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Volume 24, Issue 151, Jim Carnegie, Editor & Publisher
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Friday Morning August 3rd, 2007
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TV News ®
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 Spanish expansion helping to grow Fisher
Colleen Brown has certainly made her mark on Fisher Communications as CEO and she was able to report success from her changes in the company's Q2 results. "The second quarter of 2007 continued our trend of revenue growth. We gained solid revenue results over the first half of the year, driven by Fisher's expanding efforts in Spanish-language television and increased rental income from Fisher Plaza. Over the second half of the year, we will continue to improve our market position by expanding our Internet presence and pursuing important distribution and partnership opportunities," she said. TV revenues were up 4% in Q2, but radio was down 5%, giving Fisher Communications a revenue gain overall of 3% to 41.3 million. On the bottom line, net income was flat with a year ago at 2.3 million. During the quarter, Fisher moved ahead with its expansion from English-language broadcasting to Spanish as well, all within its regional focus of the Northwestern US. Fisher closed on its five million bucks purchase of four Univision affiliates in Eastern Washington that it had already been operating under LMAs. On July 9th, Fisher debuted "Noticias Noroeste" - "Northwest News" - the Puget Sound's first locally produced, all Spanish-language commercial news program airing on two Univision affiliates, KUNS-TV Seattle and KUNP-TV Portland. Both are operated in duopolies with Fisher's long-established ABC affiliates.
MMTC gets FCC to further consider SDBs
Minority Media & Telecommunications Council has asked that the FCC restart its proceeding on media ownership rules since it felt its suggestions on increasing the participation of socially and economically disadvantaged businesses were given short shrift in the FCC's call for comments. The FCC will not go that far, but has agreed to open a second NPRM requesting comment on SDBs. The FCC says it already "...sought comment on MMTC's various proposals, as well as on the general issue of fostering minority and female ownership. We urged commenters to explain the effects, if any, that their rule proposals would have on ownership of broadcast outlets by minorities, women and small businesses." A critical aspect of this proceeding will be the definition of an SDB. MMTC notes that "the Prometheus opinion recognizes the importance of establishing a definition for SDBs because, in approving the small business cluster transfer policy, the court indicated that, by the next quadrennial review, the Commission would have the benefit of a stable definition of SDBs as well as implementation experience in order to reevaluate whether an SDB-based waiver policy would better promote the Commission's diversity objectives." The FCC has noted in turn that this definition may face constitutional challenge if it is tied to either race or gender. The FCC also seeks comment on the extent of its statutory to address such ownership issues. MMTC proposals have been attached in an appendix to the FCC's Second Further NPRM on this topic, available at fcc.gov.
TVBR observation: One thing the FCC can't do, but Congress can, is reinstate the minority tax credit program. Just about everybody we've ever heard mention it is for it. Hey, Congress, get on the stick and put this back on the books.
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 FCC reaffirms New Vision's Youngstown Parkin lot
The sale of WYTV-TV Youngstown OH from Chelsey Broadcasting to Parkin Broadcasting stipulated right up front and out in the open that the station would subsequently go into a shared services agreement (SSA) with New Vision-owned WKBN-TV. That arrangement would actually combine three networks together. WYTV carries ABC and, on a digital side channel, MNT. WKBN is the local CBS affiliate. The National Association of Broadcast Employees and Technicians-Communications Workers of America objected to the deal for three main reasons. (1) The deal was said to have been orchestrated by New Vision without a normal "bidding war" for the station; (2) it will knock off an independent news voice; and (3) the combination will result in job loss for its members. The stations responded that "nothing in NABET's petition supports any conclusion that the contemplated arrangements are not in compliance with the Commission's rules and policies." The FCC agreed and upheld the SSA. New Vision will not provide more than 15% of WYTV's programming, but the FCC can't say which 15% it may provide. And Parkin will receive 100% of WYTV's income, reimbursing New Vision for expenses incurred along with a management fee.
TVBR observation: The rules are the rules. The FCC may or may not deplore the fact that New Vision produces news for WYTV, but whether it does or not, there simply is nothing it can do about that legally. As long as Parkin and New Vision remain at arms length, it would appear that NABET does not have a leg to stand on under the current regulatory framework.
Fox sister a drag on Sinclair
Bear Stearns analyst Victor Miller has a new name for News Corporation's MyNetworkTV - My NOTwork TV. He notes that revenues for Sinclair's MyNet affiliates were down 21% in Q2, helping to drag revenues down 1.4% for the company overall. Sinclair also indicated that Q3 will be worst than Miller had projected, down 1.9-3.1%. So, the analyst has lowered his target price for the stock by a buck to 17 bucks, which is still well above where Sinclair is now trading. Miller expects full year 2007 EBITDA to be 232 million, rather than his previous estimate of 242 million. That's because of weak ad trends and accounting for the sale of Sinclair's ABC affiliate in Springfield, MA. In 2008, though, Miller sees TV stocks benefiting from political ad spending and retransmission consent payments - the latter an area where Sinclair has been particularly aggressive.
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| Wall Street Media Business Report TM |
Entravision hurt by tough TV comps
TV lagged due to tough comps in Q2 at Entravision, while radio was up, so companywide revenues were down 4% to 76 million. "We continue to execute on our business plan and capitalize on the growth of the Hispanic media market. In the second quarter of 2007 we faced difficult World Cup and political comparisons from the prior year period, but we continued to drive both audience and advertising shares," said CEO Walter Ulloa. Pro forma radio revenues, adjusted for the sale of stations in Tucson and Dallas, were up 9% to 26.2 million. TV revenues declined 7% to 40.3 million and outdoor revenues were off 2% to 9.5 million. So, pro forma revenues were down 1%. But expenses rose 5%, so consolidated adjusted EBITDA declined 10% to 27 million.
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Ad Business Report TM
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 Multi-platform sports marketing
By Ray Katz, U.S. Director of Sports Marketing,
Optimum Sports/OMD
Much has been written recently regarding the increasing challenges marketers face in trying to reach today's time-pressed, mobile, and multi-tasking consumers. These consumers are consuming more media than ever. In the world of sports marketing, the number of sports available through media platforms, the mediums used for consumption, and the convergence between sports media and sports properties are ever increasing. Sports marketing, across all categories and brands, has seen a proliferation of media mix, strategies, and tactics which are more divergent than ever. The purpose of this article on multi-platform sports marketing is to elaborate on four major themes;
1- Why an increasing percentage of marketing budgets are allocated towards sports
2- Changes in the sports business landscape in a "four screen world"
3- How marketers should best approach multi-platform sports marketing
4- How sports marketers are progressing with respect to measuring Return on Investment
| Read More... |
MasterCard partners with Placido Domingo
for "Around the World" tour
MasterCard Worldwide announced a partnership with world renowned Maestro, Placido Domingo, where the company will serve as the presenting sponsor of his "Around the World" tour. The tenor will perform numerous concerts around the globe, starting this summer and culminating in 2009. Concerts in Lisbon, Wiesbaden and Athens have already been held with the next concerts scheduled for Boston, Ft. Lauderdale, Abu Dhabi, United Arab Emirates; and Zurich, Switzerland. MasterCard, as a presenting sponsor, will receive benefits including hospitality, advertising and the opportunity to deliver "Priceless" experiences. MasterCard cardholders will receive discounts on purchased tickets and will have the opportunity to buy tickets during a pre-sale for selected shows. This announcement further enhances and supports MasterCard's affluent product platforms that include the James Beard House Celebrity Chef Tour and the PGA Tour.
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| Media Business Report TM |
 Youth exposure to alcohol ads
in magazines declining
Youth exposure to alcohol advertising in magazines declined 49% from 2001 to 2005, according to a new report by the Center on Alcohol Marketing and Youth (CAMY) at Georgetown University. The study also found, however, that a substantial portion of the alcohol industry's ads remains in magazines with disproportionate youth (12-20 year-old) audience composition: 44% of advertisements and 50% of spending in 2005. Magazines with disproportionate youth audience composition were defined as those with youth audiences greater than 15%, the proportion of youth ages 12-20 in the general population age 12 and above. Most alcohol companies have successfully shifted their advertising to publications that meet the voluntary maximum of 30% youth audience composition adopted by the beer and distilled spirits trade associations in 2003. According to the report, less than 1% of alcohol advertisements and alcohol advertising dollars in 2005 were in magazines with youth readership exceeding the industry standard, down from a high of 11% in 2002.
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| Media Markets & Money TM |
Milwaukee CBS affil finds some Wiegel room
WDJT-TV Milwaukee is getting a little sister. The CBS affiliate on Channel 58 is picking up indy WJJA-TV out of nearby Racine WI in a stock deal with Joel J. Kinlow worth 7M. Kalil & Co. and Kepper, Tupper & Co. provided brokerage services for the transaction which will move 100% of all shares in the station. WJJA is licensed to TV-49 Inc., and will go to Channel 49 LLC, which is turn is a subsidiary of Wiegel Broadcasting Company, headed by chairman Howard Shapiro, president Norman Shapiro and manager Fred Bishop. WJJA is located on Channel 49 (DTV 48), and has been affiliated with various shopping networks in the past. The contract stipulates, however, that Kinlow will break off an affiliation agreement with Jewelry Network. Weigel also owns indy WCIU-TV Chicago and operates eight low power and Class A TVs in Illinois, Wisconsin and Indiana.
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| Washington Media Business Report TM |
House panel moves shield forward
32 states and the District of Columbia have laws on the books which protect the right of a reporter to in turn protect the identity of a confidential source. If the full House, the Senate and President Bush go along with the House Judiciary Committee, so will the United States. The Free Flow of Information Act of 2007 passed on voice vote with bipartisan support led by Rick Boucher (D-VA), John Conyers (D-MI), Mike Pence (R-IN), Howard Coble (R-NC), Greg Walden (R-OR) and John Yarmuth (D-KY) in the House. A similar bill is being shepherded through the Senate by Richard Lugar (R-IN), Christopher Dodd (D-CT), Lindsey Graham (R-SC), Mary Landrieu (D-LA) and Pete Domenici (R-NM). NAB's Dennis Wharton commented, "Broadcasters take great pride in providing listeners and viewers with critical information that at times carries significant risk to both reporters and their sources. We look forward to quick action from the full House and with companion legislation in the Senate."
TVBR observation: The Senate may indeed second the House on this one, but the bill is likely to run into opposition from the Department of Justice and the White House. Without a signature from the Executive Mansion, the shield may be waiting around until there is a new occupant in 2009. However, legislators have continued to push for this over the past few years, and we expect they will keep on pushing until all of the necessary approval points align in its favor.
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| Entertainment Media Business Report TM |
 Underwood gets dirty...and sexy
"Dirty Sexy Money" has not yet made its debut on ABC, but the network has already announced a cast addition. Actor/producer/director/author Blair Underwood will join the drama sometime into the season. Underwood will become a series regular in a multiple episode story arc, playing savvy, visionary billionaire Simon Elder, a potential nemesis of the Darling family. Presumably, by then, we will know and care who the Darlings are. Dirty Sexy Money stars Peter Krause as Nick George, Donald Sutherland as Tripp Darling, William Baldwin as Patrick Darling, Natalie Zea as Karen Darling, Glenn Fitzgerald as Rev. Brian Darling, Samaire Armstrong as Juliet Darling, Seth Gabel as Jeremy Darling, Zoe McLellan as Lisa George, with Jill Clayburgh as Letitia Darling. Dirty Sexy Money was created by Craig Wright. Wright, Greg Berlanti, Josh Reims, Matthew Gross and Bryan Singer are executive producers. The series is produced by ABC Studios and will premiere on September 26th.
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| Internet Media Business Report TM |
Social networking goes global
comScore released the results of a study on the expansion of social networking across the globe, revealing that several major social networking sites have experienced dramatic growth during the past year. Social networking behemoth MySpace.com attracted more than 114 million global visitors age 15 and older in June, representing a 72% increase versus year ago. Facebook.com experienced even stronger growth during that same time frame, jumping 270% to 52.2 million visitors. Bebo.com (up 172% to 18.2 million visitors) and Tagged.com (up 774% to 13.2 million visitors) also increased by orders of magnitude. While attracting global users, specific social networks have a tendency to skew in popularity in different regions. For example, both MySpace.com (62%) and Facebook.com (68%) attract approximately two-thirds of their respective audiences from North America. That said, each has already amassed a large international visitor base and both appear poised to continue their global expansion. Bebo.com has a particularly strong grasp on Europe, attracting nearly 63% of its visitors from that region, while Orkut is firmly entrenched in Latin America (49%) and Asia-Pacific (43%). Friendster also attracts a significant proportion of its visitors (89%) from the Asia-Pacific region. Both Hi5.com and Tagged.com exhibit more balance in their respective visitor bases, drawing at least 8% from each of the five worldwide regions.
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| Ratings & Research |
 More Canadians choosing Internet over TV, radio
An increasing number of Canadians are subscribing to high-speed Internet and companies are doubling their advertising efforts on new media platforms. Meanwhile, Canadians are watching less TV and listening to fewer hours of radio programming, yet operators in the sectors are squeezing more sales, reports The Financial Post on the annual broadcasting industry report prepared by the Canadian Radio-television and Telecommunications Commission (CRTC). The study found that in 2006, the number of Canadians who either listened to radio or watched TV over the Internet increased slightly. Moreover, Canadian households with Internet access climbed, to 70% from 64%, with a bigger increase in households signing on to high-speed subscribers, to 60% from 51%. "Advertisers have noticed, and have almost doubled their spending on online marketing, to 1 billion last year from 562 million in the year-ago period," said the article. "As for the conventional sectors, Canadians watched on average 27.6 hours of TV per week in 2006, slightly under the 28.1 hours in 2005. Revenue for TV operators increased almost 8%. For radio, Canadians listened to 18.6 hours per week in 2006, a little less than the 19.1 in 2005. Sales for that medium increased 5.7%."
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| Stock Talk |
Market up for 2nd session
The stock market rebounded again on Thursday, with traders cheered by a government report that unemployment claims were lower than expected. The Dow Industrials rose 101 points, or 0.7%, to 13,463.
TV stocks were mixed. LIN was the best performer, up 2.1%. Fisher rose 0.5% after reporting higher Q2 revenues. CBS was a strong performer, up 1.8%. Entravision, which reported earnings after the market closed, was down 1.3%.
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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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4.00
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+0.03
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Lincoln Natl.
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LNC
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60.76
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+0.76
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Belo
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BLC
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17.69
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-0.33
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LIN TV
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TVL
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15.61
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+0.32
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| CBS CI. B |
CBS |
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32.53
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+0.56
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McGraw-Hill
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MHP
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59.65
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-0.72
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| CBS CI. A |
CBSa |
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32.56
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+0.57
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Media General
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MEG
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27.91
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-0.24
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Clear Channel
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CCU
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36.88
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+0.01
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Meredith
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MDP
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56.48
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-0.30
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Disney
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DIS
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34.36
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+0.53
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News Corp.
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NWS
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22.95
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+0.13
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Emmis
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EMMS
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6.95
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-0.20
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Nexstar
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NXST
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10.39
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+0.08
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Entravision
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EVC
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9.15
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-0.12
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Ion Media
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ION
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1.40
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+0.11
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| Equity Media |
EMDA |
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3.80 |
+0.12 |
Saga Commun.
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SGA
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7.15
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-0.13
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Fisher
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FSCI
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46.63
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+0.25
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SBS
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SBSA
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3.21
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-0.04
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Gannett
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GCI
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50.50
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-0.19
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Scripps
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SSP
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41.27
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+0.57
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Gen. Electric
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GE
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39.03
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+0.08
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Sinclair
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SBGI
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12.21
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-0.03
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| Google |
GOOG |
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511.01
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-1.93
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SWMX
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SWMX
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0.10
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-0.05
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Gray
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GTN
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8.09
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+0.15
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Time Warner
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TWX
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18.90
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+0.26
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Gray, C1. A
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GTNa
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8.01
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+0.10
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Tribune
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TRB
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28.18
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+0.33
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Hearst-Argyle
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HTV
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20.57
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-0.07
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Wash. Post
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WPO
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791.90
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-1.25
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Journal Comm.
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JRN
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10.56
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-0.07
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Young
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YBTVA
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2.35
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-0.10
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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
Multi-platform sports marketing
Ray Katz at Optimum Sports/OMD elaborates on four major themes...
Media Markets & Money
Milwaukee CBS
Affil finds some Wiegel room Channel 58 is picking up indy.....
Entertainment Media
Business Report
Underwood gets dirty and sexy
Dirty Sexy Money has not yet debut but already announced a cast addition...
Ratings & Research
Canadians choosing
Internet over TV, radio...
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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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Upped at Bravo
NBC Universal's Bravo has promoted Cori Abraham to Vice President, Development and Production. She was most recently Director of Development and Production.
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RBR - Radio News
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FCC: Radio rates up, listenership down
The FCC's own Senior Economist George Williams wrote "Review of the Radio Industry, 2007," one of the 10 studies just released as part of the ongoing media ownership review. Among the more provocative findings of his report is that while listenership declines, rates have approximately doubled. Williams cites Arbitron stats to detail a drop from 19.7M listeners per average quarter hour in 1998 to 18.4M in 2006, a 6.6% drop. Noting that the lower number of owners (he counts 5,133 in 1996 and only 3,121 in 2007, a 39% decline) deprives advertisers of bargaining chips over rates, he says "consolidation in the radio industry may allow radio companies to exercise market power in local markets and possibly nationally." He goes on, saying, "Overall, it appears that the cost of radio advertising has nearly doubled since the 1996 Act was passed." Looking at in-market competition, Williams gave average revenue shares of the top four radio clusters. In the top 50 zone, the #1 cluster averages a 34% piece of the revenue pie, with #2 getting 24% and #3 and #4 splitting the next 26% between them. The #1 firm is much more dominant in the 100 smallest markets, taking over half the pie with 54%, while #2 snags 30% and #3 and #4 share the next 13%. In 189 out of 299 Arbitron markets, the top firm earns at least 40% of the market's radio revenue, and in 111, the top two split at least 80%.
RBR observation: If you're wondering why the doubled rates don't seem to be showing up on your bottom line, join the club. Radio revenue in 1995 was 11.47B. In 2006, it was 20.14B. That's not close to double, before you even take into account that there is much more inventory to divide into the total collected so as to determine the average charge for a spot.
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SmartMedia Magazine
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Coming in September
FALL NAB ISSUE
SPECIAL DISTRIBUTION:
NAB RADIO SHOW
Radio Roundtable:
Radio execs find solutions.
Media Markets and Money:
What's attractive to equity capital these days?
Ad Biz:
Gennele Niblack, Katz Political President
Sales:
Dial Global's Eileen Decker on radio ad sales
News/Talk:
Using your website to get, keep and grow your audiences
Political Advertising:
Greg Pinello, GMMB: Political dollars for radio: The need for there to be more ideological diversity in the news-talk format; Tom Edmonds, a Republican strategist with Edmonds and Associates
Legal Ease:
Gregg Skall:
"The FCC rules on political ads-Network exception issue".
HD Radio:
Monetizing Conditional Access
New Media:
Gary Arlen: YouTube, Joost and the emerging Fox-NBC website are just the start of big bandwidth video via the Internet.
Streaming:
The impact of CRB Royalty rates on webcasters and streaming ads.
For advertising
information, contact:
June Barnes
jbarnes@rbr.com 803-731-5951;
Jim Carnegie
jcarnegie@rbr.com 813-909-2916 or
Carl Marcucci
cmarcucci@rbr.com 703-492-8191.
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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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Copps wants Murdoch buy investigated by FCC
Since the Wall Street Journal is a national newspaper, it has been assumed that Rupert Murdoch's deal to buy Dow Jones & Company is a non-event as far as the FCC is concerned. Commissioner Michael Copps (D) begs to differ. "It's interesting to hear the "experts" claim the transaction faces no regulatory hurdles. Not so fast! This deal means more media consolidation and fewer independent voices, and it specifically impacts the local market in New York City. What's good for shareholders of huge media conglomerates isn't always what's good for the public interest or our civic dialogue..."
TVBR observation: Beg pardon Commissioner, but you are dead wrong on the law and regulations this time. Just as Gannett is not impacted by the crossownership rule from having the headquarters of USA Today in the Washington, DC market, where it has a TV station, there is no crossownership issue here for the New York market, where News Corporation owns two TV stations and the Wall Street Journal is headquartered. There is an ongoing issue with News Corporation also owning the New York Post under a crossownership waiver, but that is a completely separate matter.
08/02/07 TVBR #150
The manure hits the fan
He may have signed a contract for Arbitron's Portable People Meter (PPM) as it rolls out to Cox Radio markets, but Cox CEO Bob Neil says he is going to be a difficult customer. He railed against Arbitron in his quarterly conference call, insisting that there are "massive problems" with the samples in both Houston and Philadelphia, the only two PPM markets currently up and running. As for the idea that advertising agencies were supposed to be educated by Arbitron to make a one-time adjustment to their CPM targets to switch from diaries from PPM, "that's a load of dog manure," Neil said. He charged that Arbitron has not lived up to its promises to educate agencies about PPM and he intends to keep the pressure on Arbitron to fix that and other problems.
08/02/07 RBR #150
Stations ally to oppose
performance tax
We thought there was very clear handwriting on the wall following this week's hearing on performance payments on broadcast, and we weren't the only ones. A new group has been formed in Washington comprised of "local radio broadcasters, Latino and African-American groups, non-profit associations and other community groups" to oppose attempts to levy a new "performance tax" in the form of artist/producer royalties for airplay. It's called the Free Radio Alliance.
RBR observation: If this is about large recording companies using musicians as pawns as they try to pick the pockets of broadcasters, then broadcasters are the ones occupying the moral high ground, no matter what anybody says to the contrary.
08/02/07 RBR #150
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Hard finding that key person
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