tv + media

Twin Cities viewers long have been treated to some of the nation's most ambitious, award-winning news coverage -- but that could change in the wake of the same economic crunch that has slammed newspapers.

Across the country, many local TV stations are running on fumes after their biggest financial source ran out of gas.

Traditionally, stations have gotten 25 to 35 percent of their advertising revenue from the auto industry, which all but stopped running ads when its future seemed uncertain, said Mark Fratrik of BIA Financial Network, a Virginia-based firm that advises companies about local media. According to the Television Bureau of Advertising, automotive ads were down 55 percent in the second quarter, while spots for car dealers dropped 43 percent.

The result: a record-breaking 30 percent drop in ad revenue for U.S. stations this year.

Some of that money is expected to return -- and federal bailouts such as "cash for clunkers" helped -- but most agree that auto advertising will never again shift into high gear. (Newspapers, by contrast, got only 6 to 10 percent of ad revenues from the auto industry.)

General managers at the Twin Cities' four leading stations -- WCCO, KSTP, KARE and KMSP -- won't say how much sales and budgets have shrunk, although it's probably not as bad as elsewhere. Still, most KARE employees have been forced to take two weeks of unpaid time off. WCCO released Emmy-winning anchor Jeanette Trompeter in April after laying off high-profile meteorologist Paul Douglas, and last month it dismissed three directors, leaving others to pick up their duties. At KSTP, 25 people took buyouts or were laid off last December, and other jobs have been lost through attrition this year.

An analysis of local ratings shows that viewership of local news at 10 p.m. is down about 25 percent since 2004 among ages 25-54. Some of that drop can be attributed to a new, more accurate measuring system, but mainly it's because viewers are turning to cable.

"It's not necessarily that people are watching less news," said Colleen Ryan, a broadcast manager at Compass Point Media, a Minneapolis-based firm that analyzes media at both national and local levels. "They might be turning to CNN or even 'The Daily Show,' which is the de facto news for lots of young people."

Despite the hit, local stations have avoided the kind of layoffs and budget cuts that have devastated stations in other markets.

That's mainly because the Twin Cities still has one of the nation's highest levels of viewership, both for local news and prime-time shows, according to WCCO general manager Susan Adams Loyd. Stations also got a big infusion of political ads last year, thanks to Minnesota's status as a battleground state. And at Fox affiliate KMSP, which carries the majority of Vikings games, the hometown team's success has done as much to boost revenue as an all-star "American Idol" showdown.

New strategies have helped, too. KMSP general manager Carol Rueppel said her station has sought out alternative advertisers eager to take advantage of the economic slump -- such as the "cash for gold" plugs now as familiar to viewers as Burger King spots.

KARE's sales department is developing multi-platform deals with advertisers looking more and more to the Internet. "As consumer behavior changes, we try to change the way we're doing things," KARE general manager John Remes said.

Quality can be costly

While such adjustments may keep stations afloat, analysts worry that quality will suffer.

The attributes that have made Twin Cities TV news among the nation's best -- veteran reporters, breathtaking photography, in-depth investigative coverage -- are also expensive, and thus vulnerable.

"I'm not sure people understand what you've got there, which is some of the finest TV in the country," said Al Tompkins, a broadcast instructor at the Florida-based Poynter Institute, a world-renowned media think tank. "It's nearly inevitable that they will continue to cut costs, and that has the potential to diminish what you're known for, which is really, really good work."

Dave Nimmer, a former Minneapolis Star managing editor and WCCO associate news director, thinks much of the damage already has been done. He notes that in 1989, the CBS affiliate had a Washington bureau and a documentary unit. Both are long gone.

"Local TV is no longer a place I consider a primary news source," he said.

It's a far cry from the glory days of the early 1980s, when it wasn't unusual for an affiliate to enjoy a 60 to 70 percent profit margin.

Tompkins believes the four players in Twin Cities TV news still do more investigative work than is the norm elsewhere, but limits on overtime pay and the high cost of committing resources to long projects that may not pan out work against breakout journalism.

"They just don't have the time, or the manpower, to chase those kind of stories anymore," he said. Tompkins also worries about stations that ax veterans, a move that can save a lot of money, but at what cost?

"Look at the list of people who have left your [stations]," he said, referring to folks such as KARE's Rick Kupchella, a 20-year veteran who, facing a pay cut, resigned in May to start an Internet news site, and Douglas, who served the Twin Cities market for 22 years. "Some of those people had pretty good institutional knowledge. Sure, you can bring in people that make less money, but when another bridge collapses, who's going to remember about the last bridge collapse? Imagine if you lost the equivalent of those kind of people in the government or in the police department. What would you lose?"

Strike up the 'one-man band'

Perhaps the most vulnerable stars are the photojournalists who have routinely lined newsroom shelves with Emmys. Across the country, many are being replaced by "one-man bands," journalists who both report and shoot video. It's a common practice in small markets, but it's creeping into major markets such as the Twin Cities. KARE has more than 10 journalists who use the approach at least part-time, up from zero two years ago.

Remes said that practice has its place, but can't be a substitute for the "high-quality photojournalism and storytelling" his station is known for.

"The key thing is to have the right tool for whatever the story is," Remes said.

If Remes sounds optimistic, he's not alone. All four general managers gave examples of how they're striving to maintain excellence. At KSTP, general manager Rob Hubbard said that most employees received raises this year and that the station has increased the number of news hours on the air. WCCO anchor Don Shelby recently reported from Iraq, by no means a cheap trip.

"If you look back in history, those who really make up ground are the ones that continue to spend in rough times and improve what they do until things get better," Hubbard said.

njustin@startribune.com • 612-673-7431