THE NEWSWEEKLY OF TV, RADIO & INTERACTIVE MEDIA $4.95 1 i i MAY 20, 2002 www.broadcastingcat; .com ADELPHIA'S RIGAS nting, rations' UPFRONT his sor 2 O O 2 Broadcast networks spawn fall schedules, renew battle for prime e USA time dominance » PAGE 16 rzog ce to the twork uiyïvaI EPS ITS COOL of: the. Even stations with no fittest excuse for missing the digital deadline get a pass from commission u PAGE 8 SPECIAL REPORT TAPELESS WORLD B &C's survey of video servers finds networking, scalability are must -haves PAGE 38 Dinotopia will re- emerge as an ABC series this fall. ':..ONE OF TV'S BIGGEST GUT -BUSTERS EVER.. :' ENTERTAINMENT WEEKLY Gongratfflatons on 100 Episodes! DOMESTIC TELEVISION CBS' Mond. Night Hit! ctdtv. com ilk_ 'lbw BROADCASTINGCABLE {www.broadcastingcable.com} Volume 132 Number 21 Top of the Week May 20, 2002 DARKENING CLOUDS Crisis at Adelphia deepens with criminal probe of Rigas family's insider dealings. » 5 BREATHING ROOM Even without a good excuse, stations can get six extra months for DTV conversion. » 8 NBC's Jeff Zucker said his PUT -UP TIME After 14 months as hardest president of USA Network, Doug Herzog decision for launches his first programming slate. » to new lineup was moving Scrubs CABLE CHIEFS VH1 gets new top to Thursday. programmer; Discovery and fledgling diginet Trio find new presidents. » 12 COVER STORY Correspondent David Martin received the TOUGH NEWS CALL CBS takes heat videotape showing Daniel Pearl's death from for airing videotape of Daniel Pearl killing a Saudi journalist who had downloaded it off in story on anti -U.S. propaganda. » 15 UPFRONT 2002 the Internet. Fall lineups No. 1 in most categories, NBC stays its course; USA Network is the other broadcast networks looking to make aggressive schedule alterations. » 16 consolidate the ABC 21 adult 18 -49 CBS 22 demographic next season Fox 24 with new shows NBC 25 like supernatural Pax 26 thriller Dead Zone, which is UPN 27 slated for June The WB 28 16 debut on the Spanish- language nets 29 cable net. SPECIAL REPORT VIDEO SERVERS A common tool Once used primarily for News on wheels Portable production unit Programming nonlinear editing, video servers are a backbone links Tribune's Los Angeles Times Washington Syndication Watch NAIPE will convene in for a growing number of stations. » 38 bureau and KTLA(TV). » 34 2004, just not in New Orleans. » 31 Triple play SkyStream router makes it easier Station Break Univision affiliate WUNI(TV) for cable ops and telcom companies to offer is second Boston -area station to sign up for video, voice, Internet via broadband. » 35 Nielsen's new Local People Meters. » 32 B &C Eye 4 Inching toward approval Broadcasters may focus Consolidation is one way to survive in Broadcast Ratings 30 soon get to use digital microwave STL without the Chico- Redding, Calif., market. » 33 Changing Hands 37 special authority or waiver. » 36 Classifieds 51 Technology Archives in hi -def National Geographic Editorials 54 prepares to transfer 500+ hours of film to Fates & Fortunes 48 Kick -start Enhanced TV gets first major HD D5 format. » 36 Fifth Estater 50 tryout, by Korean networks and manufacturers The Week That Was 14 during World Cup soccer coverage. » 34 Broadcasting & Cable/ 5-20-02 3J HEYE MERCHANDISING Buys of our lives You're watching Days of Our Lives one afternoon, and you say to yourself, "That Phillip is certainly a hunk, and his computer is kinda sexy, too. I wish I had one just like it." Well, now you can. CABLE Starting this summer, fans of NBC's Days and Passions can pur- Moving,day? chase computers, apparel, jewelry and other products through Broadcasters are supposed to Maxim ShopNBC, the home -shopping network 40% owned by NBC and start relocating on the 2 GHz parent GE. band in September, and it looks Exposure The products will be written into the soaps, then, starting in mid like they may have to pay their Vivendi Universal July, sold every other Saturday afternoon on ShopNBC's Soap Style. own moving costs. Entertainment is angling for a The show will feature interviews with soap stars, behind- the-scenes The NAB and the Association few good networks (B &C Eye, footage, bloopers, previews, trivia and contests. for Maximum Service Television May 6), but so far, it's mostly Wait! There's more! Viewers will also be able to purchase the have lobbied the FCC to get com- talk. The latest talk is that VUE pensation for the costs of the (which now incorporates USA items at ShopNBC.com and NBC.com.-H.A.J. Cable) has considered partner- relocation on the 2 GHz band, macho Maxim ing with hloe, from currently used for electronic magazine on a men's channel. ays of Our newsgathering, to make room for VUE officials would say only, ives, wants new occupants: mobile satellite "We're considering a number of o have services (MSS). Broadcasters ideas for new services. " -A.R. hillip's omputer in wanted those companies to pay he worst ay. for the move. Unfortunately, DIGITAL TICKER most MSSers can't afford it. In a COMPILED BY DECISIONMARK letter sent to the FCC, the NAB Newest digital stations: says only two stations have con- ducted negotiations with MSS KBLR -DT Paradise, Nev. (Tel) providers. Broadcasters have had KCFG -DT Flagstaff, Ariz. (Al) a two -year window to cut deals; KLRT-DT Little Rock, Ark. (Fox) that closes in September, and KOBF -DT Farmington, N.M. (NBC) then the FCC is due to force KTLN -DT Novato, Calif. (Ind.) broadcasters to move. -P.A. KTSF-DT San Francisco (Ind.) KTVB-DT Boise, Idaho (NBC) Fla. inaction -DT (Ind.) Auction WHDT Stuart. The may be too hot for the FCC. The corn - WITZ -DT Milwaukee, Wis. (Fox) spectrum wars getting GOING, BUT NOT GONE WLMT -DT Memphis, Tenn. (UPN) mission last week was expected to decide whether to delay the Two top -level executives at WPBF-DT West Palm Beach, Fla. (ABC) June 19 auction of frequencies used for TV chs. 52 -69 but chose UPN will be departing the net- to wait while Congress tried to broker a compromise and WPMI-DT Mobile, Ala. (NBC) work: CFO David England and industry players threatened lawsuits. WPTY -DT Memphis, Tenn. (ABC) affiliate -relations head Steve The latest deal, sources say, cores from Sen. Ted Stevens (R- WUAB -m Lorain, Ohio (UPN) Carlston. Their departments are Alaska), who is floating a compromise to auction chs. 52 -59 in being merged with their coun- Total DTV stations: rural areas now and urban markets later. Bidding for chs. 60 -69 terparts at CBS. But well -placed would be postponed entirely. That doesn't sit well with Bud Pax- sources say Viacom is trying to hang onto both executives. son, who owns 19 stations on the 60 -69 band. "Any attempt to Carlston is reportedly consider- do that would be challenged in court and create another Next ing a role at the company's TV- Wave -like cloud," he told BROADCASTING & CABLE, referring to the stations division, while England 402 bankrupt company that had spectrum seized by the FCC only to is said to be discussing another get it back in court. -B.M. finance post. -S.M. 4 Broadcasting & Cable /5-20 -02 TOP OF THE WEEK Now it's a real Adelphiasco Rigas is target of criminal probe; Chapter 11 nears as debt violations mount By John M. Higgins The douds surrounding Adelphia Corn - munications grew ever darker last week. Federal prosecutors launched criminal investigations into insider dealings by controlling shareholder John Rigas, and Adelphia started tripping several triggers in its debt agreements, threatening to plunge the company into bankruptcy proceedings. Adelphia acknowledged that scrutiny of the company has turned from regulatory to criminal. Adelphia has been subpoenaed by Two federal grand juries are looking two federal grand juries, one in Manhattan into deals by and the other in Harrisburg, Pa. Prosecutors Adelphia founder John Rigas, here are inquiring about the Rigases' use of Adel - with sons (l -r) Tim, phia's financial resources for their personal James and Michael. benefit, ranging from guarantees of loans for family stock purchases to payments for fam- ily -owned real estate. Adelphia said the CEO John Rigas and his The company Adelphia faces ripple effects company is "fully cooperating" with the son, CFO Tim Rigas last if the company's common missed investigation. week. The resignations re- $44.5 shares are delisted. Investors are treating the company's flected the severity of Adel - million in When John Rigas exited, securities as if a Chapter 11 filing is coming phia's financial crisis, payments, Adelphia disclosed that it soon. Adelphia's stock stopped trading last which didn't look so bad a had suspended an audit by Wednesday, but banks were selling parts of week earlier but could cas- which could Deloitte & Touche, mean- its loans for 85 cents on the dollar. The cade through the layers of trigger default ing that the preparation of most senior bonds traded for 70 cents, the the company's debt. provisions in Adelphia's annual 10 -K re- most junior for 30 cents. First, the company port had stalled. Translation: Investors expect some missed $44.5 million in every loan and That's a huge problem: recovery if Adelphia goes to bankruptcy interest and dividend pay- bond deal The absence of current, court, but they're discounting the paper in ments on four series of certified filings with the part for the months and months they won't bonds and preferred stock.