Joe Flint

Gerald M. ‘Jerry’ Levin, TV Executive Behind Time Warner-AOL Merger

Gerald M. “Jerry” Levin, a television executive who rose to the top of Time Warner and orchestrated its ill-fated merger with America Online, which defined his legacy, died at the age of 84 in Long Beach (CA). Levin played a key role in the creation of HBO, helped spearhead the merger of Time Inc. and Warner Media, and led the subsequent acquisition of Ted Turner’s media holdings—including CNN—to create the largest news and entertainment company in the world.

ESPN, Fox and Warner Team Up to Create Sports-Streaming Platform

ESPN, Fox, and Warner are teaming up to create a supersize sports-streaming service that will offer content from all major leagues, a deal that will reshape the sports and media landscape. The as-yet-unnamed service will be offered directly to consumers, who would be able to stream a host of channels that are heavy in live sports, including ESPN, TNT, Fox, FS1 and ABC, the companies said in a statement. Each of the companies will have one-third ownership of the new service, which is expected to launch in the fall.

Peak TV Is Over. A Different Hollywood Is Coming.

The labor agreement that writers struck with studios and streaming platforms will likely accelerate the end to “peak TV," a decade that included an explosion of programming for viewers and job opportunities for talent in Hollywood. Streamers will have to find a way to pay increased talent costs—from the writers’ settlement, along with an earlier deal with directors and whatever is finalized with actors—without adding to their overall production costs. That will likely mean that companies will make fewer new shows and cancel even more that are on the bubble.

Networks Sue to Stop Streaming Service Offering Free TV Feeds

The four major broadcast networks have filed a suit in federal court to shut down Locast, a nonprofit streaming service funded in part by AT&T and founded by a Dish Network lobbyist that offers their feeds to subscribers for no charge. CBS, Disney's ABC, Comcast’s NBCUniversal, and Fox argue that Locast is retransmitting the signals of their local TV stations without permission, in violation of copyright law.

Sinclair to Acquire Sports Networks From Disney

Expect to hear official announcement on May 3 of Sinclair Broadcast Group's deal to acquire 21 regional sports networks from Walt Disney for $10 billion. The price tag for the regional sports networks is less than some industry observers initially anticipated.

Nexstar Reaches Deal to Buy Tribune Media for $4.1 Billion

Apparently, Nexstar Media Group has reached an agreement in principle to buy Tribune Media Co. for about $4.1 billion. The acquisition would add Tribune Media’s 42 stations in major markets to Nexstar’s portfolio of about 175 TV stations in cities including San Francisco, Phoenix and Tampa. It would catapult Nexstar past rival Sinclair Broadcast Group, which owns more than 170 stations, mostly in midsize and smaller markets.

Fox News, 21st Century Fox Settle Discrimination Suits With 18 Ex-Employees

Fox News and its parent company 21st Century Fox said they have reached settlements with 18 former employees of the news channel who had filed lawsuits that included allegations of racial and gender discrimination.

Fates of TV Shows Tied Up in Merger Mania

Potential deals between 21st Century Fox and Walt Disney (or Comcast), Viamcom and CBS, and AT&T and Time Warner have producers wondering just who the TV programming honchos will be. New ownership or management could lead to changes in programming strategy, determining which shows get renewed or canceled, where they fall on the schedule, and what kind of resources and marketing budget they get. The uncertainty adds to the other challenges facing the industry including competition for talent and viewers from deep-pocketed streaming services.

CBS Submits Initial Bid for Viacom at Price Below Market Value

Apparently CBS has made an offer to acquire Viacom and the bid is contingent on its management team being at the helm of the merged entity. The all-stock offer is below Viacom’s current market valuation of $12.5 billion. In its offer, CBS proposed that Chief Executive Leslie Moonves and President Joe Ianniello would run the combined company for the foreseeable future, which could make Viacom CEO Bob Bakish an odd man out. Both CBS and Viacom are controlled by media mogul Sumner Redstone’s holding company National Amusements, which has a nearly 80% voting stake in each firm.

CBS and Viacom, After 12 Years Apart, Again Explore Deal to Recombine

The boards of CBS and Viacom have formed special committees to evaluate a potential merger, a deal that would reunite the two big pieces of the Redstone family’s media empire. Shari Redstone, vice chairman of both companies, is pushing for a merger. She, along with her 94 year-old father, Sumner Redstone, controls CBS and Viacom, with a roughly 80% controlling stake in each company through their holding company National Amusements. Shari Redstone believes both companies need greater scale to better compete against bigger rivals.

FCC Tees Up Rule Change That Could Spur Wave of TV Industry Mergers

Federal regulators plan to reverse an Obama-era rule that prevented major television-station owners from buying stations or readily selling themselves, a move that could touch off a wave of deals among media companies.

The proposal, which would effectively loosen a national cap on audience share for station owners that the rule had tightened, is scheduled to be put before the Federal Communications Commission in late April, an agency official said. Chairman Ajit Pai is expected to announce the plan on March 30. The longstanding ownership cap limits TV groups to a 39 percent national audience share. But for years, the government said station owners didn’t have to fully count UHF stations in calculating their share because UHF was typically a less powerful signal.

The Obama-era FCC eliminated the so-called UHF discount last September, contending that the distinction between UHF stations and VHF stations had effectively disappeared. The FCC under Chairman Pai is expected to revert to the previous rule in one of a series of actions he is taking as he plans to reverse several policies adopted under his predecessor, Tom Wheeler, who was FCC chairman for much of President Barack Obama’s second term.

Publishers and TV Networks Feud Over Streaming Feed Ahead of Conventions

On the eve of the Republican National Convention, a dispute has broken out between the five national television networks that have traditionally pooled resources to provide live video from key political events and the online news publishers who rely on that signal for their streaming platforms. The networks—ABC News, CBS News, CNN, Fox News and NBC News —recently informed news outlets that aren’t members of the “pool” they will have to begin paying significant new fees in return for access to live coverage, not just at the conventions but debates, presidential news conferences, and many other events.

Media organizations are pushing back. A dozen publishers, from traditional players like The Washington Post, Los Angeles Times and The Wall Street Journal, to digital specialists like BuzzFeed and Vox.com, protested the changes in a July 13 letter to the executive committee of the White House Correspondents’ Association. They said the fees are exorbitant, and pushed for a new digital pool to be set up.

FCC's media-ownership rules debated at House hearing

The Federal Communications Commission was attacked by Republicans and Democrats during a congressional hearing on the regulatory agency's media-ownership rules.

Among the issues debated were the FCC's long-standing rule prohibiting one company from owning a newspaper and television station in the same market; the role current regulations play in hindering traditional media's ability to compete against emerging digital platforms, and the lack of diversity among broadcasters.

The FCC, represented at the hearing by the chief of the commission's media bureau, William Lake, was also taken to task for failing to complete its 2010 quadrennial review of ownership rules, as mandated by Congress. New FCC Chairman Tom Wheeler plans to roll the 2010 review into the 2014 report and is aiming for a 2016 completion.

The hearing of the House Commerce Committee's subcommittee on communications and technology was split along party lines when it came to how the media industry should be regulated. Republicans, led by subcommittee Chairman Greg Walden (R-OR), challenged the FCC for keeping some rules, including the so-called newspaper-TV cross-ownership ban, on the books for almost 40 years.

Fox and Apollo to create TV production giant.

Rupert Murdoch's 21st Century Fox and private equity giant Apollo Global Management are in preliminary talks to create a global television production house that would manage big hits like "American Idol" and "Deal or No Deal."

The deal would combine Fox's Shine Group as well as the Apollo-controlled Endemol and Core Media Group. The joint venture would be one of the largest reality TV producers in the world, controlling franchises like "Master Chef," "The Biggest Loser" and "Big Brother."

Joining forces would buttress both companies during a period of intense consolidation in the production industry, particularly among firms that specialize in unscripted shows. A number of deals were announced among broadcasters seeking to expand content and increase audience share.

"This gives them access to newer programming ideas and exposes them to the possibility of other concepts," said veteran media analyst Hal Vogel, "and may save them some money too."

TV networks load up on commercials

The number of commercials in the typical hour of television has grown steadily during the last five years, according to a new study from the ratings measurement firm Nielsen.

The rise in commercials can be attributed to two factors: Broadcast and cable networks are allotting more time for commercials, and advertisers are increasingly using shorter spots to hawk their products.

In 2009, the broadcast networks averaged 13 minutes and 25 seconds of commercial time per hour. In 2013, that figure grew to 14 minutes and 15 seconds. The growth has been even more significant on cable television. In 2009, cable networks averaged 14 minutes and 27 seconds per hour. In 2013, the average was 15 minutes and 38 seconds. At the same time, the number of 30-second commercials has declined while 15-second spots have increased. Not only is more time being devoted to ads, but more spots are being jammed into commercial breaks.

Broadcast lobbyist Gordon Smith blasts FCC in speech at NAB show

The broadcasting industry's top lobbyist said the Federal Communications Commission needs to work closer with the industry rather than trying to undermine it through regulatory measures that favor would-be competitors.

"Over the past five years, there has been an increasingly singular focus by the federal government on broadband," said National Assn. of Broadcasters President and Chief Executive Gordon Smith in a speech at the association's annual convention in Las Vegas. Smith added that meanwhile the agency continues to "regulate broadcasters as if the world is stuck in the 1970s."

While broadcasters would get a piece of the proceeds from such auctions, many in the industry are reluctant to participate. Said Smith: "On the one hand, government can treat us as if we are dinosaurs and does what it can to encourage TV stations to go out of business. On the other hand, the FCC says we are so important and powerful that two TV stations can't share advertising in the same market, while it's OK for multiple cable, satellite and telecommunications operators to do so."

That new FCC Chairman Tom Wheeler is a former head of both the cable and wireless industry lobbying groups also has many broadcasters concerned that they are second-class citizens in his eyes. Univision Chairman Haim Saban cracked that the FCC stands for "Friendly Cable Commission," during an interview at the convention. The FCC, Smith said, needs a "national broadcast plan" along with its National Broadband Plan.

Most Dodger fans to be shut out from viewing games on opening day

Los Angeles Dodgers fans are caught in a rundown. On one side are the Dodgers and Time Warner Cable, which is handling distribution of SportsNet LA. On the other side are area pay-TV distributors, which are balking at the price for carrying the channel.

"I'm angry with the Dodgers management," said Magnuson, a customer of Verizon FiOS. "There are so many fans that won't get to see them anymore."

This disagreement amounts to a virtual shutout. Besides FiOS, other area pay-TV providers that are not carrying SportsNet LA include satellite broadcasters DirecTV and Dish Network, cable companies Cox and Charter and AT&T's U-Verse. The only operators carrying SportsNet Los Angeles are Time Warner Cable and Bakersfield's Bright House Networks, which has ties to Time Warner Cable.

Disney-Dish Network pact may alter TV viewing habits

Walt Disney and satellite TV provider Dish Network's sweeping new agreement could lead to changes in the way consumers watch television.

The comprehensive distribution deal is expected to become a blueprint on how the television industry treats the increasingly important digital rights for valuable programming. Wireless television service would create a new business opportunity for Dish, which provides service to 14 million customers. The planned service would be designed to appeal to the so-called never-connected generation of young people, who consume much of their entertainment via computers and tablets, and thus have been difficult recruits for traditional cable and satellite TV providers.

"It would hit a market that they want to reach -- single people, young couples -- those who don't otherwise subscribe to pay TV," said Michael Nathanson of the Moffett-Nathanson research firm. If and when it arrives, Dish's Internet service might look a lot like what Dish offers now — a set package of channels -- and not the "a la carte" service that some consumer activists have been demanding from the industry.

Copyright experts side with broadcasters in Aereo fight

Two of the nation's preeminent legal experts on copyright law are siding with broadcasters in their legal fight against Aereo, a start-up service that transmits local television signals via the Internet.

In a brief filed at the Supreme Court, UCLA School of Law professor David Nimmer and Peter Menell, a professor at the UC Berkeley School of Law, warned that if Aereo were found to be legal it could "decimate multiple industries." The broadcasters are hoping that the high court will overturn the 2nd Circuit Court of Appeals in New York ruling that found Aereo's transmissions and recordings are not "public performances" of copyrighted material.

Comcast acquisition of Time Warner Cable could undermine CBS deal

The new distribution contract CBS signed with Time Warner Cable last summer after a bitter fight could be a casualty of Comcast's proposed acquisition of TWC.

According to people familiar with the deal, it does not include provisions protecting all the terms of the pact should Time Warner Cable be acquired by a distributor with a sweeter arrangement. These people requested anonymity because the agreement is confidential. Terms of the CBS-Time Warner Cable pact were never publicly disclosed, but Comcast, which signed a 10-year distribution agreement with CBS in 2010, is believed to be paying a lower fee to carry the network's TV stations. Should Comcast get regulatory approval of the Time Warner Cable purchase, it can carry CBS under its current deal.