|
TV News ®
|
 NAB has a new suit of disclose
Broadcasters have been extremely leery of the new enhanced disclosure rules that the FCC has been intent on installing as a measure to promote localism. The NAB has decided to take it a step beyond protesting the rules to the FCC -- it's taking its case to the DC Circuit. NAB intends to argue that the rules are (you'll never guess) "arbitrary and capricious; contrary to law; and unconstitutional." NAB Executive Vice President Dennis Wharton (pictured) explained, "America's broadcasters have no quarrel with serving the public interest. Indeed, public service is the lifeblood of our business, and the most successful radio and television stations are laser-like in their commitment to community, whether that be in the form of local news, raising millions for charities, or saving childrens' lives with Amber Alerts. Our concern with the new FCC rules are their scale and scope, and the burden involved in complying with this new mandate, particularly for smaller stations. Free, local broadcasting serves a unique role in the fabric of American life, and we would submit that the impact of these regulations would negatively impact the ability of many broadcasters to continue to serve our communities."
TVBR observation: The big question is what the FCC would do with the massive pile of data it is seeking to collect once it has it in house. There's going to be a channel that syndicates home shopping fare generated from a distant location, without a single iota of local programming. That may not be a recipe for soaring to the #1 position in the local ratings, but last we heard there was nothing illegal about it. And somebody in the local community must be using the station, or it'd have to find some other type of programming. So if the FCC will not have the force of law to strip such a programmer of its license, what's the point of wasting everybody's time, and the taxpayers' money, collecting a meaningless mountain of data?
MAGNA Global issues On-Demand Quarterly
Magna Global updated their on-demand models to account for the most recently completed quarter, and modified their historical data slightly to incorporate new information about the past and extended our forecasts through 2012. Their year-end 2012 forecast for DVR subscriber households is 42.7 million (36.3% of TV households), up from 24.6 million (22.1% of TV households) as of the end of the Q4 2007 By 2012, they expect that true VOD (distinct from the simulated VOD offered by DBS providers DirecTV and EchoStar) will reach 61.9 million households (approximately 52.7% of television households). This compares with 36.0 million VOD households (32.3% of total TV households) at the end of the fourth quarter of 2007. As of the end of December 2007, they estimate that 63.9 million households had broadband access out of 116.8 million total households. They estimate that internet access was enjoyed by approximately 72.4 million households by the end of the Q4 2007. MAGNA expects that total broadband access will rise to cover 87.5 million households by the end of 2012.
|
|
|
 Closing table was set,
but banks didn't show
Despite some disagreements with the banks over exactly what the terms of their loans would be, Clear Channel Communications says in an SEC filing that it was set to go to closing on its 26.7 billion bucks buyout last Thursday, as were the would-be buyers, Thomas H. Lee Partners and Bain Capital, but that the banks were a no show. In the same SEC filing, Clear Channel says it can't estimate a closing date and warns Wall Street that "a closing may not occur." Meanwhile, Clear Channel is keeping its bond tenders active in case this stand-off is resolved. The tenders for two bond issues had been set for last Thursday, but have now been extended to this Friday (4/4) - and, of course, they could be extended again and again. Clear Channel's board of directors has also put on hold any Q1 dividend payment to shareholders. The company said that was requested by TH Lee and Bain because the buyout closing had been delayed. "In support of their continued efforts to close the merger, the Company has agreed to honor that request," Clear Channel said.
TVBR observation: We will be very surprised if this is resolved quickly. After 16 months of preparation to take the company private, Clear Channel is now in a state of limbo.
| Read what Clear Channel told the SEC about the failed closing |
Unclear closure for Clear Channel
Clear Channel has issued a statement reiterating its desire to bring its 26.7B privatization deal to a satisfactory conclusion. However, the latest in a long series of hurdles -- a platoon of skittish bankers -- has shed new doubt on the transaction, and Clear Channel admitted that it cannot say when, or even if, the deal will close. A release at the investor relations section of the company's database gave a run-down of the current difficulties, said, "The closing of the Merger has not occurred." Then, under a forward-looking statement disclaimer, it noted a number of factors which could potentially prevent the deal from being consummated. There are 10 of them, as a matter of fact, listed under the click.
| Ten reasons the Clear Channel deal may fail to close |
TVBR observation: The more skittish the legal department, the more inclusive the forward looking statement clauses may be in company releases. Perhaps this is a reason: The per-share offer to take the company private in 39.20; as of 3:30PM EDT, the most recent sale on the NYSE was for 28.26.
 State AGs petition
FCC on XM/Sirius
A coalition of state attorneys general, led by Mark Dann of Ohio, have fired off a letter to FCC Chairman Kevin Martin and the other four commissioners expressing their dismay with the DOJ approval of the merger of satcasters XM and Sirius. They asked that Martin apply a sterner public interest test than did DOJ. The AGs said they were disappointed that the DOJ did not put conditions in place to remedy the anticompetitive aspects of allowing the merger to go through. "Given that the FCC looks to a broader public interest standard than does the DOJ in fashioning its decisions in this context, we urge the FCC to address these important issues and give due consideration to the many concerns of the states." They promised to help the FCC arrive at that conclusion. Joining Ohio's Mann are AGs from Connecticut, Iowa, Maryland, Mississippi, Missouri, Nevada, Oklahoma, Rhode Island, Utah and Washington. Meanwhile, the Seattle Times also weighed in against the ruling. Citing DOJ's contention that XM/Sirius compete with various different types of media, the newspaper noted that so do those various types of media cited, "...without the privilege of a monopoly." It said the "potential loss of competition in this relatively new medium does not bode well for robust, consumer-friendly programming."
|
|
|
|
| Wall Street Business Report TM |
Diller wins first round with Malone
The Delaware Chancery Court has handed Barry Diller a big victory, ruling that he can go ahead with his plan to split IAC/InterActive Corp. into five publicly traded companies. After a five-week trial, the court ruled that the proxy agreement under which Diller votes Liberty Media's majority voting stake in IAC does not give Liberty the right to veto the proposed split-up. Liberty Media Chairman John Malone is incensed that the super-voting power his company owns in IAC, although voted by Diller, would be diluted to ordinary voting rights in the four new companies to be formed. Despite the court's ruling, Malone could still try to get the IAC board of directors to reject Diller's plan, or the companies could negotiate a deal to spin part of IAC off to Liberty Media in exchange for its stock.
|
|
|
|
|
Ad Business Report TM
|
 "Project Reinvention"
committee to meet soon
At the TVB last week, CEO Chris Rohrs and EVP Abby Auerbach noted to attendees that Kathy Crawford, MindShare President/Local Broadcast (present and sitting in the first row), continues to help spearhead the "Project Reinvention" effort announced at the recent AAAAs in Orlando (3/10/08 RBR #48)--and that she and the committee will be meeting with broadcasters in the near future to start hammering out the details. Crawford tells TVBR/RBR they are only missing one member of the team...
| Read more here |
A course well charted in rough seas
The TVB last week was better than ever, with presentation after panel session focusing on how to make more money, more efficiently in this digital age. As we mention in the related story below, non-profit TVB is dedicated to solving industry problems before they get cumbersome-ePort is but one shining example. EVP Abby Auerbach in three months has taken the system all over the map-from broadcasters to software vendors to agencies. This is a system that will handle regular air time, non-air time, digital multicast channels, website inventory and mobile streaming inventory. The big push there was training of staff, more agency and station participation and for agencies and customers to specifically request electronic ordering. It's in the industry's hands now and in all probability it will keep adding more and more stations. The growth curve is steep.
| The other big takeaway |
|
|
|
|
| NAB Daytime Planner |
 |
The following will be attending the NAB. Call or email to make your appointment in advance.
|
|
BROKERS
John Pierce & Company LLC;
John L. Pierce, Jamie Rasnick;
office 859-647-0101, John cell 859-512-3015; Jamie cell 513-252-1186, Bellagio Hotel; jpierce@johnpierceco.com; jrasnick@johnpierceco.com
Serafin Bros., Inc.; Glenn Serafin;
office 813-885-6060; cell 813-494-6875;
Planet Hollywood (formerly the Aladdin) Hotel; gserafin@tampabay.rr.com
Kozacko Media Services;
Dick Kozacko, George Kimble;
office 607-733-7138; Dick cell - 607-738-1219; George cell - 520-465-4302; Bellagio Hotel; rkozacko@stny.rr.com, GeorgeWKimble@aol.com
Frank Boyle & Co; Frank Boyle,
office 203-377-3030;
Frank cell 203-249-07818;
Rio Suites Hotel;
fboylebrkr@aol.com
Schutz & Company;
Bill Schutz; Bellagio Hotel;
office 757-258-8740,
Bill cell 757-880-9251;
wbschutz@aol.com
|
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
CONSULTING ENGINEERS
Cavell Mertz & Associates, Inc.;
Gary Cavell, Richard Mertz, Dan Ryson; Main Office 703-392-9090;
NAB-Team@CavellMertz.com
BANKERS
Dover Capital Partners, LLC
Kirk Warshaw, General Partner
Peter Ottmar, General Partner
Office: 401/723-1063, x109
Peter's Cell: 401/639-4958
Bellagio Hotel; kwarshaw@dovercap.com;
pottmar@dovercap.com
| Bankers | Brokers | Legal |
| Traffic Systems | Consulting Eng. |
Contact jcarnegie@rbr.com to get your company listed today. |
|
|
|
|
| Media Markets & Money TM |
Price revealed in the Deep South
Alexandria LA and Panama City are down there, as USA latitudes go, and those DMAs are where television properties have been sold as part of the portfolio trimming exercise being conducted by Media General. In this case, Hoak Media is the buyer. Now we know the price. Hoak will pay a cool 60M for WMBB-TV Panama City FL (ABC) and KALB-TV/NALB Alexandria LA (NBC/CBS). Media General is still peddling two more stations, For Media General, it whittles down its for-sale inventory to just two stations: WCWJ-TV Jacksonville FL (CW); and WNEG-TV Toccoa GA (Indy, satellite of WSPA-TV Spartanburg SC).
|
|
|
|
| Washington Business Report TM |
 An unusual agree
to decree arrangement
Generally, when the FCC and a licensee enter into a consent decree, at dispute is a matter that is both serious and often in a gray area -- like foe example a matter of indecency enforcement where the rules are subject to interpretation. Public file issues are usually a bit more cut and dried -- either the files are in compliance of not. But it is precisely a public file issue which has the FCC and Bilbat Radio agreeing to decree for WHHO-AM and WKPQ-FM, both of Hornell NY. The precise nature of the dispute was not revealed in documents released by the Commission, but the terms are pure consent decree style. The two parties agree that battling this out to the bitter end "would be time consuming and require a substantial expenditure of public and private resources." So Bilbat admits to no wrongdoing, and gets both licenses renewed. It will also donate 10K per station to the US Treasury and institute various policies and undertake to train and educate its staff, to assure that its public files are in compliance in the future.
|
|
|
|
| Ratings & Research |
Consumer confidence of Young Chinese soars
as U.S. consumer confidence sinks
The China Market continues to thrive with double-digit increases in both retail sales and GDP. Unprecedented growth, combined with some extra cash found in red envelopes from the Chinese New Year, has helped to fuel young Chinese consumers' confidence in the first quarter of 2008, according to BIGresearch's latest China Survey of over 4,500 young Chinese consumers between the ages of 18-34. When it comes to economic outlook, 74.3% of Chinese consumers ages 18-34 say they are confident/very confident in their economy, a stark contrast in comparison to their American counterparts as only 33.2% say the same. 71.1% of Chinese would definitely/probably invest in the Chinese stock market, vs. the 53.1% of American consumers who have the same feelings towards the U.S. stock market. 70% of Chinese car owners indicate gas prices have greatly impacted their spending, compared to 83.7% of American car owners. 20.9% of Chinese car owners say they will take fewer shopping trips as a result of fluctuating gas prices; 36.5% of American consumers are likely to do the same.
|
|
|
|
| Monday Morning Makers & Shakers |
Transactions: 2/11/08-2/15/08
Not only was there not much action during this week, and not only was the total value of the action spectacularly unimpressive, almost 75% of that value was invested by one noncommercial radio group (see below). Looking ahead, if anybody is waiting to see reports of a February trading breakout, we strongly advise that you do not hold your breath. The more astonishing fact? Two weeks in this young year contained even less trading value than this one did.
| - |
Total |
Mkts 1-50 |
Mkts 51-100 |
Mkts >100 |
Unrated |
| AMs |
5 |
0 |
0 |
0 |
5 |
| FMs |
7 |
0 |
1 |
2 |
4 |
| TVs |
0 |
0 |
0 |
0 |
0 |
| Total |
12 |
0 |
1 |
2 |
9 |
| -Type |
Trans |
Stations |
Value |
| Radio, 1 mkt |
11 |
12 |
4.615M |
| TV, 1 mkt |
- |
- |
- |
| Rad-TV, 1 mkt |
- |
- |
- |
| Radio, multimkt |
- |
- |
- |
| TV, multimkt |
- |
- |
- |
| Rad-TV, multimkt |
- |
- |
- |
| Totals |
11 |
12 |
4.615M |
©2008 Radio Business Report, Inc. All rights reserved.
Radio Trans. of the Week: EMF strikes again
It seems there is almost always room to consider using the headline "EMF strikes again" -- we refer of course to noncom Religious outfit Educational Media Foundation (it also had the #2 transaction this week). It's latest target is another FM that will exit the commercial world: Pamplin Broadcasting's KTSL-FM, serving Spokane from Medical Lake WA. The price is 2.15M.
TV Trans. of the Week: All quiet
Well, not quite. Newport Television LLC/Providence Equity Partners Inc. parked a number of television stations its in the process of acquiring from Clear Channel into a trusteeship, not the type of transaction we keep track of in this space.ing LLC. Robert Behar is both among the sellers and the buyers in this 100M transaction.
|
|
|
|
| Stock Talk |
A bad news Friday
A weak government report on consumer spending and a profit warning from JC Penney sent stock prices lower on Friday. The Dow Industrials were off 86 points, or 0.7%, to 12,216.
TV stocks were down across the board. The only gainer on our list was SBS, which is a radio company with only a single TV station. The TVBR Television Index was down 4.089, or 4.8%, to 81.884. Equity Media had a tough day, down 14.6%. The company disclosed in an SEC filing that its lenders have signed a forbearance agreement through April 18th for defaults under the company's credit agreement. Young Broadcasting, which has been trading well below a buck, was down 12.1% for the day.
|
|
|
|
| Stocks |
Here's how stocks fared on Friday
| Company |
Symbol |
Close |
Change |
Company |
Symbol |
Close |
Change |
|
Acme*
|
ACME
|
|
2.19
|
-0.05
|
Journal Comm.
|
JRN
|
 |
7.41
|
-0.19
|
|
Belo*
|
BLC
|
|
10.69
|
-0.19
|
Lincoln Natl.
|
LNC
|
|
51.00
|
-0.79
|
| CBS CI. B* |
CBS |
|
21.94
|
-0.47
|
LIN TV*
|
TVL
|
|
10.15
|
-0.25
|
| CBS CI. A |
CBSa |
|
21.94
|
-0.52
|
McGraw-Hill
|
MHP
|
|
37.35
|
-0.40
|
|
Clear Channel
|
CCU
|
|
29.20
|
-0.40
|
Media General
|
MEG
|
|
14.01
|
-0.33
|
|
Disney
|
DIS
|
|
31.00
|
-0.38
|
Meredith
|
MDP
|
|
37.35
|
-0.49
|
|
Emmis
|
EMMS
|
|
3.52
|
-0.11
|
News Corp.
|
NWS
|
|
18.74
|
-0.25
|
|
Entravision*
|
EVC
|
|
6.45
|
-0.15
|
Nexstar*
|
NXST
|
|
5.93
|
-0.16
|
| Equity Media* |
EMDA |
|
2.05 |
-0.35 |
Saga Commun.
|
SGA
|
|
6.08
|
-0.20
|
|
Fisher*
|
FSCI
|
|
30.56
|
-0.68
|
SBS
|
SBSA
|
|
1.87
|
+0.07
|
|
Gannett
|
GCI
|
|
28.54
|
-0.37
|
Scripps
|
SSP
|
|
41.23
|
-0.70
|
|
Gen. Electric
|
GE
|
|
36.61
|
-0.22
|
Sinclair*
|
SBGI
|
|
8.96
|
-0.31
|
| Google |
GOOG |
|
438.08
|
-6.00
|
Time Warner
|
TWX
|
|
13.87
|
-0.40
|
|
Gray*
|
GTN
|
|
5.44
|
-0.42
|
Wash. Post
|
WPO
|
|
641.00
|
-9.00
|
|
Gray, C1. A
|
GTNa
|
|
6.59
|
-0.45
|
Young*
|
YBTVA
|
|
0.73
|
-0.10
|
|
Hearst-Argyle*
|
HTV
|
|
20.48
|
-0.49
|
-
|
-
|
- |
-
|
-
|
*Component of the TVBR Television Index
|
|
|
|
|
|
Bounceback
|
 We want to
hear from you.
This is your column, so send your comments and
a photo to tvnews@rbr.com
|
|
|
Below the Fold
|
Ad Business Report
"Project Reinvention"
Committee to meet soon ePort electronic commerce system, already being used by a bunch...
TVB: A course well charted
In rough seas, TVB is dedicated to solving industry problems before they get cumbersome...
Media Markets & Money
Price revealed in Deep South
Part of the portfolio trimming exercise being conducted by MG...
Washington Business Report
FCC, An unusual agree
To decree arrangement...
|
|
|
Stations for Sale
|
 Market your Stations For Sale
in our daily epapers.
Contact
Jim Carnegie
jcarnegie@rbr.com
|
|
|
More News Headlines
|
AFTRA splits with SAG
Strained relations between two unions representing performers came to a head Saturday as the board of the American Federation of Television and Radio Artists (AFTRA) voted to bargain on its own with TV and film studios, rather than jointly with the Screen Actors Guild (SAG). "AFTRA's primary goal is to improve and protect the working lives of performers. During the past year, AFTRA has fought hard and expended an enormous amount of time, energy and resources to maintain the integrity of our Phase One joint bargaining process with the Screen Actors Guild, so we could sit across the table from the industry with total and unequivocal unity. Unfortunately, SAG leadership has made this impossible. For the past year SAG leadership in Hollywood has engaged in a relentless campaign of disinformation and disparagement, culminating in a recent attempt to decertify an AFTRA daytime soap opera. As a result of this continued and ongoing behavior by SAG leadership, which at its core harms all working performers and the labor movement, we find ourselves unable to have any confidence in their ability to live up to the principles of partnership and union solidarity," said AFTRA National President Roberta Reardon.
VoterVoter.com launched
WideOrbit has launched a new consumer service called VoterVoter.com, which allows ordinary individuals to purchase TV time to promote their favorite candidates or causes. VoterVoter.com will file the necessary paperwork with the FEC as an independent expenditure. Independent expenditures by an individual are not limited by the typical 4,600 dollar annual contribution limit to a campaign, which means that passionate individuals will be able to invest unlimited amounts of money promoting their candidates. VoterVoter.com empowers users to select or create the ad message of their choice and have that message air on TV stations around the country without having to know anything about buying media time. Several hundred thousand dollars of TV ad insertion orders have already been received by VoterVoter.com in its pre-launch phase. "WideOrbit's deep understanding of the broadcast advertising business, and our position as the leading TV advertising management system, enables us to effectively provide this service on a nationwide basis," said Eric Mathewson, Founder and CEO of WideOrbit and VoterVoter.com. "VoterVoter.com makes it possible for individuals who truly care about specific candidates, issues, and causes to easily access the power of broadcast television."
Zimmerman
wins Pep Boys
Zimmerman Advertising has been named agency of record for The Pep Boys - Manny, Moe & Jack, the nation's leading automotive aftermarket retail and service chain with 562 stores in 35 states and Puerto Rico. Pep Boys spent 85 million last year in measured media.
|
|
|
TVBR Radar 2008
|
|
Television News you won't read any where else. TVBR--First, Accurate, and Independently Owned.
|
The digital transition:
Opportunity knocks
Local ad spend on all local websites has jumped considerably-from 2.7 billion in 2004 to 7.6 billion last year. Broadcast TV had 9.5% of that share in 2007, up 7.6% just three years before. Newspaper shares were down considerably.
TVBR note: Borrell noted a few common threads for the best-producing local sites and their management. We have outlined the steps necessary in this report.
03/28/08 TVBR #62
TVB 2008 Conference
challenges broadcasters
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.
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. Also see - Jim Doyle: We've got to sell "Local local" in this issue of TVBR
03/28/08 TVBR #62
Next at CC, Hair Cut time
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.
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 observation here in RBR.
03/28/08 RBR #62
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
|
|
|
TVBR.com Classifieds
|
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.
Hard finding that key person
to fill the important position at your organization? Try TVBR Classifieds.
|
 |
|
|
|
|
