KGMB - KHNL - KFVE "shared services agreement"

[DaleP]

Re: KGMB - KHNL - KFVE "shared services agreement"

So neighhbor island OTA viewers, what is your reception currently like for KFVE and KGMB the way it is presently set up?

I don't have a digital tuner, but the KFVE presence on Maui is a translator on Channel 27 (which I believe is still analog). The KGMB satellite on Maui is KGMV, which is digital channel 24. Will the programming be swapped on these, as well? We probably won't know these details until we see the FCC application.

As for the channel switch on Oahu, with digital in the picture, the traditional channel numbers have little significance anymore. Nevertheless, it seems silly to make the change when you have been selling yourself for years as KGMB-9. Why confuse people?

Even though KGMB has the stronger product, larger audience, and richer tradition, Raycom's calling the shots in this deal. Apparently, they'll do what want.

But, when we hear the jingle, "One of the good things about Hawaii is wonderful KHNL", we'll know they've really gone too far.

[Ninja]

Re: KGMB - KHNL - KFVE "shared services agreement"

Looks like the call letters between KFVE and KGMB will be swapped along with the programming from each channel.

KGMB will move to Channel 5 with the news and CBS programs.

KFVE will move to Channel 9 with MyNetwork TV and UH Sports.

I don't like it.

Erika Engle writes about it this morning.

Execs explain TV swap, but some see it as blurry



Seamless? I think seamless will be to leave all programming as is with the same channels we have known for years.

I think it is appalling to move KGMB's call letters and programs to Channel 5.

This will create problems for OTA viewers as I think Channel 5's current digital penetration is not as great as Channel 9. Especially on the neighbor islands.

Is CBS programming and the Channel 9 News worth sacrificing for UH Sports and MyNetwork TV? Remember not all of the UH Sports are shown for free. The best events (like nearly all the football games) are PPV!

So neighhbor island OTA viewers, what is your reception currently like for KFVE and KGMB the way it is presently set up?

There is still lots to this story that is unknown, whether it's still to be decided or release to the general public.

But I'll make some guesses as to the some of the questions:

Essentially, KGMB's "intellectual property" is being transfered to Raycom, ditto with KFVE to MGC...who basically becomes a silent owner allowing Raycom to run KFVE as well.

As far as KGMV and KGMD, they are satellite stations and thus can continue to broadcast KGMB's signal on the Neighbor Islands, none of the Honolulu stations Ad-sub on the outer islands so it's a zero-sum game(although why they don't is an interesting question).

KGMB, KFVE and KHNL will all share the same tower on Palehua Ridge, when completed all three will have new transmitters with power increases so it's to early to tell what the OTA effect on Oahu will be. The move of KGMB's transmitter has been in the works for almost a year, so merger or not it was going to happen. KHET also will increase it's power at it's transmitter at Palehua as well.
Side note: KHET's problems on Oahu are part of a national issue that DTV stations that broadcast on a VHF frequency are having. The FCC at this point is allowing VHF stations to increase power, but it doesn't seem to be working and there are rumblings that the FCC may have all stations vacate VHF and have all stations broadcast on UHF.

This also affects KHON, which uses KGMB's tower to broadcast it's digital signal. With KGMB's tower slated to come down KHON must relocate it's transmitter as well.

As far as the news end of the deal with a little bit of tweaking there could be more news options, not less available to viewers.
Example:
KGMB runs it's local news at 5p and 6p, CBS Evening News at 5:30p
KHNL runs it's local news at 5:30p and 6:30p, NBC Nightly News at 6p.
You basically end up with a 2 hour block of local news without directly competing against yourself.

Since KGMB has a stronger news brand than KHNL, I would rename K5 News as "KGMB 9 News" on K5 at 9pm using KGMB's talent. Ditto with "Sunrise", run it from 4:30a-7a on KGMB, then from 7a-9a on KFVE.
On the weekends due to sports commitments on both KGMB and KHNL you could end up with using the same talent on both stations and not compete against yourself.

The other bonus is that you would expect KGMB to join KHNL/KFVE in offering it's news in HD since they will all be housed in the same building. Ditto on the sales side, since now they could offer local ad's in HD on 3 stations.

[mel]

Re: KGMB - KHNL - KFVE "shared services agreement"

Looks like the call letters between KFVE and KGMB will be swapped along with the programming from each channel.

KGMB will move to Channel 5 with the news and CBS programs.

KFVE will move to Channel 9 with MyNetwork TV and UH Sports.

I don't like it.

Erika Engle writes about it this morning.

Execs explain TV swap, but some see it as blurry

The impending swap of call letters and programming between KGMB-TV and KFVE-TV is described as a way to provide a seamless transition for viewers.

Skeptics, media watchdogs and at least one attorney versed in Federal Communications Commission regulations see a different picture.

Seamless? I think seamless will be to leave all programming as is with the same channels we have known for years.

I think it is appalling to move KGMB's call letters and programs to Channel 5.

This will create problems for OTA viewers as I think Channel 5's current digital penetration is not as great as Channel 9. Especially on the neighbor islands.

Is CBS programming and the Channel 9 News worth sacrificing for UH Sports and MyNetwork TV? Remember not all of the UH Sports are shown for free. The best events (like nearly all the football games) are PPV!

So neighhbor island OTA viewers, what is your reception currently like for KFVE and KGMB the way it is presently set up?


Edit: More on the change at this Honolulu Advertiser article:

KGMB says financial losses prompted consolidation deal

So it seems KGMB is the station that was losing money.

The more I think of it, the more this deal is in Raycom's favor as they will get direct ownership of a CBS affiliate through the swap of call letters and programming.

In the end Raycom will control stations with NBC and CBS content while the other owner gets the crumbs, which they don't seem to mind.

[LarryPrice]

Re: KGMB - KHNL - KFVE "shared services agreement"

Maybe Erika can elaborate, but what was meant by KGMB and KFVE "swapping call letters?" Is actual control (or ownership) of KGMB and KFVE being changed? The press release is confusing, because it states that after the call letters are swapped, dial positions will remain the same.

Here's my understanding of the situation (which could be completely wrong!):

Currently, MCG owns KGMB. Raycom owns KHNL/KFVE. After the shakeout, MCG will own KFVE, and Raycom will own KHNL/KGMB. All three stations will continue to operate much as they do now, with the same network affiliations and programming, except for news. Raycom will run the news opearations for all three channels. Just as KHNL and KFVE currently use one news operation originating at KHNL's studio, the new setup will have a combined KHNL/KGMB news operation, again originating from KHNL's new studio, providing the news for all three stations, most likely simulcast on all three (KFVE could still run news at oddball timeslots like it does now, but that could change too).

That's my understanding based on everything I've read and heard so far. I have no inside info whatsoever. Take it with a grain of salt and use at your own risk!

[Kalihiboy]

Re: KGMB - KHNL - KFVE "shared services agreement"

Though they were syndicated in the early to mid 60's KTRG (now KHNL) had 30 minute news broadcasts with anchors Jim Elliott, Wayne Collins and others like Joe Rose. In 1967, the call letters changed to KIKU and with that more of an emphasis on Japanese broadcasting programs. In the mid 1970's I think it was when KIKU revived the news, albeit with short 5 minute newsbreaks during movies and shows. As noted the late Larry Zerkel and Ron Wood would deliver those short newsbreaks well into the mid 80's. Remember "Entertaining Channel 13".....

Aj

[Kalihiboy]

Re: KGMB - KHNL - KFVE "shared services agreement"

Thanks for the link, Kimo. Anita still looks great...at 83. I can't imagine still driving to work at 83 but I so admire that she kept the passion for what she was doing. Also found a photo of her and her husband, Allan, at the retirement party. I worked with Allan for many years but haven't seen him in close to 20 years. Memories!

Anita started working for KGMB a few years BEFORE Bob Sevey's storied 20 year run in 1966. I really liked her, she was one of my favorite people I've ever come across at all of the stations, we would chat about the old days and she always had a smile on her face, you could tell she really loved her job.

When she retired the station threw a party for her with current and past staff attending. In addition to the article link shown, KGMB interviewed her and showed clips from the party, it might still be on the KGMB website. I know it sounds cliche, but really Anita was one of the good things about Hawaii...

Didnt her husband Allan work on the Magnum PI series at one time?

Aj

[KGMB9]

Re: KGMB - KHNL - KFVE "shared services agreement"

Hmm, lot's of speculation and conspiracy theories.

Though I won't answer here, if you have any questions feel free to go to http://Facebook.com/KGMB9 and post them on the wall. I'll answer as well as I can. For those that know me, you know that I'll be honest with my answers and won't spin things. For those that don't, you may be surprised.

The reason I won't answer here is that I feel more comfortable posting in our Facebook environment than here with the sensitivity of the situation.

The caveat is that we're still ironing out details that won't be solidified for a bit, so the answers may not be complete or a little vague.

Mahalo,
Jared I. Kuroiwa
Director of Interactive Strategy
KGMB9.com

[Frankie's Market]

Re: KGMB - KHNL - KFVE "shared services agreement"

Even though this is "only" 68 layoffs (a significant number anyway), this agreement points to the larger problem of Hawaii's weakened economy.

News operations have always served an intermediary role between the community (readers or viewers) and businesses. This recession, as well as the Internet and other forms of communication, has diminished this traditional role.

Well, if you want to talk about traditions in Hawaii, do keep in mind that for many, MANY years in this state, we have had only had three local news stations. Oh sure, there were the occasional upstarts (KSHO w/ Jack Hawkins & Cynthia Yip, KIKU w/ Larry Zerkel and Ron Wood). But nothing that matched the size, scope, and the longevity of the KGMB-KHON-KITV triumverate....... until KHNL finally broke through in 1995. And even then, the fledgling News 8 team went through more than its share of trials and tribulations during the early going.

But in the mid '90s, Hawaii was just coming out of a recession and the economy was on solid footing for many years afterwards. Of course, island tourism was affected by 9/11 and the SARS epidemic. But those economic troughs were relatively brief. From the time KHNL news started all the way up until last year, the local economy was growing and the market was able to sustain the 4 news operations. But not anymore.

The layoffs and cutbacks that are occuring in both govt. and the private sector are unmistakeable signs of a shrinking economy. And why should it not affect the revenue that sustains the TV news departments? I feel sorry for those people who may be out of a job with this KGMB-KHNL/K5 consolidation,...... but TV news is, lest we forget, a business.

[DaleP]

Re: KGMB - KHNL - KFVE "shared services agreement"

Maybe Erika can elaborate, but what was meant by KGMB and KFVE "swapping call letters?" Is actual control (or ownership) of KGMB and KFVE being changed? The press release is confusing, because it states that after the call letters are swapped, dial positions will remain the same.

Anyway, good luck to everyone involved in this. We have friends at both KGMB and KHNL and wish them well.

Consolidation is now going to be hitting TV just like it hit radio a few years ago. Used to be, when one radio station let you go, you had plenty of other places where you could apply. Consolidation narrowed those options considerably in radio...now it looks like it's going to do the same thing to TV.

Fewer jobs.

Fewer news choices.

Fewer advertising choices.

Seems like the only ones who win in this are the station owners.

[Media Guy]

Re: KGMB - KHNL - KFVE "shared services agreement"

Any particular reason why specifically those stations, KGMB AND KHNL, had to be part of the shared-services agreement? Was it because KHNL had lowest revenue in the Honolulu market, whereas KGMB had the highest revenue in the Honolulu market? ...or was it like KGMB had to "save" KHNL from losing their news operations? Why not KITV and KHNL, or KHON and KHNL? What were the factors as to which stations had to be involved in the shared-services agreement?

MCG Capital, The company that bought KGMB, paid $40 million for it. They just wrote off $6.5 million in losses on the station, and they sold the property KGMB has owned for 57 years for $12.5 million and now pay rent for the first time ever (about $60,000 a month). Plus the station is about several hundreds of thousand of dollars a month below the projected income the owners thought they would have. They've lost over $20 million of value on their investment in less than three years.
MCG doesn't own any other stations and they wanted out. This is more to save the future of KGMB. KHNL/K5 are owned by Raycom, a very large media company with much greater resources.
It isn't KGMB or its management. Its the ownership group that is in financial
trouble.

http://bizbites.honadvblogs.com/2009...ation-at-kgmb/

[tutusue]

Re: KGMB - KHNL - KFVE "shared services agreement"

Thanks for the link, Kimo. Anita still looks great...at 83. I can't imagine still driving to work at 83 but I so admire that she kept the passion for what she was doing. Also found a photo of her and her husband, Allan, at the retirement party. I worked with Allan for many years but haven't seen him in close to 20 years. Memories!

[Kimo]

Re: KGMB - KHNL - KFVE "shared services agreement"

Evidently many missed the Anita-retires story from the Star Bulletin:

http://www.starbulletin.com/news/200..._47_years.html

[TuNnL]

Re: KGMB - KHNL - KFVE "shared services agreement"

Anita was asked to retire in June, and did so. I understand that she did not want to go.

Wow, that’s so sad! Has it been that long since I talked story with the sweet lady at the front desk? Anita was the rock of that operation. I guess June was the beginning of the end for sacred cows.

[genepark]

Re: KGMB - KHNL - KFVE "shared services agreement"

Even though this is "only" 68 layoffs (a significant number anyway), this agreement points to the larger problem of Hawaii's weakened economy.

News operations have always served an intermediary role between the community (readers or viewers) and businesses. This recession, as well as the Internet and other forms of communication, has diminished this traditional role.

If businesses want to continue to advertise, they no longer have to piggyback their products onto news. There are cheaper forms of announcing your product.

In any case, bad news about news is bad news for everyone.

[genepark]

Re: KGMB - KHNL - KFVE "shared services agreement"

Any particular reason why specifically those stations, KGMB AND KHNL, had to be part of the shared-services agreement? Was it because KHNL had lowest revenue in the Honolulu market, whereas KGMB had the highest revenue in the Honolulu market? ...or was it like KGMB had to "save" KHNL from losing their news operations? Why not KITV and KHNL, or KHON and KHNL? What were the factors as to which stations had to be involved in the shared-services agreement?

That's something you could probably only find out behind closed doors.

But besides Hearst (who owns KITV), Raycom is the largest parent company out of the four. Although 9 was leading in the ratings, Raycom is still in a position of authority because of how large the corporation is.

Hearst has always been fiercely independent in markets, so a KITV "sharing" is not likely. And KHON just recently left a similar agreement with 9, because it wasn't working out.

But really I'd only be speculating wildly. It could really be either or both reasons that you've stated.