Just be very careful with Google or anyone that is not familiar with your business. On this one, our TVBR observation is to walk around the pool a few more times before you jump in.
05/24/06 TVBR #102
CBS names radio markets to be sold
To divest 35 radio stations in 10 markets it wants to exit. The tally comes to 39 stations, four more than Moonves indicated last week. The list is not limited to smaller markets. Included are three markets in the top 30.
RBR observation: Our first thought - wouldn't it be more than interesting if hometown boy Randy Michaels were to buy that four-station Cincinnati cluster and start over again? These are certainly not the dregs that CBS is out to sell. With only two stations in San Antonio the company needed to get bigger or get out - and CBS is not in a mode to buy radio stations. Fresno and Greensboro were publicly shopped before then pulled back when CBS (then Infinity) didn't like the market conditions. Interested? Here is the shopping list see
05/24/06 RBR #102
Newbie nets filling up
their local dance cards
Today's Jeopardy (apologies to KingWorld) answer: Burlington, VT. The question: What is the largest US TV market that does not yet have an announced affiliate for either the CW network or MyNetworkTV, both set to launch this September? Burlington is DMA #90 and at least one of the two newbie nets has a home in each of the 79 larger markets - and both do in most cases.TVBR observation: Logic would dictate that the flurry of affiliate announcements from the CW should slow down, now that only smaller markets and less than 10% of US TV households remain to be covered. Clearly there were lots of local stations interested in winning the local rights to a schedule made up mostly of the top shows from the soon to be extinct WB and UPN networks. Now lets see if any network can market their products and keep front mind awareness in this heavy competitive environment. For the list see
05/23/06 TVBR #101
Equity firms claim victory
in VNU buyout
Sometimes we amaze ourselves. With 80% as the target for acceptance of a 9.7 billion bucks equity consortium buyout of VNU, we asked earlier this month "We wonder, what will happen if the final tally on May 19th is 79%?" That is exactly what happened.
05/22/06 TVBR #100
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