Volume 21, Issue 114, Jim Carnegie, Editor & Publisher
Friday Morning June 11th, 2004

TV News ®

Univision sues to block LA LPMs
You had to see this coming. As one of four broadcasters who tried unsuccessfully to get Nielsen to further delay its Local People Meter (LPM) roll-out in New York, Univision has now gone to court in California to try to block the LPM roll-out in Los Angeles, which is scheduled for July 8th. Univision claims that Nielsen's sample undercounts key Hispanic demos and that the Spanish TV giant will be harmed if the ratings company distributes data which shows Univision's audience to be smaller than it really is. | More... |

TV up 8.8% in May at Scripps
E.W. Scripps Company reports that revenues for its TV group were up 8.8% in May to $29.7 million. The company said that included $1.9 million in political advertising, compared to only $300,000 a year ago. Excluding political, local was up 1.9% to $17.3 million, national rose 4.6% to $9.4 million and "other" rose 7.4% to $1.1 million. The hottest unit at Scripps was again its cable networks, where revenues shot up 41% to $69.5 million. Ad revenues at Scripps Networks rose 40% and affiliate fees gained 50%. Newspaper revenues were up 7.1% to $62.1 million, but May included one more Sunday than a year earlier. Local gained 4.5%, national 6.4% and classified 8.7%.

Political air war driving rates
An article in the St. Louis Business Journal notes that broadcast advertising rates are rising fast, for all categories, thanks to the early intensity of the political matchup. Missouri is a battleground state, and the pressure being put on inventory is kicking in ancient supply/demand scenarios which are resulting in increased rates for everybody. "The prices are now rising not only for politicians but for everything - - soft drink advertisers and car dealers - - because of the demand," professor Haim Mano of the University of Missouri-St. Louis told the Journal. "This is pure economics here - - supply and demand." It's not just the presidential campaign, either. The article mentions a 58% increase in CPP being reported by candidates for governor and the US House of Representatives. But clearly the presidential campaigns are primary causes of the rise. One local sales manager noted that with the state's battleground status has come attention not only from the candidates themselves but also from a slew of 527 organizations. One said it started in February and seems likely to run clear through to November.


King of horror sounds off
on King of All Media
Stephen King was interviewed by Infinity/Viacom's WZGC-FM Atlanta recently, and sounded off on the FCC's indecency crackdown. The horrormeister's comments of 6/8/04 included the following: "I think it's nonsense. What I think about it is a word that I don't want to use on the radio or I'll get you guys in trouble. It makes me angry and its silly and what happened to Howard Stern is silly." He continued, "I don't listen to him - - I think he's silly - - but at the same time I think he ought to have the right to be silly on the radio. This is America. It's a free country and we're supposed to have the right of free speech. "The way that works in America, or the way it's supposed to work in America, if he's saying stuff on the radio that you don't like, if it offends you, you got a hand, you reach out, take hold of the knob, turn it off. He's gone - - good bye. You don't need a politician in your living room to say you got to put a band-aid over that guy's mouth." Kings's Zone Corp. owns a pair of radio stations in the Bangor ME market.

Broadcast, print news consumption trending downward
Local TV news leads all categories when it comes to regularly used news sources, according to the latest study by the Pew Research Center for the People and the Press. However, it has been eroding over the past decade. 77% of Americans used it regularly in 1993, a figure which has dwindled to 59% in 2004. Newspaper, second with 42%, has also dropped - - it stood at 58% as recently as 1994. Radio is in third place as a regular source at 40%. It too has declined since 1994, but not as severely as newspaper - - it stood at 49% back then. Online has been the one of the big gainers - - it is now a regular source for 29% of the population, and cable news has been making major strides as more and more services take to the wires. Here are the current rankings: (1) Local TV news (59%); (2) Newspaper (42%); (3) Radio (40%); (4) Cable TV news (38%); (5) Nightly network news (34%); (6) Online news (29%); (7) Network TV news magazines (22%); (7) Network morning news (22%); (9) Call-in radio shows (17%); (10) NPR (16%); (11) News magazines (13%); (12) Business magazines (4%); (13) Literary magazines (2%); (13) Political magazines (2%).

Roy Disney sues for Eisner pay disclosure
Dissident ex-director Roy Disney has gone to court in an effort to win public disclosure of board of director documents about how Disney CEO Michael Eisner's level of compensation was determined. Roy Disney and fellow ex-director Stan Gold have already been allowed to look at the documents in question, but they are bound by a confidentiality agreement not to disclose their contents. The two dissidents have now asked a Delaware judge to void that confidentiality and allow public disclosure. Roy Disney and Gold have charged that the board of directors didn't' exercise sufficient oversight of how much Eisner was paid. For its part, Disney notes that the two former directors voted to keep such documents out of the public view when they were on the company's board.


TVBR News Analysis

The war is over at the NAB
Back at the NAB convention in Las Vegas, it looked like a battle royale was shaping up for next week's NAB Radio, TV and Joint Board meetings. But in the two months that have intervened, NAB Joint Board Chairman Phil Lombardo, President of the Citadel Communications TV group, has been mending fences and it now looks like he will be easily re-elected next Tuesday. Eddie Fritts is getting a two-year renewal as NAB President and CEO, with the search now beginning for a successor as he heads into retirement. | More... |


Measuring the Media Moguls

Time Warner: Richard Parsons, Chairman & CEO

2003 stock performance: +37.33%
2003 CEO pay: +673.95%

2003 was a turnaround year for Time Warner, as it shed AOL from the beginning of its name and tried to move on from the disastrous merger that had produced it. For presiding over that transformation, Chairman & CEO Richard Parsons received a bonus of $8 million, after getting none in 2002. He also got a 50% salary increase, to $1.5M from $1M, and his perks were up about $10k to $275,965. In all, his pay rose 673.95% to $9,783,965 from $1,264,163 the previous year. | More... |


Adbiz ©

BBDO taps David Lubars as Chairman, CCO
Omnicom has hired David Lubars, from Publicis' Fallon Worldwide, as chairman and chief creative officer of its BBDO North America. At the same time, BBDO announced that Ted Sann is leaving the agency. These are first big moves for BBDO under Andrew Robertson, who became CEO BBDO Worldwide on 6/1. BBDO is Omnicom's largest agency and serves such clients as Pepsi, FedEx, NYSE and Office Depot. Lubars, 45, had been President of Fallon Worldwide and Executive Creative Director of Fallon North America. He was head of BBDO West before joining Fallon in '98. Sann's career at BBDO stretched 34 years, with the last 11 with direct responsibility for the creative work at BBDO NY.

JWT scores with Jenny Craig
J. Walter Thompson has won creative on Jenny Craig Weight Loss Centers' $45M account after a review that reportedly included Gotham, Heil-Brice Retail Advertising and Bartle Bogle Hegarty. Incumbent Johnson + Ukropina Irvine, CA did not participate in the review.


Media, Markets & Money tm

Clear Channel spins Chico radio to TV owners
Clear Channel will be able to settle its FCC indecency count almost three times over when it converts its Chico CA cluster into a $5.1M payday later this year. And it was probably one of the easier deals for broker Elliot Evers of Media Venture Partners - - he had to look no further than his own mirror to find a buyer. The stations are KPAY-AM/KMXI-FM Chico, KEWE-AM/KHHZ-FM Oroville, and KHSL-FM Paradise CA. As best we could determine, it appears that under the contour method of market determination, there is no single point which could be called a superduopoly (where all three FMs overlap). The buyer is Deer Creek Broadcasting LLC, a consortium headed by Elliot Evers, Greg D. Widroe and John McSorley, with additional backing from Duff Ackerman & Goodrich II L.P. DA&G has an interest in television stations in Montgomery AL, Cheyenne WY and Scottsbluff NE.

Banks bail out EuroDisney...again
Things may be looking up for the Disney empire in the US, but not so in France. The Paris banks have agreed to refinance EuroDisney's $2.9 billion debt to keep the theme park outside Paris from going into default. As part of the deal, though, the US-based Walt Disney Company, which owns about 39% of the European venture, is having to kick in another $100 million. EuroDisney had faced a similar financial crisis in 1994, when it was rescued by an investment from a Saudi prince.


June Solutions Digital Magazine
Complimentary Report

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Washington Beat

FCC preps video competition report
The FCC is soliciting information and comment on the state of competition in the video delivery arena. As required by Congress, the FCC's annual report takes into account all forms of delivery, the big three of which are broadcast, cable and DBS. The primary issue, as outlined in the comments of Commissioner Michael Copps, is the rapid rise of cable rates since the 1996 Telecom Act was passed. "Cable rates have soared by more than 50% since passage of the 1996 Act," said Copps, "with substantially higher increases for customers in some areas." Copps said that a similar call for outside input last year yielded disappointing results. "So I'm asking here for more and better input from outside the Commission and then an intensified effort from within." In addition to broadcast, cable and DBS, the FCC is looking for input from any form of delivery system for video material.


Programming

CNBC tosses Nazi wrestler
Professional wrestler John Layfield, who uses the name "Bradshaw," apparently played his role of a bigot and neo-Nazi too well. In addition to his WWE wrestling, Layfield is also an author on personal finance and had recently become a regular contributor on CNBC. No more. After getting complaints related to his use of Nazi salute in the wrestling ring, CNBC gave Layfield the heave-ho.

Boosler to host Balderdash
Comedian Elayne Boosler has been signed to host the TV version of the board game Balderdash. The game show, which will air Monday through Thursday weekly, is scheduled to premier later this summer on Pax. The show is produced by The Hatchery LLC.

Barbie to perform for the title of
"American Idol" and "Global Idol"
As the toy world overlaps with reality television, the Barbie doll, already a global phenomenon, has decided to go for the ultimate pop idol title, as she auditions for "American Idol" and "Global Idol" next spring. Fans who will vote online at www.barbie.com. Mattel has partnered with "Idol" creators, FremantleMedia and 19 Entertainment for the promotion. Barbie doll and friends will offer girls a new way to play out their favorite "American Idol" fantasies, including three new friends that she meets at the open call auditions and innovative products to enrich their story lines, such as a stage set and unique music feature that offers friendship-themed songs.


TV Ratings

Miss Universe captivates TiVo users
Who knew? We wondered what would capture the interest of TiVo users once American Idol had finished for another year. It turns out that owners of the digital video recorders are big beauty pageant fans. The Miss Universe Pageant on NBC was the top program in the latest week of TiVo ratings. | List |


Transactions

$43.25M WGBA-TV from Aries Telecommunications Corp. (Mary A. Dean) to Journal Broadcast Corp. (Douglas G. Kiel et al). N/A. Includes LMA of WACY-TV Appleton, owned by Ace TV Inc. [File date 5/6/04.]


Stock Talk

Stocks slightly higher before 3-day break
Stock prices were mostly higher on Thursday, despite a government report of higher unemployment claims, as traders prepared for and unscheduled three-day weekend. US stock markets are closed today for the funeral of former President Ronald Reagan. The Dow Industrials gained 42 points Thursday, or 0.4%, to close at 10,410.

TV stocks were mixed. Ever volatile Granite was the day's big loser, falling 10.7% to an even one dollar. ACME was off 3.5%. The day's best performers were Liberty Corporation, up 2.1%, Sinclair, up 1.7%, and Viacom Class B, up 1.5%.


TV Stocks

Here's how stocks fared on Thursday

Company Symbol Close Change Company Symbol Close Change

Acme

ACME

$6.94

-$0.25

McGraw-Hill

MHP

$77.19

-$0.78

Belo

BLC

$28.83

+$0.04

Media General

MEG

$70.53

+$0.25

Clear Channel

CCU

$37.83

-$0.19

Meredith

MDP

$55.41

-$0.11

Disney

DIS

$24.72

+$0.14

News Corp.

NWS

$36.01

+$0.26

Emmis

EMMS

$21.34

+$0.11

Nexstar

NXST

$10.75

-$0.19

Entravision

EVC

$8.39

-$0.05

NY Times

NYT

$46.65

-$0.35

Fisher

FSCI

$49.47

-$0.02

Paxson

PAX

$3.05

+$0.02

Fox

FOX

$27.25

+$0.25

Saga Commun.

SGA

$18.66

+$0.18

Gannett

GCI

$87.55

+$0.46

Scripps

SSP

$108.13

-$0.03

Gen. Electric

GE

$31.49

+$0.31

Sinclair

SBGI

$10.96

+$0.18

Granite

GBTVK

$1.00

-$0.12

Time Warner

TWX

$17.50

+$0.11

Gray

GTN

$14.10

+$0.03

Tribune

TRB

$46.90

-$0.02

Gray, C1. A

GTNa

$12.76

-$0.05

Univision

UVN

$33.17

+$0.18

Hearst-Argyle

HTV

$25.78

+$0.12

Viacom, Cl. A

VIA

$38.27

+$0.35

Jeff-Pilot

JP

$50.78

+$0.06

Viacom, Cl. B

VIAb

$37.97

+$0.55

Journal Comm.

JRN

$18.25

-$0.29

Wash. Post

WPO

$955.50

+$1.60

Liberty Corp

LC

$47.37

+$0.98

Young

YBTVA

$14.17

+$0.12

LIN TV

TVL

$22.04

+$0.02

- - - -

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TVBR Radar 2004
Click on these issues for TV News you won't read any where else. TVBR--First, Accurate, and Independently Owned.

Network comp slowly slips away
It's been a fact of life in television for the past several years, but hardly anyone talks about it - - at least not in public. TV networks have been insisting on drastic cuts in network compensation payments to affiliates and eventual complete elimination of comp in affiliation contract renewals. Editor's note: TV affiliates got to learn to live without it. Got to see the chart to prove it. 06/10/04 TVBR #113

Indecency: Clear Channel
settles with FCC
Is set to make a $1.75M payment to the US Treasury in order to lay to rest its indecency fine vulnerability with the FCC. That would be in addition to $755K paid earlier to settle indecency tab run up by Bubba the Love Sponge, bringing total payment to over $2.5M. TVBR observation: Clear Channel once again is playing it safe. But we're waiting for the other Stern shoe to drop, and when it does, it's expected to land squarely on Infinity, now owned by Viacom. Even with Karmazin out of the picture, FCC vs. Viacom promises to be a much more spectacular fireworks show than this one, fiery though it is in its own right. 06/10/04 TVBR #113

Measuring the Media Moguls - Sinclair Broadcast Group: David Smith, Chairman, President & CEO
David Smith is paid a $1 million salary, but doesn't take a bonus. Since his perks declined slightly last year to $5,462 (from $7,063), his total pay was down 0.16%.
06/10/04 TVBR #113

Cross-platform the wave
of the future?
Consolidation was the name of the game, being a pure-play radio company made you a Wall Street darling. In fact, Emmis got hammered by investors for expanding into television. The future is cross-platform, words of wisdom of Radio One, CFO Scott Royster. Editor's note: Royster is right if you do it correctly! ? 06/09/04 TVBR #112

NBC pulls in 2.9B in the upfront
All but concluded its upfront sales efforts, pulling in a reported $2.9B for the new season, at 7% CPM increases. The big draws were "The Apprentice" and Friends spinoff "Joey." CBS is expected to be the only network to increase its share of the ad market, with its take expected to rise 9% to $2.4B. CBS, still asking for 10% CPM increases, is holding firm with the buying community with 60% inventory sold and dangling the CSI carrot. Editor's note: Who will blink first? 06/09/04 TVBR #112

Radio companies warn
Wall Street about Q2
No one is yet lowering their official guidance for the quarter, but radio companies are telling Wall Street investors that Q2 revenues aren't proving to be as robust as had been anticipated. Entercom CEO David Field: It's not as robust as we would perhaps like to see it. Radio One, CFO Scott Royster: Q2 isn't proving to be as strong as hoped in radio. Emmis CEO Jeff Smulyan: that radio has been "challenging" this quarter. Editor's note: Embrace technology, invest in local and be local.
06/09/04 RBR #112

Measuring the Media Moguls -
E.W. Scripps Company: Kenneth W. Lowe, President & CEO
His salary was $925k (up from $875k), his bonus $804,232 (down from $951k) and his perks were $30,145 (down from $30,418) for a 2003 total of $1,759,377, down 5.23% from $1,856,418 in '02. 06/09/04 TVBR #112

Broadcast TV upfront
looking like $9.15B
About 75% complete, with Fox, NBC and WB the closest to conclusion and CBS, ABC and UPN still holding firm to CPM rate increases. The final tally is looking to be down from last year's $9.3+B to about $9.15B. Editor's note: And we don't like to say RBR told ya so. Our media worlds are changing very fast.w More in the August RBR Solutions Magazine - for marketing space reservations contact JBarnes@rbr.com .

$1 billion Spanish upfront predicted
This year's upfront will see Spanish television break the $1 billion mark, with the biggest share going to Univision's networks. Now that primetime is nearly wrapped up for the English networks, the buyers are quickly turning their attention to other dayparts and to Spanish television. "It's earlier every year - - we are now part of the mainstream culture, Spanish language TV is vs. English language, in the upfront process, and that's a good thing. 06/08/04 TVBR #111

Decency bill stalled
This isn't news to regular readers of this space, but the New York Times has now taken note that the wind is out of the sails of the Broadcast Decency Act of 2004, a bill which for a time looked like the only sure winner on the 2004 legislative agenda. For one thing, issues like Abu Ghraib have shoved it out of the limelight. Editor's note: As TVBR has noted, it probably won't matter this year. If anything happens at all, look for an attempt to attach a rider with limited scope to another bill. 06/08/04 TVBR #111

FCC still on indecency attack
Even if Congress isn't likely to pass a tougher indecency law, LIN Television CEO Gary Chapman agrees with us that the indecency issue is far from dead. Even without congressional action, the FCC is "hot on the trail" of indecency complaints. Editor's note: June RBR Solutions Magazine takes on the indecency issue with radio's top Talk personalities. 06/08/04 TVBR #111

Digital systems vie for TV support
Which system will give cable and satellite a run for their money? The Broadcasters' Initiative which is signing up TV group or USDTV is already up and running in three markets. Editor's note: Other than their stage of development, some broadcasters have told us that there's little difference between the two, but the competing companies insist that's not true. Anyone remember the problem with AM Stereo?
06/07/04 TVBR #110

Measuring the Media Moguls - Paxson Communications: Bud Paxson, Chairman & CEO
Didn't get a bonus in 2002, nor did other top executives of the company. So his take home pay jumped last year with a bonus of $409,283. Combined with his salary of $181,565 and perks of $24,477, Paxson's cash pay was $1,252,325, up 61.04% from $777,663 in 2002. 06/07/04 TVBR #110

McCain, Leahy bill forwards LPFM
John McCain (R-AZ) Patrick Leahy (D-VT) are introducing a bill to expedite the implementation of low power FM stations.
RBR observation: Will the LPFM rules the FCC has proposed cause interference? The simple truth is that no one knows. The Commission didn't do the study that the US Congress mandated - - instead trying to get by on the cheap.
06/07/04 RBR #110

Tribune goes public against LPM
No secret in the industry that Tribune Company, with its WB affiliate in New York, was not happy with the preliminary ratings data being generated by Nielsen's Local People Meters (LPM) in New York. Meanwhile, the TV committee of the Media Rating Council met to consider a request from Nielsen to sanction News Corporation for its financial and logistical support of efforts by a coalition of minority groups, called Don't Count Us Out, which has been attacking LPMs in newspaper, radio and TV ads. Nielsen claims that News Corporation is participating in ratings distortion. Editor's note: Say it again, Arbitronand Nielsen do a lunch. 06/04/04 TVBR #109


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