TV Stations Owned By Insurance Companies

[DToTheJ]

In the days of TV networks and conglomerates acquiring mediums to expand their brand (the most recent example, NBC buying The Weather Channel), I think back to the days when TV stations were owned mostly by newspapers. Another apparent trend was TV stations (as well as radio stations) owned by insurance companies.

Of course, the best example was Jefferson-Pilot, which ran stations in Charlotte, Miami and Denver among other markets. These days, they are known by another insurance company name, Lincoln Financial, and while they still own most of the stations (the Charlotte radio cluster was sold to Greater Media) it is still unclear whether or not they wish to remain in the broadcasting business.

Other insurance companies that owned broadcast stations included Nationwide, which owned the old WXEX-TV in Richmond, VA and KEGL-FM in Dallas. Also, Durham Life Insurance Company operated WPTF-TV and WPTF-AM in Raleigh - the call letters coming from their slogan, "We Protect The Family".

Does anyone know why insurance companies took it upon themselves to operate TV and radio stations back in the day? I doubt it was to "expand their brand". Also, does anyone have any other examples of such ownerships of stations.

 

[Tim-In-Houston]

First an update: Jeff Pilot/Lincoln Financial sold all of their television holdings (including the SEC Sports broadcasting operation) late last year to Raycom Media.

I don't have an answer as to why, other than having a place to hawk their insurance for free, but I know of a few:

The two biggest stations in Nashville were founded by insurance companies: WSM-AM/FM/TV owned by National Life and Accident Insurance Company (We Shield Millions). The stations were sold when the company was merged with American General in the early 80s. The radio stations went to Gaylord Entertainment (along with the rights to the Grand Ole Opry) while the television station (re-badged as WSMV) went first to Gillett broadcasting but is now owned by Meredith Corp.

WTVF (then WLAC) was started by the Life and Casualty Insurance Company before being sold to the Hobby Family of Houston (owners of the Houston Post and KPRC-TV). The Hobby's sold their television holdings in 1994, with WTVF going to Landmark Communications (current/previous owners of The Weather Channel).

Others I'm aware of: While not founded by them, KFVS-Cape Girardeau, MO was owned for many years by AFLAC Insurance. Aflac selling their holdings can be traced to the beginnings of Raycom Communications.

WLBT-Jackson, MS (then WJBT) was founded by the Lamar Life Insurance Company.

Liberty Corp, which in 2005 merged with Raycom Communications, owned several television stations while still owning a life insurance division. The insurance division was sold to Royal Bank of Canada in 2000.

And, I guess, technically Raycom is owned by an insurance company (maybe assurance is a better term): Retirement Systems of Alabama, which guarantees the state pension plan.

 

[EricStein]

Independent station KAZT Prescott/Phoenix, AZ are owned by the same family that controls the Lincoln Heritage Life Insurance Company (they're the ones behind the two-minute PI spots for "The Heritage Plan"). They don't do much advertising for their insurance on the station (although there was a point that they did). The now-defunct Great American/Citicasters group was controlled by Carl Lindner, whose core business is insurance (coincidentally, under the name "Great American").

We could go on talking about broadcast stations that were owned by companies and/or organizations that are in no way connected to the industry (i.e., pharmaceutical company Plough was into broadcasting decades ago, and Fisher Communications has its roots in a flour mill). This could actually turn into a broader and more interesting topic.

 

[jal41]

Re: TV Stations Owned By Insurance Companies and others

Movie theater chain General Cinemas (which merged with AMC Entertainment not long ago) owned TV and radio stations in Georgia, including WTVM-TV Columbus, which would become the flagship for AFLAC, both companies based in Columbus (General Cinemas owned WGKA-AM and WZGC-FM in Atlanta at one point).

WJCL-TV Savannah (currently being featured on TV Guide Network's "Making News") was started by a used car dealer...and still broadcasts next door to the dealership.

About Raycom...it is funny that they are owned by the teachers retirement system in Alabama.

 

[upstate29651]

Re: TV Stations Owned By Insurance Companies and others

WJCL-TV Savannah (currently being featured on TV Guide Network's "Making News") was started by a used car dealer...and still broadcasts next door to the dealership.

Nope, it was started by a NEW car dealer, JC Lewis (The Ford Place), who was also a former mayor of Savannah.

G

 

[IdentityProgramming]

The original WTIC-TV 3 (Now WFSB) was owned and operated by the Travelers Insurance Company, which the call letters stood for.

Gary Begin
Identity Programming Consultant
Jackson, TN
www.garybegin.com

 

[quadraphonic]

Maybe it was some kind of status symbol back in the early days, and insurance companies were one of the industries where money and interest in broadcasting both were back then.

From what I've heard, WFLB 1490AM (now WAZZ) in Fayetteville, NC was started and owned for years by Fayetteville Life [Insurance] Broadcasting, and for a short time in the 1950s, they had a low-UHF station, channel 18 I think.

 

[rwells2265]

WAFF-48 in Huntsville, Ala. - for years owned by AFLAC; calls stood for (A)merican (F)amily's (F)inest - was founded by an insurance company. It was originally WMSL-TV channel 23 in Decatur, Ala. Both it and WMSL-AM were part of Decatur-based (M)utual (S)avings (L)ife.

Another Jackson, Miss. TV station had insurance roots: ABC station WAPT channel 16. (A)merican (P)ublic Life (T)elevision. All three, if you count the radio 'parent' to WJTV-12 (CBS), whose original calls were WSLI-TV: (S)tandard (L)ife (I)nsurance.

I don't believe WTVM-9 in Columbus, Ga. (channel 28 prior to 1961) was part of General Cinemas, but instead its local predecessor, Martin Theaters. WTVM = Television Martin. An early logo, featuring the old Martin Theaters mascot: http://www.mcsittel.com/logos/wtvm2859.jpg

The Retirement Systems of Alabama -- said to be the best-managed teachers' retirement fund in the country -- also has among its varied holdings, the chain of golf courses known as the Robert Trent Jones Golf Trail. Anyone who watches a Raycom station cannot escape their commercials! They own our local CBS affil, WTOC-11 (Savannah).

Several years back, someone asked me, "What gives? Is 'TOC owned by the state of Alabama??" I replied, "Well, ummmmm, in a way, yeah."

--Russell

 

[TexasTom]

Other insurance companies that owned broadcast stations included Nationwide, which owned the old WXEX-TV in Richmond, VA and KEGL-FM in Dallas.

A correction: the Dallas station that Nationwide owned was KDMX, not KEGL. At the time, Nationwide also owned Houston's KHMX.

 

[DToTheJ]

Actually, they owned both - and more!

Here's a Wikipedia article on their broadcasting holdings:
http://en.wikipedia.org/wiki/Nationwide_Communications

 

[w9wi]

I don't have an answer as to why, other than having a place to hawk their insurance for free, but I know of a few:

For the Nashville stations definitely, I'd say that's exactly why, but not directly.

Both TV stations were launched by existing radio stations - as you cite, WSM and WLAC.

In the earliest days of radio, spot advertising was not the financial basis of the industry. (it's my understanding the first spot was sold in 1927. Commercial radio had existed for seven years by that time, so obviously there was some other economic reason!) Early radio stations were generally started to promote the owners' business - including insurance.

By the time TV came around, spot advertising was the basis of the business - and it was a pretty profitable one. I suppose the insurance companies didn't see any good reason to get out of broadcasting. They weren't hawking insurance anymore. (at least not much, by comparison to what third-party products/services they were advertising)

As for some of the newer operations like AFLAC's, I suppose the insurance companies had a lot of premium money kicking around & had to invest it somewhere profitable. At least at the time TV apparently seemed to be a good part of the mix.

 

[BRNout]

This last post about advertisers is close, but missing one ingredient: the "sponsor"! Most radio programs through the "golden age" of radio had a single sponsor. Spots were only sold to cover extra time between programs and/or during non-sponsored programming. But, the big shows were all paid for by a single sponsor. As in: "Rinso presents..."

Here's where were close, but didn't win the cigar: That model continued into the early years of television. Some examples included "The Texaco Star Theatre" (I think with Milton Bearle), "The Jack Benny Program...sponsored by Lucky Strike," and "I Love Lucy....brought to you by Phillip Morris." The only spots during these shows were for the individual sponsor and they generally involved cast members of the show. Did you ever see those breaks where Desi Arnaz and Lucille Ball are smoking up a storm espousing the virtues of Philip Morris' fine tobacco? Go to You Tube and you'll find it really interesting.

In fact, sponsors had a lot to say about the content of an individual program (at that time). It was an image item for them and their products were often placed here and there (subtly) on the set. The show's stars and producers were as worried about losing the sponsor as they were about getting can canceled by the network! Perhaps more so, as a show with a solid sponsor could have easily jumped to a different network back then.

This single-sponsor model gradually fell out of favor in the later 1950s and was pretty much gone by 1965. Yes, there were some favored sponsors for programs during the 1960s; but you still had spots as we know them today. As TV became the medium of choice for entertainment, I think that station owners figured out Once in a great while, a show (usually a one-time movie or presentation) will come along that has a single sponsor - but that is an extreme rarity these days. We certainly don't have weekly series that are presented by a single advertiser.

 

[dhett]

That was one of the things that set the DuMont network apart from the others in the early 1950s: they didn't go with the single sponsor model, choosing instead to use multiple sponsors, similar to the model in use today.

 

[w9wi]

This last post about advertisers is close, but missing one ingredient: the "sponsor"! Most radio programs through the "golden age" of radio had a single sponsor. Spots were only sold to cover extra time between programs and/or during non-sponsored programming. But, the big shows were all paid for by a single sponsor. As in: "Rinso presents..."

Certainly, the single-sponsor model justified broadcasting as a business for a long time. But I'm suggesting there was a business model for commercial radio before the single-sponsor model came along.

Really, you can still see the "I exist only to promote my owners" model today, at Radio Disney.

 

[anotherguyTN]

This single-sponsor model gradually fell out of favor in the later 1950s and was pretty much gone by 1965. Yes, there were some favored sponsors for programs during the 1960s; but you still had spots as we know them today. As TV became the medium of choice for entertainment, I think that station owners figured out Once in a great while, a show (usually a one-time movie or presentation) will come along that has a single sponsor - but that is an extreme rarity these days. We certainly don't have weekly series that are presented by a single advertiser.

Thankfully we didn't end up with "Cavemen, borught to you by Geico." : I'm sure they had ads on the show though.