Welcome to TVBR's Daily Epaper
Volume 21, Issue 224, Jim Carnegie, Editor & Publisher
Tuesday Morning November 16th, 2004

TV News®

Viacom outbid
for MarketWatch

Viacom may have been in the catbird seat in the bidding for MarketWatch Inc., since it already owned 22% of the company (11/5/04 RBR Daily Epaper #217), but our previous story was also correct that Dow Jones & Company was among the bidders - - and it is the winner at 18 bucks a share, or 519 million, including debt assumption. Dow Jones, whose Wall Street Journal website is one of the most successful paid sites on the Internet, says it will keep MarketWatch.com (sans CBS in its name) as a free site. Both companies are involved in providing financial programming for radio and television. In the US, Dow Jones provides news content to CNBC and radio stations. It is the co-owner with NBC Universal of CNBC's operation in Asia and Europe. MarketWatch has a US radio network, a weekly syndicated TV program and provides news content to CBS Television and Radio.

Adelstein buzz continues, but no nomination
The Senate Commerce Committee has set aside Thursday morning, 11/18/04 to consider varies and sundry nominations for various and sundry offices, many of which are expected to be judicial in nature. There has been considerable talk that FCC Commissioner
Jonathan Adelstein will be among them, tossed in as a deal sweetener to get the judges past Senate Democrats. So far, though, the Committee has not heard anything from the White House.

NYT promotes Private Ryan
The New York Times invested some of its Editorial Page ink on the "Saving Private Ryan" incident, essentially scolding the FCC for leaving broadcasters scratching their heads wondering if context really does matter in questions of indecency, after the Commissions "...blue nose was bent out of shape by the flash of Janet Jackson's breast during the last Super Bowl, and later, by
Bono's casual airing of an obscenity assuredly in use among soldiers in Iraq." [Ed. note: The Bono incident actually took place almost a year before the Jackson incident.] "Pressure groups and organized campaigns complaining in the name of public morality have been a constant in the nation's political culture since the witch trials of Salem," wrote NYT. "Government officials should resist the temptation of joining the fray on either side. Some stations asked the FCC to formally approve the airing of 'Saving Private Ryan,' and the agency properly resisted becoming an overt censor. Now the FCC should move the standard back to where it was - - a position of common sense."

TVBR observation: NYT's advice notwithstanding, it must be noted that common sense is a commodity which is often in short supply in Washington. Now if you're looking for some hot air.....


Different bean counters, different bean count
If you want proof that accounting can sometimes be more art than science, look no further than how Citadel Broadcasting and Interep have reported the financial settlement of their litigation over Citadel breaking its national rep contract with Interep to jump to rival Katz. First Citadel reported that it had recorded a 16.4 million non-cash charge in Q3 for the settlement (11/5/04 RBR Daily Epaper #217). But when Interep released its Q3 numbers yesterday, it reported that contract termination revenue in Q3 was 18.8 million, virtually all of it from the Citadel settlement (vs. only 42K a year earlier). We are assured that this is the end of the matter and that no future payments are required. Interep had originally claimed it was owed 65 million and Citadel had claimed it had just cause to exit the contract and didn't owe the rep firm a penny.

Where are multiples these days? Still high - - Part 3
With almost no deal flow in the top markets, it's hard to say what multiples are for cash flowing stations in really large markets - - except that they're high. Broker
Elliot Evers of Media Venture Partners tells us that most big radio transactions lately have been for sticks, with the buyers having plans that aren't dependent on cash-flow multiples.
| More... |

CBS, Infinity issue annual
social responsibility reports

For the second year in a row, CBS has cataloged efforts by its television network, programming arms and local television stations in a 94-page Social Responsibility Report. The second edition spans the previous calendar year, encompassing activities of all divisions of CBS, including CBS Entertainment, CBS News, CBS Sports, the Viacom Television Stations Group and UPN. Additionally, for the first time, Infinity Broadcasting has issued a Social Responsibility Report highlighting its efforts in community outreach, programming and commitment to local artists. Included in the reports are activities in such areas as:
| More... |


Adbiz©

UK: junk food TV ads to be banned
The London Times says UK ministers are about to announce tough curbs on TV ads for "junk food" up to the 9pm hour in an attempt to combat an epidemic of obesity among children.
John Reid, the health secretary, will this week warn the food industry that he will bring in legislation banning junk food adverts unless firms agree to voluntary restrictions by 2007. The crackdown for products high in fat, salt or sugar is far wider than anticipated by the industry, which believed restrictions would target only afternoon children's television. However, Reid will argue that research by Ofcom, the broadcasting regulator, shows more than 70% of viewing by children aged four to 15 is between 6pm and 9pm. His approach - to be outlined in a white paper today- will hit not only popular products such as Walker's crisps, Mars Bars and McDonald's hamburgers, but could also affect seemingly healthier items such as cornflakes, fish fingers and even yogurts. The government there intends to ask Ofcom, which regulates all commercial television, radio, satellite and cable broadcasters, to consult with the food industry on how they can have "a positive impact on children's food choices". The print media will be consulted but not included in the curbs at this stage. The Food Standards Agency has drawn up guidelines defining what it considers unhealthy levels of fat, sugar and salt in products. For fat, it is any product with 20g per 100g; for sugar 10g; and for salt 0.5g. Products that could be targeted include Kellogg's corn flakes, which can have up to 1.19g of salt per serving; and Birds Eye fish fingers, which have up to 0.75g of salt per serving; according to statistics. The curbs will target products rather than characters such as Ronald McDonald and Colonel Sanders. Broadcasters will also be encouraged to provide healthy living programs such as ITV's Britain on the Move.

CNN.com tries humor in new ads
The Wall Street Journal reports
Wolf Blitzer and some of his fellow CNN newscasters are about to find themselves in the unlikely role of humorous pitchmen as they lend a hand to a promotional effort for CNN.com. Starting yesterday, viewers of Turner cable channels will see ads for CNN.com featuring on-air personalities such as Anderson Cooper, Lou Dobbs and Paula Zahn. The ads will also run on local cable and broadcast television, and in December in Regal Entertainment Group's Regal Cinemas. In one spot, created with independent New York agency Hungry Man Productions, intrepid foreign correspondent Christiane Amanpour lectures an office worker on the correct way to pronounce Iran and Iraq -- with an "ee" sound, not an "eye." "No, it's 'Ee-ran'," she says. "It's just one of my bugaboos." The ads echo the popular promos for "SportsCenter" on Walt Disney's ESPN that show sports-world figures interacting with sportscasters at the ESPN corporate campus.

Studio A launches with former agency 415 CEO
Michael Dunn, former CEO of San Francisco -based advertising agency 415 Advertising, is announcing the formation of ideas boutique Studio A with offices in San Francisco, Los Angeles, and San Luis Obispo, CA. An artist, eclectic, and entrepreneur, Dunn has been an active player in the management consulting, marketing, and advertising worlds for more than 15 years. Dunn is a staunch advocate of investigating every aspect of a company's "personality" before offering advice. His corporate and agency work have been recognized worldwide with accolades and awards. With Studio A, Dunn has assembled a world-class team of collaborators whose creative work in management consulting, advertising, public relations, graphic design, web design, art, and film have been seen in such client work as Robert Mondavi, HP, Honda, PG&E, Disney, Lincoln, Dow, Toyota, Sunkist, and E&J Gallo to name just a few. Gabriel Gasca, former CEO of California-based nanotechnology company, SurForce, Walter Whitman, fine art photographer and former Creative Director, and Thomas Heo, Internet professional, have joined Dunn's STUDIO A as partners. In addition, Studio A has established a broad collaborative of creative and strategic professionals who share Dunn's ideology and passion. For more info: www.studioa-usa.com.


Media Markets & MoneyTM
Barrington agrees that Missouri loves company
Barrington Broadcasting already has a CBS affiliate in the state border straddling Quincy IL-Hannibal MO market. Now it's adding another member of the Eye Network in Columbia-Jefferson City. The station is Channel 13 KRCG-TV, coming from
Mel Wheeler Inc. for an as yet undisclosed price. Barrington, run by NAB board member Jim Yager with Bob Pittman and Bob Sherman as financial backers, builds on a portfolio which also includes an ABC affiliate in Peoria-Bloomington IL, and an NBC and WB affiliate in Flint-Saginaw MI.


2005: Year of Local Muscle

January 2005 Debut!
Radio & Television
Business Report

What Radio & TV both need to overcome in 2005 is the focus of the January Report. If you don't get it then you won't know what lies ahead - so Get It! It's Free!

If you want the January Debut issue, please register now. All orders must be in by
Monday December 6th, 2004.




Washington Beat
MMTC wants set ubiquity after analog goes off
"Television is the most influential force driving our cultural values and norms, our language and dialects, and the information we carry into the voting booth," wrote Minority Media & Telecommunications Council Executive Director
David Honig in a letter to FCC Chairman Michael Powell. He argues that a drop in "television set's ubiquity just from 99% to 92% of households would devastate our system of mass communications." To that end, he asks Powell to withhold a final vote on a DTV plan until Congress makes sure there will be money allocated to bring America's poor along for the ride. Congress may into a problem a few blocks west on Pennsylvania Avenue. The White House has indicated that it is against any kind of voucher program (10/26/04 TVBR Daily Epaper #209). Honig concludes, "In light of the uncertainty regarding legislation to authorize DTV vouchers, it would be premature for the Commission to vote on any plan to reclaim the analog spectrum. Under no circumstances should the nation complete the DTV conversion process, or require broadcasters to relinquish their analog spectrum without a well-conceived and fully-funded voucher plan that will ensure low-income families' continued inclusion in our electronic commons."

CEA petitions FCC
for faster digital tuner mandate

In a filing with the FCC last week, the Consumer Electronics Association and the Consumer Electronics Retailers Coalition urged the FCC to accelerate the digital television (DTV) tuner mandate timetable. Pointing to the unintended consequences of the 50% requirement, CEA and CERC requested that the 100% deadline for DTV tuners in television screen sizes 25" to 36" be accelerated to 3/1/06, thereby speeding the consumer migration to DTV. The current DTV tuner mandate timetable calls for 50% of the TV receivers in the 25" to 36" screen size range to have a digital tuner by 7/1/05. CEA and CERC are petitioning to exchange the 50% requirement for advancing the 100% requirement in this size category up from 7/1/06 to 3/1/06. The associations argue the modification will expedite the planning for and implementation of 100% incorporation of DTV tuners, in providing for a clear date for universal reliance on the DTV technology and components. "The current 50% requirement is antithetical to the Commission's goal of building marketplace demand for broadcast DTV receivers when applied to popular, 25 to 36 inch, screen sizes," said CEA President/CEO
Gary Shapiro. "Although initially conceived as a phase-in for the benefit of manufacturers and retailers, in reality it creates uncertainty in the marketplace for each group and slows the ramping up of volume production necessary to bring costs down.

TVBR observation: This is good news, because for years we've been reporting many of the DTV sales numbers issued by CEA weren't really true DTV sets. Most of the sales were digital monitors that had no DTV tuner built in. People would bring the sets home and find they needed to spend even more on a separate DTV tuner set top box. This filing could help accelerate the closing of that gap.

Price per CP approaching 600K
Auction No. 37 is into Round 27 at this writing, and it's pulled in over 168M dollars for the 288 available FM CPs. That works out to just under 600K a stick. College Creek is in the lead on the standing high bid chart, with a whopping total of 39 bids totally 32.227M dollars. Bigglesworth Broad casting is a distant second with eight sticks and 18.274M, followed by Radioactive (21 sticks/12.532M), Cumulus (7 sticks/7.603M) and Hispanic Target Media (10 sticks/5.389M). The two hottest hot spots are the same, and they're only getting hotter. The Pacific Junction IA is commanding 6.765M (Bigglesworth), and the Brewster MA stick is at 3.927M (GBH Communications).


Programming
Dr. & Mrs. Phil celebrate the holidays
TNT has booked syndicated TV phenom Dr.
Phil McGraw to host its annual "Christmas in Washington" concert, along with his wife, Robin. The 23rd annual concert to benefit the National Children's Medical Center will be taped at the National Building Museum in DC and air on TNT December 15th. Singing guests this year will include JoJo, LeAnn Rimes, Ruben Studdard and Vanessa Williams. If tradition holds, President and Mrs. George W. Bush are expected to be in the audience, along with other VIPs.

Rene Auberjonois joins ABC's "Boston Legal"
Tony Award-winning stage and screen actor
Rene Auberjonois, whose career spans from Broadway's "City of Angels" and "Big River" to the feature films "The Patriot" and "Inspector Gadget," has joined the cast of "Boston Legal," transitioning from his guest-starring role to a series regular. Auberjonois, who was nominated for an Emmy for his guest-starring role on David E. Kelley's "The Practice," plays Paul Lewiston, the straight-laced partner of Crane, Poole and Schmidt, who is the counterpart to Denny Crane's somewhat less predictable management style. He is the only partner at the firm who can actually speak the truth to Denny Crane, regardless of what the truth may be. Alan Shore and Denny Crane, played by Emmy Award winners James Spader and William Shatner, lead a brigade of high-priced civil litigators in an upscale Boston law firm in this series focusing on the professional and personal lives of brilliant but often emotionally challenged attorneys. Boston Legal was created by David E. Kelley. Kelley, Bill D'Elia, Scott Kaufer and Jeff Rake are executive producers. The series is produced by David E. Kelley Productions in association with Twentieth Century Fox Television.


TVBR Stats
Broadcast vs. cable: Week seven
In the seventh week of the broadcast season, which ended Sunday, November 7th, TVB's number crunchers report that broadcast delivered 94 of the top 100 primetime programs - and 49 of the top 50 programs. "CSI" on CBS took first place, with an 18.82 HH rating; ABC's "Desperate Housewives" finished second, with a 14.91 HH rating and "Without a Trace" on CBS finished in third place with a 14.19 HH rating, TVB said, based on its analysis of data from Nielsen Media Research. Ad-supported cable's highest ranking program was ESPN's coverage of the Browns-Ravens game, which delivered a 5.41 HH rating and came in at No. 50. Election night coverage accounted for two of ad-supported cable's six programs in this week's top 100. (Note: on the broadcast networks, election coverage is considered a "sustaining program," or a program without advertising support, and ratings are not reported.)


Stock Talk
Oil drop boosts stocks
Stock prices moved up on Monday as oil prices moved down. The Dow Industrials gained 11 points, or 0.1%, to close at 10,550.

TV stocks were mixed. The best and worst were penny stocks - - Paxson, down 5.3%, and Granite, up 2.3%.


Stocks

Here's how stocks fared on Monday

Company Symbol Close Change Company Symbol Close Change

Acme

ACME

6.00

-0.07

McGraw-Hill

MHP

86.60

-0.55

Belo

BLC

24.18

-0.05

Media General

MEG

58.82

-0.33

Clear Channel

CCU

34.37

+0.14

Meredith

MDP

52.62

+0.24

Disney

DIS

26.73

-0.07

News Corp.

NWS

18.18

+0.08

Emmis

EMMS

19.25

-0.11

Nexstar

NXST

8.20

unch

Entravision

EVC

8.30

-0.02

NY Times

NYT

41.47

-0.05

Fisher

FSCI

48.70

-0.30

Paxson

PAX

1.25

-0.07

Fox

FOX

29.05

-0.19

Saga Commun.

SGA

18.20

-0.10

Gannett

GCI

83.08

-0.06

Scripps

SSP

48.24

unch

Gen. Electric

GE

36.10

-0.15

Sinclair

SBGI

6.72

+0.03

Granite

GBTVK

0.44

+0.01

Time Warner

TWX

17.38

-0.02

Gray

GTN

13.01

+0.10

Tribune

TRB

44.03

+0.08

Gray, C1. A

GTNa

12.10

unch

Univision

UVN

30.45

+0.52

Hearst-Argyle

HTV

25.78

-0.01

Viacom, Cl. A

VIA

36.67

-0.07

Jeff-Pilot

JP

50.15

+0.45

Viacom, Cl. B

VIAb

35.98

-0.07

Journal Comm.

JRN

17.49

+0.06

Wash. Post

WPO

964.50

+9.40

Liberty Corp

LC

42.89

+0.25

Young

YBTVA

12.13

+0.24

LIN TV

TVL

18.19

+0.07

- - - - -


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Bounceback

Send Us Your OpinionsWe want to
hear from you.

This is your column, so send your comments to tvnews@rbr.com

People are up in arms about "Saving Private Ryan," including some of our readers.

I've had it. I'm done. The far right has now overstepped its bounds and caused a conservative to move way left. Maybe I should have voted for Kerry because if this is what we get with George W. and crew, then I'm sorry America, I voted for the wrong person... | More... |

Howard F. Price, President
Multi-Net Marketing, Inc.


Upped & Tapped

Nicholson heads
to Tucson

Belo has named
Lawrence "Nick" Nicholson as VP/GM of KMSB-TV (Ch. 11, Fox) and KTTU-TV (Ch. 18, UPN) Tucson. He had been VP of Sales & Marketing at Belo's flagship WFAA-TV (Ch. 8, ABC) Dallas-Ft. Worth.

Paramount names
Koondel EVP
Paramount Domestic Television has upped SVP/National Sales Manager Scott Koondel to EVP/Domestic Television Distribution, reporting to division president John Nogawski. He'll be relocate to LA from NYC.


RBR - Radio News

More fun with radio markets: Part III
"Will grant of this application result in the applicant or any party to this application having a cognizable interest in more than one commercial or noncommercial full-power radio station located in (i.e., having its community of license within) or 'home' to the same metropolitan area (Metro), as defined by Arbitron and reported by BIA?" Thus begins the multiple ownership worksheet for radio on FCC Forms 301, 314 and 315. A footnote goes into a bit more detail: "Note that BIA may report a particular station as 'home' to more than one Metro and have its community of license in a separate Metro. Each such Metro is 'applicable.'"

RBR observation: Our exploration of the new radio market definition regime is not a witch hunt. We are not trying to identify any villains - - not at Arbitron, not at BIA, not at the FCC, not on Capitol Hill, not among station group owners. What we're trying to do is figure out how the new rules are going to play out in real life, after the catalytic multiple ownership filing for a Burlington AM station. Now if you are a fan of Reality programming - this is reality.
| More... |


October Digital
Solutions Magazine

Who Will Sit on the Throne?
The election -What is in it
for Broacasters?

One On One
with PHD's Patrick McNew -
The man that over sees spot
for Chrysler Group.

Engineered For Profit
'05 budgets and capital expenditures, our close up look at who's planning to buy what next year.

October Zinio Solutions Magazine
Read RBR in 2 simple steps:
1.Create a simple account with Zinio and download the Zinio Reader.
2. You can then download the October Issue of RBR


TVBR Radar 2004
Television News you won't read any where else. TVBR--First, Accurate, and Independently Owned.

AFA going after Ryan airing
Donald Wildmon's American Family Association is apparently going to put the Veterans Day ABC TV Network airing of "Saving Private Ryan" to the indecency test. Although many affiliates decided to duck the issue by preempting the uncut presentation of the movie, most aired it as scheduled.
TVBR observation: First war is hell and you can't tell a real story without Reality. God we hear it on other shows for the exception on F. And that comes close. 2005 is the year Local has to muscle up with programming content and focus on what the viewer logical sense is. Just look at the trash that is on local TV and you wonder why we hear the flushing sound. If you don't want to view it then don't turn it on.
11/15/04 TVBR #223

McCain wants to take
softness out of 527s
Claiming that the McCain-Feingold Shays-Meehan Bipartisan Campaign Reform Act was largely a success in 2004. However, there was one glaring loophole, large enough for 527 organizations to drive the proverbial truck through, which he will attempt to close. TVBR observation: Glaring loophole our vertical smile.
11/15/04 TVBR #223

Where are multiples these days?
Still high - - Part 2
After consulting with a number of brokers, we can tell you this with assurance - - the market for radio and TV stations is not softening. "The really good quality stations are getting more than 10 times cash flow, and in some cases if the market is a really good market it will get a number with no cash flow," said Ron Kempff of Kempff Communications, who agreed that multiples really haven't changed in five years. "It's still a 10 times cash flow market."
TVBR observation: Still comes down to Want vs Need to sell. Greed or Logic. 11/15/04 TVBR #223

Burlington Part II: New rules more whacked than we thought
RBR has argued against the new market definitions for radio since they were first publicly pondered. Contours are real and measurable. Markets, as defined by Arbitron and BIA, are fluid, invented - - often by the station owners - - and often quite arbitrary. The new definition, which is supposed to clamp down on excessive ownership concentration and promote localism, incredibly, may in fact do the opposite.
RBR observation: If you have an interest in the rules of the road for radio ownership, we strongly advise that you RBR through this maze daily. Your stations, ywour future and your problem. RBR stand by our radio business. 11/15/04 RBR #223

TVBR Observation: Hello Houston you now have a TX size PPM problem
Big time as Fran Kennish, Chairman, AAAA Media Research Committee, Senior Partner, Director of Media Research, Strategic Planning, Mediaedge:cia has fired off a message to all radio in the market and especially the hold out groups of Infinity, Cox and Radio One or anyone that are not participating in the Aribtron PPM trial. Bottom line radio people: The advertisers want the test and the hold outs are making radio look like obstructionists to progress and better ratings. In three words to the radio business with PPM and Houston hold outs - Suck It Up - and! get on board no matter what the results. Can't fix it if you don't know what is broken. Kennish email tells the whole story. Ps: This is not just a radio issue it is also a TV - PM issue called People Meter. 11/12/04 TVBR #222

FCC's Adelstein may
return in package deal
Republicans in the Senate are looking to get anywhere between 80-100 names confirmed in the current lame duck session, mainly judicial nominees. The speculation is that Jonathan Adelstein's return to the FCC may be offered as a deal sweetener to get the package through before year's end. TVBR observation: Some, including those of us here at TVBR, have speculated that the Bush administration would look for a FCC candidate which could be used for political purposes. We thought they possibly would discuss it with the next minority leader, which at this point looks like it will be Harry Reid (R-NV). But the talk we see that at least one Republican Hill staffer thought that offering Adelstein up in exchange for 80 or so judges was more than fair. 11/12/04 TVBR #222

Where are multiples these days?
Still high - - Part 1
If you've been waiting years for cash flow multiples to go down so you can go out and buy a few radio stations - - you can keep waiting. Brokers on the market's frontlines tell us that Wall Street worries about the radio business haven't hurt pricing and multiples remain at the heights where they've been since 1999. If anything, prices have firmed for smaller markets, which is where a lot of the transaction activity is these days. What's keeping prices high is a lack of inventory. Consolidators, for the most part - TVBR observation: Sellers have to answer this - What do you want or what do you need to sell? Well just wait and see the forecast in January debut issue of Radio and Television Business Report - The Real Business Magazine. Sign up to Get It - Got It. -- Sign up here - 11/12/04 TVBR #222

LPMs welcomed at Granite
Other TV group owners may be grousing about lower ratings under Nielsen's Local People Meters, now deployed in five markets, but LPM is being greeted like manna from heaven at Granite Broadcasting as COO John Deushane told analysts that the company's KBWB-TV San Francisco is getting a boost from LPM measurement, due to its skew toward younger demos as a WB affiliate, while the big four affiliates with their heavy news orientation have been taking hits under LPM.
TVBR observation: What did we say below with the Arbitron PPM? People get on with life with the People Meter. 11/11/04 TVBR #221


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