Hearst-Argyle Television: Commitment to Local On-Air, Online, Mobile and On-Demand

amp160JackMyers Media Business Report sat down with such a leader NYCbased HearstArgyle Television NYSE HTV one of America39s largest independent television station groups which owns and operates twentynine TV stations in twentyfive markets In an exclusive interview we spoke with President ampamp CEO David J Barrett and Vice President Sales Kathleen KeefeWhile HearstArgyle broadcasts to over 20 million households the company is driven by the philosophy that says Barrett quotour business is localquot He explains quotWhat we39ve endeavored to do is leverage the strength of our local brands and the relevance of our stations into digital business opportunitiesquot Keefe adds quotWe39ll try on just about anything in one or two or three of our markets to see if it gained some traction and that can be in Boston Sacramento or Orlando where we have very large sophisticated businesses or it can be in Omaha or Fort SmithFayetteville where we have terrific brands and leading stations but where the cost of experimentation is less and the risk is lessquot And experiment they have HearstArgyle has collaborated with companies that are offering bleedingedge technology and advertising solutions including Spot Runner Sezmi Wide Orbit Backchannelmedia Visible World and Navic It also struck the industry39s first alliance with YouTube and now has thirty channels on the video sharing service as part of a broader multilevel relationship with GoogleThis approach also offers a rebuttal in the face of continued ratings erosion quotWe are redefining what the mass market isquot offers Barrett quotI still think we39ve got a mass market medium in local television In Boston five of the top ten shows in terms of household rating points delivered were local showsquotquotOur TV station brands are extremely strong in their marketsquot maintains Keefe quotand viewers who are looking for trusted places to sort out information are going to our websites to our mobile everywhere we39re goingquotNearly a decade ago HearstArgyle made an equity investment in Internet Broadcasting Systems Inc which produces and manages Websites for each of its TV stations placing it at the forefront of convergence between local broadcast television and the Internet quotThere are efficiencies that we still need to arrive at in terms of integrating contentquot emphasizes Barrett quotintegrating commercial opportunities there and in selling it While we39re just scratching the surface about how to sell digital media these sites represent a significant advance from the business side Look at the numbers yesterday typically we are doing six seven even eight million page views a day on the HearstArgyle TV Websites The challenge is how do we monetize this As a company we39re reallocating resources and making investmentsquotMobile OpportunitiesHearstArgyle is involved in the Open Mobile Video Coalition and sees both the challenges and opportunities in mobile quotWe need one standardquot asserts Barrett quotto make this work well and then it needs to be sold to the people who are manufacturing telephones and distributing telephones It39s an addriven business model but it would enable a distribution opportunity There are 300 million television sets in this country and there39s another 300000 million mobile devices out there that today are not practical to receive TV on In a very short time they will be What an opportunity this isquotTough Love for NielsenKeefe maintains that Nielsen has quotgot to demonstrate that they can execute in a digital world They are not spending enough time really thinking through all the different things they have to take into consideration to accurately measure across platforms and that is absolutely crucial to them moving forwardquot Barrett clarifies quotwe are tough customers for Nielsen but we are looking for solutions I worry that there are too many in the industry that just come to the conclusion that Nielsen can39t do this or that Let39s set our cynicism asidequotSearch A New FrontierHearstArgyle recently set up a keyword selling program in Manchester New Hampshire Keefe found that quotthere is a huge hunger in our customer base for understanding what search is They are local merchants who own businesses and advertising is not their primary expertise so they are relying on the media partners to be able to educate them Now they are all saying 39How do I do search39 Our local customers are recognizing that they can39t buy advertising the same way they are looking for solutions How do they handle digital media Because we typically take the biggest share of their advertising we have a relationship there they trust us and they are looking to us for solutionsquotWCVB BackchannelmediaLast night Boston39s Backchannelmedia successfully began the first phase of a trial with HearstArgyle39s ABCaffiliate WCVB The company profiled here by JackMyers Media Business Report is in the process of testing its platform in anticipation of the February 2009 digital transition quotWe have to test themquot Keefe insists quotand we are willing to use our biggest station We39re buying into Michael Kokernak39s spirit of evangelism Those who want to be successful in the media business in this day and age have to be open to change and riskquot Kokernak reports to JackMyers Media Business Report that WCVB39s Chronicle program Cape Cod39s Hidden Gems was broadcast with seven Backchannelmedia Tokens that were synchronized with program content Icons appeared were clicked and Consumer Portals were updated with links to viewer web pagesMemo to Wall StreetIn response to a Wall Street that39s chronically bearish on the TV station business Barrett contends quotWe39re in a wide range of markets where we39ve got established brands and stations that are fifty to sixty years old In 2006 and 2007 they made record revenues and record profits That39s not an immature business Now we are in some markets that are challenged by this economic climate but we have powerful local media brands TV39s kind of lumped in with quotold media It39s not an old media it39s as vibrant and real as anything out thereBarrett points to the Tuesday of the Pennsylvania Democratic primary on Pittsburg station WTAE quotWe had Dancing with the Stars on we were doing election cutins and we had coverage at 11 o39clock at night It was a fabulous night to be watching TV there The same thing can be said for any market around the country There39s something going on that people care about their local communities And we are unquestionably the mass medium market that is serving that interest Onair online and on demandquotTo communicate with or to be contacted by the executives andor companies mentioned in this column email your request to the JackMyers Connection Hotlineamp160

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Hearst-Argyle Television: Commitment to Local On-Air, Online, Mobile and On-Demand

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