A multitude of int'l news services.

Prestige, Influence, Glory, But No Money

News flash: "There are far too many TV news services in the world. Most are struggling and bleeding financially; only a few will survive."

This begs the multimillion dollar question: Why are there so many media owners desperate to enter the national and global information arenas? It can't be the money, these ventures tend to lose money. Some argue that there may be a political agenda to it all.

Ted Turner's Cable News Network International (CNNI), the pioneering satellite-delivered global news service, is celebrating its 10th anniversary this year. Turner's U.S. and international news networks are in more than 150 million TV homes. They are currently profitable (combined, they reported a 16 per cent rise in revenues to $189.7 million in the fourth quarter of 1994). Yet, they do not perform as well as his entertainment operations, and this comes after several years of colossal losses.

Peter Vesey, vp of CNNI, recently admitted this much to a reporter: "Everyone loses money starting up, without fail."

CNNI's long-time rival in Europe has been the 24-hour Sky News, one of the networks available from London-based BSkyB, the satellite TV network controlled by Rupert Murdoch. BSkyB, which also includes sports and a family entertainment channel, has impressed media analysts with its growing operating profits. But, Sky News itself is a loss-maker.

Euronews, the multilingual network started by European public broadcasters, needs commercial investors to survive. Its future in the TV universe was constantly under threat as shareholders tired of pouring money down the broadcast equivalent of a black hole.

The BBC in the U.K. has also linked up with private investors to launch BBC World, its new global news service. The commercial partners are U.K. media group Pearson and U.S. cable operator Cox Communications. The loss-making potential of launching another news network has not discouraged BBC Worldwide, BBC's commercial arm.

The first BBC World was launched in Europe in January. Replacing BBC World Service Television, which reportedly lost [pounds]5 million in 1994, BBC World will offer European viewers another all-day, all-night international news channel. It is the BBCs first venture into advertising-funded TV and is already in eight million homes. The U.S., the Middle East, Africa and Asia are also on the agenda.

London-based international media analyst Rex Winsbury argued that these news organizations are hoping to use their operations to gain some influence in international politics. It is not the ultimate goal, he stressed. But any news service that makes a positive impression on any national government gains some kudos for its reputation.

Other observers point to the removal of the BBC's World Service Television from STAR-TV, the pan-Asian satellite network also owned by Rupert Murdoch, as evidence for this view. It was originally on the satellite's powerful northern beam. But its frank coverage of human rights abuse in China angered the Chinese government. STAR was reportedly forced to remove the service to the southern beam, which reached fewer homes, excluding China.

STAR-TV denies any pressure from Beijing, which has banned the use of satellite dishes in mainland China. It insists the BBC's low audience figures did not make it commercially viable to keep it on air. Some have found this hard to believe as the BBC was part of the programming package that was received in about 35 million TV homes. In addition, Murdoch's strong impact on U.K. politics through owning five British national newspapers is well known.

The BBC World is determined to expand its activities in Asia, where it is currently in Hong Kong via Wharf Cable and in 7.2 million homes via STAR-TV's southern beam. But its removal from the northern beam has created a gap for CNNI to capitalize on. Murdoch, who has also linked up with the TV division of news agency Reuters in agreements with Fox TV in the U.S. and Sky News in the U.K., is expected to conclude a similar deal for Asia, where he wants his own news service.

Many media groups are jumping on the "let's launch a news channel" bandwagon. It is still too early to understand the attraction. Start-up activities are labor-intensive and costly. But the supply of news footage from such agencies as Reuters and WTN, and CNNI's syndication division, means expansion can be relatively cheap. Ultimately, they all want to generate more income and have large audiences. Take a look at other big players.

In addition to CNNI, BBC World, Sky News, there is NBC Super Channel, the business news-dominated pan-European channel owned by one of the major U.S. networks. NBC has also repackaged CNBC, its business and news cable channel, into an Asian version called ANBC.

Dow Jones, the U.S. owner of the Wall Street Journal newspaper, has launched European Business News and Asia Business News in satellite joint ventures. In Canada, the state-owned broadcaster CBC already operates CBC Newsworld, a 24-hour channel. It recently also launched a French-language version called Le Reseau de L'Information-RDI.

Meanwhile, international players are also investing in national news. CNNI is a major shareholder in the $90 million German local news service n-TV, which was launched in 1992, and in TV6, a Moscow station which features CNN. There are similar ventures in Israel and Australia, and French state broadcaster TF1 wants a piece of the action. It is the main backer of La Chaine Info, a French-language 24-hour service designed to challenge CNNI on French soil.

The BBC and CNNI believe their international standing and their highly regarded brand names place them well ahead in the game.

"We don't just tell you what's happening but also why it is happening, something that is lacking in European TV news," said Bob Wheaton, commissioning editor, BBC Worldwide. "We're not interested in Newsak (a play on the word 'muzak' or elevator music). We are interested in how we change people's viewing habits to make sure they watch longer. We want to become the premier news show. And, at some stage in the future, BBC World will go into profit."

BBC World is confident of winning English-speaking European audiences away from CNNI, which is accused of having a strong U.S. agenda in its coverage. CNNI's Peter Vesey retorted: "The BBC talks more about us than they talk about themselves. We don't feel we have to apologize to anyone. We're not pressing any one agenda." He added: "Sometimes we please people, sometimes we anger people and sometimes we cause people to shrug their shoulders. It will always be impossible to imagine or cater to every sensibility."