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Volume 22, Issue 209, Jim Carnegie, Editor & Publisher

Tuesday Morning October 25th, 2005

TV News®

House Commerce doubles up on DTV
Whereas the Senate Commerce Committee essentially halved its DTV project - - stripping down a bill to ease a hard deadline into law - - the House is holding two sessions. The first is for talking, the second for marking up. Today, beginning at 3PM, committee members will be given time to make their opening statements on the House version of the bill, with the mark-up to follow tomorrow morning at 10AM (all times are Eastern). "The transition from analog to digital television will be one of the most significant technology transformations in our lifetime," said committee chair Joe Barton (R-TX). "Done the right way, it will mean better television for millions of Americans, cutting-edge new services in the marketplace, and better communications capabilities for first responders. Current federal law guarantees the opposite. The interests and continued prosperity of the American people demand we do better." The House version also sets a hard deadline, earlier than that of the Senate by a matter of about three months. The House committee is looking at 12/31/08, as opposed to the Senate committee's passage of a 4/7/09 deadline. Also, the House would allocate a little less that 1B for set-top digital-to-analog converters, whereas the Senate is prepared to go as high as 3B. The House bill does not institute a multicast must-carry provision, a topic the Senate saved for round two. The NCTA is claiming an interim victory on that latter point. "We are pleased that this legislation rejects a multicasting mandate,' said President/CEO Kyle McSlarrow (pictured). "We remain adamant that multicasting requirements are unconstitutional and not in the best interest of our customers, and we will continue to oppose them." (The NAB declined to comment.)

TVBR observation: During a five-year period after the transition, cable operators will have to carry side-by-side analog and digital versions of must-carry-eligible broadcast stations, but the digital side would be a standard digital signal - - and as we understand it that means they do not necessarily have to carry a high-definition digital signal." If this is true, Barton will have to advertise the transition to the public as follows: We bring the citizens of America high definition television, at the discretion of your local cable operator. It seems to us there is a great deal of heavy lifting to be done before this legislation makes any sense.
| Details of the House draft are here |

Meredith sees broadcast on track
Meredith Corporation's long-held goal of getting its broadcast division (14 TV and 1 radio station) to a 40% cash flow margin won't be reached this year, but CEO Bill Kerr assured Wall Street analysts that the TV group is on track to achieve that goal in its next fiscal year, which will begin next July and include the fall election cycle. Meanwhile, he said the group's 2% decline in revenues to 71.8 million for the company's fiscal Q1 was ahead of its peers, with gains in local and national sales just not overcoming the loss of 6.4 million in political revenues from a year ago. "We were particularly pleased with our local advertising sales efforts. Local advertising revenue grew 5% in the quarter, or 8% excluding political advertising. Our national non-political revenues rose 3 percent," Kerr noted. In all, non-political advertising was up 7.2% for the quarter. For the current quarter, broadcast is pacing down in the mid single digits.

Wilma makes a quick visit
Broadcasters in the Ft. Myers-Naples market were well prepared for Hurricane Wilma, having dealt with Charley only 13 months ago. This time the damage was less severe and the storm quickly headed across the Florida peninsula and into the Atlantic. But while Charley came ashore in middle-class Punta Gorda and ravaged many mobile home communities as it moved inland, Wilma hit some pricey waterfront real estate before heading across the Everglades. Marco Island was hard hit, with considerable wind and water damage, and power knocked out to its lines of expensive beach-front skyscrapers. A bit north of there, Old Naples, a district of elegant shops and restaurants in downtown Naples, was flooded. But Wilma moved quickly and broadcasters, with many radio stations again teamed up with their TV brethren, quickly went from issuing emergency bulletins to reporting on clean-up efforts. WBBH-TV even added a bit of levity to its website, showing a clip of NBC's "Today" show weatherman Al Roker being knocked over by the wind (despite the added weight of a staffer hanging onto his legs) while trying to do a live shot on a balcony. Roker was uninjured and laughed off his on-air toppling. In a Tallahassee news conference, Governor Jeb Bush lashed out at TV news crews for chasing around the streets while telling viewers it was not safe yet to go out. "They think it is fun," the governor complained. But he said the news crews were encouraging other people to venture out before it was safe to do so. "To see these characters reporting the news and putting themselves in harm's way doesn't help," Bush said.

NBC Uni in carriage deal
NBC Universal announced a major carriage deal with Time Warner Cable that goes well beyond just cable carriage, but also video on demand and Time Warners "Star Over" service, which enables viewers to start at the beginning of a show already in progress. Included in the agreement is a renewal for USA Network, and a carriage agreement for Universal HD, mun2, Telemundo Puerto Rico and VOD (video on demand). Additionally, the agreement allows Time Warner Cable to include NBC and NBC Uni programming as part of its Start Over service. When launched later this year, Start Over will provide Time Warner Cable customers the ability to restart enabled television shows that are already in progress. Select programming from NBC's broadcast network, USA, CNBC, MSNBC, Bravo, SCI FI and others will be Start Over enabled. The deal also includes the rights to on demand content from NBC News (including Nightly News and Meet the Press) and for the first time, cable (including MSNBC's Hardball with Chris Matthews and The Abrams Report; and CNBC's Mad Money and Closing Bell with Maria Bartiromo). As part of the agreement, NBC Uni will develop interactive opportunities for Time Warner Cable as well as participate in several new technology trials. Time Warner Cable and NBC Uni already have deals in place for NBC Uni's other cable properties, including SCI FI, CNBC, MSNBC and Bravo.

FCC takes up big telecom mergers Friday
The four sitting commissioners will gather for the October open meeting on Friday 10/28/05, and will consider one item of interest to broadcasters concerning SHVERA. The bigger story as far as the rest of the country is concerned will be about a pair of proposed mergers on the phone side of the Commission's area of oversight. The SHVERA item will indeed be a side show and warm-up act, compared to the proposed transfer of licenses and authorizations from AT&T Corp. to SBC Communications and, considered separately, from MCI to Verizon. With no more of a dog in those fights than has the average citizen, RBR/TVBR will be content to remain on the sidelines as an interested - - and probably mute - - observer.

Clear Channel Radio
revenues down "only" 4.3%
After reporting radio revenues down 6.5% in Q2, it was good news for Clear Channel to have radio revenues down only 4.3% in Q3 to 919.3 million bucks. "As you dissect the revenue streams, our local business was stronger than our national business, as has been the case throughout this year. Our network and traffic business performed very well," said CEO Mark Mays in his conference call with analysts. Of course, they wanted to know about Q4 as well. Mays says the quarter is pacing down 5% (6% including barter), but he later noted that CC Radio got about 30 million in political revenues a year ago, particularly for its stations in the swing states of Ohio and Florida, so ex-political Q4 is only down about 1-2%. That's all evidence that the company's Less is More initiative is working, and CC Radio CEO John Hogan says the evidence goes beyond just the revenue numbers. He said average unit rates are up and yield-per-minute is increasing as well. Asked by one analyst about whether local managers will have autonomy going forward to determine the appropriate mix of :60, :30 and :15 spots, Hogan insisted that they already have "almost complete autonomy" and he said local managers have gained experience and expertise in pricing and balancing inventory under LIM. Clear Channel's plans to spin-off its Entertainment company to shareholders and sell an IPO of 10% of its Outdoor company remain on track, but no new information was revealed. CFO Randall Mays said to expect updated SEC filings soon on those reorganization moves. There was also nothing new on just how Clear Channel will return 1.6 billion to shareholders - - either through a special dividend (the original plan) or share buybacks, but Mark Mays ruled out any move soon to raise the company's regular dividend.

TVBR observation: Despite radio and other (including TV and Katz) being down in the revenue line, Clear Channel over all managed a 1.1% revenue gain to 2.7 billion, with outdoor as the biggest contributor. That bodes well for the planned IPO. We'll see today whether traders give the company's stock a boost, since it beat expectations in Q3. On the bottom line, earnings per share were 44 cents, while the Thomson/First Call analysts' consensus was only 38 cents.

Conference Calls 2005

Meredith beats the Street
Coming in a penny ahead of the analysts' consensus, Meredith Corporation reported fiscal Q1 (July-September) earnings of 52 cents per share. Revenues ballooned 35% to 390.3 million, largely due to the acquisition of several new magazine titles at the beginning of the quarter. On a comparable basis, revenues grew 6%. That was all due to the publishing side, where revenues were up 48%, or 9% on a comparable basis. Magazines operating profits were up 26% on a historical basis, or 13% on a comparable basis. As noted above, broadcast revenues were down 2% to 71.8 million. Broadcast operating profits declined 11% to 12.8 million.

Clear Channel by the numbers
As Clear Channel Communications prepares to spin-off its Entertainment division to shareholders before the end of this year and sell an IPO of its Outdoor company, here's how each division performed in Q3.

**Clear Channel Communications, Q3 2005**
(in thousands)
Segment	Revenues	Change
Radio	919,245	-4.3%
Outdoor	668,003	11.3%
Entertainment	983,454	0.9%
Other*	145,120	-1.5%
	Cash flow	Change
Radio	372,509	-11.7%
Outdoor	184,624	9.4%
Entertainment	85,495	-6.1%
Other*	24,856	-17.1%

*Other includes TV and Katz Media Group

Adbiz©

David Verklin:
Mastering a digital future - - Part I
(from our July RBR/TVBR Solutions magazine)
David Verklin, CEO of Carat Americas, runs the largest independent media services company in North America, sporting 6 billion in billings annually. David shepherds over 350 clients including Pfizer, Procter & Gamble, RadioShack, Adidas, Hyundai, New Line Cinema, Electronic Arts, Kia, Black & Decker, Marriott and Philips Electronics. David is a recognized leader in the media services industry and currently sits on the board of the American Advertising Federation, the Audit Bureau of Circulations, the Virginia Commonwealth University's AdCenter, as well as the NY Multiple Sclerosis Society. In 1996, David was inducted into the AAF's Under 40 Hall of Achievement. David began his career at Young & Rubicam, NY, with a plan of staying there two years, going back to business school and then working in Wall Street. Well that never happened, as his success in the media business showed him a different path. He then helped create Hal Riney & Partners in San Francisco, first serving as its Media Director and later as its Managing Director. After Hal Riney got sold to Publicis, Carat was created and the rest, as they say, is history. Here, David talks about the biz, with a special focus on his passion, new digital technologies and the marketing that goes with it.

In a nutshell, how are you and your Carat Digital unit seeing the future
of advertising in a digital convergence world?
There's no question that our clients are unbelievably interested in new advertising technologies. Clients are interested in hearing about it as with the diversion of the budget. We're seeing kind of a movement towards a media plan that is 15% to 20% of the budget being allocated into what would probably currently be called interactive or digital media. It's kind of amazing when right now you're hearing the Internet guys talking about 8% and I'm telling you within the next 36 months we're talking about 15% to 20% of total spending in the digital medium.
| Read More... |

ZenithOptimedia's latest report:
global ad spend remains positive
In its the fourth quarter edition of regular quarterly tracking reports, ZenithOptimedia Group said global ad spend remains positive despite economic uncertainties, including the rash of hurricanes in the US. The rise of online ad spend and increased spend from developing nations were the major driving factors for growth. Though the Internet will account for only 4.3% of worldwide ad spend this year, it will drive 16% of global advertising growth for the year, according to the report, which now pegs the world's ad economy will rise 5.2%. That represents an increase of a half percent from the 4.7% rate of growth ZenithOptimedia projected for 2005 in its last quarterly release this past July. ZenithOptimedia now anticipates worldwide ad spend will rise 6.2% in 2006, up from an earlier prediction of 6.1%. Ad spend in 2007 is now estimated to be up 6.1%, up from a previous forecast of 5.8%. That growth will be coming largely from developing nations including Russia, India, China and the Saudi Arabia region.

GM Goodwrench looks 'Down the Road' for next campaign
GM Service and Parts Operations expects a new campaign to hit a home run when it airs during the World Series today. The campaign focuses on the peace of mind GM vehicle owners will have by visiting their GM dealership for preventive maintenance services. The "Down the Road" campaign, created by Leo Burnett Detroit, emphasizes the importance of having vehicle maintenance performed by GM-trained technicians at local GM dealerships using genuine GM Parts.
| Read More... |

Campbell-Ewald wins Navy account, opens DC office
Campbell-Ewald has again won the account for U.S. Navy recruiting and has additionally opened a Washington, D.C. office to further support and grow its government portfolio. Campbell-Ewald began its initial contract with Navy in 2000 and recently completed the government-mandated review for a contract that could extend to 2010. For the last 50 months, the Navy has met its monthly active duty recruiting goals, surpassing the previous all-volunteer Navy record of 16 months. "We're ready to continue meeting the Navy's challenge of helping young people decide to serve our country," said Campbell-Ewald, Executive Vice President, Account Director Kathleen Donald. "Young peoples' consumption of media is ever changing and Navy's 'Accelerate Your Life' campaign will continue to reach them in innovative ways with opportunities to jump-start their own career interests." Campbell-Ewald continues its partnership with Accentmarketing, Coral Gables, FL, and GlobalHue, Southfield, MI, to further extend Navy's recruiting communications to Hispanic and African-American prospects. In addition to Navy, Campbell-Ewald is AOR for the U.S. Postal Service, U.S. Postal Inspection Service and Federal Citizen Information Center (FCIC) and has performed project work for the Centers for Medicare & Medicaid Services (CMS), Federal Aviation Administration (FAA) and National Aeronautics and Space Administration (NASA). Campbell-Ewald is on the General Services Administration Advertising & Integrated Marketing Solutions (AIMS) schedule.

Media Business Report

Alternative papers set merger
Back in 2000 staffers of Village Voice Media cheered when an investor group headed by former radio guys Jim Thompson and Mike Craven showed up to buy the company and keep it away from the clutches of rival New Times Media. But it appears much has changed since then. When New Times Media and Village Voice Media yesterday announced a plan to merge, the move was no surprise after months of rumors that the two were in talks to become one to battle the rise of new competitors such as Internet bloggers and other alternative news sources. "I am sure that most of your are aware of the bizarre charge that this merger will mark the end of alternative journalism. Nothing could be farther from the truth," said Village Voice CEO David Schneiderman in a staff memo posted on the company's website. Rather, he insisted that "both companies support and encourage their journalists to expose corruption, hypocrisy and incompetence wherever they find it." As if to point up the competition to alternative print papers face these days, Schneiderman is taking a new post as President of the Internet Division of the new company. New Times CEO Jim Larkin will be CEO of the merged company. Although not mentioned in the joint announcement, Larkin told the New York Times that his investment group, led by Alta Communications, expects to buy out the Village Voice backers (Thompson & Craven's group with backing from Weiss, Peck & Greer, Goldman Sachs and Trimaran Capital Partners).

MBR observation: This deal still faces an uncertain future in an antitrust review by the Department of Justice. The two companies drew the ire of DOJ in late 2002 when they announced a deal to stop competing with each other in Los Angeles and Cleveland (11/25/02 TVBR #27). That was settled a couple of months later, with both reactivating their shuttered papers (1/28/03 TVBR #19). Those two papers were later sold to new owners, which will eliminate those former overlap markets as a barrier to the proposed merger. Under the previous settlement, New Times and Village Voice were required to notify DOJ of any merger discussions, so it's likely that they've already dealt with any antitrust issues which might come up this time around.

Media Markets & MoneyTM

Bear Stearns bullish on Univision
Analyst Victor Miller told clients yesterday that it was likely that Univision's stock price may have bottomed out for the near-term last Thursday (23.66 at the close) and that its growth prospects make it worth its current premium to the radio/TV group. He's maintained an "outperform" rating and 33 bucks target price. Although Univision missed its Q2 guidance, Miller says Q3 expectations are realistic (the company reports November 2), that its ratings are strong (particularly in LPM markets), the company is benefiting from combining radio and TV stations in its local markets and that management's spat with part-owner Televisa is overblown.

Washington Beat

CA Rep asks for accountability
If broadcasters get multicast must carry, Rep. Diane Watson (D-CA) wants to make sure there are controls on how they're used, and has introduced "H.R 2359, The Digital Television Accountability and Governance Enhancement Act of 2005." The bill would require that multicasters provide a minimum of three hours weekly of local civic or electoral affairs programming, independent or locally produced programming equal to a quarter of the station's primary channel prime time programming, and echoes the FCC's under-challenge requirement for three hours weekly of children's educational programming per multicast channel. Stations would be held accountable via twice-yearly public hearings and quarterly reports to the FCC detailing its public interest efforts. Watson thinks it's the least broadcasters could do in return for the spectrum. As she wrote in an article for "The Hill," "If television broadcast licensees had to pay for their access to spectrum, it could generate in excess of 750B in federal revenues." She says given that and the fact that typical broadcast profit margins, which she says the FCC has pegged at about 40% in many cases, living up to these public interest obligations would be a small burden to bear.

TVBR observation: It's always a difficult matter to get any kind of content regulation into a signable law, and if you get that far it's even harder to then sneak it past the courts. The fact that Watson is a Democrat in the House of Hastert and Delay is an even bigger hurdle, if a bigger hurdle is necessary. So for a variety of reasons, this bill is likely on the road to nowhere. However, sentiment for this kind of stuff is simmering away on the minority side of the aisle. If and when Committee-leading Dems like John Dingell get to replace the title "Ranking Member" with the title "Chairman," broadcasters had best be ready for a series of Capitol Hill battles, with First Amendment skirmishes prominent among them.

NY Rep asks for extension
Whatever the DTV deadline legislative result as the Senate and House tackle the issue, Rep. Eliot Engel (D-NY) doesn't think New York City will be ready and is asking for an extension. The city lost most of its television towers in the 9/11 attack, and is not able to get the same amount of territory covered from the lower-altitude replacement antennas currently operating from the Empire State Building. "If this waiver is denied, hundreds of thousands of people could be without free, over-the air television signals," he said. "Until the new Freedom Tower is built, there simply isn't the infrastructure to handle the conversion. We are able to let New York stay in analog without affecting the auction revenues or causing problems for public safety. The Administration and Congress have committed to help New York recover and rebuild - - this is part of that effort."

Radio remarks may result in Hill chat
Many Senate Judiciary Committee members have wondered why Focus on the Family leader and radio show host James C. Dobson was in the White House loop on the personal beliefs of SCOTUS nominee Harriet Miers, while they apparently are not. Dobson discussed with his listeners a private chat he had with Karl Rove, hinting that Miers' judicial philosophy would be acceptable to his audience, without going into any specifics. Judiciary Committee Chairman Arlen Specter told CBS's "Face the Nation" Sunday that there was a good chance Dobson would be asked to appear before the committee. Specter suggested Dobson and others were given information inappropriately, and that "...the American people are entitled to clarification."

Programming

Mullally talker cleared on NBC O&Os
NBC Universal Domestic Television Distribution didn't have to look far for the first big market stations to sign on for a new talk/variety show set to launch next fall with Megan Mullally of "Will & Grace" fame as host. The first four stations to commit to the one-hour daytime series are four NBC O&O's: WNBC-TV New York, KNBC-TV Los Angeles, WMAQ-TV Chicago and KNTV-TV San Francisco. "Television programmers from coast to coast have recognized Megan's unique talents as a host, singer and Emmy Award-winning comedic actress," Barry Wallach, President, NBC Universal Domestic Television Distribution.

Ratings & Research

Task Force calls for MRC reform
Since delivering its report on how Nielsen can make sure minorities are fairly measured in TV ratings (3/24/05 TVBR #59), the Independent Task Force on Television Measurement has gone on to look at the Media Ratings Council (MRC), which accredits ratings services, and how it can better represent minority audiences. While the task force, headed by former Rep. Cardiss Collins, said the MRC should remain voluntary - - the group has already stated its opposition to the bill by Sen. Conrad Burns to make MRC accreditation mandatory in TV ratings - - it said the MRC has fallen behind the times. The task force wants it to add non-voting seats for consumer groups and other "representatives of the public interest," let in smaller companies with a sliding fee scale, and give advertiser representatives voting parity with media companies. It also wants the secretive MRC to open up and make public its votes on all MRC matters that don't contain proprietary information.
| Read the entire report |

Special Report from Telecom '05

What broadcasters can learn from telcos
This is Gregg Skall, Womble Carlyle law firm, and Don Hicks, President of the Missouri Broadcasters Association. We came out to Telecom 05 in Las Vegas, a telephone industry convention, because so much of this convention is devoted to IPVideo delivery and the entry of telephone voice providers into the broadband "Triple Play" or "Quadruple Play" of Voice, Data, Video and Wireless delivery. From a cursory look at the schedule for this conference it becomes clear that telephone sees video delivery, and most likely Video on Demand (VOD) as their next big market. The question is: what is the role for the local broadcaster in this future, as either a wireless delivery vehicle for digital video content to the consumer via multicasting or IP data stream, or as a content provider to other delivery modes, such as telephone or cable company fiber to the home (FTTH) technology. Sunday's sessions had two relevant sessions. In On Demand Success Stories several companies presented scenarios showing that On Demand works in an IP environment.
| Read More... |

TVBR (Skall/Hicks) observation: Are TV broadcasters asleep at the switch? Cable and now, telephone are moving far out in front, are lining up the program creators like television networks and Hollywood studios, and now the newer creative content providers.

Stock Talk

Wall Street cheers Fed nominee
Stock prices jumped, including most radio and TV stocks, as President Bush nominated his chief White House economic adviser, Ben Bernanke, age 51, to be Chairman of the Federal Reserve Board. Alan Greenspan, who is retiring at 79, issued a statement praising his would-be successor. The Dow Industrials rose 170 points, or 1.7%, to 10,385.

Most TV stocks rose. Viacom had a strong day, up 3.7% (both classes). Emmis rose 2.8%.

Stocks

**Here's how stocks fared on Monday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Acme	ACME		3.91	+0.01	Media General	MEG		55.00	+1.44
Belo	BLC		21.04	+0.16	Meredith	MDP		50.03	+1.25
Clear Channel	CCU		30.93	-0.02	News Corp.	NWS		15.55	+0.20
Disney	DIS		23.30	+0.32	Nexstar	NXST		4.93	-0.07
Emmis	EMMS		20.05	+0.54	NY Times	NYT		27.30	+0.21
Entravision	EVC		7.69	+0.09	Paxson	PAX		0.43	+0.01
Fisher	FSCI		47.64	+0.75	Saga Commun.	SGA		12.82	+0.34
Gannett	GCI		63.86	+1.18	SBS	SBSA		6.48	+0.13
Gen. Electric	GE		34.13	+0.40	Scripps	SSP		46.11	+0.11
Granite	GBTVK		0.24	-0.01	Sinclair	SBGI		8.61	+0.21
Gray	GTN		9.90	-0.01	Time Warner	TWX		17.66	+0.43
Gray, C1. A	GTNa		9.40	-0.17	Tribune	TRB		31.37	+0.46
Hearst-Argyle	HTV		24.50	+0.22	Univision	UVN		25.40	+0.70
Jeff-Pilot	JP		53.52	+0.40	Viacom, Cl. A	VIA		31.26	+1.12
Journal Comm.	JRN		14.26	+0.40	Viacom, Cl. B	VIAb		31.16	+1.10
Liberty Corp	LC		39.20	-0.60	Wash. Post	WPO		767.25	+5.35
LIN TV	TVL		13.00	+0.06	Young	YBTVA		2.64	+0.20
McGraw-Hill	MHP		48.16	+0.47	-	-	-	-	-

Bounceback

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

TV Media Moves

Fassett runs
with Red Dog
Red Dog Entertainment, a leading developer, producer and distributor of non-fiction, reality and entertainment-based television series, has appointed Brian Fassett as the company's first Vice President of Production. He will be responsible for running the operations of Red Dog Entertainment's New York headquarters and liaising with Red Dog's Los Angeles office on production activities.

More News Headlines

Looking for a good small company?
Two broadcast companies made Forbes Magazine's annual list of the "200 Best Small Companies." Entercom made its second straight appearance on the list, coming in at #195. Gray Television made the list for the first time at #146. Forbes defines "small" as public companies with annual revenues of 5-750 million. Net profit margins must exceed 5% and no penny stocks allowed. Forbes says the companies in its list are "solid and consistent hitters" who have performed well over the past 12 months and five years - - and are poised for another growth spurt.

Below the Fold

TVBR Special Report:
What broadcasters can learn from Telcos TVBR observation: Are broadcasters asleep at the switch? Cable and now telephone are moving far out in front.

AdBiz
Ad Close-up with David Verklin, CEO of Carat Americas Part 1 - Mastering a digital future ZenithOptimedia's latest report Global ad spend remains positive

Washington Beat
CA Rep asks for accountability
TVBR observation: Content regulation is very hard to get

Ratings & Research
Task Force calls for MRC reform. How it can better represent minority audiences.

TVBR Radar 2005

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

Hello Mr. Rupert,
We say Welcome to America
News Corporation's first shareholder meeting as a US-incorporated company on Friday was a bit of a circus, with shareholders berating CEO Rupert Murdoch for such things as poor returns, refusing to let them vote on the company's poison bill and his own not having to stand for election until 2007.
TVBR observation: The key is view this new circus tent open up. Now we have two - Sumner Redstone and now - Welcome to the Circus Mr. Rupert.
10/24/05 TVBR #208

DTV-Day moves
toward a date certain
The Senate Commerce Committee read out a DTV bill which establishes the deadline for the return of analog spectrum by television broadcasters of 4/7/09, as expected. An amendment from John McCain (R-AZ) which would have moved the date forward two years, to 4/7/07, was defeated. TVBR observation: Stevens made no bones about the fact that the committee was considering a stripped-down bill. Many contentious issues were set aside for separate consideration, not the least of which is the issue of multicast must carry. Stevens promised to get into the next round of DTV legislation as early as next week. As for the DTV bill part one, it's on to the Senate floor, then conference committee, then the White House.
10/21/05 TVBR #207

Nielsen clarifies
Fusion vs. Apollo pitch issue
Nielsen in the past several weeks has begun pitching clients on a "new research product designed to provide similar data as Apollo, but using a controversial method known as Fusion." TVBR needed this clarified so we asked Nielsen Chief Research Officer Paul Donato and SVP/Client Insights Howard Shimmel if this was true and to explain to the entire media business and take the Confusion out of Fusion. TVBR observation: Worth a read and get your personal business insight and learn. It is One on One detailed.
10/21/05 TVBR #207

Nexstar wins retransmission
standoff with Cox Cable
CEO Perry Sook had been standing firm since January, the network affiliate stations that Nexstar owns or manages for Mission Broadcasting could not be carried on Cox Communications cable systems in several Texas and Arkansas markets unless Cox agreed to pay compensation for retransmission consent. Cox refused, as did Cable One in other Nexstar markets, and cable customers have been without those local stations for nearly 10 months. But the signals are back on in the Cox markets.
TVBR observation: No doubt hundreds of other TV owners and managers will be calling Sook and Lammers with thanks and congratulations - - and advice on how to go forward with their own retransmission consent negotiations. They took a big risk by deciding to become the industry's guinea pig - - and it has paid off. Most other TV companies have at least some of their retransmission consent agreements coming up for renegotiation in 2006. For those who don't have a cable card to play, which will soon include CBS, the rules of the game have been changed.
10/21/05 TVBR #207

Stevens wants 3B DTV subsidy
Three billion bucks is the subsidy amount Sen. Ted Stevens (R-AK) says he'll proposed today as the Senate Commerce Committee marks up legislation which would set a firm deadline for the conversion to digital television (DTV). The subsidy would be used to help lower income people pay for the conversion boxes needed to receive broadcast TV when analog signals are shut off so the spectrum can be auctioned by the US Government. MBR observation: Wow 3 billion bucks seems it would be cheaper to buy everyone a new TV set than underwrite this as between now than 2009 most consumers are watching and waiting for the prices to drop - which they are - so next year or year after people will buy new TVs, Flat screens because they want quality and many are willing to pay for it if the price is right. Talk about fleecing America - hey NBC Nightly News should do a piece report on this.
10/20/05 TVBR #206

It is Not Free, Here is Jay Severin
Don't look for Infinity to launch 22 "Free FM" FM talk stations across the country, as was the rumor printed by Inside Radio, owned by Infinity's rival Clear Channel. Rather, Infinity CEO Joel Hollander told RBR the rumor had much more to do with launching Jay Severin from WTKK-FM Boston on -AM Dallas, WPHT-AM Philadelphia, WJFK-FM Washington, D.C., and KMOX-AM St. Louis beginning Tuesday, January 3, 2006. MBR observation: The big issue that Infinity still needs to deal with is what its 22 stations are going to run come January 3rd in the morning drive slot where they now carry Howard Stern. There have been plenty of rumors, but so far no official announcements. Advertisers are already making Q1 buys and sales execs for those stations can't even tell potential ad buyers what's going to be on the air. But with Severin on key stations mentioned above this also brings the speculation and talk around the water coolers that Infinity will launch a new Hot Talker network. Seems the talk or the game plan with Infinity is getting out of the starting gate first as again the speculation has Clear Channel ready to toss the switch on a similar Hot Talk FM network. Ah, don't touch that dial - Stay tuned with us as this is in MBR's Business power rotation.
10/20/05 TVBR #206

McCain in the neck?
Senator wants to speed DTV
John McCain (R-AZ) has long been a proponent of forcing television broadcasters to return spectrum being used for side-by-side analog/digital over-the-air operation. The current moral reason for such a stance is the rapid provision of much-needed spectrum for America's emergency first responders. However, it goes deeper than that. TVBR observation: McCain's claim that the double spectrum regimen is some sort of scheme dreamed up by the NAB and sold to the politicians he thinks it has in its back pocket has always been absurd. It was absolutely necessary to introduce the new technology while preserving the old during the transitional period, just as it's ludicrous to expect that every citizen in a market would run right out and buy a digital receiver the minute the first DTV station was operational. What broadcasters got was a second overhead outlay without the compensation of opening a corresponding revenue stream. The dual operation was an expense borne by broadcasters to make the transition possible. And if Stevens is right in his assertion that the equipment doesn't yet exist for first responders to begin using their earmarked spectrum, then moving up the deadline for that reason is also absurd. - Bottom line - It all comes down to Money. DTV is one of the key issues TVBR will maintain a Business Focus so stay tuned.
10/19/05 TVBR #205

Affiliates fret about iPod deal
Disney/ABC may be embracing new media with last week's deal to sell video downloads for Apple computer's new video iPods, but what' in it for ABC Television affiliates? Nothing, apparently, and the affiliates are letting the Mouse House know they are none too pleased about it. A letter to Disney management from its affiliate association board of governors complained that the affiliates weren't even consulted about the deal, let alone included in a share of the proceeds. TVBR observation: The dollars, at this point, don't amount to much, but the affiliates know that will change in time. It's hard to imagine that large numbers of people will want to watch half hour or hour shows on tiny iPod screens after shelling out big bucks for a plasma set at home. But iPod downloads now could lead to hi-def downloads for full-size screens in the future. The affiliates are correct in deducing that if they're going to get a share of the proceeds, they're going to have to act now. Otherwise, the value of their network affiliations will gradually erode. Can not say RBR/TVBR did not warn you well in advance.
10/18/05 TVBR #204

Stern blasts CBS
Sirius Media Blitz begins
As the countdown begins for his New Year's move to Sirius Satellite Radio, Howard Stern has charged that his current employer, Viacom's Infinity Radio, has it in for him.
TVBR observation: The two rejected Sirius ads apparently went afoul of CBS rules for different reasons. Only one was turned down because it promoted offensive language. The other was bounced because it was overly disparaging of terrestrial radio. That's not because CBS's parent company also owns radio stations. The network's standards and practices rules forbid one company in any field from overly disparaging a competitor in its advertising. Howard is grabbing the Press and look out as Stern hits the TV talk show circuit.
10/18/05 TVBR #204

Revenues down, profits up
at NBC Uni
GE CEO Jeff Immelt says he's upbeat about NBC Universal, even though Q3 revenues fell 26% to three billion bucks without political advertising and the 2004 Summer Olympics. Profits, however, rose 13% to 603 million. TVBR observation: Just get a chuckle on the way NBC still has to work in the '04 Summer Olympics - come on that was then, like going on eighteen months and still pointing to the finger at 2004. NBC has the Winter 2006 games around the corner and from what TVBR hears they are not sold out and having a little difficulty getting it sold. Saving device is GE/NBC Uni is so larger it can absorb more punishment than the average television group.
10/15/05 TVBR #203

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