2007: The Need for -- Ideas Working Now
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Welcome to TVBR's Daily Epaper
Volume 24, Issue 2, Jim Carnegie, Editor & Publisher
Thursday Morning January 4th, 2007

TV News ®

LIN in retrans deal
LIN Television announced a retransmission consent agreement with Version to make LIN stations available on the FiOS TV competitor to cable. Norfolk, VA is the first LIN market to participate in the FiOS rollout. "We are pleased to be partnering with an industry leader like Verizon to offer LIN TV station viewers a rich experience and provide households with more choice and competitive pricing," said LIN CEO Vincent Sadusky. The agreement grants Verizon the right to LIN TV's locally produced content, including local newscasts, for Video on Demand (VOD) and to carry both the analog and HDTV signals of all the LIN stations in markets where Verizon provides FiOS TV service. In Norfolk, that meant WAVY-TV (Ch. 10, NBC) and WVBT-TV (Ch. 43, Fox).

TVBR observation: The FiOS rollout appears to be good news for broadcasters, since Verizon has raised no objections to paying for retransmission consent and is anxious to do add-on deals, such as VOD, to enhance its offerings as it tries to take market share away from existing cable competitors. Cable MSOs who are trying to take a hard line on retrans may not have accepted the reality that viewers are their captive customers. DirecTV, Echostar and FiOS (though only in a few markets thus far) are viable competitors.

FCC goes public with ownership docs
The FCC has decided to put what it has on media ownership out before the public in one easily accessed list. The FCC website is now home to about 90 links to various documents on the topic. It's available for your perusing pleasure at fcc.gov.ownership/additional.html. One of them, dating all the way back to May 1982, is a report on female ownership of broadcast facilities. The list encompasses a wide variety of documents, including unsolicited submissions by interested third parties. The Michael Powell-commissioned studies which preceded the 6/2/03 rulemaking are there, along with letters on the topic, watchdog-submitted studies and staff draft reports.

TVBR observation: Is FCC Chairman Kevin Martin trying to avoid another Sen. Barbara Boxer (D-CA) moment like he had the day of his confirmation hearing? You may recall that Boxer was able to quote from an internal FCC study which seemed to argue against loosening media ownership caps, and seemingly was ignored by the three commissioners who voted in favor of dereg 6/2/03. As far as we're concerned, this collection is nothing of the kind. It looks like a good-faith attempt to share with the public documentation pertaining to the ongoing ownership review on court remand. There appears to be nothing sinister about it in any way. For example, we're looking right now at a USC Annenberg School/University of Wisconsin study criticizing 2002 election coverage by broadcast outlets. It is neither generated by the FCC nor is it supportive of dereg. 'Nuff said.


Megan Mullally Show gets the axe
NBC Universal stopped production of ratings-challenged Megan Mullally Show. The first-run talker will continue through the end of the month as a mix of originals and repeats. NBC Television distribution is currently working with local stations to help them fill programming solutions for the remainder for the year. Said NBCU in a statement: "We are very proud of the hard work and effort that our staff put into the production of this show. And our host, Megan Mullally, is truly one of the most talented people in our business. We are grateful to have partnered with her on the show and are appreciative for her tireless commitment, effort and dedication to this endeavor."

One top pick in broadcasting isn't a broadcaster
It is telling of the attitude toward radio and TV on Wall Street that one analyst, Marci Ryvicker of Wachovia, is out with her top picks for the "broadcasting sector" for 2007 and one of them isn't even a broadcaster. Like many of her colleagues, Ryvicker has the tiny group of outdoor advertising stocks in with the radio and TV groups that she follows and one of them, Lamar, is one of her two picks for 2007, along with Entravision, which is, indeed, an operator of radio and TV stations (plus outdoor). While both already did well in 2006, she says there is still potential for upside as ad spending continues to move to billboards, seen as an inexpensive medium, and to Hispanic media, which is Entravision's niche. Ryvicker is not so upbeat about radio or TV in general. Her projection for radio is that revenues will grow 1% in 2007, with local up 1% and national down 2%. That puts total spot flat, but she expects 10% growth in non-spot revenues (including Internet) to account for the 1% overall growth. With TV facing tough comps from an election year, she is looking for television revenues to be down 1%, owing largely to the lack of political spending. She foresees a 3% decline in local spot, a 7% drop in national spot, a 3% increase in syndication and a 3% increase in network revenues.

The gripes of wrath: Q3 2006
During Q2, the FCC's quarterly count of broadcast indecency/obscenity complaints was down from Q1's 142K to only 52K. In Q3, the September total just barely missed matching those two combined, coming in at 163.6K. There were 26.8K complaints in July and a mere 3.1K in August, bringing the quarter to 193.5K and YTD to 387.5K, enough to already eclipse the 2005 total of 233.5K complaints with a quarter yet to be added in. However, the year is not on track to compete with 2004, when the infamous Super Bowl halftime show helped inspire 1.4M complaints, by far the record since the FCC began keeping track in 2000.

TVBR observation: There's no way we know of to tell for sure, but it would appear that the reason for the September spike may have been the announcement by NBC that it would be broadcasting a Madonna concert. Her road show at the time included a crucifixion scene, and it was widely feared by some that it would be shown on the broadcast. It wasn't, most likely in view of the public outcry.


Ad Business Report TM

Warner Independent Pictures, Spot Runner
launch indie promo campaign

Spot Runner and Warner Independent Pictures jointly announced that Spot Runner has run a successful, targeted cable TV ad campaign in 18 markets to promote Warner Independent's new feature film, The Painted Veil. WI called on Spot Runner, which heretofore specialized in local cable campaigns for small businesses, to customize local versions of the national spot, and plan and purchase cable media time to support a broad, tiered release schedule in the days leading up to the film's opening in those markets on 12/20. In a departure from the studio's traditional strategy of promoting new films, these commercials identified the names of the local theaters in which the film is playing, narrowed in on just the neighborhoods located near those theaters and ran on channels that mirrored the film's target demo. Spot Runner's production resources, technologies and market-specific data allowed WI to overcome the hurdles inherent in running a large number of local TV campaigns simultaneously -- including customizing the ad for each market, ad trafficking and media buying -- that typically make such logistically complex local campaigns difficult to execute. The campaign complements the film's national and bi-coastal effort via MediaCom. The Spot Runner campaign ran in Chicago, Philadelphia, San Francisco, Dallas, Atlanta, Houston, Denver, Detroit, San Diego, Seattle, St. Louis, Portland, Miami, Phoenix, Minneapolis, Austin, Cambridge/Boston and Washington, D.C.


Media Markets & Money TM
Goodman back in the saddle as owner
Dean Goodman recently left a senior executive position with ION Network, where his tenure went back to the Bud Paxson days. Now he will be THE senior executive for his own outfit, called Dean Radio.TV Company, and he's getting it started with a double buy in unrated Iowa territory east of Des Moines. According to Susan Patrick of Patrick Communications, his group will be kicking off with some serious property, including KGRN-AM Grinnell IA, coming in a 3.25M deal with Crawford Broadcasting Inc. and a second deal with Central Iowa Broadcasting for KCOB AM & FM Newton IA and KRTI-FM Grinnell IA, coming for another 3.25M for a 6.5M total. KGRN uses a Full Service AC format, the two KCOBs are in Country and KRTI-FM is an AC outlet. Goodman promises more action on both sides of the broadcast fence, saying, "This will be the first of a series of radio and TV acquisitions for Dan Goodman."

Radio One: A buy, a retry and a good-bye
It's been a busy first week of the year for Urban specialist Radio One. In the early going for 2007, it has acquired a magazine complementary to its broadcast style, performed a make-over at its key Los Angeles FM, and closed on the sale of its Boston FM. To go in reverse headline order, the 30M sale of WKAF-FM Boston to Entercom is on the books, bringing in 30M cash. The completion of the sale of the former WILD-FM comes just days after the FCC cleared the decks of a number of complaints protesting the flip away from the station's former Urban content. In Los Angeles, KKBT-FM "The Beat," plagued by stiff competition from a number of Hispanic outlets, is retooling as KRBV-FM "V100, the Best Variety of R&B." At least one analyst, Marci Ryvicker at Wachovia, is taking a wait-and-see approach to this tactic. Finally, Urban lifestyle mag "GIANT" is on its way to the Radio One portfolio for 270K (the price includes assumption of "certain liabilities"). Its editor, Smokey Fontaine, will stay on board.

TVBR observation: Radio One has its core radio business up-and-running in 22 markets, and reaches its core audience in many locations via its cable channel TV One. These broadcast and cable outlets have a great potential to drive readers to GIANT, and vice versa. While the magazine is not destined to become the primary Radio One asset, 270K seems like a small wager indeed with considerable upside on the marketing and promotion side.


Washington Media Business Report TM
NYT jumps on net
neutrality bandwagon

The New York Times used its editorial space this week to applaud the compromise used to get FCC approval of the AT&T acquisition of BellSouth, particularly, the planks designed to preserve net neutrality. At issue is the telephone concept of delivery, under which all calls are treated equally. Without net neutrality, the fear is that the creation of a "fast lane" for those who can pay, and subsequent relegation of all others to the "slow lane" will allow the rich providers to gradually dominate the Internet, striking a blow to the democratic nature of the Internet as it stands now and stifling innovators by grossly increasing start-up costs. NYT expects legislation to hit the agenda this year on Capitol Hill, from Ed Markey (D-MA) in the House and Ron Wyden (D-OR) in the Senate.

TVBR observation: Think about it. If you're running Mom & Pop Hometown TV with Amalgamated Media running the stations across town, how would you like it if you call Frank's Car Paradise, only to get a busy signal because Amalgamated is paying a little extra to the phone company for priority service? Do you want to pay extra to keep your phones out of the "slow lane?" A big media company already enjoys a huge advantage insofar as head-to-head website competition is concerned. It has name recognition and a perfect vehicle to drive traffic. Net neutrality is about more than individual freedom, it's also about protecting the interests of small businesses, and it warrants some protection.


Cable Business Report TM
Fox biz channel closer to reality
Getting carriage of a new cable channel is no easy task, so it is a big deal that News Corp./Fox has struck a deal to have Time Warner Cable carry its yet-to-be launched competitor to MSNBC in covering business news. A report on the website of the Financial Times quoted an unnamed executive as saying that Time Warner Cable has agreed to pay 10-15 cents per subscriber for the new channel. The agreement to carry the new biz network, when it launches, was said to be part of a broader deal for Time Warner Cable systems to renew carriage of other News Corporation properties, including Fox News Channel and its local O&O TV stations.


Entertainment Media Business Report TM
New dance partners for Mario Lopez
He came in 2nd place in "Dancing With the Stars," but Mario Lopez has picked up a new gig hosting this year's Miss America pageant. We know now that Lopez can dance, but can he sing? No, he admits, so he will not be the one to croon the Miss America theme song as the winner is crowned. The pageant will air live January 29th from Las Vegas on CMT.


Ratings & Research
NBC made the right call
With holiday reruns dominating the last week of 2006, the decision by NBC to move a Chicago-Green Bay NFL game to prime time on New Year's Eve proved to be a smart move. That, along with a #1 showing by "Deal or No Deal" on Christmas Day gave the Peacock network two of the top three shows for the week. Even so, it was barely edged out by Fox, powered by its own NFL post game and "House" for the 18-49 demo crown, followed then by ABC, CBS, Univision, CW, a tie by Telemundo and TeleFutura, i and Azteca America. For Households, CBS had an easy win with a 5.5 rating and 10 share, with NBC 4.7/8, Fox 4.2/7, ABC 4.0/7, Univision 1.8/3, CW 1.3/2, Telemundo and i 0.4/1, TeleFutura 0.3/1 and Azteca America 0.1/1.
| Here are the top 20 shows |


Stock Talk
Big gains fade to small gains
As traders came back from a four-day break, stock prices shot up on strong sales numbers from Wal-Mart and a CEO change at Home Depot. For a while the Dow Industrials were up more than 100 points. But those gains faded away as minutes released from the December 12th Fed meeting gave a bleak assessment of the housing market. In the end, the Dow managed to gain only 11 points for the day, finishing at 12,475.

Most TV stocks started the year with an up day. Gray Television saw its common rise 5.2% and Class A 2.2% on word of recent stock purchases by CEO J. Mack Robinson. Sinclair was up 3.5%.


Stocks

Here's how stocks fared on Wednesday

Company Symbol Close Change Company Symbol Close Change

Acme

ACME

5.02

unch

McGraw-Hill

MHP

67.09

-0.93

Belo

BLC

18.30

-0.07

Media General

MEG

37.75

+0.58

CBS CI. B CBS

31.60

+0.42

Meredith

MDP

56.28

-0.07

CBS CI. A CBSa

31.61

+0.38

News Corp.

NWS

22.25

-0.01

Clear Channel

CCU

35.51

-0.03

Nexstar

NXST

4.76

+0.11

Disney

DIS

34.20

-0.07

NY Times

NYT

23.73

-0.63

Emmis

EMMS

8.29

+0.05

Ion Media

ION

0.54

+0.04

Entravision

EVC

8.13

-0.09

Saga Commun.

SGA

9.70

+0.09

Fisher

FSCI

44.28

+0.07

SBS

SBSA

4.09

-0.02

Gannett

GCI

60.01

-0.45

Scripps

SSP

49.89

-0.05

Gen. Electric

GE

37.97

+0.76

Sinclair

SBGI

10.87

+0.37

Granite

GBTVK

0.12

-0.01

SWMX

SWMX

2.00

-0.10

Gray

GTN

7.71

+0.38

Time Warner

TWX

22.03

+0.25

Gray, C1. A

GTNa

8.40

+0.18

Tribune

TRB

31.00

+0.22

Hearst-Argyle

HTV

25.58

+0.15

Univision

UVN

35.56

+0.14

Journal Comm.

JRN

12.62

+0.01

Wash. Post

WPO

749.50

+3.90

Lincoln Natl.

LNC

66.50

+0.10

Young

YBTVA

2.76

-0.06

LIN TV

TVL

10.14

+0.19

-

-

-

-

-


Bounceback

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TV Media Moves

Abitabilo crosses
the street

Nexstar announced that Louis Abitabilo has joined the company as VP/General Manager of WBRE-TV (Ch. 28, NBC) Wilkes Barre-Scranton, PA, which also has a shared services agreement with WYOU (Ch. 22, CBS). He won't need to do any house hunting, since Abitabilo had been Exec. VP/Station Manager of WNEP-TV (Ch. 16, ABC) Wilkes Barre-Scranton, owned by the New York Times Co.


Below the Fold

Ad Business Report
Warner Independent Pictures
Spot Runner launch indie promo campaign...

Washington Media Business Report
NYT jumps on net
neutrality bandwagon
Used its editorial space to applaud the compromise...

Cable Media Business Report
Fox biz channel closer to reality
Getting carriage of a new cable channel is no easy task...

Ratings & Research
NBC made the right call
To move a Chicago-Green Bay NFL game to prime time on New Year's Eve...




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GeorgeWKimble@aol.com
Kozacko Media Services
520-299-4869


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TVBR Radar 2006
Television News you won't read any where else. TVBR--First, Accurate, and Independently Owned.

The puzzle is coming together:
A Nielsen stock in 2007?
That would be a pretty good bet. New VNU CEO David Calhoun has begun reconfiguring the company to create a payoff for its new private equity owners. As predicted by RBR/TVBR, one was a move to increase the influence and importance of the head of the main profit center, Nielsen Media Research.

TVBR observation: There is much weight on CEO Calhoun but more weight and pressure on newly appointed inside veteran now EX VP Whiting. What is next? Well, still much work to be done inside the mega company in all of their various divisions that TVBR has little space to outline what is needed and VNU has so little time. One thing TVBR does know that if the little things or certain divisions are not properly repaired and prepared for 2007 it will make what is ahead more difficult. Look for the big push this year: Job one for CEO Calhoun, recruited from the upper echelons of GE, is to improve profitability and prepare VNU for an IPO. Job two: Look for a reincorporation in the US from The Netherlands, Job three: A name brand change to something emphasizing the strength and brand recognition of the Nielsen name and Job four: an IPO filing. All of that could well happen this year.
01/03/07 TVBR #1

Trends to watch for in 2007
JWT, the largest advertising agency in the US and the fourth-largest in the world, is marking the New Year with a list of 70 "in" products, services and trends that will help to define 2007. "Trends are illustrated by the products and services that exemplify them," Marian Salzman, EVP, chief marketing officer of JWT Worldwide. View these 2007 trends to watch in TVBR
01/03/07 TVBR #1

Coming in 2007:
New bosses at Clear Channel
At first glance, the corporate office in San Antonio won't be changing much when Clear Channel Communications is taken private early this year (as early as government approvals can be obtained), but below the surface much is changing. The Mays family will no longer have de facto control, as they did when Clear Channel was a public company without a majority shareholder. Competitors and brokers have been salivating at the station inventory put on the market in connection with going private - some 500 or so radio stations and the entire CC Television group.

TVBR observation: Lowry and his family will walk away with over a billion bucks from the buyout, but Mark and Randall are going to be faced with a new reality of working for people who do not share their last name. They and Clear Channel Radio CEO John Hogan will have to hit the performance marks set by their new bosses or risk being sent packing. Since the Mays brothers had previously agreed to dramatically reduce their golden parachutes, they obviously believe they are up to the new task, but now they have to prove themselves. We know who will be running the company in 2007, but will they still be there in 2008 or 2009?
01/03/07 TVBR #1

TVBR observation: Things didn't work out as Sumner planned
A year ago, Sumner Redstone had it all planned out. By splitting Viacom in two, he could create two companies - one a high-energy Wall Street growth vehicle and the other a stable, profitable but slow-growth media company. It sort of worked out that way, but the reverse of what was planned. As 2006 came to an end, "new" Viacom's stock price remains stuck in neutral and CBS Corporation is the Wall Street darling. Les Moonves and the "old media" gang at CBS have been spinning off non-core assets, like Paramount Parks and smaller market radio stations, while moving into cable TV, podcasting and online streaming. The guy who supposedly got the better deal, Tom Freston, is unemployed - forced out in early September after failing to deliver on Redstone's view of the cutting-edge new media company that Viacom was supposed to become. Redstone called it "humiliating" that Freston let News Corporation grab a deal to acquire MySpace from under his nose. At this point, Wall Street has definitely embraced CBS as the better bet. Its stock is up more than 23% this year, while Viacom is down over 2%.
12/28/06 TVBR #250

Radio boycotters face
advertiser boycott in Philly

Arbitron is just weeks away from going live with PPM ratings in Philadelphia, but a reliable source in the market tells RBR/TVBR that neither Clear Channel nor Radio One stations are encoding. That's 37.5% of the market's billings. We also heard, but couldn't confirm, that Carat told Arbitron they are not going to buy any stations that are not encoded. If there were several agencies doing that, it would put enormous pressure on the radio companies to encode. The deadline for PPM encoding is Jan 11 in the market.
12/28/06 TVBR #250


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