Dean Nelson is the Chairman and CEO of Channel One’s parent company PRIMEDIA. Today he discussed Channel One at the Credit Suisse’s Media Week conference in New York City.
If you were one of the remaining employees of Channel One and you listened to what Mr. Nelson had to say, you would be at Kinko’s tonight making copies of your resume. Something will happen soon. Judy Harris isn’t getting it done.
Channel One is Channel Done.
Nelson said PRIMEDIA is studying their "options" with Channel One. He didn’t say what options they are studying. PRIMEDIA could continue the business and continue to lose money. Advertisers are not going to come back to Channel One News. It is "damaged goods." It is a dead brand.
Even if advertisers come back, they will not pay much for ad time. Channel One has a massive non-compliance problem. Few schools that we know of are honoring the contract. Advertisers know this too.
PRIMEDIA could sell the company, but what company would buy this stink bomb? Any type of due diligence by a potential purchaser would expose all the public outrage over the program and its classroom advertising. About four years ago, PRIMEDIA hired Allen & Company to try to find a buyer for Channel One or a company that would like to invest in C1. Nada. Zilch. No company has come forward to purchase Channel One. Now with Channel One’s prospects even dimmer, there is even less chance of a sale.
PRIMEDIA could just close the doors of Channel One and say, "Enough, already. Everybody go home." Maybe the company would deed all the antiquated Channel One equipment to schools. We don’t know the tax or legal implications, but sometimes you just have to walk away from something, especially if it’s on fire. [From Jim To Judy]
We don’t know what option PRIMEDIA will take, but it doesn’t sound like the option of investing more money in Channel One is being considered. PRIMEDIA does not believe in Channel One News anymore.
Seven million students may soon get a bunch more school time to learn and study.
It’s been a long strange journey for all the parents, teachers, and students that have fought so long against this commercial exploitation of schoolchildren. Showing commercials during school time was never a good idea. It was always a bad idea. Bad ideas don’t last forever.
It looks like we’re coming to a stop.
It’s the end of the line.
