11,1111111U IIBXBB8HL *****NN****)E*************3-DIGIT Mr/061714841p 078 w 20020527 edl ep 2 S3DS a_ LAURA JONES, ASSISTANT MGR < WALDENBOOKS cl- 42 MOUNT PLEASANTAVE (-) WHARTON NJ 07885-2120 127 w z 1111 mpour Vol. 12 No. 5 THE NEWS MAGAZINE OF THE MEDIA February 4, 2002 $3.95 MARKET INDICATORS Tale of Two MTV Networks NATIONAL TV: TIGHT Second-quarter prime - After a makeover, TNN's audience gets younger, but VH1's ratings fallPAGE 4 time scatter is filling, and advertisers are planning to make deci- NETWORK TV sions on third-quarter cancellation options shortly. Packaged goods Pre -Upfront and pharmaceutical advertisers are active. Party Is Over NET CABLE: FLAT All 6 nets to cut March Scatter inventory is moving, with a lot of previews for buyers movie -studio money driving business. PAGE 6 Networks report that e deals are still largely TV STATIONS being executed at the last minute and mostly NBC Mills Get at buyer -friendly prices. SPOT TV: HOLDING Olympics Hoursmall With automotive contin- uing to offer incentives, Net takes 4-5 p.m. to, stations are reporting stronger -than -expected live Games coverage spot sales from car makers. Inventory is PAGE 6 tightening in top -10 cable markets. Advertisers RESEARCH scramble for remaining local Olympics spots. Nielsen Faces RADIO: MIXED Automotive, telecom network! and beverages are the Boston Battle most active categories. Stations resisting people advertisers TV tune -ins, normally robust in February, are meters, fee increase off. In general, invento- ry remains both avail- PAGE 8 need able and negotiable. Mediaweek Magazine MAGAZINES: MOVING Monitor PAGE 33 to know Airline advertising is returning to the pages BY MEGAN LARSON PAGE 20 of many news and busi- ness titles. Fashion spending also seems to be making a comeback for second quarter. 0 018993'1II **** "...THE RARE EXAMPLEOF GREAT FOOD TELEVISION." 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Jones FEB 0 4 2002 Hispanic Broadcasting Partners With Katz assignment consolidates planning and buying for the Sony Hispanic Broadcasting Corp., the largest radio group targeting Electronics, Sony Pictures Entertainment, Sony Music Enter- Hispanic listeners, is jumping on the cross -platform bandwag- tainment and Sony of Canada divisions. Universal McCann, on through an unusual partnership with Katz Media, its long- which handles the Sony Pictures Entertainment Media time rep firm. The partnership, called HBCsi (HBC sales inte- account, will oversee buying for TV, radio, newspapers, maga- gration), consolidates all of HBC's national media offerings, zines, outdoor and interactive. The deal did not include broad- including HBC Radio Network, spot advertising on 54 radio cast media buying for Sony PlayStation, which remains at stations, five channels on XM Satellite Radio, the Netmio OMD, and print buying, which stays at TBWA/Chiat/Day. Internet portal and local -event sponsorships and promotions. Those agencies, along with Mediaedge:CIA and Arnell Group, Katz is a division of Clear Channel Communications, which had made pitches for the entire account. also owns 29 percent of HBC. Heading up the new organiza- tion as executive vp and director of sales is Katz veteran Carl Membership in Decline, ALTV Shuts Down Butram. The revenue -sharing pact is similar to Clear Channel The Association of Local Television Stations board of direc- Radio Sales, the cross -platform division Katz recently created tors voted last week to close the organization's doors after a to leverage advertising across its radio, outdoor, dramatic drop in membership, according to sta- TV and entertainment properties. "We've never tion executives. An announcement is expected really had multiplatform marketing for Hispan- this week. Many of the stations that were previ- ics," said Victor Ornales, president/CEO of Inside ously part of the ALTV have been purchased by Ornales ad agency in Dallas. -Katy Bachman larger media groups, which chose not to renew their membership in the advocacy association Philip Morris Pulls More Mag Ads (Chris Craft's 10 TV stations, acquired by News Philip Morris USA, one of the country's top Corp., pulled out last year). tobacco advertisers, will be cutting back further on its spending in magazines this year. The Addenda: Ron Galotti, most recently presi- company said last week that it will reduce the dent of the now -defunct Talk, is expected to be number of titles it advertises in, but it declined named publisher of GQ this week. A Conde to specify which ones will be cut. In 2000, Nast representative declined to comment...Via- Philip Morris began pulling its ads from about corn president/C00 Mel Karmazin will serve 50 magazines-including Vibe/Spin Ventures' the remainder of his contract through 2003, the Spin and Time Inc.'s Entertainment Weekly- company announced last Friday in response to where more than 15 percent of the readers are reports that Viacom chairman/CEO Sumner under 18 or have more than 2 million teen read- Redstone would ask the board to remove The New Yorker's Carey ers total. "That policy is the very same policy him...UPN last week laid off 26 of its 110 banks on the weekly's that governs our advertising today," said Tom staffers as part of the network's integration cover cachet Page 32 Ryan, a Philip Morris spokesman. From 1999 to with CBS. Most UPN division heads will report 2001, PM slashed its total magazine spending directly to their counterparts at CBS Television. by about 50 percent, Ryan said. Local Media 9 Adam Ware, COO of UPN, will report to CBS Television president Leslie Moonves...Lifetime Optimedia's DeWitt to Join SNTA Market Profile 14 has renewed 22 episodes of Strong Medicine Gene DeWitt, chairman/CEO of Publicis' Optime- Media Elite 29 for a third season...Fox sold the final three dia International, has been named president of spots in the Super Bowl just three days before the Syndicated Network Television Association, a Inside Media 30 yesterday's game, according to a network rep. trade group that promotes advertising in syndicat- Two Super Bowl spots, from the White House ed programming. The veteran ad man, who has Office of National Drug Control Policy, were spent nearly 40 years in the business, sold his company, DeWitt part of a matching program; Fox will have to give the ONDCP Media, to Optimedia in 2000. At SNTA, DeWitt succeeds Allison two free ads in other programming at a later date. Bodenmann, who left last year and joined Court TV. Corrections: In the Jan.28 Mediaweek Magazine Moni- Universal McCann Wins Sony Account tor, Fit Pregnancy reported incorrect figures. Ad pages for the Universal McCann last week won the $600 million media bimonthly's December/January issue were up 2.68 percent, planning and buying account of Sony Corp. of America. The to 51 pages, compared to the year prior. MEDIAWEEK (ISSN 0155-176X, USPS 885-580) is published 46 times a year. Regular issues are published weekly except 7/8. 7/22, 8/5, 8/26, 12/23 and 12/30 byVNU Business Publications USA., 770 Broadway, New York, NY loom. Subscriptions are $149 one year, $249 two years. Canadian subscriptions are $342 per year. All other foreign subscriptions are $319 (using airmail). Registered as a newspaper at the British Post Office Canadian Post Publication Agreement Number 1430238. Periodicals postage paid at New York, NY, and additional mailing offices. Subscriber Service (1-800) 722-6658. MEDIAWEEK, 770 Broadway, NewYork, NY 10033. 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Reprints (651) 582-3800. www.mediaweek.com February 4, 2002 MEDIAWEEK 3 MediaWire As TNN Gets Hip, BIA: NBC, ABC to Buy Up Stations if Owner Cap Ends A report issued last week by BIA Finan- cial Network predicts that NBC and ABC VH1's Ratings Dip will seek to acquire dozens of TV sta- tions should the current 35 percent U.S. broadcast -coverage limit on station own- Two of MTV Networks' key channels are headed in opposite directions ership be eased or eliminated. BIA, a consulting firm for broadcast- CABLE TV By Megan Larson ers, projected that NBC, which reaches 30.9 percent of the country with its 14 s Viacom president/COO Mel Kar- stations, will likely go after Gannett Co.'s mazin and chairman/CEO Sumner 22 outlets, 13 of which are NBC affils. Redstone continue to squabble in Meanwhile, ABC, which reaches 23.8 the public eye, a good news/bad percent of the country through its 10 news scenario has been developing stations, is expected to bid on Albritton at one of the company's crown jew- Communications (owner of 7 ABC affili- els, MTV Networks.