ReelzChannel cancels 'Dailies,' lays off 40 in L.A.

ReelzChannel, the cable and Web network launched two years ago to feed the seemingly insatiable appetite of movie aficionados, has canceled its flagship show, "Dailies," and laid off more than 40 people in its Los Angeles studios this week in another sign of the troubling times in media.

The Minnesota operation, owned by Hubbard Media, still employs about 125 people in Los Angeles, where the company is nearly three years into a five-year lease for space at the sprawling Los Angeles Center Studios just west of the 110 Freeway in downtown.

Reelz has been hurt by the company's business plan. Unlike a lot of cable channels, Reelz made a strategic decision to depend solely on advertising, and not cable TV subscriber fees, for revenues. The strategy was adopted to encourage cable operators to carry the channel. But the economic downturn is severely crimping advertising spending, leading to an economic crunch at the channel.

Gary Thorne, ReelzChannel's president and chief operating officer, said that instead of producing the half-hour program, "Dailies," the network would provide its entertainment news in shorter segments throughout the day.  He said the company remained "fully engaged" in its cable channel and online operation.

"We took this occasion to look at everything that we are doing to find efficiencies and make some adjustments," Thorne said.  "We don't have a crystal ball, but as we look going into 2009, it doesn't look too good."

-- Meg James

Comments

[Not Mike Richards]

Well done, Gary, Terry and Crew - you took a fabulous idea and turned it into a steaming pile in less than three years, bravo! Rod, Patty, and Ian have far to much class to laugh at your consistent missteps, and instead are crying a tear at your hubris and complete and utter inability to see your good ole Midwestern sensibilities and local news mentality doesn't work on the big stage.

[Mike Richards]

Sure. Rod, Ian and Patty were each a disaster in their own way and are still basically on the street.

[Engineer]

I give the people who still work there less than a year.

Maybe promoting Executive Producers from PA with all of 2 years experience had something to do with this mess. Or maybe hiring someone you met at a bar last night was also not a good idea.

The good thing is that they kept all the people VP or above. 'Cause when you fired that PA who made 20k a year, yeah, thats what's going to save the company.

I think the guys in Minnesota had NO idea what their LA managers were doing.

[disappointed with the channel]

I've tried watching this channel a few times and couldn't get through a single show. This is the blandest channel I've ever seen with the blandest coverage of movies. It is sooooooooo boring. All of the shows seem like they are just shills for the studios. Have you seen the movies they recommend? Norbit and Good Luck Chuck. Seriously, do you guys know anything about movies. It's not wonder you are going off the air. It's shocking you ever made it on in the first place. Guess they'll let any moron with a little money buy a channel these days.

[Amateur Hour]

Can't believe they canceled "Mike Richards' Hollywood Reach-Around." LOL.

[Bubba]

Bob calling Jared "Honey" more then once may explain why he is their anchor.