Our observation in part stated, “Why would broadcasters want to dilute the pool even further by cannibalizing their own audience?” Investment media broker Denis LeClair adds his viewpoint to the issue.

I would like to respond to the recent TVBR observation regarding broadcasters cannibalizing their own audience by diluting (multicasting) on their station’s digital tier “Why would broadcasters want to dilute the pool even further by cannibalizing their own audience?”.  

In your comment, you fail to take into consideration that these second tier digital stations can be viewed over-the-air for free by the 15.5 million households (or 14% of TV HHs) that don’t subscribe to cable or satellite.*   Typically a full power DTV station can add six extra channels to simulcast, but by adding just two to three channels, there is no visual degradation of the high definition signal.

The cable industry grew its business off the backs of local broadcasters.  Through this parasitic relationship the cable industry got bigger and was able to offer more and more channels -which in turn, fragmented the audience available to broadcast television.  Broadcasters understand their local market better than any cable company can.  They live it every day. They are well-suited to recognize and fill program voids like:  Hispanic broadcasting, news, 24-hour local weather, family and kid friendly programming, religious programming, local and high school sports, etc. 

One example of a local broadcaster giving the public what they want occurred last year on WBAY-TV in Green Bay.  The station interrupted its normal 24-hour weather sub-channel DTV2-2 to air live gavel-to-gavel coverage of a sensational local murder trial that had the community on the edge of its seat.  This was very appealing to the local residents as evidenced by the amount of local press you can find on the Internet.
Broadcasters have made a considerable investment in their mandated digital future with no guaranteed return on their investment.  Multicasting is a way for them to get back some of the money that they have spent.  This is a pivotal time for the future of television and multicasting is just one of the spokes that will turn the wheel of progress.

(Source: *http://hraunfoss.fcc.gov/edocs_public/attachmatch/DOC-278454A1.pdf)

Denis LeClair, VP/CobbCorp LLC

 

Read at TVBR.com: http://www.rbr.com/features/viewpoints/8063.html

Brian Cobb is the only broker ever to have been featured on the cover of a broadcasting industry publication.

CobbCorp represented and advised the seller in this unique transaction, which was conducted as an auction with the seller ultimately choosing the best offer. Terms of the deal were not made public. CobbCorp was the exclusive broker in the transaction.

The assets sold include the equipment, tower and tower site of WBKI-DT, and WBKI-CA, a low power Class-A television station repeating most of the programming of its sister station in the northern portion of the DMA.

CobbCorp is a full-service media brokerage firm specializing in mergers, acquisitions, merchant and investment banking. With offices in Florida and New York, CobbCorp is a leading advisor to buyers and sellers in all areas of television, radio, newspaper and other media outlets.

In 2008, among traditional media M&A firms, CobbCorp was involved in the closing of television transactions totaling more dollars than all other specialized media firms combined.

More information on CobbCorp may be found at www.cobbcorp.com.

CobbCorp represented and advised the seller, Channel 6, Inc. in this transaction, which was announced in January 2009. Terms of the deal were not made public.

CobbCorp was especially honored to represent Channel 6, Inc. and KCEN, which has a proud history of more than 56 years of broadcasting under the Mayborn family ownership.

CobbCorp, LLC is a full-service media brokerage firm specializing in mergers, acquisitions, merchant and investment banking. With offices in Florida and New York, CobbCorp is a leading advisor to buyers and sellers in all areas of the television, radio and newspaper industries.

In 2008, among traditional media M&A firms, CobbCorp was involved in the closing of television transactions totaling more dollars than all other specialized media firms combined.

# # #

“Subscribers to print newspapers have gone missing, as everyone knows. Book publishers are also wondering where readers have disappeared to. And yet television stands out as the one old-media business with surprising resilience. Though we are spending a record amount of time online, including a record amount of time watching video, we are also watching record amounts of very old-fashioned television, according to Nielsen Media Research. Our attachment to the medium, of course, is obscured by the splintering of our attention across so many cable offerings, in addition to the major networks.

 Why is the newspaper business losing readers at an accelerated rate while television viewership is stronger than ever? Here’s a speculative idea: A tipping point has been passed in the competition between print and screen that has been under way since the beginnings of broadcast TV and now continues with video and other media.

 Consumers are increasingly avoiding newspapers - and books, too - because the text mode is now used so infrequently that it can feel like a burden. People are showing a clear preference for a fully formed video experience that comes ready to play on a screen, requiring nothing but our passive attention.”  

 -   NYT, RANDALL STROSS

Read the full story Why Television Still Shines in a World of Screens

CobbCorp represented and advised the seller, Channel 6, Inc. in this transaction. The transaction is subject to FCC approval and is expected to close prior to June 30, 2009. Terms of the deal were not made public.

CobbCorp is especially honored to represent KCEN, which has a proud history of more than 55 years of broadcasting under the Mayborn family ownership.

CobbCorp is a full-service media brokerage firm specializing in mergers, acquisitions, merchant and investment banking. With offices in Florida and New York, CobbCorp is a leading advisor to buyers and sellers in all areas of the television, radio and newspaper industries.

In 2008, among traditional media M&A firms, CobbCorp was involved in the closing of television transactions totaling more dollars than all other specialized media firms combined.

I would like to respond to the recent TVBR observation regarding broadcasters cannibalizing their own audience by diluting (multicasting) on their station’s digital tier “Why would broadcasters want to dilute the pool even further by cannibalizing their own audience?”.  

In your comment, you fail to take into consideration that these second tier digital stations can be viewed over-the-air for free by the 15.5 million households (or 14% of TV HHs) that don’t subscribe to cable or satellite.   Typically a full power DTV station can add six extra channels to simulcast, but by adding just two to three channels, there is no visual degradation of the high definition signal.

The cable industry grew its business off the backs of local broadcasters.  Through this parasitic relationship the cable industry got bigger and was able to offer more and more channels -which in turn, fragmented the audience available to broadcast television.  Broadcasters understand their local market better than any cable company can.  They live it every day. They are well-suited to recognize and fill program voids like:  Hispanic broadcasting, news, 24-hour local weather, family and kid friendly programming, religious programming, local and high school sports, etc. 

One example of a local broadcaster giving the public what they want occurred last year on WBAY-TV in Green Bay.  The station interrupted its normal 24-hour weather sub-channel DTV2-2 to air live gavel-to-gavel coverage of a sensational local murder trial that had the community on the edge of its seat.  This was very appealing to the local residents as evidenced by the amount of local press you can find on the Internet.

Broadcasters have made a considerable investment in their mandated digital future with no guaranteed return on their investment.  Multicasting is a way for them to get back some of the money that they have spent.  This is a pivotal time for the future of television and multicasting is just one of the spokes that will turn the wheel of progress.

Denis LeClair
Vice President
CobbCorp, LLC

CobbCorp has developed long-term ties with Wall Street institutions over the years including co-representation in transactions. Our clients benefit from our relationships with Wall Street; however when it comes to specialization in media, often our clients have found that CobbCorp services supersede those of Wall Street firms.

Our clients’ confidence is based on our experience and established track record in our specialty - media.

CobbCorp is in the media business in good and bad times. The time may come when the auction process doesn’t work effectively or when there is a lack of demand from prospective buyers, CobbCorp has the contacts and working knowledge to find buyers and sellers in all situations. CobbCorp can demonstrate why a transaction makes sense.

With CobbCorp you are always working with senior executives. You will not be assigned to a junior liaison to represent you or the best interests of their firm.  Our team comes with proven experience in station ownership, media management, sales and financial credentials.

Ownership • Station Management • Sales • Finance Experience

CobbCorp professionals have billions of dollars of combined transaction expertise with experience in everything from $5 million sales to multi-billion dollar mergers.

Brian Cobb, President of CobbCorp, has sold more than $5 billion in radio and television properties and has been involved in the sale of more television stations than any other individual in the industry.

Managing Director Daniel Graves has 15 years of Wall Street Media Investment Banking experience originating and executing more than $40 billion in transactions. Prior to joining CobbCorp he was the president of Spinnaker Capital Advisors, LLC, a media capital raising and advisory firm. Mr. Graves has represented clients across the spectrum of family-run companies to large-cap multi-national organizations.

CobbCorp has successfully closed deals for single, independent stations and for large multi-market network affiliated station groups, as well as represented individuals and corporations in the purchase of stations. CobbCorp has a proven record of success.

Industry Knowledge - We Know TV

Brian Cobb is a successful former owner of television stations. He has owned stations in large and small markets and has a successful track record of improving, operating and selling properties.

CobbCorp’s Vice President Denis LeClair is an experienced station manager and was instrumental in bringing about the country’s first television Shared Services Agreement in 2001.

Managing Director Jack Higgins has in-depth experience in the media representation business, having worked closely with more than 500 television stations and a majority of the nation’s broadcast groups and senior executives in his role as the President and CEO of Katz Media, Inc.

CobbCorp professionals stay well informed and involved. You will find us attending NAB, NATPE and Broadcaster’s Foundation events, as well as traveling frequently to visit stations and meet with clients.

The amount of information available about the media industry can be overwhelming, and not all is reliable. Access to multiple sources of proprietary industry information gives us an insider’s view and allows CobbCorp professionals to advise on market and station marketable in every DMA in the country.

You’ve Got Our Attention

When you seek advice from CobbCorp, you know you will be working with our senior professionals: Brian Cobb, Denis LeClair, Jack Higgins and Daniel Graves. Each assignment, from idea generation to closing, is handled every step of the way by us personally.

Relationships

CobbCorp professionals maintain strong, top-level relationships throughout the media industry. We know deals are about being connected to decision makers. With more than 90 years of combined experience in the broadcast industry, we each have close relationships with decision makers: station owners and investors, presidents and executives.

CobbCorp: Competent, Credible, Connected

If you are considering selling or purchasing media properties, whether radio, television or other investments, contact CobbCorp. CobbCorp has the experience, relationships, and personal attention to help you achieve your goals.