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Starkman: TV Merger Likely Means Another Blow to RI Newsgathering

Monday, April 21, 2014


Channel 10’s parent just bought Channel 12’s parent. Does it matter? You bet it does.

Driving the deal is a frenzied bull market national for local TV stations that, paradoxically, is boosting values while placing increasing productivity pressures on local TV news operations and diluting the quality of local news.

Last week, as we’ve all heard, local TV giant Media General Inc., based in Richmond, Virginia and the owner of WJAR Channel 10, unveiled a $1.6 billion deal to buy LIN Media LLC, a smaller Providence-based rival that includes WPRI Channel 12 in its portfolio. The deal creates the nation’s second-largest broadcast TV owner in the United States, with 74 stations as of now, reaching nearly a quarter of the country’s TV watching audience.

For the moment, the deal would leave Providence with two of its main local TV news providers owned by a single company. And while that is not strictly forbidden under the famously lax regulatory culture fostered by the Federal Communications Commission, even the two participants in the deal recognize that media consolidation in recent years has gotten so far out of hand that the newly combined company will be obliged to shuffle its portfolio to shed one of its Providence stations, as well as those in four other markets where the new company owns more than one station.

“The day we announced our merger with LIN Media, … we knew we would have to swap or sell certain stations,” Lou Anne Nabhan, a Media General spokeswoman, says in an email. A LIN representative didn’t reply to a request for comment.

Huge money

But even so, such is the money flowing into local TV that the deal figures to be immensely profitable for the stations’ owners, whichever Providence station is eventually discarded. As a measure of the market’s enthusiasm for the deal, the share prices of both media companies jumped on news the merger. Normally, shares of the buyer fall or hold steady on merger deals as investors try to figure out whether the deal will be profitable and assess how long the buyer will need to recoup its investment. In this case, Media General shares jumped 12 percent, even thought it was paying a premium -- 23 percent -- for LIN.

The profits here are built in.

The Media General/LIN deal is part of a huge consolidation wave among local TV stations. Last year, 290 stations changed hands at a total cost of $8 billion; that’s compared to 95 stations and a $1.9 billion from the previous year, which was considered busy at the time, according to the Pew Research Center.

Driving the market is a spiral of consolidation among big cable operators, who buy the content that local TV stations produce and are their biggest customers. Earlier this month, Comcast, the cable behemoth based in Philadelphia, announced a merger with New York’s Time Warner valued at $45 billion, a huge deal that will leave the company in control of nearly a third of the nation’s cable customers. The sheer size of these companies give them big leverage in negotiations with TV stations over so-called “retransmission fees,” paid to use the TV station’s content, including its news programs.

Consolidation spiral

Companies like Media General and LIN argue that they need size to push back against cable companies to fund local news. Cable companies argue they need size to compete with new entrants like Netflix and Amazon, which are offering content through streaming and downloads.

Left out in the cold, as usual, is the public, which relies on robust local operations reporting the news. Despite protestations by station owners that combining stations into larger companies will create efficiencies that will allow them to beef up local newsrooms, the opposite has been the result. While the total number of people working in local TV news is high historically, the same is true for the amount of news on the air, which has grown faster than employment.

The amount of news on TV is 46 percent higher than in 2003, according to Pew, as newscasts fill more hours on weekends, earlier times slots in the evening and morning, and further stretch available news resources. The number of stations airing news at 4:30 a.m., for instance, rose 159 percent in 2013, from the year earlier, to 634 stations, from 245.

What’s more, the number of local news stations that actually originate news has been decreasing, down 8 percent since 2005, Pew says. Now a fully quarter of US TV stations do not produce programs themselves, instead relying on an array of shortcuts to get around the expense of newsgathering. In some markets, ostensibly competing stations share reporters, content, equipment, even anchors. In Hawaii, for instance, two stations’ entire broadcast is identical, with the only difference being the call letters appearing in the corner of the screen.

“One-man bands”

Another consequence is fewer hands involved in reporting the news. The number of so-called “one-man bands” –reporters carrying backpacks who shoot their own stories -- has been rising for years, according to the Radio Television Digital News Association.

Now, a majority of stations in markets around Providence’s size (the city is the nation’s 53st largest market, according to Nielsen, use one-man bands at least some of the time:













What will happen now in Providence is anybody’s guess. But the point is that consolidation nationally has led to a dilution of new gathering strength locally, even as values of the stations soar.

And don’t let anyone tell you differently.

The Wrap blog asks -- “Will Media General-LIN Merger Lead to More Local TV Job Losses?” -- but the question is pretty much rhetorical.

This matters because, even today, more Americans get their news from local TV than any other source. In a Pew survey, 72 percent said they watch local TV news sometimes or often, while only 11 percent said they never watched it.

Filling a void

And it’s a particular problem in Rhode Island, where, unlike other markets, local TV news has been an increasingly important part of the news environment -- most especially the two stations involved. WJAR, a Rhode Island institution dating to the postwar era, has long cast itself as a serious reporting shop – to the point that it famously dismissed one of its night-side reporters, Julie Tremmel, after she authored a couple of reporting stunts deemed by some to be overly flamboyant. But this winter, its long-time investigative chief, Jim Taricani, retired, dealing the station more than a symbolic blow. Its future direction is far from clear.

Meanwhile, WPRI has come on with aggressive coverage of politics and media in a bid to challenge WJAR’s primacy. What will become of that effort under the new regime – whether with Media General or somewhere else -- is also unknown.

Both stations have sought, with some success, to fill the reporting void left by the decline of the Projo, where, as reported, revenues have plummeted by half over the last decade and a much faster rate than the national average and the reporting staff, once a small army, is now a platoon. The paper has been on the block since December – a sale its owner hoped to have completed by the end of the month. The clock is ticking, and the slowness of the process indicates that buyer interest is less than robust – another not-particularly good sign.

It is ironic – one is tempted to say, perverse -- that a weak market for newspapers has meant a thinning out of the local reporting corps while a robust market for TV news also augurs the exact same thing on the TV side.

Do not adjust your screen. Your TV is okay. But there is indeed something wrong with this picture.


Related Slideshow: Rhode Island’s Changing Media Landscape

Radio, print, television and digital - the faces in Rhode Islands's media has changed drastically over the past months... Let's take a look at some of the biggest moves:

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Bob Kerr

The long time Providence Journal columnist Bob Kerr was sent packing by the new ownership group.

The unceremonious dismissal ended the tenure of the Projo's only true news columnist. 

Kerr was talented and often controversial. 

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Howard Sutton

The long-time publisher was Belo's man in Providence. Howard Sutton was the man that implemented the changes that Dallas wanted to try and make the company more efficient and more profitable.

The results were dismal. Maybe no newspaper in the country lost a higher precentage of ad revenue than the Projo over the past decade.

He was the face of the paper in the community. 

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Andrew Gobiel

Andrew Gobeil has been named campaign manager for Republican candidate for Attorney General Dawson Hodgson.
Gobeil began his media career covering politics as a teenager for a Cape Cod radio station. He has served as one of the youngest NPR affiliate news directors in the country, Washington editor and national correspondent for a television station group, and managing editor and host of a statewide public affairs program.  
Gobeil was the morning co-anchor at Providence’s ABC-TV affiliate and co-host of a morning news program on WPRO radio.  He is currently working on a non-fiction book about the journalism business. 
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Rick Daniels

Rick Daniels has joined GoLocal24 as Chief Operating Officer.

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Daniels then went on to play a key role at Empirical Media Advisors based in New York, focused mainly on Tribune Publishing, where Emprical’s co-founder and CEO, Jack Griffin, recently took the role of CEO.

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Fred Campagna

Fred Campagna has joined FOX25 in Boston.

Before Campagna began working at FOX25, he served as the Chief On-Air Meteorologist at ABC6 for fourteen years.

After leaving ABC6 in July 2012, Campagna launched his own digital weather platform, Right Weather.


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Karen Meyers

WLNE-TV has fired anchor Karen Meyers. She had been with the station since 2011.

Meyers had anchored the 6 p.m. and 11 p.m. news with John DeLuca. Sources say station management opted not to renew her contract and decided to go in another direction.

Before Meyers joined ABC6, she was a reporter/anchor with New England Cable News and was a reporter in Washington, DC.

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Felice Freyer

According to RIPR reporter Ian Donnis, Providence Journal's Health Reporter is leaving.  Felice Freyer has been the sole reporter covering Rhode Island's largest businss sector.

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Her departure follows Phil Marcelo who recently left the Projo for AP in Boston.

Editor's note: An earlier version incorrectly had RIPR reporter Scott MacKay as breaking the story.

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Flo Jonic

Veteran radio reporter Flo Jonic recently was fired by RINPR after she filed complaints against the station  for gender-based pay discrimination.

Jonic is a 30 year veteran of New England news radio.

In her charge filed in February, Jonic wrote, "I believe that I have been discriminated against based on my sex by my employer," and referred to the difference in her pay and that of RIPR reporter Ian Donnis.

"Currently, [reporter] Ian Donnis earns at least $75,000 a year, while I make $51,000 per year. We perform the same duties, and I have 32 more years experience than he does," wrote Jonic in her complaint.

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Phil Marcelo

After a seven year stint reporting for the Providence Journal's state house bureau, Phil Marcelo left the paper to take a reporting gig with the Boston office of the Associated Press.

Hailing from Long Island, New York, Marcelo came to ProJo in 2006, and covered everything from regional news, to Providence City Hall and the Statehouse. Marcelo's departure was first reported by WRNI's Ian Donnis.

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Julie Tremmel

Formerly a nightly news reporter for WJAR, Tremmel was fired from the "Team You Trust" after two clips, one of her performing on-air handstands, and the other offering tips on what to do during a bear attack, went viral.

The video became an internet sensation, but long-time Channel 10 newsman Jim Taricani called Tremmel’s antics “a smudge on our station's reputation.”

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Jim Taricani

A long-time staple of Channel 10’s news team, Taricani announced plans to retire after over three decades with the station. 

Taricani has won 5 regional Emmy awards, an Edward R. Murrow award for investigative journalism and a Prestigious Yankee Quill Award from the New England Newspaper Association.

He was convicted to six months in prison in 2004 for refusing to reveal a source, and is the youngest person ever to be inducted into the Rhode Island Hall of Fame.

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John DePetro

WPRO talk show host has come under fire for comments he made on air regarding women. Leading union organizations have called for DePetro to be fired. 

Most recently, he has been on announced suspension.

DePetro apologized for his comments.

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Helen Glover

Former star of the reality show Survivor, turned talk radio show host is out. Helen Glover departs and is replaced by radio Veteran Ron St. Pierre, who only months earlier was let go by 630 WPRO. St. Pierre is a radio Hall-of-Famer and former top sports anchor on WPRI-12.
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Mike Stanton

Mike Stanton, the remaining reporter from the Providence Journal's once storied investigative team, is leaving Fountain Street for a teaching job at the University of Connecticut.
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Dean Starkman

GoLocal named Pulitzer Prize-winning investigative reporter Dean Starkman as a contributor and editor-at-large.
"Dean Starkman has a tremendous track record in financial, media, and investigative reporting. His work at the Wall Street Journal as a reporter and as an editor and writer at Columbia Journalism Review (CJR), coupled with ground-breaking investigations of public corruption for The Providence Journal, is unsurpassed in the region," said Josh Fenton, Co-Founder and CEO at GoLocal24, the parent company to GoLocalWorcester.com.
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Karen Bordeleau

Karen Bordeleau takes over for Tom Heslin as Executive Editor for the Providence Journal.
Before joining the newspaper in 1996, she worked at the Kent County Times and the Woonsocket Call. 
She is a graduate of Northeastern University and a Rhode Island native.
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Bob Whitcomb

Bob Whitcomb has been the editor of the editorial page of the Providence Journal since 1992 and Vice President since 1997. 
His book, "Cape Wind" unveiled the business and political story behind Jim Gordon's effort to build a wind farm off of Cape Cod.
Prior to being a powerful voice at the Providence Journal, Whitcomb served as Financial Editor at International Herald Tribune.
He is slated to leave later this year according to RI NPR.
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Tom Heslin

Managing Editor of the Providence Journal, Tom Heslin, is retiring. 
Heslin who has been a journalistic leader of the Journal since the 1990's, led the paper's team the one their last Pulitzer Prize in the early 1990's and had to implement a series of staff cuts during the past decade.
Widely respected by journalists, Heslin has recently suffered from health issues.
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Tara Granahan

The former co-host to the morning drive show is now Buddy Cianci's sidekick and co-host on the 3:00 pm to 6:00 pm drive time show on WPRO AM.
Granahan has had a host of assignments at WPRO and is the only woman on air at WPROAM. 
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Connie Grosch

She was the star photographer for the Providence Journal for better than a decade.
Her State House/Political photos made her one of the most influential members of the Providence Journal staff. 
In late 2012, the Providence Journal let her go as part of the latest cost cutting ordered by the home office in Dallas.
In January, she was named press secretary to U.S. Congressman David Cicilline (D-1). She just announced she was leaving the Congressman's staff to return to photography.
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Gene Valicenti

The co-host of Channel 10's 6:00 pm news is now doing double as the host for WPRO's 6:00 am to 10:00 am morning show.
Previously, Valicenti lost his 11:00 pm slot on WJAR.
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Jennifer Jordan

One of the top Providence Journal reporters is leaving not only Fountain Street, but also journalism. 
She was one of the guild members with the least longevity - more than 10 years.
She leaves for Boston-based Opportunity Nation - a not-for-profit.
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Ron St. Pierre

The new guy at WHJJ - he takes over the morning show from the departed Helen Glover.
For decades, Ron St. Pierre has been a key player in the media industry in both local television and radio.
St. Pierre handled sports at WPRI TV, hosted morning drive at WPRO AM, and most recently, was Buddy Cianci's co-host in the afternoon.
(Photo: Alan Levine, Flickr)

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