Volume 21, Issue 67, Jim Carnegie, Editor & Publisher
Tuesday Morning April 6th, 2004

TV News ®

Minority groups turn up the heat on Nielsen
With Local People Meter (LPM) ratings set to debut this Thursday (4/8) in New York, civil rights groups who claim that the ratings methodology undercounts minority viewers are mounting a final push to get Nielsen to delay LPM implementation. A full page ad that appeared Monday in the New York Times and other newspapers declared: "New York to Nielsen: Don't Count Us Out." The group also began running spots on New York radio stations voiced by actor Edward James Olmos. | Full Story Click Here |

How's that IPO doing?
If you bought the three broadcasting IPOs that hit Wall Street last year, the results so far have been a mixed bag. As of the end of Q1, you would have made money on Journal Communications, but lost on Citadel Broadcasting and Nextstar Broadcasting.
TVBR observation: What's next? There's only one broadcasting IPO pending today. That's a proposed $184 million stock offering by Liberman Broadcasting, which hasn't yet been put on the offering calendar. Liberman has one thing going for it that none of last year's IPO companies did - - it's in the hot Hispanic media sector - - both radio and TV. | Full Story Click Here |

Dugan exits EchoStar
EchoStar announced that President and COO Michael Dugan has decided to retire, effective April 30th. He will join the board of directors and service as a senior advisor to the satellite TV company. Dugan, who began his EchoStar career 14 years ago as VP of Engineering, was called the "chief architect of the technological foundation" of the company. Without his current day-to-day responsibilities, Dugan plans to accelerate efforts to make his ranch in northern Colorado available to disadvantaged children.


Hendery leaving YES Network
The New York Yankees' YES Network announced that long-time cable executive Leo Hindery is stepping down as its CEO. He will continue to be the company's non-executive Chairman. "With the Yankees season just under way and with the very successful Cablevision arbitration recently behind us, I believe that now is the ideal time to turn my attention to other challenges," Hindery said in a statement. Hindery had headed YES since its launch in 1999.

Analyst sees XM stock as fully priced
XM Satellite Radio's stock price got yet another boost last week when it announced that its subscriber count at the end of Q1 had surpassed 1.68M (4/2/04 RBR Daily Epaper #65). But with the stock above his price target of $29, analyst David Kestenbaum has lowered his rating on the stock from "Buy" to "Neutral," based on the recent price run-up and the lack of any other near-term catalyst to drive the stock higher. Rather, Kestenbaum is advising investors interested in a satellite radio play to take a look at Sirius before the New York Auto Show this month (4/9-18). "While XM may make some important announcements at the show (particularly with Honda, Nissan and Toyota), we believe Sirius could make the more dramatic move with Ford and/or DaimlerChrysler," the analyst told clients. "Sirius needs a positive deal with a large auto manufacturer because its distribution channel is currently much narrower than XM's." while XM reported 320,000 new subscribers in Q1 - - beating the Wall Street consensus of 260,000-270,000 - - Kestenbaum doesn't expect Sirius to deviate from his estimate of 90,000 when it reports Q1 numbers later this month, due to its more limited distribution channel.


TVBR News Analysis

Whose code would it be, anyway?
Following repeated calls from Capitol Hill and the FCC, the NAB has reluctantly embraced the idea of at least looking at the idea of bringing back a "code of conduct" for broadcasters. But unlike the old days of the NAB Radio and TV Codes, several of the nation's largest broadcasters are not NAB members today. So, we wonder, what good is a code that's embraced by some, but not all major broadcasting companies? TVBR observation: What good is a "Code of Conduct" going to be if it's only going to apply to some, but not all of the nations largest broadcast companies?
| Full Story Click Here
|


Adbiz ©

Subway breaks new campaign
Subway has debuted two new spots as part of their new "Split Screen" commercial series. Highlighting the brand's latest healthy offerings, Subway Fresh Salads, Split Screen was created by Fallon Worldwide and feature an effect in which, on the right half of the screen, someone describes their favorite Subway salad, while on the left side, the food is being built. Additional Split Screen commercials are in the works. The new campaign continues the "Eat Fresh" message with the line, "It's what to eat when you want to eat fresh." The first two Split Screen commercials include "Willpower" and "Superstitious," with WNBA player Lisa Leslie. The Split Screen series is airing on high-profile national network and cable stations. In addition to situation comedies, dramas and entertainment shows including American Idol. MediaCom continues to handle Subway's planning and buying.

Kerry loses top media man
Jim Margolis, John Kerry's top media adviser who has worked for the campaign for the past two years, issued a statement that said he and his firm Omnicom's GMMB will no longer be the creative force behind the Kerry ad campaigns. He said his departure was based on unacceptable contract changes, read: fee disputes. His firm will still be involved with buying for the campaign but will not be involved in creative. "Unquestionably, being a part of Senator Kerry's presidential campaign has been one of the most important efforts our firm has ever undertaken," Margolis said in his statement. "The stakes couldn't be higher for our country and we have been honored to help produce the spots and assist in developing the strategy that helped him secure the Democratic nomination." GMMB had handled the lion share of the $10.5M the Kerry campaign has spent on advertising from its inception through February of this year.

CBS to sponsor African Americans In Advertising's "Media Network Exchange"
African Americans In Advertising (AAIA) will hold a networking forum entitled "Media Network Exchange" on 4/12. The panel will be sponsored by CBS and held at Black Rock in NYC. | Full Story Click Here |

GM to double dealer ad contributions
CIBC World Markets reports in its monthly sales conference call held last week, a GM exec confirmed that the plan to double dealer contributions to the local advertising co-op applies to its network of dealers nationwide. As of 4/1, GM was asking its dealers in New England to double the amount of ad dollars it pays into the co-op to $200 per vehicle, with GM's contribution of 25% unchanged. This brings the total dollar contribution to the co-op to a record $250 per vehicle, up from $125. According to CMR ad figures, GM's co-ops spend 55% of their budgets on local TV, with the rest mainly on newspapers (35%) and some on radio (7%), although TV skews higher as a percentage of the mix in the more expensive, large market DMAs. Based on GM's 2004 sales expectations, CIBC estimates GM's co-ops should spend an incremental $600M annualized overall on advertising and $325M incremental on Spot TV. Assuming all other factors equal, CIBC estimates this increase would represent 1.4% growth in overall Spot TV.


Media, Markets & Money tm

Gannett buys an up-and-down business
Gannett Broadcasting has added a new division, which you could say is thousands of miniature TV stations. But, it's an up-and-down business model - - TV screens carrying news and programming snippets, plus advertising of course, in elevators. Gannett didn't disclose what it paid to acquire the assets of Captivate Network Inc., but the buyer is upbeat on the acquisition's potential. "anyone who has used an elevator with one of Captivate's screens knows just how effective this company's product is," said Craig Dubow, President and CEO of Gannett Broadcasting. Captivate currently has screens in elevators in approximately 400 buildings in North America, with more than 1,000 buildings under contract.


Washington Beat

More fines for broadcasters
The cops at the FCC have had their ticket book out again. They've fined WOCA-AM Ocala, FL for antenna lighting and fencing violations and KUOL-AM San Marcos, TX for violating the main studio violation rule. | Full Story Click Here |


Programming

History Channel eats crow
Responding to a hailstorm of criticism for airing "The Guilty Men," in which a theory was given credence that then-Vice President Lyndon Johnson was behind the assassination of President John F. Kennedy, The History Channel has reviewed the show and found it wanting. A panel of three historians reported back to the cable channel that the conspiracy theory was without foundation and that the show should not have aired. | Full Story Click Here |

USA Today to launch "Sport Page"
USA Today Live, a division of USA Today, announced the development of a weekly half-hour TV show, "USA Today Sports Page." Media consultants Sverdlik Brady have been retained to represent the company for distribution as well as for ad sales. Sverdlik Brady will work directly with USA Today Live managing editor and former reporter/anchor Lauren Ashburn as she oversees this initiative. " USA Today Sports Page will showcase the same kind of feature stories which have contributed to the enormous popularity of the USA Today Sports section," said Ashburn. "We will create a quality television program with uplifting stories from the world of sports that the entire family can enjoy." The show will be produced at USA Today Live studios in McLean, VA. A search for anchors, reporters and an executive producer is underway. National distribution with cable and broadcast networks and national advertising sponsorships are also being developed.

Another reunion for CBS
Reunion shows have been so successful for CBS that you just knew they couldn't pass on bringing the "Dick Van Dyke Show" cast back together. It's being billed as the "159th episode" of the classic series, picking up on the lives of Rob and Laura Petrie - - Dick Van Dyke and Mary Tyler Moore - - 40 years later. All surviving cast members have agreed to appear on the show, which is scheduled to air May 11th.

NBC unveils Summer reality series
NBC announced "For Love or Money" (premieres 6/7 at 9P) "Who Wants to Marry My Dad?" (6/14 at 10P) and "Last Comic Standing" (6/8 at 8P) are among the Summer reality shows returning to the net. New reality strips include "Next Action Star" (6/15 at 8P) and "Come to Papa," starring comedian Tom Papa and his day-to-day life and family (6/3 at 8:30P). Next Action Star runs 10 episodes. Throughout the course of the series, competitions will test contestants' physical and psychological prowess as well as their acting ability and star potential. The final pair--one male and one female--will be chosen to star in a television movie (tentatively titled "Hit Me"), produced by renowned producer Joel Silver.


Transactions

N/A KTGF-TV Great Falls MT from MMM License LLC, a subsidiary of Max Media LLC to The KTGF Trust, Paul T. Lucci, Trustee. Seller owns KFBB-TV Great Falls, and acquired KTGF in group deal. Has received temporary waiver and is aggresively trying to sell station. [File date 3/10/04.]


Stock Talk

Stocks still on a run
Stock prices rose again Monday on Friday's positive jobs report. The Dow Industrials moved up 88 points, or 0.8%, to finish at 10,558.

Most TV stocks rose with the rising tide. Disney and Entravision each gained 2.1% as the top performers.


TV Stocks

Here's how stocks fared on Monday

Company Symbol Close Change Company Symbol Close Change

Acme

ACME

$7.91

+$0.15

Meredith

MDP

$52.14

+$0.52

Belo

BLC

$28.61

+$0.26

Media General

MEG

$67.98

+$0.73

Clear Channel

CCU

$43.42

+$0.08

News Corp.

NWS

$36.88

+$0.20

Disney

DIS

$26.50

+$0.55

Nexstar NXST $11.88

+$0.18

Emmis

EMMS

$24.35

+$0.01

NY Times

NYT

$45.62

-$0.17

Entravision

EVC

$9.45

+$0.19

Paxson

PAX

$3.91

+$0.01

Fox

FOX

$28.67

+$0.53

Sinclair

SBGI

$13.12

-$0.08

Fisher

FSCI

$50.94

+$0.36

Saga Commun.

SGA

$19.98

+$0.07

Granite

GBTVK

$1.66

-$0.05

Scripps

SSP

$103.57

+$0.57

Gannett

GCI

$90.99

+$0.85

Time Warner

TWX

$17.32

+$0.09

Gen. Electric

GE

$31.58

+$0.52

Tribune

TRB

$51.75

+$0.33

Gray

GTN

$15.50

-$0.15

LIN TV

TVL

$23.80

-$0.12

Gray, C1. A

GTNa

$14.70

-$0.04

Univision

UVN

$34.05

-$0.22

Hearst-Argyle

HTV

$27.05

-$0.09

Viacom, Cl. A

VIA

$40.56

+$0.21

Jeff-Pilot

JP

$55.89

+$0.07

Viacom, Cl. B

VIAb

$40.34

+$0.34

Journal Comm.

JRN

$19.64

-$0.10

Wash. Post

WPO

$930.80

-$9.21

Liberty Corp

LC

$46.95

+$0.25

Young

YBTVA

$18.20

+$0.23

McGraw-Hill

MHP

$77.40

-$0.32

- - - -

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More news Headlines

NAB Day Time Planner


The following brokers will be attending the NAB. Call or email to make your appointment in advance.
-------------------------------Glenn Serafin, Aladdin Hotel,
cell 813-494-6875
gserafin@compuserve.com

Gordon Rice, Gordon Rice Associates, Bellagio, 843-884-3590,
gordon@gordonriceassociates.com

Elliot Evers, Media Venture
Partners, Ltd. , 415-391-4877,
sosullivan@mediaventurepartners.com

Ted Hepburn, The Ted Hepburn Company, 561-863-8995,
tedhep@aol.com


Terry Greenwood, Bellagio,
410-931-3362,
terry.a.greenwood@verizon.net

Dick Kozacko, Luxor,
office 607-733-7138, cell 607-738-1219,
rkozacko@stny.rr.com

Jim Ortega, Satterfield & Perry,
cell 303/913-1888, ortegamedia@hotmail.com

Ron Swanson, Satterfield & Perry,
cell 570-881-5274, Bellagio Hotel, ronaldkswanson@aol.com

Cliff Gardiner, Clifton Gardiner & Company, 303-758-6900, cliff@cliftongardiner.com

Larry Patrick, Patrick Communications, 410-740-0250, Bellagio, michele@patcomm.com

Media Services Group,
Bellagio Hotel, mediaservicesgroup.com

Zoph Potts, Snowden Associates, Bellagio, 252-940-1680 cell 252-717-3772, zophsnowden@earthlink.net

John L. Pierce, John Pierce & Company LLC, Mirage Hotel,
859-647-0101, cell 859-512-3015, jpierce@johnpierceco.com

Frank Boyle, Bellagio, 203/969-2020,
fboylebrkr@aol.com

Todd Fowler, American Media Services, Bellagio, 843-972-2200, tfowler@ams.fm


TVBR Radar 2004
Click on these issues for TV News you won't read any where else. TVBR--First, Accurate, and Independently Owned.

Broadcast boon in the
battleground states?
The 2004 election cycle begins hot, heavy and early. However, that is no guarantee that your station will reap any benefit. As in most businesses, the key to collecting political ad dollars is location, location, location. TVBR observation: The battlegrounds are the states and the money follows as the charts inside charts the color of money. The states where Campaign 2004 is essentially being fought, and therefore these are the states which stand to benefit from a political ad windfall. Number one - California and yes the Da state - Florida. Recommendation: Plan your inventory now. 04/05/04 TVBR #66

Accountability 2004: The History of Radio Ratings, Part 9
Looking at the diary method
Personal seven-day diary: This has been Arbitron's technique since it started measuring radio in 1968, and Nielsen used it back in the 40's. Listening from diaries returned, well - Pros: Gets multiple days of listening - - better establishes listening patterns. Cons: Arbitron is having to work ever harder to keep response rates at acceptable levels. Publisher note: Everyone is having PM syndrome. 04/05/04 RBR #66

NAB forms programming task force
It will examine options which include the possible establishment of a new NAB Code of Conduct. TVBR observation: Phil Lombardo had the best quote: "Broadcasters have a long history of being responsive to local communities that we serve.." To some extent this is true but now we have two sectors of the medium to serve and one master of a potential code - Radio and TV. Both similar but light years apart in community service since TV has yet to experience radio's voice program tracking outside the major markets and to experience the one owner in the market place as radio. Remember Minot, ND? 04/02/04 TVBR #65

Chairman Powell's
message to broadcasters
took the anti-indecency torch from outgoing Democrat Gloria Tristani when he joined the Commission, and often seemed to be waging a single-handed battle. But recently, has grabbed a torch of his own and has been charging ahead stride for almost stride with Copps. Editor's note: Powell's recommendation: "...I want to strongly encourage you to develop and adopt a new voluntary code to guide your actions in the same spirit you have in years past..." Question on years past - how many years past Chairman Powell? Besides the Janet Super Bowl raw naked action, what really has driven radio and television to get into such a mess? Part of the answer and especially in radio and maybe in television soon is - The medium is killing itself from the inside out. 04/02/04 TVBR #65

The History of Radio Ratings, Part 8 Accountability 2004
We have seen where the ratings game started and why now we are currently in the accountability stage for the future of the radio business and methodology for your market. But what are the relative strengths and weaknesses of each system? That's what this article will attempt to offer. It's written by a twenty-year-plus veteran of radio audience measurement, albeit with neither of the current "players."
04/02/04 RBR #65

TVBR mole report: Broadcasters look ready to self-police
An RBR source who attended the NAB Summit said that the broadcast industry seems bent on self-policing. Michael Copps repeated his oft-stated desire to pursue license revocation hearings, and mentioned Infinity/Viacom's WKRK-FM Detroit as a possible target. TVBR observation: Just as well the press was not invited - - we've heard most of this stuff before. And we thought we were part of the family! (sniff) Dog and Pony - period. Bet now NAB wishes they would have charged for it or had the event in Vegas.
04/01/04 TVBR #64


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