Goodbye, Weather Channel

Implications: Some of you may remember how you felt in the 1990s when Johnny Carson's last few shows were being aired.  I feel the same way with The Weather Channel. Competition for TWC has been pent up for years; having it owned by one of the four major TV networks is bound to unleash competition that it will be unable to compete with.

Analysis: I worked for Landmark Communications during the inception of TWC, through its rough early years, and through its fantastic success.  I came to learn that its biggest value was a) its relative exclusivity on cable and b) its respected brand.  I also came to learn that there was no other value except its cash flow, which was generally OK.  If a network such as NBC buys TWC, which I think is likely, it will unleash a level of competition that will make TWC one of those "remember when" channels. Competition is already pent up: Local broadcasters need to monetize their re-trans channels, and some are turing to 24-hour local weather (unfortunately, today's lifestyle makes us think that waiting 8 minutes for local weather is unacceptably long).  The only growth area for TWC right now is local broadcaster partnerships on these re-trans deals. With ownership by one of the networks, that opportunity pretty much disappears. I think TWC survives, but I think a network buyer will find that it has, by association, added a lot of extra weight to a business that needs to continue sprinting to survive.