ABC  News President David Westin, who has served as the head of the Walt Disney Co.  (NYSE:DIS) for 13 years, is calling it a career at the end of the year.  Finding a replacement is not going to be a priority for the media and entertainment company.

Though Disney would never admit this publicly,  the company would prefer to be out of the news business as would the other network owners.   The risks are too great and the rewards too few.  According to the Project for Excellence in Journalism, ABC News’ revenue including “20/20”, “Nightline” and “This Week”  were $600 million for the year. The division likely generated a “small” operating profit, the non-profit organization says. NBC News (NYSE: GE), the top-rated network, earned $800 million in  broadcast revenues in 2009. perennial number 3 CBS News (NYSE:  CBS) earned $500 million.

Westin, who was the longest-serving broadcast news chief,  presiding over mammoth job cuts earlier this year.  He reportedly balked at additional job cuts demanded by his bosses.  It seems that he doesn’t want to be remembered as the man who destroyed the empire built by Roone Arledge.  Who can blame him?  His counterparts at NBC Steve Capus and CBS Sean McManus face the same pressures.

The days of the globe-trotting network correspondent  are coming to a close.  There have been layoffs at all the networks. More are probably likely as the economics of network news continue to deteorate. Ratings for all three network news broadcasts have fallen to an all-time low. Viewership at local network affiliates also is plunging.

ABC’s options are limited.  It can try to start a cable network but that would be difficult to pull off given the steep competition for advertisers and viewers from Fox News, CNN and MSNBC. The network would basically have to reinvent the wheel.  Getting a cable partner also is tough since CBS reportedly is trying to forge a relationship with CNN.   Exiting news entirely would be a disaster since Disney is supposedly operating ABC in the public interest.

Westin has made some inspired programming choices such as hiring Christiane Amanpour  from CNN to host “This Week.”  Diane Sawyer is doing a good job hosting “World News Tonight” and “Nightline” has done surprisingly well in the ratings since Ted Koppel’s departure.  Investigative reporter Brian Ross continues to do solid work.

The future, however, for ABC News is ugly.  Look for more schlock that’s cheap to produce such as the odious “What Would You Do?” program where people are set up in contrived situations to see how they would react.   The same holds true for CBS, which continues to post strong ratings for “60 Minutes” as the Katie Couric–lead “CBS Evening News” have continued to flounder.  Couric’s  contact expires at the end of 2011 and odds are against her staying at her present job.

For years, the broadcast networks have spoken of the need to reinvent themselves.  The time for talk is over.

–Jonathan Berr.  Berr owns a smalls stake in Disney.

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