Date: Feature Week of November 30, 2003
Topic: Black Press Business/Economic
Author: William Reed
Article ID: article_ema113003a

BROADCAST ENTERPRISE IS BIGGEST BLACK BUSINESS PROJECT

But Will You Tune Into TV One?

How great an idea is it to invest $130 million into a television network to appeal to Black Generation Xers and Baby Boomers?  Black-owned Radio One Inc. and its partner Comcast Corp. hope it�s a good bet.  They plan to launch the TV One cable network to target Black viewers effective on Martin Luther King Jr. holiday Jan. 19.

TV One is headed by an under-40 Generation Xer, Alfred C. Liggins III, who is Chief Executive Officer, President and Treasurer of Radio One, Inc.; and 57-year old Baby Boomer, former Discovery Networks Executive Johnathan Rodgers.  TV One executive say they will bring a new Black programming, providing different TV fare than two others serving Black viewers - Washington-based Black Entertainment Television and Atlanta-based Major Broadcasting Cable Network.  TV One is expected to target an audience of 24 to 57-year olds.

BET focuses on music videos and its average viewer is 21.  The TV One people say they won�t carry much in the way of music videos and will instead air more dramas, documentaries and original programming.  TV One has also brought veteran actor, filmmaker & producer, Tim Reid and his New Millennium Studios (located in VA) on board as Senior Executive Supervising Producer.  Reid & NMS will produce original movies and series for TV One.

�We will provide television by African Americans for African Americans that is of interest to African Americans,� says Rodgers, who is chair of the venture.   Rodgers says the network is the first channel in the 50-year history of commercial television that African Americans can call a �television destination or home base.�  He says that his network's "sweet spot" will be a 38-year-old African-American woman.

The numbers look good for TV One�s target market.  African-Americans are the largest minority segment of the U.S. television household population, comprising approximately 12 percent of 102 million TV households.  African Americans spend $3 billion on their cable bills annually, watch 20 hours more television than the general public and are ranked 11th in the world on consumer consumption indices.  BET�s 20 years of success has been programming based around teens - 30 percent of African-American teens are among the most frequent TV viewers.

The numbers among TV One�s market segment look good too.  They include Baby Boomers, born between 1946 and 1964 and most of the Generation X group � people in the 18-40 age range.  Boomers or �Old Schoolers� are the largest market segment and have proved their commercial worth through programs such as �The Tom Joyner Morning Show�.  Such programming, which has been a staple of Radio One programming, includes Generation Xers - also called Baby Busters and Slackers.  BET is expected to retain the teen market - people born in the 1980s and 1990s.  Known as Generation Y and Echo Boomers, the teen market is increasing nearly twice as fast as the general population.

With 66 stations across the country, Radio One is the largest radio broadcaster in the nation targeting primarily African-American and urban listeners.  Comcast is the largest cable company in the U.S. and a majority owner in channels such as E! Entertainment Television, Style, Comcast SportsNet and the Golf Channel.  Radio One is investing $74 million in the venture.  Comcast and four private investors are contributing $57 million to finance TV One�s first four years.  Investors are firms mainly involved in mid-staged, minority and women-owned media companies, who believe the collaboration with Radio One-Comcast will revolutionize Black cable television and bring them high returns.  They include: Constellation Ventures, a Bear Stearns asset management venture capital fund; Opportunity Capital Partners, a national private equity firm; Pacesetter Capital Group, a diversified family of private equity funds; and Syndicated Communications, which provides early stage growth capital to minority entrepreneurs and underserved market sectors.

Radio One�s third quarter (2003) net earnings were $16.7 million, or 16 cents per share, compared with year-ago earnings of $12.8 million, or 12 cents per share.  Revenue was $81.5 million, a 1 percent increase from $80.5 million during last year's third quarter.  Whether Radio One can turn similar numbers into profit for TV One remains to be seen, but executives say it can be done.  �There are millions of African Americans out there who have been demanding service like this for a long time� says Rodgers.  �It is certain that we�ll make a profit by our fifth year.�

African Americans should look for TV One on their local cable system or satellite provider.  If it isn't launched on your system by the MLK Holiday, call your provider and ask them to carry it.

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© 2000-2003 William Reed - www.BlackPressInternational.com