• by Wayne Friedman , Staff Writer, July 1, 2005

The TV news business is changing from all ports of call - all the way from Fort Lee, N.J. to Qatar in the Middle East.

The controversial Middle East news network Al Jazeera is looking to expand into the United States with an English-language cable news channel sometime in 2006. At the same time, a New York Post report says NBC Universal is considering merging its New York City-based networks news operations with its Fort Lee-based cable operations to be headquartered in Fort Lee.

The two stories aren't related. But, it amplifies the strains and opportunities of the TV news business. Constantly under financial pressure to make ends meet, U.S. broadcast networks are now, more than ever, searching for answers to stop the weakening economics of network news TV shows. For years, the answer came from seemingly one area -- cable networks.

NBC Universal's CNBC, its financial news channel, is a profitable and strong venture. But its generic news channel MSNBC is flagging.

The network - except for a brief surge during last year's political conventions - is seemingly stuck in third or fourth place among all cable news networks. Viewership hasn't improved much, nor has its advertising sales revenues. It is also mired in a 50-50 partnership with Microsoft Corp., a company who has whined at times about getting out of the content TV business.

In the middle of all this comes Al Jazeera - the controversial Middle East news network from the wealthy ruler and entrepreneur of Qatar. Al-Jazeera has been known to air tapes from terrorist organizations. Additionally, it is believed that beheadings have been aired - something the channel denies. The channel has been often criticized in the United States for being a mouthpiece for terrorism.

Interestingly, now Al Jazeera says it derives a substantial piece of its income from the sale of those terrorist tapes to U.S. networks such as CNN and Fox News.

If Al-Jazeera gets a foothold in the United States, it could get some initial gawker treatment for its perspective. Long-term, it could become a Fox News on the opposite side of the political spectrum.

But first it needs to deal with its legacy. Will its controversial rap stop it from getting cable distribution from cable operators? Only if it doesn't get viewers - or money per subscriber -- which is what cable operators seek.

For NBC, there is no controversy over its TV news efforts - only plain business facts: More viewers to watch and more sales from its advertisers.