In 1997, Forbes magazine reported Channel One News made $70,000,000 in revenue in 1996.
Earlier this year, PRIMEDIA, Channel One’s parent company, reported that Channel One News made $10,000,000 in the first quarter ending March 31, 2004. We have reported on this before, but it is important to review this stunning information as we go into 2005 to understand the “train wreck” Channel One has become.
The first quarter is as good as it gets for Channel One. There are 63 broadcast days in this particular period. Assuming four 30-second spots on each show that means there are 252 commercials in the quarter. Divide $10,00,000 by 252 and one gets $39,000 per commercial spot. That is more than a 50% drop from 1996. In 1996, Channel One apparently average $87,500 per commercial (200 days X 4 ads per day = 800 commercials. $70,000,000 / 800 = $87,500 per commercial.)
Channel One News is making one-half the revenue it made eight years ago.
You don’t have to be a MBA grad to understand this company is trending the wrong way for their owners. The efforts of the Channel One management over the last eight years have made their company much, much smaller. You don’t give Christmas bonuses for making a company’s profit disappear.
Obligation’s Jim Metrock said, “Channel One News has made so many dumb and ugly mistakes that it is a wonder they are still making any money at all. Just this week, they decide to make their company, once again, a lightning rod for controversy when they ran provocative commercials for Herbal Essence shampoo. Schools are tired of defending this irresponsible company, and advertisers understand that Channel One can no longer deliver the millions of students they once claimed. The trend with Channel One News is wonderful. Parents, teachers, and students are beating back this exploitative company.”
