Metro-Goldwyn-Mayer Inc. has found an economical solution for cash-strapped TV stations looking to fill their digital space: "Beach Blanket Bingo."
Nearly eight months ago, the venerable movie studio created a low-cost programming service for television stations called This TV. Stocked with B-level films found deep within MGM's vault, the venture serves up vintage fare like the 1960s beach movie with Frankie Avalon and Annette Funicello as well as TV shows such as "The Addams Family" and "The Patty Duke Show."
"This is a great opportunity to take advantage of the digital transition," said Jim Packer, MGM's co-president of worldwide television.
On Friday, TV stations across the country completed the transition to all-digital broadcasts. The technology makes it possible to squeeze signals into a more compact slice of the spectrum, giving stations the ability to transmit several channels of programming -- instead of just one as was allowed under the old analog system.
The shift to digital TV, which had been in the works for two decades, was envisioned by the federal government as an opportunity for stations to provide comprehensive coverage of local news and sports, public affairs and multilingual programs on their digital sub-channels.
But a market to underwrite that vision has not materialized, and the lousy economy and crimped local advertising spending have not helped. During the last year, TV stations have cut costs and shed employees, leaving few resources to develop original programming that could be used to draw viewers to their digital channels.
"Programming the remainder of the digital spectrum is the last piece of the puzzle," said Steve Ridge, president of media strategy for consulting firm Frank N. Magid Associates. "But everyone is wondering whether they can make money on it."
The simplicity of MGM's venture, a 24/7 offering of old movies and TV shows, has become one of its key selling points. MGM doesn't charge for the service. Instead, it splits the ad revenue generated by This TV with the local television stations.
"It's turn-key," MGM's Packer said. "Stations can turn the switch and have a new channel."
Deana Myers, television analyst with media research firm SNL Kagan, said the recession "in some ways makes this an opportune time for MGM to launch This TV," she said. "I just don't know how much money they are going to get from the stations right now."
