Paxson Names Veteran TV Exec Sagansky CEO

Veteran television executive Jeff Sagansky, most recently co-president of Sony Pictures Entertainment, was named chief executive of Paxson Communications Corp. on Thursday, just four months before the Florida company is due to use its station group to launch a new TV network for family and inspirational entertainment.

In another move that helps build credibility for his fledgling network, Paxson Chairman Lowell “Bud” Paxson said Thursday that the family of former Treasury Secretary William Simon has invested $10 million in his company and that Simon’s son, William Simon Jr., will become vice chairman.

Sagansky brings a pedigreed background. The 46-year-old executive is the former president of CBS Entertainment, where he took the network from third to first in household ratings and, ironically, developed several of the programs that Paxson plans to use. After failing to link up with a Hollywood studio as a partner, Paxson snapped up rights to the reruns of such popular shows as “Dr. Quinn, Medicine Woman” and “Touched by an Angel,” which Sagansky put on CBS’ prime-time schedule.

“This is a little off the beaten path, but I wanted either to go with a start-up or start a company myself,” said Sagansky, who met Paxson last year when the entrepreneur approached Sony as a potential partner. Sagansky, who left Sony in October when Tokyo exerted greater control over the international television operation he oversaw, says he realized the potential of Paxson’s concept after he began consulting for the company in April.

“We’ll be profitable even if we get a 1 rating,” said Sagansky, explaining that Paxson has lower costs than broadcast networks and can thrive on cable-like ratings. “But unlike cable, we are starting with the distribution it took ESPN and TNT 20 years to build.” He said “Touched by an Angel” repeats better than most shows on television. Sagansky plans to move his family from New York to West Palm Beach, Fla., where Paxson is headquartered.

Though Paxson has proved himself as a visionary, having founded Home Shopping Network and making a huge profit on the sale of his radio group, many analysts are skeptical that his new concept will draw mass audiences.

Most syndicators have demanded bigger down payments from Paxson than usual as a hedge against potential failure, worried in part by the unfavorable channel positions of his stations and the high prices he has paid for signature shows.

For instance, he paid CBS’ Eyemark Entertainment close to $1 million an episode for “Touched by an Angel.” By comparison, reruns of the more popular “X-Files” fetched $600,000 an episode. Paxson over the last two years has put together a group of 78 TV stations that, through cable and broadcast coverage, reach roughly 70% of the nation’s TV households.