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Volume 24, Issue 136, Jim Carnegie, Editor & Publisher
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Friday Morning July 13th, 2007
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TV News ®
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Frustration sets in for Murdoch
 Dow Jones & Co. stock fell yesterday after AP reported that Rupert Murdoch was frustrated with Bancroft family negotiators changing their minds during negotiations over a sale of the company. Dow Jones representatives met earlier this week with potential bidders Ron Burkle and Brad Greenspan, but there's no indication they are ready to match the offer of 60 bucks a share from Murdoch's News Corporation. Murdoch recently came to terms with Dow Jones management and directors on safeguards to protect the editorial integrity of the Wall Street Journal and Dow Jones Newswires in the event of a merger, but even that is still awaiting a final sign-off by the Bancroft family, which has controlled Dow Jones & Co. for 100 years. And there is still no agreement on financial terms, although it seems unlikely that Murdoch will be forced to up his five billion bucks bid in the absence of any competing offer.
TVBR observation: Some members of the Bancroft family have been pressing for all possible options other than a sale to News Corporation to be explored, as has the union representing some Dow Jones employees. So far the only names that have surfaced publicly as being interested are Burkle, a supermarket billionaire, and Greenspan, an Internet multi-millionaire. That they met together with Dow Jones representatives on Tuesday indicates that they are interested in working together. Even so, there's no indication that they plan a full buyout to match the Murdoch offer - but, rather, a partial buyout at 60 bucks a share and a financial restructuring. That is not likely to satisfy Dow Jones shareholders who want to sell all of their shares at the premium price of 60 bucks.
 Keep the Fairness Doctrine chilled,
not speech
The House of Representatives has put attempts to reinstate the Fairness Doctrine on ice for at least a year, and the Senate is about to try and do the same thing. A quarter, Norm Coleman (R-MN), Jim DeMint (R-SC), John Thune (R-SD) and James Inhofe (R-OK), with support of over a dozen others, are going to try to attach similar language to a defense appropriation bill, which may have problems on the way to passage completely unrelated to Fairness. Nevertheless, NAB President/CEO David Rehr has asked all members of the Senate to help beat back what he sees as an assault on the freedom of speech. In a letter sent to each member, he said, "I write to you today urging you to oppose any attempt to resurrect this long-discarded regulation. Free speech must be just that - free from government influence, interference and censorship." Although the high-minded aim of the Doctrine is to promote a diversity of viewpoints on the airwaves, Rehr argued that in effect it does just the opposite. "Newsgatherers, media outlets and reporters will be less willing to present ideas that might be controversial. In fact, FCC officials found that the doctrine 'had the net effect of reducing, rather than enhancing, the discussion of controversial issues of public importance,' and therefore was in violation of constitutional principles."
TVBR observation: We don't have much to add to what Rehr said. We'll simply note that Gannett's USA Today put this issue in front of conservative Cal Thomas and liberal Bob Beckel, and while they spent several column inches bashing each other in general, they were in complete agreement that no matter how you define the problem, if you even acknowledge there is a problem, the Fairness Doctrine is not the answer for either side. Although the hue and cry to reinstate FD is coming from the left at the moment, Beckel quite correctly noted the attempt by conservatives to invoke it in a call for family programming to counter what they saw as "promiscuous or off-color shows such as 'Laugh-In' and 'All in the Family.'" And that's the bottom line: You may want to have the FD as a security blanket now, but you'll hate it when the worm has turned and your opponents start to clamor for it. As Thomas put it, "Well, we agree that the answer to speech you may not like is not less speech, but more speech." Amen.
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 Are ads sneaking into the news?
There is no question that the increasing use of ad-skipping technology has brought with it increased reliance on product placement on both scripted and reality entertainment programming. Now a group of professors at the University of Oregon are saying that the practice is becoming part of local news programming. One of them, Jim Upshaw, was formerly a news staffer at the NBC O&O in Washington DC. Upshaw is concerned that the practice is putting an undisclosed slant on the news. "Stations are not telling their viewers that what they are putting on the air in news or feature stories or in other news content is being done to court a specific advertiser. I think people need to learn to be media literate, informed viewers of television. We may not be able to stop these practices but we need to be aware that these practices do exist." Upshaw and colleagues monitored 17 network-affiliated stations over a period of time in 2004, watching a total of 294 newscasts. 90% had at least one story which appeared to push a certain product or service, and the overall average was 2.5 such items per newscast at an average of 1 minute 42 seconds per segment. The practice appears to be more prevalent in smaller markets. "News is the big income generator for television stations," Upshaw said. "Something like 40 percent of a station's advertising sales revenue comes from ads running during newscasts or news-related presentations. Big markets do this too but often in other ways and different time slots."
TVBR observation: We assume that the study is not counting the incidental appearance of a business in a news segment, such as an automobile accident which happens to take place in front of a certain fast food restaurant. (That would be news, wouldn't it? "Seven injured as burger joint stages publicity stunt wreck.") We would note that 294 newscasts on 17 stations is a rather small data sample, so before anybody gets up in arms about this, a little peer review would seem to be in order. However, this is exactly the sort of issue that is in FCC Commissioner Jonathan Adelstein's (D) wheelhouse. He's already on the warpath regarding undisclosed product placements, along with the related topics of VNRs, pay-for-say, and undisclosed relationships between product reviewers/experts and the product's manufacturers. Suffice it to say we expect to hear more about this.
 Dan Patrick takes a Factory job
Well, when ESPN's Dan Patrick decided he was moving on from ESPN, rumor had it that the destination was Sporting News Radio, where his brother works (7/10/07 TVBR #133). Not true. Patrick has teamed with longtime broadcasting industry entrepreneur Jimmy de Castro, whose "The Content Factory" will feature Patrick. Founded by de Castro, The Content Factory aims to revolutionize and customize how broadcasting content will be distributed for both traditional and the multitude of new media channels that exist today. Patrick is leaving his current position at ESPN on 8/18. "Dan isn't leaving radio - he's leading radio to its next logical path, much the way the web, mobile devices and 24/7 wireless connectivity has done for video," said de Castro in a statement. "He will continue his innovative industry leadership by taking his brand, the 'big show,' to broader audiences in the innovative ways they receive their information - via radio, television, internet, podcasts, infopods, mobil devices and beyond." Along with other broadcast industry innovators, The Content Factory will assemble and develop an "All Star" line-up of personalities to deliver, through state-of-the-art technologies and media channels, the most consumer relevant and enjoyable content available. In making the announcement de Castro and Patrick indicated that additional news and updates will be released soon. deCastro was on a plane and unavailable for comment yesterday.
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| Wall Street Media Business Report TM |
 Moody's gives
Sinclair an upgrade
Moody's Investors Service upgraded Sinclair Broadcast Group's 4.875% Convertible Subordinated Notes to B1 from B2 and its subsidiary, Sinclair Television Group's (STG) 8.0% Senior Subordinated Notes to Ba3 from B1. Additionally, Moody's upgraded Sinclair's speculative grade liquidity assessment to SGL-1 from SGL-2. At the same time, Moody's affirmed all other ratings for Sinclair and STG. "The ratings upgrade of Sinclair and STG's notes is based on Moody's Loss Given Default methodology and results solely from Sinclair's partial redemption of STG's 8% notes with proceeds from Sinclair's new 3% Convertible Senior Notes (not rated by Moody's), drawdown under STG's bank revolving credit facility and cash on hand," the ratings agency noted.
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Ad Business Report TM
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TV Guide Network promos "America's Next Producer"
TV Guide Network's headlining summer series "America's Next Producer" will be supported with the biggest marketing campaign and digital video distribution in the network's history. TV Guide Network's national marketing initiatives will generate a quarter of a billion impressions and will include a multi-million dollar media campaign across cable and satellite television, print, outdoor and online. Additionally, the company will launch an unprecedented level of digital content and online video extras to support the show, which premieres 7/18 at 8:00 p.m. ET/PT with a repeat airing at 9:00 p.m. ET/PT. Along with MSO carriage, distribution partners include AOL Video, YouTube, Google Video, Veoh and Brightcove. TV Guide Online will also support with a comprehensive micro-site (tvguide.com/anp), which includes video featurettes of all 10 contestants and online blogs with the series host Ananda Lewis and series judge Matt Roush, senior critic for TV Guide. The show is a 10-episode reality competition series will give a group of television producers the chance to prove they have what it takes to create the next generation of TV hits. Contestants will be judged on their ability to create and execute compelling TV concepts in a variety of genres from scripted to reality. Contestants will compete each week to survive elimination rounds and the winner will receive the ultimate TV producer prize package: 100,000 cash, a production office in Hollywood, and a first-look deal with TV Guide Network.
Miller Brewing names
Lopez Negrete Hispanic AOR
 Miller Brewing Company announced Houston-based Lopez Negrete won its Hispanic agency of record designation for the Miller Lite brand following a competitive pitch. "We chose Lopez Negrete because they are passionate about their work and have a proven track record in delivering creative integrated campaigns that work with Hispanic consumers," said David Dixon, Senior Director, Hispanic Marketing at Miller. "We are confident that this new partnership will help Miller Lite continue to develop messages that resonate with the Hispanic community."
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| Media Business Report TM |
New crew at BCFM/BCCA
Broadcast Cable Financial Management Association (BCFM) and its Broadcast Cable Credit Association (BCCA) subsidiary announced newly elected officers for 2007-2008: Chairman, Tony Vasconcellos, Executive Vice President & CFO, Regent Communications; Vice Chair and 2008 Conference Co-Chair, Bill Fitzsimmons, Vice President, Accounting & Financial Planning, Cox Communications; Secretary, Sam Bush, Senior Vice President, Treasurer & CFO, Saga Communications; and Treasurer, Jim Clayton, Executive Vice President & CFO, Scripps Networks. Seven people are joining the board of directors for three year terms: Michael Denson, Director, Credit & Collections, Petry Media Corporation; Kate Lucas, Corporate Controller, Regent Communications; Carrie Miller, Senior Vice President & CFO, Gannett Broadcasting; Curtis Reinhart, Partner, Ernst & Young; Dean Rohrbaugh, Director, Tax Information Systems, The Washington Post Company; and Robin Szabo, President, Szabo Associates. In addition, Bob Rollins, Corporate Manager of Credit & Collections for Raycom Media, has been appointed to represent the BCCA Committee on the BCFM Board for a one-year term.
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| Washington Media Business Report TM |
 FEC going to court
against citizen campaigner
Stephen Adams has run afoul of the Federal Election Commission. In the two months prior to the 2004 presidential election, he apparently took it upon himself to acquire some 435 billboards to promote the election of George W. Bush, putting 1M into the effort which targeted voters in Michigan, Pennsylvania, Wisconsin and South Carolina. However, Adams allegedly failed to include disclaimers that were up to specification, they "did not contain the required sponsor information or state that the billboards were not authorized by any candidate or party." Neither did he report the expenditure to the FEC - that report needed to be at the FEC within 48 hours of the first ad's appearance, and Adams allegedly missed that deadline by over six weeks.
TVBR observation: This is a word to the wise if you're thinking about mounting an independent and individualized advertising campaign on behalf of your favorite candidate without the candidate's knowledge. The good news, from our perspective, is that the FEC is going after Adams, not the companies which sold him the billboards (they are not even hinted at in the FEC release), which to us means that the FEC is continuing its admirable practice of keeping the media out of the business of enforcing electoral advertising law and regulation.
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| Ratings & Research |
Buzz is good for NBC
"The Singing Bee" is another summer ratings success for NBC, debuting with 13.3 million viewers. Combined with the strength of lead-in "America's Got Talent," the double dose of reality TV on NBC, plus a "Law & Order: SVU" rerun, gave it a tie for Tuesday night's 18-49 crown with the Major League Baseball All-Star Game on Fox. In adults 18-49, "The Singing Bee" delivered the highest rating for any new summer series premiere on any network in nearly five years, said NBC, going back to the July 22, 2002 debut of NBC's "Meet My Folks." It also marks the highest 18-49 rating for any unscripted series debut on NBC, in or out of the regular season, since the January 8, 2004 premiere of "The Apprentice."
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| Stock Talk |
Records fall
Major market indices surged to record highs on Thursday as retailing giant Wal-Mart reported better than expected sales. The Dow Industrials rose 284 points, or 2.1%, to an all-time high of 13,862. The S&P 500 also had a record close.
Most TV stocks joined in the advance. Journal rose 3.9% and Entravision was up 3.3% as the top performers.
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| Stocks |
Here's how stocks fared on Thursday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Acme
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ACME
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4.41
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-0.01
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Lincoln Natl.
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LNC
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70.25
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+0.07
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Belo
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BLC
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21.04
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+0.36
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LIN TV
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TVL
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19.35
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+0.19
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| CBS CI. B |
CBS |
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34.56
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+0.48
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McGraw-Hill
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MHP
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62.10
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-0.41
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| CBS CI. A |
CBSa |
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34.55
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+0.40
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Media General
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MEG
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34.43
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+0.67
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Clear Channel
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CCU
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37.90
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+0.17
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Meredith
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MDP
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61.95
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+0.62
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Disney
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DIS
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34.25
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+0.27
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News Corp.
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NWS
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23.85
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+0.49
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Emmis
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EMMS
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8.79
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+0.10
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Nexstar
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NXST
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13.81
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-0.10
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Entravision
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EVC
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11.02
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+0.35
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Ion Media
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ION
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1.41
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unch
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| Equity Media |
EMDA |
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4.28 |
+0.07 |
Saga Commun.
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SGA
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8.85
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+0.10
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Fisher
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FSCI
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50.49
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+0.53
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SBS
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SBSA
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4.20
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+0.03
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Gannett
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GCI
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55.14
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+0.74
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Scripps
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SSP
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46.61
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+0.75
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Gen. Electric
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GE
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39.00
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+0.80
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Sinclair
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SBGI
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14.80
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+0.28
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| Google |
GOOG |
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545.33
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+0.86
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SWMX
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SWMX
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0.22
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-0.05
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Gray
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GTN
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9.33
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+0.17
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Time Warner
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TWX
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20.74
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+0.04
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Gray, C1. A
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GTNa
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9.15
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+0.10
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Tribune
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TRB
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29.98
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+0.08
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Hearst-Argyle
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HTV
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23.67
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+0.05
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Wash. Post
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WPO
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786.85
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+7.10
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Journal Comm.
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JRN
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13.53
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+0.51
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Young
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YBTVA
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3.37
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+0.06
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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
TV Guide Network
Promos "America's Next Producer" will be supported with the biggest marketing campaign in their history...
Washington Media Business Report
FEC going to court
Against citizen campaigner as Stephen Adams has run afoul of the Federal Election Commission...
Ratings & Research
Buzz is good for NBC
The Singing Bee is another summer ratings success...
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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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 Wilson to Portland
Belo Corp. announced that Deborah "DJ" Wilson has been named President and General Manager of KGW-TV (Ch. 8, NBC) Portland, OR. Since June 2005, Wilson has served as President/GM of Belo's duopoly in Spokane, WA, KREM-TV (Ch. 2, CBS) and KSKN-TV (Ch. 22, CW). She succeeds R. Paul Fry, who was promoted to the position of Belo's Vice President/Investor Relations and Corporate Communications earlier this year (5/29/07 TVBR #104).
NAB gets governmental
The National Association of Broadcasters is making a few changes on its government advocacy team. Doug Wiley is shifting from EVP/Government Relations to EVP/Administration and Agencies, shifting his focus to executive branch agencies such as the FCC, DHS, NTIA, the Department of Commerce and any other relevant entities. SVP Government Relations Laurie Knight moves to EVP in place of Wiley. Additionally, Meredith Long has been promoted to Director of Congressional and Membership Outreach and Robin Oxford has signed on as Director of State Association and Membership Outreach.
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More News Headlines
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Post Co. faces
NLRB complaint
The National Labor Relations Board has accused the Washington Post Company of failing to negotiate in good faith with the union at its flagship newspaper over new work that union members were required to do for Washington Post Radio, WTWP-AM & FM, its joint venture with Bonneville International. The complaint also involves other workers selling ads for the satirical publication "The Onion," which the Post prints and distributes in the DC area. An administrative law judge is due to hear the case in September if there is no settlement.
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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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WSJ goes after FCC Chairman
We never thought we'd be dealing with the twin phrases "critical Wall Street Journal editorial" and "FCC Chairman Kevin Martin." Although as a rank-and-file Commissioner, Martin sometimes filled the role of maverick due to his occasional disagreements with fellow free-marketer Michael Powell, more often than not their philosophies and votes were in alignment. But WSJ is on Martin's case for aligning with who it sees as the wrong former FCC Chairman: Democrat Reed Hundt.
TVBR observation: In a lot of ways, TVBR is a fish out of water when it comes to this topic - our readers are leaving this spectrum behind, after all. But like many companies in this day and age, we rely on the internet to put food on our tables. While we don't mind standing shoulder-to-shoulder with our competition, we certainly don't want to be forced in line behind anyone. High tech pioneer Mark Cuban appeared before Markey's committee earlier this year and said, "Bandwidth cures all," meaning that such concerns will be relatively meaningless as long as the online infrastructure expands to meet ever-expanding demands. If that's true, then network neutrality is going to be irrelevant. But if it's true, why should providers mind, then, if the principle of network neutrality is codified just to give us users a little peace of mind, if it's going to be irrelevant anyway?
07/12/07 TVBR #135
Is CCU fudging
on payola agreement?
In the consent decrees between the FCC and four broadcast companies active in the state of New York - Clear Channel, CBS Radio, Entercom and Citadel - agreed to "rules of engagement" under which they pledged to find air time for independent musicians. Sen. Russ Feingold (D-WI) says Clear Channel "may already be violating" this tenet.
RBR observation: It's good that the practice which kicked off the entire dubious payola escapade, the use of independent promoters to encourage airplay for various tunes, is not in question here. What does seem to be in question is an alleged practice of providing one type of airplay consideration for established acts and another type for not-so-established acts. While the not-so-established musicians may well benefit from additional airplay, it nevertheless appears that is Clear Channel is implementing a discriminatory policy. And anything that smacks of discrimination is almost guaranteed to cause a ruckus on Capitol Hill. But to us this looks like a fringe issue, not a rehashing of the core payola controversy. Read Feingold's letter here
07/12/07 RBR #135
What's next for SWMX?
The parent of SoftWave Media Exchange had to go to a hedge fund for a loan, but didn't raise new equity by the July 1st deadline. Now SWMX is paying a higher rate, had to pay a forbearance fee and gave the lender a security right in its patents and trademarks - and still has to raise 10 million in new equity by the end of the month. Is that just emblematic of the problems faced by a start-up company, or does it run deeper?
TVBR observation: Wall Street reaction to the latest filing with the SEC was erratic. BlueCrest may have a vested interest now in keeping SWMX afloat, given that the patents and trademarks may not be worth much if the company stops operating. SWMX has had some success with its online platform for selling radio ad time, but its cable TV project is far behind schedule. SWMX CEO Josh Wexler has to deal with financial issues that are facing him right now - especially that August 1st deadline to find 10 million in new equity investment. SWMX still has a market cap of around 60 million, but even with a stock price that won't cover a cup of coffee it is proving difficult to find someone to write that check.
07/12/07 TVBR #135
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National Sales Manager
Univision 23- Dallas seeks experienced dynamic NSM to help us lead our stations to the next level. Extensive travel required. 5 yrs experience in TV sales with successful track record. 4-yr degree req., preferably in marketing/ advertising, business, media. Must have excellent interpersonal, listening, and presentation skills. Bilingual ( English/ Spanish) preferred.
See TV Careers.
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