TO the Broadcasters Look for Way to Bring Antennas Indoors
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August 2,1999 tCahners. $4.95 rolicistrogiCab e www.broadcastingcable.com With DTV getting poor reception, TO THE broadcasters look for way to bring antennas indoors -,. +... ... _....... FCC set tó OK , .11m1W Y TV duopolies _ Charter plans mega -IPO 1111111111111 I11I1111111III111111111II1'11I1I111I111 AUGOO Sinclair sheds OHN8ON RTON WAY radio stations . MT 591 O,c-7755 www.americanradiohistory.com 0 MPH TH OVER 50 MIL WE'RE ALMOST EVER www.americanradiohistory.com -. MSNBC celebrates the success of reaching over 5o million homes with commitments for 66 million by the end of 2002. Thanks Affiliates! msnbc.com On Cable. Online. www.americanradiohistory.com BroadcasligiCable August 21999 www.hroadcastingcable.com Volume 129 Number 32 TOP OF THE WEEK / 6 Allowing two TVs to a market? FCC proposal for NBC Entertainment President Garth Antier (I) and permitting duopolies, preserving LMAs headed for vote. / 6 NBC West Coast President Scott Sassa. Sinclair turns off radio Entercom wins bulk of stations with offer of nearly $822 million in a `win -win' scenario. / 12 Latinos set network boycott Groups plan to tune -out on Sept. 12 to protest the lack of Latino characters on TV. / 16 Wrangle over ENG reimbursement FCC is consider- ing covering only equipment depreciation in plan to take back spectrum. / 19 CPB opposes donor list swap Hopes to avert legisla- tion, seeks guarantees from brokers that no political groups get names from public stations. /19 Sassa seeks role models NBC's Hol- For more late-breaking news, see lywood chief says minority characters should "In Brief" on pages 68-69 have positive impact. / 10 XM's high hopes for ¡PO Satellite radio company hopes to raise $150 million for 100 -channel service in 2001. / 43 CABLE / 48 OpenNet courts grassroots ISP group hopes consumers will help them win access to high -speed cable pipes. / 46 AT &T retires TCI name Hindery says cable op is better than new brand. / 48 Health as an Internet play MSO sees e- commerce opportunities as an Internet play. / 49 Cox wins Gannett auction Discovery Cox's shopping spree appears over... Health Channel for the moment. / 49 TECHNOLOGY / 50 Broadcasters worry that the need for outdoor antennas NY Times' one -stop shop TV group offers to pro- will limit DTV reach and threaten a potentially lucrative vide master -control services at its Virginia operations business -broadcasting to computers. /22 cen- ter to other stations. / 50 BROADCASTING 141 AOL bolsters broadband bid GTE pact latest in Moonves says CBS is diverse sequence to advance faster Net access. / 52 Accepts NAACP's general criticism, but is quick to defend his network's efforts to Changing Hands 63 Editorials 70 In Brief 68 make programming more 41 diverse. / Classifieds 53 Fates & Fortunes 66 Nielsen Ratings 45.48 Doors open at ABC Network says it's Closed Circuit 16 Fifth Estater 65 Station Break 44 Moonves interested in shows from rival studios. / 41 Datebook 62 Get w /the Program 42 Washington Watch 20 4 BROADCASTING 8 CABLE / AUGUST 2, 1999 www.americanradiohistory.com The that took from the Gulf Stream to the mainstream. r v --i.J- EXPLORE YOUR WORLD° Shark Week, the first ever programming theme week in cable, has come a long way since we launched it 12 summers DIS overv. ago. This year's event features th9 first live broadcast CHANNEL in Shark Week's history Watch "LIVE from a Shark Cage" Sunday, August 8, 9pm et & 6pm pt discovery . c o m www.americanradiohistory.com BroadcasfmgaCable TOP 0. ilia WEEK Two TVs to a market? FCC proposal for permitting duopolies, preserving LMAs headed for Aug. 5 vote By Bill McConnell The FCC this week is expected to Easing up relax its local broadcast owner- Highlights of the proposed ownership rules ship restrictions, but also will try to keep a lid on industry consolidation Duopolies -A company may own two TV stations in one market, if one is by confining the changes to markets financially troubled or if it is not among the market's four top -rated stations with plenty of competition. and the market has at least eight other separately owned TV stations. A Privately, most broadcasters are company may own single stations in adjacent markets -say, Baltimore thrilled with the plan, especially when and Washington -even though the stations' signals overlap. compared to the much more restrictive one FCC Chairman William Kennard Local marketing agreements- Existing agreements under which one sta- floated last fall. But, publicly, in tion operates another in the same market will be grandfathered for five advance of the vote, they are guarded. years. After five years, LMAs not meeting the new duopoly criteria (above) "We're pleased to see the item on the will be forced to prove they benefit the public interest. agenda," was National Association of Broadcasters President Eddie Fritts' Radio/TV crossownership- A company with only comment. one or two TVs may own to radio Public interest advocates, however, up six are outspoken, warning that the stations in a market, if the market has at least 20 other changes would only tighten the grip of separately owned TV corporate owners on the broadcast and industry. radio stations. Any company Although the five commissioners that now exceeds the new cap under an FCC waiver continued to debate details of the plan Friday (July 30), the major points may keep all the stations. appeared to have been agreed upon. Attrihutin For purposes of Still, the scheduled Aug. 5 vote is not the ownership rules, owner- guaranteed, because any one commis- ship is defined as an active sioner could yank the plan from the investment of 10% or a pas- agenda if there are last -minute snags. sive investment of 20 %. One of the biggest changes would (The existing levels are 5% allow one owner to control two TV sta- and 10 %, respectively.) tions in a market if one of the stations were financially troubled. Duopolies would also be permitted if the second miffed to hold six radio stations and up to lished after 1996-the year the FCC station were not among the four top - two TV outlets if the duopoly conditions began its latest local ownership rule - rated stations in the market and at least were also met. Current waiver policy making and Congress ordered the FCC eight unaffiliated TV stations remained allows a TV station to own up to eight to review all its ownership rules. in the market after the acquisition. stations under some conditions and own- Kennard is expected to have the Existing local marketing agree- ers with eight outlets would be allowed to three votes needed (including Republi- ments, which have allowed owners to keep all their holdings. cans Michael Powell and Harold circumvent the ban on duopolies, will Commission Democrats are said to be Furchtgott -Roth) to get the changes be grandfathered, but no new ones will pushing hard for tougher standards for approved, but with key details in flux, be permitted. The roughly 80 in- market permitting duopolies and crossowner- there is no guarantee that his fellow TV LMAs will be allowed to continue ship and for grandfathering LMAs. For Democrats will support the final plan. unhampered for at least five years, after instance, sources said they want 10 Some observers question whether Ken- which their owners must meet the unaffiliated TV stations to remain in any nard wants to be put in the awkward duopoly criteria and show that they market where a duopoly is permitted position of being the only Democrat to serve the public interest. and would like to bump the number of support a largely deregulatory meas- Another key change would permit remaining broadcast voices to greater ure. If Democrats Susan Ness and Glo- radio/TV crossownership if 20 unaffiliat- than 20 when permitting radio /TV ria Tristan oppose the package, some ed full-power broadcast outlets remained crossownership. They are also said to predict Kennard will pull the issue in the market. One owner would be per - want LMAs divested if they were estab- from the Aug. 5 agenda. G BROADCASTING & CABLE / AUGUST 2, 1Bee www.americanradiohistory.com TOP OF THE WEEK The Clinton administration and Capitol Hill have been strangely silent on the proposed changes. Officially, Minority initiatives advance the National Telecommunications and Efforts to help minorities, women and small business owners enter broad- Information Administration, which casting and other parts of the telecommunications industry are heatinç up represents the White House on commu- on Capitol Hill just as the FCC is set to loosen broadcast ownership nications policy, has not backed away rules -a move many fear could further tighten big corporations' control of from its February recommendation that the airwaves. duopolies and LMAs be prohibited. Last week, Senators John McCain (R- Ariz.) and Conrad Burns (R- Nevertheless, NTIA has said it is not Mont.) said they plan to introduce a bill in September that would defer cap- planning to weigh in on the latest pro- ital gains taxes for owners who sell their telecommunications business to posal. Capitol Hill Republicans, who "historically disadvantaged individuals." The bill also would give tax breaks excoriated Kennard for pushing a more to any seller who invests tie proceeds of such a sale in a telecommuni- restrictive plan last fall, have apparent- cations business owned by a minority or "under- represented" interest ly decided not to rock the boat. Sen. To ensure that big companies do not take advantage of the new tax-cer - Ernest Hollings (D- S.C.), long an tificate program, McCain and Burns would restrict buyers to those wih a opponent of LMAs, two weeks ago limited amount of assets aid would forbid quick turnover of the property.