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Volume 24, Issue 212, Jim Carnegie, Editor & Publisher
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Tuesday Morning October 30th, 2007
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TV News ®
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 FiOS added 200K subs in Q3
Verizon reports that it added 202,000 net new subscribers to its FiOS TV digital competitor to local cable systems in Q3, bringing the total to 717,000. Verizon continues to concentrate on the TV fiber-optic build-out, but it is expensive. As the company deploys "fiber to the home" in neighborhood, it is paying over 800 bucks per home to hook up the new service - and that doesn't include marketing to get those subscribers in the first place. To look at Verizon's quarterly earnings report, you might almost forget that it is still primarily a wired telephone company. All of the "highlights" deal with the wireless telephone business and the new "wired" businesses of FiOS, both video and broadband Internet. Those services are rapidly adding subscribers, while the twisted copper pair wired telephone business continues to lose customers. The business mix is changing and Verizon is trying to stay ahead of the curve by investing where there is growth. For Q3, total revenues rose 5.8% to 23.8 billion, while operating income jumped 19% to 4.2 billion. Earnings per share were 44 cents, vs. 53 cents a year ago, before discontinued operations.
TVBR observation: FiOS is fast approaching the one million subscriber level, which isn't much compared to the big cable MSOs, but Verizon is clearly committed to spending big to become a player in video and broadband. Its willingness to sign upfront deals for cash retransmission payments has also endeared it to broadcasters - and helped put pressure on the MSOs to do likewise. TVBR's Bradenton, FL bureau has lately been watching the FiOS build-out up close and personal. Crews have been all over the neighborhood for months now, putting conduit in the ground and then running fiber through the conduit. Now we see tents along the street with work tables inside where technicians sit for hours on end wiring together the fiber connectors. And, yes, we've gotten quite a few mailings - not just from FiOS, but from the local cable company defending its turf. We've even gotten a personal visit from the cable company - just asking if we are satisfied with our service and if there is anything else they could do for us. Too bad we didn't think to ask if they would weed the flower bed.
 Senators request new
hearing on net neutrality
Byron Dorgan (D-ND) and Olympia Snowe (R-ME) have reached across the aisle in the past to promote the concept of network neutrality. Concerns about cable and telephone companies playing an active gatekeeper role when providing internet access have prompted the duo to call for a new hearing on the topic. "Over the past several months there have been incidents that have raised serious concerns about the phone and cable companies' power to discriminate against content," they wrote in a letter to Commerce Committee chair Daniel Inouye (D-HI) (both are members of the committee). "Just recently, Verizon Wireless arbitrarily chose to block a series of text messages on the grounds that the subject matter was too controversial." They credited Verizon for reversing this decision, then added, "Then came news that AT&T reserves the right in its Terms of Service to discontinue the service of customers that criticize the company. And just last week, we saw reports of Comcast interfering with the popular file-sharing service BitTorrent." Noting that providers have provided assurances that they would not discriminate based on content, they concluded, "These recent events suggest that response is well short of being sufficient and this Congress should consider adopting targeted regulations to protect consumers and ensure an open and vibrant communications platform." They want a full committee hearing.
TVBR observation: Put us down for net neutrality. You are reading this right now because you - and TVBR - both have access to a free and open internet. We occasionally are critical of companies that may be carrying us into the homes and businesses of our subscribers. The notion that this relationship between the press and citizens can be disrupted by the carrier runs counter to the founding principles of the United States and absolutely must be protected.
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Edwards attacks pharma ads
Presidential candidate John Edwards (D-NC) believes that advertising is one of the reasons the cost of pharmaceuticals is rising so quickly, and is calling for a two-year moratorium on marketing after a new prescription drug is introduced to the market. A similar proposal was excised from a bill earlier this year. Edwards says spending on these ads has risen from about 1B to 4B in the ten years since advertising rules have been relaxed, and charges that the people paying the freight are the end users. Edwards claims that twice as much is now spent on marketing than is on research and development; that the drugs with the most profit potential are the ones that get a big push; that in some cases the drugs have not been proven to be safe; and that the ads are rarely reviewed before airing by the FDA. In addition to a two year moratorium on advertising, he wants all initial ad flights to be pre-approved by the FDA, and he wants to impose serious penalties for drug companies found to have stretched the truth. He said doctors, not ads, should be the major influence in what drugs are used by American consumers.
TVBR observation: The bill passed by Congress this year did away with the proposed three year moratorium written into an early draft of the Federal Food, Drug and Cosmetic Act, courtesy of bipartisan team Edolphus Towns (D-NY) and Steve Buyer (R-IN), who introduced a bill passed by a healthy 23-9 margin. In part, the reason is that in many cases, ads for a new drug can make consumers aware of symptoms they would otherwise fail to seek treatment for, providing an educational benefit. The bill did provide for punishment if a company goes over the line with its claims or promotes a product that turns out to be unsafe. Perhaps if we saw more remedies for serious conditions being marketed, rather than elective preparations, calls such as Edwards' would be toned down. In the end, it reminds us of the wisdom of former NAB honcho Eddie Fritts, who always says that in Washington there are no permanent losses and no permanent victories. Amen.
 Former broadcast
chopper operator sues
Florida-based Pompano Helicopters has sued Westwood One for 362 million bucks, charging that WW1 and its Metro Networks subsidiary conspired to drive the chopper company out of business and take over its clients. Pompano alleges that WW1 spread rumors that it was an unsafe operator, leading to cancellation of many of its contracts to supply helicopters for broadcast stations. A spokesman for WW1 told RBR the company had no comment on the lawsuit
For years, Pompano Helicopters provided choppers and pilots to a number or radio and TV stations for traffic and news reporting. In its heyday, prior to a sharp decline beginning in 2002, the company operated 25 aircraft for stations in the Miami, West Palm Beach, Houston, Baltimore and Atlanta markets. But the lawsuit filed in Broward County, FL claims that "its once thriving business was destroyed by Westwood's spreading false and damaging information as part of a planned and orchestrated campaign of tortuous interference with contracts that Pompano ultimately lost to Westwood's subsidiary Metro." According to the lawsuit, Westwood employees spread false rumors that Pompano was an "unsafe operator" of aircraft and eventually "someone would get killed" due to faulty maintenance. Pompano claims that Westwood also usurped some of its key personnel, became privy to its confidential business plan, and scuttled a merger with another company that would have made the combined company a "formidable competitor" to Metro Networks. Instead, Pompano Helicopters today has no aircraft, but still exists as a corporate entity for its lawsuit seeking damages from Westwood One and Metro.
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Ad Business Report TM
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LG launches campaign for digital appliance division
"Upgrade" is the central theme of LG Electronics' integrated campaign launched this week via Young & Rubicam's BrandBuzz. Designed to ignite the desire for appliances featuring the latest style and technology, the two-month 20 million initial phase presents a humorous consumer fantasies demonstrating just how far individuals might dream of going in order to rid themselves of old home appliances and upgrade to a premium LG product. In one commercial, a woman, dreaming about what she can do to get a new LG SteamWasher, shoves her old washing machine off a diving board into the deep end of a pool. Produced in HD, the campaign made its network debut yesterday, on ABC's "Dancing with the Stars," and will roll out over the next month to other network and cable nets. Related online, PR and other communications programs also are being launched. Similar to the TV spots, the companion print effort is launching simultaneously in consumer shelter, lifestyle, fashion and epicurean-focused mags.
Toyota joins Nature as corporate sponsor
 Toyota has joined Nature, the PBS natural history series produced by Thirteen/WNET New York, as a corporate sponsor for the 2007-08 season. Toyota's commitment to Nature begins November 11 with the premiere of The Cheetah Orphans, a veteran filmmaker's journey preparing two cubs to return to the wild. Toyota's sponsorship will also include Nature's Family Day Zoo Tour, an exploration of the animal kingdom and natural habitats stopping at zoos in 10 cities nationwide beginning in 2008.
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| Media Business Report TM |
Citi Debuts campaign for Citi Cards
Citi announced the launch of its new national campaign for Citi Cards, the world's largest provider of credit cards. The first television commercial of the US campaign aired 10/28. The national campaign is an extension of Citi's global branding campaign "Let's Get it Done" that launched in May. Both TV and print ads illustrate how Citi Cards enable people to create the stories of their lives by providing the financial power to fund life experiences. TV will run on network and cable programs such as NFL, ABC College Football, ESPN, Grey's Anatomy, CSI, Heroes and Dancing with the Stars. Print will run in ESPN the Magazine, Sports Illustrated, People, Time, US News, Vogue and In Style. Publicis New York developed.
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| Media Markets & Money TM |
MG seeks strength and balance
And Media General is going to try to achieve these noble characteristics via strategic divestiture. "The decision to explore the potential sale of five stations in a result of our ongoing analysis of our portfolio," said President/CEO Marshall N. Morton. "Any sales would enable Media General to use the proceeds to reduce debt and strengthen our balance sheet."
Here's what's for sale, either as a group or piece by piece:
* WCWJ-TV Jacksonville FL (CW)
* WTVQ-TV Lexington KY (ABC)
* WMBB-TV Panama City FL (ABC)
* KALB-TV/NALB Alexandria LA (NBC/CBS)
* WNEG-TV Toccoa GA (Indy, satellite of WSPA-TV Spartanburg SC)
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| Washington Business Report TM |
 Local watchdogs
attracted to localism session
A heaping healthy portion of the watchdog community is located in Washington DC, just like the FCC, and they are planning to have a presence at FCC headquarters Wednesday 10/31/07 when the FCC combines its October Open Meeting with its final localism forum. The FCC says the session will feature a presentation from the Media Bureau, "summarizing the record the Commission has received on the topic of localism." There will also be a panel, including several of the protesting watchdogs. The participants include Marcellus Alexander, NAB/NABEF; Mark Cooper, Consumer Federation of America; Bob Edwards, AFTRA/XM Satellite Radio (formerly with NPR); Kim Gandy, President, National Organization for Women; Jim Goodmon, Capital Broadcasting; Wade Henderson, Leadership Conference on Civil Rights; Jesse Jackson Sr., Rainbow PUSH Coalition; Andrew Jay Schwartzman, Media Access Project; Christopher Sterling, George Washington University; and S. Derek Turner, Free Press. The moderator will be Louis Sigalos, Chief of the Consumer Affairs and Outreach Division, Consumer Governmental Affairs Bureau, FCC. The panel session will be followed by an opportunity for public comment.
The watchdogs said they will attempt to rally the public outside FCC HQ. They complained that the latest session allowed little time and is not spacious enough to allow the public to properly participate. Signing onto the release announcing plans to rally were Jackson; Gandy; Brent Wilkes of League of United Latin America Citizens; Josh Silver of Free Press; Gene Kimmelman of Consumers Union; Schwartzman; Bob Edgar of Common Cause; Cheryl Leanza of United Church of Christ; and Amina Fazullah of U.S. Public Interest Research Group. Meanwhile, across the mall, the House Commerce Committee will be looking into the DTV transition again. The panel there is supposed to be made up of industry stakeholders. So far there has been no word as to who exactly will testify.
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| Cable Business Report TM |
ValueVision ousts CEO
ValueVision Media, which operates the ShopNBC channel, announced that CEO William Lansing has exited at the request of the board of directors. The company also reduced its financial guidance for the balance of the year. The Spencer Stuart executive search firm has been retained to find a new leader for the company. For now, Chairman of the Board John Buck will act as interim CEO. "The Board is committed fully to renewing the business focus at the company. I also want to express the Board's strong support for the company's talented and dedicated employees, who are the lifeblood of this organization. ValueVision thrives on bringing fresh, unique and high-quality products to its loyal customers. We look to our employees to continue this strong focus on our customers, while improving our financial performance," Buck said in announcing the change at the top. He also announced that ValueVision now expects full-year revenue growth to be only in the low single digits, down from the previous guidance of 6-8%. EBITDA is expected to be 5-10 million bucks, not the previous forecast of 15-20 million. "We are experiencing a challenging retail environment," said Buck.
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| Entertainment Business Report TM |
CBS sets up criminal cross-pollination
 In a bid to pick up some extra viewers in the November Sweeps, CBS has scheduled the first-ever crossover between its hit crime shows "CSI" and "Without a Trace." On Thursday, November 8th, the double-header begins at 8:00 pm ET/PT. The CSI team investigates the death of a boy in Las Vegas who might be a kidnap victim missing from New York six years ago. Anthony LaPaglia from "Without a Trace" guest stars in the first part of the two-part crossover episode. Immediately following at 9:00 pm on "Without a Trace," the FBI and CSI teams race to analyze the killing spree of a mass murderer they are tracking in the conclusion.
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| Internet Business Report TM |
News Corp., NBCU launch Hulu test
NBCU and Fox are set to beta launch Hulu, their online video site that hosts their own, as well as other programming from partner entertainment companies including Sony and MGM. Hulu plans a major official premiere version in a few months. The site offers free, ad-supported viewing of full-length films and TV episodes. Hulu will also provide tools that let users embed full episodes on their own websites, personal pages, blogs, etc. Distribution will also be via partner sites including AOL, MSN, MySpace, Yahoo and Comcast. Programming on the beta site currently includes Flipping Out, Psych, The Simpsons, King of the Hill, Journeyman, Damages, LIFE, Picket Fences, Rob & Amber: Against the Odds, Andy Barker, PI, The Pretender, Vanished, Kitchen Nightmare, Monk, 30 Rock, The Loop, 24, Back to You, Family Guy, Kitchen Confidential, Dr. 90210, Inside the Actor's Studio, It's Always Sunny in Philadelphia, Are You Smarter Than a 5th Grader?, Kitchen Nightmare, Battlestar Galactica, 'til Death, American Dad!, K-Ville, Drive, Bones, Chuck, The Riches, Late Night with Conan O'Brien and Friday Night Lights. Hulu will also offer older shows such as Lou Grant and Lost in Space, according to reports.
NBCU chooses SinglePoint for mobile media campaigns
NBC Universal has selected SinglePoint to launch one of the biggest company-wide mobile marketing initiatives ever conducted by a media company. SinglePoint will execute campaigns such as mobile voting, sweepstakes, contests, "breaking news" text alerts, and the delivery of personalization content across NBCU properties, claiming the largest Interactive TV deal of its kind in the mobile marketing space. SinglePoint will be developing cross carrier iTV messaging events for NBC, CNBC, MSNBC, Bravo, Telemundo, USA, NBC Sports, NBC News, iVillage and venue-related activities for Universal theme parks.
AWRT to partner with Verizon Foundation
for Internet Safety campaign
 American Women in Radio and Television (AWRT) announced they will be partnering with the Verizon Foundation in a campaign to promote Internet safety. AWRT and Verizon will be hosting a tele-seminar on 11/7 entitled Listen In Before You Log On. It will provide advice on how to protect yourself and your system from viable Internet threats.
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| Ratings & Research |
Big numbers, but now it's over
Fox scored big on Sunday with Game 4 of the World Series. Unfortunately for the network, the Boston Red Sox swept the Colorado Rockies, so Game 4 was the end of the series. Fox scored a 10.9 rating and 17 share in Households and 6.1 for Adults 18-49 in Sunday primetime, leaving ABC in second place for its usual strong day.
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| Stock Talk |
Very scary: Waiting for the Halloween Fed
Yes, Halloween this year is the "Night of the Living Fed," with the next decision on a rate cut or not coming Wednesday. Will it be a trick or a treat for Wall Street? Investors were optimistic Monday that the Fed members will be in a cutting mood. The Dow Industrials rose 64 points, or 0.5%, to 13,870.
TV stocks, however, were mostly lower. Saga had the worst day, down 4.6%. Entravision was down 2.6%. Nexstar fell 2.4% and Sinclair was down 2.3%.
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| Stocks |
Here's how stocks fared on Monday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Acme
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ACME
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3.78
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unch
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Lincoln Natl.
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LNC
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66.87
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+0.29
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Belo
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BLC
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18.57
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+0.02
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LIN TV
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TVL
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14.21
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-0.10
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| CBS CI. B |
CBS |
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28.88
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-0.12
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McGraw-Hill
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MHP
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49.68
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-0.07
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| CBS CI. A |
CBSa |
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28.84
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-0.17
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Media General
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MEG
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28.64
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+0.18
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Clear Channel
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CCU
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37.81
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-0.04
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Meredith
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MDP
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61.42
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-0.01
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Disney
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DIS
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34.68
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+0.30
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News Corp.
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NWS
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23.00
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unch
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Emmis
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EMMS
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5.13
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-0.10
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Nexstar
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NXST
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9.75
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-0.24
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Entravision
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EVC
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9.11
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-0.24
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Ion Media
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ION
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1.31
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-0.02
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| Equity Media |
EMDA |
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2.80 |
-0.03 |
Saga Commun.
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SGA
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7.11
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-0.34
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Fisher
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FSCI
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48.89
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-0.87
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SBS
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SBSA
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2.65
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+0.03
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Gannett
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GCI
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41.81
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-0.12
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Scripps
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SSP
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43.80
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-0.12
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Gen. Electric
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GE
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40.56
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+0.18
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Sinclair
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SBGI
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11.68
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-0.28
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| Google |
GOOG |
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679.23
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+4.63
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SWMX
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SWMX
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0.02
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unch
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Gray
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GTN
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9.75
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+0.17
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Time Warner
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TWX
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18.10
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-0.25
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Gray, C1. A
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GTNa
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9.75
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unch
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Tribune
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TRB
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30.08
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+0.43
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Hearst-Argyle
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HTV
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23.07
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+0.33
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Wash. Post
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WPO
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818.60
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+17.09
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Journal Comm.
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JRN
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8.92
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-0.12
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Young
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YBTVA
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2.34
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+0.01
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Bounceback
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 We want to
hear from you.
This is your column, so send your comments and
a photo to tvnews@rbr.com
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Below the Fold
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Cable Business Report
ValueVision ousts CEO
At the request of the board of directors ValueVision operates the ShopNBC channel...
Ad Business Report
LG launches campaign
For digital appliance division designed to ignite the desire for the latest style & technology...
Media, Markets & Money
MG seeks strength & balance
Going to try to achieve these noble characteristics via strategic divestiture...
Internet Business Report
News Corp., NBCU launch Hulu test
Set to beta launch Hulu, their online video site that hosts their own...
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Stations for Sale
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 Market your Stations For Sale
in our daily epapers.
Contact
June Barnes
jbarnes@rbr.com
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TV Media Moves
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 More duties for James
Bonneville International has promoted Greg James to Vice President and General Manager of KSL-TV (Ch. 5, NBC) Salt Lake City and the Bonneville Salt Lake Internet properties. James had been KSL station manager.
 Parsons signs on
CaribeVisión has appointed longtime Hispanic media executive Don Parsons as its first President of Sales. Parsons previously held executive positions with Telemundo, Univision, Liberman Broadcasting and Petry Latino/Netspan.
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More News Headlines
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Watching campaign coverage
The Project for Excellence in Journalism, along with the Joan Shorenstein Center on the Press, Politics and Public Policy and the Pew Research Center for the People and the Press say that press coverage of the current presidential campaign has it pretty much backwards. People want more coverage of where candidates stand in the issues, more debate coverage, more info on candidate backgrounds and experience and their sources of cash; and less info about how they're doing in the latest polls. Instead, though, they're getting a diet made of 63% of stories on campaign tactics and poll results. Personal background info (17%) and policy positions (16%) lag far behind. Coverage has been relatively even-handed, however, with a few exceptions. Democrats have received favorable coverage 35% of the time, negative 36% and neutral 39%. Republican have been favorable 26%, negative 35% and neutral 39%. But take out positive stories about Barack Obama (D-IL) and negative stories about John McCain (R-AZ) and the coverage is said to be about even across both parties. Hillary Clinton (D-NY) is said to lead the pack in coverage, but this isn't necessarily a good thing. She has been pounded relentlessly by conservative radio hosts, pushing her to the top of the total coverage heap with 17%. Obama is next with 14%, followed by Rudy Giuliani (R-NY) at 9%, McCain at 7% and Mitt Romney (R-MA) at 5%.
Porter Wagoner
dead at 80
Country music legend Porter Wagoner has died at age 80, after recently being diagnosed with lung cancer. Wagoner was a long time fixture on radio, with more than 80 chart singles, and hosted "The Porter Wagoner Show" on TV for 21 years. Along the way, Wagoner also launched the career of Dolly Parton. He never retired, having released his final album in June.
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TVBR Radar 2007
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Television News you won't read any where else. TVBR--First, Accurate, and Independently Owned.
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Publisher Perspective
At the stroke of midnight
Right now, TVBR goes completely electronic. We cease printing SmartMedia mag but the content goes electronic. We have stated numerous times, "Technology Waits for No One." LPM and PPM are rolling, gathering real time data. Therefore, I am not waiting for the New Year's baby to arrive to bring forth our electronic improvements. This is the 2nd time in 25 years I have had to make this hard decision. The first time was 07/08/02 RBR Epaper #1 and my radio friends and colleagues thought I was friggen nuts. When we wish all a Happy New Year 2008, RBR/TVBR will turn 25 years young, our Silver Anniversary. (Reason and looking ahead worth a read see TVBR)
10/229/07 TVBR #211
TVBR News Analysis
The battle lines have been drawn for the latest attempt by the FCC to reform its media ownership limits. Big financial interests want more deregulation, particularly in the biggest markets. Politicians from both parties have staked out the position that all media consolidation is bad. Both sides occasionally pay lip service to considering "the public interest," but, in fact, neither really gives a damn. If they were really concerned about what would be good for the public they would look at the real world and try to fix what is broken - or in the process of breaking. Everyone knows that daily newspapers are in a world of hurt. New Internet challengers are taking big bites out of what used to be their cash cow. There is more and TVBR offers to the FCC 3 dereg ideas that would really serve the public interest.
10/229/07 TVBR #211
Copps presses for News Corp/
Dow Jones hearing
Commissioner Michael Copps is still upset about the pending 5.6 billion bucks acquisition of Dow Jones & Co. by News Corporation and is insisting that the FCC should do something about it. In a letter to Chairman Kevin Martin, Copps calls for the Commission to open an inquiry into whether News Corporation should be allowed to own one of the big four TV networks and two of the nation's largest newspapers.
TVBR observation: Someone has to be Stuck on Stupid. This is absolutely idiotic! Suppose the FCC held the inquiry that Copps wants. What then? No FCC approval is needed for the Dow Jones acquisition to close. It has no authority over whether News Corporation, Google or the Government of North Korea buys Dow Jones & Co. Would the Commissioners be so ridiculous as to hold a non-binding straw poll on whether or not they want the deal to take place? It would have no more legal effect than polling the staff of TVBR.
10/26/07 TVBR #210
Another shareholder
pressuring Emmis
This time it is Arnhold and S. Bleichroeder Advisers LLC calling for the creation of a special committee of independent directors to work with CEO Jeff Smulyan on a "value-creating transaction."
RBR observation: The question is, what could Smulyan offer now? Given the company's ongoing problems, it won't be the 15.25 per share that he offered last year, only to have it rejected by the board - and certainly not the 16.80 that was discussed during the failed negotiations. It sounds like Arnhold and S. Bleichroeder Advisers are ready to take about anything that's a significant premium to where the stock price has been lately, but would other shareholders be as willing to take what they can salvage and run away licking their wounds? (Read the details and the Letter in this special page report in RBR)
10/26/07 RBR #210
Localism on the Halloween docket
The FCC's October Open Meeting will include the final localism forum in the set begun way back under former Chairman Michael Powell. It will follow four other items in a meeting scheduled to run from 9AM until 2PM at FCC headquarters. And the announcement drew immediate fire both within and from outside the Commission.
10/26/07 TVBR #210
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TVBR Classifieds
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New Listing
Ad Sales Rep
Imagine Media Ad Sales Without - Long Commutes, 8:30 Sales Meetings, Bonus Spots, or selling Print in an Electronic medium. More Reasons to consider Selling Advertising with TVBR. Honestly, we are so busy we can not service all the accounts. Can you help us? Our Budgets Are Realistic. Compensation plan is good. If you are good, our Compensation plan is Great. If you are Great, our Compensation plan is Unbelievable! TVBR - Where Making Money is Fun - One click at a time. In confidence, contact Publisher Jim Carnegie at publisher@rbr.com.
New Listing
Associate Web Editor
Ideal candidate will work with our News Team developing / delivering quality web & e-paper content on a daily basis requiring a tremendous amount of creativity, flexibility and an ability to work on a deadline. Skills: Intermediate understanding of how websites, web pages are constructed and ability to write "News" ready copy. Plus, important, must be a strong communicator both Verbal / Written and able to manage multiple tasks. At a dead end job and want a media career...
See Radio Careers
General Sales Manager
KSBI-TV, Oklahoma statewide independent network, is seeking an experienced GSM. Candidate with proven track record. Key is to have knowledge is sales strategy with contacts in national and regional business. Bachelor's degree in Marketing, Management or Business preferred. Enjoy making a great income. Opportunities are tremendous. See TV Careers
Additional Positions
Available in TVBR Classifieds.
See TV Careers.
Hard finding that key person
to fill the important position at your organization? TVBR Classifieds, Results with Service. Contact April McLynn at classifieds@rbr.com
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