[BC] Ethics

[Alan Kline]

The nonsense about the costs of the digital conversion are just 
that--nonsense.

The majority of stations finished their build-out years ago. We did ours 
in 2002, with the only costs since then adding two more amplifier 
cabinets to the digital TX. Not chump change, to be sure, but hardly 
enough to drive a station to bankruptcy. Yes, there is the cost of 
running two rigs instead of one, but that will change in about 9 months. 
The cost wasn't inconsiderable, but again, not enough to sink a well-run 
ship. My point is simply that there should not have been enough 
conversion-related costs in the last year or two to cause this kind of 
meltdown.

If I were to hazard a guess as to the real root of Pappas' trouble, it 
may have something to do with his efforts to launch another Hispanic 
network. I suspect that that market was already saturated and couldn't 
sustain another competitor.

Too many companies have tried to whine that the conversion of their 
entire plant to digital was mandatory. In the immortal words of Sherman 
T. Potter, Col. (MC) USA, "Horse Hockey!" Nothing is required except the 
transmission plant. You could run a TK-41 and a film chain into a 
digital encoder and be legal. From a competitive point of view, not 
smart, but still legal. Everything else is nothing more than the routine 
replacement of worn-out, fully-amortized equipment that our business has 
done for the last 85 or so years. Yet, some badly-managed companies use 
that as an excuse to get out the body bags and fire people.

ak

Tom wrote:
> I think the heart of the matter is right here:
> 
> "Pappas blamed the "poor ratings of the CW Network" for some of the 
> financial trouble that forced it into bankruptcy. CW Network targets 
> people in the 18- to 34-year-old age bracket..."
> 
> The ones with the least amount of disposable income.  The only 
> demographic target that would be worse would be the 12-year-olds.
> 
> He also mentioned the costs involved in the mandatory digital switchover 
> as contributing.
> 
> Dana Puopolo wrote:
>> Well, then I guess that's it. Time for all of use o ofold up our tents 
>> and go
>> home. The whores have dragged the good guys down with them!
>>
>> I'm glad I'm not doing radio these days! I love it but I don't think 
>> it loves
>> me any more.
>>
>> -D
>>
>> The largest privately-held commercial broadcast operator in the U.S., 
>> Pappas Telecasting Inc., filed for Chapter 11 Saturday with plans to 
>> sell its 30 TV stations under bankruptcy court protection.
>>
>> http://www.marketwatch.com/news/story/pappas-telecasting-files-bankruptcy-blames/story.aspx?guid=%7BBD3264A3%2D7A33%2D4F4C%2DA513%2DC5E210DC5C28%7D&dist=msr_1 
>>
>>
>>
>>
>>
>> _______________________________________________
>>
>> The BROADCAST [BC] list is sponsored by SystemsStore - Your Premium
>> Supplier Of Components To Build and Maintain A Technical Infrastructure
>> www.SystemsStore.com       Tel: 407-656-3719    Sales at SystemsStore.com
>>
>>
>>   
>