ROANOKE TIMES
Copyright (c) 1995, Roanoke Times
DATE: Saturday, December 30, 1995 TAG: 9601020020
SECTION: BUSINESS PAGE: A-6 EDITION: METRO
DATELINE: NEW YORK
SOURCE: Associated Press
CNNFN ENTERED a field Friday that some observers say is too small to support two competing networks.
Months before big broadcasters begin their assaults on Ted Turner's corner of the all-news TV market, the cable pioneer has started a fight of his own in a smaller arena.
The owner of the Cable News Network and Headline News on Friday launched CNNfn, a financial news network designed to challenge CNBC cable channel's hold on the all-business news TV market.
But some industry observers have raised doubts over whether there is enough demand to support rival financial news networks.
``We'll let the marketplace decide,'' said Lou Dobbs, the veteran CNN business news anchorman and the executive in charge of shaping CNNfn's programming. ``But we see it as a terrific business opportunity.''
Cable system operators have few open channels available and CNNfn is starting with a very modest 5.5 million cable and satellite subscribers. CNBC, which is owned by General Electric Co., has a huge lead with about 56 million subscribers.
But even with its wide availability, CNBC has been drawing tiny audience ratings - an average 0.3 rating in the afternoon through early evening in November, according to Nielsen Media Research. That works out to about 168,000 homes watching in any given minute between 1 p.m. and 7 p.m. Ratings, which help determine advertising prices, were lower earlier in the day.
Realizing the tight competition, CNNfn executives hope to create compelling television that will broaden the audience for financial news and provide advertisers with a valuable alternative for reaching educated and affluent consumers.
CNNfn will provide original programming from 7 a.m. to 7 p.m., drawing on the 171 CNN staffers producing business news coverage for the general news cable channel in addition to another 48 staffers hired for CNNfn.
The new network is piggybacking on cable systems carrying CNN International, launched a year ago and now with about 4.2 million cable and satellite subscribers. CNNfn's 12 hours of weekday coverage will displace half of CNN International's normal schedule.
Time Warner Inc. has cleared CNNfn for distribution on its cable systems that serve New York City, giving the newcomer more than 1 million cable subscribers and critical access to Wall Street and media opinion leaders. Time Warner owns 18 percent of Turner Broadcasting System Inc. and has agreed to buy the rest, giving it many reasons to hope for CNNfn's success.
Jon Mandel, who oversees national commercial buying for Grey Advertising in New York, said he doubted the ad market was strong enough to support two business cable channels.
``Once you get past a few stock brokerages, there is no crying need for this,'' he said.
CNBC programming executive Jack Reilly said he thinks CNNfn's efforts to promote business news will help both of them.
``The competition will in fact widen the audience ... I don't see them as a threat,'' he said.
LENGTH: Medium: 66 lines ILLUSTRATION: PHOTO: AP. Scott Rosenthal, a director of CNNfn, preparesby CNBWednesday in New York for the debut Friday of the new financial news
network from the owners of Cable News Network.