Posted on 10/21/2004 10:33:25 AM PDT by SierraWasp
Poll: Sinclair should show both sides
By Jon Friedman, CBS.MarketWatch.com Last Update: 1:12 PM ET Oct. 21, 2004
NEW YORK (CBS.MW) -- People responding to a Consumers Union poll overwhelmingly said that Sinclair Broadcasting Group, the largest U.S. television station company, should air opposing points of view and not only a documentary reviling presidential candidate John Kerry.
According to Consumers Union, the vast majority of Americans aware of the Sinclair situation believed that the opposing political viewpoint should be presented, regardless of where they stood in the political spectrum.
"It's abundantly clear the public wants and expects balance, fairness and equal time from its local broadcasters when it comes to political issues," said Gene Kimmelman, Consumers Union's senior director of public policy, in a statement.
The furor began last week when Sinclair (SBGI: news, chart, profile) said it intended to show "Stolen Honor: Wounds That Never Heal," a documentary that strongly criticized Kerry's antiwar activities more than 30 years ago during the Vietnam era.
Sinclair's stock tumbled about 17 percent in the aftermath, as angry institutional investors expressed their disapproval of the one-sided film and urged the company to reconsider its decision.
Stung by the outcry, Sinclair retreated. The company announced it did not intend to show "Stolen Honor" in its entirety. Its shares rose more than 11 percent Wednesday, in the first day of trading after the company's announcement. See full story.
Sinclair will instead air a program called "A P.O.W. Story: Politics, Pressure and the Media."
On Thursday, Sinclair's stock continued to gain, rising another 11 cents to $7.15.
The survey by Consumers Union, which publishes Consumer Reports and professes no political bias, was conducted on Oct. 19 and 20. It revealed that 78 percent of those who were aware of "Stolen Honor" said broadcasters should air the opposing point of view if the program is shown.
Meanwhile, the support for airing of the documentary was divided. Some 51 percent who knew of it supported the decision; 41 percent opposed it; and 9 percent had no opinion.
Even among those people who supported the Sinclair broadcast, 69 percent believed that the program should be balanced by the opposing point of view.
Before Sinclair changed its decision, the company was facing mounting pressure on all sides. The New York Times reported that the Burger King had said it would pull all its commercials from Sinclair stations on the day the program is broadcast as a gesture of maintaining neutrality.
The Kerry campaign also had filed a complaint with regulators, asking for equal time and protesting what Chad Clanton, a spokesman for Kerry, called a "partisan agenda."
On Wall Street, Glickenhaus & Co., which manages $1 billion in assets, came forward to publicly express its disapproval with "Stolen Honor."
In addition, Alan Hevesi, the New York state comptroller and the trustee of the New York State Common Retirement Fund, which owns more than 250,000 shares of Sinclair stock, wrote a letter to David Smith, Sinclair's chief executive, to make the fund's displeasure clear.
Sinclair, whose executives have been among the largest media contributors to President Bush and the Republican Party, is no stranger to controversies.
Last April, its eight ABC affiliates didn't air the "Nightline"' program in which the names of American soldiers killed in Iraq were read aloud. Sinclair declared the program "unpatriotic."
Jon Friedman is media editor for CBS.MarketWatch.com in New York.
According to Consumers Union, the vast majority of Americans aware of the Sinclair situation believed that the opposing political viewpoint should be presented, regardless of where they stood in the political spectrum.
Fine idea. Too bad Kerry turned down an invitation to provide his opposing view.
Perhaps John Kerry doesn't have an opposing view.
The people have spoken.
Your participation is requested to provide balance and an opposing view.
Mr. Kerry, you need to accept Sinclair Broadcasting Group's invitation.
The survey by Consumers Union, which publishes Consumer Reports and professes no political bias, was conducted on Oct. 19 and 20. It revealed that 78 percent of those who were aware of "Stolen Honor" said broadcasters should air the opposing point of view if the program is shown.
Even among those people who supported the Sinclair broadcast, 69 percent believed that the program should be balanced by the opposing point of view.
David D. Smith
President and Chief Executive Officer
Sinclair Broadcast Group, Inc.
10706 Beaver Dam Road
Hunt Valley, MD 21030
Dear Mr. Smith:
We write to you today as individual board members of the California State Teachers Retirement System (CalSTRS). As such, we do not speak on behalf of CalSTRS, but rather in our individual fiduciary capacities. As you may know, the system owns 119,938 shares of Sinclair Broadcast Group, Inc. (SBGI) and two bonds valued at $8,017,175.
We are very concerned about the situation arising from your promotion of the program “Stolen Honor: Wounds that Never Heal.” We understand that you are now planning to air only parts of the program. Nevertheless, we feel your continued desire to promote partisan politics is of great concern.
As significant investors in SBGI, we are compelled to ask why you are potentially putting your company (and our investment) in jeopardy to influence the upcoming presidential election. Since your questionable decision has come to light, a nationwide boycott of SBGI stations has been launched, and news reports indicate this boycott is causing SBGI to lose sponsors and significant advertising revenue.
In addition, consumer and media watchdog groups are vowing to challenge every FCC license renewal of SBGIowned stations. We question your decision to expose SBGI to the risks associated with boycotts and lost revenue.
SBGI is one of the largest and most diversified television broadcasting companies in the country today. Sinclair owns and operates programs or provides sales services to 62 television stations in 39 markets. Your television group includes FOX, WB, UPN, ABC, CBS, NBC affiliates and independent stations and reaches approximately 24 percent of all U.S. television households. As such, a significant share of your revenues would be at risk if the FCC takes adverse action against your licenses.
SGBI stock has fallen 53 percent this year and recently closed at a new 52-week low. Your actions are exposing SBGI to possible credit downgrades, shareholder lawsuits, and disciplinary actions by the Federal Election Commission and Federal Communications Commission. Legg Mason concluded that favorable deregulation is at
David D. Smith
October 20, 2004
Page 2
risk due to SBGI actions. Any of these actions taken singularly would be troubling. In totality, they represent a very serious threat to the financial stability of SBGI.
We represent the financial interests of 734,963 members who are mostly teachers and their families. These members have the right to expect the companies in which CalSTRS invests will act with their best interests in mind.
CalSTRS is often our teachers’ primary source of income in their retirement years. It appears that your decision to air “Stolen Honor” puts partisan politics above the best interests of your shareholders. We urge you in the strongest way to reverse this highly questionable course of action.
Sincerely,
JACK O’CONNELL
State Superintendent of Public Instruction
California Department of Education
STEVE WESTLY
State Controller
California State Controller
JO/SW:ab
I'm disappointed that Sinclair bowed to the lib's blackmail. If I were them, I would have said, "Sure, we'll do what you want." Then, I would just go ahead and broadcast the show in the original format and let the chips fall where they may. Just my 2 cents.
Now that figures!
Oh! I was hoping you would have said, just my two voting shares!!!
Why?
Sinclair has taken a beating from all these extortion schemes. Jesse Jackson has been at him for a while now. Now Calstrs. The only good news is that out of 85 million shares, Calstrs 100K shouldn't have that much clout. But the negative PR hurts. Maybe its almost time to buy? At $6, it looks pretty good! :-)
Stolen Honor: An Outpouring of Pain, Channeled Via Politics
From the NY Times Arts section and opens with this statement:
"Stolen Honor: Wounds That Never Heal," the highly contested anti-Kerry documentary, should not be shown by the Sinclair Broadcast Group. It should be shown in its entirety on all the networks, cable stations and on public television.
CU has always been very left-leaning and shilling for foreign products - remember their attack on the Dodge Omni. They made Nader proud.
The Consumers Union is farther to the left than the ARRP.
I cancelled our subscription during the 92 elections with the bs they put out.
This book will be one of my top Christmas requests.
Oh! I always considered that "their common bad!!!"
Maybe it's "their Commonist good?"
Wull... I cain't argew wif dat!!!
I believe that is exactly what they are planning on doing.
They will show what sKerry said,and they will show what the POW's said.
Wunderful! It's supposed to be on at 7:PM Saturday nite here in Sacramento on Channel 13, KOVR, a Sinclair owned station! Are you gettin it there in Mineesota?
"Sacramento KOVR Friday 10/22 7PM" (from their latest press release)
Sure glad I caught that mistake. Wouldn't want to mis-lead any "Superior California" viewers!!!
I will be in the air and on my way home from a business trip,and don't land in Minneapolis until 8:30pm,But a friend is going to tape it for me.
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