Omnicom Media Group Digital has signed on as the first strategic partner for the newly created NBC Universal Digital Studio, which will develop and produce branded content for NBC digital properties. With the deal in place, Suhaila Suhimi, OMD's East Coast digital director, has left the agency to join the new studio as director of brand strategy. "This is the first time that programming with the distribution potential of NBC Universal will be centered from the start around advertisers," said Matt Spiegel, CEO of OMG Digital. Sister OMG companies Davie Brown Entertainment and OMG Entertainment and Sports are also involved in the partnership. First up from the new digital studio is "Gemini Division," a sci-fi series starring Rosario Dawson and Justin Hartley, which is being developed around Intel, Microsoft, UPS and Acura TSX. Slated for 50 short-form episodes, it will premiere online this summer. OMG Digital and the NBC Universal Digital Studio are also developing "Woke Up Dead," a comedy about a college student who turns into a zombie. Both shows will be co-produced by Sony Pictures Television International and Electric Farm Entertainment, with NBC Universal Digital Studio acquiring all domestic distribution rights, including broadcast TV. In addition to showing the Webisodes on still-unidentified NBC Web properties, plans also call for destination sites, online games, character blogs and mobile components. While some reports said that NBC Universal would preview the two shows on broadcast or cable TV prior to their Internet premieres, the network could also choose to later develop the shows into half-hour TV episodes with both original and additional content. NBC recently experienced an unsuccessful pickup of the MySpace series "Quarterlife" for its broadcast network, but has high hopes for the conversion of its own popular scifi.com Webisode series "Sanctuary" into a cable series on the Sci Fi Channel. In her new position, Suhimi will report to former MSN executive Cameron Death, who was named NBC Universal's vice president of digital content last October and will now serve as vice president of the digital studio. Nichol DeGruccio, most recently NBC Universal's executive producer for original online video series, was named executive producer, digital production for the new studio.
Despite offering a dour view of the economy's impact overall, Tribune Co. chief Sam Zell said the broadcasting group is performing better than expected. Zell said that so far in 2008, the 23 local stations are "ahead of our projections for this year and (are) outperforming the industry average." This was in sharp contrast to the outlook he painted for the publishing business, where "revenue trends ... are significantly worse than we expected," resulting in a major hit. In the first quarter--final results have not been reported yet--print ad dollars are expected to fall by double digits, compared to the same period a year ago. The principal hurdle: the continued flow of classified ad dollars to the Internet, an issue all newspapers face. An even more particular trouble spot comes from the papers in Ft. Lauderdale and Orlando, Florida, where the economic problems in the state contributed sharply to the classified decline. Zell, who took over the company a year ago in an $8.2 billion transaction, said his intention from the get-go was to drive growth of the company's existing portfolio, but the climate has changed. "Our goal was to keep everything together and to preserve the ownership of all of the assets," he said on a conference call Thursday. "The significant erosion in the first quarter has certainly put that plan into some question. We are forced to consider the possible divestiture of some of our assets." That was not a total surprise, since the company has been approached and is considering selling Newsday in the New York area. One asset Zell has always said would be sold is the Chicago Cubs baseball team. Financial deal books will be sent to potential Major League Baseball-approved buyers in the next 10 days, he said. Zell said that he and the newly hired members of his management team have focused on re-engineering Tribune's culture, looking to give more autonomy to managers at the local papers and stations. "We've made significant strides in transforming the kind of culture, but we certainly have a lot of work left to do," he said, adding that the company needs to be "faster and leaner." He has made efforts to engage in discussion and solicit ideas from employees at all levels, via a Web site. Some 2,000 e-mails came in within the first month--with "a very large number of these giving us insight into opportunities to dramatically improve the company going forward." "Employees are starting to take initiative--something that had never happened before--and to launch revenue-generating projects and programs," he said. One initiative that Tribune has launched is combining the operations of the company's CW station in South Florida with its Fort Lauderdale-area paper. The publisher of the paper is now overseeing operations at both, with a general manager doing the same for sales. Among the broadcast group are CW stations in six of the company's top 10 markets. The company recently switched its San Diego station's affiliation from CW to Fox, which the company said added some $150 million in value for the station. The company also said it hopes to squeeze more revenue from its six Fox stations. Among the papers it operates are the Los Angeles Times and Chicago Tribune, its cornerstone assets. In 2007, publishing ad revenue was $2.9 billion, down 9%; and the broadcasting TV group brought in $1.1 billion in revenue, down 2%.
The New York Times Company opened what is sure to be another round of discouraging revenue results from newspaper publishers Thursday, announcing that total ad revenue fell 9.2% in the first quarter of 2008 compared to the same period in 2007, to $458 million. This squeezed operating profit from $54.5 million to just $6.2 million. NYTCO President and CEO Janet L. Robinson faced the grim results head on, explaining that "advertising revenues decreased in the quarter as weaker economic conditions compounded the effects of secular change in our business." Like virtually every other major newspaper publisher in the past few years, NYTCO has seen classified and display ad dollars migrate from print to the Web. Now that process is accelerating because of a broader economic malaise. Looking for bright spots, Robinson pointed to the continued growth in online revenues, up 11.6% to $82.9 million. She added that altogether, the company's Internet business contributed 11.1% of revenues in the first quarter of 2008, versus 9.5% during the same period last year. But the online picture isn't actually all that rosy. The apparent increase in online's share of overall revenues is, in large part, simply a result of the overall revenues contracting. Had online revenues not grown at all, remaining flat at $74.3 million, their percentage contribution would still have risen to 10.5% of total revenues, given the total decline. Furthermore, the current growth rate in online revenues is about half what it was in the first quarter of 2007, when they increased 21.6%. This represents a slowdown in terms of dollars added, from $13.2 million in the first quarter of 2007 to $8.6 million in 2008.
Starcom USA and TNS Media Research have announced an agreement in which Starcom will be the first media agency to take TNS' new DIRECTView national TV measuring service. Based on satellite TV distributor's DirecTV's national footprint, the announcement claims that DIRECTView will be the largest national audience measuring service in the U.S. DirecTV's has nearly 17 million subscribers nationally. Earlier this year, DirecTV and TNS announced the creation of DIRECTView, a national audience measurement panel of 100,000 DIRECTV subscribers who can opt-in to participate. Nielsen Media Research's national TV panel, for example, is now at some 12,000 households, with plans to triple its size by 2011. That panel is more broadly based across cable, satellite, and non-digital homes, using Nielsen's own propriety measuring technology. In response, Tracey Scheppach, senior vice president and video innovations director for Starcom USA, says: "It's progress, not perfection." She says the goal is to get second-by-second TV viewing data from TNS starting in the third quarter of this year. She adds that the TNS/DIRECTView data will also yield demographic information. DIRECTView uses set-top box data that will give Starcom next-day analysis through InfoSys, a widely used media analysis and planning system. Starcom and TNS struck a previous measurement deal using set-top box data in November 2006. At the time, Starcom agreed to be the first media agency to take data from some 320,000 subscribers of the Charter Communications cable system in Los Angeles. Many media agency analysts believe set-top box data from cable or satellite TV distributors will offer more granular TV analysis--going beyond the traditional Nielsen sample size to determine behavior research of consumers for marketers to use in the future.
NBC Local Media has reorganized its top station executives. Frank Comerford, president/general manager of WNBC New York since 2002, has been promoted to president of platform development and commercial operations for NBC Local Media. In the new position, Comerford will oversee all NBC Local Media advertising sales efforts, including the group's 10 television stations, out-of-home sales and digital media sales. He will also develop new marketing partnerships for stations. Current NBC Local Media executives Mark Lund, executive vice president of Local Media sales and Tina Silvestri, senior vice president of sales Operations, will continue in their current positions and report to Comerford. Another big TV market NBC executive, Larry Wert, president/general manager of WMAQ Chicago, has been promoted to president, Central and Western Region, which will oversee five NBC stations--KNBC in Los Angeles, KNTV in San Francisco, KNSD in San Diego, KXAS in Dallas and WMAQ in Chicago. General managers of these stations will report to Wert. Taking Comerford's place in New York will be Tom O'Brien, president/general manager of KXAS Dallas. He will be promoted to president/general manager of WNBC New York. NBC Local Media was a recently created division at NBC to handle all advertising sales of all local media. The division includes the 10 NBC TV stations, which reach 27% of U.S. TV households and NBC Everywhere, which focuses on selling out-of-home media market.
As the 8-month-old Smithsonian Channel begins selling ads, it has hired a rep firm that's also pitching offerings such as "Punk'd" and a UFC series. The channel, a joint venture between Showtime and the Smithsonian Institution, has tapped Trifecta Entertainment & Media to handle sales. In nearly 23 million homes, the channel has been ad-free so far--but plans to boost revenues via PBS-style sponsorships and other non-traditional promotional models, according to a Showtime representative. Smithsonian Channel programming focuses on documentaries and "innovative and groundbreaking programs highlighting America's historical, cultural and scientific heritage." The channel is available only in HD, and on DirecTV and Charter, among four distributors. "Advertising sales is an integral part of our business strategy," said Tom Hayden, general manager of Smithsonian Networks operations. Trifecta serves as a sales representative for syndicated series such as "Punk'd," the former MTV series where actor Ashton Kutcher plays pranks on fellow celebrities; "American Idol Rewind," which recounts previous seasons of the smash Fox hit; and "UFC Wired," hosted by former "Fear Factor" host Joe Rogan and focusing on the mixed martial arts competition.
Radio revenues fell 8% in March compared to the same month in 2008, according to new figures released by the Radio Advertising Bureau--exceeding even Wall Street's negative expectation of a 3% drop. Local advertising, the medium's traditional mainstay, fell 8%, while national tumbled 17%. The March numbers are just more bad news following a 6% decline in total revenues in January and a 2% decline in February. Although results for the quarter aren't yet available, a drop of 5% or more seems plausible in light of the percent figures. Jim Boyle, an analyst with CL King, said the March results were especially ominous as radio was "up against easy comparisons" from last year, adding that second-quarter results "might very well be as discouraging as Q1's." The deepening decline prompted another analyst, Wachovia's Mari Ryvicker, to yet again lower her 2008 revenue forecast, revising it downward from a 1% decline to 2%. Ryvicker noted that March's drop was the biggest since November 2001, when radio and other media suffered from general economic instability after 9/11. Boyle said radio's success in small markets is due to several factors, including more direct relationships with local advertisers and the absence of the kind of big station price wars that have undermined revenues in larger markets. However, the news isn't all bad: Smaller markets are actually thriving as big and mid-sized markets take a dive, in what Boyle terms radio's "split personality." Small-market revenues grew 6%, benefiting predominantly small-market operators, like Cumulus, Saga, and Regent. Additionally, the RAB highlighted double-digit growth in radio's "non-spot" category, up 18%, thanks largely to the growth in Internet radio advertising. But the non-spot category remains a small part of total radio revenues, contributing 8% of the total in 2007, at $1.68 billion. Internet advertising, in turn, was probably less than a third of that. According to Bridge Ratings, Internet radio's total revenues were about $500 million in 2007, including not just advertising but subscription services.
Stack Partners with Eastbay Eastbay, a division of Footlocker, has struck a deal with Stack Media, a multimedia publisher targeting high-school athletes, which will integrate Stack's video and text content into the Eastbay.com Web site via special co-branded content areas. The partnership will also bring Stack's social media, including player profiles of high school athletes and user-generated video, to Eastbay.com. Eastbay vendors will also get to appear on the Stack Web site. Among the co-branded media offerings planned for Eastbay.com are a new Action Sports video channel, as well as video content focusing on athletic footwear and apparel from Eastbay vendors. The footwear and apparel video will also be available on Stack.com. The companies are planning to develop a variety of micro sites, special print products, and events that will offer marketers more integrated campaign opportunities. With a rate base of 700,000 free copies, Stack reaches 3 million high school athletes at over 7,200 high schools. The company's properties also include Stack.com, Stack TV, and Stack Events. Hearst Partners with Spleak Hearst Magazines Digital Media will begin distributing editorial content from the publisher's various teen titles via Spleak Media Network's CelebSpleak, a celebrity gossip-sharing feature that has partnerships with MySpace and Facebook, AOL Instant Messenger and MSN Messenger. The partnership allows Hearst to distribute brief bits of gossip from CosmoGirl, Teen and Seventeen in the form of "tattles," essentially brief news alerts about celebrity doings and mis-doings that users can share with each other. Currently. the service claims to have about 100,000 daily users. New York To Co-Host Event with French Culinary InstituteNew York is teaming up with the French Culinary Institute to host a two-day event on the weekend of Sept. 20-21, including hands-on classes with some of New York City's best chefs, wine and food tasting workshops, and panel discussions on food and champagne. The first-annual "New York Culinary Experience" will feature renowned chefs like Eric Ripert of Le Bernardin, Dan Barber of Blue Hill, Marcus Samuelsson of Aquavit and Merkato 55, Terrance Brennan of Artisanal and Picholine, Anita Lo of Annisa, Karen DeMasco of Craft, Johnny Iuzinni of Jean Georges, master chocolatier Jacques Torres, Danny Meyer and Drew Nieporent. Dorothy Hamilton, founder and CEO of The French Culinary Institute, explained: "People learn best by doing." Eating, most will agree, is a close second. JetBlue and Runner's World Join UpRunner's World is harnessing the general fanaticism of running enthusiasts on behalf of JetBlue airways with a new Web site, welcomerunners.com, that allows runners to integrate trip planning with their running experience. In addition to the Web site, the multiplatform campaign includes print ads, a sweepstakes, and JetBlue-sponsored training seminars at popular running events. Amy Gross Will Leave O, The Oprah Magazine Amy Gross, the editor of O, The Oprah Magazine, is retiring, and will leave the magazine once a replacement is found, according to the New York Post, which reported the story Monday. With a circulation of 2.26 million, the total audience for O, The Oprah Magazine has grown from about 12.5 million in 2004 to 16 million in 2007, according to MRI. Fortune|Money Group Names Diana Sousa VP, Communications Diana Sousa has been appointed the new vice-president of communications for Time Inc.'s Fortune|Money group, group president. Sousa will begin her new role on April 23. Quittner Heads to Time Josh Quittner, formerly editor of the defunct Business 2.0, is heading back to Time in the capacity of editor at large. He leaves Fortune, where he has worked since Business 2.0 folded last summer. Revolving Door at Alpha Media The turnover at the publisher of Maxim and Blender continues, with the exit of Douglas Warshaw, chief digital officer, after just five months. Warshaw's departure was not explained, but following other high-level departures. March saw the exit of Joe Mangione, chief marketing officer, after just six months.
The premiere of MyNetworkTV's much-hyped comedy starring VH1 luminary Flavor Flav outperformed the network's season average by double digits Wednesday, although it doesn't appear ticketed as the network's first breakout hit. "Under One Roof," where the rapper ... turned VH1 celeb-reality star ... turned comedy performer plays an ex-convict who moves in with his conservative brother, averaged 648,000 viewers in the target 18-to-49 demo (.5)--up 18% from the 550,000 viewers that MNTV is averaging this season. The Wednesday 8 p.m. series, however, fell far short of MNTV's top-rated programs--limited series "Breaking the Magicians Code" (an average of 1 million 18-to-49 viewers) and the second half-hour of "Jail" (832,000). It also trailed the CW's "America's Next Top Model" by more than a rating point to finish sixth among the broadcast networks in the 18-49 demo Wednesday. In the 18-to-34 demo, the Flavor Flav series--the only original comedy on MNTV--delivered 336,000 viewers (.5) in its premiere--31% higher than MNTV's season average in the demo (257,000). It also trailed the magic show and "Jail" by notable margins and finished last on the night among the broadcast networks, trailing NBC's "Deal or No Deal" by .9 of a rating point in 18-to-34 viewers.
ProductShowDateQ-Ratio Ford Escape Extreme Makeover: Home Edition March 30, 2008 3.7832 Columbia Pictures' "Made of Honor" The Bachelor: London Calling March 31, 2008 3.1640 Sprint Navigational Phone America's Next Top Model April 2, 2008 2.1730 Lamborghini Murcielago The Riches April 1, 2008 1.2640 GQ Magazine Make Me A Supermodel April 3, 2008 1.1649 1-800-Contacts What Not To Wear April 4, 2008 0.8876 Travelocity The Biggest Loser: Couples April 1, 2008 0.6702 Cisco Systems CSI: NY April 2, 2008 0.4787 Jell-o The Big Bang Theory March 31, 2008 0.3938 Honda Accord Deal or No Deal April 2, 2008 0.3432 Click here to view these placements Data and Analysis provided by iTVX.
In the Age of Fragmentation, it's surely more challenging than ever to gauge how well a movie will open. But credit Columbia Pictures for some marketing artifice that may just give a lift to its upcoming comedy "Made of Honor." On one level, it was an exceedingly simple idea: Take a reality show about romance and use it as a branded integration platform to plug a romantic comedy. But if it were indeed that intuitive, why hasn't it been done before? Of course, that uniqueness alone may have helped the integration stand out. But its success also surely came from the targeting and execution itself. That apparent effectiveness unfolded as follows: One of the dates on ABC's latest edition of its "Bachelor" series involves the prize (Matt) inviting a suitor (Holly) to: "Join me for a private premiere of Columbia Pictures' 'Made of Honor.'" (The film stars Patrick Dempsey, who falls in love with his best female friend. She, however, gets engaged to someone else, prompting him to agree to be her maid of honor, in hopes of stopping the wedding and becoming the groom himself.) On the March 31 "Bachelor" episode, Matt and Holly are off to what appears to be a gala event at Hollywood's Mann's Chinese Theatre. They arrive in a limo, walk the red carpet, conduct an interview and pose for paparazzi photos. Throughout the to-do, billboards for the film, with Dempsey's face front and center, are unavoidable--the cameras couldn't steer clear of them if they tried, and the viewer is given ample exposure (one of the top product placements of the week, according to measurement firm iTVX). After finishing duties in front of the cameras, Matt says by way of voiceover: "And now we're about to go and see 'Made of Honor.' I'm psyched because I think it's a romantic comedy and I know Holly likes this kind of movie." (How he's keen on her cinema preferences after knowing her for just a few days is perhaps a question for another time.) Inside the theater, they find themselves as the only two (ABC must have scheduled the filming of the episode just before the actual premiere event in order to use the whole red-carpet set-up). And this is where the integration's cleverness shines through. As the pair sit together blissfully watching the film--on what would appear to be the perfect date--there's a jackpot opening for Columbia to essentially insert a trailer right into the show. To "keep it real," there's a brief shot of the couple eating popcorn and riveted by the movie screen. But otherwise, the approximately 25-second trailer fills the TV screen and runs unimpeded. There are humorous and romantic clips that would seem to appeal to the "Bachelor's" female audience--with ample shots of Dempsey, which alone may whet viewers' appetites. After the film--as if to reinforce the message that the film is ideal for a springtime date--Matt and Holly continue their utopian outing. While walking, she asks: "Matt? What do you think of 'Made of Honor?'" "I think it was really good," he says. "It was a good flick for us." That exchange was the only part of the extended integration that felt forced and staged--particularly Holly's rather matter-of-fact question. It would not be surprising if she was wearing an earpiece and a producer was on the other end belting out: "ASK HIM HOW HE LIKED THE MOVIE! NOW!" From a more objective angle, there are two potential issues with the integration that would seem to stand out. One: information on when the film opens in theaters was nowhere to be found within the show. Weaving it in via a close-up of one of the ubiquitous posters on the red carpet, or via a "planted" audio mention by Matt or Holly, would seem to be a no-brainer. Only during a "brought to you by" billboard inside a commercial break is the May 2 opening date made clear--and with DVRs, remotes and refrigerators, who knows what happens there. And two: the show aired on March 31, a month before the opening date--perhaps a little too much time in advance. Time will tell?