Comcast offers to buy back
stock options
If you used to work for Comcast or AT&T Broadband (or even AT&T itself) and still have unexercised stock options - - take note. Comcast wants to cut down on its record keeping and cash out those options at current market prices. If all of the 41.8 million eligible options held by 63,000 people (including many current AT&T employees) are redeemed, the value will total about 125 million dollars. But the redemption isn't going to cost Comcast anything. JPMorgan Chase is funding the stock option liquidity program and will receive new stock options from Comcast for those submitted for cash by the folks who no longer have any employment ties to Comcast. Most of those option holders were employees of either AT&T or AT&T Broadband when Comcast acquired the latter in 2002, but there are also a small number of other people who hold Comcast options who are not currently company employees. Current employees are not eligible for the cash-out deal.

Viacom spin-off of Blockbuster stays on track
Viacom says a Delaware judge has denied a request to hold a hearing on whether to grant a temporary injunction against its share exchange spin-off of Blockbuster - - so the exchange offer can go on unimpeded. The order blocking the exchange offer had been sought by a Viacom shareholder who claimed that Viacom had provided more and better information about the Blockbuster spin-off to National Amusements, the company via which the family of CEO Sumner Redstone controls Viacom, than to other shareholders (9/21/04 TVBR Daily Epaper #184). With the judge refusing to grant the injunction, the share exchange offer is still set to conclude on October 5th (9/9/04 TVBR Daily Epaper #176).

TV stocks were down nearly across the board. Paxson fell 7.5%, Media General 6.5%, Young 5.3% and Entravision 4.2%.

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Two join WXYZ-TV
Scripps' WXYZ-TV Detroit announced the addition of two sports reporters: Vic Faust from KOKI-TV Tulsa and Tom Leyden from WFMZ-TV Allentown, PA.

Koblish to Worship
Former Gospel Music Association President Bruce Koblish has joined The Worship Network as Executive Vice President of Ministry Development, where he will focus on establishing a music division.

Will Emmis miss its radio guidance?
That's what Wachovia Securities analyst Jim Boyle is warning of. Emmis, always the canary in the coal mine. is due to report results next Tuesday (9/28) for its fiscal Q2 - - June-August. Thinking is Emmis may hit its 10.5% revenue growth guidance for TV, but miss its 3% target for its larger radio group and issue conservative guidance for fiscal Q3. TVBR observation: Have we hit bottom? Answer is maybe not. Hang on this could be an unpleasant ride! 09/22/04 TVBR #185

Disney board to pick Eisner's successor by June 2005
The Board said now use that expensive luggage and get it packed. The directors said they would engage an executive search firm to aid them in making the choice, saying they would consider outsiders and one insider - - President and COO Bob Iger. To achieve its objective, the Board will: 1. Engage an executive search firm 2. Consider both internal and external candidates 3. Complete the process and announce a successor as soon as possible 4. Michael Eisner and the Board will work to assure a smooth and effective transition but are elected for a one year term. TVBR observation: The line bet goes to Iger.
09/22/04 TVBR #185

Which do we protect: 17M or 70M?
The battle lines are continually being drawn and redrawn on the bumpy road leading to the digital television conversion. The plan offered by Sen John McCain (R-AZ) to provide 1B dollars to some 17M unconnected TV households so that they can still receive a television picture when analog transmission goes bye-bye is already being challenged.
TVBR observation: With the clock ticking toward Election Day lawmakers are eager to get back home to campaign, so the smart money is against anything of significance happening real soon like until 2009? Reminds one of AM Stero.
09/22/04 TVBR #185

Sen. John 'Wayne' McCain looking for 1B in anti-blackout funds
Is preparing to ask for a significant taxpayer contribution to the televiewing of the unconnected when the digital television transition is finalized and analog broadcasts go away. McCain's plan would in effect be at least somewhat of an endorsement of the so-called "Ferree Plan," which would bring the end of analog broadcast about on 1/1/09, but would get there by counting analog receivers getting down-converted digital signals in the 85% digital-ready theshold which is the statutory target for the analog turn-off. 09/21/04 TVBR #184

Telecom 1996 up for review
Says Frank Blethen, the Seattle Times publisher took to the OpEd pages of the Washington Post 9/19/04 warning of the evils of excessive ownership concentration and media cross-ownership. Senate Commerce Committee is supposed to revisit the 1996 Telecommunications Act next year, an agenda item which could easily light off even more fireworks in the already incendiary history of the ownership debate. The Commerce Committee has already approved numerous reversals of the FCC 6/2/03 ownership rulemaking. Some of them have reappeared in other guises, such as the reversion to a 35% national potential audience reach cap for broadcast television group owners, down from the FCC's 45%. TVBR observation: This is great news if regulatory uncertainty is your cup of tea. People wishing to sit in on the Commerce Committee's proceedings should probably head over to the Russell Building on Capitol Hill right now and get in line. 09/21/04 TVBR #184

Campaign financing regs remanded
The US District Court in the District of Columbia has sent a slate of campaign rules written by the Federal Election Commission (FEC) back to be rewritten, saying that they opened up "an immense loophole" which Congress had no intention of putting on the books. 09/21/04 TVBR #184

HBO dominates the Emmys
Bada-Bing! Teaming up "The Sopranos," "Angeles in America" and other original fare, HBO, which used to be a cable network dependent on showing movies that had already run in theaters, ran rough-shod over the broadcast networks. In all, HBO took 32 Emmys. Compare that to Fox, which took second place with 10. Here's the list of winners of the major Emmys. TVBR observation: You answer the question - - What does this say for network TV programming and what the consumer wants and is willing to pay for? TA DUM. Content is King, people. Radio in many ways has lost that edge, Cochise, and soon that trend will come to TV as well - - so watch out for more product placement in place of creativity. 09/21/04 TVBR #184

TVBR Close-Up
Broadcast stocks: How low is low?
If you own radio or TV stocks, you know that they've fallen this year - - a lot. Most pure-play radio companies have lost at least a quarter of their value, many more than a third. TV stocks haven't done quite that badly, but are down double digits.
TVBR observation: The question now - have we hit bottom? TVBR's analysis chart inside tells the sad tale.
09/20/04 TVBR #183

Congressmen try to
head off Ferree plan
Two members of the House of Representatives have fired off a letter to FCC Chairman Michael Powell asking him to hold off on any attempt to force an end to the DTV transition according to the so-called "Ferree plan," which would achieve the mandated 85% viewership threshold by counting viewers getting digital signals downconverted for analog receivers along with viewers getting full benefit of digital broadcasting. TVBR observation: Excuse us, but Congress is the irresponsible government entity which came up with the 85% in, 15% completely shut out policy. The FCC has been forced to try and propel the DTV transition forward with no power whatsoever to do anything other than leave 15% of all Americans in the video dark. That's what Congress specifically told the FCC to do.
09/20/04 TVBR #183

Freeze frame:
When will the deal thaw happen?
Station trading and major changes - - to whit, FCC transactions utilizing Forms 301, 314, or 315 - - are frozen while the FCC gets its paperwork in order following the 3rd Circuit's decision to allow the new Arbitron-based radio market definition to be used as a yardstick for cluster sizing. When will the thaw happen?
TVBR observation: FCC has no way of knowing precisely when the freeze will be lifted, but that it is expected to be short-lived. 09/20/04 TVBR #183

Tough August for Tribune
Proving again that this is a year of haves and have-nots in broadcasting, Tribune Company reported that its August TV revenues were down 4.2% to 98.2 million dollars. Tribune's group of mostly WB affiliates is not getting the heavy political spending enjoyed by competitors with news-intensive big-three network affiliates - - and, of course, it missed out on the Olympics spending that went to NBC stations. TVBR observation: Have and Have Not's again proves the theory that Content is King. Don't have it then you are a Have Not. 09/16/04 TVBR #181

Lehman analyst drops radio forecast
Yet another Wall Street analyst has cut back his forecast for radio revenue growth this year and next - - and they're big drops. Lehman Brothers analyst Bill Meyers now expects growth of only 2.7% this year, not the 3.7% he had previously forecast. And for 2005 Meyers has cut his growth estimate to 2% from his previous 4.5%.
TVBR observation: Wall Street encouraged it and the MBA operators went right over the cliff with them. Now it is time for pros like Dr. Randy to fix it. Trust those MBA CEO's are getting OJT at the best interest of their shareholders. 09/16/04 TVBR #18