Media Bites-November 6 2009

Activity in the media business affecting change in the TV landscape


(1) During the last week of October, several TV station group owners reported third quarter revenue declines: Meredith (-13%), LIN TV (-18%), and McGraw Hill (-24). (Claire Atkinson-Nov 1 Broadcasting & Cable)

(2) Comcast is oppressively pursuing the purchase of NBC Universal and many executives expect the deal to close within the next 12-18 months, even with the sticky issue of Vivendi not yet relinquishing its 20% stake in NBC Universal. The Wall Street rumor on this deal is that Comcast may sell off the NBC Network and station groups to a third party.

(3) News Corp is also on the M&A hunt, bidding on Cox Communications 65% stake in Travel Channel, renaming it to National Geo Traveler. Fuel TV, the youth oriented net may also be sold off in the process.

Mergers, acquisitions and sell offs should all be viewed in a positive light for both consumers and advertisers. Networks and TV groups that are struggling could be revived and reinvented as part of a larger media organization, offering more selection, better programming and greater promotional opportunities. Additionally, alternative viewing platforms such as Hulu, Fancast, ZillionTV, TV Everwhere and now even ITunes, will have a more expansive market as viewers may elect to watch their favorite shows on their desktop, as well as on the set-top.Its hoped, and the preliminary research is proving it true, that if viewers tune in via an alternate platform, they will also sample the show during its time slot or via DVR or other device.

And according to a recent AP interview, Comcast CEO noted, ' I've been saying for a long time that I think video over the internet is more friend than foe.'

How great that would be if all of the parties could work together to deliver quality programming to viewers when they wanted and how they wanted it, subscription models that benefit consumers and programmers and advertiser friendly opportunities that make money for all.