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Welcome to TVBR's Daily Epaper
Volume 23, Issue 227, Jim Carnegie, Editor & Publisher
Tuesday Morning November 21st, 2006

TV News ®

Fox cancels OJ special
Bowing to public outrage and affiliate worries, Fox Television announced yesterday afternoon that it had cancelled the O.J. Simpson interview special, "If I Did It," which had been scheduled to air in two parts next week (11/16/06 TVBR #224). Publication of Simpson's book, which also dealt with how he would have killed his ex-wife, Nicole Brown-Simpson, and Ron Goldman, although he denies that he did, has also been cancelled by the publishing arm of News Corporation. "I and senior management agree with the American public that this was an ill-considered project. We are sorry for any pain this has caused the families of Ron Goldman and Nicole Brown-Simpson," said News Corporation CEO Rupert Murdoch in an announcement canceling the book and TV special.Goldman's family had organized petitions urging stations not to air the program and for bookstores not to stock the book. Numerous TV critics across the country had declared it a new low for television and several Fox affiliates had already announced that they would not air the two-part special. Now, none will.

TVBR observation: We foresaw the public outcry against the program last week when we said it was "just sick" (11/16/06 TVBR #224). Apparently a lot of people agreed. News Corporation is now in damage control mode as the result of some poor decision making. Yes, it probably would have been big numbers for a sweeps month, but with a worse backlash from the public and advertisers. We wonder why they didn't see this coming when they decided to publish the book and create the TV special to go with it.

Hinchey goes home for media review
In case you thought that the House Democrats, basking in the glory of their new claim on majority status, would have lots of things on their agenda besides media issues. Think again. Maurice Hinchey (D-NY), the driving force behind the Future of American Media Caucus, isn't waiting for FCC Chairman Kevin Martin to schedule a public forum in his district. He's holding his own. It'll be held this evening from 6:00PM-8:30PM in Hyde Park, and the guest of honor will be Democratic Commissioner Michael Copps, adding to his already awesome collection of frequent forum miles. The session "...will feature various local community leaders, will discuss how media consolidation impacts local news coverage with a special focus on the Hudson Valley." The public will be invited to participate, and a transcription of the event will be submitted as evidence in the Commission's ongoing review of media ownership regulation.

TVBR observation: Hinchey represents New York's 22nd District, which is anchored on the Southeast by Newburgh, runs up to Poughkeepsie and Kingston, and extends Westward in a panhandle which includes Binghamton, and at the Westernmost extremity, includes a sliver of turf to the North which includes Ithaca. That means that Hinchey's district is part of three Nielsen DMAs (Binghamton is one in its own right, Poughkeepsie is part of New York City and Ithaca is part of Syracuse) and four Arbitron markets (Newburgh-Middletown, Poughkeepsie, Binghamton and Ithaca). Maybe that's why Hinchey has a heightened awareness of media issues.

TVBR observation:
Just wishful thinking
Had Clear Channel CEO Mark Mays talked to his lawyers before he was interviewed by David Lieberman of USA Today about the management-backed plan by Thomas H. Lee Partners and Bain Capital to buy out the public shareholders? When asked what will happen in markets not up for sale where Clear Channel Radio has clusters with more stations than now allowed under FCC rules, here is what Mays said: "We're looking at that right now. We would expect that our grandfathered stations would continue to be grandfathered. But that's something we have to work through with the FCC." Time for a reality check. In order for the grandfathered clusters to remain in place without a waiver, the transaction would have to qualify to be filed on FCC Form 316, which is for corporate restructurings that don't change the controlling shareholder(s) and involve the transfer of less than 50% of the voting interests. Clearly the transfer of well in excess of 90% cannot qualify. The sale of all stock of Clear Channel Communications to the new entity will have to be filed on FCC Form 315 and all of the stations to be transferred would have to comply with the current ownership rules. The only option would be to ask for a permanent waiver of the ownership rules to retain the now-unlawful clusters just as they are. That would have been a hard sell when the Republicans were firmly in control of the government and would be impossible to pull off since the November 7th election. We doubt that the new partners of the Mays family want to see this deal held up for months and months at the FCC as opponents of deregulation battle mightily against approval of any permanent waiver, with no guarantee or even likelihood of eventual approval. What will almost certainly happen is that the proposed new owners of Clear Channel will request temporary waivers to allow time for orderly divestitures - both for excess radio stations and any TV/radio combinations that don't conform, since Clear Channel is working to sell off its TV stations anyway. The private equity consortium buying Univision has asked for six months, so it seems unlikely that the private equity consortium buying Clear Channel could justify any longer period than that.


TV turned up in October for Tribune
Company-wide, revenues were down 1% to 428 million in October for Tribune Company. TV revenues rose 5.1% to 96.4 million, with strength in political, auto and telecom partially offset by weakness in restaurant/fast food, movies and retail. The bright spot was the Radio/Entertainment segment, where revenues were up 36.7% to 14.4 million. That was because the Chicago Cubs had more home games in October this year, which meant more ticket sales and likely some extra ad dollars for WGN-AM Chicago, the company's only radio station. The drag accounting for all of the red ink for the month was the newspaper business. Print ad revenues fell 4% to 254 million. Retail was up 3.3%, but national fell 15.5% and classified was down 3.8%. Circulation revenues were down 6% to 43.1%. As Tribune's board of directors evaluates bids for pieces of the company, or the whole thing, year-to-date revenues for the whole operation are down 1.6% at 4.48 billion, with print and broadcasting both down for the first 10 months of 2006.

Consent decree chases
the thunderclouds away

The thunderstorm with tornado potential which hit the Washington DC area 5/25/04 is long gone. Now, finally, is the regulatory tug of war between Fox Television's WTTG-TV Channel 5 and the FCC. The FCC charged that on two occasions, the station warned viewers aurally that a thunderstorm/tornado watch was in effect without providing visual warnings to communication emergency information to the hearing impaired, and proposed a fine of 16K. Fox and the FCC have now decided it is in the best interests of both to put this matter in the past once and for all via the consent decree route. Fox admits no wrongdoing and will not be liable to further action on the two NALs. In exchange, it will fire off a check for 12K to the US Treasury, will make sure that it provides visual emergency warnings via closed captioning, and if that's not available, it will use an alternative method even if it means resorting to as primitive a method as chalk and a blackboard held in front of a camera. It will also provide relevant information and training to all station personnel.

TVBR observation: Our second-grader was worried recently that something might go down on his "permanent record" at school. We are not aware if there is a policy whereby he can negotiate with his principal and work out an alternative procedure to dispense with the matter, but the FCC and other government agencies do have the consent decree when for one reason or another the government and the governed cannot agree and the cost of pursuing the matter exceed whatever the hassle quotient may be. Of late, it's most frequent use has been to put indecency disputes to bed. This emergency closed captioning dispute seems to be more routine than most of the other cases that wind up in consent decree that we've seen, but it points out that this particular avenue of dispute settlement apparently is available for almost anything if you're willing to drag the case out that far.

Guess the industry
"We provide integrated seamless efficiencies that centralize functionalities with ground-breaking optimization enhancement, customized integration opportunities, maximized relational interface paradigms and streamlined solutions. On a platform."

TVBR observation: If this sounds something you might say or write, it's time to walk over to someone who is employed in some sort of creative endeavor, preferably in the advertising field, and have them smash a two-by-four over your head. Then the two of you can sit down and figure out how to explain to a non-android just what it is you and your company do for a living and how its different and better than your competition. We're not going to say which industry specifically inspired us to go on this mini-rant, but as frequent readers of press releases, suffice it to say that the prose we put between the quotes above did not come from any one company, but could have come from any of a zillion companies that do anything which might involve a computer.


Ad Business Report TM

Charter launches dynamic OnDemand ad pilot
Charter Communications has launched its field pilot for dynamic Charter OnDemand advertising insertion solution in St. Louis. St Louis is the largest media market to date to deploy dynamic on demand advertising and follows the successful completion of the company's lab trial in which advertising was dynamically inserted into on demand programs, enabling individual ad copy to be refreshed and rotated among viewer sessions within minutes. Atlas, C-COR, Harmonic and TVN Entertainment are full participants for the software, hardware and workflow management required to implement the system. The field pilot was deployed in Charter's St. Louis market in late October. Charter is partnering with Ogilvy whose national client is a participant in the pilot. Mediaedge:cia also has a client participating. This deal follows another from Mediaedge:cia with MTV Networks and Sunflower Broadband for their client, Paramount Pictures. Maria Mandel, Partner, Executive Director Digital Innovation for OgilvyInteractive, said commercial content provided by advertisers is being placed in pre- and post-roll positions around free on demand content provided by Hollywood.com Television and Vehix.com. Video sessions are created as they are ordered and allow ad copy updates without having to incur the cost of re-encoding and re-distribution. The ultimate goal is to demonstrate the ability to immediately direct targeted messages to the right audience at the right time and reduce lead time from weeks to days. In the past, most VOD advertising was tied to specific content for the run of the ad, which forced advertisers to commit to a lead time of several weeks and run generic copy.

Cold Stone chooses Saatchi & Saatchi
Cold Stone Creamery announced the selection of Saatchi & Saatchi as its new AOR. The New York office will generate new ideas and be responsible for all strategic brand navigation and integrated advertising development. Founded in 1988 in Tempe, Ariz., Cold Stone Creamery is an independently owned franchise system with nearly 1,400 stores across the US. While redefining the category, Cold Stone has taken a bite out of the 20.7 billion U.S. ice cream industry to become the sixth best selling ice cream brand in the U.S. Saatchi will assist Cold Stone in achieving their vision: "The world will know us as the Ultimate Ice Cream Experience by making us the #1 best selling ice cream brand in America by December 31, 2009."


Media Business Report TM
Yahoo! partners with 150 newspapers
Yahoo! announced a strategic partnership with more than 150 daily U.S. newspapers to deliver search, graphical and classified advertising to consumers in the communities where they live and work. Beginning with recruitment advertising, the newspapers and Yahoo! HotJobs are bringing one of the largest online audiences, targeting capabilities, local expertise and advertising power to recruiters. In addition, the consortium plans to work together to provide search, content, and local applications across the newspapers' websites. Adding to Yahoo!'s list of partners across its search, graphical and classified advertising networks, such as eBay and Right Media, members of the newly formed consortium include: Belo Corp.; Cox Newspapers Inc.; Hearst Newspapers; Journal Register Company; Lee Enterprises, Incorporated; MediaNews Group; and, The E.W. Scripps Company. The newspapers in this consortium reach 38 states, and include major market dailies such as the San Francisco Chronicle, The Dallas Morning News, The Atlanta Journal-Constitution, Houston Chronicle, Denver Post, Rocky Mountain News, St. Louis Post-Dispatch, San Jose Mercury-News, New Haven Register and the Commercial Appeal (Memphis). Yahoo! and the consortium have initiated plans to work together in: Advertising: Use Yahoo!'s technology platform to sell online advertising for the newspapers' Web sites. Search: Use Yahoo!'s search monetization functionality on newspaper Web sites, such as Web search, downloads of the Yahoo! toolbar and sponsored search. Local: Offer Yahoo!'s local products such as Yahoo! Local listings, Yahoo! Maps and Event Listings on the newspaper Web sites. Content: Use Yahoo!'s extensive network to distribute the newspapers' content in areas such as Yahoo! Search results, Yahoo! News and other content verticals.


Washington Media Business Report TM
New Congress seen as net neutral
The prospects for legislation protecting the concept of network neutrality are on the upswing with the new Democratic-led Congress set to report for work after New Years. The Democratic leaders set to take control at the House Committee on Energy and Commerce, John Dingell (D-MI) and Ed Markey (D-MA), are known to be strongly in the net neutrality camp, and Dingell has already discussed modifying or rewriting the Telecom update which stalled after Republicans put it forward earlier this year. According to Information Week, watchdog SaveTheInternet is also pleased that all of the senators it listed on its side were re-elected, and fresh allies are coming into the Senate in many of the seats which changed hands one way or another.


Entertainment Media Business Report TM
CBS waits for "3 lbs." to heavy-up
CBS executives remain confident that the brainy drama "3 lbs." will build a stronger viewer base after a so-so debut last Tuesday. Episode two of the medical drama about two very different brain surgeons tonight will feature a pregnant patient who resists having radiation treatment for her brain tumor because it will likely kill her unborn child.
| See a clip from the episode "Of Two Minds." |


Internet Media Business Report TM
TV Guide Online signs with Fox IM
to syndicate program listings grids

Gemstar-TV Guide announced today its TV Guide Online division has signed agreements to syndicate its program listings grids to several of Fox Interactive Media's leading properties, including FOXSports.com and IGN Entertainment. In addition, the Company has expanded its syndication agreement with Fox TV Stations, which includes 25 FOX local TV Station websites. The agreements group the right to use TV Guide's interactive program listings grid on their websites and certain mobile extensions. Additionally, they may incorporate TVGuide.com's programming data into editorial content and services on their websites. As part of its work with FOXSports.com, TVGuide.com will serve customized TV listings grids, providing comprehensive coverage of sporting events on all FOX Sports regional nets. Other provisions include promotional considerations for TVGuide.com including brand attribution and traffic referrals to TVGuide.com from the licensed websites. The agreements also include an exchange of content, where Gemstar-TV Guide may use news, highlights and other editorial features from FoxSports.com on TVGuide.com.

Nissan expands online advertising alliance with Microsoft
Nissan North America will expand its Web advertising initiatives across online properties of Microsoft, the two companies announced today. This expanded alliance will enable Nissan to more powerfully engage with consumers across multiple digital touch points throughout Microsoft Digital Advertising Solutions including MSN, Windows Live, Live Search, Xbox and Windows Mobile. Furthermore, this new alliance allows Nissan to work directly with Microsoft content developers, strategists and subject matters experts to help Nissan reach its target consumers. Microsoft Digital Advertising Solutions is designed to connect advertisers with their target audiences across such devices as PCs, Xbox video game systems, Web-enabled mobile phones and personal digital assistants (PDAs). Through these channels, advertisers can reach more than 465 million consumers each month across the MSN network and millions more through Windows Live, Xbox Live and Microsoft Office Online. Key parts of this alliance will include sponsorship of the "Forza Motorsport 2" console game on Xbox 360 and global tournament on Xbox Live, a co-branded "blogazine" for Infiniti on MSN called "Open for Design" (http://openfordesign.msn.com ), search advertising with Microsoft adCenter, behavioral targeting, and participation in pilot advertising programs within Windows Mobile and Microsoft Office Live. Central to the alliance is a customized regional dealer strategy that involves the embedding of Nissan and Infiniti dealerships into Live Local Search mapping technology and geo-targeted advertising for dealerships.

IBC to offer up to 40 Fox News TV clips daily
Internet Broadcast Corp. (www.ibctoday.com), an online destination for breaking TV news from around the globe, and FOX News announced a content sharing agreement that gives viewers greater online access to international and national TV news stories. Under the agreement, www.ibctoday.com will bolster its roster of content with up to 40 FOX international and U.S. national news, business and entertainment video stories a day. IBC also has exclusive agreements with Associated Press TV, Canadian Broadcasting Corp., as well top South-Western Asian, Eastern European and African local television broadcasters.


Ratings & Research
CBS and ABC still sweeping to victory
The November sweeps are progressing pretty much as expected, with CBS out in front for the Households crown and ABC, with its slate of newer, younger-skewing series, leading in the coveted 18-49 demo. The only surprise has been NBC, which has shown real strength in the 18-49 demo, based mainly on Sunday Night NFL football and the new hit "Heroes." Through 18 days of the November sweeps, the HH tally shows CBS winning 10 nights, ABC 6, and NBC 2. For 18-49 the tally is ABC 9, CBS 5, NBC 4 and Fox 1 (ABC and CBS tied one night).
| Here is the scorecard |


Stock Talk
A mixed day
Investors liked all of the M&A action lately, including last week's Clear Channel deal and a move yesterday to create the world's largest copper mining company. But they remain a bit worried about the strength of the underlying US economy. Having been driven up to dizzying heights, the Dow Industrials fell 26 points, or 0.2%, yesterday to 12,317. Other major barometers were mixed.

TV stocks were also mixed. News Corporation fell 1% before it announced cancellation of a controversial OJ Simpson broadcast. Journal had a good day, up 3.5%. Sinclair rose 2.5%.


Stocks

Here's how stocks fared on Monday

Company Symbol Close Change Company Symbol Close Change

Acme

ACME

5.17

+0.02

LIN TV

TVL

9.05

-0.05

Belo

BLC

18.33

-0.18

McGraw-Hill

MHP

65.22

-0.12

CBS CI. B CBS

29.78

-0.02

Media General

MEG

38.10

-0.07

CBS CI. A CBSa

29.81

+0.16

Meredith

MDP

53.51

+0.16

Clear Channel

CCU

35.26

+0.04

News Corp.

NWS

21.86

-0.23

Disney

DIS

33.12

+0.18

Nexstar

NXST

4.30

+0.12

Emmis

EMMS

12.35

-0.07

NY Times

NYT

24.31

-0.24

Entravision

EVC

7.41

+0.01

Ion Media

ION

0.75

-0.02

Fisher

FSCI

45.27

+0.64

Saga Commun.

SGA

8.84

+0.17

Gannett

GCI

59.89

+0.02

SBS

SBSA

3.96

unch

Gen. Electric

GE

35.98

-0.27

Scripps

SSP

49.12

-0.38

Granite

GBTVK

0.06

unch

Sinclair

SBGI

9.76

+0.24

Gray

GTN

6.00

-0.10

Time Warner

TWX

20.58

+0.15

Gray, C1. A

GTNa

6.78

-0.02

Tribune

TRB

32.30

+0.05

Hearst-Argyle

HTV

25.35

-0.14

Univision

UVN

35.43

-0.01

Journal Comm.

JRN

11.90

+0.40

Wash. Post

WPO

734.60

+0.81

Lincoln Natl.

LNC

65.73

+0.55

Young

YBTVA

2.29

+0.02


Bounceback

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TV Media Moves

Tom Cochrun
sets retirement

Veteran Indianapolis radio/TV newsman Tom Cochrun has announced plans to retire January 4th as News Director of LIN's WISH-TV, a position he has held since 2003 (8/7/03 TVBR #154). Cochrun began his news career at WERK-AM Muncie in 1965 and was on-air at WIBC-AM Indianapolis from 1969 to '79 when he made the transition to TV, at WISH, then WTHR and finally back to WISH.

Changing of the guard at OAB
With the coming retirement of Carl Smith, Vance Harrison Jr. has been selected to serve as the new President of the Oklahoma Association of Broadcasters. "Vance Harrison brings a successful broadcasting background and an extensive knowledge of the OAB and the standards that have been established under Carl Smith," said OAB Chairman Roger Harris. Harrison started in radio in Chicago and was transferred to Oklahoma City when Diamond Broadcasting acquired KOMA/KRXO. He remained with the stations as Market Manager when they were acquired by Renda Broadcasting. In recent years, after leaving radio management, Harrison has served as President/Owner of Creative Marketing.


Below the Fold

Ad Business Report
Charter launches dynamic OnDemand ad pilot
Charter Communications has launched its field pilot for dynamic Charter OnDemand advertising insertion solution in St. Louis, the largest market to date.

Media Business Report
Yahoo! partners with
150 newspapers

Newspapers are in desperate need of some help - and it looks like they've found some.

Washington Media Business Report
New Congress seen as net neutral
The prospects for legislation protecting the concept of network neutrality are on the upswing.

Ratings & Research
CBS and ABC still
sweeping to victory
The November sweeps are progressing pretty much as expected, with CBS out in front for the Households crown and ABC for 18-49, but there is one surprise.


Stations for Sale

South Georgia
AM-FM-LPTV Combo
Includes 25kw FM
Zoph Potts @ (252) 940-1680
[email protected]


More News Headlines

Second generational Redstone lawsuit
Now it is Michael Redstone suing his uncle, Sumner Redstone, claiming he was cheated out of his share of the family fortune. A lawsuit filed in Massachusetts this month claims that Sumner and his brother, Edward, who is Michael's father, pulled off a series of low-value transactions in the 1970s and '80s that bilked Michael out of his share of National Amusements, the family company through which Sumner Redstone controls both CBS Corporation and Viacom. Sumner's own son, Brent, has a lawsuit pending which seeks to break up National Amusements and give him his share of the business. A judge in Maryland refused to toss out that lawsuit in an August ruling (8/11/06 TVBR #156).


International

Private equity
scores down under

Kohlberg, Kravis, Robert & Co. was part of the private equity consortium outbid for Clear Channel Communications, but KKR now has another media investment deal in Australia. It is setting up a joint venture valued at four billion Australian bucks (3.1B US) with Seven Network Ltd. to invest in TV, magazines and online media businesses. There is no word yet on just what those ventures will be, since this deal is really about lining up cash for deregulation. A new law easing foreign-ownership limits on newspaper, radio and TV ownership will take effect in 2007 and Seven Network, controlled by media mogul Kerry Stokes, is getting ready to pounce. He will have competition, though. Other private equity companies have already cut deals with two other major players in Australian media. As previously reported, News Corporation, which began as an Australian newspaper company, has expressed an interest in acquiring a radio group once dereg takes effect (9/11/06 TVBR #176).


TVBR Radar 2006
Television News you won't read any where else. TVBR--First, Accurate, and Independently Owned.

Clear Channel deal
requires creativity
Private equity funds are moving into broadcasting in a big way, but they have to dodge some landmines at the FCC. Thomas H. Lee Partners already has a 23.3% attributable interest in the group buying Univision and both it and Bain Capital hold 25% attributable ownership stakes in Cumulus Media Partners, so it is going to take a creative ownership structure to make their 26.7 billion buy of Clear Channel comply with the FCC's ownership rules. No one is saying yet how the ownership issues will be dealt with, but it has already been worked out.

TVBR observation: Lowry Mays and other folks have dealt with this issue before, so they know how to solve FCC attribution problems. As the headline stated the deal required creativity and to view the shrewd details see
11/20/06 TVBR #226

Still no accreditation for PPM
Wednesday's meeting, 11/15/06, of the super-secretive Media Ratings Council (MRC) still left Arbitron's Portable People Meter without MRC accreditation. Arbitron says PPM still has to answer MRC concerns in two areas, but doesn't say what they are.

RBR note: The entire statement by Arbitron and what you need to know is in this issue in our Ad Business Report section.
11/17/06 RBR #225

A stocking-stuffer's view
of Clear Channel Television
There's a little something for everyone in the grab bag that is the Clear Channel Television Group, now on the market just in time for the 2006 gift-giving season. Are you interested in market size? It runs from #5 to #202 with few significant gaps. Are you looking for a specific network affiliation? There are seven allied with Fox, seven with NBC, seven with CW, six with ABC, six with CBS, four with MyNetworkTV and two with Telemundo. Do you hate networks? There are three independents.

TVBR note: For anyone interested we have the complete list and details.
11/17/06 TVBR #225

What's for sale in
Radio at Clear Channel
Look at the shopping list RBR has done the work for the Radio Business. Key is finding the right player that wants these stations in these markets.
11/17/06 RBR #225

Advertisers missing the mark
with boomer audience

Baby Boomers are frustrated that television and advertisers place too much emphasis on younger audiences and are missing the chance to connect with Boomers in their peak earning and spending years, according to the findings in TV Land's New Generation Gap Study. The study, which included input from more than 4,000 respondents nationwide, was commissioned to deepen the networks' understanding of Boomers and was conducted by San Francisco-based Age Wave and Harris Interactive. Boomers expressed outright annoyance that television and advertisers

TVBR observation: Well if you want the facts then read this report in TVBR.
11/16/06 TVBR #224


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