Why Local News Is in a Sharing Mood

WHY LOCAL NEWS IS IN A SHARING MOOD
[SOURCE: Broadcasting&Cable, AUTHOR: Allison Romano]
From top-10 markets such as Philadelphia to small outposts such as LaCrosse-Eau Claire (WI), stations across the country are adding news to increase market share and boost profits. The most popular effort is a “news share,” where a Big Three station -- an NBC, ABC or CBS outlet -- produces a newscast for a Fox affiliate or a soon-to-be CW or MNT station. The programs are not simulcasts but original newscasts for the partner. Today, nearly three dozen markets feature such newscasts, and new deals are inked almost weekly. This influx of local news comes at a time when the TV-ad market is struggling and TV stations are under increased pressure to cultivate new revenue sources. Many are building digital products, such as elaborate Websites and wireless services, to grow future revenues, but, so far, the businesses are young and returns modest. Local news, in contrast, is a proven moneymaker. News accounts for as much as 50% of a station's revenue, and by launching more newscasts, stations are relying on their bread-and-butter product. A station in a midsize market can make $1 million in added annual revenue producing news for another affiliate in town. Such a deal also helps a newsroom to amortize expenses for high-priced anchors and equipment over extra time periods.
http://www.broadcastingcable.com/article/CA6359719.html?display=Feature

Also see --
* What's New in the Newsroom
http://www.broadcastingcable.com/article/CA6359718.html?display=Feature