Parent companies are increasing the amount of shows on their broadcast networks. The figure has risen from 57% of their schedules in 2006 to 67% in 2008, according to a new report from Bernstein Research. Author Michael Nathanson writes that increased ownership is a "double-edged sword," and as with every aspect of TV, based on hit levels. In other words, when a network and its affiliated studio own a hit, "ancillary returns" can be bountiful, but owned shows that fail dramatically may chip into those revenues. CW gets all of its programming from its co-owners, CBS and Warner Bros. NBC gets 82% from its in-house studio--followed by ABC at 73%, Fox at 70% and CBS at 36%, largely due to its efforts to co-produce shows that can limit risk, according to the report. Nathanson also writes that so-called "independent" producers that try to sell shows to networks--such as Warner Bros. and Sony--seem to be facing tougher times "finding homes for their programs"--i.e., networks to pick them up. And with their heavy dependence on syndication revenues from network shows, the companies may be dealing with headwinds. Some 42% of programs in 2006 were from "independents," which has been sliced in half to 21% in 2008, according to Bernstein. This may indicate why Warner Bros. would be reluctant to give up its half-ownership in the struggling CW network. If the studio increasingly has trouble finding outlets for its shows--although cable is growing as a possibility--then holding onto the CW as a venue may be critical. The report says that Warner Bros. has four shows that are in the "early stage pipeline" that could lead to eventual notable syndication dollars, including "Gossip Girl" on the CW (co-produced by CBS). Others are Fox's "Sarah Connor Chronicles," CBS' "The Big Bang Theory" and NBC's "Chuck." But these shows need to remain on their various networks for several more seasons to allow Warner Bros. to reap the benefits. News Corp.'s 20th Century Fox studio will produce the most prime-time hours this season at 16, followed by NBC Universal with 15.5 (a .5 comes from a studio serving as a half-owner) and Warner Bros. with 15, according to the report. But NBCU is producing the most new "owned" shows at 8.5.
Another possible TV strike is not good news for advertisers and media buyers--except for one thing. It's the summer, and TV viewers might not notice. The Screen Actors Guild's official contract with the Alliance of Motion Picture and Television Producers ends July 1. In theory, that would give the two sides eight weeks to work out financial issues before the networks' fall season commences in earnest. "The only good thing is that it'll happen in the summer," says Jordan Breslow, director of broadcast research for Mediacom. "Within those two months, maybe they can come to terms and pick up production in August." The actors are asking for financial improvements similar to those demanded a few months ago by the Writers Guild, such as increased residuals from digital usage of video and DVD sales. Alarm bells will start ringing for TV advertisers, said Breslow, if the strike drags on into the fall--when new shows and big returning series make their usual loud marketing efforts. That could mean a repeat of what took place in winter of this year, when TV viewers left broadcast networks, which slapped together schedules of low-rated reruns and reality shows. Instead, they tuned into cable, the Internet and other forms of entertainment. The good news is that just after the writers' strike ended, networks quickly ramped up new episodes of series--some of which were put on hold last year, such as NBC's "Heroes," "ABC's "Private Practice" and Fox's "24." But many question whether the networks will air these episodes if the actors strike. Networks have been moving toward airing many series with all originals and no repeats. With a strike, they would have to stop in mid-flight, leaving viewers hanging. Many analysts speculate that the SAG might offer an extension of their deadline--in part to see how the vote comes in among members of the American Federation of Television and Radio Artists and its new contract deal. SAG officials have condemned that deal as inadequate. (Some AFTRA members are also SAG members.) The SAG might also extend their deadline to give their cause PR visibility. TV viewership for summer network programming is low compared to fall, winter and spring. Right now, "people are watching cable," says Breslow. For advertising agencies, if a strike does happen, the issues will be a lot easier to understand. "Agencies will understand why, that actors just want a comparable deal to what the writers got," says Breslow. If a long strike is certain, networks will again have to juggle, since it may push back all the premiere dates. That might especially hurt NBC, which may have a major marketing decision to make in the last half of August when it airs the Beijing Olympics. As it has done with many other summer Olympic events, much of its on-air promo campaign has to do with teasing consumers with new NBC fall shows. That would drop out if NBC decides to delay the start of some fall shows.
Fueled by this year's presidential race, cable news channels now command a leading 58% share to broadcast network news programs' 42% share. This is a gain over the second quarter of 2007, when cable led with a 54% share to broadcast's 46% share. During the last presidential election, the second-quarter 2004, cable and broadcast news each took 50% of total TV news viewers. In the battle among the cable news channels, Fox News still maintains its dominant lead. But CNN and MSNBC have improved, according to analysis from Turner Broadcasting and Nielsen Media Research. In the second quarter of this year versus a year ago, CNN is up 11% to an average 179,000 in total day, and 66% higher to 302,000 in prime time among key 25-54 news viewers. MSNBC grew 26% in prime time with an average 150,000 25-54 viewers in total day and 272,000 25-54 viewers in prime, an 89% rise. Still, Fox News strongly leads overall--now grabbing 880,000 total day viewers, a 9% gain over a year ago. In prime time, Fox still has a massive 1.6 million total viewers--a 9% gain over a year ago--and a 64% advantage over its nearest competitor, CNN, which had 978,000 viewers. In the key 25-54 viewer demo in prime time, Fox maintains a lead of 346,000 viewers. It was the only cable news channel to drop versus a year ago, although a mere 1%. During the Kerry/Bush race in 2004, adults 25-54 fled broadcast evening news programs for cable coverage, too. In the second quarter of 2008, the three nightly news telecasts are all down by double-digit decreases versus the last presidential election--with CBS' "CBS Evening News" down the most at 27%. "ABC World News" is off 18% and "NBC Nightly News" dropped 17%.
The downturn in the housing market is taking a big bite out of shelter titles, which are suffering vertigo-inducing drops in ad pages, with a few lucky exceptions. Of 16 titles surveyed, 12 saw ad pages fall between the first half of 2007 and the comparable period in 2008; of these, seven titles were hit with double-digit declines. Only a few shelter titles bucked the trend in the first half of 2008. Hachette's Metropolitan Home is up 5%, while Elle Décor is up 4%. Conde Nast's Architectural Digest is up 4%, and Hearst's House Beautiful is up 14%. And that's where the good news ends; unfortunately it's outnumbered by bad news by 3-to-1. Regional and rustic titles seem to be having a particularly rough time. At Time Inc., Coastal Living is down 32%, Sunset is down 14%, Southern Living is down 4%, and Cottage Living is basically flat with a 0.4% decline. Home makeover title This Old House is down 13%. Meredith Corp.'s Traditional Home is down 15%, and Country Home dropped 12%. Hachette's Home has fallen an alarming 30%. Meredith's flagship Better Homes and Gardens, while not usually classified as a shelter title, is also feeling the heat, with ad pages down 13%. Hearst's Country Living is down 4%. On the whole, titles targeting younger women seemed to fare a little better: Conde Nast's Domino slipped 2%, while indy Dwell is down 7%.
Business executives are abandoning newspapers like The Wall Street Journal in favor of the Internet as their primary source of business information, according to a new survey by Forbes.com and Gartner. The Forbes.com data, gathered this January, suggests that affluent decision-makers are migrating to the Web even faster than the population at large, painting an ominous picture for newspaper publishers--who hardly need more bad news right now. In the last four years, the number of C-level executives who consider the Internet the most important and influential source of business info rose from under 50% in 2004 to 67% in 2008--roughly seven out of 10 executives. Moreover, the number of executives who say that newspapers are their main source of business info fell 36% in the same period. In fact, more executives preferred the Web than any other medium, including TV, radio and magazines. This shift is reflected in behavioral changes. Since 2004, the number of executives who like to start their day with a look at the Web increased 22%, while the number who prefer to read the newspaper fell 11%. On the advertising side, about two in five C-level executives say the Web contains the most informative advertising relative to other media. Significantly, more senior executives are using the Web for research and personal shopping, as well.
Zinio is creating an online resource center to educate publishers about digital magazines, including creating digital editions of their own titles. Announced at the Digital Publishing and Advertising Conference in New York, Zinio hopes the new online center will help convince publishers to create digital editions by highlighting their various advantages, including interactive ads and high reader engagement. It will also provide suggestions for best practices and industry standards. The new site, http://blog.zinio.com, has a number of content areas, including "Ask the Expert," case studies, digital publishing news, Zinio news, events and activities and discussion forums. A section called "New Ideas for Marketers" contains suggestions for online campaigns that can be coordinated with digital magazines, including social networks, email marketing, and word of mouth. Zinio helps publishers create and distribute digital editions of magazines, typically via email. The digital editions offer a variety of interactive features, including ads that take readers to the advertiser Web site or a customized microsite. The list of magazines producing digital editions with Zinio includes Men's Health, BusinessWeek, Cosmopolitan, Elle, Women's Health and Playboy. Relish to Produce Two CookbooksRelish, the monthly food magazine from Publishing Group of America that is distributed via newspapers, has signed a deal to produce two cookbooks with Countryman Press, a division of W.W. Norton & Company, which also publishes the Eating Well cookbooks and a variety of regional and themed cookbooks, like Chow Maine. The announcement comes as Relish also revealed plans to raise its circulation from 12 million to 15 million in January; this will mark a 250% increase since its launch in February 2006, with a circulation of 6 million. Hallmark Will Raise Rate BaseHallmark plans to raise its rate base from 700,000 to 800,000 with its February/March issue--an increase of about 14%, according to publisher Carol Campbell Boggs. The company will support the increase with promotions across its numerous media channels, including Hallmark stores, TV shows and direct mail. The first three issues of the bimonthly magazine have seen ad pages increase 28% compared to the same period last year. Women's Health Launches New Sub-based Web SiteWomen's Health is launching a subscription-based Web site offering subscribers personalized fitness and nutrition programs. For a subscription fee of $3.50 per week, the Web site, called Fit Coach, will deliver information tailored to fit any body type, fitness level, or goal, with interactive tools and trackers. Content includes customizable workouts and workout guides, personalized weekly meal plans, animated exercise demos, calorie-tracking tools, a food journal and social networking. Chicago Gets Moda Fashion Gazette A new fashion magazine is set to launch, targeting the "artistic Chicagoan" with a "fashion-forward" editorial stance covering style and art for an urban audience. It aims to increase Chicago's profile as a center of fashion, according to Editor in Chief Angeliki Garris: "We don't think that Chicagoans should cede magazine fashion leadership to New York. It's time for Chicago to revitalize its heritage as a leader in style and fashion, and we believe that Moda FG can make a meaningful contribution to this artistic initiative." The controlled-circulation magazine will launch with distribution in Chicago's hippest coffee shops and boutiques, as well as restaurants, cafés, gyms, salons and spas. Meredith Corp. Names Tom Harty CRO Meredith is expanding the responsibilities of Executive Vice President Tom Harty with a new role, chief revenue officer. In this new assignment, Harty's role will be increasingly external, with an emphasis on senior-level client and agency business development.