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Viacom's LOGO Will Vie With Others To Be First Gay TV Network

http://www2.commercialcloset.org/cgi-bin/iowa/index.html?page=column&record=86

Viacom's LOGO Will Vie With Others To Be First Gay TV Network

By Michael Wilke
June 5, 2004


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Viacom is planning to launch 24-hour gay TV network LOGO in February 2005, but rivals PrideVision of Canada and here! TV may introduce theirs first.

Launched as a gay pay-per-view service in August 2003, here! TV is available in 22 million households on DISH Network, DirecTV, and RCN cable, with more cable operators to come. The service will soon run in multiple formats, including subscriber video on-demand service (SVOD) launching next month, and the only commercial-free, premium channel in October.

Lead by Los Angeles-based producer Paul Colichman, who produced independent film Gods & Monsters, here! TV claims a $100 million programming war chest and is to carry 40% original material nine hours a day, along with acquired material from Strand, TLA, and Wolfe Video.

Meanwhile, Canada's PrideVision, launched September 2001, already claims the "world's first GLBT television network" title and is also racing to the U.S. market. It plans a fall launch here with its library of original shows, gay TV series, and late night male and female erotica. "We have everything we want, uncensored and unapologetic," says Jason Hughes, PrideVision director of sales & marketing.

PrideVision owner Headline Media Group has an agreement with a major American cable company and is nearing a contract with a dish provider. The service has a nationally available mandate in Canada, with 15,000 household subscriptions costing $4-$6 a month (it will run higher in the U.S.). Advertisers there include Pepsi, Nissan, Nivea, Crest Whitestrips, movies and music companies, though none have made gay-specific commercials.

However, the network suffered a big spending cutback a year ago. "We now have three years of research about what works," explains Hughes. Viacom's announcement was coincidental, he says, but has increased investors' interest for PrideVision in America and Europe.

Retro Logo for Viacom's LOGO Channel

Finally moving forward on an old, two-year-old gay channel plan, then called Outlet, Viacom/MTV Networks announced in late May it's launching LOGO. Without comment, it dumped the old name and Viacom partner Showtime, and lost the premium channel model.

Viacom CEO Sumner Redstone confessed stalling the earlier plan was a mistake. He now tells investors it will cost $30 million to launch, but could be worth $1 billion.

LOGO will be on regular digital cable with commercials on Time Warner, RCN and other, with 10 million homes projected for 2005.

The look and name mystified some. The logo for LOGO is 1970s retro, and the O's contain the words "different" and "together." The web site proudly notes the name "is not an obvious pun or play on words; it's not clichéd or dated as could have easily been by using well known symbols," and "it appeals to a broad range of viewers and signifies the many meanings of identity."

Predictably, the first advertisers will be familiar. LOGO's site confirms Viacom is "in discussions with many companies that already market to the gay audience, such as General Motors, American Express, Avis, Pfizer and many others. We already have some commitments from companies such as Orbitz, but we have just begun to reach out to advertisers."

Because few advertisers have gay-targeted commercials, Viacom will "integrate their marketing messages into LOGO's programming," including product placement, program segments involving their brand, online integration, and contests.

LOGO will be the most mainstream of its competitors. Original programs will be developed with Showtime, CBS News, VH1, MTV, and Comedy Central, and movie titles will be acquired from major studios. A mix of 75% acquired/licensed programming and 25% original series and specials is planned, targeting lesbians and gays ages 25-49, with no erotica, sex or profanity. Despite being the child of MTV Networks, gay youth are not in LOGO's plan, nor the competition's.

Gay TV Travels To Europe Too

Gay channels aren't just for North America. After several delays, Pink TV is still expected to launch in France this summer and GAY-TV of Italy became Europe's first gay network in May 2002, free to satellite dish owners. GAY-TV pulled in advertisers Dolce & Gabbana and Renault. The channel, owned by Dutch investor Coril, claims daily viewership of up to 500,000 Italians, half of whom are straight.

Ironically, all gay networks and programs count on a substantial portion of straight viewers, up to a third or more, for success.

There are also a number of small-business players entering the gay TV market. Q Television Network, formerly Triangle Television Network of Palm Springs, reports they are now planning a July launch (As Triangle, it has tried since 2001). Pride Nation Network and VillageTV.com have bypassed broadcast for streaming media delivery of original and repurposed content, respectively. Gay Cable Network of NYC is the oldest small effort, in business for over 20 years, but with little advertising.

Other small players have tried and failed over the years. Gay Entertainment Television, launched in 1993 by cobbling together local paid-access cable channels, then ceased five years later. C1TV took a similar approach in 2000, and bought the rights to the groundbreaking British "Queer As Folk" series, but never hit a stride or major investment, and petered out a few years later.

To improve its profile, here! TV will spend about $3 million this year on promotional efforts in gay media and events, long before PrideVision and LOGO get started, though LOGO will have enormous promotional support on Viacom networks. Gay marketing firm Double Platinum will handle PrideVision's efforts.

With an estimated 14-24 million American lesbians and gays, and strong interest from the general population, there may be room for several efforts. Consumers will quickly go from no gay channels to competing, 24-hour mainstream to edgy offerings.

But currently, many major corporations pay more annually for paperclips than to reach the gay market. Interested advertisers need to increase their budgets for the higher costs of TV, and create appropriate commercials for the new networks. Gays are quickly becoming bigger business.