TVBR's Daily Morning Epaper

Volume 22, Issue 2, Jim Carnegie, Editor & Publisher

Tuesday Morning January 4th, 2005

TV News®

2004: Tough year for TV stocks
Political and Olympic revenues filled the coffers of TV companies in 2004, but investors are always trying to look ahead, so most TV stocks fell in 2004 as Wall Street anticipated slower growth in the future. Of the 35 TV stocks in TVBR's daily chart, only 11 were up for the year and not one of them was a pure-play TV group owner. Disney rose 19% as ABC Television finally found a couple of hits and Michael Eisner announced plans to leave Disney following an unsuccessful hostile takeover bid by Comcast and a shareholders revolt which saw a 43% vote against Eisner. News Corporation gained 6% as it relocated from Australia to the US. Granite Communications was the worst performer, falling 75% as Don Cornwell sought to reorganize the company's holdings. As Bud Paxson struggled to find a new buyer to replace NBC and to win digital must carry, Paxson Communications fell 64%.

TVBR observation: See the charts and hold on to your hair because the site is not a pretty one as this year someone best order from e-bay an extra supply of life vests.
| More... |

Religious right putting senators in the crosshairs?
Focus on the Family, James Dobson's conservative Religious broadcasting outfit which supplies TV and radio programming, is threatening to target Democratic senators who stand in the way of any of President George W. Bush's judicial nominations. He as much as claimed the scalp of defeated Tom Daschle (D-SD), and said others, especially those from red states, may suffer the same fate, according to the Associated Press. One of those mentioned, Bill Nelson (D-FL), is a member of the Senate Commerce Committee. The others are Mark Drayton (D-MN), Jeff Bingaman (D-NM), Ben Nelson (D-NE), Kent Conrad (D-ND) and Robert Byrd (D-WV).

They said it in 2004: March
As the old year exits stage right and the new year makes its way to center stage, we thought we'd string together a compendium of quotes which appeared in TVBR and RBR during the past year. Today: March 2004. This one was not said by either Rodney Dangerfield or Red Buttons - "I think Michael Eisner did some great things for the company, but there are some not so great things." | More... |

TiVo goes mobile
Digital video recorders are no longer confined to home viewing. TiVo has announced new software - - TiVoToGo - - which allows users to take video programs with them on their laptop computers. There is no additional charge to subscribers for the new software. "We're all about delivering lifestyle benefits to our subscribers. Consumers don't want to be tied to their living room to watch their favorite entertainment," said Matt Wisk, TiVo's chief marketing officer. TiVo said it has "carefully designed" the TiVoToGo service enhancement to respect the copyrights of copy-protected content while offering flexibility to its subscribers. Programming that is protected with Macrovision copy protection - - including PPV, VOD and commercial DVDs - - will not be transferable to a laptop.

TVBR observation: Here's another reason why TV executives are anxious to see Nielsen move to a passive portable meter for ratings, such as Arbitron's Portable People Meter. But this is also merely another step toward the day when wireless broadband will make programming available just about anywhere - - making every Internet video site a competitor to local TV stations. Get ready. Change is coming fast.

SBC targets home media market
Baby Bell company SBC Communications has formed a joint venture with 2Wire Inc., which makes home networking gear, to deliver a home entertainment service that combines satellite TV (from EchoStar), a digital video recorder and Internet content. Building on its plans to roll out interactive TV services, SBC said the new service will be available in mid-2005 to its SBC Dish Network and SBC Yahoo! DSL customers. The service will use a new set-top box that can handle satellite TV programming, video-on-demand, digital video recording and broadband content. Ed Cholerton, vice president of SBC DSL, was named CEO of the joint venture, SBC Media Solutions LLC, with 2Wire President and CEO Brian Hinman as President.

Radio JSAs have a short while to file
The Third Circuit, while at the very least delaying most of the FCC's 6/2/03 ownership ruling, did allow a few things to go into effect. One such new rule is making radio station joint sales agreements (JSA) attributable when calculating allowable cluster size caps in Arbitron-rated markets. The FCC is now calling in the paperwork on such agreements. All contracts concerning JSAs must be submitted to the Media Bureau by 2/22/05, where it will be placed in the appropriate license files. It will be available for public inspection at the Commission. Contracts for any future JSAs must be submitted within 30 days of execution. The requirement only affects radio stations in Arbitron-rated markets. Television stations and out-of-market radio stations are not obligated to file contracts. A rulemaking which may extend this requirement to television stations is under consideration, however, as are potential new rules for non-Arbitron radio stations. The FCC noted that JSAs which existed prior to the rule's effective date of 9/3/04 and result in an oversized cluster have a two-year grace period, and must be dissolved or otherwise brought into compliance by 9/3/06. JSAs struck between 9/3/04 and 1/3/05 have to be dissolved or brought into compliance within 90 days.

Adbiz©

Agent155 launches NYC subway effort
Agent155 Media Group San Diego, which provides multimedia content management tools providing exposure, networking and collaboration opportunities to models, performers, artists, athletes, musicians, filmmakers and agencies, announced it will implement an campaign mid-January through Viacom targeting commuters utilizing the New York City subway system. Says Christopher Martinez, Agent155 CEO: "We have been planning diligently with Viacom's team to put together a targeted ad campaign in the New York city subway system that will receive over 130 million impressions over the 30 days it will run. The ads will be displayed in the subway cars and on the platforms. We feel that this exposure will greatly impact our penetration to our targeted demographic, as well as generate immediate revenue from subscriptions, in one of the most progressive artistic and entertainment cities on the planet.'' Agent155 Media Group will continue its advertising and marketing throughout the U.S. and Europe over the coming months. "We are planning a London Tube campaign similar to the NYC program,'' Martinez added. "Reaching our demographic with our message is the most important aspect of our media campaign. We feel our efforts to date have been extremely effective and will continue to build our user base and subscription revenues moving forward.''

Office Depot
"Taking Care of Business"
with new branding campaign
Office Depot is reintroducing its brand to business customers with a number of initiatives and new internal and external positioning under the "Taking Care of Business" umbrella. New positioning includes a new tag, a new just-launched campaign and a new sports sponsorship platform. The new campaign brings forward the Taking Care of Business tag and selling proposition. New television and radio ads focus on how Office Depot is the partner that successful business people depend on to provide the essential tools they need to get the job done right. Another initiative is the company's new alliance with NASCAR. As part of a multi-year sponsorship agreement, Office Depot becomes the sport's first-ever "Official Office Products Partner." New initiatives, to be announced in the near future, will focus on four key areas: Value, Selection, Quality and Service - - and will include the introduction of exclusive product offerings, enhancements to the Advantage Rewards program, more frequent training and support, valuable supplemental services and expanded environmental stewardship. Office Depot employees returning to work after the holidays are being greeted by a new internal brand positioning program dubbed "Taking Care of Business. Taking Care of You." The program - - communicated through posters, banners and other signage; website messaging; videos; and collateral pieces - - highlights all of the ways in which the company supports and encourages employee development, rewards performance and provides the resources necessary for success.

February Radio & Television Business Report

"The Pros and Cons of Nielsen's Local People Meter and Arbitron's proposed Portable People Meter service"
After a rocky start, it's roll-out time of LPM & PPM. Will there be cooperation or more talk?

Engineered for Profit: "New tower standards coming: are you ready?" Did you know existing standards is currently in the midst of the biggest revision in years?

GM talkback: "How has LPM ratings changed selling in your market?" TV GMs say what they think-the good, bad and the ugly.

Media, Markets, and Money: Only one place tells it like it is with a run-down and overview of the biggest quarterly Radio and TV deals and outlook to 2005.

Washington Beat

A-O, you still owe
The FCC is sticking to its guns in the case of A-O Broadcasting's KTMN-FM in Cloudcroft NM. The station was hit for 25K (reduced from 28K) for a number of violations, chief among them exceeding RF radiation limits, with the potential for excessive exposure to the public. A second protest from A-O (the first resulted in the 3K discount) was rejected. Among the claims shot down by the FCC is entrapment. The FCC said such a claim is available in criminal or quasi-criminal matters, but is not available in a administrative proceeding involving public safety. However, they noted that FCC agents did nothing to provoke the licensee into committing its violations. The FCC noted that this is the first time it has assessed a fine for an RFR exposure limit violation.

Programming

Regis wins one for Dick Clark
Health problems may have kept Dick Clark from his 33rd straight year of ringing in the New Year on television (12/14/04 TVBR #242), but pinch hitter Regis Philbin came through for ABC. "Dick Clark's New Year's Rockin' Eve" attracted eight million viewers in its primetime hour (10-11 pm Eastern), according to preliminary numbers from Nielsen. NBC's new competitor, "New Year's Eve with Carson Daly," drew 4.5 million. The ABC entry also beat its late night competition after taking a break for local newscasts.

Ferguson off and running in Late Late slot
Craig Ferguson started his new gig last night, after being named last month as the new host of CBS's "Late Late Show" (12/8/04 TVBR #238). The sole guest for the inaugural show was actor David Duchovny.

Here's the lineup for the rest of this week:
Tuesday, Jan. 4: Actor Jon Cryer from the CBS comedy "Two And A Half Men;" actress Sophie Okonedo, star of the feature film "Hotel Rwanda;" comedian Jim Short
Wednesday, Jan. 5: Actor Julian McMahon from "Nip Tuck;" musical guest Howie Day
Thursday, Jan. 6: Actor Jason Alexander from the CBS' comedy "Listen Up;" musical guest "The Donnas"
Friday, Jan. 7: Actor Jeremy Piven from "Entourage"

Infinity launches "Spike Radio" in Vegas
The ultimate Sports and Talk hybrid? The first network for men has branched out to radio. Spike TV and Infinity launched Spike Radio, a new radio brand geared specifically to men on KSFN-AM Las Vegas. "Spike 1140 AM - Radio For Men" features Vegas favorites Tom Leykis, "Don and Mike" and "The Big Johnson Show." The station also broadcasts Dodgers baseball, USC Trojan football, and NFL Doubleheader Sunday. Coming soon, the station will add The Sporting News Network to the lineup. Also, Spike TV will produce brief segments weekdays on men's issues focusing on health, fitness, lifestyle, and the cable net's programs. "In such a short time, Spike TV has made an impact on guys and the television landscape," says Albie Hecht, Spike TV President. "We're very excited about extending our brand into radio, and hope this venture will lead us to partnerships in other major cities."

The NFL on CBS average rating up 2%
The NFL on CBS's final regular-season average for 2004 earned an 11.3/23 local metered market rating/share, up +2%, from an 11.1/22 in 2003. Regional game coverage highlighted by the New York Jets versus the St. Louis Rams and Pittsburgh at Buffalo (and Miami-Baltimore, Cleveland-Houston, Cincinnati-Philadelphia) on 1/2 (1:00-5:00 PM, ET) was CBS's highest-rated regional coverage in the local metered markets since the final week of the 1999 season (14.1/25 on Jan. 2, 2000), scoring a 13.3/26 local metered market rating/share, up +41% from a 9.4/20 for last season's regional coverage in Week 17. This is also the second highest-rated regional coverage since the NFL returned to the Network in 1998.

Stock Talk

New Year begins with a whimper
Wall Street traders apparently resolved to begin the New Year by thinning their portfolios, so with little news to steer the markets, stock prices slipped on Monday. Media stocks were particularly hard hit, with Credit Suisse First Boston downgrading newspaper companies. The Dow Industrials fell 54 points for the session, or 0.5%, to 10,729. Among TV stocks, ACME took a 10.1% hit for no apparent reason. Gray Television's common stock fell 5.2% and its Class A 4.6%. Paxson had a good day, rising 9.4%.

Stocks

**Here's how stocks fared on Monday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Acme	ACME		6.30	-0.71	McGraw-Hill	MHP		90.05	-1.49
Belo	BLC		25.89	-0.35	Media General	MEG		64.17	-0.64
Clear Channel	CCU		32.90	-0.59	Meredith	MDP		53.97	-0.23
Disney	DIS		27.85	+0.05	News Corp.	NWS		19.20	unch
Emmis	EMMS		18.97	-0.22	Nexstar	NXST		9.01	-0.21
Entravision	EVC		8.32	-0.03	NY Times	NYT		40.35	-0.45
Fisher	FSCI		48.50	-0.38	Paxson	PAX		1.51	+0.13
Fox	FOX		31.34	+0.08	Saga Commun.	SGA		16.75	-0.10
Gannett	GCI		81.20	-0.50	Scripps	SSP		47.69	-0.59
Gen. Electric	GE		36.59	+0.09	Sinclair	SBGI		9.14	-0.07
Granite	GBTVK		0.44	+0.03	Time Warner	TWX		19.41	-0.04
Gray	GTN		14.69	-0.81	Tribune	TRB		41.49	-0.65
Gray, C1. A	GTNa		13.50	-0.65	Univision	UVN		28.84	-0.43
Hearst-Argyle	HTV		26.03	-0.28	Viacom, Cl. A	VIA		37.27	+0.19
Jeff-Pilot	JP		51.00	-0.96	Viacom, Cl. B	VIAb		36.64	+0.25
Journal Comm.	JRN		17.80	-0.27	Wash. Post	WPO		963.50	-19.52
Liberty Corp	LC		43.45	-0.51	Young	YBTVA		10.68	+0.12
LIN TV	TVL		19.18	+0.08	-	-	-	-	-

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Upped & Tapped

Ditmer heads to Dayton
Former Westwood One Metro Networks Minneapolis/St. Paul GM Dean Ditmer has been named General Manager of Sinclair Broadcast Group's WKEF-TV (Ch. 22, ABC) Dayton. He'll also oversee LMA'd WRGT-TV (Ch. 45, Fox).

RBR - Radio News

Sirius breaks one million sub barrier
Santa was good to Sirius Satellite Radio. The company reports that it achieved its goal of reaching one million subscribers by the end of 2004. In fact, it had subscribers to spare - - hitting 1.1 million subs. "While we were looking to finish the year with 1 million subscribers, we are very pleased to have significantly exceeded that number. The combination of our innovative products, diverse content and greater awareness of the Sirius brand, along with strong growth from the retail and automotive channels, contributed to a better-than-expected year-end figure," said CEO Mel Karmazin. The new CEO is vowing to double that number in 2005, so the target for this year has been set at 2.2 million.

Citadel CEO
Farid Suleman wants
200K from Stern
Citadel still has not restored Howard Stern to its stations in Grand Rapids, Syracuse, Providence, New Bedford and Harrisburg after his return from vacation. Opie and Anthony continue on WAQX-FM Syracuse and afternoon host Nipsey has moved to mornings at WQXA-FM Harrisburg. Stern said yesterday on his show that Citadel CEO Farid Suleman was "a weird dude" and is asking for a 200,000 buck reimbursement from Stern for continual mentioning of Sirius on his show. "It's like Fahrid has lost his mind or something. It's like he's on a Jihad of his own," Stern said of Suleman. Suleman also served notice to Stern's agent/syndicator Don Buchwald that Citadel is not canceling the show, but is taking a break for now.

TVBR Radar 2005

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

They said it in 2004: February
Old year exits stage right with a compendium of quotes here's one to ponder "I'm sure in some way it was planned, because somehow it really seemed that way...."
TVBR observation: Can you really believe people said this stuff.
01/03/05 TVBR #1

Senate Dems look to
assert themselves in 2005
Faced with breaking in a new leader in the wake of the election defeat of Tom Daschle (D-SD), and they'll be doing so with the smallest contingent in decades. Only 44 Democratic senators will be facing 55 Republicans. Dissatisfied with Republican oversight of the Bush administration, the Dems have vowed to conduct oversight hearings of their own as they feel the need. Here is where it gets interesting for broadcasters. One of the go-to senators on this project is the very active Byron Dorgan (D-ND). "The Congressional watchdog remains fast asleep, and we intend to wake it up," 01/03/05 TVBR #1

They said it in 2004:
Special Super Bowl edition
Nipplegate incident immediate aftermath of Janet Jackson's infamous wardrobe malfunction.
TVBR observation: TA DUM with words of wisdom pour from mouths like - "I am outraged - I am shocked - We were extremely disappointed - CBS deeply regrets", and RBR loves this one - "If you sleep with dogs you'll get fleas." Wow, see what we have to look forward to in a few weeks with Super Bowl 39. Hey, who won Super Bowl 38? DA?
12/29/04 TVBR #251

They said it in 2004: January
Joel Hollander, David Kantor, Natalie Swed Stone, Gary Fries, Mark Mays and Michael Powell had interesting quotes in January 2004. They spoke their peace and we shall see the pattern evolve into what is faced in 2005 as this quote is one of many - "I just don't see it as a significant threat to what we do." - - Emmis Communications CEO Jeff Smulyan discussing satellite radio.
12/28/04 TVBR #250

Nielsen changes DC, Philadelphia LPM intro dates, still no Houston engagement
it will launch its local people meter service in Philadelphia and DC on 4/7/05, operating in conjunction with the current meter/diary service until 6/2/05 when the LPM will take over in both markets. That's months before it previously announced the dual service would begin and weeks before a subsequent announcement said the dual service would commence. TVBR observation: Nielsen is in control of its own direction and Houston market is vital but a no go. This will be a game to say focused on this year. Nielsen's schedule see chart.
12/29/04 TVBR #251

Susan Whiting: Nielsen's PPM decision to be made by Q2
Has until the end of Q2 '05 to decide whether to form a joint venture with Arbitron for a TV and radio audience measurement service based on Arbitron's passive PPM system, possibly breaking the in-house tether its current LPM measurement system requires. Nielsen CEO Susan Whiting detailed the announcement in a letter to Nielsen clients.
TVBR observation: "This letter outlines the key open questions and Nielsen's plan to address them before deciding whether to join Arbitron in the launch and accreditation of Houston as the first commercial market of the PPM." TVBR has the letter so click to view. It is hard ball time folks. 12/22/04 TVBR #248

Local TV broadcast ad revenues
Up 12.2% Q3
Jumped a healthy 12.2% in the third quarter of 2004 compared to the same period last year. The biggest percentage increase among the top 25 advertising categories for the quarter was posted by Government & Organizations, which is mostly political spending. The category was up 165.7% over the same period in 2003. TVBR observation: Praise politics as The Bush for President Committee made it onto the list of the top 25 individual local advertisers for the quarter at No. 19 (the Kerry campaign ranked No. 41). But what are you gonna do now in first quarter 2005? 12/21/04 TVBR #247

RBR Exclusive--Spinning into '05
Joel Hollander In - John Sykes Out
It was just a question of when and according to various record industry sources Infinity CEO John Sykes will be leaving to pursue other opportunities sometime after the first of the year which also comes with a generous golden parachute. Intelligence gathered the announcement will be coming soon by Viacom Co-COO Les Moonves. 12/20/04 RBR #246

TVBR Close Up
Mindshare's Jon Mandel comments on AAAAs letter to John Hogan
Tells RBR/TVBR he wanted to "do [quite a bit] more with that letter. I'm a member of the AAAAs Board of Directors [the first time a media person has ever been a member]. Instead of that letter coming from that committee, in truth that letter should have come from the board, because it affects more than just media. There are a lot of problems with what they're doing at Clear Channel.
12/15/04 TVBR #243

VP/Programming for The Dr. Laura Show
Take On The Day, Inc., by Geoff Rich and Dr. Laura Schlessinger looking for an experienced PD to manage and market The Dr. Laura Show. Experience in talk radio programming, marketing and media relations. Based in L.A. Confidentiality respected. EOE

Major Market
Affiliate Director
Take On The Day, Inc. newly formed radio network producing and distribution of The Dr. Laura Show beginning 01/ 1/05. Candidate must have major market affiliate sales experience with Talk format. Cover letter, resume and salary requirements - Confidentiality respected. EOE

See Radio Careers for more info.

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