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Volume 24, Issue 179, Jim Carnegie, Editor & Publisher
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Thursday Morning September 13th, 2007
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TV News ®
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TV station revenues fell 6.6% in Q2
Hot on the heels of last week's forecast of 9-10% growth for all of 2008, the TVB is reporting that the present year is showing the down pattern of a non-election year. Local TV station revenues for Q2 (national and local spot combined) were down 6.6%. Throw network and syndication into the mix and the Q2 decline was 2.8%. Automotive continued to be a drag on the tally. The #1 ad category was down 10.2% from Q2 a year ago. Telecommunications gained 9.5% and moved into the #2 slot, ahead of Restaurants, down 3.4%. #4 Car & Truck Dealers was up 1.2% and #5 Furniture Stores was down 3.7%.
2nd QUARTER 2007 SUMMARY - LOCAL BROADCAST: Top 100 Markets
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2nd Qtr 2007
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2nd Qtr 2006
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% Change
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Local Broadcast TV
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3,848,603,400
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4,119,829,000
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-6.6
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Syndicated TV
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1,010,913,100
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1,060,510,600
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-4.7
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Network TV
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6,599,439,400
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6,612,768,500
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-0.2
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Total Broadcast TV
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11,458,955,900
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11,793,108,100
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-2.8
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FIRST HALF 2007 SUMMARY - LOCAL BROADCAST: Top 100 Markets
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First Half 2007
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First Half 2006
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% Change
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Local Broadcast TV
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7,887,344,700
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8,283,418,100
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-4.8
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Syndicated TV
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1,997,671,000
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2,109,131,400
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-5.3
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Network TV
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13,323,264,300
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13,805,426,700
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-3.5
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Total Broadcast TV
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23,208,280,000
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24,197,976,200
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-4.1
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Copyright 2006, 2007. TNS Media Intelligence
Kid-oriented companies in the news
Mattel and Burger King are no strangers to the preteen market and no doubt have a great deal of experience marketing their wares to the elementary school demo. But both, for entirely different reasons, may wish to make a push to get their message in front of adults. In Mattel's case, it has suffered a rash of product recalls linked to manufacturing operations in China. It got to the point that Mattel CEO found himself testifying before the Senate Appropriations Committee. Eckert said that his company is not perfect, but that it is certainly capable of changing both its own standards and those of the toy industry in general. Jerry Storch of Toys R Us also spoke at the hearing, underscoring that consumers must trust the safety of the products one makes and the other vends. The toy industry in general and Mattel in particular may be wise to use the media to inform adults on measures taken to guarantee the quality and safety of these products. On the other side of the coin, Burger King is putting out a new children's menu which will turn a nutritional negative into a positive. It will be offering flame-broiled (rather than fried) chicken, along with organic unsweetened applesauce and low fat milk, and has a revolutionary new product in the pipeline it calls BK Fresh Apple Fries. These are cold peeled apple sticks cut to resemble fries and served in a typical fast food french fry container. Burger King would be very smart indeed to make sure parents are as aware of these new items as children will be.
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Carrying on about carriage
Both the NAB and the NCTA hailed the FCC's decision on mandatory dual carriage of both digital and analog television streams during the first three years of digital-only broadcast (with provisions for an extension if necessary). However, that approval did not extend to the American Cable Association, the organization of smaller operators. NAB EVP Dennis Wharton said, "Yesterday's ruling is an important step in protecting analog cable subscribers from losing access to some of the most diverse programming on television, including religious and Spanish-language programming. NAB applauds the FCC for crafting a solution that prevents cable gatekeepers from discriminating against niche and minority TV stations that play a vital role in the fabric of American society. We also salute the FCC for protecting consumers against material degradation by cable operators. For over a decade, broadcasters have embarked on a monumental effort to bring Americans the most pristine television pictures ever witnessed by the human eye. Yesterday's FCC rulings ensure that cable operators not be allowed to thwart that mission."
At NCTA, Kyle McSlarrow was also claiming victory, saying, "I want to thank each member of the FCC for engaging so constructively and fairly with our industry...We are pleased that the FCC's action today adopts cable's carriage plan. And we are pleased that the FCC dropped an ill-considered mandate that would have turned back the clock on decades of digital technology innovation. We continue to urge the FCC to act quickly to take into account the special circumstances of very small systems, and to make clear that those systems have the flexibility to serve all their customers without a one-size fits all mandate." McSlarrow was talking about ACA members at the end, there, and ACA's Matt Polka was not happy with the rules. "The ACA and its membership are disappointed because the order fails to sufficiently recognize the detrimental impact that this carriage requirement will have on small, rural cable operators and their ability to provide broadband services." He said the cost of dual carriage could exceed 150K annually, forcing tough choices up to and including a possible decision to go out of business.
TVBR observation: Commissioners Michael Copps (D) and Jonathan Adelstein (D) both mentioned the plight of small operators. They will be able to apply for a waiver of the dual carriage requirement, but the two Democrats felt there should have been a blanket exemption for systems falling beneath certain agreed-upon benchmarks. We'll have to see if ACA can make enough noise to provoke a further notice on this topic.
Lawsuit against Imus dropped
Rutgers women's basketball player Kia Vaughn has dropped her libel, slander and defamation lawsuit against Don Imus. Her attorney told local newspapers that she decided not to pursue the lawsuit, which had been filed in a Bronx court, because she is too busy focusing on academics and training for the upcoming basketball season. Rutgers was the runner-up in last year's women's NCAA championship, which set the stage for Imus' on-air comment calling the team members "nappy headed hos." Vaughn had filed her lawsuit the same day that Imus reached a settlement with CBS Radio over his firing and cancelled contract. Imus was also fired by CNBC, which had simulcast his morning radio show. His attorney denies that Imus made any payment to Vaughn.
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Fools rush in? The proposed merger of XM and Sirius satellite radio operations seems to have found a new fan: Wall Street watchdog The Motley Fool. "They're picking curtains, not coffin drapes. They're looking at honeymoon brochures instead of divorce papers," writes the Fool, anticipating eventual regulatory approval for this wedding. "Even graying regulators are beginning to see that the marketplace is evolving with every passing digital audio introduction." The Fool noted the NAB's opposition, which it says lacks "a firm footing." It says that the NAB claim that the merger will bring with it increased costs for both subscriptions and equipment have been addressed by a "cynic-popping move," the provision of special packages for as little as 6.99 a month, allegedly sending the NAB back to its original objection to a merger in violation of the companies' charters. Reports note that the merger's 180-day regulatory clock is set to expire in December, and FCC Chairman Kevin Martin expects to deal with it within that time frame.
TVBR observation: Huh? The Fool mentions one bare-bones 6.99 tier and fails to notice that most of the packages cost close to or more than the 12.95 monthly pricetag currently attached to these services, all for less channels. And it doesn't drop one atom of ink into explaining how the one 6.99 tier gets a subscriber around the need for a new receiver, especially since the two companies have already ignored the requirement that they use interoperable equipment. And the Fool fails to note the fact that price capping has been prominently discussed as a mechanism to enable this merger to go through, something that would not be necessary if true competition were going to be present. If the government has to have a role in pricing, than we are not talking about free enterprise. We're talking about a monopoly of convenience. But it won't be convenient for consumers or programmers stuck with only one place to go if they want a mobile service or have a program to sell.
McCain hoping to piggyback
a la carte on channel tying
The FCC is accepting commentary on the practice of forcing cable operators to carry channels they don't want in order to get one they do. Hypothetically, the producer of, say, "The Excellent Channel" may force a system to also provide a slot for its other products, like "The Mediocre Channel," "The Boring Channel" and "The Sleep-Inducing Channel." Leave it to John McCain (R-AZ) to seize this as an opportunity to beat the a la carte drums again. "I applaud the FCC for its decision to open a proceeding that I hope will lead to consumers being given more choice and greater control over their television viewing options," he said. Hopefully, consumers will soon have the ability to buy from their cable providers only the channels they watch and are willing to invite into their homes for viewing."
TVBR observation: Unless we're very much mistaken, the issue cable operators face when forced into the situation described above is not so much one of cash outlay, it's about managing their channel capacity. The system may know full well that there are three channels out there that subscribers would be much more interested in than the ones that "The Excellent Channel" is trying to cram down its throat. The situation has nothing in common with a la carte, which at its core is not really about economics (the numbers just don't add up). It's about decency. We would guess that small operators in particular would rather negotiate with "The Excellent Channel" under the current rules rather than face the headache and expense of overturning their entire business model to accommodate a la carte. Mr. McCain, if you don't like the channel, block it.
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Ad Business Report TM
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CBS and Cadillac pact for Fall Premiere party
CBS has entered into an exclusive partnership with Cadillac to launch the Network's Monday night primetime lineup and unveil the 2008 Cadillac CTS. The multi-platform campaign, dubbed "The Cadillac of Premieres," will include client-integrated promotions for television, Internet, and print and will cap off with a Cadillac-sponsored premiere party attended by stars from all of CBS's Monday night shows. This marks the first time CBS has worked exclusively with one client to launch a single night's lineup. The launch includes a print extension, featuring the world's smallest USB stick packaged into the 9/21 issue of Entertainment Weekly magazine (on sale Sept. 14). The re-useable flash drive will come filled with content from CBS's Monday night lineup and previews of the 2008 Cadillac CTS. The device will also allow users to download a widget that will provide them with constant updates relating to CBS programming and the Cadillac Promotion as well as a video player showcasing the network's daily schedule and episode previews.
MindShare scores Summit Entertainment
Summit Entertainment, a new worldwide theatrical motion picture studio, has selected MindShare to handle media assignments for its US Theatrical and Home Entertainment divisions following a multi-agency pitch. MindShare's LA office will handle the planning and implementation. The studio, founded this Spring, develops, produces, acquires, markets and distributes filmed entertainment across all media. Summit's plans call for a release of an average of 10-12 films annually.
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| Media Business Report TM |
An up month for NYT Co.
Just barely, though. The New York Times Company reports that August revenues from continuing operations rose 0.6% to 218.5 million. Double digit gains in Internet revenues saved the month, with ad revenues for the New York Times Media Group (New York Times, WQXR-FM NYC and related websites) up only 0.2%. Ad revenues were down 9% for the New England Media Group (anchored by the Boston Globe) and 11.9% for the Regional Media Group (16 regional newspapers). Internet ad revenues for the entire News Media Group gained 28.2%, while the About Group (led by About.com), which is all web-based, saw growth of 27.4% to 7.2 million. For the News Media Group, national advertising was the bright spot, up 8.8% to 55.1 million. Retail declined 5.5% to 29.5 million and classified plunged 20% to 32.9 million.
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| Washington Media Business Report TM |
Burger King gets a round of applause on Capitol Hill
We weren't the only ones to notice Burger King's move to help combat childhood obesity (see related story above). BK joined 11 other food companies in pledging to restrict advertising to preteens, earning the praise of key legislator Ed Markey (D-MA). "Burger King is making a whopper of a commitment to public health by voluntarily setting nutrition standards on advertising directed at children. I commend the Burger King Corporation for joining Kellogg, McDonalds, Coca-Cola, Kraft, General Mills and others, in making such commitments. These commitments are a positive step in our nation's fight against the childhood obesity epidemic," he. On the down side, Markey also called attention to Chuck E. Cheese, Nestle, ConAgra, Dannon, and Yum! Brands. That's because they have yet to come into the fold. He fired off letters to each urging them take the pledge themselves.
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| Cable Business Report TM |
Samples taking the helm at HGTV
Jim Samples has been tapped to be the next President of HGTV, the flagship cable network of Scripps Networks. He will succeed Judy Girard, who has announced plans to retire (7/17/07 TVBR #138). Samples will join HGTV October 1st and work with Girard for a transition period before she retires later this year. "This is by no means a makeover. It's the best of both worlds as we bring in a proven industry executive to build on the long-running success of one of America's most admired television networks. Like Judy, Jim knows how to create compelling, original programming that viewers love while also broadening the appeal of the brand to attract new audiences," said John Lansing, President of Scripps Networks. Samples has been in the television industry for nearly 15 years, rising through the ranks of Turner Broadcasting to the position of Executive Vice President and General Manager of Cartoon Network Worldwide.
TV5Monde USA signs Cablevision deal
The US outlet of France-based TV5Monde announced a companywide deal with Cablevision to begin airing this month on the entire Cablevision cable footprint as Channel 267. TV5Monde USA will become the first French channel to be available throughout the Cablevision systems. The network already has distribution deals with EchoStar and cable systems belonging to Comcast, Time Warner and Cox.
TVBR observation: Note to Kevin Martin - this is one of the channels that might have a very hard time if you are successful in your efforts to institute a la carte.
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| Entertainment Media Business Report TM |
Stewart gets second shot at the Oscars
John Stewart, host of Comedy Central's "Daily Show," will make a return appearance as host of the 80th Academy Awards, to be broadcast live Sunday, February 24th on ABC. "I'm thrilled to be asked to host the Academy Awards for the second time because, as they say, the third time's a charm," said Stewart. Ellen DeGeneres was host this year, following Stewart's first stint hosting the Oscars in 2006. His performance, which included some of his trademark political jokes, drew mixed reviews - but also helped draw younger viewers to the awards ceremony broadcast.
Five from Fox get the Biz
Fox Business Network (FBN) has named five anchors from the Fox News Channel (FNC) to the on-air team when the new net launches next month, announced Kevin Magee, Executive Vice President, Fox News. They join Neil Cavuto, Senior Vice President and Managing Editor of Business News, and Alexis Glick, Director of Business News. The anchors include: David Asman; Cheryl Casone; Rebecca Gomez; Dagen McDowell, and Stuart Varney. FBN will also draw upon FNC anchors Brenda Buttner of "Bulls and Bears" and Terry Keenan, business correspondent and anchor of "Cashin' In." All will retain their current roles on FNC.
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| Stock Talk |
Caution on Wall Street
Stock prices ended Wednesday's session just about where they began. Traders remained cautions, trying to figure out what the Fed will do next week. Cut rates? And if so, how much? The Dow Industrials slipped 17 points for the day to 13,292.
TV stocks were mixed. Saga was the best performer, up 2.7%. Nexstar was at the other end of the spectrum, down 3.5%.
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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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4.00
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-0.05
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Lincoln Natl.
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LNC
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61.26
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+0.46
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Belo
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BLC
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17.28
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-0.15
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LIN TV
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TVL
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12.15
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-0.09
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| CBS CI. B |
CBS |
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30.25
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-0.54
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McGraw-Hill
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MHP
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50.13
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+0.46
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| CBS CI. A |
CBSa |
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30.25
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-0.55
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Media General
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MEG
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27.32
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-0.24
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Clear Channel
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CCU
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37.70
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unch
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Meredith
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MDP
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56.80
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+0.06
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Disney
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DIS
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33.72
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+0.23
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News Corp.
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NWS
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22.41
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-0.14
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Emmis
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EMMS
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6.01
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-0.07
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Nexstar
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NXST
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9.57
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-0.35
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Entravision
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EVC
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9.14
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-0.07
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Ion Media
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ION
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1.32
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-0.01
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| Equity Media |
EMDA |
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3.10 |
-0.02 |
Saga Commun.
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SGA
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7.30
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+0.19
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Fisher
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FSCI
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47.04
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-0.23
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SBS
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SBSA
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2.57
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-0.08
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Gannett
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GCI
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44.93
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-0.24
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Scripps
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SSP
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40.87
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+0.07
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Gen. Electric
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GE
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39.90
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+0.40
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Sinclair
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SBGI
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12.10
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-0.18
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| Google |
GOOG |
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522.65
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+1.32
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SWMX
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SWMX
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0.05
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-0.01
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Gray
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GTN
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8.51
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-0.11
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Time Warner
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TWX
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18.56
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+0.26
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Gray, C1. A
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GTNa
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8.37
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-0.01
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Tribune
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TRB
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27.41
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-0.10
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Hearst-Argyle
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HTV
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25.55
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+0.04
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Wash. Post
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WPO
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779.03
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-2.47
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Journal Comm.
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JRN
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9.92
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-0.08
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Young
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YBTVA
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2.06
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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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Cable Business Report
Samples taking the helm
At HGTV. Jim Samples has been tapped as the next Pres of HGTV, the flagship cable network of Scripps Networks...
TV5Monde USA signs
Cablevision deal. Note to Kevin Martin- this is one of the channels that might have a very hard time if...
Entertainment Media
Business Report
Five from Fox get the Biz
Fox Business Network (FBN) has named five anchors as it readies...
Getting a second shot
At Oscars, John Stewart, Comedy Central's "Daily Show," will make a return appearance...
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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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Upped at NBC
O&O group
KNSD-TV (Ch. 39, NBC) San Diego General Manager Phyllis Schwartz has been has been promoted to Executive Vice President, News, Promotion and Original Content for the NBC O&O stations division. NBC Universal Television Stations President John Wallace also announced that Steve Schwaid has been appointed to the newly created position of Senior Vice President, Strategic Growth Initiatives. The search is underway for a successor to Schwartz at KNSD, which is jointly owned by NBCU and LIN, but managed as an NBC O&O.
Another hat for Barrett
David Barrett, who is already President and CEO of Hearst-Argyle Television and a board member of Hearst Corporation and Hearst-Argyle Television, has been elected as one of the 13 lifetime testamentary trustees of the trust established under the will of William Randolph Hearst. The announcement was made by Victor Ganzi, President and CEO of Hearst Corporation, and George R. Hearst Jr., Chairman of the board of directors of Hearst Corporation. Barrett succeeds Raymond Petersen, who passed away on July 11th, after 38 years as a trustee.
Raising the Escobar
at Sucherman
Media and entertainment specialist Sucherman Consulting Group Inc. has added Ramon Escobar to its senior management team, where he'll work in the fields of news & journalism, entertainment programming and international markets. He was most recently with NBC/Telemundo, a company which will join many others on his new client list.
Petry Media
taps Reinbach
Petry Media announced David Reinbach has been hired as Corporate Head of Direct Response. Reinbach is located in New York and will lead a team of salespeople responsible for selling the television and Internet properties represented by Blair Television, Petry Television, Petry International and Digerati iSales. He joins Petry from Zenith Optimedia Direct where he was VP/Business Development from 2005.
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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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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.
TVBR observation: Complete analysis with chart for you to print out is in this special page report.
09/12/07 TVBR #178
FCC mandates
digital/analog must-carry
"Let's let the transition begin," said Commissioner Robert McDowell toward the end the 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. 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. Also, 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.
TVBR observation: The details are at length in TVBR.
09/12/07 TVBR #178
"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.
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.
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
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