New CW Network: Who Wins, Who Loses

[SOURCE: CNN|Money, AUTHOR: Paul R. La Monica]
[Commentary] Who will be the big winner from the creation of the new CW television network? Here's a hint. It might not be CW or even the other major TV networks. LaMonica thinks that even though CW will get to cherry pick the best shows from the WB and UPN, in the end some viewers are going to feel left out when their shows don't make it to the new network. That could drive them to cable networks or Video on Demand. Some shows that get dropped by the UPN or WB stand a chance of getting picked up by cable as long as the price is right, said Shari Anne Brill, vice president of programming with Carat USA, another media buying firm. As for the impact on the big four networks -- CBS, ABC, FOX and NBC -- the elimination of one competitor should, in theory, make their own prime-time shows more attractive vehicles for advertisers. There are some clear losers to the merger, however. In markets where both the UPN and WB are available, one of those affiliate stations will be suddenly faced with a big programming void to fill come September. This could hurt companies ranging from media titans like News Corp, which in addition to owning Fox also owns some local UPN stations, to smaller independent station owners such as Sinclair Broadcasting. Industry watchers Schwartz said he doubt that another major media company would try and launch a sixth network to fill the programming gap, which means that many local affiliates will have to come up with content on their own.
http://money.cnn.com/2006/01/24/commentary/mediabiz/index.htm