Volume 21, Issue 21, Jim Carnegie, Publisher
Monday Morning February 2nd, 2004

TV News ®

Indecency Hits Super Bowl
When they called it from the broadcast booth that the second half would produce raw naked packed football the play-by-play the announcers were correct. But the half time entertainment of Janet Jackson produced by CBS's - MTV did not get MVP or Most Valuable Performance. Ms. Jackson bared a part for the world to see that, well, it was pierced. Justin Timberlake was dancing with Janet Jackson and at the conclusion of their dance number reached over and ripped off part of her top. (photo from AP) Here's the official statement release by the NFL Executive Vice President Joe Browne regarding the Super Bowl halftime show: "We were extremely disappointed by elements of the MTV-produced Halftime show. They were totally inconsistent with assurances our office was given about the show. It's unlikely that MTV will produce another Super Bowl halftime." Editor's Note: Many yelling indecent broadcast on the local level with FCC handing down fines galore we wonder what Viacom head Mel Karmazin is waiting for this morning? The entire world saw this one. Quick, someone call Chairman Powell and get a figure on a potential indecency fine. If a :30-second spot was costing $2.8 Million - that sounds about right.

Tauzin ready to hang 'em up?
It looks like the rumors that Billy Tauzin (R-LA) has been job-hunting are true. Numerous sources report that the veteran high-powered Congressman is ready to find a less stressful line of work after fighting a serious recent illness. He has turned down an offer to head up the MPAA, taking over for its long-time head Jack Valenti (a job he is said to think may be offered to outgoing Senator John Breaux (D-LA). He is considering a similar post with PhRMA. a pharmaceutical industry organization. Democratic presidential candidate Wes Clark was quick to jump on that possibility, and other Dems have joined in the potshot contest, charging conflict of interest following Tauzin's role in pushing the new prescription drug bill through Congress. As Chairman of the powerful House Energy and Commerce Committee, Tauzin has been in a position to forward issues of concern to broadcasting companies.

Pixar exit invigorates Eisner opponents
Last week's break-up of talks to have Disney continue its lucrative movie deal with Pixar has provided new ammunition to ex-Disney directors Roy E. Disney and Stan Gold, who are trying to build shareholder support to oust Disney CEO Michael Eisner.
| Full Story Click Here
|

Consumers Union blasts FCC crossownership evidence
One of the arguments the FCC used in justifying its relaxation of media cross-ownership rules was a diversity index, which weighted various forms of media in terms of their use by the public for news and information. The Consumers Union and the Consumer Federation of America are saying that the FCC's weighting system was seriously flawed. In particular, it undervalued newspapers and overvalued radio and the Internet. | Full Story Click Here |


CWA gets behind Kerry
Communications Workers of America have endorsed Sen. John Kerry's (D-MA) bid for the Democratic presidential nomination. The union also made it abundantly clear that it wants to replace the current White House occupant. "It is becoming increasingly clear that Senator Kerry is the strongest candidate to carry the party's banner and reclaim the White House from an administration that listens solely to the corporate and wealthy elites at the expense of working families," said CWA President Morton Bahr. He concluded, "CWA members know John Kerry as a leader who has stood with us time and again, fighting consistently for the interests of American working men and women during his 19 years in the Senate. We are proud to stand with him today, and we will mount a vigorous grassroots effort on behalf of John Kerry's nomination and for his election as President in November."

Q4 reports off to a good start
Most radio companies won't report their Q4 2003 financial results until the second half of this month, but the reports from broadcasters so far - - mostly newspaper companies that own TV groups - - have been pretty good. TVBR observation: Signs of a recovery.
| Full Story Click Here
| TVBR Observation |

Gannett and Jeff-Pilot report today
As Q4 reports to Wall Street continue, Gannett and Jefferson-Pilot Corp. are on deck today. The hurdle for Gannett is not high, so this could be another newspaper/TV company that beats The Street. Analysts surveyed by Thompson One Analytics are expecting revenues to be up only 3% to $1.79B and for earnings per share to rise 1% to $1.31. Jefferson-Pilot Communications is only a small part of Jefferson-Pilot Corp., and an even smaller part following a recently announced $200M acquisition by the insurance company (1/15/04 TVBR Daily Epaper #9). Nevertheless, its radio and TV stations are nice cash flow generators for Jeff-Pilot and we'll find out today how they did in Q4, along with the rest of the company. Wall Street is looking for earnings per share to be up 21% to $0.91. Jeff-Pilot managers will wait until tomorrow to conduct their quarterly conference call with analysts.


Adbiz ©

ATTENTION SALES STAFFERS: Quiznos alert!
This news items may be of interest to sales types. The FCC has just issued an official citation to Quizno's Subs operations in several locations, warning them to stop sending unsolicited faxes advertising their business. | Full Story Click Here |

Coca-Cola joins with Musicmatch
in marketing venture

Coca-Cola has teamed up with online music provider Musicmatch to promote its Sprite brand. The announcement comes just days before Pepsi and Appler's iTunes Music Store kick offs a promotion to give away up to 100M song downloads. The Coca-Cola partnership will link privately held Musicmatch, the software company known for its popular music player, with millions of Sprite drinkers, the companies said. Musicmatch's Jukebox had more than 45M registered users in 2003.

UK launches campaign addressing relaxed pot laws
Laws against pot smoking in the UK have been relaxed in the biggest shake-up of that nation's drug laws in 30 years. The drug has been downgraded 1/29 from a class B drug to class C, putting it in the same category as tranquilizers and steroids. To support, the UK Government launched a £1 million radio and print campaign to educate people about the change in the law. The effort is designed to send the message that marijuana will remain illegal after it's downgraded and that the drug is harmful to one's health.
| Full Story Click Here
|

Comcast CEO to speak at the 4As
The AAAAs just announced Brian Roberts, Comcast CEO, will speak at the opening General Session on 2/12, during the 2004 AAAA Media Conference & Trade Show. He'll present his views on how cable is moving toward better targeting via digital set-top boxes and new advertising-supported models.

TNS Media Intelligence/CMR
Names Lori Madeloff SVP
TNS Media Intelligence/CMR has upped Lori Madeloff to SVP/Product and Custom Services, from VP/Product and Planning. Madeloff will lead the Product and Custom Services Group - comprised of the syndicated product management and planning, custom solutions, product support and product assurance areas of the company. The group's primary responsibilities are to enhance the TNS Media Intelligence/CMR product suites with new offerings and capabilities, develop custom product solutions specific to client needs, as well as oversee quality and support for all TNSMI/CMR products.


Media, Markets & Money tm

Bae Bae Boise: TV CP sold
Myoung Hwa Bae's KM Television group is lightening its O&O load by one, spinning a CP for a television station in Boise ID for $3M. The buyer is a growing group in its own right: the Gary M. Cocola Family Trust Group. The station is KKJB. It is licensed to broadcast on Channel 39. The Cocola Family Trust owns two other full power TV stations, KCBU-TV Provo UT (Salt Lake City) and KGMC-TV Clovis CA (Fresno). It also operates a network of low power television stations - - 22 all told. Most of these are in California, but the three that are not are in the Boise area. Cocola Broadcasting utilizes a variety of programming strategies throughout its network, according to the company overview published at its website. It tries to provide a local alternative to the affiliates, providing a little bit of everything in the way of programming: home shopping, religious, foreign language, urban, classic programming and more.


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Washington Beat

Let's call the whole thing off
The FCC and Roy Henderson have decided not to bother determining if Henderson misrepresented facts to the Commission, nor whether he lacked candor in dealing with the Commission, regarding his CP for WTCU-FM in Fife Lake MI.
| Full Story Click Here |

Pre-emptions and rescheds in the House
Fred Upton's (R-MI) House Telecommunications and the Internet Subcommittee was set to convene a session at 10:00 AM Wednesday, 2/4/04, called "The Current State of Competition in the Communications Marketplace." Wednesday is still the date, but the time has been moved back by three hours and change. The session will be held in the Rayburn Building at 1:15 PM instead. At press time, a list of panelists was still being finalized. This does not figure to be the last word from the subcommittee on communications. It is set to markup HR 3717 "The Broadcast Indecency Enforcement Act" in the near future, and before it does that, most of the members seemed intent on sinking their talons into the flesh of some real live broadcast executives and FCC commissioners. Neither the markup nor the second indecency hearing are on the schedule yet. Stay tuned.


Programming

Reba hosting CMA Awards
CBS announced that a familiar face will be hosting the "39th Annual Academy of Country Music Awards" show, to be broadcast live May 26th. Reba McEntire will be back for the third straight year to host the three-hour awards show.

NBC renews "Las Vegas"
and "American Dreams"
Two drama series have gotten renewals at NBC - - "Las Vegas" and "American Dreams," which air on Monday and Sunday, respectively. "These two dramas have maintained strong 18-49 adult appeal and both deliver terrific, creative programs," declared Jeff Zucker, President of the NBC Entertainment, News and Cable Group. "'Las Vegas' is the season's top-rated freshman drama and provides flashy, high-octane entertainment while 'American Dreams' has multi-generational appeal with its socially relevant storytelling and ingenious use of contemporary musical guest stars." Editor's Note: Good move by NBC since analyst Tim Wallace at UBS is predicting that next season could be when CBS passes NBC 18-49 demo. If that happens, it could also cut into NBC's $300-500M cash flow advantage over CBS. We’ve said it before, if networks down load more of the Average Joe stuff … Cable programming like USA’s Monk will start moving up and pushing out. 01/26/04 TVBR #16

More "Top Model" for UPN
UPN liked the first and second editions of "America's Top Model" that it's signed up for two more go-'rounds of the reality series featuring supermodel Tyra Banks. The show has been one of the top ratings draws for UPN, featuring young women competing in weekly tests to win a modeling contract.

"The L Word" reupped at Showtime
Showtime announced the renewal of "The L Word" for a 13-episode run and second season. The series, which airs Sundays at 10P, stars Jennifer Beals, Mia Kirshner and Pam Grier. It evolves around a group of gay and straight women living in LA. Posse Productions executively produces.

NBC forges content deal with The Smoking Gun
NBC has struck a deal with Court TV, where its website, TheSmokingGun.com will supply NBC News with exclusive content. The Smoking Gun founders Bill Bastone and Daniel Green will also provide commentary on "Dateline" and "Today" when relevant news presents itself.


Monday Morning Shakers & Makers

Deals: 12/29/03-1/2/04
The week that straddled the 2003/2004 was almost perfectly divided in style. The first part of the week belonged exclusively to radio deals, mid-range at that. The second part, effectively only one day (January 2), featured a handful of small radio deals, and two giant TV deals. The bottom line: The first $1B trading week since the big freeze over the summer! Both of the TV deals were complicated, and values are TVBR estimates.

12/29/03-1/2/04

Total

Total Deals

18

AMs

13

FMs

20

TVs

13
Value
$1,007,595,000
For Complete Charts, Click Here |

TV Deal of the Week
Freedom, Scripps go multi-market
| Full Story Click Here
|
Radio Deal of the Week
Bismarck, Gainesville tie for the lead
| Full Story Click Here
|

Stock Talk

Slower growth sends stock prices down
Growth in the nation's gross domestic product slowed to 4% in Q4, disappointing Wall Street and sending stock prices lower. The Dow Industrials dropped 22 points, or 0.2%, to 10,488.

TV stocks were mixed, with few big movers. Univision fell 4.4% after being downgraded by Morgan Stanley. Its largest TV affiliate group, Entravision, rose 2% as the day's best performer. Disney fell 1.8% on news of Pixar walking away from talks on extending their movie deal.


TV Stocks

Here's how stocks fared on Friday

Company Symbol Close Change Company Symbol Close Change

Acme

ACME

$9.78

+$0.13

Meredith

MDP

$50.41

-$0.82

Belo

BLC

$27.55

+$0.15

Media General

MEG

$64.30

-$0.33

Clear Channel

CCU

$44.99

-$0.16

News Corp.

NWS

$36.82

+$0.32

Disney

DIS

$24.00

-$0.45

Nexstar NXST $13.42

-$0.08

Emmis

EMMS

$25.84

+$0.24

NY Times

NYT

$48.60

+$0.01

Entravision

EVC

$10.47

+$0.20

Paxson

PAX

$3.93

-$0.01

Fox

FOX

$29.94

-$0.48

Sinclair

SBGI

$13.65

+$0.12

Fisher

FSCI

$49.85

-$0.25

Saga Commun.

SGA

$18.20

+$0.13

Granite

GBTVK

$1.85

unch

Scripps

SSP

$95.11

+$0.74

Gannett

GCI

$85.71

-$1.23

Time Warner

TWX

$17.57

-$0.18

Gen. Electric

GE

$33.63

-$0.40

Tribune

TRB

$51.19

+$0.02

Gray

GTN

$14.41

-$0.26

LIN TV

TVL

$24.36

-$0.24

Gray, C1. A

GTNa

$14.44

-$0.20

Univision

UVN

$35.37

-$1.64

Hearst-Argyle

HTV

$27.33

+$0.17

Viacom, Cl. A

VIA

$40.57

-$0.31

Jeff-Pilot

JP

$51.34

+$0.24

Viacom, Cl. B

VIAb

$40.30

-$0.27

Journal Comm.

JRN

$19.22

+$0.22

Wash. Post

WPO

$845.51

+$11.01

Liberty Corp

LC

$47.05

-$0.50

Young

YBTVA

$20.54

+$0.22

McGraw-Hill

MHP

$75.02

-$0.62

- - - -

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Upped & Tapped

DeTillio returns
to Tampa
Frank DeTillio has been named VP/GM of Viacom's WTOG-TV (Ch. 44, UPN) Tampa-St. Petersburg, succeeding the retiring Mike Conway. He had most recently run Allbritton's ABC station in Birmingham, AL, but the new job is a return to Tampa for DeTillio, who was VP/GM at Media general's WFLA-TV (Ch. 8, NBC) for several years.

LaSpina heads
to Albany
Young Broadcasting announced that Rene LaSpina is the new President and GM of its WTEN-TV (Ch. 10, ABC) Albany, NY. She had been VP/GM of Viacom's WCCO-TV (Ch. 4, CBS) Minneapolis-St. Paul, MN.


TVBR Radar 2004
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TVBR Media Alert
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Is likely bad news in a plain brown wrapper. As many in the professional world learned from the Slammer worm, which hit in January last year and infected every single public e-mail address in the world. Known commonly as the MyDoom worm, or the W32.Novarg.A@mm mass-mailing worm.
RBR/TVBR Recommendation: Click and Print these security tips:
01/30/04 TVBR #20

Network, group execs were not invited to House session
Three specific entities were mentioned at least once during the session: NBC Television Network, Fox Television Network and Clear Channel. Many members of the House of Representatives took the occasion of the House Energy and Commerce Committee's Subcommittee on Telecommunications and the Internet session on broadcast indecency held 1/28/04 to express their dismay that nobody from the offending broadcast companies was present to explain themselves. There was, of course, a good reason for their absence. None were invited. TVBR observation: The subcommittee should have been reading TVBR - - then they might have gotten the right people into the Rayburn Building's Green Room. Should be yet another standing-room only day in the press gallery. Damn! (Can we say that?) :
01/30/04 TVBR #20

San Antonio hearing wild affair
In a sometimes rowdy four hour hearing that had to be gaveled back into order several times, the five Federal Communications Commissioners got an earful about issues ranging from sex and violence on television to the perils of corporate ownership of radio and television stations. At one point Commissioner Jonathan S. Adelstein asked Steve Giust, General Manager of the Univision about the portrayal of women in the noxiously risqué "novellas," or Mexican soap operas. "I think we have some very lovely women on our TV station," Boos and catcalls from the crowd. RBR observation: Ole! Maybe some kind of FINE should have been laid down at this meeting. Next time invite Bubba ‘The Love Sponge’. 01/28/04 TVBR #19

Roy Disney takes anti-Eisner fight
to shareholders
Ex-Disney directors Roy E. Disney and Stan Gold are turning up the heat on Disney CEO Michael Eisner. They're asking Disney shareholders to vote "no" on re-electing Eisner and three other directors - - former Sen. George Mitchell, Judith Estrin and John Bryson. TVBR observation: The small guys roll with the punches but the big guys throw them. The real fight bell is set to ring on March 3rd and in the city of 'Rocky Balboa' - Philadelphia. 01/28/04 TVBR #19

Citadel's stock plunges
on Ted Forstmann sale
Less than 6 months after selling its IPO on Wall Street, Citadel is back with an add-on stock offering. The planned Forstmann Little stock sale clearly unnerved investors, who may well be wondering why Ted Forstmann is moving so quickly to cash out a big chunk of his investment in Citadel. The stock was only up 6.8% from last summer's IPO at $19 per share prior to the SEC filing for the 28M-share sale. News of the filing sent the stock price down yesterday, back below the IPO price. With its sale of nearly 20M shares, Forstmann Little will cut its voting stake in Citadel from 78% to around 58%. RBR observation: What's the rush? Does Ted know something we all don’t? Keep one eye on this puppy. 01/28/04 RBR #19

San Francisco KRON-TV
fined for indecency
On the eve of Capitol Hill hearings on broadcast indecency, the FCC has announced a proposed fine of $27,500 for Young Broadcasting's KRON-TV San Francisco. The station aired a fleeting glimpse of male genitalia during a "KRON 4 Morning News" segment with the stars of the traveling stage show "Puppetry of the Penis." Editor's Note: Ok, fine…fine…fine…
01/28/04 TVBR #18

Clear Channel calls for
clear indecency standards
On the same day, see below, it was hit with a $755K fine mainly for broadcasting indecent material, called for the FCC and the industry to come up with reasonable and clear indecency standards. TVBR observation: Amen, brother!
01/28/04 TVBR #18

FCC puts the $755K squeeze on Clear Channel’s Bubba ‘The Love Sponge’
It seems Bubba just chews through any rope leash and for it another blockbuster indecency action, the FCC has levied a total of $755K in fines on Clear Channel Communications for multiple indecency infractions emanating from its Bubba the Love Sponge show. Four Florida stations and 26 counts were cited in an assessment which also included $40K for public file problems.
Editor's Note: No wonder Clear Channel and all their resources are crying for some set standard by FCC. Standard is needed but also put a chain leash on him. Or do as Infinity did with O&A! Next! 01/28/04 RBR #18

Happened on Hollander’s Watch
Andy Schuon pushed Out at Infinity

Some would say Schuon was ultimately responsible for the failings of WNEW-FM New York, post-Opie and Anthony. But he can't take all the blame. There were many involved and it seemed like a great idea. We had done a feature on it, in fact. However, WNEW is still a fish flopping out of water, with its latest incarnation being yet another attempt to grab share from WLTW-FM and WPLJ-FM in that market.
Editor's Note: We think it should re-launch as an Indie Rock hybrid for "Hip New Yorkers," but that's a different story. Or, go All Christmas.. Now! RBR observation: The Sykes-Hollander relationship bears some resemblance to the Karmazin-Sumner Redstone dynamic. It's not nearly as complicated. 01/28/04 RBR #18

Strife hits NAB board
Chairman Phil Lombardo ruffled some feathers putting him at odds with some Radio Board members and straining relations with NAB President/CEO Eddie Fritts. Lombardo pushed through approval of a special payment of $400,000 to cover legal expenses of the Network Affiliated Stations Alliance in fighting against an increase in the 35% national TV cap. Editor's Note: Good for Lombardo - Next time, and there will be a next time, both boards best get on one Group Fly-In page. Like now! 01/27/04 TVBR #17

Wonder Boy - Bob Pittman
building own media empire
It appears Pittman is out to buy much more and build a sizeable media company, this time with himself at the top. The structure of Pilot is something to behold. Here's the flow chart of ownership interests from the FCC filing to acquire WEYI-TV. Editor's Note: We called and we are waiting for both Bob's to call back. Publisher Jim Carnegie remembers Pittman and once was known not as The Wonder Boy but The Hippie from Mississippi when at WPEZ, Pittsburgh when Carnegie was PD of KQV. 01/27/04 TVBR #17



Contacts
MANAGEMENT
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JCarnegie@rbr.com
VP/GM, Assoc. Publisher, Ken Lee
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VP, Cathy Carnegie
CJCarnegie@rbr.com
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AMcLynn@rbr.com

EDITORIAL
Executive Editor, Jack Messmer
JMessmer@rbr.com
Managing Editor, Dave Seyler
DSeyler@rbr.com
Senior Editor, Carl Marcucci
CMarcucci@rbr.com
Reporter, Bob DeCarlo
BDeCarlo@rbr.com

SALES
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