EXCLUSIVE: New Owners of Channel 6 Will Need ABC Approval

Thursday, February 17, 2011

Jeff Derderian, GoLocalProv Media Critic

 

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Here is a twist on the proposed sale of ABC-6 in Providence that you haven’t heard about until now. GoLocalProv has learned that the existing network affiliation agreement with the ABC network is in what is called extension status. Technically, the contract between the two parties is not expired but this does mean the new owners of Channel 6 will need the full blessing of the network before they can continue to carry all ABC programming. I am told that this could also mean ABC could require certain demands on the new owners before they sign off. In other words – there is a potential for it to get a little messy.

So what is an “affiliation agreement” anyway? In essence it is a contract between a station and a broadcast network that says – “yes, station X you agree to air these programs at these times”. In exchange for providing the programming, the network gets paid by the local affiliate. This applies to all the stations around here – NBC, CBS, and FOX. They all pay to get the programming you watch. There was a time, if you can believe it, when the networks actually paid the local stations to air their programs. But that was then and this is now.

Channel 6 says potential buyers talking with ABC

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Steve Doerr, Vice President & General Manager at Channel 6 says the station will continue to operate under the previous agreement until there is new ownership. “Each of the interested parties is working (independently) with ABC to negotiate a new affiliation agreement. Each has a different business structure, so presumably each deal would be a little different”. So, for example, former Providence Mayor Joe Paolino and a group of investors have expressed interest in buying Channel 6. If they are the winning bidders which will be decided via court approval (since the station is in receivership), Paolino and his yet to be named business partners would then need to hammer out a new affiliate deal with ABC.

It is another hurdle to clear in acquiring the station is the bottom-line.

Is there a chance that ABC says “no deal” to the new owners and all ABC network shows stop? It is possible but not likely. Here is why. Let’s assume ABC says no to the new owners where does ABC go? To Channel’s 10 or 12? – no because they already have affiliates and there is no other space in the market. What it does mean is that ABC is not in the business of singing multi-year agreements with people who don’t have the vision and more importantly the cash to keep a station going and or improve it. I am told each bidder needs to be prepared with a clear business plan on what the future will mean for the station.

How much does Channel 6 pay ABC

That is a good question and Channel 6 executives are tight lipped about that sort of thing. We asked for the number but we were told that information is kept confidential. To be fair, if we asked that same question to the management at Channel’s 10 and 12, we would also get the same answer. Stations just don’t talk about that kind of thing. It is not clear if Channel 6 pays actually pays cash to be an affiliate, or if there's an arrangement on commercial revenue, airing of local commercials etc.

Stay tuned. The sale could be completed in March.

Jeff Derderian is a former television news reporter and anchor both in Providence and Boston. He is one of the founders of the Station Education Fund. He can be reached at [email protected] 

 

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