• by Wayne Friedman , Staff Writer, February 12, 2009

The broadcast network business is tough enough in this economy. Imagine if you are a MyNetworkTV broadcast station affiliate! You are not even part of a fourth-placed network (that honor goes to NBC), or a fifth place network or a sixth. You're in seventh place behind The CW.

And now the network's senior executives have decided they really can't compete in the original-programming arena -- one of the primary reasons for being part of a network.

MyNetworkTV has decided to become a "program service" -- essentially, a TV syndicator looking to program off-network series and old theatrical film packages. One of its first moves as a program service was buying up reruns of the NBC hour-long drama "Law & Order: Criminal Intent."

If you are a MyNetworkTV affiliate, you're probably thinking, didn't I sign up to become a "network affiliate" to get away from what syndication programming brings, shows that are sold  at a 20% discount from what network programs are charging advertisers on a cost-per-thousand-viewer  (CPMs) basis?

If you are an MNTV affiliate, you are already suffering some shocking results when it comes to your local advertising revenues. Now this.

MyNetworkTV says it is abandoning original programming efforts because, according to President Greg Meidel: "The economic situation in the country makes it impossible to support the high costs of original programs. We did not have the $3 million or $4 million an hour that programming now costs."

But perhaps MNTV might have the $1 million or so per episode needed to make reality shows. Don't cable networks do that kind of stuff -- for even less money?

MyNetwork's situation says plenty about the business: that even reality shows aren't enough to fill a schedule; and that being called a "broadcast network" -- of any size -- has questionable value.  

Cable networks can now be found to beat -- in straight head-to-head ratings -- broadcast networks like The CW and MyNetworkTV.

For a long time, TV stations had been a 50% profit margin business. It was a lock. Of course, newspaper owners used to say the same thing.

Here's the good news, then: At least local TV stations can rerun TV programs. It's harder for local newspapers to reprint old news .