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Volume 24, Issue 110, Jim Carnegie, Editor & Publisher

Wednesday Morning June 6th, 2007

TV News ®

Burkle joins union bid
for Dow Jones
Having lost Tribune Co. to Sam Zell, supermarket billionaire Ron Burkle is now entering the bidding for Dow Jones & Co. Burkle has joined forces with the union representing many Wall Street Journal employees, which is desperately seeking an alternative to the company being acquired by Rupert Murdoch and News Corporation. "Desperately" may even be an understatement. The Independent Association of Publisher' Employees, which represents about 2,000 Dow Jones workers, or about 26% of the workforce, is dead set against having to deal with Murdoch. It has not only sought out Burkle as a partner, but has also made a public appeal for Warren Buffet to come to its aid. The union has enlisted Ownership Associates as its financial consultant. That's the firm that worked with the unions who sought to buy Knight Ridder when it was up for sale. They were not successful. Burkle's move to join the union bid came shortly after Murdoch met with various members of the Bancroft family, which has controlled Dow Jones for the past 100 years. "The parties had a constructive dialogue and have gone back to consider our positions," said a family spokesman, pretty much echoing the Murdoch statement that the meeting was "constructive." The four-hour meeting apparently focused less on money - Murdoch is already offering an impressive five billion bucks - than on safeguards to ensure the journalistic independence of the Wall Street Journal.

TVBR observation: Here is what Warren Buffet had to say about the newspaper business two months ago in his annual Chairman's Letter to Berkshire Hathaway shareholders: "Not all of our businesses are destined to increase profits. When an industry's underlying economics are crumbling, talented management may slow the rate of decline. Eventually, though, eroding fundamentals will overwhelm managerial brilliance. (As a wise friend told me long ago, 'If you want to get a reputation as a good businessman, be sure to get into a good business.') And fundamentals are definitely eroding in the newspaper industry, a trend that has caused the profits of our Buffalo News to decline. The skid will almost certainly continue." Does that sound like a guy who is going to rush forward to help top a bid that's already an astounding 17 times EBITDA?

Sinclair signs retrans deal with Cox
Sinclair Broadcast Group has completed another retransmission consent agreement with a major cable MSO, announcing that it has signed a four-year retrans deal with Cox Communications. As usual, the financial details are a closely guarded secret. "Our agreement with Cox, which includes mutually acceptable economic arrangements and an exchange of value, again demonstrates the value of broadcast television to alternative delivery systems," said Sinclair CEO David Smith in announcing the agreement. The contract with Cox wraps up this round of retrans agreements with the major MSOs for Sinclair. The Cox deal covers nine stations in six markets, Las Vegas, Oklahoma City, Pensacola-Mobile, Norfolk, Richmond and Springfield, MA. In all, some 1.25 million cable subscribers.

Will Martin take his case
to a higher court?
FCC Chairman Kevin Martin expressed his astonishment that the FCC decision to hold broadcasters accountable for fleeting expletives uttered over the airwaves was struck down by the Second Circuit Court of Appeals and remanded for further consideration. He said that it was the court, not the FCC, that is "divorced from reality." One key player, Senate Commerce Committee Chairman Daniel Inouye (D-HI), suggested that a visit to a higher court was in order. Martin reacted strongly, saying, "I completely disagree with the Court's ruling and am disappointed for American families. I find it hard to believe that the New York court would tell American families that 's**t" and 'f**k' are fine to say on broadcast television during the hours when children are most likely to be in the audience. The court even says the Commission is 'divorced from reality.' It is the New York court, not the Commission, that is divorced from reality in concluding that the word 'f**k' does not invoke a sexual connotation." Inouye said, "It is disappointing that a divided Second Circuit panel chose to invalidate the FCC's efforts to combat the gratuitous use of offensive language on broadcast television. I hope and expect that the Commission will move swiftly in appealing this case to the Supreme Court."

TVBR observation: Martin and Inouye make it appear that the airwaves have just been converted in to conduits for raw verbal sewage. That simply is not the case. On-air slip-ups have traditionally been treated as: on-air slip-ups, not worthy of a major punitive action. If a broadcaster airs this kind of material with the intent to pander or titillate, then they still are fair game for the FCC. One of the problems, as we understand the ruling, is that the FCC went ahead and impulsively changed the rules without providing any opportunity for public input. Perhaps a Notice of Proposed Rulemaking will result in a new fleeting expletive rule that will survive court challenge. Or, maybe other indecency rules will be struck down due to the vagueness of the definition, the apparent randomness of enforcement, and now, the harshness of the possible penalty. Or maybe the FCC will move on to the Supreme Court. Stay tuned.

Museum gets a name facelift
Does the name Museum of Television and Radio seem a bit dated in today's multimedia world? The museum's board of directors yesterday renamed it The Paley Center for Media to honor founder William Paley, the late Chairman of CBS, and to reflect its "evolution to a center that convenes media leaders and enthusiasts for programs that explore and illuminate the immense and growing impact of all media on our lives, culture, and society," according to the announcement issued by Chairman Frank Bennack Jr. and President and CEO Pat Mitchell. The Paley Center for Media, with locations in both NYC and LA, says it will continue to collect, preserve, and make available to the public a top-quality collection of radio and television programs. But it will also "strengthen its work as a center where media executives, cultural thought leaders, and the public convene to discuss the challenges and opportunities of a rapidly evolving landscape of media technologies and businesses." Going forward, the board says Paley Center will offer more of these discussions to the public through their redesigned website and through content partnerships with Internet portals and broadband companies, including Yahoo! and Comcast, who will offer the content on their websites as well. Users will be able to access Paley Center events, such as cast discussions with stars from popular shows, including 24, CSI, The Daily Show, Desperate Housewives, Entourage, Family Guy, Grey's Anatomy, House, Law & Order, Lost, Sex and the City, South Park, and Weeds.

Watchdog tries to nip
violence rules in the bud
Jonathan Rintels, Executive Director of the Center for Creative Voices in Media, was pleased with the Second Circuit ruling on fleeting expletives, and thinks that it has an obvious lesson for those contemplating legislation which would attempt to place limitations on violent broadcast programming. He first applauded the court action, and noted that his organization was an intervening party. Rintels said, "These overly broad and arbitrary Commission decisions put creative, challenging, controversial, non-homogenized broadcast television programming at risk. In many cases, the very kinds of television programs that parents want their children to watch - high quality documentaries, histories, and dramas - were affected. Thus, the chilling effect of these now-overturned Commission decisions harmed not only media artists, but the American public." He didn't mention Sen. Jay Rockefeller (D-WV) by name, but Rockefeller was clearly in his thoughts when he urged Congress to steer clear of the FCC's recent request for authority to regulate violent program content. Rintels commented, "Last April, the FCC told Congress that it could give the Commission new powers to regulate so-called "violent" broadcast television content, however that might ultimately be defined. In light of today's clear Court of Appeals ruling that the FCC has abused its discretion to regulate television content, and acted "arbitrarily and capriciously," it would be extremely unwise - even irresponsible - for Congress to now grant these exponentially expanded new powers to the Commission."

Wall Street Media Business Report TM

Chandlers take all of their chips off the table
Three Chandler family representatives resigned from the Tribune Company board after the Chandler Trusts sold all of the Tribune stock that they could in phase one of the Zell/ESOP buyout (6/5/07 TVBR #109). But that still left the Chandler Trusts with nearly 20.4 million shares. According to an SEC filing yesterday by Tribune, those 20.4 million shares were registered for sale by Goldman Sachs on Monday - and it looks like the Chandlers have now cut all ties with Tribune. The LA Weekly website reports that Goldman Sachs late Monday sold that block for 31.50 per share, with the Chandlers passing up the extra three bucks per share they'd get by waiting for phase two of the buyout, which is dependent on FCC waiver grants.

Granite reorganization complete
Granite Broadcasting has consummated the reorganization plan filed with a federal bankruptcy court in New York, reducing its total debt by more than 300 million bucks. Silver Point Capital is now the majority shareholder of Granite. Granite CEO Don Cornwell says the company now has a much stronger balance sheet and is ready to grow its business. Under the plan, general unsecured creditors receive a full recovery on their pre-petition or agreed-upon claims. Holders of Granite's Secured Term Loans and 9.75% Senior Secured Notes due in 2010, representing an aggregate of more than 500 million in total secured claims, have converted their debt (on a pro-rata basis) into (i) a new 200 million senior secured term loan and (ii) shares of the company's new common equity, representing, in the aggregate, 97% of the new common equity of the company distributed pursuant to the plan. As for the remaining 3%, former holders of Granite's common stock get about 1%, but also rights to buy an additional 5% stake at a premium to the initial price of 25.90 for the new shares. Preferred shareholders get 2% and rights to buy an additional 10%. All of the pre-existing 12.75% Cumulative Exchangeable Preferred Stock and Class A and Class B Common Stock have been canceled.

TVBR observation: The new common equity will not be listed for public trading, but we expect to see it trade on the pink sheets. In fact, the old shares were still being traded on the pink sheets yesterday. At some point, that trading should switch from the old shares, trading at 12 or 13 cents each, to the new shares valued at 25.90 - but there won't be nearly as many of them to trade.

Executive Comment

US immigration law changes and
their effect on Hispanic media
By Julio Rumbaut

No matter what the final form of the changes in US immigration law currently being debated, these changes will have a profound effect on US Hispanic media vehicles as a result of a lifting of legal, social and economic barriers which will markedly expand the consumer base of US Hispanics. Therefore, rather than recounting specific details of the potential resulting legislation which are now being negotiated in the Congress, it may be best to analyze, first, the larger context of the rapid demographic expansion of this population, estimated at 44 million as of 2006; and then the major net effect of any of these bills on US Hispanic media. Hispanic population trends have been and continue to be clear. Hispanics accounted for half of total U.S. population growth between 2000 and 2006, although they comprise 14% of the total population (expected to expand to 20% of the population by 2030 and to 25% by 2050). Further, because of the youthfulness of the Hispanic population, combined with higher rates of fertility (even in the event of moderate or reduced rates of immigration), it will supply much of U.S. population growth in the decades to come, making Hispanics a real growth industry.
| Read More... |

Ad Business Report TM

TNS: U.S. ad spend decreased 0.3% in Q1
Total ad expenditures in the opening quarter of 2007 decreased by 0.3% to 34.93 billion as compared to the same period in 2006, according to data released by TNS Media Intelligence. "After a sluggish January, the pace of advertising expenditures picked up slightly at the end of the quarter," said Steven Fredericks, TNS CEO. "We also must recognize that 2007 first quarter results are adversely affected by comparisons against last year's Winter Olympics. However, after factoring out the incremental contribution of special events, it is apparent that core growth rates have slowed further from last year's lackluster levels." Only six of the 19 measured media registered year-over-year gains in the first quarter. Internet display advertising posted a 16.7% increase to 2.70 billion, as marketers continued to expand their online programs. Consumer magazines advanced 7.1% to 5.17 billion on the strength of higher rate card pricing and a modest uptick in page counts. Cable Network expenditures were up 6.3% to 3.82 billion, with niche interest channels pacing ahead. Broadcast TV comps were adversely affected by the absence of the Olympics. Network TV ad spending tumbled 7.2% to 6.05 billion while Spot TV expenditures slipped 4.1% to 3.74 billion. Newspaper and Radio media continued to significantly lag the overall market. Spend for Local Newspapers fell 4.6% to 5.39 billion on persistently weak demand from the auto, telecom and real estate categories. Radio spending declined 2.1% to 2.29 billion.
| Read More... | See Charts Here |

Comcast files suit against Qwest
Qwest, a telecommunications company that provides DSL internet and regional phone service recently claimed in TV, online, and newspaper ads that its Internet service is as fast or faster than Comcast. Those ads are now being challenged in court. Comcast claims Qwest is engaging in false ads with its claims based on a survey. The ads say 72% of Internet users said Qwest was as fast/faster than Comcast. The suit asks to block Qwest from making the claim and also seeks corrective ads and says Quest is causing "irreparable harm and damage to Comcast, as well as to consumers," according to an AP story. "Qwest, fully aware that Comcast's Internet services are substantially faster, has attempted to avoid this fact by relying on a fundamentally flawed and illegitimate survey of consumer `opinions' concerning a matter of fact," according to court documents. Comcast claimed its cable-modem service can be proved faster than Qwest's DSL-service. "The results of this blind side-by-side survey have touched a nerve," Qwest spokesman Bob Toevs told The AP. "While any legal questions will be answered in court, we will not back away from a key point: Qwest provides a better deal and overall performance, value and our industry leading customer service."

Media Business Report TM

It was another scattered news week
Apparently Iraq would have had to have been carrying a communicable disease to maintain its stranglehold on the newshole during the week of 5/27/07-6/1/07, according to the Project for Excellence in Journalism. The saga of the traveler with tuberculosis, riding various airplanes and a lot of cable coverage, was the only story to break into double digits on the overall media chart with 12%. The 2008 campaign also beat out any of the numerous Mideast categories. And even there, the usual Iraq front runner, the policy debate, took a back seat to events in the country and on the homefront. Add those three together and Iraq was back on top overall with 15% of the newshole, while Iran and Afghanistan stories took the Mideast to 20% (4% and 1%, respectively). The outbreak of violence in Lebanon, claiming 6% of media attention the week before, was the biggest story to drop off the chart completely. Other than a 2% focus on global warming, there were no major meteorological stories of note. Immigration was a fairly hot topic on radio, but was of mild or no interest elsewhere.
| Top ten lists here |

WABC-TV/Veriphone gets green light
for NYC taxicab content
As the first vendor green-lighted by the NYC Taxi & Limousine Commission to sell backseat touchscreen monitors to medallion owners, the partnership between WABC-TV and VeriFone Transportation Systems (4/4/07 TVBR #66) will begin offering cabs in all five boroughs the TAXI-TV package of ad-supported content from Eyewitness News, AccuWeather, ESPN and Zagat Survey. The system has been tested in a limited number of taxicabs for more than a year. It includes a frequently updated video loop of WABC-TV news and weather and ESPN sports, as well as www.7online.com content, and Zagat restaurant, nightlife, shopping and hotel info. By 8/1, all NYC taxicab medallion owners must sign up for an integrated payment and content delivery system which, at the most basic level, provides riders with GPS, maps, and fare information and transactions. WABC-TV will serve as the primary sales agent for advertising on the WABC-TV/VeriFone system. A variety of video and interactive advertising messages will be available.

Media Markets & Money TM

Close encounter in Honolulu
Emmis television station KGMB-TV Honolulu is now officially a former Emmis television station. The 40M deal sending the CBS affiliate and satellites in Hilo and Wailuku is complete. The buyer is HITV Operating Company, a corporation formed for the purpose acquiring the station and a subsidiary of MCG Capital Corporation. Emmis says that 15 out of 16 peddled stations have been sold now, bringing in a total of 1.18B. The last station still for sale is Fox WVUE-TV in New Orleans.

Washington Media Business Report TM

Howard debate features minority panel
The eight Democrats campaigning for President are booked for the 6/28/07 debate being broadcast from Howard University in Washington DC. What they're touting as unusual is the panel that will be asking the questions. It will be 100% comprised of journalists from minority segments of the population. The "All-American Presidential Forum" will be moderated by Tavis Smiley, with NPR's Michael Martin, syndicated columnist Ruben Navarette, and USA Today/Gannett News Service's DeWayne Wickham on hand to handle the grilling of the candidates. Republican candidates will get a similar opportunity at Morgan State University in Baltimore MD on 9/27/07.

TVBR observation: Participation in this minority-oriented debate, along with another scheduled for January 2008 on CNN, gives the Democratic candidates cover to skip the Congressional Black Caucus/Fox News Channel debate. Last we heard only Joe Biden and Dennis Kucinich were planning to attend that event, with just about everyone else including the three putative front runners opting out.

Wyoming Senate situation explained
Capitol Hill is mourning the passing of Sen. Craig Thomas (R-WY) from leukemia 6/4/07. But Senate Republicans will not have to mourn the loss of seat, a comforting thought given the razor-thin margin between the two parties at the moment, despite the fact that Wyoming's governor, David Freudenthal, will get to name an immediate successor. Under Wyoming law, the state's Republican Party organization will give Freudenthal a short list of three candidates from which to make his selection. This person will serve until a new Congress is seated in early 2009, unless able to extend the stay by winning an election to finish Thomas's full term. Thomas was re-elected in November 2006, so the term doesn't expire until 2013. The other state Senator, Mike Enzi (R-WY) is also up for election in 2008, giving voters there the highly unusual task of electing two senators at the same time. The Democratic majority is based on the recovery of Sen. Tim Johnson (D-SD), who has been absent since suffering a brain hemorrhage last December, and the presence in the Democratic caucus of two independents, Bernie Sanders (I-VT) and Joe Lieberman (I-CT). Johnson is said to be making good progress toward a return, but every so often, it seems we hear of Lieberman mentioning the possibility of moving across the aisle, although he promised to remain with the Democrats during the 2006 election.

TVBR observation: If the Republicans had to pick a state in which to defend two seats at once, you'd have to think that Wyoming would be high on the list, even with the Democratic governor. However, the Democrats made gains in other western states last time, and if 2008 atmospheric conditions remain troublesome for Republicans, the prospect of grabbing two seats at once may be too much to resist. We're not predicting that Wyoming will be upgraded to battleground status, but we wouldn't be surprised to see more national interest - and cash - in the state than usual.

Entertainment Media Business Report TM

WEA signs distribution deal with Scripps Networks
WEA Corp., Warner Music Group's U.S. sales and retail distribution company, and Scripps Networks, parent of HGTV and Food Network, announced a deal to market and distribute select DVD titles of its programs. The first titles available are from Food Network and include episodes of "30 Minute Meals" with Rachael Ray, "Paula's Home Cooking", "Boy Meets Grill" and "Quick Fix Meals". As part of the agreement, WEA will subsequently distribute DVD content from all of Scripps' other lines of lifestyle brands including HGTV, DIY Network, Fine Living and Great American Country. Said Doug Hurst, SVP/GM for Non-Linear Distribution, Scripps Networks: "As our company continues to grow and evolve, teaming with a strong distributor such as WEA allows us to have our leading lifestyle content and popular programs available on DVD in a variety of national retail outlets."

Ratings & Research

TiVo: 86% of Americans give
Father's Day the cold shoulder
A new survey commissioned by TiVo points to what many fathers have been saying for years: Dads do, in fact, get slighted on Father's Day. The study reports that 86% of Americans shell out more money on Mother's Day than they do on Father's Day. It's a finding bolstered by research that indicates only 51% of those surveyed plan on celebrating the 'holiday' at all. In an effort to help reluctant gift-givers zero in on what would really make Dads' day--and begin to reverse the troubling trend--the survey also explores what his favorite activity is. As it turns out, watching TV is the most popular pastime for pops, topping outdoor activities, home improvement and even reading.

Summertime, but the ratings continue
The 2006-2007 TV ratings season is over, but Nielsen is still keeping score. Fox won the week in the 18-49 demo and CBS in Households, but the numbers are summertime ho-hum. CBS had only a 5.2 HH rating and 9 share. Fox followed, then ABC, NBC, Univision, CW, MyNetworkTV, Telemundo, Ion and TeleFutura, and Azteca America. In 18-49, following Fox it was CBS, ABC, a tie by Univision and NBC, CW, Telemundo, MyNetworkTV, TeleFutura, Ion and Azteca America. Here are the top 20 shows.
| View the Chart |

Stock Talk

Ben speaks, stocks drop
Comments by Federal Reserve Chairman Ben Bernanke were taken as giving little hope of a rate cut anytime soon, so stock prices fell. The Dow Industrials were down 81 points, or 0.6%, to 13,595.

TV stocks were lower as well. Emmis fell 2.3%, despite announcing the closing of its Honolulu TV sale. Nexstar was down 2.1%.

Stocks

**Here's how stocks fared on** **Tuesday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Acme	ACME		5.53	-0.12	Lincoln Natl.	LNC		72.31	-0.69
Belo	BLC		22.25	-0.03	LIN TV	TVL		19.38	-0.28
CBS CI. B	CBS		33.53	-0.13	McGraw-Hill	MHP		71.65	-0.31
CBS CI. A	CBSa		33.53	-0.12	Media General	MEG		37.21	-0.46
Clear Channel	CCU		38.49	-0.07	Meredith	MDP		63.25	+0.19
Disney	DIS		35.27	-0.43	News Corp.	NWS		24.15	+0.05
Emmis	EMMS		10.00	-0.23	Nexstar	NXST		14.17	-0.31
Entravision	EVC		10.26	-0.12	Ion Media	ION		1.45	-0.01
Equity Media	EMDA		4.19	-0.01	Saga Commun.	SGA		9.65	-0.02
Fisher	FSCI		50.18	-0.13	SBS	SBSA		4.52	-0.24
Gannett	GCI		59.54	-0.25	Scripps	SSP		46.33	-0.50
Gen. Electric	GE		37.40	-0.41	Sinclair	SBGI		15.41	-0.14
Google	GOOG		518.84	+11.77	SWMX	SWMX		0.25	unch
Granite	GBTVK		0.14	-0.01	Time Warner	TWX		21.10	-0.13
Gray	GTN		10.26	-0.17	Tribune	TRB		31.85	-0.39
Gray, C1. A	GTNa		10.43	-0.17	Wash. Post	WPO		768.00	-6.52
Hearst-Argyle	HTV		26.82	+0.30	Young	YBTVA		3.84	-0.05
Journal Comm.	JRN		13.95	-0.03	-	-	-	-	-

Bounceback

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Below the Fold

Media Business Report
Another scattered news week
Apparently Iraq would have had to have been carrying a disease to...

Media Markets & Money
Close encounter in Honolulu
Emmis TV-KGMB-TV Honolulu is now officially a former Emmis TV...

Ad Business Report
TNS: U.S. ad spend decreased
0.3% in Q1 compared to the same period in 2006, Only 6 of the 19 registered year-over-year gains...

Entertainment Media
Business Report
WEA signs distribution deal
With Scripps Networks to market & distribute select DVD titles of its programs...

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TV Media Moves

Upped at News Corp.
News Corporation announced that Beryl Cook has been appointed to the newly created position of Chief Human Resources Officer for the company. She is currently Director for People and Organizational Development at News Corporation's part-owned BSkyB in the UK, and has recently led News Corporation's global talent management initiative. Cook's appointment at News Corporation will be effective August 27th.

Weinberg to NBC Uni
Teri Weinberg has been named as NBC Entertainment's new Executive Vice President. Weinberg previously served as Executive Vice President of Scripted Programming at Reveille, headed by Ben Silverman who is now Co-Chairman, NBC Eyntertainment and NBC Universal Television Studio.

Return engagement
Pappas Telecasting's KMPH-TV (Ch. 26, Fox) Fresno, CA announced the appointment of Darrell L. Jennings to the position of Local Marketing Manager, effective immediately. Jennings returns to KMPH, where he was a Marketing Specialist in 1996-97, after more recently working at the market's Univision and TeleFutura outlets.

More News Headlines

Nelson takes
the helm at HBO
Bill Nelson has been named Chairman and CEO of Home Box Office, taking the helm left vacant last month when Chris Albrecht was ousted after being arrested for assault (5/10/07 TVBR #92). Nelson, who had been COO, had been acting Chairman and CEO for the past few weeks. HBO also announced a new senior leadership structure, promoting three veteran HBO executives - Harold Akselrad, Eric Kessler and Richard Plepler - to the newly created positions of HBO Co-President, reporting to Nelson. Under the new structure, Akselrad will manage legal and business affairs, film acquisition and HBO's technology groups, as well as continue to serve as HBO's General Counsel; Kessler will oversee the marketing and worldwide distribution of HBO networks and content; and Plepler will have responsibility for HBO's programming and corporate communications. "Bill Nelson is a superb executive with outstanding leadership skills, expertise and experience. Jeff Bewkes and I are very pleased that Bill, along with his extraordinary management team, will be leading HBO into the future. Today's appointments highlight the depth and strength of HBO's senior leadership. Each of these executives has been instrumental in HBO's success over the past 15 years. We're confident that, under their guidance, HBO's edge will get even sharper, fresher and more pronounced," Time Warner Dick parsons said in announcing the new management lineup for HBO.

Look out QVC & HSN
There's a new kid coming to the block, and like the new kid on many of the nation's blocks, it's going to speak Spanish. Shop Latino TV is aiming to compete with cable shopping networks QVC and HSN, and is hoping that a launch on "the luckiest day of the century, 7/7/7," will fuel it to a big piece of what it calls a 7B home-shopping pie. The channel is a product of Mexican/Latin American company Grupo Innova and Home Shopping Hispano in the US. It plans to operate on the US mainland and on Puerto Rico. It will operate 24/7 out of studios in Miami with distribution hubs in Miami, Los Angeles and Puerto Rico.

Mobile media ads
to command 20%
of internet ad spend
by 2011
Advertisers will spend 1.4 billion on mobile media this year, rising to 14.4 billion by 2011, according to the new Strategy Analytics report, "Global Mobile Advertising Update: Outlook Bright as Inventory Expands." Strategy Analytics predicts that mobile media advertising will account for a fifth of global spend on Internet advertising by 2011. Phil Taylor, Director, Global Wireless Practice, notes, "The outlook for mobile advertising spend has significantly advanced in the past 12 months. The supply of advertising inventory is rapidly increasing as mobile publishers look to develop advertising as a revenue stream. Major mobile network operators like SprintNextel, Verizon Wireless and Vodafone have all accelerated plans to sell advertising within their mobile media channels and advertisers appear to be responding positively."

Univision.com launches free video portal
Univision.com has made its online video collection more accessible with the launch of its video portal. "Hispanic Internet users continue to demand more from their online experience. Univision.com is constantly creating new ways for our audience to access and share our content. Our ongoing commitment to innovation is why our relationship with users remains strong," said Javier Saralegui, President, Univision Online. The portal allows users to browse by genre or show, while suggested picks and automated playlists are dynamically created users' selections. Favorite video links can be sent to friends or posted on Univision.com's message boards.

DG FastChannel completes Pathfire buy
DG FastChannel has completed its previously announced acquisition of privately-held Pathfire for 30 million. Pathfire distributes third-party long-form content, primarily news and syndicated programming, through a proprietary server-based network via satellite and Internet channels. Pathfire is the primary distribution method for the majority of syndicated programming, including shows such as "Jeopardy," "Friends," and "Wheel of Fortune." In addition, ABC and CNN rely on the Pathfire network to distribute thousands of news stories to hundreds of television affiliates throughout the United States. Pathfire technology is installed in approximately 1,400 U.S. TV stations. Pathfire's digital media platform supports a suite of applications tailored to the needs of news, syndication, video news feeds and broadcasters. Pathfire software applications reside on over 10,000 desktops in virtually every U.S. television station.

TVBR Radar 2007

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

FCC fleeting expletive
fines shot down
The US Court of Appeals for the Second Circuit in New York has branded the FCC's claim that it can fine broadcast licensees for "fleeting expletives" with the dreaded "arbitrary and capricious" label, giving a victory to Fox Television Stations in particular and to broadcasters and the First Amendment in general. The FCC's finding against Fox is vacated and the rule is remanded to the Commission for a do-over.

TVBR observation: We're surprised that there was any dissent on this case. The FCC can change the rules if it wants, after going through the usual comment and petition procedures, giving all interested parties a chance to weigh in, and giving those affected by the ruling an adequate explanation of the change. We expected this ruling after watching court arguments last December. So fleeting expletives join the ever-growing list of FCC actions sent back for further consideration. Now we'll watch to see if, how and when the FCC revisits the fleeting expletive issue. (Note: Extensive details in this issue of RBR)
06/05/07 TVBR #109

The iPhone cometh
If you were watching television at all over the weekend, you no doubt saw an add from Apple and AT&T Wireless announcing that the Apple iPhone will make its debut on June 29th.

TVBR observation: We are reminded of what Bob Pittman said in his speech at NAB2007 in Las Vegas in April - that consumer acceptance of a new technology or device isn't about being the best, but rather about being the most convenient. If the iPhone is able to deliver on its promise of being an easy, painless way to deal with email, texting, music downloads and mobile video, it may well be embraced by the public. The average consumer doesn't want to have to break open a manual to figure out how to use their latest wireless device.
06/05/07 TVBR #109

Niche players rise, others fall
A couple of Wall Street analysts who have been looking at Arbitron's Winter book agree that niche radio - ethnic/religious - is the place to be. "Over the past eight ratings books, only niche radio operators (Radio One, Entravision, SBS and Univision) have managed to grow their audience share. Recommend that investors Sell general market operators Citadel, Cox Radio, and Entercom.

RBR observation: Being big with little vision and only bottom line focused has caught up to some of the so called Big and traditional companies. Today's biz environment Niche Programming and building a strong Loyalty factor with creditability is important. Building an established Unique Brand takes time, marketing, and involvement. Not Voice Tracking. What will happen? Broadcasters that have the 'Front Line Battlefield' experience will win. (more what WallStreet says on this topic in RBR)
06/05/07 RBR #109

Hard finding that key person
to fill the important position at your organization? Media HeadHunters is the place that key media firms use to get results. See Media HeadHunters and get results with service--Period.

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