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Mike Reynolds
Are cable operators really ready for another service aimed at African-Americans?
That was the query posed by BET Holdings Inc. chairman Robert Johnson in the wake of recent comments made by AT&T Broadband and Internet Services president Leo Hindery, calling for a family values/public affairs channel to reach an "under-served" African-American community of viewers.
In throwing down the distribution gauntlet, Johnson, speaking before the press at last week's National Cable Show in Chicago, said his company was currently exploring a number of different models. "We have heard only one voice for a network based on this kind of programming, but, if the industry is serious, we can put it together, and have the economies of scale to do it more efficiently than anyone else."
Johnson said that in responding to this "RFP" (request for proposal), BET is willing to consider joint ventures with operators, a fee-based service that would be discounted as the sub base and advertising revenue expanded, and even a non-profit structure. "If the industry is really serious we would put together a not-for-profit channel that makes sense for everyone," he said, estimating it would take more than $40 million to create programming for such a channel.
Johnson, who is "perplexed" by Hindery's call for the kind of network in question, said that formal proposals will be developed within the next two weeks and Curtis Symonds, EVP-affiliate relations at BET, would meet with every major MSO.
Currently, at least three other entities are vying for broad cable carriage of programming services aimed at African-Americans: MBC Network, which has the financial backing of such prominent blacks as heavyweight champion Evander Holyfield, entertainer Marlon Jackson (yes, he's Michael's sibling), broadcaster Alvin James and barrister Willie E. Gary, has some 3 million C-band subs, melding gospel-influenced and family programming; Space Station Television, an African-American-owned firm, plans to launch an entertainment and lifestyle service targeting urban audiences this fall; and Don Cornelius of Soul Train fame is teaming with ex-FCC member Andrew Barrett on a channel that would draw heavily from that show's library of episodes.
Although BET research shows that its viewers value public affairs/information and spiritual programming - the network offers such fare as BET Tonight, Teen Summit, Lead Story, and Heart & Soul - the channel scores better rating with its entertainment lineup of movies, sitcoms, and sports fare.
"If the industry is serious about (a family-values/public affairs channel) it, we could have a channel up tomorrow," he said. "But with 20 years of experience, we'd like to think we know what African-American audiences want."
Johnson underlined his concerns about the availability of distribution by stating: "We have responded to the African-American community. But what has been missing is the cooperation of the operators. They have not accepted the programming that is already available, and it raises the issue as to whether we've been treated fairly within the industry."
To that end, Johnson said that BET, which has some 57 million cable subs, doesn't have the penetration of other 20-year-old services, and that its spin-off networks have not gained the distribution levels attained by channels coming out of the Turner, Discovery and MTV camps.
BET Action, a PPV service, has 10 million subs, while BET Movies is in some 5 million-plus homes. For its part, BET Jazz is in 3 million in the U.S. (and 3.4 million more in 13 other countries). BET Gospel, meanwhile, is looking to gain carriage on AT&T Corp.'s HITS (Headend In The Sky).
Symonds said the industry may pit the four services together, and "one will emerge as the winner." As such, Johnson said it ultimately may make more sense for the players to collaborate. "Given that it takes $40 million-$50 million to launch a network, and the industry's track record, I'd be a little circumspect. It may make sense for all of us to get together as a group," he said.
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