Cable channels undergo TV makeovers

NEW YORK -- Don't fret if you feel baffled by all the exotic new channel names and programming choices popping up on your cable or satellite TV guide.

As pay TV's go-go years wind down, a growing number of cable networks, especially the middle of the pack, are playing with their identities and launching risky campaigns to reach more viewers.

"These are the toughest market conditions we've dealt with since the early days of cable programming," says Roger Werner, CEO of Outdoor Channel Holdings, who helped to create ESPN. "That's why you're at a point today where you're seeing more of this rebranding and repositioning than ever before."

In the past 12 months OLN (originally Outdoor Life Network), high-definition service INHD and The Biography Channel traded in those names for snazzy new ones: Versus, Mojo and Bio, respectively.

The new year will begin with CourtTV morphing into truTV, followed by Discovery Home blossoming into Planet Green.

Even some channels keeping their brand names are overhauling lineups and images. AMC, Bloomberg TV, IFC, Military Channel and TV Land are getting makeovers; A&E and Lifetime are considering it. The goal: stand out among more than 160 channels.

"It's getting harder and harder to identify with the viewers and let them know who you are and what your strategy is when there are so many channels," says Derek Baine, senior analyst at researcher SNL Kagan.

Many channels also are adjusting to meet a growing need to produce original programming. The old movies and reruns of prime-time hits that have been cable's bread and butter no longer cut it when viewers can also catch these shows via digital-video recorders, DVDs and Internet downloads.

"Consumers change in their relationship to media, and their interests change, which means you'd better well change with them and be continually relevant," says Joshua Sapan, CEO of Rainbow Media Holdings, owner of AMC and IFC.

Cable channels — the common label for pay-TV networks also on satellite and telecom TV services — have a lot on the line. The ad-supported channels collectively will generate $38.1 billion in revenues in 2007, with an enviable 36% left over after expenses, according to SNL Kagan. The cash comes largely from ad sales and the fees subscribers pay indirectly each month in cable or satellite TV bills.

Losing niche appeal?

Some executives fear, however, that the rebranding stampede could crush one of the strongest selling points for cable and satellite TV: programming that appeals to distinct, niche interests.