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Volume 24, Issue 112, Jim Carnegie, Editor & Publisher
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Friday Morning June 8th, 2007
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TV News ®
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Lincoln Financial Media taking bids
Confirming speculation over the past couple of months (4/27/07 TVBR #83), Lincoln Financial Group announced late yesterday that it has engaged Merrill Lynch & Co. to advise it on options for its broadcast group, Lincoln Financial Media, including possible divestitures. "Lincoln Financial Media is a well run business unit and widely respected within the broadcast industry. As we begin our evaluation of strategic options for this business we look forward to determining a favorable course of action to benefit our key stakeholders," said Jon A. Boscia, Chairman and CEO of Lincoln Financial Group. Lincoln, a Philadelphia-based insurance company, acquired the radio and TV operations with its 2005 acquisition of Jefferson-Pilot Corporation for 7.5 billion.
| View the List |
TVBR observation: We gave you the shopping list on May 1st, but it is worth another look. These are primo properties in strong markets, pretty much without exception. These radio and TV properties should bring 1.5 billion and then some.
Label-free analog TVs not fine with the FCC
The FCC is not sitting around and waiting to enforce its new rules requiring that all analog-only television receivers still on store shelves come with a prominently-displayed warning label. The new requirement became official on 5/25/07. On 6/4/07 FCC Enforcement Bureau officials went out into the field and caught six retailers with their labels down. The guilty parties are all well-known: Kmart, CompUSA, RadioShack, Best Buy, Circuit City and Target. Each was slapped with an official citation and warned that if they're caught again, the consequences will most likely hit them in the wallet. Fines for violation of the labeling requirement amount to a maximum of 11K per instance, with a 97.5K ceiling on a fine for a single continuing violation. The retailers were invited to respond to the citation via personal interview at an FCC field office convenient to corporate headquarters or via written statement. The FCC also released a pair of consumer advisories, entitled "Buying the Right TV: What Every Consumer Should Know" and "Closed Captioning for Digital Television."
TVBR observation: This will no doubt please John Dingell (D-MI) and Ed Markey (D-MA), who are pushing for a comprehensive FCC strategy on getting consumers up to speed by next week. However, we can't remember ever coming across an FCC consumer advisory in our off-hours capacity as telecommunications civilian. We find it unlikely that any more than a handful of private citizens will stumble across these documents, and the handful that do are likely not the ones who need to be brought up to speed. Will the mainstream press shine a little light on this? At least one outlet, the New York Times, ran a story on the topic published 6/7/07, despite the fact that it no longer has a direct self-interest, having sold off all of its television properties. Will your station run something?
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Hedge funds pressuring Tribune
Amid all of the activity at Tribune Company as management tries to win FCC waiver approvals and complete a complicated restructuring, while simultaneously trying to turn around slumping ad sales for its newspaper and TV properties, the company now also has to deal with some hedge funds trying to cash in on the tumult. They have served Tribune with default notices on hundreds of millions in bonds due in 2029, claiming the company has to pay up now because of its sales of some TV stations and plans to sell the Chicago Cubs. If the funds were to succeed, Tribune would be forced to immediately pay off the 1.26 billion face value, although the securities have been trading for less than half that. According to an SEC filing by Tribune, a letter from two hedge funds who claimed to own about 37% of the exchangeable subordinated debentures in question said they were issuing a "notice of default," based on purported violations by the company of the "maintenance of properties" clause of the issue. A second letter a few weeks later extended the claim to a third hedge fund, with the three claiming to own 55% of the securities. Tribune says the claims are without merit, noting that another section of the terms for the issue clearly states that the covenant does not prevent the company from discontinuing the use of any properties or disposing of them if management determines there is a business reason to do so.
TVBR observation: This is a standard game for certain hedge funds. They buy up large amounts of a bond issue with a far-out maturity date that is trading at a deep discount to its face value. Then they have their lawyers concoct an interpretation of the issuance terms which, if upheld in court, would amount to a technical default, even though the company is current on any and all payments due. The ploy doesn't work often. But it must succeed once in a while, since the hedge funds keep playing the game.
Home improvements
may be a problem for Stevens
Ranking Member of the Senate Commerce Committee Ted Stevens (R-AK), pictured, has some extracurricular problems back in his home state. Details of a corruption scandal have been coming out involving an Alaska-based energy company and some state politicians. One of those implicated was Stevens' son Ben, who was president of the Alaska State Senate. Now word is coming out that there may be a problem with some work done on Ted Stevens' house back in 2002. The energy company is Veco Corporation, and some of its key execs have pleaded guilty to bribery in connection with members of the state legislature. In Stevens case, Veco allegedly oversaw improvements to Stevens' private home in Alaska, bringing in local contractors to actually do the work. Investigators want to know why a company with a rap sheet, that is not in any way connected to the home improvement business was handling such a transaction for Stevens. One of the contractors spoke to the local media about the situation awhile back, but now nobody is talking, other than Stevens' brief confirmation that he has been instructed by the FBI to preserve certain documents.
TVBR observation: It hasn't been a very good couple of years for some of the Republicans on Commerce. Conrad Burns (R-MT) and George Allen (R-VA) both lost very close elections last November. Burns was brought down, in part, by ties to Jack Abramoff, and Allen had his legendary YouTube moment which, if nothing else, taught politicians to be on their guard and on their best behavior 24/7. Will Stevens be next? Stay tuned.
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Legal Eagle-eye view of indecency decision
Peter Gutmann of Womble Carlyle Sandridge Rice PLLC is back with an opinion of the very welcome ruling from the Second Circuit on the broadcast of fleeting expletives. The FCC was hit with yet another charge of being "arbitrary and capricious," and broadcasters - for now - can breathe a bit easier when using a live mic.
| Read Mr. Gutmann's take (pdf) |
Group urges no vote to ban on new drug ads
A bill advancing through the House of Representatives would put a three year ban on advertisements for new drugs, and an association of associations (along with two networks) wants it defeated on constitutional grounds. The group, banding together as the Advertising Coalition, pleaded its case with Energy and Commerce Committee Chairman John Dingell (D-MI) in a recent letter. The AC says Supreme Court precedent holds that "restrictions on speech, even if they advance a government interest, must be the last and not the first choice of regulators." It recommends that instead of the outright three-year ban, the FDA be given regulatory tools modeled on those used by the FTC for dealing with false advertising. At this point, all FDA can do with a false claim finding is withdraw the product completely from the marketplace, a nuclear option which for that very reason is not often used. "A far more effective method would be to determine in an administrative proceeding if the advertising is false and give FDA the power to impose civil monetary penalties for violations." AC points out that the advertising often has benefits, educating consumers about symptoms and prompting check-ups that otherwise might not occur. CBS and NBC were signatories, along with NAB, NCTA and other advertising and publishing organizations.
A win for the peanut gallery
Fans of "Jericho" literally sent tons of peanuts to CBS executives and convinced them that they were "nuts" to cancel the series. Seven new episodes have been ordered and CBS Entertainment President Nina Tassler has asked fans to "Please stop sending us nuts." Even with the successful appeal, the show's long-term future remains in doubt. In her note posted on the show's Internet message board, Tassler warns that while a "loyal and passionate community has clearly formed around the show," the audience is going to have to grow to keep it viable. That was a not too subtle hint to the fans to spread the word if they want to keep their favorite show on the air. Since shooting takes time, Jericho won't be back with new episodes until 2008 as a mid-season addition to the CBS schedule. In the meantime, Tassler told fans that existing episodes will be rebroadcast this summer and streamed online. Also, the first season DVD will be coming out in September. CBS, by the way, is donating its surplus peanuts to charity, including one that sends packages of goods from home to troops overseas.
| Read Tassler's posting |
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Ad Business Report TM
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Wendy's launches 25-market tour
Passion for the perfect hamburger. That's what Wendy's will be celebrating this summer with a major 25-city, North American taste tour, a create-a-burger contest and a host of companion interactive activities designed for consumers who seek the ultimate hamburger experience. The six-month tour kicks off this week with stops in Charlotte and Greensboro, NC. Wendy's will invite consumers to create the next great hamburger - a dream burger that just might appear on Wendy's menu one day soon. Through 8/15, consumers can visit www.ThisIsMyBurger.com to create their own custom hamburger in the "Build Wendy's New Burger" contest. In addition, computer kiosks will be provided at the tour stops, where people can enter the contest. Participants can choose from 54 ingredients - including sauerkraut, pineapple and pepperoni; 13 kinds of cheese; and 20 condiments, including four types of mayonnaise, as well as the classic lettuce, tomatoes, pickles and onion. Ten finalists will be selected from 8/24 to 9/24. Consumers will vote for the winner, who will receive 25,000 and potentially have his or her burger added to Wendy's menu. Nine runners-up will receive hamburgers for a year. The winner of the "Build Wendy's New Burger" contest will be announced in November.
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| Media Business Report TM |
News Corp. cuts print jobs in UK
It's hard to find a major newspaper anywhere that isn't reducing staff these days, but News Corporation seems to have chosen an inopportune time to trim the editorial staff at its four national newspapers in the UK. The cuts to save an estimated 30 million pounds (59 million US bucks) annually comes as News Corporation CEO Rupert Murdoch is trying to sweet talk the Bancroft family into selling him Dow Jones & Co., including the Wall Street Journal, for five billion bucks. The main WSJ union is already battling fiercely against any sale to Murdoch and the job cuts in the UK will likely add to staff fears of a sale to News Corporation. According to the rival Guardian newspaper, the newsroom cuts at the four papers owned by News International, a News Corporation subsidiary, total 100 people from some 1,400 currently employed.
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| Washington Media Business Report TM |
Different strokes for Canadian folks
A pair of advertising campaigns run by Canadian province Ontario between 2003 and 2005 alerted citizens to the five warning signs of a stroke. The ROI was measurable in one sense, and priceless in another. In the first case, according to a Reuters report, there was a marked increase in ER visits to get symptoms checked out. This is critical, since the first three hours can be make or break when the most common type of stroke occurs. What cannot be calculated, other than to use the priceless descriptor, is the number of lives saved and the amount of medical expenses which are saved. The campaign was not repeated in 2006, however, and the unsurprising result was that the number of strokes that went unrecognized and untreated during the critical window went back up. The obvious conclusion is that such an advertising campaign needs to be continuous. A health official in Ontario did mention two numbers which bear consideration. 1.8M was spent on the campaign per year, against over 800M spent treating strokes.
TVBR observation: You never see Coke or McDonald's or any other global brand taking an extended holiday from advertising themselves, so there's no reason to expect it to be any different for this kind of message. So maybe we should encourage the government to take advantage of the media to promote the general welfare. The trick is to determine what kind of information has a real measurable public benefit and what kind doesn't need to be tied to a continual media drumbeat.
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| Entertainment Media Business Report TM |
Gone, but not forgotten
Had she lived, Diana Princess of Wales would be turning 46 on July 1st. A worldwide charity fundraiser is planned for the day, with her sons honoring her memory at a star-studded concert at London's Wembley Stadium. Here in the US, VH1 will join Princes William and Harry in commemorating the life of their mother with the "Concert for Diana," broadcast live at 11:00 am ET/8:00 am PT. The event will be carried across a variety of VH1 platforms. The 6-hour concert will be broadcast live in its entirety on VH1, be streamed live on VH1.com and be simulcast on MHD: Music High-Definition, MTV Network's high-definition music channel. The concert will also air on VH1 Classic starting one hour after the live concert ends. In addition to the live online stream, the concert will be available for on-demand viewing at VH1.com following the event. Elton John, Duran Duran, Bryan Ferry, Lily Allen, Kanye West, Rod Stewart, Natasha Bedingfield, The Feeling, James Morrison, Orson and Status Quo, The English National Ballet, Joss Stone and Andrew Lloyd Webber are among the artists who have been personally invited by Prince William and Prince Harry to perform at the concert. Nelly Furtado, P. Diddy, Tom Jones, Take That, Will Young and the legendary voice of Supertramp Roger Hodgson have just been added to the growing line-up. VH1's Aamer Haleem will bring the day's performers to viewers from behind the scenes along with a special guest host. "Though we both (Harry and I) wanted to put our stamp on this concert, we also wanted it to represent exactly what our mother would have wanted. We want to have a big concert full of energy, full of the sort of fun and happiness she enjoyed. And on her birthday as well, it's got to be the best birthday present she ever had," said Prince William. Proceeds from this international music and entertainment event will go to a number of charities that were supported by The Princess during her life, and two of the Prince's own charities - Centerpoint and Sentebale. Diana's charities, which will benefit from the concert, are part of The Diana Memorial Fund, which was set up in her memory and five charities of which she was patron at the time of her death -- The Royal Marsden Hospital, The National Aids Trust, Great Ormond Street Hospital, The Leprosy Mission, and The English National Ballet.
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| Internet Media Business Report TM |
DirecTV to air
pro video gaming live
DirecTV announced that the Championship Gaming Series (CGS) will now air live when it begins its exclusive run on DirecTV's original entertainment channel, The 101. The broadcast, which was originally slated to be videotaped and aired at a later date, will be the first-ever gaming event to present all the action as it happens, allowing fans at home to experience professional gaming match-ups as they would any other sport. The coverage will commence with the start of the CGS league on 7/9 with two, 2-hour shows of new programming each week on The 101, leading up to the National Championships. Following the U.S. National Championship, the CGS will turn its focus to other parts of the world with events in London, Dubai, Shanghai, Sydney, and Singapore. The World Championship will be distributed to over 100 million homes with broadcasts on BSkyB, Star, and DirecTV. The inaugural season of the CGS begins next week with the national combine events June 9-11 at the Fox Studios in LA, followed by the league draft on 6/12 at the Playboy mansion.
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| Ratings & Research |
Study: advertisers need to
selectively use product placement
Marketers and advertisers who are looking for product placement to become a substitute for traditional advertising need to be selective in how they use placements since not all product placements are equal, according to a just-released analysis of BIGresearch's Simultaneous Media Survey (SIMM 9). Over 15,000 consumers participated in the latest bi-annual survey. Product placement is growing as an option for marketers to reach advertising-weary consumers. In the survey, the top category that consumers said product placement influenced their purchases was electronics, with 12.6% saying so. Grocery and apparel followed to round out the top three. When compared to other media's influences to purchase electronics, such as TV (32.3%), Newspaper Inserts (32%), Radio (19.6%) or Internet (22.7%), product placement is a viable option, but not a replacement for traditional media. However, African American, Hispanic and Asian consumers were much more likely to be influenced to buy electronics, grocery and apparel from product placements. "Advertisers recognize that consumers are in control of today's market and many are attempting to get their brand message out in non-traditional ways," said Gary Drenik, BIGresearch CEO. "However, today's consumer knows when they are being manipulated and product placements must be carefully planned with this in mind or else risk being ignored by consumers."
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| Stock Talk |
Stocks take a hit
Surging bond yields sent stock prices lower on Thursday as investors continued to worry about the possibility of rate hikes. The Dow Industrials fell 199 points, or 1.5%, to end at 13,267.
Almost all TV stocks were lower. Sinclair took the worst hit, falling 4.2%. ACME was off 3.3%. Gray Television (common) was down 2.6%.
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| Stocks |
Here's how stocks fared on Wednesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Acme
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ACME
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5.28
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-0.18
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Lincoln Natl.
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LNC
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70.74
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-0.81
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Belo
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BLC
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21.86
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-0.25
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LIN TV
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TVL
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18.98
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-0.07
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| CBS CI. B |
CBS |
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32.59
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-0.42
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McGraw-Hill
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MHP
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69.91
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-1.34
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| CBS CI. A |
CBSa |
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32.65
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-0.38
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Media General
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MEG
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35.65
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-0.40
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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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62.59
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-0.32
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Disney
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DIS
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34.26
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-0.65
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News Corp.
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NWS
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23.78
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-0.22
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Emmis
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EMMS
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9.81
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-0.18
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Nexstar
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NXST
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13.88
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-0.14
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Entravision
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EVC
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10.41
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+0.12
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Ion Media
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ION
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1.44
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-0.01
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| Equity Media |
EMDA |
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4.20 |
+0.05 |
Saga Commun.
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SGA
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9.84
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+0.14
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Fisher
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FSCI
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50.49
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-0.09
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SBS
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SBSA
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4.50
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-0.03
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Gannett
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GCI
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57.75
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-0.86
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Scripps
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SSP
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45.73
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-0.21
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Gen. Electric
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GE
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36.76
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-0.53
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Sinclair
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SBGI
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14.81
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-0.65
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| Google |
GOOG |
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515.06
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-3.19
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SWMX
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SWMX
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0.24
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-0.02
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Gray
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GTN
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9.92
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-0.26
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Time Warner
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TWX
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20.45
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-0.32
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Gray, C1. A
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GTNa
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10.30
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-0.15
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Tribune
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TRB
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31.67
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-0.14
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Hearst-Argyle
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HTV
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25.89
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-0.17
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Wash. Post
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WPO
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768.70
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-0.06
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Journal Comm.
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JRN
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13.51
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-0.28
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Young
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YBTVA
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3.61
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-0.09
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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
Wendy's launches 25-market tour
Passion for the perfect hamburger major 25-city, North American taste tour...
Entertainment Media
Business Report
Gone, but not forgotten
Had she lived, Diana Princess of Wales would be turning 46 A worldwide charity fundraiser is planned VH1 will join...
Internet Media Business Report
DirecTV to air
Pro video gaming live...
Ratings & Research
Study: product placement
Marketers & advertisers need to be selective in how they use placements...
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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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Back to Memphis
Local TV LLC's WREG-TV (Ch. 3, CBS) Memphis has named Jim Himes General Sales Manager as he returns to the market. Himes spent recent years with Raycom, at WMC-TV (Ch. 5, NBC) Memphis and most recently at WTVM-TV (Ch. 9, ABC) Columbus, GA.
Online appointments
at CBS
Joe Ferreira has been named Senior Vice President and General Manager, and Heather Moosnick has been named Vice President, Business Development, for the CBS Audience Network. Ferreira, who most recently served as Vice President of Programming, Executive Producer, CBS Sportsline.com, will coordinate among various CBS properties to oversee programming and syndication decisions for the newly-created and recently-launched CBS Audience Network. Ferreira will also manage the relationships with the 24 online partners that have signed up with the Audience Network within the two months since its inception. Together, these partners distribute CBS content to nearly 90% of the Web through the Company's open, non-exclusive content syndication strategy.
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More News Headlines
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NHL signs with Sling Media for vid clips
The NHL has partnered with Sling Media for its upcoming video clip-sharing service. Sling is the maker of the Slingbox, which lets users relay TV shows from TVs or DVRs to any Internet-connected computer, and some smart phones. Sling's "Clip+Sling" service, set to launch this summer, lets users grab clips from live or recorded TV shows and post them on Sling's Internet site for others to view. Under the NHL deal, Slingbox owners would be able to record their favorite hockey moments and post the clips on Sling's website. The clips will be searchable by each NHL club, NHL plans to offer its own long- and short-form programming. CBS signed on earlier this year with Sling's clip-sharing service.
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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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Radio vying with TV for
bigger piece of political pie
If your company is fortunate enough to own and operate both radio and television, you may be in the enviable position of talking politicians into using both. If you're only in TV, radio is going to be going after some of your business. Here's what radio political gurus are thinking. Question: If you're running for office, should you use radio advertising to preach to the choir or should you try to convert nonbelievers to your cause? The answer is yes.
06/07/07 TVBR #111
Figenshu back to Radio
Figenshu, known as 'Fig,' resigned his COO position at Softwave Media Exchange (SWMX), 6/06/07 RBR/TVBR First Bulletin, and will return to the day to day operations of his first passion, Radio. Fig is not saying yet what this radio venture is, but it will be broadcast radio after June 29th, his final day at SWMX.
RBR observation: The old saying 'You can take the guy Out of Radio' but 'You Cannot take the Radio Out of the Guy' applies more to Fig than your average radio guy, he is not average. If you are guessing where Fig will be after his 30 day rest is back with Dan Mason and CBS Radio - Nope. This dog has more teeth than just going back to chew on an old bone. One thing is for sure, Fig has a stronger working knowledge of today's technology business environment than many in radio today.
06/07/07 RBR #111
"US braces for flood
of celebrity F-words"
That was the headline yesterday from across the pond. The Times of London headline suggested that American celebrities will be looking for open mikes so they can get the same publicity that Cher, Bono and Nicole Richie got for their live TV comments. The story from their US correspondent didn't really live up to the catty headline, providing a nuts and bolts account of how a federal appeals court rejected the FCC's changing of its indecency policy as "arbitrary and capricious" and then FCC Chairman Kevin Martin's expletive-laden response.
TVBR observation: We think the idea that network TV in the US is now going to be replete with celebrities tossing around F-bombs every time there's an open mic is ludicrous.
06/07/07 TVBR #111
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.
06/05/07 RBR #109
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SmartMedia Magazine
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In our June issue...

TRN's Mark Masters: "Talk Radio, the real revenue generator"
OneonOne with Meredith's
Paul Karpowicz
Valerie Geller:
Citizen Journalism
Selling towers and leasing them back
Click here to read!
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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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