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Welcome to TVBR's Daily Epaper
Volume 24, Issue 171, Jim Carnegie, Editor & Publisher
Friday Morning August 31st, 2007

TV News ®

TVBR returns on Tuesday, September 4th.
Notice: TVBR returns on Tuesday, September 4th. The RBR/TVBR/MBR offices will be closed Monday, September 3rd, in observance of Labor Day.

Morning shows accused of liberal bias
The right-leaning Media Research Center (MRC) is out with a report complaining that the morning news shows on NBC, ABC and CBS devote far more coverage to Democratic candidates for President than to the Republicans. Is it bias, a “liberal agenda” or just following the news?
After monitoring ABC’s “Good Morning America,” CBS’ “The Early Show” and NBC’s “Today” show from January 1 through July 31, MRC said it found that nearly twice as many campaign news segments covered the Democrats as the Republicans and that Democrats got three times as much airtime. Sen. Hillary Clinton (D-NY) got the most exposure, followed by former Sen. John Edwards (D-NC) and Sen. Barack Obama (D-IL), all well ahead of the top Republican, Sen. John McCain (R-AZ). “Of the interview questions that could be categorized as having a political agenda, more than two-thirds (69%) of the questions posed to Democrats reflected a liberal premise, and more than four-fifths (82%) of the questions to Republicans came from the same perspective,” MRC charged. “Our results show pure partisanship on the part of ABC, CBS and NBC. Not only are the network morning shows overwhelmingly focused on Democrats, they are actively promoting the Democrats’ liberal agenda.” declared MRC President L. Brent Bozell III.
The networks deny any bias, and say they are covering the campaigns based on news value. Some news executives also complain that the GOP candidates have repeatedly turned down invitations for appearances on the morning shows.

TVBR observation: This is the first time since the introduction of television that we have had a US presidential election without either a sitting President or his Vice President in the running, creating a real horse race in both major parties. Let’s face it, there is more drama in the Democratic race at this point. That will change once the nominees are selected and it becomes a two-person competition for the White House.

KTLA’s home is up for sale
Since new Tribune Company director-investor Sam Zell made his billions mostly from buying and selling real estate, it is hardly surprising that the company is reassessing its real estate portfolio. The big property on the block now is the former Warner Brothers studio in Hollywood, which now houses KTLA-TV (Ch. 5, CW), Tribune Entertainment and Tribune Studios. The Los Angeles Times, also owned by Tribune, quotes a local real estate expert as estimating that the property is worth around 175 million. Warner Brothers began building the grand facility in 1919. The Colonial-style main building, known as “Tara,” built in 1923, and a sound stage on the lot are registered historic properties, subject to restrictions on any changes. But there has been a resurgence in investment interest in Hollywood properties in recent years, so there could be considerable interest in the property.

TVBR observation: KTLA and every other TV station in LA could easily fit into this facility, so Tribune hardly needs the massive property it got when it acquired KTLA from Gene Autry in 1986. Tribune can cut debt by selling the property and then lease space elsewhere for new, updated studios for KTLA. Lots of production companies lease studio space to produce TV shows, in fact quite a few lease from Tribune Studios, so that will be no problem for Tribune Entertainment.


Morgan Stanley to advise Hearst-Argyle directors

Hearst-Argyle Television announced that the Special Committee of its board of directors has retained Morgan Stanley as its financial advisor to assist them in their review of the proposed tender offer announced by Hearst Corporation. Simpson Thacher & Bartlett LLP has been engaged to provide legal advice to the Special Committee. Hearst Corporation, which already owns a majority of Hearst-Argyle, has offered 600 million to buy out the public shareholders, but the stock has been trading above the 23.50 per share offer in anticipation of Hearst being forced to go higher.

CEO exits OpenTV
OpenTV announced that Alan Guggenheim has stepped down as President, CEO and a director of the company for personal reasons. The remaining board members appointed Ben Bennett to the newly created position of COO and named him Acting CEO as well. Bennett had been Sr. VP, Customer Operations. Mauro Saladini, an executive of the Kudelski Group, was named to the open board seat. "OpenTV is strongly positioned as the worldwide leader in middleware for television network operators, providing a customer-focused, solutions-based approach to the market,” declared Andre Kudelski, Executive Chairman of OpenTV. He also praised Bennett as an executive who “has a clear view of the company’s potential.” The Kudelski group bought control of OpenTV from Liberty Media back in January for over 132 million.

CNN to stop using Reuters
CNN said on Thursday it would stop using the Reuters news service, ending a 27-year relationship, to cut costs and invest in its own news gathering operations. CNN said in an internal memo that it wanted to reduce reliance on agency material while achieving better control of its growth. "This is all about us, not Reuters. This is about content ownership," CNN spokesman Nigel Pritchard said. "Everything is changing and content ownership is king." CNN will stop using Reuters text, photography and television material from Friday. News organizations such as CNN are grappling with how best to court new generations of viewers who are as likely to get their info on cell phones and the Internet as from television, Reuters said. "To advantage CNN in the content marketplace and manage the continually rising costs associated with acquired assets, we are making significant investments in our own news gathering while simultaneously reducing our reliance on agency material," Tony Maddox, CNN International EVP, said in a memo. CNN will continue to use news provided by the Associated Press and Associated Press Television News.


Ad Business Report TM

Local Thunder to hype online ad platform at NAB Small Market Television Exchange
Local Thunder, creator of online ad platforms for local media outlets, announced it will participate in the NAB Small Market Television Exchange taking place 9/27 9/29 at the Hyatt Regency Lost Pines Resort & Spa in Austin. On 9/28, Mic Harris, Local Thunder’s Director of Sales and Business Development will present an info-session on ‘Taking Internet Ad Sales to the Next Level’. This session will provide a roadmap for sales managers looking to up the ante in their multi-platform selling. Key topics include: selling the concept in your station, finding new business, motivating your selling team, attracting advertisers, and creating traffic-building promotions.
Throughout the conference, Local Thunder will demonstrate its turnkey platform for creating successful local online shopping environments. Through rich-content display ads, e-commerce capabilities and opt-in email campaigns, the Local Thunder platform helps television stations drive new business through high-impact multi-media campaigns.


Media Business Report TM
No relief for newspapers
Ad revenues have been soft for daily newspapers for some time and the credit rating agency Fitch sees no improvement coming. “Real estate classified declines have been significant, and have generally tracked the widely covered slowdown in new home construction, particularly in formerly overheated markets such as California and Florida,” Fitch said in an update to its sector outlook. The problems are widespread. For Gannett, Fitch noted that ad pages are down 17% at USA Today and pro forma real estate classifieds at its community newspapers are down 20%. For Tribune Company, classifieds are down 18%, driven by real estate down 24% and employment classifieds down 19%. At the McClatchy Company, real estate is down 26%, automotive down 20% and national down 19%. And for Dow Jones, ad volume is down 20%, driven by a 75% decline in technology related ads, and classifieds are down 14%.


Media Markets & Money TM
ABC affiliate sold in Mississippi
Commonwealth Broadcasting Group, headed by President Charles Harker, is back in the television business with the purchase of WABG-TV (Ch. 6) Greenwood, MS. The station is an ABC affiliate, but also has a deal to launch the market’s Fox affiliate on a DTV channel, which the buyer will build out. The seller, for 5.1 million, is Mississippi Broadcasting Partners, owned by Mississippi Telecasting Co. and Bahakel Communications. Commonwealth sold its CW affiliate in the Charleston-Huntington, WV market earlier this year.


Washington Media Business Report TM

Changes coming on Capitol Hill?
Sen. Larry Craig (R-ID) is under increasing pressure from fellow Republicans to resign and Sen. Tim Johnson (D-SD) is due back on Capitol Hill next week, after suffering a brain hemorrhage last December. What are the implications for broadcasters as Congress returns from a holiday break?
Democrats have generally been holding back on any criticism of Sen. Craig, letting the Republican Party twist in the wind, following the news that the conservative Senator had pleaded guilty to a misdemeanor charge in Minnesota after he allegedly solicited an undercover male cop for sex. Senate GOP leaders have announced plans for an investigation. Senators John McCain (R-AZ) and Norm Coleman (R-MN) have publicly called for Craig to resign, as have some conservative radio hosts and Internet bloggers. If Craig does resign, it will not change the party split in the Senate, where the Democrats hold a slim majority. Idaho Governor Butch Otter, a Republican, would name a successor to fill out the remaining months of Craig’s term. Democrats are salivating at the possibility of picking up a seat next year in a state that has long been staunchly Republican, but that won’t be an easy task even after this scandal.
Meanwhile, Sen. Tim Johnson made his first public speaking appearance this week in South Dakota, walking and talking with only slight impairment from the brain hemorrhage he suffered last December. The Senate reconvenes on Tuesday, September 4th, and that looks to be the last day that Johnson will be absent. He plans to be back in his office and on the Senate floor come Wednesday.

TVBR observation: Neither Craig nor Johnson is on the Senate Commerce Committee, which has the most direct impact on legislation affecting broadcasters. Both are, however, on the Appropriations Committee, which has oversight of spending by the FCC and every other government agency. Neither, though, has a reputation for being active in any issues affecting broadcasters. Johnson is also on the Budget Committee, so he has a double-barreled impact on how the federal government collects and spends money.


Entertainment Media Business Report TM

NBC Sports taps Faith Hill
No, she’s not doing play-by-play. NBC Sports has selected five-time Grammy Award-winner and multi-platinum recording artist Faith Hill to perform the opening theme for NBC Sunday Night Football, "Waiting All Day for Sunday Night." A special version of the song, "Waiting All Year for Opening Night" will air Thursday, September 6th in the "NFL Opening Kickoff" as the entire 2007 NFL season kicks off on NBC with the Super Bowl Champion Indianapolis Colts hosting the New Orleans Saints. "Waiting All Day for Sunday Night" debuts Sunday, September 9th, NBC's first "Sunday Night Football" broadcast of 2007 featuring NFC East rivals – Tony Romo and the Dallas Cowboys hosting Eli Manning and the New York Giants. The opening theme will continue to weekly kick off "Sunday Night Football" every Sunday night throughout the NFL season on NBC.
"It's exciting to have been asked to sing the open for this season's Sunday Night games," said Hill in the NBC announcement, adding "Maybe now I'll be able to get my jersey size and some better seats for the games?"
"Waiting All Day for Sunday Night" is set to the original Joan Jett song, "I Hate Myself for Loving You" and marks Hill's first production with NBC Sports. She recorded the track with her longtime producer Byron Gallimore at Legacy Recording Studios in New York City. The video was shot at The Wiltern theatre in Los Angeles.

CMA Awards nominees announced
Nominees in select categories for “The 41st Annual CMA Awards” have been this week. The 12 awards will be presented during “The 41st Annual CMA Awards” telecast on 11/7 on ABC. The partial list:
Entertainer of the Year: Kenny Chesney, Brad Paisley, Rascal Flatts, George Strait and Keith Urban
Female Vocalist of the Year: Alison Krauss, Miranda Lambert, Martina McBride, Reba McEntire and Carrie Underwood
Male Vocalist of the Year: Kenny Chesney, Brad Paisley, George Strait, Josh Turner and Keith Urban
Horizon Award: Jason Aldean, Rodney Atkins, Little Big Town, Kellie Pickler and Taylor Swift
Vocal Group of the Year: Alison Krauss + Union Station, featuring Jerry Douglas; Dixie Chicks, Emerson Drive, Little Big Town and Rascal Flatts
Vocal Duo of the Year: Big & Rich, Brooks & Dunn, Montgomery Gentry, Sugarland and The Wreckers


Internet Media Business Report TM

New study shows Americans' blogging Behavior
According to a recent Synovate/Marketing Daily survey, 8 out of 10 Americans know what a blog is and almost half have visited blogs. The study, conducted online with 1,000 adults using Synovate eNation from July 30 to August 1, shows that blogging has entered the mainstream. "8% of Americans currently have their own blog," said Tom Mularz, senior vice president at Synovate. "This is surprising given that a few years ago hardly anyone knew what a blog was." Loyalty to specific blogs is also fairly strong with 46% of blog readers saying that they visit the same blogs regularly versus 54% who instead usually surf for new and different ones.
Awareness and usage of blogs, along with people penning their own, strongly correlates to age, with younger people being much more active. Nearly 90% of those aged 25 to 34 know what a blog is, compared to just 65% of those aged 65 and over. Similarly, 78% of those aged 18 to 24 who are aware of blogs say they have visited a blog, compared to only 45% of older Americans. Also, more women than men are bloggers, with 20% of American women who have visited blogs having their own versus 14 % of men. As blogs have gained in popularity, so has the frequency with which they're read. Though the majority of blog readers (39%) view them less than once a month, another 28% visit them monthly, 15% visit them daily and 5% read them several times a day.


Ratings & Research

Hispanic and Asian Households jump again
In its annual reworking of population estimates for all US TV markets, Nielsen reports that Hispanics and Asians are again the fastest-growing national segments of the population. For the 2007-2008 TV season, total US television households (HH) are up 1.3% to 112.8 million. The number of Hispanic HH increased 4.4% to 12.14 million, still slightly trailing African-American HH, which rose 1.5% to 13.65 million. Asian HH rose 3.9% to 4.54 million.
In local markets, Nielsen estimates that Los Angeles continues as the number one Hispanic market, followed by New York, Miami, Houston and Chicago. Los Angeles also has the country’s largest Asian community, followed by New York, San Francisco, Honolulu and Chicago. New York is the largest African-American TV market, followed by Atlanta, Chicago, Washington, DC and Philadelphia.


Transactions
1.2M WYLE-TV Huntsville-Decatur-Florence AL (Florence AL, Indy/26-DT 20) from ETC Communications Inc. (Karen Snead-White) to WYLE-TV LLC (James L. Lockwood). 100K deposit, 330.5K cash at closing, 69.5K for legal expenses, 700K note. Duopoly with WHDF-TV (CW/15-DT 14). Buyer is seeking failed station waiver to enable the pairing. [File date 8/10/07.]


Stock Talk
Nervousness on Wall Street
Q2 GDP growth was 4%, but the pickup in pace was still below what some analysts had expected – and there is still worry about the credit markets. So, stock prices were mostly lower on Thursday. The Dow Industrials fell 51 points, or 0.4%, to 13,329.
TV stocks were lower. Fisher fell 3.7% and LIN was off 2.3%. There was one significant gainer, with Nexstar up 5.2%.


Stocks

Here's how stocks fared on Thursday

Company Symbol Close Change Company Symbol Close Change

Acme

ACME

4.18

-0.03

Lincoln Natl.

LNC

59.88

-0.97

Belo

BLC

17.06

-0.33

LIN TV

TVL

13.38

-0.31

CBS CI. B CBS

30.75

-0.41

McGraw-Hill

MHP

50.27

0.48

CBS CI. A CBSa

30.72

-0.50

Media General

MEG

27.72

-0.43

Clear Channel

CCU

36.55

-0.14

Meredith

MDP

55.39

-0.23

Disney

DIS

33.47

-0.42

News Corp.

NWS

21.43

-0.42

Emmis

EMMS

6.41

0.02

Nexstar

NXST

9.47

0.47

Entravision

EVC

8.87

-0.16

Ion Media

ION

1.33

-0.05

Equity Media EMDA 3.15 0.00

Saga Commun.

SGA

7.00

-0.05

Fisher

FSCI

48.07

-1.87

SBS

SBSA

2.82

-0.08

Gannett

GCI

47.50

-0.23

Scripps

SSP

41.06

-0.18

Gen. Electric

GE

38.40

-0.31

Sinclair

SBGI

12.24

-0.03

Google GOOG

511.40

-1.48

SWMX

SWMX

0.08

0.01

Gray

GTN

8.79

0.04

Time Warner

TWX

18.61

-0.20

Gray, C1. A

GTNa

8.63

0.00

Tribune

TRB

27.13

-0.25

Hearst-Argyle

HTV

25.55

-0.05

Wash. Post

WPO

771.25

-19.20

Journal Comm.

JRN

10.30

-0.03

Young

YBTVA

2.00

0.00


Bounceback

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Below the Fold

Ad Business Report
Local Thunder
To hype online ad platform at NAB Small Market TV Exchange. Will demonstrate its turnkey platform for creating successful local online shopping environments…

Washington Media Business Report
Changes coming on Capitol Hill?
Scandals all over the place like a bad Wreck inside the Beltway. Good news Ones involved do not have direct impact on legislation affecting broadcasters…

Media Business Report
No relief for newspapers
Ad revenues have been soft for daily
newspapers for some time and the
credit rating agency Fitch sees
no improvement coming…

Media Markets & Money
ABC affiliate sold
In Mississippi asCommonwealth Broadcasting Group, headed by President Charles Harker, is back in the television business…

Internet Media Business Report
Americans' blogging Behavior 8 out of 10 Americans know what a blog is and almost half have visited them…



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TV Media Moves

Ditka back to WMAQ
Former Chicago Bears coach Mike Ditka returns to NBC O&O WMAQ-TV (Ch. 5) next month after jumping to CBS O&O WBBM-TV (Ch. 2) in 2004 as a sports analyst. Ditka will appear in his own commentary segments, “The Iron Mic,” which will be featured in NBC5’s major local newscasts.

Upped at Local TV
Rebecca Jess has been named Assistant Corporate Controller for Local TV LLC, joining the corporate finance team of CFO Pam Taylor. But Jess will not have to relocate to corporate headquarters in Kentucky outside Cincinnati. She will wear two hats, continuing in her current duties in Des Moines, IA as VP/Controller of WHO-TV (Ch. 13, NBC).





TVBR Radar 2007
Television News you won't read any where else. TVBR--First, Accurate, and Independently Owned.

Broadcast groups, All major Rep Firms Commit to TVB ePort
Enlarging the list of committed broadcast groups to 28. Additionally, TVB announced that all of the major rep firms have now committed as well to the eBusiness platform that will enable a new wave of open-standard electronic transactions between advertisers, agencies, broadcasters and station reps. TVB ePort’s first phase will launch in November, enabling Spot TV buyers to send 1Q 2008 orders electronically. The entire suite of open standard transactions--from avail through invoice for stations’ airtime, websites, digital subchannels and other multiplatform offerings--is expected to be available through TVB ePort by March.

TVBR observation: The great success of ePort is likely the reason companies like SWMX never really made it in the space for TV transactions. On the radio side, the industry never came together quite so well with a universal system, so there are more independent players—and successful ones—in that medium. See Ad Business Report section.
08/30/07 TVBR #170

Hearst-Argyle investor demands higher price
Marathon Partners has sent a letter to Hearst-Argyle Television directors insisting that they not agree to “an embarrassingly low tender offer” from Hearst Corporation to buy out public shareholders. The letter doesn’t state a price that would be fair to minority shareholders and Mario Cibelli says he is not in any hurry to sell.
08/30/07 TVBR #170

Clear Channel sues over disintegrating deal
Clear Channel has now sued in a Texas state court to try to hold American Securities Capital Partners (ASCP) to its 452.1 million bucks deal to buy 187 radio stations. ASCP has fired back with its own lawsuit filed in a New York state court, so look for lots of legal wrangling ahead.

RBR observation: With this deal now in doubt Mark and Randall Mays could have avoided all of this divestiture drama, of course, if they had accepted a preemptive bid from former Clear Channel Radio CEO Randy Michaels for the entire block of stations. You may have read elsewhere that he and Oak Hill Capital Partners offered around 800 million. We have it on good authority, though, that the actual bid was over 900 million, but that the Mayses held out for 1.1 billion. When all is said and done, will Clear Channel now even come close to that mark?
08/29/07 RBR #169

Nielsen ends separate Spanish ratings
The major Spanish TV networks transitioned to using the same National People Meter (NPM) panel as their English brethren as much as two years ago – and some, we might add, have been posting strong ratings – so the shutdown of the National Hispanic People Meter (NHPM), effective Monday 8/27, is pretty much a non-event.

TVBR observation: If you follow the weekly Nielsen ratings in TVBR, you know that Univision-TeleFutura, Telemundo and Azteca America have all made the transition to the NPM panel alongside ABC, CBS, NBC, Fox, CW, Ion and MyNetworkTV. In fact, the biggest of the Spanish nets, Univision, sometimes tops one or more of the Big 4 in some of the key demos.
08/28/07 TVBR #168

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.

TVBR observation: These arguments for a la carte get stranger all the time. Let's look closer. It is 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.
08/24/07 TVBR #166

NAB focused on DTV transition
NAB’s Jack Sander has fired off a letter the FCC Chairman 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


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