Volume 21, Issue 8, Jim Carnegie, Publisher
Wednesday Morning January 14th, 2004

TV News ®

Goldman Sachs cuts
Viacom estimates
As companies prepare to report to Wall Street on their final numbers for 2003, Goldman Sachs analyst Richard Rosenstein has lowered his Q4 numbers for one of the largest media companies, Viacom. However, he's still bullish on the company for 2004. | Full Story Click Here |


Q4 revenue estimates

Television

2%

Radio

2%
Cloud hanging over TV Azteca
Just as Mexico's TV Azteca is in the midst of an effort to establish a strong presence in the United States with Azteca America, the company has been rocked by a scandal which has securities regulators in both Mexico and the US investigating its Chairman and largest shareholder, Ricardo Salinas Pliego. | Full Story Click Here |

Chairman Powell seeking indencency reversal
Now with new hearing about to get underway in the US House of Representatives at a session entitled "Can you say that on TV? An Examination of the FCC's Enforcement with Respect to Broadcast Indecency", Michael Powell asked yesterday his fellow FCC commissioners to re-examine the non fine for U2's Bono remark at the Golden Globes Awards broadcast of last January.

Chrisanthopoulos out at Pappas
Just three months after becoming President and COO of Pappas Telecasting (9/25/03 TVBR Daily Epaper #188), Peter Chrisanthopoulos is out the door. The company announced that the executive had resigned, effective December 30th. The duties that Chrisanthopoulos had assumed from Chairman and CEO Harry Pappas are now back with Pappas.


Broadcasters' Foundation to honor Quello
Retired FCC Commissioner Jim Quello will be presented with the 2004 Chairman's Award by the Broadcasters' Foundation at its 2004 Broadcast Pioneer Awards breakfast April 21st during the NAB Convention in Las Vegas. Quello served on the FCC for 23 years, including a stint as Acting Chiarman, and has been actively associated with the foundation since 1972. Six other broadcasters will be honored with the foundation's Pioneer Awards: Bill Burton of the Detroit Radio Advertising Group, the Carter Family of Kansas City, retired ABC TV Network President James Duffy, retired NBC TV Network President Pierson Mapes, Emmis CEO Jeff Smulyan and William Turner, the retired head of Forward Communications.

Peabody deadline is tomorrow
Entries for the 63rd Annual George Foster Peabody Awards, recognizing outstanding achievement and excellence in television, radio and Internet programming, must be postmarked by Thursday, Jan. 15, 2004. Entry forms are downloadable from the Peabody web site: www.peabody.uga.edu.

For the record: Last-minute underwriter switch
Our story yesterday was the first public report of the pricing of last week's sale of 15.8M shares of Univision stock to cash out Clear Channel as a shareholder (1/12 TVBR Daily Epaper #7). However, there was a last-minute change in underwriters. Rather than the original underwriters of Citigroup Global Markets and UBS Securities, Bank of America Securities came in with a bid to take over and buy the entire block of stock, so BofA ended up being the sole underwriter.


2004 Predictions

It's all in the cards
3. The Knight of Digits: IBOC
In-band, on-channel (IBOC) radio promises to bring crystal-clear sound quality to radio. Technological tweaking continues, particularly in the night-time AM area, but for the most part it's ready to go, and is gradually getting off the ground. Will competition from the two big satellite radio services hasten the adoption of this new consumer tech? For our less-than-serious supernatural take on this issue... | Full Story Click Here |


Adbiz ©

Staples to debut Super Bowl ad
For the first time ever, Staples will run a TV ad during the Super Bowl, the company announced. The 30-second spot created by Martin/Williams Advertising, will promote how Staples makes buying office products easy for its customers. Staples' new tagline "Staples. that was easy." was introduced 3/03 as part of a national ad campaign supporting a new brand promise: Staples makes buying office products easy. The campaign has included national network and cable television advertising and aired during the Major League Baseball playoffs, prime time premiers, Monday Night Football, the NFL on CBS and other events. The new brand positioning has been prominently featured in print, online, radio and in Staples stores, catalog and on Staples.com. Creative for the TV spot will be revealed the week of 1/19.

Ketchum names Molinari President of public affairs unit
Ketchum announced today the appointment of Susan Molinari as president of its public affairs unit, Ketchum Public Affairs. Molinari is a former US representative from New York and will continue to serve as chief executive officer of Ketchum's lobbying firm, The Washington Group, where she recently was named chairman. "Susan is the ideal person to take on this role," said Raymond Kotcher, CEO and senior partner of Ketchum. "She possesses a rare combination of real world experience in national politics and media, as well as superb business leadership and management skills -- a necessary combination for providing informed, strategic, high-quality counsel to public affairs campaigns. To find this skill set in one individual is extraordinary and a genuine benefit to existing and prospective Ketchum clients."


Media, Markets & Money tm

Barrington leaps into ownership
Jim Yager's Barrington Broadcasting was formed to own and operate television stations, but so far it's only been involved in the operations side, running stations in eight markets for Chelsey Broadcasting Corp. That's all changed, as it announced a pair of deals that will give it the deeds to three stations. | Full Story Click Here |


Career Ads

Bi-lingual Ad Sales Manager / General Manager
Spanish affiliate in Nashville seeks bi-lingual experienced Ad Sales manager or General Manager. Opportunity to launch and grow new affiliate and represent station to the community. Editor's Note: The person must be a "hands on" manager and self-motivated. Click TV Careers for contact, vital information and other career openings.

Need to find that career minded radio or television executive, use our Career Ad section read by 15,000 media executives every morning. To place your marketing position click on submit jobs and follow the easy instructions.

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Questions? Contact me CJCarnegie@mediaheadhunters.com


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Washington Beat

Sirius video plans attract serious scrutiny
The FCC is going to take a long hard look at plans from satellite audio provider Sirius Satellite Radio regarding its plans to add limited video distribution to its program offerings. There is some question as to whether or not such service would fall within the allowable use of its current license, according to a Reuters article.
| Full Story Click Here
|

Clarification: House indecency panel in subcommittee
Billy Tauzin (R-LA) will not be presiding over an investigation into broadcast indecency, as TVBR stated yesterday (1/13/04 TVBR Daily Epaper #7), although we expect he'd be welcome to sit in on the session if he wishes. It'll be held under the overall umbrella of his Energy and Commerce Committee. The 1/28/04 session entitled "Can you say that on TV? An Examination of the FCC's Enforcement with Respect to Broadcast Indecency" will actually be held by the Subcommittee on Telecommunications and the Internet. Its chair is Fred Upton (R-MI), with Ed Markey (D-MA) heading up the loyal opposition as ranking member. The following Wednesday, 2/4/04, the same subcommittee will again be dealing with FCC-related business, holding a session entitled "The Current State of Competition in the Communications Marketplace. Witness lists are not yet available for either session.


Engineered for Profit

Two from Rohde & Schwarz elected as SMPTE officials
Rudy Nizansky and Tom Jordan of Rohde & Schwarz have both been elected to serve as officials of SMPTE (Society of Motion Picture and TV Engineers). Niznansky, Marcom Manager, for Rohde & Schwarz, Inc. - the company's U.S. subsidiary, has been elected Governor of the Eastern Region, and Tom Jordan, Rohde & Schwarz regional sales manager and SMPTE Fellow, is victorious in his bid for Financial VP. Gavin Schutz, SMPTE President, announced the election results. As Governor of the Eastern Region, Niznansky will represent the New England, Philadelphia, Rochester and DC chapters of SMPTE for a two-year term. He will serve alongside current Governor Arthur Cosgrove. Jordan assumed the two-year position of SMPTE Financial VP on 1/1 as his term as Conference VP ends. Jordan's contributions to the industry have earned him the distinction of being named as a SMPTE Fellow, an honor reserved for exceptional proficiency in the motion picture, television, or related industries.

Nexstar, Entravision
standardize with Avid iNEWS
Avid Technology announced Nexstar Broadcasting Group and Entravision Communications will standardize their newsroom computer operations on Avid's iNEWS system. Nexstar will install iNEWS systems over the next two years in all 24 of its O&O TV stations. In addition, KLDO-TV of Laredo, TX, is the first of five Entravision-owned stations to transition to Avid iNEWS with the purchase of a 10-seat system. The remaining four Entravision TV stations will install iNEWS systems over the next three years. "Next year, iNEWS will be the central application in the newsroom at KLDO, and at four more Entravision television stations by 2006," said Jorge Friguls, director of Television News Operations at Entravision. "From the initial assignment to the final rundown of the news story, our journalists will manage the entire news programming process with iNEWS. The system is also going to be our central connection point for peripheral devices like character generators and video servers."


Programming

Frog net leaps into movies
Executives of the WB have decided that made-for-TV movies are what's needed to boost viewership. To that end, the network has established a new movie division and hired Tana Nugent Jamieson from sister-net TBS to head it. "Broadcast television has largely abandoned the long-form genre to cable, particularly with content directed at younger viewers," WB co-CEO Jordan Levin said in a statement. "We have had success with theatrical presentations and have decided that this would be a great time to expand into original production." Jamieson's first project will be a movie based on the "American Girls" books. The WB acquired the TV rights to the books last year.

NBC and E! battling over SNL
Under a deal with NBC's syndication arm, the E! cable network regularly airs edited versions of old "Saturday Night Live" episodes. But when E! announced plans to air a series of five specials featuring clips from the SNL episodes, NBC cried foul - - claiming that would violate the terms of the licensing agreement. Episode one of the planned series didn't air 1/11 and it looks like the whole thing is on hold, after NBC went to federal court to try to block the series. E! claims it is within its rights, but is weighing its response to the lawsuit.

Dolly to host CMT video awards
Straight from Dollywood (which she owns, of course), Dolly Parton has been signed to host the "CMT Flameworthy 2004 Video Music Awards." The awards show for Country videos, with voting by fans, will air April 21st on Viacom's CMT. Shania Twain will also perform live and other acts will be added.

BET launching "College Hill" reality strip
BET announced the launch of a new reality series, "College Hill." 13 episodes, debuting 1/28 at 9P, will revolve around eight students at Southern University in Baton Rouge. The coeds will represent all sides of the social spectrum. Tracey Edmonds of Edmonds Entertainment Group is producing. BET is also offering a "watch and win" sweepstakes and will give away $25K in scholarships to college-bound or already enrolled students.


TVBR Stats

Generation gap evident in campaign news picks
According to a Pew Research Center study, 48% of all Americans used Local TV news as a source of information on political campaigns in 2000. Although that number has dropped to 42% in 2004, it is almost exactly the same now as it was then for those aged 50 and older: 49% still use local TV. | Full Story Click Here |


Stock Talk

Greenspan disappoints Wall Street
Less than enthusiastic comments about the US economy by Federal Reserve Chairman Alan Greenspan put traders in a selling funk on Tuesday. Also, a couple of tech companies delivered disappointing Q4 results, worrying some about the just-begun string of quarterly reports. The Dow Industrials fell 58 points, or 0.6%, to finish at 10,427 and other broad market indices fell even more.

Media stocks moved lower with the market. Viacom's Class B shares fell 2.2% and Class A 2.6% after Goldman Sachs analyst Richard Rosenstein cut his Q4 estimates (see TV News). Pure-play TV groups were particularly hard-hit. Granite was off 4.4%, ACME dropped 3.8%, Gray declined 3.4% and Young fell 3.1%. One of the few gainers, however, was Nexstar, which moved up 2%.


TV Stocks

Here's how stocks fared on Tuesday

Company Symbol Close Change Company Symbol Close Change

Acme

ACME

$8.85

-$0.35

Meredith

MDP

$49.59

-$0.28

Belo

BLC

$27.55

-$0.27

Media General

MEG

$63.77

+$0.12

Clear Channel

CCU

$46.22

-$0.25

News Corp.

NWS

$36.80

-$0.54

Disney

DIS

$24.68

-$0.20

Nexstar NXST $14.10

+$0.27

Emmis

EMMS

$27.20

+$0.06

NY Times

NYT

$47.30

+$0.36

Entravision

EVC

$10.98

-$0.07

Paxson

PAX

$4.17

-$0.07

Fox

FOX

$28.73

+$0.29

Sinclair

SBGI

$14.35

-$0.19

Fisher

FSCI

$50.00

-$1.22

Saga Commun.

SGA

$18.70

unch

Granite

GBTVK

$1.75

-$0.08

Scripps

SSP

$93.25

-$0.26

Gannett

GCI

$88.68

+$0.23

Time Warner

TWX

$18.54

-$0.10

Gen. Electric

GE

$31.61

-$0.48

Tribune

TRB

$50.26

-$0.44

Gray

GTN

$14.95

-$0.52

LIN TV

TVL

$25.50

-$0.31

Gray, C1. A

GTNa

$14.97

-$0.35

Univision

UVN

$37.89

-$0.26

Hearst-Argyle

HTV

$28.81

-$0.12

Viacom, Cl. A

VIA

$42.33

-$1.11

Jeff-Pilot

JP

$49.32

-$0.06

Viacom, Cl. B

VIAb

$42.30

-$0.97

Journal Comm.

JRN

$18.19

+$0.15

Wash. Post

WPO

$853.00

-$11.27

Liberty Corp

LC

$46.99

-$0.41

Young

YBTVA

$19.87

-$0.63

McGraw-Hill

MHP

$70.69

+$0.54

- - - -

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Competing Media

Radio revenues off
the cutting edge?

Some analysts are saying that the nature of the current USA national economic recovery may leave radio running behind the pack, instead of its usual place at the head of the rebound charge. According to a Reuters report, a major reason is the failure of employment and consumer confidence levels to rise with gains in GDP. | Full Story Click Here |


Upped & Tapped

Carey heads to
Tampa-St. Pete
Scripps has tapped Bill Carey to become VP/GM of WFTS-TV (Ch. 28, ABC) Tampa-St. Petersburgh, succeeding Sam Stallworth Jr., who died last month (12/4/03 TVBR Daily Epaper #236). Carey had been News Director of Scripps' WXYZ-TV (Ch. 7, ABC) Detroit. That position is being filled by Andrea Parquet, who had been News Director of Scripps' WMAR-TV (Ch. 2, ABC) Baltimore.


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

It's all in the cards
2. The Ace of Trades: Station trading
Two factors tended to suppress station trading last year. One was natural, the other decidedly unnatural, in the capitalistic sense. The natural suppression was mostly on the radio side, as the industry demonstrated that it was basically mature in terms of ownership consolidation. The unnatural trading suppressants were.. Editor’s Note: Part 1 see below. 01/13/04 TVBR #7

Clear Channel creating
local advisory boards

In an effort to counter critics who accuse it of "cookie cutter" programming,.. TVBR observation: Crank up the PR machine.
01/13/04 TVBR #7

Clear Channel sets traffic expansion
For a couple of years, Clear Channel's expansion of its in-house traffic reporting service was in low gear. But it looks like a shift into a higher gear is beginning - - and the unit will be going after non-Clear Channel affiliates to directly challenge Westwood One's Metro/Shadow operations. Editor’s Note: The Winner is.. The one with best Content….Presentation…. and Marketing to potential affiliates. Love a good marketing fight…if we see one. 01/13/04 RBR #7

It's all in the cards
Card #1 - King of Clusters-Broadcast Ownership
In the modern deck of Media Tarot cards, the King may hold up to eight towers (in the larger suits), but unless it's a really big suit, he still cannot have audio and video together.It you are dealt this card in a reading, and it is crossed by The Chairman card, the King may well hold eight audio towers, two video towers, cable wires and - - just to top it all off - - he'll even be holding a scroll, like the Gotham Times. 01/12/04 TVBR #6

XM's traffic and weather advertising opportunities - buyers pitched.
Not long after XM Satellite Radio announced it will be debuting weather and traffic channels for 15 cities, and making its music channels commercial-free, we found out from one RBR source that the company let go three of its sales team last week (1/8 and 1/9), 01/12/04 RBR #6

XM Traffic - "Will it work?"
We asked former Westwood One CEO and current Infinity Radio President/COO Joel Hollander and Westwood One CEO Shane Coppolla for their observations on XM Weather and Traffic.
01/12/04 RBR #6

Emmis: Coal mine canary
chirps a happy tune
Jeff Smulyan could not help but repeat himself several times over, saying that calendar year 2003 may well have been the best ever in the history of Emmis Communications. TVBR Observation: The Glass of Emmis is 3/4 full and always looks at the management structure.
01/09/04 TVBR #5

Why Bob Coen expects growth
in 2004 -- Part 5 of 5
With federal elections and the Olympics.. forecast for local media spending. Bob Coen is less bullish, but still upbeat. 01/09/04 TVBR #5

Fratrik's forecast: TV station revenues to grow 10% in 2004
As he assesses what lies ahead for TV stations this year, BIA Financial Network Vice President and Chief Economist Mark Fratrik tells TVBR he's looking for growth of 10%. That's in line with the 10-11% forecast of the TVB and more bullish that Universal McCann's Bob Coen. 01/08/04 TVBR #4

Why Bob Coen expects growth in 2004 - Part 4 of 5
National advertising is poised for strong gains in 2004, check the chart with actual forecast for spending by national advertisers. The extra political activity plus the Summer Olympics in Greece combined with the brighter business climate will fuel strong growth in national advertising in 2004. The TV and radio media will be the major beneficiaries of the extra spending related to the Olympics and election activities. 01/08/04 TVBR #4

Hogan caught wearing
rose-colored glasses in LA

It did not take long for Radio Business Report to get reaction from our readers on the Miller Kaplan numbers that Clear Channel's John Hogan is distributing to agency buyers on forward pacing. Turns out the numbers he is sending are for total market revenues which includes the category titled Network/Non-Traditional/Other (stuff like concert ticket sales). RBR observation: Radio looses when it overstates its case. 01/08/04 RBR #4

RAB getting "re-tooled"; RAEL studies will lead to ad blitz
RAB's Radio Ad Effectiveness Lab (RAEL) is currently working on some studies about radio advertising - - the results of which will be part of an upcoming ad blitz (that is likely to include the Wall Street Journal and NY Times, according to one source) to educate the public about the power of radio. That same source, a group head, tells us he felt the radio industry has done a terrible job of marketing itself and that the RAB is going to be "re-tooled." Editor’s Note: Cough hard! RAB wants stations to kick in $3M-$4M for the effort. 01/08/04 RBR #4

Why Bob Coen expects growth
in 2004 - Part 3 of 5
Big categories, Coen sees signs of increasing ad spending by secondary categories, which could indicate a broader recovery. Signs of increasing ad spending by secondary categories, which could indicate a broader recovery. 01/7/04 TVBR #3

RBR Exclusive
Miller Kaplan forward pacing numbers out
Distributed by Clear Channel Radio CEO John Hogan, we wonder if Coen's estimates might be a bit low. RBR observation: Read the Miller Kaplan according to Clear Channel and Mr. Hogan. RBR appreciates receiving and sharing this information and we highly encourage other groups to do the same by providing Forward Pacing. For once forget the short traders and get ahead of the game. It is time for radio to control the boards and fast break down court. 01/7/04 RBR #3

RBR Exclusive
CC Radio making strides
in accountability
Ah, the now-familiar buzzword: Accountability. Garnered from an RBR source, Clear Channel Radio CEO John Hogan recently penned a letter 1/5 detailing the company's efforts and systems being put in place to please the ad buying community. Some of it is news to us, but it all sounds good. RBR observation: Time to press the flesh. 01/06/04 RBR #2



Contacts
MANAGEMENT
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JCarnegie@rbr.com
VP/GM, Assoc. Publisher, Ken Lee
KenLee@rbr.com
VP, Cathy Carnegie
CJCarnegie@rbr.com
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AMcLynn@rbr.com

EDITORIAL
Executive Editor, Jack Messmer
JMessmer@rbr.com
Managing Editor, Dave Seyler
DSeyler@rbr.com
Senior Editor, Carl Marcucci
CMarcucci@rbr.com
Reporter, Bob DeCarlo
BDeCarlo@rbr.com

SALES
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