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Volume 23, Issue 170, Jim Carnegie, Editor & Publisher
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Thursday Morning August 31st, 2006
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TV News ®
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 General Motors drops "Survivor"
General Motors, after 14 cycles of CBS's reality hit "Survivor," is pulling advertising for the show's upcoming season, filmed in the Cook Islands. While many assume the decision is based on CBS's controversial decision to divide the next Survivor tribes by race, Dennis Donlin, President/GM Planworks, tells us it was really about new directions in how they want to pursue branded entertainment. "The decision was made before we knew about the format and was based on brand objectives (We are working to have more discreet territories for each division and the commitment level of Survivor required us to run a mix of all the divisions in the same show to cover the commitment) combined with the logistical difficulties/cost of integrating a product the size of a car into a shoot on very remote locations." Ryndee Carnee, top GM spokesperson, tells TVBR the decision was made about three months ago and concurs, it was all about branding: "The way we look at branded entertainment these days is very different than we did when we were present on the first season of Survivor. The goal now is to have our cars and trucks fully integrated into a story line for either a TV program or a film, so that the car or truck almost becomes a character in the [content]. The format of the Survivor show, because these are people who are on an island, basically, it's really hard to do that. So what our needs and goals were around branded entertainment don't fit really as well with the format of the program as they might have in the past when we were just trying to get exposure for any given brand or product. So that's a big part of why we opted not to advertise on Survivor this far."
TVBR observation: Nonetheless, the timing is interesting: NYC City Council members 8/28 held a protest in front of CBS HQ and reportedly were planning to write letters to the show's sponsors. If more sponsors pull out, we will assume those letters may have been sent. No advertiser wants to get on a boycott list. However, in this case, it may just be coincidence. Donlin and Carnee made perfect sense in their explanations for the pullout. In this entire GM and Survivor issue the key word every broadcaster better become familiar with is called Branding. Ryndee Carnee’s statement sums up how the business will take shape in marketing of products and advertising today. Branding is the key.
 Shine on MyNetworkTV
Twentieth Television and UK-based Shine Ltd. are bringing "My Games Fever" to the US, with all Fox-owned MyNetworkTV stations as the first to carry the interactive game show this December. The show, based on the popular UK genre of participation TV, consists of multiple entertaining games that embrace home viewer participation through text messaging and online interaction and will be presented commercial-free. "This proven television genre has enjoyed huge success in the UK and the time has come to bring it to the United States. 'My Games Fever's' high-energy, inclusive entertainment will appeal across all audience demographics and we are excited to provide this cutting-edge and emerging genre to American viewers," said Paul Buccieri, President, Programming, Twentieth Television. The program will air live weekdays, 1-3 p.m. ET. "My Games Fever" will be executive produced by Debbie Mason, a specialist in participation television, responsible for the launch and the running of some of the UK's leading channels and show formats in the genre. Founded in 2001 by Elisabeth Murdoch (yes, the last name should sound familiar - she is Rupert's daughter) and based in London, Shine is one of the UK's fastest growing independent production companies.
Maybe it was indecent...maybe it wasn't
Admitting in court that it failed to follow its own processes, the FCC has asked a federal appeals court to send an indecency lawsuit back to the Commission for further review. There were no fines associated with those four particular March 15th indecency orders, although they came out the same day as a raft of heavy fines (3/16/06 TVBR #53), but because they could not be further appealed within the FCC processes, ABC, NBC, CBS, Fox and their affiliate associations jumped on them as the vehicle to get the FCC into court in an attempt to have the Commission's entire indecency enforcement ruled unconstitutional. In court this week, the attorney for the FCC asked for the matter to be remanded to the Commission for two months. He admitted that the FCC had failed to follow its own procedures because it did not seek responses from the broadcasters on whether or not the shows were indecent. There's no indication how soon the three-judge panel will rule on the FCC's remand request.
TVBR observation: Letting the Commission have another crack at this will be a total waste of everyone's time. One more case - or perhaps as many as four - of the FCC reversing itself on whether or not something is indecent will just add to the mess it has already created. No one, least of all anyone at the FCC, knows what the Commission's indecency standard is. The only way to fix this completely-broken regulatory machine is to have the courts order the FCC to devise clear guidelines on indecency that comply with the law and then stick to them - or rule that the broadcast indecency law is altogether unconstitutional.
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CBS faces Utah license challenge over indecency
Several members of the Utah chapter of the Parents Television Council (PTC) have filed petitions with the FCC opposing license renewal for KUTV-TV, the CBS O&O in Salt Lake City. The petitions claim the station has repeatedly aired indecent programming. Specifically, they cite an episode "Without a Trace," for which the FCC has proposed fines related to a teen orgy scene. The program aired after the 10 pm safe harbor began in some time zones, but 9:00-10:00 pm in the Mountain Time Zone, where Salt Lake City is located. Thus, KUTV is one of the stations facing a fine for the show. And, of course, the petitions cited the Super Bowl flash by Janet Jackson. CBS is appealing that indecency fine in court. "Utah has well-known community standards of decency. In fact, 26 local governments from all over Utah have passed resolutions calling on their citizens and businesses, and all public and private institutions, to adopt family-friendly and child-appropriate standards. I believe in this local movement and believe that these standards were clearly violated during the Super Bowl and continue to be violated on shows like 'Without a Trace'," said Andrea Gritton, one of the petitioners.
 Rupert dials up
It began with newspapers, grew into TV, cable, radio and satellite TV. Recently the ever-expanding empire of Rupert Murdoch has focused on the Internet. And now a new frontier: News Corporation is taking aim at the phone business. News Corporation is conducting its first experiment in Voice over Internet Protocol (VoIP) phone service via a DirecTV venture which has partnered with a VoIP company to target apartment buildings and gated communities for phone service. Vistula Communications announced that its V-Cube platform will be used by DirecPath for a pilot program. DirecPath is a venture recently formed by Hicks Holdings LLC and DirecTV to provide bundled DirecTV programming, broadband voice and data and security services to multiple dwelling unit (MDU) and gated-community owners across the United States.
Adelstein and Copps in LA today
If you guessed they were on the road to hear public comments on media consolidation, you have obviously been paying attention to the goings on inside the Beltway the past few years. Commissioners Jonathan Adelstein and Michael Copps, the two Democrats on the Republican-dominated FCC, are in LA today for a public hearing not sanctioned by the Commission. You may have also guessed that no one is likely to speak up to defend ownership deregulation and call for more of it. Former Rep. Esteban Torres, Chairman of the National Latino Media Council, will open the session at the University of Southern California. Alex Nogales, President and CEO of the National Hispanic Media Media Coalition, will be moderating both panels. The first panel, titled "Minority Ownership and the FCC Public Interest Obligations," includes Dean Marty Kaplan of the Annenberg School of Communications; Mona Morgan, Executive Director of the Writers Guild of America, East; and former FCC Commissioner Gloria Tristani, now President of the Benton Foundation. The second panel, "Diversity in Entertainment," includes Patti Miller, Vice President of Children Now; independent producer Moctesuma Esparza; Robert Mendez, Sr. VP of Diversity for Disney - ABC Television Group; and John Connolly, President, AFTRA.
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Ad Business Report TM
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 "BicyTaxi" gaining steam;
to be at Ad Week
New Yorkers have seen them cycling around Manhattan for the past several months and now they're at the US Open. The 50-unit fleet of BicyTaxi mobility vehicles are turning heads and changing the face of outdoor advertising -- being utilized for branding and event marketing. Since BicyTaxi came to New York in June, the company has created mobile ads for a growing number of companies and organizations while adding an environmentally-friendly means of transportation for tourists and businesspersons. Steve Blidner, president and co-owner of BicyTaxi U.S., said the "advertising in motion concept" originated in Europe and has spread to more than 35 international locations. Global brands such as Sony, Nike, MasterCard and T-Mobile were among the first to jump on the advertising bandwagon in Germany, Europe, Asia and Australia. Based on the company's immediate success in New York, Blidner said the current 50-unit fleet will grow to 100 units by September. Additional units are available upon demand. Blidner said that he encourages anyone with an upcoming event -- especially those held at the Jacob K. Javitz Convention Center -- to give BicyTaxi a call at least 60 days prior to their event. Advertising wraps can be completed with an approximate 14-day turn-around.
TrashTalk! Outdoor (www.trashtalkoutdoor.com), a New York-based company that assists in selling unique and nontraditional outdoor marketing on mobile mediums, has been assisting BicyTaxi in securing advertising among its customer base. Recently the company secured six BicyTaxi vehicles for two weeks during the US Open as a free shuttle service with portable DVD players in the partitions, and soon will deploy additional units for a large national bank to kick off a credit-card campaign targeting college students at 20 Universities across the country. Campaigns for Ad Week (September 25 -29 in New York) and other high-profile venues are being executed. Melissa Garofoli, vice president of Cleveland-based Silver Screen Media, partnered with BicyTaxi to wrap vehicles promoting the need for clean air. Silver Screen Media provides a one-stop shop for movie theatre advertising and promotional trailers.
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| Media Business Report TM |
 Rashid Tobaccowala,
chief innovation officer of Publicis Groupe Media (PGM) and Denuo CEO
Publicis Groupe's Denuo unit is a new strategic initiative designed to anticipate and exploit the rapidly changing digital, interactive and mobile communication environment. Denuo is a standalone business but not based on any pre-existing industry model. Denuo functions as a strategic consultant, an inventor of solutions and as an investor in partnerships. The company is also venturing with a variety of startups including Brightcove, an open Internet TV service, and Shadow TV, a streaming video service that provides access to live and archived television content via the web. Denuom meaning "afresh," "anew" in Latin, is led by Rishad and has offices in Chicago and NYC.
How is Denuo unique?
It's basically a unit of the Publicis Groupe which is dedicated to helping its clients get to the future first by making tomorrow tangible today. We do so by combining skills of strategy with skills of identifying and honing new opportunities and partners, with creating great products and ideas that can be taken to market. The way we brought our company together is we brought in skill sets that I had incubated previously. We had a gaming unit called Play and a word-of-mouth unit which used to be called Reverb. We're working with lots of different companies that span from the world of traditional companies like the Kellogg's and the GM's of the world, to new start up companies like Brightcove. We're talking to about two-dozen companies right now to help them identify and hone their products, and at the same time finding how they can solve some of the needs that our clients have.
What future do you see for ROI measurement?
The science will be increasingly return on objective because that's what we say-ROO rather than ROI. What's your return of objective? Return on investment basically makes it sound like a cost-cutting exercise. Return on objective is what are you trying to achieve? I think the big challenge is how do we measure outcomes vs. inputs? How do we measure holistically and integrate across different contact points?
Tomorrow we ask:
In 2009, analog TV spectrum will be surrendered. How might this change things?
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| Washington Media Business Report TM |
 Tomlinson under fire...again
Three Democrats on Capitol Hill are calling for Ken Tomlinson to be fired as Chairman of the Broadcasting Board of Governors, after an internal State Department investigation concluded that he put a friend on the government payroll and used government resources - apparently his office telephone line - to run his personal horse racing business. According to the State Department report, the Justice Department reviewed its findings and decided not to implement a criminal investigation. But Democrats smell blood in the water, since Tomlinson is a long-time associate of White House political advisor Karl Rove. Sen. Chris Dodd (D-CT) and Reps. Tom Lantos (D-CA) and Howard Berman (D-CA) have sent President Bush a letter demanding that he fire Tomlinson as head of the Broadcasting Board of Governors, which oversees international government broadcasting services (VOA, Radio and TV Marti, Radio Free Europe and Radio Liberty). Tomlinson was previously Chairman of the Corporation for Public Broadcasting, but stepped down amid allegations of partisanship.
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| Cable Business Report TM |
Cable residential revenue to reach 119.8 billion by 2015
A new study from Kagan Research reports that in the second half of 2006 cable operators are riding a wave of investor optimism related to the accelerating rollout of Internet Protocol (IP) voice services and the accompanying halo effect on basic subscriber retention and overall revenue per subscriber.
Highlights:
-- Cable IP voice homes marketed will leap from 31.2 mil. at the end of 2005 to an estimated 68.7 mil. by year-end 2006;
-- Cable IP voice subs have gone from 600K at year-end 2004 to 2.6 mil. at year-end 2005, and are forecast to jump to 6.5 mil. by year-end 2006.
-- High-speed data penetration of basic video subscribers hit 39% at year-end 2005 (vs. 32% at year-end 2004) and is expected to grow to 45% by year-end 2006.
-- Digital cable subs now surpass 30 mil., based on a projected increase from 28.6 mil. at year-end 2005 to 31.6 mil. at year-end 2006.
-- In 2006, total residential revenue is expected to grow 9.6% to $68.2 bil., at an average ARPU of $87.04 (vs. the $79.42 of 2005).
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| Entertainment Media Business Report TM |
 "Smith" to debut with single sponsor
CBS has high hopes for the new drama "Smith," starring Ray Liotta as a criminal mastermind, and will debut it Tuesday, September 19th with minimal commercial interruptions. Warner Bros. Pictures has signed on as the sole sponsor to promote "The Departed," a new feature film from director Martin Scorsese, starring Leonardo DiCaprio, Matt Damon and Jack Nicholson, which will be released October 6th. "Smith" also stars Virginia Madsen, Simon Baker, Jonny Lee Miller, Amy Smart, Franky G, Chris Bauer and Shohreh Aghdashloo. John Wells, Brooke Kennedy and Christopher Chulack are executive producers for John Wells Productions, in association with Warner Bros. Television.
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| Internet Media Business Report TM |
Spike launches broadband player; new content
Spike TV is giving guys all the action they can handle with the launch of their new broadband player on spiketv.com. This latest launch continues Spike's multiplatform digital strategy that has seen the rebirth of its Web site as an all Flash, video-centric experience, the first live webcast and innovative "cam-in" feature where online users could interact with Spike talent live during events and the introduction of irresistible women onto the site with the creation of the "Babe-a-lizer."
| See the original digital programs launching on spiketv.com |
Premiere set for AOL's "Gold Rush"
Gold Rush, the multi-media cross platform hunt for hidden gold reality event from Mark Burnett Productions and AOL.com, will debut on AOL.com 9/13. The first televised clue will be broadcast 9/14 on CBS. With over 2 million in solid gold hidden across America, the game engages participants to complete a series of pop culture challenges on AOL.com for a chance to actually search for the real-life treasure. Each round will end with the discovery of 100,000 in gold, until the final week, when competitors will vie for the 1 million cache. The clues that help lead participants to the gold will be found throughout AOL.com and these clues are solved by Gold Rush players finding "answers" hidden on CBS TV shows and commercials, as well as in print magazines and radio shows. "Picture thirteen heavily-guarded trucks - each loaded with a fortune in solid gold - dispatched on September 13 to be hidden in plain sight," said Burnett. "Gold Rush is unlike any other game ever conceived, with potentially millions of Americans searching for caches across the country. Finally, a reality game that anyone can play."
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| Ratings & Research |
"Prison Break" breaks out with TiVo users
The early season debut of "Prison Break" on Fox was a big hit with TiVo owners, coming in second only to the Sunday edition of "Big Brother: All-Stars" on CBS. As usual, reality fare dominated.
| Tivo Top 25 |
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| Stock Talk |
Easy does it
The government reported that GDP grew at a 2.9% annual rate in Q2, up from the initial estimate last month, but still below the Q1 growth rate. So, while traders don't want to see growth so strong that the Fed will worry about inflation, they also don 't want to see the economy slow too much. This report was just right. The Dow Industrials rose 13 points in light pre-holiday trading to 11,383.
Most TV stocks gained as well. Saga led the way, up 3.8%. ACME rose 3.7% and Entravision gained 3.2%.
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| Stocks |
Here's how stocks fared on Wednesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Acme
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ACME
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5.38
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+0.19
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LIN TV
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TVL
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7.03
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+0.11
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Belo
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BLC
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16.28
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+0.19
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McGraw-Hill
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MHP
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56.65
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+0.84
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| CBS CI. B |
CBS |
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28.81
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-0.12
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Media General
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MEG
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39.54
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+0.09
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| CBS CI. A |
CBSa |
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28.82
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-0.12
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Meredith
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MDP
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47.31
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+0.32
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Clear Channel
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CCU
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28.75
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-0.01
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News Corp.
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NWS
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19.80
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-0.06
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Disney
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DIS
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29.57
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+0.46
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Nexstar
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NXST
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4.36
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+0.01
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Emmis
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EMMS
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12.32
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-0.04
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NY Times
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NYT
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22.87
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+0.59
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Entravision
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EVC
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7.40
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+0.23
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Ion Media
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ION
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0.91
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-0.02
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Fisher
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FSCI
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41.89
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+1.19
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Saga Commun.
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SGA
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8.03
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+0.29
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Gannett
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GCI
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57.05
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+0.83
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SBS
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SBSA
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4.31
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+0.02
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Gen. Electric
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GE
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34.27
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+0.08
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Scripps
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SSP
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44.94
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-0.08
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Granite
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GBTVK
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0.12
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unch
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Sinclair
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SBGI
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7.68
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+0.12
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Gray
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GTN
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6.35
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-0.04
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Time Warner
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TWX
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16.58
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+0.05
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Gray, C1. A
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GTNa
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6.96
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-0.10
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Tribune
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TRB
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31.27
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-0.04
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Hearst-Argyle
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HTV
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22.86
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+0.09
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Univision
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UVN
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34.33
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-0.05
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Journal Comm.
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JRN
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11.02
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+0.03
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Wash. Post
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WPO
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765.50
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+5.00
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Lincoln Natl.
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LNC
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60.74
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+0.33
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Young
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YBTVA
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2.79
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-0.02
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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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 Interep ups Marsillo
Interep has named Tom Marsillo President of Azteca America Spot Television Sales. He had been Sr. VP and General Sales Manager of the rep firm. Marsillo succeeds Bob Turner, who recently became President of Network Sales for Azteca America (7/21/06 TVBR #141) and had been overseeing both network sales and national spot sales for the affiliate group.
Hearst-Argyle taps Natz
Jacques Natz will join Hearst-Argyle Television, Inc. as Director of Digital Media Content. Natz previously was News Director at WTHR-TV, the NBC affiliate in Indianapolis. The appointment, effective 10/2, was announced by Terry Mackin, Executive Vice President, who heads Hearst-Argyle's digital media initiatives. In his new role, Natz will oversee digital content for Hearst-Argyle's various digital-media businesses, including the company's local websites and its Weather Plus digital television channels developed in partnership with NBC.
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Below the Fold
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Ad Business Report
"BicyTaxi" gaining steam
50-unit fleet mobility vehicles are turning heads & changing outdoor...
Media Business Report
Rashid Tobaccowala, CIO of Publicis
Groupe Media (PGM) & Denuo CEO
Talks with TVBR on rapidly changing digital environment...
Cable Business Report
Cable residential revenue
To reach 119.8 billion by 2015...
Internet Media Business Report
Spike launches broadband player
Giving guys all the action they can handle...
Entertainment Media
Business Report
Debut with single sponsor
CBS and 'Smith' sees Warner Bros Pic signing on as the sole sponsor...
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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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NBC and Clear Channel claim
toilet contract hanky-panky
Two broadcast-related outdoor advertising companies are heading to court against the City of New York, claiming that they were cheated out of the contract to put ads on the city's bus shelters, newsstands and public toilets. When the contract was announced (5/17/06 TVBR #97) it appeared that Cemusa, a subsidiary of the Spain-based conglomerate Fomento de Construcciones y Contratas, had simply outbid other contenders, including Clear Channel Outdoor, CBS Outdoor and a joint venture of NBC Universal and JC Decaux. But after further inspection, details in TVBR.
08/30/06 TVBR #169
OMD backs away on
liability language
After the Broadcast Cable Management Association (BCFM) sent out a bulletin to members about new contract language being used by OMD to shift potential liability away from the ad agency and solely to the station, BCFM reports that it had a talk with the agency and OMD has reprogrammed its computers back to the language it was using prior to July.
08/30/06 TVBR #169
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.
TVBR observation: Hard to over come perception being reality and when you say Google it is automatic to think search. eBay similar one thinks selling others people, well, junk. RBR continues to remind executives to research before you commit to a internet service.
08/29/06 TVBR #168
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.
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...
08/29/06 TVBR #168
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
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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
Editorial & Sales Reps
Working for a print trade with no growth? Working for B&C, MediaWeek, TVWeek, or any other TV/Cable Trade publication? TVBR is looking for that one or two key experience pro's. Capitalize on your experience, contacts, relationships, and secure your future growth. NO Relocation necessary. Contact TVBR publisher Jim Carnegie in confidence at publisher@rbr.com
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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