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Huge Deal to Rescue Telemundo

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Huge Deal to Rescue Telemundo AT PRESS TIME Tauzin asks FCC to delay move WASffiNGTON-Rep. Billy Tauzin, R-La., last week asked the Federal Communications Commission to put its plans to move to a new building on hold until the deal had been thor­ oughly investigated. Rep. Tom Bliley, R-Va., also set a Dec. 2 deadline for Franklin Haney, a major investor in the new building, to cooperate with a House Commerce Committee probe into the deal. Congress has also asked the Congression­ al Accounting Office to look into the arrangement. Grossi's future at UPN uncertain Los ANGELES-Sources say UPN Senior Executive Vice President Len Grossi has been in discussions with the net­ work about his future role with the company. Some say a de­ parture might be in the works, but UPN wouldn't comment. Separately, sources say Mr. Grossi has reunited with former UPN President and CEO Lucie Salhany to form a company (See Second Front, Page 55) December 1,1997 I $2.50 I © 1997 Crain Communications Inc. Iwww.emonline.com Ratings Huge deal don't faze to rescue kids or parents Telemundo BY MICHAEL SCHNEIDER Sony, Liberty buy in STAFF REPORTER BY MIKE GALETTO Los ANGELES- Nine weeks af­ STAFF REPORTER ter three of the foUr major broad­ cast networks implemented the re­ A change worthy of EI Nino could be in line for vised content ratings system, it ap­ Telemundo Group, following last week's $700 mil­ pears to have had'very little effect lion acquisition of the Spanish-language broadcaster on kids viewing. by an investor group including Sony Pictures Enter­ According to information ob­ tainment and Liberty Media Corp. tained by ELECTRONIC MEDIA "It's going to need a complete make over. We're from Nielsen Media Research, for talking about a company that's lost a lot of market the most part kids have not share," said Jessica Reif Cohen, media analyst with stopped watching shows that now Merrill Lynch Global Securities. occasionally carry one or more of Tel has big plans Telemundo's share of the His­ the content labels (L for question­ for Telemundo. panic market over the last five able language, S for sexual situa­ Page 51 years has declined to less than 20 tions, D for racy dialogue and V for percent from almost 40 percent, violence). while competitor Univision Communications has But, just as significant, fewer grown to more than 80 percent. kids are watching as much net­ And the problems aren't just in programming. An­ work television of any kind these alysts also forecast a shake-up within Telemundo's days. sales department. In the third fiscal quarter, the net­ Big 4 network viewership among "Beverly Hills, 90210," with Jennie Garth, sometimes carries a work lost $3.4 million. (Continued on Page 50) V or S label, but its ratings in kids 2 to 11 are up from last year. Some will welcome change. Advertising executives have grumbled in the past that· Telemundo, even amid declining market share and operating losses, insisted on keeping its ad-time prices artificially high. NBC makes newall-night plan On one analyst's wish list: "completely new people that will come and make some changes." BY JON LAFAYETTE old episodes of "The Tonight Show With Jay Telemundo executives couldn't be reached for NEW YORK BUREAU CHIEF Leno," "Saturday Night Live" and some NBC soap comment by press time. In a press release, President operas. The new schedule could be in place as soon and Chief Executive Officer Roland Hernandez said They could call it "Must Stay Awake TV." as the beginning of next season. the company expects viewers, advertisers and Tele­ NBC West Coast President Don Ohlmeyer is The entertainment programming might replace mundo employees to "benefit greatly" from the ac­ working on a plan to schedule NBC-owned all or part of the overnight newscast, "NBC quisition. entertainment programming from 2 a.m. to 5 a.m., Nightside." Last week an investor group including Telemundo opening up a new daypart for the network. Mr. Ohlmeyer declined to discuss specifics of the Chairman Leon Black's Apollo Management LP, Sources said the programming would include (Continued on Page 50) (Continued on Page 51) IBX.B.LR TUUU'U'U"'U'''l~bJ6rT 1.90 tt02462,?lB.ltOlEII14.9l'A99 stS:l . GEO~6E6ERBIIER' . 2.l4S0LFiJ.IEIIRI) " AROKORE PA 19003-1.002. 0.4 '. """" 2 ELECTRONIC MEDIA December 1,1997 THIS WEEK IN EM A change worthy of El Nino could be an Olympian challenge at WCBS-TV, in line for Telemundo Group, following New York. (Page 6) last week's $700 million acquisition of the Spanish-language broadcaster. The reality genre resurfaces, as (Page 1) Also, TCI has plans for the His­ viewers will watch the darndest panic market that comes with the pro­ things. (Page 6) posed Telemundo deal. (Page 51) A look inside the ESPN Sports Zone NBC is working on a plan to sched­ newsroom on a busy game day. (Page ule entertainment programming in 18) overnight hours. (Page 1) Nielsen has a new system for Web MTV Networks will offer a package Michael Wolf talks about what's ahead site audience measurement. (Page 18) of seven commercial-free digital music for newly formed companies: Page t 4 video channels, called MTV Suite. The fonner business manager for (Page 3) sion is growing subscriber counts sub­ WXIX-TV, Cincinnati, has been indict­ stantially faster than the rest of the in­ ed on grand theft charges. (Page 53) The November sweeps are over and dustry. (Page 4) NBC, CBS and Fox are claiming victo­ Warner Bros. Domestic Television ry of one sort or another. (Page 3) Lifetime Entertainment will launch cleared four sitcoms for off-network spinoff channel Lifetime Movie Net­ launch in 1999. (Page 55) Could the days of sweeps months be work next September. (Page 4) numbered? (Page 3) Late-night is the hottest battleground Washington is firing up the legisla­ in syndication, with 1998 looking more "The X-Files" is a huge success in tive burner for a rewrite of the Satellite competitive than 1997. (Page 55) syndication. (Page 3) Home Viewer Act next year. (Page 4) DreamWorks Television is syndicat­ Time Warner Cable's Houston divi- Steve Friedman knows he's faCing ing "Spin City" with a twist. (Page 55) GOT A HOT NEWS TIP? CALL OUR HOTLINE ANYTIME: 1·800·541·4096 Rivera re-ups with CNBC Auctions may and gets on NBC, too speed licensing BY JIM McCONVILLE school for the mentally retarded in New Jersey. CABLE EDITOR But Mr. Rivera's respectability comes with a personal price tag. As part of the deal, Mr. Rivera TV, radio stations at stake NEW YORK-CNBC prime-time star Geraldo has to give up ins ll-year-old syndicated day­ Rivera wants to find out if he indeed can go time talk show, "The Geraldo Rivera Show," home again. which earned him an esthnated $5 million per BY DOUG HALONEN could spur settlements among Saying he wants to shed his tabloid image year. WASHINGTON BUREAU CHIEF the hundreds of applicants cur­ and return to his news roots, Mr. Rivera signed Under Mr. Rivera's new deal, he becomes a rently vying for radio and TV li­ a lucrative six-year contract worth about $40 member of NBC's news team, but won't guest WASHINGTON-If all goes as censes. million to stay with NBC's cable network CNBC host NBC's "Nightly News," as had been specu­ planned, the Federal Communi­ "Clearly the licenses will be and become a member of the NBC News team. lated by industry insiders. cations Commission will start awarded much more rapidly," NBC officials declined to discuss financial de­ Mr. Rivera will continue to host his nightly auctioning rights to new radio Ms. Ness said. tails qf Mr. Rivera's new contract, but industry interview show "Rivera Live" and develop and and TV stations late next year. To clear the way for the auc­ insiders said Mr. host a CNBC news program tentatively sched­ Under the status quo, the FCC tions, Congress included a pro­ Rivera's CNBC uled to start next June, in either a 7 p.m. or 7:30 has been using comparative vision in a wide-ranging mea­ contract will give p.m. (ET) thne slot. hearings to decide battles for sure to balance the federal bud­ him a base salary "It will be a traditional news program called the rights to broadcast licenses. get that was approved earlier of $4 million a something like the 'News With Geraldo Rivera' But some of the criteria that this year. year, double his or 'Geraldo and Company,'" Mr. Rivera said. the FCC has traditionally used Under the FCC plan unveiled current CNBC "It will be looser and less formaL I assume that to decide the contests has come last week, all but 20 of the 1,700 salary. With stock some of the 'Rivera Live' style will flap over and under attack in the courts. Crit­ radio and TV station applica­ options and other influence the show." ics also complain because com­ tions that were pending as of incentives, his pay To make room for Mr. Rivera's newscast, parative hearings have been July 1 could also go on the auc­ could reach $7 mil­ CNBC will have to move or drop one of its cur­ known to go on for years with­ tion block. lion per year, rent shows "Business Center" and "Great out resolution. During the FCC meeting, sev­ which means that Stuff," now on between 7 and 8 p.m.
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