Post by George WK Newman on May 26, 2009 15:10:28 GMT -5
May 12, 2009 – New York, New York
Amidst all the upcoming hype over the upfronts period where the major US television networks reveal their programming decisions for next year, and the doom and gloom that permeates the network television model these days, comes unexpected news of the capitalization of what will become the sixth biggest network in the United States.
Platinum Equity, Liberty Media, RelativityMedia, Sinclair Broadcasting, Gannett Company, Activision Blizzard, and Hilton Hotels, have all stepped forward as investors in the new venture.
The major impetus for the creation of the new network was the decision of MyNetwork TV to morph from a fledging television network to a programming service. David Smith, the CEO of Sinclair Broadcasting, says that decision not only left a void in the network landscape, but also left a lot of station owners disappointed. Smith says Sinclair has not yet made a decision on how many of the 57 stations that they operate across the U.S. will become affiliates of the new, yet unnamed network. It should also be noted that Gannett Company is also an owner and operator of 11 stations across the US. Platinum Equity is strictly an investment company, while Liberty Media is a conglomerate with many entertainment interests but no television stations. RelativityMedia seems to open up the possibility of a partnership with Rogue Pictures, their movie studio. Activision Blizzard is primarily a software gaming company. There is no word yet on how Activision or Hilton Hotels will be involved in the new network, other then as investors.
Critics are deriding this new enterprise as pure folly, as WB, UPN, CW, and MyNetworkTV all failed to make money and become a viable network. In fact with advertising revenue drying up and the entire network TV model coming under fire from those who see cable, DVR’s and the internet as the end to ad supported network TV, even the big alphabet networks and FOX are concerned about the long term viability of network television. Now does not seem the time for such a new enterprise. However, as David Smith points out it is exactly at these types of low points that the best time to invest may happen. He points out that Microsoft, and other industry changers were founded during previous recessions.
Amidst all the upcoming hype over the upfronts period where the major US television networks reveal their programming decisions for next year, and the doom and gloom that permeates the network television model these days, comes unexpected news of the capitalization of what will become the sixth biggest network in the United States.
Platinum Equity, Liberty Media, RelativityMedia, Sinclair Broadcasting, Gannett Company, Activision Blizzard, and Hilton Hotels, have all stepped forward as investors in the new venture.
The major impetus for the creation of the new network was the decision of MyNetwork TV to morph from a fledging television network to a programming service. David Smith, the CEO of Sinclair Broadcasting, says that decision not only left a void in the network landscape, but also left a lot of station owners disappointed. Smith says Sinclair has not yet made a decision on how many of the 57 stations that they operate across the U.S. will become affiliates of the new, yet unnamed network. It should also be noted that Gannett Company is also an owner and operator of 11 stations across the US. Platinum Equity is strictly an investment company, while Liberty Media is a conglomerate with many entertainment interests but no television stations. RelativityMedia seems to open up the possibility of a partnership with Rogue Pictures, their movie studio. Activision Blizzard is primarily a software gaming company. There is no word yet on how Activision or Hilton Hotels will be involved in the new network, other then as investors.
Critics are deriding this new enterprise as pure folly, as WB, UPN, CW, and MyNetworkTV all failed to make money and become a viable network. In fact with advertising revenue drying up and the entire network TV model coming under fire from those who see cable, DVR’s and the internet as the end to ad supported network TV, even the big alphabet networks and FOX are concerned about the long term viability of network television. Now does not seem the time for such a new enterprise. However, as David Smith points out it is exactly at these types of low points that the best time to invest may happen. He points out that Microsoft, and other industry changers were founded during previous recessions.