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Volume 23, Issue 168, Jim Carnegie, Editor & Publisher
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Tuesday Morning August 29th, 2006
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TV News ®
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EchoStar settles with affiliates for 100M
 Facing a federal court order that would require it to end delivery of distant network service to all subscribers, EchoStar has struck a 100 million bucks settlement with the ABC, NBC, CBS and Fox Affiliate Associations. Having previously settled with the ABC, NBC and CBS networks and O&O groups, along with many other station groups, EchoStar is just one step away from settling all litigation over distant signal delivery, with the Fox network and its O&O stations as the last holdouts. "EchoStar had hoped and expected to resolve the dispute with all remaining litigants, but late last week Fox Network declined EchoStar's universal settlement offer and pulled out of the discussions. Consequently, litigation with approximately 25 Fox owned-and-operated stations continues. Though unlikely, it is possible Fox's last minute tactic could derail the entire settlement and force EchoStar to seek legislation to protect its subscribers from disruption," EchoStar said yesterday. But legislation, if that is even a real possibility, takes time. EchoStar last week was turned down in its request for an emergency order from the US Supreme Court, so it is facing down the barrel of a Federal Appeals Court ruling that requires to end all delivery of distant network signals, even to subscribers who qualify under the law, because it had had been so egregious in violating the rules in the past. Assuming Fox comes to terms soon, the TV industry is clearly coming out on top. Not only is EchoStar paying 100 million to satisfy the nine-year-old legal battle over copyright, but it is committed to adding more local-to-local markets, going from 165 currently to 175 by the end of this year. "For the relatively small number of EchoStar's subscribers who must discontinue receiving distant network signals, the settlement provides plenty of time for subscribers to switch their viewing of network programming to their local network affiliates," said a joint statement by the four affiliate associations. NAB has supported the broadcasters throughout this battle and CEO David Rehr issued a statement urging the court to accept the settlement. "Broadcasters remain committed to minimizing disruption to viewers and NAB will work to ensure consumers are aware of their many options to receive the broadcast network programming," Rehr said.
TVBR observation: Gee, do you suppose Fox being the final holdout has anything to do with its parent company, News Corporation, being the controlling shareholder of EchoStar's only satellite TV competitor, DirecTV? Why not let Charlie Ergen squirm a little longer...
 Brian Williams snares Bush interview
With all of the networks preparing Hurricane Katrina anniversary observances for this week, NBC News anchor Brian Williams has managed to get an interview with President George W. Bush, whose administration's handling of the catastrophe was widely criticized, leading to the ouster of the man who then headed FEMA. Williams had anchored NBC's coverage of the Hurricane Katrina devastation from New Orleans a year ago. His interview with President Bush will air tonight on the "NBC Nightly News," with all or part of its being run on all platforms: NBC News Radio, MSNBC, CNBC, msnbc.com, Williams' blog and NBC Mobile.
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Public TV and radio face cuts in Alaska
Saying that program acquisition and other costs are growing faster than revenues, Alaska Public Media announced staff cuts and other reductions for KAKM Public Television and Alaska Public Radio News. Seven staffers are being let go and three vacant positions will not be filled. "Unfortunately, Alaska Public Media has had to employ cost-cutting measures regularly since the mid 1990s when state funding was reduced by three-quarters of a million. Until now, those changes have been all but invisible to the viewer and listener, but we no longer have that option," said Paul Stankavich, President and General Manager of Alaska Public Media. On the radio side, APRN has ceased production of "AK," the hour-long, weekly Alaskan lifestyle magazine program distributed to 23 public radio stations statewide. In TV, Stankavich said KAKM will begin using a service from PBS to handle much of its scheduling, reducing local control over the program schedule. Also, KAKM's "Ready To Learn" service which supplies books and educational outreach to adults with pre-school children at risk of school failure in Southcentral Alaska is in jeopardy of being terminated unless new funding can be found locally.
 CBS divestiture in San Antonio
a half-price sale
Wall Street may have been applauding CBS for the big multiple in its sale of KTSA-AM and KXJK-FM San Antonio to Tom Castro's Border Media Partners (8/24/06 RBR #165) - the second in what is expected to be a series of radio divestitures by CBS Corporation - but it turns out that it is a half-price sale as far as the seller is concerned. Infinity Broadcasting, which became CBS Radio, bought the two stations from Waterman Broadcasting in 2000 for 90 million. That was a stock sale, which explains why CBS now has a low basis in the stations as far as the tax man is concerned. Waterman got out of radio at an opportune time. It still owns TV stations in two markets.
TVBR observation: How things have changed. The previous sale was done at the peak of the market, just before values began to decline. Not only did Bernard Waterman get 90 million bucks, but he made Mel Karmazin structure the deal to be tax-free for the seller. According to the 4/3/2000 issue of RBR, Waterman got 90 million in Infinity stock for the stock of Waterman Broadcasting Corporation of Texas. We wonder if he had the good luck to sell before Infinity/Viacom/CBS began to slide with other media stocks. Back in 2000 KTFM-FM was a successful CHR station, at the time the #2 billing FM in the market, but it later fell on hard times and was re-launched as KXJK with a "Jack" format, so Castro bought it for stick value. KTSA is still a heritage AM News/Talker, but since CBS was never able to grow beyond two stations in the market, it was never able to spread the high overhead of that format across a larger cluster. Of course, both CBS CEO Les Moonves and CBS Radio CEO Joel Hollander can claim, truthfully, that neither was involved in the 90 million purchase. With no opportunity to grow and little cash flow from the market, selling for 45 million in 2006 looks like a good deal.
Rounding up the Emmys
 "Everybody should be so lucky to have their dreams come true," said Dick Clark as he received a special Emmy honoring him and the trail-blazing "American Bandstand" show. There was some controversy, with some affiliates upset that NBC went ahead with an opening for host Conan O'Brien based on the ABC plane crash survivor show "Lost" on the same day as a passenger airliner crash in Kentucky. And a few of the recipients got in digs at the networks who had already cancelled their winning shows. But if you went to bed before it was all finished, here is the complete list of winners. Photo: © Mike Blake/Reuters/Corbis
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| Wall Street Media Business Report TM |
Harris ups its dividend
Electronics equipment maker Harris Corporation, which has a large broadcast division, announced that its board of directors has increased the company's quarterly dividend by three cents to 11 cents per share. "Our financial performance for fiscal year 2006 was excellent, and we concluded the year with a record quarter for revenue, orders, and net income, and an improved outlook for each business segment," said CEO Howard Lance. The increased dividend will be paid September 15th to shareholders of record on September 6th.
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Ad Business Report TM
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 JCPenney to air live ads on MTV's Video Music Awards
J.C. Penney will air its first-ever live ad concept at this year's MTV Video Music Awards show on Thursday. Aimed at achieving a "deeper emotional connection and relevance to youth," the live ads build on JCPenney's exclusive retail sponsorship of the MTV VMAs. "We are looking to blur the edges between advertising and show content," said Michael Cape, JCPenney's VP/brand marketing. "By making the viewers feel more integrated into our advertisements we are able to achieve a deeper emotional connection with our key audience." The seamless movement from the awards show into the ad is driven by technology that allows a screen with the awards show to be broadcast live into a screen embedded into the ad. Panning in and out of different teens' and kids' bedrooms, JCPenney's two live ads will reference its current back to school ads, ultimately panning into the live MTV VMA show inside Radio City Music Hall. JCPenney will also feature all new spots during the MTV VMAs including ads for Junior's and Young Men's as well as the premiere of the Company's fall fashion ads. The live ads will culminate JCPenney's back to school campaign which included online content on MTV websites linked from the JCPenney brand experience sitelet, www.jcpenneybts.com and a VMA "Insider" contest. As part of the campaign, two winners were chosen through the JCPenney VMA "Insider" contest and will receive a trip to New York City and access to exclusive VMA events, including appearing on MTV and being a special guest at the MTV Video Music Awards where they will report on the parties, exclusive rehearsals, red carpet action and have a video diary of their experience posted on MTV Overdrive. JCPenney will feature highlights of the Insider contest during the red carpet pre-show. Other elements include radio, on the ground and in-store.
Google and eBay pact for "click to call" functionality
Internet giants Google and eBay announced a multi-year deal involving text-based advertising and "click-to-call" advertising functionality. Google will become the exclusive text-based ad provider for eBay outside the US. Yahoo struck a parallel deal in May to handle all of eBay's U.S. ads. The click-to-call functionality will leverage both Skype and Google Talk globally in each company's respective shopping and search platforms. They plan to begin testing both initiatives early next year. Google will become the exclusive provider of text-based advertising on eBay outside the US. Google advertisers will get access to eBay buyers and make it easier for them to find the products they seek. The click-to-call capability will allow a user to click on a link or icon within a product or service advertisement to initiate an Internet voice call to participating eBay merchants or Google advertisers directly from either company's respective sites, using Skype or Google Talk. Both Google, through its relationship with DMarc, and eBay, which has been chosen by the ad industry to build and test an online auction system for inventory, are getting more and more involved ad sales for radio & TV inventory.
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| Media Markets & Money TM |
Pikes Peak scaled, shuttered
A long family broadcasting odyssey in Colorado has come to an end. Broker Kalil & Co. reports that the Hoth family's Pikes Peak Broadcasting Company has closed on its 8.5 million sale of KRDO-FM Colorado Springs to Citadel Broadcasting, expanding the Citadel cluster in the market to six stations (5/8/06 TVBR #90). The Hoths had previously closed on the 45 million sale of their two TV stations in Colorado Springs and Grand Junction to News-Press & Gazette Company, along with KRDO-AM, where the Hoths launched their broadcasting empire in 1947.
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| Washington Media Business Report TM |
Sticks for sale, get 'em while they're hot
Actually, it figures to be very cold in Washington DC when FM Auction No. 68 kicks off. If everything stays on schedule, nine CPs will be on the block 1/10/07, but it is advisable not to get too excited. They are the nine leftovers from Auctions No. 37 and No. 62. Comments on the proposed auction are due at the Commission 9/6/06, and reply comments are due a week later. Here's what the FCC has in stock: Covelo CA, Class A on 96.9 mHz, opening bid 7.5K; Tecopa CA, Class A on 106.1 mHz, opening bid 1.5K; Cedar Key FL, Class A on 100.1 mHz, opening bid 1.5K; Perry FL, Class A on 93.5 mHz, opening bid 15K; Kihei HI, Class C2 on 107.5 mHz, opening bid 90K; Outlook MT, Class C on 105.7 mHz, opening bid 10K; Ocracoke NC, Class C1 on 92.7 mHz, opening bid 150K; Meyersdale PA, Class A on 98.5 mHz, opening bid 90K; Parowan UT, Class C2 on 107.9 mHz, opening bid 15K.
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| Cable Business Report TM |
 Cable attracting more campaign dollars
As campaign season ratchets up, television ad spend is on track to possibly break the 2002 record. But unlike previous midterm election years, candidates are devoting more money than ever to cable TV in an effort to target voters more precisely, reported the Wall Street Journal. Though most political ad dollars traditionally are spent after Labor Day, tight primaries and early spending on House, Senate and gubernatorial races have pushed local TV-ad spending above 311 million as of mid-August, up 45% from the same point in 2004 and more than three times as much as in 2002, according to TNS Media Intelligence. All political ad buys by mid-year, including issue ads, ballot initiatives and other issues, have pushed spending above 700 million nationally, according to the WSJ story. By the end of July, the Republican National Committee had raised a total of 176 million this election cycle, compared to the Democrats' 95 million, the story said. But Democrats are closer than usual to matching Republican fund-raising totals this year, and the Democratic Senatorial Campaign Committee has even surpassed its rival by 12 million, with 77 million total raised. National Cable Communications, the spot cable-ad firm jointly owned by Comcast, Cox Communications and Time Warner Cable, estimates about 200 million will be spent on local and national cable spots this cycle.
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| Entertainment Media Business Report TM |
 K-Fed heading to CSI
If you didn't get enough of Kevin Federline in his Fox appearance on the "Teen Choice Awards" show, he will be appearing soon on CBS. Federline, a/k/a Mr. Britney Spears, has been booked to appear in an upcoming episode of "CSI: Crime Scene Investigation" as an arrogant teenager who hassles the CSI team as they investigate a crime scene.
TVBR observation: Lets hope the reviews for K-Fed's acting abilities are better than they were for his rapping and dancing. At least, they can't be any worse. By the way, Federline's personal website doesn't yet have any bells and whistles, like a photo of him, but there is a note that if you live in the LA area please "hit-up Ryan Seacrest @ KIIS FM & Power 106" and try to get them to play Federline's debut single, "Lose Control."
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| Internet Media Business Report TM |
BET Interactive buys out original investment group
BET Networks announced that BET Interactive, its Internet operating unit, is making a cash buyout of its original investment group consisting of Microsoft, News Corp., Liberty Media and IAC/InterActive Corp and the former investors from 360HipHop.com, led by hip-hop mogul Russell Simmons. Financial terms were not disclosed. BET Networks Chairman and CEO Debra Lee along with Michael Pickrum, BET Interactive EVP/CPP, announced the transaction. BET.com first launched in 2000 with initial venture capital funding from its original investors. Since then, strategic partnerships and commitment to serving its core audience helped BET.com achieve success across all of its key metrics. For Viacom, the buyout of the BET Interactive shareholders is another step in its multiplatform strategy that is fueling all of its business units. "BET.com is the leading African-American website and a great example of our ability to move our entertainment brands onto digital platforms," said Tom Freston, President and CEO of Viacom. "We have great plans for BET.com and are thrilled to bring this leading media site completely under our roof." BET.com has registered more than 3.6 million users and generates 2.6 million in total monthly unique visitors (based on June 2006 comScore data).
 Children's programming alliance launching HisKids.net
HisKids.net, an alliance of leading Christian radio programs for children, will launch its interactive web site - www.HisKids.net - 9/2, providing numerous programs and music on-demand at one central site. "For the first time in history, children's Christian broadcasters are working together as never before to reach kids in new and innovative ways," said Dodd Morris, director of His Kids Radio (www.HisKidsRadio.net), a broadcast ministry of Cornerstone University and coordinating partner of the alliance. "The unique endeavor is designed to give listeners their favorite programs online, anytime." In addition to listening to partner programs and His Kids Radio on their computers, children and families also will be able to hear programs on-demand on a wireless internet radio that has been modified by the alliance, said Morris. "Anyone with high-speed wireless Internet (Wi-Fi) will have access to safe and appropriate children's music and programs in their home," he said. "The internet radio also can be set to receive programming from local stations and churches. This special radio will be offered through HisKids.net at a reasonable cost."
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| Ratings & Research |
 Azteca America joins Nielsen NTI
The number of national broadcast networks being reported in Nielsen's National Television Index (NTI), based on the National People Meter sample, continues to grow. The latest to sign up is Azteca America, which joins its Spanish language competitors Univision/TeleFutura and Telemundo. Effective immediately, Azteca America will be reported in the NTI, while continuing to be reported in the Nielsen Hispanic Television Index until September 2007, when NTI will become the sole Nielsen sample for both English and Spanish TV in the US. "The Hispanic consumer is growing more sophisticated and desirable. Through this agreement with Nielsen, we will now be able to demonstrate clearly the power of our audience in comparison to not only our Spanish-language competitors but the broader US marketplace as well," said Azteca America Chairman Luis J. Echarte.
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| Stock Talk |
Rising tide raises all ships
There was good news for Wall Street on Monday. Tropical Storm (formerly Hurricane) Ernesto turned eastward and appeared less likely to damage Gulf of Mexico oil rigs. Oil prices went down and stock prices went up. The Dow Industrials rose 68 points, or 0.6%, to 11,352.
TV stocks also gained. LIN rose 2.7% and Scripps gained 2.2%. There were no big decliners.
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| Stocks |
Here's how stocks fared on Monday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Acme
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ACME
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5.20
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-0.03
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LIN TV
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TVL
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6.75
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+0.18
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Belo
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BLC
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15.78
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+0.12
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McGraw-Hill
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MHP
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56.13
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-0.02
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| CBS CI. B |
CBS |
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28.94
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+0.48
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Media General
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MEG
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37.95
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+0.37
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| CBS CI. A |
CBSa |
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28.94
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+0.49
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Meredith
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MDP
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46.86
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+0.67
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Clear Channel
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CCU
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28.47
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unch
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News Corp.
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NWS
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19.56
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+0.11
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Disney
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DIS
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29.37
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+0.42
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Nexstar
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NXST
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4.47
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+0.12
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Emmis
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EMMS
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12.32
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+0.02
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NY Times
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NYT
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22.07
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-0.07
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Entravision
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EVC
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7.03
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+0.08
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Ion Media
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ION
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0.93
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unch
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Fisher
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FSCI
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40.49
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+0.44
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Saga Commun.
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SGA
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7.60
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+0.09
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Gannett
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GCI
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55.61
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+0.64
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SBS
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SBSA
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4.30
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unch
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Gen. Electric
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GE
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33.93
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+0.09
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Scripps
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SSP
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44.86
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+0.97
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Granite
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GBTVK
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0.14
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+0.02
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Sinclair
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SBGI
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7.56
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+0.05
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Gray
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GTN
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6.05
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+0.05
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Time Warner
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TWX
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16.50
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+0.08
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Gray, C1. A
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GTNa
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6.73
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-0.05
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Tribune
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TRB
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31.36
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-0.13
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Hearst-Argyle
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HTV
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22.22
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+0.21
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Univision
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UVN
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34.41
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+0.12
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Journal Comm.
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JRN
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10.85
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+0.14
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Wash. Post
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WPO
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753.96
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+4.77
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Lincoln Natl.
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LNC
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59.98
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+0.27
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Young
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YBTVA
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2.81
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+0.12
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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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TV Media Moves
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Walsh joins
McGraw-Hill
The McGraw-Hill Companies announced the appointment of Patricia Walsh as Vice President, Communications and Marketing, for its Information & Media (I&M) segment, which includes the TV group. She will be responsible for developing and managing communications and marketing programs to advance the segment's growth agenda and for internal communications. Walsh was previously a Sr. VP in the Corporate Branding group at Ruder Finn Inc.
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Below the Fold
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Wall Street Media
Business Report
Harris ups its dividend
Electronics equipment maker has increased their quarterly dividend...
Ad Business Report
JCPenney to air live ads
On MTV's Video Music Awards its first-ever live ad concept...
Cable Business Report
Attracting more campaign dollars
Candidates devoting more money to cable TV to target voters...
Entertainment Media
Business Report
K-Fed heading to CSI
Federline, a/k/a Mr. Britney Spears, booked for upcoming episode of CSI...
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More News Headlines
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CNN.com to replay
9/11 attacks coverage
Tim Warner's CNN will mark the 5th anniversary of the 9/11 attacks by replaying news coverage of that day's events online. CNN will show how events unfolded starting at 8:30 a.m., minutes before the first reports of an airplane hitting the World Trade Center. The feed will run in real time, as the network showed it five years ago, until midnight. For the day, CNN will make its online video service, CNN Pipeline, available for free.
More newspapers
on the auction block
Following the successful sale of Knight-Ridder and subsequent spin-offs by McClatchy, two more publicly traded newspaper companies are putting some of their papers up for sale. Journal Register Company announced that it has engaged Dirks, Van Essen & Murray to seek bids for the properties in its New England cluster: The Herald News and Taunton Daily Gazette in Fall River and Taunton, Massachusetts, respectively, and The Call, The Times and Kent County Daily Times in Woonsocket, Pawtucket and West Warwick, Rhode Island, respectively, and its weekly group, the Southern Rhode Island Newspaper Group in Wakefield, Rhode Island. Journal Register said the properties for sale have revenues of approximately 39.9 million and operating cash flow of approximately 8.9 million. Also yesterday, Dow Jones & Company said it was evaluating sales or swaps of its Ottaway community newspapers in Danbury, CT; Oneonta, NY; Plattsburg, NY; Santa Cruz, CA; Sunbury, PA; and Traverse City, MI. Proceeds would be used to pay down debt and sales would enable Dow Jones to utilize approximately 155 million of capital loss tax carry-forwards which expire December 31st.
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TVBR Radar 2006
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Television News you won't read any where else. TVBR--First, Accurate, and Independently Owned.
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Watchdog to FCC:
Start the remand over
The Minority Media & Telecommunications Council (MMTC) sees fatal flaws in the diversity portions of the FCC's look at the remanded media ownership rules. They would create "reversible error" which MMTC warns could lead to a second remand. "No one wants a second remand."
TVBR observation: What's going on at the FCC on this topic? The clock on comment submission is ticking toward the deadline, but none of the promised public forums have been scheduled, nor has the promised special ownership section of the FCC website made an appearance. In a meeting with reporters last month, Commissioner Robert McDowell said it was the hot topic at the FCC right now, but even to those of us who make a living watching for any crumb of information about the ownership FNPRM, you'd never know it. What news there has been is that there's no news. How much longer can that go on?
08/28/06 TVBR #167
Whew, lots of New
Clear Channel Chiefs
When the official announcement finally came out it confirmed much of what RBR reporting for many days. The managers of CC Radio's most important big markets are no longer overseeing smaller markets in their region, they have been given the new title of President & Market Manager.
RBR observation: Clearly Hogan is reconfiguring Clear Channel Radio to focus on the big bucks - trying to drive ratings and revenues in the largest markets. The 10 big market Pres./MMs are being told to focus exclusively on building ratings and revenues in the big bucks markets, while no longer having to worry about overseeing other markets - and, in most cases, fewer layers of management between them and Hogan. Will LESS layers of management produce MORE cash? One wag sent RBR an email questioning whether any layers of management had been eliminated. He or she noted that the old structure was Pres./CEO, SVP, RVP, me, while the new one is Pres./CEO, EVP, SVP, RVP, me. "Must be the new math," that CC manager concluded. Regardless, the real issue is the payoff. Clear Channel CEO Mark Mays has been telling Wall Street that his company is not like other radio companies and will ! continue to outgrow its peers. 2007 will be the test of that. Less is More will have completely lapped itself, the easy comps will be history and investors will be looking for the Mays boys and Hogan to deliver on their claim that Clear Channel can outperform the rest of the industry on a consistent basis. Last note as RBR continues to only hear that Clear Channel has a list of stations ready for sale, but this is unconfirmed. But if Clear Channel takes step as ABC and CBS in selling unwanted stations no matter the size it makes sense as it takes money to run any operation. RBR can not wait to see how Wall Street spins the happenings from last week and if May's words are true that Clear Channel is not like other radio companies.
08/28/06 RBR #167
TVB finds correlation between
spot spend and vehicle sales
A Television Bureau of Advertising analysis of 2Q '06 automotive ad spending data compiled by TNS Media Intelligence points to a strong correlation between spot TV ad spending and vehicle sales. TVB's analysis includes all three tiers of automotive spending: factory, dealer associations and individual dealers. Total details and stats in TVBR
08/24/06 TVBR #165
Calhoun jumps from GE
to take the challenge at VNU
Folks at Billboard, Radio & Records, Adweek, Nielsen Media Research and such have a new boss at VNU corporate headquarters. He has no media background, but David Calhoun is definitely a heavy-hitter as far as Wall Street is concerned.
TVBR observation: One does not leave a Vice Chairmanship at GE at the peak of one's working life to preside over a break-up, so this move makes it clear that the new owners are out to build VNU (or whatever new name it soon takes) and have brought in a superstar CEO to take command. Our sources say the new owners have confidence in Susan Whiting as CEO of Nielsen Media Research and they recently brought in publishing veteran Robert Krakoff to head up VNU Business Media USA, so Calhoun doesn't need a background in media to do his job - streamline operations, set strategy to grow each of the businesses and tell the company story to the financial community. Folks on Wall Street who were familiar with Calhoun at GE were shocked that he went to a company as small as VNU to be CEO, but he indicated to Bloomberg that he was looking for an entrepreneurial opportunity. We doubt that his family ! will need to relocate to The Netherlands. Look for VNU to move its corporate headquarters to New York and, once the heavy lifting has been accomplished, launch an IPO.
08/24/06 TVBR #165
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State Broadcast Association
President for one of the nation's top broadcast associations seeks a replacement for its retiring executive.
See TV Careers
Regional Account Executive
LIN Television West Michigan is looking for a Regional Sales professional for WOODTV8, WOTV 4 and WXSP TV. No Phone calls
See TV 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--Period.
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