WSPX-TV offers alternative

CNY Business Journal (1996+), Sep 10, 1999 by L, Kim

SYRACUSE-WSPX, PAX-TV 56 Syracuse has made a pledge to its viewers. "We broadcast quality television that is free of senseless violence, free of explicit sex, and free of foul language. We pledge to deliver wholesome family entertainment, all day, every day." Delivering on that pledge is one thing. Making money on it is another. WSPX is a network-owned operation that officially hit the airwaves in February 1999. The station has taken a suite in Basile Rowe Commons in East Syracuse.

Unlike the other local stations for the four major networks-ABC, NBC, CBS and FOX-which are known as affiliates, WSPX, PAX-TV has no affiliate status. NBC, for example, is owned by General Electric, which dictates to local affiliate WSTM how many local breaks it can have to promote local news and information, and how many network promotions must be run, as well its own scheduled daily and nightly programming.

Because PAX-TV is network owned, it only broadcasts those programs owned and operated by the network.

"They want a very homogeneous look," says WSPX General Manager Robin Bombard. "They want PAX-TV in Syracuse to look exactly like PAX-TV in Los Angeles."

Another difference cited by Bombard concerns affiliate fees. WSTM must pay NBC an affiliate fee which, as programming costs and local-news production costs have escalated, has increased steadily over the last few years. "We don't have to pay an affiliate fee because we are owned and operated by Bud [Paxson], so what we make goes right to him anyway."

Paxson Communications Corporation, which owns PAX-TV, was begun by Paxson on Aug. 31, 1998. Paxson, a graduate of Syracuse University's Newhouse School and founder of the Home Shopping Network, launched PAX in more than 50 markets. The network is currently in 73 markets nationally. It is the nation's seventh and newest broadcast network. The foundation of PAX-TV's prime-time schedule (traditionally, 8 to I I p.m.) for this fall includes off-network series (shows that were canceled by the original producing network and picked up for production by PAX-TV), new anthology series, a variety show, and other original programming. Additionally, the line-up includes syndicated series from years gone by, as well as original specials and theatrical and made-fortelevision movies.

WSPX currently produces its own local spots for promotion out of its new facility. All spots are produced with approval from PAXTV's home office in West Palm Beach, Fla. The East Syracuse facility employs 13 people. Once the station has been in full production, that number will increase to 15.

"Everything is satellite fed," says Bombard. "We can run just like the station in L.A. with this many people. We have an engineer, our sales people, a traffic person who schedules al I of your commercials, and MCOs [Master Control Operators] who monitor the station 24 hours a day to ensure a clear signal."

As far as revenues are concerned, the station is receiving a fairly standard mix of local advertisers. Automotive manufacturers and dealers are consistent buyers, along with healthcare providers, such as hospitals and adult assisted-living facilities, grocery and furniture stores, and insurance agencies.

In terms of competition for the local advertising dollar, the fees charged by WSPX art! lower than the other stations. "We are less expensive," confirms Bombard. "I hate to say that, but we're the new kid on the block, so we are going to have to be cheaper out of the gate. If you're talking to an advertising agency that's doing a technical buy, and they're looking for sheer numbers, we're not going to be able to fall within their parameters at this time. We will be able to eventually. I'm sure we will by next year."

From the perspective of generating advertising dollars, being what it refers to as a "family-friendly network" can present some difficult financial decisions. Any potential advertisers for beer or wine are prohibited on the PAX network, as well as casino advertisements that specifically promote gambling, as opposed to entertainment or resort facilities. Even ads that might pass muster in those regards still may be refused airing.

"If there is anything that is questionable, the network will want the general manager to look at it and make sure that it is suitable for airing," says Bombard. "If the ads don't fit into that genre or our environment, then we can't accept them. Naturally, we could probably make more money if we accepted everything, but we don't, which is great. The network has made a pledge, and they're sticking to it."

Although Paxson has a presence in the nation's top 20 markets, it still has been struggling to find an audience for its rerun-heavy programming, often attracting less than one million of the 100 million households it reaches.

Apparently, Paxson has been successful enough, however, to interest one of the network giants to come knocking at its door. NBC is reportedly negotiating to buy approximately 32 percent of Paxson Communications Corp. If successful, the move would be worth more than $300 million at current stock values.