Monday, September 18, 2006

 

Republican's Troubles Hurting FNC?

Why should FNC President Roger Ailes be concerned what's happenning at The White House? Because it is having an effect on his 'news' channel. Matthew Flamm writes about the relationship between the two in THIS New York Business article. Below are excerpts from the article:

> I can't help but see a correlation between the political mood of the country and these ratings," says Jimmy Schaeffler, senior analyst for The Carmel Group, a media research company. "People have watched the pendulum swing in favor of Fox News, and now it's swinging the other way."

Under bare-knuckled boss Roger Ailes, Fox News has become the love-it-or-hate-it channel that no one has ever accused of being dull. It developed a strong following among Republicans in tandem with the Republican party's rise in popularity in the late 1990s and early in this century, according to a 2005 study by the nonpartisan Project for Excellence in Journalism.

But in the past two years, according to a survey by the Pew Research Center, Republicans have been tuning out international news and news about Iraq at more than double the rate of Democrats and Independents. It may be that some of them are also tuning out Fox News.

"There is widespread evidence, not so much that Republicans are changing their politics, but that they're becoming less motivated," says Andrew Tyndall, an independent television news analyst.

Fox News executives respond that the channel has no political leanings and that ratings declines are due to comparisons with a news-filled prior year--a period that featured the 2004 election, a tsunami, the deaths of Terry Schiavo and the Pope, and the disappearance of Natalee Holloway in Aruba.

"News is a cyclical business," says Bill Shine, senior vice president of programming. "This is not a big deal."

Mr. Shine also disputes the notion that Fox's shows may have matured. He points out that programming stability has been a hallmark of the channel, in contrast to its rivals' far less successful programming. "What we have is working, and everybody.""

> According to Nielsen Media Research, Fox News' prime-time ratings in the third quarter through Aug. 27--which excludes comparisons with Hurricane Katrina last September--are down 23% in total viewers.

Some of that is due to the ratings plunge for On the Record With Greta Van Susteren, which focused heavily on Ms. Holloway last summer. But talk shows The O'Reilly Factor and Hannity & Colmes are also down by double digits in total viewers.

Meanwhile, CNN's prime-time ratings, with a big boost from Anderson Cooper, are up by double digits, as is MSNBC's, during this period.

Fox's ratings dip could make it harder for the network to get the $1-per-subscriber fee it wants from cable and satellite operators, which have only had to pay around 25 cents per subscriber since the network launched. "[Cable operators] are going to be skeptical," says Derek Baine, cable analyst at Kagan.

Fox News' downward trend could also mean tougher negotiations with advertisers next year. "Fox still has a substantial viewer advantage," says Lyle Schwartz, director of national broadcast research at GroupM, the media planning division of ad giant WPP. "But the momentum is not in their favor."



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