On March
15, 2004, PRIMEDIA, Inc. released this information about
Channel One News.
" Advertising revenues, which are generated
primarily by Channel One, decreased $13,920 in 2002 compared to
2001. The decline was due to the expiration of long-term contracts
as well as decreases in non-cash revenue items such as barter and
assets-for-equity revenue transactions. Revenue recognized in connection
with assets-for-equity transactions was approximately $9,400 in
2001, with no such revenues recorded in 2002. For the years ended
December 31, 2002 and 2001, revenue from barter transactions was
approximately $3,000 and $6,200, respectively, with equal related
expense amounts in each year."
| $ millions |
Years Ended December 31, |
Percent Change |
||
|
2002*
|
2001*
|
|||
|
Advertising Revenue, net
|
$50.2
|
64.1
|
– 21.7 %
|
|
* This is confusing. This should be a comparison between 2003
and 2002, but we copied this directly from PRIMEDIA’s financial
statements. It is hard to imagine them repeatedly misstating
the years. We believe PRIMEDIA means to say that for the year 2003 ad
revenue for Channel One was off by 21.7%.
On May 10, 2004, PRIMEDIA,
Inc. released this information about Channel One News.
" Education and Training advertising revenues, which are generated entirely
by Channel One, decreased $1,674 in 2004 as compared to 2003. Channel One’s advertising
revenue declined as a result of reduced spending by several food and beverage
accounts and the absence of any barter deals in 2004, partially offset by revenue
gains from additional health and beauty brands, movies and telecommunications
firms."
Key Action Steps to Improve Performance
The Company is working to improve Channel One’s sales effectiveness by
better addressing the growing retail and health and beauty aids sectors."
| $ millions |
First Quarter
|
Percent Change |
||
|
2004
|
2003
|
|||
|
Advertising Revenue, net
|
$9.9
|
11.6
|
– 14.4 %
|
|
On August 5, 2004, PRIMEDIA,
Inc. released this information about Channel One News.
‘Advertising revenues, which are all from
Channel One, were $9.2 million, down $2.4 million or 20.7% in the
second quarter 2004. Advertising gains from movies, television
networks, military recruitment and other clients were offset by
reduced spending from certain food and beverage accounts."
‘Key action steps to improve performance in the Education and Training
Segment include: Improving Channel One’s sales effectiveness by focusing
the sales team
| $ millions |
Second Quarter
|
Percent Change |
||
|
2004
|
2003
|
|||
|
Advertising Revenue, net
|
$9.2
|
11.6
|
– 20.7 %
|
|
It is getting uglier and uglier at Channel One. As more and more
schools turn off Channel One, more and more advertisers are dropping
off the show. Unfortunately, movie studios and junk food peddlers
remain on Channel One News.
From Ken McNatt:
CHANNEL ONE 2003-2004 Financial Report –
FINAL
Final Tally for the 2003-2004 School Year
Quarter Episodes Revenue Per Episode Revenue
3-03 36 $6.6 Million $183,333.33
4-03 58 $15 Million $258,620.69
1-04 61 $10 Million $163,934.43
2-04 46** $9.2 Million $200,000.00
03-04 YR 201** $40.8 Million $202,985.07
Revenue Per Channel One Student:
Based on 8 Million – $5.10
Based on 5.7 Million – $7.16
Revenue Per Channel One School:
Based on 12,000 Schools – $3,400
Based on 8,000 Schools – $5,100
**Does not include Ronald Reagan Tribute Episode
Month By Month Episode Numbers
August 2003 15
September 2003 21
October 2003 23
November 2003 18
December 2003 17
January 2004 19
February 2004 19
March 2004 23
April 2004 22
May 2004 20
June 2004 4**
**Does not include Ronald Reagan Tribute Episode
Source of Primedia Financial Information: PRIMEDIA
From Jim Metrock: Ken is college student
that has done much to raise awareness of Channel One. The information
he has compiled above confirms Obligation’s observations.
The bottom line is this: In the late 90’s
Channel One News was receiving, by some reports, $200,000 for one
30-second ad spot. Today, Channel One receives about $200,000 for
an entire show. One show usually contains four 30-second ads and
to make it even worse, now Channel One has added advertising content
outside the formal spots. This company’s revenue has been cut from
$800,000 per show to $200,000.
The effort to remove Channel One News from
schools is working. Those who believe in commercial-free classrooms
ARE WINNING.
Let’s hope the death of Channel One News
comes quickly.
