Turner media group Files for Chapter 11 Reorganization

[Scott Greczkowski]

(Note: This is the same company that had a bunch of its channels removed from Dish Network a few weeks ago (they are back now but labeled as Dish)


Turner media group Files for Chapter 11 Reorganization

DENVER – Aug. 6, 2007 – Turner Media Group Inc., also known as The Media Group, the world leader in the development and delivery of innovative interactive TV advertising and programming and the owner/operator of eight national television networks, filed for Chapter 11 federal court protection on Aug. 5. In the Chapter 11 filings, TMG will seek to reorganize the companies, restructure its obligations and promptly repay all of the debts legitimately owed.

The company filed, together with certain of its subsidiaries, voluntary petitions for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Colorado. Under the protection of Chapter 11, TMG will have the time and opportunity to achieve the best possible value for all constituencies, as well as an orderly restructuring of the Company.

As part of the bankruptcies, TMG and the related companies have filed a number of "first day" motions intended to allow the company to achieve a smooth landing in Chapter 11 and to ensure employees continue to be paid and receive all of their benefits. TMG has retained the services of the nationally recognized law firm Baker & Hostetler LLP as its bankruptcy counsel.

About The Media Group
The Media Group, formerly known as Turner Media Group, provides interactive TV advertising, direct response programming and transactional TV networks. For more information, visit THE MEDIA GROUP.

 

[Juan]

The programming is not back

 

[db2]

Hmmm...well this certainly jives with E*'s claims that they weren't paying their bill.

 

[jegrant]

I love the euphemisms. No such thing as home shopping - why it's "interactive, transactional television" that "makes a direct connection with home viewers."

 

[RockinHARD26]

All it was, were shopping channels. Its like, go to the mall!

 

[Tom Bombadil]

I love the, "the owner/operator of eight national television networks" description.

So each one of those shopping channels was a national network?

 

[JamesJ]

Not every channel was a shopping channel, There was also and now read this carefully as they werent all shopping channels. (sorry for the little rant there but there is another thread with at least 4 pages of people thinking they are all shopping channels)- Mens outdoor channel which showed alot of hunting, my father and I watched this channel quite a bit. Scott, is the programming coming back on, or is it staying shut off?

 

[John Kotches]

My guess is this:

Pay the bill and the channels get put back on

Cheers,

 

[mdonnelly]

Not every channel was a shopping channel, There was also and now read this carefully as they werent all shopping channels. (sorry for the little rant there but there is another thread with at least 4 pages of people thinking they are all shopping channels)- Mens outdoor channel which showed alot of hunting, my father and I watched this channel quite a bit. Scott, is the programming coming back on, or is it staying shut off?

Betcha a nickel that the provider was paying E* to carry the channel, so he could sell targeted advertising. Not "exactly" a shopping channel, but close enough.

 

[JamesJ]

Betcha a nickel that the provider was paying E* to carry the channel, so he could sell targeted advertising. Not "exactly" a shopping channel, but close enough.

I agree there was some product placement, but also it was a very nice hunting/fishing channel.

 

[Erosman]

Re - lost programming from the now missing programs/channels

Hello,

Re - "This is the same company that had a bunch of its channels removed from Dish Network a few weeks ago", I am disappointed that I can no longer receive and watch the "Shop Erotic" programs that used to air from 2 AM to 4 AM (Central time) on Friday, Saturday, and Sunday mornings. While it is true that with that broadcast time I would miss more shows than I would catch, my wife and I did enjoy the shows we were able to catch. At the time those progams/channels were dropped from DISH, I was planning to record at least one night a week to stay current on what is avaialble and what it sedlls for.

This show filled a need and provided a valuable service. These aren't the kind of produvcts one can buy at most malls. Does anyone know if "Shop Erotic" will return to DISH? Is it availabe on any other channels? (So far, every time I've checked the late night listings, I found no sign of "Shop Erotic" being broadcast on any of the remaining shopping channels.)

I think shopping channels and shopping programs may have something in common with reality TV shows. In both cases, I - and many others I know - used to say we would never watch reality TV shows or shopping channels. That was the case until the diversity of both reality TV shows and shopping channels expanded to the point that they began to cover areas of interest to me. E.g.s include when the shopping channels began to carry certain collectibles and other special or niche products and when the reality TV shows began to cover people and issues of interest to me - such as Amish In the City or Rock Star:INXS.

If "Shop Erotic" is or will be available on DISH, I look forward to hearing about that.

 

[jegrant]

FWIW, I think I have seen Shop Erotic on Oxygen at times - but honestly, to me it was too cheesy to watch for long. I bet it airs regularly on Oxygen though - given their other adult programming (Sunday Night Sex Show, etc.)

Although - for some reason, it seems like Oxygen has not been showing this type of programming as much recently - late nights have been filled with repeats of Tyra and Ellen talk shows.

 

[Hall]

It's all Dish's fault !

TMG Blames EchoStar for Chapter 11 Filing
Denver Ad-Sales Firm Disputes $34M Claim From Dish
By Steve Donohue -- Multichannel News, 8/7/2007 8:09:00 AM

Turner Media Group Inc., an ad-sales rep firm and programmer, is blaming EchoStar Communications for trying to shut down its business, dropping its eight networks and forcing it to file for Chapter 11 bankruptcy protection.

The Denver-based operation, known as TMG, in legal papers alleged that satellite provider EchoStar for the past eight months has been engaging in "a systematic scheme" to try to capture TMG's "revenues, profits and assets."

In its Chapter 11 papers, TMG also said that it plans to dispute the $24 million claim that EchoStar, its largest unsecured creditor, is seeking. There are 20 unsecured creditors with more than $27 million in claims, a group that includes not only EchoStar but Time Warner Cable Direct, DirecTV, Comcast Spotlight, Comcast Media Center and Ensequence.

TMG's The Ad Group has been EchoStar's ad sales rep firm since 1998, for many years selling the majority of Dish Network's available ad inventory for 30-second spots and interactivity. Dish, which has also carried all eight of TMG's transactional national networks, dropped them July13, as part of the ongoing dispute.

EchoStar, which counts 13 million subscribers, declined to comment Tuesday.

TMG filed a petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Colorado.

Last year, TMG had $73 million in revenue and $200 million in billings, according to a declaration of Gary Turner, TMG's president, that was filed Monday. This year, TMG "will realize only a fraction of that amount," because EchoStar forced it into a re-negotiated contract, terminated that deal and then demanded about $23 million under the re-negotiated agreement, according to Turner's statement.

In contrast, over the last eight years EchoStar "has been enriched" by TMG, to the tune of nearly $1 billion, according to Turner. Most recently, Turner alleged that EchoStar made a "unilateral decision to retain 100% of TMG's advertising sales commission," about $500,000 a month.
In his filed declaration, Turner outlined the complicated details of TMG's problems with EchoStar. On top of is pact to handle the satellite provider's ad sales, in 2005 TMG struck a five-year agreement with EchoStar for Dish Network to carry all eight TMG networks under a revenue-sharing agreement. TMG also agreed to have EchoStar deliver those networks to other distributors, a job that Comcast's Digital Media Center had handled previously.

But in 2006, when TMG's ad-rep deal was up for renewal, EchoStar demanded that TMG also amend the carriage deal for the eight networks, according to Turner. For example, EchoStar wanted to be paid an escalating license fee of 63 cents for each of TMG's eight networks, Turner said.

"Needless to say, TMG was shocked that EchoStar would insist that these two separate agreements be tied together," and that it sought "onerous" amendments to a five-year carriage deal that had just been signed, Turner said.

TMG's ad-rep deal with EchoStar became non-exclusive in 2007, and Dish entered into an agreement with Google for a portion of its ad sales, although TMG continued to sell a majority of the ads.

A number of distributors, such as DirecTV and several cable networks, carry TMG's networks.

TMG has retained the law firm Baker & Hostetler LLP as its bankruptcy counsel.