roadcasting: FIRST IN TELEVISION CABLE RADIO SATELLITE J EXCLUSIVE: BROADCASTING'S 1991 PROFITS FOR THE BIG THREE / 4 CABLE BILL PASSES FIRST HOUSE HURDLE / J SATURDAY MORNING THIS FALL: ABC, CBS OUTLINE PLANS / Kitty Kelley. The perfect show to replace all those imperfect ones. z 1 a Available in hour or 1/2 hour formats. U m / IMìF;ñllF:li MCA7Y ,...o. #**************** 3-DIGIT 554 on"'"'"---nno »". ^' " APR92 3R162 253 BROOKLYN CENTE.MN 55430 As the political campaigns heat up, nobody keeps a keener eye out for you than CNN Newsource. For election coverage that soars above the rest, call (404) 827 -3603. CNN N 11 DAILY FEEDS GENERIC LIVE SHOTS FREE CUSTOMIZED TAGS WORLD NEWS NATIONAL NEWS WASHINGTON BUREAU SPORTS BUSINESS MEDICAL FEATURES VIDEO INSERTS FROM LIVE EVENTS USER -FRIENDLY RUNDOWNS WORLD -WIDE NEWSGATHERING CAPABILITIES OF CNN A SERVICE OF Ili Ilk 11. SM TELEVISION ©1992 Turner Broadcasting System, Inc. All Rights Reserved. S O U R C E Broadcastingo copq ERN, HDTV: TOO CLOSE FOR COMFORT? Commission's five -year `HDTV or bust' plan gets bad review from broadcasters; FCC also proposes 15 -year time period for total HDTV conversion, seeks comments on simulcasting proposals of 100% and 50% By Joe Flint casters for those first five years. totally convert to HDTV and turn in One irate group owner said the their current channels. Broadcasters blasted the FCC's FCC's action "puts enormous capital The cost of implementing an HDTV decision last week to give TV demand on the industry without new channel over several years has been stations only five years to revenue sources. They have taken estimated to be between $5 million broadcast in HDTV once the agency one giant step backward. If this is part and $12 million per station (see box, green lights a standard and makes of the FCC's attic -to- basement re- Page 14). the extra channels available. view, the first step was in the base- Reaction from the broadcasting in- With those goals expected to be ment." dustry ranged from skepticism to an- met next year, broadcasters would If the 1993 goal of establishing an ger. Julian Shepard, general counsel likely have to be on the air with HDTV standard or a final table of of the Association for Maximum Ser- HDTV by 1998. Initial eligibility for HDTV allotments (whichever comes vice Television, said "this is not a per- HDTV frequencies, the FCC again last) is met, the FCC proposed that said, will be limited to existing broad- broadcasters be allowed 15 years to Continues on page 14. BIG THREE'S '91 FINANCIAL RESULTS ADVERTISE A BAD YEAR Revenue %chg Profit % chg By Geoffrey Foisie 90 SIMICILS (WO) from 90 (000) from Radio Networks $149,000 4% $38,900 13% Radio Stations $169,200 -4% $34,700 -33% BROADCASTING'S annual revenue and profit breakdown for the TV Network $2,630,000 1% $120,000 -51% three largest broadcast groups Owned TV's $765,000 -5% $399,000 -10% reveals a generally dismal year: With Video Enterprises $616,500 10% $123,500 17% revenue of $10.5 billion and operating $4,329,700 1% -19% Total Broadcast $716,100 income from ongoing operations of $600 million, the big three had a com- bined operating margin of under 6 %, the worst it at least 20 years. Radio Networks $62,000 3% $500 -75% ABC became the number -one bill- Radio Stations $183,600 -3% $29,400 -16% ing TV network in 1991- surpassing TV Network $2,388,300 -7% ($439,300) NM NBC -and was the only network to Adjusted Ti' Network $2,388,300 ($153,300) NM show an operating profit. Owned TV's $401,100 -8% $140,100 -15% Once again the big three proved Total Broadcast $3,035,000 -7% ($271,300) NM good at holding down costs, with ^ r`L overall expenses up 3.8 %, barely above inflation. Much of the poor network profit re- TV Network $2,531,000 -5% ($50,000) NM sults can be attributed to losses on Adjusted TV Network $2,531,000 ($30,000) NM professional sports. CBS lost almost Owned TV's $555,000 -7% $219,000 -15% $90 million this year on its football and Cable $35,000 NM ($15,000) NM baseball telecasts; ABC $50 million in Total Broadcast $3,121,000 -4% $154,000 -56% Continues on page 16. 4 ipr 13 1992 Broadcasting ThiszWeek SIKES FLOATS is unlikely this year. TV DEREG TELCO -CABLE PLAYING FIELD 141 A new Rand study rec- OPTIONS ommends that telephone companies receive the By Harry A. Jesse!! same regulatory treat- ment as cable opera- tors if they enter the video FCC Chairman Alfred Sikes got delivery business. the ball rolling last week on tele- vision deregulation, circulating AD FUTURES / 44 among the other commissioners op- In the last of a series, tions- ranked from most to least de- ABC, CBS announce their Saturday morning slates, with BROADCASTING looks at 'Goof Troop' (ABC) among the new entrants (p. 24) regulatory-for relaxing TV's national the impact of promo- multiple ownership, local duopoly and tion plans, technology, HDTV FAST enables the digital one -to -a- market rules, according to channel capacity and transmission of infor- FCC sources. TRACK / 4 demographics on TV mation to FM receiv- Chief among the "most deregula- Broadcasters ers, has broadcasters advertising. are tory" options was the one to double balking at an FCC pondering a dilemma: the national multiple ownership cap requirement calling shou d they embrace the SPECIAL REPORT: for a five -year timeframe technology now, or NAB '92 / 48 from 12 to 24 stations, the sources for switching over to wait for a standard that said. FCC Chairman Alfred HDTV accommodates AM? It was unclear what would happen Sikes and NAB President Eddie Fritts take the to the coverage cap (25% of all TV KIDS' LICENSE LIMBO LINEUP / 24 / 37 long view on homes) under the option and the high- ABC will add three There was no clear in- broadcasting. er caps for minorities (14 stations and new shows to its Satur- dication at last week's 30 %). day morning sched- Senate Copyright NEWS DEPARTMENTS A duopoly option would permit a ule and CBS four. Re- hearing of where mem- Business 44 single VHF -UHF combination in mar- cent films will inspired bers eventually Cable 32 kets with a full complement of network three new entries: The stand on compulsory Radio 34 affiliates and a certain number of in- Addams Family (ABC), license repeal. Their Technology 44 Fievels American Tails uncertainty suggests that dependents, the sources said. Anoth- Television 24 (CBS) and Disney's further Senate action er option would permit co -owned sta- Top of Week The Little Mermaid (CBS). the 4 tions that are closer together by Washington 27 allowing some overlap of grade B CAB FARE / 32 FEATURE SECTIONS contours, while continuing to prohibit grade The day is close at Bicoastal 22 A overlap. hand when a local cable By the Numbers 68 The one -to -a- market rule, already system and a broad- Changing Hands 47 weakened by a liberal 1988 waiver cast station will combine Closed Circuit 18 policy, prohibits common ownership their sales efforts, Datebook 58 of television and radio in the same attendees at the Cable Editorials market. The three options: (1) repeal Advertising Bureau 82 Fates Fortunes the rule; AM conference were told. & 75 (2) permit -TV crossow- Fifth Estater 74 nership; (3) permit AM -FM -TV cros- HARD CHOICES For the Record 69 sownership. In Brief 80 FOR RADIO / 34 The options are more moderate NAB's Eddie Fritts on Monday Memo 79 than those that led to substantial re- The radio broadcast convention eve: long on the Ratings Week 30 laxation of the radio national and local data system, which long -term (p. 56) Special Report 48 ownership restrictions last month. The modest approach may be a response bounded m 1411 as Bnxu/, mime. the Se, . V aeann.,.I t>, Filth Estate Brnul, ovine./ c4. nnnnlu.e.l m Inb, /, /,.r acquired In I4hI fuh/n nm@' introduced i n u.,ve('oblr Inmrhr.c.I In 14s4 /rosi.. air/nu ^ ,..I r,gtsickid vaJemnA nl Rim! to the strong negative reaction to the Pohll.hmg ISedr1an.I1 H\. uvJ unJ.I n.el,.e Heu 1\ P.IInI urti.. new radio rules on Capitol Hill (See Incorporating The FifthEstate "I'F:LF%Itilll\ Broadcasting L7 Cable "Closed Circuit "). Bom.ha,u.,¢ ISSN 11007 202n, I(iSI N121;4'15' . puhll.heJ wgi.l, wnh one "Reaction the radio in _ to issue was Publishing Co nuh..nrylnmA4Je. all l..uaa Calmer, Fuhlnhnq('o..n175Park \, s '... ..,.. .,i, cnl Pohlnhmg ('SA. 275 \\a.lunglon Si . ]axron. NUS W I5n I1,41. Tarrcnee \I Slclknnati. l'IeIaew c nlcl ury.,.am;: ullLel.I-eud 1 Slhh). anticipation of the TV issue," NAB l'.,e.ulnv':,at President. John 1 Ham. Senior Vit Rt.ekm General \tanager. Nell Perlman. Sema, Ake Prv.ulenl Group Publisher. lern Seth. President Eddie Fritts said. "lt may be J Senior Ake IYe.IJcnl Publishing Operation... J Walsh. Semi \ice President Ilium... Thnnta. J Ikllanurn. Senror \lta President Rmtu.hon h Slanulacmnng. Ralph Rnupp. Ake President !finnan Ne.ourcv.. Seal Attale. \l.t l'rc.,Jenl Can.unlur Publishing a shot across the bow." SemJ.da.s postage paid n Sex York. NY. and additional mailing all,tts l'oNnuotr. please wild .uldre.s change. to H.,.elunrme. PI) Ho, 715. Brewster. NY I051N11715. 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