Changing Channels

Local TV stations are investing heavily in high-definition technology and reaching out to viewers via the Web. Can the new strategy save their shrinking ratings—or are they just jumping the shark?

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This is not the first time local TV stations have been forced to reinvent themselves. During the 1960s, color television displaced the old black-and-white sets; later, cable and satellite TV services emerged to rattle the status quo. But this time, fighting back may be tougher. The audience has an unprecedented number of viewing options, and local TV is just one of many. As a result, the number of people tuning in to original local TV programming—which consists primarily of morning, evening, and nighttime newscasts—has been "decreasing sharply," according to the latest study by the Project for Excellence in Journalism, which evaluates the press as an affiliate of the Washington, D.C.-based Pew Research Group.

Reporting on national averages, the study found that in the November 2006 ratings "sweeps period" (when advertising rates are determined), morning news ratings were down 6.7 percent from the same period the year before, while evening news was off 2.8 percent and late news (at 10 p.m. in Chicago) was down 6.3 percent. That recent slide is merely the continuation of a trend that began years ago.

The national results closely mirror trends in the Chicago market. In May 1988, for example, approximately 1.3 million Chicago-area households were tuning in each night to the 10 p.m. newscasts of Chicago's three network affiliates (WBBM, WLS, and WMAQ), according to an analysis of Nielsen data from that period. Nowadays there is a fourth ten-o'clock local newscast, that of Fox-Channel 32. Last May, the four stations' combined viewership for the ten-o'clock news came to 799,000 households—a 38-percent decline from the May 1988 total.

Local station managers are hoping the introduction of high-definition (HD), a signal that provides a clearer, sharper, and brighter picture than the present analog technology, will reignite interest in local TV fare. Under federal law, all stations must start broadcasting in an all-digital format by February 17, 2009, and the majority of those will beam in HD. (Right now, many stations are broadcasting digital and analog signals.) Stations across the country, including those in Chicago, are spending millions of dollars to make the conversion.

The marketplace is also gearing up for HD's mass debut (cable and satellite TV companies are currently providing some HD programming to subscribers, though it can be seen only by those with HDTV sets or digital converters attached to their analog sets). In October, the electronics retailer Best Buy announced it would no longer sell analog television sets, only digital video tuners. Other retailers are expected to follow, say broadcasting executives.

There's a lot of pent-up consumer demand for HD, and sales are expected to mushroom between now and the mandated deadline. Currently, only 14 percent of Chicago-area households own an HD television, which lags the estimated 17 percent in New York and Los Angeles but is higher than the national penetration of 11.3 percent, according to the New York-based A. C. Nielsen Company, which tracks ratings and audience numbers.

Moreover, giant 100-inch flat screens—which often sit at the center of "home theatre" surround-sound systems—are increasingly popular with viewers making the switch to HD sets from analog. "HD is the biggest elephant in the room for the local stations and the consumers, who are being forced to deal with it," says Lisa Pecot-Hebert, assistant professor at DePaul University's College of Communication.

Some local stations are already beaming in HD. WGN-Channel 9 has been broadcasting Chicago Cubs, White Sox, and Bulls home games in HD since 2004 and intends to include the teams' away games starting with the 2008 baseball season, says Tom Ehlmann, WGN-TV's general manager. (Watching sports programming is definitely an incentive for early HD users. Nielsen reports that 42.8 percent of viewers nationally with HD sets at home are using them primarily to watch sports.)

In addition, WLS-Channel 7 boasts that it's the first local station to broadcast its news programming in high-definition and has integrated the "HD" symbol into its marketing and publicity efforts, even claiming it is "Chicago's HD station." Meanwhile, other stations are getting ready for their HDTV close-ups. WBBM-Channel 2's new street-level studio, scheduled to open in 2008 in the heart of the Loop, is being fitted out with new cameras, a high-tech sound system, and lighting that will produce a broadcast "light-years ahead" of the old analog system, boasts Joseph Ahern, the station's general manager.

Aside from the quality of the HD picture itself, perhaps the biggest change viewers will notice is a proliferation of smaller channels. Because of the more advanced digital signal, which occupies less bandwidth than analog signals, traditional TV outlets could spawn up to six stations under their banner. Already, area cable subscribers will notice some familiar names as they scan the dial. WLS-TV has two smaller channels. Channel 7.3 is an all  weather and news-bulletin station, while 7.2 airs reruns of local programming and commercials. (WMAQ also has two digital stations with similar philosophies regarding content.) Right now, these stations are placeholders until a better use can be determined, station managers say. "They're watched by a very small sliver of people," says Emily Barr, Channel 7's general manager. "But they present some interesting opportunities for us."

One digital station has already tested and abandoned a new format: WGN-TV experimented by running nonstop music videos on one of its digital channels (WGN-DT), but that syndicated program, marketed as The Tube, went down the tubes earlier this year because it lacked viewers and sponsors. Also, cable companies didn't want to pay a fee to carry The Tube, says WGN's Ehlmann.

Yet, despite the slow start, industry experts suggest that showcasing a junior varsity of local stations may pay off. Depending on the content, the stations could become premium channels that cable companies, or subscribers, paid an extra fee to receive, which could provide local TV stations a new revenue stream, says Pecot-Hebert, of DePaul.

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