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Volume 24, Issue 178, Jim Carnegie, Editor & Publisher
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Wednesday Morning September 12th, 2007
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TV News ®
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 CBS, FCC meet in
court over Nipplegate
The Third Circuit Court of Appeals in Philadelphia was the scene of the latest indecency over the airwaves battle. CBS, which has refused to pay a 550K fine over the infamous Super Bowl halftime show during which Janet Jackson had her wardrobe malfunction, argued that there was no basis for the fine. The FCC argued otherwise. CBS had noted First Amendment attorney Robert Corn-Revere arguing its case v. the FCC's Eric Miller. CBS is argued that it took multiple precautions to assure that the halftime show would hew to community standards of decency, that the malfunction, whether or not Jackson and her accomplice Justin Timberlake did it on purpose, was not scripted. Furthermore, the incident was isolated and was over in less than one second, putting it protection of the fleeting, isolated or unintended plank explained the FCC's decency guidelines. The FCC countered that CBS had many warnings beforehand that there may be a problem with the show, and that other portions of the same performance were already pushing the boundaries of decency; and the "highly sexualized" aspect of the program should have been a cue for CBS to take sterner precautions.
TVBR observation: The bottom line is that the rules, as understood when the incident took place, did in fact provide that fleeting incidents are not treated with the same harshness as a prolonged and premeditated incident would be, and were generally dealt with via a simple admonition. In this case, if you blinked when the incident happened, you missed it, and in point of fact, Jackson's exposed body part was not completely naked anyway. The bigger issue here, however, is the old ever-popular chilling effect. Are broadcasters supposed to simply cease the practice of live broadcast? Remember that it was after this incident that no less than President George W. Bush dropped an s-bomb within range of a mic. When all is said and done, the Janet Jackson incident was blown completely out of proportion, and punishing it is not worth the damage it may do to the ability to cover live events. It's time for America to just get over it.
US ad spend dropped 0.3% in first half of 2007
Total ad expenditures in the first half of 2007 slipped by 0.3% to 72.59 billion versus the same period in 2006, according to TNS Media Intelligence. Television was hardly alone in taking a hit, while online ad spending continued to grab share. Internet display advertising maintained its growth leadership position, registering a 17.7% increase to 5.52 billion in spend. Consumer magazines posted a 6.9% gain to 11.50 billion in advertising. Outdoor was up 3.6% to 1.90 billion and Cable TV followed with a 2.8% increase to 8.38 billion. Broadcast TV continued to experience weakness in Q2 and turned in significant half-year declines. Network TV spend fell 3.6% to 11.84 billion, while ad spending on Spot TV dropped 5.4% to 7.29 billion. Syndication TV was down 5.3% to 2.00 billion. Newspaper and radio also saw widening losses during Q2. For the half-year period, ad spending in Local papers plunged 5.7% to 11.09 billion on a reduction of 4.7% in space sold. Marketers lowered their radio ad budgets by 2.7%, to a total of 5.14 billion. During the first half, the top 10 advertisers spent a combined total of 9.0 billion, a reduction of 2.2% from last year. Q2 spending for this select group was up slightly, rebounding from a steep 5.1% decline during the first three months.
| See the TNS chart here |
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Major executive changes at Nielsen
 The Nielsen Company announced that three of the most senior executives in the company's television ratings service have been named to new roles within the company. The changes are effective October 1st.
Catherine Herkovic will become Senior Vice President and Managing Director, National Television Client Services, overseeing client services and sales for Nielsen's national television ratings business with responsibility for the company's broadcast and cable network, advertising agency, and syndication clients. Previously, she held a similar position in Nielsen's local television service.
Kevin Svenningsen will become Senior Vice President and Managing Director, Local Television Client Services and will lead Nielsen's local television ratings service responsible for client services and sales to television station and cable system clients. Previously he was Sr. VP, sales and marketing, for the Nielsen Agency, Broadcast and Syndicator Service.
Tom Ziangas will become Senior Vice President, Nielsen Sports, where he will oversee the development of new products, sales, client service and business strategy for television sports measurement. Previously he was Sr. VP, National Television Client Services with responsibility for all sales and marketing functions for national cable network clients.
Herkovic and Svenningsen will continue to report to Sara Erichson, Executive Vice President, Nielsen Media Research Client Services North America. Ziangas will report to Terrie Brennan, Senior Vice President, New Business Development & Strategy. "These appointments reflect the ongoing evolution of Nielsen's approach to client service. Our clients increasingly view the television industry as an integrated business and Nielsen is responding accordingly. Catherine, Kevin and Tom are well suited for their new challenges because they can call upon years of experience from their previous roles within the organization," said Dave Thomas, President, Media Client Services.
FCC mandates digital/analog must-carry
"Let's let the transition begin," said Commissioner Robert McDowell toward the end of last night's FCC Open Meeting. Quite a few people would have settled for "Let's let the meeting begin." Just 11 hours after the scheduled 9:30 am start time, Chairman Kevin Martin called the September FCC meeting to order. The delay was apparently due to successful attempts to achieve a compromise on cellular telephone re-banding. The evening meeting brought unanimous approval of two items dealing with video services. The Commission extended for five more years the ban on exclusive contracts by vertically integrated video providers, which the FCC staff determined "continues to be necessary to preserve and protect competition. A related Notice of Proposed Rulemaking asks whether the FCC should allow all channels to be offered on a standalone basis. Commissioner Michael Copps (D), hardly the closest friend of broadcasters, noted, however, that he did not want to inhibit the ability of broadcasters to negotiate for cable carriage of their additional digital channels. Chairman Martin made it pretty clear where he stands on the standalone idea. "I believe if you only want one channel, you should not have to take 10 or 20," he said.
In the key vote of the evening, the commissioners voted unanimously to authorize mandatory dual carriage of digital and analog broadcast signals, for at least three years after the DTV deadline of 2/17/09. Cable systems will be required to pass along both an analog and digital signal for broadcast stations (the FCC is seeking comment on whether this should apply to all stations or just stations opting for must-carry rather than negotiated carriage terms). Further, cable systems will be prohibited from degrading digital signals. If a broadcast station is broadcasting in high-def, the system must pass along high-def. A CATV trade magazine had reported earlier that the industry had offered to submit to mandatory dual digital/analog carriage for three years, and it at least got that wish, with the caveat that the FCC will conduct a formal evaluation of dual carriage during the third year and will have the option to extend the obligation. "This item at its core is about consumers," said Martin. The goal is that cable subscribers who watch a broadcast television station on 2/16/09 will be able to watch it again on 2/17/09. No matter what.
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 Spanish debate outdraws
English match-ups
For the first time ever, candidates for President of the United States appeared in a telecast debate aimed at Spanish-speaking Americans and Univision is crowing about its audience draw. Sunday's Democratic Presidential Candidate Forum, broadcast live from the University of Miami in Coral Gables, FL, drew 4.6 million viewers, according to Nielsen Fast National Ratings. The previous English-language debates drew an average of 4.3 million viewers. "The enormous audience that tuned in to witness this historic event just goes to prove that Hispanics are eager to hear the presidential candidates speak directly to them about the issues they care most about - issues that are both unique to their community and impact the nation as a whole," said Univision communications CEO Joe Uva (pictured). Univision is planning a similar event for the Republican candidates.
TVBR observation: We noticed some criticism of the debate format, chiefly that two Univision anchors were the only questioners, with no other journalists involved and no questions from the audience. Our experience has been that the fewer people asking the questions and the better prepared they are, the better for everyone. We would note that Tim Russert from NBC is the master. The nature of a two-language debate is that it will seem slow, since every question and answer has to be immediately translated. Did bi-lingual Hispanic Gov. Bill Richardson (D-NM) score points with Hispanic voters by trying to answer in Spanish, or did he come off looking like a jerk for deliberately breaking the rules that he had agreed to?
News smorgasbord
There was a little bit of something for everyone during the week of 9/2/07-9/7/07, according to the Project for Excellence in Journalism's latest coverage chart. Washington and the nation had been focusing on the visit to Capitol Hill by General David Petraeus, which was more than enough to vault the Iraq policy debate to the top of the chart with a convincing 17% of the total newshole. But beyond that, there was an election battle still being waged in both parties, scandal involving a sitting US senator, a video visit from Osama Bin Laden and a serious hurricane to cover. There was even a tabloid element on the top 10 list as the ongoing saga of the missing UK girl pulled a 2% share of available time and space. The high focus on Iraq and the 2008 presidential campaign ate up nearly 30% of total focus between them, which left a lot of other stories competing for the remainder. The individual media lists show stories with unusually high newshole percentages in one sector, but which failed to garner enough cross-media interest to make the overall list.
| Top ten lists here |
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Ad Business Report TM
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 P&G still the big spender
P&G maintained its spot atop the rankings by TNS Media Intelligence in the first half of 2007, with 1,611.8 million in spending, up 1.8% from last year on the strength of an 11.7% increase during Q2. Telecommunication companies claimed three of the top ten spots. AT&T expenditures were off 12.5% to 1,100.2 million. GM slashed its budgets by over 100 million in Q2, marking the fifth consecutive quarter in which expenditures fell by at least 15%. It finished the half year with 958.9 million in spending, a 25.1% decline versus a year ago. The Top 10 ad categories in the first half spent an aggregate 36.47 billion, down 0.5% from a year ago. Financial Services maintained its top position with 4.49 billion in expenditures, up 3.5%. In Q2, an average hour of monitored prime time network programming contained 8 minutes, 4 seconds (8:04) of in-show Brand Appearances and 17:25 of commercial messages. The combined total of 25:29 of marketing content represents 42% of a prime-time hour. Unscripted reality programming had an average of 11:52 per hour of Brand Appearances as compared to just 5:34 per hour for scripted programs such as sitcoms and dramas. Late night network talk shows had even higher levels, averaging 14:12 per hour. The combined load of Brand Appearances and ad messages in these shows reached 35:55 per hour, or 60% of total content time.
| See the TNS charts |
NPR, WGBH acquire NPB
NPR and WGBH Boston have made an offer to acquire National Public Broadcasting, LLC (NPB), the leading multi-market sponsorship rep for public television and radio stations. The offer has been accepted in principle by Williams Communications, Inc., majority owner of NPB. Combining NPB with NPR Corporate Sponsorship, NPR and WGBH will form a new independent non-profit company to represent sponsorship across all media for public broadcasting. This new entity will become the largest and most comprehensive rep for national and local public radio, television and multimedia. NPB CEO Robert Williams will retain that role with the new company. Ken Stern, NPR CEO, will additionally assume the Chairman of the Board of this new entity; Jonathan Abbott, COO and President-Elect of WGBH, will also serve on the board. The deal should close by the end of October.
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| Media Business Report TM |
DMA's latest catalog marketing study
The Direct Marketing Association's Multichannel Marketing in the Catalog Industry report reveals nearly 70% of respondents reported increased multichannel sales over the prior year, and 59% reported increased catalog circulation in 2006. Among those surveyed who have mail-order catalogs, 44% of total sales are consummated via the web (vs. mail and telephone), up from 39% in 2005. 33% of respondents believed that their online sales were "incremental," i.e., that they would not have received the order without the existence of their website. Respondents whose online sales are increasing reported an overall 20% growth rate. 45% of respondents said their "website/e-catalog" was their primary marketing channel. This was followed by paper catalog (33%) and retail stores (22%).
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| Media Markets & Money TM |
LPTV is first TV buy for radio group
George Laughlin's GAP Broadcasting is picking up an intact radio cluster that includes two AMs, four FMs and even an independent Class A television station in Lake Charles, Louisiana. The seller is G. Dean Pearce's Apex Broadcasting Inc. According to brokerage firm Kalil & Co., the price is 13.5M. "We are very excited to have Lake Charles as our newest addition to GAP Broadcasting," said Laughlin. "Apex's team has established a strong market share and we look forward to continued growth in ratings and revenue as part of our regional platform." The stations include KJEF-AM, KLCL-AM, KTSR-FM, KHLA-FM, KNGT-FM, KJMH-FM & KJEF-CA, the Class A LPTV on Channel 13.
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| Washington Media Business Report TM |
 KODL yodel from
wrong site draws fine
Al Wynn has had what many might consider an unusual house guest for the past few years: his AM radio station. Wynn has been operating KODL-AM The Dalles OR from his home, about a half mile from its licensed transmitter location. What makes the situation doubly unique is that the station did do that legally at first, as licensee Larson-Wynn Inc. requested and received an STA allowing the move on a temporary basis. Then the fun begins. KODL requested an extension of the STA on 8/31/04, and about three weeks later the FCC returned it on grounds that the applicable fee was not included with it. Eau contraire said the station, we did send the fee, and had the cancelled check to prove it. In a just society, you'd think that would let the station off the hook, but there remains one last twist to this tale. The original STA expired 2/25/04, about six months before KODL applied for the extension. The assessed fine for this infraction was 4K, but given errors on both sides of the table and KODL's good-faith efforts to handle the matter according to the book, the FCC decided to split the difference and knock the assessment down to 2K.
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| Cable Business Report TM |
Insight off the auction block
The current tightening of credit availability for large deals has taken its toll again. Both the Wall Street Journal and Reuters say Carlyle Group has taken cable MSO Insight Communications off the market until conditions improve. Carlyle, one of the largest private equity groups, bought Insight in late 2005 for 2.1 billion bucks. It had hoped to sell the largely Midwestern MSO for over three billion, which would be a pretty good profit for less than two years of ownership. But, with the current tightening of credit for mega deals, the initial bids reportedly came up short.
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| Entertainment Media Business Report TM |
Dancing shows are hot!
The latest to get into the dancing competition reality genre is NBC Universal's Bravo network, which began casting calls this week in New York, Chicago, LA and Atlanta for "Step It Up." The dance reality competition series is produced by Magical Elves' producers Jane Lipsitz and Dan Cutforth. Created by Gunnar Wetterberg for Magical Elves, Bravo says Step It Up "will show what it takes to make it big in the cutthroat dance industry." Dancers will be challenged to master every conceivable dance style, from ballet and ballroom to Broadway and burlesque. No debut date has been announced.
 Sillerman has another
hit on his hands
Robert F.X. Sillerman has been out of the radio business for some time now, but he continues to have success in other areas. Ticket sales began this week for "Young Frankenstein," with hundreds lining up to be among the first to snare tickets to what's already being heralded at a likely Broadway hit. The cheapest seat (other than a special lottery for some primo tickets at only 25 bucks) is 50 bucks and they go as high as 450. What's fueling the hot ticket sales, in part, is the success of its predecessor, "The Producers," which is still playing on Broadway, and on the road, more than six years after its 2001 debut. Sillerman and Mel Brooks are the producers of "Young Frankenstein," which, like "The Producers," is a musical based on a Brooks movie. Previews begin October 11th and the show officially opens November 8th.
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| Ratings & Research |
Football scores for NBC
The Peacock net won for total viewership, households and pretty much across the board last week with a heavy dose of NFL football. The four top-rated shows for the week were all football and all on NBC. For HH it was NBC, CBS, a tie by Fox and ABC, Univision, CW, MyNetworkTV, Telemundo, Ion, TeleFutura and Azteca America. The 18-49 rundown was NBC, a tie by Fox and CBS, ABC, Univision, CW, Telemundo, MyNetworkTV, TeleFutura and a tie by Ion and Azteca America.
| Here are the week's top 20 shows |
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| Transactions |
3,242,500 KTBY-TV Anchorage AK (Fox Ch. 4) from Piedmont Television of Anchorage License LLC (Paul Brissette) to Coastal Television Broadcasting Company LLC (William Fielder III). 549.5K in pledged units of Fielder's LP, balance in cash at closing. [File date 8/27/07.]
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| Stock Talk |
Would you like fries with those shares?
A strong sales report from McDonald's and rising hopes of a Fed rate cut gave stocks a boost. The Dow Industrials rose 181 points, or 1.4%, to 13,308.
Most TV stocks were higher. Lincoln Financial led the way, up 2.4%. Nexstar rose 2.3%.
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| Stocks |
Here's how stocks fared on Tuesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Acme
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ACME
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4.05
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+0.19
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Lincoln Natl.
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LNC
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60.80
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+1.45
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Belo
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BLC
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17.43
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+0.09
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LIN TV
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TVL
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12.24
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+0.13
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| CBS CI. B |
CBS |
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31.04
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+0.31
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McGraw-Hill
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MHP
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49.67
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+0.66
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| CBS CI. A |
CBSa |
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31.05
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+0.37
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Media General
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MEG
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27.56
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-0.04
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Clear Channel
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CCU
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37.70
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+0.13
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Meredith
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MDP
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56.74
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+0.52
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Disney
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DIS
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33.49
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-0.07
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News Corp.
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NWS
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22.55
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+0.16
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Emmis
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EMMS
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6.08
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-0.11
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Nexstar
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NXST
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9.92
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+0.22
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Entravision
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EVC
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9.21
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+0.04
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Ion Media
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ION
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1.33
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-0.03
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| Equity Media |
EMDA |
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3.12 |
unch |
Saga Commun.
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SGA
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7.11
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-0.09
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Fisher
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FSCI
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47.27
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-0.69
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SBS
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SBSA
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2.65
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+0.03
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Gannett
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GCI
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45.57
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-0.60
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Scripps
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SSP
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40.80
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-0.34
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Gen. Electric
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GE
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39.50
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+0.31
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Sinclair
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SBGI
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12.28
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+0.20
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| Google |
GOOG |
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521.33
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+6.85
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SWMX
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SWMX
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0.05
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unch
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Gray
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GTN
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8.65
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+0.06
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Time Warner
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TWX
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18.30
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+0.10
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Gray, C1. A
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GTNa
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8.41
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-0.01
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Tribune
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TRB
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27.51
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+0.47
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Hearst-Argyle
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HTV
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25.51
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-0.02
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Wash. Post
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WPO
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781.50
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-0.60
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Journal Comm.
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JRN
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10.00
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+0.10
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Young
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YBTVA
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2.04
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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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Below the Fold
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Ad Business Report
P&G still the big spender
Maintained its spot atop the rankings and increase in ad spending...
Media Markets & Money
LPTV is first TV buy
For Radio group GAP Broadcasting is picking up an independent Class A...
Entertainment Media
Business Report
Sillerman has another
Hit on his hands w/ticket sales began this week for Young Frankenstein...
Ratings & Research
Football scores for NBC
Won for total viewership, households and pretty much across the board...
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Stations for Sale
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 Market your Stations For Sale
in our daily epapers.
Contact
June Barnes
jbarnes@rbr.com
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TV Media Moves
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 Lange sets retirement
Kansas Association of Broadcasters President Harriet Lange has announced her plans to retire on December 31, 2007. She completed her 25th year at the KAB on August 1st. The KAB Board of Directors has appointed a search committee to find a replacement. The KAB inducted Lange into the Kansas Broadcasting Hall of Fame in 2003 and recognized her with the Distinguished Service Award in 2006.
Browns goes Outdoor
Outdoor Channel announced the appointment of cable television distribution veteran Randy Brown as Senior Vice President, Affiliate Sales & Marketing. Brown most recently led affiliate sales as senior vice president of distribution for The Tennis Channel and served as co-founder for the Association of Independent Programming Networks.
 Sagansky to PeaceArch
Former Paxson Communications CEO Jeff Sagansky, who was an executive with CBS, Sony Pictures and TriStar before that, has been named Co-Chairman of the board at PeaceArch Entertainment. PeaceArch is creating and acquiring TV, film and DVD content for worldwide distribution.
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RBR - Radio News
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XM/Sirius tout a la carte offerings
Here's a shocker. Merger-hungry satellite services XM and Sirirus conducted a poll on a la carte menu offerings and darned if the results weren't favorable. Various pluralities agreed that certain packages the pair contemplate offering if the merger goes through would be "good for consumers." Respondents saying "good" to various packages ran from 77% to 62%. When it came to family-friendly menus, XM/Sirius cited 2-to-1 approval, with 56% calling it good against 29% calling it bad. A similar plurality said these packages make the merger a good rather than bad idea to the tune of 57% to 28%. Pollster Robert Autry, partner of Public Opinion Strategies, LLC, which conducted the survey, said, "These numbers are even more impressive when you consider that recent public opinion studies have shown the American public to be skeptical about the impact mergers will have on consumers and the country."
However, NAB was interested in the questions that weren't asked. NAB EVP Dennis Wharton said, "Here's what XM and Sirius conveniently did not ask poll participants: Do you like monopolies? Does competition restrain a monopolist's price-gouging? Should government reward two companies that routinely violate FCC rules with a monopoly? Did you know you will have to buy a new radio that costs 200 or more to get the alleged benefits of a la carte programming? Did you know that Howard Stern and other 'talent' will cost consumers more - not less - under a la carte? Did you know that under a la carte, the per-channel price of a merged XM-Sirius will rise by 40 percent to 188 percent? Today's poll signals the lengths to which XM and Sirius will game the system in order to achieve monopoly status."
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TVBR Radar 2007
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Television News you won't read any where else. TVBR--First, Accurate, and Independently Owned.
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"If you can't detect, you must reject"
Those are the words of Association of Maximum Service Television's David Donovan, and they sum up the opinion of a coalition of broadcasters, manufacturers and major sports organizations who oppose the crazy notion of opening up television spectrum to a wild, wild West of unlicensed devices just as the DTV transition approaches its endgame. NAB's David Rehr (pictured) said, "Only in Washington would we have to make the case for interference-free TV," and noted that the concept is essentially a no-brainer just about everywhere else outside the Beltway. Donovan noted that even the smallest amount of interference is enough to wipe out a digital picture, and that disruption potential would be measured in miles.
TVBR observation: Rehr believes that the white space proponents have been seriously damaged by their test failures, and is hoping to drive a stake through the heart of unlicensed devices while they are down. But it's hard to believe this idea has gotten any traction at all. Unless Martin and the other commissioners want a DTV system featuring brilliant crystal-clear screen lock, they would do well to say a few words over the proposal and then give it a decent burial.
09/11/07 TVBR #177
Flexibility key to broadcast survival
Speaking at a conference in the Netherlands, Consumer Electronics Association honcho Gary Shapiro said, "Broadcasters no longer enjoy a monopoly on content delivery. Ears and eyes once devoted exclusively to broadcasters are now being drawn in by new forms of content and new methods of delivery." But those able to anticipate where consumers are headed will do just fine. His advice for broadcasters? Use broadcasting's spectrum advantage. "As broadcasters, you own the highest quality spectrum there is, able to reach almost every household by geographic region. This enormous bandwidth is more accessible than any other network owner-including cable, satellite and mobile.
TVBR observation: Shapiro's membership will face its own challenges during the upcoming transitional tumult, but for the most part they will simply sit back and benefit no matter what happens. New technology will render much of the electronic hardware in the average household obsolete (we haven't gotten rid of our vinyl yet and now they're saying CDs are on their last legs!), meaning these households will head to their local electronics store for an update, thereby filling CEA-affiliated cash registers. The challenge for broadcasters is much more perilous - to make sure that they are a key medium being delivered on whatever devices consumers are buying. However, despite rapid change and audience erosion, no technology has emerged that even comes close to broadcasting's ability to provide a mass audience. Hanging on to that attribute will be a key to the medium's future.
09/10/07 TVBR #176
PPM problems hit
Arbitron's stock price
Arbitron missing its Portable People Meter (PPM) sample targets in Philadelphia and Houston has been big news in RBR and other radio publications for weeks now - but it hit the Associated Press wires Friday morning and sent Arbitron's stock price dropping. The stock fell as much as 1.43 shortly after the AP story came out, but recovered as the day went on, closing with a loss of 72 cents.
RBR observation: Arbitron has a number of issues to over come. RBR lists two in this report. RBR's view, the glass is half full. Details in this report.
09/10/07 RBR #176
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New Listing
Affiliate Sales Rep
WOR Radio Network's (WRN) needs an exec with Passion for Talk Radio. Self-starter w/ 2-5 yrs experience. Work independently and achieve goals to increase market coverage and audience delivery for our Nationally Syndicated programming. Business is about relationships and candidate with strong database in Talk Radio will win big time. Offering competitive salary + commission plan, health insurance and 401K. WRN is the place to be to succeed with stability. Details & Apply
See Radio Careers
General Manager
Midwest & Life is good with this Small-Medium cluster in rated market. Top Aggressive, community minded GM needed. We're reentering ownership so don't be concerned that you're already working for us. Have a track record of performance, strong on sales and ideas. Ability to get the most out of a talented staff. Tired of the corporate jungle and want to work in real radio. This GM post for the person with Radio Passion. Details where to apply
See Radio Careers
Hard finding that key person
to fill the important position at your organization? Media HeadHunters is the place that key media firms use to get results. See Media HeadHunters and get results with service.
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