It's not a good business idea if it doesn't make money.
You pay too much for a bunch of stations with bad signals and terrible cable placement. Spend too much on equipment. Change your business plan every two years. Spend next to nothing on programming, promotion or selling. And target a group that no one buys (families isn't a advertiser group). What happens?
You go bust!
What's happening is what should happen. The market punishes the foolish. And Pax has always been a very dumb idea very poorly executed.
Re category...yes, PAX hits old people whether anyone wants to admit it or not. Madison Avenue wants to hit viewers that are making up their minds as to what toothpaste they want to use for the rest of their lives. Can you teach an old dog new tricks? Don't ask me...ask the folks on 5th Avenue. What about the family concept? Great idea but the advertisers disperportionately (?) reward a different demo. Is this fair? All is fair in love, war, and business. Did Bud have a good idea? Yes. Did it work? "Not according to Wall Street!"
7 shows about 1.0 Almost every show in prime time is close to that mark. It wasn't that way when they launched. F the digital access. Ratings are climing into UPN territory...that's good for us. If advertisers pick up on this, rev will increase.
While the ratings aren't at the .2 level on the launch, it is still difficult to sell a 1 with a 55+dead demo. You can sell a .5 cable universe on the History Channel because the advertiser knows what he/she is getting...an exclusive male demo. UPN can sell a 1 due to the young sex/drugs/R&R demo they court.
Also remember that it takes a long and steady sales process to sell the low numbers (you're selling trust and "we're gunna be around a long time"). The agency buyers are very sharp and don't like to see a turnstyle of station sales reps and an uncertainty of future ownership/programming...like they are seeing with PAX. If your buying job was on the line daily, would you make a 52 week buy commitment to PAX? Wouldn't you want to wait to see what the NBC rep had to offer? The word is on the street--Madison Avenue.
And that is why IMHO we won't see a jump in the stock until something other than ratings happen...like a movement with present management/control.