European Stars And Stripes (Newspaper) - August 17, 1985, Darmstadt, Hesse                                Page 16 the stars and stripes August 1985 Rich realm of Independent to by Thomas Hayes new York times the realm of commercial television stations has never been Richer in the United staggering sums have recently been paid for big Independent stations in major the number of independents has doubled in the last six Many of these stations that Are Well established in major markets have captured increasing numbers of raised advertising rates closer to those of stations affiliated with the and posted consistently rising after a decade of growth from second class citizens to fully competitive television the independents now have an entrenched position in the starting lineups of most Large said Paul an Industry analyst and publisher of broadcast Many analysts and investment Bankers say they believe that the big gains of these stations against the network affiliates have about and predict a period of slower Overall the association of Independent television stations is predicting that the independents share of total spot and revenues will remain at about 23 in the next five the association estimates that the independents will get billion of a total billion in compared with billion of billion in bidding Battles for available programs have sharply increased with 214 independents now operating compared with about 200 affiliates for each of the three major networks the risks for investors in new Independent stations appear much there is a limit to How far this can said John a Media analyst with Drexel Burnham the independents have to look with something that people but that is getting increasingly Martin managing general partner of television station pointed out that the profit margins at Independent stations Are generally lower than those of network affiliates established independents in major cities usually have margins of 30 to 40 while margins for network affiliates in the same markets should be Between 35 and 55 affiliates get about 65 percent of their programming from the but Independent stations have to buy All their own because new to stations Are constantly coming on the Competition for those shows is and it is getting tougher to maintain As a there is increased focus on controlling the Eye catching offers by Rupert Murdoch news America publishing which agreed to pay More than billion for seven metro Media stations before arranging to sell a Boston station to the Hearst for and the Tribune company of which bid million for Kola in los involved special analysts prospective they May not have the same opportunities that these independents do buying or producing programs in bulk and group and sales that made those High prices in news americas the australian Media executive who purchased half of the 20th Century Fox film earlier this is planning to marry the studios Hollywood production unit to a new television delivery system linked to 18 percent of Homes in the United perhaps most he is expected to arrange for Barry former chairman of Paramount pictures and Abc programming and now chief executive officer at to Mastermind new productions and management of the Marvin the Denver oilman who owns the other half of elected last month to Back out of his agreement to join Murdoch in the metro Media Daviss motives have not been publicly but some investment Bankers suggest that a More Uncertain environment for independents could have influenced his for the Tribune the addition of Kola would give it a lon sought presence in each of the top three rounding out an existing lineup of five independents that include new Yorks Pix and Chicago if Murdoch and the Tribune company both can produce consistently appealing programs that Cut into the networks nightly primetime some analysts they will have materially altered the television Diller especially has a visionary sense of what a television group can said Jeffrey an investment banker specializing in Media companies for the first Boston if anyone can make it it will be Diller or people like he said the High prices won by metro Media and Atlas owners have brought a new intensity into the Market for Independent when prices go the number of transactions increases Epstein there Are companies who Are saying that because these unique stations Are it might be a Good time to owners and programmers at Independent in asserting their argue that the potential to make big profits is greater at independents than at network the biggest they is simply that independents have control Over More advertising about 12 minutes an compared with about 90 seconds an hour at the others that independents must buy All their own programming whereas affiliates Are even paid to carry network evening under a new acc a Media company can own 12 television an increase from 7 the Taft broadcasting which owns four affiliates and three has received acc approval to become the first company to reach the new it will add three affiliates and two independents when its million Purchase of Gulf broadcasting which includes seven radio is completed in the broadcast said sceptics have repeatedly anticipated a slowdown in the Overall growth of including the Independent the slowdown is still not in he i dont think Murdoch overpaid for he he reasoned that the newspaper publisher paid approximately 11 times the six stations approximate Cash flow projected for As for the Price works out to times estimated Cash flow for if Tribune haunt paid somebody else would he you can assume that most of the Large players in the Industry want to expand their station there is Little debate about the independents appetite for they spent million for syndicated programming last compared with million by the network according to the independents Trade in the combined purchases of syndicated programming totalled with network affiliates accounting for 69 major Independent television stations Independent television stations ranked by Market and their percentage of designated Market share in those markets be Tifft location own Jonew new York metro Media Pix to fat tax Stu 10 a Tiv us anodes met Tomento 10 cop Angeles to Khz won 14  10 urn tvo ctr 10 a tag 18 Mot metro Media 14 ecu Pho to Attix 10 Kyu 18 9 relm f i o elude sae to Rupert Murdoch 8 webs in