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Volume 24, Issue 162, Jim Carnegie, Editor & Publisher
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Monday Morning August 20th, 2007
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TV News ®
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A real soap opera in LA?
That's the way the Los Angeles Times has been playing this, with NBC Universal's Telemundo sending in Michael Rodriguez from O&O WSCV-TV (Ch. 51) Miami to be acting GM of O&O KVEA-TV (Ch. 52) LA to fill the seat vacated by the corporate reassignment of Manuel Abud in the wake of a news ethics scandal (8/6/07 TVBR #152). The soap opera angle now is based on Michael Rodriguez being the younger brother of Ray Rodriguez, President of Univision - or, as the Times depicts it, "the arch-enemy of the smaller Telemundo operation."
TVBR observation: Yes, a little sensationalism helps to sell papers, but this is hardly as juicy as the KVEA scandal that created the GM opening, with a news anchor having an affair with the Mayor of LA and still delivering reports on air about her secret beau. This is not new territory for the Rodriguez brothers. Michael was already GM of a major Telemundo O&O in Miami when Ray got the promotion in 2005 to President of Univision and before that he was head of the TV network operation.
 Is GM benefiting from
underground promotion?
An article in Automotive News published earlier this month noted how General Motors has been providing motor vehicles to various radio/television personalities, and schedules tours of GM facilities and sit-downs with GM execs. One-air mentions have followed, and watchdog icon Ralph Nader thinks this is something the FCC should be investigating. The Detroit Free Press list of personalities in on the arrangement included Rush Limbaugh, Bill O'Reilly, Laura Schessinger, Whoopi Goldberg, Sean Hannity, Ryan Seacrest, Glenn Beck, Delilah, Laura Ingraham, John Tesh and others. The Automotive News article cited by Nader details praise for GM from Limbaugh and others. In his letter to the FCC, which was copied to Chairman Kevin Martin (R) and Commissioner Jonathan Adelstein (D), Nader pointed out that a regulation "requires that, when anyone provides or promises to provide money, services or other consideration to someone to include program matter in a broadcast, that fact must be disclosed in advance of the broadcast, ultimately to the station over which the matter is to be aired. Based on this article, it appears that content of the broadcasts may violate the sponsorship identification rules." He added, "In any event, the FCC needs to investigate."
TVBR observation: Pay-for-say, the quiet little brother of full-blown payola, has reared its ugly head in a number of different ways recently. There have been columnists and commentators hired by the Bush administration to surreptitiously promote policy; there have been flaps when so-called product experts have favorably reviewed items over the air, items they were paid to positively review. If somebody gives you a candy bar to try for free, and you praise it over the air, we think you're OK as long as you acknowledge the prior transaction. But if you suddenly launch into a prose poem about the virtues of the candy bar without mentioning that you received it as a gift, you have found the thin ice. This is one of Adelstein's pet peeves, and whether or not the GM flap has any legs in its own right, it will probably at the very least allow him to continue further inquiry into the whole payola/pay-for-say issue.
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NAB, MSTV defend digital must-carry
Cable carriage issues remain as the 2/17/09 deadline for the digital rushes ever closer. The National Association of Broadcasters and the Association for Maximum Service Television have joined forces in reply comments to an FCC inquiry, holding that must carry should carry forth into the new digital regime and that CATV industry arguments to the contrary do not hold water. Cable has an obligation to provide local over-the-air broadcast stations to its subscribers, and may down downgrade the signal. That is has options on how to do this, NAB/MSTV argue, eliminates any First Amendment concerns. They also point out that digital technology render moot any capacity objections. They further charge that the CATV's effort to limit its obligations to a bare minimum are anti-consumer. NAB/MSTV also seconds the FCC's recommendation to use loss of bits as the defining standard of material degradation of a broadcast signal, and to hold cable operators responsible to assure that there is no such degradation. "In sum," they conclude, "the cable industry has shown no legal, constitutional or policy reason why the Commission should not adopt its pro-consumer proposals in this proceeding."
 Plaudits for proactive
preteen programmers
Ed Markey (D-MA) has taken point on Capitol Hill in when it comes to the fight against childhood obesity, and across the mall at The Portals, FCC Commissioner Deborah Taylor Tate has done the same. The media is inextricably tied to the issue, and both Markey and Tate are congratulating two cable services located at ground zero, Nickelodeon and The Cartoon Network. The two web nets closely followed similar action from Discovery Kids. In particular, the trio are going to restrict the use of their animated talent as celebrity spokespersons for unhealthy foods. Markey said, "In my view, limits on the amount of junk food advertising seen on children's television, along with strong nutrition standards for food and beverage products advertised and utilized with licensed characters for such children's TV shows, will help address childhood obesity in a positive way." Tate, speaking to the Nickelodeon announcement, added, "It's another great day for families. Nickelodeon joins a growing group of children's programmers pledging to America's families that their characters will promote healthier foods and lifestyles. I hope announcements like this one challenge other children's programmers to consider similar pledges."
TVBR observation: Washington is just itching to do some regulating when it comes to the issue of childhood obesity and the promotion tactics of junk food manufacturers. It is important to remember that the courts have traditionally held that commercial speech is not quite as free as standard, every day speech, which allows regulators and legislators room to maneuver. So far this summer, stakeholders on both the media and manufacturing end have been adjusting in advance of a childhood obesity task force report which is expected to be out in September. It looks like this may well be a case where voluntary action will be sufficient to head off regulatory action.
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 Arbitron working to boost PPM samples
Arbitron officials said last week that they are working to replace households classified as poor responders in its first two markets using Portable People Meters (PPM) for radio ratings and that it is taking longer than expected. It is a "continuous learning curve," said Arbitron CEO Steve Morris in a conference call with RBR/TVBR and other trade press. "First of all, the audience data for Philadelphia and Houston are statistically valid and they are remarkably stable month to month. Second, some of the underlying metrics of in-tab sample size, overall and in specific hard-to-recruit demo cells, are below where they should be. Weighting brings the audience measurement numbers back into line, but we can and we will improve these internal metrics over time so that we can minimize the need for weighting. The third headline is that there are specific actions that we have been taking, starting in the last couple of months, as the patterns of panel composition have become more clear, and from here on out you will see us on a program of continuing improvement. It's never going to be perfect, but as with the diary, we will keep getting better," Morris said. Arbitron Chief Research Officer Bob Patchen said the company expects to be back to the full sample size by the end of September for Philadelphia and by early October for Houston. It's a trade off, he said - booting out households with poor compliance on carrying PPMs reduces the sample size while it improves the proportionality of the sample, which has been a high priority for broadcasters. The other big concern has been adjustment by agency buyers to the new PPM metrics. In broad terms, Arbitron President of Sales and Marketing Pierre Bouvard said that's changing 100 points GRP under diary to 70 points under PPM. He said it is now a top priority for Arbitron to get to media planners, since all of the top 10 markets will be on PPM measurement by the end of next year. He suggested that buys are still being made in Houston and Philadelphia under media plans drawn up last year before PPM was taken into consideration, so he says there has been a one-year shakeout period.
TVBR observation: For those of you in LPM markets, is this a bit of déjà vu? Is there now going to be a one-year shakeout period in every top 10 radio market, with buyers trying to pay 70% of what they should be paying? You can't blame them for trying. Rate integrity is already a big problem in radio, and worse in some of the largest markets than elsewhere. A lot of education is going to be needed for media planners and buyers, but then radio stations are going to have to stand firm on rates so that they are not paying 65% more for a new ratings system that reduces the value of their inventory by 30%. Ouch!
How are the other PPM markets coming along?
Reacting to calls from the Arbitron Radio Advisory Council and its Chairman, Steve Sinicropi from Cox Radio, for more transparency on the PPM transition, Arbitron is now planning to hold monthly updates for the press. One data point we received was on where the next markets scheduled to get PPM stand on panel recruitment. New York, as of August 8th, had 4,739 people in the panel, with a target of 5,170. PPM is due to launch on a demonstration basis in the New York market in October. Next up is Los Angeles, where 1,618 people were in the panel from a target of 3,270. In Chicago, the panel thus far has 1,634, with a target of 2,595. PPM installation will begin in San Francisco in September and Dallas in November. Arbitron continues to monitor most TV stations in Houston (except for the ABC, CBS and NBC stations) and is marketing the data for measuring out-of home viewing. So far, no stations have signed up to encode in Philadelphia, but Arbitron will be trying to market its services to TV stations in all of its PPM markets.
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Ad Business Report TM
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 Google scores programming deal worth 10 million
Finance company Media Rights Capital said it is teaming with Seth MacFarlane, creator of animated hits "Family Guy" and "American Dad," and teen star Raven-Symone to create original content for distribution through Google starting next year. MacFarlane will create 50 animated shorts according to a NY Post story. Raven-Symone, of Disney Channel's "That's So Raven," will develop a series of "how-to" segments that Dan Goodman, president of MRC's digital division, said are a teen version of Martha Stewart. The deals are part of a 10 million slate of original short-form programming MRC is developing for distribution via Google, said the story. The content will be bundled with banner ads and in-stream video ads. MRC will work with Google to deliver the videos to targeted websites throughout its AdSense content network.
Sizzler names Ground Zero AOR
Sizzler USA today announced the appointment of Ground Zero as its advertising agency of record for strategy and creative. Ground Zero will work with Sizzler on branding and promotional campaigns due to be unveiled early in 2008, the year marking the 50th anniversary of the Sizzler brand. Acquired by Australian-based Pacific Equity Partners in 2005, Sizzler owns or franchises more than 300 mid-scale casual dining restaurants worldwide. Having updated its restaurants, menus and marketing, Sizzler is expanding in the U.S., Asia and Latin America. The chain will celebrate its 50th anniversary in January 2008. Its overall U.S. advertising and marketing expenditure in 2006 was approximately 10 million. Ground Zero is best known for its work on behalf of the California Department of Health Anti-Smoking Campaign, Virgin Digital, The History Channel International and ESPN.
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| Media Business Report TM |
Talkers focus on 2008
During a week when much of the news hole transitioned from a disaster in Minnesota to one in Utah, the 2008 presidential campaign still managed to get the lion's share of the coverage with 16% of available time and space. The Project for Excellence in Journalism talk index found the gabmeisters more than willing to ride that train. In fact, they more than double the attention of newsers, giving the campaign a whopping 35% of the hole. Two events, the YearlyKos Convention for Democrats and the Iowa Straw Poll for Republicans, helped fuel the chat. Talkers agreed with newsers that the Utah mine disaster was the #2 story, but gave in only 11% compared to the 13% it got over in the news department.
 CBS show "eyed"
for child abuse on set
The NY Times reports CBS's "Kid Nation," the new reality show coming to CBS next month, extol the incredible experience of a group of 40 children, ages 8 to 15, who built a sort of idealistic society in a New Mexico ghost town, free of adults. For 40 days the children cooked their own meals, cleaned their own outhouses, formed a government and ran their own businesses, all without adult intervention or participation. To at least one parent of a participant, who wrote a letter of complaint to New Mexico state officials after the show had completed production, the experience bordered on abuse and neglect, The Times said. Several children required medical attention after drinking bleach that had been left in an unmarked soda bottle, according to both the parent and CBS. One 11-year-old girl burned her face with splattered grease while cooking. The children were made to haul wagons loaded with supplies for more than a mile through the New Mexico countryside, and they worked long hours - "from the crack of dawn when the rooster started crowing" until at least 9:30 p.m., according to Taylor, a 10-year-old from Sylvester, GA. Divad, an 11-year-old girl from Fayetteville, GA., whose mother wrote the letter of complaint and who was burned with hot grease while cooking, said she would not repeat the experience. She said there was no adult supervision of the cooking operation when she was hurt, although there often was an adult "chef" present in the kitchen. A New Mexico official whose department oversees licensing of congregant child-care settings said in an interview with the Times that the project almost assuredly violated state laws requiring facilities that house children be reviewed and licensed. Jonathan Anschell, who oversees CBS's West Coast legal office, told the paper a state labor department inspector visited the set of the show unannounced during the production. But Carlos Castaneda, a spokesman for the state labor department, now known as the Department of Workforce Solutions, said that the inspector was not allowed on the site and left without inspecting anything. The show debuts 9/19.
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| Media Markets & Money TM |
Double deal in Mississippi
Grandfather is expecting to be undisturbed when the Meridian MS CBS affiliate is sold from one party to a second, while the local NBC affiliate goes from a third party to a fourth. The two stations are linked via a program services agreement that will convey to the new owners. The top deal is for CBS WMDN-TV 24 (DT 26), which is going from the Estate of Frank K. Spain to Meridian Media LLC, headed by Sharlyn and Wade Threadgill. That one will go in the books for 5.8M. The smaller deal by far sends NBC WGBC-TV 30 (DT 31) form Robert M. Ledbetter Enterprises to Michael Reed's WGBC-TV LLC for 700K. The programming services agreement, which was grandfathered and dates back to 8/1/95, has the CBS station at the reins.
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| Washington Media Business Report TM |
Let's go out to the lobby
 Who spent more bending the ears of Washington-types during the first half of 2007, Clear Channel or the National Association of Broadcasters? We are happy, we guess, to report that the big winner was NAB, as well it should be since that is a major part of its job. According to reports, Clear Channel dropped 1.2M working various DC lobbies, while the NAB dropped 4.3M. Both were working to head off the establishment of a performance tax. NAB also spent quite a bit trying to head off the XM/Sirius merger, among other things. Clear Channel had some tax issues it was trying to work on.
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| Cable Business Report TM |
Cox launches on demand in Florida markets
Cox Communications announced its On DEMAND service is now available in its Gainesville/Ocala and Pensacola/Fort Walton, Florida markets. On DEMAND from Cox is currently available in Greater Louisiana; Cleveland; Roanoke, Hampton Roads and Northern Virginia; Kansas; Las Vegas; New England; Oklahoma City and Tulsa, Okla.; San Diego and Orange County, Calif.; Omaha, Neb. and Gulf Coast and Central Florida.
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| Entertainment Media Business Report TM |
"Crosswords" gets network preview
NBC Universal has quite a bit staked on the new game show "Merv Griffin's Crosswords," handling ad sales for the syndicated show and airing it on the major market NBC O&Os. So, NBC, the network that is, will give the show a nationwide network airing to introduce folks to the new game show entry, hosted by "One Life to Live" soap star Ty Treadway, who was selected for the gig by the late Merv Griffin. NBC has slated Crosswords to air Saturday, September 8th, 8:30-9:00 pm ET. Crosswords is produced by Merv Griffin Entertainment and Program Partners.
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| Internet Media Business Report TM |
CBS Mobile Adds Big Brother 8 Channel
Marking the first time content from a primetime television show has aired live and continuously on mobile handsets in the U.S., CBS Mobile, Verizon Wireless and MediaFLO USA, subsidiary of QUALCOMM, have teamed up to provide a new channel dedicated to Big Brother 8. The channel will air a real-time, 24/7 feed of the activity inside the Big Brother House from 8/19 through the season finale on 9/18. In total, hundreds of hours of live programming will air on the Big Brother service, which is available at no additional charge to V CAST Mobile TV subscribers. The dedicated Big Brother 8 channel will supplement regular programming from CBS Mobile, one of the eight regular services available on FLO TV, which is available to consumers on V CAST Mobile TV from Verizon Wireless. Other services include Comedy Central, ESPN Mobile, FOX Mobile, MTV: Music Television, NBC2Go, NBC News2Go and Nickelodeon.
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| Ratings & Research |
Branding increases pricing consumers
willing to pay for Surround Sound
 Among consumers who indicate they are highly interested in having a premium surround sound system in their next vehicle, more than 80% are willing to pay twice the average market price for a branded system, according to the J.D. Power and Associates 2007 U.S. Automotive Emerging Technologies Study. The study is designed to measure consumer familiarity, interest and purchase intent for emerging automotive technologies both before and after an estimated market value is revealed. The study finds that the majority of consumers who are highly interested in premium surround sound are willing to pay an average of 1,000 for a branded system, which is twice the suggested market price of 500. In general, interest in audio-related features is high among consumers, with 60% saying they are interested in a system capable of playing multiple audio formats. Additionally, at a market price of 100 dollars, 50% of consumers are interested in a USB interface, and 43% are interested in an iPod interface at a slightly higher market price of 150. Among the features examined in the study, rear-seat entertainment system, in-vehicle Internet and wireless connectivity yield the largest gaps in interest-prior to the introduction of price-between younger consumers and older consumers. The study also finds that many safety-related technologies continue to garner higher interest levels from consumers. After the introduction of price, new-vehicle owners are most interested in two-stage smart airbags, which inflate in multiple stages, with less pressure and help to protect passengers from potential injuries associated with traditional (one-stage) airbags. Following two-stage smart airbags are backup assist and run-flat tires, which are also safety-related technologies. Once average market prices are revealed, the study finds that rear-seat entertainment systems (1,500) and collision mitigation systems (1,750) receive the lowest interest levels from consumers of all emerging technologies examined in the study. These features are also among the most expensive features examined in the study. Other technologies with low interest after the price is revealed are lane departure warning system and in-vehicle Internet.
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| Engineering Business Report TM |
Divergent mobile TV standards becoming the norm
Over the last few months, various market developments have spawned a new dynamic in the broadcast mobile TV marketplace. With the European Commission favoring DVB-H as the Pan-European broadcast mobile TV standard, AT&T abandoning Modeo and DVB-H in favor of MediaFLO, and Crown Castle's subsequent divestiture of Modeo's spectrum, the lines defining a strong regional base for various standards are becoming clear. IMS Research is forecasting that by 2011 the Americas region will account for 60% of worldwide FLO subscribers. Similarly, Europe is forecast to claim 61% of worldwide DVB-H / DVB-SH subscribers. Other standards, such as T-DMB and ISDB-T, are also expected to become increasingly region-specific between 2007 and 2011, with an increasing number of these standards' subscribers coming respectively from Korea and Japan. Said Anna Hunt, Research Director at IMS Research: "Operator and government decisions about which mobile TV standard to deploy in each country or region depend on a number of variables including spectrum availability, existing cellular and DTT infrastructure, market needs, and national political and economic interests. This has resulted in a situation where in certain regions, different standards gained a distinct advantage in building the consensus required to deploy a broadcast network, thereby gaining the first-mover advantage so key in a standards war."
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| Monday Morning Makers & Shakers |
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Transactions: 7/2/07-7/6/07
Only four stations changed hands this week (we're not counting two Georgia FMs parked by Clear Channel in the Aloha trust). Two television transactions accounted for the fairly respectable total for the week given the small volume. Radio was almost invisible. We hope the brokerage community at least enjoyed the fireworks.
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Total
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Total Deals
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4
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AMs
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1
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FMs
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1
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TVs
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2
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| Value |
34.631M
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| Complete Charts |
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Radio Transactions of the Week
Radio Training Networks tops slow week
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TV Transactions of the Week
Frontier gets a piece of Piedmont
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| Transactions |
7M WJJA-TV Milwaukee WI (Racine WI, Indy, Channel 49). 100% of TV-49 Inc., from Joel J. Kinlow to Channel 49 LLC, a subsidiary of Weigel Broadcasting Company (Howard Shapiro, Norman Shapiro, Fred Bishop). 250K escrow, balance in cash at closing. Duopoly with WDJT-TV (CBS, Channel 48). [File date 7/30/07.]
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| Stock Talk |
Confidence restored, at least for a day
Stock prices rose across the board on Friday after the Fed cut its discount rate to boost liquidity in the banking industry. Has that permanently calmed worries about the credit markets? We wait to see. The Dow Industrials surged 233 points, or 1.8%, to 13,079.
TV stocks joined in the advance. The biggest gainers were Entravision, up 6.8%, Lincoln National Group, up 6.6%, and Gray Television (common), up 4.4%.
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| Stocks |
Here's how stocks fared on Friday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Acme
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ACME
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3.95
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+0.05
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Lincoln Natl.
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LNC
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60.28
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+3.71
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Belo
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BLC
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17.00
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+0.48
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LIN TV
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TVL
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12.87
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-0.13
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| CBS CI. B |
CBS |
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30.25
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+0.94
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McGraw-Hill
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MHP
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49.14
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+0.29
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| CBS CI. A |
CBSa |
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30.29
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+1.01
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Media General
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MEG
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29.41
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+0.95
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Clear Channel
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CCU
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35.07
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+0.55
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Meredith
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MDP
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54.32
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+0.55
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Disney
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DIS
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32.68
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+0.10
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News Corp.
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NWS
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21.75
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+0.66
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Emmis
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EMMS
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6.27
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+0.07
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Nexstar
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NXST
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8.17
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-0.16
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Entravision
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EVC
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8.76
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+0.56
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Ion Media
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ION
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1.28
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+0.09
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| Equity Media |
EMDA |
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3.23 |
+0.31 |
Saga Commun.
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SGA
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8.15
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+0.20
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Fisher
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FSCI
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50.53
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+1.74
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SBS
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SBSA
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2.95
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+0.07
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Gannett
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GCI
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47.47
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+0.11
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Scripps
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SSP
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38.52
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-0.32
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Gen. Electric
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GE
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38.45
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+1.25
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Sinclair
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SBGI
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11.44
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-0.53
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| Google |
GOOG |
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500.04
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+8.52
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SWMX
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SWMX
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0.08
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unch
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Gray
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GTN
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9.10
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+0.38
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Time Warner
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TWX
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18.29
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+0.08
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Gray, C1. A
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GTNa
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8.81
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+0.21
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Tribune
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TRB
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25.67
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+0.26
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Hearst-Argyle
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HTV
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20.46
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+0.72
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Wash. Post
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WPO
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795.00
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+2.00
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Journal Comm.
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JRN
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11.68
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+0.32
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Young
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YBTVA
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2.10
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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
Google scores
Programming deal worth 10 million...
Media Markets & Money
Double deal in Mississippi
Grandfather is expecting to be undisturbed when the Meridian CBS affiliate is sold...
Engineering Business Report
Divergent mobile TV
Standards becoming the norm various market developments have spawned a new dynamic in mobile TV...
Ratings & Research
Branding increases
Pricing consumers willing to pay for Surround Sound...
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Stations for Sale
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The Exline Company
LPTVs - Central and Coastal CA
Call Andy McClure or Erick Steinberg
(415) 479-3484
Exline@pacbell.net
 Market your Stations For Sale
in our daily epapers.
Contact
June Barnes
jbarnes@rbr.com
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More News Headlines
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Sports sponsorships to hit 13.24 billion by 2011
While online and mobile channels are emerging as increasingly viable ways to deliver sports content, information and advertising to sports fans, traditional media make up the core of the sports marketing economy and will continue to grow through 2011. Using data from the IEG Sponsorship Report as a benchmark, eMarketer estimates that sports sponsorship spending in North America will rise to 13.24 billion by 2011, up from 8.94 billion in 2006. The IEG Sponsorship Report estimates that sports sponsorship spending in North America will represent two-thirds of the projected 14.93 billion that will be spent on all sponsorships in North America this year. Sports' share of this pie has not changed by more than a few percentage points since 2001, and IEG expects that this category will continue to dominate sponsorship spending well into the future. Of course, old-fashioned television advertising is another key driver of the sports economy. eMarketer estimates that broadcast TV, national cable and regional cable advertising revenues on US sports media will total 10 billion by 2011, up from 8.2 billion this year. Although traditional channels will continue to make up the lion's share of sports marketing spending, the Internet will grow at a faster rate than any other medium over the next five years, according to eMarketer estimates. By 2011, 10% of advertising revenues on sports media will accrue to sports sites, up from roughly 5% in 2006.
Tony Snow leaving the White House, too
White House press secretary Tony Snow will quit the job before the end of the Bush presidency because of financial pressures, he said. Snow, the former Fox News Radio syndicated host and pundit, has held the WH post for 16 months and is battling colon cancer. He is reportedly adamant that money, not cancer, is behind his decision. Political strategist Karl Rove announced last week that he would leave at the end of the month. Long-time Bush adviser Dan Bartlett left earlier this year and Andrew Card also departed as Bush's chief of staff. Snow reportedly makes 168,000 as an assistant to the President but made considerably more with Fox News Radio. Speaking on The Hugh Hewitt Show, the father-of-three said: "I've told people when my money runs out, then I've got to go." He said he had enjoyed his time in the role. Perhaps he will be offered a raise?
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RBR - Radio News
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A legal eagle-eye
view of AMs on FM
The FCC has been allowing signal-challenged AM stations to fill in holes in their coverage via the judicious use of FM translators on a case-by-case basis. It is looking to open that avenue up, and is seeking commentary. Womble Carlyle Sandridge & Rice attorney Peter Gutmann has summarized the ins and outs of this proceeding, which we will pass on intact below the click. As usual, Mr. Guttman's comments are not meant to be used as cage lining, paper airplanes or, more particularly, as the basis for actual litigation.
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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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NAB takes its case straight to Microsoft; WaPo weighs in
The failure of a Microsoft device intended to operate in the cracks between broadcast stations to pass muster at the FCC has only led to renewed requests for more tests. The NAB is asking for a common sense approach which means tabling this concept until the DTV conversion has been pulled off successfully. Details see TVBR
08/17/07 TVBR #161
Warchest report
The good news for the Republican Party is that its Republican National Committee (RNC) is mopping up the floor with its counterpart Democratic National Committee (DNC) so far this election cycle. And at the state and local level, it's maintaining a slight edge. But the Senate and House committee totals are so heavily skewed in favor of the Democrats that they are sitting on a slight lead in cash raised and a much larger lead in cash on hand. More color on financials see this special report page in TVBR
08/17/07 TVBR #161
Jacobs backs Regent dissidents
Included in the lawsuit that Regent Communications has filed against Riley Investment Management and SMH Capital are copies of faxed letters from Regent co-founder and former CEO Terry Jacobs joining in the request for a special shareholders meeting. Jacobs, however, is not named as a defendant. He did not return a call from RBR seeking comment on what he wants to see happen at the company he co-founded with current CEO Bill Stakelin. In his letter, Jacobs declares that he is the holder of 400,031 shares of Regent stock. His request is identical to that filed by Riley and investors represented by SMH calling for a special meeting on September 3rd to change the company's bylaws to increase the size of the board of directors and elect the four nominees proposed by Riley.
RBR observation: Not every major shareholder approached by Riley agreed to submit a demand for a special shareholders meeting. Regent's lawsuit says long-time director Jack Wyant, who owns over 8% of the company's stock, was solicited by John Ahn, one of the men Riley wants to place on the board, but that Wyant declined to join in the call for a special meeting.
08/17/07 RBR #161
Bancrofts hold the power
The board of directors at Dow Jones & Co. has given its OK to a five billion bucks buyout by News Corporation. Now the Bancroft family, with their 65% voting stake, will have their say. But if the family is split, Rupert Murdoch could still succeed in buying Dow Jones and the Wall Street Journal.
TVBR observation: News Corporation and representatives of the Bancrofts have drawn up a voting agreement which would pledge all Bancroft-owned shares to be voted for the sale to News Corporation. If that isn't accepted by the family, it will then become a numbers game to get to 51%. If about half of the shares held by the various Bancroft factions are voted in favor of the deal, that's about a third of the total votes. It would then take overwhelming approval by the remaining shareholders - and a heavy vote turnout - to get to that 51%. That is possible, but it would be much easier for Rupert Murdoch to pull this off if he can get the backing of the entire Bancroft clan. The Bancrofts will assemble today for a presentation of the offer, but no decision is expected until next week.
07/19/07 TVBR #140
Bill so FCC can fleece
a fleeting utterance
Jay Rockefeller (D-WV) is not going after violent content with S. 1780, the "Protecting Children from Indecent Programming Act." He and his co-sponsors, Ted Stevens (R-AK), Mark Pryor (D-AR) and Dan Inouye (D-HI), are merely trying to provide a legislative underpinning for the FCC to be able to drop the hammer on speakers of a fleeting expletive.
TVBR observation: Here's the scoop: This means the FCC would be able to bring out its heavy artillery, the full 325K punitive fine, if it so desires, assuming that this bill makes it through both houses of Congress and gets an autograph from the president. You never can tell on Capitol Hill, but this bill has the virtue of being extremely uncomplicated, and if Rockefeller can keep it free of excess amendment baggage.
07/18/07 TVBR #139
WCPO to lose its
newspaper twin sisters
Even with a grandfathered newspaper-TV crossownership situation, E.W. Scripps Co. says it can't keep its Cincinnati Post and Kentucky Post newspapers alive.
TVBR observation: Will this add to the weight of evidence in Washington for elimination of the crossownership rule? Perhaps not, since Scripps had a grandfathered crossownership and still couldn't keep the market's #2 daily newspaper alive. But it certainly shows again just how much trouble the newspaper business is facing. Daily and Weekly print is now in their final stage of heading to the elephant grave yard.
07/18/07 TVBR #139
Is private equity inconsistent
with public interest?
A pair of powerful US Reps are concerned about private equity companies, saying the term "suggests a financial management style focused on cutting costs, increasing revenues and the ultimate resale of the enterprise," which may conflict with the public interest obligations of FCC licensees. On the other hand, they note, such enterprises are somewhat insulated from Wall Street pressure to boost stock prices, which could be a plus. They want to know how the ins and outs of such companies when cutting deals on the FCC's turf.
07/17/07 TVBR #138
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