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The News About the News
March 12, 2002

There is a TV war going on and it has nothing to do with Afghanistan.

Over the past few weeks, David Letterman has been negotiating his work contract with the network that carries his program, CBS.

ABC, the network where Ted Koppel hosts a news program called "Nightline," seriously considered hiring Letterman and moving or removing the well-respected news show.

Why is this such a big deal? "Nightline" is a serious program that has been on the air for decades. It is a show produced by the news department of ABC and it draws in an older audience than either Jay Leno or Letterman.

Despite Letterman's decision to stay at CBS, the idea that ABC would consider airing an entertainment program in place of an established news program causes many to worry about the future of television news.

News and Money

Up until the 1980s, the three major broadcast networks in the U.S. (NBC, ABC, and CBS) only had to compete with themselves and were more willing to air serious news and documentary programs, even if they didn't earn much money.

The arrival of 24-hour news cable channels (like CNN and Fox News Channel) caused the audience for the network news shows to scatter, and wealthy advertisers began seeking a larger audience by spreading their commercials to other shows.

The news departments decided to pull reporters from key locations and close offices overseas to try and save money.

Each network is owned by a larger "parent" company. More than ever before, those companies pay a lot of attention to how much each television show makes.

Each network is now a department with each parent company, and must make decent profits just like GE's aircraft engine division, Disney's theme parks, or Viacom's Blockbuster Video stores.

Because of the pressure to make money, the three network evening news programs, anchored by Dan Rather, Tom Brokaw, and Peter Jennings, might face increasing competition from profitable magazine shows like "Dateline" on NBC, "20/20" on ABC and "60 Minutes" on CBS.

These magazine shows are less about explaining what is going on in the world and more about dramatic stories and profiles. Because they don't need to react to breaking news or keep correspondents around the world, they are also much less expensive to produce than either the evening news or other entertainment shows.

Who's watching what

The networks' nightly newscasts reached about 69 percent of viewers back in the 1980-81 season, according to the Washington Post.

The three network newscasts now bring in about 43 percent of all viewers nationwide, which is about 25 million people.

Still sounds like a lot, doesn't it? No other media organization reaches that many people.

But, the networks are concerned that those viewers might not be in the right age group. Advertisers like younger audiences because they believe people who are 18-49 actually buy more things from commercials.

The search for youth

The search for younger viewers is the reason a television network might chose an entertainment show like David Letterman over a serious news program like Nightline with Ted Koppel.

The age difference between the audiences seems tiny: the average Letterman viewer is 47, according to Nielsen Media Research. An average "Nightline" viewer is 52.3.

And while neither host is young (Letterman is 54, and Koppel is 62,) advertisers say that Letterman is edgier and funnier, attracting younger viewers.

Nearly twice as many men age 18 to 34 watch Letterman over Koppel. That's why Letterman's top three advertisers are beermakers -- Anheuser-Busch and Miller and a carmaker -- General Motors.

The youth factor is why 30 seconds of advertising costs $40,000 for Letterman, but only $30,000 on Koppel's show. (Jay Leno's "Tonight Show" is the most expensive, at $60,000.)

So even though more people watch Nightline most nights, Letterman makes more money because advertisers pay more to reach a younger audience.

In the view of some advertisers, younger and happier shows sell more.

"You have a pretty good idea of what a Letterman show or a Tonight Show is going to be like in tone and attitude," said John Tigue, the man in charge of buying ad-time for Anheuser-Busch.

Usually, those shows are fun and commericals aired during lighter shows can have more humor.

"With a news show, depending on the day's news, you could have troubling topics, some pretty grim topics," he said. "So even though the audience may be there, the commercial isn't in the right environment."

The future of news

One thing is definite: television news will continue to change in the years to come.

The big question is: will the quest for more money mean the end of network news as we know it? And what does that mean for Americans and our understanding of the world and issues that affect us?

Find out more about why broadcasters are interested in younger viewers and participate in our online forum to tell us what you want in a newscast.

-- By Samara Aberman, NewsHour Extra