Forum Views ()
Forum Replies ()
Read more with google mobile :
New troubles at Al Gore's Current TV
|
Edition:
U.S.
Article
Comments (0)
Save
Email
Print
Reprints
Most Popular
Most Shared
BP shares down as spill-related legal battles rage
1:15am EDT
Australia gets first woman PM
| Video
24 Jun 2010
Soccer upstages strike as Les Bleus return
24 Jun 2010
Illegal Sarah Palin defense fund must give back donations
24 Jun 2010
Methane in Gulf "astonishingly high": U.S. scientist
22 Jun 2010
UPDATE 1-US judge denies stay on drill ban ruling
24 Jun 2010
Lawmakers near breakthrough in Wall St bill
1:11am EDT
Miley Cyrus "no underwear" photo is fake, blogger says
15 Jun 2010
Disease risk higher for swingers than prostitutes
23 Jun 2010
U.S. scores dead last again in healthcare study
23 Jun 2010
U.S. scores dead last again in healthcare study
23 Jun 2010
Methane in Gulf "astonishingly high": U.S. scientist
22 Jun 2010
Australia gets first woman PM
| Video
24 Jun 2010
Internet bosses set to approve .xxx for porn sites
24 Jun 2010
Frenchman who ate cellmate's lung gets 30 years jail
24 Jun 2010
Trapped drunk driver opens another beer as awaits rescue
23 Jun 2010
Disease risk higher for swingers than prostitutes
23 Jun 2010
"Twilight"s Robert Pattinson related to Dracula
23 Jun 2010
New troubles at Al Gore's Current TV
12:04am EDT
Will video sites stop filtering content?
12:53am EDT
New troubles at Al Gore's Current TV
Andrew Wallenstein
Fri Jun 25, 2010 12:04am EDT
LOS ANGELES (Hollywood Reporter) - Al Gore, the world's pre-eminent environmentalist, has embarked on his toughest recycling challenge: his own cable channel.
Entertainment | Television
For much of the past year, Current TV has been quietly undergoing an overhaul that will change just about everything but the struggling channel's name. Current declined comment for this story.
It's a revitalization project Gore & Co. embarked on after exhausting a more lucrative possibility: selling the channel. Current's founding partner, Joel Hyatt, spent much of 2009 shopping the network with a price tag that wildly overestimated the company's worth, confirmed sources at several media firms. Current even had extensive sale talks as far back as 2007 with Google, where Gore serves as a senior advisor.
Now the focus has shifted to fixing Current, perhaps with an eye toward a sale down the road. Last July, Hyatt was replaced as CEO by Mark Rosenthal, the former MTV Networks COO who is rebuilding the channel in the traditional mold Gore avowed to avoid, only to suffer the consequences.
Rosenthal has brought in a crew of colleagues from his MTV days including an unlikely ringer: Brian Graden, who masterminded hit series from "South Park" to "The Osbournes," before leaving last year. He's on retainer as a consultant.
Forget bite-sized clips created by anonymous viewers; the new Current will consist of full-length series from the usual suspects in unscripted production who are getting the word that Current is open for business.
For all its troubles, Current heads toward its fifth anniversary in August a profitable venture receiving robust license fees and a worldwide distribution footprint of 70 million. But the network could lose millions of those homes if it fails to secure a new carriage agreement at the end of the year with Time Warner Cable, a key outlet because of its exposure to Madison Avenue.
Either way, advertisers will be hearing more from Current because it will finally make its Nielsen ratings available in the fourth quarter, a risky but necessary move that could expose how few subscribers are actually watching.
"They've got to become rated soon or advertisers will not go with them," said Derek Baine, a cable industry analyst. "It's a big red flag."
For all the brilliance he has displayed grasping the meteorological dynamics governing the globe, Gore has miscalculated those of a slightly less complex world: the TV business. The radical ambitions he brought to the environment didn't pan out the same way in cable; the television will not be revolutionized.
But while the publicity attending his recent split from his wife of 40 years might suggest Gore has enough distractions in his life, he's said to be as committed as ever to Current. In recent months, he's traveled to Italy and South Africa to preside over the launches of international versions of Current.
Gore is working the back rooms back home as well, from affiliate handshaking at the Cable Show in Los Angeles in May to dining with 20 media buyers in New York in April. That same day he touted Current in a speech at a media-industry conference in New York.
When Gore gathered a team of investors to buy the network formerly known as NewsWorld International from Vivendi Universal Entertainment in 2004, rumor had it the former vice president sought to transform it into a liberal-minded corrective to Fox News Channel.
But when he unveiled Current a year later, it took what its founders called a "small-d" democratic approach: empowering viewers to create the content. A companion website would train viewers to upload their own video programing -- even some of the commercials. Current also catered to the young and tech-savvy by making the programing "pods" no greater than 8 minutes in length.
But it was almost immediately apparent internally that Current's programing strategy was not sustainable; the video was low in volume and, often enough, quality. Compensating for that shortcoming only created a new problem: Current dramatically expanded its in-house corps of producers to the point where the staff ballooned to 200 -- unusual for a small network.
As far back as 2007, it was clear to Current management that for all its faith in the programing concept it had an untenable business model. With significant stakes in the company and anxious investors looking for an exit strategy, Hyatt and Gore began looking for buyers that had pockets deep enough to support it.
Gore's ties to Google made it a natural choice. Those ties gave Google an early presence on Current TV, which ran interstitials featuring Top 10 searches from the site. But an acquisition was an entirely different matter, one that ran contrary to the company's avowed disinterest in being in the content business.
Nevertheless, sources say talks between the two companies went beyond preliminary negotiations, for a price in the neighborhood of $400 million-500 million. Ultimately, Gore's proximity to Google wasn't enough to get the deal done.
"While Google is constantly talking to various companies about a variety of things, we don't comment on rumor or speculation," a spokesman said.
Since then, Current has been offered up to every media firm operating a stable of cable channels. Its appeal is easily underestimated: Even the dimmest assessments of Current's brand and programing are outweighed by the fact that the network is in enough homes that growing it to full distribution is a very lucrative possibility only one of the big boys can achieve. That's because the Viacoms and Discoverys of the world are able to leverage their biggest channels to build up smaller spin-offs.
Current could very well have thrived in such an arrangement but the problem was Current's $500 million-plus price tag. That may seem a small sum compared to the billions that earlier acquisitions from BET to TNN have fetched. But that number is far above what potential buyers were willing to pay and the marketplace lately hasn't been conducive to acquisitions even at a fair price.
Market conditions also killed another route to growth Current tried in more publicized fashion: IPO. The company filed to the tune of $100 million in class A common stock in January 2008, unfortunately timed to the crumbling of the U.S. economy. By the following April, the IPO was canceled, leaving Current underneath serious debt. In November 2008, 60 layoffs gave the company a little breathing room.
With no choice but to fix the network they were saddled with, Hyatt stepped aside as CEO to make room for Rosenthal, who has sat on Current's board since its inception. Since joining nearly a year ago, Current has maintained near-radio silence as he leads retrenchment efforts.
The network did pop back on the radar, albeit as a footnote, to a major story in August: Two female journalists employed by Current were detained in North Korea and nearly imprisoned for a 12-year term before Bill Clinton was brought in to negotiate their release.
Rosenthal signaled his game plan last July, when 80 more staffers were laid off. Current also announced at the time that it would ditch its signature short-form programing. The move was indicative of a 180-degree turn from Gore's original vision: Current would conform to the traditional network model in every way, shape and form. Changes should be evident on air first quarter of 2011.
The early word is Current will be nowhere near its former staff size. Rather, it will be restructured less like one massive news bureau and more like a traditional cable channel, with formal departments for development and acquisition.
The channel will likely stock up on documentaries, a safer play than going with all originals. Still, originals will be crucial part of the mix.
Also going forward the channel will likely blur the boundaries between news and reality formats. In addition, part of the mandate at Current going forward is lightening up beyond its more serious-minded fare -- and aging up as well, about a decade older than the early-twenties male that was its former target.
All that Current has made public about its development slate is that the network had struck a deal with Will Wright, creator of the videogame colossus "The Sims," to create his first TV venture: "Crowdsourced TV," which aims to create shows based on the ideas of the viewing audience.
In retrospect, what's distinctive about Current's troubles was that Gore's vision had so much potential. It's uncanny how close he was to capitalizing on several key trends that transformed the media world, only to watch others do so.
For instance, Current's reliance on user-generated video was the right idea, but the wrong medium. Little did Current know that at virtually the same time -- and in the same Bay Area region where it was headquartered -- an unknown website called YouTube would adopt a similar programing strategy.
With 2 billion streams per day currently under its domain, the winning approach isn't difficult to determine. Having just celebrated YouTube's own fifth birthday, founder Chad Hurley still talks of his creation in eerily similar terms to the populist phenomenon Gore was hoping to spark.
Furthermore, insiders say the Current rank and file agitated to take advantage of Gore's political outlook as a programing mission. But they were repelled by management's insistence that the network stay even-handed in fear of alienating the cable operators that granted it carriage.
Lo and behold, another cable network once known for its struggles, MSNBC, righted itself precisely by leaning left in its primetime programing.
Another trend Current failed to exploit was Gore himself. Even as Gore rocketed to international acclaim with "An Inconvenient Truth," Current barely leveraged its in-house rock star; Gore didn't appear on the channel's air until its third year, and fleetingly thereafter. And yet Gore's reputation was such that he could have been the basis for the entire channel, not unlike what Discovery Networks is doing with its much anticipated OWN venture with Oprah Winfrey.
Depending on which insider you ask, Gore was either: leery about letting his cable channel bask in his halo in fear of seeming self-serving; too distracted by the production and subsequent success of "Truth" to even have the time to get involved, or Current TV management intentionally kept Gore at arm's length in fear of turning the channel into Gore TV.
Entertainment
Television
Add a Comment
*We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters.
© Copyright 2010 Thomson Reuters
Editorial Editions:
Africa
Arabic
Argentina
Brazil
Canada
China
France
Germany
India
Italy
Japan
Latin America
Mexico
Russia
Spain
United Kingdom
United States
Reuters
Contact Us
Advertise With Us
Help
Journalism Handbook
Archive
Site Index
Video Index
Reader Feedback
Analyst Research
Mobile
Newsletters
RSS
Podcasts
Widgets
Your View
Labs
Thomson Reuters
Copyright
Disclaimer
Privacy
Professional Products
Professional Products Support
Financial Products
About Thomson Reuters
Careers
Online Products
Acquisitions Monthly
Buyouts
Venture Capital Journal
International Financing Review
Project Finance International
PEhub.com
PE Week
FindLaw
Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. Thomson Reuters journalists are subject to an Editorial Handbook which requires fair presentation and disclosure of relevant interests.
NYSE and AMEX quotes delayed by at least 20 minutes. Nasdaq delayed by at least 15 minutes. For a complete list of exchanges and delays, please click here.
Other News on Friday, 25 June 2010 Still time for Iran nuclear fuel swap
Obama: 'Russia belongs in the WTO'
Paris hosts cyber-shelter for battered bloggers
French 'Hannibal Lecter' gets 30-year jail term
US-TECH Summary
Canada police halt suspicious car near G20 summit site
|
US ambassador to Afghanistan: Time to move on
Second 2010 hurricane forms off Mexico
Fans scramble for Apple's iPhone upgrade
US ambassador to Afghanistan calls for unity
Longest ever tennis match resumes at Wimbledon
Google assessing China's new rule on web mapping
Katy Perry Spends Third Week Atop Billboard Hot 100 With "California Gurls"
Facebook to take on Asian rivals to reach billion user mark
7 Afghan construction workers killed in bombing
Swingers at risk of sexual disease: Dutch study
Suspected Jamaican drug lord faces handover to U.S.
|
Greek police minister escapes bomb
|
French Obama hacker escapes jail
Tech companies seeking business in Syria
Twitter settles privacy charges with U.S
Still time for Iran nuclear fuel swap: think tank
|
China marks anti-drug day with executions: state media
Pakistani court sentences Americans for terrorism
Nokia to use Linux for flagship N-series phones
Israel's Likud backs West Bank settlement growth
Nokia to use Linux for flagship N-series phones
Frenchman who ate cellmate's lung gets 30 years jail
|
Alleged Jamaica drug lord extradited to US: official
Israel's Likud approves West Bank settlement growth
Paraguay into last 16, Kiwis leave with pride
Nike Posts Growth In Q4, Full Year Earnings
Iranian Guards Crossed Into Iraq To Capture US Hikers
Illinois State Police Dismiss First Muslim Chaplain
New Jobless Claims, Continuing Claims Fall More Than Expected
Katy Perry Spends Third Week Atop Billboard Hot 100 With "California Gurls"
Ben Stiller Creating Web Show Starring His Parents
Sino-Canadian ties of 'growing strategic importance': Hu
Ex-media baron Black's fraud conviction set aside
Japan PM kicks off campaign season
Myanmar sees 'dramatic' surge in drug seizures: UN
N.Korea vow to restore honour against Ivory Coast
Debate Heightens About University Of Texas Dorm Named After Klansman
Gucci, Fendi present first children's collection in Florence
US-ENTERTAINMENT Summary
Justin Bieber, Usher To Appear On "20/20" Michael Jackson Special
Oil Spill Cleanup Captain Commits Suicide On Vessel
A Minute With: Taylor Lautner from "Twilight"
Art missing since 1945 on show at German palace
US, EU Sign "Second Stage" Air Transport Agreement
Cuba's Buena Vista Social Club to miss U.S. show
YouTube, now with instant vuvuzela sound
|
Polaroid action nets 12.5 million dollars
Drool-worthy tips on new Paris foodie website
Internet bosses set to approve .xxx for porn sites
|
Bharti to invest 150 million dollars in Zain Zambia
Glastonbury readies for music, mud and Gorillaz
Apple's iPhone 4 makes world debut
Alibaba.com to buy U.S. e-commerce site Vendio
|
Stability back in Vietnam forex market: state bank
New Japan PM to make global debut at Canada summits
A Minute With: Taylor Lautner from Twilight
|
Santana recruits Nas and Daughtry for covers album
|
YouTube, now with instant vuvuzela sound
|
Killers' singer Flowers to debut album in September
|
Cuba's Buena Vista Social Club to miss U.S. show
|
US seeks to reassure allies after McChrystal fired
Bank of England warns of eurozone debt crisis dangers
US Congress approves new Iran sanctions
Burgers, Boeings and bonhomie as Obama meets Medvedev
Will video sites stop filtering content?
U.S. Congress OKs sanctions on Iran's energy, banks
Arrest in N.Ireland over 'Basque separatist probe'
Jamaica turns over alleged drug lord to U.S.
|
Apple's iPhone 4 makes stellar world debut
US lawmakers race to secure Wall Street reforms
Israel offers to let Europe diplomats visit Gaza-official
Gadhafi, Zapatero 'in talks' on next EU-Africa summit
North Korea issues no-sail warning; missile eyed
|
Sony's PlayStation near deal with Hulu: report
Scientists make progress in growing new human lungs
Russia to buy 50 Boeing 737s worth four billion dollars
Australian new PM reassures Obama on Afghanistan
Hong Kong passes historic reforms amid muted protest
|
Venture firm Accel pours 11 million dollars into GetJar
Blackberry maker RIM rings up record smartphone sales
US ambassador to Afghanistan: Time to move on
Obama, Democrats prepare for campaign with iPad, iPhone apps
Alibaba.com to buy U.S. e-commerce site Vendio
Twitter settles with US regulators over privacy breach
Sony's PlayStation near deal with Hulu: report
Stalin statue removed in Georgian home town
|
"Glee" Cast Members Talk UK Tour, Michael Jackson With Jonathan Ross
Police: Calif couple tried to sell baby at Walmart
Hong Kong passes democratic reform package
US, Russia Reiterate Commitment To Bring Peace To Afghanistan
Tibet environmentalist jailed for 15 years: lawyer
President Obama Signs West Virginia Disaster Declaration
Disappointment, pride for fans as NZ bows out
Severe storm shatters largest city in Connecticut
U.S. High Court Rules Honest Service Fraud Law Covers Only Bribery, Kickbacks
Whalewatching worth billions and booming: study
Russian President Gets Taste Of American Food, Calls It Not Healthy
"Harry Potter," "Paranormal Activity" Sequel Trailers To Debut Before "Eclipse"
U.S. Markets Continue Decline As Retailers, Financials Weigh
Palin fund illegal; donors will get money back
S.Korea places 65 firms under restructuring plans
Global Weather-Celsius
Seoul shares fall 0.6 pct on econ jitters
Sony's PlayStation near deal with Hulu: report
|
Taiwan stocks end down 1.5 pct; property slumps
PAKISTAN
China sets strong yuan rate ahead of G20
Will video sites stop filtering content?
|
China's yuan move too soon to judge: Obama
Seoul shares fall 0.6 pct on econ jitters
New Australia PM tells Obama committed to Afghan war
N.Korea issues no-sail warning; missile eyed-paper
From the Bronx to Brooklyn, pianos take over New York
Fans gather for Michael Jackson death anniversary
S.Korea won breaks support line on recovery doubt
Philippines' kidney register to fight trafficking
Taiwan raises rates on NCDs after rate hike
New troubles at Al Gore's Current TV
S.Korea raps 'reckless' N.Korea at war anniversary
N.Korea declares 'no sail' zone off west coast
Channing Tatum attached to sci-fi romance "Ion"
North Korea issues no-sail warning; missile eyed
"Toy Story 3" set to crush Cruise and Sandler movies
Goldman Sachs gets Weinstein films in debt pact
Blue Samurai draft new chapter for Japan
War film "Restrepo" gives ground view of Afghan war
Pubs urged to stock up booze for England vs Germany
Santana recruits Nas and Daughtry for covers album
Toy Story 3 set to crush Cruise and Sandler movies
|
War film Restrepo gives ground view of Afghan war
|
Goldman Sachs gets Weinstein films in debt pact
|
New troubles at Al Gore's Current TV
|
Channing Tatum attached to sci-fi romance Ion
|
Paws for thought: Oscar the bionic cat
Israel marks four years of 'cruel' Shalit captivity
G8 nations to take stock of development needs
|
Amputee cat gets bionic legs
Clijsters reaches Wimbledon fourth round
Kyrgyz troops vote in first stage of referendum
|
Bodies found beheaded in southern Afghanistan
BP shares plunge near 14-year low on liabilities
Pacific Hurricane Darby now a major storm off Mexico
|
Shakira To Release New Fragrance "S"
Former Transit Officer Testifies In Own Murder Trial
Germany calls for bank tax ahead of G20
Hurricanes In Eastern Pacific Ocean Pose No Threat While Forecasters Watch Atlantic Ocean Region
Police find 11 beheaded bodies in Afghan south
|
Are Americans embracing the beautiful game at last?
Drunk Man Found Mile Offshore Floating In Pool Chair
New York's V, W Subway Lines Make Final Runs Friday
Court rules no right to gay marriage in Europe
|
BP says 2.35 billion dollars spent on oil spill
Vatican protests to Belgium over police raids
|
Scientists Implant Functional Lung Tissue In Rats
Milwaukee Teen Dies In Parking Garage Collapse
Red Wine Ingredient May Prevent Blinding Diseases
Indonesia says militants aiming at embassy, police
|
Study: Canadian, U.S. Health Care At The Bottom Among 7 Industrialized Nations
Yemen police, militants clash during raid in Aden
|
Swollen river threatens major city in central China
Stalin statue removed in Georgian home town
|
UN war crimes panel chief 'criticises S.Lanka ban'
Outcry as Hong Kong adopts democratic reforms
Australia's Gillard unlikely to shift foreign policy
Japan sumo gambling scandal highlights yakuza links
Hong Kong passes "historic" reforms amid muted protest
Ambani brothers sign revised gas deal
Oppenheimer sees iPhone 4 sales of 1.5 million on first day
|
Pakistan to monitor Google, others for blasphemy
|
Suicide-hit Foxconn hands over staff dormitories
|
Pakistan stocks flat ahead of fiscal year-end
Asian markets extend losses after Wall Street fall
Man and didgeridoo open Glastonbury music festival
Mizuho Financial announces $9.6 billion share sale
Michael Jackson fans pay tribute to billion dollar man
Oil falls as investors turn pessimistic
Are Americans (finally) embracing the beautiful game?
S.Korea agency to buy $3.7 bln savings bank loans
S.Korean banks select 65 firms for restructuring
Japan fans hold sleepover to mark Jackson death
Michael Jackson fans pay tribute to billion dollar man
|
A Minute With: Taylor Lautner from Twilight
|
Man and didgeridoo open Glastonbury music festival
|
Greece at new risk of being pushed off euro
Bodies of missing Tenn. mom, Jo Ann Bain, and daughter found
Female Breasts Are Bigger Than Ever
AMD Trinity Accelerated Processing Units Now in Volume Production
The Avengers (2012 film), made the second biggest opening- and single-day gross of all-time
AMD to Start Production of piledriver
Ivy Bridge Quad-Core, Four-Thread Desktop CPUs
Islamists Protest Lady Gaga's Concert in Indonesia
Japan Successfully Broadcasts an 8K Signal Over the Air
ECB boosts loans to 1 trillion Euro to stop credit crunch
Egypt : Mohammed Morsi won with 52 percent
What do you call 100,000 Frenchmen with their hands up
AMD Launches AMD Embedded R-Series APU Platform
Fed Should not Ignore Emerging Market Crisis
Fed casts shadow over India, emerging markets
Why are Chinese tourists so rude? A few insights