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Boston TV crisis: WHDH and WNEU


TheRolyPoly

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KRON really set a precedent of a network's power to strip away an affiliation and to require somewhat extreme measures to do so....all while the affected station had no other network to turn to.

 

Now we could see the consequences of a network that's owned by a cable company that should have NEVER EVER have grown to it's size. Vertical integration at its finest. Broadcasting be damned....

Exactly. You might say that KRON "doesn't matter," but it established this dangerous precedent. NBC was as obsessed with having a Bay Area O&O that, after losing the bidding for KRON, turned around and affiliated with - then purchased - KNTV, thus destroying the (admittedly inflated) $800M value KRON had overnight.

 

As Comcast is the dominant cable provider nationwide, this behavior easily can manifest itself in similar business practices towards the few remaining small-market cable companies. It cannot be left unchecked.

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Ugh, the KRONic topic...

 

KRON is irrelevant. KNTV is not. NBC is fine in the SF market.

 

Sorry, I know KRON is brought up all the time for no reason whatsoever (I still remember when people thought Fox was going to buy it for their O&O).

 

But the only reason I brought it up because what NBC is planning to do in Boston is exactly what they did in San Francisco 15 years ago (holy cow has it really been that long?)

 

They took the affiliation away from a highly rated station with a transmitter that reaches most of the market and moved it to another station that was based on the fringe of the market with a transmitter that covered a significantly fewer portion of the market (KNTV did not reach north of the Golden Gate). KNTV had to move their transmitter from south of San Jose to a location much closer to San Francisco in order to reach viewers north of the Golden Gate. And last time I checked, the ratings for their newscasts were still in the bottom half of the ratings list even 15 years later whereas KRON became the basement dweller.

 

The differences that I can see so far in the Boston situation is that I don't think WNEU is able to move their transmitter closer to Boston (I could be wrong though). In addition, I think Ansin will keep the news department going there for a long time even after they possibly lose the NBC affiliation. Young decided to run KRON's news department on the cheap after they lost the NBC affiliation and they suffered because of it.

 

I guess my question is whether NBC really is better off with KNTV than they were with KRON?

Here's an update, along with some fodder for discussion.

 

*WLVI-Ch. 56's spectrum will be auctioned off. The signal will move to WHDH-Ch. 7. (No word on what may happen to 7.2's thisTV or 56.2's Buzzr.)

 

If, by some miracle, WHDH was purchased by NBC, they would not take the physical property or personnel. This is similar to when Sunbeam purchased 'LVI; it was signal and programming only, nothing else. "NBC Boston" has personnel in NECN. There is no way the Boston marketplace could absorb the WHDH staff (newsroom, operations, sales, etc.); none.

 

"NBC Boston" has not made one statement -- not one -- about where their signal may reside, other than to say it would be over-the-air. It may, in fact, be WNEU, but they're leaving the door open. So let's review the options:

 

*WGBH-2 (No)

*WBZ-4 (No)

*WCVB-5 (No)

*WHDH-7 (When pigs fly...)

*WFXZ-24 (Perhaps in tandem with WNEU. I don't know who ultimately owns the station, it is a MundoFox affiliate)

*WFXT-25 (No; unless they offer a digital multicast 25.x as an option and NBC would essential "rent" space)

*WSBK-38 (No)

*WWDP-46 (Once owned, in fact, by NBC, its signal is stellar and its positioning even better. They somehow manipulated some cable providers into believing that their RF channel, 10, should be the "must carry" channel, and not their virtual 46. This could be the game changer.)

*WMFP-62 (During the Westinghouse/WBZ NBC days, WMFP was a secondary NBC affiliate, picking up any programs not cleared by WBZ. Its signal is superb. It's owned by NRJ, which is largely considered to be interested in selling their stations in the spectrum auction.)

*WUTF-66 (No)

*WBPX-68 (Highly doubtful. The ION station is part of a network of stations in Massachusetts and New Hampshire.)

 

So there are certainly viable options. But does it matter? Perhaps not. WNEU has excellent cable positioning in the marketplace. Boston has an extremely high cable penetration rate versus the rest of the country. And WJAR/Providence's signal is grade B within Boston proper. So, if you wanted NBC programming, one could get it.

 

As I've stated before, however, I do not believe that Boston can support another English-language news outlet when those already in existence aren't doing so well.

The best move at this point is WMPF. Try to negotiate a low cable position (think 3 or 8, cable carriage of any actual 3's or 8's in the Boston DMA is practically dead) and maybe see if the PSIP can change to the actual 18. Just move Cozi to .2 and the technical end is settled.

 

Cashing the spectrum on WLVI sadly is the one way they can make their money back on a move that was one part shrewd to five times foolish. As it is they barely have enough syndicated inventory for one station let alone two.

So there are certainly viable options. But does it matter? Perhaps not. WNEU has excellent cable positioning in the marketplace. Boston has an extremely high cable penetration rate versus the rest of the country. And WJAR/Providence's signal is grade B within Boston proper. So, if you wanted NBC programming, one could get it.

So you have to pay Comcast Cable to watch a free-to-air station owned by Comcast's NBC division because the station - to be billed as "NBC Boston" - has a signal that doesn't come close to reaching the core metro.

 

Just think about how absurd that is. We aren't talking about a lower-tier independent like a WBIN or a digital netlet, this is a potential BIG FOUR AFFILIATE IN A TOP TEN MARKET being created solely out of spite.

 

Comcast is just daring Sen. Ed Markey and other politicians to go after them with this irresponsible behavior.

The best move at this point is WMPF. Try to negotiate a low cable position (think 3 or 8, cable carriage of any actual 3's or 8's in the Boston DMA is practically dead) and maybe see if the PSIP can change to the actual 18. Just move Cozi to .2 and the technical end is settled.

 

Cashing the spectrum on WLVI sadly is the one way they can make their money back on a move that was one part shrewd to five times foolish. As it is they barely have enough syndicated inventory for one station let alone two.

It's also Ed Ansin throwing his own spite down NBC's way. He'll be putting tons of money into "7 NEWS," so the spectrum cash-out of WLVI is an additional infusion.

 

And this is the major distinction between KRON and WHDH; Young ran the NBC-less KRON on the cheap and tanked likewise, but Ansin is going to pour tons of resources and money into WHDH. He did it with WSVN, he sure as heck can do it again.

 

As for WLVI's intellectual property, if I were Ed Ansin, I'd start simulcasting all of WHDH's news programs on WLVI, along with the additional "7 NEWS" newscasts. Then simply "merge" the two programming lineups on January 1, 2017.

So you have to pay Comcast Cable to watch a free-to-air station owned by Comcast's NBC division because the station - to be billed as "NBC Boston" - has a signal that doesn't come close to reaching the core metro.

 

Just think about how absurd that is. We aren't talking about a lower-tier independent like a WBIN or a digital netlet, this is a potential BIG FOUR AFFILIATE IN A TOP TEN MARKET being created solely out of spite.

 

Comcast is just daring Sen. Ed Markey and other politicians to go after them with this irresponsible behavior.

 

Not absurd. You're talking about a fraction of the audience. I wholeheartedly agree that Comcast should not control endpoint-to-endpoint. However, if a viewer wants to view NBC in Boston come January 2017, it can be done -- whether from "NBC Boston" on WNEU or from WJAR.

"To be clear, the new NBC-owned station will be a broadcast channel available to over-the-air viewers like our other NBC and Telemundo stations, not a cable-only channel as has been publicly speculated. Additionally, we are committed to expanding our over-the-air coverage of the market and are currently looking at a variety of options to accomplish that."

 

Valari Staab

President, NBCUniversal Owned Television Stations

 

Translation: We're not sure how we're going to pull this off, but fuck it, we're going to try anyway.

I guess I had a different translation of Ms. Staab's quote(s).

 

My Take/Translation: Based on the amount of information that has leaked out and Mr. Ansin's confirmation we feel we need to publicly acknowledge our plans in the Boston market. We are also working to expand our OTA coverage in the market however, those some of those details have yet to be finalized.

 

 

I found this line in the second NE1 update interesting: " if CBS moves the CW Network to WSBK in August, he will be stuck with two independent stations worth a fraction of what they are now". Does WLVI's CW affiliation expire in August of this year? If so this just made things a whole lot more interesting.

Yes, WLVI's affiliation agreement with the CW expires in August. I stated this earlier in the thread but, I think The CW affiliation is headed to WSBK.

 

 

I find it a bit interesting that Ed is saying that moving the signal to WNEU will violate Comcast's agreement with the FCC with serving the community of license by citing the loss of signal coverage. If that's the case WHDH isn't serving its DMA as its signal isn't good in New Hampshire.

 

Hopefully you'll understand what I'm saying. I wasn't sure how to articulate my thoughts.

I get what your saying. Really this is just Ed throwing a Hail Mary pass. He's running out of options and it's likely his Boston duopoly will be worth a fraction of it's current worth in less than a year.

 

And, on the flip side Comcast could argue they expanded their service to the community. They have invested heavily in the NBC and Telemundo O&Os since taking ownership. This of course has resulted in expanded and/or improved newsrooms within those communities. This is especially true on the Telemundo side. And, Telemundo Boston has been one of those recipients receiving an infusion allowing them to launch a local newscast that previously did not exist.

 

 

KRON really set a precedent of a network's power to strip away an affiliation and to require somewhat extreme measures to do so....all while the affected station had no other network to turn to.

 

Now we could see the consequences of a network that's owned by a cable company that should have NEVER EVER have grown to it's size. Vertical integration at its finest. Broadcasting be damned....

I might be arguing semantics a bit. But, NBC's agreement with WHDH expires at the end of the year and they are choosing not to renew it. Personally, I think the term "strip away an affiliation" implies they are terminating existing agreement. Just my opinion.

 

 

This whole situation was not concocted overnight. The sour relationship between Ansin and NBC goes wayyyyy back. The writing has been on the wall for YEARS. Ed shouldn't be surprised, he's known about NBC's plans/desires in the Boston market. Isn't that why he purchased WLVI from Tribune, to keep NBC from getting it???

 

It's easy to hate on Comcast because of the bad reputation they have. At the end of the day, they are a business first and foremost. If people want to stick to them, then the easiest way to do it is where it hurts them the most... the pocketbook.

 

People need to keep in mind that Comcast isn't eliminating the NBC broadcast network from the market. Will the viewing options change and be more difficult due to a change in stations? absolutely. But I can't imagine that they're not making contingency plans just in case they aren't able to purchase WHDH.

 

What will happen if/when CBS takes the CW affiliation in house to WSBK? Will people bitch and complain then, about a big network taking an affiliation away from a local owner as well?

Great post. I agree with all your points.

 

And, to add a couple other rhetorical questions to the one you posed at the end of your post.

Would people still complain if NBC was choosing to non-renew with WHDH and instead moving the affiliation to another non-O&O station in the market?

If WNEU's signal adequately covered Boston would there be as much outrage?

 

 

Here's an update, along with some fodder for discussion.

 

*WLVI-Ch. 56's spectrum will be auctioned off. The signal will move to WHDH-Ch. 7. (No word on what may happen to 7.2's thisTV or 56.2's Buzzr.)

If true, I think this is just further proof that The CW affiliation is headed to WSBK and Ed already knows this.

 

WRT to the subchannels, if this comes to pass I'd expect both of them to hang around with one of them simply becoming WLVI's primary channel. So, you could just end up having 7.1 Ind./Main Programming (WHDH), 7.2 Buzzr (WHDH) & 56.1 ThisTV (WLVI) all originating on RF 42 (or, whatever RF channel WHDH is reassigned to post-repack.) Really channel sharing is just a way for Ed to hold onto both licenses and keep his options open.

Here's one question...

 

Say that The CW does move from WLVI to WSBK. Who will get the MyTV affiliation? Will it move to WLVI or to WHDH or be kept on WSBK but under a secondary status where programming is pushed to 11:00pm-1:00am?

Here's an update, along with some fodder for discussion.

 

*WLVI-Ch. 56's spectrum will be auctioned off. The signal will move to WHDH-Ch. 7. (No word on what may happen to 7.2's thisTV or 56.2's Buzzr.)

 

If, by some miracle, WHDH was purchased by NBC, they would not take the physical property or personnel. This is similar to when Sunbeam purchased 'LVI; it was signal and programming only, nothing else. "NBC Boston" has personnel in NECN. There is no way the Boston marketplace could absorb the WHDH staff (newsroom, operations, sales, etc.); none.

 

As I've stated before, however, I do not believe that Boston can support another English-language news outlet when those already in existence aren't doing so well.

Considering Boston's size, how could it not support five English language news departments? Really, the market has that many now (and the NBC Boston news operation would just be an extension of an existing one, so it wouldn't count as a separate operation per se). Heck, it had six before Tribune sold WLVI.

 

Presumably, if Ansin agreed to sell, NBC might try to work out a merger of operations between NECN and WHDH staff similar to deals involving news department mergers caused by the creation of a duopoly, where some staff members would lose their jobs, while the rest would have their contracts acquired by NBC. I assume this is how this what network management thought about when they were actively pursuing 'HDH. But with Ansin not budging, they decided to just use those already with NECN and hire others who would appear on it and wherever NBC lands or on one of the outlets exclusively now that the peacock has chosen to find somewhere else to roost in the Boston DMA.

 

Also, I thought that the public disclosure period for participation in the auction hasn't happened yet, so isn't the source who divulged that Sunbeam plans to enter into a channel share for WLVI violating those terms?

Here's one question...

 

Say that The CW does move from WLVI to WSBK. Who will get the MyTV affiliation? Will it move to WLVI or to WHDH or be kept on WSBK but under a secondary status where programming is pushed to 11:00pm-1:00am?

 

I can't think of many places they could go. IIRC WSBK gets decent ratings for their late night sitcoms. WBIN seems content as an indy. Maybe set up a 5.3 on WCVB and either take This from WHDH or H&I from OTA owned/Binnie run WYCN on Nashua and just knock out two hours for My.

Here's one question...

 

Say that The CW does move from WLVI to WSBK. Who will get the MyTV affiliation? Will it move to WLVI or to WHDH or be kept on WSBK but under a secondary status where programming is pushed to 11:00pm-1:00am?

Your guess is as good as anyone. And, quite frankly you could pick darn near any station in the market.

 

Since their switch to a programming service (and, even more so in the past few years) MNT has become relatively flexible. For the most part MNT is "fine" with most stations. As long as their programming is cleared and they get their money they are happy. I believe their affiliation agreements are only a few pages long. To that end they have allowed stations to run programming out-of-pattern, including WWOR and KCOP. And, they are perfectly fine being on a .2 as well. Paul Franklin, EVP-general sales manager of broadcast at Twentieth Television was quoted as saying "A lot of dot.twos are pretty strong in their markets, We’re not afraid of being on a dot.two station — some of them are very well programmed." So, they have plenty of options in the market.

 

Also, I thought that the public disclosure period for participation in the auction hasn't happened yet, so isn't the source who divulged that Sunbeam plans to enter into a channel share for WLVI violating those terms?

The "quiet period" doesn't begin until the deadline to submit applications for participation. So, they are fine.

 

The FCC clarified the "quiet period" rules stating that "Communicating Merely Whether a Licensee Has or Has Not Applied to Participate Does Not Violate the Rule" as that doesn't reveal the applicant's bids or bidding strategy. However, licensees should not disclose a Channel Sharing Agreements during the "quiet period". Instead they are allowed to use ambiguous language like "the station will continue in business after the auction".

 

Also, I think the "public disclosure period" you are thinking of relates more to the FCC and their communication to the public. Losing bidders' identities remain confidential for two years after the auction. So, if a licensee opts to not disclose info themselves, (within FCC rules) the commission will withhold it for two years.

Considering Boston's size, how could it not support five English language news departments? Really, the market has that many now (and the NBC Boston news operation would just be an extension of an existing one, so it wouldn't count as a separate operation per se). Heck, it had six before Tribune sold WLVI.

 

Presumably, if Ansin agreed to sell, NBC might try to work out a merger of operations between NECN and WHDH staff similar to deals involving news department mergers caused by the creation of a duopoly, where some staff members would lose their jobs, while the rest would have their contracts acquired by NBC. I assume this is how this what network management thought about when they were actively pursuing 'HDH. But with Ansin not budging, they decided to just use those already with NECN and hire others who would appear on it and wherever NBC lands or on one of the outlets exclusively now that the peacock has chosen to find somewhere else to roost in the Boston DMA.

 

Also, I thought that the public disclosure period for participation in the auction hasn't happened yet, so isn't the source who divulged that Sunbeam plans to enter into a channel share for WLVI violating those terms?

 

 

Big Ed, was making the rounds for interviews with his own station and WBZ radio.

 

http://www.whdh.com/clip/12124418/major-announcement-involving-nbc-and-whdh-tv

 

http://boston.cbslocal.com/2016/01/07/nbc-pulling-affiliation-whdh-channel-7-boston/

 

WCVB report on the story:

http://www.wcvb.com/news/nbcuniversal-launching-new-station-in-boston-in-2017-future-unclear-for-current-affiliate/37314978

Would people still complain if NBC was choosing to non-renew with WHDH and instead moving the affiliation to another non-O&O station in the market?

At least WHDH would have the likelihood of picking up whatever existing affiliation that the non-O&O station would be dropping as a result, whether it be ABC (WCVB) or Fox (WFXT). Now, it was WBIN, then the same end game for WHDH would exist, going at it alone as an independent. Yes, WBIN is a rimshot, but at least it does cover significant portions of the Boston metro, which is something WNEU can't even do.

 

If WNEU's signal adequately covered Boston would there be as much outrage?

Very likely not. WNEU as-is comes off as a last resort option for NBC, that they are more than content with needlessly handicapping the network's viability in a top ten market because Ed Ansin refused to sell his station.

 

Now, should they get WWDP, WFXZ or another station (or, in an outright miracle, WMFP) to relay WNEU - or become the primary station - then the equation would be changed dramatically. But as of right now, "NBC Boston" is positioned to be a colossal failure that will be nothing more than a write-down on the Comcast books, dragging down NECN with it.

WXIA been in 3rd place for most of it history in Atlanta, and KPRC ratings seems to go up and down. Also so with NECN one would think Kenny Plotnik would become the News Director at NBC Boston since he helms over at NECN?

 

Well it's NBC..NBC was contemplating about getting WXIA from Gannett back in the mid-2000s prior it placing WVTM, WNCN, WCMH, & WJAR for sale. I recall hearing from actual NBCU employees saying the company was considering the purchase of WXIA.

Your guess is as good as anyone. And, quite frankly you could pick darn near any station in the market.

 

Since their switch to a programming service (and, even more so in the past few years) MNT has become relatively flexible. For the most part MNT is "fine" with most stations. As long as their programming is cleared and they get their money they are happy. I believe their affiliation agreements are only a few pages long. To that end they have allowed stations to run programming out-of-pattern, including WWOR and KCOP. And, they are perfectly fine being on a .2 as well. Paul Franklin, EVP-general sales manager of broadcast at Twentieth Television was quoted as saying "A lot of dot.twos are pretty strong in their markets, We’re not afraid of being on a dot.two station — some of them are very well programmed." So, they have plenty of options in the market.

That said, I'd think MyNetworkTV, even if it's content with affiliating with a .2 anywhere an "affiliation" is open, would like to be on a main channel in markets like Boston. So a subchannel affiliation with WCVB might be lower on the totem pole of options there, than it would be in a mid-size market like, say, Harrisburg, where there are only five major commercial outlets, leaving a subchannel affiliation as the only way it gets cleared.

 

The largest subchannel-only MNT affiliate I can think of is WFOX in Jacksonville, but in most markets larger than that, the service has a main channel to roost.

Very likely not. WNEU as-is comes off as a last resort option for NBC, that they are more than content with needlessly handicapping the network's viability in a top ten market because Ed Ansin refused to sell his station.
You're talking about WHDH, but he could easily sell WLVI to NBC instead as a compromise.

I'm not sure if this has been pointed out but Eds valuation of both stations at $500 million is a pipe dream. He's talking about the opening bid prices for spectrum auction but there is no way he will get anything close to it. That being said I would guess that if the auction wasn't taking place I'd imagine WHDH would be at least $100 million.

You're talking about WHDH, but he could easily sell WLVI to NBC instead as a compromise.

Umm...based on all the facts to date Ed has zero intention of "compromising". He's pretty much going " scorched earth" in an effort to save his Boston operation. He'd rather turn over WLVI's 6 MHz as part of the incentive action then sell it on it's own to NBC.

 

Ansin was willing sell his entire Boston operation for a hefty sum. However, NBC really only needs a transmitter and tower...they don't need the studio, staff, etc. NBC low-balled him and Ed subsequently told them where to go and how to get there.

 

So, we are well past any "compromising". And, quite frankly I think NBC has moved on from any WHDH and/or WLVI acquisition.

Umm...based on all the facts to date Ed has zero intention of "compromising". He's pretty much going " scorched earth" in an effort to save his Boston operation. He'd rather turn over WLVI's 6 MHz as part of the incentive action then sell it on it's own to NBC.

 

Ansin was willing sell his entire Boston operation for a hefty sum. However, NBC really only needs a transmitter and tower...they don't need the studio, staff, etc. NBC low-balled him and Ed subsequently told them where to go and how to get there.

 

So, we are well past any "compromising". And, quite frankly I think NBC has moved on from any WHDH and/or WLVI acquisition.

What if he does? He has the resources to prevent NBC from yanking the network's affiliation from WHDH, or at least make a compromise with NBC like the one I just mentioned

I'm not sure if this has been pointed out but Eds valuation of both stations at $500 million is a pipe dream. He's talking about the opening bid prices for spectrum auction but there is no way he will get anything close to it. That being said I would guess that if the auction wasn't taking place I'd imagine WHDH would be at least $100 million.

That was kind of the point. Basically Ed said "Fine, I'll sell the whole thing to you for [insert ridiculous sum here]. Otherwise, you can go *bleep* yourselves."

 

NBC wasn't interested in Sunbeam's entire Boston operation. Nor, were they interested in paying anywhere close to the price Ansin threw out there. So, I think you can guess what option was chosen.

 

What if he does? He has the resources to prevent NBC from yanking the network's affiliation from WHDH, or at least make a compromise with NBC like the one I just mentioned

Ansin has next to zero power to stop NBC from leaving. He's throwing shit at a wall and seeing if it sticks with his potential lawsuit, etc. His Boston operation stands to only be worth a fraction of it's current value in less than a year. So, you can't blame him for trying. But, if NBC wants to leave...then NBC is going to leave.

 

And, there is little reason for him to sell just WLVI to NBC. NBC would then just move the affiliation to WLVI. So, why would he give up an asset (WLVI) that would in turn be used to significantly devalue his remaining asset (WHDH)?

What if he does? He has the resources to prevent NBC from yanking the network's affiliation from WHDH, or at least make a compromise with NBC like the one I just mentioned

Compared to Comcast...No.

 

Plus, they're not yanking the affiliation away. They've already said they're not renewing the affiliation with Ansin. Yanking implies that something is being taken [somewhat forcefully] away.

 

And just for shits and giggles. Why don't we also scrutinize the stripped affiliations that FOX and CBS have made over the last few years? i.e. WCCB, XETV, WISH, and you can't forget what FOX was trying to do in Seattle with Tribune/KCPQ...Those IMO were much worse, as they basically went behind the backs of the incumbent affiliate and negotiated an affiliation with a new station (with the exception of KCPQ, but it resulted in Tribune forking over more money to FOX). So if we all want to talk about greed, there is plenty of examples to go around...

Why is this thread labeled "TV Crisis"? NBC will be available I'm sure over the air regardless. The only drawback is having WHDH be nothing but a tabloid like news station with even more newscasts than they have now...

I guess that's pretty much the point in this case. Ansin pretty much the best poker player when it comes to TV deals and affiliations. When NBC called him bluff for not selling, he called them bluff for not launching their O&O. So, throwing out the personal biases about the format (which I'm not to liking myself), he'll win regardless.

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