FAQ 60 - BET
by Jahi Awakoaiye
Date: Fri, 3 Dec 1993 13:52:41 -0800
From: Jahi Awakoaiye <jawakoai@MIPOS3.INTEL.COM>
Subject: Information on BET
Greetings,
There has been considerable discussion regarding the mission of BET on the
net this week. I believe the following information about the company might
prove helpful. Hopefully, those who have expressed an interest in BET's
programming will use the address below to write and share their opinions
with the company's programmer. But since BET is one of a few publicly
traded African-owned companies, you can also impact's its direction as a
shareholder.It is important that you provide a framework for your critisim. Are you
upset with BET's programming, the profit goals of its CEO, or the company's
lack of vision? If you're upset with the programming, then this is reflective
of the viewing audience. They could not devote the majority of their air time
to music videos without an audience. If it's CEO was not profit directed there
would be no need for this discourse (the company would not exist). And if
you're upset with its lack of vision - well, that's why they make stamps.
I encourage each of us to strive for a proactive approach.
The following was downloaded from American Online.
OVERVIEW
BET Holdings provides entertainment and information for black consumers in
the US and Canada. Its Black Entertainment Television is the only cable
network designed exclusively to attract black viewers. Nielsen ratings
recorded an average of 160,000 black households (about 3%) tuned into BET
during prime time, yet, by appearing on over 2,500 cable systems, the network
has 35 million subscribers. BET Holdings also publishes 2 magazines for black
readers: Young Sisters & Brothers (YSB) for teens, and Emerge (of which it
owns 44%) for upscale adults, but 94% of BET revenue comes from its cable
network. Major shareholders are Time Warner (17.7%); Tele-Communications,
Inc.'s Liberty Media (21.4%); and founder Robert L. Johnson (55.8%), BET's
chairman and CEO.
Johnson formed Black Entertainment Television in 1979; it debuted on
cable in 1980 with 2 hours of weekly music programming. Music videos, which
BET obtains at no cost, make up 64% of current programming. BET went public
in October 1991, becoming the first primarily black-owned company on the
NYSE.Johnson intends for BET Holdings to become a marketplace in which
advertisers have a choice of media for reaching black consumers. BET's
acquisition of Emerge and launch of YSB added print to BET media. The
network's signing on in Canada's Yellowknife, Northwest Territories (1,500
homes with cable), marked BET's first international move. BET Radio Network
is planned for 1993.Through its ownership of broadcast and print media and its holding in a
minority-oriented advertising agency, BET is positioned as a "one-stop" media
source for advertisers. It also cross-promotes its own holdings. BET is
considering adding a rap and R&B music channel and is keeping an eye on moves
by MTV that might take viewers and advertisers away.
At the January 1993 half year, BET had sales of $35.4 million and $6.2
million net income.
NYSE symbol: BTV
FY ends: July 31
WHO
Chairman, President, and CEO: Robert L. Johnson, age 46, $471,507 pay
EVP Network Sales: James A. Ebron, age 38, $228,238 pay
EVP Network Operations: Jefferi K. Lee, age 35, $195,994 pay
EVP, General Counsel, and Corporate Secretary: Debra L. Lee, age 38, $195,915
pay
EVP Finance, CFO, and Treasurer: Alan H. Nichols, Jr., age 33
Auditors: Price Waterhouse
WHERE
HQ: 1232 31st St. NW, Washington, DC 20007
Phone: 202-337-5260
Fax: 202-342-7882
WHAT
1992 Sales
$ mil. % of total
Advertising 34.2 55
Subscription 26.9 44
Other 0.6 1
Total 61.7 100
Television
Black Entertainment Television, Inc.
("BET Cable Network")
United Image Entertainment (50% joint venture)
Magazines
Emerge Communications, Inc. (44%)
Emerge
Paige Publications, Inc.
Young Sisters & Brothers (YSB)
Advertising Agency
Haricom Advertising, Inc. (49%)
1992-93 New TV Programs
"Comicview" (standup comedy)
"Converse NBA Off the Court" (sports features)
"For Black Men Only" (talk show)
"Heart and Soul of R&B" (videos)
"Love Between the Sexes" (dating game)
"Sports Overtime" (sports news)
"StoryPorch" (stories for children)
"Triple Threat" (music trivia game)
KEY COMPETITORS
Capital Cities/ABC
Cox
International Family Entertainment
Johnson Publishing
Paramount
Saatchi & Saatchi
Turner Broadcasting
Viacom
Walt Disney
Young & Rubicam
1987 1988 1989 1990 1991 1992 Sales ($ mil.) 10.7 15.1 22.5 35.8 50.8 61.7 Net inc. ($ mil.) 1.0 3.2 5.0 6.1 9.3 11.7 Inc as % of sales 9.4% 21.2% 22.2% 17.0% 18.4% 18.9% EPS ($) 0.50 0.58 Stock - high 26.38 23.88 Stock - low 15.13 12.00