Fox Not Hot To Trot: Chernin Unhappy With 4Q Performance

On the eve of a surefire ratings liftoff from "American Idol," News Corp.'s President-COO Peter Chernin says the company is unhappy with the Fox network's performance in the fourth quarter. And, seemingly for the first time, he acknowledged that the fledgling, foundering MyNetworkTV is in need of a major overhaul.

"I don't believe we put on the right shows on Fox this fall. We need to do better and we will do better," he said at an investor conference this week.

None of Fox's new scripted shows has cracked the top-80 in the 18-to-49 rankings. Also, the network only has two shows--"House" and "The Simpsons"--in the top 20, while its overall ratings in key demos are down. (Chernin blamed poor ratings for the baseball playoffs.)

But Fox has "Idol" and the debut of "24" to fuel a comeback, which could again propel it upward going into the upfront.

MyNetworkTV, however, appears to have no savior on the horizon, especially if it sticks with an all-telenovela format. News Corp. executives have tried to paint a rosy picture of the freshmen network despite 18-to-49 ratings failing to post even a .5.

advertisement

advertisement

Now, Chernin says the network has performed below expectations, and the company--including himself--is focused on turning it around.

"We are not happy with the way MyNetworkTV is going ... a little bit rougher than we expected, and the ratings are a little bit softer," he said.

MNTV was formed principally to give News Corp.'s 10 stations affiliated with the defunct UPN network a programming replacement, but its lackluster performance is having a negative impact on stations' revenues, Chernin said. Among the 10 stations are outlets in New York, LA and Chicago.

With Fox's less-than-stellar performance and MNTV a trouble spot, Chernin said the television segment "is probably our biggest concern as a company."

Among the reasons that he cited--in addition to dismal programming--is "the death of the re-run." Networks used to garner significant revenues by airing an episode more than once, but consumer appetite for already-seen shows appears to be drying up, although networks still pay hefty production fees.

"The re-run (ratings) have disappeared," he said. ABC, with serials such as "Lost," as well as Fox with "24," has opted for a first-run-only strategy.

One caveat: Chernin said offering already-aired shows on the Internet, on-demand and ad-supported, gives networks a chance to recoup some of the costs. For example, he cited Fox's library shows such as "Bones" and "Prison Break" on its sister MySpace property as a "great opportunity to monetize the repeat viewing of that content."

Separately, Chernin said he expects the Fox Business Channel to debut later this year. The company has secured distribution in more than 30 million homes without paying for carriage or giving operators a reduction in payment to carry the sister Fox News Channel in exchange for carrying FBC.

Vis-à-vis CNBC, Chernin said FBC can compete by being "livelier," "more fun" and "more dynamic."

Next story loading loading..