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Volume 24, Issue 166, Jim Carnegie, Editor & Publisher
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Friday Morning August 24th, 2007
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TV News ®
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 Martin defends a la carte
to minority critics
FCC Chairman Kevin Martin fired off a letter defending his concept of cable a la carte program menus to seven representatives of minority organizations. Although minority and other niche programmers, not to mention cable operators, are opposed, Martin believes it will be ultimately beneficial to programmers and consumers. The organizations which fear damage to cable programming serving their constituencies include the Black Leadership Forum, Hispanic Federation, Labor Council for Latin American Advancement, league of United Latin American Citizens, National Black Chamber of Commerce, National Congress of Black Women and Hispanic Telecommunications and Technology Partnership. Martin trotted out his now familiar arguments. Cable subscribers who watch a limited number of channels could pick and choose the few they want and thus lower their bill. He added that Hispanic customers may benefit most of all, since they must get an entire menu of offerings when all they want are a handful of Spanish-language channels. He also said offering channels a la carte could actually increase diversity, as indy channels would be able to demonstrate their power by pointing to subscriber numbers of people who consciously made to decision to pick them. He noted the difficulty some new niche channels have getting picked up by cable systems in the first place.
TVBR observation: These arguments for a la carte get stranger all the time. Let's look closer. Hispanic customers aren't going to have to worry about getting English-language channels they don't want; if they live in an area where they number less than 10% of the total population, they can instead worry that they won't get any channels at all - if 90% of the market is by definition going to ignore Spanish language programming, the cable operator may well be forced to drop it from the menu. We also fail to see how a la carte makes it easier for a niche operation to establish itself; to the contrary, the time it takes to build an audience may kill it off before it gets a chance to take root. This whole issue is not about making it easier for minority and niche programming services, and it is not about saving consumers money. It's about edgy programming on certain cable channels, and the desire of some in government and the watchdog community to turn the FCC into the national nanny. Parents have blocking technology which can prevent children from watching undesirable channels. The FCC should push that and take the small cable programmers' word that a la carte will be devastating to their business model.
 Bloomberg says he's not in race
Michael Bloomberg told HDNet journalist Dan Rather that he is not running for president. He went so far as to admit he is unelectable. Of course, if you are familiar with politics in America, that immediately led to speculation that he is in fact getting ready to jump into the race as an independent next year, bringing his own personal warchest of up to 1B with him.
TVBR observation: Third party candidacies are notorious for purloining votes from one or the other mainstream party candidate, but a Bloomberg effect may perhaps be difficult to gauge in advance, since he has stints with both the Democratic and then the Republican parties on his resume. He recently withdrew from the latter party and declared himself an independent, one of the moves which led to widespread speculation about his third-party candidacy in the first place.
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New beverage category targeted by AGs
Energy drinks have become a hot category for beverage manufacturers and are known to be popular among younger demos. And watchdogs have long been concerned about the marketing of alcohol-containing malt beverages, sometimes known as malternatives or alcopops, which also tend to be consumed by younger demos and to trickle down into the hands of underage drinkers. A whole new category of drink, alcholic energy drinks which mix attributes of both have inspired a coalition of 29 state attorneys general to petition the Alcohol and Tobacco Tax and Trade Bureau to take a closer look, according to AdAge.com. They argue that the companies, which include Anheuser-Busch, Miller Brewing and Charge Beverages, are using the energy drink craze to get their products into the hands of young consumers. As evidence, the quote a tag-line from an A-B ad for its Bud Extra which tells its target audience "You can sleep when you're 30." The manufacturers are defending both the drinks and their marketing, which they say are aimed at legal age consumers only. A-B expressed surprise that their relatively low-alcohol content drinks were getting AG scrutiny when studies show much of the serious underage alcohol abuse involves distilled products.
 War supporters launch
major air campaign
A major advertising campaign is slated for a five week run with the goal of solidifying support for President George W. Bush's Iraq policies. The campaign is timed to the mid-September progress report due from Gen. David Petraeus, and will utilize a broad mix of media including television, cable, radio and the internet. Cash for the buy is coming from major conservative campaign donors, some with ties to Bush. However, many of the districts included in the campaign are home to Republican legislators, particularly moderate whose support for the Iraq was has been wavering. Iowa is one of the states included in the buy, meaning that there could be implications for the presidential race as well, with the state's lead-off caucuses likely scheduled for early January 2008 or even late December 2007. An antiwar group has analyzed the placement of the campaign and finds that they are also being run in locations where Republican legislators who support Bush policy have been under attack by advertising from antiwar organizations.
TVBR observation: This would appear to be the sort of political advertising that the Supreme Court just gave the thumbs up. It is certainly about a serious issue before the American public, but the ads are just as clearly being used with an eye to who is holding elective office in the targeted areas. This particular campaign would not have been restricted by McCain-Feingold, since it is not scheduled in the run-up to an election. But it provides a refresher in the kind of advertising that may be competing with candidate material in the weeks leading up to Election Day.
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| Wall Street Media Business Report TM |
Eye on ION
ION Media Networks says that its recapitalization and privatization is essentially completed. Citadel Investment Corp. and NBC Universal were instrumental in this feat, and ION says Citadel has "sponsored the Company's effort to go private by acquiring approximately 87% of the outstanding Class A common shares..." that it did not already own. Obligations are said to have been reduced by 187M, and the network has 115M in cash from Citadel to pursue its long-term strategic plan. "This transaction completes our corporate finance objectives, giving the Company financial runway and streamlined ownership under Citadel Investment Group," said Brandon Burgess, CEO of ION Media Networks. "Now we will turn our full attention to growing the business with programming and marketing initiatives for the ION Television Network, as well as nurturing our digital networks and mobile television plans."
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Ad Business Report TM
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Sharp launches branding campaign
Sharp Imaging and Information Company of America (SIICA) announced campaign that will highlight the company's OSA technology, under the theme "Work Without Limits," and position Sharp as an innovator in the document solution industry. SIICA, a division of Sharp Electronics Corporation, markets a full product suite of industry-leading workgroup and production Multifunctional Peripherals (MFPs). Utilizing Sharp OSA technology, businesses can maximize office productivity and efficiency. This concept will be introduced throughout the fall in 30-second versions of a commercial called "Work Without Limits." The concept is presented within the context of a typical business day, involving activities that can be streamlined through OSA technology on the Sharp MX MFP series, such as pulling up a quarterly report or finding a restaurant to take a client - all directly from the copier's LCD touch screen. Targeted to business executives and IT departments, and information systems professionals and purchasers, the campaign begins today when the commercials will be broadcast on high profile network and cable programming, including the MLB on FOX, The History Channel's "Modern Marvels," CNN and CNBC. An integrated campaign, "Work Without Limits" print ads will appear in news magazines, local business journals and several vertical publications in the government, law and health fields. An online component is also planned, with placements on business-oriented and vertical Web sites that will be rolled out in September.
 Roehm's suit against Wal-Mart dismissed in Michigan
Former Wal-Mart marketer Julie Roehm's lawsuit against the retailer has been dismissed from state court in Michigan. Judge Denise Langford Morris, sitting in Oakland County, Mich., dismissed the case, ruling it should be heard in Arkansas, where Wal-Mart is based. Judge Morris noted that Roehm had signed an agreement providing that any legal action relating to her employment would be brought in state or federal courts in Benton County, Arkansas. Roehm and her lawyers haven't yet decided whether to file there. The original claim alleged that Wal-Mart breached its contract when the company fired her. Roehm was dismissed last year because of an alleged number of ethical violations during her tenure as Wal-Mart SVP/Marketing Communications. Wal-Mart counterclaimed, accusing her of engaging in an improper relationship with a subordinate, Sean Womack. Roehm responded with a legal document accusing Wal-Mart CEO Lee Scott and other execs of ethical improprieties.
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| Media Business Report TM |
Idearc Media flips Miami Verizon Yellow Pages bilingual
The shape of things to come nationwide? Idearc Media, home to Superpages.com and publisher of the Verizon Yellow Pages, recently completed distribution of the Greater Miami Verizon Yellow Pages with an increased font size and brighter yellow paper for an easier to read directory. Areas with high Hispanic populations will receive a "flipped" bilingual directory with Spanish on one side and English on the other. Approximately 72% of recipients will receive the bilingual directory. The Spanish side of the bilingual directory includes a front of book Community Magazine.
In-game advertising on consoles
to reach 850 million by 2011
 The ability to dynamically serve advertising into video games that are connected to the Internet will create a growing opportunity. As gamers connect consoles to the Internet for online gaming and commerce, publishers and their respective console partners increasingly will look to reach them through advertising - resulting in a market that will grow from 80 million in 2007 to 852 million by 2011. ABI Research believes in-game advertising is just one of the new revenue streams that will come to fruition from the conversion of console gaming into connected gaming. Online downloading of entertainment content such as movies and TV shows will grow, as Sony and Microsoft nurture their respective video offerings. All three major console vendors will experience strong growth in casual game download revenues. ABI Research forecasts the casual and classic game download market for gaming consoles to grow tenfold from 93 million in 2007 to 1.1 billion by 2011. "At present, all three game console vendors are investing heavily in online gaming and commerce infrastructure," said the report. "While these investments are not profitable today, we expect mounting acceptance of the online channel as one of the primary mediums to get new content on the console, causing online gaming to become a significant contributor to revenues for all three vendors within 3 to 4 years."
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| Washington Media Business Report TM |
Michigan halfway to mid-January primary event
The Republican-controlled Michigan Senate has approved 1/15/08 as the date for some sort of primary event in that state, jumping it a week ahead of the 1/22/07 date when the New Hampshire primary was originally penciled onto the schedule. Such a move is expected to have repercussions further affecting the schedule, possibly moving the Iowa caucuses into late 2007. The Michigan House, controlled by Democrats, is still grappling with the date issue, and has not been able to agree if it wishes to hold an election or caucuses. The Democratic Party has sanctioned only four events for January, caucuses in Iowa and Nevada, and primaries in New Hampshire and South Carolina. DNC Chair Howard Dean has threatened severe sanctions, such as not counting results from any state that jumps in early. Although that can change, too, he expects the party's rules committee to stick to the schedule and enforce the sanctions.
TVBR observation: At least one candidate, Joe Biden (D-DE) is complaining that the rush to the front of the line is turning the primaries from a fair marketing of ideas - he called it a retail event - and into a battle of warchests. All we know is this is the craziest primary season we've ever witnessed, and we expect that is a viewpoint everyone paying even the slightest amount of attention would agree with. But hey, the January post-holiday blahs are always a tough sales time - if nothing else, broadcasters almost everywhere may get a serious boost from all this nonsense. Stay tuned.
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| Entertainment Media Business Report TM |
CBS, DIC, American Greetings present
programming for ''KEWLopolis"
CBS, DIC Entertainment (DIC) and American Greetings Properties (AGP) present "KEWLopolis on CBS," a new branded programming block set to premiere Saturday, Sept. 15, on the CBS Television Network. The three-hour, E/I-compliant programming block exclusive to broadcast television comprises six shows. The new animated programs include "Care Bears: Adventures in Care-A-Lot(tm)," "Sushi Pack(tm)," "Dino Squad(tm)" and "Strawberry Shortcake(tm)." The slate also includes returning shows "Cake(tm)," "Horseland(tm)," "Sabrina(tm)" and "Trollz." The KEWLopolis block will feature animated interstitials with "TinPo" characters, showcasing such themes as identifying problems and exploring solutions, overcoming adversity, the value of teamwork and seeing things from a different perspective. In addition, a web destination and official site, www.KEWLopolis.com, is being created for the launch of the block which will tie into all of the programming airing on the Saturday morning television block. The online community serves as a destination for Kids 6 - 12 with a portal to individual series websites. Additionally, the entertainment site features programming information, games, polls, news and more.
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| Ratings & Research |
Asia Pacific to surpass Europe as world's
largest regional automotive market
 Auto sales growth in the Asia Pacific region is projected to surpass Europe's by 2009, according to J.D. Power and Associates. By 2009, the Asia Pacific region is expected to net 23 million sales, compared with 22.7 million sales in Europe. The Asia Pacific region is already home to the world's second- and third- largest light-vehicle markets-China and Japan-and future sales will be bolstered by continued growth in China, plus expected expansion in India, Southeast Asia and Korea. Light-vehicle sales in the Asia Pacific region reached 9.7 million units in the first half of 2007, marking a 7.2% increase compared with the same period in 2006, according to J.D. Power and Associates. By the end of 2007, vehicle sales in the Asia Pacific region are projected to reach 19.3 million units and to account for 28.1% of global demand. By comparison, other regions throughout the world are projected to post only moderate gains for the year. Sales in Europe are expected to grow by 3% to reach 21.6 million units, while North America sales are expected to decrease by 0.04% to 19.2 million units. South America sales are projected to increase by 10.6% to 3.4 million units. Sales throughout the rest of the world are expected to grow by 5%.
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| Stock Talk |
Pretty much flat, too
Like the Dow yesterday, television stocks for the most part flatlined from Wednesday. Standouts included Gannett up 0.77; Google down 0.56 and Fisher down 1.79.
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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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3.94
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-0.02
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Lincoln Natl.
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LNC
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61.25
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+0.21
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Belo
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BLC
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17.65
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+0.10
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LIN TV
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TVL
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14.01
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-0.26
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| CBS CI. B |
CBS |
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31.24
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-0.15
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McGraw-Hill
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MHP
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50.35
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+0.18
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| CBS CI. A |
CBSa |
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31.22
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-0.15
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Media General
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MEG
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27.58
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+0.12
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Clear Channel
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CCU
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36.80
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-0.20
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Meredith
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MDP
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55.71
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+0.38
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Disney
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DIS
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33.16
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-0.41
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News Corp.
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NWS
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22.02
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+0.13
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Emmis
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EMMS
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6.03
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-0.04
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Nexstar
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NXST
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9.16
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+0.45
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Entravision
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EVC
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9.06
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-0.03
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Ion Media
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ION
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1.34
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+0.02
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| Equity Media |
EMDA |
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3.24 |
+0.09 |
Saga Commun.
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SGA
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7.60
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+0.24
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Fisher
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FSCI
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48.01
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-1.79
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SBS
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SBSA
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2.85
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-0.04
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Gannett
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GCI
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48.89
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+0.77
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Scripps
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SSP
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39.74
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+0.85
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Gen. Electric
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GE
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39.12
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-0.02
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Sinclair
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SBGI
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12.55
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+0.04
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| Google |
GOOG |
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512.19
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-0.56
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SWMX
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SWMX
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0.09
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unch
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Gray
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GTN
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8.54
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-0.37
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Time Warner
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TWX
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19.04
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+0.11
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Gray, C1. A
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GTNa
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8.77
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+0.17
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Tribune
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TRB
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28.94
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unch
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Hearst-Argyle
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HTV
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20.42
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+0.02
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Wash. Post
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WPO
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768.00
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-11.59
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Journal Comm.
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JRN
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9.95
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-0.14
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Young
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YBTVA
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2.00
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-0.01
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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
Here's another observation on the PPM situation
 In an earlier life, I had the responsibility over some very important transmitters. One was on a mountaintop, about 1,566 feet above the market, without a back-up. The next job was Chief Engineer in Chicago. I wore a pager as part of my job description. If something went wrong, I was told about it. Or so they thought. I wore that pager eight hours a day, inside the office where I worked, but it didn't make it out on a date. It didn't see much more than the top of my dresser at my apartment. The telephone worked nicely. Sometimes the batteries would wear down. So, when I saw the initial plans for PPM by Arbitron, I said to myself, "I hope they have someone picked with more seriousness than I had at 25!" Yet, these are the key demos everyone wants. To see the drop-off, over time, just shows that human nature is still in effect. And, I didn't have to mention that shower radio, either!
Mark Heller,
President and General Manager
WTRW Incorporated, WGBW Radio Station, Two Rivers WI
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Below the Fold
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Ad Business Report
Sharp launches
Branding campaign that will highlight the company's OSA technology, under the theme Work Without Limits...
Media Business Report
In-game advertising
On consoles to reach 850 million by 2011. In-game advertising is just 1 of the new revenue streams...
Washington Media Business Report
Michigan halfway
To mid-January primary event.1 candidate complaining calling it a retail event...
Ratings & Research
Asia Pacific (AP) to surpass
Europe as world's largest regional auto market. By 09, AP region is expected to net 23 million sales...
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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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International
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Radio up
across the pond
Word from The RadioCentre in London, and its division known locally as the Radio Advertising Bureau not only had a positive second quarter, they were able to record their moderately successful results with a curly number. Total revenues were up 3.4% according to Reuters. One problem faced by British broadcasters which is not a big factor in the US is competition with publicly-owned media. They're up against a dominant BBC. A spokesperson noted a similarity to the US situation, however, loss of business to the internet. The upswing was credited to advertisers rediscovering the cost effectiveness and efficiency of the medium.
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RBR - Radio News
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Arbitron re-releases Houston PPM carry rate data; notes from the PPM fly-in
After a major PPM carry rate data error being caught earlier this week (8/22/07 RBR #164), Arbitron reissued PPM Houston August Week 1 (7/26-8/1) Weeklies data yesterday, coinciding with the Arbitron PPM Fly-in conference. The re-release contained the missing data Arbitron said caused the precipitous drop-off or carry rates in that week. Here is the new data from Arbitron: "The Average Daily sample size for the weekly report--1,189. The Weekly (unified, 6 out of 7 day) sample size--880 (not 683!)." Arbitron notes that the real average weekly (unified, 6 day out of 7 day) sample for August Week 1 in Houston was 880, better than the equivalent in-tab numbers for the first two weeks in July (the survey weeks which straddled the July 4 holiday week) and the 3rd week in July. Arbitron also noted in the PPM Fly-in that the in-tab measure that really matters is Average Daily in-tab-the number that is used to calculate all the AQH ratings. The average weekly (unified, 6 day out of 7 day) in-tab sample are used to calculate only the weekly cumes. And as John Snyder demonstrated at the PPM Consultant Fly In, the cumes for an in-tab based on the partial sample that was improperly processed was just about the same as the full properly processed sample because of weighting. We note that weekly in-tab numbers are not the worst week ever, even though we are down another 3.3% from the previous week.
| See the new data releases here |
RBR observation: PPM is a better method, but they are asking broadcasters to pay more for it than diaries--and fund it. Arbitron didn't get a credit line to pay for this itself. They have great cash flow with no debt. They didn't build it first and then sell it to radio. They are asking radio fund it. As well, broadcasters don't own it. Let's at least get it right.
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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 focused on DTV transition
The National Association of Broadcasters' Jack Sander has fired off a letter the FCC Chairman Kevin Martin detailing the multipronged plans the NAB has to assure viewer awareness of the upcoming 2/17/09 conversion to digital television broadcasting. At risk are 19.6M over-air-only households, and another estimated 14.7M households with unconnected secondary over-air-only receivers.
TVBR observation: Viewer retention is a matter of simple survival for NAB members. Of course, the transition will not be perfect - there is a Murphy's Law that states that while you can make something foolproof, you can't make it damfoolproof. But fortunately, the ideal venue to reach analog television users is television, so this is one media campaign that should be perfectly targeted, and therefore, wildly successful.
08/23/07 TVBR #165
Clear Channel group deal
spins into court
Warren Zevon wrote about lawyers, guns and money. We hope it doesn't get to the point that guns become part of the equation when it comes to a pending deal for 187 Clear Channel stations, but money has already been deposited and the lawyers are entering both stage left and stage right.
TVBR observation: The much bigger deal, the multibillion dollar transaction to take Clear Channel private via a stock purchase by Mays family, Bain Capital and Thomas H. Lee Partners, has the oft-postponed shareholder vote on the calender for 9/25/07. Rampant speculation is that the last thing the company wants to do ahead of that is show weakness of any kind. That vote is already half a year behind it's originally-scheduled date of 3/21/07. This should be interesting. Stay tuned.
08/23/07 TVBR #165
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Sales Associate
A fast growing network radio company seeks a Sales Assistant for its Chicago office. The ability to multi-task and prioritize are paramount in this position, as is the willingness and desire to learn in a fast paced environment. Please send resumes with cover letter to: tfleming233@gmail.com
See Radio Careers
Hard finding that key person
to fill the important position at your organization? Media HeadHunters is the place that key media firms use to get results. See Media HeadHunters and get results with service.
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