Commentary

Oprah Leaving? Then Where Is Syndication Going?

by Wayne Friedman , Staff Writer, November 6, 2009

Oprah Winfrey leaving her roots among TV stations could be the last move in a quick triple play gone wrong for the industry.

First, TV stations have been -- and still are -- hit with the worst advertising market in decades, perhaps ever, with many TV groups sinking a massive 30% and more in advertising revenues in recent periods.

Next, more recently, stations say they are being bumped out of line line, with broadcast networks looking to grab some retransmission fees that seemingly were all going to station coffers.

Now perhaps one of the biggest faces of the airwaves -- and the national TV syndication business -- Oprah Winfrey, looks to be moving out. To add insult to injury, she's probably heading to broadcast stations' long-time competitor, the cable industry.

Everyone is looking for a little extra cash these days.

Broadcast networks want retransmission money from cable operators -- and now their TV stations. Cable operators want "TV Everywhere" money from consumers they don't control. New digital TV programmers want separate fees from consumers, as well as advertising dollars.

And TV stations? They just want to survive -- whoever is willing to pay the bills.

It's no secret that while "The Oprah Winfrey Show" pulls in big advertising dollars per year for CBS Television Distribution, local TV stations have been getting big advertising benefits. (One saving grace to losing Oprah: stations would also be parting with her large license fees.)

Oprah isn't the whole TV syndication marketplace, nor does she represent all of TV stations' local ad dollars. But emotionally she puts a strong individual face on the marketplace for many viewers.

Those viewers will follow her anywhere -- and Discovery Communications may be dictating the marching orders. Dealing with her as a partner in the massive undertaking of a new cable channel, OWN, Discovery will need her strong voice to carry the network.

In recent years broadcast networks have had to part with, or share, off-network sitcoms like "Friends," "Seinfeld," and "Everybody Loves Raymond" with cable networks. That may have seemed OK at the time, with syndication still having its first-run TV shows as the major differential between it and cable.

In the wake of a possible Oprah departure, TV stations executives must be thinking, what or who is next -- "Wheel of Fortune," "Dr. Phil," "Entertainment Tonight," "Rachael Ray" or "Judge Judy"?

3 comments about "Oprah Leaving? Then Where Is Syndication Going? ".

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Todd Koerner from e-merge Media, November 6, 2009 at 1:28 p.m.
With rumors swirling about that the broadcast networks are contemplating a move to cable, we are left wondering what will fill the hours left open for station owners - reruns, talk shows, etc.? I am buoyed by the success of Legend of the Seeker and predict that, in the event that any networks migrate to cable (and/or The CW disappears), there will be a renaissance of sorts for the old hour-long syndicated dramas along the lines of Xena, V.I.P. and Relic Hunter.
As one who plies that trade, I can only hope...
Reply

Douglas Ferguson from College of Charleston, November 6, 2009 at 4:25 p.m.

No one wants to read another post from me, so I'll be brief: Last one out, please turn out the lights!

Mark Richards from The Game Show Company, November 7, 2009 at 4:46 a.m.

Having been involved in the TV game show industry for many years - I am putting the finishing touches on a great concept for local TV stations big and small. It's a Monday thru Friday "game show" produced in a station's very own studio and it won't cost the station a red cent. In fact, a station is paid $3,000 just to cover production costs (five half-hour shows are taped once a week in just under 4 hours) and stations retain ALL six minutes of commercial inventory . . . and the prize? The weekly winner and a guest will enjoy an all-expense paid trip to Las Vegas for a 4 day/3 night stay at a major strip resort, VIP show tickets, $500 food credit plus $5,000 in spending cash. So who covers the costs for all of this? The locals in each market who want to be contestants on the show. (And the FCC says it's OK since it's a game of "skill" and not a game of "chance." Without going into details of the game, 24 contestants participate each week generating $12,000 from the buy-ins. The local TV station is paid $3,000 for a 5-hour shoot and the winning contestant is paid $5,000 cash. (Total $8,000) The remaining $4,000 covers the roundtrip air and hotel stay for the weekly winner and his/her guest and compensation to the Host. So a local station is receiving $3,000 to bang out five 1/2 hours shows; stations pay NO license fees and there are NO barter spots! If a station decides to air the game show during the early evening hour (best time for a game show) and a 30-second spot runs $300 and the station gives 3 minutes to the syndicator for national spots, that's $1,800 per broadcast X 5 days a week for a total of $9,000 a week; $36,000 a month or $432,000 a year. This amount of money can go towards keeping their news department alive and retain many of their talented anchors, reporters and producers.