Miami Herald - Business Monday Front Page!!!! Showtime

BY BRIDGET CAREY AND GLENN GARVIN

BCAREY@MIAMIHERALD.COM

When Nielsen Media Research sent out its weekly television ratings report for the first week in September, TV programmers and marketing directors across America blinked, rubbed their eyes, then blinked again. Could it really be? Spanish-language Univisión finishing first? Not first in the Spanish rankings, not first in Miami or Los Angeles: First in the whole United States, ahead of Fox, CBS, ABC and NBC.
It could be. It was. And, says Univisión Networks President Cesar Conde, it will be again.
``Our goal is to be the No. 1 network in this country regardless of language,'' says Conde, from his office in Doral. ``[If] we continue to perform the way we have -- and you have to have some macroeconomic trends continue -- that is feasible, that Univisión, a Spanish-language network, can be the No. 1 network in this country regardless of language, within the next five years.''
It's time to insert a couple of asterisks here. Univisión was No. 1 not in total viewers but in the 18-to-49 age demographic that TV advertisers covet. And its victory came during a lull in English-language programming, a week between the end of the summer broadcast season and the beginning of fall's roll-out of new programs when the schedule consists almost entirely of reruns and cheap reality shows.
But it also capped a year-long show of Nielsen strength when Univisión frequently finished among the top two or three broadcast networks in overall viewers, a performance that threatened to erase the traditional distinction between Spanish-language stations and what the industry refers to as the ``general market,'' the four big broadcast networks.
``They're competing head to head with English-language networks,'' says Miami Hispanic-media consultant Adam Jacobsen. ``Forget the Spanish part. They're America's fifth network, period.''
Just four years ago, when Los Angeles billionaire Jerry Perenchio sold Univisión to a consortium of five private equity firms for $12.3 billion, the network's future seemed uncertain. The stream of hit telenovelas that allowed it to dominate the Spanish-language market was about to dry up after a bitter and expensive spat with its supplier, Mexican media conglomerate Televisa.
The challenge from Spanish competitor Telemundo, powered by an influx of cash and expertise from new corporate master NBC Universal, was growing fiercer. And the eccentric and secretive policies the company had inherited from Perenchio seemed increasing out of step with the modern media environment. ``You weren't supposed to talk about anything,'' recalls one former Univisión executive. ``If your name turned up in a newspaper, you were dead meat.''
Since then, Univisión has emerged as a force to be reckoned with in that media environment. Moving beyond its immigrant roots, the network began targeting younger second- and third-generation U.S. Hispanics by broadening its news and public affairs programming beyond its traditional focus on Latin America, as well as experimenting with reality shows and other entertainment beyond the traditional telenovela format.
Result: The network has increased its share of viewers in the key 18-to-34 and 18-to-49 age demographics more than any other broadcast network except CBS over the past year. Univisión, once content to let cable systems air the signals of its affiliate stations for free, since 2007 has been asking fees as high as $1 per subscriber, a practice that brought in more than $175 million last year.
Conde took on the role of president last October after serving as executive vice president and chief strategy officer. He was part of the force to change the network priorities by making the focus on beating English-language stations. The company mission also put a heavy emphasis on educating and empowering its viewers.
To push more of its audience to graduate from college, the network highlighted hard-working teens winning scholarships between the hip-thrusting performances of top Latin artists during the awards show, Premios Juventud. And the network sacrificed commercial revenue to air political debates and town-hall meetings, a first for Univisión. As Arizona considered a controversial new immigration law last July, the network did five live news specials.
Meanwhile, Univisión has plunged across the digital frontier that broadcasters see as their future. Univisión.com is the most visited Spanish-language website among Hispanics in the United States. Between Univisión's television audience (which includes sister network TeleFutura and cable cousin Galavisión), the listeners of its 68 radio stations and the millions of trips surfing across its 90 websites, the company reaches an estimated 80 percent of U.S. Hispanics.
And the news that Univisión and estranged partner Televisa have kissed and made up suggests that the company will become even more aggressive. Earlier this month, Univisión and Televisa announced a $1.2 billion deal that will end all their legal wrangling with one another and guarantee Univisión's supply of Televisa's hit novelas until 2025.
The deal, which gives Televisa a 5 percent stake in Univisión with the right to acquire up to 40 percent if U.S. regulatory rules are revised to permit it, also grants Univisión for the first time the right to use Televisa programming on digital platforms like the Web and cellphones.
``In an odd kind of way, Univisión with this deal is signaling that they're going to play on the same field as the big networks,'' says Telemundo president Don Browne, who ruefully admits the agreement won't make his job any easier, either. ``Joining up with an outfit like Televisa, a very formidable and successful company -- that should be a wake-up call for the general market.''
Paradoxically, the deal also calls into question the tent pole of Univisión's strategy -- starting to make its own shows. When Univisión's relationship with Televisa went sour six years ago, the Mexican company announced it would cut off its supply of programming to Univisión when their contract ended in 2017, and earlier if it could persuade a court to intervene.
Since then, Univisión has been laying plans to produce its own programming. Miami-based Univisión Studios launched in February and has had some success -- particularly with ¡Mira Quien Baila! , a not very thinly veiled imitation of Dancing With The Stars that debuted this month to good ratings.
It already wrapped up production of a reality competition similar to Survivor, called Desafio: La Gran Batalla, and later this year it will launch Eva Luna, a novela, and El Gran Show, a two-hour variety game show that's a co-production with Imagina US.
The network is far from being able to fill its prime-time schedule with its own shows, yet this summer it canceled one of its most famous home-grown talk shows, El Show de Cristina. Emmy award-winning host Cristina Saralegui told The Miami Herald that she wasn't ready to end her show, which has been on the network for more than 20 years. But Univisión thought differently, and now must fill her Monday night spot after her last show airs Nov. 1.
Whether Univisión will keep trying to create original programming seems an open question. On the day the new deal with Televisa was announced, Haim Saban, the Los Angeles billionaire widely acknowledged as the most powerful member of Univisión's board of directors, told the Wall Street Journal Univisión would get out of the production business. ``Why would I even wrack our brains here to go try and duplicate what they're doing?'' he said. ``We don't need to. We have the original Coca Cola formula.''
Conde, however, told The Miami Herald just the opposite. ``This partnership reinforces the programming strategy that we have in place and continues to build on the momentum we've been building,'' he said, adding that development of original shows will ``continue full-speed ahead.''
Many analysts, however, suspect that Univisión's studio will be allowed to die a quiet death. South Florida media consultant Julio Rumbaut noted that in Univisión's last public filing with the SEC four years ago, it said it turned a profit of more than 70 percent on Televisa novelas, almost twice the margin on the company's operations as a whole.
``Televisa can make these things more efficiently than anybody else, anywhere,'' said Rumbaut. ``And when you're using Televisa's shows, you know they'll be successful because they've already aired in Mexico and you can see what kind of ratings they got.''
Regardless of which way Univisión moves on original programming, the deal with Televisa will allow Univisión to plunge even deeper into digital content. For the first time, Univisión can feature Televisa's programs on its mobile platforms.
The network began building its mobile offerings six years ago, but it boosted its online investment to dominate digital coverage of last summer's World Cup soccer tournament. Games were streamed online and on mobile television subscription services like Flo TV and MobiTV, which can be accessed on some cellphones and in-car televisions.
``It broke every single type of video record for us,'' Conde said of the network's World Cup online coverage. Since then, the network has continued to launch mobile apps of not only soccer but other news and entertainment programming -- a canny strategy, since a continuous stream of research shows Latinos use cellphones and other wireless devices more than any other racial or ethnic group.
``I think that mobile will be a bigger business for us than dot-com,'' Conde said.
For all the new programming power delivered by the deal with Televisa, there's still some potential static in Univisión's future.
Though Univisión executives now airily claim that they aren't playing in the same league as traditional rival Telemundo, other industry figures say television is a tumultuous business where you're only as good as your last batch of shows. And if the purchase of Telemundo's corporate parent NBC Universal by cable giant Comcast is approved by federal regulators as expected, Telemundo could get new resources with which to fight back.
``Telemundo is just one hit novela away from being at Univisión's throat,'' says a television executive who has worked with both networks. ``They'd be wise to remember that.''
Telemundo president Browne says Univisión's dismissal of his network is mostly bravado, anyway. ``Whenever we launch a new novela, they counterattack with an unusual amount of promotion of their shows on radio, on all their networks, on their websites,'' Browne said. ``It looks good in a press release to say they don't care about us anymore, but they clearly are competing against us.''
An even bigger challenge for Univisión is the same one faced by Spanish-language networks since their infancy three decades ago: Advertisers won't pay them the same rates that their English-language counterparts get. What's known in the industry as CPM -- cost per thousand, what an advertiser paysto reach a thousand viewers -- is about 10 to 15 percent lower on the Spanish-language networks.
``That's the real problem with trying to compete with ABC and NBC and Fox,'' says Jacobsen. ``They make more money even when they don't have more viewers. Look at the advertising billings. If I'm Univisión and I'm beating NBC, I want to charge just as much as NBC. But they can't.''
The gap in advertising rates dates back to the early days of Spanish-language TV, when its audience was smaller and poorer and advertisers weren't convinced it was worth reaching. ``We just got crumbs at the beginning,'' recalls one former executive. ``The money put into advertising on Spanish TV amounted to rounding errors in the budgets of the big ad agencies.''
Conde acknowledges the problem, but believes it's about to be blown away by the 2010 Census, which is expected to show that the U.S. population includes 50 million Hispanics, about 60 percent of them in that ideal TV advertising demographic of age 18 to 49.
``I think the results of the 2010 Census are going to be a major wake-up call for corporate America and all organizations here in the United States,'' Conde said. The new numbers will prove that the Hispanic media market has evolved from a niche to a mass core audience, Conde says, adding: ``Companies that ignore it, ignore it at their own peril.''
Not everybody is convinced, especially with the American economy in the worst shape since the 1930s. A lot of firms, says Gaston Legorburu, executive director at marketing agency Sapient, still regard Hispanic market as ``a special project'' that's the first to go at a time when it's hard to keep the lights on.
And yes, he's heard all the buzz about how the census will show what a powerful market Hispanics are. ``But the reality of all that is Big Brand X, when they cut the budget by 20 to 30 percent,'' says Legorburu, ``the guy on the second floor that does the multicultural marketing, his budget went night-night.''
Conde says it's up to him and other Spanish broadcasting figures to not let that happen.
``The opportunity is to ensure that we maximize ad revenue by receiving our fair share of ad dollars for the amount of viewers that we have,'' Conde said. ``This is the opportunity that Univisión has, and frankly, all of Spanish-language media.''


Read more: http://www.miamiherald.com/2010/10/17/v-fullstory/1875685/showtime-for-univision.html#ixzz12idbjv9G

How is it possible that GOP Presidential Candidates be on a Network's Payroll?

Fox News 2012? Nearly All Potential GOP Presidential Candidates On FNC Payroll: Politico
Huffingtonpost.com | Jack Mirkinson


Politico reports on a new, complicated development for Fox News: nearly all of the major potential Republican candidates for the presidency are on the channel's payroll as commentators, raising questions about how Fox News can cover them as the 2012 campaign approaches.

The website notes that Rick Santorum, Mike Huckabee, Newt Gingrich and, of course, Sarah Palin have all expressed interest in a potential run for president. All four are paid political commentators for Fox News.

"With the exception of Mitt Romney, Fox now has deals with every major potential Republican presidential candidate not currently in elected office," Politico's Jonathan Martin and Keach Hagey write.

The situation is reportedly causing consternation both within and without Fox News. Sources inside the network told Politico they are growing increasingly agitated about having so many people who are still active in politics on their payroll:

"Fox insiders, speaking anonymously about what is a sensitive topic for a network worried about outside perception, said no word has been conveyed from the corporate brass to reporters about how to treat what are, for now at least, their colleagues."
People from other networks are also frustrated that, while major newsmakers such as Palin routinely appear on Fox News, the network's tight contractual strings mostly prevent its stable of Republican stars from being interviewed on any other channel, even C-SPAN. Of the four potential candidates, only Gingrich has appeared on another channel in all of 2010.

Fox News told Politico that, as soon as anyone actually declares their intention to run, they will be dropped from the channel's payroll. But the lucrative nature of the arrangement might delay those announcements, the site says.

The network did run into this issue with Angela McGlowan, who returned to the network after her failed bid for a GOP nomination for congress in Mississippi. She had been suspended from the network as she pursued the nomination.

Of course, Fox News isn't the only cable news network with a stable of potential candidates on its airwaves: Harold Ford's contract with NBC News was suspended as he considered a run for the Senate from New York, and Chris Matthews has spoken openly about having weighed a run for Senate from Pennsylvania. Joe Scarborough is also routinely discussed as a potential Republican presidential candidate at some point in the future.

The New York Times' Brian Stelter examined this very phenomenon earlier this year.

At the time, MSNBC President Phil Griffin explained his rule: "If you're seriously examining a run for office, you can't host a show or be a general analyst."

MSNBC's "The Last Word" premiere's tonight @ 10pm

Tonight at 10 PM, MSNBC will premiere the newest addition to its primetime lineup, “The Last Word with Lawrence O’Donnell.” Following “Countdown” at 8 PM and “The Rachel Maddow Show” at 9 PM, “The Last Word” completes MSNBC’s primetime in a sense, as the network finally puts a live, original show in the 10 PM hour, joining competitors CNN and Fox News.

Tonight’s premiere will feature an interview with Vice President Joe Biden, but it will also see O’Donnell getting advice on how to host a primetime show from MSNBC’s most prominent primetime talent: Keith Olbermann.

“I will be getting advice on hosting the show from Keith tonight, live,” O’Donnell tells TVNewser. “He is going to appear on my first show, as he should, because Keith created the ratings platform in primetime at MSNBC that has made the creation of the other two shows in primetime possible.”

Indeed, O’Donnell, hardly a TV novice, noted that at the end of the day, the driving factor in television is ratings.

“Ratings explain everything in the television business,” he says. “A lot of other words end up in the explanation of things, but somewhere in that explanation there is going to be ratings.”

His interview with Biden is meant to drive ratings on day one, with foreign policy… along with some domestic politics, being the focus.

“It is his first interview since the Bob Woodward book has come out, and there are some quotes attributed to him that he has not responded to,” O’Donnell says. “I will also be asking him how it feels to watch his former senate seat become the object of the most fascinating political campaign in America, one in which every week there is a new revelation in what Karl Rove has labeled the ‘nutty thinking’ of the Republican candidate.”

An important part of MSNBC’s primetime lineup–and cable news lineups in general–is humor, often integrated tightly within the news and interview segments.

O’Donnell says that the absurdity of so much news today essentially forces the hand of anchors and reporters:

“I think we are in a position to react to all the news as we see it, and a lot of it is absurdist, and a lot of it is funny, and a lot of it invites that labeling,” O’Donnell says. “When Comedy Central started off they did not expect to be running news shows ["The Daily Show," "Colbert Report"] as their biggest rated shows. We haven’t had a former witch as a nominee for a major party for a U.S. Senate seat before. This is new, this is a world in which the news is not behaving as its boring old self used to.”

O’Donnell was referring to Delaware Senate candidate Christine O’Donnell, who said in an old clip on Bill Maher‘s “Politically incorrect” that she once “dabbled in witchcraft.”

Despite the personal attack, Lawrence O’Donnell says Christine O’Donnell is welcome on his show at any time, due to what TVNewser has taken to calling the “O’Donnell on O’Donnell Rule:”

“Any O’Donnell is welcome on this show at any time,” he says. “Christine O’Donnell can have the entire hour if she were to come on.”

CNN SKAKEUP

CNN announces new senior management
By the CNN Wire Staff
September 24, 2010 9:19 p.m. EDT

HLN chief Ken Jautz is replacing Jonathan Klein as the executive vice president of CNN/US.

Atlanta, Georgia (CNN) -- CNN President Jim Walton announced a major shakeup of CNN management Friday, replacing the head of CNN/US with a long-time CNN executive known for his business turn-around skills.
HLN head Ken Jautz takes over as executive vice president of CNN/US, replacing Jonathan Klein, who headed the network for six years. CNN's chief marketing officer Scot Safon will run HLN, replacing Jautz.
Walton also said he would hire a managing editor to "help leverage our newsgathering resources across multiple platforms."
"Ken is a rarity -- a working journalist who is an even better news executive," wrote Walton in a memo to staff. "Ken has launched, made profitable and turned around businesses for our news organization, Turner Broadcasting and Time Warner literally around the world."
Jautz, who joined CNN in 1989 as a bureau chief in Germany, has held a wide variety of jobs at the company, including executive vice president in charge of CNN's business news operations. During a stint with Turner Broadcasting Europe, he helped launch channels in several European markets. Most recently, Jautz has presided over the revamp and rebranding of the HLN channel, introducing signature programs such as Nancy Grace, Joy Behar, ShowBiz Tonight, Issues with Jane Velez Mitchell and Morning Express with Robin Meade. The new evening line-up doubled the network's prime-time ratings.
"I look forward to working with CNN's many fine journalists and launching two new shows that I think will make our prime-time lineup more engaging and lively," Jautz said, "and will continue CNN's strategy of delivering smart, informative news and analysis from across the political spectrum."
Safon takes over HLN after heading CNN's marketing for the last eight years, winning wide industry accolades for his marketing campaign for CNN and CNN=Politics. Before joining CNN, Safon oversaw marketing for one of CNN's sister channels, TNT.
"Scot is one of the most creative and passionate executives at Turner Broadcasting," said Walton.
The moves come as CNN/US has suffered declining prime-time ratings in recent years as other cable channels have taken on partisan tones in their programming and news coverage. CNN/US recently announced a new prime-time lineup, hiring global media personality and former newspaper editor Piers Morgan to host an interview program to replace Larry King Live, and pairing Pulitzer Prize-winning columnist Kathleen Parker and former New York Governor Eliot Spitzer in an 8 p.m. time slot.
The memo sent to staff said Jonathan Klein is leaving CNN. During Klein's six years at CNN/US, the network won many awards for its aggressive coverage, including Hurricane Katrina, the South Asia tsunami, the 2008 U.S. elections and the devastating Haiti earthquake.
"Jon has made important contributions to the CNN story, and he leaves with our respect and friendship, and with my sincere thanks," Walton wrote to staff.
Walton said that a search is under way for the new position of company-wide managing editor. The assignment for the new editor, Walton wrote to staff, is to generate "the kind of front-page reporting and analysis that captures a news event, translates its meaning and shapes the dialogue about the story."
Phil Kent, CEO of Turner Broadcasting System, the parent company of CNN, also highlighted the role of the new managing editor position, saying it would "build on the network's unique strengths in journalism and on CNN's quality editorial voice across all platforms."
"Jim Walton is a world-class leader, and I'm in full support of his newly announced organizational structure and leadership team," Kent said. "I believe these changes will position CNN/U.S. and HLN for future growth and success."

NBC CEO will leave the company once comcast closes its deal

Jeff Zucker to Leave NBCU Once Comcast Closes Deal
By Alex Weprin on September 24, 2010 11:46 AM

NBC Universal CEO Jeff Zucker has confirmed that he will leave the company once Comcast closes its deal to acquire it.

“It has not been an easy or simple decision,” Zucker told NBC universal employees in a memo this morning. “I have spent my entire adult life here, more than 24 years. This is the only place I have ever worked. The only professional thing I have ever known. I met my wife here, enjoyed the birth of our four children in that time, worked in almost every division of the company. And forged relationships, both professional and personal, that will last a lifetime.”

The news was first reported by the New York Times‘ Bill Carter.

Rumors of Zucker’s departure have been a regular part of media chatter since Comcast announced its intention to acquire NBCU. In June, The New York Post’s Claire Atkinson reported that an exit deal for Zucker had been finalized. However, the executive told the Times that his exit deal was only finalized this week.

Zucker became a star at NBC while at “Today,” where he became executive producer at the age of 26.

Zucker’s memo to staff is after the jump.


From Jeff Zucker

Subject: Important Note from Jeff Zucker

Well, the time has come. This time, to tell you a little news about me.

When Comcast assumes control of NBC Universal, I will leave the company.

It has not been an easy or simple decision. I have spent my entire adult life here, more than 24 years. This is the only place I have ever worked. The only professional thing I have ever known. I met my wife here, enjoyed the birth of our four children in that time, worked in almost every division of the company. And forged relationships, both professional and personal, that will last a lifetime.

I remember, vividly, the first day I came to work here in August, 1986. I walked to work at 30 Rockefeller Plaza that day; it was humid and my shirt was soaking by the time I got there. In the years since, I have enjoyed nothing but sheer pleasure in having the names NBC and Universal on my business cards. Sure, there have been ups and downs in the last quarter century. But when I step back, and think about what we’ve been through, I feel nothing but pride and joy. It has been a great run and I’ve been incredibly fortunate.

Now, it is clear to me that this is the right decision for me and for the company. Comcast will be a great new steward, just as GE has been, and they deserve the chance to implement their own vision.

I am proud that they will inherit a company in very good shape, with almost every one of our divisions enjoying their best year ever. The current strength of the company is a tribute to every one of you and the terrific leadership team that is in place.

We’ll talk more about the shape of the company in the months ahead. For now, I just wanted you to know my plans. I won’t be going anywhere until the day the deal closes, and that day is still months away. There is plenty left to do, and we have an obligation to each other to maintain what we have already built. I will continue to approach everything we do with the long-term interest of the company in mind, just as I always have; I know no other way.

I don’t yet know what my future will bring. I’ve spent the last 24 years thinking only about NBC Universal, and never contemplated anything else. I haven’t even begun to think about the next chapter. But I wanted to be honest with you about this news as soon as I could.

I love NBC Universal. And always will. And I am grateful to each of you.

My most heartfelt thanks.

Survey says: Majority time-shifts TV shows

62% have time-shifted, 84% do it more than three years ago

Staff report


Aug 17, 2010, 08:57 AM ET
DVR usage and other forms of time-shifted TV consumption may be even more wide-spread than previously thought with a majority of Americans saying they watch TV content on their own schedule.

A new study conducted by International Communications Research for cable giant Comcast found that 62% of respondents have time-shifted TV shows -- whether by using a DVR, watching online or VOD, according to Media Life.

Sixty percent of respondents said they are time-shifting more now than they did a year ago, while 84% said they are doing it more than three years ago.

Among the other data showing the widespread use of time-shifting, this season more people are watching HBO's "Entourage" on a delay than are watching it live.

The Associated Press in its story on the new survey quotes a 36-year-old mother as saying: "If I didn't have the DVR, I don't think TV would be in the running."

Americans' confidence in Newspapers & TV News

Americans Confidence in Newspapers & TV News

FOX NEWS donates $1 MILLION to republican campaign committe

Fox News and Wall Street Journal parent company News Corp donated $1 million to the Republican Governors Association in June, Bloomberg BusinessWeek reported.

The media conglomerate, controlled by Chairman and CEO Rupert Murdoch, took advantage of the unlimited donations corporations can give to governors' associations (from Bloomberg BusinessWeek):

The Republicans' biggest corporate donor was New York-based News Corp. Teri Everett, a spokeswoman, said the company "actively supports organizations that advocate a pro-job, low tax, economic growth agenda."

News Corp. opposes proposed federal rule changes that would weaken the position of its Fox network in negotiations with cable companies. Governors may have a stake in the issue. In March, for example, New York Governor David Paterson stepped in with a call for binding arbitration in a dispute over fees between Bethpage, New York-based Cablevision Systems Corp. and Burbank, California-based Walt Disney Co.'s ABC.
News Corp made the $1 million donation on June 24, according to Politico's Ben Smith (and a filing).

As Smith points out, News Corp's highest-ranking Democratic executive, former #2 exec Peter Chernin, left the company last year. Murdoch's liaison to the Democratic party, communications executive Gary Ginsberg, also left the company last year.

"News Corporation believes in the power of free markets, and the RGA's pro-business agenda supports our priorities at this most critical time for our economy," a company spokesman told Smith.

huffingtonpost.com

ABC Redesigns 'World News' Studio

By Kevin Allocca on Aug 16, 2010 01:46 PM
ABC News is in the midst of refurbishing its 66th street news studio where "ABC World News with Diane Sawyer" originates, TVNewser has learned.

We should hear more soon about what new technology is being put in place, but we have heard that the construction will increase the functionality of the studio ten-fold. In addition to "World News," "Nightline," "20/20," and special events broadcast from the space.

For the time being, the programs are broadcasting from temporary setups in the same studio. The network is anticipating that construction will be completed this week in order for a full debut on Monday.

It's been a few years since the studio underwent any major construction. With recent budgetary cuts at the network, an ABC insider tells us, "This is the most economical redesign of that space" that the network has done.

Broadcast audience aging faster than population

By DAVID BAUDER, AP Television Writer – Mon Aug 16, 5:53 am ET
NEW YORK – For years, executives at ABC, Fox and NBC essentially stopped caring about television viewers once they had reached 50 years old.
You don't hear that much anymore.
The median age for viewers at those networks and CBS is now 51. The broadcasters' audience has aged at twice the rate of the general population during the past two decades, according to a new report. It's a quiet trend with a real impact on the way they do business.
"It should be a concern, but it doesn't seem to be a concern at the moment," said Steve Sternberg, who wrote the report for Baseline Inc., an information source for the film and TV industries that is owned by The New York Times Co. "You don't want to have CBS, ABC and NBC all having median ages in their mid-50s."
The risk in having a rapidly aging audience is the networks becoming less relevant to advertisers, the backbone of their business. Increasingly, that's a way of thinking that itself is getting old.
Sternberg first started studying median age data using Nielsen Co. statistics in 1991 when he was at the Bozell ad agency. At the time, ABC's median age — the point at which half its audience was younger and half older — was 37. NBC's was 42 and Fox's was 29. CBS, which has traditionally had the oldest audience, was 45.
For years, these networks (except for CBS) have sold advertising based on how many people were watching in the 18-to-49-year-old demographic. Both CBS (55) and ABC (51) had median ages above that range last season, according to the report. NBC's median age was 49 and Fox's was 44.
Much of the aging isn't unique to TV: The median age for the American population as a whole increased from 33 in 1990 to 38 last year, according to the U.S. Census Bureau.
"You hear people saying, `Your audiences are older now and you don't have the young people you used to have in the 1980s,'" said David Poltrack, chief research executive at CBS. "I say, `Yeah, the U.S. auto companies aren't controlling 80 percent of the market anymore, either.'"
Economics play a part in the aging audience. A generation ago, the networks were more quick to cast off shows in favor of something newer and hipper, but are more reluctant now to get rid of something that's showing success. Most new shows fail, so the financial risk is too great if it isn't really necessary.
With the show aging and star Charlie Sheen in legal trouble, "Two and a Half Men" might have been a ripe candidate for cancellation in another era. Instead, CBS made Sheen the highest paid comedy actor on TV and kept the sitcom on the air. The show's median age is 50.
"Dancing With the Stars," with a median audience age of 60, is the most popular series on ABC's schedule. Its youngest-skewing show, "Lost," just went off the air.
Shows such as "24" and "House" broadened Fox's audience beyond its youth-oriented roots. The median age of the "American Idol" audience has jumped from 36 to 44 over the past seven seasons, the report said. Young people who left when "Friends" went off the air are the most conspicuous of all the viewers who fled NBC.
A young audience has always been the holy grail for networks, but that's changing, said Alan Wurtzel, research chief at NBC. Not only are more older viewers available, advertisers are starting to recognize that they spend money and are receptive to their messages.
"If you try to young down your median age, you're going to be going against gravity," he said.
There's an effort with NBC's new fall schedule to appeal to a broader age group than was evident in the recent past, he said. The "Law & Order" Los Angeles spinoff and the legal series "Outlaw," with Jimmy Smits, both procedural dramas that wrap up a story each week, are two examples, he said.
There were five such procedurals on broadcast network schedules in 1999. Last season, there were 20, Sternberg said. Networks are also showing less comedy, a format that tends to skew young.
"The networks need to start thinking about how they can get a little younger," Sternberg said. "The only way to do that is through programming. There's no law that says they can't get any younger."
Advertisers looking for younger potential customers have more options, including the Internet and smaller cable networks. MTV (median age 23), Comedy Central (31), E! Entertainment (34), FX (38) and Bravo (42) are among the networks that have siphoned younger viewers away from broadcasters.
Among broadcasters, the small CW network specifically targets young women and has a median age of 33. Univision, the largest Spanish-language network and one with significant growth potential, has a median age of 36, the report said.
"The buying community has quietly and slowly shifted its focus away from 18-to-49 (years old) and toward 25-to-54 (years old) in terms of network television," said Jack Myers, editor and publisher of the industry news source jackmyers.com.
Despite the seemingly dismal demographic story, the broadcast networks' ability to consistently attract large, general audiences in an entertainment world where audiences are increasingly fragmented has kept them afloat. There are also advertising sectors geared to plus-50s that either didn't exist or had a much smaller profile two decades ago: prescription drugs, financial services and travel, for example.
"Don't discount people who are in their 50s and 60s. They buy iPads," Wurtzel said. "They're online. The reality is these are the people who have the money."

So what does it mean for broadcast TV?

Let’s start off with the fact that most of these statistics are off. Nielsen in order to figure out who is watching TV will get about 5,000 households to agree to be part of a “representative sample.” Estimates show that about 99million households have TVs in the United States, seems to me Nielsen isn’t covering a large portion of consumers. This research brought to advertisers and programming directors is worth billions of dollars. Advertisers pay to air their commercials on TV programs using rates based on the data provided and programmers use it to decide which shows to keep and which to cancel. So basically when it comes to TV broadcast, all of these mega advertising budgets and thousands of communication professionals are in the hands of this de facto measuring company. See that’s the main issue here. All these companies and networks use an inaccurate sample to determine whether or not a product is a business proposition.


Granted times have changed and younger audience members are indeed more inclined to use interactive solutions. But lets take the evolution of cell phones. It feels as if it were only yesterday when Michael Douglas first appeared on “Wall Street” using this big and bulky device. Twenty something years go by and even grandma’s use the latest mobile smart technology to take pictures of their grandkids. I understand it’s much easier for networks to play repeats of “Wheel of Fortune” but if we want to see any time a recovery in the economy they really do need to start changing their way of thinking. Networks should focus on a particular audience target, study their habits and build knew content for that skew. That older population that appears the prime target for networks today will be non-existent. And that younger audience that their bypassing will eventually become that 36 – 54 demographic. What broadcasters have to take into account is that many of these y generation members will have already built certain habits and perhaps watching TV as we know it won’t be one of them.


So to wrap it up, advertisers and broadcasters don’t be so closed minded. Study your target, create new content, no more cutbacks, if anything employ knew members, help the economy recover. Broadcasters you’ve already invested millions of dollars in technology therefore, use it to your advantage. All that video content that’s being produced on a daily basis upload it onto your site. Create knew products and target new members like Hispanics, Asians, etc. Advertisers don’t let the Nielsen’s fool you. Perhaps the best rating show isn’t the best outlet for your company message. Conduct your own research. Don’t let another company determine where you’re spending dollar should be invested. Once again, it’s all about creating content to drive action!

Intergration of Media in the new digital marketplace

Following on the heels of my colleague, Alexis Fernandez, ignorance of new marketing techniques is not bliss.

Every now and then we "label" someone, who does something different and succeeds at it, a pioneer. Are they really a pioneer and someone withOUT FEAR of trying something different. Take for instance the water bottles used in cycling. A new entrant in the producer of bottles screamed onto the scene with a bottle that opens on both ends for easier and complete cleaning. Talk about turning an industry on its collective head. The "pioneer" then had a mascot run up along side the riders on the mountain stages to promote the product and got himself a world interview on VERSUS which exclusively carried the tour in the U.S. He wasn't a pioneer! He just thought outside...the bottle!

BAG turns the production and marketing industry on its head with its fresh maverick style of engineered live productions and media frenzied creations. AMC's "Madmen" describes everything BAG is not. Corporate offices are supplanted by street cafes and cybernetic chat rooms were ideas are given room to flourish without the confines of glass, steel, brick and mortar.

You want old school ideas and staunch and strict adherence to "numbers" of some sort of outdated monitoring media effect of message and product delivery, the BAG is NOT the place for your product and message integration. If you want REAL consumer contact and delivery in the most utilized mediums for consumers with decision-making power to pick up your wares, then we welcome you to BAG and look forward to a successful partnership.

Rolling R's

Do you go to a party and randomly tell guest that you haven’t seen in ages that your business for the past year has seen a tremendous decline?

ABSOLUTELY NOT! I didn’t think so. If you think of the web as a city and social media better known as Facebook, Twitter, LinkedIn, MySpace, Blogs, Youtube, Flickr, etc as the place where consumers hang out on their spare time you’ll further understand my thought process. I probably just spent 15 minutes deleting “Event Invitations” and marketing messages I received via Facebook that had no real value or connection to me whatsoever. Thing is I’ll receive one of these 247 notices that consist no real substance, I’ll ignore it, time will pass and then all of a sudden I’ll have over 600 messages on my home page. Does that ever happen to any of you? I feel as if “marketers” are taking advantage of the social network craze and are turning away numerous of potential prospects. That’s why I asked if you attended a party would you share your company slumps with individuals you just met. Most likely you answered no and if indeed that is the case then I am sure you also know you couldn’t interrupt a party, treat everyone as a sales lead and blabber on about your oh so perfect company because that to wouldn’t get you far in the scene. So from now forward take it for what it is, a “party.” Network, build valuable interactions, develop lasting friendships and who knows perhaps, a knew business opportunity may arise. And remember your social media activity speaks more than you think!

The Web Is Not TV

How many times when browsing on a website did a flash-video TV commercial pop up? I for one lost count already and in all actually click on the skip button as soon as humanly possible.

Automakers for one have always been into big budget TV commercials and other offline advertising. The high definition camera shots, 3D graphic elements, the “sponsored” by segments, and all those other high ticket priced values sure add notoriety but are they truly effective when it comes to web interaction?

When people visit a site online, they aren’t looking for a TV commercial, they are searching for some type of information. Legal services appear to have replaced the car infomercial frenzy in South Florida however, are regulated by the Florida Bar, so thankfully that won’t be the case for in distraught property owners when visiting a lawyers site. Automakers rather than spending their efforts and budget on cutting edge one-way messages should focus on educating consumers. Business owners listen up, once a consumer has visited your site you don’t need to grab their attention you already have it! Whether if it’s that your selling a service, product, or idea inform your audience and deliver a two way channel. For example, automakers should highlight who’s behind the vehicle, they should interview the designers and ask them why did they create the dashboard the way that they did, other vehicle owners should be able to tell their shopping experience, and sales representatives should be able to explain the leasing process and list the requirements. So with that said, remember the web is not TV and focus on telling your story and promote your expertise.

New Marketing Approach

For years the word “marketing” has been associated with the creative advertising agencies that manage the big spending media buy accounts however, in today’s marketplace with technology constantly changing, new rules must be applied.

Television, radio, and print were at one point the only form of advertising and public relations used to be exclusive but little did they know that the digital era would alter the rules of communication. See what happens is, many of these agencies make prior commitments with the traditional mainstream outlets. Often times they’ll sway clients into buying those same exact channels voicing that research and analysis have proven that stream of advertising to be the best forum for their message delivery, however, is that in fact the real case? Yes, guys watching football on TV drink plentiful of beer so perhaps it makes sense for a mass marketer like Budweiser to advertise during the NFL broadcast but perhaps not as effective for a small microbrew company like Polar that appeals to a small niche audience. Big media advertising buys may work for mass appeal products but it most definitely won’t work for local services, niche products, special events, etc.

In addition, those same advertising agencies employ creative people to sit in these ultra chic offices to dream of fascinating new ways in how they can interrupt consumers and grasp their attention so that they deliver an effective one-way message, that note will be broadcasted during the highest rating programming with the hopes of reaching more viewers. Just notice next time when your watching your favorite show what your doing during the commercial break. Problem here is, people today don’t trust advertising and for years marketers relied on getting audience members to stop what they were doing to pay attention to their message. In order to obtain a distinctive result advertising must be integrated and require participation. It’s about customization and delivering content via an open line of communication.