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Volume 22, Issue 233, Jim Carnegie, Editor & Publisher

Wednesday Morning November 30th, 2005

TV News®

"Idol" price tag growing for Fox
What's a hit franchise worth? Fox has signed up for up to six more years of "American Idol" in a deal with Simon Fuller's FremantleMedia and 19 Entertainment, now owned by Bob Sillermans's CKX Inc. - - but it won't come cheap. The license fee for Idol 5, which should begin airing in January 2006, will cost 18 million bucks. Fox is committed to a minimum of four more years of Idol, with the license fee growing to 30.5 million for Idol 7 in 2008. If certain ratings minimums are met, two more years will be added, with the license fee growing to 35.5 million annually for editions 8 and 9 in 2009 and 2010. Fox also agreed to pick up at least two original shows produced jointly by 19 Entertainment and FremantleMedia over the next five years. That's in addition to "So You Think You Can Dance?," which was a summer hit this year and already renewed. At the same time, Fox also signed Simon Cowell to continue as a judge for at least five more seasons of Idol. His future had been in doubt because of litigation between Cowell, 19 Entertainment and FremantleMedia over "X-Factor," a new show created by Cowell which FremantleMedia claimed infringed on its copyrights. CKX said the settlement gave 19 Entertainment, of which Cowell is CEO, a minority interest in certain intellectual property and programming related to the "X-Factor" show.

TVBR observation: Can you imagine what it's like to sit across the negotiating table from Bob Sillerman and Simon Cowell? We wonder if the folks at Fox are now trying to come up with a competitor to NBC's "The Apprentice" so Sillerman can show Donald Trump how business deals are really done.

Senate decency bill literally put on hold
In yesterday's all-day confab on decency, Senate Commerce Committee Chairman Ted Stevens (R-AK) explained why his side of the Capitol has failed to act on the Decency Enforcement Bill now twice-passed by the House of Representatives. The version offered by Sam Brownback (R-KS) has attracted holds from both sides of the decency enforcement spectrum. Brownback's bill gives the FCC the ability to hit indecency offenders with fines 10 times higher than the current ceiling, among other things. Stevens said some think it goes too far, others not far enough. Given that concern was coming from two opposite directions, Stevens did not think he had the 60 votes necessary to force action. He said it will definitely be taken up, along with proposals from John Rockefeller (D-WV) concerning broadcast violence, and another from Ron Wyden (D-OR) concerning a mandate for cable operators to provide a tier of family-oriented programming. Noting that yesterday's forum on indecency gave many the opportunity to get ideas on the record, Stevens mentioned adding another session on indecency before the year is out - - he suggested 12/12/05 - - for the purpose of looking into specific proposals and remedies.

Martin: FCC reversing itself
on a la carte
FCC Chairman Kevin Martin praised the entertainment industry for providing some of the finest programming ever, and in the same breath took it to task for also providing the coarsest. Saying that government intervention was a third and last resort, after parental involvement and industry self-regulation, he proceeded to suggest options which the cable industry could provide parents, and said that an earlier FCC report calling an a la carte cable channel regime burdensome on the industry was flawed and would soon be replaced with a new study more favorable to the concept. He said it was clear that the use of objectionable language and sexual content was up, and that parents need to be able to control the flow of content into their homes. He noted that cable forces objectionable content on parents, comparing it to a magazine subscription regime where, to get "Newsweek" and "Sports Illustrated," you also had to accept "Cosmopolitan," "Easy Rider" and "Guns and Ammo." Three remedies he suggested are the provision of family-friendly tiers, extending indecency regulation and enforcement applicable to broadcasters to basic cable channels, and to offer al a carte programming. The latter, he argued, should be economically feasible. Martin had no comments during his opening remarks regarding the prospect of upcoming FCC fine proposals on alleged incidences of broadcast indecency.
| Read Martin's full testimony here |

Reese makes the case for broadcasters
Bruce Reese took exception to the apparently widespread belief that broadcasters are filling the airwaves with filth. "To begin," he said, "it may be useful to remember that the vast majority of broadcasters have never had the FCC take any action against them on the indecency issue." He noted that the vast majority of programming complaints have been generated by organized mass Internet projects, and further, when there have been transgressions, the FCC has not been shy about slapping fines on the offenders. He said that broadcasters are locally oriented, and must in the course of doing business respect local community standards. These standards, however, are not the same from one place to another. He particularly noted the difficulty faced by broadcasters in an environment in which satellite and cable programmers are unrestrained. He specifically mentioned Howard Stern, who he said is installing a stripper pole in his new Sirius studio in preparation to shedding whatever broadcast restraint he currently operates with, and XM's Opie & Anthony, who already have left restraint in their wake - - and both shows are headed for satellite TV as well. "So the Committee would be well advised to consider the uneven playing field that broadcasters have with our satellite and cable competitors."
| Read Reese's full testimony here |

Wide open "Open Forum on Decency"
A lot of ideas were put forth yesterday at the special session of the Seante Commerce Committee put together by Chairman Ted Stevens (R-AK). While it can probably be said that all in attendance believe that it is important to protect children from objectionable material, that is pretty much where the consensus ended. Ratings, v-chips, channel blocking tools, channel tier and menus and legislative remedies all were voiced. Legislative intervention was alternately called for and warned against. Below is a brief summation of the testimony from most of the panelists, other than those of senators and FCC Chairman Kevin Martin and NAB Joint Board Chairman Bruce Reese of Bonneville, noted in the articles above.
| Comments on decency |

ABC closer to the end of sale
Over night while you slept - Reports on the wire have pinned pointed on the potential buyers for ABC Radio and the suspects are the previous named – Entercom and Cumulus then the little surprise of the infamous Kohlberg Kravis Roberts (KKR) that seems to have come into the game at the last minute. The Financial Times reports that KKR may have teamed up with a ‘Trade Buyer’ to win the bid but the report did not mention who the ‘Trade Buyer’ is but RBR sources only have heard one person and that is Randy Michaels but unconfirmed. Disney is being advised by Goldman Sachs which by the way is also advising Knight Ridder on the sale of their newspaper chain.

Adbiz©

Internet video ad spend to triple by 2007
Internet video advertising spending in the US will nearly triple to 640 million in 2007 from this year's 225 million, according to a new Online Video Advertising report from eMarketer. By the end of the decade, advertisers will spend at least 1.5 billion on video ads online. "Online video advertising used to be an oxymoron -- but no more," says David Hallerman, Senior Analyst at eMarketer and author of the report. "Television and the Internet are developing new ways to complement each other." Internet video has the greatest potential to blend several hot marketing elements: paid search, branded entertainment, viral marketing, consumer generated media, behavioral targeting, Web site brand marketing and online gaming. "Video represents common ground for television and the Internet, not a field of battle," adds Hallerman. "Winner-take-all is not the name of the game." Broadband adoption at home is a key driver of online video advertising's growth. According to eMarketer, there will be more than 69 million US broadband households by 2008, more than doubling 2004's figure of 34.3 million. Today, more than half of US online households connect via high-speed access, and by 2008, eMarketer says, more than half of total US households will be on broadband Internet access. This essentially provides advertisers with a new online "mass" audience. "All this is very good news for advertising agencies," says Hallerman. "Now the products they are best at creating -- film and video commercials, or 'spots' -- can be transferred to a new medium, new markets. In real-world terms, what that means is marketing campaigns can extend TV's reach to the online space, enticing the target audience to spend more time with a particular brand. It also means using the Internet's ability to track consumers in ways that match up television commercials with online (and offline) activity."

Univision and Colgate partner re-up oral health initiative
Univision and Colgate-Palmolive announced the renewal of their oral health education partnership aimed at Hispanics. The partnership is part of Univision's Peabody Award-winning health campaign, "Salud es Vida...¡Entérate!" and will feature public service announcements, informative oral care vignettes, news health segments and special televised reports. In addition, extensive information about the importance of oral care will continue to be available on dedicated Entérate website pages throughout Univision.com. "Research has shown that Latino preschoolers - - the fastest growing child population in the country - - experience 2.5 times more tooth decay than the general population. Often, unknown information like the damage caused by the use of baby bottles after the age of two results to problems with mouth formation and tooth decay," said Congresswoman Hilda L. Solis. "Proper oral health and dental care is key to the health of many children in the Latino community. I applaud the efforts of Univision and Colgate for their continued commitment to improve the oral health of our community through their educational health campaign."

Second PacifiCare Medicare campaign launches
PacifiCare Health Systems launched a second national television campaign for Prescription Solutions from PacifiCare, the company's new Medicare Part D prescription drug insurance products. The new "Skeptics" effort is intended to create confidence among Medicare consumers and further reinforce the numerous benefits of PacifiCare's Medicare prescription drug insurance plans. The two 60-second commercials were directed by award-winning filmmaker Vadim Perelman, director of the DreamWorks film House of Sand and Fog, and created by Deutsch Inc. The campaign will launch with television ads airing on key national cable networks including A&E, CNN, CNN Headline News and the History Channel. The commercials feature a group of wary seniors whose doubts are entertainingly expressed up close in unconvinced winces, dubious chin-strokes and suspicious squints. Eventually, the diverse group of doubters is won over, convinced by the clear messages about quality benefits, affordable plans and cost savings. PacifiCare's first ad campaign, Choice is Swell, starring the Fred and Ethel characters from I Love Lucy, will continue airing nationally.

SORPRESA! adds Chuck E. Cheese
as charter advertiser
SORPRESA!, along with leading multicultural media agency Starlink y Mas/Tapestry, said Chuck E. Cheese has committed to an advertising partnership with the Hispanic kids net. "We are thrilled that the largest U.S. Hispanic media agency can see the value our network delivers to their clients. Chuck E. Cheese is a leader in their category, and we welcome them to SORPRESA!," said Leonard Firestone, CEO for Firestone Communications, Inc. owner and operator of SORPRESA! In addition to the on-air media buy, the partnership calls for a variety of promotions including banner advertisements on the network's website and sponsorship of programming blocks to be executed by the network and its cable affiliates. Starlink y Mas is a partnership between Starcom MediaVest Group's Starlink Worldwide and Tapestry, the first and largest multicultural contact agency in the U.S.

Washington Beat

A Victory for Hurricane Katrina?
That's right folks. FCC Chairman Kevin Martin has found a way to keep former NTIA Administrator Nancy Victory's hand in the communications regulatory field. She will chair a new panel, the "Commission's Independent Panel Reviewing the Impact of Hurricane Katrina on Communications Networks." She'll be joined by a panel of communications and public safety experts to look at the Katrina in terms of improving disaster preparedness, network reliability and first responder communications. Victory is currently a partner at communications law firm Wiley Rein & Fielding LLP.

Programming

"Lisa" is "Jerry" today
Thousands of people auditioned for the chance to host "The Jerry Springer Show" for one day, but "Lisa from New York" bested them all and makes her appearance today as winner of the "Be Jerry For a Day" contest. Lisa, who is 22 and a senior in college, will co-host today's episode with Springer himself. "She doesn't have glasses and a big nose like myself, but despite that, she did a heck of a job," Springer said of his protégé. "The Jerry Springer Show" is currently in its 15th season in national syndication, airing in more than 180 U.S. markets and 50 countries around the globe. Richard Dominick is the Executive Producer and the show is distributed globally by NBC Universal Television Distribution.

"Simple Life" is a cable life
After being dumped by Fox (10/14/05 TVBR #202), "The Simple Life" has found a new home on the E! Entertainment Television cable network. E! announced that it had ordered 10 all-new episodes of the reality show staring Paris Holton and Nicole Richie to air next Spring. E! will also have access to the 36-episode library of shows that have already aired on Fox. "The simple Life" is produced by Bunim-Murray Productions in association with Twentieth Century Fox Television.

Rachael Ray looking good
for NYC, Philly
Food Network personality Rachael Ray's fall 2006 syndicated talker has been or is close to being cleared on ABC O&Os in NYC (WABC) and Philadelphia (WPVI), according to TVBR sources. That adds to already reported clearances at CBS O&Os KCBS Los Angeles, WBBM Chicago, WBZ Boston and Viacom O&Os in San Francisco and Dallas. We also hear the new clearances are not good news for Buena Vista's "The Tony Danza Show," as Rachel Ray's show will likely replace him next fall in NYC and Philly. The show, based in New York, will be produced by King World in association with Oprah Winfrey's Harpo Productions and Scripps Networks. Ray is the host of the Food Network's 30-Minute Meals, $40 a Day, Inside Dish and Tasty Travels. WABC GM Dave Davis didn't return a call seeking comment. King World alluded there would be an announcement next week.

Ratings & Research

CBS wins week, ABC 18-49
10 weeks into the current TV season, the winning streak for CBS remains intact. It has won the Nielsen Household ratings every week. However, ABC pushed back on top in the 18-49 demo for the Thanksgiving holiday week. ABC and CBS are running neck-and-neck for the 18-49 crown season-to-date, with ABC inching back ahead based on the latest week's showing. In winning the HH race, CBS scored an 8.9 rating and 15 share, with ABC at 7.1/12, NBC 5.8/10, Fox 5.5/9, UPN 2.2/4, WB 2.2/3 and i 0.4/1. ABC's "Desperate Housewives" knocked CBS' "CSI" out of the top spot for the week.
| View the Chart |

TVBR Stats

AHAA: television, print ad spend in 2004
grew 4.7% from 2003
The Association of Hispanic Advertising Agencies (AHAA) says Hispanic television and print ad spend in 2004 grew 4.7% from 2003. The 4.7%, however, surprisingly contrasts to the overall growth in total television and print spending which increased 10.5% from 2003. Despite this growth in Hispanic media spend, one-third of the top 250 national advertisers still do not appear among the top 250 Hispanic advertisers. While some marketers, such as Sears, McDonalds, Procter & Gamble, and Johnson & Johnson recognize the brand loyalty associated with reaching out to U.S. Hispanic consumers; others may be ignoring the trends.

The findings were the result of the 2004 Hispanic Media Spend study commissioned by AHAA's Hispanic Advertising Agencies Foundation, Inc. (HAAF) with data from TNS Media Intelligence and Market Development. "Our new study confirms what AHAA agencies have known for years," says HAAF Chair Carl Kravetz. "Hispanic marketing is flourishing. Yet still more than 100 of the top 250 television and print advertisers are allocating less than 1% of their total budgets in these media to reaching the influential U.S. Hispanic consumer. Some of America's most iconic brands-like Apple, Maytag and Nike-are missing in action. Others are doing the barest minimum: Mattel, for example, showed 0.1% spending in the Hispanic market in 2004 according to study findings. Considering that nearly a quarter of all children in America are Latino, it just doesn't make good business sense." The study reviewed total measured television and print ad spending among the top 500 national advertisers ranked by spending in those categories. A key metric for the analysis, Hispanic Media Share, divides the dollars spent with Hispanic media by the total television and print spend (Hispanic and general market).

Engineering

ERI begins major facility expansion
Electronics Research, Inc. began site work for the construction of new buildings to accommodate the increases in the company's structural, transmission line, and antenna products fabricated at its main manufacturing and HQ facility in Chandler Indiana. The new structures include a specially constructed Antenna Tuning Building for final test and tuning of ERI's high power UHF and VHF television antennas. This 10,000 square foot building, constructed of materials that eliminate RF reflections, allows the final assembly, tuning, and test measurements for new television antennas to be made in a weather protected environment. In addition to the new Tuning Building, site clearing, excavation, and grading began on a new 35,000 square foot building to house high power television antenna fabrication and assembly for rigid transmission line components. By also accommodating the shipping and receiving center for the Chandler facility, this building allows for the expansion of ERI's fabrication areas for FM antennas, FM filters, and FM combiners. With the completion of these two new buildings, the design, assembly, warehouse, fabrication, and test space at ERI's HQ campus totals well over 200,000 square feet making it the largest facility in the world dedicated to the design and manufacture of broadcast antenna, transmission line, structural, and accessory products.

Stock Talk

Essentially a flat day
Worries about possible rate hikes by the Fed kept a lid on stock prices on Tuesday. The Dow Industrials slipped 3 points to 10,888, but other indices were up slightly.

TV stocks were also little changed. Sinclair rose 2.8% as the day's big mover.

Stocks

**Here's how stocks fared on Tuesday**
Company	Symbol	Close		Change	Company	Symbol	Close		Change
Acme	ACME		4.12	unch	Media General	MEG		50.72	+0.61
Belo	BLC		21.69	+0.03	Meredith	MDP		51.13	+0.13
Clear Channel	CCU		32.60	-0.16	News Corp.	NWS		15.73	-0.10
Disney	DIS		25.08	+0.06	Nexstar	NXST		4.25	-0.05
Emmis	EMMS		20.41	+0.03	NY Times	NYT		27.80	+0.02
Entravision	EVC		7.66	unch	Paxson	PAX		0.97	+0.04
Fisher	FSCI		45.63	+0.19	Saga Commun.	SGA		12.30	+0.03
Gannett	GCI		61.49	+0.22	SBS	SBSA		4.95	-0.05
Gen. Electric	GE		35.93	-0.05	Scripps	SSP		46.59	+0.20
Granite	GBTVK		0.22	-0.02	Sinclair	SBGI		9.25	+0.25
Gray	GTN		8.96	+0.08	Time Warner	TWX		17.87	-0.22
Gray, C1. A	GTNa		8.77	-0.06	Tribune	TRB		32.00	unch
Hearst-Argyle	HTV		24.05	+0.20	Univision	UVN		30.18	+0.33
Jeff-Pilot	JP		55.62	+0.37	Viacom, Cl. A	VIA		34.00	-0.21
Journal Comm.	JRN		13.47	+0.01	Viacom, Cl. B	VIAb		33.95	-0.28
Liberty Corp	LC		46.61	+0.13	Wash. Post	WPO		745.71	+11.71
LIN TV	TVL		13.05	+0.22	Young	YBTVA		1.89	-0.20
McGraw-Hill	MHP		53.15	-0.20	-	-	-	-	-

Bounceback

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

Regarding TiVo's new ad search product for television
(11/29/05 TVBR #232):

I'm a big believer in localism. To me, it's the key to the success of any radio or TV station. And I believe one of the reasons that people turn to local media is to find out what's new in products and services - - via advertising. TiVo may have hit the nail on the head and carved out its own, new success model by delivering relevant, targeted advertising to subscribers that want to view particular advertising categories. A person who bought a Walkman in 1981 will probably want to learn about the new iPods. However, TiVo will have to offer more than just what the subscriber dictates. Viewers choose certain stations because they have determined these stations will keep them informed and updated. The software will also have to identify commercials about new products and services that are compatible with what the viewers have indicated they want to see - a logical extension of the viewer's expressed interests. For example, Bluetooth capable wireless phones - a technique only recently invented. TiVo is on the right track; local media should support the concept heartily.

Michael B. Levine
Director of Affiliate Relations
Matrix Media Inc.

TV Media Moves

Fox signs a running back
Former New York Giants running back Tiki Barber has signed on with Fox News Channel as a general contributor. He'll appear each Tuesday on "Fox & Friends First" (6-7 am ET).

Below the Fold

Ad Biz
Internet video ad spend
To triple by '07 spending at least 1.5 billion...

SORPRESA! adds Chuck E. Cheese
As charter advertiser and partnership with the Hispanic kids net...

Washington Beat
A Victory for Hurricane Katrina?
Martin finds a way to keep former NTIA Administrator...

Rating & Research
CBS wins week, ABC 18-49
Winning streak for CBS remains intact ABC pushed back on top in the 18-49...

More News Headlines

Nielsen adds Asian advisory group
Nielsen Media Research announced creation of an Asian Pacific American Advisory Council, consisting of 11 community, civic and business leaders. The Council will advise the ratings company on issues such as sampling of Asian Pacific Americans for TV measurement. Nielsen says Asian Americans represent approximately 3.8% of US TV households, but the percentage is much higher in some metropolitan areas - - 19.6% in San Francisco and 11.4% in LA, for example.
| Here are the Council members: |

Simpsons suit heads
to European Court
A Russian lawyer plans to take his case against The Simpsons to the European Court of Human Rights, reports Ananova. It comes after a Moscow Court rejected Igor Smykov's appeal to have the show banned from Russian TV. Smykov wanted to have the cartoon series taken off the air in Russia, or at least shown at a later time, claiming it promoted drugs, violence and homosexuality. He also demanded £6,000 in compensation from TV channel REN-TV saying the show had morally damaged his nine-year-old son. But the Moscow City Court rejected his appeal and Smykov says he now plans to take the case to European Court of Human Rights in Strasbourg.

December '05 RBR/TVBR Solutions Magazine

As a Professional courtesy and your convenience we have produced our December Solutions Magazine in PDF Format to Save on your Desk Top to archive. This requires version 6.0 or later of Adobe Acrobat Reader.

Use this button to update today and look for Santa on Tuesday December 6th.

TVBR Radar 2005

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

TiVo unveils ad search
product for television
Plans to offer the first television-based ad search solution in the Spring. Leveraging TiVo's search capabilities, the new product will deliver relevant, targeted advertising to subscribers that want to view particular advertising categories.
11/29/05 TVBR #232

"Black Friday"
weekend spend up 5 billion
NRF survey conducted by BIGResearch found the average shopper spent 302.81 dollars, 14.2% higher than their 04 survey average of 265.15 dollars. ShopperTrak RCT Corp., which tracks sales at 45,000 retail outlets, the overall sales on Black Friday itself were relatively unchanged compared to a year ago but Its data is mostly concentrated on shopping mall retailer traffic. So RBR/TVBR goes with BigResearch since most of the traffic measured went to the non-mall retailers like Wal-Mart and Best Buy who had heavy promotions.
TVBR observation: It isn't over yet, not by a long shot. Only one in 13 consumers has finished their holiday shopping. Local Account Execs should bring these numbers in hand and recommend to clients that shopping malls/mall merchant associations do some additional advertising and promotions to drive shopper traffic. See the data and demos here
11/28/05 TVBR #231

Ready to bid goodbye to 2005
There's still more than a month left of 2005, but from listening to the Q3 Wall Street conference calls, it seems to us that many broadcasters would be happy to jump right into 2006 and put Q4 of 2005 behind them as quickly as possible. Pretty much everyone complained that the national spot market is soft, so they all touted how great their stations are doing on pushing local sales - - some better than others.
TVBR observation: The obvious solution is to build other business categories and not be so dependent on automotive. Easier said than done, but it must be done. Stations have to develop new business categories on the local level and the reps (along with RAB and TVB) have to do it on the national level. Don't forget this lesson when the auto and political revenues start pouring in again - - unless you want to repeat this painful history.
11/28/05 TVBR #231

Viacom gives its split boards
some direction
Seven independent directors have been named to the boards of the soon-to-be divided Viacom Inc. Sumner Redstone says the company has no plans to buy anything just now, even though people are pitching proposals from all angles. The new companies are being seen as well-heeled start-ups ripe for expansion however, its possible there may actually be spin-offs. The tortoise/hare split puts the slow and steady radio and TV operations under CBS Corp. and Les Moonves, and there, smaller radio stations may be put on the block.
TVBR observation: Since Moonves only sees radio as a margin game look for the losers to be cut loose. Moonves is a TV guy and that is where his attention will be focused especially with moving content of programming into other areas for consumer consumption and purchase.
11/23/05 TVBR #230

TiVo to bring TV programming
to iPod, PSP
Testing a feature in the coming weeks to let some Series2 box subscribers transfer recorded television programming to Apple iPod digital music players or Sony's PlayStation portable (PSP) devices.
TVBR observation: Once again - Technology waits for no one.
11/18/05 TVBR #229

Sales and Marketing
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See TV Careers

Account Executive - Suburban, NYC
It is Star 99.1, NYC's only Contemporary Christian music station. We look for overachievers with significant radio sales experience and offer base salary, commission, benefits and a positive environment. Giving you the tools to do your job to succeed. See Radio Careers

Regional Sales Director
WideOrbit, the broadcast television industry's leading traffic, sales, and billing software solution has expanded into Radio. Looking for the right salesperson to join the team with experience working for a radio station or group with a understanding of sales, traffic, and billing systems. Excellent growth opportunity.
See Radio Careers

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