Times Assesses Its Relationship To Discovery TV

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Off the Record
Though the award-winning but ratings-deficient Discovery Times channel is a 50-50 partnership with Discovery Communications, Discovery currently controls four of the seven seats on its board. According to sources at The Times and the Discovery Channel familiar with the negotiations, The Times wants to add an eighth member.
Or perhaps Times executives may decide not to have a television station at all.
Later this month, The Times will reach a window in its three-year-old deal with Discovery: It will have an option to sell back its stake, for which The Times paid $100 million.
If The Times chooses, the company may exercise that option to sell, or negotiate for a future opt-out window. The Times’ option was first revealed in a Securities and Exchange Commission filing, and was reported last week by the Rocky Mountain News.
In November, Times publisher Arthur O. Sulzberger Jr. told Charlie Rose that Discovery Times “is our big step into television,” and the paper’s strategy was to “create a television leg as well.”
But now, a senior Times staffer described the discussions going on inside the paper this way: “What kind of video should we do? Is it the stuff for the Web? For podcasts? While the documentaries are wonderful and they win prizes, are they worth the money?”
Three years ago, The Times created its Internet video unit. Lawrie Mifflin, The Times’ executive director of television and radio, oversees both Web and television operations.
Last year, The Times closed its in-house television-production company, located in the West Village. According to Times sources with knowledge of the decision, the paper decided that the facility could only be profitable if the unit produced a large volume of programming.
This week, on April 3, The Times unveiled a redesigned Web site, where Web video is given prominent presence. The Times currently produces 14 or 15 Web videos a week, which range in length from two minutes to as long as seven minutes. The Times’ Web site currently holds close to 300 video clips.
“I’ll be glad to talk to you about this after this Discovery thing is resolved one way or the other,” said deputy managing editor Jon Landman, who oversees the paper’s Web operation.
According to Times and Discovery sources, the channel is profitable, but viewership remains scant. While Discovery Times is available in 36 million households, the channel resides in the exurbs of cable land. Currently, Nielsen doesn’t release Discovery Times’ ratings.
“We have a position on the dial you couldn’t find with a Sherpa,” one Times staffer said.
One report in BusinessWeek last January put Discovery Times at 27,000 nightly viewers.
In February 2006, according to Nielsen NetRatings, The Times’ Web site had 12.7 million unique visitors.
“We couldn’t be happier with the Discovery Times channel,” said Discovery spokesman David Leavy. “The New York Times has been an excellent partner; journalistically, the channel has created wonderful programming. The channel is profitable, and the brand has a lot of strength after three short years.”
Times spokeswoman Catherine Mathis declined to comment. The Times and Discovery Communications are being sued by 5,000 medical patients in New Jersey. Gerald Clark, an attorney with the New Jersey firm Lynch Keefe Bartels, represents the plaintiffs. He said that Times camera crews for Trauma: Life in the ER filmed his clients without consent and violated medical-privacy laws.Already, Mr. Clark said, The Times has settled with two individual plaintiffs. The judge did not uphold the national class-action suit, and the case is awaiting an appeal with the New Jersey Appellate Court in Trenton.
“As you know, the plaintiffs sought a national class action, which was defeated,” said Ms. Mathis. “They were only able to get a class in New Jersey, which we are currently appealing. We believe we will be successful with the appeal.”
In 2001, a Times deal to partner with NewsHour and air a nightly newscast on PBS was not consummated. In 2003, it was reported that The Times flirted with CBS’ 60 Minutes II; also in 2003, The Times and ABC News discussed a potential partnership to cover the 2004 Presidential campaign. Neither venture materialized.
Last summer, The Times tested a pilot 60-minute newscast called Times Seven, which the paper co-produced with the Canadian Broadcasting Corporation. The test was cancelled after four episodes.
Lord Norman Foster’s Hearst Tower is open for business: On Monday, about 60 Hearst I.T. employees moved into the 10th floor. They are the first of the company’s staffers to populate the gleaming 46-story shaft thrusting up out of the landmarked Art Deco façade of William Randolph Hearst’s media headquarters on Eighth Avenue. “We’re telling people, ‘When you pack your boxes, you can leave your old ideas about architecture behind,’” Hearst spokesman Paul Luthringer said. That’s not all they’ll be leaving behind. Between the building’s energy-efficiency rules and its high-toned aesthetics—waterfall-accented 10-story atrium, in-house gym, 164-seat screening room—staffers have been given strict guidelines over what items will and will not be permissible in the new space. Furniture, wall-hanging artwork, desk lamps and a host of appliances are all banned. Items that don’t make the cut will be shipped to staffers’ homes. Mr. Luthringer confirmed the moving protocols. “We’re telling people we’ll be providing state-of-the-art computers, so they don’t need to bring TV’s, VCR’s, DVD players, devices with speakers and fax machines,” Mr. Luthringer said. “Also space heaters, fans, microwaves, coffeemakers, wall clocks—with the idea being that all of this is going to be provided in some way or other.” If Hearst staffers are confused over what is and isn’t allowed, the company has appointed “move captains” for every magazine and division at the company to answer questions. Each “move captain” will direct groups of 25 employees. Beginning next month and continuing through August, Hearst will be gathering the rest of the 2,000 staffers from its 18 magazine titles—currently spread across nine Manhattan locations—and move them into the building, starting from the 10th-floor and working up. Mr. Luthringer said the staggered move dates have been scheduled so as not to interfere with the magazines’ closing schedules.



















