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TV News ®
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Who gets the FCC FINE?
Well, the ‘F’ word slipped out plus others choice phrases from the mouth of DNC Don Misher. After 11:00PM EDT last night when all was happy except the balloons didn’t fall as planned. Misher caught on-air by CNN saying: We need balloons… I want all balloons, ‘God---‘ and no balloons. Then the slip of that great ‘F’ word just over a few crummy balloons.
TVBR observation: Who does FCC fine? The balloon maker, the balloon blower upper, the balloon cord puller, Misher, the DNC, John Kerry since those balloons were for him, or CNN? Na on CNN that is cable. Ah, what the ‘F’, nobody cares. It was a slip of the, ahhh, tongue.
LIN TV Corp proud as a peacock
Top brass all smiles and attacking radio on their conference call yesterday morning, 7/29/04. Chairman/President/CEO Gary Chapman very glad to be with NBC-TV Network and its strong programming lineup. This is especially true of upcoming Olympic coverage from Athens, which is being sold gangbusters at the local level. Moving from ABC to NBC, 7/28/04 RBR Daily Epaper #146, means better programming, which means more money. Key word spoken was local - - more local news content, more local on-air talent, and more local sales staff on the street. Chapman is also homing in on the Internet, with more sales people selling Internet alone.
The Internet driver will be taking business from the local Yellow Pages advertising. Chapman explains the allure of taking that flat yellow print ad and putting it on video - - local television stations can replace that heavy yellow phone directory. They have all the advantages of video content, and can carry all of the data found in the print ad as well. The local dentist, retail store, or lawyer gets more focus with video and that is what will drive Internet sales. And that is why they have a sales dedicated just for Internet.
Chapman had a few words about radio and in short "radio has matured and its one pony trick is over." IN other words, radio is consolidated.
A big focus is on its new partnership with MTV in San Juan, Puerto Rico, where street - or mall-front studios have been built and they are attacking the radio revenues on that island. This partnership is not picking up MTV programming but using MTV to brand original programming and local on-air talent. The plan is to go after the territory's younger demo radio dollars, estimated at $200M.
TVBR observation: The NBC move buys LIN time from a network content issue but does not cure the cough. What's clear is that Chapman is not waiting for someone to fix an overall television problem - - he knows local in all areas is vital to growth, as is embracing new technology the consumer is using to keep step with lifestyle and spending habits. All in all, the "L" in LIN seems to go hand in hand with the "L" in local.
Looking ahead at Radio One
One of the first questions radio honchos are getting during the current round of dog and pony shows is what they think of the Clear Channel (CC) spot load reduction initiative. Like everyone else, Radio One applauded the move, saying it would probably put pressure on inventory and drive up rates, if CC can pull it off. "That's something we're all looking forward to, because right now pricing is a little iffy," said Mary Catherine Sneed. Like most groups we've heard, Radio One said it was never really part of the problem in the first place. Sneed noted that the sudden absence of pacing reports has been a non-event. "We haven't even talked about it so obviously we aren't missing it," she said.
On the TV One front, Al Liggins noted that the company has managed to get the 4M subscriber level. It's shooting for 9M-10M by year's end, and is hoping to accelerate that growth rate by cutting a deal with one of the big DBS services. They are looking at a ballpark figure of 26M subs as a break-even point, although they think a favorable rate-per-sub ratio may hasten their arrival at the black inkwell.
For the near future (and recent past), execs said July business has been soft, August is good (the group is at 75% of goal) and September looks good. They are hoping for a big back-to-school push, as well as the change to partake at this year's richly-endowed political smorgasbord.
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Looking ahead at Beasley Broadcast
Execs had a lot of good news to report to investors, riding into town on the back of a strong Q2 performance, and with solid ratings and revenue gains projected into the near future.
The company has not been shy about spending money to make money. Chairman/CEO George Beasley explained, "...these expenditures made sense from a competitive and opportunistic standpoint, and we believe they will ultimately enhance the value of our station portfolio." One future expense which will be gone over with a fine-tooth comb is rights fees for play-by-play programming. Contracts for some such material may be allowed to expire if the numbers do not add up.
Beasley seems to be one of the few companies not reporting a soft July - - it says it was up 7%, and that improvement in August and September looks softer. The September guidance, however, is company-specific, based on an NTR event in 9/03 which is not scheduled for a repeat this year. In general, Beasley is not convinced that the overall US economy is stable yet, and until that happens, it doesn't seem disposed to get too excited about its own prospects.
Ditto - Ditto, Beasley applauds the Clear Channel spot reduction diet, and claims it was never a part of the problem in the first place.
Radio look see
Local gains lead to modest June increase
The radio industry picked up the pace with local advertising in June, bringing in 5% more cash than in the same month in 2003, according the Radio Advertising Bureau. National business, on the other hand, was an anchor that slipped out of the boat, dragging the total business increase to a gain of 3%. But at least it was a gain!
Q2, radio was up 2% over all, on a 3% local increase and flat national dollars. The YTD results are a notch higher, with overall revenue up 3% on gains of 4% in local and 1% in national business.
TVBR observation: Most of the mid-level radio group dog and pony shows have featured reports of a more robust Q2 and YTD. Some one must be having problems! Quoting "Lost in Space" icon Robby the Robot, "Warning! Warning, Will Robinson!" From what we've been hearing, we may well be able to stitch ourselves a Santa Claus suit with the July revenue report, based on the fact that companies with otherwise positive tales to tell have been complaining about Month #7.
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Conference Calls, Q2 2004
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Politics help LIN look good in Q2
In Q2 2004, LIN TV Corp. rode a net revenue gain of over $7M to an 8% increase over the same quarter in 2003, rising from $89.2M up to $96.3M. The increase in operating income posted an even better margin, going from $24.M to $28.6M for a 16.7% gain. YTD, net revenue is up 8.2% and operating income is up 21.3%.
Chairman/President/CEO Gary Chapman said, "We are pleased by the revenue growth LIN TV posted in the second quarter, which was driven once again by increased spending by core advertisers. Approximately 36% of the increase in revenue in the second quarter was due to political spending and we are confident that the third and fourth quarters of 2004 will also benefit significantly from this important revenue stream." LIN is expecting a $14M-$15M political windfall over the remainder of the year, on top of what it has already pulled in, which should fuel a double-digit increase in revenue for Q3.
Radio One moves to the groove
Things are on the up and up at radio's leading Urban specialist Radio One. It reported a net revenue increase of 7%, centering its prior guidance prediction of a 6-8% increase. Its jump in operating income was even better, nosing into double-digit territory with an 11% gain. It managed to cut its losses at cable start-up TV One. And just for good measure, it added a second FM in Charlotte NC.
"Even in the face of difficult industry dynamics, Radio One posted an impressive quarter on virtually all metrics," said President/CEO Al Liggins. "We grew revenue in line with prior guidance, controlled costs, posted double-digit operating income growth, expanded our margins and continued to reduce our leverage."
One negative was actually seen as a positive. That was the performance of start-up basic cable service TV One. It lost $1.4M - - a number prefixed with the adjective "only," because the loss could have been worse. Radio One is looking at a net revenue gain in the 3%-5% range for Q3.
Out performing the radio industry
Venerable radio stalwart Beasley Broadcasting Group enjoyed a solid Q2, posting gains of 8.7% in consolidated net revenue and an impressive 11.6% gain in operating income, on totals of $31M and $7.9M respectively. It also announced that it planned on investing in itself, to the tune of a $25M stock repurchase plan.
The group rode impressive performances at its clusters in Miami, Ft. Myers and Las Vegas to success, and had generally positive results throughout the portfolio. "Revenue increases at seven of our 10 market clusters combined with positive developments in Philadelphia led to better than expected revenue growth during the second quarter," said Chairman/CEO George Beasley.
The company estimates its on track for an overall gain of 4% for Q3.
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Real men do groceries (and push carts)
It still may be a woman's world inside the grocery store but real men do push the carts with the squeaky wheels that wobble. Did you know that 50% of men do grocery shop at least twice per week? As they push that cart 19% of men spend over $100 weekly at their favorite grocery store.
Remember in your local sales efforts that shopping for groceries is a neighborhood choice where people talk with people and get to know each other. It is just not pinching the peach to check for ripeness. The kicker is 23% of men are self-proclaimed homemakers, to the extent of being the primary shopper.
Income average is $40K versus the comparable average female median income of $30K. Interep put out this valuable study of the changing male consumer of today. He must be taken into account when planning your local sales strategy.
More next week, including a look at men's trends in media usage.
Simultaneous media usage threatens effectiveness
of D to C marketing campaigns
Advertisers' quest to increase advertising ROI through direct communications in a one to one environment may be hitting some unexpected bumps in the road caused by consumers multiple media consumption patterns, according to the latest Simultaneous Media Survey (SIMM) of 13K consumers by BIGresearch. "Simultaneous media consumption is creating a moving target for advertisers through all communication channels and that includes direct communication online or via mail," said Joe Pilotta, PhD, VP Research BIGresearch. "Directly targeting consumers based upon behaviors is in theory a great way of cost effectively enhancing relationships and eliminating waste from ad budgets, however, the reality is that direct communication with consumers rarely occurs one to one, but is more like 2 to 1 or 3 to 1 in the context of SIMM usage." Some of the findings on ho! w this multitasking phenomenon is effecting online and direct mail are:
When online:
-- 63.5% say they regularly or occasionally watch TV
-- 59.7% say they regularly or occasionally listen to the radio
-- 40.3% say they regularly or occasionally read the mail
When reading mail:
-- 73.9% say they regularly or occasionally watch TV
-- 57.5% say they regularly or occasionally listen to the radio
-- 35% say they regularly or occasionally go online
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Media, Markets & Money tm
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Tribune offering a Franklin and two Abes
Multimedia giant Tribune Company, with newspaper, TV and one humongous standalone AM station in its portfolio, is announcing a dividend to shareholders of record as of 8/26/04. On 9/12/04, those lucky shareholders will get one dime and two pennies per share, thanks to the munificence of the company's board of directors.
Radio One doubles up in Charlotte
WABZ-FM will be the latest addition to the Radio One portfolio, coming in an $11.5M deal with Susquehanna Radio. It already owns WQNC-FM in the market. Radio One honcho Al Liggins was crowing about the deal at the group's Q2 conference call, saying they'd spent only a little more than $20M to get into this relatively large, and significantly African-American market. "This acquisition is another great deal for Radio One," said Liggins. "Charlotte is an important city for us, as it is one of the faster growing markets in the Southeastern United States, an area that is seeing strong African-American population growth."
Radio One said it had improved from an average 3-share to a 5-share when they flipped WQNC from young to Adult Urban, with Tom Joyner. It expects at a minimum it can take the new stick, and stick it is - - a move-in - - and at least get to its old 3-level for an 8-share total. The move is from Albemarle to Indian Trail NC. It'll be a 6-kW Class A, but with a decent perch. As we wrote earlier (5/24/04 RBR Daily Epaper #101): "Susquehanna likes the move to Indian Trail because the migration southwest of Albemarle puts it very close to a big yellow blob which, in our Map quest 2004 road map atlas, has the word Charlotte printed on it. We'd guess that the town is about 15 miles out of the city limits, compared to 45 miles for Albemarle."
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Washington Beat
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AFA gored again on main studio horns
"One of the chores encountered by the noncommercial Religious networks in operation these days is to make sure that paperwork at the FCC is in order, allowing the stations to operate as outlets of a distant main-studio station with less than the normally-required local presence. Rev. Donald Wildmon's American Family Association (AFA), which operates numerous such stations throughout the country, slipped up with KBKC-FM in Moberly in central Missouri. FCC agents inspected the station’s transmitter site, and found nobody at home..."
We wrote these words some time ago (2/21/03 RBR Daily Epaper #37), but they're true again - - however, this time the station is KBMP-FM in Enterprise KS.
The FCC is hitting AFA up for $10K - - $7K for the full price of a main studio violation (it noted the earlier, similar infraction) and $3K for failure to fully respond to an FCC inquiry into the matter.
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GM TalkBack
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One GM on Indecency self-protection
What new rules have you instituted (if any) for your air staff to guard against indecency? Do you use delay for all call-in shows? David Paul Estes, WEZJ AM/FM & WEKX FM, Williamsburg, KY
We really haven't instituted any new rules as a result of the recent events. We've just reemphasized our existing policy of zero tolerance. As a result, we have never had problems. Our main goal has always been to serve our communities with content that is both entertaining and acceptable. Our on-air staff realizes and embraces that idea. We do realize that we only can control what we say on the air, we can't control what callers say. So we NEVER put callers on live. For call in shows we use a 7 second delay and all other callers are recorded for future playback.
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Stock Talk
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Positive day for broadcast issues
Wall Street was kind to the broadcasting industry. The dreaded minus signs, parentheses and red numbers commonly used to indicate a loss, were for the most part a no-show on the charts. As a general rule, television companies were up slightly - - think pennies and nickels, with better gains on the radio side - - think dimes and quarters.
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TV Stocks
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TVBR Full stock report will return Monday
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Close |
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Acme
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ACME
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McGraw-Hill
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MHP
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Belo
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BLC
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Media General
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MEG
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Clear Channel
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CCU
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Meredith
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MDP
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Disney
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DIS
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News Corp.
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NWS
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Emmis
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EMMS
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Nexstar
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NXST
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Entravision
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EVC
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NY Times
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NYT
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Fisher
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FSCI
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Paxso
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PAX
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Fox
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FOX
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Saga Commun.
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SGA
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Gannett
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GCI
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Scripps
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SSP
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Gen. Electric
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GE
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Sinclair
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SBGI
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Granite
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GBTVK
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Time Warner
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TWX
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Gray
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GTN
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Tribune
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TRB
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Gray, C1. A
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GTNa
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Univision
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UVN
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Hearst-Argyle
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HTV
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Viacom, Cl. A
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VIA
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Jeff-Pilot
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JP
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Viacom, Cl. B
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VIAb
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Journal Comm.
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JRN
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Wash. Post
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WPO
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Liberty Corp
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LC
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Young
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YBTVA
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LIN TV
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TVL
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Have a news story you'd like to share? tvnews@rbr.com
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TVBR Audiocast
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07/30 - Get the feel of what you are scrolling down and reading... Listen to this morning's AudioCast and
Hold On To Your Hair!

Listen Now
with Bob DeCarlo'
"In Da Morning"
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Bounceback
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We want to hear from you.
This is your column, so send your comments to tvnews@rbr.com
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July Digital Magazine
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Complimentary Report
Sports - Summer NFL training camp, Baseball, NBA draft just hit and what you need to succeed:
Programming - Sells with NTR - What works and what doesn't

Read RBR in 2 simple steps:
1.Create a simple account with Zinio and download the free Zinio Reader.
2. You can then download the free July Issue of RBR

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TVBR Radar 2004
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Click on these issues for TV News you won't read any where else. TVBR--First, Accurate, and Independently Owned.
Saga looks at the broadcasting climate
Ed Christian’s views on the radio medium are to say the least constructive - Spotloads: see the programmer - Recovery: radio can't duck partial responsibility - Arbitron: OK in large markets unreliable in smaller - Station trading: summer doldrums - IBOC: must take advantage of new technology... TVBR observation: Always straight talk from Christian we advise a click through for this must-read. 07/29/04 TVBR #147
DTV transition:
Fritts offers an olive branch
Acting on the advice of Rep. Billy Tauzin (R-LA), has fired off a letter to his opposite number at the NCTA, Robert Sachs, proposing that representative of the broadcast and cable businesses sit down soon to hash out details of the DTV transition. TVBR observation: Tauzin is absolutely right - - to begin with, legislators are not experts in broadcasting or cable. They do not necessarily know when they are monkeying with a trifle or with a cornerstone of either business. To top it off, their broadcast vote may be little more than a bargaining chip - - something to trade in return for a vote to get a new cloverleaf built in their district! If the broadcasting and cable industries want a resolution that is businesslike, they will be much better off doing it themselves. 07/28/04 TVBR #146
Another analyst weighs in on Clear Channel's "more is less"
"Reading between the lines of management comments, we believe inventory reduction heavily involves inventory unit sales shift from 60 second units to 30 second units without significant unit price discount," RBC Capital Markets analyst David Bank. But he says details of just how that will be accomplished remain "elusive."
RBR observation: Interesting question Mr. Bank raises: Cutting spots in overnights might reduce clutter and even increase average unit prices, but if nobody's listening, does it matter? On the other hand, it is hard to see how CCU can cut inventory in its most important day-parts... 07/28/04 RBR #146
Analysts cautiously optimistic
about "less is more"
After hearing management's explanation of Clear Channel's "less is more" initiative seem to be buying into the idea, but remain cautious about what it will mean to the company's financial results.
RBR observation: SG Cowen & Co., analyst James Marsh .. Noting that current radio trends are "not pretty," 07/27/04 RBR #145
Belo and Time Warner cut cable ties
Pulled the plug on their 24-hour local cable news venture in three markets - - Houston, San Antonio and Charlotte. This put 190 full- and part-time staffers out of work. But Time Warner will go it alone to continue operating News 14 Carolina in Charlotte. 07/26/04 TVBR #144
Clear Channel may end guidance
CFO Randall Mays is asking Wall Street analysts and investors for some feedback. He wants to know whether the company should stop giving forward guidance on financial numbers. RBR observation: You can run, but you can't hide! It was Clear Channel a few years back which orchestrated the move by major groups to force Miller, Kaplan Arase & Co. to stop providing weekly pacing data to RBR. Then it was Clear Channel again just last month which put an end to Miller, Kaplan's gathering of pacing data altogether. Now Clear Channel wants to stop having to be accountable to its shareholders for whether or not management has a handle on where its business is heading. Of course, there's no requirement to provide forward guidance, but it sure looks like Clear Channel management is trying to crawl under a rock and hide. Back when times were good, Randall Mays was a master of the Wall Street guidance game - - always providing guidance that proved to be just a tad conservative so that Clear Channel delivered a bit more than it had promised. But now that the advertising environment is turbulent and Clear Channel is no longer a growth stock, he doesn't want to be held accountable anymore.
07/26/04 RBR #144
TV & cable strong,
radio not at Viacom
Radio was again the weak spot as Viacom hit its Q2 earnings targets on the strength of its TV and cable networks. TV revenues were up 11% but the story was quite different for the Infinity radio division. Revenues did inch up 2% that barely moved the needle on operating income, which was essentially flat! While brokers and other group owners have been salivating at Viacom saying it will divest some of its radio stations, Moonves indicated that he's not in any rush to do so and that the sell-off won't be extensive. Editor's note: Sell off of some radio - it will happen but when and what. Co-President/ Co-COO Les Moonves is just getting circling the pool before he jumps in. 07/23/04 TVBR #143
Tribune appeals for crossownership
Facing possible TV/newspaper combo breakups when some of its TV licenses come up for renewal, Tribune Company has appealed last month's ruling by a Philadelphia federal appeals court that sent all of the FCC's ownership rules back for reworking. Tribune wants the court to allow TV/newspaper crossownership in markets with at least nine stations while the Commission reviews its rules. 07/23/04 TVBR #143
Infinity moving all national business to Interep
The p-match between Infinity and Clear Channel continues: While 75%-80% of Infinity's national sales biz is currently with Interep, the rest (20%+) will be moving from Katz over to Interep. RBR observation: Makes sense to bring that money into your own bank. But word of caution again to Interep, and not put yourself as a company in harm's way. There has been and always will be this stigma. 07/23/04 RBR #143
Clear Channel fires back
with $3M countersuit
against Infinity and Stern
The best defense is a strong offense, so Clear Channel is going on the offensive in its legal battle with Viacom's Infinity over bouncing "The Howard Stern Show."
TVBR observation: We note that one of the allegations that Clear Channel denies in its response to the Infinity lawsuit is the claim that Clear Channel's suspension of Stern's show was politically motivated - - coming a day before Clear Channel Radio CEO John Hogan was due to testify on Capitol Hill about indecency penalties. But we all know this is more about politics than anything else.
07/22/04 TVBR #142
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TV editor
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