Welcome to TVBR's Daily Epaper
Volume 21, Issue 173, Jim Carnegie, Editor & Publisher
Friday Morning September 3rd, 2004

TV News ®

Republicans try to squelch 527s
The campaign of George W. Bush has gone to court to try to put so-called 527 organizations out of business, at least in terms of advertising during the remainder of the 2004 election cycle. The groups are considered by many to be exploiting a loophole in the McCain-Feingold Bipartisan Campaign Reform Act restricting the flow of soft money into the election process. Long story short, they are allowed to advertise using soft funds, but are not allowed to coordinate in any way with the campaign organization of an actual candidate. The Federal Election Commission declined to take action against 527s earlier in the spring, saying that the situation was too complex to be considered adequately before the campaigns went into full swing. Although they have primarily been used by Democrat-leaning groups, notably MoveOn.org, Republican-leaning groups were already in the act of setting up shop in anticipation of the FEC's failure to act. Perhaps the biggest 527 success story of the campaign has been the modestly-funded campaign of the Swift Boat Veterans for Truth, which rode a small three-state buy into news-cycle dominance.

Kerry buy comes into sharper focus
The campaign of Democratic presidential candidate John Kerry has upped its spending plans by 5M dollars, saying it will invest 50M into advertising in the run-up to Election Day. It still plans to focus that on certain battleground states, but according to the Associated Press, certain states will be getting placements in the early post-convention innings. The blitz will hit first in Ohio, and move into places like Florida, Pennsylvania, New Hampshire, Wisconsin, Iowa and New Mexico. Campaigns in 13 other states will begin at a later date.

New lawsuit over "The Next Great Champ"
With "The Next Great Champ" set to debut next week on Fox, now that two judges have denied injunctions to producers who say the show ripped-off their concept for "The Contender" which will air on NBC (8/30/04 TVBR Daily Epaper #169), an independent producer has come forward to support that view. She says the Fox show wasn't stolen from NBC, it was stolen from her - - and she wants big bucks damages. Leigh Ann Burton claims in her lawsuit against Oscar De La Hoya and his Golden Boy Productions that she pitched a show called "The House of Pain" to them in October 2003. The reality show would have a group of unknown boxers compete for a prize of a big time fight in Las Vegas. And yes, Burton did register the concept with the Writers Guild of America a few days before she contacted Golden Boy Productions. Golden Boy Productions hasn't yet responded to the suit, but its attorney told the LA Times that the claims are "utterly without merit."


DC TV licenses attacked for kidvid shortfall
Rupert Murdoch and Bud Paxson have something in common - - their organizations are under a two-pronged assault for failing to provide the proscribed three-hours weekly of educational programming for children. The stations - - Paxson's WPXW (Pax, Channel 66) and Fox's WDCA (UPN, Channel 20) - - are both in the Washington DMA. The challenge is being mounted by the Office of Communication of the United Church of Christ and the Center for Digital Democracy. They are challenging WPXW's assertion that the show "Miracle Pets" meets part of its children's education obligation, saying it fails to meet four of six requirement: "1) the program is not specifically designed for children, 2) it is not specifically designed to educate, 3) it is not regularly scheduled, and 4) it is not identified on air as educational programming." They are challenging the use of "Ace Lightning" and "Stargate Infinity" by WDCA, saying they "...not only lack any significant educational purposes, but contain an antisocial message." According to communications professor Dale Kunkel, "...a program that includes one violent attack after another cannot seriously be said to teach children to 'get along with others' as WDCA claims." The groups have filed petitions to deny the license renewals of both stations, and ask the FCC for quick resolution so that all US TV operators get the message to be judicious in what they programming they attempt to pass off as meeting the kidvid requirement.

Batten down the hatches!
As Hurricane Frances heads toward a Labor Day Weekend landing, broadcasters throughout most of Florida are preparing for emergency coverage as hundreds of thousands of people are urged to evacuate low-lying coastal areas and barrier islands from the Palm Beach area north. And with such a large storm, severe damage is likely far inland. This photo is a reminder of what happened just a few weeks ago - - when Hurricane Charley decapitated two towers of Genesis Communications' WHOO-AM Orlando.


Adbiz ©

XM, Sirius place banners
on Howard Stern's website
While Howard Stern has a counter on his website (www.howardstern.com) that goes from 16 months down to the seconds left in his current contract with Infinity, XM and Sirius Satellite Radio have decided to take advantage of his recent rants against the FCC's indecency crackdown on traditional radio. Both have banner ad campaigns on the website. The Sirius ad hypes that it is uncensored and invites listeners receive a free trial offer. Stern has been touting the benefits of the satellite radio, threatening to move over as soon as his contract with Infinity expires.

ERA and NARC pact against deceptive ads
The Electronic Retailing Association (ERA) and the National Advertising Review Council (NARC) have joined forces to offer consumers a program to help put an end to the dissemination of unsubstantiated and false advertising claims. The new program, "Protecting America's Consumers -- the ERA Self-Regulatory Program," is supported by the Federal Trade Commission and offers consumers a process for filing a complaint about misleading or false information in infomercials or other direct response ads. "We established this program to offer protection to consumers and help the industry remove fraudulent advertisers from the airwaves," said Barbara Tulipane, ERA CEO. "We asked the National Advertising Review Council, an investigative arm aligned with the Better Business Bureau, to run the program because we needed it to be independent of the industry, as well as effective. We're pleased to offer America's consumers a way to help us keep to our high standards and remove false advertisers from this business." Consumers with a complaint about a false or unsubstantiated ad can simply log onto www.savvyshopper.org, fill out the form and ask for a review of the questionable ad.

GLAAD unveils "I Do" TV spot
The Gay & Lesbian Alliance Against Defamation (GLAAD) has unveiled the winner of its "I Do" contest, a national advertising competition designed to promote equal marriage rights and protections for gay and lesbian families. GLAAD also announced a partnership with Rock the Vote to take the ad and its message of marriage equality to young voters in key states. "I Believe in Love" was created by Kyle Grote of West Jefferson, OH, with the help of his siblings Katie Stephenson and Tom Grote and producing partner Frank Koch. GLAAD will place the 30-second ad in select markets this fall. Nearly 100 "I Do" contest entries were submitted by filmmakers from more than 20 states. The winner was selected by a panel of celebrity judges, among them comedian Margaret Cho, writer/director Kevin Williamson ("Scream") and producer Craig Zadan ("Chicago").


Media, Markets & Money tm

This market ain't big enough for the two of us...
Great Falls indeed is not big enough for two television stations, at least not in the same portfolio. And that pretty much will be the case even if the FCC's 6/2/03 ownership rules ever become the law of the land. As a result, the ranks of African American television owners is growing by one. Darnell Washington's Destiny Communications LLC will be the beneficiary of Max Media's pressing need to sell a station in the market. They recently bought ABC affiliate KFBB-TV in a 12.5M dollar deal which also brought in KULR-TV in Billings (10/24/03 TVBR Daily Epaper #209). For 3M dollars, Washington is getting Max's previously-owned KTGF-TV, the local NBC affiliate. He'll pay a little over 2M in cash, with a 950K promissory filling out the compensation package. Max Media's Eugene Loving has been making a practice of giving minority owners an opportunity to break into broadcasting, according to Garvey Schubert Barer attorney Erwin Krasnow, who told TVBR he has also helped install minority owners into Portland ME and St. Croix VI. In this case, Max used the Minority Media & Telecommunications Council to find a buyer. This will be the first owned station for Washington, who Krasnow said has worked the sales side of the TV industry up to now. An LMA option is built into the deal, but it will not be one in which Max installs a new licensee, only to take the programming and/or sales reins back itself. If the option is exercised, it will be to give Washington the option of taking the reins in advance of closing. Krasnow emphasized that the sale constitutes a clean break, and there will be no further relationship between Max and KTGF. The deal cancels Max's earlier filing to put the station under the care and feeding of trustee Paul T. Lucci (4/6/04 RBR Daily Epaper #67).

To sell, or not to sell?
Is that your question? Part 10

We wrap up this series today by attempting to answer the question: How do you pick a broker? Earlier installments in this series dealt with figuring out whether this is the right time for you to sell and how to price your station. So, if you're still not certain whether you want to sell, you might want to go back and re-read those portions of this 10-part series. | More... |


Washington Beat

NAB, LWW team to get out the vote
The National Association of Broadcasters and the League of Women Voters is combining in an effort to both educate voters and encourage them to actually go out and vote. For its part, the NAB has radio PSAs ready to download from its website, as well as provisions to get PSAs to television stations via a monthly PSA feed or by providing a dub. The PSAs direct voters seeking info to a pair of websites which provide info on both national and state elections, including www.lwv.org from the League of Women Voters and www.dnet.org from DemocracyNet.


Programming

Race start delayed by CBS
CBS has delayed the premier of "Amazing Race 6" by a week to October 2nd. But the rest of its Saturday fall lineup will still kick off on September 25th - - that's "Crimetime Saturday" (a rerun of one of CBS' crime series) from 9-10 and "48 Hours Mysteries" from 10-11. You could say that Crimetime Saturday will expand to two hours on September 25th, since a rebroadcast of "Cold Case" will fill the 8-9 time slot that Amazing Race will take over a week later.

MSNBC's Chris Matthews
charged by protester
A protester jumped a fence 9/1 and ran onto a stage being used by MSNBC during a live broadcast at New York's Herald Square during a broadcast of 'Hardball.' Host Chris Matthews was on the set with Christie Todd Whitman, NBC correspondent David Gregory, Newsweek's Howard Fineman and commentator Sherry Annis were on the outdoor set in midtown Manhattan when the incident occurred. The protester was immediately subdued by security working for the net. No one was hurt.


TV Ratings

More Olympic gold for NBC from TiVo
If you consider the Olympics reality programming (and isn't it?), then reality shows claimed all of the top ten in the latest weekly report from TiVo on what users of its digital video recorders are watching. NBC's Olympics coverage again won for every day of the week. | Tivo List |


Stock Talk

Late buying burst hits Wall Street
Stock prices shot higher in late trading Thursday, based on a wave of optimism about the government's next jobs report. The Dow Industrials shot up 122 points, or 1.2%, to 10,290.

Television stocks joined the parade, with 27 of the 35 stocks in our daily list posting an up day. Young rose 3.2% and The Washington Post Company 2.3% to lead the advance.


TV Stocks

Here's how stocks fared on Thursday

Company Symbol Close Change Company Symbol Close Change

Acme

ACME

6.43

-0.02

McGraw-Hill

MHP

77.08

+0.51

Belo

BLC

23.28

+0.14

Media General

MEG

58.85

+0.22

Clear Channel

CCU

34.09

+0.19

Meredith

MDP

50.38

+0.53

Disney

DIS

22.51

+0.03

News Corp.

NWS

31.23

+0.09

Emmis

EMMS

19.40

+0.01

Nexstar

NXST

8.47

+0.15

Entravision

EVC

8.08

+0.11

NY Times

NYT

40.98

+0.12

Fisher

FSCI

48.49

-0.27

Paxson

PAX

1.74

-0.03

Fox

FOX

27.30

+0.24

Saga Commun.

SGA

17.94

-0.11

Gannett

GCI

85.33

+0.46

Scripps

SSP

104.35

+1.80

Gen. Electric

GE

33.12

+0.24

Sinclair

SBGI

8.00

+0.02

Granite

GBTVK

0.46

-0.02

Time Warner

TWX

16.20

+0.03

Gray

GTN

13.64

-0.11

Tribune

TRB

41.99

+0.53

Gray, C1. A

GTNa

12.65

-0.14

Univision

UVN

33.04

+0.01

Hearst-Argyle

HTV

24.70

+0.46

Viacom, Cl. A

VIA

34.52

+0.41

Jeff-Pilot

JP

48.16

+0.23

Viacom, Cl. B

VIAb

34.01

+0.43

Journal Comm.

JRN

17.01

-0.04

Wash. Post

WPO

905.02

+21.02

Liberty Corp

LC

41.10

+0.63

Young

YBTVA

11.57

+0.36

LIN TV

TVL

20.20

+0.20

- - - - -

Have a news story you'd like to share? tvnews@rbr.com

TVBR Audiocast

09/03 - Get the feel of what you are scrolling down and reading... Listen to this morning's AudioCast and
Hold On To Your Hair!
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Bounceback

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This is your column, so send your comments to tvnews@rbr.com


Upped & Tapped

Lawhead returns
to Cincinnati
One-time WXIX-TV (Ch. 19, Fox) VP/GM Jon Lawhead is returning to Cincinnati - - this time as GM of Sinclair's WSTR-TV (Ch. 64, WB). He was most recently President and GM of WTVH-TV (Ch. 5, CBS) Syracuse.

No more Fine Living
for Solomon
This is neither upped nor tapped, but bye-bye for Ken Solomon, who is leaving Scripps Networks as head of the Fine Living channel to pursue an entrepreneurial venture of his own. John MacDonald, Sr. VP of Business Operations and Acquisitions at Scripps Networks, has been named acting GM of Fine Living.

Charter taps
interim co-CFOs
Charter Communications has tapped two executives to temporarily share CFO responsibilities, a vacancy created when the cable company's CFO Michael Huseby left to take a similar job at rival Cablevision Systems. Derek Chang and Paul Martin will serve until Charter, controlled by Microsoft Corp. co-founder Paul Allen, hires a permanent successor. Charter agreed to pay 144 million in cash and stock a month ago to settle shareholder lawsuits that accused the company of inflating its financial results and customer numbers.


More News Headlines

Competing Media

Radio revenues
fell 3% in July

The latest monthly figures are in from the Radio Advertising Bureau - - and they aren't pretty. Radio revenues were down 3% in July, with local up 1%, but national spot plunging 15%. It had been well known that the month wouldn't be a strong one, but now the figures are in and the word on the street is that things have improved since them. But, through the first seven months of 2004, total radio revenues were up only a modest 2%, with local up 4% and national off 2%.

Another broadcaster fires back at Forbes
Another angry broadcaster has checked in, telling us he's canceling his subscription to Forbes magazine after reading its latest cover story. Rick Cavagnaro, Vice President of Sales at Columbia Gorge Broadcasters in The Dalles/Hood River, OR, tell us he's not concerned about the article's critical view of radio, but rather the "ambush approach" of the article, which portrayed terrestrial broadcasters as bullies using their political clout to unfairly hold back competition from satellite radio. Here's what he had to say. Publisher observation: It doesn't take the winds of Naples for me to agree with Cavagnaro in saying "Broadcasters who aren't serving their local communities are only inviting satellite to challenge their markets..." The ones that broke it better fix it fast because here comes da satellite with the likes of the cult following of Opie & Anthony. Certain people will pay just as certain people plug in their Ipods instead of listening to local. Keep scrolling down this issue to Ad Biz. - Next!
| More...
|


August Digital Magazine

Complimentary Report
No more Forward Pacing Reports.
We have the economic, political, and close up look at your 4th quarter of business
and what must be done to hit budget by year's end.

GM of Cadillac,
Mark LaNeve
tells it like it is on where he
spends ad dollars.

Read RBR in 2 simple steps:
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TVBR Radar 2004
Click on these issues for TV News you won't read any where else. TVBR--First, Accurate, and Independently Owned.

Study sees digital growth
for flat cable universe
Cable MSOs have their best days of basic subscriber growth behind them, but a new report from JupiterResearch says the MSOs are heading into a growth spurt - - thanks to digital television. While basic cable growth is projected to stay about where it is, forecasts that digital penetration will grow at a compound rate of 11% from the current 23 million households to 43 million in 2009. TVBR observation: Not mentioned by JupiterResearch is that the most-watched programming being put on those digital tiers is coming from terrestrial broadcasters via their new DTV channels. Despite their opposition to digital must-carry, the truth is that the MSOs need the broadcasters and their DTV channels to have any chance of achieving the double digit growth.
09/02/04 TVBR #172

FCC bluster over a cluster
The last time we checked, Arbitron had Grand Junction CO pegged as its 258th-largest market. It is also the scene of the FCC's latest red-flag tossing, although the Commission no longer calls the act of subjecting an otherwise legal station transaction to further scrutiny red-flagging. The deal in question is the 900K dollar sale of KSTR-FM from Leggett Broadcasting to MBC Grand Broadcasting. RBR observation: The law is the law. Maybe there should always be at least three strong radio competitors in a market. But when Congress decided that a radio cluster could go as high as six stations in a market with as few as 15 total stations, it should have considered the obvious: A lot of small markets would wind up with two strong groups and, at best, weak competition from a third owner, or even more fragmented competition from several even weaker owners. And so it goes....Period!
09/02/04 RBR #172

Toyota and NBC cut commercial-free deal for Pride debut
"Father of the Pride" on NBC, you may have noticed a distinct lack of commercials. That wasn't because NBC couldn't sell the spots, but rather because Toyota agreed to buy sole sponsorship of the debut of the animated series and have it run commercial-free - - with Toyota spots only before the beginning and after the end.
TVBR observation: We said it before so lets say it again - Content is King and clients will pay for it but the price is big. That is how network TV will compete against Cable. 09/01/04 TVBR #171


TV editor
Do you know the business of television? While other trade publications are cutting back, we're growing. Television Business Report (TVBR) is the hottest new electronic daily, backed by over 21 years of success at Radio Business Report. If you know who's who and what's what in TV & Cable, send resumes to CJCarnegie@rbr.com
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