Media General

The broadcaster, whose stations have been off the satellite service since Oct. 1, tells the FCC that taking the Dish complaint contains false statements and granting it “would be the worst possible outcome for Dish customers and Media General viewers across the country.” And it asks the FCC to consider “appropriate actions for Dish’s abuse of the commission’s processes and for its misrepresentations to and lack of candor before the commission.”

As they said they would last week in the wake FCC approval, Media General and Young Broadcasting closed on their merger Tuesday. The combination creates a mega-group with 31 stations operating in 28 markets, reaching 16.5 million, or 14%, of U.S. TV households. On the pro forma basis, the merged company had 2012 revenues of $605 million.

Media General and Young announced the merger last June and the FCC OK’d it this afternoon. The combination creates a mega-group with 30 stations operating in 27 markets, reaching 16.5 million, or 14%, of U.S. TV households. On the pro forma basis, the merged company had 2012 revenues of $605 million, including approximately $115 million of political revenue.

Shareholders voted to approve the merger announced in June. The merged company will retain the Media General name, continue to be traded on the NYSE and will remain headquartered in Richmond, Va.

Shareholders of Media General will vote this week on a proposed merger with New Young Broadcasting that will expand the Media General’s broadcasting portfolio while also dramatically changing its ownership structure. If the deal is approved, it will mark the first time that J. Stewart Bryan III and his family won’t control the company.

Drop is due to lack of Olympics and political advertising; factoring that out, core local and national sales increased 7.6%. Retrans money grew 41%, while digital revenue was up 21%.

Dish Network formally appealed to the FCC to intervene in its retransmission-consent feud with Media General — whose TV stations in 17 markets have been dark on the satcaster since Oct. 1 — charging that the broadcaster has failed to negotiate in good faith.

“Providing our viewers with important weather and safety information during storms is an integral part of our responsibility to our local communities,” said George L. Mahoney, president-CEO of Media General.

Media General’s WNCN Raleigh, N.C., created a website designed to tell viewers its side of the company’s retransmission consent dispute with Dish Network. The website is an example of the viewer education efforts being conducted by all of Media General’s stations during the impasse.

In the latest blackout to hit the pay TV biz, Dish Network customers lost access to 18 stations run by Media General at midnight Tuesday, after the parties couldn’t work out a deal.

Media General’s Tampa, Fla., NBC affil says the satellite service’s subscribers will lose its signal if a new retransmission consent contract isn’t signed by midnight, Sept. 30.

For TV broadcasters, newspapers and radio stations, a truly cross-platform CMS that can easily cross over legacy lines and integrate disparate systems and workflows is the grail. A future in which media companies become multimedia organizations may be closer than some think. “Those barriers are coming down,” says WorldNow’s Craig Smith. “The industry needs to break down those barriers.” Part three of a three-part special report. Read the full report here.

Local newspapers and broadcasters today are seeking content management systems that are faster and more complex than ever before. And while vendors are constantly developing new products to keep up with evolving demands, the industry is facing contraction. “There are just too many players, and nobody is really big enough to have any control,” says Internet Broadcasting’s Elmer Baldwin. “There are some that just aren’t going to survive.” Part two of a three-part special report. Read part one here

The owner of WHTV Lansing, Mich., says the merger between Media General and Young Broadcasting shouldn’t be approved until the commission determines that management agreements involving Young in Lansing pass muster.

Overall revenue was off just 1.3% with increases in retrans and digital revenues nearly offsetting the sharp 86% decrease in political advertising and the weak core spot returns. Retrans was up 38%; digital, 17%.

Facing a June 30 deadline, Media General and Dish Network reached an agreement preventing the possible blackout of 17 stations on the satellite operator. The station group has agreed to give Dish a 90-day extension on the retransmission consent agreement scheduled to lapse over the weekend as negotiations continue.

Industry analysts think the move, which will give Media General 30 network affiliates across 27 markets reaching 14% of U.S. TV households, makes a lot of sense. “It’s nothing short of a great deal,” says Barry Lucas, SVP-research at Gabelli & Co. “It’s a home run for them.”

The combined company will own or operate 30 network-affiliated TV stations across 27 markets reaching 14% of U.S. TV households.

Media General sold off its newspapers a year ago this month and now the refocused company, feeling lighter and more opportunistic, is putting its energy into offering digital services to SMBs; and its newspaper past gives the company an edge.

However, a large drop in political money was mostly offset by a 55% increase in retrans fees and an 18% gain in digital revenue.

Recently named CEO George Mahoney got to announce strong 4Q and full year financial results for the pure play that shed its newspaper holdings. He explains why, even taking out last year’s political windfall, those results bode well for the company’s future performance. He also discusses his stations’ growing emphasis on locally produced programming, its two-pronged mobile strategy, digital marketing services and a surge in retransmission consent revenue.

The expected decrease compared to 2012 is due to lower political ad money, but CEO George Mahoney told analysts on Thursday that retrans money will be up 50% and Super Bowl advertising on its CBS affiliates will be a boost. In addition, Mahoney predicted that company’s digital business “will grow at a better than industry rate.”

The total of $108.7 million was driven by political, rebounding automotive and a 84% increase in retrans fees. Core local and national advertising revenues, excluding political, increased 4%.

On Wednesday, the TV and digital media company’s WFLA Tampa, Fla., launched its new website using the WorldNow system and will roll out the new content management system at its 17 other TV sites during the first quarter.

“The monumental change away from the newspaper business will enable us to focus on platforms with strong growth potential including the appeal to younger demographics,” said George Mahoney, Media General’s chief operating officer.  The 2012 revenue picture was bright, with this year’s contentious political campaign proving to be a boon, bringing in $64 million. The Olympics also provided a healthy boost as did a 75% increase in retrans  revenue (about $37 million) and an 18% rise in digital revenue  ($10 million).

The group’s stations in seven markets raised cash and supplies through phone banks and telethons to help flood victims and the American Red Cross.

Media General President-CEO Marshall Morton, who is retiring at the end of the year, had a number of positives to report to analysts now that his company has become a pure play TV broadcaster. One was that the company is poised to see 25%-28% revenue growth in the year’s final quarter.

The gain to $93.8 million is powered by a 45% boost in automotive as well as political, retransmission consent fees from cable and satellite and website ad revenue.

Media General CEO Marshall Morton: “With this transaction, we complete the transformation of Media General’s business model to one focused on broadcast television and digital media. We believe our future prospects are strong, based on operating 18 top-ranked local television stations in growing and important markets, mostly in the Southeast.” The company has revised its political ad revenue estimate for 2012 upward to $57 million-$58 million.

Marilyn L. Hammond becomes VP-broadcast sales and marketing, while Andrew J. Lobred has been named VP-digital media.

President-CEO Marshall N. Morton to retire at year end. The board elects George L. Mahoney as his successor. Mahoney has been responsible for Media General’s central broadcast television operations, including master control, traffic and graphics, as well as its digital media and mobile operations.

Media General — “smaller, more focused” after selling its newspapers (except the Tampa Tribune) to Warren Buffett — is dismissing 75 employees today.

When Media General’s Augusta, Ga., ABC affiliate WJBF took management control of Schurz’s NBC affillate WAGT in 2009, one of its goals was to maintain the distinct personality of WAGT. So, when Media General moved the duopoly into a renovated Barnes & Noble bookstore last fall, each station got its own newsroom and studio. Although the gear is the same, the on-air products are not.

In light of Media General’s new focus as a TV company, CEO Marshall Morton says it’s more likely his company will look for more JSA/SSA deals. Those, he says, are “a good way to extend our reach in the marketplace, particularly with respect to news and sales power, without added capital. I also see us pushing hard on the digital front, where it doesn’t take bricks and mortar to gain new market share.”

Higher retrans fees and political revenue, along with strong gains in local, national and website sales, drive revenue to $84 million.

The company, which recently shifted its focus to its television stations after selling its newspaper properties to Berkshire Hathaway, has replaced its current market structure of five geographic regions with a new structure of two geographic regions to be headed by Jim Conschafter and John Cottingham who become vice presidents.

Media General’s WSLS Roanoke, Va., will remain on Cox Communications cable after Cox reached an agreement late yesterday with the station’s corporate owner just hours before a retransmission contract was set to expire.

Media General CEO Marshall Morton says that once the company realized the declines at its newspaper assets weren’t due to the recession, it became clear they had to be sold: “The banks who had lent us the money no longer wanted to lend to media companies. They just don’t have confidence in newspapers. You can talk until you’re blue in the face about the value of newspapers in communities, but if you can’t get capital ….”

Media General says that it will pull its Roanoke, Va., NBC affiliate WSLS from Cox Communications subscribers unless the MSO agrees to increased fees for retransmission consent. Cox’s contract with the station expires on May 31.

The $142 million deal “accelerates the timing of our strategy to focus on our broadcast television business and its future growth opportunities, including digital content and mobile DTV,” said Media General CEO Marshall Morton