As Weather Channel Retreats, Online Strength Important

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By Douglas A. McIntyre Published
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The Weather Channel has finally returned to DirecTV (NASDAQ: DTV). It does so with a measure of humiliation. The channel’s management was forced to apologize for the “disruption of its service.” The Weather Channel is lucky that it is such a powerhouse online.

According to comScore data, among desktop Internet users in February, The Weather Company sites had 68.7 million unique visitors. That puts it slightly behind Turner Digital, which posted 68.9 million in February, and ahead of CBS Corp. (NYSE: CBS) at 65.3 and Apple Inc. (NASDAQ: AAPL) at 63.8 million. By means of comparison, the smallest of the three Internet portals, AOL Inc. (NYSE: AOL), had an audience of 109.6 million in February.

The size of The Weather Channel’s online viewership allows it to reach a huge audience that cannot be blocked by satellite TV and cable providers, which have battled the company over fee payments for its programming. These disputes are likely to cut The Weather Channel’s revenue from TV providers over time. Online ad sales may be the only area of substantial growth for the firm. Last year, the channel announced that non-TV sources had moved to close to half of the company’s sales. It also reported that its apps had reached 100 million downloads, giving it an audience on portable devices as well as PCs

In its move back onto DirecTV, The Weather Channel took a hit on its programming plans:

As part of the new pact, The Weather Channel agreed to reduce reality programming by half on weekdays; return instant local weather and allow authenticated DIRECTV customers to watch The Weather Channel video programming on multiple devices inside and outside the home.

And its public admission about the dispute was terrible public relations for the company:

“Our apologies to DIRECTV and their customers for the disruption of our service and for initiating a public campaign,” said David Kenny, CEO of The Weather Company, parent to The Weather Channel. “Our viewers deserve better than a public dispute, and we pledge to reward their loyalty with exceptional programming and more weather-focused news.”

As it retreats from its traditional sales market, like so many old media companies, its only chance at a successful future is online.

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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