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Monday, August 20, 2007

Is the Off-Net Sitcom on TV Stations Dead? Plus: a few words on Merv, recording industry envy and the broadcast network

By Steve Passwaiter, VP, Business Development, BIA Financial Network (BIAfn)

The dearth of big-time sitcoms seems to be hitting TV stations rather hard these days.

More stations are finding it hard to balance bottom line discipline with the airing of long-tail syndicated sitcoms.

The ratings return on these programs no longer justifies keeping them in their usual early fringe and prime access slots where the weekly payments and the advertising rates one can get for them don’t line up as nicely as they once did. 

This seems to pose a larger problem for standalone CW and MNT stations where alternatives to this type of programming are harder to find.

It’s much easier for the major affiliates which can substitute news programming rather easily for that sitcom that is too costly or has passed its prime.

The incremental cost of adding another 30 or 60 minutes of news is minimal. So, even if the ratings fall, stations find this to be a more bottom-line friendly move.

But stations that opt to substitute news face a dilemma of possibly having too much news on their schedules. How much is too much?

The off-net sitcom has been an old, reliable partner for many TV stations, but it appears that those days may officially be behind us.

None of the off-net sitcoms out in the past few years have the same panache.

There are no more Cosby Shows, Seinfelds or Friends available. And shows are sold to cable networks at about the same time as they are to stations.

Does it seem that it might be time for some innovation when it comes to sourcing on the programming side? 

Of course, there are first-run and other types of syndicated fare available for station owners, but the slow demise of the off-net sitcom is likely to make those other programs more expensive. I guess either way, the studios win.

The passing of Merv Griffin

Speaking of syndicated programming, one of the best performers and creators in first-run syndicated programming has passed into history.

While I can’t eulogize Merv Grffin in the eloquent style of Tom Shales, it’s no stretch to call Merv one of the great figures in television history.

As successful as he was in front of the camera with his own show that covered 20 years, Merv’s creative mind brought about two of the most enduringly popular game shows in the history of the medium in Wheel of Fortune and Jeopardy.

I remember too many school days coming home while Mom was watching Merv and Arthur.

In so many ways, Merv was the industry he represented—creative, energetic, confident and resourceful.

A true American success story; Merv was an entrepreneur who reinvented himself more than once. That’s a legacy. 

I think they call it chutzpah

It’s difficult to follow the recording industry these days without some prolonged head shaking.

The industry has spent the last decade under siege and it’s not too difficult to have some empathy for their position.

However, the industry seems to be engaged in new policies designed to destroy both new friends and old in hopes of restoring some financial momentum.

After arresting grandmothers and college students among other questionable management decisions earlier this decade, the folks in the recording industry are attempting to reverse their fortunes by a shakedown of both Internet and terrestrial radio operators.

The first shot in the war was the hike in royalty payments paid by Web radio operators. Many Web radio operators are not highly profitable concerns at this point in their development and these new royalty charges threaten the entire sector where a lot of the artists get airplay they don’t get on commercial radio.

The second blast was the industry’s attempt to eliminate any royalty exemption for music played on AM and FM. The record industry issued a questionable research study that says that radio airplay actually depresses music sales.

This performance tax talk has been greeted with appropriate derision by the radio industry and the NAB.

Now, bear in mind that we do have a dog in this fight as we work for any number or radio companies that would feel the impact of this attempted income redistribution.

However, it’s difficult to sugarcoat this as anything more than an attempt by the record companies to extract substantial sums from another industry whose cash flow margins are envied.

While radio’s cash flow numbers are the envy of any number of industries, the truth is that those margins are under greater pressure than ever before and this push from the recording industry would significantly dampen those margins for music formatted stations.

Fortunately for the opponents of this ill-conceived measure, congressional support seems limited to representatives who serve the Los Angeles or Nashville areas.

The answer to the recording industry’s problems won’t be found in destroying one developing platform and damaging a well established one. 

Inside Radio did a study reporting that the same artists who testified to Congress in favor of ending radio’s exemption would actually benefit little from the tax. Gee, what a surprise that is. 

While the recording industry continues this effort, some record labels are “experimenting” with providing DRM free music for the public. Go figure.    

The $9.2 billion funeral

While this is old news, I thought it worth mentioning.

Once again, the death of the network television has been greatly exaggerated.

Despite the many protestations of the process and results, the advertising world has found it still beneficial to bestow billions of dollars to our television networks for the upcoming fall season.

Give the TV networks their due for reacting to the new marketplace and making changes that kept the upfront market thriving.

It appears that the calendar and scatter markets are going to be strong as well, which will fill the coffers and stoke the programming engines.

 

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