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To: Bryan Arnold who wrote (2391)8/26/1998 8:04:00 AM
From: John M Connolly  Respond to of 4613
 
Bryan, The network costs need a haircut, however some of the reports are saying that the TV network could be for sale! I doubt if the network is for sale as it is the key to all the other station group.
It is a necessary evil, and it needs to break even at least. All the new programs running this year are partially owned by the network
and the residuals from these programs could go a long way to putting the networks back in control. In the past the networks would make a show famous and they would get the ad revenue and that was it. For example ER made famous by NBC and it costs them 13 M an episode. the new deal would be if ER was a new show - so much per episode and if the show goes into syndication - 25% of the syndication revenue would go to NBC.
Of course there is also the effect of HDTV and as yet I cannot get a handle of the effect this could have.
John