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Volume 22, Issue 32, Jim Carnegie, Editor & Publisher
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Tuesday Morning February 15th, 2005
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TV News®
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Indecency foes get behind Martin
Tony Perkins of the Family Research Council is urging the White House to fill the seat of departing Chairman Michael Powell with a known commodity. His group wants a warrior - - someone who will carry on with a strong crackdown on indecent content on radio and television. And he's asking his constituents to urge the White House to make that issue the primary consideration when filling that seat and any others which may come open in the near future. According to an article in (BP) news (Baptist Press), the man most anti-indecency warriors are leaning toward is current Republican Commissioner Kevin Martin. Along with Democrat Michael Copps, Martin has been one of the sternest enforcers of broadcast decency on the current Commission. This echoes a recent communication to the White House from House Republicans, who also asked that the president emphasize the indecency issue when deciding on a new chairman and naming new commissioners to the FCC.
McCain unveils campaign coverage report
John McCain (R-AZ) today will host the unveiling of the latest study on broadcast campaign coverage from the Norman Lear Center at the Annenberg School for Communication at the University of Southern California. He will be joined by Annenberg Associate Dean Martin Kaplan. The study in recent years has shown slippage in both raw coverage and in the quality of coverage by broadcasters, even while they continue to rake in an ever-growing pile of campaign advertising revenue. "Last summer, Senator McCain and FCC Chairman Michael Powell specifically challenged broadcasters to provide coverage of the political issues facing communities, candidates' campaign platforms and candidate debates," said McCain's staff in a release. "The study will reveal, as a whole, how broadcasters responded to that challenge."
TVBR observation: McCain will be working to refine his McCain-Feingold election reform bill, specifically to shut down the 527 organizations that were such a big factor in 2004. Do not be surprised to see him resume his attempts to get special advertising consideration for politicians. This means TVBR has got a noon date with Johnny McCain along with the rest of the real press and if anything breaks we will file a report immediately. If not watch for an update in today's 4:30pm afternoon TVBR-Media Mix.
Obscenity, DTV hard date
get Hill consideration
The congressional oversight season is finally getting underway, as members of both the Senate and the House of Representatives get set to resume their scrutiny of the broadcasting business. Wednesday the Senate Judiciary Subcommittee on Constitution, Civil Rights and Property Rights will consider obscenity issues; and on Thursday, the House Subcommittee on Telecommunications and the Internet takes on the DTV transition. The Senate panel may touch on broadcasting. However, generally the word "indecency" is used when discussing vulgarity in the electronic media. When the work "obscenity" is invoked, it is generally in reference to print and artistic material. The title of the session is "Obscenity Prosecution and the First Amendment," and Sen. Sam Brownback (R-KS) will be wielding the gavel. The House panel hearing is entitled "The Role of Technology in Achieving a Hard Deadline for the DTV Transition." It is expected that Rep. Fred Upton (R-MI) will chair the session. Witness lists are not yet available for either session.
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TV down 3.6% in January at Gannett
In its first monthly report of 2005, Gannett Company is showing the impact of last year's political-inflated tough comps on this year's TV revenues. The Super Bowl was also a factor, since Gannett has five CBS affiliates, but not a single Fox station. For January 2005, Gannett's TV revenues were down 3.6% to 55.7 million bucks. "Based on results to date and current pacings for the remainder of the quarter, television revenues are lagging last year's first quarter results in the mid single digits," the company said. Meanwhile, pro forma newspaper revenues were up 4.7% to 394 million, with advertising up 4.6% to 162.5 million.
Jefferson-Pilot boosts dividend
To be sure, Jefferson-Pilot Corp. makes most of its profits from the insurance business, but its broadcast unit, Jefferson Pilot Communications, also had a good year in 2004 (2/9/05 RBR #28). The company is now rewarding its shareholders with the fruits of that strong performance. Jefferson-Pilot has boosted its quarterly dividend by 10% to 41.75 cents per share. The new dividend will be paid June 5th to shareholders of record on May 20th.
Fox in ratings stretch run
Boosted by "American Idol" and the good fortune of having the Super Bowl this year, Fox has moved from well back in the ratings race to become a real contender as the 2004-'05 season has moved into its second phase. CBS is still well out in front in overall Households (at the end of week 20), with a rating of 8.4 and 14 share, while ABC and NBC are tied at 6.7/11 and Fox is at 6.0/11. But in the lucrative 18-49 demo, Fox is now tied with ABC for second place at 3.9/10, barely behind CBS at 4.0/11. In a dramatic reversal, NBC, which was leading the 18-49 demo at this point a year ago, is now 4th at 3.7/10. As News Corp./Fox President and COO Peter Chernin noted earlier this month (2/3/05 TVBR #24), "I think if we could have anything with even decent performance in the fall, we could be the dominant number one network." And then he added, "We won't be satisfied with anything less than that."
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| Conference Calls Q4 2004 |
Big turnaround at Fisher
With a big boost from political advertising, Fisher Communications reports that it had net income of 4.5 million in Q4, compared to a loss from continuing operations of six million a year earlier. In his first conference call as acting CEO, Ben Tucker called the quarter "a very positive finish to 2004" and said he and the staff will be working to enhance shareholder value in 2005, but there was no indication when a permanent CEO will be announced for the company - - following the ouster of William Krippaehne last month (1/7/05 TVBR #5). One analyst joked that Michael Eisner might be available for the job. Q4 revenues were up 22.6% to 42.3 million. That was attributed to political advertising, but also to improved local ad sales, while national TV advertising was "somewhat weaker." Fisher didn't break out radio and TV revenues separately in its press release and conference call, but company officials said more details will be provided when its annual report is filed with the SEC. CFO David Hillard did note that about three-quarters of the company's revenues come from its two big markets - - its TV and radio stations in Seattle, WA and TV station in Portland, OR.
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Adbiz©
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Ask Jeeves launches national TV effort
Ask Jeeves, a leading provider of information retrieval technologies, brands and Internet advertising services, announced it will debut six TV spots to promote its flagship search site, Ask Jeeves (http://www.ask.com). This campaign marks Ask Jeeves' return to television after a hiatus of more than four years, and the ads represent the next step in the company's marketing efforts for the popular consumer search engine, which also include online, out-of-home, and print advertising. The ads were created by TBWA\Chiat\Day San Francisco, Ask Jeeves' AOR since 2003. The 15-second spots will appear in rotation on national cable, primetime, and syndicated TV, and feature the tag, "Ask Jeeves. And get what you're searching for." In each commercial someone is seeking information from an "expert", but on a topic s/he is not an authority on and therefore cannot answer. The spots conclude with the suggestion to search Ask Jeeves, as it is a more authoritative source than these so-called experts. Ask Jeeves began a strategic and targeted marketing campaign to build brand awareness in 2003, with online, out-of home and print advertising. These effective campaigns laid the foundation for the current television advertising, which is expected to reach a broader audience.
Home builders pitch housing ad campaign
The 220,000-member National Association of Home Builders (NAHB) announced it is launching a campaign aimed at drawing congressional attention to housing's contributions to the nation's economic recovery and the robust demand for housing being projected for the next 10 years. Bill Killmer, head of NAHB's advocacy efforts, said that NAHB would be asking lawmakers to "step up to the plate" and take a pro-housing stance on legislation that could expand homeownership opportunities for working Americans and increase the supply of affordable rental housing. Full-page advertisements will appear in Roll Call, the National Journal, The Hill and Congressional Quarterly. Radio spots will be played on NPR and DC stations WTOP, WMAL and WBIG.
AAAAs to update eBiz for media
The AAAAs will hold a press conference 2/15, to update attendees about the AAAA's eBiz for Media initiative. Greg Smith, CIO of McCann Worldgroup, will present a brief history of the project, including an update about the e-business hubs schema, database, and registry, as well as outline the trading partners that have endorsed the move to electronic media transactions. eBiz for Media is a service that allows the media industry to conduct e-business transactions with its trading partners. It is comprised the Advertising Industry Registry and the XML Schema Repository. The Registry will allow trading partners to locate other compatible trading partners, and then use the information in the registry to initiate pure electronic-to-electronic or machine-to-machine communication via Web services. XML schemas provide a context for all facets of the media lifecycle, from avail to invoice. These components will allow industry transactions to take place seamlessly and instantly. Instead of faxing an avail request and receive an e-mail back a day or so later, then placing the order over the phone, all transactions will be able to be fully automated through a common network of communication protocols. Further updates about eBiz for Media will be presented at the 12th annual AAAA Media Conference & TradeShow in New Orleans. RBR/TVBR will be there to report.
Macy's puts out RFP for Hispanic agency
Macy's has reportedly sent out an RFP seeking a new Hispanic agency for national efforts, expecting to name a new Hispanic agency by April.
Old Style Beer awards
Maddock Douglas AOR
Old Style Beer, celebrating its 55th year as a sponsor of the Chicago Cubs, has named Maddock Douglas its AOR. "Old Style Beer belongs to Chicago, so it was important to partner with an agency that knows this town," said Brian Kovalchuk, CEO, Pabst Brewing, which owns Old Style. "Maddock Douglas' insightful approach toward identifying market opportunities and their integration of ideas and evocative creative is exactly what we need to meet our growth goals." The agreement will incorporate on-air and print for Old Style and Old Style Light, substantial brand integration with packaging, point-of-purchase and logo wear, website development, and on premise advertising at Wrigley Field. The new advertising will break in March 2005.
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| Media Markets & MoneyTM |
McCombs sells NFL team for 625M
The rumors (2/14/04 TVBR #31) became reality yesterday as Clear Channel Communications co-founder Red McCombs announced a deal to sell the Minnesota Vikings for 625 million to a group headed by Arizona businessman Reggie Fowler, who will become the first minority owner in the NFL. The deal still needs approval by other NFL owners. McCombs bought the Vikings for about 250 million in 1997.
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| Washington Beat |
LA TV/DT forced to continue side-by-side operation
KJLA-TV, a Spanish language station serving the Los Angeles DMA from the northern outpost of Ventura CA has been denied permission to shut down its Channel 57 analog operation and continue on as digital only Channel 49. The FCC explained that there were three criteria to be considered to grant such a request. One, that new wireless services will be available on the returned spectrum, was not sustained because there has been no auction as yet for the spectrum in question. The second, the loss of service, was turned down. Although the station's audience is tiny as a percentage of Los Angeles - - it was pegged at a quarter of a percent - - the FCC said that was significant in a market the size of LA. Third, granting the request would not speed up the pace of the DTV transition. The FCC noted that precedents cited by KJLA involved noncommercial stations which would have had to sacrifice unique programming to continue operating two stations, while in this case, no demonstration of financial hardship was made.
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| Programming |
Another year of "Heaven"
To no one's surprise, the WB has renewed its top-rated drama for a 10th season. That has the Frog Net claiming that "7th Heaven" is now the longest-running "family drama" in TV history, moving past "The Waltons" and "Little House on the Prairie," which each ran nine years. "The longevity and consistent quality of 7th Heaven is a testament to the commitment to excellence of Aaron Spelling, Duke Vincent, series creator Brenda Hampton and a fabulous ensemble cast led by Stephen Collins. An entire generation of pre-teens and teens has grown up watching this show with their parents and learned valuable life lessons. Through the prism of a loving traditional family, the storylines serve as a jumping off point for important family discussions. The bottom line is, this is a series that makes you proud to be a broadcaster," said WB President of Entertainment David Janollari.
Hallmark Channel buys cable rights to "Judging Amy"
Hallmark Channel has acquired the basic cable rights to Twentieth Television's drama "Judging Amy" beginning 2/28, when the first five seasons of the series will run Monday to Friday each week. The announcement was made by David Kenin, EVP/Programming for the Hallmark Channel, and Bob Cook, President & COO Twentieth Television. The family court drama, starring Amy Brenneman and Tyne Daly, joins the network's already aggressive, new early prime and prime time lineup that includes "Walker, Texas Ranger" and a spate of newly acquired or original made-for-television movies. "We have enjoyed a long and productive relationship with Hallmark Channel on such programs of ours as 'M*A*S*H' and 'Doctor Quinn: Medicine Woman,' and are pleased to further expand this bond with 'Judging Amy,' which complements Hallmark Channel's aggressive programming strategy," said Cook. "Twentieth Television has the luxury of distributing the finest library of off-net product to the marketplace and this arrangement exemplifies our strength in the business." The show is produced by Barbara Hall/Joseph Stern Productions, in association with CBS Productions and Twentieth Century Fox Television. The deal was brokered by Steve MacDonald, SVP/GSM, Basic Cable, of Twentieth Television, and Scott Anderson, SVP/Programming & Acquisitions, of Hallmark Channel.
World Poker Tour rolling out third season
The World Poker Tour (WPT) will launch its third TV season on 3/2 on The Travel Channel, awarding a record-breaking $70+ million in prize money. Debuting 16 much-anticipated new shows featuring its high stakes, take no-prisoners brand of poker action, the WPT will air every Wednesday at 9 p.m. ET/PT. The action will again be laced with expert commentary from the show's hosts, now hailed as poker icons themselves - Shana Hiatt, Vince van Patten, and Mike Sexton. Anheuser Busch will be making its sophomore appearance at WPT events this year. This season, Michelob AmberBock will serve as the WPT's official sponsor, supporting the show with a national promotion in establishments that culminates in winners earning a seat at the WPT Invitational Tournament.
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| TVBR Ratings |
LPM records Super Bowl boost for broadcast
For the week ended Feb. 6, broadcast drew a higher aggregate primetime rating than ad-supported cable in all five LPM markets in the three measured demos: HH, A18-49, and A25-54, the TVB said in its weekly report on Nielsen's Local People Meter ratings. "Last week Los Angeles once again posted the most lopsided margins. But probably due to the New England Patriots' presence in the Super Bowl, broadcast posted an unusually large advantage in Boston as well," TVB noted. | More... |
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| Stock Talk |
A mixed day on Wall Street
Traders didn't get too excited about the deal announced by Verizon to buy MCI for 6.7 billion. Besides, oil prices were back up, which is always a negative for stocks. So, stock prices didn't move much. The Dow Industrials ended the day with a loss of five points, to 10,791, while the S&P 500 and Nasdaq Composite were up slightly.
Radio stocks also didn't move much. The Radio Index slipped 0.133, or 0.06%, to 221.067. Entravision was up 2.2% as the best performers. On the down side, Viacom's Class B stock fell 2.4% and its Class A 2.1%. Among the penny stocks, Granite was down 10%, while Paxson gained 3.9%.
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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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6.06
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+0.21
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McGraw-Hill
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MHP
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94.19
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-0.79
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Belo
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BLC
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23.58
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-0.13
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Media General
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MEG
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65.90
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+0.25
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Clear Channel
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CCU
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34.40
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-0.20
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Meredith
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MDP
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47.72
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+0.61
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Disney
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DIS
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29.39
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+0.05
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News Corp.
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NWS
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17.51 |
-0.15
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Emmis
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EMMS
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18.42
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-0.08
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Nexstar
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NXST
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8.67
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+0.22
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Entravision
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EVC
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7.99
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+0.17
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NY Times
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NYT
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39.36
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-0.04
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Fisher
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FSCI
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50.63
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+0.60
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Paxson
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PAX
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1.33
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+0.05
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Fox
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FOX
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33.69
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-0.41
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Saga Commun.
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SGA
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16.78
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+0.03
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Gannett
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GCI
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80.14
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-1.49
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Scripps
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SSP
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47.22
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-0.49
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Gen. Electric
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GE
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36.32
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+0.09
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Sinclair
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SBGI
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7.86
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-0.07
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Granite
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GBTVK
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0.36
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-0.04
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Time Warner
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TWX
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17.85
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-0.15
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Gray
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GTN
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15.73
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+0.03
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Tribune
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TRB
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41.97
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-0.04
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Gray, C1. A
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GTNa
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14.00
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unch
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Univision
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UVN
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27.42
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+0.51
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Hearst-Argyle
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HTV
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26.07
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+0.01
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Viacom, Cl. A
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VIA
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36.86
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-0.80
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Jeff-Pilot
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JP
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49.87
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+0.07
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Viacom, Cl. B
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VIAb
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36.53
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-0.91
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Journal Comm.
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JRN
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16.64
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+0.16
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Wash. Post
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WPO
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927.60
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-0.39
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Liberty Corp
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LC
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43.41
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-0.44
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Young
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YBTVA
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9.19
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-0.09 |
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LIN TV
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TVL
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18.56
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-0.18
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__UNSUB__ to this email service.
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Bounceback
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We want to
hear from you.
This is your column, so send your comments to tvnews@rbr.com
This consultant says accountability concerns aren't just an issue for broadcasters.
You may be surprised to know that as 'antiquated' as radio billing systems seem to be, print is just as bad and in some ways worse. Much. And they gross much more money. I wouldn't buy in to all this whining about accountability from agencies, it's the same with print and it sounds like a good negotiating tactic on the part of the agencies.
Walter Sabo
Sabo Media
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Upped & Tapped
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Gerberding
goes Outdoor
Broadcast veteran Joan Gerberding has been promoted to Vice President of Arbitron Outdoor, where she will lead efforts to sell Scarborough data to outdoor and out-of-home clients.
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RBR - Radio News
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Perception vs. reality, Part I
The Advertiser Perception Study released last week at RAB2005 found a disconnect between what advertisers and agencies think about the accountability of radio and what radio managers think about how well their industry does on the accountability front. The problem is that when it comes to accountability, radio is not perceived as being one of the top media. "Radio people think we are," said RAB President Gary Fries, but he noted that the survey of advertisers and agencies found a very different perception. Particularly in the area of credibility for audience measurement, people at radio stations who responded to the survey thought that local radio was right up near the top, placing radio's Arbitron diaries just behind network TV Nielsen ratings for credibility - - and ahead of local spot TV. Compare that to the advertisers and agencies who ranked local spot radio near the bottom - - even behind cable TV, which the radio people had ranked dead last!

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TVBR Radar 2005
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Television News you won't read any where else. TVBR--First, Accurate, and Independently Owned.
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RAB 2005 Atlanta presents
must issues to tackle
RAB CEO Gary Fries discussed the Advertiser Perception Study, noting that radio is still not perceived as the most accountable medium by advertisers. "Radio people think we are," he said, but went on to clarify that in today's environment, advertisers are obligated to show their stockholders or owners that they are getting what they purchased. "But the needle is moving." But we haven't had the ratings systems to tell the advertiser what is going on." Indicating that a three-book average consisting of data that could be as much as a year old is no longer acceptable. "We have to become more relevant. We have to deliver more information, real-time information, and accurate information. We are moving in that direction, but we're not there yet. We need to be the most accountable medium out there."
02/14/05 TVBR #31
32M satellite radios by
the end of this decade
Despite concerns that consumer demand appears to have softened in the past year, JP Morgan analyst Barton Crockett is still projecting strong subscriber growth for both XM and Sirius, with Sirius gradually improving its market share after launching second in the two-company race. The analyst is projecting that the two satcasters combined will have 8.5 million subscribers by the end of this year, 32.4 million by 2010 and 56 million by 2020. 02/14/05 RBR #31
Single stream carriage:
The constitutional argument
The FCC vote against imposing a multicast carriage requirement on cable operators was 4-1. However, a more accurate way to describe the vote would be 2-2-1, and if the timing were different, it could easily have gone 2-3 in favor of broadcasters. It is therefore instructive to take a closer look at the reasons behind the votes. Republicans Michael Powell and Kathleen Abernathy voted against the rule for what are basically technical reasons. They determined that a close reading of statutory documentation and prior court cases showed that there was not enough evidence in favor of broadcasters to sustain the imposition of further requirements on cable operators. 02/14/05 TVBR #31
Single stream carriage:
The public interest argument
On the other hand, Democrats Michael Copps and Jonathan Adelstein made it abundantly clear that they would have happily imposed multicast must carry on cable operators if they has first gotten assurances from broadcasters, and preferable to that, statutory requirements for those same broadcasters to use the added programming capacity in the public interest. The issue is under consideration at the FCC, but both said that it should have been completed before advancing to the must carry issue. 02/14/05 TVBR #31
FCC nixes multicast must carry
The FCC took a big stand with the cable industry over broadcasters, reaffirming an earlier finding that CATV operators do not have to provide dual analog/digital carriage during the remainder of the DTV transition phase by a 5-0 vote, and reaffirming cable's responsibility to carry only one and only one broadcast programming stream, regardless of whether or not the broadcaster is multicasting.
02/11/05 TVBR #30
NAB responds
NAB President/CEO Eddie Fritts wasted no time reacting to the FCC's decision on multicast must carry. "In Washington, there are no final victories and no final defeats,"
TVBR observation: There is no way on this earth to call this a victory for broadcasters. However, Fritts does have a valid point. Members of both parties on Capitol Hill asked the FCC to support multicast must carry, or at a minimum, delay a vote on it. In their remarks, several of the Commissioners noted that ultimately, the FCC's job is to interpret and carry out the mandates of Congress. If the NAB can get legislators to put something in writing and vote affirmatively on it, broadcasters might yet get their way. 02/11/05 TVBR #30
Another broadcaster claims it was fouled by Citadel
Ed Levine's Galaxy Communications says Citadel Broadcasting Company went out of bounds in its effort to stop Galaxy from building an FM translator in Fulton NY, which Galaxy was seeking to bolster its coverage of the Syracuse market. Similar charges have come from Red Wolf Broadcasting in the New London CT market. 02/11/05 RBR #30
Congressional indecency
effort clears first hurdle
There was twice as much opposition to the Broadcast Decency Enforcement Act in 2005 as there was in 2004. That brought the opposition all the way to two votes, as an essentially clean bill sailed through the House Energy and Commerce Committee as predicted. The vote was 46-2, compared to last year's 49-1 tally. The bill, if enacted into law, will raise the FCC's maximum indecency fine from 32.5K to 500K and put in a 3rd strike rule ordering the FCC to consider license revocations for thrice-cited owners.
TVBR observation: The bill sailed through the full House last year with only token opposition, but was done in by the Senate, which included amendments dealing with broadcast ownership consolidation and violent content, among other things. That will no doubt happen again, putting the ball squarely in Sen. Ted Steven's (R-AK) court. Will he be able to get an equally clean bill through his Senate Committee on Commerce, Science and Transportation? Stay tuned. 02/10/05 TVBR #29
Revise and shine?
The goal of keeping government activities transparent requires that when ever more than two commissioners meet, it must be in an open forum observable by the public, a provision of the Sunshine Act. Commissioners from both parties serving at the FCC want the rules revised, saying it hampers their ability to deal with the complex issues which are regularly brought before them. The Commissioners say they still communicate, via memos, staff members, round-robin one-on-one meetings etcetera.
TVBR observation: Neither Powell nor Copps has been at all shy about explaining themselves to the public. Where Powell has run into icebergs is his distaste for letting the public tell him what they think.
02/10/05 TVBR #29
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Reach Media, Inc.
A Dallas-based media, broadcasting, internet and entertainment company targeting the African-American community. The hub of 'The Tom Joyner Show' - Needs to fill key positions: Director Affiliate Sales, Director TV Affiliate Relations, Ad Sales Account Executives and Sponsorship Sales. Be on the ground floor of the next exciting TV syndication program plus work with really great honest people. For more information, contact Amy Bert.
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©2005 Radio Business Report/Television Business Report, Inc. All rights reserved.
Television Business Report -- 2050 Old Bridge Road, Suite B-01, Lake Ridge, VA 22192 -- Phone: 703-492-8191
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