News 8 News

News

8


VP

&

GM Gone

The vice-president and general manager of Time-Warner’s local 24-hour news channel, News 8, was let go yesterday (Monday). News 8 Channel staff received a memo from Steve Paulus, president of the Time-Warner news division, today saying that Brian Benschoter “…is no longer the general manager.” Benschoter had been at the helm of the operation since its inception in September of 1999.

Paulus designated News Director Kevin Benz as the “point person” at News 8 while the position is posted. “Brian’s departure is not due to any issue at News 8,” Benz said. “This is not a reflection on News 8 at all. This does not signal downsizing or layoffs. It is purely a personnel issue.” Benz was assistant news director when News 8 started nearly ten years ago.

News 8 is a cable-only news operation, available only through Time-Warner, but it is run much like a broadcast television station. The general manager would oversee all departments including news, engineering, promotions and marketing, IT, and production. All advertising sales, however, are handled by Time-Warner.

Ironically, News 8 next week picks up a prestigious award, USC Annenberg Walter Cronkite Award for Excellence in Television Political Journalism in the “Local Cable Station” division. It is the third time News 8 has won the award in out of the last four years, Benz said. The Cronkite Award specifically recognized News 8 Austin’s 2008 election year coverage including the original “Voters’ Voices” series, which included perspectives from four diverse families in the Central Texas area, in-studio interviews with Candidates, online and Video On Demand (VOD) voters’ guides and extensive election night coverage. “Judges praised the "Voters' Voices" series as "a refreshing approach to political coverage," which challenged conventional wisdom and cultural stereotypes by inviting real people in four families to discuss key issues,” the contest web site said.

© Jim McNabb, 2009

Stormy Weather

TV Weather Staffs Rejoice



For months and months, the local TV weather staffs have scanned the skies, hoping to see a cumulo-nimbus cloud coming our way. They longed to play with their toys. Wednesday afternoon, a line of storms formed in the Hill Country and started its march east. It blew into the viewing area just in time for afternoon and early evening viewing, pelting people and their property with hail stones up to the size of a tennis balls. Soon, the weather reporters were joined by the news reporters and anchors to tell the story as it developed.

The weather put on a destructive show. The television stations had time to put their people in place to provide reports. Honestly, all did a good job.

If viewers wondered why there were few traditional live shots, it is because of concerns for the safety of the crews. Live truck operators should not raise their towers and establish a signal if there is still lightning in the area.

KVUE TV (ABC)’s Mark Murray did his usual professional job working his way through graphics with a calm demeanor. His graphics package has one feature that seems better than others, the software that predicts arrival of the storm in various neighborhoods in the storm’s path. All stations have this, but his looked better. However, the rest of his graphics don’t measure up to those of KEYE TV (CBS) and KXAN (NBC). KVUE producers also chose to use a split screen during much of their coverage. Unfortunately, many viewers do not have giant screen HDTVs. So, the split screens, particularly the weather maps were rather hard to read. KVUE did have reporters in the field using live trucks. At least live shot was during a driving rain storm.

Susan Vessell, chief meteorologist at KEYE used her graphics well. She is very competent. The other available meteorologist Megan Campbell was reporting outside the station using a hand-held instrument to measure the wind velocity. Jason Wheeler was at the station in north Austin. Unfortunately, there wasn’t much action there. Gregg Watson was out in the Hill Country where there was a lot going on. Unfortunately, he had to be on the telephone. Judy Maggio did have an excellent telephone interview with a storm victim who lost all of the windows in her house.

News 8 was adequate, but Maureen McCann appeared to be all by herself, once saying that there were email photos she had not had time to check them. I will also admit that I didn’t spend a great deal of time on News 8 tonight. Ms. McCann always does a good job.

Scott Fisher, KTBC TV (Fox) chief meteorologist, was also adequate. Mr. Fisher has something of a speech pattern which, after watching a while, tends to wear some viewers down.

I’ve been accused of favoring KXAN TV. I’ll probably get the criticism again. Fine.

Some of my praise for KXAN coverage is because of the kind of weather reporter Jim Spencer is. Some of it was making lemonade out of lemons in the middle of storm. Some of it was a full-court press, using everyone, including anchor Robert Hadlock who found live pictures from the TexDOT traffic cameras. Former Hill Country reporter Erin Cargile was in the Hill Country on the phone. Also on the phone describing cars with windshields “busted out” (again and again) was reporter Carla Castano.

All of that was pretty normal until lightning struck, literally. The station took a power hit. Spencer kept talking and finding something to talk about while rebooting a weather center full of the computers that produce the radar images and projections. It could have been an awful and awkward moment, but Spencer has been there before. Spencer also seemed to have the most help. Both Mary Lee and Natalie Stoll were on hand to keep the crawl going across the bottom of the screen and find photos in the email. So, they were there when the lights went out.

Then came the “money shot”: KXAN Reporter Jenny Hoff and photojournalist Thomas Costley, armed with a camera-equipped laptop computer connected through Skype, found the huge hail. Spencer conversed with Hoff and even called Costley to gather hail stones and show them to the audience. Hoff had an earlier shot while it was raining. It was interesting, because of the technology, but contributed little. The Skype call with the hail stones was “money”. Later, they interviewed a homeowner who lost windows to the hail stones. Reporter Matt Flener also used the broadband technology.

Conveniently, the heavy weather exited to the east right at 7 p.m., and all stations returned to regular programming.

© Jim McNabb, 2009

KEYE TV Enters Into Management Agreement

KEYE TV

And

Four Points Sister Stations

Consolidate Management

with

Nexstar Broadcasting Group

KEYE TV (CBS) in Austin and its sister TV stations in the Four Points Media Group will now be managed by Nexstar Broadcasting Group from its headquarters in Irving, Texas. Amy Villarreal, KEYE TV president and general manager announced the new arrangement to station staff in an afternoon meeting Monday, March 23.

Villarreal will remain in her present polition. "There will not be a change to KEYE viewers as this is a change in the overseeing of station operations," Villarreal said. "We are still focused on producing local, highly relevant content for our viewers, optimizing our delivery of that content and creating value for our advertising customers."

News Director Suzanne Black says that she is hopeful that the arrangement will lead to more coverage. "I’m excited about working with a broadcasting group with so many Texas connections."

The Nexstar news release is copied below:

NEXSTAR BROADCASTING ENTERS INTO AGREEMENT TO MANAGE

TELEVISION OPERATIONS OF FOUR POINTS MEDIA GROUP


Irving, Texas (March 23, 2009) - Nexstar Broadcasting Group, Inc. (Nasdaq: NXST) announced
today that it entered into an agreement with Four Points Media Group LLC (“Four Points”),
owned by an affiliate of Cerberus Capital Management, L.P., whereby Nexstar will provide
management services for Four Points’ seven television stations located in four markets. Under
the terms of the agreement, Nexstar will receive a fixed annual management fee of $2 million
per year, as well as annual incentive compensation based on increases of the broadcast cash
flow of Four Points’ stations. Nexstar will also be entitled to a share of the equity profits if the
stations are sold while the agreement is in effect. The agreement provides for minimum
compensation to Nexstar of $10 million if the Four Points stations are sold during the initial three
year term of the agreement.


Commenting on the agreement, Nexstar Broadcasting Group Chairman, President and Chief
Executive Officer, Perry A. Sook said, “We are delighted to be working with Four Points as this
is a tremendous opportunity to leverage Nexstar’s operating and management capabilities to
serve the needs of other broadcast groups and to build value for Four Points.


“The management contract is a rewarding endorsement of Nexstar’s proven operating
disciplines and industry leadership and we are confident that the incentive compensation to be
derived from this agreement will be significantly additive to the annual management fees based
on our strategies to improve the market position and operating efficiencies of these stations.


“Notably, the agreement also underscores Nexstar’s commitment to -- and long-term track
record of success -- developing new high-margin revenue streams to support our goal of
creating long-term value for our shareholders. Managing the Four Points stations is an
excellent complement to our existing station and e-Media operations as the four markets in
which Four Points operates do not geographically overlap with stations and network affiliations
in which Nexstar owns, operates, programs or provides sales and other services to.”


Under the terms of the management agreement, Nexstar will oversee Four Points’ station
operations and act as a resource on sales, promotion, programming alternatives, production,
operations (including e-MEDIA functions), finance, contract administration and human
resources. The agreement is effective March 20, 2009 and extends through March 31, 2012,
with one-year renewal options.


The Four Points station group includes seven television stations that are affiliated with various
television networks, including two CBS (KEYE-TV Austin, Texas and KUTV-TV Salt Lake City,
Utah), two CW (WLWC-TV Providence, Rhode Island and WTVX-TV West Palm Beach,
Florida), one MyNetworkTV (WTCN-CA West Palm Beach, Florida), one Azteca Amèrica
(WWHB-CA West Palm Beach, Florida) and one RTN (KUSG-TV Salt Lake City, Utah).
Broadcast cash flow is calculated as income from operations, plus corporate expenses,
depreciation, amortization of intangible assets and broadcast rights (excluding barter), non-cash
contract termination fees, non-cash impairment charges, loss (gain) on asset exchange and loss
(gain) on asset disposal, net, minus broadcast rights payments.


About Nexstar Broadcasting Group, Inc.

In addition to the seven stations in four markets owned by Four Points Media Group LLC, now
managed by Nexstar, upon completing all announced transactions, Nexstar Broadcasting Group
will own, operate, program or provide sales and other services to 52 television stations in 30
markets in the states of Illinois, Indiana, Maryland, Missouri, Montana, Texas, Pennsylvania,
Louisiana, Arkansas, Alabama, New York and Florida. Nexstar’s television station group
includes affiliates of NBC, CBS, ABC, FOX, MyNetworkTV and The CW and pro-forma for the
completion of all announced transactions, reaches approximately 10 million U.S. television
households or approximately 8.8% of all U.S. television households.

(c) Jim McNabb, 2009

Mornings Will Be Different

MORE

CHANGE

If your morning usually starts with Melissa Gale and Jason Hill on KVUE TV (ABC), it will be different Monday, March 23 and even more different later in the week.

Morning anchor Jason Hill was laid-off Friday as a part of another round of cost-cutting measures announced by Patti Smith, KVUE TV general manager. Also laid-off were a producer and two engineers, according to sources. (This is a rare time that I am not using direct attribution, and being a spring break weekend, on-the-record sources are not available.)

KVUE TV’s morning ratings had slipped in the past year after being a dominate #1. It is unknown whether the ratings erosion is what led to Hill’s departure. By Friday night, his picture and all references to him had been scrubbed from the KVUE web site.

Perhaps a more startling change will be coming later in the week when Gale is joined by her new co-anchor Olga Campos. Campos has been the 5 p.m. co-anchor for more than a decade, most recently teamed with 6 and 10 anchor Tyler Sieswerda. Now, new evening anchor Terri Gruca will co-anchor the 5, 6 and 10 p.m. newscasts with Sieswerda. Campos, reportedly, will not start her new morning gig until Wednesday.

Belo Corporation, KVUE TV’s parent company announced coming cuts in a March 10th news release:

The cost-saving measures include the suspension of Belo Corp.'s 401(k) matching contribution for all employees, a 5 percent salary reduction for employees who are part of the Company's management compensation programs, and a Company-wide staff reduction of approximately 150 positions. These additional cost-saving measures will become effective mid-April.

KVUE had already seen an earlier round of cost-saving measures.

Another change is coming to the morning line-up at a cross-town rival. Morning Traffic reporter Ellen McNamara is moving to Tampa, Florida to co-anchor a new weekend morning newscast on WFTS TV (ABC).

© Jim McNabb, 2009

Info-tainment

What Is

Really Happening

in

Austin?


SXSW traffic takes down AT&T’s 3G network downtown. SXSW shuts down streets downtown and next to downtown. I-35 is actually slowed to a crawl during non-rush hours. SXSW makes parking impossible downtown. On the upside, SXSW results in a stack of cash for the City of Austin. (I am told that bartenders and others in the service industry do not fare that well, because out-of-towners don’t have much money for tips. They work harder than ever for less.)

But, what would Austin be without SXSW? Quieter. Poorer. Less Weird. I’d never want to see it go away. I would just like to see some things done better.

The media is in a SXSW digital orgy. Who can get the cool interview with whom? Who can get the best stuff online? Who can do the most entertaining live shot? “Info-tainment” rules.

It seems that everyone in the media has a little camera in their hand, and the results look like home movies, quite honestly. Actually, they’re worse. There are sweeping pans that would give some viewers motion sickness on the spot. There are shaky close-ups that are hard to watch. They worst thing—the thing that is almost always the worst thing online—is the sound. In these hectic, loony, and horribly noisy locations where people are shouting to be heard, no one is using a real, honest-to-goodness professional microphone. They are relying on those sorry little omni-directional mics on top of those sorry little cameras. If you really care, you have to turn the sound on your computer with the sub-woofer really loud. You still might not be able to understand what is being said, but you would, at least, have something of the feeling of being there.

The only SWSW stories that have some depth are those in the early on-air newscasts. These are the stories where the reporters actually took some time working with a photojournalist. Matt Flener’s story on KXAN TV (NBC-36) was useful. He talked about illegal towing in the downtown area. If you’ve been downtown toward dusk, it was useful information. Another useful story talked about the illegal “parking guards”—the guys who stand in parking places promising to watch your car for a fee, if you park there and pay. Of course, what these cons are doing is illegal. If there is a parking place, you can have it. But, it begins to feel like extortion when the guy is standing there. Advice: Pull out your cell phone and call the cops.

While it is hard—very hard—to avoid all of the glitz of SXSW, really the only people who really care are the ones who are there, and they are not watching TV or looking at the web, at least at the time they are downtown. True, thousands of people are in the Downtown Austin area. There are, however, tens of thousands more who are not and would not be there.

So, for the mass audience, perhaps the story hook should be this: Stay Away!!! Further, the audience should be warned constantly of the street closures and attendant traffic. Here is the most interesting thing from any Austin newscast: El Niño may be weakening, bringing our drought to an end. It was almost an off-hand remark from KXAN’s Jim Spencer who was at a live concert on Auditorium Shores. I’d like to know more about that. The University of Texas men did win their game in the first round of the NCAA Basketball brackets. Up next, (gulp) Duke, I think

The Austin City Council meeting for today (March 19, 2009) was cancelled. Good thinking. But several legislative committees did meet. I wonder what happened. Probably nothing, but I wonder.

© Jim McNabb, 2009

The 2009 Pew Report for Excellence in Journalism

The News

of the

News Is Not Good News.

The 2009 report from Pew Project for Excellence in Journalism is out, and the findings are sobering to those in the traditional media. Users/consumers/readers/viewers of the media should see it too.

This weekend, Fred Zipp, Austin American-Statesman editor, commented on the recent lay-offs and buy-outs at the newspaper. Zipp listed familiar names, by-lines, now gone or leaving. Among them is Bob Banta, a reporter who patiently showed me where to find things as a baby reporter in Austin in the early 1970s. Banta has been with the American-Statesman for 44 years. Forty-four years!!! How much history and how many contacts will leave the room when Banta joins the other eleven who have taken buy-outs at the local paper.

Zipp is clearly pained by this process of attrition in his newsroom. “We’re struggling with our emotions,” he says noting that “the recession has inflicted wounds on newspapers just as it has on other businesses.” The newspaper business was already in trouble. The recession dealt a death blow to some like the Rocky Mountain News. “Imagine someone about to begin physical therapy following a stroke, suddenly contracting a debilitating secondary illness,” the Pew report says.

“Newspapers face serious challenges from a host of smart competitors, but that’s nothing new,” Zipp says. “Radio and television rose from nothing to become formidable foes, just as Internet based businesses have done.”

“We figured out how to stay in business then, and we’ll do it again,” Zipp says.

The problem is this: Newspapers, television stations, and radio are all in the same boat now, according to the Pew report. All are cutting costs where they can. Some, radio in particular, no longer report news beyond the Associated Press and re-writing the local newspaper, thanks in part to deregulation in the early 1980s. Television is still the people’s trusted choice among the traditional media, but it is losing ground to cable and the Internet, the report says. The Pew report cites TV newsrooms with too few people to cover their communities.

Other research shows that audiences, particularly the Austin market, want solid content. If the audience cannot find the content in one medium, it will move on to the next. People (reporters) equal content. If there are fewer reporters, there is less content. So, now, the audience fragments as each member, like a hunter/gather, goes off in search of their desired content. Audiences of the traditional media decline. Their ratings or circulation figures fall. Their advertisements are worth less. The media makes less money. There is the problem in a nutshell.

What worries me the most is this: If the local users/consumers/readers/viewers of the media go to their favorite sites in the Internet, where are they getting good information about their community? How for instance, will they get the information they need to make informed decisions in the upcoming Austin City Council election? The Internet worked will for a national campaign. President Barrack Obama proved that. Will that model work on a local scale. Should that model work? Can you find comparable facts about the competing candidates?

Back to Mr. Zipp’s commentary. Zip said, “We figured out how to stay in business then, and we’ll do it again.” What is not said here is that no one, including Mr. Zip, has found that formula or model for financial success in this eclectic information age. I set out a model in a post a week or so ago. Readers resoundingly told me that they would not pay for news on the Internet. If we are going to pay the reporters to gather the content that the local users/consumers/readers/viewers want and/or need, we must pay. That is also the conclusion of the 2009 Pew Project for Excellence in Journalism.

Find the full report from the Pew Project for Excellence in Journalism here: http://www.stateofthemedia.org/2009. It is an important read for anyone. Also, Poynter.org breaks it down here: http://www.poynter.org/column.asp?id=123

© Jim McNabb, 2009

Who Says There Is No Good News?

Good News

for LIN TV

How about some good news for a change? LIN TV (NYSE-TVL) reported a gain in 2008 when compared to 2007. Net revenues were up 1-percent. Hey! A gain is good, even 1-percent. LIN TV is the parent company for KXAN TV (NBC), KNVA TV (CW), and KXAM TV (NBC in the Hill Country), plus their web sites.

Net revenues increased 1percent to $399.8 million, compared to $395.9 million in 2007. Political advertising last year made a big difference. Political revenues were $47 million, compared to $6.1 million in 2007. The Company achieved a 40 percent increase in political revenues over the 2004 presidential election cycle, according to a LIN news release.

Internet revenues greatly increased as well. Multi-platform communications a LIN emphasis. Digital revenues, including Internet advertising revenues and retransmission consent fees, increased 95 percent to $29.1 million, compared to $14.9 million in 2007, the release says.

Overall, political advertising made the difference. Local television advertising sales were down 11 percent. And performance fell further in the fourth quarter. LIN says, however, it kept its operating expenses under control.

“We are operating in a severe recessive economy and the financial distress on automakers, as well as the significant declines in consumer and business spending, are negatively impacting television advertising sales,” said Vincent L. Sadusky, Executive Officer. “In response, we have taken significant actions to improve our efficiency, as well as our balance sheet. Our plans to adjust our cost structure, re-engineer workflow throughout our TV stations, and execute an aggressive program to reduce our debt should positively impact our operating performance and financial condition.”

“Our leading news stations are focused on maximizing multi-platform advertising spending, new business development and digital revenue growth," Sadusky continues. “Digital revenues continue to differentiate our company and were a major factor in our ability to increase net revenues by 1percent in 2008. Compared to our peers, LIN TV delivered one of our industry’s strongest results.

“Despite the negative outlook on the economy, we remain positive. We are confident in the fundamentals of the TV broadcast business and our ability to expand digitally. We expect to operate a very healthy and cost efficient business now and well into the future," Sadusky says.

You may have wondered if LIN’s absence from Time-Warner cable during October, 2008 hurt their bottom line. No. Not really. “Following the expiration of the Company’s contract with Time Warner Cable, Inc., 15 of LIN TV’s stations were removed from Time Warner systems in 11 markets for nearly one month in the fourth quarter of 2008. Despite this disruption in carriage, 56 percent of LIN TV stations gained audience share with adults 18-49 and 25-54 in the Morning News day part time period, the fastest-growing time of the day in terms of viewers and advertising revenue, compared to the same time period in 2007. The Nielsen data also showed that the Company’s stations outperformed the national networks in the category of household share by an average of 30 percent. For the year ended December 31, 2008, LIN TV operated the #1 or #2 local news station in 81percent of its markets. On average LIN TV’s stations grew 25% across all local news day parts in
Household Ratings year-to-year,” LIN says.

These days, good news in the communications industry is hard to find. Even a 1 percent revenue improvement year to year is worth reporting.


© Jim McNabb, 2009