Tribune Expands Multicast Partnership
Tribune and MGM expanded their distribution agreement for MGM’s This TV multicast network, the companies are expected to say Tuesday. The network, a 24/7 programming feed of old MGM-produced movies and TV shows, has been attracting a growing audience despite its lack of pay-TV carriage in some markets, said Jim Packer, co-president of MGM Worldwide TV.
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"The numbers that we're doing truly show the value of the over-the-air component,” Packer said. “You just can’t do 500,000 viewers without over-the-air and cable. You've got to have both.” It’s a message he’s been bringing to Washington, in meetings with officials on Capitol Hill and at the FCC every other month, he said. The deal with Tribune will give This TV terrestrial coverage in New York City, Miami, St. Louis, San Diego and Grand Rapids, Mich. It renews affiliation agreements in Los Angeles, Philadelphia, Washington, Denver, Indianapolis, Hartford, Conn., and New Orleans.
In some markets where Tribune already carries This TV, it has had cable carriage for the network, said Sean Compton, president of programming for Tribune Broadcasting. “The one thing we have discovered is without the cable coverage in some markets, This TV is getting really big ratings.” Tribune was attracted to This TV because affiliates can preempt the network programming without having to “make good” on the network ads that would have run, he said. “There are certain high school [sports] events that if they're not big enough to be on the primary channel, we can at least put them on the multicast signal,” he said. “And we don’t have to worry about This TV coming and saying, ‘You're not carrying that full freight.'"
Tribune is also looking at developing its own multicast network, Compton said. “We're trying to identify what the best programming is in terms of what holes are out there to fill,” he said. It’s difficult because cable networks have already served so many niches, “but we are looking at some opportunities that are out there we feel we could exploit,” he
Advertisers are beginning to respond, Packer said. This TV so far has sold only direct response advertisers and eschews 30-minute paid programming, he said. Locally, stations have more flexibility on rates to bring new advertisers on board, said Compton. “There are certain amounts of dollars in every market,” he said. “But you can price the [multicast channels] differently. You're not asking for $10,000 in prime for a spot,” he said. “You can go to a local insurance agency and smaller businesses that otherwise could not afford to be on a prime time schedule or in local news.”