CUSTOM - MADE news.

ON THE SCENE PRODUCTIONS BASED IN LOS ANGELES OFFERS VIDEO FOOTAGE OF CLIENTS TO MEDIA OUTLETS WITHOUT THE TIME OR PEOPLE TO COVER EVERYTHING

ABOUT six months ago, television viewers across the country watched as Campbell's Soup Co. unveiled its new soup can label at the Andy Warhol Museum in Pittsburgh -- in honor of the late artist's iconic rendition of the Campbell's can.

Most viewers likely believed the video footage was supplied by a TV network, or some other news-gathering organization, but it wasn't, at least for the segment aired by many stations. The footage was supplied by On the Scene Productions, a Los Angeles company that produces and distributes "video news releases."

With news departments under pressure to cut costs and the number of media outlets and streaming-video Web sites soaring, demand for news-related video content is exploding. And companies like On the Scene Productions have been capitalizing on that trend by supplying news outlets with pre-shot videos of product unveilings, celebrity interviews, movie previews and more -- all featuring their clients.

"This is a great example of how a station like KABC can't afford to send a crew to Pittsburgh for an event like this (Campbell's soup label unveiling), but would want to have access to cover this bit of pop culture," said Sally Jewett, president and co-founder of On the Scene Productions.

Newsrooms, obviously, determine how much of the video release to use, if any. Often, they modify it by adding their own expert interviews and man-on-the-street sound bites. Nonetheless, they seem appreciative of the free content.

"(On the Scene Productions) are a great resource for us, providing us with lots of information -- from movie promotions to celebrity updates -- and if we do go with something, we'll look at it and add our input and changes," said Jamie Grossman, entertainment producer for "KTLA Morning News."

Growing field

Increasing demand from producers like Grossman has led to the creation of about a dozen firms specializing in the video news release field. Among the largest competitors of On the Scene are Chicago-based Orbis, and two New York firms, Medialink Worldwide and West Glen Communications.

On the Scene currently employs nine publicists, nine sales reps, and 10 producers, cameramen and administrative staffers. In addition, it relies on a worldwide database of 2,000 freelance producers and cameramen, should services be needed in an area far away from its offices in Los Angeles, New York, Chicago and Nashville. The company plans to open four more offices this year, including locations in Washington, D.C. and San Francisco.

The company charges anywhere from $5,000 to $60,000 for a video news release, depending on a host of factors, including how deeply the client wants to penetrate the media to how lavish the video will be. Revenues have nearly tripled in the past six years, from $3 million in 1993 to $8.5 million in 1999.

But not everyone is enthusiastic about the growing use of video news releases and other outside sources.

"A lot of television news relies on celebrity and product information, which can come from all walks of life -- from publicists to newspapers. TV often gets its news from special releases or from reading the newspaper that day," said Joe Saltzman, professor of journalism at USC's Annenberg School for Communication. "Is this good journalism? Of course not. But, it's journalism the way it's being practiced. That is where media is in today's world."

Good journalism or not, video news releases are catching on with a growing number of clients. On the Scene's client list. It includes Sony Music, American Medical Association, Warner Bros., Random House and National Geographic.

Global reach

In addition to video news releases, On the Scene also coordinates satellite feeds with clients from remote locations to broadcast stations around the world.

Last week, for example, it succeeded in getting its client 'N Sync (a music group) featured on "Good Morning America," CNN, E! Entertainment, "Access Hollywood," VH1 and MTV. 'N Sync was in Tokyo, where the band was promoting its blockbuster CD, "No Strings Attached." They connected to U.S. media outlets via satellite feeds.

"We can do these satellite media tours by bringing in a celebrity to our studios and providing one-on-one interviews with reporters around the country at scheduled time slots," said Stacie Hunt, On the Scene's executive vice president and a co-founder.

But clients who expect news organizations to just blindly air the positive video news releases may be disappointed.

"These aren't commercials and if clients hope for that, it's unrealistic," said Jewett. "Newsrooms trust that we won't call them with stories that aren't newsworthy or (don't) have some consumer value. And, they trust that we'll deliver what they're expecting."

While certain topics may not be newsy enough for TV, they might be good enough for the exploding number of streaming-video Web sites that are hungry for content.

To capitalize on that, On the Scene has launched "otsp iNews," the company's Internet-based news service. To date, major portals and broadcast companies that have signed up include Alta Vista.com, RealNetworks and Yahoo.com.

Jewett and Hunt founded the company in 1984. At the time, Jewett was a producer at "Entertainment Tonight" and Hunt had her own radio production and syndication company, Radio Works, when they saw the limitations that broadcast companies faced.

ON THE SCENE PRODUCTIONS INC.

Year Founded: 1984

Core Business: Producing video news releases and distributing those releases to electronic media outlets

Revenue in 1993: $3 million

Revenue in 1999: $8.5 million

Revenue in 2000: $10.5 million (projected)

Employees in 1993: 15

Employees in 2000: 40

Goals: To capitalize on the growing need for news-related video content for Web sites, and to open more satellite offices throughout the country

Driving Force: Time and budget constraints faced by media outlets