Television News Inc.

Television News Inc. (TVN) was a short-lived syndicated television news service created to provide daily newsfilm feeds to local television stations in the United States and Canada. It launched in 1973 as independent and non-network broadcasters were expanding their local newscasts and needed a reliable source of national and international footage. At the time, stations commonly received non-network newsfilm through air express or similar physical delivery systems. TVN founder Robert Pauley proposed a more ambitious network-style operation capable of supplying subscribers with a broad daily selection of film and related news material. The service was announced in February 1973 with approximately $4 million in initial capital, most of it supplied by Coors Brewing Company. Robert Pauley became chief executive, and the company established its main offices in New York City along with bureaus in Los Angeles, Chicago, and Washington, D.C. Miami station WCIX-TV became the first customer. TVN began a two-week trial on May 14, 1973, involving 32 stations, including KTVU in San Francisco. Its principal commercial distinction was that it generally made its available newsfilm library accessible to subscribers rather than reserving the strongest material for an in-house network newscast. The service also drew material from Visnews, a London-based international newsfilm organization and minority shareholder. After the trial, TVN secured accounts from major independent stations such as WGN-TV, Metromedia stations, WOR-TV, and WTTG, as well as network affiliates including KYW-TV, KSD-TV, and WBTV. By April 1974 it had 26 stations. That year it acquired the United States operations of United Press International Television News, removing its principal direct competitor among non-network newsfilm syndicators. By early 1975, TVN reported 37 U.S. subscribers and 36 Canadian subscribers. Its service was not exclusive by market, so several stations in cities such as Los Angeles, New York, and Toronto could subscribe simultaneously. TVN's business model was undermined by distribution costs, low subscription rates, and the difficulty of connecting independent stations to AT&T long-distance transmission facilities. In January 1975, the company proposed moving to Westar satellite distribution. The plan called for as many as 35 receiving earth stations to be built within seven months and was presented as a possible financial rescue. If completed, it would have represented one of the earliest full-time uses of a U.S. satellite for television program distribution. The plan did not attract sufficient interest, however, and Canadian subscribers generally could not use the proposed American satellite arrangement. The company also became associated with a conservative editorial agenda because of Joseph Coors's ownership and financial backing. Coors believed that the major television networks produced news with a liberal bias and regarded TVN as a possible alternative. Editorial disputes emerged soon after launch. News director Dick Graf was criticized by Coors and executives for coverage considered too liberal, while Jack G. Wilson, a Coors associate and Heritage Foundation trustee, increasingly influenced story selection and newsroom operations. Graf was dismissed in February 1974, and Wilson became president later that year. Further staff reductions in September 1974 left the organization more dependent on affiliated stations and freelance contributors. Roger Ailes joined TVN in early 1975 as vice president for news operations. During his tenure, the company obtained a United States Information Agency contract to provide news clips and scripts through a separate division, although Ailes resigned in September after what he described as administrative disagreements. TVN's perceived ideological orientation received extensive press scrutiny in 1975, particularly while Joseph Coors was being considered for appointment to the board of the Corporation for Public Broadcasting. His refusal to commit to leaving TVN, combined with questions about his political views and his relationship to the service, contributed to the Senate Commerce Committee's rejection of his nomination. TVN announced on September 29, 1975, that it would cease operations on October 31 because of continuing insufficient revenue and weak interest in the satellite conversion. Its film-production unit, TVN Enterprises, was expected to continue separately. Coors filings reported losses of $2.2 million in 1973 and $3.2 million in 1974, with a further $3 million projected for the following year. The service's collapse nevertheless influenced the development of later independent television news distribution. Former TVN employee Reese Schonfeld subsequently created the Independent Television News Association, while other alumni went on to prominent careers at CNN, ABC, and other major broadcasters. TVN has also been discussed retrospectively in accounts of Roger Ailes and the ideological history of later cable news ventures.

Television News Inc. emerged during a period when independent television stations were increasing their investment in local news but lacked the resources of ABC, CBS, and NBC. Founder Robert Pauley had previously explored the idea of a national independent television news operation. His proposal for TVN sought to improve on the traditional practice of sending newsfilm to stations by air express, creating a regular service modeled more closely on the distribution systems used by the major networks. The company's launch was announced in February 1973. Coors Brewing Company supplied most of the approximately $4 million in initial capital, making the Coors organization the service's majority owner and principal financial backer. TVN established its headquarters in New York City and maintained bureaus in Los Angeles, Chicago, and Washington, D.C. WCIX-TV in Miami became its first customer. The service started on May 14, 1973, with a two-week trial involving 32 stations. KTVU in San Francisco was among the early customers. TVN's selling point was breadth. Unlike major networks that could retain particularly valuable footage for their own newscasts, TVN generally offered its available newsfilm to subscribers. It also had access to international material from Visnews, which held a minority interest. Following the initial trial, TVN added WGN-TV, Metromedia stations, WOR-TV, and several network affiliates. By April 1974 it had 26 stations. Its acquisition that year of the United States operations of United Press International Television News removed its only significant competitor among non-network newsfilm syndicators. The service expanded to Canada as well as the United States. At the beginning of 1975 it reported 37 American subscribers and 36 Canadian subscribers, although the two markets did not have identical distribution options. Multiple stations could subscribe in the same city. Los Angeles, New York, and Toronto each had several TVN customers, demonstrating demand for shared news resources but also limiting the exclusivity and pricing power of the service. Financial and technical problems remained severe. TVN used AT&T long lines to distribute its material, but the costs of connecting stations could exceed the fees charged to customers. In January 1975, the company proposed using the Westar satellite system instead. It planned as many as 35 receiving earth stations and described satellite distribution as a possible financial salvation. The proposed system would have been an early full-time satellite television-distribution application in the United States. Canadian customers, however, generally could not use the proposed American system, and the plan failed to attract enough interest to justify the investment. Editorial control became another defining issue. Joseph Coors viewed the established networks as politically liberal and wanted TVN to provide a more conservative alternative. The board called for more balanced news coverage shortly after the service began, but internal accounts described growing pressure over the selection and framing of stories. News director Dick Graf clashed with Jack G. Wilson, a Coors associate who had local television experience and links to the Heritage Foundation. Graf was dismissed in February 1974, and Wilson eventually became president. Under Wilson, the service faced criticism that its conservative philosophy influenced the stories it selected, even where individual reports were not overtly slanted. Staffing cuts in September 1974 reduced the number of reporters and cameramen and increased reliance on affiliates and stringers. Roger Ailes joined in early 1975 as vice president for news operations. He helped obtain a United States Information Agency contract for clips and scripts but left in September, citing administrative disagreements. TVN's political profile received renewed attention when President Richard Nixon nominated Joseph Coors to the Corporation for Public Broadcasting board in 1974 and President Gerald Ford renewed the nomination. Journalism coverage examined whether Coors's ownership of TVN and his political views were compatible with public broadcasting oversight. At confirmation hearings, Coors declined to promise that he would leave TVN if appointed. The Senate Commerce Committee rejected his nomination on September 29, 1975. That same day, TVN announced that it would close its news service on October 31. The company cited insufficient revenues and the lack of customer interest in the satellite plan. Contemporary estimates placed ongoing losses at about $50,000 per month, while Coors's 1975 prospectus reported losses of $2.2 million in 1973 and $3.2 million in 1974, with an additional $3 million projected for the next year. TVN Enterprises, the film-production division, was expected to continue after the news service ended. The company's influence continued through its employees and its distribution concept. Reese Schonfeld, who joined through the UPITN acquisition, later founded CNN and subsequently organized the Independent Television News Association, which used Westar to serve stations after TVN's closure. Charles Gibson's work covering the Watergate hearings helped lead to his recruitment by ABC News. Dennis Swanson later held senior positions at all four major American broadcast networks, including the presidency of ABC Sports. TVN has also been revisited in discussions of Roger Ailes's later career and the relationship between political ideology and television news distribution.

• 1975

  Satellite distribution proposal

  [1]Television News Inc.en.wikipedia.org

  The company proposed replacing AT&T long-line delivery with Westar satellite distribution and planned a large-scale earth-station rollout.

• 1975

  News service closes

  [1]Television News Inc.en.wikipedia.org

  TVN announced that its news operation would end on October 31 because of continuing losses and insufficient interest in satellite conversion.

• 1974

  Acquisition of UPITN's U.S. operation

  [1]Television News Inc.en.wikipedia.org

  TVN purchased the United States business of United Press International Television News, consolidating the non-network newsfilm market.

• 1973

  Launch announced

  [1]Television News Inc.en.wikipedia.org

  Television News Inc. was announced with Robert Pauley as chief executive and approximately $4 million in initial capital, most of it from Coors Brewing Company.

• 1973

  Newsfilm service begins

  [1]Television News Inc.en.wikipedia.org

  TVN began a two-week trial on May 14 and then entered regular operation serving independent stations and other television customers.

A non-network television newsfilm supplier serving independent stations and selected network affiliates, positioned by its Coors backers as a more broadly accessible and politically conservative alternative to the major broadcast networks.

• Television news distribution · 1973

  TVN syndicated newsfilm service

  A daily feed of domestic and international newsfilm supplied to subscribing television stations. TVN emphasized that customers could receive a broad range of the service's footage rather than only material left over after a major network's own editorial use. Delivery initially relied on AT&T long lines and physical newsfilm workflows, while the company later proposed a satellite-based replacement.

• Film production

  TVN Enterprises

  A film-production unit associated with Television News Inc. that was expected to remain in operation after the syndicated news service ended in October 1975.

• 1975

  Political and editorial scrutiny surrounding TVN

  Journalists and congressional investigators examined allegations that Joseph Coors and Jack G. Wilson used TVN to promote a conservative perspective through story selection and newsroom influence. The controversy intensified during Coors's nomination to the Corporation for Public Broadcasting board.

  Source

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• 1975

  Proposed conversion to Westar satellite distributionStrategy

  Background

  AT&T long-line costs and station connection expenses placed pressure on TVN's economics. Management viewed satellite distribution as a way to reduce delivery problems and expand the service.

  Action taken

  TVN proposed building as many as 35 receiving earth stations and distributing its service through the Westar satellite system.

  Aftermath

  The plan did not obtain sufficient customer support, and the company closed its news operation later in 1975.

  Reported TVN losses. $2.2 million loss in 1973; $3.2 million loss in 1974 → $3 million projected loss for the third year (1973-1975)

  Source

• 1975

  Decision to cease syndicated news operationsOther

  Background

  TVN continued to lose money and found insufficient interest in its proposed satellite delivery system.

  Action taken

  The company announced on September 29 that the news service would stop operating on October 31.

  Aftermath

  TVN Enterprises was expected to continue, while former employees helped establish later independent news-distribution initiatives.

  Estimated continuing loss. $50,000 per month (1975)

  Source

1. 1Television News Inc.en.wikipedia.org