NJ Losing Its Voice -- The Giveaway of NJN -- A Great Deal for WNET at No Cost or Risk to WNET!

by: cwadudley

Mon Jun 27, 2011 at 03:59:53 AM EDT

Discussion of Governor Christie's proposal to give New York's WNET control of NJN television has correctly focused on the deal's impact on broadcast coverage of New Jersey news, public affairs, culture and history.    But the agreement for WNET to operate NJN television also brings great benefits for WNET to the detriment of New Jersey taxpayers. Even though the State of New Jersey will retain ownership of NJN's television broadcast licenses, WNET's operating agreement with New Jersey gives WNET access to millions of new potential members and  donors plus use of  NJN's donor lists.  In return WNET pays absolutely nothing and isn't required to continue current programming or hire NJN staff.

Control of NJN Moves to NYC

As part of the takeover of NJN, WNET has created a New Jersey non-profit corporation called Public Media New Jersey (PMNJ) a majority of whose governing board must be residents of the State of New Jersey.  However, PMNJ is structured as a direct subsidiary of WLIW, the former Long Island station that was taken over by WNET in 2003;  that is, WLIW is the sole member of PMNJ.   WLIW is itself a direct subsidiary of WNET.  So the supposed New Jersey non-profit, PMNJ, is actually controlled by a Long Island corporation which in turn is controlled by a NYC corporation (WNET.)    The fact that the a majority of PMNJ's governing board must be New Jersey residents will have little practical impact.

In reality, WNET will control the budget, employees, officers and operations of PMNJ; and control the use of the taxpayer owned New Jersey television licenses.

New Jersey Will Pay New York Rates for WNET Services<

The operating agreement states that programming and services provided to PMNJ by WNET, WLIW and Steve Adubato's Caucus Education Corporation will be compensated at no less than commercially reasonable rates, meaning NYC rates for WNET and WLIW.

WNET Gets NJN's Member and Donor Lists

The operating agreement calls for NJN's donor, underwriting and membership lists to be turned over to WNET's subsidiary PMNJ for the "benefit of the stations and the production of the programming."    Programming support could and most like will mean fundraising using these lists for all services and programs, not just New Jersey programs, provided by WNET to PMNJ.   For instance, WNET would be able to use the NJN lists to raise money for its Live from Lincoln Center.

In short, WNET takes over NJN's fundraising contacts and gets to use them to WNET's benefit.

The Money Raised in New Jersey will Stay in New Jersey - NOT

The operating agreement also provides that only funds "contributed in response to on-air solicitations or fundraising drives on any one or more stations."

The vast majority of fundraising at NJN and other public television broadcasters is not  raised "on-air" but rather underwriting, grant applications and even most membership support comes through direct personal contact. letter, email or phone.  WNET can use all of these methods to raise money through use of NJN's lists, the money to be used to support WNET's operations.

At best, Governor Christies's and WNET's promise that money raised in New Jersey will stay in New Jersey is disingenuous.

WNET's Right to Terminate Its Takeover of NJN

Whenever revenue from all non-WNET sources for the operation of PMNJ falls below 75% of PMNJ's budget,  WNET can choose to terminate the operating agreement to run NJN.  Since WNET sets PMNJ's budget, this could be any time that WNET chooses.

What's Not in the Operating Agreement  -- Requirement for a NJ Studio;  Continuation of the NJN Nightly News,  Regular NJN  Programs, and NJN Documentaries; Requirement to Hire NJN Staff

None of these are required by the operating agreement.    Public television's long running hispanic program, NJN's Images/Imagenes need not be continued.   NJN's award winning staff don't have to hired even though the continuity of staff has been a key in every successful transition of a public broadcaster run by a government agency to a non-profit.  

WNET seeks to replace NJN's nightly news with a nightly program that will feature an anchor reading the news and conducting interviews with sharply fewer reports done by sharply fewer reporters with no support staff like camera people.  WNET's nightly news will simply be a program sharply lower in quality than the current NJN News.

For WNET, It's All for Free

For the use of NJN's assets, the operating agreement doesn't require WNET to pay one dollar.    

Surely the ability to fundraise with NJN's lists and viewers has considerable value to WNET.

This afternoon, the New Jersey Senate should reject this deal.   It makes no sense to give a New York group complete control of  New Jersey's station.