[Chapter 696: Of Course, It's All About the Money]
The news departnt operated independently under ABC, managing all of the network's news programming. The profit margins for news programs had always been very low. Over the years, only a few tis had this trend been broken. However, the news departnt served as a critical dia channel for any dia conglorate. This nationwide tool for controlling public opinion could not simply be asured by profit alone. Even if it operated at a loss, major networks would not readily cancel their news programs.
When Jeffrey Katzenberg ntioned Nightline, Eric Williams didn't just hear about the significant profit gap between Nightline and the late-night shows on NBC and CBS and instantly get excited. Instead, he cautiously asked, "What are the points of contention between Robert and the news departnt president, David Westin? And if we bring in The Late Show with David Letterman, what will happen to Nightline?"
Katzenberg replied, "This concern mainly stems from David worrying that if Nightline gets canceled, it could beco the spark that leads to budget cuts in the entire news departnt. Besides Nightline, there are several other low-rated news programs, and if all those shows get cut, the staff size and budget of the news departnt could shrink by at least 30%. The departnt has always been a cohesive unit, and the managent has a hard ti accepting a sudden disruption to the stability they've maintained. Regarding Nightline, Robert's proposal is to delay the show by an hour, airing it after the late-night shows."
"Delaying it by an hour is a terrible idea; it'd be better to just cancel it outright. If I were David, I'd probably end up clashing with Robert," Eric shook his head and chuckled. Nightline was originally scheduled to air at 11 PM, but pushing it back an hour would push it to an entirely aningless ti slot. After a mont of consideration, Eric said, "You should personally call David Westin about this. Don't let it drag on and escalate the conflict. Just assure him that there won't be any large-scale adjustnts to the news departnt from headquarters. Even if Nightline gets canceled, the news departnt won't have a massive layoff."
Katzenberg asked, "What about the extra staff?"
Eric thought for a mont and replied, "Now that Fox News and two major news networks exist, those specialized news channels need to scale up to achieve profitability. The reason Fox News rose quickly was due to the dia resources of the entire news group spread across the world, and we don't have that advantage. Therefore, we won't be doing an ABC News channel. However, there aren't any professional news websites online yet. I believe we can explore that route. Although ABC's news departnt can't support a 24-hour news channel, establishing a professional news website is absolutely feasible."
Katzenberg asked skeptically, "Eric, isn't Yahoo a news site?"
Eric shook his head and explained, "Yahoo positions itself as a comprehensive information platform; the news section is only a small part of their business. They do create so content, but the majority of the information cos from various internet dia sources, essentially acting as a 'cyber supermarket' that distributes content from other sites."
Katzenberg nodded, sowhat understanding but resolved to go back and research relevant materials thoroughly.
Eric added, "The internet will likely beco the primary dia broadcasting channel of the future, so we should get David Westin to pay attention to this. If he encounters any issues with website developnt, he can reach out to Yahoo for help. Back in the day when Ted Turner started things up, many thought there was no way to turn a profit, but he handed over a slice of the pie that should have belonged to the major networks to this newcor. The current situation is quite similar; hardly anyone notices the potential of professional news sites on the internet. If ABC can get in early, it might just reach significant heights."
Eric understood the future internet environnt perfectly. Compared to other sectors like search engines and e-comrce, news websites didn't seem to have much potential for profit. The more crucial role for them would be as tools for public opinion, which Eric valued the most. However, he wasn't going to be candid about this; otherwise, the news departnt wouldn't pour its efforts into expanding in that area.
His primary goal in making this suggestion was to provide the news departnt with another direction for developnt, mitigating the internal conflicts arising from adjustnts related to programs like Nightline. But Katzenberg was genuinely excited about Eric's suggestion. The wave of the internet had begun, and as the head of a dia group, Katzenberg found himself increasingly exposed to relevant information. He knew that ABC simply did not have the strength to create a news channel that could compete effectively. However, if they could seize the initiative and establish a professional news website online that was on par with their standing in the real world, that would be incredibly fulfilling.
"Eric, if that's the case, I'll take the ti to personally oversee the ABC news website. With this new project, there's no reason for David to keep stirring things up, and the adjustnts to Nightline can proceed smoothly."
Feeling Katzenberg's enthusiasm, Eric didn't want to discourage him. He thought for a mont and suggested, "How about this: Firefly can set up a subsidiary specifically responsible for the news website. This will make it easier to tackle things like going public and financing in the future."
Katzenberg looked puzzled. "Eric, why go public? Haven't you always been against it?"
Going public was, of course, all about making money.
Under normal circumstances, the profit outlook for news websites wasn't clear, and raising capital through an IPO was almost impossible.
But the next few years were different. With the rise of the internet wave, any concept tied to the internet was sure to attract investors. Eric didn't expect the ABC news website to produce significant operational revenue, but it would be a sha not to leverage the opportunities of the internet bubble to make a sizeable profit in the financial markets, especially considering his unique foresight as soone who had "reborn."
Yet he couldn't express such thoughts directly to Katzenberg and preferred to be vague. "Jeffrey, I can't exactly explain this to you right now, but you'll understand in a few years."
Katzenberg had encountered this type of reasoning from Eric before, and more often than not, it proved to be true. So he didn't question it further and kept asking Eric for specific ideas on how to build the news website.
They continued to discuss until the sun sank behind the glass-lined horizon. Eventually, Katzenberg and Kelly decided to leave together.
Eric glanced at the ti; he had an Oscar publicity party for Saving Private Ryan that evening. He hurried upstairs to change into a suit and quickly left Malibu, heading to Beverly Hills.
*****
/Sayonara816.
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