9/10/2012

Airport TV war



(Reuters) - CNN is suffering from lower ratings and increased competition in the cable television market and will soon face a new challenge in an area it has dominated for two decades: airports.

Clear Channel Outdoor Holdings is unveiling "ClearVision,", a new TV product that will hang in airport gates and will display news, sports and other programs. It will compete with Time Warner Inc's CNN for viewers waiting for flights around the country.

Toby Sturek, Clear Channel's head of airports, said the company is in discussions with about 20 airports including some large ones where CNN has its TVs.

The first airport ClearVision will enter in November is Raleigh-Durham International in North Carolina, where CNN does not have a presence.

"The airports want something that's different and they want something where they can have a variety of content that they can provide the passengers," Sturek said.

CNN's screens can be seen in 49 of the busiest U.S. airports, including Chicago O'Hare and Dallas/Fort Worth. CNN reaches 248 million customers every year in airports.

Airport advertising is not as big a business as cable TV. However, it makes more than $10 million a year for CNN, according to a source familiar with the situation. Any setback will hurt the reach of CNN, which has lagged in the ratings behind News Corp's Fox News and Comcast Corp's MSNBC.

CNN is searching for a new president since its longtime chief Jim Walton will depart by the end of the year.

Clear Channel will initially roll out in mid-sized airports. To try to win over customers, ClearVision will offer shows ranging from comedies and live sports to CNBC's morning business updates.

Clear Channel will let travelers connect their mobile devices wirelessly to the TV sets starting in the first quarter of next year, so travelers can watch the airport programs on their own screens while they are waiting.

Additionally, travelers will be able to select from different channels.

"So, one traveler can watch news while a person sitting next to them can watch America's Got Talent," Sturek said.






 From Reuters (adapted)