Gregg said:
Geez, I gotta say that's a gutsy move. Last time I checked, Wheel and Jeopardy are the two most successful fringe shows on U.S. television. Rachel Ray also seems to be quite popular. The Doctors and Dr. Phil also get pretty good ratings, as far as I know.
Now they'll be handing their competitors those programs so they can do news most of the day. I guess Las Vegas doesn't have a local cable news operation?
Wheel and Jeopardy appeal to a largely older audience.
TV news is cheap to produce. Syndication is expensive. You give up both cash and some advertising inventory (cash plus barter) for the national commercials within the syndicated show.
In Phoenix (a larger market than Las Vegas), the syndication fee for Dr. Phil was reportedly $70,000 a week a few years ago.
Let's just pretend that in Las Vegas, Dr. Phil, Wheel and Jeopardy could be had for $25,000 plus barter apiece and you could get Rachael for $15,000 and barter. That's $90,000 a week and (assuming 5 minutes of barter spots per hour) 45 30-second ads you're giving up. If those are worth $500 each, that's another $22,500 a week, for a total of $112,500.
Adding three hours of news to an existing operation probably means another photog, another reporter (maybe you get an MMJ, a reporter that shoots their own stuff) and another producer or two. In a market the size of Las Vegas, you can probably do that for $112,500 a year, which means the other 51 weeks a year of savings go straight to the bottom line.
That's $5.7 million.