Headline News has a story to tell advertisers this upfront season, and it’s one media buyers say is a good one.
   Having something interesting to tell buyers is relatively new for the network, which was launched in 1982 by media mogul Ted Turner. Until last month Headline News had a single focus: top news stories told every half hour, over and over. That strategy, while revolutionary at the time of its debut, has increasingly been met with disinterest from viewers getting news from the internet and competing cable networks like Fox News.
   But since Feb. 21, Headline News, now owned by Time Warner and under the leadership of CNN president Jim Walton since 2003, has been airing a revamped primetime lineup of three one-hour programs: “Showbiz Tonight,” the legal talk show “Nancy Grace,” and “Prime News Tonight.”
   “The concept is to broaden our content, and we’re programming it in a complementary manner to what’s on CNN in primetime,” says Ken Jautz, executive vice president of the CNN News Group.
   “We are looking at the CNN news group across both channels, and by offering viewers more choices, and a broader range of choices, then we can attract more people to the CNN brand.”
   The programming strategy, which is being backed up by a multimedia advertising campaign, is meant to accomplish two things. The main goal is to beef up ratings by keeping viewers tuning in for longer than a few minutes. The second is to use what will presumably be higher ratings to attract more advertisers to the network.
   “If you give people more choices, you will attract more people to the brand,” says Jautz. “And by offering a broader range of content you can also offer content that appeals to a broader range of advertisers.”

The network's identity
    In its two-plus decades there has been little to get excited about with Headline News. Outside of loading up the screen with dizzying graphics, recently ditched, the network has remained virtually unchanged.
   That hasn’t always been a bad thing. But it has become problematic as the network’s role as the source for quick news eroded with competition from local and national news outlets and, more significantly, the internet.
   “This [programming strategy] can boost ratings for them because long-form programming keeps viewers tuned into the network,” says Brad Adgate, senior vice president and corporate research director at Horizon Media. “On the flipside, they were unique in what they did. But the internet has taken away some of that uniqueness.”

The network's target audience
   Like virtually all the news networks, Headline News primarily targets adults 25-54.
   But with its new primetime programs, notably its entertainment news show and “Nancy Grace,” Headline News is also capitalizing on one of its strengths.
   The network does a good job of attracting the young viewers that most advertisers are targeting. The median age for Headline’s audience is just under 51 years old. That compares to viewers with a median age of 59 on CNN, nearly 61 on Fox News, and 54 on MSNBC.

The network's ratings
   Dependent as it is on big news stories to drive ratings, as are most news networks, Headline News has been doing fairly well.
  With the presidential election last November, Headline News’ total-day audience in fourth quarter was up 17 percent over a year earlier. In the 25-54 demographic, it was up 14 percent.
  But the increases were less impressive in primetime, when Fox News has its hit show “The O’Reilly Factor.” In that daypart, Headline News’ audience was up 8 percent on a year-to-year basis and up 7 percent in the 25-54 demo.
  CNN’s Jautz points to the weakness in primetime when explaining why Headline News is tweaking its format.
   “We came off a good 2004, but the relative strength was in daytime and on weekends, so we wanted to improve our primetime,” he says.
  Jautz says ratings are good for the network’s new primetime shows, specifically “Nancy Grace,” which is benefiting from viewer interest in high-profile court cases with Robert Blake, who was acquitted yesterday in his murder trial, and the Michael Jackson molestation case. Jautz says in its first two weeks “Nancy Grace” has been averaging a 0.4 rating in the 25-54 demo, up fourfold from the time slot’s rating a year ago.
   “The idea is to create a personality with [Grace],” says Horizon’s Adgate. “But the key is to have her keep the viewers after the Michael Jackson trial because that type of thing doesn’t happen all the time.”

The network's competitive set
   Headline News competes with all news sources, including the internet, and the news networks – notably Fox News and, to a lesser degree, MSNBC – but also its sister network, CNN.
   Jautz says Headline News’ new primetime is intended to attract different viewers to the network than those going to its competitors.

What’s new for 2005/06
   While Jautz says ratings are good so far for Headline’s overhauled primetime lineup, he says it’s still too early to tell if more long-form programs should be added to the network. Moreover, ratings for Headline News are unspectacular but respectable outside primetime, meaning the network isn’t likely to make dramatic changes in these dayparts.

The network's upfront outlook
    Although Headline News doesn’t have a formal upfront presentation, it is talking to media buyers about its growing ratings. The network was up in the election-fueled fourth quarter, and early ratings for its new primetime block are small but growing.

The final prognosis
  On a scale of 1 to 5, with 5 being excellent: 3.
   The programming changes Headline News has made are purely experimental at this point. Major court cases are now driving ratings on “Nancy Grace.” But media buyers point out that “Showbiz Tonight” at 7 p.m. is facing tough competition with established syndicated shows like “Entertainment Tonight.” And “Prime News” is indistinguishable from programs on the other news networks.
    Still, media researchers like Horizon’s Adgate say long-form programs will even out dramatic fluctuations in ratings between major breaking news stories.