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TV News ®
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 TVB 2008 Conference challenges broadcasters
Chris Rohrs, TVB president, opened TVB 2008 in NYC yesterday to a packed room, touting an imaginary book that broadcasters should read called "TVB's Dangerous Book for Broadcasters." It is a time of danger and opportunity. "Indeed this is a time of radical change. Every media sector is being buffeted by sociological and technical changes...if I were a pilot, I'd tell you to keep your seatbelts fastened," said Rohrs, "If I were a motivator I'd say it's our time to power up localism and unlock the value of new platforms and new services, such as [TVB's] eport." Rohrs was also happy to note that more people are watching the television medium than ever. On GM's announcement last week that it would be shifting some 50% of its ad spend to digital media, Rohrs said if they go too far in that direction, too soon, it will do harm to that company. However, "We are transitioning to the perfect hybrid player for this new age...and that IS digital."
TVBR observation: How many times have we said it recently - that feet on the street is the key? Local audiences are the underlying strength of the television business. Localism is the value that your station has available to advertisers. That's true both of your broadcast signal and new digital platforms. Program local and sell local. See today's Ad Business Report section for more on that topic from a true guru, Jim Doyle.
It's the economy, stupid
At TVB yesterday, David Wyss, chief economist at Standard & Poor's, sketched an overview of where the economy is headed, followed by Paul Taylor, chief economist, National Automobile Dealers Association, who gave a focused look at the outlook for the automotive industry. Wyss also underscored the "fasten your seatbelt" approach to the economic outlook and said the next president will really have a big issue on his or her hands in funding entitlement programs (on top of our existing problems) such as social security and health care costs. "Either make cuts or raise taxes," he warned will be the necessity. Taylor noted the peak auto sales volume was 17.3 million units in 2000. Only 15.7 million are expected this year. What's selling best this year is crossover SUVs and very small cars. While total dealership ad spend peaked in 2003, spend per new light vehicle sold peaked in 2007. Taylor also noted that smaller dealers use less TV; larger ones use more. "This trend will continue as manufacturers will make dealerships larger in the next few years through consolidation plans. So the ad share will get larger. The ad spend share has changed a lot in the last few years, as well. For example in 1997, TV was 15.7% of the pie. In 2007 it was 17.4%. However, in that same period newspaper ads went from 52% to 26.7%.
 The digital transition: Opportunity knocks
At the TVB Conference in NYC Thursday, Borrell Associates CEO Gordon Borrell hosted a panel session with Nexstar CEO Perry Sook and NBC Local Media Division President John Wallace on how stations should capitalize on their local websites. Borrell cited data from his company's recently-released report, "The digital transition: Opportunity knocks," which polled 3,100 local websites and 195 local television websites. In 2007 local TV web revenues totaled 772 million dollars. In 2008, that number is expected to hit 1.119 billion; 1.410 billion in 2009 and 1.593 in 2010.
| Read more here |
NAB takes DTV education multilingual
The most versatile brokered ethnic broadcast or cable facility in the nation would have to be proud if they put forth as varied a linguistic menu as the National Association of Broadcasters has in its effort to reach out to every single resident of the US about DTV, regardless of their preferred language. "Our mission is to educate Americans of all ages and demographics about the transition to digital television," said NAB President/CEO David Rehr. "These multilingual materials provide yet another dimension for us to expand our educational outreach efforts to these audiences." The DTV literary lineup now includes translations into Arabic, Armenian, English, Farsi, French, German, Greek, Gujarati, Hindi, Hmong, Italian, Korean, Malaysian, Polish, Portuguese (Brazil), Russian, Spanish, Tagalog, Urdu and Vietnamese.
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| Wall Street Business Report TM |
Cash flow up at Ion
Ion Media Networks no longer has public stock, but it does have public bonds so it is still making public reports on its finances. Broadcast cash flow shot up 65% in 2007 to 98.3 million, owing to the company's streamlining and reorganization. However, that won't continue this year. "With our recapitalization process completed, we have turned our attention to building a sustainable business. 2008 will require greater investment to grow our network through higher programming spending, consumer marketing and digital capital expenditures," said Chairman and CEO Brandon Burgess. Ion is projecting that broadcast cash flow will drop to 10.4 million this year. Year-to-date, 2008 has shown unexpectedly difficult market conditions compared to plan, driven by three factors: a recessionary environment, a slow television commerce product pipeline, marked by a downturn in infomercial spending by real estate related businesses, and increased competition from other local stations making more time periods available for infomercials, the company said.
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Ad Business Report TM
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 Jim Doyle: We've got to
sell "Local local"
Jim Doyle, president, Jim Doyle & Associates, gave an insightful presentation at TVB, extolling the virtues of local selling and creating the right environment for your AEs. "We have a turbulent economy and a channeling Q1, but this is our time to focus on local...Television's power is amazing-some of our clients are more convinced of that than our sellers!" he said, just before proving that point with some powerful testimonials. "Local, local is our future," Doyle declared, noting that much of local spot is actually booked outside of the station's DMA. The key, he said, is to sell local inventory in the local market. Doyle itemized four ways to manage stations' transition to local selling:
| Read them here |
Focusing on digital
Omnicom Media Group announced the appointment of Matt Spiegel as CEO of Omnicom Media Group Digital (OMG Digital), effective April 1. In his new position, Spiegel reports to Daryl Simm, CEO of Omnicom Media Group, and will have global functional responsibility for digital across all OMG companies. Spiegel is founder and CEO of OMG search specialist Resolution Media. He will be succeeded at Resolution Media by Dave Gould who has been promoted from Senior VP to President. "We now measure our clients' digital spending in billions of dollars. Our tremendous growth in digital has been driven by fully integrating digital strategy into our client teams at OMD and PHD while at the same time leveraging our group's scale to develop functional excellence at an OMG level. This ensures that all our clients have access to the very best capabilities in digital. Matt has an outstanding profile to lead this effort, including an entrepreneurial spirit to get things done, the experience of over a decade in digital media, and an understanding of our clients' needs," said Simm.
Boomers continue to defy precedent
You don't exactly need to forget the significance of 18-49 and 25-54, but if you set the ceiling on your target demo as low as those two higher numbers, you may well be conceding 2 Trillion dollars worth of market power to those media outlets that continue to serve the boomer generation. A new survey from FH Boom and the National Marketing Institute has found that members of this group will not consider themselves old just because the calendar pegs the age at 70 years -- that goes for 74% of them, at any rate. 76% will be staying on top of new technology to keep in touch with family and friends, and 93% will be spending money on travel, entertainment and hobbies. The types of messages that will appeal to this group as it ages needs careful consideration, however. 86% will place practicality and pragmatism over trendiness and indulgence when making spending decisions. Suffice it to say that many aging boomers nevertheless think their best years are ahead of them, and that 22% of their annual expenditures will be of the discretionary variety.
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| NAB Daytime Planner |
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The following will be attending the NAB. Call or email to make your appointment in advance.
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BROKERS
Patrick Communications;
Larry Patrick, Managing Partner;
Susan Patrick, Managing Partner;
Greg Guy, Managing Partner;
Todd Wirth, Director;
office: 410-799-1740;
Larry cell 410-707-4602 Bellagio Hotel; jill@patcomm.com, larry@patcomm.com; susan@patcomm.com
Schutz & Company;
Bill Schutz; Bellagio Hotel;
office 757-258-8740,
Bill cell 757-880-9251;
wbschutz@aol.com
CONSULTING ENGINEERS
Cavell Mertz & Associates, Inc.;
Gary Cavell, Richard Mertz, Dan Ryson; Main Office 703-392-9090;
NAB-Team@CavellMertz.com
| Bankers | Brokers | Legal |
| Traffic Systems | Consulting Eng. |
Contact jcarnegie@rbr.com to get your company listed today. |
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| Media Business Report TM |
 RIAA applauds XM/Sirius wedding
Mitch Bainwol, Chairman & CEO of the Recording Industry Association of America (RIAA), has this to say about DOJ approval of the merger between satcasters XM and Sirius: "The merger's approval serves as a powerful validation that competitors should play by the same set of rules. On the heels of this decision, the logic for a performance right for terrestrial radio has never been clearer. Terrestrial radio -- unlike satellite, Internet and cable radio -- continues to reap special interest subsidies in the form of free government spectrum and an outdated exemption from compensating artists and record companies. It's time for that to change and for Congress to provide an economic marketplace where there is parity amongst all delivery platforms."
TVBR observation: Talk about tortured logic. A highly dubious and questionable decision to allow the only two satellite services in the USA to merge in violation of their founding principles is somehow twisted into a validation of performance royalties for radio? Please...
| Read more here |
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| Media Markets & Money TM |
Close encounter in Orlando
The transaction sending Mega Communications' WNUE-FM Orlando (licensed to Titusville FL) to Entravision for an estimated 24M is now a done deal, according to brokerage firm Media Venture Partners. The station will be cross-owned with Univision 26 WVEN-TV, serving Orlando from Daytona Beach.
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| Washington Business Report TM |
 Majoras confirms FTC exit
Federal Trade Commission Chair Deborah Platt Majoras has confirmed that her previously announced exit will take place as planned, effective 3/30/08. In making that announcement, she was able to congratulate her successor, current FTC Commissioner William E. Kovacic, who has already been tapped by President George W. Bush for the promotion. "Bill will be a terrific Chairman," she said. "Having served in several capacities at the agency -- most recently Commissioner and, previously, General Counsel -- he brings deep institutional knowledge, long-standing dedication to the mission, and great respect for staff. Bill is a free market champion and a highly regarded advisor to emerging competition authorities around the globe." Kovacic's FTC roots reach all the way back to 1979, with gigs in between at big DC law firm Bryan Cave, George Mason University School of Law and the Senate Committee on the Judiciary. Majoras is headed for Procter and Gamble. Her exit leaves the FTC with two-and-two party parity. The Senate has no say in Kovacic's promotion, but filling the seat left by Kovacic as he move into that vacated by Majoras does require Senate confirmation.
Dorgan disapproval resolution gets a vote
The Senate Commerce Committee has included "S.J. Res. 28, A joint resolution disapproving the rule submitted by the Federal Communications Commission with respect to broadcast media ownership" on the agenda of a mark-up session to be held next week. The resolution would prevent the FCC from enforcing the rule it passed 12/18/07 allowing cross-owned print/broadcast in-market combinations. Byron Dorgan (D-ND) has been the driving force behind the measure, a duplicate of his similar effort to derail the infamous Michael Powell 6/2/03 ownership rulemaking attempt. During the earlier effort, Dorgan received bipartisan support in the Senate, including a key alliance with Trent Lott (R-MS). A companion to the Dorgan measure stalled in the House, but it became a moot point when the Third Circuit sent most of the rulemaking back to the FCC for a do-over after hearing the Prometheus challenge to the rulemaking. Lott is gone, but Ted Stevens (R-AK) has taken his place as the senior cross-aisle Dorgan ally, and this time prospects for the measure passing in the House are much greater with Democrats now in charge.
TVBR observation: As was the case last time around, the Dorgan measure is concurrent with numerous court challenges, some of which argue that the FCC went too far in relaxing the rules; and others which argue it did not go nearly far enough. Sometimes we sadly think we will not have the pleasure of sitting in a comfortable chair with our grandchildren gathered around, telling them marvelous tales of the golden days when we covered the great controversy over media ownership. But on the plus side, we'll be able to have a vibrant discussion with the youngsters on the finer points of the ongoing battle to resolve one way or the other the issues set in motion during that summer day back in 2003.
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| Cable Business Report TM |
Comcast, BitTorrent come to accord
Cable giant Comcast, which has a major side business in the ISP field, has agreed to discontinue its practice of blocking the use of file-sharing service BitTorrent by its subscribers. Comcast has said that it's intent was not so much to block any particular internet service, but rather to manage the volume of traffic going out over its network. It has agreed to switch to a neutral system that does not discriminate between services by years end.
| Read more here |
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| Entertainment Business Report TM |
 FX signs for Universal Picture's 2008 movies
NBC Universal Domestic Television Distribution and News Corporation's FX Network announced a ground-breaking deal for FX to have the first network television window rights for most of the films from Universal Pictures' 2008 slate. The deal includes such titles as "The Mummy: Tomb of the Dragon Emperor," "Wanted," "Hellboy II: The Golden Army," "Death Race," "Forgetting Sarah Marshall," "The Express" and "Changeling." In addition to films from Universal Pictures, the deal also includes titles from Universal's specialty labels, Rogue Pictures and Focus Features. FX has secured the US basic cable rights to the film package. The deal grants FX the premiere exhibition of the films after the pay window.
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| Stock Talk |
Stocks fall on GDP report
Thursday was a downer on Wall Street after the Commerce Department reported that GDP grew at a feeble rate of 0.6% in Q4. The Dow Industrials fell 120 points, or 1%, to 12,302.
TV stocks were not spared. The TVBR Television Index was down 0.135, or 0.2%, to 85.973. Gannett was down 5% and ACME dropped 4.5%. Young, however, rose 12%. Clear Channel, which no longer owns any TV stations, but does own the Katz rep firms, rose 10% after winning a court injunction for banks to fund its buyout.
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| Stocks |
Here's how stocks fared on Thursday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
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Acme*
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ACME
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2.24
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-0.11
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Journal Comm.
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JRN
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7.61
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-0.07
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Belo*
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BLC
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10.88
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+0.06
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Lincoln Natl.
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LNC
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51.79
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+0.12
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| CBS CI. B* |
CBS |
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22.41
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-0.52
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LIN TV*
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TVL
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10.40
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+0.22
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| CBS CI. A |
CBSa |
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22.46
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-0.47
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McGraw-Hill
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MHP
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37.75
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-0.62
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Clear Channel
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CCU
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29.60
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+2.68
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Media General
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MEG
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14.34
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-0.23
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Disney
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DIS
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31.38
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-0.38
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Meredith
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MDP
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37.84
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-0.68
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Emmis
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EMMS
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3.63
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+0.12
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News Corp.
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NWS
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18.99
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-0.20
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Entravision*
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EVC
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6.60
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-0.02
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Nexstar*
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NXST
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6.09
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-0.11
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| Equity Media* |
EMDA |
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2.40 |
-0.08 |
Saga Commun.
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SGA
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6.32
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+0.42
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Fisher*
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FSCI
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31.24
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-0.42
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SBS
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SBSA
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1.80
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-0.01
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Gannett
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GCI
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28.91
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-1.53
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Scripps
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SSP
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41.93
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-0.25
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Gen. Electric
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GE
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36.83
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-0.30
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Sinclair*
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SBGI
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9.47
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+0.01
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| Google |
GOOG |
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444.08
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-14.11
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Time Warner
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TWX
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14.27
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-0.12
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Gray*
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GTN
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5.86
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-0.13
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Wash. Post
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WPO
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650.00
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-10.40
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Gray, C1. A
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GTNa
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7.04
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unch
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Young*
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YBTVA
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0.83
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+0.09
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Hearst-Argyle*
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HTV
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20.97
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-0.28
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-
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-
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- |
-
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-
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*Component of the TVBR Television Index
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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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Ad Business Report
We've got to sell Local
The key, to selling local inventory in the local market, 4 tips are...
Media Business Report
RIAA applauds XM/Sirius
Talk about tortured logic. Highly dubious and questionable decision to allow the merger...
Media Markets & Money
Close encounter in Orlando
Transaction sending WNUE-FM to Entravision now a done deal...
Washington Business Report
Majoras confirms FTC exit
Exit will take place as planned...
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Stations for Sale
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 Market your Stations For Sale
in our daily epapers.
Contact
Jim Carnegie
jcarnegie@rbr.com
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TV Media Moves
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 Promotion at Nexstar
Cheryl Olive has been named Director of Sales for Nexstar's largest duopoly market, WBRE-TV (NBC) and WYOU-TV (CBS) Wilkes Barre/Scranton, PA. Olive joined Nexstar in 2002 as the Local Sales Manager at KTAL-TV Shreveport, LA and was promoted to General Sales Manager in 2004.
Nogawski heading
CBS syndication
John Nogawski has been named President, CBS Television Distribution. Roger Madden gets the new post of Sr. Exec. VP and will report to Nogawski. CBS Television Distribution had been without a single chief since the death of CEO Roger King in December (12/10/07 TVBR #239). Nogawski will now oversee all creative, business and administrative operations for CBS Corporation's domestic syndication company, whose powerhouse shows include "Wheel of Fortune," "Jeopardy!," "The Oprah Winfrey Show," "Entertainment Tonight," "Judge Judy" and "Dr. Phil."
Joining Univision
Glenn Dryfoos is joining Univision Communications as Senior Vice President of business affairs. He will be based in Miami and oversee business affairs for the company's television, radio and online operations. Dryfoos had been Exec. VP of Business Affairs for Telemundo.
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More News Headlines
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Making nice
at the Times
Having come to terms with his once-dissident shareholders, New York Times Company Chairman Arthur Sulzberger Jr. is being downright friendly in introducing his newfound friends to fellow shareholders. In his cover letter inviting shareholders to the company's April 26th annual meeting, Sulzberger says he is delighted to have four new nominees to the board of directors, including the two nominated by the Harbinger hedge fund and Firebrand Partners.
| Raed more here |
TVBR observation: Don't look for any fireworks at this annual meeting, despite the dismal state of the US newspaper business. It should be quite a different story two days earlier at the Media General shareholders meeting. CEO Marshall Morton, with the support of the founding Bryan family, is in an outright battle to keep three Harbinger nominees off the board of directors (3/20/08 TVBR #56).
P&G signs to
be sole sponsor
USA Network announced that Procter & Gamble will present the premier of the new scripted series "In Plain Sight" as sole sponsor on Sunday, June 8th with limited commercial interruptions. Shot on location in and around Albuquerque, NM, In Plain Sight will premiere with a 76-minute episode, followed by 11 one-hour episodes. Mary McCormack stars as Mary Shannon, a US Marshal working in the highly secretive branch of the witness protection program who relocates Federal Witnesses -- many of them who are career criminals, and many who are innocents that had the misfortune of witnessing a crime. They all have one thing in common - someone wants them dead. Mary's job is to see that doesn't happen, while at the same time attempting to manage her own dysfunctional family. The series also stars Frederick Weller, Lesley Ann Warren, Nichole Hiltz, Paul Ben-Victor, Cristian de la Fuente and Todd Williams ("Tilt," "Third Watch"). In Plain Sight comes from NBC Universal Cable Studios. The series was created and written by David Maples, who serves as executive producer alongside Paul Stupin.
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RBR - Radio News
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What happens next?
Getting a judge in San Antonio to order giant banks to fork over 20 billion bucks is one thing - getting the cash in hand is another.The six banks who have balked at funding the 26.7 billion bucks buyout of Clear Channel Communications by Thomas H. Lee Partners and Bain Capital vow to fight on against the lawsuits filed against them in Texas and New York (3/27/08 RBR #61), insisting that they are without merit. They filed yesterday to try to move the case from the Texas state courts to federal court. The temporary restraining order against them issued by a judge in Clear Channel's home town doesn't specifically say they have to ante up the cash, but does require them not to interfere with closing of the deal. And since they are on the hook to provide the financing, that's essentially the same thing. But the banks are expected to put their own lawyers to work trying to get that restraining order struck down or held at bay.
RBR observation: Just how are the banks blocking the deal while, according to the private equity firms and Clear Channel, pretending to negotiate credit terms?
| Read more here |
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TVBR Radar 2008
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Television News you won't read any where else. TVBR--First, Accurate, and Independently Owned.
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Peacock jumps the gun
Jeff Zucker said at NATPE that expensive, showy Upfront presentations are a thing of the past, or at least should be, so NBC Universal is going low-key this year. And while that may be the case, NBCU is also getting a jump on the competition.
TVBR observation: When you get down to it, the Upfront has really been about buzz. Ad buyers make commitments to a new show because people think it is going to be a hit, based on a pilot or, sometimes, just the star-power of the lead actor or actress. The truth is, buzz is often wrong. Got to read more here in TVBR's complete analysis
03/27/08 TVBR #61
Hi ho, hi ho, it's off to court we go
Talks on final financing terms for the 26.7 billion bucks going private buyout of Clear Channel have officially broken down. Restraining order against banks Oked, at 3:49am this morning, 3/28/08, a Market Watch alert reported; "Texas judge granted a temporary restraining order for banks not interfere with or thwart consummation of a planned $19 billion buyout.
TVBR observation: This court battle should be familiar territory for one of the banks. Wachovia, has already had a legal fight over providing financing for a big broadcasting deal - coincidentally, the buyout of Clear Channel Television. Got to read more here in RBR's complete analysis
03/27/08 TVBR #61
Decency watchdogs go on Fox hunt
Both the Parents Television Council and Morality in Media think the FCC fine against Fox for pixilated programming on a 2003 reality program called "Married by America" is totally justified -- if anything, according to PTC, the fine was paltry. Neither organization can believe that Fox is digging in and fighting the assessment.
03/27/08 TVBR #61
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TVBR.com Classifieds
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Account Executives
WDCW-TV, Washington's CW has two immediate openings. First, for entry-level AE and Second, need an experienced New Business local AE. Highly motivated self-starters who have the ambition to be successful apply. Winning attitude is important. Requirements include ability to develop long-term relationships and have strong closing skills. Must be well-organized and possess excellent presentation skills. EOE To apply see TV Careers below.
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