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Volume 22, Issue 180, Jim Carnegie, Editor & Publisher

Wednesday Morning September 14th, 2005

TV News®

TV revenues plunge at Gannett
Gannett reports that TV revenues nosedived 35.7% in August, with the lack of political and Olympics revenues blamed for the sharp decline. Pro forma August revenues for the TV division, including recently acquired Captivate (in-elevator video), dropped 34.9% in August to 50.1 million. The company said the drop for its TV station group was 35.7%, reflecting the absence of Summer Olympics-related ad demand and "significantly lower political advertising." Local revenues fell 27.2% and national plunged 48.6%. Based on current pacings, Gannett said Q3 TV revenues are down in the "very high teens." It said that's due mostly to the absence of over 50 million in political and Olympic advertising in Q3 of 2004. The lack of Olympics-related advertising also hurt USA Today, Gannett said, so national ad revenues were down 8.2% for the newspaper division in august. Local dipped 1.2% and classified rose 2.5%. In all, newspaper ad revenues for the month were down 0.6% to 400.8 million.

Viacom and Comcast preparing joint venture?
Multiple reports say Viacom and Comcast will soon announce a major joint venture to create several new cable networks, plus video-on-demand and other offerings. However, Tom Freston, who'll be CEO of Viacom after its split from CBS Inc., denied at a Merrill Lynch investor conference in California that any such deal is imminent. He said the company is considering various options and has talked with different outside partners - - "But we haven't made any decision yet." The rumored joint venture would link Viacom's MTV Networks, one of the leading cable programmers, with Comcast, the biggest MSO. According to the New York Post, which broke the story yesterday, the joint venture would be headed by John Sykes, who was formerly CEO of Viacom's Infinity radio operation, but whose experience is mostly in cable. Once Viacom splits in the next few months, MTV Networks will remain with the new Viacom, so the joint venture with Comcast would not have any ties to the broadcast operation, to be called CBS Inc.

McCain, Feingold
face down PAC attack
A rider has been attached to H.R. 3058, an appropriations measure meant to keep several government agencies up and running for FY 2006. It would create a loophole in the campaign finance law which would benefit one group of Americans, and one group only - - incumbent senators and representatives. The co-authors of the Bipartisan Campaign Reform Act want it stricken from the bill. The rider would allow what appears to be a legalized money-laundering scheme - - sitting federal legislators would be permitted to give unlimited cash to their national party committee, which could then give it right back to the candidate, "...effectively subverting individual and PAC donor contribution limits...," wrote John McCain (R-AZ) and Russ Feingold (D-WI) in a letter to their colleagues. "These campaign finance laws and contribution limits have been enacted by Congress to protect citizens against corruption and the appearance of corruption," the duo wrote. "Let's be very clear on another point - - this provision benefits no one but incumbent Members of Congress by allowing them to circumvent those same contribution limits by which their opponents will be forced to abide." They continued, "At a time when so many citizens of our country are in dire need of our assistance, why should we seek to create a new incumbent protection program on an appropriations bill?" The conclude saying any such measure deserves full debate - - anything else "...is a poor way to legislate and sets a dangerous precedent."

TVBR observation: They should call this MOD - - the Mockery of Democracy Act of 2005. We live in a time when the science of gerrymandering is so refined that incumbents are safer than at any point in our history - - in the House, they're practically invulnerable. Further, there is a seemingly universal belief that there is no way to write campaign finance law that will be able to effectively stem the tide of cash flowing into the electoral process. Given that incumbents generally have a cash advantage, don't need the money as desperately as a challenger, and probably can get it anyway, it therefore seems incredible that anyone would attempt such a blatant and patently unfair power grab as this. We also hope, should this rider make it into law, that the courts will quickly shoot down a rule which throws such an extreme advantage toward incumbents. But we hope McCain and Feingold are successful in their attempt to shame their colleagues into preventing it from ever getting that far.

The great outdoor?
Revenue growth reports don't lie: Billboards are where it's at. As television audiences continue to fragment and radio struggles with LIM and fresh competition from space, the venerable roadside sign is enjoying an infusion of fresh cash. And broadcasters are among those contributing to the medium's success. According to AdAge.com, various scorekeepers have pegged outdoor growth at between 7%-9% so far this year. TV, in particular, is said to be snapping up prime outdoor locations, on billboards, public transit, and wherever else a sign can be posted, touting their new fall shows. One expert said that clients, concerned about audience diffusion on TV, have demanded a change from the old-fashioned 90-10 media mix, where 90% of the budget goes to television with the rest spread around whatever's left. The 10% side of that equation is increasing at TV's expense, and outdoor is a prime beneficiary.

TVBR observation: We drive home past a billboard every day which has an eye-catching headline to the effect that a woman will be president of the USA this fall. It refers to some new network show starring, we think, Geena Davis, but we can say without any doubt that these particular roadside billboard impressions are a complete waste in this community - - we don't watch anything here except local access cable. (Right.)

Katrina figures to keep DTV on track
Capitol Hill already faced a major distraction thanks to the pair of seats on the Supreme Court bench when Hurricane Katrina entered the picture. Katrina figures to be an even bigger drain on Congressional attention than the SCOTUS situation, and certain legislative items will be tabled, or even eliminated. That does not apply to upcoming legislation aimed at keeping the transition to digital television on track. If anything, Katrina should have the effect of keeping DTV on the stove, and at least very near to the front burners. The biggest reason is not to bring the benefit of digital television the masses - - that probably ranks third right about now. The #1 Katrina-highlighted reason to complete DTV is to free up communications spectrum for first responders. #2 is to use spectrum auctions to enrich a national treasury that was running in the red even before Katrina laid on what figures to be minimum hit of 100B dollars. According to National Journal's Technology Daily, the Commerce Committees in both houses plan on conducting DTV business next month. Ted Stevens (R-AK) expects to have legislation teed up by 10/7/05, and his House counterpart Joe Barton (R-TX) expects to hit the issue by mid-month.

TVBR observation: The storm did one thing - - it gave NAB and NCTA a whole extra month to conduct their toe-to-toe PR slugfest on multicast must-carry.

Adbiz©

CBS enlists Valpak for primetime push
CBS' Monday primetime comedies will be promoted by direct marketer Valpak in a 43-million mailing and Internet streaming video. The campaign represents the eighth promotional partnership with CBS and the first weaving of moving images and audio by the media brand and company's Internet extension www.Valpak.com. The King of Queens headlines the promotion and sweepstakes, Live Like a King, appearing in artwork on the Valpak envelope. Streaming video of CBS's Monday night comedies is directly linked via the sweepstakes entry page at Valpak.com. Within the envelope is the programming schedule promoting the stars of CBS Monday. Blue envelopes mail to households over four weeks to every region of the U.S. in 110 DMAs through 9/23. The CBS campaign carries the tag "Comedy is King on CBS Monday" and highlights the return of the show. Joining it is Two And a Half Men and the new shows, How I Met Your Mother and Out of Practice. Envelope messaging directs consumers to tune in on Monday night and enter the sweepstakes for the chance to "Live Like a King." One grand prize winner will be awarded first-class airfare for two to Hollywood, luxury hotel accommodations, $500 spending cash and will attend a taping of The King of Queens.

Lowe's moves to BBDO
Lowe's has reportedly moved its account to BBDO NY, after a review that began in early May. Lowe's was previously with McCann Erickson Worldwide NY, which also took a hit recently, losing Bank of America. Buying has also moved from Universal McCann to OMD. Lowe's spent 366.5 million on media in 2004, according to TNS Media Intelligence. The review included TBWA Worldwide, Deutsch and its in-house media department; and the incumbents.

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Media Markets & MoneyTM

ESP noncom is non-starter
Did the FCC head-off a new broadcast TV competitor in the Wichita-Hutchinson KS DMA? Probably not, but the attempt of ESP Technology Community Broadcasters to enter the market with a new Channel 19 facility out of Colby KS has been shot down. ESP claimed it was non-commercial, making it eligible to apply for the NCE allocation. The FCC countered that ESP has to do more than simply claim noncom status. It must prove noncom status. "Under the Commission's basic eligibility requirements, non-profit television organizations that are not governments or schools that seek to operate on a reserved channel must establish their basic eligibility by demonstrating that a majority (more than 50%) of their governing board is composed of representative community elements (e.g. businesses, civic groups, professions, religious groups, schools, government). All ESP had, apparently, was a pair of directors in Abilene. And not even the Kansas Abilene, but rather the one in Texas. With no demonstrated link to Colby, the application for the CP was turned down.

Washington Beat

SHVERA, unamended
The FCC has accepted public commentary and analyzed its rules, as ordered by Congress, as pertain to the Satellite Home Viewer Extension and Reauthorization Act of 2004. Specifically, the FCC was asked if there need be any changes in the existing body of statutory provisions "...regarding the impact of competition in the multichannel video programming distribution market of the current retransmission consent, network non-duplication, syndicated exclusivity, and sports blackout rules, including the impact of those rules on the ability of rural cable operators to compete with direct broadcast satellite (DBS) industry in the provision of digital broadcast television signals to consumers." The short answer is no, the FCC does not believe any changes are necessary.

Programming

Cutting reviews for "Martha" debut
If you didn't feel sorry for Martha Stewart after she did her prison time, maybe you will after reading the USA Today review of her new syndicated TV show. Robert Bianco ripped into the domestic diva, questioning why anyone ever thought that Stewart was a natural for a talk show. "Empathy is not one of her TV gifts," Bianco wrote as he tore apart the debut show. Washington Post reviewer Lisa de Moraes was a bit kinder, calling her "fresh and frisky after five months in jail and six months of home confinement." But then the reviewer detailed how the lamb-like new Martha reverted to the "Evil Martha" of yesteryear during a segment with "Desperate Housewives" co-star Marcia Cross and ended the review with "Make it stop! Aargh!!!" Initial Nielsen overnights showed the debut posting a 2.4 rating and 8 share for NBC Universal, barely higher that the average lead-in - - hardly the triumphant return that NBC Uni and producer Mark Burnett had hoped for, not to mention the TV stations who'd signed on for the new show.

Paxson & CSTV team up for hurricane relief game
Paxson Communications Corporation's "i" network (formerly Pax) has signed on with College Sports Television (CSTV) to carry the live college football game and telethon, "Big Game for the Big Easy," featuring Tulane vs. Mississippi State, on Saturday, September 17, 2005 at 8:00 p.m. ET (with a time delay in the Alaska time zone only). The special broadcast is dedicated to helping raise funds to rebuild youth athletic programs and community playing fields in the areas affected by Hurricane Katrina. Originally to be played in the Louisiana Superdome located in New Orleans, the game will be held at Independence Stadium in Shreveport, Louisiana. "We are proud to participate in this effort with CSTV and their partner, the Boys & Girls Clubs of America, to honor the courageous student-athletes during this difficult transition, while helping raise needed funds for the communities affected by the storm," said Paxson President and COO Dean Goodman.

Ratings & Research

Plenty of football gives ABC a win
OK, "Monday Night Football" was on Thursday for the season opener, but NFL fans still found it and gave ABC bragging rights to the top two shows of the week for primetime television. That, along with strong numbers for a couple of college football games, put the Alphabet net on top for the week with an average rating of 5.4 and a 9 share. CBS followed at 5.1/8, then Fox 4.7/8, NBC 4.4/7, WB and UPN tied at 1.5/2 and i (fondly remembered as Pax) 0.5/1. | View the Chart |

Stock Talk

Consumer spending worries Wall Street
Best Buy reported earnings which fell short of expectations, making investors worry that consumers are cutting back on spending. The Dow Industrials fell 86 points, or 0.8%, to 10,597.

If there are worries about retailing, you can bet that it will hurt media stocks. New York Times Company and Spanish Broadcasting System each fell 4.1% as the day's worst performers. Gannett fell 3.2% after reporting August ad sales declines for USA Today and its TV group.

Stocks

**Here's how stocks fared on Tuesday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Acme	ACME		3.99	-0.02	Media General	MEG		65.79	-0.83
Belo	BLC		23.52	-0.59	Meredith	MDP		50.27	-0.50
Clear Channel	CCU		33.22	+0.14	News Corp.	NWS		17.13	-0.17
Disney	DIS		24.81	-0.31	Nexstar	NXST		5.35	-0.18
Emmis	EMMS		23.60	-0.36	NY Times	NYT		33.19	-1.40
Entravision	EVC		7.68	-0.07	Paxson	PAX		0.60	unch
Fisher	FSCI		48.36	-0.28	Saga Commun.	SGA		13.81	-0.19
Gannett	GCI		72.43	-2.37	SBS	SBSA		7.01	-0.30
Gen. Electric	GE		34.28	-0.15	Scripps	SSP		49.62	-0.32
Granite	GBTVK		0.40	-0.05	Sinclair	SBGI		9.35	-0.22
Gray	GTN		12.05	-0.21	Time Warner	TWX		17.98	-0.23
Gray, C1. A	GTNa		10.94	unch	Tribune	TRB		37.69	-1.24
Hearst-Argyle	HTV		24.35	-0.22	Univision	UVN		25.75	-0.20
Jeff-Pilot	JP		49.98	-0.09	Viacom, Cl. A	VIA		34.41	-0.36
Journal Comm.	JRN		15.79	-0.18	Viacom, Cl. B	VIAb		34.36	-0.27
Liberty Corp	LC		47.55	-0.02	Wash. Post	WPO		815.70	-32.45
LIN TV	TVL		15.06	-0.32	Young	YBTVA		4.08	-0.06
McGraw-Hill	MHP		48.18	+0.03	-	-	-	-	-

Bounceback

Send Us Your Opinions We want to
hear from you.
This is your column, so send your comments to tvnews@rbr.com

On the fight over multicast DTV must-carry (9/8/05 TVBR #176).

So what's all this arm waving about? A simple word change in the current must-carry rule solves the problem: Cable should be required to carry a six megahertz signal from local the broadcaster, and the broadcaster should choose which six megahertz is to be carried during the transition period. After the transition period, which six megahertz to be carried is a moot point. Cable's capacity is in no way affected by this simple re-wording of the rule.

Martin Jackson
President
MARCOM

TV Media Moves

Trio to head
CBS DC lobbying
As the Viacom split approaches, Les Moonves has named Martin Franks Exec. VP of Planning, Policy and Government Relations for CBS Corp. He had been a Viacom Sr. VP (and once in the running for head of the NAB). In turn, Franks named Gail MacKinnon to be Sr. VP, Washington, for CBS Corp. She has been a Viacom VP of Government Relations. Joining them is Anne Lacy as Sr. VP for Regulatory Policy. She is a Capitol Hill and FCC veteran and a Viacom VP of Regulatory Affairs since 1998.

More News Headlines

Myrtle Beach fundraiser
way over goal

"Wilmington Unites"
to raise hurricane relief

NABOB conference details set

September Digital Magazine Now Available

Media House 2005
Churn, baby, Churn - An inside look at the churn of satellite radio

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TVBR Radar 2005

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

Ft. Myers stations
battle captioning fines
Waterman Broadcasting Corp. and Montclair Communications, which own WBBH-TV (Ch. 20, NBC) and WZVN-TV (Ch. 26, ABC) Ft. Myers-Naples, FL, respectively, have asked the FCC to rescind the proposed fines of 24,000 bucks for each, based on a determination by the Commission's Enforcement Bureau staff that each failed to provide three specific items of emergency information to hearing impaired viewers during their coverage of Hurricane Charley in 2004. The licensee's response wasn't quite as critical of the staff ruling as RBR/TVBR's observation last month, but called on the Commission to call its staff out of bounds on this one. TVBR observation: What a waste of resources for these stations to have to have lawyers or paralegals review hours and hours of videotape to determine that a text warning was issued at such-and-such a time and an aural warning at such-and-such a time, while the real story was an heroic effort by both stations to provide emergency information to their communities to save lives.
09/13/05 TVBR #179

4 out of 5 Americans say
too many reality shows on air
According to an AP-TV Guide poll conducted by Ipsos, four out of five Americans say they think too many reality shows are on the air. Only 4% of respondents said there were not enough. TVBR observation: Considering how many reality shows that have launched, the success-to-failure ratio is still better than non-reality strips. The inexpensive production costs are too hard to pass up and not a big loss if they fail. And if they're a hit, it can be all profit for many of these programs - - considering the low cost of initial "talent" contracts (ie. a mechanic at a bike building shop). We think the trend will continue onwards and upwards, with more and more compelling content.
09/13/05 TVBR #179

TVB looks further out
In addition to issuing its forecast for 2006, the Television Bureau of Advertising (TVB) is looking further ahead. TVB President Chris Rohrs notes that the TV business has moved increasingly to a two-year cycle. "The structure of the business has changed dramatically because of the Olympics switching to a two-year frequency and because of the growth of political advertising in Spot. Odd years will always face tough comparisons to even years.
TVBR observation: The chart proves this theory out.
09/12/05 TVBR #178

Cable ad revenues up
15.3% in first half
According to TNS Media Intelligence, Cable ad revenue increased 15.3% to 7.9 billion during the first half of 2005, leading gains made by all other media. Internet ad spending is up 9.4% and consumer print magazine spending increased by 9.1% in the first half. TNS said the spike in cable was due to higher unit costs, increases in commercial inventory and larger audiences.
09/12/05 TVBR #178

TVB sees 2006 growth of 6.1-7.9%
With a federal election year on the horizon forecast that TV stations will see revenues rise 6.1-7.9% in 2006, with national spot outpacing local. Having projected that the spot TV business would be flat in 2005, TVB now sees the actual results won't even be that good, since the core business growth that was supposed to counteract the lack of political advertising didn't materialize. TVB is now expecting 2005 to finish down 5% for total spot TV. Looking at 2006, oil prices will certainly be one of the factors driving the business climate in 2006, since the price of oil affects the price of just about everything else that consumers use. The TVB is "cautiously optimistic" about the automotive sector.
TVBR observation: Same goes for radio and other media sectors as you know what runs down hill.
09/09/05 TVBR #177

ABCRN Producer
ABC Radio Networks needs a motivated, creative, talk radio producer for a nationally syndicated daily talk show targeted to women. Must have a love for news and current events, possess superb writing skills, a terrific sense of humor, and work well under pressure. No Calls. EOE
See Radio Careers

GSM Nations Capital
Washington DC Business Talk station has an immediate GSM opening. Must have proven experience in large to major market sales. Full benefits added incentives and extraordinary growth potential. AE positions also available.
See Radio Careers

Account Executive
Radio People of Jackson, MS (WUSJ, WYOY, WJKK and WIIN) are interested in talking to any displaced sales executives from the Gulf Coast area. Nancy Fletcher 601-956-0102 EOE
See Radio Careers

Keep Your PC Clean

With the ever growing importance of computers in our daily lives and our businesses, it is important to remember that software and hardware often need attention too.
Rules For The Road To 2006:

1. Windows Update
(run it every two weeks)
2. Microsoft is putting out "critical" updates every month. Turn Auto-Update On. When it asks you to install the new updates - say Yes!
3. Virus Protection (make sure your system is up to date) Norton, McAfee - all flavors of the same ice cream. We like ice cream right?
4. Application Updates - Office - Lotus Notes, all software typically has updates, make sure you update your software once per month.

No one wants to lose a business day to the IT guy - except for the IT guy. Help yourself steer clear of the bad parts of computing - Update, early and often.

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