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Welcome to TVBR's Daily Epaper
Volume 22, Issue 226, Jim Carnegie, Editor & Publisher
Thursday Morning November 17th, 2005

TV News®

Network ad sales plunged in Q3
Broadcast Cable Financial Management (BCFM) calculates that ad revenues for ABC, CBS & NBC combined were down 21.5% in Q3. Prime time was up modestly, but the big hit was a nearly 69% drop in sports revenues, due to the lack of the Olympics. Total net revenues were down 605 million in Q3 to 2.2 billion, compared to a year ago. "The dramatic decrease in network advertising revenues for the third quarter is both shocking and not surprising," according to BCFM member Mark Fratrik, Vice President, BIA Financial Network. "The loss of over 700 million in advertising revenues from sports programming caused by the lack of a Summer Olympics this year was to be expected, though it is still a large number. At the same time, prime time revenues partially lessened that impact with nearly 100 million more in revenues. Still, the networks need to be concerned as to the long term growth history. Looking back to 2003, another year without a Summer Olympics, the total network revenues have increased only 3% per year, above the inflation rate but lower than the overall economic growth of the country," said Fratrik. Based on figures compiled for BCFM by Ernst & Young, Q3 Prime Time revenues for the three networks rose 8.37% to 1.26 billion. Sports plunged 68.64% to 323 million - - still the second largest revenue source for the networks, albeit not the billion bucks baby it had been in '04. Morning was up 6.15% and Daytime 0.27% as the categories, besides prime time, that posted gains. Late Night was down 3.35%, Children 5.62% and News 2.90%. All in all, the three networks saw Q3 revenues decline 21.53% to 2.21 billion.

Double digits for Media General, both up and down
The down, as you may well have guessed, was in television, where October revenues were down 23.3% to 32.2 million. Meanwhile, the Interactive Media division at Media General saw revenues for the month rise 55.8% to 2.3 million - - still a small portion of the company, but a hot growth area. Newspaper revenues rose 2.2% to 58.6 million. "In the Broadcast Division, increases of 29.8% in Local advertising and 35.9% in National spot sales were driven by new revenue initiatives and fundamentally stronger advertising spending in several key revenue categories, including automotive and telecommunications, which enabled us to replace a substantial portion of last year's 18.9 million in Political revenues," said Media General CEO Marshall Morton.

Disney on deck today
All ears will be turned to the Mouse House quarterly conference call this afternoon. We don't expect CEO Bob Iger to actually announce a sale of ABC Radio, but everyone will be listening carefully for any indication of whether he is leaning toward or away from such a sale. The bids are in and, if there is to be a sale, it will likely be announced before the end of this month. Meanwhile, the Thomson/First Call consensus is that Disney will report a 4% revenue increase for its fiscal Q4 (July-September), with earnings per share down 4% to 18 cents.

FCC's Consumer panel meets Friday
The agenda of the FCC Consumer Advisory Committee this Friday looks almost like a typical agenda for the Michael Copps/Jonathan Adelstein road show, albeit with a more diverse slate of topics. "Media Ownership and Consumer Interest: is one of them, complete with speakers like MMTC's David Honig, Anthony Riddle of Alliance for Community Media and Prometheus Radio Project's Hannah Sassaman. Prometheus is the group that defeated Michael Powell's ownership rules in the Third Circuit. Another panel will is called "Recommendation Concerning Consumer Interest Obligations of Digital Television Broadcasters" - - prominently featuring Capitol Broadcasting's James Goodmon, who has logged quite a few frequent testifier miles in Washington over the past few years. There will be a demonstration of captioning and DTV technologies, and additional panels: "Perspectives on Telecommunications Competition and Consumers," Recommendation Regarding Access to VRS networks," and Public Participation via new Information and Communication Technologies at the FCC." Shirley L. Rooker, chair of the Committee, will oversee the event.

If at first you don't succeed...
Despite being soundly defeated in his first run for the US House of Representatives last year, Wisconsin broadcast group owner Dave Magnum is running again. "Being the optimist I am, I'm not unnerved by having to persuade 13% of voters in this district," Magnum told as he announced his candidacy for the Republican nomination in Wisconsin's 2nd District. That reference to 13% is what it would take to close the 26% gap last time, when 63% of the district's voters reelected Rep. Tammy Baldwin (D-WI) and 37% voted for Magnum.

Where's Dish? It's in Texas
EchoStar isn't going to take much of a revenue hit from giving away free Dish Network satellite TV service for 10 years to the entire population of the town that's agreed to rename itself "Dish" (11/16/05 TVBR #225). Only 125 people live in Clark, TX. Or rather, they did live in Clark, TX, until Tuesday night when the town commissioners officially voted to rename the tiny berg Dish, TX. Adjusting to the name change probably won't be a great hardship for townsfolk, since their town, 25 miles north of Fort Worth, has only been incorporated since 2000. Besides, it wasn't even the only town in Texas named Clark. Now they have Dish all to themselves.

Conference Calls 2005
Counting down the quarters at Susquehanna
There's not a lot to talk about when you're waiting to close on the sale of your company - - and conference calls for Susquehanna Media have never tended to be lengthy anyway. Since the company had already reported its financial numbers earlier this week (11/15/05 TVBR #224), the main news item out of yesterday's call was CEO David Kennedy assuring Wachovia bond analyst Bishop Cheen that Susquehanna Media does, indeed, plan to cash out its bonds immediately after closing on the sales of its radio and cable units in the first half of 2006. Providing some detail on the earlier numbers, Kennedy said the company's radio stations in San Francisco, Atlanta, Dallas and Cincinnati were the top performers for the quarter.


Katrina to drop media spend 1.13 billion in 2005-06
Hurricane Katrina will cause total media spend to fall by 1.13 billion from August '05 to September '06, making it the costliest natural disaster on record to hit the media industry, according to data released yesterday by PQ Media. The loss is estimated to account for 2.2% of media spend in the 20 affected DMAs in the 12-month period. Of these DMAs, New Orleans accounts for 64.8% of the total loss, or 732.5 million, a staggering 14.3% decline in the city's projected annual media spending. From a broader industry perspective, the total represents a decline of only 0.2% of the 887.37 billion in media spending expected in the next year.
| Read More... |

AOL, Yahoo, MSN, others
hang "sold out" signs; raise rates

The front pages of Yahoo, AOL and MSN are now sold out on big display ads for months in advance, according to a WSJ story yesterday. Websites offering car-buying tips are booked so far in advance - - up to 18 months in some cases - - that they are selling ads for next year in a process similar to the way network TV spots are sold. "We have a supply issue," says Joanne Bradford, chief media revenue officer at MSN told the paper.
| Read More... |

TVBR observation: Like the story mentioned, advertising backlogs also occurred during the dot-com boom in the late '90s, with online sales peaking at 8.1 billion in 2000. This time around, however, the spend bears fewer markings of a "land grab" and more evidence of better measurements and research backing the planning and buying. A longer and more proven data trail, if you will.

Media Markets & MoneyTM
FCC will neither delay nor deny TV deal
A chunk of KHIZ-TV is being sold in stock deal which has a group of individuals including Ray Webb, R. Todd Webb, Rae Ann Compton and Deborah Sweeney (the Webbs) up in arms. The deal is sending a portion of the station's license company, Sunbelt Television Inc. from Estates of Margaret R. Jackson and J. Riley Jackson (Ellen Zenz, Executor) to Initial Broadcasting of California LLC and TVPlus LLC (8/8/05 TVBR #154). The deal will just about double IBC's stake. However, the Webbs say the estates can't sell because they in fact do not own part of the station, a matter they have been trying to get the California court system to see their way. The FCC has ignored their effort to stop the deal, however, saying that it does not enter into matters which rightly belong in the court system, and that precedent tells it to proceed normally. As it turns out, the Webb's case was further damaged at the Commission level when they lost in court. Their new plea to hold up the deal while they try to appeal the court decision failed to hold water at the FCC on the exact same grounds as the first attempt.

Washington Beat
FCC liberates 10K
from Lake Charles TV

Soon-to-be-sold Liberty Corp. has uncovered a rash of file irregularities regarding its compliance with children's programming regulations during the current license renewal cycle. The latest will cost it 10K. The station is NBC 7 KPLC-TV in Lake Charles LA. FCC rules limit commercials during children's programming to 10.5 minutes an hour on weekends and 12 minutes an hour on weekdays. Did KPLC go over the limit? We'll never know, at least for the period from the beginning of 1997 through the end of 2000 - - the records were never filed, and the omission was only discovered in February 2005. In a lot of children's programming cases of late, the FCC has simply noted the problem and written it off as minor and/or inadvertent, or it's issued a fine-free admonishment. This time, given the length term of the violation, it went for the full bore fine. Otherwise, the FCC found the station to be operating in "...the public interest, convenience and necessity," and granted it its renewed license. It is being sold to Raycom as part of a group deal valued at just under 1B dollars.

There's meth to Walters' madness
John Walters is mad about drug abuse, and he ought to be - - he's the so-called national drug czar, as director of the White House Office of National Drug Control Policy. He's putting methamphetamines in the crosshairs with an ad campaign which will target cities where illegal production and sale of the substance are a particular problem. The 30-second TV spot has already hit the airwaves in Springfield MO. According to the Associated Press, it will also get air time in Atlanta GA, Austin TX, Charlotte NC, Chicago IL, Dallas TX, Denver CO, Des Moines IA, Grand Rapids MI, Miami FL, Louisville KY, Minneapolis MN, Pittsburgh PA, Portland OR, Raleigh-Durham NC, Sacramento CA, Salt Lake City UT, San Antonio TX, San Francisco CA, Seattle WA, Savannah GA and Tampa-St. Petersburg FL.

Diddy or didn't he? FEC is checking
The Federal Election Commission is looking into allegations that a get-out-the-vote organization formed by Sean "Diddy" Combs was actually a group promoting the campaign of Democrat John Kerry to defeat incumbent Republican George W. Bush. A conservative watchdog, the National Legal and Policy Center claims that Combs' group, Citizens Change and its "Vote or Die" campaign went over the line, and was taking political stance rather than simply trying to bolster the voter rolls. Although Combs was said by the Associated Press to have not endorsed either candidate on the record, actor Leonardo DiCaprio used the "Vote or Die" rallies to endorse Kerry. The FEC is looking into the charges.

ABC announces post-football Monday lineup
ABC has announced its Monday-night line-up to debut January 9th, after the season for Monday Night Football wraps up. The reality series "Wife Swap" returns to the network from 8-9 pm (ET), with two women exchanging very different families each week. The 9:00-9:30 slot goes to a new sitcom, "Emily's Reasons Why Not," starring Heather Graham as a successful young woman trying to get control of her love life. "Jake in Progress," starring John Stamos, returns to the ABC line-up in the 9:30-10:00 slot - - also focusing on relationships, but from the guy's perspective.

O'Hurley goes to the dogs
John O'Hurley isn't spending all of this time on the dance floor. He'll be back on TV next week to once again host "The National Dog Show Presented by Purina" on NBC. The broadcast has become a Thanksgiving Day tradition, airing after NBC's broadcast of the "Macy's thanksgiving Day Parade." This year's dog show broadcast will address the needs of pet rescue organizations in the hurricane ravaged Gulf Coast region. Purina's Pro Plan established "Rally to Rescue" with a goal of raising a million bucks to help smaller pet rescue organizations.

Who's going to get the new NFL package?
The New York Times reports that the National Football League is close to a decision on awarding its newest TV contract - - a package of eight games on Thursdays and Saturdays in the second half of the 2006 season. It's the first new NFL package since 1987 and highly sought after by broadcast and cable nets who don't currently have an NFL deal. There's one catch: the team owners want a partner who will help it create an all-sports network with the Thursday-Sunday package and also invest in the NFL Network, which they'd like to see carried on a lot more cable systems. That has many folks speculating that Comcast is the most likely winner, since it is working hard to turn OLN into a major sports network to compete with ESPN.

Ratings & Research
"Housewives" back on top with TiVo users
With a new episode being offered, ABC's "Desperate Housewives" returned to its usual position at the top of the ratings list with TiVo users. In fact, ABC had a triple play, with "Lost" and "Grey's Anatomy" claiming the next two slots.
| Tivo Top 25 |

Nets: DVRs benefit ad-supported television
As, anticipated (11/14 TVBR #223), a group of broadcast networks led by NBC and including CBS, Fox, and the WB, unveiled a DVR data presentation at a press conference for reporters and media agencies with their position on time-shifted TV audiences. The reason? To show why advertisers should include DVR playback viewing as part of their media buys. Nielsen begins on 12/26 tracking DVR playback data in its daily ratings reports. The data unveiled indicates homes with DVRs watch more - - not less - - television and could increase the average primetime audience for a program by an average of 4%. The nets highlighted multiple reports showing that DVR households watched 12% more television, and that they are exposed to a greater number of commercial impressions. The results of these studies, though early, confirm what the networks' own proprietary studies have found all along: DVRs increase the viewing of television's most popular programming, as well as commercials.
| Among the highlights presented: |

Nielsen Entertainment taps Gerbrandt for reports
Former Kagan COO Larry Gerbrandt has joined Nielsen Entertainment as Senior Vice President and Senior Corporate Analyst for Nielsen Entertainment. Among his first initiatives first Nielsen Entertainment Report, "Benchmarking the Digital Household," available now. Gerbrandt will utilize Nielsen Entertainment's Actionable Entertainment Intelligence (AEI), the cross-section of data sets from Nielsen's consulting and measurement businesses covering film, television, on demand, interactive, live event, music, mobile, and book entertainment verticals, as well as data from sister companies Nielsen Media Research and Monitor Plus, to produce strategy-minded analyses on many of the complex questions facing entertainment executives today. Other Nielsen Entertainment Reports due in 2005 include the Economics of On-Demand Programming and a series of research studies covering the Motion Picture, Mobile and Video Games entertainment verticals. Benchmarking the Digital Household is a distillation of eight years of regular, in-depth surveys in American households conducted by Nielsen Media Research.
| Examples of key trends from the analysis: |

Continental Electronics delivers transmitters
for HAARP project

They're not just working with broadcasting: Continental Electronics announced it is ahead of schedule in delivering 132 ultra-low-noise transmitters to U.S. government contractor BAE Systems for use in the High-Frequency Active Auroral Research Program (HAARP) near Gakona, Alaska. When the massive planar array for ionospheric research is completed in 2007, it will include a total of 180 Continental D616G 10-kW combined transmitters, which the company is upgrading specifically for HAARP. HAARP first installed Continental transmitters in 1993 when the project began. Said Robert Jacobsen, the HAARP project manager for BAE Systems: "Continental Electronics was the company that best met our rigorous specifications back in the early 1990s, when we began using their solutions. Their transmitter is a beautiful piece of equipment that does the job it is intended to perform extremely well. There is no other product available on the market that can do what we have designed it to do." The U.S. government is constructing the HAARP facility to conduct upper-atmospheric and solar-terrestrial research via a phased array transmitter, with an aim of learning more about the ionosphere, the atmosphere layer ionized by solar radiation with natural electrical currents that can be modulated with powerful radio signals. Much of the ionosphere's scientific potential lies in satellite communications, which depends on signals passing through it. The ionosphere also causes nighttime skywave bounces for AM and world-wide signal bounces for shortwave. BAE Systems today leads the installation at HAARP, which began in 1993 with 18 transmitters, grew to 48 in 1998, and is currently being expanded to a total of 180 transmitters -- all built by Continental with some components from BAE and other suppliers. The final expansion will bring the HAARP array to full power, with its ERP increasing from 84 dBW to about 96 dBW. It will have greater transmitter modulation capability, variable frequency range, and beam steering than any other high-frequency transmitting system in the world. Continental is under contract to supply six transmitters per month. The transmitters for HAARP needed to have extremely low noise characteristics to maximize the ability to manipulate the ionosphere.

Stock Talk
GM drives down Dow
General Motors fell to an 18-year low amid concerns about the financial condition and future prospects of the giant auto maker. That dragged the Dow Industrials down 12 points, or 0.1%, to 10,675. But other broad indices were slightly higher.

TV stocks were mostly lower. Saga had another big drop, down 5.8%, although there's been no recent news concerning the company. Univision fell 3%.


Here's how stocks fared on Wednesday

Company Symbol Close Change Company Symbol Close Change





Media General












Clear Channel




News Corp.
















NY Times
















Saga Commun.












Gen. Electric




















Time Warner




Gray, C1. A




















Viacom, Cl. A




Journal Comm.




Viacom, Cl. B




Liberty Corp




Wash. Post






















Send Us Your OpinionsWe want to
hear from you.

This is your column, so send your comments and
a photo to [email protected]

Since I'm one of those who went through the process of earning a 3rd Class FCC Operators License in order to obtain on-air work, I don't have a problem with the concept of air talent being required to get licenses. However, I'm not clear that it's the solution to the problem that Mr. Joyner is trying to address (11/16/05 TVBR #225). If memory serves, the creation of more radio stations in the 1980s which gave more choice to the listener and forced stations to become more competitive provided a major impetus to the rise of "shock jocks" like Howard Stern and Rush Limbaugh. They cut through the clutter and created cume magnets with loyal audiences providing strong AQH shares which generated revenue. Management loved it and, let's be honest, encouraged the misbehavior. At the same time, the growth of cable TV pushed the envelope for freedom of expression and made crassness more mass appeal (or at least more acceptable by mainstream society). It was no longer unusual to hear the word "ass" or explicit sexual references in TV promos airing during the family-friendly 7-9PM hours. There's another factor to consider. Fewer people are seeking careers in radio. Radio used to provide a great entry level opportunity into show business and mass media. Now there are abundant opportunities in cable television and, let's face it, TV is sexier than radio when you're a college kid looking to get into the communications business. Requiring a license puts up another barrier for a person who's making the choice between a career in television or radio.

Your thoughts ?

R. E. "Buzz" Brindle
Operations Manager/ Program Director
Albany, NY

Below the Fold

Who's going to get
the new NFL package?
Newest TV contract an package of eight games on Thursdays and Saturdays...

Media Markets & Money
FCC will neither delay
nor deny TV deal
A chunk of KHIZ-TV is being sold in stock deal...

Washington Beat
FCC liberates 10K
from Lake Charles TV
Soon-to-be-sold Liberty Corp. has uncovered a rash...

Ratings & Research
"Housewives" back on top
with TiVo users
New episode being offered but also ABC takes top 3 slots...

More News Headlines

Ralph Edwards
dead at 92

He was first a network radio star with "Truth or Consequences," then took the game show to television. All in all, Ralph Edwards hosted the show for 38 years. His other hit show, "This is Your Life," also started on radio and migrated to TV. Over the years Edwards was also active as a producer, including "The People's Court" which his company introduced in the 1980s. Edwards died yesterday of heart failure. He was 92. Just this week ABC announced plans to bring back "This is Your Life," with Regis Philbin as host.

November RBR/TVBR Digital Magazine

Ad Biz
Katrina's effect on national and spot business: We speak to agency buyers and reps about what Katrina's (and Rita's) effect has been on national spot business. How did the buys get done? How did the messages change?

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

Tough October all over at Tribune
Look at any segment at Tribune Company and you'll see that revenues were down in October. All in all, companywide revenues were off 3.5% to 439.2 million. TV group revenues fell 9.7% to 98.8 million - - not as bad as many of its peers. TVBR observation: It will not get any better so it is time to refocus on content and presentation.
11/16/05 TVBR #225

Nielsen getting down
to the PPM nitty-gritty
Getting closer to making a go or no go decision on whether to enter into a joint venture with Arbitron to use Arbitron's Portable People Meter (PPM) technology to measure TV and cable, as well as radio says it has expanded its internal due diligence team working on PPM to include additional experts in all areas. Pres/CEO Susan Whiting says "We are committed to moving with all deliberate speed..."
TVBR observation: Radio groups have been cautious about moving from Arbitron's diaries to PPM, several major TV groups have been pressing Nielsen to jump on the PPM bandwagon especially groups such as Tribune and the Fox O&Os who really dislike LPM. Many want to see passive measurement. Plus, out-of-home viewing counted. Advertiser/agency community is pushing hard for PPM and not just for radio wanting passive measurement for radio, TV and cable and would love to see a common ratings currency for all three. Meanwhile, TA-DUM, Whiting is having to make a decision at a time when her parent company is in upheaval. Who knows who will even own Nielsen a year from now? 11/15/05 TVBR #224

IMS playing it cool on VNU merger
VNU has publicly acknowledged that its seven billion bucks merger acquisition of IMS Health is in trouble and the about-to-be-jilted bride is keeping silent, at least publicly. IMS did, however, file with the SEC this internal email that IMS CEO Dave Carlucci sent to all employees last week: Read the Email . TVBR observation: To some extent, IMS has VNU over a barrel as the contract with IMS requires VNU to pay a 125 million breakup fee something neither VNU management nor its big shareholders want to see happen. Someone inside VNU can come up with a fresh business plan for '06 that refocuses the assets of VNU and outlines a more manageable media company. VNU has a ton of money invested in LPM and best stay focused. Pay the fee and move on before a life boat is tossed to ya. Will someone inside VNU/Nielsen email TVBR to VNU overseas and maybe this will sink in what has to be done.
11/14/05 TVBR #223

Advertiser/Agency Advisory
Council Pushing for PPM

Arbitron's first-ever council meeting brought a familiar refrain from the agency folks in a face-to-face forum with radio executives: Agencies want Portable People Meters (PPM) and they want them as fast as possible. 11/14/05 RBR #223

CBS's Poltrack:
VOD market worth 5 billion
It pretty much happened all at once - - VOD content deals everywhere and more mainstream media channels going online. will feature content and video on its home page. Microsoft's MSN and the Associated Press announced a partnership to develop an online video network that will stream video news feeds to sites that subscribe to AP's wire service. TVBR observation: May '04 we warned of iPods and now look at the new iPod video. Also warned this past January when we covered the NATPE that VOD was coming fast and again here it is in your face. So, now what are Radio and TV head honchos going to do about it at the local level? It is like the oxygen is being sucked out of the room.
11/11/05 TVBR #222

AOL cuts content deal with
The latest in series of recent moves by companies to increase access to digital video programming. Nary a day after the deal with The AP and MSN was cut for news content, America Online's news channel,, announced it will feature content/video on its home page., which has 3 million daily users, already offers video content from CNN, ABC, AP and Reuters.
11/11/05 TVBR #222

Interep jumps into TV...Spanish TV
Making its first foray into television in a deal with Una Vez Mas (UVM), the largest affiliate group for the Azteca America network. Azteca America Television Sales (AATS), will handle the 12 existing UVM stations and another dozen to be added in the next 18 months. Interep veteran Bob Turner, is in charge. TVBR observation: This deal should be good for both companies. We understand that UVM had talks with other potential reps, but saw Interep as being hungry to open a new growth avenue - - something that's been lacking at the radio rep firm in recent years.
11/10/05 TVBR #221

Microsoft and AP team for "AP Online Video Network"
The deal is the first time MSN Video player technology will be syndicated to sites outside its network. will continue to be the exclusive video news content partner for MSN's network of sites. AP will provide approximately 50 video clips per day covering national, international, entertainment, technology and business news. TVBR observation: Think bad news? Maybe for the Network dinner hour evening news but - No, this will open local sales opportunities for TV as local advertising is used to hit the consumer when they are ready to make key purchases. Re-read the above as no place does it mention - Local news Content.
11/10/05 TVBR #221

Alarcon skewered for move into TV
One irate money manager suggested that SBS should walk away from the 37.5 million bucks purchase, saying it had cost the company some 300 million in market capitalization on Wall Street. "You've gone in my book from a free cash flow generator after your refinancing really to an entity with unknown spending habits and potentially more spending down the road - - a real black hole,"
11/09/05 TVBR #220

Regional Sales Director
WideOrbit, the broadcast television industry's leading traffic, sales, and billing software solution has expanded into Radio. Looking for the right salesperson to join the team with experience working for a radio station or group with a understanding of sales, traffic, and billing systems. Excellent growth opportunity.
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