Electronic Media Published: 07-18-94 HERE'S THE LOWDOWN ON HOW TO SHARE FACILITIES Byline: By Joe Fedele Cutting a TV station's operating and maintenance costs is never an easy thing to do. To me, the words ``cost cutting'' symbolize a new adventure in pain because they usually refer to doing without something you have or losing something you need. However, the traditional approach toward cutting to reduce overhead isn't always the only way to economize. Some broadcasters recently have found that they can achieve substantial levels of cost reduction by combining portions of their facilities with that of their competitors. That's right, their competitors. And this is how it works. Let's assume that two TV stations merge their technical operations into one big facility. A shared facility could include tape and commercial playback facilities, libraries, master and microwave control areas, production rooms, studios, etc. The list goes on and on. Next, two maintenance staffs can be combined into one. One large maintenance staff can do more work in a common facility than two staffs of equal size in separate shops. That's because in a shared facility there's less equipment to maintain. You can look at any one of the areas I mentioned and find ways of getting double the use with only a slightly higher operating cost than you currently spend in a single station operation. But first you have to spend some bucks on the right design and the proper equipment for the task at hand. Dual facilities must be carefully designed for that specific purpose. And station automation is a key element in combined operations. Master control and commercial playback areas, for instance, can control two or more outputs through the use of computer automation. Cable headends have used such systems for years to play back their programing over multiple channels. Proper studio design can allow you to produce two news shows simultaneously in a single studio with two control rooms. Imagine installing soundproofing between news sets that sit back-to-back. Now you have two newscasts at the same time using one lighting grid, air conditioning system, etc. It may sound funny but the fact is that it can work and has been done. In a common facility the savings begin the first day because you instantly have economies of scale working for you. Substantial savings can be realized in group purchases of everything from capital equipment to videotape stock. The dual facility concept works well on paper but it can only work if there is a high level of cooperation and compromise between the partners. And there must be a commitment from both parties in order for it to work properly. Studios and control rooms can be time-shared by offsetting your news shows. This simple procedure can virtually double the number of newscasts or other studio productions each day by using only one studio and control room instead of two. But it requires managers at each station to agree on programing decisions. Making it work from a people standpoint is really the hardest part. It's our nature to be competitive. Making programing and news decisions with your supposed adversary is not always easy. OK, so let's say you have no interest in combining your station with someone else on the dial. TV stations can also consider merging some facilities with cable TV operators and production houses. The fact remains that flexible, intelligent businesspeople can make it work if they do it right. And doing it right usually means bringing in the right people or a good consultant with comparable experience in such matters to guide you through the process.