bghauk@watdragon.waterloo.edu (Brian G. Hauk) (02/26/91)
** I'll reply to David's post, but please continue this discussion in ** alt.censorship as it has nothing to do with comp.society. David Gast writes: > The primary purpose of a news organization today seems to be to generate > the most money for itself.... NBC is owned by General Electric, a MAJOR arms dealer, and can make the most money for its parent company by being pro-war and encouraging the American public to support its administration as they purchase billions of dollars of weaponry. > One can get further information by reading the magazine FAIR. A FAIR article giving a corporate profile of NBC follows. It and others can be obtained by sending a file retrieval request to a listserver carrying the ACTIVISTS mailing list. For instance, mail sent to listserv@umcvmb.bitnet, with message GET NBC FAIR ACTIV-L retrieved the appended article. Articles from the ACTIVISTS mailing list include ABC FAIR, CBS FAIR, NYT FAIR, and WPOST FAIR. See the mailing list index to learn of others. The following is from the ACTIV-L: - - - - - ----------------------------------------------------- Date: Wed, 25 Jul 90 12:30:50 PDT From: dave%ratmandu.csd@sgi.com (Dave Ratcliffe) Subject: Media Corp Profiles: NBC This is the second in a series of profiles on the major media corporations in the United States. This article appeared in the May/June 1989 issue of "Extra!", a pub- lication of FAIR, and is reprinted here with permission. ----------------------------------------------------------------------- NBC: THE GE BROADCASTING CO. by Doug Henwood This is the second in a series on media corporations by the editor of "Left Business Observer," 250 W. 85 St., NY, NY 10024. In 1986, when GE bought RCA, and thereby "NBC," it returned things to a state not unlike the early 1920s. The Radio Corporation of America was founded in 1919, as a joint venture of General Electric and Westinghouse; "NBC" itself was born in 1926, as a joint venture of RCA, GE, and Westinghouse. Trustbusters forced the giants to divest RCA in 1931, and the company did nicely on its own for over four decades. But by the 1970s, it was faltering badly; though new management in the early 1980s cleaned up RCA's act somewhat, it was still vulnerable to a takeover. GE paid $6.4 billion for RCA and swallowed it with nary a burp. GE is an industrial and financial powerhouse with 1988 sales of $50.1 billion and profits of $3.4 billion. ("NBC" contributed 7.3% and 9.1% of these totals, respectively.) Among other things, GE makes refrigerators, light bulbs, conventional and nuclear power plants, plastics, robots, aircraft engines, and medical equipment. Its highly aggressive GE Capital subsidiary offers financing for leases and leveraged buyouts; the Kidder Peabody subsidiary is a major securities broker-dealer. GE is consistently listed among the top Pentagon contractors; its detonators reside in every hydrogen bomb in the US arsenal. Under chair John "Neutron Jack" Welch, GE has pledged that it will be number one or two in whatever markets it competes in worldwide. If a line of business can't shape up, it will be sold or terminated. (Welch is called Neutron Jack--like the neutron bomb--because he makes people disappear but leaves the buildings standing.) While "NBC" has been the top-rated network for four years now, and is by far the most profitable of the three networks, the news division is rated last, and is the only money loser in the network pack. Since it's unlikely "NBC News" will be extinguished, it must shape up. POLITICAL CONNECTIONS. GE--which employed Ronald Reagan as its PR spokesperson from 1954 to 1962--has long cultivated political connections. GE's board has traded personnel with the Pentagon, and former GE president Charles "Electric Charlie" Wilson was one of the architects of the permanent war economy. "With the support of public opinion, as marshalled by the press," Wilson said in 1951, the public must be "convinced that the only way to keep disaster away from our shores is to build America's might." Now, of course, GE doesn't have to marshall the press; GE owns the press, or at least a chunk of it. Shortly after taking over "NBC," GE installed Robert Wright, a veteran financial executive, as network president. Wright immediately created a stir by urging network employees--including news staffers--to contribute to the company's political action committee to help the network buy some friends in Congress. He suggested that employees who failed to contribute to the PAC were of dubious loyalty to the firm--a heavy charge, given Wright's stated intentions of heavy layoffs. The resulting uproar from news employees and the public caused him to drop the suggestion, but Wright left little doubt as to where he and GE stood. (Wright gave money to the Bush campaign, as did "Neutron Jack" Welch, and Cap Cities/ABC chair Thomas Murphy.) Though it's hard to trace a change in "NBC" news coverage since GE took over, who knows what the future holds? GE has taken a liking to conservative commentator John McLaughlin and his crew of rightwing loudmouths; it sponsors the "McLaughlin Group" and promotes it heavily. Not content with his 2 weekly programs, GE's new cable network, "CNBC," recently launched a nightly talkshow for McLaughlin. Chairman Welch, in turn, is a favorite of right-wing media scourge Reed Irvine. In a cost-cutting environment, will correspondents want to keep their visibly conservative bosses happy? FROM BAD TO WORSE? ln 1987, "NBC" provoked a strike, by putting forth a take-it-or-leave-it deal that would reserve the right to transfer operations to non-union subsidiaries, hire over 100 temporary low-wage and benefit-free staffers on a day-to-day basis, robotize operations, and rely more heavily on network pools for visuals. "NBC" won, and proceeded to cut the staff by 25%. The president of "NBC News" is ex-newspaperman Michael Gartner, a deceptively folksy, bow-tied Iowan. While editor of the "Des Moines Register," Gartner tried to buy the paper from the Cowles chain; though he failed, his attempt put the paper "into play," leading to its takeover by Gannett. He joined Gannett shortly thereafter, first as the hatchet man assigned to "clean house" at the newly purchased "Louisville Courier Journal," then as a consultant to "USA Today." Thus he has valuable experience in closing papers and laying people off--always a plus when you're in GE's employ. Gartner still owns the "Ames Tribune" (IA), notorious for its low pay scales. "He's very good with a balance sheet," says a former colleague. Morale is reportedly awful at "NBC News," where the workforce has been reduced from 1400 to lOOO, and the budget cut from $300 million to about $250 million. GLOBAL REACH. In December 1988, "NBC" joined with "Cablevision," a large Long Island-based system, to create at least one national cable network and several regional news and sports channels. "Cablevision" is the lOth-largest system in the country; it owns "Bravo" and five regional sports networks, and produces a local news show for Long Island. "Cablevision" offers another outlet for the 1992 Olympics, for which "NBC" paid heavily--$400 million. Recalling the flak it took for excessive commercials during the Seoul games, "NBC" promises not to clutter up the airwaves next time around; instead, they hope to offer some events, probably the less-popular ones, on the "NBC-Cablevision" channels, on a pay-per-view basis. By reserving popular events for broadcast, "NBC" will keep its affiliates happy. The "Consumer News and Business Channel," a nonunion operation that is "NBC"'s first cable network, premiered in April. "CNBC," in which "Cablevision" holds a 50% share, is billed as having more of a consumer twist than its principal rival, the established but low-rent "Financial News Network." How much can consumers expect from a GE-owned network featuring a nightly "John McLaughlin Show?" "CNBC" programmers told "Extra!" they had considered and rejected a Ralph Nader show. Unsatisfied by merely extending its domestic reach, "NBC" wants the world. Last year, it bought 5% of a New Zealand network, 38% of the London-based "Visinews," and an option on an Australian network. "Visinews," which "NBC" shares with "Reuters" (51%) and the "BBC" (11%), produces news reports for 84 countries. "NBC" not only wants the footage--"Visinews" is staffed by lower paid employees than "NBC"--it sees "Visinews"' 84 countries as virgin territory for its own news products. At first, "NBC" said "Visinews" meant no staff cutbacks, but there have been, along with demotions. At home, to cut costs, "NBC"'s Chicago news bureau was merged with the local station's, and the Houston bureau has been closed. With Houston's demise, Louisiana--not to mention Texas--is now covered from Burbank. While reporting is expensive, fluff is cheap: A new prime-time program, "Yesterday, Today, Tomorrow," co-produced by the entertainment and news divisions, will include dramatic re-creations of appropriately titillating events. News can be fun! And why not--after all, Gartner has said that "Cheers" serves the public interest as much as "NBC Nightly News." Maybe he's right. Of course "NBC" wasn't exactly an iconoclastic wonder in news or entertainment before GE came on the scene, nor is "NBC" the only network that has zealously stuck it to the workforce. But GE parentage adds both zip and force to the transformation, and increases pressure on other networks to follow suit. "NBC"'s profitability is one of the highest of any GE business lines. If Gartner can just get the news division whipped into shape, Neutron Jack will beam with pride. INFACT, the group boycotting GE consumer products because of its nuclear involvements, has published a 130-page corporate profile of GE. Call INFACT at 617/742-4583 in Boston, or 415/272-9522 in Oakland, CA. ____________________________________________________________________ | THE BOARD | | | | GE's board is a conservative cross-section of the power | | elite--corporate executives, bankers, retired cabinet | | members and generals, an Ivy League president and several | | Ivy boardmembers. There are multiple ties with the Morgan | | bank, Citicorp, Manufacturers Hanover. GE boardmembers also | | serve on several media industry boards--Harper & Row, | | "Reuters," the "Washington Post." They are well-represented | | in the branches of the permanent government, too: according | | to INFACT, three (Preston, Welch, and Sigler) belong to the | | Business Roundtable; three (Preston, Welch, Wriston) to the | | Council on Foreign Relations; two (Michelson, Wriston) to | | the Rand Corp. Six (Hood, Jones, Sigler, Smith, Welch, | | Wriston) either belong to or visit the all-male Bohemian | | Club, which owns the California retreat where a naked George | | Shultz might be seen pissing on a tree next to an equally | | naked Harold Brown. | | | | ------------- * ------------- | | | | OUTSIDE (not GE employees) | | H. BREWSTER ATWATER, Jr. Chair and CEO, General Mills. | | Other boards/memberships: Norwest, Sun Co. | | RICHARD T. BAKER. Consultant to Ernst & Whinney | | (accountants). High-profile Clevelandite. Other | | boards/memberships: International Paper, Louisiana Land & | | Exploration, Pacific Construction. | | CHARLES D. DICKEY. Retired Chair and director, Scott Paper. | | Other boards/memberships: J.P. Morgan/Morgan Guaranty | | Trust. | | LAWRENCE E. FOURAKER. Business educator and fellow, Kennedy | | School of Government, Harvard. Other boards/memberships: | | Citicorp, Gilette, R.H. Macy, The New England, Texas | | Eastern; Museum of Fine Arts, Boston. | | HENRY H. HENLEY, Jr. Retired chair and CEO, director, | | Cluett, Peabody & Co. Other boards/memberships: Bristol- | | Meyers, Manufacturers Hanover, Home Life, Olin, West Point- | | Pepperell. | | HENRY L. HILLMAN. Chair, Hillman Company ("diversified | | operations and investments"). Other boards/memberships: | | Chemical Bank, Cummins Engine, PNC Financial; Business | | Council. | | GEN. DAVID C. JONES (Ret.). Retired Air Force general and | | former chair, Joint Chiefs of Staff. Criticized the | | Carter/Brown military budget as inadequate; strident | | promoter of the Soviet Threat. Other boards/memberships: | | U.S. Air, USX. | | ROBERT E. MERCER. Chair, Goodyear Tire & Rubber. Other | | boards/memberships: CPC Intl., Manufacturers Hanover. | | GERTRUDE G. MICHELSON. Senior vice president, External | | Affairs, R.H. Macy & Co. Other boards/memberships: Chubb, | | Goodyear, Harper & Row, Irving Trust, Quaker Oats, Stanley | | Works; Columbia University, Federal Reserve Bank of New | | York; Markle Foundation, Helena Rubenstein Foundation, Rand | | Corp. | | BARBARA SCOTT PREISKEL. Attorney, New York. Other boards/ | | memberships: R.H. Macy & Co., Massachusetts Mutual, | | Textron, "Washington Post;" American Women's Economic | | Development, Ford Foundation, New York City Board of Ethics, | | Yale Univ. | | LEWIS T. PRESTON. Chair, J.P. Morgan & Co./Morgan Guaranty | | Trust. Other boards/memberships: Business Roundtable, | | Council on Foreign Relations, Federal Reserve Bank of New | | York. | | FRANK H.T. RHODES. Geologist and President, Cornell Univ. | | Other boards/memberships: Carnegie Foundation for the | | Advancement of Teaching, Committee for Economic Development, | | Gannett Foundation, Mellon Foundation, Memorial-Sloan | | Kettering Cancer Center. | | ANDREW C. SIGLER. Chair and CEO, Champion International | | (paper and forest products). Other boards/memberships: | | AMF, Bristol-Meyers, Chemical Bank; Business Roundtable. | | WILLIAM FRENCH SMITH. Former Attorney General and partner, | | Gibson, Dunn & Crutcher. Former lawyer to Ronald Reagan. | | Other boards/memberships: American International Group, | | Fisher Scientific, H.F. Ahmanson, Earle M. Jorgenson Cos., | | Pacific Lighting, Pacific Telephone, Weintraub | | Entertainment; Center for Strategic and International | | Studies (Georgetown), Kennedy School of Government | | (Harvard), National Symphony, Ronald Reagan Presidential | | Library, University of California. | | WALTER B. WRISTON. Retired chair and director, Citibank. | | Former economic adviser to Ronald Reagan. Other boards/ | | memberships: Bechtel, Chubb, J.C. Penney, Pan Am, Pfizer, | | Reuters, Tandem; American Enterprise Institute, Council on | | Foreign Relations, Fletcher School (Tufts), Manhattan | | Institute, Rand Corp. | | | | INSIDE (GE employees) | | LAWRENCE A. BOSSIDY. Vice-chair and Executive Officer. | | EDWARD E. HOOD, Jr. Vicechair and Executive Officer. Other | | boards/memberships: Aerospace Industries Association, | | National Academy of Engineering. | | JOHN F. WELCH, Jr. Chair and CEO. Other boards/memberships: | | National Academy of Engineering; Business Roundtable, | | Council on Foreign Relations. | |--------------------------------------------------------------------| -ends-