An entrepreneurial strategy for progressive cable TV

Yesterday I wrote about an important opportunity for making cable TV a bit more progressive - the possibility of replacing Tucker Carlson with a progressive on MSNBC. The comments on that post showed clearly that there are a lot of people thinking about how to make cable more progressive - ranging from a wide-ranging debate on who should represent progressives on cable TV, to a thoughtful post on how to schedule a progressive evening lineup, and more. I think this kind of energy is really valuable, and I hope that it's not wasted on MSNBC. While the channel does appear willing to experiment with progressive voices, it will never be a reliable progressive cable channel, and we shouldn't expect it to be. Instead, we should be planning to create our own progressive cable channel. Luckily, recent FCC rulings have just made that a little bit easier.

On Wednesday, the FCC slashed rates on leased cable access to 10 cents per subscriber per month. With leased access, independent programmers can pay to gain access to part of a cable carrier's lineup. Rates on leased access were about four times higher prior to Wednesday's decision.

Over the past couple of weeks, I've exchanged a few emails with Bob Fertik, President of Democrats.com, about the FCC's various efforts to regulate cable. We both agree that this decision opens a door for liberal entrepreneurs to begin laying the groundwork for a national progressive cable news channel. (And I should also give credit to a friend of Bob, who spoke to me about some of the broad outlines of a strategy for progressive cable, which I outline below.) The basic strategy is simple: line up prime time leased access on cable channels in a number of major media markets, and put progressive programming in that time. If that strategy can succeed with representation in many major markets, then we might be able to leverage it into a dedicated national channel. While the strategy is simple, it's certainly not easy. Over the flip, I'll have more on what we will need to pull together to get this idea to be successful, and opportunities for liberal entrepreneurs to make money while creating a national progressive cable network.

Costs and advertisers
As a simple back-of-the-envelope calculation, let's consider a cable channel like the Ohio News Network, which clearly covers an important area from an electoral point of view.  The ONN has about 1.5 million subscribers, in markets that include Cleveland, Cincinnati, and Columbus.  Under the new FCC regulations, leasing 24 hours of access to the channel will now cost about $150,000 / month.  Leasing two hours of prime time will cost significantly less - obviously not 1/12th the cost, but perhaps 1/6th the cost of a full day's access; we'll call it $25,000 / month.  What that means is that a progressive cable news channel will have to earn at least $25,000 / month in advertising - and probably considerably more, to cover the costs of programming, equipment, facilities, personnel, and so on.

This is the first problem which liberal entrepreneurs hoping to create a progressive cable news channel have to solve: finding monthly advertising.  Fortunately, there's not a lot of competition.  There are only a handful of shows where an advertiser looking to reach a targeted progressive cable audience can go.  The existing progressive satellite TV channels (Link TV, Real News and Free Speech TV) are all non-profit and don't take advertising.  Progressive shows like Countdown are not particularly well-marketed to progressive audiences by their corporate parents, and I suspect that the marketing flubs are mirrored in a similar inability to attract advertisers who want to reach a progressive audience.  I believe that there is an opportunity to get considerable advertising from companies who are reaching a progressive audience.  What's more, as the 2008 election picks up steam, there will be more and more money available from Democratic candidates to advertise on progressive TV.  (Whether the candidates wise up and take advantage of the opportunity to reach a geographically and politically segmented audience is another matter.)

I think it'd be interesting to see a liberal entrepreneur create a cable television advertising representation company to sell prospective advertising spots on a progressive cable news channel.  Such a company would focus on market research, would identify the demographics of those likely to watch such a channel, would identify products and services which would likely be popular among those demographics, and would make a case to businesses that advertising on such a channel would be good for the bottom line.  Naturally, it would be difficult to sell advertising on a channel that doesn't yet exist, but if such a company could succeed in lining up potential advertisers, we could solve an important piece of the puzzle.

Programming and Marketing/Adoption
Lining up programming for progressive cable is a challenging but fun problem to solve.  Fortunately, there are already a few solutions on offer - in particular, the lineups for satellite networks Link TV, Real News, and Free Speech TV.  The comments on yesterday's blog post also brought to the surface a whole flurry of suggestions for potential progressive media figures who could become talk show hosts and cable pundits, and some pretty interesting thoughts about structuring the lineup to maximize audience flow.

Unfortunately, programming is only half of the problem.  The other half of the problem - and what appears to be the reason that Donahue floundered on MSNBC - is marketing the programming to a progressive audience, and/or organic adoption of the programming.  Back in 2003, Donahue didn't have executives willing to market his program to a targeted progressive audience; the progressive blogosphere was not yet strong enough to drive organic adoption; and YouTube was nowhere to be found.  He simply could not find an audience. (Update: An alert reader points me to an interview posted at Media Matters - conducted on Hannity and Colmes, of all places - which points out that Donahue's numbers were higher than anyone else's at MSNBC in early 2003. Execs just didn't like the fact that he was so liberal. Yet another reason why we shouldn't trust MSNBC to be a progressive standard-bearer, and should form our own network.)

Nowadays, the progressive blogosphere and other elements of the netroots, like DFA and Drinking Liberally, are plenty strong enough to drive organic adoption of a cable lineup.  Indeed, we are already doing just that for Countdown, the Daily Show, and the Colbert Report.  What I find a bit surprising is that we are not really doing the same for the three progressive satellite TV channels which are already up and running.  I'm not entirely sure why that is, although I have some guesses.  For example, it's possible that the channels aren't widely enough distributed (they each reach about 20-30 million households); or that their programming does not really relate to the kinds of topics we tend to talk about in the progressive blogosphere; or that they don't do enough to post their shows to YouTube.

This question is important, because if a progressive cable channel will succeed, it will require either a hefty marketing budget, or broad organic adoption of its programming through YouTube and blogosphere embeds.  Since a hefty marketing budget for progressive cable isn't likely to appear out of thin air, we'll have to build the audience for progressive cable through cost-effective blogosphere advertising and word-of-mouth embeds.

Yesterday's comments, incidentally, provided an interesting idea which could both generate new programming, and help drive organic adoption: a YouTube-driven, American Idol-style competition for talk show hosts.  (Full disclosure, this idea was provided by my Drinking Liberally co-host.)  I could easily see this idea turning into a fantastic website, focused on building a fan base for a variety of progressive media personalities, who would eventually become hosts, guests and pundits for a progressive cable channel.  It would be easy enough to monetize a site like that with advertising or ticket sales and other merchandise related to real-world appearances by those media figures.  (My guess is that some of the next generation of TV pundits will come from progressive comedians.)

Regardless of whether such an idea would actually fly, I believe it's important to tie together programming development with marketing/adoption concerns.  We now have a whole movement capable of driving organic adoption of progressive cable, and we should design programming and outreach efforts which take advantage of that.

Getting a foot in the door, and tying it all together
So far, I've focused on problems in progressive cable development with liberal entrepreneurs can directly address in a way which is sustainable and feasible without a significant investment of capital - things gathering prospective advertisers, building a prospective audience online, etc.  However, the success of all of this clearly hinges on the possibility of actually putting together blocks of leased access cable time in a variety of major metropolitan areas.  That means finding a string of existing cable channels for which we could actually lease prime time hours.  To return to my earlier example, while ONN might be an attractive network on which to lease access from an electoral point of view, the network isn't required to lease access.  Particularly for prime time, finding leased access availability is very difficult, because many cable channels already make lucrative use of that time.

The trick will almost certainly revolve around finding channels which are struggling, and cannot currently successfully compete with other channels in their market.  It will also probably require at least a few individuals with good connections in the world of cable TV, who will be able to guide an application for leased access to successful completion.

In this case, I think there is some room for progressive activists to join in the effort.  For example, crowdsourcing can help identify struggling cable channels throughout the country - identifiable as those channels which are already struggling to field successful and stable programs during prime-time, or even during off-hours.  To consider a more elaborate example, progressive activists can work together, perhaps using wikis or similar tools, to develop a sort of pro-forma business plan for a progressive cable channel in a single major media market; such a plan could be adapted and tweaked for a string of channels throughout the country, and could help facilitate successful leased access applications.  (h/t to Bob Fertik for this idea.)

At the end of the day, I believe that creating a national progressive cable channel will be a huge and complex undertaking, which will require overlapping efforts from a number of overlapping entrepreneurial ventures, as well as a stable of well-connected cable executives who can help facilitate the process of obtaining prime time leased access.  Nevertheless, the FCC's decision this week made the effort much more attainable, and we should make use of this golden opportunity.

Comments

FCC's various efforts to regulate cable dtv

With the transition to digital television ahead of us, I can't think of a more important time to take such actions on reating a prog channel. Forget cable and satellite, internet tv is the wave of the future. dtv dude

Poor Sales Dude

Hey if you think your life is hard I have to try and sell you those packages. In fairness it is an easy product to sell. The regionalisation allows us to sell the same package more than one. Imagine if you could sell advertising on websites more than once, based on the IP address of the customer. That is what it is like

Getting cable executives who

Getting cable executives who can help facilitate the process of obtaining prime time leased access will be a uphill battle. I suggest lobbying as well as finding som "liberal" financiers.

It's definitely important to

It's definitely important to tie together programming development with marketing, but I just don't agree with the whole idea of organic adoption of progressive cable. It'll have to be a grass roots campaign.

Possible alternative

A better approach would possibly be to go after internet TV which is gaining fast ground over the last year. I think both cable and satellite tv providers are in trouble.

You should feel lucky you

You should feel lucky you have this. I have a cable firm that provides some channels that don`t need to be watched. I don`t know who watches them. Not even HBO, so you can see a good movie, the only thing good are the news, and that`s about all. _________________ Royal Caribbean

A national "progressive"

A national "progressive" channel would certainly be a breath of fresh air--especially down here in the "red" states. But honestly, I would settle for a "neutral" channel at this point. There is so much biased and obviously slanted information spewing forth, especially from local news sources in the deep south.

cable TV vs. satellite TV

Excellent article and comments. However, I think cable television is becoming extinct. It will eventually be replaced by satellite TV which is becoming the norm, especially in locales outside the United States.

Cable TKOs Satellite

Even though satellite tv saw a spike in sales in the past few years, I think that most people will end up going with or switching to cable. The reason is cable's 'Triple Play' packages. Most cable companies now offers cable tv, high-speed Internet, and phone service for one price. When you can get all that from one place, people will like the convenience. Maybe satellite will reign supreme outside the US, but most people will choose cable if it's available where they live.

Dish Network, Sirius, and TiVO Join Forces

Not only that, but Dish TV is going to focus in SIRIUS radio. DIRECTV and TiVo will work together to develop a version of the TiVo® service for DIRECTV's broadband-enabled HD DVR platform. Thanks for your article. It was very informative.

Satellite channels are

Satellite channels are growing rapidly, more and more channels becoming available, also in HD. It makes you wonder how they can fit the bandwidth for the HD channels on the existing transponders, can imagine many of todays Digital channels will move strictly to HD, like the current situation with analogue tv.

Both cable and satellite TV

Both cable and satellite TV suffer from bandwidth restrictions and digital compression artifacts. Over the air digital TV is still compressed but at a lower rate than that of cable and satellite and offers the best picture quality. Although such artifacts would probably not be of concern to those viewers of news and political commentary programs, it is worth noting that until TV viewing is returned to a situation where TV reception is primarily "over the air" via an antenna - viewers will have to settle for substandard signals on their expensive LCD and Plasma HDTVs. The way to achieve that would be for the proposed national network to relay the signal via BIG dish satellite to each viewing market for retransmission via a broadcast tower - just like in the good old days of analog TV.

thanxs

Very interesting. I got a lot of quality information I can use on the podcasts that I have planned. Thanks

interesting subject

great its very interesting subject we wait for more i open yoor plges every day so I got a lot of quality information