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Volume 23, Issue 37, Jim Carnegie, Editor & Publisher
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Wednesday Morning February 22nd, 2006
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TV News ®
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 Smoother sailing ahead for CCU and LIM
Clear Channel has weathered the tough year. The loss of inventory due to its less is more (LIM) initiative caused a 6% loss in radio revenue over the course of 2005, but the positive effect has been an increase in ratings, thanks to stations with less commercials and fewer breaks. Clear Channel's standing as the top non-Hispanic ratings gainer for 2005 was noted in a recent Lehman Brothers study, and Clear Channel was able to shed light on it in yesterday's investor conference call. CCU cited Miller Kaplan Arase & Co. number for January which showed a 6.3% revenue gain for Clear Channel in the applicable markets, against an industry average of 1.5%. Joel Hollander said that this was in keeping with its ratings gains, showing that the money was finally following the audience. CCU execs also noted that despite the losses in raw revenue for radio, upward pressure was successfully applied to pricing, creating higher yields per spot, a benefit which will help fuel growth in the year ahead. Further success was noted in the increasing acceptance of shorter spots. Execs said that in January 2005, :30s accounted for about 25% of spots sold, a number which increased to 35% in January 2006. CCU's Hispanic initiative has also been a strong performer, exhiting quick growth, especially in Atlanta, San Jose, Dallas and Orlando.
TVBR observation: Weathered a tough year is on the money but now the hard work begins as all clear eyes will be on 'LIM' by comparing the apples to apples. Every Wall Street analyst will examine every apple that goes into the basket as last year was not pleasant for Clear Channel defending their 'LIM' move. There is no looking back only forward with 'LIM' and what waits for the Q1 conference call when the apples to apples are compared.
 Moving into the future
When a company as big as Clear Channel moves, everyone else is pretty much forced to shift their position as well. CCU execs noted that their LIM initiative was widely imitated, if for no other reason than to remain competitive in the ratings wars. The result is better radio in general, which in turn draws more advertiser cash into radio in general and helps to float all boats. But there's more on the CCU drawing board - - or to put it another way, there will be further stress placed on items already on the drawing board. In particular, CCU execs noted the increased reliance by the automotive category in the Internet. There are many excellent opportunities provided by the Internet to bond with core listeners as it is, but CCU is looking to exploit its investment in compelling websites to tie in with dealers and bring them strongly back into the radio fold. It's looking for other ways to monetize its website investment. CCU is also looking for ways to exploit HD radio - - they said their use of side channels is already generating buzz among both listeners and advertisers. It's request for proposals for new electronic ratings measurement is also on track. The company has invited and accepted representatives from other companies to go over the proposals, an initial cut has been made, and surviving proposals will be closely examined. The goal: More consistent, reliable and timely tabulation of listeners.
TVBR note: Next Thursday a special panel on "How to be a Media Mogul : 2006" is scheduled at the up coming 4A's, which TVBR editors are attending and Mark Mays will be sitting on this panel but not with other radio executives. This time co-panelists are of the like of Stephen Burke of Comcast Corporation - Mike Shaw from ABC Television Network -Tim Armstrong at Google. The moderator: Randall Rothenberg from Booz Allen Hamilton. This should be lively discussion and yes TVBR and RBR will report the out come so stay tuned.
Watchdog keeps pressure on for decency bill
Focus on the Family is acutely aware that a bill which passed the House of Representative by a wide margin is languishing in the Senate. The Broadcast Decency Act has already worn the tags "of 2004" and "of 2005," and enjoys considerable support in the Senate, as well as having passed twice in the House. Where, FOF wants to know, is the action? Why is Ted Stevens (R-AK) sitting on it? Senior Analyst for Media and Sexuality Daniel Weiss said, "Broadcast indecency is a continuing problem that Americans want addressed and they are not being silent about it. They are complaining about greater numbers of programs than ever before. However, the mere threat of legislation hasn't proved to be a deterrent. Only the passage of meaningful legislation will change a corrupt broadcast culture. Despite this torrent of outrage about appalling shows airing during the hours when children are most likely to be watching television, Sen. Stevens maintains that there is not enough support for legislation to give the FCC more teeth to enforce the law."
TVBR observation: Stevens would love to pass indecency legislation. The reason he's sitting on it because he knows that any such legislation, no matter what, will immediately draw a Monopoly Community Chest card that says "Go to court. Go directly to court. Do not pass Go." It will not matter how carefully it is crafted. That's why he's willing to give family tiers a shot, along with Jack Valenti's anti-indecency educational initiative. Meanwhile, the wait for the FCC indecency NALs/exonerations promised before the end of 2005 continues...
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MN station finds reason to turn down pro-war ad
A St. Paul television station has found a reason to refuse a Progress for America Voter Fund ad supporting the war in Iraq. Among other things, the ad claims that the media is distorting the relevant facts. Hubbard's ABC Channel 5 KSTP-TV says that as far as its own station is concerned, the statement is not true. KARE-TV is one, which allowed it on and responded to disgruntled viewers by saying, "The station neither agrees nor disagrees with the messages in advertising, but one of our responsibilities is to be an advocate for freedom of expression and to provide a marketplace of ideas." According to the New Richmond News, another station running it was WCCO-TV ran it, but also ran a news story debunking some parts of it.
TVBR observation: Interesting turn-down reason. But KSTP's claim is itself a matter of opinion, and the public airwaves should not shut out differing points of view. We continue to believe that the best and safest policy is to run 'em all. If audience confusion creates a need to disassociate the station from something in a given ad, then disclaim away. And if the ad seems to stray from the facts, then follow WCCO's example and make it a news item. What we would not want to do is be forced to explain why we ran an ad for Interest Group X, then turned down one from opposing Interest Group Y or vice versa. If it meets community standards of decency, run it.
 Pax has been completely
bought out by NBC?
In the deal they did last fall when NBC and Pax settled, there's an 18-month window where NBC can buy the rest of Pax. We've heard from a source that is exactly what is happening. However, NBC spokesperson Julie Summersgill, speaking to NBC head of business development Bruce Campbell, said there was "no movement," but "it's still in the early days of making that decision. Obviously, we're interested in finding a partner, or if circumstances change with FCC rules, things could change." So if it were to go through, NBC would indeed have to turn around and sell big pieces of it to clear ownership/duopoly rules.
TVBR observation: Maybe NBC should take all of the assets of Pax's stations and duplicate what Sinclair sometimes does with its shared services/intellectual property method. Sinclair doesn't buy the station per se, they buy all of the intellectual property--the contracts, the logo, the copyright, the goodwill, the relationships with the syndicators, networks, etc. Then the physical assets are held under another corporation. That corporation agrees to let Sinclair exhibit the intellectual property and programming on that signal for ad infinitum.
 Reader tip: Try fiber optic
companies for signal relays
The FCC's must carry rule on full-powers read that you can deliver your 47 db signal to cable operators and satellite companies by any means other than just over the air-fiber circuit, T1, satellite, STL or microwave. One reader has been raving about offers he's getting from fiber optics companies to carry the signal (vs. traditional microwave relay). "We're doing a project where we're going to put a full power station on the air and we have to get the signal to another market and to DirecTV uplink for local. We went from 4,500 dollars a month quote for two circuits to 1,800 a month. A broker got a hold of my request and now six companies are beating each other up to get my business. Because of all of the excess dark fiber out there (not being used) and all of the competition for bandwidth and contracts, that when people are looking for paths from 10-30 miles, instead of liking at microwave, they should be letting the fiber industry fall on their swords and kill each other to try and get the business. This is an example of the marketplace, like the FCC has been encouraging, in action, actually happening."
TVBR observation: The last mile on each side of the hookup can be the longest in making the link (directly from the trunk to the station). Oftentimes the link can be done via regular copper and compression algorithms. See the maps: www.vtel.com and www.telcove.com.
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| Wall Street Media Business Report TM |
Clear Channel back on an even keel
Radio's 800-pound gorilla has bulled through its first full year of LIM with a 6% loss in radio revenue, both for Q4 and for the year - - a loss mitigated by gains in its outdoor business. However, the company is reporting signs that the fundamentals of its LIM initiative are beginning to pay off. Q4 broadcasting revenue numbers were 909.4M, down from 964.5M in 2004. For the year, broadcasting brought in 3.534B, compared to 3.754B in 2004. Outdoor worked the other way, jumping to 734.6M from 685.7M Q4, and from 2.666M from 2.447M for the year. The company as a whole reported a Q4 net income of 461.6M, after posting a massive loss in Q4 2004 based on a change in accounting principle net of tax. For the year, it took in 935.6M, also on top of a big 2004 loss resulting from the same accounting procedure.
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Ad Business Report TM
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 Long John Silver's to ask lottery winner
to become spokesperson for campaign
Although yet to be identified, the newest millionaire in the U.S. has already received a first commercial endorsement offer. Long John Silver's wants the winner of the largest-ever lottery to be the company's official spokesperson for its new Buttered Lobster Bites. "We think this is a first in the history of business," said Steve Davis, President of Long John Silver's. "We've selected a product spokesperson without even knowing the person's identity, age, gender, marital status or occupation. What matters to us is that the winner represents what our new Buttered Lobster Bites are all about - that everyone in America can enjoy a taste of the good life." If the mystery winner accepts the offer, Long John Silver's can add some fame to the record-setting fortune by offering the winner an opportunity to appear in advertising and marketing materials for the company's new Buttered Lobster Bites, which allow fast-food customers to enjoy a "taste of the good life." America's newest millionaire could be featured in television and point-of-sale advertising, on the company's web site and in public relations materials for print, radio and television. In addition, the lottery winner will have the opportunity to don the official Long John Silver's lobster costume and visit restaurants from coast to coast. The winner also would be given VIP treatment and flown by private plane to Long John Silver's headquarters to meet Davis and other company executives. The product is available for a limited time at participating Long John Silver's restaurants beginning 2/27.
Pharmasee TV signs with ABC New Media Sales
PharmaSee TV, the in-store pharmacy television network reaching more than 60 million consumers annually at over 300 locations and growing, has chosen ABC New Media Sales, a division of ABC National Television Sales, as its exclusive national ad sales rep. In the deal, ABC New Media Sales will handle advertising sales for PharmaSee TV's satellite delivered broadcast information content. Presented in a 'morning show format," PharmaSee TV reaches consumers at the point of care and point of sale. PharmaSee TV's Mike Schweitzer commented: "ABC New Media Sales has the expertise, contacts and track record to help PharmaSee TV heighten the brand awareness opportunities and value our network offers advertisers seeking to reach both shoppers and employees at pharmacies across the U.S. We look forward to working with ABC New Media Sales and its parent ABC National Television Sales to expand PharmaSee TV's important in-store advertising."
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| Media Markets & Money TM |
 SBS prizes a lack of interest
Radio and now television group Spanish Broadcasting System has brought some daylight to its balance sheet. Or more specifically, some K-DAYlight and then some more KDAI-light. It has taken 101M in proceeds from the recently closed sale of the LA-area stations to Styles Media to completely pay off a debit item affectionately referred to as Second Lien Credit Facility. CFO Joseph A. Garcia explained, "This is a significant step in our deleveraging plan, which reduces our interest expense by approximately $9 million and strengthens our balance sheet. Moving forward, we will continue to assess our financial position with the goal of maintaining a strong balance sheet and financial flexibility." The 100M term loan was opened 6/10/05 and didn't mature until 6/10/13. SBS easily beat the deadline to cash in on a 1% prepayment premium by paying off the loan on or before 6/10/06.
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| Washington Media Business Report TM |
McCain to offer two-pronged approach to cable reg
There is a great deal of pressure on the cable industry to provide a la carte channel options for subscribers, giving the subs control over both their bill and the content coming into their home. In return, he will attempt to offer participating cable operators regulatory relief from the existing patchwork quilt of local franchising authorities. According to the National Journal, McCain's proposed change to franchising would not eliminate local involvement, but would streamline it by creating a blanket approach at the state or national level. The same streamlined system would apply to new cable entrants, or new entrants into the MVPD business, such as telcos, as long as they, too, offer an a la carte menu option.
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| Internet Media Business Report TM |
Website streams TV from around the globe
Check it out- www.beelinetv.com . The site so far streams broadcasters from China, Croatia, Czech Republic, Belgium, Netherlands, USA, UK, Canada, Estonia, Finland, France, Mauritius, Guyana, Martinique, Polynesia, Germany, Austria, Greece, Israel, Hungary, Iceland, Italy, Japan, Korea, Kurdistan, Iraq, Latvia, Luxembourg, Malaysia, Brunei, Malta, Norway, Iran, Poland, Portugal, Brazil, Russia, Serbia, Spain, Nicaragua, Chile Argentina, Cuba, Andorra, Mexico, Peru, Chile, Venezuela, Sweden and Thailand.
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| Ratings & Research |
 Arbitron: Cell-phone-based radio measurement inherently biased
While The Smart Cell Phone, which The Media Audit plans to use in its new media measurement system, in the USA received a vote of confidence from RAJAR, Britain's industry consortium that oversees radio measurement (2/21/06 MediaMix), Arbitron released the results from studies of how consumers use cell phones that point out the weaknesses of a "dual-use" survey device such as a cell-phone-based radio meter. The findings indicate that consumer attitudes about cell phones and their resulting behaviors will introduce significant bias in the radio survey results, bias that is not seen with the Arbitron PPM system.
| Read More... |
Simmons' NCS receives MRC accreditation
Simmons Research announced its flagship survey, the National Consumer Study (NCS), has been awarded accreditation by the Media Rating Council (MRC), an association of leading television and radio broadcasters, cable networks and MSOs, print and Internet organizations, advertising agencies and advertisers as well as Industry trade associations that audits and accredits measurement services meeting the MRC's Minimum Standards. Having been accredited by the MRC Board of Directors, the Simmons NCS is now authorized to show the MRC Double-Check logo on its National Consumer Study. "After years of hard work, Simmons is proud to be awarded this accreditation for our National Consumer Study," said Chris Wilson, president and COO of Simmons Research. "The NCS is a thorough measurement of the American consumer; from the products we buy, the brands we prefer and where we buy them, to our attitudes, lifestyles and the media we consume. Our adherence to the MRC Minimum Standards earned this accreditation and our commitment to quality will continue to earn our clients support."
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| Stock Talk |
Another mixed bag with little change
Television stocks yesterday were mostly uneventful-even CCU after its conference call only gained a dime. CBS continues its ups and downs, losing 0.55 for the day; as with Radio Stocks, Jeff-Pilot was the winner, up 0.75.
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| Stocks |
Here's how stocks fared on Tuesday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Acme
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ACME
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3.50
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unch
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LIN TV
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TVL
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9.59
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-0.27
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Belo
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BLC
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21.45
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-0.19
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McGraw-Hill
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MHP
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54.35
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-0.41
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| CBS CI. B |
CBS |
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25.30
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-0.55
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Media General
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MEG
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50.14
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-0.66
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| CBS CI. A |
CBSa |
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25.26
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-0.51
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Meredith
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MDP
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55.37
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-0.18
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Clear Channel
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CCU
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28.20
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+0.10
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News Corp.
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NWS
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16.86
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unch
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Disney
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DIS
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27.16
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+0.25
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Nexstar
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NXST
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4.19
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+0.01
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Emmis
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EMMS
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16.69
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-0.32
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NY Times
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NYT
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28.25
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+0.06
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Entravision
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EVC
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7.09
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-0.13
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Paxson
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PAX
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0.90
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-0.02
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Fisher
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FSCI
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42.49
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-0.50
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Saga Commun.
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SGA
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9.89
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-0.11
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Gannett
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GCI
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62.23
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-0.52
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SBS
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SBSA
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5.73
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-0.15
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Gen. Electric
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GE
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33.36
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-0.25
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Scripps
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SSP
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48.48
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-0.51
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Granite
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GBTVK
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0.12
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-0.02
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Sinclair
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SBGI
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7.64
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unch
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Gray
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GTN
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8.42
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-0.08
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Time Warner
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TWX
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17.64
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-0.14
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Gray, C1. A
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GTNa
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8.20
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-0.05
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Tribune
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TRB
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30.60
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+0.09
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Hearst-Argyle
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HTV
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23.95
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-0.22
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Univision
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UVN
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33.75
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+0.08
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Jeff-Pilot
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JP
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60.12
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+0.75
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Wash. Post
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WPO
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746.01
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-3.97
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Journal Comm.
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JRN
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12.56
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-0.20
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Young
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YBTVA
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3.49
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-0.09
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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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Wall Street Media Business Report
Clear Channel back
On an even keel with Outdoor pulling the weight...
Ad Business Report
Yet to be identified
Long John Silver's to ask lottery winner...
Media Markets & Money
SBS prizes a lack of interest
Brings some daylight to its balance sheet...
Ratings & Research
Cell-phone-based research
Radio measurement inherently biased...
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More News Headlines
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NABOB fete
on the horizon
The 22nd Annual Communications Awards Dinner of the National Association of Black Owned Broadcasters (NABOB) and the NABOB Foundation is on the sked for Friday, 3/10/06 at 7:00 PM p.m., at the Marriott Wardman Park Hotel in Washington. Steve Harvey will preside over the ceremonies, which will honor Alicia Keys, S. Epatha Merkerson, Etta James, Dr. Maya Angelou, Albertina Walker and Robert L. Johnson. Queen of Soul Aretha Franklin will also be on hand.
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RBR - Radio News
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Radio kicks off first phase of campaign for HD Radio
The HD Digital Radio Alliance announced the launch of the first phase of a 200 million advertising campaign designed to accelerate the adoption of HD digital radio. 12 radio companies are airing specially created ads nationwide on more than 250 stations in the first 28 markets where HD Radio has been launched. The campaign is spearheaded by the HD Digital Radio Alliance and includes spots developed by longtime radio advertising specialists Dick Orkin and the Radio Ranch. In an unconventional approach, radio companies will devote a portion of the ad time to promoting the receiver makers, retailers and automakers who make early commitments to HD digital radio. In this first wave, some 25% of the spots highlight Boston Acoustics' Receptor Radio HD. Citing expanding popularity of HD digital radio broadcasts and the launch of HD2 multicast channels, Boston Acoustics lowered the price on its Receptor Radio HD model to 299 dollars, effective 2/1. The first wave - some 16 ads in both 30- and 15-second versions - introduce "Jake and Josh", Jake's new girlfriend, and "Big Announcer" in interrelated segments that highlight HD digital radio's crystal-clear, CD-quality sound and dramatically increased local entertainment choices. Listeners are referred to www.hdradio.com for more information.
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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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NAA investing 50M to push newspaper advertising
Not surprisingly, newspaper publishers think that newspapers are the most effective vehicle for advertisers to gain some ROI. The Newspaper Association of America is spending 50M to get that message out.
TVBR observation: Too bad the ads are only going into newspapers and online. Maybe they'd be more effective if they used broadcast to get the word out. We personally read the newspaper yesterday, part of it anyway (some minor travel prevented as thorough a reading as usual). Hmmmmm...(chinstroke chinstroke)... we can't remember a single ad, though. What was that on the sports page, tires? Yeah, probably - - there are usually some tires there. But we're not sure. Certainly no clue which tires, if any... Don't get us wrong - - we love the newspaper. It just doesn't often get us into a particular store to buy a particular item. How about you?
02/21/06 TVBR #36
If Ya Need One, Just For Laughs
Sent to the editors of RBR/TVBR a song all about the FCC. So we share, if you need a laugh this morning, FCC Family Guy
|  Watch It Here |
Senators want to fill in white space
From both sides of the aisle appear to be tripping over one another to get a bill on wireless broadband on its way into the law books. Although there are two bills up for consideration, they appear to share a common approach - - use of "white space" in the broadcast spectrum.
TVBR observation: Stevens goes to pains in his version to make sure that broadcasters already resident in this spectrum are protected and "...urges the FCC to further establish an interference complaint resolution process..." There's more than one key spectrum involved in this story, and that is the political spectrum. Support for this measure is far and wide, leaving no reliable port for opponents. It will be key for broadcasters to make sure safeguards are part of any final language should either of these measures proceed.
02/21/06 TVBR #36
Hedge funds are changing the
broadcasting lending landscape
They're the new kids in town - - and these are big kids with lots of money. Over the past year or two, hedge funds have discovered the radio and television station business. They've become aggressive players in the lending market and have made other lenders become more competitive as well. All in all, it's been good news if you've needed to borrow money for a broadcast acquisition or refinancing.
TVBR note: If you did not see this special report read issue
02/20/06 TVBR #35
Cable-friendly study not friendly
Retransmission consent is just one facet of the ongoing battle between broadcast and cable. Broadcast Investment Analysts (BIA) have entered the fray with a study of a report on the topic from Arlen Communications which was entered in to the Congressional record by the American Cable Association. BIA's take? "Simply put, many of the arguments and analyses presented in the Arlen Study either omit or mischaracterize true broadcast industry conditions and lack sound economic reasoning."
02/170/6 TVBR #34
K Street runs two ways
Lobbyists have found themselves in an unwelcome spotlight lately, joining the ranks of professions often held in disdain by the general public. But a recent article in (BWO) points out that oftentimes it is not a case of lobbyists tossing cash at politicians in return for some favor; rather it is politicians passing the hat amongst the lobbyists...
TVBR observation: The news here, ladies and gentlemen, is that we can expect free airtime for politicians to rear its ugly head once again as the lobbyist issue wends its slimy way through the halls of Congress....At any rate, NAB needs to stay alert - - there's a good chance that we'll have to defend against a bevy of hungry politicians making yet another attempt to pick broadcaster pocket! s this year.
02/15/6 TVBR #33
 LIN looking at CW and other options
You can add LIN Television CEO Gary Chapman to the list of group heads who are none too excited about the idea of paying reverse compensation for the privilege of getting a CW network affiliation.
TVBR observation: Chapman wasn't ruling out CW affiliations for his WB and UPN stations, most of which operate in successful duopolies with big-four affiliates, but he certainly isn't going to be crying if someone else wins the CW affiliation in one or more of his markets by agreeing to pay up in reverse comp. For Chapman's audio clip see
02/15/6 TVBR #33
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Local Sales Executive
TeleFutura 49 in Dallas seeking a motivated and dedicated individual to join local sales team. Minimum 2 yrs experience in TV, Radio or Cable Sales. Excellent opportunity for growth. EOE.
See TV Careers
Companies Looking
1. TleFutura 49
2. Local Sales Manger KQCA-TV
3. Top TV editor for TVBR
4. Sales executive for TVBR
See TV Careers
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