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http://story.news.yahoo.com/news?tm...ariety/20041104/va_tv_ne/sinclair_sits_pretty

NEW YORK -- Sinclair Broadcasting said its controversial program on John Kerry (news - web sites)'s war record was hugely profitable for the company, so much so that it intends to produce more such shows from its centralized news operation near Baltimore.

Fewer ad spots were sold during "POW Story: Politics, Pressure and the Media," which caused the outrage of liberal groups, but the ads sold at a higher rate. Ratings were higher for the show, and the uptick seems permanent.

"We made more revenue on that show than we would have otherwise across our platform," said Sinclair topper David Smith. "The lesson learned is that the central news structure we've created has the capability of producing relevant content and we are convinced we can make more money in other dayparts."

He said ratings were up across the station group as a result of the controversy. "My guess is we're going to keep a lot of that, and the long-term value is going to be huge," he said.

News is sure to inflame Sinclair's critics, who say the station owner used the public airwaves for its own political agenda. But Smith says the majority of calls to the station group after the show said the documentary had been pro-Kerry. And Sinclair has the backing of First Amendment groups who may not all agree with the message, but say the free speech issue trumps any obligation to present balance. Smith said he expects deregulation to continue in President Bush (news - web sites)'s second term. Sinclair's business strategy is to squeeze costs out of the business by owning multiple stations in single markets.