Ad Losses Put Squeeze on TV News
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It is getting so bad for local television stations that some are turning to newspapers for help. The bankrupt Tribune Company has merged its TV stations and daily newspapers in Miami and Hartford, and it already produces a lighthearted morning show in south Florida with the help of the newspaper's columnists. Bob Gremillion, the executive vice president for publishing, calls it a "circling the wagons" approach. No one would dispute that "the two industries are very challenged," he said. "We're combining and fighting together." The mergers are an example of local TV's agonizing search for new business models as some balance sheets turn red. Starting Monday in Chicago, four stations' news departments are combining their camera crews. In other markets, stations are adding newscasts on the cheap even as they lay off people. On the opposite extreme, a handful of stations are closing their news divisions completely. The news for stations has been grim lately: without election advertisements to defray the losses in automotive ads, a cross section of station owners reported 20 percent to 30 percent quarterly drops in revenue last week, suggesting that the local TV business is almost as weak as its print counterpart.
