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Volume 24, Issue 83, Jim Carnegie, Editor & Publisher
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Friday Morning April 27th, 2007
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TV News ®
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 Cheers and jeers for violence report
The FCC's open-ended recommendation to Congress that it go ahead and write up some laws concerning broadcast violence did not go unnoticed among the megaphone holders. For starters, both the NAB and NCTA would prefer that parental controls be given a chance to work. Indianapolis Mayor Bart Peterson, pictured, who doubles as President of the National League of Cities (NLC) praised the effort, but at least called for his municipal colleagues to take on the issue themselves rather than wait for Washington to get around to doing anything. Cheryl A. Leanza of the United Church of Christ endorsed the FCC's effort, saying parents face the choice of exposing their children to harmful material or withdrawing them from the culture entirely. Jim Dyke of industry-sponsored watchdog TV Watch countered that most parents want to control content in their own home, not cede the task to the government, and that V-Chips and blocking technologies are widely available to enable parents. Caroline Fredrickson, Director of the ACLU Washington Legislative Office made no bones about it, saying the government should stay out of our living rooms, and labeling the current attempt "political pandering."
TVBR observation: Apparently the Founding Fathers somehow telegraphed that speech regulation powers are right there in the Constitution, if only you have the will and ability to find them between the lines, or somewhere. Evidently, the actual text seen by those so gifted is something along these lines: "First Amendment excerpt, 2007 edition: Congress shall make no law...abridging the freedom of speech, unless urged to do so by a group of five unelected self-appointed national nannies installed in a federal bureaucracy that doesn't even exist yet, and that includes the power to eliminate all the times Daffy Duck's bill gets shot to the back of his head by Elmer Fudd, so there."
| Watchdog statements here |
Up quarter for Belo TV group
Belo Corporation's Q1 results were slightly ahead of Wall Street expectations, all due to the TV group as the print side continued to struggle. Despite working against tough comps for the Winter Olympics and political advertising, Belo's stations replaced all of that 12 million in lost revenue and more. TV revenues for Q1 were up 2.1% to 178.3 million. "Belo's first quarter results reflect another quarter of outstanding revenue performance by our Television Group and excellent expense management across the Company, tempered by a challenging newspaper advertising environment. We are realizing the benefits of our proactive approach toward re-engineering Belo's newspaper businesses, and we are diligently seeking efficiencies across the Company. The expanded partnership with Yahoo! announced by Belo and the Newspaper Consortium last week exemplifies the progress we're making in reshaping Belo's operations and pursuing new revenue opportunities, particularly those associated with Internet initiatives," said CEO Robert Decherd. Newspaper revenues were down 11% for the quarter to 175.7 million. Companywide, revenues were down 4.8% to 354.1 million, but earnings per share of 15 cents beat the Thomson/First Call consensus by two cents. Looking ahead, Belo is projecting that Q2 TV revenues will be up in the low single digits, while newspaper revenues are expected to be down again, but less so than in Q1.
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News wasn't actually so good
From listening to the McGraw-Hill conference call earlier this week (4/25/07 TVBR #81), we quoted CEO Terry McGraw as saying regarding the TV group that "pacing for the second quarter is up about 14%." From rechecking the recording, it still sounds to us like he said "up," but slides for the presentation posted on the McGraw-Hill website indicate that TV is pacing "off" 14% for Q2. So, McGraw-Hill's TV group is not enjoying the turnaround this quarter that our story indicated.
 Political money bags
starting to fill
The 2008 presidential campaign is off to an unusually early start, with hungry candidates soaking up as much cash as they possibly can. And underneath that, the politician's own campaign committees, including the RNC, the DNC and both party's Senate and House committees, also are digging into the campaign contribution pie. According to CQ Politics.com, the Republican National Committee (RNC) has opened an advantage over its opposite number, but the two Democratic congressional committees are outdrawing their respective opposite numbers. What's also interesting is that they all seem to be spending money already. The RNC is sitting on 12.8M and is debt free, a sizable lead over the Democratic National Committee which has only 6.8M and owes 3M. Over in the House of Representatives, the Democratic Congressional Campaign Committee (DCCC) has opened a big lead, with 9.9M on hand and 5M owed; the National Republican Congressional Committee, by contrast, is in the red, with 2.6M on hand against 7.9M in debt. On the Senate side, the Democratic Senatorial Campaign Committee (DSCC) is well bringing money in much faster than the National Republican Senatorial Committee (NRSC), but after pulling out all the stops toward the end of the midterms, 9.5M on hand against 6M in debt. The NRSC stands almost even, with 3.5M on hand against 262K in debt. And here's what they spent in March alone: DCCC (6.5M); RNC (5.8M); NRCC (5.7M); DNC (5.6M); DSCC (1.7M); and RNSC (1.5M).
TVBR observation: Although much of the early spending may be going to organization building, it's a given that a great deal of this cash will wind up in the hands of broadcasters before all is said and done. There is every indication that the 2008 cycle will blow all others out of the water.
| More color on financials |
Latest buyout: Harman International
Private equity is snapping up another public company. Harman International Industries, which manufactures professional and high-end consumer audio equipment, announced that it had agreed to a buyout for eight billion bucks by KKR and GS Capital. Shareholders are being offered 120 bucks per share (the stock closed at 102.56 before the announcement) or they may chose to exchange them for a stake in the new company that is being created to acquire Harman. Those new shares will be registered with the SEC, but not listed on any stock exchange. Founder and Executive Chairman Sidney Harman intends to cash out half of his 5% stake.
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| Wall Street Media Business Report TM |
Revenues up at Fisher
 Fisher Communications reported that Q1 revenues rose 10% to 34.2 million bucks. "We gained solid revenue and net operating results in the first quarter of 2007 -- especially in our large-market Univision-affiliated television stations and our Seattle radio stations. Though the first quarter of the year is generally seasonally lower in the broadcasting industry, we are very encouraged by our first quarter 2007 results and the launch of our Seattle Univision television station, KUNS," said President and CEO Colleen Brown. TV revenue was up 8% and radio gained 13%. Fisher's net loss for the quarter improved to 1.2 million from 1.7 million a year ago.
Clear Channel revenues up in Q1
As management waits to see if shareholders will approve a buyout next month to take the company private, Clear Channel Communications reported that Q1 revenues rose 8% to 1.61 billion bucks. Radio revenues rose 3% to 819.7 million and outdoor advertising revenues jumped 15% to 690.9 million. In the "other" category, which includes Clear Channel Television (sale pending) and the Katz Media rep firm, revenues for the quarter were flat at 129.7 million.
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Ad Business Report TM
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 Joost signs big-name advertisers
Joost, the Luxembourg-based Internet TV company, has taken a big step towards commercial viability by signing up 31 advertisers worldwide ahead of the launch of its free service. The company, aiming to become a global cable TV network on the Web, wants to show how TV ads can be transformed by personalized computer targeting. It will measure user-consumption habits, ad impact and intent-to-purchase data. It has already signed programming deals with Viacom, CBS Corp. and independent producers. Joost tells Reuters it is working with more than 20 media and brand advertising agencies to develop marketing campaigns for their clients. IPG, through its Emerging Media Lab, has signed 10 clients to participate in pilot programs on Joost, including General Motors Europe with Opel and Vauxhall, Intel, Lionsgate, Microsoft, Motorola, Sony, Taco Bell, Unilever's Magnum Ice Cream and the U.S. Army. Other marketers that have signed on include Coca-Cola, Hewlett-Packard, Intel, Nike, Visa, United Airlines, Procter & Gamble, Kraft, Electronic Arts, IBM, L'Oreal Paris, Nokia's N-series, Vodafone and Warner Bros. "Joost delivers a distinct environment: the ability to micro-target audiences with new and unique ads during professionally produced programming," Nick Loria, Joost's SVP/global advertising, said in a statement.
| See the channel lineup so far |
Kathy Crawford: Nothing to fear on PPM in Philly
Well, the first PPM numbers are coming out today for the City of Brotherly Love and there's a bit of apprehension from the radio stations. We will be asking for opinion on those numbers, but for now we asked Kathy Crawford, MindShare President/Local Broadcast, about fears that there will be lower AQH numbers and therefore less dollars for radio in the market.
| Read More... |
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| Washington Media Business Report TM |
 Tampa ownership forum
casting call complete
We now know who the panelists are for the upcoming 4/30/07 FCC Public Forum on media ownership. Broadcasters will be well-represented on Panel One, which will provide a Tampa-St. Petersburg market overview. The panelist include: Dan Bradley, Media General Vice President of News for Broadcast; Bill Carey, General Manager of WFTS-TV and Incoming President of the Florida Association of Broadcasters; Robert Dardenne, Associate Professor in Journalism and Media Studies at Univ. of South Florida-St. Petersburg; Steve Erlanger, President, Hometown News; Ronald Gordon, President of ZGS Broadcast Holdings; Jim Johnson, Publisher of State of Sunshine, a political blog covering the state of Florida; Eric Klinenberg, Associate Professor of Sociology at New York University; Patrick Manteiga, Editor and Publisher of La Gaceta; Pat Roberts, President of the Florida Association of Broadcasters; Art Rowbotham, President of Hall Communications; and Steve Wilson, Investigative Journalist. That will be followed by Panel Two, "Perspectives on Media Ownership," again with broadcasters well-represented. The panelists will be: Gerardo Reyes-Chavez, Coalition of Immokalee Workers; Glenn Cherry, President/CEO and Chairman of the Board of Tama Broadcasting; Roswell Clarke, Director of Technical Operations and System Admin., Cox Radio-Tampa; Bob D'Andrea, President of the Christian Television Network; Dr. Karen Brown Dunlap, President of The Poynter Institute; Bob Gremillion, President, CEO and Publisher of the South Florida Sentinel; Carol Jenkins, President of The Women's Media Center; Larry Lee, Jr., Owner of WFLM-FM/WIRA(AM), Port St. Lucie, Florida; Luis Lopez, Director of Public Relations, Hispanic Alliance of Tampa Bay; Carlina Rodriguez, Director of Organizing Spanish Language, Screen Actors Guild of America; Sam Rosenwasser, President and General Manager of WTSP(TV); and Rich Templin, Communications Director, Florida AFL-CIO.
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| Entertainment Media Business Report TM |
Silverman to host MTV Movie Awards
It's a good thing the MTV Movie Awards are on cable, not broadcast TV, or the FCC would likely have a field day handing out fines. Sarah Silverman even managed to get a sexual reference into her quote in the press release from Viacom's MTV Networks announcing that she would be the host of the awards show on June 3rd. "Sarah's irreverent, no holds barred sarcasm and humor have made her one of the hottest up and coming comedians in the industry. Sarah is just the person to orchestrate the madness and keep everyone guessing about who'll be her next target," said MTV President Christina Norman. The awards show this year will include a new category, with one of the "Golden Bucket of Popcorn" awards going to an amateur who submits the "Best Movie Spoof." Mark Burnett serves as Executive Producer for the "2007 MTV Movie Awards." Salli Frattini is Executive Producer for MTV. Audrey Morrisey and Ted Smith are Producers, Joe DeMaio is the Director and Kathy Flynn serves as Event Producer. Official sponsors of the "2007 MTV Movie Awards" are GM, glaceau vitaminwater, Old Navy, Orbit, Secret, Sprint and Taco Bell Corp
Discovery and Azteca America team up
Discovery Networks US Hispanic Group has a deal with Azteca America to air a one-hour block of Discovery en Español branded programming weekly on the Azteca America network. The Sunday (10-11 pm ET) block debuted this week and will air weekly.
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| Ratings & Research |
Yet another universe
In addition to adding DVR Universe Estimates in May, as reported yesterday, Nielsen is preparing to do Universe Estimates for HDTV homes. The company informed clients yesterday that it will begin making Universe Estimates for HDTV homes in November at the national level and in Local People Meter markets. Meantime, Nielsen is working with its clients to develop a standard definition of what constitutes an HDTV home.
 A look at cell phone usage
Of all the tech gadgets and innovations available to consumers, a survey from Jacobs Media clearly shows the growing influence and importance of the cell phone. Technology Poll III finds that overall, 92% of the entire sample own one - up from 90% in '06. And in the past year, nearly half (48%) say they're using cell phones a little or a lot more. This is a gadget that women are especially comfortable with. They use cell phones more often than men, and they are more apt to enjoy and use many of the features that are becoming standard equipment on these devices. Cell phones are also a dominant player in the lives of America's youth. When given a choice of devices and technologies, ranging from television to the Internet to FM Radio, 18-34 year-olds say that cell phones are the one thing they cannot live without. Three in ten (28%) 18-34's chose the cell phone - tied with the Internet - as the most indispensable of devices. 76% of those who own a cell phone say they have utilized texting - especially 18-34 year olds and Alternative fans. Additionally, nearly two-thirds say they have used the built-in calculator (or tip calculator) on their phones. About six in ten have both taken/shared pictures and used the address book feature. Finally, half also indicate they download ringtones and have played games utilizing their cell phones.
Texting is exhibiting strong growth. Overall, more than four in ten (44%) cell phone owners text message at least weekly. From the 2006 study, this is an increase of 25%. During this same period, IMing on a computer has dropped 13%, suggesting that cell phone texting has become the dominant "thumb communication" medium. Many people text with great regularity. One-third of those who text (32%) do so daily, while 5% report texting on an hourly basis. Women and Alternative fans are more likely to communicate via text messaging. And one in ten (11%) of the 18-34 year-olds in this sample reports texting hourly. During the past three surveys, "Cell Phone Only" levels have increased from 17% to 21% to 23% in this new '07 survey. More than four in ten (42%) Alternative fans now fall into this category, as do half (50%) of 18-29s year-olds.
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| Internet Media Business Report TM |
New paradigm for PTP music?
If you can't beat 'em, accommodate 'em is the attitude of a new music distribution experiment that has several companies wearing lab coats. The music industry is still reeling from the sudden emergence of peer-to-peer music sharing several years ago. Even though the sale of music online a tune at a time has helped pick up some of the slack, the retail product currency of the past, the compact disk, seems to be on its way out. But purchased downloads are not cutting it. The new idea, according to the New York Times, is to make the music available for free just as if it came from a peer, with the funding coming from advertising sales. Participating music producers will make their wares available to such a service, and in exchange for watching an advertisement, the consumer will get the song. Nettwerk Music Group's Terry McBride told NYT, "My philosophy is, don't try to get people to consume the way you want them to. Figure out how they're consuming music, market to that and monetize their behavior."
TVBR observation: Clever. Television stations are currently trying to find ways to make their websites into a profit center. McBride is a music guy, and cannot be expected to have any particular advice. But that thought process - figure out how the site is being used, and figure out a way to tie some income to it - is priceless.
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| Engineering Business Report TM |
 Americans spend 1,200 bucks annually on consumer electronics
The average U.S. household owns 25 consumer electronics (CE) products and the average adult spends 1,200 annually on these products according to a study released today by the Consumer Electronics Association. The top five growth sectors were DVRs, network routers or hubs, MP3 players, cable modems and digital cameras. DVR ownership and network/routers in U.S. households grew eight percentage points since 2006 to 25 and 30% respectively. 32% of households now own an MP3 player, up seven percentage points since last year. Cable modem ownership grew six percentage points and digital camera ownership rose to 62% of all U.S. households. Other categories with significant growth include HDTV with penetration reaching a quarter of U.S. homes. More than three-quarters of U.S homes have at least one cell phone; CEA estimates 178.5 million wireless phones are in use. DVD players have reached 84% household penetration and have surpassed VCRs, partially because of the availability of portable DVD players. In addition to identifying top growth categories, the study reveals the five most owned products beginning with the television (92%), DVD player or recorder, VCR (82%), cordless phone (82%) and the cellular phone (76%).
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| Stock Talk |
Small gains, but another record
Good earnings reports from Ford, 3M and Apple didn't do much to light a fire under stock traders. Still, the Dow Industrials inched up 16 points to another record high close of 13,106.
TV stocks were mixed. Nexstar had a good day, up 3.3%. LIN was the worst performer, down 2.3%.
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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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5.68
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-0.01
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LIN TV
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TVL
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16.73
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-0.39
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Belo
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BLC
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19.70
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+0.15
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McGraw-Hill
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MHP
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66.71
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+0.28
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| CBS CI. B |
CBS |
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32.05
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+0.05
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Media General
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MEG
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38.10
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+0.39
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| CBS CI. A |
CBSa |
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32.04
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+0.07
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Meredith
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MDP
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58.18
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-0.34
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Clear Channel
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CCU
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35.80
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-0.09
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News Corp.
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NWS
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24.69
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-0.15
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Disney
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DIS
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35.17
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-0.15
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Nexstar
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NXST
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12.57
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+0.40
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Emmis
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EMMS
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10.27
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-0.07
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NY Times
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NYT
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23.77
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+0.26
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Entravision
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EVC
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10.14
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-0.17
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Ion Media
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ION
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1.24
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-0.01
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Fisher
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FSCI
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49.02
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-0.94
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Saga Commun.
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SGA
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10.10
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-0.09
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Gannett
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GCI
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57.22
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-0.03
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SBS
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SBSA
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3.70
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+0.01
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Gen. Electric
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GE
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35.84
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+0.43
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Scripps
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SSP
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43.28
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-0.22
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Granite
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GBTVK
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0.06
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unch
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Sinclair
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SBGI
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16.97
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-0.28
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Gray
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GTN
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10.95
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-0.14
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SWMX
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SWMX
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0.60
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-0.05
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Gray, C1. A
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GTNa
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11.39
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+0.07
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Time Warner
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TWX
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20.98
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-0.17
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Hearst-Argyle
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HTV
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27.10
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-0.41
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Tribune
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TRB
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32.81
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+0.03
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Journal Comm.
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JRN
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13.39
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+0.22
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Wash. Post
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WPO
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742.45
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-0.21
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Lincoln Natl.
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LNC
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71.75
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+0.57
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Young
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YBTVA
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4.22
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-0.03
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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
Joost signs big-name advertisers
Taken a big step towards commercial viability signing 31 advertisers worldwide...
Internet Media Business Report
New paradigm for PTP music?
If you can't beat 'em, accommodate 'em is the attitude of a new music distribution...
Washington Media Business Report
Casting call complete
The Tampa ownership forum we now know who the panelists are...
Ratings & Research
Yet another universe
Adding DVR Universe Estimates in May Nielsen is preparing to do Universe Estimates for HDTV homes...
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TV Media Moves
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Wong to
helm Lifetime
 Andrea Wong, most recently Executive Vice President of Alternative Programming, Specials and Late-Night, ABC Entertainment, has been named the new President & CEO of Lifetime Entertainment Services. Her appointment was jointly announced by Disney-ABC Television Group President Anne Sweeney, and John Conomikes, Director, The Hearst Corporation. Disney and Hearst are the 50/50 owners of Lifetime. Wong will now oversee all the day-to-day operations for Lifetime Television, LMN, Lifetime Real Women and Lifetime Digital (including LifetimeTV.com).
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More News Headlines
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Jack Valenti dead at 85
Former Motion Pictures Association of America (MPAA) President Jack Valenti died yesterday at his Washington home. He was 85 and had been released from Johns Hopkins Medical Center in Baltimore on Tuesday where he had been treated for a stroke. Valenti retired from MPAA in 2004 and had most recently headed the "TV Boss" campaign promoting parental control over children's TV viewing and use of the V-chip.
Lincoln group for sale?
There's no confirmation from the company, nor is there likely to be, but the Wall Street Journal reports that Lincoln National Corporation is considering whether to put its radio and TV properties, Lincoln Financial Media, up for sale. Lincoln National Corporation is primarily an insurance company and acquired the broadcast group when it bought Jefferson-Pilot Corporation in 2005. Lincoln Financial Media owns 18 radio stations, all in top 50 markets; three television stations in major southeastern markets; and Lincoln Financial Sports, a TV production company that facilitates the broadcast of Atlantic Coast Conference and Southeastern Conference football and basketball.
Correction: Which owner in Wichita?
Several alert readers noticed an error in our 4/26/07 story on gun ads on KWCH-TV in Wichita, the station's owner should have been noted as Schurz Communications, who bought the station from Media General in a deal announced last summer. Thanks for the catch.
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RBR - Radio News
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Pacings soft for Clear Channel Radio
After delivering what CEO Mark Mays called "solid first quarter results," with radio revenues up 3% to 819.7 million, Clear Channel Communications warned that radio is pacing down 1.6% for Q2. How will that affect the May 8th vote on the going private buyout? Bank of America analyst Jonathan Jacoby said the Q2 outlook was worse than he had expected for radio, but he said the market had already likely anticipated a soft Q2. Meanwhile, business at Clear Channel Outdoor (a 90% owned subsidiary) remains robust. "Our view is that nothing in today's release will change the minds of those who want more than 39," Jacoby said, so he thinks it is a "coin toss" whether the 39 bucks per share buyout bid will be accepted on May 8th. At Lehman Brothers, analyst Anthony DiClemente called the company's guidance "unimpressive." Should the 39 bucks bid be voted down, he sees the stock trading down to the 33-35 range.
RBR observation: Less is still less. While Q1 radio revenues were up from a year ago, they were still down from before Clear Channel launched its Less is More initiative. That target was 832.9 million in radio revenues set in Q1 of 2004 - three years ago. Clear Channel has sold a few small market stations in the interim, but that hardly accounts for the 13.2 million shortfall. Clear Channel's main business is radio, not outdoor, so it doesn't make a lot of sense to depend on a bailout from the #2 business line if #1 is still ailing. All in all, Clear Channel's Q1 results appear to argue for the "take the money and run" side as far as the May 8th vote is concerned.
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TVBR Radar 2007
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Television News you won't read any where else. TVBR--First, Accurate, and Independently Owned.
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FCC weighs in on DTV
It you're a retailer, and you want to sell an analog-only television receiver, you must make sure that the buyer knows that it possibly will become no more than a paperweight on 2/17/09. Second, even though most broadcast television stations are now operating with some form of side-by-side digital platform, the problem child, the issue of forcing cable to provide dual digital/analog must-carry after 2/17/09.
04/26/07 TVBR #82
Phase one stock tender
underway at Tribune
With the company launching a tender offer to buy back 126 million shares of its stock for 34 bucks each - some 4.3 billion bucks in all. Phase two to buy the remainder will have to wait for FCC approval. This is all part of the recapitalization and going private plan announced at the start of this month (4/2/07 MBR) which will eventually, assuming all regulatory approvals are obtained, have Sam Zell and an Employee Stock Ownership Plan owning all of Tribune Company.
TVBR observation: This is the easy part. We expect that way more than 126 million shares will be tendered, since there is no way of knowing when phase two, at the same 34 bucks per share, will take place - or even if it will at all. If Tribune can't get the FCC to grant needed waivers to keep its existing newspaper/broadcast combinations intact, the remaining public shareholders will remain public shareholders - and participants in Sam Zell's big turnaround plan.
04/26/07 TVBR #82
39 bucks is all they have to give
If you are a Clear Channel shareholder waiting for Thomas H. Lee Partners and Bain Capital to raise their bid a second time, you may be waiting forever.
RBR observation: We are inclined to believe him. Sperling was reluctant to raise the original 37.60 bid (4/12/07 RBR #72) and did not get to the 40 bucks mark that would have probably guaranteed acceptance. Now we wait to see if 39 bucks will get the job done - or not.
04/26/07 RBR #82
Hip-Hop flip-flop
Reversing course from a statement issued just two weeks ago (4/16/07 RBR #74), Hip-Hop Summit Action Network founders Russell Simmons and Benjamin Chavis are now calling for record labels to ban three particularly inflammatory words: bitch, ho and that racial epithet so vile it is usually referred to in polite company as the "n-word."
04/25/07 RBR #81
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Hard finding that key person
to fill the important position at your organization? Media HeadHunters is the place that key media firms use to get results. See Media HeadHunters and get results with service--Period.
Need assistance
contact Cathy Carnegie
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Market your Stations For Sale
