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

  1. #1

    Default KGMB - KHNL - KFVE "shared services agreement"

    The Advertiser will surely update this as the day progresses, but first posting is here about KGMB/KHNL merger - note reference to "swapping call letters," etc. Big changes:

    http://www.honoluluadvertiser.com/ar...ll+be+retained

  2. #2

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

    Hate to correct you, but the FIRST post was actually here:

    http://www.hsblinks.com/mq

    ... and my post-news conference update is here:

    http://www.hsblinks.com/ms

    Naturally there will be more info in my story in tomorrow's Honolulu Star-Bulletin.
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    Default Re: KGMB - KHNL - KFVE "shared services agreement"

    Thanks for your updates Erika!

    I'm interested to know what we, as viewers, will notice on our screens when the change goes into effect? I don't want to have to start watching Ch. 4 for my news broadcasts all the time.
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    Default Re: KGMB - KHNL - KFVE "shared services agreement"

    I sincerely hope for the best for all of those who have to compete for their jobs.

    That must be a horrible experience: To compete for jobs with people whom you may have considered dear friends and ohana.

    This has been coming down the pike for some time so I hope those who knew made some kind of Plan B. I know of at least one who is opting for retirement.

    Having lived through a similar situation only five months ago, I can only offer my condolences and a cold one.
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  5. #5

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

    Tough, sobering news. Probably expected, still hard to hear. I'm hoping everyone involved lands on their feet strong. The video/TV/media guys are praying with you.
    Always check and double check

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

    Quote Originally Posted by anapuni808 View Post
    Thanks for your updates Erika!

    I'm interested to know what we, as viewers, will notice on our screens when the change goes into effect?
    If KFVE can broadcast to Kaunakakai (townside), Molokai OTA, that will get my attention.
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    Default Re: KGMB - KHNL - KFVE "shared services agreement"

    TV stations' pact draws fire
    By Erika Engle

    The shared-services agreement between KGMB-TV and KHNL/KFVE-TV to keep all three stations operating in the throes of the revenue-crippling recession was met with fear and loathing yesterday.

    Advertising revenue for Honolulu's five major TV stations, which is projected to plummet to $48 million this year from $68 million in 2006, prompted the stations to find a creative solution to keep operating, officials said at a news conference.

    ...KGMB and KFVE call letters will be swapped by MCG and Raycom in a pending filing with the Federal Communications Commission.

    KGMB employees received 60-day termination notices yesterday, and those who remain will become Raycom employees.

    All employees will be interviewed to determine both the faces that viewers will see delivering the news and the employees who will keep their off-camera jobs.
    Read the entire article for all the latest details. There will be a lot to be read into the ti-leaves in the coming weeks and months. Watchdog groups are troubled by the consolidation....

    I don't like the changes that may happen to KGMB TV. I think they had a very good news product in the last couple of years, enough to be rated #1 in some time slots and giving the market leader a huge challenge.

    Certainly the merger with KHNL/KFVE is a plus for KGMB in the fact that it gets some top notch tech and a way newer facility when they move to Kalihi.

    It will be sad to see the old KGMB building and broadcast tower go, especially since a new one will/is further away from the metro area and will cause reception problems for those few people who still get OTA signals... the digital drop-off is very pronounced the farther away from the signal you are. Already I cannot get KHET OTA because I guess their tower is far away... same will happen or is happening to KGMB.

    Getting back to the news, certainly the on-air staffs will be changing, downsizing. I think the weather personnel and beat reporters will be the ones most immediately impacted. Some of the morning anchors too I guess. I would think the KGMB Sunrise will continue and the poorly rated KHNL morning news fall by the wayside.

    Dan Cooke is certainly arriving at KGMB at a bad time. He will be right back with his former employer!

    And I am sure a lot of office and behind the scenes tech people will be impacted too. It probably will be quite shaky establishing a unified team if one station's employees feel they are being dominated by the personnel of the other station... I certainly would not want to be working there.

    Is it true the call letters between KFVE and KGMB will be swapped???
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    Unhappy Re: KGMB - KHNL - KFVE "shared services agreement"

    This is truly a sad moment for local journalism. No one can argue that the economic reality of $20 million less floating around in the ad pool is not going to have a devastating effect on our local affiliate broadcasters. But I hope Media Council Hawai‘i will push hard to question the antitrust implications of this deal. History repeats itself? The joint-operating agreement (JOA) between Gannett and Liberty Newspapers Limited Partnership was supposed to be a Godsend for the Honolulu Advertiser and Star-Bulletin to operate out of the same building. Instead, it set the stage for the Bulletin to come within one manapua of shutting down.

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

    "Such an agreement allows the three stations to field the largest number of news professionals, particularly during times of major breaking news or severe weather, providing better coverage of stories impacting the lives of everyone who lives on the islands, and produced on multiple platforms – television, internet and on mobile devices." added McTear.
    I may be skeptical & cynical, but I don't see how firing a bunch of people leads to "field[ing] the largest number of news professionals".

    If he means "otherwise we'd lay them off and never be able to recall them in a hurry", well, sure. But doing more during peak business? It would seem that the first problem during "major breaking news" would be that they can't find enough people & equipment to do everything that they're hypothetically capable of doing now. In other words they'll be able to handle the minimum daily routine, but as soon as something big happens they'll be sucking wind.

    It's not as if laying off all these experienced workers will allow the stations to spend the money to upgrade to fancier equipment (requiring fewer people to operate/maintain) or free up enough salary to hire "better" anchors who are cable of doing the jobs of two Joe Moores for the price of one.

    They're not going to do more with less. They're going to do less with less, and they're hoping that hunkering down will reduce the burn rate or even free up enough cash flow to avoid going into Chapter 11. It would seem more credible (certainly less weasel-like) to emphasize the hunkering-down aspect and stop trying to claim that coverage is going to be somehow "better".

    But, hey, that's just my business perspective. I'm not a big TV watcher. Beyond KHNL-2/Joe Moore I couldn't tell you much more about any of these stations.

    Gosh, there's a thought. Maybe it's not just the recession. Could a lack of viewers and their growing irrelevance be another reason for their declining advertising revenue?
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    Default Re: KGMB - KHNL - KFVE "shared services agreement"

    Here's what I don't get. KGMB9 News folk are doing well, better than their KHNL counterparts in the rating, yet they get the pink slips and have to reapply for the same job under the newly merged news service.
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    Default Re: KGMB - KHNL - KFVE "shared services agreement"

    Quote Originally Posted by Random View Post
    Here's what I don't get. KGMB9 News folk are doing well, better than their KHNL counterparts in the rating, yet they get the pink slips and have to reapply for the same job under the newly merged news service.

    Yes, KGMB has a good news team that has brought them to the top or near top of the ratings (depending on the timeslot). KHNL has never been higher than #4 or maybe slightly above that. They've been doing news now for more than 10 years since slightly before they became an NBC station in 1996.

    What KGMB probably did not have is the heavy investment in technology that KHNL made in the past year. And KHNL has a way newer studio space vs. KGMB's old facility on Kapiolani. Also the firm that owns KGMB is not a broadcaster so I guess they did not want to make any capitol investments.. plus I think the present KGMB facility is too old. small and cramped.

  12. #12

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

    A friend of mine mentioned to me that consolidating stations is something they've been doing for awhile on the mainland. For example this station http://www.kcoy.com in central California is both a CBS & Fox affiliate and has been producing one combined news for years. I'm sure there are many more stations dotted throughout the smaller markets on the mainland that do this as well.

    It's just sad to hear of the layoffs that will come out of this. I know that the people who put on the news for us on a daily basis are all multi-talented, extemely hard workering individuals. They just make it look easy! I hope they all get new jobs quickly!

    I watch KHON news exclusively but I will be following this story closely.
    Last edited by HaleiwaDiva; August 19th, 2009 at 08:56 AM.

  13. #13

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

    I would particularly hate to be a meteorologist for either station; it seemed to me there has been a game of one-upsmanship going on among all the stations for the past couple of years with that position and I was convinced it was overkill.

    Sports is another area where I'd be looking to my hole card.

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

    I wonder if KGMB receptionist extraordinaire, Anita Brady, will opt for retirement or if the new management of the combined operation will be on it's combined knees begging her to stay! She took that job to a new level...the true voice of KGMB, imnsho!

  15. #15

    Default 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.

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

    There needs to be a statue of Anita, complete with a welcoming audio loop of her voice, outside the front door of the new, combined facility!

    Either Oceanic is having cable problems this morning (at least at my end of Waikiki) or KHNL's technical staff is showing their displeasure over the recently announced agreement!

  17. #17

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

    Met Anita once. Great person. If true, sad to hear she was asked to retire.

    I'm not up on the recent history...but wasn't the KGMB owner looking to sell the property or something like that? Is that why the operation needed a new "home"?
    Always check and double check

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

    Quote Originally Posted by Video Guy View Post
    Met Anita once. Great person. If true, sad to hear she was asked to retire.

    I'm not up on the recent history...but wasn't the KGMB owner looking to sell the property or something like that? Is that why the operation needed a new "home"?
    I met Anita a few times. A wonderful person.

    The property was sold last year January and was leased back to the station. If I recall correctly one of the banks actually owns the property.

    The property isn't the only consideration regarding this shared operations agreement. It's mostly the sharp drop in advertising revenue and viewership even.

    A decade ago, the average late newscast reached 21 percent of people watching television at the time. Today, that number hovers around 12 percent. The Television Bureau of Advertising has said local spot ads will tumble up to 8 percent this year.
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    Default 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?

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

    Quote Originally Posted by bcr1652 View Post
    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.
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    Default 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.
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    Lightbulb Re: KGMB - KHNL - KFVE "shared services agreement"

    Quote Originally Posted by Kimo View Post
    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.

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  23. #23

    Default 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

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    Default 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!

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

    Quote Originally Posted by bcr1652 View Post
    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/

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