Company founder Robert Johnson wants to do more than entertain Black America, he wants BET to be "Black America's brand of choice." Since 1979, he has been cultivating a company that "eats black, thinks black, and sleeps black." Its employees certainly are: almost everyone - from administrative positions to managers - are black, as are almost all of the company's board members. All tolled, BET reaches more than 60 million homes, and more than 90% of all black households with cable. While broadcast networks have drawn fire for excluding minorities, BET has provided an outlet for black artists and executives alike. The company's success has not been limited to TV, either: BET.com is the most highly trafficked African-American site on the Internet.

History

A former lobbyist for the cable industry, Johnson founded BET in 1979 with seed money from cable mogul John Malone (head of the former TCI). Malone remains a significant minority owner, and a member of the board. Legend has it Johnson's business plan was copied (with permission) from another entrepreneur's proposal for a cable channel aimed at senior citizens. According to a 1989 interview with the Chicago Tribune, Johnson admits: "Wherever he had the world 'elderly,' I wrote in 'Black,' and it worked!" His other cable industry contacts helped him to locate even more investors - including HBO and Taft Broadcasting. Those contacts gave Johnson more than money, they gave him expert advice and access to the channel lineups of the two largest cable service providers in America: TCI and Time Warner.

Smashing debut

The BET television network debuted in 1980 with a weekly two-hour music video show. By 1991, BET offered programming 24 hours a day; and it had expanded from music videos to gospel programs, public affairs shows, and Black college sports. The company also began its publishing division, with the purchase of YSB (Young Sisters & Brothers), a teen magazine; and a majority stake in Emerge, known as "Black America's News Magazine." That same year, BET went public, becoming the first African-American-owned company to trade on the New York Stock exchange. Much of the money raised in the public offering was used to reduce the company's debt and to buy back stock held by Great American Broadcasting (which had acquired Taft Broadcasting in the interim).

Expand-the-brand

The money from the IPO also helped fund investments that Johnson hoped would expand and strengthen the BET brand. In 1993, the company launched BET Direct (a direct marketing division), BET International (to distribute its programming worldwide), and its Action Pay-Per-View service. The following year it formed BET Film Productions and BET Pictures. In 1995, Johnson bought back Time Warner's stake in the company for close to $60 million.

Ups and downs

In 1996, BET was forced to shut down the floundering YSB magazine, but it promptly launched into a variety of new business ventures. It launched new cable channels [BET on Jazz: The Cable Jazz Channel in 1996, and BET Movies, a 24-hour all black movie channel in 1997]; the magazine division, meanwhile, introduced a Sunday newspaper insert called "BET Weekend." In 1997 BET opened the first "BET Soundstage" restaurant and the upscale "BET on Jazz" restaurant in the Washington DC area. In 1998 it introduced the "BET Soundstage" nightclub at Disney World. The company has plans to open 20 more "Soundstage" restaurants in other cities across the nation.

More than just television

Through partnerships, BET has managed to branch out into even more areas. BET Design Studio, launched in 1997, produces a BET-branded clothing line with G-III Apparel Group Ltd. BET Financial Services offers a co-branded credit card with Chevy Chase Bank; and the company's Web site, MSBET, was created through a partnership with Microsoft. In 1999, BET partnered with Liberty Media, Microsoft, News Corp., and USA Networks to launch BET.com. In June 2000, a mere three months after its launching, BET.com was ranked the most highly trafficked African-American site on the Internet. Next on the agenda: a joint venture with Hilton Hotels for a $250 million Las Vegas casino/hotel and a deal with Bell Atlantic to market cell phones and beepers.

The road to a BET Empire

In July 1998, after nine years trading on the stock market, Robert Johnson and TCI (now AT&T Broadband & Internet Services) convinced the other shareholders to sell their stakes in the company for $63 per share (They had tried and failed to do so in 1997). The company had been unable to keep up with other cable companies and did not impress anyone on Wall Street. An entrepreneur through and through, Johnson eschewed the Wall Street road map to success in favor of a road that he hopes will lead to a BET Empire.

New territory

In January 1999 the company acquired Arabesque, a publisher of romance novels aimed at Black Americans. BET and minority-owned radio group owner Radio One Inc. later announced the creation of four talk and music stations aimed at Black Americans. In March 1999, in conjunction with Encore Media, BET began filming the first of ten original features based on Arabesque books. The first of the films aired the following fall. BET has also committed $100 million to produce a series of $3 million theatrical films. The company also bought Heart & Soul, a health, fitness, and beauty magazine for Black women published by Rodale Press.

Controversy

Despite BET's support among some African-American groups, others within the community have attacked the company's programming as irresponsible and unfair to viewers who would prefer more substantive or family-oriented offerings instead of risque stand-up comedy, misogynistic music videos, and infomercials. The new "Live from LA" talk show particulary alienated viewers and potential guests with its offensive skits. BET has also come under fire for its treatment of its comedians. In September 1999, a full-page ad in Variety magazine blasted BET for refusing to pay union wages to performers on the channel's "ComicView" series. The ad carried particular weight since it was signed by big-names Richard Pryor and Jay Leno, along with 100 other comics.

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