• by Wayne Friedman , Staff Writer, February 7, 2008

TV stations are finally getting the extra programming platform they always wanted. But could it be too much of a good thing? At the same time, can new digital local-based TV networks find their place?

Thanks to all those new multicast signals -- by way of their primary digital signals -- TV station groups are seemingly looking more like cable operators, signing deals from small and niche programmers, to fill entire channels.

From a station's point of view, why not? It's mostly found money. Stations get mostly half the advertising time (or half the revenue from paid programming, i.e. infomercials). Plus they don't have to set up marketing or  trafficking, or offer back-office operations.

The irony is, after fighting with local cable systems, stations now get to play like a cable operator. But that's not the complete story, as they'll still need to deal with cable systems for coverage of those multicast signals.

From the multicast network perspective, getting carriage won't be easy for these new network businesses focusing on minorities, sports, retro TV, old movies, and music programming.

Just like national program syndicators -- or start-up national cable networks -- they'll all need to have broad-based clearances to attract advertisers. A more complicated task exists if they look to sell a combination of national, local, or regional advertising.

Stations have cherished the opportunity to have more advertising inventory -- especially with high-rated local inventory from syndicated shows like "Oprah" or "Entertainment Tonight." But now stations are concerned the inventory from these deals will be of the low-rent quality, which will just flood the market with other low-rated advertising inventory -- say, from all those syndicated court shows.

Ratings for these networks will be small -- perhaps smaller than the lowest rated cable networks. In a digital world full of tiny video platforms, we are told everything appears to be for sale.

For these digital TV network wannabes, however, finding the right niche audience won't be easy. In the new fabric of the digital video world, part-traditional, part-new-age TV channels will need to find new marketplace seams.