January 12, 2010: Clusterf#@k to the Poor House - Wall Street Bonuses

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Clusterf#@k to the Poor House - Wall Street Bonuses
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Companies that American taxpayers had to bail out with billions of dollars use that money to reward their employees with bonuses.

Interesting Management view of union organizing campaigns

Interesting Management view of union organizing campaigns, they really don't like us trade unionists very much.

Projections- Winning Results: Successful Union Free Strategies

After watching their Powerpoint presentation I wrote the following response:

If you want to keep the union out of your business:

1) Treat your employees like partners not peons. Your employees are not an expense, but your most valuable asset. They need to know that you feel that way.

2) Prove it! Provide excellent wages, benefits, profit participation, and merit based bonuses to ALL employees, not just the select few.

3) Provide ongoing training and clear career paths to engage your employees. Develop loyalty, low turnover, low absentee rates, and high productivity by being loyal to your employees. If you are enrolled in their success, they will be enrolled in yours.

4) Ask your employees for their input. middle management needs to be in relationship with the workers so that when upper management wants a result, the middle manager can ask the employees what they need to create that result.

Only respect, communication, and inclusion will keep your shop union free.

If you can't do those things, then someone like me will show up with organizing cards and help you do the right thing through collective bargaining.

TV Stocks Soar In 2009

38% of broadcast engineers have been laid off around the country in 2009. TV stations are automating production studio control rooms, consolidating master control rooms to giant server farms, using LNS and one-man-bands to cut ENG crews, all to eliminate even more engineering positions.

At the same time broadcast company stock prices, despite claims of massive loss of advertizing revenue, have had dramatic increases in 2009.

At NewsCorp, the stock price jumped 66.18%

Disney's stock rose 42.13%

CBS stock is up 71%

Of the four major networks only GE, parent of NBC showed a stock price drop in 2009, the share price falling - 6.6%.

Employees at all these companies have endured layoffs, wage freezes, and benefit reductions, while executives recieve big bonuses and the stock price soars.

BD

See the article from Radio/TV Business Report below for details.

What a difference a year makes! The advertising recession dragged radio and television stocks down in 2008, with what turned out to be the bottom of the trough coming in late November of ’08. 2009 did not bring a quick recovery from the recession, but as soon as Wall Street got the scent of a recovery, advertising-dependent stocks surged.

If you look at the graphs below, you will see that stock price recovery beginning in late summer and building to a powerful rally in Q4. The TVBR Television Index closed out its second year of existence by surging to an all-time high on the next to last day of 2009, then slipping back only slight to close the year with a gain of 414.8%.

Television stock performance 2009

Television 12/31/08 12/31/09 2009 2009
Company Close Close Net Chg Pct Chg

Nexstar 0.51 4.05 3.54 694.12%
SBS 0.10 0.78 0.68 680.00%
Television Index 26.04 134.08 108.04 414.84%
Media General 1.75 7.84 6.09 348.00%
LIN Television 1.09 4.46 3.37 309.17%
Gray (common) 0.40 1.50 1.10 275.00%
Belo 1.56 5.44 3.88 248.72%
Scripps 2.21 6.96 4.75 214.93%
Gray, Cl. A 0.58 1.50 0.92 158.62%
Entravision 1.56 3.40 1.84 117.95%
Google 307.65 619.98 312.33 101.52%
Saga* 6.60 12.54 5.94 90.00%
Gannett 8.00 14.85 6.85 85.63%
Meredith 17.12 30.85 13.73 80.20%
CBS Cl. B 8.19 14.05 5.86 71.55%
CBS Cl. A 8.24 14.07 5.83 70.75%
News Corp. 9.58 15.92 6.34 66.18%
Journal 2.45 3.89 1.44 58.78%
McGraw-Hill 23.19 33.51 10.32 44.50%
Disney 22.69 32.25 9.56 42.13%
Sinclair 3.10 4.03 0.93 30.00%
ACME 0.40 0.50 0.10 25.00%
Wash. Post 390.25 439.60 49.35 12.65%
Time Warner** 30.18 29.14 -1.04 -3.45%
General Elec. 16.20 15.13 -1.07 -6.60%
Fisher 20.64 16.25 -4.39 -21.27%
Young 0.03 0.0 -0.02 -66.67%

*adjusted for 1 for 4 reverse split 1/28

**adjusted for 1 for 3 reverse split 3/27

The long-awaited advertising recovery is finally showing signs of having begun, which is good news for many broadcasters, not the least of which is CC Media Holdings, the private equity-backed parent company of Clear Channel Communications.

It spent much of 2009 in financial wheeling and dealing to avoid any technical default under its credit agreements which could have landed it in the clutches of vulture capital funds who are bent on seeing it have to file Chapter 11 so they can grab assets on the cheap from their investments in deeply discounted Clear Channel debt.

In the most recent chapter of that drama, a Clear Channel Outdoor subsidiary sold $2.5 billion of new bonds and helped its parent company spruce up its balance sheet. At the same time, Clear Channel Radio reported that December revenues were pacing up from a year ago, so it appears the recovery is real and the vultures will have to go away hungry.

– Jack Messmer

http://www.rbr.com/features/intel_briefs/19790.html

Justice Dept. To Scrutinize Comcast-NBC Deal

The potential merger between Comcast and NBC Universal will be under the regulatory microscope of the Justice Department.

The U.S. Department of Justice confirmed Wednesday that it would be the agency to spearhead a review of the $30 billion deal that would give Comcast majority ownership of NBC, Universal Studios, and a host of cable TV franchises. The antitrust portion of the review could have gone to the Department of Justice or FTC. At least one watchdog hailed the DOJ decision.

According to Reuters, DOJ’s main area of concern is likely to be assuring that NBCU programming will remain available to Comcast’s MVPD competitors. Others are concerned that Comcast will wield too much internet programming power.

Free Press executive director Josh Silver said, "A Comcast/NBC merger would create a media behemoth with too much power in too few hands. It is a good sign that the Justice Department was given the green light for the review. The DOJ’s antitrust division now has a chance to make a clean break from the inactivity of recent years and tackle this merger with the urgency it deserves."

Silver lauded the presence of Christine Varney at DOJ as head of the antitrust division. A former FTC employee, she is on record as being wary of vertical integration.Silver quoted her words from a 1995 speech, when she said, "Vertical acquisitions can be anticompetitive. Vertical mergers can create or raise entry barriers that lead to higher prices or lower quality or innovation for consumers.... Vertical mergers can, in certain instances, increase those barriers to entry even more, raising costs and reducing innovation and quality for consumers."

Both the Justice Department and the Federal Trade Commission typically look into mergers that involve potential antitrust issues, but DOJ is taking the lead on this one. Ultimately, the Federal Communications Commission will also need to examine the deal.

First revealed last October, the merger would create a joint venture 51 percent owned by Comcast and 49 percent by NBC parent company General Electric. Comcast would pay GE about $6.5 billion in cash upfront. A special option would allow GE to eventually sell off pieces of its stake in the new venture to Comcast over a period of seven years.

Comcast is already the nation's largest cable provider with 23.8 million cable TV customers. The company also owns a few select cable channels, including E! Entertainment and two sports channels--the Golf Channel and Versus. If the NBCU deal is consummated, Comcast will also claim ownership of not just NBC and Universal Studios, but also an array of popular cable networks, including CNBC, MSNBC, Bravo, USA, SyFy, and Oxygen. NBCU also has a minority share in Hulu, while Comcast has Fancast, its own video streaming site.

Since the merger would turn Comcast into both a provider and distributor of news and entertainment, the DOJ has reason for concern. One hot button issue has been Comcast's treatment of cable channels outside its ownership.

On Wednesday, the Tennis Channel filled a complaint with the FCC accusing Comcast of giving preferential treatment to Comcast-owned sports networks. Comcast's Golf and Versus channels are free as part of a basic cable subscription, while the Tennis Channel is only available through a premium sports package that costs $5 to $8 extra per month, thereby hitting a smaller number of subscribers.

The National Football League also fought a lengthy battle with Comcast over the same issue. The two sides finally came to peace last May after Comcast agreed to move the NFL Network from its premium sports package to a less pricey digital package that would reach more customers.
GE said had it no comment on the DOJ's investigation, while Comcast failed to respond to a request from CNET.

Originally posted at Digital Media



Comcast, NBC Heads Expected At Senate Deal Hearing

WASHINGTON (Reuters) - The heads of Comcast Corp and NBC Universal have been asked to appear at a Senate committee hearing later this month to discuss a deal pending between the two companies, a spokeswoman said on Monday.

Comcast Chairman Brian Roberts and NBC Universal President Jeff Zucker are expected to appear at the hearing held by the Senate's antitrust subcommittee, which will probably take place in late January, said Dawn Schueller, a spokeswoman for Sen. Herb Kohl.
"It will consider implications of the merger for consumers and the cost that they'll pay for cable," said Schueller.

Other witnesses will likely include a representative of a consumer group and a spokesman for a rival company, she said. Neither has been identified.

Antitrust experts have said that Comcast Corp's NBC Universal deal faces a long and intense regulatory review that will likely end in approval only after the cable giant agrees to give rivals access to NBCU's television shows and movies.

Reporting by Diane Bartz; Editing by Richard Chang
http://www.reuters.com/article/idUSTRE6034GZ20100104

FCC Broadcast Finance Panels Set For January 12, 2010 Meeting

MEDIA BUREAU ANNOUNCES PANELISTS AND AGENDA FOR MEDIA OWNERSHIP WORKSHOP ON FINANCIAL AND MARKETPLACE ISSUES

(MB DOCKET NO. 09-182)

Washington, D.C.: The Media Bureau today announced the panelists and agenda for its January 12, 2010 media ownership workshop, to be held in the Commission Meeting Room from 9:00 a.m. – 1:00 p.m. The workshop will focus on the current financial and economic conditions and marketplace factors affecting the media industry and how the Commission should take these into account as it conducts its 2010 quadrennial review process.

Agenda and Panelists:

9:00 a.m. Welcome and Introductory Remarks

9:15 a.m. Financial Issues Facing Larger Markets/Large Broadcasters

Brandon Burgess, ION Media Networks
James Cotter, Sun Trust Bank
Brian Rich, Catalyst Investors
Marci Ryvicker, Wells Fargo

11:00 a.m. Financial Issues Facing Smaller Markets/Small Broadcasters

Susan Patrick, Patrick Communications
Maria De Leon, KXTD Gaytan Broadcasting Media, LLC
Rick Peters, Bluewater Broadcasting
Terry Jones, Syncom Funds

1:00 p.m. Adjournment

Additional panelists may appear.

The forum will be open to the public. Audio/video coverage will be broadcast live over the Internet from the FCC Live web page at https://webmail.fcc.gov/exchweb/bin/redir.asp?URL=http://www.fcc.gov/live. Questions can be submitted in person or via email to 2010quadrennial@fcc.gov throughout the course of the workshop.

Open captioning will be provided. Other reasonable accommodations for people with disabilities are available upon request. Include a description of the accommodation you will need. Also include a way we can contact you if we need more information. Last-minute
requests will be accepted, but may not be possible to fill.

Send an e-mail to fcc504@fcc.gov or call the Consumer & Governmental Affairs Bureau at 202-418-0530 (voice), 202-418-0432 (tty).

For further information, contact Mania Baghdadi or Amy Brett, Industry Analysis Division, Media Bureau (202) 418-2330. Media Bureau press contact: Janice Wise (202) 418-8165.

-FCC-

Why We Pay Union Dues

Some time back, I received a question from one of my IBEW Local 1212 Brothers at WPIX regarding why we pay union dues, when the non-union guy editing in the edit room next to his did not.

Wow, where to begin?

First, while shared jurisdiction allows WPIX to hire both represented and non-represented editors, we, as IBEW members, are paid substantially more than the non-union editor. This is true at the IATSE and NABET shops as well.

The union provides shop stewards to help with workplace issues offering the strength of collective bargaining and the grievance/arbitration process for larger problem resolution.

Grievances filed and moving towards arbitration regarding how WPIX manages shared jurisdiction should end in a positive result for our members. This process is not available to non-represented employees.

The union raises the baseline wages, benefits, and working conditions for members through collective bargaining.That non-union engineer is paid better because union rates bring up non-union rates to discourage organizing.

The union is only as valuable and useful as the commitment of it's membership. IATSE Local 1 meetings get hundreds of members attending, IBEW meetings get less than a dozen most of the time, then we wonder why the situation is where it is. We must strive to do better.

The fellow who asked the question is one of our best and brightest. Engineers like him are the ones with the wherewithal to facilitate the changes we need to make our union strong and responsive to our members. He, and others like him, are key players in our efforts.

We finally have some good people at the International and the IBEW Local 1212 hall. We have opened a dialog with NABET and IATSE through the New York Broadcast Trades Council for our mutual benefit. Give the leadership some feedback and support, and we'll all get even more value for our union dues.

Our industry is shrinking. Consolidation, automation, LNS, and changing business models in broadcasting will continue to cause staff reductions.

We need to think outside the box, organize every non-management employee that does not have union representation at every TV station and production company. We need to organize the workers at the new server farms where the networks will be running multiple master control rooms. We need to organize in all new media.

To do this, we must promulgate a contract that is freelancer friendly, with good wages and easily reached benefit thresholds.

We must also support those members that will be leaving the broadcast industry for new endeavors. Career counciling and coaching needs to be made available through our unions.

Woody Allen said "98% of success is showing up". Our people have to start showing up, not just to work, but to union meetings. The challenges we face require everyone's help, not just the usual suspects.

I have always been a trade unionist and believe that we are indeed our brother's keepers. There is no limit to what can be accomplished by workers standing together against the short sightedness and greed of big corporations.

Remember what Benjamin Franklin said to the members of the First Continental Congress:"We must all hang together, or assuredly we shall all hang separately."

Fraternally,

Bob D

Robert R. Daraio
Recording Secretary
New York Broadcast Trades Council
45 Hunter Street
Ossining, N.Y. 10562-4612
914-944-9626 home
914-774-2646 cell
bdaraio@yahoo.com

Cablevision To Cut Newsday's Pay, Vacations

By KEITH J. KELLY
The New York Post

Newsday's 1,100 unionized workers are fuming at a proposal by owner Cablevision to slash their pay by an average of 10 percent, lop off a week's vacation and impose a longer work week under a new three-year contract.

"It was like a cold slap to the face," said one Newsday journalist shortly after hearing about the new proposal. "There has been almost immediate outrage."

The cuts are part of an effort by Cablevision to wring $8 million in savings out of the Long Island daily, according to one person. The cable operator bought Newsday from Tribune Co. in 2008.

Rank and file workers are expected to vote on the new contracts on Sunday. Current contracts expire between late February and late June, depending on the department. The contract for the 250 people in editorial expires on March 31.

Under Cablevision's proposal, most workers would see their salaries cut 10 percent, though the newspaper's drivers are being asked to take a 15 percent pay cut and to eliminate 15 positions from the 160-person transportation unit.

In addition, all employees' workweek would be extended five hours to 40, and long-term employees who have topped out at five weeks' vacation would lose a week.

"Newsday is not immune to the economic challenges facing the newspaper industry and we have been working closely with our union partners to find solutions to issues impacting our business in order to maintain Newsday as a strong and viable company for the long term," said Newsday spokeswoman Deidra Parrish Williams. "We are pleased that we were able to reach a tentative agreement with the union leadership and hope that it will be ratified."

Michael O'Connor, president of Local 406 of the Graphic Communications International Union, said Cablevision's offer is aimed at saving Newsday around $8 million a year, and that the newspaper lost at least $7 million in 2009.

"I think this is the best we are going to extract from Newsday at this time," said O'Connor. "I know a lot of people are upset, but everyone has to look at their options."

O'Connor said Cablevision originally pushed for a 15 percent pay cut across the board and for more leeway on who it could ax.

He added the offer currently on the table outlines for the first time specific language on severance, proposing that two weeks of pay for each year of work up to 52 weeks.

NBC, Comcast headed to the Hill

The proposed merger of a major television network and a major cable company is going to be dragged over the coals by Kohl – Sen. Herb Kohl (D-WI), Chairman of the Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights.

A hearing is expected late this month.According to reports, both Brian Roberts of Comcast and Jeff Zucker of NBC Universal are likely to be called to testify.

Other likely witnesses are a consumer watchdog and an executive from a competitor.The Subcommittee is part of the Judiciary Committee, which features seven Democrats v. only three Republicans, headed by Ranking Member Orrin Hatch (R-UT).

According to Reuters, Comcast’s Fancast Xfinity, which is linked to a multi-company project known as TV Everywhere, may also come up at the hearing.RBR-TVBR observation: This is a subcommittee of one of two Senate Committees that could host a session on Comcast/NBCU, the other being Commerce. It has a relevant subcommittee, and there are mirror committees and subcommittees in the House, leaving open the possibility of seven additional hearings. We don’t think there will be that many, but we’re also sure this will be the first, not the last.

Watchdogs Attack TV Everywhere

A coalition of consumer groups and media watchdogs is calling for an antitrust investigation into the TV Everywhere service being touted by several large media groups, chiefly Time Warner Cable and Comcast.One of them, Free Press, put out a report on the matter called “TV Competition Nowhere: How the Cable Industry Is Colluding to Kill Online TV.

”The charge is that the two giant cable/internet ISPs, along with satellite broadcasters and big programmers, are tying a great deal of desirable online programming to an MVPD subscription, thus heading off possible competition from online services, limiting consumer choice and opening up the possibility of building “…on the cable TV model that gouges consumers.”

"This is a textbook antitrust violation," said report author, Free Press advisor and law professor Marvin Ammori. "The old media giants are working together to kill off innovative online competitors and carve up the market for themselves. TV Everywhere is designed to eliminate competition at a pivotal moment in the history of television. The antitrust authorities should not stand by and let the cable cartel crush Internet TV before it gets off the ground.

"Free Press’s Ben Scott sees the internet as a venue that may finally host an effective competitor to cable television, and does not want to see that possibility nipped in the bud. He said, "Internet TV could actually inject much needed competition into a TV market long dominated by cable companies -- this is a valuable opportunity to provide greater innovation for consumers. More competition means lower prices for consumers. The Internet offers the potential for democratizing the TV screen now controlled by a handful of powerful media companies. We urge antitrust authorities to move immediately to promote competition.

"The coalition includes Free Press, Media Access Project, Consumers Union, Consumer Federation of America, New America Foundation's Open Technology Initiative, Public Knowledge, and the Participatory Culture Foundation.

WRITERS GUILD OF AMERICA, EAST’S DIGITAL MEDIA SIGNATORIES TRIPLE IN 2009

WGAE added 22 digital media companies as signatories in 2009 as result of the Guild’s increased emphasis on organizing and Writers Guild 2.0 initiative.

Signings Skyrocket under Writers Guild 2.0 New Media Initiative

NEW YORK CITY – Writers Guild of America, East, AFL-CIO (WGAE) added 22 digital media companies as signatories in 2009. Thirty writers have become guild members as a result of digital media work covered by guild contracts this year. The exponential increase in digital media projects covered by the WGAE is the result of the union’s focus on new organizing.

"The business models, distribution structures, and creative opportunities in digital media are still being developed. The fundamental goal of the Writers Guild 2.0 initiative is to ensure that creators are at the table as decisions are made about these basic issues,” said WGAE Executive Director Lowell Peterson. “The enormous potential of digital media won't mean much if writers and other creators can't make a living, or if they must cede creative control."

Rapid growth in signatories shows that digital media creators feel a strong need for guild representation. Digital media producers say they seek the same benefits in guild membership as any other writer, such as healthcare, credit for their work and a community willing to fight for their rights.

Matt Koff, co-writer of the show “9am Meeting”: “I joined the guild for the same reasons as everyone else: respect, recognition, and Joss Whedon's eternal friendship."

From Don Hooper, writer and owner of Jamtown Films Productions: “I joined the WGA so that I wouldn’t die; out-of-pocket health care, just like my failed attempts at sustaining a Hollywood drug addiction, is just way too expensive.”

Ben Zelevansky of writing team BenandAlex.tv: “Joining the Writers Guild means becoming a part of the larger community of creative professionals. But mostly I just wanted to meet Paddy Chayefsky. Turns out he's been dead for about 30 years. At least now I can write off movie tickets on my taxes.”

Alex Bloom of BenandAlex.tv says he joined the WGAE for legitimacy, “if someone doesn't think what I've written is funny, I can shove my guild card in their face and cackle.”

Dan McNamara, writer/creator of “The Bear, The Cloud and God”: "I got a discount on shoes!" (Members do indeed get an annual discount).

New WGAE signatories announced in the last quarter of 2009 are:

9am Meeting – Award winning animated web series, ny.channel101.com/show.php?show=200

AGBK – A Brooklyn-based production company creating and producing of web series, short films for the web, branded entertainment/web commercials and music videos which have won awards in national and international festivals. AG-BK.com

The Bear, the Cloud and God – Animated web series which has also aired on cable channel G4TV. ny.channel101.com/show.php?show=213

The Battery ’s Down – Live action musical web series featuring cameos from top Broadway stars. Soundtrack records available. thebatterysdown.com

Confirmed Bachelors – Animated web comedy series starring radio star Frank DeCaro, uses 1970's Hanna-Barbera-style animation. www.theconfirmedbachelors.com

Alex Bloom and Ben Zelevansky – Live action and animated web series ranked #16 in the iTunes directory of comedy podcasts. benandalex.tv

Downsized – Live action web series praised by Tubefilter and Visioweb.Tv. Second season will stream on StrikeTV. downsizedthewebseries.com

Duder – Webby award winning live action series with 22 episodes online. duder.com

Gavin Lance – A unique live action take on the comic book genre. gavinlance.com

Guy and Cut Films – Production company specializing in original web series and short films. guyandcut.com/reel.html

Jamtown Films – Production company's work has been official film/pilot selections in New York TV Festival, Big Apple Film Festival, Queens International Film Festival and more. jamtownfilms.com

Respect Films – Production company producing live action web series including psychedelic sci-fi show The Third Age and for NFL Writers Room for ESPN, among others. respectfilms.com

Undead New York – Original animated web series in production.

The Writers Guild of America, East, AFL-CIO, is a labor union representing writers in motion pictures, television, cable, digital media, and broadcast news. The WGAE conducts programs, seminars, and events on issues of interest to, and on behalf of, writers. In addition, it represents writers’ interests on the legislative level.

For more information on the Writers Guild of America, East, visit www.wgaeast.org.
555 W 57th St., NY, NY 10019
(212) 767-7800

Walt Disney's Grandson Facing Gun, Drug Charges

By Pandora Young, FishbowlLA

Patrick Disney Miller, grandson of Walt Disney, is facing some serious prison time. From the Associated Press:

Cops say they found 13 handguns, a rifle, an illegal assault rifle and various drugs at the defendant's Woodland Hills home. Thanks to a 2005 drug conviction in Fresno, Miller is barred from owning guns or ammunition, say prosecutors.

LAPD officers obtained the search warrant after running a background check on Miller when they discovered he had allegedly purchased ammunition, according to the D.A.'s office.

Miller, 42, was taken into custody about 5:30 a.m. Wednesday at his home in Woodland Hills, said Officer Rosario Herrera of the Los Angeles Police Department's Media Relations unit.

Miller was booked for "possession of a firearm by a felon" and selling ammunition, Herrera said. Information on Miller's felony background was not immediately known.

The District Attorney's office filed a felony warrant against Miller on Monday alleging possession of ammunition, said Jane Robison of the DA's office. Investigators served the warrant and arrested Miller.

Miller was be arraigned Van Nuys Superior Court. LAPD officers obtained the search warrant after running a background check on Miller when they discovered he had allegedly purchased ammunition, according to the D.A.'s office.

Miller pleaded not guilty to charges of illegal possession of guns and drugs on Wednesday in a California court and was remanded in custody, authorities said.

He had been freed on a $ 35,000 dollar bail, but at Thursday's arraignment the judge raised the amount to $ 550,000 dollars and Miller was taken into custody. A new hearing was set for February 4.

Miller's mother is Diane Disney Miller, the eldest daughter of the famous and late Walt Disney. She is married to Ronald William Miller and together they have seven children where Patrick Disney Miller is their youngest.

If convicted of all charges, Miller faces more than eight years in state prison.

Time Warner and Fox Reach a Cable Deal

By BRIAN STELTER

The New York Times

The News Corporation and Time Warner Cable struck a deal just in time for the Sugar Bowl.

The two companies said Friday evening that they had agreed on new terms for a contract covering Fox stations in New York, Los Angeles, Orlando and other markets, averting a blackout of the weekend’s college bowl games in millions of homes.

They did not disclose the terms. The deal between the News Corporation and Time Warner caps weeks of sparring over the price that the cable company — and by extension its customers — should pay to watch Fox, ahead of an end-of-the-year contract expiration.

Analysts had expected that the deal would set a new high-water mark for local TV stations that want sizable subscriber fees in exchange for so-called retransmission rights.

In tense negotiations with Time Warner Cable, Fox had demanded about a dollar a subscriber per month, far more than other stations have received. Time Warner Cable thought 30 cents was more reasonable, said people briefed on the talks who insisted on anonymity because the specifics of the talks were confidential.

Most likely, the two companies reached a compromise on the price, but both refused to comment Friday on the figure.

“We’re pleased that, after months of negotiations, we were able to reach a fair agreement with Time Warner Cable — one that recognizes the value of our programming,” said Chase Carey, the president of News Corporation, in a statement.

Time Warner Cable’s president, Glenn Britt, called it a “reasonable deal.”

Meanwhile, customers of another major cable operator, Cablevision, were reminded Friday of what can happen when carriage talks break down. The Food Network and HGTV were unexpectedly removed from Cablevision’s lineups in New York, New Jersey and Connecticut shortly after the stroke of midnight, sending angry customers to their keyboards and phones to demand answers. Cable and satellite operators pay media firms for the right to carry channels, and those fees are reflected in customers’ bills.

Cable operators have historically resisted paying directly for the right to retransmit stations, but they have softened their stance in recent years, and some stations now receive between 10 cents and 40 cents a month per subscriber.

Fox asserted it deserved more. Rupert Murdoch, the News Corporation chairman, has positioned the company as a leader in “creating an economic template for the future.” Every cent represents millions of dollars in monthly revenue.

Analysts say the Fox station group’s aggressive stance could benefit other broadcasters. In a report last month, analysts at UBS said the current dispute was “likely a harbinger of things to come as consumers have more alternatives to cable than ever before,” giving programmers more leverage in negotiations.

The big fee for Fox was part of a larger package of News Corporation channel renewals, which put cable channels like FX at similar risk of vanishing from Time Warner Cable systems, at least temporarily.

Fee negotiations are usually conducted discreetly, and deals are often completed close to their deadlines without viewers ever knowing. But Fox’s clash with Time Warner Cable broke out in public in November when the cable operator started a campaign to hold the line on programmer fee increases.

Some networks, it said on its Web site, “are trying to boost their bottom line by squeezing cable TV viewers like you — and threatening to pull the plug on popular shows if we don’t roll over.”
Networks say the fee increases are a matter of survival — or at least are necessary to keep producing quality programming.

Time Warner Cable representatives traveled to Los Angeles for talks with News Corporation early in the week. Under pressure from the government and from viewers to stave off a blackout, representatives for both sides met in a conference room on the Fox studio lot at 10 a.m. Pacific time on Thursday, and talks continued through Friday evening, said an executive briefed on the talks who was not authorized to speak publicly.

The Fox negotiators had the option to pull the plug after the contract expired early Friday morning, but they decided to keep talking.

On the other side, the Food Network and HGTV outage affected about 3.1 million subscribers in the New York metropolitan area on Friday. The owner of the popular channels, Scripps Networks, says it deserves more cash for them. “The distribution rates Cablevision pays for Food and HGTV are among the lowest in the industry,” said Kenneth W. Lowe, the chief executive of Scripps Networks Interactive.

According to the research firm SNL Kagan, distributors pay about 8 cents on average for Food Network and 13 cents for HGTV. Scripps was believed to be asking for about triple that amount, or roughly 25 cents for Food and 40 cents for HGTV.

Cablevision took a hard line in its own statement Friday, saying that it had “no expectation of carrying” Scripps’s programming again, “given the dramatic changes in their approach to working with distributors to reach television viewers.”

Scripps’s contracts with Time Warner Cable also expired on Dec. 31, but those two companies continued talking into the new year without an interruption in programming.

According to The Washington Post, About 3.1 million subscribers lost access to HGTV and the Food Network on Friday after Scripps pulled its programming while negotiating a new contract with the cable provider.

In a statement late Sunday, Scripps said more than six months of negotiations haven't been able to produce an agreement, and its recent requests for sit-down discussions have been rejected. Scripps said Cablevision currently pays about 25 cents per subscriber for the combined networks, and described the fee increase it's asking for as "fair market rate" for popular networks.

"We regret deeply the interruption of service for Cablevision customers who rely on us for quality programming," the company said.

A version of this article appeared in print on January 2, 2010, on page B1 of the New York edition.

Get Home Delivery to read a hard copy of The New York Times every day.

138 Journalists Died On The Job In 2009

In the past year, 138 journalists have died in the course of their work, the majority were murdered or killed.

The International Federation of Journalists reports that 113 were murdered or killed in other violence, while the remaining 24 died in work-related accidents.

The most recent journalist to be killed was Canadian Michelle Lang, who died in a roadside bomb blast in Afghanistan on Tuesday.

The report identifies the Philippines, Mexico and Somalia as the most dangerous countries for journalists to work in. Last month 31 journalists were killed in the Philippines after being abducted.

In Iraq, the worst country for fatalities among journalists over the past decade, five media workers were killed this year. The Federation argues that, in spite of a pledge by the UN Security Council in 2006, journalists are not given enough protection, especially in countries where armed conflicts are taking place.

The International Federation of Journalists (IFJ) today called for more action from governments and the United Nations to protect media.

"Last year's drop in the murder rate of journalists has been short lived," said Jim Boumelha, IFJ President. "The devastating massacre of 31 journalists and media staff in the Philippines in November and fresh violence against colleagues in Mexico and Somalia have made this a year of terrible bloodshed for media."The IFJ list of work related media killings is coordinated with the International News Safety Institute (INSI) and contains 137 journalists and media personnel who died during 2009 against 109 killings recorded in 2008. Of these, 24 were accidental deaths while journalists were at work.

The question is whether governments are listening or ready to take their responsibilities seriously," said Aidan White, IFJ General Secretary. "There is no room for complacency and indifference. The crisis facing media threatens innocent lives and democracy itself."

As of 31 December, the IFJ recorded the following information on killings of journalists and media staff in 2009:

Targeted killings: 113

Accidental deaths: 24

Overall killed : 137

The deadliest region, for the second year running, was Asia Pacific with 52 journalists and media personnel killed. The Philippines have the region's highest death toll, following the 23 November Maguindano province which claimed 31 lives of media victims.Other countries with high numbers of media fatalities are:

Mexico 13

Somalia 9

Pakistan 7

Russia 6

In 2008, Iraq, India and Mexico were the most dangerous countries in the world. Russia has this year broken into the top five most dangerous countries.

The IFJ is supporting a campaign against impunity in the country and has launched an online database on cases of journalists' murders in collaboration with two leading Russian monitors of abuses against journalists; the Glasnost Defence Foundation and the Centre for Journalism in Extreme Conditions.

The list of journalists and media staff killed in 2009 is available here

The full IFJ report on journalists and media staff killed in 2009 will be published mid January 2010.

This year's death toll of 138 compares with 109 last year and 175 in 2007. This is another sign of the dangerous world we live in. Let's hope for a better 2010.

For more information, please contact IFJ: http://www.ifj.org/en

Jim Boumelha, President: +44 1865723450

Aidan White, General Secretary: +32 478258669

Ernest Sagaga, Communications Officer: +32 2 235 22 07/+32 477 71 40 29

The IFJ represents over 600,000 journalists in 125 countries around the world. The International Federation of Journalists is the world's largest organisation of journalists. First established in 1926, it was relaunched in 1946 and again, in its present form, in 1952.

Application for Membership of IFJ

Broadcasters' Woes Could Spell Trouble for Free TV

By ANDREW VANACORE, AP Business Writer

Assailed by cable and the Web, broadcast TV looks to build a new business model

For more than 60 years, TV stations have broadcast news, sports and entertainment for free and made their money by showing commercials. That might not work much longer.

The business model is unraveling at ABC, CBS, NBC and Fox and the local stations that carry the networks' programming. Cable TV and the Web have fractured the audience for free TV and siphoned its ad dollars. The recession has squeezed advertising further, forcing broadcasters to accelerate their push for new revenue to pay for programming.

That will play out in living rooms across the country. The changes could mean higher cable or satellite TV bills, as the networks and local stations squeeze more fees from pay-TV providers such as Comcast and DirecTV for the right to show broadcast TV channels in their lineups. The networks might even ditch free broadcast signals in the next few years. Instead, they could operate as cable channels — a move that could spell the end of free TV as Americans have known it since the 1940s.

The future of free TV also could be altered as the biggest pay-TV provider, Comcast Corp., prepares to take control of NBC. Comcast has not signaled plans to end NBC's free broadcasts. But Jeff Zucker, who runs NBC and its sister cable channels such as CNBC and Bravo, told investors this month that "the cable model is just superior to the broadcast model."

The traditional broadcast model works like this: CBS, NBC, ABC and Fox distribute shows through a network of local stations. The networks own a few stations in big markets, but most are "affiliates," owned by separate companies.

"Good programing is expensive," Rupert Murdoch, whose News Corp. owns Fox, told a shareholder meeting this fall. "It can no longer be supported solely by advertising revenues."
Fox is pursuing its strategy in public, warning that its broadcasts — including college football bowl games — could go dark Friday for subscribers of Time Warner Cable, unless the pay-TV operator gives Fox higher fees. For its part, Time Warner Cable is asking customers whether it should "roll over" or "get tough" in negotiations.

Traditionally the networks paid affiliates to broadcast their shows, though those fees have dwindled to near nothing as local stations have seen their audience shrink. What hasn't changed is where the money mainly comes from: advertising.

Cable channels make most of their money by charging pay-TV providers a monthly fee per subscriber for their programing. On average, the pay-TV providers pay about 26 cents for each channel they carry, according to research firm SNL Kagan. A channel as highly rated as ESPN can get close to $4, while some, such as MTV2, go for just a few pennies.

With both advertising and fees, ESPN has seen its revenue grow to $6.3 billion this year from $1.8 billion a decade ago, according to SNL Kagan estimates. It has been able to bid for premium events that networks had traditionally aired, such as football games. Cable channels also have been able to fund high-quality shows, such as AMC's "Mad Men," rather than recycling movies and TV series.

That, plus a growing number of channels, has given cable a bigger share of the ad pie. In 1998, cable channels drew roughly $9.1 billion, or 24 percent of total TV ad spending, according to the Television Bureau of Advertising. By 2008, they were getting $21.6 billion, or 39 percent.

Having two revenue streams — advertising and fees from pay-TV providers — has insulated cable channels from the recession. In contrast, over-the-air stations have been forced to cut staff, and at least two broadcast groups sought bankruptcy protection this year.

Fox illustrates the trend: Its broadcast operations reported a 54 percent drop in operating income for the quarter that ended in September. Its cable channels, which include Fox News and FX, grew their operating income 41 percent.

Analyst Tom Love of Zenith Optimedia said he expects the big networks will end the year with a 9 percent drop in ad revenue, followed by an 8 percent drop in 2010 and zero growth in 2011.

A small chunk of the ad revenue is being recouped online, where the networks sell episodes for a few dollars each or run ads alongside shows on sites such as Hulu. Media economist Jack Myers projects online video advertising will grow into a $2 billion business by 2012, from just $350 million to $400 million this year.

But that is not significant enough to make up for the lost ad revenue on the airwaves.

Advertisers spent $34 billion on broadcast commercials in 2008, down by $2.4 billion from two years earlier, according to the Television Bureau of Advertising.

So rather than wait for the Internet to become a bigger source of income, the networks and local stations are mimicking what cable channels do: They're charging pay-TV companies a monthly fee per subscriber to carry their programming.

Since 1994, the Federal Communications Commission has let networks and their affiliates seek payments for including their programming in the pay-TV lineup. Not everyone demanded payments at first. Instead they relied on the broader audience that cable and satellite gave them to increase what they could charge advertisers.

The big networks also were content to let their broadcast stations essentially be subsidized by higher fees for the cable channels that fell under the same corporate umbrella. A pay-TV company negotiating with the Walt Disney Co., which owns ABC, is likely paying more for the ABC Family channel than it otherwise would, with the extra assumed to help Disney cover its costs for the ABC network broadcasts.

But over time — such contracts generally run about three years — more networks began demanding payments for the stations they own. And affiliates already receiving the fees have bargained for more money.

Some talks have been tense. In 2007, Sinclair Broadcast Group, which operates 32 network-affiliated stations around the country, pulled its signals for nearly a month from Mediacom Communications Corp., which provides cable TV to about 1.3 million subscribers, mainly in small cities.

The American Cable Association says its members — mainly small cable TV providers — have seen their costs for carrying local TV stations more than triple over the past three years. The group's head, Matt Polka, says those fees have gone "straight to consumers' pocketbooks" in the form of higher cable bills.

Gannett Co., for instance, which operates 23 stations, has taken in $56 million in fees from pay-TV operators this year after negotiating a new batch of agreements, up from $18 million in 2008. Dave Lougee, president of Gannett's broadcast arm, defends the fees, saying "broadcasters were late to the game in really starting to go after the fair market value of their signals."

Analysts estimate CBS managed to get as much as 50 cents per subscriber in its most recent talks with pay-TV providers that carry CBS-owned stations. CBS Corp. chief Leslie Moonves said such fees should add "hundreds of millions of dollars to revenues annually."

That could be just the beginning. CBS and Fox are also asking for a portion of the fees that their affiliates get, arguing that the networks' shows are what give local stations the leverage to ask for fees.

Over time, the networks might be able to get even more money by abandoning the affiliate structure and undoing a key element of free TV.

Here's why: Pay-TV providers are paying the networks only for the stations the networks own. That amounts to a little less than a third of the TV audience, which means local affiliates recoup two-thirds of the fees. If a network operated purely as a cable channel and cut the affiliates out, the network could get the fees for the entire pay-TV audience.

If forced to go independent, affiliates would have to air their own programming, including local news and syndicated shows.

Fitch Ratings analyst Jamie Rizzo predicts that at least one of the four broadcast networks "could explore" becoming a cable channel as early as 2011.

Any shift would take years, as the networks untangle complicated affiliate contracts. At an analyst conference last year, CBS's Moonves called the idea an "a very interesting proposition." But he added that it "would really change the universe that we're in."

Fewer Actors, Other Trends You'll See in 2010

By SUZANNE VRANICA

The Wall Street Journal

The economy may continue its gradual recovery next year, but advertising is expected to show the influence of the recession through 2010.

Don't expect a letup in the rough-and-tumble sales pitches that hit the airwaves, Web and magazines this year, as advertisers like Campbell Soup and Verizon Wireless, owned by Verizon Communications and Vodafone, took direct aim at their competitors. Advertising executives expect such barbed comparison ads to continue.

Other companies, meanwhile, will be showing their softer sides. In the bleak aftermath of the recession, many marketers think consumers will respond to brands they perceive as giving back to the community.

PepsiCo, for example, recently decided to bypass Super Bowl advertising in favor of an online campaign that doles out funds for charitable purposes.

"There are lots of issues and problems in the world, and we are seeing a rise in corporations doing good, because government can only go so far. There are lots of issues and problems in the world, and it's cool to do good," says Rob Schwartz, chief creative officer of Omnicom Group's TBWA/Chiat/Day Los Angeles. Industry executives also are convinced it will be effective.

Another of next year's prominent themes will be a throwback to the early days of television. Ad executives say they expect an increase in live TV commercials, which made a comeback in 2009.

In the spots, talk-show hosts like Jimmy Kimmel perform skits featuring the advertiser's product. "We are looking at ways to keep the consumer engaged, and live TV ads are helping us do that," says Richard Gagnon, chief media officer at Interpublic Group's DraftFCB.

Madison Avenue executives say they will rely on these and other strategies, such as using fewer actors and more animated characters, and spots that share the screen with TV programs to thwart ad-skipping. Here's what they say you'll be seeing in 2010.

Rising Stars

Social-network personalities will make their way to mass-media stardom next year, says Christian Haas, creative director of Omnicom's Goodby Silverstein & Partners. Mr. Haas says consumers will see the ubiquitous press quotes that pepper movie and car ads share screen time with the average Joe's tweets.

Divided Attention

TV networks are increasingly looking for ways to stop consumers from ad-zapping, says Mr. Gagnon of DraftFCB. He says TV viewers will see more split screens that give them a glimpse of what is going on behind the scenes of a show while a commercial runs on the other side of the split.

DraftFCB is looking at doing a test of the ad format for one of its clients during a prime-time talk show. Consumers would see the talk-show host getting ready for his next segment on one side of the screen while the ad plays on the other side. Expect to see more of these ads during live programs and sporting events, Mr. Gagnon says.

Mobile, for Real This Time

Mobile advertising has long been promised and largely underdelivered. David Lubars, chief creative officer of Omnicom's BBDO, says he thinks a breakthrough is right around the corner. It'll have something to do with longer-form entertainment, he says.

Daryl Lee, president of global communications planning at Interpublic's Universal McCann, predicts mobile marketing will find a purpose: helping consumers find what they are looking for at local stores, probably in the form of apps, gadgets and widgets, not regular ads.

Tiger Fallout

As the fallout from Tiger Woods's alleged infidelities continues, the episode will have a drastic effect on sports marketing, says Tony Ponturo, former head of global sports marketing for Anheuser-Busch InBev. Consumers will see fewer big-name celebrities and athletes pitching for brands. Mr. Ponturo says marketers will look more to sponsor teams, leagues and events, rather than individuals, an approach with fewer risks.

Getting to Know You

Consumers will give their personal information in return for getting the ads they want to see, predicts Tracy Scheppach, innovations director at Publicis Groupe's Starcom MediaVest Group. "I just see the stuff I have opted to receive because I am a mom—that's advertising," she adds.

Cheaper Pitchmen: Employees

Employees are well-versed in the products they represent, and their enthusiasm can enhance a brand exponentially on the Web, says Marian Salzman, a trend spotter for Havas's Euro RSCG Worldwide. Best Buy has been ahead of this curve, Ms. Salzman says, with employees, called Blue Shirts, who pitch for Best Buy in TV ads and on Twitter, Ms. Salzman says.

Lux 2.0

Luxury, one of the last industries to embrace the Web, will leapfrog other categories in digital marketing, says Mr. Lee of Universal McCann, "as we watch the rapid rise of the luxury geek."

Avatar Envy

Thanks to the new sophistication in animation, "We are going to see more animation and virtual talent in ads. It's cheaper than hiring actors," and it avoids the risk of having your brand associated with a celebrity, says Mr. Gagnon of DraftFCB.

Watch One, Get One Free

Paying for content is the foundation of the ad business. But as consumers tune out ad messages, companies that offer tangible benefits will most likely win their attention, says Mr. Haas of Goodby. Sprint Nextel started offering free Wi-Fi in the airport; Google is paying for it on the plane. "Anyone interested in comping my cable modem at home?" Mr. Haas says.

Less Glitz

More ads will be made on the cheap, as advertisers continue to cut costs and seek a way to connect with digitally savvy consumers who see the world through their iPhone, says Mr. Schwartz of TBWA.

Write to Suzanne Vranica at suzanne.vranica@wsj.com

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Labor's Messy Health Care Bargain

By Harold Meyerson
The Washington Post

The Net roots is up in arms about the Senate's version of health-care reform, with many rooters demanding it be voted down. The liberal establishmentarians lament the compromises they were compelled to accept but support the bill's passage. In between the two, indignant and stuck, is organized labor.

"There's an excise tax on policies, but there's no public option to hold down the cost of those policies," says Leo Gerard, president of the United Steelworkers. "There's no Medicare buy-in, no pay-or-play mandate for employers. There's no Canadian reimportation to hold down drug costs, on the grounds of 'safety.' No one gets sick from Canadian reimported drugs," adds Gerard, who is Canadian. "I know a guy who got sick from a Chinese-made ingredient in an American drug, but there's no restriction on Chinese drug imports."

Gerard is hardly alone in his criticisms. Labor believes, rightly, that the cost controls in the Senate bill come chiefly from insurance policy holders (among them, labor's members), rather than from insurance and drug companies. Both the AFL-CIO and the Service Employees International Union have condemned these provisions, while hailing the bill's epochal creation of affordable health insurance for 30 million Americans. They're careful, too, to exempt President Obama from their criticisms.

"I'm not blaming the president," says Gerard. "He wants to believe people will do the right thing."

The unions have few illusions that the public option will be restored in the House-Senate conference committee, but they are working to promote the chief funding mechanism in the House bill (a tax hike on individuals with incomes over $500,000 and couples with incomes over $1 million) over that in the Senate bill (a tax that, to start, will fall on health insurance policies that cost more than $23,000 for a family of four).

With medical costs unchecked by a public option and drug reimportation, they fear that the value of their members' policies will rise above the threshold by the middle of the next decade.

There's a political problem as well. During the fall of 2008, the unions spent millions persuading older working-class whites to vote their pocketbooks instead of their prejudices in such key swing states as Pennsylvania and Ohio.

Just about the only issue that moved these voters from John McCain's column to Barack Obama's, they discovered, was that McCain supported taxing their members' health insurance and Obama didn't. "We negotiate and fight hard for our health-care benefits," said one widely distributed piece of AFL-CIO literature. "Now, Republican John McCain wants to tax them."

"This was our mantra," says Gerard. "Obama was polling better with our active members than with our retirees, which is very unusual, until we focused on McCain's plan to tax benefits. Our retirees are in expensive plans; that kind of tax would be devastating to them."

Politically, in fact, the tax could set in motion the kind of dynamic that undermined many Great Society anti-poverty programs: taxing the working class to provide benefits to the poor (or, in this case, the uninsured). Richard Nixon and Ronald Reagan smashed the Democrats' New Deal coalition by fanning the racial and class tensions endemic to such programs. Does anyone believe that today's Republicans will think better of mounting such attacks?

In theory, the House-Senate conference committee should be able to split the difference on funding by raising the Senate's threshold on taxing insurance policies and combining it with a scaled-back version of the House's millionaire tax. If the conference does that, raises the subsidies for people buying policies on the exchanges and extends Medicaid to more poor families, liberals and labor will likely have gotten all they can plausibly hope for, given the constraints that the Nelsons, Liebermans and Republicans have imposed on the bill.

Labor is boiling mad about those constraints, but unlike some of the Net-rooters, they can't and won't call down curses on the Senate Democrats -- yet. "We've played an inside game," says one of Gerard's fellow union presidents. "We've delivered our criticisms privately." Labor's leaders still hope a scaled-back version of the Employee Free Choice Act (EFCA) -- the bill that would restore unions' ability to organize private-sector workers -- will pass the Senate next year.

They've seen the White House and congressional Democrats move their way on jobs legislation, and they welcomed last week's unveiling of a $5 billion tax credit to bolster green manufacturing, a long-overdue step toward rebooting manufacturing in America.

But it will take more job creation and the enactment of EFCA to motivate unions to go all out in the 2010 elections. Anything short of that, and their anger will take a toll on the Democrats' electoral prospects.

meyersonh@washpost.com

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Health Interests Spend $600 Million to Sway Congress

by Jonathan D. Salant and Alex Nussbaum
http://news.yahoo.com/s/bloomberg/20091223/pl_bloomberg/aflbcmedobbk

(Bloomberg) -- More than $600 million has been spent so far this year trying to influence U.S. lawmakers working to overhaul the health-care system, reports show.

The health industry spent $396 million through Sept. 30, more than any other industry and up 9 percent over the same period a year ago, according to the Center for Responsive Politics, a Washington-based research group.

Those numbers don’t include spending on lobbying by insurers such as the Blue Cross and Blue Shield Association and its member companies, which spent $16.7 million in the first nine months of 2009, compared with $16.2 million in all of 2008.

“The health-care industry has a full-court press on members of Congress,” said Representative Dennis Kucinich, an Ohio Democrat.

Another $200 million has been spent on television advertising for and against overhauling health care, according to TNS Media Intelligence/Campaign Media Analysis Group, an Arlington, Virginia-based company that tracks political advertising.

The U.S. House passed health-care legislation last month. The Senate has overcome procedural hurdles to pave the way for approval of its version by Dec. 24.

Working With Lawmakers

“The Blue Cross and Blue Shield companies represent 100 million people across the country in every zip code and have 80 years of experience in health care,” said Brett Lieberman, a spokesman for the Blue Cross and Blue Shield Association in Washington. “We’ve been working with members of Congress sharing that experience.”

The Senate health legislation exempts some nonprofit health plans from a $70 billion tax on the insurance industry, including some Blue Cross plans in Alabama, Michigan and Pennsylvania.
Health-industry shares have risen 18 percent this year, as measured by the Standard & Poor’s 500 Health-Care Index. Tenet Healthcare Corp., the Dallas-based hospital chain, led the index with an almost fivefold gain, followed by Intuitive Surgical Inc. of Sunnyvale, California, a maker of robotic surgical systems, which has more than doubled.

The S&P index of six managed-care insurers has risen 34 percent this year. Cigna Corp. of Philadelphia, up 120 percent, and Coventry Health Care Inc. of Bethesda, Maryland, up 69 percent, have led the advance. The index has jumped 12 percent since Dec. 9, when Senate Democrats dropped a proposal for a government-run plan to compete with private insurers.

Drugmaker Gains

Drug companies have gained 16 percent this year, as measured by the by S&P Pharmaceutical Index. New York-based Pfizer Inc., the world’s largest drugmaker, rose 5.5 percent.

The Senate on Dec. 15 rejected an amendment to allow imports of cheaper drugs from Canada, a provision opposed by the pharmaceutical industry. Drugmakers earlier agreed to contribute $80 billion over 10 years in return for blocking other profit- endangering proposals.

Pfizer’s trade group, the Pharmaceutical Research and Manufacturers Association, spent $19.9 million through September. That’s the third-highest amount behind the U.S. Chamber of Commerce and Irving, Texas-based Exxon Mobil Corp., and almost as much as the $20.2 million the group spent in 2008.

Lobbyists

There are 3,300 lobbyists registered to lobby on health care, Senate records show, six for each of the 535 members of the House and Senate. More than 1,400 of those lobbying on health care formerly worked for Congress, the White House or federal agencies, including 55 former lawmakers.

“This is the way the political system works,” said Representative Patrick Kennedy, a Rhode Island Democrat. “People curry favor in all kinds of different ways.”

Many of those lobbyists visited the White House to meet with President Barack Obama and top administration officials, according to visitor logs. Health-care visitors included Karen Ignagni, president of America’s Health Insurance Plans, the trade group for private insurers; Phrma President Billy Tauzin, a former U.S. representative; and Richard Kirsch, national campaign manager of Health Care for America Now, a coalition of labor and advocacy groups such as the AFL-CIO.

To contact the reporters on this story: Jonathan D. Salant in Washington at jsalant@bloomberg.net ; Alex Nussbaum in New York anussbaum1@bloomberg.net .

Analyst Lowers TV Revenue Expectations

BIA/Kelsey VP Mark Fratrik has knocked another billion off his final forecast for 2009 TV station revenues, now put at $15.6 billion. He sees things getting a little better going forward, but only a little.That $15.6 billion forecast for over-the-air revenues is down 22.4% from $2008.

That includes $518 million in TV station revenues from the Internet, up 12% from $463 million last year. Back in July the analyst had been looking for a drop of 17.3%.The picture looks a little better for 2010. Fratrik now predicts that TV station revenues will rise 3% to $16.1 billion, including a $130 million increase in Internet revenues.

"While television's numbers are tapering down due to audience erosion from other media delivery options, we continue to see that local TV remains a valuable way to reach relatively larger audiences, critical for mass communications in political campaigns. Additionally, online revenues are expected to grow as stations get more sophisticated in the way they sell to advertisers and integrate their mobile and Internet offerings with their broadcasting operations," Fratrik said as he released his updated forecast.

RBR-TVBR is great! Add to favorites

By SAM SCHECHNER

The Wall Street Journal

Comcast Corp. agreed to pay Chief Operating Officer Steve Burke signing bonuses of $18 million in cash and stock, as part of a five-year contract extension following Comcast's successful conquest of NBC Universal.

Mr. Burke's new contract was disclosed Tuesday in a securities filing.

Mr. Burke will oversee the integration of NBC Universal into Comcast. Comcast agreed this month to buy control of the television and movie company from General Electric Co. for about $13.75 billion in cash and assets. The deal now faces as much as a year of review in Washington.
Michael Angelakis, Comcast's chief financial officer, also signed a contract extension, the filing said. As part of his agreement, extending three years, Mr. Angelakis will receive signing bonuses of $9 million in cash and stock.

Mr. Burke's signing bonuses comprise $6 million in cash and $12 million in restricted stock, with half of each granted at signing and the remainder when the NBC Universal deal closes, or by June 30 at latest. Mr. Angelakis's signing bonuses are structured similarly. Neither man's new contract increases his base salary or normal cash bonus opportunity.

A Comcast spokeswoman said the company entered the new agreements "with Steve and Michael because they are the best in the business, and their roles in leading the integration of NBC Universal are critically important."

Printed in The Wall Street Journal, page B4 December 23, 2009

Sam Zell Must Face Tribune Employee Pension Plan Suit

By Andrew M. Harris
http://www.bloomberg.com/

Dec. 18 (Bloomberg) -- Sam Zell, the real estate investor who took the Chicago-based Tribune Co. private in an $8.3 billion stock buyback two years ago, must face an employee lawsuit claiming he knowingly violated federal pension laws.

U.S. District Judge Rebecca Pallmeyer in Chicago rejected Zell’s request to dismiss the suit filed last year. The employees accuse Zell of working with board members and others who allegedly breached their fiduciary duty to the workers.

The judge, in a ruling posted yesterday on the court’s Web site, said that Zell helped engineer the transaction that left Tribune with almost $13 billion in debt even if he wasn’t responsible to the Employee Stock Ownership Plan that privatized the newspaper and broadcasting company.

The company, owner of the Chicago Tribune and Los Angeles Times newspapers, filed for Chapter 11 bankruptcy protection last year. The employee stock ownership plan that acquired the shares in the buyback is a federally protected pension plan.

As many as 10,000 workers may have lost money as a result of how the shareholder buyout was executed, said Daniel Feinberg, an attorney for the employees in Oakland, California. While only six workers are named as plaintiffs in the suit, he said he will seek class-action certification to sue on behalf of other employees.

“This deal was misguided from the very beginning,” Feinberg said today in a phone interview. “It was obvious from the start that this deal had a huge risk of insolvency because of the amount of debt.”

Pallmeyer dismissed claims against several Tribune board members, ruling they had delegated their fiduciary duty to Greatbanc Trust Co. The judge said in her ruling that Greatbanc, the trustee for the employee plan, must face the lawsuit.

Terry Holt, a spokeswoman for Zell, declined to comment.

Two lawyers for the Tribune and other defendants, David Bradford and Craig Martin, were said by their office to be travelling today and didn’t immediately respond to e-mail messages seeking comment.

The case is Neil v. Zell, 08cv6833, U.S. District Court, Northern District of Illinois (Chicago).

Sam Zell Sued By Tribune Writers
By Bob Norman

The lawsuit contends that, since the inception of the deal, it appears that Zell and his accessories have planned to enrich themselves, tax-free, by perverting laws passed by Congress intended to benefit rank and file American workers.

The employee-owners of Tribune Company had everything, including their retirement plans, at great risk and little to gain in this deal, while Zell had everything to gain and little at risk.

Among the deal's outrages outlined in the complaint: Zell set up a mechanism to buy 40% of the company – valued at more than $8 billion at the time the ESOP took ownership – for as little as $500 million. It’s a classic grift, played out under the cover of legal technicalities. The real losers in this deal, however, are Americans who rely on news and information collected and disseminated by the respected Tribune news organizations.

In the 1970s and later in the 1980s when Senators Bob Dole (R-Kansas), Russell Long (D-Louisiana) and others in Congress spearheaded efforts to promote ESOPs with generous tax benefits, the intent was to empower employees eager to own and manage the companies where they work.

When it comes to Tribune Company’s ESOP, nothing could be further from the truth.

Employees were never asked if they wanted to own Tribune Company.

They had no opportunity to question the wisdom of saddling a media company with $13 billion in debt at a time when the industry faces serious challenges.

Even though they are nominally the owners, they have no voice on the company’s board and no say in its management.

When Zell hung “You own this place now” banners at Tribune newspaper and TV stations across the country, employees could not know the high price they would pay for this “privilege.”

According to the complaint, Zell de-funded employees retirement packages, raided the employee pension fund for more than $400 million, and eliminated more than a thousand Tribune Co. jobs.

Meanwhile, Zell and his band of publishing rookies were wrecking the company’s marquee properties – including the Los Angeles Times, the Baltimore Sun, and the Chicago Tribune – alienating readers by launching aimless redesigns while dramatically cutting coverage. Seemingly ignorant of journalistic ethics, they, for instance, turned control of the Los Angeles Times Magazine over to the advertising staff, with no indication to the reader that this product is now a “pay-to-play” advertorial. All the while, revenues have continued to decline.

Despite a slowing economy, a precipitous drop in ad revenue in the real estate, classified, and automotive sectors along with the de-monetizing of content put on the web and the spiraling cost of newsprint – the Tribune Company continued to be profitable throughout this decade. Without the staggering debt load from the Zell deal, Tribune's newspapers and TV stations would be solidly profitable today – without eviscerating news gathering operations.

For more information contact:

Attorney for the Plaintiffs Plaintiffs’ spokesmen:
Joseph W. Cotchett, Dan Neil, and Philip L. Gregory
(818) 508-1000
Cotchett, Pitre & McCarthy
San Francisco Airport Office Center
840 Malcolm Road, Suite 200
Burlingame, CA 94010

AFL-CIO President Trumka Answers Questions From Members

Trumka Answers Your Questions, Lays Out Economic Vision
by Seth Michaels, Dec 16, 2009

In a great live Web discussion yesterday, AFL-CIO President Richard Trumka answered a wide range of questions on the nation’s economic crisis, setting out a vision for short-term job creation and long-term progress toward a fairer economy.

Trumka touched on trade, green jobs, the challenges facing young and older workers, unity in the labor movement and more in an hour-long conversation. More than 6,700 union members and activists took part by submitting and voting on more than 150 questions.

The AFL-CIO has offered a five-point plan to put people to work and turn around the economy. We can and must create jobs now and spur consumer demand, Trumka said in explaining the plan.

Our current economic crisis is just a symptom of larger long-term weakness and inequality in our economy, Trumka said, and good jobs are the solution:

Remember, wages have been stagnant for years, so people had to start borrowing…we got to the point where people just couldn’t borrow any more and the economy just sort of collapsed at that point…we reached the limit of that. Debt can’t continue to be the engine that fuels the economy.

When we talk about stimulating or rebuilding the economy, Trumka asks, we need to ask: “To what end?”

If we’re just rebuilding the old broken economy—with an under-regulated financial sector taking precedence over the real economy—then we haven’t really gotten anywhere. We need an economy where productivity is rewarded and prosperity is fairly shared.

In particular, Trumka says that to ensure the economy is really working in the long term, we need to give workers the ability to bargain for a fair share. The freedom to bargain means we won’t just create jobs, we’ll create good jobs. That means passing the Employee Free Choice Act and giving workers the freedom to form a union—and it means training more organizers to help workers across the country form a union and get a fair contract. That will give people the wages and the economic security they need to support the economy, provide for their families and get engaged in their communities.

You can watch more of this great conversation here.

More questions answered by AFL-CIO President Trumka here at:

http://www.youtube.com/user/AFLCIONow#p/u