Broadcasters see "tie" as best outcome from spectrum auction | Retrans fees are small part of programming costs, research shows | Broadcasters want details on plan to share spectrum with DOD
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July 23, 2013
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Broadcasters see "tie" as best outcome from spectrum auction
NAB doesn't anticipate a "win" for broadcasters who stay in business after the incentive auction, with the best outcome being that they emerge in the same position as before the sale, according to testimony scheduled to be given today by NAB's Rick Kaplan at a House panel hearing. For broadcasters to feel like they have emerged from the auction with a "tie," repacking costs would need to be compensated and coverage areas for the almost 60 million over-the-air viewers would need to be preserved, according to Kaplan's prepared remarks. Broadcasting & Cable (7/22)
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Ooyala Global Video Index Q1 2013 reveals:
● Share of tablet & mobile video grew 19% in Q1 2013, after doubling in 2012
● Mobile & tablet video now account for more than 10% of all online video plays
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Business & Industry Report
Retrans fees are small part of programming costs, research shows
Retransmission-consent fees paid to broadcasters, despite their recent growth, still account for only a small percentage of distributors' programming costs, according to SNL Kagan. Broadcasters took in $210 million via retrans in 2006, or 1.3% of all fees for broadcast and basic cable networks, and this year will take in $3.02 billion, or 9% of the total. At the same time, the Federal Communications Commission is reporting that growth in cable expenses has slowed considerably since it peaked a decade ago. Radio Business Report (7/22)
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Broadcasters want details on plan to share spectrum with DOD
Broadcasters are questioning the viability of the Defense Department agreeing to turn over a portion of its spectrum to wireless carriers. The plan, which officials estimate would cost $3.5 billion, says the Defense Department would share spectrum with broadcasters, but no specific plan or timetable has been released. "At first blush, the DOD proposal doesn't seem to make much sense," NAB spokesman Dennis Wharton said. "While we are not opposed in principle to sharing where it works, DOD has done none of the legwork necessary to even begin the conversation." The Wall Street Journal (tiered subscription model) (7/22)
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Gannett gets boost from retrans fees, digital revenue
Gannett TV station revenue for the three-month period ending June 24 rose slightly to $204.8 million compared with the same period last year. Retransmission-consent fees jumped 62.3% but were offset by essentially flat ad revenue that was hampered by a drop in political ads. Digital revenue made up more than 25% of the total. Broadcasting & Cable (7/22)
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Broadcast Programming
Univision is poised to win key sweeps demos for first time
Univision is on track to win the July sweeps for both the 18-to-49 and 18-to-34 demographics. The win marks the first time the Spanish-language network has beaten its English-language counterparts in a sweeps period. Univision's Los Angeles and New York affiliates helped deliver the victory, with the stations attracting the most viewers in prime time among the 18-to-34, 18-to-49 and 25-to-54 groups. Deadline.com (7/22)
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Related Industry News
How senior-skewed Fox News is winning in a young audience's game
Fox News Channel has one of the biggest audiences among cable networks, but also one of the oldest -- its viewers' median age for the last two years has been 65 and up. Analyst Craig Moffett says Fox News has been able to remain competitive, even with marketers preferring the 25-to-54 demographic, due to "the level of passion and engagement" among its audience. "That translates into big money because cable systems now pay Fox News one of the highest per-subscriber fees in television, 94 cents a month, topped in cable television only by a few networks, most of which have expensive sports rights to pay," Bill Carter writes. The New York Times (tiered subscription model) (7/22)
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People & Personalities
NAB chief to speak at broadcast convention in Brazil
NAB President and CEO Gordon Smith in August will travel to Sao Paulo to give the keynote address at the Brazilian Society of Television Engineering Conference, the biggest convention of broadcasters in South America. Smith will speak about how NAB provides tools to broadcasters to support the preservation of "critical values that are the foundation of democratic ideals." Inside Radio (free content) (7/23), Radio World (7/22)
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"Giants of Broadcasting" to include Emmis CEO, ABC TV Group chief
Jeff Smulyan, chairman and CEO of Emmis Communications, will be among those honored as "Giants of Broadcasting" by the Library of American Broadcasting. The Oct. 16 event in New York will also recognize as "Giants" TV talk show host Dick Cavett, "60 Minutes" correspondent Morley Safer, Disney/ABC Television Group President Anne Sweeney and former Federal Communications Commission member Richard Wiley, among others. NTS MediaOnline (7/22)
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Written by NAB staff attorneys, this booklet contains critical information on relevant laws and FCC rules. Topics include contests, libel, indecency and public files. NAB members receive a substantial bulk discount. For more information and to purchase, visit the NAB Store.
 
NAB News
Reminder: Television broadcasters need to file cable royalty claims
Television stations whose signals were carried as distant signals by at least one cable system in 2012 must file a claim with the Copyright Royalty Board no later than July 31, 2013. Stations that fail to file within this time frame cannot collect any royalties for 2012. Broadcasters can file claims through the Copyright Office's website. Read an NAB Counsel Memo for details. For further assistance, contact NAB's legal counsel: John Stewart at (202) 624-2685 or Bart Stringham at (202) 429-5457.
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Small Market Money Makers Competition
Participation in the 2013 Small Market Money Makers Competition could yield up to $1,800 in prizes! No entry fee or registration is required. The early competition deadline is July 26, and the overall competition closes on Aug. 23. Prizes will be awarded at the NAB Small Market Television Exchange, Sept. 26 to 28, in Phoenix, Ariz. Read more information.
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SmartQuote
Silence is one of the hardest arguments to refute."
-- Josh Billings,
American humorist
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