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Local newscasts cope with economic crunch
Tuned In
Friday, November 14, 2008

Here at Tuned In, the fiscal health of local TV stations is not generally a concern, but when it threatens to impact what viewers see on TV, then it gets our attention.

With the $23.4 million spent on 30,416 political ads on local stations in 2008 now in the rearview mirror, some local TV executives are steeling themselves for the real impact of the dismal economic climate as we close out 2008.

And next year looks to be worse. The Television Bureau of Advertising reissued a 2009 forecast this week that predicts local spot advertising will decline between 4 percent and 8 percent. (Nationally the numbers are worse, with predicted spot ad declines of 11.5-to-15.5 percent.)

"Is 'bleak' spelled with two 'e's' or one?" cracked WPXI general manager Ray Carter. "We're like all industries right now: Very few are finding the current economic landscape to be pleasant."

Carter said he has called the Channel 11 staff together on several occasions to let them know the state of the industry and solicit suggestions for ways to cut costs.

"Let's look for efficiencies, let's review every job in the building, let's look at vendor contracts," he said. "This is far beyond, 'We might want to eat out less.' This is big stuff."

That includes looking at anchor contracts and possibly reducing salaries.

"I think what prudent companies are doing is looking at every contract and looking to see how to allocate resources appropriately," Carter said. "There was a day in this business where there were almost, but not quite, automatic increases with each contract you got. Now, the contract you get may have an increase, it may be flat or it may include a wage cut depending on where you are and what the market can now bear."

"The market bears something less than a few years ago," he added. That's evident just looking at Pittsburgh's market rank. The city was No. 19 nationally 10 years ago; as of Jan. 1 it will be No. 23.

News anchor David Johnson didn't want to talk specifics regarding the potential for a lead anchor pay cut, but he did say, "Ray and I are in constant conversation about many things and while I can't comment on whether I've been asked to take pay cut, I can tell you we talk all the time and I don't know, nor does he, where this whole economic thing is headed, but we do talk." News anchors Peggy Finnegan and Darieth Chisolm could not be reached for comment.

It seems likely that WPXI's five-person weather staff will be trimmed in the future. Notice, there have been no promos touting that Channel 11 has more meteorologists than any other station in town. Carter said Channel 11's owner, Cox, is privately held, which gives them an edge over publicly traded companies at times of economic uncertainty. But he couldn't rule out layoffs.

"I would never say we won't have layoffs or significant cutbacks. In this economy, all bets are off," he said. "But we move very slowly and deliberately and don't do anything rash."

Viewers have already seen the impact of the shrinking Pittsburgh TV market at WTAE, where an anchor shuffle earlier this fall will likely allow the station to offer anchors Sally Wiggin and Michelle Wright less lucrative contracts commensurate with their diminished anchor duties.

WTAE general manager Rick Henry wouldn't comment on the potential for layoffs, saying only, "Like all businesses, we're constantly reviewing our expenditures and trying to trim them."

Henry said the general economic downturn hurts TV stations because advertising declines. Auto sales are down, and so are ads for cars.

"That's the single largest category of advertising," he said of automotive ads. "It has an impact and as a result, the ad expenditures from the auto category have softened for all media."

Henry dismissed notions of a gloom-and-doom climate, saying new advertising categories typically emerge to fill time vacated by others.

While there may be nervousness in Pittsburgh, so far it has yet to manifest as a wave of job cuts. That's not true elsewhere. TV news insider Web sites blare headlines about local TV news contraction on a daily basis. Just yesterday there were reports of weekend newscasts dropped in Montana and an Orlando station that cut its assistant news director position.

KDKA-TV pink-slipped about a dozen employees earlier this year. So far, no further cuts have been made.

KDKA general manager Chris Pike said Pittsburgh is insulated somewhat compared to other markets because we don't have the highs that lead to corresponding lows. It's similar to housing appreciation: Home prices rise slowly here so there's no bubble to burst, which is what happened in faster-growth markets.

"I'm not saying there aren't challenges in our economy ... but I would say as far as markets go, Pittsburgh has fared better than most because we didn't have the speculation going on that we saw in other markets," Pike said.

Another reason for some stability here: Pittsburgh stations may be leaner than stations elsewhere, having already gone through a massive local economic downturn in the 1980s.

"Some markets are going through some of what Pittsburgh went through 20 years ago," Pike said. "All the companies that own stations in this market have a commitment to local news. We certainly are committed to providing a quantity and quality of coverage, and I think both companies we compete with here are committed as well. They're both good companies."

At September's WQED board meeting, executives made a point of noting that there had been no jobs cut during the 2007-08 fiscal year, which ended in September. That remains the case, according to WQED spokeswoman Rosemary Martinelli.

Steelers pre-empt WPCW

The CW's Thursday night series will be pre-empted for a Bengals-Steelers game next week but the episodes will air (and not in the wee hours of the morning either).

"Smallville" will relocate to 7 p.m. Nov. 22, followed at 8 p.m. by an episode of "Supernatural."

Channel surfing

Pittsburgh TV stations, including KDKA, WPXI, WPGH, WTAE and WQED, will now do a two-minute DTV test Monday at 6:25 p.m., not the one-minute test previously announced. ... NBC has canceled "Lipstick Jungle" and "My Own Worst Enemy." ... Sci Fi Channel renewed "Sanctuary" for a second season. ... The CW ordered five more episodes of promising newcomer "Privileged" (9 p.m. Tuesday, WPCW). ... Fox's "Mad TV" will end its 14-year run in May. ... NBC's "Saturday Night Live" will feature guest host Paul Rudd and musical guest Beyonce this weekend, and Tim McGraw hosts with musical guests Ludacris and T-Pain on Nov. 22. ... Robert Devore of Eighty Four will come on down for "The Price Is Right" (11 a.m. weekdays) on Monday's episode. ... Veteran WPXI reporter Andy Gastmeyer will retire from the station next month.

Tuned In online

The Tuned In podcast took the week off (returning next Tuesday afternoon), but Tuned In Journal includes reviews of "Extreme Trains," "Estate of Panic" and a new "Star Wars"-themed "Robot Chicken."

Contact TV editor Rob Owen at rowen@post-gazette.com or 412-263-1112. Read the Tuned In Journal blog at post-gazette.com/tv.
First published on November 14, 2008 at 12:00 am
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