TV advertising revenues continues to show strength post-recession -- as do pay TV revenues. Revenues from global pay TV services -- cable, satellite, IPTV -- have climbed 9% in the second quarter to $58 billion, versus the same period in 2009, per the to New York-based market researcher ABI Research. For the year overall, the company has said global pay TV revenues will get to $312 billion in 2010 -- a 7% gain over 2009. ABI Research says these revenue hikes are largely due to higher-priced programming packages, which include HD programming and other advance services. Cable TV programming services are still the big producers -- pulling in a 52% market share of the overall pay-TV revenue take -- or $30 billion in the second quarter. Satellite TV distributors are not that far behind, with $24 billion in pay TV money. Overall, satellite TV operators are growing faster -- up 12% versus the same period last year. This is the result of slower growth due to more maturer cable TV markets, as well as declines in cable market share attributed to inroads made by telco video programming services. Growth in satellite is also the result of higher-priced programming packages. For example, ABI Research notes the average monthly Direct TV subscriber bill climbed to $87.91 in the first quarter 2010 from $83.16 in the second quarter 2009. Much of this came from packages that included HD programming. Telco and IPTV programming services still comprise a small piece of the pie. ABI expects this segment to hit $17 billion for 2010, but growing rapidly -- with 20% compounded revenues increases over the next five years -- totaling more than $40 billion at the end of 2015.
Looking for a more consistent flow of original digital content, Starcom MediaVest Group has inked a multimillion dollar deal with TV producer/digital content developer BermanBraun. The four-year deal, which could be worth $100 million, according to reports, will look to provide Starcom clients with "first look" at new advertising opportunities for digital content. Starcom clients include Procter & Gamble, Coca-Cola, and Wal-Mart. SMG's branded entertainment/programming group, Liquid Thread, will be the key unit working with BermanBraun in developing projects. Key for developers and advertisers is getting an ongoing stream of original video content -- like what exists on traditional TV. Currently, many media companies have dabbled in producing original TV series for the Web -- but typically, these are one-off online-only series that need a individual advertiser/marketer's financial support before production. "Our clients are rightfully demanding a more robust pipeline of digital programming options beyond existing assets," stated Laura Desmond, global CEO, Starcom MediaVest Group. "It is essential to curate and create new content to fill this gap and deliver meaningful human experiences across all screens." BermanBraun is a company found by Gail Berman, ex-head of entertainment for the Fox network, and Lloyd Braun, who held senior executive positions at Walt Disney's ABC Entertainment units and at Yahoo! Besides producing a number of traditional TV shows, the company is pushing into digital areas, hoping to kick off multiple Web sites. Already up and running is Wonderwall.com, a celebrity-gossip based site, which delivers 13 million unique visitors a month, and Glo.com, a health and beauty site, which has registered around 5 million users. Starcom and BermanBraun intend to co-develop new digital content areas. ______________________________________________________________________
NBC Universal's plans to launch a 24/7 local information channel in Washington could fuel Allbritton Communications' ongoing opposition to the proposed Comcast-NBCU merger. Already, Allbritton suggests a new Comcast would intentionally weaken its NewsChannel 8, so its potential control of a direct competitor is likely to heighten the acrimony. In an FCC filing, Allbritton charges that Comcast -- which controls 60% of NewsChannel 8's distribution -- insists on negotiating carriage fees that would force the 18-year-old channel off the air. Allbritton then reasons Comcast-NBCU would benefit as viewers migrate to its local NBC station (WRC-TV) and other outlets. Included in the objections is the local news and lifestyle network NBCU plans for this fall, which would be a digital subchannel linked with WRC-TV. That is expected to carry the "Nonstop" brand, the same as NBCU's "New York Nonstop." Also, NBCU "Nonstop" channels are scheduled to launch in Chicago and Philadelphia around the end of September, in line with the Washington version. But the incarnation in Washington may be the most successful, since that market is particularly infatuated with news. Besides NewsChannel 8 (now known as TBD), Allbritton competes with NBCU in Washington as the owner of the local ABC station, WJLA-TV. The FCC and Justice Department are reviewing the proposed Comcast and NBCU combination. Allbritton would like the deal scuttled. At the very least, it wants conditions placed to ensure NewsChannel 8 receives "marketplace" carriage fees. Cox and Verizon FiOS also offer NewsChannel 8. In its own FCC filing on Wednesday, Comcast says it has no intention of snuffing out NewsChannel 8. The cable operator says there is no "incentive" to drop desirable programming, which could send its cable customers to other distributors. In an interview, Allbritton senior vice president Jerald Fritz said his company has no "qualms" about competing with any NBCU property, so long as Comcast allows it to on equal footing. NewsChannel 8 is in a precarious position because of the 1.4 million homes it reache; 853,000 are served by Comcast. It likely could not survive without affiliate fees paid by the dominant distributor in the Washington region. Comcast and Allbritton have a deal running through the end of 2011. But Allbritton says Comcast is insisting on package deals that would cover NewsChannel 8 and retrans consent payments for six local ABC stations it owns, including WJLA. Allbritton believes NewsChannel 8 carries more value on its own. So might the stations -- in markets such as Harrisburg, Pa. and Little Rock -- with the advent of lucrative retrans dollars. Comcast says it will negotiate for carriage of NewsChannel 8 separately. But it does not want to "pay a premium price" that would leave it and its customers "vulnerable." The cabler further suggests Allbritton is using the FCC review "solely to obtain additional leverage in a business negotiation." Beyond carriage fees, Allbritton raised the issue of advertising in the Washington DMA in its filing this week. The company says that Comcast-NBCU would control some 40% of the local TV sales market, which would "make it nearly impossible" for other sales organizations to compete. The 40% figure comes from a would-be amalgamation of WRC, the local NBC station, and inventory Comcast sells for itself and on behalf of Verizon's FiOS in the region. "This horizontal behemoth would dwarf all competitors -- and almost equal their share, combined!" Allbritton says in its FCC filing. Allbritton suggests the new Comcast would merge the sales force for WRC with Comcast's local operations. That "colossal advertising force" would leverage its slew of channels to "drive non-NBC stations out of the market," Allbritton charges. For its sake, Comcast says economic analysis show no evidence the merger would reduce competition in the ad market. And "notably, no advertiser has filed in opposition to the transaction," though several have supported it. Comcast also suggests to the FCC that while the merger will create a larger market force, Allbritton has plenty of scale in Washington via the ABC station, NewsChannel 8 and the growing influence of inside-the-Beltway trade publisher Politico.
Dr. Laura Schlessinger, a popular conservative female talk radio host in the country, says she is leaving radio at the end of the year, following criticism for repeating a racial slur on air. In an interview with CNN's Larry King on Tuesday night, Schlessinger (who has a doctorate in physiology, but no medical degree) said she feels her ability to speak freely has been limited by the negative publicity generated by recurring controversies. Her syndicated talk radio show will end after her current contract expires in December, but she said she will continue giving public addresses, writing books, and blogging. The latest round of criticism was sparked by Schlessinger's response to an African-American caller who said she was upset by her white husband's use of the word "nigger." Schlessinger dismissed the caller's concern, saying she was being oversensitive, then went on to use the slur 11 times in a diatribe, in which she pointed out that African-American comedians frequently use the word without negative repercussions. Although Schlessinger didn't apply the slur to anyone, she continued saying it after the caller objected. The conversation quickly escalated into an angry confrontation, and Schlessinger accusing the caller of being "hyper-sensitive... which is being bred by black activists," and ideologically hidebound by "black-think." The incident encapsulates tense racial dynamics, never far from the American public consciousness. Such concerns are heightened by the election of America's first biracial president. In late 2006, comedian Michael Richards was forced to publicly apologize for calling African-American hecklers "niggers" during an on-stage diatribe, which was widely viewed as a career-ending meltdown. Then in April 2007, Don Imus ignited a firestorm of criticism for referring to members of the Rutgers women's basketball team as "some nappy-headed hos," leading to his firing by CBS Radio. (The morning drive-time shock jock later signed with Citadel.) More recently, pundits have debated whether white racism contributes significantly to the opposition to President Barack Obama, with conservatives dismissing the racists as a small and unrepresentative fringe group, while liberals paint them as the vocal representatives of a broader racist undercurrent.
The judge presiding over Tribune Co.'s bankruptcy case has extended the deadline for the company to put its bankruptcy reorganization plan up for a vote by creditors and shareholders. That gives the company more time to negotiate with aggrieved bondholders, who recently got more ammunition in the form of critical findings from an independent examiner appointed by the court. The judge granted the open-ended extension (canceling the vote scheduled for this Friday, without setting a new date) in response to a request from Tribune, which hopes to eventually obtain the support of the dissenting bondholders for its reorganization plan. A new date for the vote may be set at a follow-up hearing on Friday, according to Tribune's attorneys. Earlier this month, Kenneth Klee, the independent examiner appointed by the bankruptcy court to review the deal, filed a report that was critical of some aspects of the deal. Klee was investigating allegations brought by some bondholders that Tribune was doomed to bankruptcy from the start. Although he found no evidence of wrongdoing on the part of the buyout team led by real-estate mogul Sam Zell, Klee said certain information he uncovered suggested the company's former management team and lenders behind the deal (including JP Morgan and Bank of America) may have known it was not financially viable, making it a "fraudulent conveyance." Klee's report included the revelation that at least one investment bank, Houlihan Lokey, refused to give the deal a stamp of approval by rendering a favorable "solvency opinion" in March 2007; it considered the deal "DOA." This detail is important because it suggests that responsible parties among the sellers and lenders may have understood that the deal was bound to lead to insolvency. However, they skirted the issue by simply taking the transaction to another firm, Valuation Research Corp., which agreed to render a favorable solvency opinion, allowing the buyout to move forward. Klee's report also criticized VRC for failing to investigate the financial condition of the company more thoroughly. In excerpts from his report to the bankruptcy court, Klee cast suspicion on Tribune's assumption of $3.6 billion in debt, saying: "It is somewhat likely that a court would conclude that the Step Two Transactions constituted intentional fraudulent transfers and fraudulently incurred obligation." By having the entire deal declared illegitimate from the beginning, the bondholders hope to halt the bankruptcy reorganization plan proposed by Tribune's current management, which would compensate banks and senior credits involved in the buyout before the bondholders.
Scoring Martha Stewart is a big deal for Hallmark Channel. So big, that it has unleashed a cross-platformed, multimillion dollar marketing effort -- the largest in the network's history. The push signals a new daytime direction for the family-oriented channel, anchored by the sixth season of "Martha Stewart Living," which begins Sept. 13. "The Martha Stewart Show," distributed by NBC Universal Domestic Television, announced the Hallmark alliance in January. A big reason for the partnership, according to Charles A. Koppelman, executive chairman of MSLO, was poor syndication performance. For the "Martha" syndie run, TV stations were increasingly moving the show to overnight or other time periods starting next year. A lack of consistent airings was adversely impacting ad sales. Koppleman said then the new relationship "greatly extends our media platform and reach." Susanne McAvoy, senior vice president of marketing for Hallmark Channel, calls the alliance "a game-changer." To ensure its new cable home reaches Stewart's core audience, she says the new marketing campaign "signifies the magnitude of our commitment to this launch." It's anchored by a new tagline: "Make The Move With Martha." In fact, it's all Martha, all the time, daytime wise. Hallmark's new block of lifestyle programming from Stewart's Omnimedia airs Monday-Friday, 10 a.m. to 6 p.m. In addition to the domestic diva, new shows include "Mad Hungry with Lucinda Scala Quinn" and "Whatever with Alexis and Jennifer." The cross-platform effort embraces national paid media, out-of-home placed-based ads, sponsorships, sweepstakes, Web sites, social media and a running stunt with all-female running organizations in 26 cities. Key retail partners, such as Macy's, Home Depot and PetSmart, will push in-store signage, online visibility and OOH efforts. MLSLO is also promoting multiple Facebook pages and communicating with Stewart's nearly 2 million Twitter followers. Digital kiosks and billboards will be placed in 105 malls in 19 markets. "Our goal is to have our message be wherever the consumer lives," says McAvoy.
Volkswagen of America is touting its Routan minivan via a partnership with Discovery's TLC.com around family and travel. The automaker will be the premier sponsor of family travel content on TLC.com and feature an original Webisode series titled "The Great Getaway," plus family-related travel information on Discovery-owned Web site HowStuffWorks.com. "The Great Getaway," which launched on Wednesday, follows the seven-member Woods family on a road trip through Sedona, AZ. The reality-style Webisode series will run throughout the next three months .The series is a joint project of TLC.com, Volkswagen and VW's AOR for media, Deutsch. The Routan minivan gets a starring role in the series, with the vehicle's features, such as seating and storage capacity, getting special attention. Volkswagen will bookend the series with 30-second Routan TV spots before the segment, a drive to VW.com after, and a banner next to the video window. The Family Travel section on the TLC Family vertical will be VW-branded, as well. Harold Morgenstern, senior vice president, advertising sales, Discovery Communications says VW is advertising on all Discovery's digital properties, including contextual and behavioral targeting. VW launched the Routan in 2008 under the Das Auto banner with Brooke Shields as spokesperson. The campaign has continued with "Dub Punch" ads suggesting the minivan has a soul of a VW bug. Morgenstern says Discovery has a long-standing relationship with Volkswagen. "We proposed and created the Webisode series specifically to and for the Routan."