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Welcome to TVBR's Daily Epaper
Volume 22, Issue 193, Jim Carnegie, Editor & Publisher
Monday Morning October 3rd, 2005

TV News®

Rehr-ing to go?
Advertising, particularly as it relates to the beer industry, has been a prime area of concern for National Beer Wholesalers Association President David Rehr, as TVBR reported first last Thursday 09/29/05 TVBR #191, is widely expected to take over the office of Eddie Fritts at the National Association of Broadcasters. This is at least one area of overlapping concern from between the two associations, and Rehr's position at NBWA should dovetail easily with that commonly held by broadcasters - - that advertising is a form of free speech and should be under as little restriction as possible. There may be an overlap in the approach which each association must take - - both products, beer and broadcast programming, are fully integrated into the fabric of American society, and yet at just about all times are under attack by one segment of that society for various reasons. Rehr should have a great deal of experience reinforcing the positive aspects - - and minimizing the negative aspects - - of a sometimes controversial product. Another issue upon which NBWA took a stand was the McCain-Feingold Bipartisan Campaign Reform Act - - NBWA was strongly opposed on grounds that its own free speech was being compromised. NAB has pretty much stayed on the sidelines as far as the surviving aspects of BCRA go, but fought tooth and nail to make sure that free airtime was not a part of the final BCRA package.

TVBR observation: Broadcasters key inside edge one result of BCRA is that Rehr spent much of the 2003 Republican National Convention holding parties and tapping kegs for one group of convention attendees or another, according the USA Today. He complained that there was little else he could do with his "soft" money. Rehr's ties to the Republican Party are indeed extensive, and the roots run deep. According to New Republic, he was very much involved in the Tom Delay (R-TX) strategy to fill Washington's unofficial Lobbyist Row, otherwise known as K Street, with Republicans, and further achieved Pioneer status with the campaign of George W. Bush for bringing in 100K in contributions. For NAB an entirely red president could pose a problem - - red can be good for issues on the business side of the equation, but the blue, or Democratic side, is often necessary to when other issues, like free speech and reasonable indecency standards are on the table. And every vote on Capitol Hill is critical when it's industry v. industry time, or to put a fine point on it, NAB v. NCTA. Red? Blue? Forget them both. If Rehr takes the NAB gig, he may have to learn to play it considerably more Purple than perhaps he's had to up until now.

Broadcast delivered 96 of top 100 programs last week
In the first week of the broadcast season, which ended Sunday, Sept. 25, broadcast delivered 96 of the top 100 primetime programs in A18-49 and A25-54, and 95 out of 100 in households. Broadcast stations also outdrew local wired-cable MSOs in all seven LPM markets last week. Based on household ratings, "Desperate Housewives" on ABC took first place for the week, with a 17.34 HH rating, "CSI" was a close second with a 17.27 rating, and "Lost" was third with a 13.83 HH rating. Ad-supported subscription TV's highest ranking program was a match-up between The New York Giants and San Diego Chargers on ESPN's "NFL Regular Season," which delivered a 6.53 HH rating and finished in 34th place. TVB has adopted the term "subscription TV" for the video formerly known as cable programming. It will use the term "local wired-cable" in referring to MSOs.
| Read More... |

Hurricane state broadcasters still clawing back
As of 9/28/05, 29% of the radio stations in the four states hit by the one-two Katrina-Rita punch were silent, and 16% of all television stations were still off air. Hardest hit was Louisiana, which had made it back over 80% on air when Rita smacked the state's radio functionality back down below 60%. According to an FCC chart, on the day Katrina hit - - 8/29/05 - - 65% of radio stations and 79% of television stations were operating in the four states, which include, in addition to Louisiana, Mississippi, Alabama and Texas. That number is misleading, however, since Texas missed out on that storm and was operating at 100%. Louisiana, on the other hand, was at 62% radio/61% TV; Alabama was at 48%/50%; and hard-hit Mississippi was at 12%/40%. By 9/23, overall capacity was up to 89%/93%, only to drop to 69%/77% after Rita hit. Mississippi and Alabama were spared this time, but Louisiana went back down to 57%/75%, and Texas dropped to 75%/68%. 9/28 numbers are 59%/79% in LA; 79%/100% in MS; 96%/100% in AL; and 79%/82% in TX.


Journal joins the crowd of Katrina victims
Multimedia corporation Journal Communications did not have the misfortune of operating radio or television properties in New Orleans. It does, however, have the misfortune of operating a printing plant there. Journal has determined that the plant - - which it has used to print niche publications and for general commercial printing work - - is damaged beyond repair. It will close the facility, taking an estimated hit of nearly 3.5M dollars. Journal's Steven J. Smith said that long-standing weakness in the industry contributed to the decision. Salvageable equipment will be transported to other Journal facilities in the area. That, along with continued weakness in advertising at both the broadcast and print divisions, has caused the company to revise its guidance downward. It had called for net Q3 income of 14M-16M. It now says the result will likely be on the low end of that spectrum.

NABOB, DaimlerChrysler plant ownership seeds
The National Association of Black Owned Broadcasters has teamed with DaimlerChrysler in a unique program designed to increase the ranks of minority broadcast owners. The pair has kicked in 50K in seed money to "...put minorities on the track to broadcast media ownership." Two candidates have selected, and both will undergo a two-year program in which they will be "...learning the laws governing U.S. airwaves; learning the requirements of financial institutions for funding and understanding the nuances of running a media operation from on-air personalities to signal coverage to hiring engineers and training advertising sales staff." The first recipients of the fellowships are Alexis Snipe-Campbell and Bartt Horton. Snipe-Campbell, an 11-year veteran of the radio industry, is currently a radio sales rep at Glory Communications in Columbia SC. Horton, who is currently working as a consultant, is a one-time Station Manager for WBOT-FM/WILD-AM in Boston.

TVBR observation: It's one thing to call for more minority ownership. It's another to put your money where your mouth is and actually do something about it. DaimlerChrylser is to be commended for teaming with NABOB to take affirmative action rather than just say it.

Bill Bennett comment
draws condemnation

On the Wednesday edition of his radio show, "Bill Bennett's Morning in America," syndicated by Salem Radio Network, a caller raised the theory that Social Security is in danger of becoming insolvent because legalized abortion has reduced the number of tax-paying citizens. Bennett said economic arguments should never be employed in discussions of moral issues. If it were your sole purpose to reduce crime, Bennett said, "You could abort every black baby in this country, and your crime rate would go down. That would be an impossible, ridiculous and morally reprehensible thing to do, but your crime rate would go down." The former secretary of education for President Ronald Reagan drew fire from many groups: "Republicans, Democrats and all Americans of good will should denounce this statement, should distance themselves from Mr. Bennett," said Rep. Jesse Jackson, Jr., D-Ill. "And the private sector should not support Mr. Bennett's radio show or his comments on the air." "I'm not even going to comment on something that disgusting," said Sen. Patrick Leahy, D-Vt. "Really, I'm thinking of my black grandchild and I'm going to hold (off)." One Hundred Black Men, Inc. President Luther R. Gatling also issued a statement, and Rep. John Conyers went further, writing to Salem Communications about the matter.
| Read statements here |


Adbiz©

Wrigley taps BBDO for Life Savers
Wrigley announced it has awarded assignments for two of the newest brands in the Wrigley confectionery portfolio -- Life Savers and Creme Savers -- to BBDO Chicago. Advertising for both brands was previously handled by Foote, Cone & Belding, NY. Wrigley acquired Life Savers and Creme Savers from Kraft Foods in June, seeing significant potential for these brands under Wrigley's confectionery expertise. Shortly after the acquisition, Wrigley asked two of its long-standing strategic partners, BBDO and Leo Burnett, to participate in a review for the assignment. Both agencies handle brand assignments for the company in the U.S. and abroad.

Ogilvy and Hershey part ways
Ogilvy & Mather New York announced it is resigning the Hershey account after 35 years. The move relates to an emerging conflict with Hershey and other Ogilvy clients, possibly Kraft. Ogilvy has had responsibility for the Hershey Kisses and Reese's Peanut Butter Cup brands. "We have had a long and successful partnership with Hershey and have helped build some of their strongest and biggest brands. We are proud of our work, the longevity of our relationship and wish Hershey all the success in the marketplace," said Bill Gray, co-CEO of Ogilvy North America. Many of the account responsibilities will move to Arnold Worldwide, NY. Arnold will now handle communications programs for core chocolate brands including Hershey's, Hershey's Kisses and Reese's. Existing partner North Castle Communications will handle duties for refreshment and sugar confectionery brands, including Ice Breakers, Twizzlers and Jolly Ranchers. Hershey spent 136 million in advertising last year. Buying via OMD will remain unchanged.

TBWA Worldwide names Robert LePlae
as President TBWA\North America

TBWA Worldwide has appointed Robert LePlae, currently President and CEO TBWA\California, as President, TBWA\North America. LePlae, 45, will continue to report to Jean-Marie Dru, President & CEO of TBWA Worldwide, and will oversee TBWA's operations in North America including TBWA\Chiat\Day and TEQUILA offices in New York, Los Angeles, and San Francisco. LePlae will also oversee the management of the New York office and will become a member of TBWA's Executive Committee. Robert joined TBWA\Chiat\Day\LA in May 1998, as Managing Director with the assignment of moving the agency's Nissan account to the next level. In July '99, he assumed additional duties overseeing the Infiniti brand, as well as regional marketing for both divisions. In January 2000, Robert relocated to Tokyo as President and CEO of G1\Worldwide, where he had global authority for the Nissan brand. Robert returned to TBWA\Chiat\Day Los Angeles as President and CEO in 2001.


Media Business Report
Local Sales Edge
Top Ten searches in Yellow Pages
Restaurants, physicians, automobiles and lawyers are among the Top Ten categories searched by Americans when accessing the print and online Yellow Pages, according to research announced today by the Yellow Pages Association. The 2005 Yellow Pages Industry Usage Study, conducted by Knowledge Networks/SRI, reveals the top-referenced Yellow Pages headings in print, and for the first time ever, in Internet Yellow Pages. The 10 most frequently referenced print Yellow Pages headings are: 1) Restaurants, 2) Physicians-Surgeons, 3) Automobile Parts, 4) Automobile Repairing-Service, 5) Pizza, 6) Attorneys-Lawyers, 7) Automobile Dealers, 8) Dentists, 9) Hospitals and 10) Beauty Salons. For Internet Yellow Pages, the 10 most frequently referenced headings are: 1) Restaurants, 2) Hotels, 3) Physicians-Surgeons, 4) Automobile Dealers, 5) Florists, 6) Automobile Repairing-Service, 7) Automobile Parts-Supplies, 8) Schools, 9) Attorneys-Lawyers and 10) Insurance.

MBR observation: OK here is your local sales edge - If you were looking for local ad sales leads and did not know where to start the Yellow Pages Association just did the work for you so now use their findings against them. Gather your data or a marketing presentation and then get the client on your website. Always mention in the spot where to find out more about the advertiser, such as your stations website, used properly it brings the consumer in to get the information they want and need. Along with just your local numbers and ranking data quality data is important here also plus data if you have a counter on your website on people that are visiting your stations website. Internet research will be vital to your future as will quality research data. Yellow Pages Assoc. just gave you a little head start and TVBR giving you a little edge by printing it.


Media Markets & MoneyTM
FCC waives, Sinclair waves bye, Meredith buys
Kansas City WB affiliate KSMO-TV is going into a duopoly with Meredith Corporation's CBS KCTV-TV. The FCC has granted a failed-station waiver, allowing the 33.5M acquisition of the station from seller Sinclair Broadcast Group to go through. The two parties immediately closed the deal. The station Meredith had taken a two-pronged approach in requesting the waiver, which was necessitated by the lack of enough owners in the market to meet the FCC's eight independent media voices standard. If the failed-station plea failed, Meredith argued that its strengths as an owner and plans for the station warranted a general waiver. The FCC said that the parties adequately demonstrated the failed station part, however, showing low ratings and three years of negative cash flow. Meredith has already promised to install news programming on the station. Said VP/GM Kirk Black, "Now we will be able to offer Kansas City viewers a new array of viewing options, including a 9 PM prime-time newscast, more local programming and increased sports coverage." He promised that increased coverage of the NFL Chiefs would be part of that package. The deal was actually broken into two parts - - 6.7M for the station license and 26.8M for the non-license assets. Meredith has been selling time on the station under terms of a JSA.

Univision bolsters Fresno cluster
There will be one less television/radio cross-operator in Fresno after Pappas Telecasting seals the deal sending KVBE-FM to Hispanic giant Univision. Both have a pair of full-power television stations in the market. The buyer will go from two to three FMs, while the seller goes from one to none. The pricetag, according to brokers from Kalil & Company, is 10M. Univision will take over the station immediately in an LMA pending FCC approval and closing. In addition to its two Hispanic-formatted FMs, Univision has a pair of full power television stations broadcasting its Univision and Telefutura networks, with the latter supplemented by a low power TV also carrying Telefutura, according to BIAfn. Pappas remains in the market with its own full-power televison stations, carrying Fox and WB. Univision says it's aware of and will pounce on the cross-promotional possibilities present in the market. "We are thrilled to expand our presence in Fresno, a vibrant city with a thriving Hispanic population, with our purchase of KVBE," said Gary Stone, UNivision Radio COO. "This acquisition provides our listeners with an additional format offering of our cutting-edge programming and popular talent, again making Univision Radio their source for the most important information and best entertainment on the radio. In addition, we look forward to working with the Univision and TeleFutura television stations in Fresno on cross-promotional and community initiatives."


Washington Beat
FCC/EEO's fickle finger of fate strikes again
The FCC computer or dart board, or whatever it is they use to make random selections, has done its thing, and letters are in the mail to the lucky stations who get to participate in the next round of EEO audits. One out of every 20 stations and MVPD operators joins this group every year. Outreach is the name of the game, and accurate documentation of this outreach is the key to avoiding a fine. Whatever you do, make sure it is easily found in your public file. Otherwise, you may find yourself following the example of the Emmis Honolulu television stations, helping to defray the national debt by writing out a check at the behest of the FCC.


Monday Morning Makers & Shakers

Transactions: 8/22/05-8/26/05
The Emmis-LIN sale by itself would have made this the biggest trading week of the year thus far, and it was amplified by the Emmis-Gray transaction. A pretty good radio week almost pushed to total to a half billion. There were four TV deals all told. One was for one of those difficult-to-find stations outside all Nielsen DMAs. That's what happens when you build your TV station in Guam.

8/22/05-8/26/05

Total

Total Deals

14

AMs

7

FMs

7

TVs

10
Value
490.815M
| Complete Charts |
Radio Transactions of the Week
Riviera in the desert
| More...
|
TV Transactions of the Week
Emmis sell-off begins
| More...
|


Transactions
260M WALA-TV & WBPG-TV Mobile AL-Pensacola FL (Mobile, Gulf Shores AL); KRQE-TV, KBIM-TV & KREZ-TV Albuquerque-Santa Fe NM (Albuquerque, Roswell NM, Durango CO); WLUK-TV Green Bay-Appleton WI (Green Bay WI); and WTHI-TV Terre Haute IN from Emmis Television License LLC, a subsidiary of Emmis Communications Corp. (Jeff Smulyan) to LIN Television Corp. (Gary R. Chapman). 18.75M escrow, balance in cash at closing. Existing duopoly in Mobile-Pensacola. WALA is a Fox affiliate on Channel 10; WBPG is WB affiliate on Channel 55; KRQE is CBS affiliate on Channel 13; KBIM is CBS affiliate on Channel 10; KREZ is CBS affiliate on Channel 6; WLUK is Fox affiliate on Channel 11; WTHI is CBS/UPN affiliate on Channel 10. [File date 8/26/05.]


Stock Talk
Nickel and Diming on Wall Street
Heavy oil-users benefited at both the pump and on Wall Street Friday following a drop in the price of a barrel of crude. Unfortunately, the only way crude figures into a broadcaster's bottom line is when it is referring to the language of wayward on-air talent, and the financial repercussion is generally the FCC hit if the language went too far over the line. Most broadcast issues stayed close to home, going up or down within the parameters of a dime or so.


Stocks

Here's how stocks fared on Friday

Company Symbol Close Change Company Symbol Close Change

Acme

ACME

3.89

-0.03

Media General

MEG

58.01

+0.06

Belo

BLC

22.86

+0.21

Meredith

MDP

49.89

-0.14

Clear Channel

CCU

32.89

+0.69

News Corp.

NWS

16.50

+0.22

Disney

DIS

24.13

+0.17

Nexstar

NXST

5.73

-0.02

Emmis

EMMS

22.10

+0.17

NY Times

NYT

29.75

-0.05

Entravision

EVC

7.87

+0.10

Paxson

PAX

0.45

+0.02

Fisher

FSCI

46.56

-0.11

Saga Commun.

SGA

13.30

+0.06

Gannett

GCI

68.83

+0.73

SBS

SBSA

7.18

+0.04

Gen. Electric

GE

33.67

+0.02

Scripps

SSP

49.97

+0.42

Granite

GBTVK

0.39

+0.03

Sinclair

SBGI

8.87

-0.16

Gray

GTN

10.59

-0.04

Time Warner

TWX

18.11

-0.04

Gray, C1. A

GTNa

9.90

-0.18

Tribune

TRB

33.89

+0.28

Hearst-Argyle

HTV

25.69

+0.20

Univision

UVN

26.53

+0.13

Jeff-Pilot

JP

51.17

unch

Viacom, Cl. A

VIA

33.22

-0.01

Journal Comm.

JRN

14.90

-0.10

Viacom, Cl. B

VIAb

33.01

-0.10

Liberty Corp

LC

46.89

-0.21

Wash. Post

WPO

802.50

+11.50

LIN TV

TVL

13.95

-0.11

Young

YBTVA

3.49

-0.09

McGraw-Hill

MHP

48.04

+0.63

-

-

-

-

-


Bounceback

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More News Headlines

TDGA 2005-2006 salary survey gets underway
TDGA, The Traffic Directors Guild of America, has launched its 5th Annual Salary Survey encompassing Traffic, Continuity, Office and Business personnel, using an online survey form to speed ease of completion and calculating results. The non-union membership association boasts some 5,000 participants and last year gather data from over 2,000 individual Radio and Television stations and Television networks. Many major group operators and multi-station clusters use it for guidance in budget planning, and it's proven to be invaluable when job applicants get to the topic of compensation. "Everyone benefits," continued Keene, "we're determined to keep it a win-win situation for employee and employer alike. And our privacy policy makes it literally impossible to identify an individual station, group or person. TDGA asks for identity, only to the point of verifying the completeness and clarity of answers. Once accepted, the e-mail identity goes into a special non-traceable database to permit TDGA to send via E-Mail) a PDF version of the final report, usually released in January of each year. We release a condensed synopsis to the broadcast trade press, but only participants or TDGA members can access the complete report. To participate in the survey:


RBR - Radio News

Arbitron diarykeepers remind radio of its power
Diary comments from Hurricane Katrina markets underscore the necessity of radio during a storm and, more importantly, when there is no power. As Americans throughout the Gulf region are putting their lives together following the ravages of Hurricane Katrina, it is apparent that residents throughout the region depended on the radio to stay informed about the storm. In a special examination of Arbitron Radio listening diaries that were kept during the week that Katrina hit the Gulf Coast, many listeners made it a point to acknowledge the hard work of local radio stations in the "comments" section of the diary. Others noted long listening spans with remarks such as "hurricane coverage." Katrina's power was such that the Summer '05 and Fall '05 Arbitron surveys for New Orleans and the Fall '05 Arbitron survey for Biloxi-Gulfport-Pascagoula will not be published. Katrina struck the Gulf Coast during the ninth week of the Summer survey; the comments listed below are from Week 9 diaries from Baton Rouge, Birmingham and Mobile radio markets.

RBR observation: Interesting sales and marketing edge for radio locally the next time you hear the complaint that radio does not work is to print the comments out and show a local advertiser and let them read for themselves. RBR recommendation for radio to get these comments tallied and circulated out to the total radio business now.
| Read more here |


TVBR Radar 2005
Television News you won't read any where else. TVBR--First, Accurate, and Independently Owned.

Americans watch TV at record levels
Nielsen Media Research reported the average American home watched more television the past TV season vs. any previous season. During the 2004-05 TV season (which started September 20, 2004 and just ended September 18, 2005), the average household in the U.S. tuned into television an average of 8 hours and 11 minutes per day. This is 2.7% higher than the previous season, 12.5% higher than 10 years ago, and the highest levels ever reported since television viewing was first measured by Nielsen Media Research in the 1950's. During the Sept 2004-Sept 2005 season, the average person watched television 4 hours and 32 minutes each day, the highest level in 15 years. Good news so view and print the charts.
09/30/05 TVBR #192

PPM ratings link Reality TV viewing and Morning radio listening
Arbitron released an analysis of the television and radio audience in Houston that details the link between viewers of reality TV shows to the morning radio shows they listen to the day after. Radio morning show personalities almost always talk about programs that aired on TV the night before. Reality TV shows, which feature unscripted outcomes or audience participation, are especially chat worthy for radio show hosts the morning after. View the details 09/30/05 TVBR #192

RBR First
Cox Radio has a dog in the HD Hunt

In the process of soliciting help for HD ID effort as Dick Ferguson, Cox Radio EVP, is spearheading the Cox project and is asking for help in putting together a research project to help identity the best way to go about labeling HD Radio side channels, as well as organizing a possible push (as we've reported) to get an expanded FM band for those side channels, instead of jeopardizing existing audio quality sharing with the main signal.
RBR observation: Some feathers were ruffled simply because RBR has a copy of the email and all the attachments to this report this morning which we highly recommend you print out and read as to gain knowledge of what is being kicked around on the HD level. RBR stands on the bases that information which is requesting broadcasters to think, ask for input, and possibly participate in should be shared by all and not just a select few. The radio medium has one shot at making HD work and it best be discussed with all and agreed on by all before you ask anyone to adopt a standard. RBR will establish an HD Bounce Back column send your thoughts and questions to [email protected] and Share in the Voice. 09/30/05 RBR #192

TVBR First
White Smoke at NAB, well, sort of
Confirmed - the committee's unanimous choice is David Rehr who currently is President of the National Beer Wholesalers Association. Yes, Rehr is the unofficial named successor to President & CEO Eddie Fritts. TVBR has confirmed that Rehr has a contract and the committee is anticipating to make an announcement once the contract is approved by Rehr's lawyers and his signature on dotted line.
TVBR observation: Trust we see White Smoke soon and for the better - give the guy a chance. Then watch and see who he surrounds himself with as this will point the course to the building of his structure of NAB. Just have to watch for the White Smoke.
09/29/05 TVBR #191

Product placement just isn't write?
FCC Commissioner Jonathan Adelstein has expressed his doubts about the use of product placement in today's commercial media environment - - particularly when the exchange of compensation for the placement is obscure. Another group has surfaced which also claims to be increasingly skeptical about the practice - - the Writers Guild of America (WGA).
TVBR observation: WGA and Commissioner Adelstein has 'doubts about product placement in today's commercial media environment.' TVBR says to the Commish get a life and pull your head out of the sand because you can not stop product placement. Our recommendation is to understand this - The client is the one buying the time and any quality programming will work as product placement is incorporated into the script without being noticed. It is not putting a Chevy Truck in a scene and blowing it up. To make our point even more clear relive the words of passion spoken by Jonathan Prince, creator & executive producer of American Dreams at 2005 NAB Vegas Prince on Product Placement
09/29/05 TVBR #191

Indecent descent?
Complaints way down
We thought indecency complaints were down in Q1 2005 over the final three months of 2004, over which time the total number received by the FCC was halved. Turns out that was nothing. TVBR observation: FCC Enforcement Bureau's Kris Monteith said that numerous indecency decisions have made it most of the way through the pipeline and were almost ready to be released. It will be interesting to see how far back they go datewise. Otherwise, it would appear there is a major chill in the air, with broadcasters staying well clear of the gray area between the acceptable and the indecent. Also, look for the number of accessibility complaints to go up in Q3, and particularly in September, in response to problems getting emergency information to variously-challenged citizens during this particularly active hurricane season.
09/29/05 TVBR #191

Study: Average person spends more time using media than anything else
The average American spends more time using media devices -- television, radio, iPods and cell phones -- than any other activity while awake, says a new study from Ball State University. Findings interesting - "As a society, we are consumers of media," The average person spends about nine hours a day using some type of media, which is arguably in excess of anything we would have envisioned 10 years ago."
TVBR observation: Read this again and again then compare it to your daily usage of a hand device say your Blackberry. Then look at the young or start with the Class of 2009 and their usage of devices. Now the biggie - How is TV going to measure them and get an accurate reading of their TV media usage today? The study says it - it is not like it was ten years ago. Get on with life and on the electronic LPM stick because 'Technology waits for no one'.
09/28/05 TVBR #190


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