Like Network TV up on Hindery Fox Family's Money Woes
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vuww.uroadc.astingcablo.com Count 'em o 11) With its 523.56 buy of AMFM, Clear Channel can deliver AT &T hangs like network TV up on Hindery Fox Family's money woes EPORT More originals in the cable mix www.americanradiohistory.com www.americanradiohistory.com AFTER MORE THAN 40 YEARS OF SUCCESS, WE'VE DECIDED TO BECOME A START UP. LLY GROUP A new name, a new took. Same dedication to innovation and quality that has produced Emmy -award winning products. Come visit us at: www. grassvalleygroup. corn Servers. Switchers. Modular. Routers. www.americanradiohistory.com BroadcastigiCable October www.broadcastingcable.com Volume 129 Number 42 OF THE WEEK / 8 AT&T g ets its waywa New FCC cable regulationsg mayY allow -A- .1 telco giant to own both MediaOne and its Time Warner Enter- tainment stakes. / 7 Who wants to be a castaway? In a cross between `Real World' and 'Gilligan's Island,' CBS game show to award AT&T $1 million to the `survivor' of 39 -day desert island series. / 16 hangs up Fox Family's money woes Fox Family Channel's rat- on Hindery ings snags are translating into a financial pinch for its parent Leo 1lindery company. with earnings falling short of expectations. 17 was angling to / get ousted from Sinclair hurls DTV gauntlet 13 station groups join call AT&T Broad- for giving stations choice of digital transmission standards. / 19 band -and For more late- breaking news, see "In Brief" keep all the on pages 108 -109 perks. / 8 BROADCASTING / 68 The peacocking of Pax NBC will have wide - 'em ranging impact on new partnership. / 68 Count Lessons from Littleton FBI praises coverage; broadcasters harder on themselves at RTNDA panel. / 74 Those wild kingdom cops Reality show about game wardens finds a niche in syndication. / 78 CABLE / 81 Opponents become equals $9.2 billion merger of Gemstar and TV Guide ends costly six -year lawsuit. / 81 With its S23.5B buy of AMFM, Allen broadens ambitious play for broad- Clear Channel can deliver band Head of Charter spends $1.65 billion to boost his like network TV stake in overbuilder RCN. / 82 Merged Clear Channel/AMFM blankets U.S. TECHNOLOGY 184 with hundreds of radio stations. 12 / 'Eco-Challenge' gets HD debut Discovery will give Sony HDCAM gear tough field test. / 84 SPECIAL REPORT / 24 Building a high -tech home Fisher, Seattle broad- More originals in caster, needs new facility as it expands TV holdings. / 86 the cable mix Maine public DTV vote due Referendum on $9.4 Original programming million bond issue for digital move set for Nov. 2. / 86 has become increasingly Mk, 'i #-l-,ItitTOMI important in establishing brand identities; cross - CBS plays for portal winner Network to onner media promotions hype cash prizes to draw visitors to its new Internet hub. / 88 the shows; and a list of 16 networks highlights Changing Hands 101 Fates & Fortunes 105 In Brief 108 the role original pro- Classifieds 92 Fifth Estater 104 Nielsen Ratings...80, 82 gramming plays. /24 Datebook 103 Get %%t/the Program 76 Station Break 79 Editorials 110 Hooked Up 83 Washington Watch ....20 4 BROADCASTING & CABLE OCTOBER 11, 1999 www.americanradiohistory.com Blind Date Dream Maker Dr. Joy Browne Show Family Feud Judge Mathis Leeza Martin Short Show National Enquirer Queen Latifah What's Better Than Beating Every Source: MSS, Explorer, 9/20 -26/99, W18 -49 & W25 -54, GAA% (where avail.) www.americanradiohistory.com W18 -49 611AVi W25-54 6 JUDGE JUDY 4.$ JUDGE JUDY THE OPRALA WINFREY SHOW 3.6 THE OPRAR WINFREY SNOW JERRY SPRINGER 2.6 JUDGE JOE BROWN DIVORCE COURT Z.5 DIVORCE COURT JUDGE JOE BROWN 2. JERRY SPRINGER THE ROSIE O'DONNELL SHOW 2.3 I THE ROSIE O'DONNELL SNOW MAURY 2.1 MAURY SALLY JESSY RAPHAEL 2.8 SALLY JESSY RAPHAEL RICKI LAKE 1.9 LIVE -REGIS a KATHIE LEE THE MONTEL JUDGE WILLIAMS SNOW 1.8 I MILLS LANE LIVE -REGIS a KATHIE LEE 1.6 j THE MONTEL WILLIAMS SHOW JUDGE MILLS LANE 1.6 RICKI LAKE THE JENNY JONES SHOW 1.5 PEOPLE'S COURT PEOPLE'S COURT 1.3 THE JENNY JONES SHOW DONNY a MARIE 1.0 DONNY a MARIE THE DR. JOY BROWNE SNOW 0.7 THE DR. JOY BROWNE SNOW LEEZA 0.7 LEEZA THE MARTIN SNORT SNOW 0.6 THE MARTIN SHORT SHOW THE ROSEANNE SHOW 0.3 THE ROSEANNE SHOW Source. NSS, Explorer, 9/13- 19/99, W18-49 A. W25 -54, GAA90 ( where ava www.americanradiohistory.com 2.5 1 2.4 J 2.5 1 2.8 2.1 1.9 1.8 1.6 www.americanradiohistory.com BroadcasfmgdCable TOP Of n WEEK AT&T getting its way New FCC cable rules may allow telco to own both Media One and its TWE stake By Bill McConnell the TWE sub- scribers should not qT &T may have to do a little count against the pruning to pull off its takeover of cap because AT&T MediaOne Group, but new cable will have no say in ownership rules approved by the FCC programming for last Friday mean the company probably those subscribers. won't be forced to sell key investments That would leave in Time Warner Entertainment or AT &T with just FCC's Kennard: 'We're trying to Cablevision. keep big cable in check when it 27% of all video The new rules give most cable oper- comes to their core. dominant subs. ators plenty of room to acquire more business, but give them room to The new rules systems. Instead of being limited to grow into new businesses.' also change the way owning systems serving 30% of cable the FCC calculates subscribers, the new rules let an opera- buying MediaOne will give AT &T an how investments in cable systems count tor serve 30% of all video subscribers, interest in 32.1 million subscribers, the toward the ownership cap, however. including satellite TV homes. That revamped rules may permit the acquis- Generally, any voting interest of 5% of effectively raises the cap to about tion, including MediaOne's 25.6% equity will remain attributable toward 36.7% of cable subscribers -that's stake in Time Warner Entertainment. the limit. But now, limited partnership around 24.6 million of the 67 million MediaOne serves 4.9 million sub- investments will not be attributed cable homes. scribers; TWE, 11.2 million. That would toward ownership if the investor can AT &T-the largest MSO-current- give AT &T 41% of all video homes, prove that it is not "materially involved ly serves 16.2 million cable homes, well over the cap. However, the new in the video -programming activities" of 24% of all cable homes. Even though rules allow AT &T to make the case that the partnership. Previously, investors were required to prove they were not taking part in any "media activities." Investors employed as officers at the Hearst Argyle inks DTV data deal cable company or holding board seats In one of the first major deals for DTV data applications, Hearst -Argyle may also be exempt from attribution if Television and Geocast Network Systems are teaming up to deliver broad- they receive a waiver from the FCC. cast multimedia content to PCs using Hearst -Argyle's DTV spectrum. "We are encouraged that the FCC The multimedia service, expected to launch in late 2000, will be deliv- will take into account a company's actu- ered within the DTV broadcast streams of Hearst -Argyle's DTV stations al participation in video programming and received by a $299 peripheral device with local disk storage that con- in making ownership decisions," said nects to a PC for display. The Geocast receiver can be customized to per- AT &T General Counsel James Cicconi sonalize the content to consumer preferences and can use a PC's exist- in a prepared statement. "As we have ing Internet connection as a backchannel. pointed out on several occasions, there According to Hearst -Argyle Chairman Bob Marbut, the Geocast service are cable systems in which our minority may include segments from local Hearst -Argyle station newscasts, finan- interest clearly does not give us a mate- cial information, weather and traffic updates, or Hearst newspaper con- rial role in video programming" tent. Marbut also wants to pursue e- commerce. This is a national platform Asked if he sees any bad news, with good target demographics that gives people a personalized version AT &T Chairman Michael Armstrong of what they want," Marbut says. "That ought to be a rich environment for said, "You've always got to read the certain types of advertising" The Geocast service will be promoted on fine print, but not that we've found yet." Hearst's NTSC stations. He does, however, object that the cap Hearst -Argyle is investing up to $10 million in Geocast, and Marbut will remains as low as 30% of video subs. gain a seat on the Geocast board, which already includes Hearst heir Chairman William Kennard said last William Randolph Hearst III, one of Geocast's initial backers as a partner week's changes are necessary to pro- in the venture capital firm Kleiner Perkins Caufield & Byers. Other Geocast vide cable companies and other investors include Institutional Venture Partners and the Mayfield Fund. telecommunications companies suffi- Geocast CEO Joe Horowitz says his company will pursue other deals cient breathing room to combine and with broadcast groups before launching the service next year. bring new local telephone and broad- -Glen Dickson and Richard Tedesco band services to consumers. "We're trying to keep big cable in 8 BROADCASTING & CABLE / OCTOBER 11, 1999 www.americanradiohistory.com TOP OF THE WEEK check when it comes to their core, dom- man.