In 1982,
Metro-Goldwyn-Mayer Television was renamed
MGM/UA Television Distribution after the merger with
United Artists the previous year. In 1984, MGM/UA TV launched an ad hoc TV network,
MGM/UA Premiere Network, with movies. The MGM/UA Premiere Network along with
MCA TV's
Universal Pictures Debut Network came as a response to the weakened network television market for films in packages. To put things into perspective, virtually all movies in the early 1980s played on the cable television services before being made available for network showings. Thus, this resulted in the audience for many movies on network television diminishing dramatically. The service was expected to broadcast 24 movies in double-runs once a month for two years. These films had never previously been shown on network television. The package would be sold on a
barter basis over a two-year period, where MGM received 10½ minutes of advertising time within a two-hour movie telecast in
prime time, while its stations would retain 11½ minutes. After this particular run, the movies featured on the Premiere Network could be marketed to cable television for an exclusive six month long run. They would then go back to the stations for purchase on a cash basis. The plan was estimated to bring a total of
$72 million to the studio on the initial 24 films involved, whereas had those films had gone directly to syndication, the total revenue would have been no more than $30 million. Another $500,000 would have been added to the four or five million dollars the film might have generated in its first cable airing. Based on various assumptions, MGM/UA believed that they could gross $24 million in total from the Premiere Network run, $12 million from the pay TV window, and $1.2 million per title in the stage three syndication phase. According to MGM/UA television president Lawrence E. Gershman, the plan was born "out of necessity" to offset a disturbing drop in revenues. MGM/UA initially spent $1 million to promote the Premiere Network. In the past, the major networks turned some of MGM/UA's films down flat, while in other cases, they had offered fees that Gershman considered too low. Gershman added that the three networks were just not buying pictures in groups anymore, so they had to get revenue from somewhere else. ==Distribution and affiliation agreements==