KGMB exec: "This is not about greed"
October 21st, 2009 by RickWhen a Los Angeles group acquired KHON three years ago and announced that it was firing about a third of its staff, Rick Blangiardi said he walked away from the buyers and his management team later followed him.
Speaking at a luncheon sponsored by the local chapter of the Public Relations Society of America today, Blangiardi contrasted the circumstances surrounding Montecito Broadcast Group's much-criticized 2006 purchase of KHON with the soon-to-be completed newsroom merger between KGMB9, KHNL and K5 television stations.
Blangiardi will head KGMB's and KHNL's operations.
KHON, led by popular anchor Joe Moore, dominated Hawaii television news ratings for years but the station's lead eroded under Montecito's ownership. Morale plummeted and Moore was critical of the cuts on air.
The California company sold KHON in 2007.
"That (the KHON deal) was all predicated by greed," said Blangiardi.
"This is not about greed. This is about moving forward in an unprecedented economic downturn."
KGMB, KHNL and K5 announced in August that they plan to merge newsrooms, simulcast some news programs and cut about a third of their staff.
The shared services agreement between the three stations will result in the terminations of all but four of KHNL's on-air staff.
KGMB and KHNL will launch their new newsroom on Monday.
Blangiardi declined to provide specifics on how the newscast will look like due to pending challenges before the Federal Communications Commission and other regulatory agencies.
But he said the agreement will result a top-notched news team and a quality "multimedia company for the 21st century" at a time when the local television advertising market has gone "through an incredible reversal of fortune."
Promotional material issued by the stations earlier this week indicated that KGMB and KHNL will simulcast their 5 o'clock and 10 o'clock weekday shows and that KHNL will move its 6 p.m. local newscast to 5:30 p.m. (See:)
"We're all trying to adjust, survive and thrive," he said.
Tags: K5, KGMB, KHNL, KHON, Montecito Broadcast Group, Public Relations Society of America, Rick Blangiardi
October 21st, 2009 at 9:09 pm
Believe that Blangiardi is talking out of both sides of his mouth. Anytime a company or companies who attempt to dominate a market, it is about profits and survival. These are the reasons for their combination, nothing else. This arrangement will no doubt have an impact of the other two stations; but they too can emulate KGMB and KHNL-K5. TV stations cannot operate in a totally free market situation, especially in such a small market in Hawaii. Only a few stations can survive economically and those who try to dominate the market are deemed to be restricting competition - but that is the purpose, similar to the airline situation in Hawaii. Competition among the few is what benefits the consumers.
While one company might win the current domination war; it is only transitory, in due time, should the surving company make large or excessive profits, they will others who will enter the market and once again make the market more competitive. This is the "natural' business cycle - businesses come and go, but as long there are consumers (demand), businesses will respond.