Fox Broadcasting has reached an agreement with its affiliates requiring Fox Kids Worldwide will to the affiliates for full financial control of the Fox Kids Network broadcast service. Previously, the network had been operated as a joint venture between Fox Broadcasting and the affiliates. Reportedly, the affiliates are expected to split about $100 million. The affiliates are still negotiating with Fox Broadcasting to determine if some of that money will be returned to Fox to help pay for the new National Football League contract.
Afternoon Nashville newspaper folds
Nashville Banner, its circulation reduced to less than 40,000, closed last week. The afternoon paper, part of a joint operating agreement with the morning Tennesseean, saw circulation fall from 63,000 10 years ago.
Seagram touting whisky on radio
Seagram Americas, New York, is supporting its Chivas Regal scotch whisky brand with radio commercials from TBWA Chiat/Day, New York, in Dallas, Houston, Miami and New York. The spots, running in conjunction with new outdoor and print advertising, are part of an estimated $6 million campaign using the tag, "You either have it or you don't."
Ziff-Davis will sell $460 million in stock
Ziff-Davis said it filed a registration statement with the Securities & Exchange Commission for an initial public offering of about $460 million of common stock. Ziff-Davis will consist of the existing Ziff-Davis publishing and ZDNet Website operations, the ZD Comdex and Forums trade show and conference business, as well as leading businesses in the technology training, consulting and market-research fields.
AT&T beams up `Star Trek' cards
AT&T Corp. is launching a "Star Trek" series of prepaid calling cards under an exclusive license for calling cards. Four different cards from four different series will be available April 1. Spencer Gifts is the first retailer to commit to selling the calling cards.
`Glamour en Espanol' targeting 20 countries
Conde Nast Publications and Ideas Publishing Group, Miami, will jointly launch Glamour en Espanol with the March issue. The magazine, carrying 120 ad pages in the first issue, including Ford Motor Co., Estee Lauder and Sears, Roebuck & Co., will distribute 478,000 copies in the U.S. and 19 Latin American countries. Madelin Bosakewich is publisher, based in Miami along with Editor in Chief Jacqueline Blanco.
Delta to sponsor Salt Lake City Olympics
Delta Air Lines will be a four-year sponsor of the U.S. Olympic Team and a sponsor of the 2002 Winter Olympics in Salt Lake City. Terms were not disclosed. Delta is flying the Olympic flag from Nagano, Japan, to Salt Lake City. Highlights of the welcoming ceremony in Salt Lake City will appear on Delta's Web site.
Gap stores move media to Starcom, Organic
The Gap has shifted out-of-home media buying for Gap stores to Leo Burnett USA's Starcom, Chicago, from in-house. The assignment may expand to include other research responsibilities, a Gap executive said. Online media buying for Gap stores went to Organic Online, New York, from in-house.
CVS' sharing of Rx drug information halted
Drugstore chain CVS Corp. announced it would suspend a program of furnishing customer prescription information to Elensys, a database-marketing company, after questions were raised about medical privacy by regulators and consumer complaints. Giant Foods reportedly has dropped similar plans to share consumer drug information.
Omnicom, WPP Group post earnings gains
Many ad organizations reported earnings for the year. Omnicom Group, New York, announced its net income for 1997 increased 26% to $222.4 million from '96. For the year, Omnicom said worldwide revenue from commissions and fees was up 18% to $3.13 billion. Net income in the fourth quarter of 1997 increased 24% to $74.5 million from a year ago. For the quarter, worldwide revenue from commissions and fees climbed 19% to $895.1 million. Separately, WPP Group, London, said 1997 revenue increased 3.3% to $2.86 billion from 1996. On a currency-adjusted basis, 1997 revenue was up 11.2%. WPP's operating margins also rose to 11.8% from 10.8% in 1996; profits rose 13% to $336.6 million. Revenue growth was led by WPP's information and consultancy operations, which showed 15% revenue growth, followed by PR with 14% growth. The advertising operations contributed 54% of WPP's revenue and 64% of profits. They were last in revenue growth among WPP units, showing a 9% gain over 1996.