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Fox vows to get on track
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December 7, 1999: 4:19 p.m. ET
Unhappy with network’s performance, Chernin places faith in broadcast team
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NEW YORK (CNNfn) - Fox Entertainment Group President Peter Chernin publicly criticized his television network’s recent efforts Tuesday, but said the organization’s turnaround was already underway.
Chernin, speaking at the PaineWebber Media Conference in New York, said the Fox Television Network relied too heavily on reality shows and rolled out too many new shows this fall, leading to the sub-par ratings that have drawn the scorn of critics.
However, Chernin said he believes Fox Entertainment President Doug Herzog and Fox Television Entertainment Group President Sandy Grushow will soon right the company, beginning with the introduction of a couple new shows this winter.
"Quite honestly, we’re not happy,” Chernin said. "We’re unhappy with the results to date and we think there are some problems with the network. But I think it’s important that we acknowledge the problems and address them. We intend to do something about this.”
Fox Entertainment Group fell short of analysts’ expectations during its most recent fiscal year in large part because of a weak performance by its broadcasting unit, which saw revenues fall 5 percent during the fourth quarter alone.
Things haven’t gotten much better during the network’s ongoing fall season. In addition to its low ratings, critics assailed the network for waiting until late October to premiere many of its more popular shows - a decision made because the network was broadcasting the World Series - and then unveiling few new shows that captured the public’s attention.
Chernin said the network would return its focus to developing new drama and sitcom series under the leadership of Herzog and Grushow. He gave no timetable for the network’s turnaround, but said it would begin with the premiere of a new series, ”Malcolm in the Middle” early next year.
"We’re already beginning to see some of Doug’s work in that show,” Chernin said. "But this is creative content. [The turnaround] could be longer, it could be shorter.”
In the meantime, Chernin said continued strength in Fox’s other business lines would fuel the company’s bottom line growth.
In particular, Chernin said Fox would continue to pursue lucrative syndication deals for its show. Several deals already signed for its shows won’t begin to show substantial revenue until the year 2001, he said.
But much of the growth will come from the company’s cable and Internet operations, including the multi-million deal Fox’s parent company, News Corp., signed Tuesday to take a minority stake in online health information company Healtheon/WebMD Corp. (HLTH), Chernin said.
Fox Entertainment shares climbed 1/2 Tuesday to close at 22-7/16, according to preliminary market results.
Healtheon/WebMD gained 15/16 to close at 46-7/16. 
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