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Wednesday, October 11, 2006

Local News Is Not Chump Change!


While major network news continues with a slide in viewers, local stations seem to have lost less viewers and increased profits.

In a 2004 report by the State Of The News Media, it states that “local news has been enormously profitable.” According to the survey the report was compiled from…local news accounts for 46% of total station revenue. Let’s say that again because it feels so good. Local news advertising revenue makes up 46% of the average total station revenue. (No wonder that local news is up from the standard hour every evening up to 2 hours) In fact, less than 10% of the stations reported that their news operations lost money.

The major question the report seems to ask “is whether the industry might be wiser if it moved in the direction of slightly lower profit margins—still usually in excess of 40% ---in order to reinvest in stronger newsgathering and experiment in new programming, as a way of attracting a younger audience.” (mmmm ... Where have we heard that before?)

So why not?

Again, according to the report, station management is playing it safe. Local news plays such a crucial role in the station's revenue that they are fearful of upsetting the golden apple cart. (Imagine that!)

So now we know why stations would be reluctant to change let alone jettison local news. “It’s the dollar stupid.” First place or last place, news still brings in the money. In any other industry when you have a leader like this, you try to protect that investment by investing more. (Ask Sumner Redstone)
Indeed many news operations are currently taking the plunge in to HD newsgathering. Most Cleveland and Pittsburgh stations have or are in the process of that conversion.

Now don’t get ahead of me here. I am not advocating that the local stations move toward local HD news. That will happen with time… a very long time. But what I am advocating is that they invest more not less in their news operation. As has been shown, it can go right to the bottom line.

I have to admit; I am a news junkie and have been since the early days of WJET radio. Local news and the “new” media were made for each other and stations need to project themselves in the new technology more than just a website. “There’s revenue in them micro bits.” All that is needed is imagination which seems to be in local short supply.

News Directors should be given more…not less resources. Local television can be exciting again. If it continues the way it currently is, it will go the way of local radio, bland and lacking local definition. (There’s that word “definition” again.)

According to the same 2004 study, local television has to wake-up and respond or they will lose that valuable-- profitable audience. “Commercial and academic surveys suggest that at least a portion of the viewers who stopped watching local television news have done so because they find it repetitive, formulaic, sensationalized or insipid.” (They must have surveyed Mark Guy Findlay) “Brand loyalty is weakening and more viewers, research suggests, are likely sampling stations and churn through them.”

Perhaps one of the closing paragraphs of the report is probably the most revealing.

“The question of local television is which way it turns. The biggest threat it faces now is the paradox of an undernourished product that is in oversupply…In trying to differentiate one product from another, stations have tended to emphasis branding instead of content.”

In my opinion, this report has Erie clearly in its sites. I am convinced that local news directors probably know the message…I am not so sure their superiors have the same perspective until they take their nose out of their cash registers and find out far to late that there is a hole in the bottom of the boat.

Bullwinkle…. Start Bailing.”


"Congress passed a law on February 1, 2006, setting a final deadline for the DTV transition of February 17, 2009. Most television stations will continue broadcasting both analog and digital programming until February 17, 2009, when all analog broadcasting will stop.." FCC http://www.dtv.gov/


37 comments:

Anonymous said...

I suppose I could make thousands of dollars if I positioned this next post as a consultancy strategy rather than the ramblings of a frustrated former newsie (I don't mean Times Newsies either)
but here goes...
I strongly believe that the first station to adopt this approach to news will begin to build younger demos and tap that already growing market of cyber news folks in Erie.
Newscasts should promote on-line viewer opinion polls on certain issues and stories in the first segment of news and then use a bump element later to keep the audience. At the end of the newscast, share a few e-mail comments full screen.
This would give viewers some ownership of the news product. The only "snafu" is young producers would have to master the art of backtiming so that the element at the end could play in its entirety.
(that would mean keeping the weather winkies to their alloted two minutes and no more)
On election night, how about an in-studio audience of varied ages and party affiliations with a moderator to discuss the issues and the election results. This, coupled with "Live" coverage from various headquarters and the above-mentioned internet element would be better than the same old political hacks carrying the coverage. For the love of all that is electronic, please get innovative with the content. I realize that there is just so much you can do with the technology in this town, but it doesn't cost that much more to get creative.

Jenson said...

*Raises hand and volunteers self to assist stations in media convergence.

It makes complete sense to me that network news ratings are going down. National news is covered so well on the Internet that I suspect many former viewers are getting their news online like I do. It seems like the networks are embracing convergence (but are Blogs from anchors really the way to do it?) more than local media has.

Speaking for some of those in my demographic (I’m 25), my lifestyle is often too busy to catch the local news (let alone the national). I subscribe to an RSS feed and get updated in almost real time with national news. I can’t say the same thing about my local news. I would love to be able to subscribe to in depth local news coverage via RSS (hello local stations, we know you read this!)

Stories posted on almost all of the local sites are old and contain basic information at best (Sometimes its just text taken from the teleprompter script). We desperately need better local information on the Internet in my opinion. Imbed some ads on each story, generate some revenue, and embrace the Internet as a complimentary tool.

I think the last commenter had some good ideas.

Anonymous said...

I do loike that election night idea. Right now, when I see Dr Kozak, I switch the channel.

Anonymous said...

My Mom has made many a comment that the older viewers (like her) don't haven't computers and can't access things online. Even though what she says is true, even though she's in a minority, and even though I've offered to set her up with laptop and internet access, she refuses my offer. Keep in mind, she's still very active for her age. So, for some older viewers like her, more online appeal alienates them.

Personally speaking, my own business thrives thanks to the internet. Isn't an hour that goes by I'm not involved somehow utilizing my laptop or other PC.
I do love the idea about an in-studio sort of MTV style audience. 18-49 or higher and utilizing online viewer polls. Might actually be worth viewing on election night!

Anonymous said...

Original poster here: One way to
counter those older viewers would be to include an open phone line for viewer comments, that could be played back over video and a lower third banner later in the show. We did this years ago at TV35 and it actually worked. It was however, eventually dropped because it took actual manhours and someone to edit quickly before the end of the half hour show. Imagine that, someone had to actually hustle for a change!

Anonymous said...

My 84 year old father, residing in a nursing home in Highland Park, Illinois, checks his e-mail 3 or 4 times a week. Don't go parking those wheel chairs yet.

Anonymous said...

have a question about local news. I thought Erie TV Stations didn't report on suicides? Today at Noon on WSEE they reported on a prominent Erie Doctor (I WILL NOT repeat his name - I, unlike, WSEE have class) whose death was ruled a suicide. WSEE ran a 30 second voice-over along with the picture of this physician. When I called the station to "politely" ask why they would report this story the (surly, nasty) female on the other end hung up the phone! If we are going to change the Local news we should remember who makes local news possible....THE VIEWER!!!!! If you are going to answer the phone at a TV newsroom the least you can be is (expletive deleted) polite! From now on I shall watch Channel 24 for news.

Anonymous said...

They hung up on me also. I guess they are a tad sensitive these days. Whatever happened to good phone manners. I thought it was crass to do that type of report.

Anonymous said...

I know exactly who you talked to and she must still have vinegar running through her veins!
There used to be standards that everyone followed...
You never reported the Identity of the following:
-suicide victims
-rape victims
-suspects under the age of 18 (unless otherwise released by authorities)
-and you never, ever released a fatal accident victim's name until police had the chance to notify the family.

Unfortunately, all of these rules of common decency have fallen to the wayside in the neverending quest for ratings supremacy in Erie. Gee...supremacy and Erie? There you have it, today's oxymoron!!

Jack Tirak said...

This must have been the lone action of a young newsperson. I can't believe John C. would have approved that.

This is really bad news...news

Anonymous said...

Why not do more "fun" stories during the local news? How about a live in-studio cooking segment? I know it would cost money and all and probably would never get done. I just don't think there is enough local news to justify a 90-minute local newscast. I could be wrong but it seems to me that the stations need to have more fun with the news!

I could care less if there was a car chase in Los Angeles that wrecked a police car with no injuries. I can see that on CNN or MSNBC. The news used to do live in studio interviews - they still do this on JET but not the other "cookie cutter" stations in this town.

I was curious and did an experiment. I'm sure you realize that the 5:30am news on WICU is just a repeat of the 5am news? The same with 6:30am being a repeat of 6. I did not know this! I thought they actually did 2 live hours of news. I feel so cheated. Do the other stations tape or are they "live!"

Great Blog! Really enjoy your insights!

Anonymous said...

I called them also. Before the conversation was prematurely ended by the person on the other end, a woman, I was told that since this person was a public figure the story was relevant.

Looks like the makings of a stirred up hornet nest.

Anonymous said...

The decision to run the story on the doctor was made after prolonged discussion from many of us in the newsroom.
There are exceptions to every rule and the previous assertion that newsrooms NEVER run suicides is wrong (Bud Dwyer probably the most high profile).
Yes, a private citizen quietly ending his own life is not normally news, but we also have an obligation to weigh a number of factors, including the repeated calls we were receiving from patients and others requesting information.
The doctor was well known and well liked in the community.
He delivered my second daughter.
It was a tough call, but I agree with it.
Like it or not, a high profile person or a high profile incident can outweigh any "no suicide" rule among responsible newspeople.
It's easy to sit at a keyboard snuggled in a blanket of anonymity and bag off with your cartoon characterizations of TV news
people as shallow rating grabbers.
Walking the walk every day is another story.
Perhaps we just differ on what makes a "classy" person.
Scott Bremner
scott.bremner@35wsee.com

Anonymous said...

Vinegar in the veins...must be (Name deleted)

Jack Tirak said...

It will be interesting to see what the Times-News decides to do with this story. I appreciate Scott's comments but Bud Dwyer was an elected and he did it in full view of TV cameras and reporters. If he had done it in privacy of his own home...I am not sure if would have been reported the same way. He was a state official.

I have a feeling we are going to hear a lot more about this. I want to guard against any personal charactor attacks or profanity. I will post but will edit too.

Anonymous said...

I hope those at WSEE don't hide behind the first amendment. Let's just say I work where this individual was a partner. He was a fine human being. He was an outstanding physician and a good friend. Mr. Bremner and WSEE have upset every person in this office. There was NO REASON WHATSOEVER to post this story. You have taken a very tragic, PRIVATE matter and made it fodder for continued gossip and innuendo.

Hmmm, I have a hypothetical question about something that may have happened years ago. Why didn't a certain local station report on the "truth" on the "death" of an individual with an on-air affiliation with this station. Why is it OK to report on the suicide of a doctor but it is not ok to report on the "death" of a certain station's reporter?????

I tried to be discreet in my comments above and if edited out I understand. I just think that people who sit in judgement of what goes on TV should act all pious and high-and-mighty!

Believe me, we talk the talk and walk the walk everyday! I guess WSEE is going in a new "tabloid trash" direction with their newscasts?

Please do not insult our intelligence by saying that there was "prolonged" discussion in the newsroom.

This is a sad day for not only Erie but for humanity. I could care less if 5 or 50 or 500 people call a newsroom wanting answers that aren't any of their damn business! What of the Doctor's family? I guess their privacy doesn't matter?

I think we now know the difference between the definition of "class" and "cowardice?"

L.E.W.C.

Anonymous said...

Sad. Very Sad.

WSEE made a stupid, stupid decision. I guess there is nothing wrong with kicking someone when they are down?



(This is completely off point but did you notice WSEE aired the same episode of Jeopardy on Monday and Tuesday?)



Sad. Very Sad.

Jack Tirak said...

I did not edit L.E.W.C comments as he did not refer to a specific station or the person affiliated by name.

There is more emotion in this thread than I anticipated. Events have a way of doing that. Since I didn't see any of the 6pm newscasts, was the story repeated as it was at noon?

Jack Tirak said...

As of 7:18PM... The Times-News has not posted the above mentioned story on goerie.com

Anonymous said...

Jack,

Strangely enough the story was not repeated during the 6pm news. Perhaps being flooded by upset viewers (what little viewers WSEE has left) made "the newsroom" change its mind?

Anonymous said...

It is nice to see so many people actually care when a station screws up. I highly doubt WSEE will issue an on-air apology. As for the newspaper? Erie will get Digital before they write anything critical about WSEE. I knew the individual in question. He was a kind, gentle man. My deepest condolances to his family and to the staff (edited) May God bring peace to you at this most difficult hour.

Anonymous said...

on a somewhat less serious WSEE screw up note, they aired the same jeopardy episode twice this week.

http://2bobbo.wordpress.com/2006/10/11/wsee-airs-same-jeopardy-show-back-to-back/

When it rains it poors! (pun intended)

Anonymous said...

Sorry, not to be rude but could someone please tell me the name of the doctor? I don't live in the area anymore but have several good friends who are doctors there. I don't know why, but I got a sick feeling when I read this. Who was it? Thanks.

Jack Tirak said...

I am glad somebody still watches Jeopardy. Bum...Bum....Bum.

Anonymous said...

How could WSEE end up running the same episode of Jeopardy twice? I realize WICU runs things but aren't there safeguards against a screw-up of this magnitude?

This isn't WSEE's week, is it?

Jack Tirak said...

Sorry. I will not post the name of the person involved. That would just compound the damage that was done.

You'll just have to check the WSEE 11pm news or maybe their webstite. but I doubt it will be on.

I am sure an obituary will be in the Erie Paper.

Jack Tirak said...

Yes I think it is very possible to run the same episode twice by mistake. The shows are sent down the line a week at a time sometimes. If the station cues the wrong show up, that would be the result.

In other words, the program is no fed live via the network. The station has to record and play back.

It does happen...even in big markets.

Anonymous said...

While I think reporting on the apparent suicide of the Erie doctor was a good move for WSEE, I do see a major lack in the local TV stations defining who and what Erie is.

The news rooms are too short-staffed to do anything good.

And you've got a newspaper who, until it is sold or has competition, will always be bad.

The media in Erie don't care. It's apparent every day on the front page of the Times and during every newscast.

The people of Erie deserve better.

Anonymous said...

We need a new over-the-air digital/HDTV broadcasting that offers something different, not necessarily an affiliate. Why not skip the affiliate and provide entertainment and sports programming? Try airing an hour, 2 episodes, of popular syndicated programming in these blocks and stagger their airtimes at about five or ten or even fifteen minutes after the hour. Shake it up. Negotiate with the Image Sports Network or work with them to provide their abundant live and tape-delayed sports programming, pre-empting regular programming. This would be something that would interest me in watching this local station.

Anonymous said...

What is the "Image Sports Network" ?

The website really doesn't say much about it at all, except that it seems to cover some local & regional sports and fill time with the LPTV-oriented stuff from AmericaOne.

Who are the principals, etc. ?
Do they sell many adv spots, or is it mostly PSA, PIs, or whatever ?
What is the relationship with the cable TV companies ? Do people really watch this stuff ?

Jack Tirak said...

Well you got all I can find on Image Sports Network. It is a cable thing and my guess, and only a guess, is that it is sold by the cable companies. Since I don't have cable, I couldn't tell you what advertising, if any, it carries. Seems to be more Otters Hockey.

Anonymous said...

See www.imagesportnetwork.com...

Anonymous said...

Sorry about the previous comment. I forgot about the previous comment mentioning the website. On TWC Ch. 20, American One programming airs and interupted occur when live sports or tape-delayed programming airs, mainly high school football, Seawolves baseball, Lake Erie Speedway racing on Thursdays throughout the summer, and Otters hockey Saturdays & Tuesdays throughout the winter. A few regulars of the local area advertise on Image, mainly during live or tape-delayed programming for a small cost.

Jack Tirak said...

20.rogers...


Thanks for the info. Is all the production done by the cable unit?

Anonymous said...

It appears so. I'm not too sure how they conduct their operations.

Anonymous said...

Isn't Joey Stevens a partner in Image Sports along with Mitch Spear that worked at WJET-TV?

Anonymous said...

I believe Mitch Spear is involved according to their credits at the end of live broadcasts. Let me find the others...