Volume 21, Issue 86, Jim Carnegie, Editor & Publisher
Monday Morning May 3rd, 2004

TVBR Exclusive

Broadcasting & Cable (B&C) Exclusive Is Exclusively Wrong!
The words from Citadel CEO/NAB Joint Board Chairman Phil Lombardo on the B&C report this morning, 5/3, with the headline: Fritts Survives, Can the NAB? The report written by Bill McConnell according to Lombardo is "absolutely wrong" and in fact McConnell has never even spoken with Lombardo concerning any statements reported by B&C.

TVBR Publisher
Jim Carnegie spoke with Lombardo at 7:30am yesterday morning, Sunday 5/2, on the record, "Bill McConnell wrote that article - he never talked to me." Facts reported by RBR 04/26/04 RBR #81 have not changed that there is No and was No Coup. The key objective is to negotiate a contract 'Extension'. Lombardo told Carnegie for the record "All discussions that we (Fritts / Lombardo) have had are positive and this extension is very close to completion."

Also spoken with and on the record is Dispatch Broadcast Group President/CEO and TV Board Chairman
Michael Fiorile, "Eddie Fritts' future is not in doubt." As for B&C's report on the abortive coup against Fritts and the attempt to oust Lombardo again according to Fiorile is wrong. Bottom line: the executive committee authorized Lombardo one to two months ago to extend Eddie's contract and that is exactly what has been and is going on. "There was never an attempt or any instructions to Phil by the executive committee to terminate Eddie (Fritts). There never was, there isn't, there still isn't and it is not going to happen and it (B&C) is not just accurate," ended Fiorile. Same with Cox Television President and Vice Chair Andy Fisher who simply stated on the record, "The B&C article is interesting but simply not complete."

TVBR observation: The NAB executives meet tonight in DC for dinner and take bet this topic is going to be discussed before the board meeting begins Tuesday. Bottom line it seems there is a posturing behind the scenes and in print that the radio board members are unhappy and possibly attempting to find a candidate the troops will put their stamp of approval on. The one getting the most quotes in the press is outgoing board member and Regent Chief William L. Stakelin. At the late Sunday night hour TVBR was unable to contact Stakelin for comment but has been advised that Stakelin is eligible to run for Joint Board Chairman. This show is not over and TVBR has stated before - let the system work. FYI: Talk among board members counting votes for Lombardo re-election is said to be at 52, enough to win right now.TVBR states for the record and to our colleagues in the press - We at TVBR & RBR live in a glass house and - we Do throw stones.


TV News ®

Sinclair blacks out Nightline
Sinclair Broadcast Group stuck to its guns as announced last week, its eight ABC affiliated stations (one of which is operated pursuant to an LMA) opted out of Friday's airing of "Nightline," which consisted of the simple naming of US service people killed in Iraq. A statement on the company's website says, "Despite the denials by a spokeswoman for the show, the action appears to be motivated by a political agenda designed to undermine the efforts of the United States in Iraq." Sinclair owns or operates 62 stations reaching 24% of total US TV households. Along with its eight ABC stations is has 20 with Fox, 19 with WB, six with UPN, four with NBC, three with CBS and two independents. The seven Sinclair O&O ABC affiliates include KDNL St. Louis MO, WSYX Columbus OH, WLOS Asheville NC-Greenville SC, WXLV Greensboro-Winston Salem-High Point NC, WCHS Charleston-Huntington WV, WEAR Mobile AL-Pensacola FL and WGGB Springfield MA. The LMA'd station is WTXL Tallahassee FL.

Point-counterpoint: McCain vs. Sinclair
Sen. John McCain (R-AZ) fired off a letter to Sinclair Broadcast Group criticizing the group's decision to pre-empt Friday's edition of "Nightline." Here's part of the give and take: | Full Story Click Here |

More criticism of Sinclair blackout
The decision of Sinclair Broadcast Group to preempt Friday's edition of Nightline on its ABC affiliates drew rapid fire on Capitol Hill. Here are comments from a Democrat - -Maurice Hinchey, and an Independent - - Bernie Sanders. | Full Story Click Here |

McCain steps back at Commerce Committee
We have been able to confirm that Sen. John McCain (R-AZ) will be taking a less visible role with the Senate Commerce Committee. He will remain a member, but will turn the chair (or ranking member status on the off chance Republicans lose control of the Senate) over to fellow Republican Ted Stevens (R-AK).
| Full Story Click Here
|

EchoStar comes to terms with Time Warner
There won't be a repeat of EchoStar's channel-pulling showdown with Viacom (3/12/04 TVBR Daily Epaper #50) - - at least not with Time Warner's Turner Broadcasting Systems Inc. (TBS). EchoStar CEO Charlie Ergen had threatened a few weeks ago to pull TBS signals off EchoStar's satellite, just as he did with Viacom (4/14/04 TVBR Daily Epaper #73), but now the two sides have come to terms on a tentative deal. So, CNN, Cartoon Network, Superstation TBS and other TVS channels won't be going dark on EchoStar's Dish Network service. TVBR observation: As we noted previously, Ergen's dispute with TBS was strictly over price and didn't include the second factor in the Viacom battle - - Viacom linking carriage of its cable channels to EchoStar's retransmission of local CBS O&Os. But since the eventual settlement didn't resolve that issue, in the end it was really about the cable channel fees. At least this time the parties were able to come to terms without Ergen puling the plug - - and without EchoStar having to give its customers $11 million in rebates.

Sharpton jumps into Nielsen dispute
Nielsen is moving ahead with plans to launch Local People Meter (LPM) service in New York on June 3rd, after delaying the launch in the face of a barrage of complaints early this month (4/7/04 TVBR Daily Epaper #68). But the New York Post reports that Rev. Al Sharpton is threatening an anti-discrimination lawsuit if Nielsen starts LPM ratings in New York before even hearing from the task force that Rep. Charles Rangel is supposed to establish to study how Nielsen counts black and Hispanic viewers. Rangel has not yet named any member of that task force. Sharpton met Thursday with Nielsen President Susan Whiting. TVBR observation: Nielsen, as a spokesman noted in the Post article, figures Sharpton's lawsuit wouldn't have any chance of succeeding in court. True enough. But the real worry for Nielsen should be whether its LPM ratings will have any validity in New York in the face of a lawsuit, threatened boycott and constant discussion of the TV ratings dispute in the local press. COLTAM has already expressed concerns that the publicity could skew Nielsen ratings in New York (4/12/04 TVBR Daily Epaper #71), but that may be exactly what LPM opponents are hoping for.


Measuring the Media Moguls

ACME:
Jamie Kellner, Chairman & CEO
This series will compare the stock performance of public radio companies in 2003 to the compensation of each company's CEO. We begin today with ACME.

2003 stock performance: +10.16%
2003 CEO pay: no increase

With ACME Communications still a relatively young company, which only recently turned cash-flow positive, Chairman & CEO Jamie Kellner and President & COO Doug Gealy have their fortunes tied to future stock gains and have forgone salary increases for several years. | Full Story Click Here |


Conference Calls, Q1 2004

Scripps ups dividend, splitting stock
Go figure. E.W. Scripps saw its stock price decline Friday, even though the company announced an increase in its quarterly dividend and plans for a two-for-one stock split. Scripps' board of directors boosted the quarterly dividend from $0.175 per share to $0.20. The higher dividend is to be paid June 10th to shareholders of record on May 31st. In order to accomplish the proposed stock split, the directors have called a special shareholders meeting for July 15th to increase the number of authorized shares to 120 million Class A (non-voting) shares and 30 million common voting shares. Approximately 87% of the voting shares are held by The Edward W. Scripps Trust. Since Scripps stock is trading a few bucks above $100, the split should bring the per share price to just over $50. The proposed stock split would be the first since Scripps went public in 1988 and the company notes that its stock value has appreciated at an average annual rate of 17% over that time.

Post-Newsweek revenues up 8%
High single-digit gains have been the trend for Q1 and you can add the Post-Newsweek stations to the list. Their revenues were up 8% to $70.8 million, including increased political advertising. Operating income for the TV group rose 19% to $31.3 million. Results were much stronger over all for the parent company, the Washington Post Company. Its revenues were up 19% to $759 million and operating income rose 33% to $104.9 million. The big gain was in the education division, with revenues up 45%, including recent acquisition. Newspaper revenues rose 7% to $218.8 million, with ad revenues also up 7%.


Adbiz ©

Cable readies for best upfront ever-Part I
The Cabletelevision Advertising Bureau (CAB), while agreeing this is going to be one hot upfront for cable, isn't giving out any specific predictions or numbers. Instead, CAB CEO Sean Cunningham tells TVBR they can talk in general about what they anticipate the level of demand will be for cable advertising. "We've been making presentations to advertisers and agencies for the last two months, and for sure, there doesn't seem to be a question that more money is coming to cable. It seems a fait accompli that it's going to be cable's best year. The only question seems to be, how high is up? And that's what planning groups and buying groups, that's one of the major questions inside of television right now as they get ready for a marketplace."
| Full Story Click Here
| TVBR Observation |

Medifast launched national
network TV effort
Medifast diet products launched an aggressive campaign featuring national TV, cable and print. The effort began with the company's first-ever national network spot last week on NBC's "Today." The 60-second spot began the campaign for May, which will also include 60-second spots airing on other national nets. Full-page print ads in a leading national Sunday news mage is also on the plan, aiming for 200M impressions. The ad strategy will continue to support the company's Physician business, "Hi-Energy Clinics" and generate business leads for the company's "Take Shape for Life" network of certified health advisors. "We have worked vigilantly over the past three months to fine-tune our television advertising," said Brad MacDonald, Medifast CEO. "I am pleased to report that we have succeeded in increasing our sales conversion rates, through a combination of improvements in training for our knowledge-based call center employees and a dynamic and informative video package which is being mailed to potential customers. Since we have improved our efficiency, we believe it is now prudent to invest in advertising that we had initially envisioned would increase our revenue and earnings growth in 2004."

Staples puts $70M account in review
Staples has cut Martin/Williams Minneapolis loose from its $70M creative account and has initiated a review. Select Resources International LA will handle, and a decision is reportedly expected within two months. Martin/Williams got the account in 7/02 after a review. The agency's most recent campaign for Staples included the tag, "That was easy."


Media, Markets & Money tm

Cherry Creek growth pattern to continue
Cherry Creek Broadcasting, after entering the radio business with the group acquisition Commonwealth group, has recently expanded with new buys in Montana and Texas. Joe Schwartz, head man at spanking new radio group, told RBR that the current mini-spree is just the beginning. "We are very much in the acquisition mode," he said. What's more, the group is utterly unconcerned about market size and ratings availability. The factors of concern are two: growth potential and the availability of enough stick power to make the group a significant player in that market. Although Schwartz didn't rule out a move east of the Mississippi, he noted that everything they have so far is to the west, as is the company HQ. Cherry Creek is therefore most likely to continue its growth pattern to the west of the continent-dividing river.


Washington Beat

Media Access Project
takes issue with Adelphia sale
The Media Access Project in a filing with FCC late last week said it and other groups would oppose the sale of the Adelphia Communications unless the agency sets a potential viewership cap limiting cable TV ownership. The filing cited the 1992 Cable Act as directing the Commission to adopt a cap. While the agency approved a regulation that would have set the cap at 30% of the nation's cable/satellite subscribers in '94, the rule never went into effect because of an appeals court ruling. But according to MAP's complaint, the agency has been sitting on the case ever since: "The delay in action on the court's remand is unconscionable." The Adelphia acquisition is most likely going to come from Time Warner or Comcast, both of which are reaching 22% and 30%, respectively, of the nation's subscribers. Adding Adelphia would kick those numbers up considerably. Andrew Schwartzman, MAP President, was quoted as saying his group thinks the agency should set the cap at 25%-28% of subscribers.

RTNDA weighs in on Golden Globes decision
The Radio-Televsion News Directors Association (RTNDA) has joined the chorus of voices asking that the FCC tone down the tone of its battle against broadcast indecency. In particular, it is protesting the fineless finding against NBC over the Bono/Golden Globe/"f" word incident. The RTNDA said, "The Commission's actions have further muddied the already vague definition of indecency, left broadcasters to guess which words and phrases will subject them to strict liability, and offer no guidance as to when, if ever, the context of a given program will outweigh its presumed offensiveness." The combined dangling swords of half-million dollar fines and license revocations, argues RTNDA, make it too risky for broadcast journalists to ply their trade. "In some instances," argues RTNDA, "the use of language that may be objectionable to some is integral to news reporting; by effectively removing context from its analysis, the FCC is violating the First Amendment by interfering with the editorial judgments of broadcast licensees."


Programming

Howard Dean to challenge Oprah?
He certainly has the fire in the belly to be interesting to an audience. Daily Variety reported Friday that former presidential candidate Howard Dean has been in Hollywood talking with Viacom's Paramount Domestic Television about a possible TV talk show - - one which would not be focused exclusively on politics. Dean is reportedly being escorted around the Paramount lot by Larry Lyttle, who went out on a limb a few years back to launch "Judge Judy."

"The Swan" will fly again
Critics may have hated it, but the ratings for "The Swan" were good enough that Fox is bringing the reality show back for a second season. The network says it has begun its search for new contestants - - ugly ducklings (or at least women who consider themselves to be so) willing to undergo extensive plastic surgery, diets and exercise to become beautiful swans. Each week's episode features two transformed women, with the winner moving on to compete against other weekly winners. The show, produced by FremantleMedia and Galan Entertainment, has been drawing about 10.5 million viewers each week, so the critics be damned. Would-be contestants for next year can sign-up at www.swancasting.com.


TV Ratings

Oprah moves back up
Oprah Winfrey has reclaimed the #3 spot in syndicated television, displacing "Seinfeld" and giving KingWorld a sweep of the top three slots. Should she worry less about Jerry Seinfeld and get ready for battlin' and screamin' Howard Dean?
| Full Story Click Here |


Monday Morning Shakers & Makers

Deals: 3/29/04-4/2/04
Dealmakers nudged up near triple-digits in the week during which we transitioned out of March and into April. Almost all of that came in the two April days - - we're talking $80M vs. about $8.5M. You have to go all the way back to the beginning of February to find a bigger week. It was almost all on the radio side - - there's just one little, lonely TV deal trying to balance things out.

3/29/04-4/2/04

Total

Total Deals

14

AMs

10

FMs

12

TVs

1
Value
$88,865,000
For Complete Charts, Click Here |

Radio Deal of the Week
Cumulus hoists another flag over Houston
| Full Story Click Here
|
TV Deal of the Week
Eureka! Sainte Partners has found it!
| Full Story Click Here
|

Stock Talk

Stocks fall again
Fears of higher interest rates dominated Wall Street again on Friday, sending stock prices lower. The Dow Industrials were off 47 points, or 0.5%, to 10,226.

TV stocks fell as well. Paxson was the worst performer, for no particular reason, falling 5.7%. ACME dropped 4.7%. Granite and Emmis were each off 3%.


TV Stocks

Here's how stocks fared on Friday

Company Symbol Close Change Company Symbol Close Change

Acme

ACME

$6.72

-$0.33

McGraw-Hill

MHP

$78.86

-$0.56

Belo

BLC

$28.46

-$0.37

Media General

MEG

$71.88

-$0.52

Clear Channel

CCU

$41.49

-$1.01

Meredith

MDP

$50.94

-$0.48

Disney

DIS

$23.03

-$0.67

News Corp.

NWS

$36.56

+$0.08

Emmis

EMMS

$23.32

-$0.72

Nexstar

NXST

$12.31

+$0.10

Entravision

EVC

$9.13

+$0.09

NY Times

NYT

$45.81

+$0.08

Fisher

FSCI

$50.40

-$0.38

Paxson

PAX

$3.00

-$0.18

Fox

FOX

$27.85

-$0.07

Saga Commun.

SGA

$19.00

unch

Gannett

GCI

$86.68

-$0.30

Scripps

SSP

$105.55

-$0.95

Gen. Electric

GE

$29.95

-$0.10

Sinclair

SBGI

$12.36

-$0.26

Granite

GBTVK

$1.60

-$0.05

Time Warner

TWX

$16.82

-$0.15

Gray

GTN

$14.82

-$0.37

Tribune

TRB

$47.88

-$0.67

Gray, C1. A

GTNa

$13.89

-$0.18

Univision

UVN

$33.85

-$0.32

Hearst-Argyle

HTV

$26.25

-$0.27

Viacom, Cl. A

VIA

$39.16

-$0.71

Jeff-Pilot

JP

$49.59

-$0.05

Viacom, Cl. B

VIAb

$38.65

-$0.90

Journal Comm.

JRN

$17.66

-$0.14

Wash. Post

WPO

$920.00

+$6.50

Liberty Corp

LC

$44.90

-$1.13

Young

YBTVA

$17.70

+$0.05

LIN TV

TVL

$22.49

-$0.22

- - - -

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April Digital Magazine

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

Chapman wants self-policing
to curb indecency
As he prepares to co-chair the NAB's Responsible Broadcasting Task Force with David Kennedy and Gary Chapman is touting self-restraint as the best course for the industry to pursue. He's worried that broadcasters could face some onerous new laws if Congress gets involved. TVBR observation: Self-policing is a good thing, but from what we're hearing on Capitol Hill, it's not going to rein in lawmakers who are making political hay out of the indecency issue. And since so many big broadcasters have left the NAB, what good is a code if it doesn't cover many of the industry's biggest players? 04/30/04 TVBR #85

Infinity dumps the Bucs in Tampa
WQYK-AM and Country WQYK-FM Tampa has decided not to re-up with the Tampa Bay Buccaneers, after 13 years. Why? Too much money says GM Charlie Ochs. RBR Observation: Ochs is breathing easy right now because he will be put $4 Million to his bottom line. There is probably around $4 Million in Bucs ad revenue in the market and when you take off the 15% sales commission Ochs was just breaking even. Where is the real money? Only when an NFL team gets to the play offs and the bonus is hoping to be on the field at the Super Bowl. NFL is the golden chalice of sports but not a big money winner at the local level except under playoff conditions. Many times it is known as good will within the community for branding purposes. Now the bet - Clear Channel will pick up the Bucs and probably pay the $4 Million plus expenses and goodies. They can farm out the broadcast rights with their stable of stations but Clear Channel needs to replace the $4 Million on the books they lost when they fired Bubba. Math time - pay $4 Million and get back $4 Million in ad revenue they lost -Clear Channel breaks even and looks good on the Miller Kaplan reports. Bingo, that easy.
04/30/04 RBR #85

Nielsen boosts minority samples; critics unimpressed
What it calls its "largest-ever sample increases" for African-Americans and Hispanics - - increasing minority households in its National sample and for the Local People Meters (LPM) that it is rolling out in the top 10 markets. A minority coalition which opposed the LPM rollout in New York quickly denounced the move as failing to address what it claims is a flawed system that undercounts minority viewers. TVBR observation: Nielsen's increase in minority households in its National sample is easy enough to understand. The numbers of all participants are increasing, so minority numbers are increasing as well, although the percentage of African-American and Hispanic households will remain the same. 04/29/04 TVBR #84

Stern's removal in San Diego
crashes ratings
KIOZ's morning drive-time crashed from an 8.9 share in February to 0.7 in March, the first month without Stern. The battle with the FCC and Clear Channel has scored him some major gains in listenership during the winter book ended 3/31 in New York, L.A., Chicago, Boston, Cleveland and Hartford. However, the stations Clear Channel dropped Stern - - WBGG-FM Miami/Fort Lauderdale, WTKS-FM Orlando, WXFX-FM Rochester, KIOZ-FM San Diego, WXDX-FM Pittsburgh and WTFX-FM Louisville - - have been suffering. WXDX's overall P12+ rating dropped from 4.8 to 3.5. 04/29/04 RBR #84

Qtopia releases Gay & Lesbian
media usage stats
Interep's recently-announced marketing partner Qtopia Media, which specializes in the gay & lesbian market, released initial findings on media usage in major metros. Survey results show that G&L consumers are avid users of both mainstream and gay-themed media. Strong showings for both radio and local gay newspapers confirm that "spot" media work well to penetrate a metro's gay community. Other findings:- 82% listen to radio regularly; top reaching radio formats among G&L listeners: Top 40, Modern Rock, Dance/ Rhythmic, National Public Radio.- 79% watch TV regularly; 76% watched gay-themed TV shows in the past 3 mos. 04/28/04 TVBR #83

Surprise - Mark Walsh resigns as Air America CEO; Dave Logan also out as top programmer
Talk about an inside the beltway swinging political door - - and guess who broke the news nationwide? Walsh and Logan both out in less than a month after the net's 3/31 party and launch. RBR Observation: Walsh is the guy inside the Beltway with the political connections who got a few radio people and comics together with a strong liberal line and thought they could fill the airwaves with junk attack talk. Air America and their financial backers found out real quick that no matter - - Liberal or Conservative - - if you don't have Programming Content with Programming Presentation you have zip, no matter how deep your pockets are. 04/28/04 RBR #83

TV board execs standing firm behind Lombardo AND Fritts
Amidst howls of discontent from some members of the NAB Radio Board, the Chairman of the TV Board and a key member both tell TVBR that they are standing behind Joint Board Chairman Phil Lombardo in his management of the board. TVBR observation: Somebody was stirring up some ugly rumors but the more people we talk to who are actually involved the less likely it seems that Eddie Fritts is leaving the NAB anytime soon. 04/27/04 TVBR #82

NAB: To Protect and Defend
Free Radio and TV Broadcasters
A tempest in a tea pot over NAB Eddie Friits' contract extension negotiations is underway with Joint Board Chairman Phil Lombardo. Facts: 1. There is No Coup 2. Objective is! to negotiate a contract 'Extension' 3. Having a successful succession of planning is vital to NAB's future 4. Defend and not be caught off guard without a successor as other lobby associations have. 5. Protect the 22 years of experience and contacts developed by Fritts. TVBR observation: There is hostility from various Radio board members from last January's board meeting. Some people just can't suck it up and still want that love to hate TV attitude. The best knowledge or guidance is in succession planning from the inside to the top. NAB has already lost valuable talent as case in point: MPAA CEO Jack Valenti retired leaving the MPAA without leadership and that is pathetic in having no foresight. Lombardo and committee Do Not want that to happen to the NAB. To those creating this tempest in a tea pot - RBR is not drinking your cup of tea. 04/26/04 TVBR #81

NAB wants to chart its future quietly
The future of NAB President/CEO Eddie Fritts is the subject of widespread speculation as it started at NAB2004. Now, Radio Board Chairman Carl Gardner and committee members have fired off a letter to the rest of the Radio Board asking the them to do what they can to keep negotiations on the QT. "You can't negotiate contracts through a committee of 60, and you can't do it via the press," said the letter. The trio blamed the trade press as part of the problem on the trade press. TVBR observation: Blame the press but first look in the mirror.! RBR/TVBR Publisher Jim Carnegie replied to Garnder: "I know exactly what RBR & TVBR E-papers printed on 4/20 & 4/21 and I stand in front of these reports. Only recommendation - next time tell your colleagues who these trades are and what is wrong. Professionally, I'm a big boy I can take it. 04/26/04 TVBR #81

"We'll conform and we'll fight 'em"
Mel Karmazin left no doubt about Viacom's plans for dealing with the fines the FCC has levied, and is said to be about to levy. While it will do its best to stay out of trouble, is also going to stand and fight. "We are aggressively going to take the FCC to court if we get an opportunity," TVBR observation: Karmazin said Viacom will fight if it gets an opportunity. However, no matter what he does, Karmazin cannot decide whether or not an indecency case will ever go to court. ! He is in essence challenging the FCC to come and get him. To stand and fight. all broadcasters should thank Karmazin for taking the point on this critical issue, regardless of any individual's personal viewpoint on indecency. 04/23/04 TVBR #80


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