NEWS CORP'S <NWS> FOX DEBUTS U.S. NETWORK
Fox Broadcasting, owned by Rupert
Murdoch's News Corp Ltd, is set to launch two prime time
television shows this Sunday on what some have called the
fourth television network.
    The company, built around Murdoch's two billion dlr
acquisition of seven television stations last year, marks the
first network startup since 1948, when ABC, now owned by
Capital Cities/ABC Inc <CCB>, hit the airwaves.
    "I think our goal, more than anything else, is to provide
an alternative to the three networks," said Fox president Jamie
Kellner.
    Fox's debut comes when earnings at two of the three
networks are under pressure and network advertising dollars
have been growing slowly.
    "The barriers to entry are exceptionally high," industry
analyst Peter Appert of C.J. Lawrence said. "Their (Fox) saving
grace is that their parent has deep pockets."
    The question television industry, advertising and Wall
Street executives are asking is whether this new entry can lure
advertisers from the big three: CBS Inc <CBS>, ABC, and NBC, a
unit of General Electric Co <GE>.
    Network advertising revenues rose to 8.6 billion dlrs in
1986 from 8.3 billion a year earlier, with NBC accounting for
all of the gain. Revenues at CBS and ABC declined, analysts
noted.
    "They (Fox) are competing for the same pool of funds as the
traditional networks," said Jon Mandel, associate media
director at Grey Advertising Inc.
    But James Mandelbaum, a Los Angeles-based entertainment
attorney said, "If they have enough money, they have a good
chance of making it work."
    Fox president Jamie Kellner said the company expects to
lose 30 to 50 mln dlrs this year on revenues of about 150 mln
dlrs. He said it will take three to five years to turn a
profit.
    To succeed, the company must also win over the young
viewership it has targeted with an offbeat set of shows, two of
which debut this Sunday, and another, next weekend.
    The first Fox-produced program -- "The Late Show,"
featuring comedienne Joan Rivers -- was shown last fall on
Fox's seven stations and close to 100 affiliates. Although the
show has dropped recently in ratings, it still has a captive
young audience in the late night time slot, analysts said.
    Sunday's prime-time shows include a situation comedy,
"Married ... with Children," which Kellner describes as an
alternative to the suger coated family shows on the networks.
It is also airing "The Tracy Ullman Show," featuring the
British comedienne, singer and actress.
    Fox has lined up 107 independent TV stations around the
U.S. to run the shows. The networks have some 637 affiated
stations.
    To make sure viewers get a chance to see the programs, the
company is taking the unprecedented step of airing them three
times in the course of the evening.
    "I believe if some of their shows were on the traditional
networks, it would be extremely high-rated," Mandel said, who
added that his firm has signed up several million dlrs in
advertising for the shows.
    But some question whether Fox will really become a fourth
network. Robert Adler, president of the Cabletelevision
Advertising Bureau, said many cable shows are geared to the
audience Fox is attempting to win. "There are already many
alternatives out there to the three networks," he said.
    And at least one network is not yet ready to consider Fox
the competition. An ABC spokesman said, "the schedule we've put
together for this Sunday night ... has not taken Fox's
programming schedule into account."
    But analysts noted that the major networks are keeping a
eye on the venture to see how it fares in the ratings and with
its advertisers.
    Fox also appears willing to take a long-term view. Asked
whether the company will be looking at ratings after Sunday's
debut, Kellner said, "the last thing I want to do is worry
about ratings because that was the last thing Murdoch told me
to do."

 Reuter
