CBS layoffs signal a financial squeeze on TV stations
The economic slowdown and migration of the audience to the Internet are taking their toll on staffing at the local level.
By Matea Gold and Meg James, Los Angeles Times Staff Writers
April 9, 2008
When veteran Los Angeles news anchors Harold Greene and Ann Martin were felled by a round of jobs cuts last week, they were in good company.
At least 160 employees at CBS Corp.-owned television stations in 13 cities were let go, including such seasoned broadcasters as prominent Chicago anchor Diann Burns, renowned Boston sportscaster Bob Lobel and longtime Minneapolis meteorologist Paul Douglas.
The jettisoning of such experienced on-air talent exposed the weakening of the once-robust local station business, which historically has enjoyed some of the fattest profit margins in the media industry. It marked a dramatic shift from the days when television stations paid top dollar to attract big-name anchors such as Greene and Martin, who have been TV mainstays in Los Angeles for three decades.
Today, stations are feeling the same financial squeeze as their newspaper and network news brethren. An economic slowdown, combined with changes in news consumption patterns and the migration of advertisers to the Internet, have contributed to a lean start to a year that was supposed to benefit from a gush of political advertising.
"What is happening is that 2008, on the local level, is not as strong as people had expected," said Michael Nathanson, media analyst for Bernstein Research.
CBS insists that the quality of its news won't suffer because of the cuts, which hit three-quarters of the company's 27 stations.
"We still have plenty of seasoned reporters and anchors," said Tom Kane, chief executive of the CBS Television Stations group. "We have a lot of very strong talent."
Even so, critics contend that news coverage could be further diminished because of the latest layoffs. They were particularly concerned that experienced reporters were also sacrificed.
"The message being sent is, if you succeed in your job, you succeed in your craft, look out! You're too expensive," said Tom Petner, a former local broadcasting executive who edits TVSpy.com's ShopTalk, a daily industry newsletter. "I think it's shameful, because in the end the viewer loses out."
In a report released in July, the Writers Guild of America, East, reported that CBS and ABC news writers said recent workforce cutbacks had led to fewer investigative stories, less fact checking and an increased use of promotional video news releases at their news outlets.
"You can't lose people with that experience and contacts without suffering a price," Hofstra University TV analyst Robert Papper said. "You notice that no one is cutting back on newscasts -- only the people to do them."
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