TV News ®

Hearst-Argyle to consider buyout offer
Hearst-Argyle Television’s board of directors has named two independent directors to a special committee to consider an offer by Hearst Corporation to buy out Hearst-Argyle’s public shareholders for 600 million bucks, or 23.50 per share. Hearst-Argyle’s stock price has shot up above that in anticipation of a higher bid. Serving on the special committee are David Pulver, who has been a director of Hearst-Argyle Television and a predecessor company, Argyle Television, since 1994, and who is President of Cornerstone Capital Inc., a private investment firm; and Caroline L. Williams, a director of Hearst-Argyle Television and of Argyle Television, since 1994, and who is Director of Shareholder Activities for The Nathan Cummings Foundation, for which she previously served as Chief Financial and Investment Officer. The formal announcement was careful to note that the Hearst Corporation offer was not made pursuant to any agreement with Hearst-Argyle. “If Hearst Corporation does commence a tender offer, then within 10 business days following such commencement, Hearst-Argyle Television will advise stockholders of its position regarding the offer,” the statement said.

FCC sets DTV education workshop
Stepping up efforts to inform all segments of the US population to the shut-down of analog television signals in 2009 and final transition to Digital TV, the FCC has set the preliminary agenda for an all day workshop on Wednesday, September 26th. Organizations representing a broad range of consumers and other stakeholders will be represented, including those who represent senior citizens, low-income consumers, non-English speakers, people with disabilities, tribes, and public interest organizations working on behalf of underserved customers or those living in rural areas, the Commission said. FCC Chairman Kevin Martin is scheduled to kick off the day with his remarks. The first panel will have government (FCC & NTIA) and industry representatives (NAB, NCTA, Consumer Electronics Association & Consumer Electronics Retailers Coalition) explaining their roles in the DTV transition. The rest of the day will feature representatives of various consumer interest and advocacy groups. “The purpose of the workshop is to provide an opportunity for all interested parties to jointly discuss the challenges associated with the upcoming transition and explore ways to develop coordinated consumer education activities,” the FCC said.

TVBR observation: Much remains to be done by that February 17, 2009 deadline. TV stations, both commercial and non-commercial, have a lot at stake, but their public information and education efforts alone won’t be enough. We are heartened to lately see the FCC cracking down on retailers who’ve continued to sell analog sets without warnings that they could become useless in 2009. Now we need to see DTV converter boxes out in the marketplace so that people can actually get them and start watching digital stations. Our great hope is that 2/17/09 will prove to be as minor an event as Y2K proved to be (only because of lots of advance work), but we have fears that will not be the case.

CBS and Washington Post team up online
CBSNews.com and washingtonpost.com announced a content-sharing partnership for coverage of the 2008 Presidential campaigns. The collaboration is limited to their respective Internet sites, but the Washington Post site will get video from CBS News correspondents. “Our goal is to be the premier political information destination and to bring the best of the web to our readers, including the likes of Bob Schieffer, Jeff Greenfield and others,” said Michael Sims, Vice President, Editorial, CBSNews.com. According to Jim Brady, Executive Editor of washingtonpost.com, “The history and strength of both organizations’ political reporting offers the unique opportunity for the Washington Post’s renowned reporters and columnists to collaborate with colleagues from CBS News to further enhance the unparalleled coverage that our audiences expect.”
Under the terms of the agreement, CBSNews.com and washingtonpost.com will share political content throughout the duration of the 2008 Presidential campaign. washingtonpost.com will feature video coverage from CBS News correspondents, producers and off-air reporters while news, analysis and commentary from the Washington Post’s political reporters and columnists will appear on CBSNews.com. Each site will promote the partnership by linking to the other’s political coverage. The partnership will provide readers the opportunity to engage with each news organization’s reporters and correspondents, who will jointly participate in live chats and other online activities.

Ion reports successful test for single frequency network transmission
Ion Media Networks announced the completion of successful testing of the Richland Towers DTV single frequency network (“SFN”) distributed transmission (“DTx”) network for the NYC market. The initiative demonstrated that single-frequency networks offer digital signal coverage equal or superior to the traditional “one-big-tower” transmission approach. “Single frequency networks” or “distributed transmission” refers to an approach where a number of low-power transmitters are utilized to carry all television signals, each on its consistent allocated frequency, to all areas within a marketplace, including those areas that may have topographical obstacles preventing it from being able to receive the digital TV signals from a master tower. Such a group of transmission sites typically includes low power technology making it less costly to build and operate than the traditional approach of erecting one major transmission antenna per market. The system presents the potential for utilization of broadcasters’ full digital bandwidth and significant opportunities for mobile digital television broadcasting.
The Richland DTx single frequency network consists of a main, high-powered “hub” site in West Orange, N.J., providing coverage to most of the market area; and five low-power DTxT sites that serve the remainder of the area. Multiple rounds of testing were conducted at the main West Orange site and a transmitter site at 4 Times Square in Manhattan. The test teams obtained field measurements from the two sites and compared them to measurements taken from five stations transmitting from the Empire State Building. Field strength, signal quality, reception and all other parameters for the DTx network were comparable to or better than those from the Empire State stations. The test results are being made available to other interested broadcasters. In anticipation of the 2009 switchover to digital television, the Richland Towers tests provide important proof of concept for capabilities and value of the DTx network for broadcasters. In addition, the network is decentralized with key sites located outside the midtown and downtown Manhattan areas, and provides potential for expansion.

NBC Universal adds overseas
NBC Universal has agreed to acquire Sparrowhawk Holdings and its global portfolio of pay TV channels, including the non-US international Hallmark Channels, from Providence Equity Partners, 3i and management shareholders. Financial terms were not disclosed for the deal, under which NBC Universal will acquire the 18 feeds of the international Hallmark Channels, which air across 152 territories to more than 60 million subscribers in the UK, Europe, the Middle East, Africa, Australia, Latin America and Asia. "This is a perfect strategic investment for NBC Universal and illustrates our commitment to growing our company internationally. It is another step, among several we will take in the next year, to transform our entire portfolio, with an eye toward high-growth areas,” said NBC Universal President and CEO Jeff Zucker.

Ad Business Report TM

Sears and Camaro achieve highest product placement in June
The Sears placement on ABC’s “Extreme Makeover Home Edition” had the top product placement score on broadcast network television in June, The Nielsen Company reported in a new metric based on both brand recognition and positive feeling. According to Nielsen’s product placement measurement service, 58.1% of the “Extreme Makeover Home Edition” audience not only were able to recognize the presence of the Sears store brand during the program but also came away with a positive feeling for the brand as a result of that exposure. Among the cable network television programs currently being monitored by Nielsen’s product placement service, TLC’s “Rides” had the top product placement with a 63.0% audience recognition and positive feeling score for the Chevrolet Camaro brand. Place*Views, Nielsen’s enhanced product placement monitoring application, now provides scores on the impact that product placements have on television audiences, by episode and by brand.

Harlem Globetrotters tap WongDoody
To create excitement for their upcoming 2008 “Magic As Ever” World Tour, the Harlem Globetrotters have named WongDoody as the team’s creative agency of record. WongDoody will handle all of the Globetrotters’ creative efforts for the 2008 Tour, including TV, print, radio, Internet and outdoor advertising. New Globetrotters CEO Kurt Schneider and WongDoody Chairman/ Creative Director Tracy Wong will renew a relationship developed when Schneider ran marketing at FOX Sports Net.

H-P launches 300 million effort around new printers
Hewlett-Packard plans to launch a slew of new printers and web-based printing services, in a move to keep the sales of the company's printing division growing as its customers increasingly gravitate to the Web. Along with a 300 million ad campaign, WSJ is reporting H-P is introducing products such as a device with a LCD that allows users to insert a memory card and print pictures without a PC, as well as new printers for small and midsize businesses, and large-format all-in-one printers that can also scan. H-P is also teaming up with Yahoo to create a printing toolbar that gives tips on printing and creating projects.

AT&T's 2 billion dollar media account in review
AT&T has put its 2.3 billion buying and planning account in review. In a statement, AT&T said it will be issuing RFPs to incumbent agencies, which include OMD, Mediaedge:cia and GSD&M. It is expected to be completed at year's end. "This move will consolidate all of AT&T's media planning and buying at one agency and is part of the company's ongoing efforts to maximize efficiencies created, in part, by AT&T's acquisition of BellSouth at the end of last year," AT&T said in a statement. "AT&T is pleased with the work of all of its agencies to date." We can only assume the spending will increase dramatically, with the full acquisition Cingular Wireless. Cingular, previously a joint property of AT&T and BellSouth, now belongs exclusively to AT&T. Cingular spent 1.3 billion in 2005 and 1 billion through September 2006, per Nielsen Monitor-Plus. BellSouth spent 130 million in 2005 and 110 million through September 2006. The overall budget for AT&T, BellSouth and Cingular Wireless was reportedly 3.35 billion in 2006.

Scripps puts Albuquerque paper on the auction block
Albuquerque, NM is among the shrinking number of cities that still has two daily newspapers – but perhaps not for long. E.W. Scripps Company says it is seeking a buyer for the Albuquerque Tribune, and if no buyer is found, it will shut down the paper. The investment bankers at Broadwater & Associates have been retained to shop the afternoon daily, which publishes Monday through Saturday. “"The Albuquerque Tribune, with its outstanding reputation for journalistic excellence, has been enlightening readers in New Mexico for more than 80 years. Unfortunately, readers in Albuquerque, as in nearly all cities across America, are choosing other media alternatives to afternoon newspapers," said Rich Boehne, Executive VP and COO for Scripps, who flew to New Mexico to met with Tribune staff members.
As it stands, the Tribune is in the nation’s longest-running joint operating agreement, dating back to 1933, with the morning Albuquerque Journal, but that JOA will be terminated with the sale. The Tribune has a daily paid circulation of about 11,000 copies compared with The Journal's paid circulation of 106,000 daily and 145,000 Sunday. Paid circulation of the afternoon Tribune, which stood at 42,000 in 1988, has been in persistent decline for more than two decades, Scripps said.

Talent scores for NBC
The finale of “America’s Got Talent,” won by singing ventriloquist Terry Fator, was the most watched show on television last week and gave NBC a win in the key 18-49 demo. CBS claimed the next four spots with “CSI,” “Without a Trace,” “60 Minutes” and “Two and a Half Men.” After NBC in 18-49, it was CBS, Fox, ABC, Univision, CW, Telemundo, a tie by TeleFutura and MyNetworkTV, and another tie by Azteca America and Ion. In Household ratings, the win went to CBS, followed by NBC, Fox and ABC in a tie, Univision, CW, Telemundo, Ion and TeleFutura tied, and Azteca America.

Baby Boomers and Echo Boomers predict a cashless society
According to new data released by Visa USA, an overwhelming majority of both Baby Boomers (79%) and Echo Boomers (74%) believe that our society will one day operate without cash and checks and will conduct all payment transactions electronically. Visa estimates by the year 2015, Echo Boomers and Baby Boomers will account for more than 50% of total consumer spending, 2.45 trillion and 4.6 trillion respectively. Currently, industry estimates show that Echo Boomers are responsible for 0.4 trillion in annual spending compared to 3.8 trillion by Baby Boomers. Findings reveal that younger consumers between the ages of 18-28 are defying conventional wisdom when it comes to stereotypes often associated with their generation.
According to the study, Echo Boomers are demonstrating a more practical and mature approach to spending beyond their years, they view spending as a way to give back to others, they prefer retail categories that help relieve feeling time-stretched and look to older generations for buying cues. Nearly half of Echo Boomers (48%) describe themselves as savers. Even at their young age, more than 70% of Echo Boomers are concerned about having enough money for retirement, a degree of concern similar to the about-to-retire Baby Boomers (78%). 88% of Echo Boomers like to buy things for others more often than buying things just for themselves. Echo Boomers cited dining out at restaurants as their second largest expense (45%), after housing costs (69%) in a given month. Echo Boomers said their spouses (70%), children (63%) and parents (48%) had the most influence on their spending. 37% of Echo Boomers believe older generations have an influence on their spending behavior.